UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 10-K

[X]     ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE
        ACT OF 1934

                   FOR THE FISCAL YEAR ENDED DECEMBER 31, 2005

                                       OR

[  ]    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES
        EXCHANGE ACT OF 1934

                           COMMISSION FILE NO. 0-15057

                      P.A.M. TRANSPORTATION SERVICES, INC.
             (Exact name of registrant as specified in its charter)

                         DELAWARE                  71-0633135
             (State or other jurisdiction of     (I.R.S. Employer
            incorporation or organization)     Identification No.)

            297 WEST HENRI DE TONTI BLVD, TONTITOWN, ARKANSAS 72770
              (Address of principal executive offices) (Zip Code)

                                 (479) 361-9111
               Registrant's telephone number, including area code

          Securities registered pursuant to section 12(b) of the Act:
                                      NONE

          Securities registered pursuant to section 12(g) of the Act:
                          COMMON STOCK, $.01 PAR VALUE
                                (Title of class)

Indicate  by  check  mark  if the registrant is a well-known seasoned issuer, as
defined in Rule 405 of the Securities Act.
                                                           Yes  [ ]      No  [X]

Indicate  by  check  mark  if  the  registrant  is  not required to file reports
pursuant to Section 13 or Section 15(d) of the Act.
                                                           Yes  [ ]      No  [X]

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding  12  months  (or  for such shorter period that the registrant was
required  to  file  such  reports),  and  (2)  has  been  subject to such filing
requirements for the past 90 days.
                                                           Yes  [X]      No  [ ]

Indicate  by  check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K (Section 229.405 of this chapter) is not contained herein, and
will  not be contained, to the best of the registrant's knowledge, in definitive
proxy  or  information  statements incorporated by reference in Part III of this
Form 10-K or any amendment to this Form 10-K. [ ]

<PAGE>
Indicate  by  check mark whether the registrant is a large accelerated filer, an
accelerated  filer,  or  a non-accelerated filer. See definition of "accelerated
filer  and  large  accelerated  filer" in Rule 12b-2 of the Exchange Act. (Check
one):

Large accelerated filer [ ]    Accelerated filer [X]   Non-accelerated filer [ ]

Indicate  by check mark whether the registrant is a shell company (as defined in
Rule 12b-2 of the Act).
                                                           Yes  [ ]      No  [X]

The  aggregate  market  value  of  the  common  stock  of the registrant held by
non-affiliates  of  the  registrant  computed by reference to the average of the
closing  bid and asked prices of the common stock as of the last business day of
the registrant's most recently completed second quarter was $89,752,725.  Solely
for  the purposes of this response, executive officers, directors and beneficial
owners of more than five percent of the registrant's common stock are considered
the affiliates of the registrant at that date.

The  number  of  shares outstanding of the issuer's common stock, as of March 6,
2006: 10,287,607 shares of $.01 par value common stock.

                      DOCUMENTS INCORPORATED BY REFERENCE

Portions  of  the registrant's definitive Proxy Statement for its Annual Meeting
of  Stockholders  to  be held in 2006 are incorporated by reference in answer to
Part  III  of this report, with the exception of information regarding executive
officers  required  under  Item 10 of Part III, which information is included in
Part I, Item 1.

                           FORWARD-LOOKING STATEMENTS

This  Report contains forward-looking statements, including statements about our
operating  and  growth strategies, our expected financial position and operating
results,  industry  trends,  our  capital  expenditure  and  financing plans and
similar  matters.  Such  forward-looking  statements  are  found throughout this
Report,  including  under  Item  1,  Business,  Item  1A,  Risk Factors, Item 7,
Management's  Discussion  and  Analysis  of  Financial  Condition and Results of
Operations,  and  Item 7A, Quantitative and Qualitative Disclosures About Market
Risk.  In  those  and other portions of this Report, the words "believe," "may,"
"will,"  "estimate," "continue," "anticipate," "intend," "expect," "project" and
similar  expressions, as they relate to us, our management, and our industry are
intended  to  identify  forward-looking  statements.  We  have  based  these
forward-looking  statements  largely on our current expectations and projections
about future events and financial trends affecting our business.  Actual results
may  differ  materially.  Some of the risks, uncertainties and assumptions about
P.A.M.  that  may  cause  actual  results  to  differ from these forward-looking
statements  are  described  under  the  headings  "Risk  Factors," "Management's
Discussion  and  Analysis of Financial Condition and Results of Operations," and
"Quantitative and Qualitative Disclosures About Market Risk."

All  forward-looking  statements attributable to us, or to persons acting on our
behalf, are expressly qualified in their entirety by this cautionary statement.

We  undertake  no  obligation  to  publicly update or revise any forward-looking
statements,  whether as a result of new information, future events or otherwise.
In  light  of  these  risks  and  uncertainties,  the forward-looking events and
circumstances discussed in this Report might not transpire.

<PAGE>

                       P.A.M. TRANSPORTATION SERVICES, INC.
                                    FORM 10-K
                   FOR THE FISCAL YEAR ENDED DECEMBER 31, 2005
                                TABLE OF CONTENTS


                                     PART I
                                     ------
                                                                            Page
                                                                            ----
Item 1     Business.......................................................    1

Item 1A    Risk Factors...................................................    8

Item 1B    Unresolved Staff Comments......................................   10

Item 2     Properties.....................................................   11

Item 3     Legal Proceedings..............................................   11

Item 4     Submission of Matters to a Vote of Security Holders............   11

                                    PART II
                                    -------

Item 5     Market for Registrant's Common Equity, Related Stockholder
           Matters and Issuer Purchases of Equity Securities..............   12

Item 6     Selected Financial Data........................................   13

Item 7     Management's Discussion and Analysis of Financial
           Condition and Results of Operations............................   14

Item 7A    Quantitative and Qualitative Disclosures About Market Risk.....   24

Item 8     Financial Statements and Supplementary Data....................   25

Item 9     Changes in and Disagreements with Accountants on
           Accounting and Financial Disclosure............................   52

Item 9A    Controls and Procedures........................................   52

Item 9B    Other Information..............................................   53

                                    PART III
                                    --------

Item 10     Directors and Executive Officers of the Registrant............   54

Item 11     Executive Compensation........................................   54

Item 12     Security Ownership of Certain Beneficial Owners And
            Management and Related Stockholder Matters....................   55

Item 13     Certain Relationships and Related Transactions................   55

Item 14     Principal Accountant Fees and Services........................   55

                                    PART IV
                                    -------

Item 15     Exhibits and Financial Statement Schedules....................   56

            SIGNATURES....................................................   59

            EXHIBIT INDEX.................................................   60
<PAGE>

                                     PART I

ITEM 1.  BUSINESS.

Unless  the  context otherwise requires, all references in this Annual Report on
Form  10-K  to  "P.A.M.,"  the  "Company,"  "we,"  "our,"  or  "us"  mean P.A.M.
Transportation Services, Inc. and its subsidiaries.

We  are  a truckload dry van carrier transporting general commodities throughout
the  continental  United States, as well as in the Canadian provinces of Ontario
and  Quebec.  We also provide transportation services in Mexico under agreements
with  Mexican  carriers.  Our  freight  consists  primarily of automotive parts,
consumer  goods,  such  as  general  retail  store merchandise, and manufactured
goods, such as heating and air conditioning units.

P.A.M.  Transportation  Services,  Inc. is a holding company organized under the
laws of the State of Delaware in June 1986 which conducts operations through the
following  wholly  owned  subsidiaries:  P.A.M.  Transport,  Inc., T.T.X., Inc.,
P.A.M.  Dedicated  Services,  Inc.,  P.A.M.  Logistics  Services,  Inc., Choctaw
Express, Inc., Choctaw Brokerage, Inc., Transcend Logistics, Inc., Allen Freight
Services,  Inc., Decker Transport Co., Inc., East Coast Transport and Logistics,
LLC,  S & L Logistics, Inc., P.A.M. International, Inc., P.A.M. Canada, Inc. and
McNeill  Express,  Inc.  Our operating authorities are held by P.A.M. Transport,
Inc.,  P.A.M.  Dedicated  Services,  Inc.,  Choctaw  Express,  Inc.,  Choctaw
Brokerage,  Inc.,  Allen  Freight Services, Inc., T.T.X., Inc., Decker Transport
Co.,  Inc.,  East  Coast Transport and Logistics, LLC, and McNeill Express, Inc.

We  are  headquartered  and  maintain  our  primary  terminal  and  maintenance
facilities  and our corporate and administrative offices in Tontitown, Arkansas,
which is located in northwest Arkansas, a major center for the trucking industry
and  where  the  support  services (including warranty repair services) for most
major  tractor  and  trailer  equipment  manufacturers  are  readily  available.

In  order  to  conform  to industry practice, the Company began to classify fuel
surcharges  charged  to  customers  as  revenue  rather  than  as a reduction of
operating  supplies expense as had been presented in reports prior to the period
ended  June  30,  2004.  This  reclassification  has  no effect on net operating
income,  net  income  or earnings per share.  The Company has made corresponding
reclassifications to comparative periods shown.

SEGMENT FINANCIAL INFORMATION

The Company's operations are all in the motor carrier segment and are aggregated
into  a  single  operating  segment  in accordance with the aggregation criteria
presented in SFAS 131.

OPERATIONS

Our  operations can generally be classified into truckload services or brokerage
and  logistics  services.  Truckload  services  include  those  transportation
services  in  which  we  utilize  company owned tractors or owner-operator owned
tractors  for  the  pickup and delivery of freight.  The brokerage and logistics
services  consists  of services such as transportation scheduling, routing, mode
selection,  transloading  and  other  value  added  services  related  to  the
transportation  of  freight  which  may  or may not involve the usage of company
owned  or owner-operator owned equipment.  Both our truckload operations and our
brokerage and logistics operations have similar economic characteristics and are
impacted  by  virtually the same economic factors as discussed elsewhere in this
Report.  Truckload  services  operating  revenues,  before  fuel  surcharges
represented  88.0%,  86.4%,  and 86.7% of total operating revenues for the years
ended  December 31, 2005, 2004, and 2003, respectively.  The remaining operating
revenues, before fuel surcharge for the same periods were generated by brokerage
and  logistics  services,  representing  12.0%,  13.6%, and 13.3%, respectively.
Approximately  99%  of  the  Company's  revenues  are  generated  by  operations
conducted  in  the  United States and all of the Company's assets are located or
based in the United States.

                                      -1-
<PAGE>

BUSINESS AND GROWTH STRATEGY

Our strategy focuses on the following elements:

Maintaining  Dedicated  Fleets  in  High  Density  Lanes.  We strive to maximize
utilization and increase revenue per tractor while minimizing our time and empty
miles  between loads.  In this regard, we seek to provide dedicated equipment to
our customers where possible and to concentrate our equipment in defined regions
and disciplined traffic lanes.  Dedicated fleets in high density lanes enable us
to:

-     maintain more consistent equipment capacity;

-     provide a high level of service to our customers, including time-sensitive
      delivery schedules;

-     attract and retain drivers; and

-     maintain a sound safety record as drivers travel familiar routes.

Providing  Superior  and  Flexible Customer Service.  Our wide range of services
includes  dedicated fleet services, logistics services, "just-in-time" delivery,
two-man  driving  teams,  cross-docking  and consolidation programs, specialized
trailers,  and  Internet-based  customer  access  to  delivery  status.  These
services, combined with a decentralized regional operating strategy, allow us to
quickly  and reliably respond to the diverse needs of our customers, and provide
an  advantage in securing new business.  We also maintain ISO 9002 certification
to  ensure  that  we  operate  in  accordance  with  approved  quality assurance
standards.

Many  of  our customers depend on us to make delivery on a "just-in-time" basis,
meaning  that  parts  or  raw  materials  are scheduled for delivery as they are
needed  on  the  manufacturer's production line.  The need for this service is a
product  of  modern  manufacturing  and  assembly  methods  that are designed to
drastically  decrease  inventory  levels  and handling costs.  Such requirements
place  a  premium on the freight carrier's delivery performance and reliability.

Employing  Stringent  Cost Controls.  We focus intently on controlling our costs
while  not  sacrificing  customer  service.  We  maintain  this  balance  by
scrutinizing  all  expenditures,  minimizing  non-driver  personnel, operating a
late-model  fleet  of  tractors  and trailers to minimize maintenance costs, and
adopting new technology only when proven and cost justified.

Making  Strategic  Acquisitions.  We  continually evaluate strategic acquisition
opportunities,  focusing  on those that complement our existing business or that
could  profitably  expand our business or services.  Our operational integration
strategy is to centralize administrative functions of acquired businesses at our
headquarters, while maintaining the localized operations of acquired businesses.
We  believe that allowing acquired businesses to continue to operate under their
pre-acquisition  names  and  in their original regions allows such businesses to
maintain driver loyalty and customer relationships.

                                      -2-
<PAGE>

INDUSTRY

The  U.S.  market  for  truck-based  transportation  services is estimated to be
approximately  $600 billion in annual revenue.  The truckload industry is highly
fragmented  and  is  impacted  by several economic and business factors, many of
which  are beyond the control of individual carriers.  The state of the economy,
coupled with equipment capacity levels, can impact freight rates.  Volatility of
various  operating expenses, such as fuel and insurance, make the predictability
of  profit levels unclear.  Availability, attraction, retention and compensation
for  drivers  affect  operating  costs,  as  well  as equipment utilization.  In
addition,  the  capital  requirements  for  equipment,  coupled  with  potential
uncertainty  of  used  equipment  values, impact the ability of many carriers to
expand  their operations.  The current operating environment is characterized by
the following:

-     Price increases by tractor and trailer equipment manufacturers, rising
      fuel costs, and intense competition for drivers.

-     In the last few years, many less profitable or undercapitalized carriers
      have been forced to consolidate or to exit the industry.

COMPETITION

The  trucking industry is highly competitive and includes thousands of carriers,
none of which dominates the market in which the Company operates.  The Company's
market share is less than 1% and we compete primarily with other irregular route
medium-  to long-haul truckload carriers, with private carriage conducted by our
existing  and  potential customers, and, to a lesser extent, with the railroads.
Increased  competition  has resulted from deregulation of the trucking industry.
We  compete on the basis of quality of service and delivery performance, as well
as  price.  Many  of the other irregular route long-haul truckload carriers have
substantially  greater financial resources, own more equipment or carry a larger
total volume of freight.

MARKETING AND SIGNIFICANT CUSTOMERS

Our marketing emphasis is directed to that portion of the truckload market which
is  generally  service-sensitive,  as opposed to being solely price competitive.
We  seek  to become a "core carrier" for our customers in order to maintain high
utilization  and  capitalize  on recurring revenue opportunities.  Our marketing
efforts  are diversified and designed to gain access to dedicated fleet services
(including  those  in Mexico and Canada), domestic regional freight traffic, and
cross-docking and consolidation programs.

Our  marketing  efforts are conducted by a sales staff of four employees who are
located  in  our  major  markets  and  supervised  from our headquarters.  These
individuals work to improve profitability by maintaining an even flow of freight
traffic  (taking  into account the balance between originations and destinations
in  a  given geographical area) and high utilization, and minimizing movement of
empty equipment.

Our  five  largest  customers,  for which we provide carrier services covering a
number  of geographic locations, accounted for approximately 57%, 62% and 64% of
our  total  revenues  in  2005,  2004  and  2003,  respectively.  General Motors
Corporation  accounted  for  approximately  39%,  44% and 46% of our revenues in
2005, 2004 and 2003, respectively.

We also provide transportation services to other manufacturers who are suppliers
for  automobile  manufacturers.  Approximately  52%, 56% and 58% of our revenues
were  derived  from  transportation services provided to the automobile industry
during  2005,  2004  and  2003,  respectively.  This  portion  of  our business,
however, is spread over 17 assembly plants and over 45 suppliers/vendors located
throughout  North  America, which we believe reduces the risk of a material loss
of business.

                                      -3-
<PAGE>

REVENUE EQUIPMENT

At  December 31, 2005, we operated a fleet of 1,792 tractors and 4,406 trailers.
We  operate  late-model,  well-maintained  premium  tractors to help attract and
retain  drivers, promote safe operations, minimize maintenance and repair costs,
and  improve  customer  service  by  minimizing  service interruptions caused by
breakdowns.  We  evaluate  our  equipment  decisions  based  on  factors such as
initial  cost,  useful  life,  warranty  terms, expected maintenance costs, fuel
economy, driver comfort, customer needs, manufacturer support, and resale value.
Our  current  policy  is to replace most of our tractors at 500,000 miles, which
normally  occurs  30  to 48 months after purchase.  The following table provides
information  regarding our tractor and trailer turnover and the age of our fleet
over the past three years:

                                               2005       2004       2003
                                              -----      -----      -----
Tractors
--------
     Additions                                  497        502        781
     Deletions                                  562        558        649
     End of year total                        1,792      1,857      1,913
     Average age at end of year (in years)      1.4        1.7        1.9
Trailers
--------
     Additions                                  883        803        991
     Deletions                                  734        721        789
     End of year total                        4,406      4,257      4,175
     Average age at end of year (in years)      3.9        4.7        5.2


We  historically  have  contracted with owner-operators to provide and operate a
small  portion of our tractor fleet.  Owner-operators provide their own tractors
and  are  responsible  for  all  associated expenses, including financing costs,
fuel,  maintenance,  insurance,  and  taxes.  We  believe  that a combined fleet
complements  our recruiting efforts and offers greater flexibility in responding
to  fluctuations  in shipper demand.  At December 31, 2005 the Company's tractor
fleet included 50 owner-operator tractors.

Effective October 1, 2002, all newly manufactured truck engines must comply with
new  engine  emission standards mandated by the  Environmental Protection Agency
("EPA").  All  truck  engines  manufactured  prior  to  October  1, 2002 are not
subject  to  these new standards.  As of December 31, 2005, approximately 90% of
the  Company-owned  truck  fleet  consisted of trucks with the post-October 2002
engines.  The  Company  has  experienced a reduction in fuel efficiency to date,
and increased depreciation expense due to the higher cost of the new engines.  A
new  set  of  more stringent emissions standards mandated by the EPA will become
effective  for newly manufactured trucks beginning in January 2007 (phase 2) and
in  January 2010 (phase 3).  The Company expects that the engines produced under
the  new  standards  will be less fuel-efficient and have a higher cost than the
current engines.

TECHNOLOGY

We have installed Qualcomm Omnitracs  display units in all of our tractors.  The
Omnitracs  system  is  a  satellite-based  global positioning and communications
system that allows fleet managers to communicate directly with drivers.  Drivers
can  provide  location  status  and  updates  directly  to  our  computer  which
increases  productivity  and convenience.  The Omnitracs system provides us with
accurate  estimated  time of arrival information, which optimizes load selection
and  service  levels  to  our  customers.  In  order  to  optimize  our
tractor-to-trailer ratio, we have also installed Qualcomm TrailerTracs  tracking
units  in  all  of  our trailers.  The TrailerTracs system is a tethered trailer
tracking  product  that enables us to more efficiently track the location of all
trailers  in  our  inventory  as  they  connect  to  and  disconnect  from
Qualcomm-equipped tractors.

Our  computer system manages the information provided by the Qualcomm devices to
provide  us  real-time  information  regarding  the  location,  status  and load
assignment  of  all  of  our equipment, which permits us to better meet delivery
schedules,  respond  to  customer  inquiries  and  match equipment with the next
available  load.  Our  system  also  provides  electronically  to  our customers

                                      -4-
<PAGE>

real-time  information regarding the status of freight shipments and anticipated
arrival  times.  This  system provides our customers flexibility and convenience
by  extending  supply  chain visibility through electronic data interchange, the
Internet and e-mail.

MAINTENANCE

We have a strictly enforced comprehensive preventive maintenance program for our
tractors and trailers.  Inspections and various levels of preventive maintenance
are  performed  at  set  mileage  intervals  on  both  tractors and trailers.  A
maintenance  and  safety  inspection is performed on all vehicles each time they
return to a terminal.

Our  tractors  carry  full warranty coverage for at least three years or 350,000
miles.  Extended  warranties  are  negotiated  with the tractor manufacturer and
manufacturers of major components, such as engine, transmission and differential
manufacturers,  for  up  to  four  years  or 500,000 miles.  Trailers carry full
warranties  by the manufacturer and major component manufacturers for up to five
years.

EMPLOYEES

At December 31, 2005, we employed 3,035 persons, of whom 2,547 were drivers, 140
were maintenance personnel, 203 were employed in operations, 16 were employed in
marketing,  60  were  employed  in safety and personnel, and 69 were employed in
general administration and accounting.  None of our employees are represented by
a  collective  bargaining  unit  and  we believe that our employee relations are
good.

DRIVERS

At  December  31, 2005, we utilized 2,547 company drivers in our operations.  We
also had 50 owner-operators under contract compensated on a per mile basis.  Our
drivers  are  compensated  on  the basis of miles driven, loading and unloading,
extra  stops  and  layovers  in transit.  Drivers can earn bonuses by recruiting
other  qualified  drivers  who  become employed by us and both cash and non-cash
prizes  are awarded for consecutive periods of safe, accident-free driving.  All
of  our drivers are recruited, screened, drug tested and trained and are subject
to  the  control  and  supervision of our operations and safety departments. Our
driver  training program stresses the importance of safety and reliable, on-time
delivery.  Drivers  are required to report to their driver managers daily and at
the earliest possible moment when any condition en route occurs that might delay
their scheduled delivery time.

In  addition  to  strict  application  screening  and drug testing, before being
permitted to operate a vehicle our drivers must undergo classroom instruction on
our  policies and procedures, safety techniques as taught by the Smith System of
Defensive Driving, the proper operation of equipment, and must pass both written
and  road  tests.  Instruction  in  defensive  driving  and  safety  techniques
continues  after hiring, with seminars at several of our terminals.  At December
31,  2005, we employed 60 persons on a full-time basis in our driver recruiting,
training and safety instruction programs.

Intense competition in the trucking industry for qualified drivers over the last
several  years,  along  with  difficulties  and  added expense in recruiting and
retaining  qualified  drivers,  has  had a negative impact on the industry.  Our
operations  have  also  been  impacted and from time to time we have experienced
under-utilization and increased expenses due to a shortage of qualified drivers.
We  place a high priority on the recruitment and retention of an adequate supply
of qualified drivers.

                                      -5-
<PAGE>

EXECUTIVE OFFICERS OF THE REGISTRANT

Our executive officers are as follows:

                                                                YEARS OF SERVICE
      NAME          AGE          POSITION WITH COMPANY            WITH P.A.M.
     -----          ---  -------------------------------------    -----------
Robert W. Weaver    56   President and Chief Executive Officer         23
W. Clif Lawson      52   Executive Vice President and Chief
                         Operating Officer                             21
Larry J. Goddard    47   Vice President - Finance, Chief Financial
                         Officer, Secretary and Treasurer              18

Each  of  our  executive officers has held his present position with the Company
for  at  least  the last five years.  The Company has entered into an employment
agreement  with  the  President and Chief Executive Officer that expires on June
30, 2006.  The Company has the option to extend the employment agreement for two
consecutive  years following the June 30, 2006 expiration date for an additional
one year at a time.

INTERNET WEB SITE

The  Company  maintains  a  web site where additional information concerning its
business  can  be  found.  The  address  of  that web site is www.pamt.com.  The
Company  makes  available  free  of  charge  on its Internet web site its Annual
Report  on  Form  10-K,  quarterly reports on Form 10-Q, current reports on Form
8-K,  and  amendments  to  those  reports filed or furnished pursuant to Section
13(a)  or  15(d)  of the Securities Exchange Act of 1934 (the "Exchange Act") as
soon  as  reasonably practicable after it electronically files or furnishes such
materials to the Securities and Exchange Commission.

SEASONALITY

Our  revenues do not exhibit a significant seasonal pattern due primarily to our
varied  customer  mix.  Operating  expenses can be somewhat higher in the winter
months  primarily  due  to  decreased  fuel efficiency and increased maintenance
costs associated with inclement weather.  In addition, the automobile plants for
which  we  transport  a  large  amount  of  freight  typically utilize scheduled
shutdowns  of  two  weeks  in  July  and  one week in December and the volume of
freight we ship is reduced during such scheduled plant shutdowns.

REGULATION

We  are  a  common  and  contract motor carrier regulated by various federal and
state  agencies.  We  are  subject to safety requirements prescribed by the U.S.
Department  of  Transportation ("DOT").  Such matters as weight and dimension of
equipment are also subject to federal and state regulations.  All of our drivers
are  required  to  obtain national driver's licenses pursuant to the regulations
promulgated by the DOT.  Also, DOT regulations impose mandatory drug and alcohol
testing  of  drivers.  We  believe  that  we  are  in compliance in all material
respects  with  applicable  regulatory  requirements  relating  to  our trucking
business  and operate with a "satisfactory" rating (the highest of three grading
categories) from the DOT.

Our  motor  carrier  operations  are  also  subject  to  environmental  laws and
regulations,  including  laws  and  regulations  dealing  with  underground fuel
storage tanks, the transportation of hazardous materials and other environmental
matters,  and  our operations involve certain inherent environmental  risks.  We
maintain  five  bulk  fuel storage and fuel islands.  Our operations involve the
risks  of  fuel  spillage or seepage,  environmental damage, and hazardous waste
disposal,  among  others.  We  have  instituted  programs to monitor and control
environmental  risks  and  assure compliance with applicable environmental laws.
As  part  of  our  safety  and  risk management program, we periodically perform
internal  environmental  reviews so that we can achieve environmental compliance
and  avoid environmental risk.  We transport a minimum amount of environmentally
hazardous  substances  and,  to date, have experienced no significant claims for
hazardous  materials  shipments.  If  we  should  fail to comply with applicable

                                      -6-
<PAGE>

regulations,  we could be subject to substantial fines or penalties and to civil
and criminal liability.

Company  operations  conducted  in  industrial  areas, where truck terminals and
other  industrial activities are conducted, and where groundwater or other forms
of  environmental  contamination  have occurred, potentially expose us to claims
that we contributed to the environmental contamination.

We  believe  we  are  currently  in material compliance with applicable laws and
regulations  and that the cost of compliance has not materially affected results
of operations.

In addition to environmental regulations directly affecting our business, we are
also  subject  to  the  effects  of  new  tractor  engine  design  requirements
implemented  by  the  EPA  effective  October  1, 2002. See "Revenue Equipment",
above.

The Federal Motor Carrier Safety Administration ("FMCSA") issued a final rule on
April  24,  2003  that made several changes to the regulations that govern truck
drivers'  hours  of  service  ("HOS").  These  new  federal  regulations  became
effective  on  January  4,  2004.  On  July  16, 2004, the U.S. Circuit Court of
Appeals  for  the District of Columbia rejected these new hours of service rules
for  truck drivers that had been in place since January 2004 because it said the
FMCSA  had failed to address the impact of the rules on the health of drivers as
required  by  Congress.  In  addition,  the  judge's ruling noted other areas of
concern  including  the increase in driving hours from 10 hours to 11 hours, the
exception  that  allows  drivers  in  trucks  with sleeper berths to split their
required  rest  periods,  the  new  rule allowing drivers to reset their 70-hour
clock  to  0  hours after 34 consecutive hours off duty, and the decision by the
FMCSA  not  to require the use of electronic onboard recorders to monitor driver
compliance.  On  September  30,  2004, the extension of the Federal highway bill
signed into law by the President of the United States extended the current hours
of  service  rules  for  one  year  or  until  the  FMCSA developed a new set of
regulations,  whichever  came first.  On January 24, 2005, the FMCSA re-proposed
its April 2003 HOS rules, adding references to how the rules would affect driver
health,  but  making  no  changes  to  the regulations.  The FMCSA sought public
comments  by  March 10, 2005 on what changes to the rule, if any, were necessary
to  respond  to the concerns raised by the court, and to provide data or studies
that  would  support  changes to, or continued use of, the 2003 rule.  Effective
October  1,  2005,  the  April  2003  HOS  rules  became effective with the most
significant change requiring drivers that utilize the sleeper berth provision to
take  at  least  eight  consecutive  hours in the sleeper berth during their ten
hours off-duty.  Under previous regulations, drivers were allowed to split their
ten  hour  off-duty time in the sleeper berth into two periods, provided neither
period  was  less than two hours.  This more restrictive sleeper berth provision
may  impact  multiple-stop  shipments  and  those  shipments incurring delays in
loading  or  unloading.  Improper  planning  on  such  shipments could result in
delivery delays and equipment utilization inefficiencies.

                                      -7-
<PAGE>

ITEM 1A.  RISK FACTORS.

Set forth below and elsewhere in this Report and in other documents we file with
the  SEC  are  risks  and  uncertainties  that could cause our actual results to
differ  materially  from  the  results  contemplated  by  the  forward-looking
statements contained in this Report.

Our  business  is  subject  to  general  economic  and business factors that are
largely out of our control, any of which could have a material adverse effect on
our operating results.

These  factors  include  significant  increases  or  rapid  fluctuations in fuel
prices,  excess  capacity  in the trucking industry, surpluses in the market for
used  equipment,  interest  rates,  fuel  taxes,  license and registration fees,
insurance  premiums,  self-insurance  levels,  and  difficulty in attracting and
retaining qualified drivers and independent contractors.

We are also affected by recessionary economic cycles and downturns in customers'
business  cycles,  particularly  in  market segments and industries, such as the
automotive  industry,  where  we  have a significant concentration of customers.
Economic  conditions may adversely affect our customers and their ability to pay
for our services.

We operate in a highly competitive and fragmented industry, and our business may
suffer  if  we  are  unable to adequately address downward pricing pressures and
other  factors  that  may  adversely  affect  our  ability to compete with other
carriers.

Numerous  competitive  factors  could impair our ability to maintain our current
profitability.  These factors include the following:

-     we  compete  with many other truckload carriers of varying sizes and, to a
      lesser  extent,  with  less-than-truckload carriers and railroads, some of
      which have more equipment and greater capital resources than we do;

-     some  of  our  competitors periodically reduce their freight rates to gain
      business,  especially during times of reduced growth rates in the economy,
      which  may  limit  our  ability  to  maintain  or  increase freight rates,
      maintain our margins or maintain significant growth in our business;

-     many  customers  reduce  the  number  of  carriers  they  use by selecting
      so-called  "core  carriers"  as  approved  service  providers, and in some
      instances we may not be selected;

-     many  customers  periodically accept bids from multiple carriers for their
      shipping  needs,  and  this process may depress freight rates or result in
      the loss of some of our business to competitors;

-     the  trend  toward consolidation in the trucking industry may create other
      large  carriers  with  greater  financial  resources and other competitive
      advantages  relating  to  their  size and with whom we may have difficulty
      competing;

-     advances  in  technology  require  increased  investments  to  remain
      competitive, and our customers may not be willing to accept higher freight
      rates to cover the cost of these investments;

-     competition  from Internet-based and other logistics and freight brokerage
      companies  may  adversely  affect  our  customer relationships and freight
      rates; and

-     economies  of  scale  that  may  be  passed  on  to  smaller  carriers  by
      procurement  aggregation  providers  may  improve their ability to compete
      with us.

                                      -8-
<PAGE>

We are highly dependent on our major customers, the loss of one or more of which
could have a material adverse effect on our business.

A significant portion of our revenue is generated from our major customers.  For
2005,  our top five customers, based on revenue, accounted for approximately 57%
of  our revenue, and our largest customer, General Motors Corporation, accounted
for  approximately  39% of our revenue.  We also provide transportation services
to  other  manufacturers  who  are suppliers for automobile manufacturers.  As a
result,  concentration of our business within the automobile industry is greater
than  the concentration in a single customer.  Approximately 52% of our revenues
for  2005  were  derived from transportation services provided to the automobile
industry.

Generally,  we  do  not  have long-term contractual relationships with our major
customers, and we cannot assure that our customer relationships will continue as
presently in effect.  A reduction in or termination of our services by our major
customers  could  have  a  material adverse effect on our business and operating
results.

Ongoing insurance and claims expenses could significantly reduce our earnings.

Our  future  insurance and claims expenses might exceed historical levels, which
could  reduce  our earnings.  The Company is self insured for health and workers
compensation insurance coverage up to certain limits.  If medical costs continue
to  increase,  or  if  the  severity or number of claims increase, and if we are
unable  to offset the resulting increases in expenses with higher freight rates,
      our earnings could be materially and adversely affected.

We  may  be  unable  to  successfully  integrate  businesses we acquire into our
operations.

Integrating  businesses  we  acquire  may involve unanticipated delays, costs or
other  operational  or  financial  problems.  Successful  integration  of  the
businesses  we  acquire depends on a number of factors, including our ability to
transition  acquired  companies  to  our  management  information  systems.  In
integrating  businesses  we  acquire,  we  may not achieve expected economies of
scale or profitability or realize sufficient revenues to justify our investment.
We  also  face  the  risk  that an unexpected problem at one of the companies we
acquire  will  require  substantial  time  and attention from senior management,
diverting  management's attention from other aspects of our business.  We cannot
be  certain that our management and operational controls will be able to support
us as we grow.

Difficulty  in  attracting drivers could affect our profitability and ability to
grow.

Periodically,  the  transportation industry experiences difficulty in attracting
and retaining qualified drivers, including independent contractors, resulting in
intense  competition  for  drivers.  We  have  from  time  to  time  experienced
under-utilization and increased expenses due to a shortage of qualified drivers.
If  we  are  unable to continue to attract drivers and contract with independent
contractors,  we  could  be  required  to further adjust our driver compensation
package  or  let  trucks  sit  idle, which could adversely affect our growth and
profitability.

If  we are unable to retain our key employees, our business, financial condition
and results of operations could be harmed.

We are highly dependent upon the services of the following key employees: Robert
W.  Weaver,  our  President  and  Chief  Executive  Officer; W. Clif Lawson, our
Executive  Vice President and Chief Operating Officer; and Larry J. Goddard, our
Vice  President  and  Chief  Financial Officer.  We do not maintain key-man life
insurance  on  any of these executives.  The loss of any of their services could
have  a  material adverse effect on our operations and future profitability.  We
must  continue  to  develop  and  retain  a  core group of managers if we are to
realize  our  goal  of  expanding  our operations and continuing our growth.  We
cannot assure that we will be able to do so.

                                      -9-
<PAGE>

We  have  significant  ongoing  capital  requirements  that  could  affect  our
profitability  if  we  are  unable  to generate sufficient cash from operations.

The  trucking  industry is very capital intensive.  If we are unable to generate
sufficient  cash from operations in the future, we may have to limit our growth,
enter  into  financing arrangements, or operate our revenue equipment for longer
periods, any of which could have a material adverse affect on our profitability.

Our  operations  are  subject to various environmental laws and regulations, the
violation of which could result in substantial fines or penalties.

We  are  subject  to various environmental laws and regulations dealing with the
handling  of  hazardous materials, underground fuel storage tanks, and discharge
and  retention  of  stormwater.  We  operate  in  industrial  areas, where truck
terminals  and other industrial activities are located, and where groundwater or
other  forms  of environmental contamination could occur.  We also maintain bulk
fuel storage and fuel islands at five of our facilities.  Our operations involve
the risks of fuel spillage or seepage, environmental damage, and hazardous waste
disposal,  among  others.  If  we  are  involved  in  a  spill or other accident
involving  hazardous  substances,  or  if  we  are  found  to be in violation of
applicable laws or regulations, it could have a materially adverse effect on our
business  and  operating  results.  If  we should fail to comply with applicable
environmental regulations, we could be subject to substantial fines or penalties
and to civil and criminal liability.

We  operate  in  a  highly  regulated industry and increased costs of compliance
with, or liability for violation of, existing or future regulations could have a
material adverse effect on our business.

The  U.S. Department of Transportation and various state agencies exercise broad
powers  over  our business, generally governing such activities as authorization
to  engage in motor carrier operations, safety, and financial reporting.  We may
also  become  subject  to  new  or more restrictive regulations relating to fuel
emissions,  drivers'  hours  in  service,  and ergonomics.  Compliance with such
regulations  could  substantially impair equipment productivity and increase our
operating expenses.

The  EPA  recently  adopted  new  emissions  control  regulations, which require
progressive  reductions  in  exhaust emissions from diesel engines through 2010,
for  engines manufactured in October 2002 and thereafter.  In part to offset the
costs  of  compliance  with  the  new  EPA  engine  design  requirements,  some
manufacturers  have  significantly increased new equipment prices and eliminated
or  sharply  reduced  the  price  of repurchase or trade-in commitments.  If new
equipment  prices were to increase, or if the price of repurchase commitments by
equipment  manufacturers  were  to  decrease,  more  than anticipated, we may be
required  to increase our depreciation and financing costs and/or retain some of
our equipment longer, with a resulting increase in maintenance expenses.  To the
extent  we  are  unable  to  offset  any  such  increases  in expenses with rate
increases  or  cost  savings,  our  results  of  operations  could  be adversely
affected.  If  our  fuel or maintenance expenses were to increase as a result of
our  use  of  the  new,  EPA-compliant engines, and we are unable to offset such
increases  with  fuel  surcharges  or  higher  freight  rates,  our  results  of
operations  could  be  adversely affected.  Further, our business and operations
could  be  adversely  impacted if we experience problems with the reliability of
the  new  engines.  We  began  operating  tractors  with engines meeting the EPA
guidelines  during  2003.  Although  we  have  not  experienced  any significant
reliability  issues with these engines to date, the expenses associated with the
tractors  containing  these  engines have been slightly elevated, primarily as a
result of lower fuel efficiency and slightly higher depreciation.

ITEM 1B.  UNRESOLVED STAFF COMMENTS.

None.
                                      -10-
<PAGE>

ITEM 2.  PROPERTIES.

Our executive offices and primary terminal facilities, which we own, are located
in  Tontitown,  Arkansas.  These  facilities  are  located on approximately 49.3
acres  and  consist  of  114,403 square feet of office space and maintenance and
storage facilities.

Our  subsidiaries  lease  facilities  in  Jacksonville,  Florida;  Breese  and
Effingham,  Illinois; Parsippany and Paulsboro, New Jersey; North Jackson, Ohio;
Oklahoma  City,  Oklahoma;  and  Laredo,  and  El  Paso,  Texas.  Our  terminal
facilities in Columbia, Mississippi; Irving, Texas; North Little Rock, Arkansas;
and  Willard,  Ohio  are owned.  The leased facilities are leased primarily on a
month-to-month  basis.  The  following  provides  a summary of the ownership and
types of activities conducted at each location:

                                   Own/     Dispatch   Maintenance    Safety
           Location                Lease     Office     Facility     Training
           --------                -----     ------     --------     --------
   Tontitown, Arkansas             Own         Yes         Yes         Yes
   North Little Rock, Arkansas     Own         Yes         Yes         Yes
   Jacksonville, Florida           Lease       Yes         Yes         Yes
   Breese, Illinois                Lease       Yes         No          No
   Effingham, Illinois             Lease       No          Yes         No
   Columbia, Mississippi           Own         Yes         Yes         No
   Parsippany, New Jersey          Lease       Yes         Yes         Yes
   Paulsboro, New Jersey           Lease       Yes         No          No
   North Jackson, Ohio             Lease       Yes         Yes         Yes
   Willard, Ohio                   Own         Yes         Yes         No
   Oklahoma City, Oklahoma         Lease       Yes         Yes         Yes
   El Paso, Texas                  Lease       Yes         Yes         No
   Irving, Texas                   Own         Yes         Yes         Yes
   Laredo, Texas                   Lease       Yes         Yes         No

We  also  have  access  to  trailer  drop  and  relay  stations in various other
locations  across  the  country.  We  lease  certain  of  these  facilities on a
month-to-month basis from an affiliate of our largest shareholder.

We  believe  that  all  of  the properties that we own or lease are suitable for
their purposes and adequate to meet our needs.

ITEM 3.  LEGAL PROCEEDINGS.

The  nature  of  the  our  business  routinely  results in litigation, primarily
involving  claims  for  personal  injuries  and  property damage incurred in the
transportation  of  freight.  We  believe  that  all  such routine litigation is
adequately covered by insurance and that adverse results in one or more of those
cases would not have a material adverse effect on our financial condition.

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

No  matters  were  submitted to a vote of our security holders during the fourth
quarter ended December 31, 2005.

                                      -11-
<PAGE>

                                     PART II

ITEM 5.  MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND
         ISSUER PURCHASES OF EQUITY SECURITIES.

Our  common stock is traded on the NASDAQ National Market under the symbol PTSI.
The  following  table  sets  forth, for the quarters indicated, the range of the
high and low bid prices per share for our common stock as reported on the NASDAQ
National  Market.  Such  quotations  reflect inter-dealer prices, without retail
markups,  markdowns or commissions and, therefore, may not necessarily represent
actual transactions.

Calendar Year Ended December 31, 2005
                                      HIGH       LOW
                                     ------     ------
                 First Quarter       $19.49     $16.47
                 Second Quarter       17.35      13.43
                 Third Quarter        17.90      15.71
                 Fourth Quarter       18.85      15.16

Calendar Year Ended December 31, 2004
                                       HIGH      LOW
                                     ------     ------
                 First Quarter       $22.31     $15.97
                 Second Quarter       19.30      16.43
                 Third Quarter        19.42      16.72
                 Fourth Quarter       21.01      17.51

As  of  March  6,  2006,  there  were approximately 192 holders of record of our
common stock.

DIVIDENDS

We  have not declared or paid any cash dividends on our common stock for the two
most  recent  fiscal  years.  The  policy of our board of directors is to retain
earnings  for  the  expansion and development of our business and the payment of
our  debt  service  obligations.  Future  dividend  policy  and  the  payment of
dividends,  if  any,  will  be  determined by the board of directors in light of
circumstances  then  existing,  including  our earnings, financial condition and
other factors deemed relevant by the board.

REPURCHASES OF COMMON STOCK

On  October  24,  2003,  the  Company  announced  the  approval  by the Board of
Directors  of  a stock repurchase program in which the Company was authorized to
purchase  300,000  shares of its common stock at prevailing market prices over a
twelve  month  period.  The  stock  repurchase program expired during the fourth
quarter  of  2004  with no purchases by the Company during the authorized twelve
month period.

On  April  11,  2005,  the  Company  announced  that  the Board of Directors had
authorized  the  Company  to repurchase up to 600,000 shares of its common stock
during  the six month period ending October 11, 2005.  These 600,000 shares were
all  repurchased  by  September  30,  2005.  On  September  6, 2005, the Company
announced  that  its Board of Directors had authorized the Company to extend the
stock  repurchase  program  until  September  6,  2006  and  to include up to an
additional 900,000 shares of its common stock.

                                      -12-
<PAGE>

The following table summarizes the Company's common stock repurchases during the
fourth  quarter  of  2005  made  pursuant to this authorization.  No shares were
purchased  during the quarter other than through this program, and all purchases
were  made by or on behalf of the Company and not by any "affiliated purchaser".
<TABLE>
<CAPTION>
                                                                                          Maximum Number
                                                                                         (or Approximate
                                                      Average      Total Number of      Dollar Value) of
                                      Total Number     Price      Shares (or Units)     Shares (or Units)
                                       of Shares      Paid per   Purchased as Part of    that May Yet Be
                                      (or Units)       Share     Publicly Announced    Purchased Under the
Period                                 Purchased     (or Unit)    Plans or Programs     Plans or Programs
------------------------------------- ------------   ---------   --------------------  -------------------
<S>                                    <C>          <C>              <C>                    <C>
October 1, 2005 - October 31, 2005       50,000      $15.8900          50,000                850,000
November 1, 2005 - November 30, 2005    100,000       17.4750         100,000                750,000
December 1, 2005 - December 31, 2005    308,600       17.1284         308,600                441,400
                                        -------      --------         -------
Total                                   458,600      $17.0689         458,600                441,400
                                        =======      ========         =======
</TABLE>

See  Part  III,  Item  12,  "Security Ownership of Certain Beneficial Owners and
Management  and  Related  Stockholder  Matters"  of  this  Annual  Report  for a
presentation  of compensation plans under which equity securities of the Company
are authorized for issuance.

ITEM 6.  SELECTED FINANCIAL DATA.

The  following  selected  financial  and  operating  data  should  be  read  in
conjunction  with  the  Consolidated  Financial  Statements  and  notes  thereto
included elsewhere in this Report.

<TABLE>
<CAPTION>
                                                                YEAR ENDED DECEMBER 31,
                                                    2005       2004       2003      2002       2001
                                                 --------   --------   --------   --------   --------
                                                   (in thousands, except earnings per share amounts)
<S>                                             <C>        <C>        <C>        <C>        <C>
Statement of Operations Data:
Operating revenues:
   Operating revenues, before fuel surcharge     $326,353   $309,475   $293,547   $264,012   $225,794
   Fuel surcharge (1)                              34,527     15,591      7,491      2,042      5,608
                                                 --------   --------   --------   --------   --------
Total operating revenues                          360,880    325,066    301,038    266,054    231,402
                                                 --------   --------   --------   --------   --------

Operating expenses:
   Salaries, wages and benefits                   122,005    119,519    119,350    115,432    100,359
   Operating supplies (1)                         104,131     77,363     63,241     53,203     48,897
   Rent and purchased transportation               39,074     38,938     35,287      9,780     10,526
   Depreciation and amortization                   31,376     30,016     26,601     24,715     20,300
   Operating taxes and licenses                    15,776     15,488     14,710     13,467     11,936
   Insurance and claims                            15,992     15,820     13,500     12,786     10,202
   Communications and utilities                     2,648      2,690      2,540      2,284      2,320
   Other                                            6,205      5,131      4,755      4,620      4,707
   Loss on sale or disposal of property               147        915        368        127        886
                                                 --------   --------   --------   --------   --------
Total operating expenses                          337,354    305,880    280,352    236,414    210,133
                                                 --------   --------   --------   --------   --------
Operating income                                   23,526     19,186     20,686     29,640     21,269
Non-operating income                                  477        464        276          -          -
Interest expense                                   (1,881)    (1,758)    (1,667)    (1,985)    (4,477)
                                                 --------   --------   --------   --------   --------
Income before income taxes                         22,122     17,892     19,295     27,655     16,792
Income taxes                                        8,983      7,304      7,805     11,062      6,721
                                                 --------   --------   --------   --------   --------
Net income                                       $ 13,139   $ 10,588   $ 11,490   $ 16,593   $ 10,071
                                                 ========   ========   ========   ========   ========
Earnings per common share:
Basic                                            $   1.20      $ .94     $ 1.02     $ 1.56     $ 1.18
                                                 ========   ========   ========   ========   ========
Diluted                                          $   1.20      $ .94     $ 1.01     $ 1.55     $ 1.18
                                                 ========   ========   ========   ========   ========
Average common shares outstanding- Basic           10,966     11,298     11,291     10,669      8,522
                                                 ========   ========   ========   ========   ========
Average common shares outstanding- Diluted (2)     10,976     11,324     11,326     10,715      8,550
                                                 ========   ========   ========   ========   ========

</TABLE>
--------------
(1)   In order to conform to industry practice, during 2004 the Company began to
      classify  fuel surcharges charged to customers as revenue rather than as a
      reduction  of  operating  supplies  expense.  This reclassification has no
      effect  on  net  operating  income,  net income or earnings per share. The
      Company  has  made  corresponding reclassifications to comparative periods
      shown.
(2)   Diluted income per share for 2005, 2004, 2003, 2002 and 2001 assumes the
      exercise  of  stock  options  to  purchase an aggregate of 22,297, 62,224,
      77,758, 87,984 and 107,369 shares of common stock, respectively.

                                      -13-
<PAGE>
<TABLE>
<CAPTION>
                                                                     AT DECEMBER 31,
                                                    2005       2004       2003      2002       2001
                                                 --------   --------   --------   --------   --------
                                                                     (IN THOUSANDS)
<S>                                             <C>        <C>        <C>        <C>        <C>
BALANCE SHEET DATA:
Total assets                                     $293,441   $285,349   $264,849   $228,320   $182,516
Long-term debt, excluding current portion          39,693     23,225     26,740     20,175     47,023
Stockholders' equity                              164,762    168,543    156,875    144,452     72,597
</TABLE>

<TABLE>
<CAPTION>
                                                                 YEAR ENDED DECEMBER 31,
                                                    2005       2004       2003      2002       2001
                                                 --------   --------   --------   --------   --------
<S>                                             <C>        <C>        <C>        <C>        <C>
OPERATING DATA:
Operating ratio (1)                                 92.8%      93.8%      92.9%      88.7%      90.6%
Average number of truckloads per week              6,946      7,278      7,105      6,463      5,399
Average miles per trip                               680        664        701        755        769
Total miles traveled (in thousands)              228,624    235,894    242,890    238,256    204,303
Average miles per tractor                        125,479    127,124    131,934    136,772    131,554
Average revenue, before fuel surcharge
  per tractor per day                               $740       $684       $653       $621       $591
Average revenue, before fuel surcharge
  per loaded mile                                  $1.33      $1.19      $1.13      $1.15      $1.17
Empty mile factor                                    5.5%       4.7%       4.5%       4.0%       5.5%

AT END OF PERIOD:
Total company-owned/leased tractors                1,792(2)   1,857(3)   1,913(4)   1,781(5)   1,660(6)
Average age of tractors (in years)                  1.43       1.70       1.94       2.12       1.81
Total trailers                                     4,406      4,257      4,175      3,973      3,932
Average age of trailers (in years)                  3.92       4.69       5.15       5.74       5.31
Number of employees                                3,035      2,736      2,765      2,538      2,424
</TABLE>

During  2002,  the  Company  received  approximately $54.8 million from a public
offering  of  2,621,250  shares of its common stock and used approximately $43.0
million  of  the proceeds to repay long-term debt obligations with the remaining
proceeds  used  to fund capital expenditures and finance general working capital
needs.  As  a  result,  the  Company  experienced an increase in total assets, a
decrease  in  long-term  debt,  and  an  increase  in stockholders' equity as of
December 31, 2002 when compared to December 31, 2001.

During  2003,  the  Company acquired a freight brokerage company and a truckload
motor  carrier  which  when combined, contributed approximately $40.7 million in
additional  revenues  and  $.07 in diluted earnings per share for the year ended
December  31,  2003 when compared to revenues and diluted earnings per share for
the  year  ended  December  31,  2002.  The  acquisition  of the truckload motor
carrier  also  resulted in an increase in our fleet size of 122 tractors and 221
trailers  during  2003  as  compared  to  2002.  For additional information with
respect  to  business  acquisitions,  see  Note 19 to our consolidated financial
statements.

The  Company  has  not  declared  or  paid  any cash dividends during any of the
periods presented above.

ITEM 7.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
         OF OPERATIONS.

BUSINESS OVERVIEW

The Company's administrative headquarters are in Tontitown, Arkansas.  From this
location  we manage operations conducted through wholly owned subsidiaries based
in  various  locations  around  the United States and Canada.  The operations of
these subsidiaries can generally be classified into either truckload services or
brokerage  and  logistics  services.  Truckload  services  include  those
transportation  services  in  which  we  utilize  company  owned  tractors  or
owner-operator  owned  tractors.  Brokerage  and  logistics  services consist of
services  such  as  transportation  scheduling,  routing,  mode  selection,
transloading  and  other  value  added services related to the transportation of
freight  which  may  or  may  not  involve  the  usage  of  company  owned  or
owner-operator  owned  equipment.  Both  our  truckload  operations  and  our
brokerage/logistics  operations  have  similar  economic characteristics and are
impacted  by  virtually the same economic factors as discussed elsewhere in this
Report.  All  of  the  Company's  operations  are  in the motor carrier segment.

                                      -14-
<PAGE>

For  both  operations,  substantially  all  of  our  revenue  is  generated  by
transporting  freight  for  customers and is predominantly affected by the rates
per  mile received from our customers, equipment utilization, and our percentage
of  non-compensated  miles.  These aspects of our business are carefully managed
and  efforts  are continuously underway to achieve favorable results.  Truckload
services  revenues,  excluding  fuel  surcharges,  represented 88.0%, 86.4%, and
86.7%  of  total revenues, excluding fuel surcharges for the twelve months ended
December 31, 2005, 2004, and 2003, respectively.

The  main  factors  that  impact our profitability on the expense side are costs
incurred  in  transporting  freight  for  our  customers.  Currently  our  most
challenging  costs  include fuel, driver recruitment, training, wage and benefit
costs,  independent  broker costs (which we record as purchased transportation),
insurance, and maintenance and capital equipment costs.

In  discussing  our results of operations we use revenue, before fuel surcharge,
(and  fuel  expense,  net  of  surcharge),  because  management  believes  that
eliminating  the  impact  of  this sometimes volatile source of revenue allows a
more  consistent  basis  for  comparing our results of operations from period to
period.  During  2005, 2004 and 2003, approximately $34.5 million, $15.6 million
and  $7.5  million  of  the  Company's  total  revenue  was  generated from fuel
surcharges.  We  also discuss certain changes in our expenses as a percentage of
revenue, before fuel surcharge, rather than absolute dollar changes.  We do this
because  we  believe  the  high variable cost nature of certain expenses makes a
comparison  of  changes  in  expenses as a percentage of revenue more meaningful
than absolute dollar changes.

RESULTS OF OPERATIONS - TRUCKLOAD SERVICES

The  following  table  sets  forth,  for  truckload  services,  the  percentage
relationship of expense items to operating revenues, before fuel surcharges, for
the  periods  indicated.  Operating supplies expense, which includes fuel costs,
are shown net of fuel surcharges.

                                                 YEARS ENDED DECEMBER 31,
                                                  2005     2004     2003
                                                 ------   ------   ------
Operating revenues, before fuel surcharge        100.0%   100.0%   100.0%
                                                 ------   ------   ------
Operating expenses:
   Salaries, wages and benefits                   41.8     43.8     46.2
   Operating supplies, net of fuel surcharge      24.6     23.3     22.0
   Rent and purchased transportation               1.2      0.6      0.3
   Depreciation and amortization                  10.9     11.2     10.4
   Operating taxes and licenses                    5.5      5.8      5.8
   Insurance and claims                            5.5      5.9      5.3
   Communications and utilities                    0.9      0.9      0.9
   Other                                           1.8      1.7      1.6
   Loss on sale or disposal of property            0.1      0.3      0.1
                                                 ------   ------   ------
Total operating expenses                          92.3     93.5     92.6
                                                 ------   ------   ------
Operating income                                   7.7      6.5      7.4
Non-operating income                               0.1      0.2      0.1
Interest expense                                  (0.5)    (0.5)    (0.5)
                                                 ------   ------   ------
Income before income taxes                         7.3%     6.2%     7.0%
                                                 ------   ------   ------

2005 COMPARED TO 2004

For  the  year  ended December 31, 2005, truckload services revenue, before fuel
surcharges,  increased  7.3% to $287.1 million as compared to $267.5 million for
the  year  ended December 31, 2004.  The increase was due to a 10.8% increase in
the  average  rate per total mile charged to customers from $1.13 during 2004 to
$1.26  during  2005.  The  revenue  growth  attributable  to the increase in the
average  rate  per  total mile was partially offset by a 3.1% reduction in total
miles  traveled  from  235.9  million  during 2004 to 228.6 million during 2005.

                                      -15-
<PAGE>

Salaries,  wages  and  benefits  decreased  from  43.8% of revenues, before fuel
surcharges,  in 2004 to 41.8% of revenues, before fuel surcharges, in 2005.  The
decrease  relates  primarily  to  a decrease in driver lease expense, which is a
component  of  salaries,  wages  and  benefits,  as  the average number of owner
operators  under  contract decreased from 93 during 2004 to 66 during 2005.  The
decrease  associated  with  driver  lease  expense  was  partially  offset by an
increase in amounts paid to the corresponding company driver replacement, and in
other  costs  normally  absorbed by the owner operator such as repairs and fuel.
Although  to  a  lesser  degree,  the  effect  of  higher  revenues  without  a
corresponding  increase  in those wages with fixed cost characteristics, such as
general  and administrative wages, also contributed to the decrease in salaries,
wages  and benefits as a percentage of revenues, before fuel surcharges.  During
January  2006 the Company implemented a driver pay increase ranging from $.01 to
$.03 per mile depending on individual driver qualifications and expect salaries,
wages and benefits to increase as a result.

Operating  supplies  and  expenses increased from 23.3% of revenues, before fuel
surcharges,  in 2004 to 24.6% of revenues, before fuel surcharges, in 2005.  The
increase  was primarily due to higher fuel costs resulting from a 34.4% increase
in  the  average price per gallon paid by the Company during 2005 as compared to
2004.  During  periods of rising fuel prices the Company is often able to recoup
at  least a portion of the increase through fuel  surcharges passed along to its
customers.  Fuel  costs,  net  of fuel surcharges, increased to $47.6 million in
2005  from  $40.7  million  in  2004.  The Company collected approximately $34.5
million  in  fuel  surcharges  during  2005 and $15.6 million during 2004.  Fuel
costs  were  also  affected  by  the replacement of owner operators with Company
drivers as discussed above.

Rent  and  purchased transportation increased from 0.6% of revenues, before fuel
surcharges,  in  2004 to 1.2% of revenues, before fuel surcharges, in 2005.  The
increase  relates  primarily  to  an  increase  in  amounts  paid to third party
transportation service providers for intermodal services.

Depreciation  and  amortization  decreased  from  11.2% of revenues, before fuel
surcharges,  in  2004  to  10.9%  of  revenues, before fuel surcharges, in 2005.
Depreciation  expense  increased from $29.9 million during 2004 to $31.3 million
during  2005 primarily due to higher new tractor and trailer prices coupled with
decreased  residual trade-in values guaranteed by the manufacturer, however as a
percentage  of  revenues,  before  fuel  surcharges, a decrease results from the
interaction  of  increased  revenues  from an increased rate per mile charged to
customers and the fixed cost nature of depreciation expense.

Operating  taxes  and  licenses  decreased  from  5.8%  of revenues, before fuel
surcharges,  in  2004  to  5.5%  of  revenues,  before fuel surcharges, in 2005.
Operating  taxes  and licenses which consist primarily of fuel taxes and tractor
and  trailer registration fees increased slightly from $15.5 million during 2004
to  $15.8  million  during 2005.  Fuel tax expense is primarily affected by both
the  number  of  miles traveled and the miles-per-gallon (mpg) achieved.  During
2005  the  Company  experienced a lower mpg of 6.11 as compared to a mpg of 6.31
during 2004, resulting primarily from the replacement of older tractors with new
tractors  containing  engines which comply with the EPA mandated lower emissions
standards.  The  increased  costs  associated  with a lower mpg were offset by a
decrease in the number of miles traveled during 2005 to 228.6 million from 235.9
million  during  2004.  Tractor  and  trailer registration fees, the majority of
which  are fixed on a per unit basis, did not change significantly as the number
of  units  remained  relatively the same, however the fixed cost nature of these
expenses did decrease as a percentage of revenues, before fuel surcharges due to
higher revenues during 2005 as compared to 2004.

Insurance  and  claims  expense  decreased  from  5.9%  of revenues, before fuel
surcharges,  in  2004 to 5.5% of revenues, before fuel surcharges, in 2005.  The
decrease  was  the  result of renegotiations with one of the Company's insurance
providers  to  change  the  method  of  determining the Company's auto liability
insurance  premiums.  Previously,  the  Company's  auto  liability premiums were
determined  using  a specified rate per one hundred dollars of revenue including
fuel  surcharges.  This  method had the unintended consequence of penalizing the
Company  with  increased  insurance  costs solely from passing higher fuel costs
along  to  its  customers  in  the  form  of  fuel  surcharges.  The  method  of
determining  the  Company's auto liability premium is now based on the number of
miles traveled instead of revenue generated.

                                      -16-
<PAGE>

Other  expenses increased from 1.7% of revenues, before fuel surcharges, in 2004
to  1.8%  of revenues, before fuel surcharges, in 2005.  The increase relates to
the  combined  net  effect  of  an  increase  in  current amounts written off as
uncollectible  truckload services revenues and a decrease in recoveries of prior
year  uncollectible  truckload services revenue during 2005 as compared to 2004.
During  2005  the  Company  expensed  an  additional  $1.0  million of truckload
services accounts receivable as uncollectible without any significant recoveries
related  to  prior  years.  During  2004  $100,000 was expensed as uncollectible
truckload  services  accounts  receivable,  however  this  amount was completely
offset  by  the  recovery of $635,000 during 2004 related to the settlement of a
lawsuit  which  allowed  the  Company  to  recapture  approximately  $635,000 of
previously  reported  expense.  The  increase  in  other  expenses was partially
offset  by  a  decrease  in  amounts paid for advertising expense during 2005 as
compared to 2004.

The  truckload  services  division  operating ratio, which measures the ratio of
operating  expenses,  net of fuel surcharges, to operating revenues, before fuel
surcharges, decreased to 92.3% for 2005 from 93.5% for 2004.

2004 COMPARED TO 2003

For  the  year  ended December 31, 2004, truckload services revenue, before fuel
surcharges,  increased  5.1% to $267.5 million as compared to $254.6 million for
the  year  ended  December  31,  2003.  Approximately  $3.6 million of the $12.9
million  increase  was  attributable  to  the  McNeill  Trucking,  Inc.  asset
acquisition  which  closed  on  April  3,  2003  and therefore had no comparable
revenue  for  the first three months of 2003.  The remaining increase was due to
an  increase  in the average rate per total mile charged to customers from $1.08
during 2003 to $1.13 during 2004.

Salaries,  wages  and  benefits  decreased  from  46.2% of revenues, before fuel
surcharges,  in 2003 to 43.8% of revenues, before fuel surcharges, in 2004.  The
decrease  relates  to  the  effect of a higher average rate per mile  charged to
customers  without  a  corresponding  increase  in salaries and wages.  However,
effective  October  1, 2004 a driver pay increase of approximately $.03 per mile
was  implemented  which  began  to  partially  offset the benefit of recent rate
increases  charged  to  customers.  Driver lease expense which is a component of
salaries,  wages  and benefits, also decreased during 2004 as the average number
of  owner  operators  under contract decreased from 118 during 2003 to 93 during
2004.  This decrease in driver lease expense was partially offset by an increase
in  amounts  paid  to the corresponding company driver replacement, and in other
costs  normally  absorbed  by the owner operator such as repairs and fuel.  Also
contributing  to  the decrease in salaries, wages and benefits was the continued
benefit  of  the restructuring of workers compensation plans which resulted in a
decrease in amounts expensed for workers compensation coverage.

Operating  supplies  and  expenses increased from 22.0% of revenues, before fuel
surcharges,  in 2003 to 23.3% of revenues, before fuel surcharges, in 2004.  The
increase  was primarily due to higher fuel costs resulting from a 20.9% increase
in  the  average price per gallon paid by the Company during 2004 as compared to
2003.  During  periods of rising fuel prices the Company is often able to recoup
at  least  a portion of the increase through fuel surcharges passed along to its
customers.  Fuel  costs,  net  of fuel surcharges, increased to $40.7 million in
2004  from  $35.6  million  in  2003.  The Company collected approximately $15.6
million in fuel surcharges during 2004 and $7.3 million during 2003.  Fuel costs
were also affected by the replacement of owner operators with Company drivers as
discussed  above.  Also  contributing  to the increase in operating supplies and
expenses  were  increased  costs associated with our student training program as
the number of students increased during 2004 as compared to 2003.

Rent  and  purchased transportation increased from 0.3% of revenues, before fuel
surcharges,  in  2003 to 0.6% of revenues, before fuel surcharges, in 2004.  The
increase relates primarily to rental and mileage fees incurred on equipment used
past  scheduled  trade-in  dates  due  to  manufacturers'  delays  in  providing
replacement equipment.

                                      -17-
<PAGE>

Depreciation  and  amortization  increased  from  10.4% of revenues, before fuel
surcharges,  in 2003 to 11.2% of revenues, before fuel surcharges, in 2004.  The
increase  was  primarily  due  to the combined effect of higher tractor purchase
prices and lower tractor guaranteed residual values offered by manufacturers.

Insurance  and  claims  expense  increased  from  5.3%  of revenues, before fuel
surcharges,  in  2003 to 5.9% of revenues, before fuel surcharges, in 2004.  The
increase  in  expense  relates  to  the  purchase  of  additional auto liability
coverage  which was not in place during 2003 and to an increase in the amount of
auto liability claims incurred by the Company.

Other  expenses increased from 1.6% of revenues, before fuel surcharges, in 2003
to 1.7% of revenues, before fuel surcharges, in 2004. The increase relates to an
increase  in  amounts paid for both driver recruitment advertising and fees paid
to  the  Company's  external auditors both of which were partially offset by the
settlement  of  a  lawsuit  which allowed the Company to recapture approximately
$635,000  of  previously  reported  expense.  The  recapture  contributed
approximately $.03 to both diluted and basic earnings per share.

The  truckload  services  division  operating ratio, which measures the ratio of
operating  expenses,  net of fuel surcharges, to operating revenues, before fuel
surcharges, increased to 93.5% for 2004 from 92.6% for 2003.

RESULTS OF OPERATIONS - LOGISTICS AND BROKERAGE SERVICES

The  following  table  sets  forth,  for  logistics  and brokerage services, the
percentage  relationship  of  expense  items  to operating revenues, before fuel
surcharges,  for  the  periods  indicated.  Brokerage  service  operations occur
specifically  in  certain  divisions;  however,  brokerage  operations  occur
throughout  the  Company  in  similar  operations  having  substantially similar
economic  characteristics.  Rent  and  purchased  transportation, which includes
costs paid to third party carriers, are shown net of fuel surcharges.

                                                 YEARS ENDED DECEMBER 31,
                                                  2005     2004     2003
                                                 ------   ------   ------
Operating revenues, before fuel surcharge        100.0%   100.0%   100.0%
                                                 ------   ------   ------
Operating expenses:
   Salaries, wages and benefits                    5.1      5.5      4.7
   Operating supplies, net of fuel surcharge       0.0      0.0      0.0
   Rent and purchased transportation              88.0     87.8     88.2
   Depreciation and amortization                   0.2      0.3      0.3
   Operating taxes and licenses                    0.0      0.0      0.0
   Insurance and claims                            0.1      0.1      0.1
   Communications and utilities                    0.4      0.4      0.4
   Other                                           2.5      1.6      1.8
   Loss on sale or disposal of property            0.0      0.0      0.0
                                                 ------   ------   ------
Total operating expenses                          96.3     95.7     95.5
                                                 ------   ------   ------
Operating income                                   3.7      4.3      4.5
Non-operating income                               0.0      0.0      0.0
Interest expense                                  (0.6)    (0.6)    (1.0)
                                                 ------   ------   ------
Income before income taxes                         3.1%     3.7%     3.5%
                                                 ------   ------   ------

2005 COMPARED TO 2004

Logistics  and  brokerage  services  revenues, before fuel surcharges, decreased
6.6%  to $39.2 million for the year ended December 31, 2005 as compared to $42.0
million for the year ended December 31, 2004.  The decrease was primarily due to
a  17.2%  decrease in the number of loads serviced by the Company during 2005 as
compared  to  2004.  This  decrease  was  partially offset by an increase in the
average  revenue collected per load resulting from increased fees charged by the
Company.

                                      -18-
<PAGE>

Salaries,  wages  and  benefits  decreased  from  5.5%  of revenues, before fuel
surcharges,  in  2004 to 5.1% of revenues, before fuel surcharges, in 2005.  The
decrease  relates  to  a  decrease  in  the  number of employees employed by the
logistics and brokerage services division.

Other  expenses increased from 1.6% of revenues, before fuel surcharges, in 2004
to  2.5%  of revenues, before fuel surcharges, in 2005.  The increase relates to
an  increase  in  amounts  written  off as uncollectible logistics and brokerage
services revenues during 2005 as compared to 2004.

The  logistics  and  brokerage services division operating ratio, which measures
the ratio of operating  expenses, net of fuel surcharges, to operating revenues,
before fuel surcharges, increased to 96.3% for 2005 from 95.7% for 2004.

2004 COMPARED TO 2003

Logistics  and  brokerage  services  revenues, before fuel surcharges, increased
7.7%  to $42.0 million for the year ended December 31, 2004 as compared to $39.0
million for the year ended December 31, 2003.  Approximately $2.6 million of the
increase  was  attributable  to  the  additional one month revenues, before fuel
surcharges, for 2004, generated by East Coast Transport, Inc. which was acquired
January 31, 2003.

Salaries,  wages  and  benefits  increased  from  4.7%  of revenues, before fuel
surcharges,  in  2003 to 5.5% of revenues, before fuel surcharges, in 2004.  The
increase  relates  to  the  hiring  of  an  administrative  staff  at East Coast
Transport,  LLC  for  functions  which had previously been outsourced to a third
party  and to an increase in corporate general and administrative salaries being
allocated to the division.

Rent  and purchased transportation decreased from 88.2% of revenues, before fuel
surcharges,  in 2003 to 87.8% of revenues, before fuel surcharges, in 2004.  The
decrease  reflects  the  change  attributable  to  higher  rates  collected from
customers without a corresponding increase in cost.

Other  expenses decreased from 1.8% of revenues, before fuel surcharges, in 2003
to 1.6% of revenues, before fuel surcharges, in 2004.  The decrease relates to a
decrease  in  amounts  paid  for  professional  services due to the hiring of an
administrative  staff  at  East  Coast  Transport,  LLC  for functions which had
previously been outsourced.

The  logistics  and  brokerage services division operating ratio, which measures
the ratio of operating  expenses, net of fuel surcharges, to operating revenues,
before fuel surcharges, increased to 95.7% for 2004 from 95.5% for 2003.

RESULTS OF OPERATIONS - COMBINED SERVICES

2005 COMPARED TO 2004

Net income for all divisions was $13.1 million, or 4.0% of revenues, before fuel
surcharge for 2005 as compared to $10.6 million or 3.4% of revenues, before fuel
surcharge  for  2004.  The  increase  in  net income combined with the effect of
treasury stock repurchases resulted in an increase in diluted earnings per share
to $1.20 for 2005 compared to $.94 for 2004.

2004 COMPARED TO 2003

Net income for all divisions was $10.6 million, or 3.4% of revenues, before fuel
surcharge for 2004 as compared to $11.5 million or 3.9% of revenues, before fuel
surcharge  for  2003.  The  decrease  in  net  income  resulted in a decrease in
diluted earnings per share to $.94 for 2004 compared to $1.01 for 2003.

                                      -19-
<PAGE>

QUARTERLY RESULTS OF OPERATIONS

The  following  table  presents  selected consolidated financial information for
each  of  our  last  eight  fiscal  quarters  through  December  31,  2005.  The
information  has  been  derived from unaudited consolidated financial statements
that,  in  the  opinion  of  management,  reflect all adjustments, consisting of
normal recurring adjustments, necessary for a fair presentation of the quarterly
information.

<TABLE>
<CAPTION>

                                                             QUARTER ENDED
                               MAR. 31,  JUNE 30, SEPT. 30,  DEC. 31,  MAR. 31, JUNE 30,  SEPT. 30,  DEC. 31,
                                2005      2005      2005      2005      2004      2004      2004      2004
                                ----      ----      ----      ----      ----      ----      ----      ----
                                                               (UNAUDITED)
                                              (IN THOUSANDS, EXCEPT EARNINGS PER SHARE DATA)
<S>                          <C>       <C>       <C>       <C>       <C>       <C>       <C>       <C>
Operating revenues (1)        $86,192   $91,027   $88,484   $95,177   $80,120   $82,284   $79,080   $83,582
Total operating expenses (1)   81,034    84,479    84,471    87,370    76,322    75,734    73,491    80,333
Operating income                5,158     6,548     4,013     7,807     3,798     6,550     5,589     3,249
Net income                      2,903     3,680     2,213     4,343     2,031     3,647     3,148     1,762
Earnings per common share:
Basic                           $0.26     $0.33     $0.20     $0.41     $0.18     $0.32     $0.28     $0.16
                                =====     =====     =====     =====     =====     =====     =====     =====
Diluted                         $0.26     $0.33     $0.20     $0.41     $0.18     $0.32     $0.28     $0.16
                                =====     =====     =====     =====     =====     =====     =====     =====
</TABLE>
------------
(1)   In  order to conform to industry practice, during 2004 the Company began
      to classify fuel surcharges charged to customers as revenue rather than as
      a  reduction  of  operating supplies expense. This reclassification has no
      effect  on  net  operating  income,  net income or earnings per share. The
      Company  has  made  corresponding reclassifications to comparative periods
      shown.

LIQUIDITY AND CAPITAL RESOURCES

The  growth  of  our  business  has  required,  and  will continue to require, a
significant  investment  in  new  revenue  equipment.  Our  primary  sources  of
liquidity  have  been  funds  provided by operations, proceeds from the sales of
revenue equipment, issuances of equity securities, and borrowings under our line
of credit.

During  2005,  we  generated  $23.6  million  in  cash from operating activities
compared  to  $44.7  million  and  $37.9 million in 2004 and 2003, respectively.
Investing  activities  used  $40.9 million in cash during 2005 compared to $24.7
million  and $68.4 million in 2004 and 2003, respectively.  The cash used in all
three years related primarily to the purchase of revenue equipment (tractors and
trailers)  used  in  our  operations.  Financing activities used $1.2 million in
cash  during  2005  compared  to  $3.4  million used in 2004 and to $2.8 million
generated in 2003. See Consolidated Statements of Cash Flows.

Our primary use of funds is for the purchase of revenue equipment.  We typically
use  our existing lines of credit on an interim basis, in addition to cash flows
from  operations,  to  finance  capital  expenditures  and repay long-term debt.
During  2005  and  2004,  we  utilized  cash  on hand and our lines of credit to
finance  revenue equipment purchases for an aggregate of $60.8 million and $52.7
million, respectively.

Occasionally we finance the acquisition of revenue equipment through installment
notes  with fixed interest rates and terms ranging from 36 to 48 months, however
as  of December 31, 2005 and 2004, we had no outstanding indebtedness under such
installment notes.

In  order  to maintain our tractor and trailer fleet count it is often necessary
to  purchase  replacement units and place them in service before trade units are
removed  from  service.  The timing difference created during this process often
requires  the  Company  to  pay for new units without any reduction in price for
trade  units.  In  this  situation,  the  Company later receives payment for the
trade units as they are delivered to the equipment vendor and have passed vendor
inspection.  During  the  twelve  months  ended  December 31, 2005 and 2004, the
Company  received  approximately  $17.4 million and $24.3 million, respectively,
for units delivered for trade.

We  maintain  a  $20.0  million  revolving  line  of  credit and a $30.0 million
revolving  line  of  credit  (Line  A  and  Line  B, respectively) with separate
financial institutions.  Amounts outstanding under Line A bear interest at LIBOR
(determined  as  of  the first day of each month) plus 1.40%, (5.69% at December
31,  2005)  are  secured  by our accounts receivable and mature on May 31, 2006,
however  the Company has the intent and ability to extend the terms of this line
of credit for an additional one year period until May 31, 2007.  At December 31,

                                      -20-
<PAGE>

2005  outstanding advances on line A were approximately $17.5 million, including
$310,000  in  letters  of  credit,  with  availability  to  borrow $2.5 million.
Amounts  outstanding under Line B bear interest at LIBOR (determined on the last
day  of the previous month) plus 1.15%, (5.47% at December 31, 2005) are secured
by  revenue  equipment and mature on June 30, 2007.  At December 31, 2005, $26.2
million, including $6.2 million in letters of credit were outstanding under Line
B  with  availability  to  borrow $3.8 million.  In an effort to reduce interest
rate  risk  associated with these floating rate facilities, we have entered into
interest  rate swap agreements in an aggregate notional amount of $20.0 million.
For additional information regarding the interest rate swap agreements, see Item
7A of this Report.

Cash  and  cash  equivalents  at December 31, 2005 decreased approximately $18.5
million  as  compared  to  December  31, 2004.  During December 2005 the Company
purchased  $5.3  million  of  treasury  stock  and paid a $4.4 million estimated
federal  income  tax payment neither of which were done during December of 2004.
The  remaining decrease is attributable to accounts receivable payments from one
of the Company's largest customers not being received until January 2006 instead
of  by  the  end  of  December  as  had happened in December 2004.  See accounts
receivable  discussion  below  and the Consolidated Statements of Cash Flows for
more information.

Accounts  receivable  at December 31, 2005 increased approximately $17.5 million
as  compared  to  December  31,  2004.  During  late  December  2004 the Company
received  an  accounts receivable payment from one of its larger customers which
was not due until January 2005.  This early payment was not repeated in December
2005  as  the  Company received the accounts receivable payment in January 2006.
The  remaining  increase was primarily related to a general increase in revenues
as a whole, all of which flow through our accounts receivable account.

Marketable  equity  securities available for sale at December 31, 2005 increased
approximately  $2.2  million  as compared to December 31, 2004.  During the year
ended  December  31,  2005,  the Company purchased approximately $1.7 million of
equity  securities  with excess cash with the remaining increase attributable to
an  increase in the market value of the investments.  These securities, combined
with  equity  securities  purchased  in  prior periods, have an original cost of
approximately  $8.1  million  and a combined fair market value of $11.0 million.
The  Company  has  developed  a  strategy  to invest in securities from which it
expects  to  receive dividends that qualify for favorable tax treatment, as well
as,  appreciate  in value.  The Company anticipates that increases in the market
value  of  the  investments combined with dividend payments will exceed interest
rates  paid  on borrowings for the same period.  During 2005 the Company had net
unrealized  pre-tax  gains  of  approximately $477,000 and received dividends of
approximately $358,000.  The holding term of these securities depends largely on
the  general  economic  environment, the equity markets, borrowing rates and the
Company's cash requirements.

Accounts  payable  at  December 31, 2005 decreased approximately $6.6 million as
compared  to December 31, 2004.  The decrease is primarily related to a decrease
in  the  amount of bank drafts outstanding in excess of bank balance as compared
to  bank  drafts outstanding at December 31, 2004.  As of December 31, 2005 bank
drafts  of  approximately  $7.5 million were reclassified to accounts payable as
compared  to  approximately  $16.5 million reclassified as of December 31, 2004.
The  net  decrease  also  reflects the increase of approximately $1.0 million in
amounts  accrued  for  third  party  commissions  and a $1.4 million increase in
amounts accrued for fuel purchases.

Long-term  debt  at  December  31, 2005 increased approximately $16.5 million as
compared to December 31, 2004.  The increase is primarily related to an increase
in  the  balance  due  on  the Company's lines of credit at December 31, 2005 as
compared  to  December  31, 2004.  Additional borrowings were required due to an
increase in treasury stock purchases of $17.9 million and $6.5 million in income
tax payments during 2005 as compared to 2004.

Treasury stock at December 31, 2005 increased approximately $17.9 million as the
Company  purchased  1,058,600  shares  of  its  common  stock  at  various times
throughout  2005  as  part  of a stock repurchase plan approved by the Company's
Board  of  Directors  in  April 2005.  The stock repurchase plan, as extended in
September  2005,  authorizes  the  purchase  of  up  to  1,500,000 shares of the
Company's common stock and expires in September 2006.

                                      -21-
<PAGE>

For 2006, we expect to purchase approximately 475 new tractors and approximately
450  trailers while continuing to sell or trade older equipment, which we expect
to  result  in  net  capital  expenditures  of  approximately  $37.6  million.
Management  believes  we will be able to finance our near term needs for working
capital  over  the  next  twelve  months,  as  well  as  acquisitions of revenue
equipment  during  such  period, with cash balances, cash flows from operations,
and  borrowings  believed  to  be  available  from  financing  sources.  We will
continue  to have significant capital requirements over the long-term, which may
require us to incur debt or seek additional equity capital.  The availability of
additional  capital  will  depend  upon prevailing market conditions, the market
price  of  our common stock and several other factors over which we have limited
control,  as  well  as  our  financial  condition  and  results  of  operations.
Nevertheless,  based  on  our  recent  operating results, current cash position,
anticipated  future  cash flows, and sources of financing that we expect will be
available  to  us,  we  do  not  expect  that we will experience any significant
liquidity constraints in the foreseeable future.

CONTRACTUAL OBLIGATIONS AND COMMERCIAL COMMITMENTS

The  following  table  sets  forth  the  Company's  contractual  obligations and
commercial  commitments,  as  defined in Regulation S-K 303 (a)(5)(ii) issued by
the Securities and Exchange Commission, as of December 31, 2005:

                                       Payments due by period
                                       ----------------------
                                           (in thousands)
                                 Less than   1 to 3     4 to 5    More than
                        Total      1 year     Years      Years     5 Years
                       -------    -------    -------    -------    -------
Long-term debt         $41,552     $1,859    $38,713     $  980    $     -
Operating leases (1)     1,748        472        855        421          -
                      --------    -------    -------    -------    -------
Total                  $43,300     $2,331    $39,568     $1,401    $     -
                      ========    =======    =======    =======    =======

(1)  Represents building, facilities, and drop yard operating leases.

OFF-BALANCE SHEET ARRANGEMENTS

The  Company  has no off-balance sheet arrangements as defined in Regulation S-K
303 (a)(4)(ii) issued by the Securities and Exchange Commission.

INSURANCE

With respect to physical damage for tractors, cargo loss and auto liability, the
Company  maintains insurance coverage to protect it from certain business risks.
These  policies are with various carriers and have per occurrence deductibles of
$2,500, $10,000 and $2,500 respectively.  Since 2002, the Company has elected to
self  insure  for  physical  damage  to  trailers.  During  2003, and continuing
through  2005,  the  Company  changed  its  workers'  compensation  coverage  in
Arkansas,  Oklahoma,  Mississippi and Florida from a fully insured policy with a
$350,000  per  occurrence  deductible to become self insured with a $500,000 per
occurrence excess policy.  The Company continues to be self insured for workers'
compensation  in  the  State of Ohio with a $500,000 self insured retention with
excess  insurance.  The  Company has elected to opt out of workers' compensation
coverage  in  Texas  and  is  providing coverage through the P.A.M. Texas Injury
Plan.  The  Company has reserved for estimated losses to pay such claims as well
as  claims  incurred  but not yet reported.  The Company has not experienced any
adverse  trends  involving  differences  in  claims  experienced  versus  claims
estimates  for  workers'  compensation  claims.  Letters  of  credit aggregating
$2,768,000 are held by a bank as security for workers' compensation claims.  The
Company self insures for employee health claims with a stop loss of $175,000 per
covered  employee  per  year and estimates its liability for claims incurred but
not reported.

                                      -22-
<PAGE>

INFLATION

Inflation has an impact on most of our operating costs.  Recently, the effect of
inflation has been minimal.

Competition  for  drivers  has  increased  in recent years, leading to increased
labor  costs.  While  increases  in  fuel  and driver costs affect our operating
costs,  we  do not believe that the effects of such increases are greater for us
than for other trucking concerns.

ADOPTION OF ACCOUNTING POLICIES

See  "Item  8.  Financial  Statements  and  Supplementary  Data,  Note  1 to the
Consolidated Financial Statements - Recent Accounting Pronouncements."

CRITICAL ACCOUNTING POLICIES

The  Company's  significant  accounting  policies are described in Note 1 to the
Consolidated Financial Statements.  The policies described below represent those
that  are  broadly applicable to the Company's operations and involve additional
management  judgment  due  to  the  sensitivity  of the methods, assumptions and
estimates necessary in determining the related amounts.

Accounts  Receivable.  We continuously monitor collections and payments from our
customers,  third  parties  and  vendors  and maintain a provision for estimated
credit  losses  based upon our historical experience and any specific collection
issues that we have identified.  While such credit losses have historically been
within our expectations and the provisions established, we cannot guarantee that
we  will  continue  to experience the same credit loss rates that we have in the
past.

Property  and  equipment.  Management  must use its judgment in the selection of
estimated  useful lives and salvage values for purposes of depreciating tractors
and  trailers  which  in  some  cases  do  not  have guaranteed residual values.
Estimates of salvage value at the expected date of trade-in or sale are based on
the  expected  market values of equipment at the time of disposal which, in many
cases include guaranteed residual values by the manufacturers.

Self  Insurance.  The  Company  is  self-insured  for  health  and  workers'
compensation  benefits  up  to certain stop-loss limits.  Such costs are accrued
based  on  known  claims  and  an  estimate of incurred, but not reported (IBNR)
claims.  IBNR  claims  are  estimated using historical lag information and other
data  either  provided by outside claims administrators or developed internally.
This  estimation  process  is  subjective,  and to the extent that future actual
results  differ from original estimates, adjustments to recorded accruals may be
necessary.

Revenue  Recognition.  Revenue is recognized in full upon completion of delivery
to  the  receiver's  location.  For freight in transit at the end of a reporting
period,  the  Company recognizes revenue prorata based on relative transit miles
completed  as  a  portion  of  the  estimated total transit miles.  Expenses are
recognized as incurred.

Prepaid Tires.  Tires purchased with revenue equipment are capitalized as a cost
of the related equipment. Replacement tires are included in prepaid expenses and
deposits  and  are  amortized  over  a  24-month  period.  Costs related to tire
recapping are expensed when incurred.

Income  Taxes.  Significant  management  judgment  is  required to determine the
provision  for  income taxes and to determine whether deferred income tax assets
will be realized in full or in part.  Deferred income tax assets and liabilities
are  measured using enacted tax rates expected to apply to taxable income in the
years  in  which  those  temporary  differences  are expected to be recovered or
settled.  When  it  is more likely that all or some portion of specific deferred
income  tax  assets  will  not  be  realized,  a  valuation  allowance  must  be
established for the amount of deferred income tax assets that are determined not
to be realizable.  A valuation allowance for deferred income tax  assets has not
been  deemed  to  be  necessary  due  to  the  Company's  profitable operations.
Accordingly,  if  the  facts  or financial circumstances were to change, thereby
impacting  the  likelihood of realizing the deferred income tax assets, judgment
would need to be applied to determine the amount of valuation allowance required
in any given period.

                                      -23-
<PAGE>

Business  Combinations and Goodwill.  Upon acquisition of an entity, the cost of
the  acquired  entity  must  be  allocated  to  assets and liabilities acquired.
Identification  of  intangible  assets,  if  any,  that meet certain recognition
criteria  is  necessary.  This  identification and subsequent valuation requires
significant judgments.  The carrying value of goodwill is tested annually and as
of  December  31, 2005 the Company determined that there was no impairment.  The
impairment  testing requires an estimate of the value of the Company as a whole,
as  the  Company  has  determined  it  only has one reporting unit as defined in
Statement  of  Financial  Accounting  Standards  No.  142,  "Goodwill  and Other
Intangible Assets."

ITEM 7A.  QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK.

Our primary market risk exposures include equity price risk, interest rate risk,
and  commodity  price  risk  (the  price  paid  to  obtain  diesel  fuel for our
tractors).  The  potential  adverse  impact  of  these  risks  and  the  general
strategies we employ to manage such risks are discussed below.

The  following  sensitivity analyses do not consider the effects that an adverse
change  may  have on the overall economy nor do they consider additional actions
we may take to mitigate our exposure to such changes.  Actual results of changes
in prices or rates may differ materially from the hypothetical results described
below.

EQUITY PRICE RISK

We  hold certain actively traded marketable equity securities which subjects the
Company  to  fluctuations  in  the fair market value of its investment portfolio
based  on  current  market  price.  The  recorded  value  of  marketable  equity
securities  increased to $11.0 million at December 31, 2005 from $8.8 million at
December  31, 2004.  The increase reflects additional purchases of approximately
$1.7  million  during  2005  and  an  increase  in  the  fair  market  value  of
approximately  $477,000  during 2005.  A 10% decrease in the market price of our
marketable  equity  securities  would  cause a corresponding 10% decrease in the
carrying  amounts  of  these  securities,  or  approximately  $1.1 million.  For
additional  information  with  respect  to the marketable equity securities, see
Note 3 to our consolidated financial statements.

INTEREST RATE RISK

Our  two  lines  of  credit each bear interest at a floating rate equal to LIBOR
plus  a  fixed percentage.  Accordingly, changes in LIBOR, which are effected by
changes  in  interest rates, will affect the interest rate on, and therefore our
costs  under,  the lines of credit.  In an effort to manage the risks associated
with  changing  interest  rates,  we  entered into interest rate swap agreements
effective February 28, 2001 and May 31, 2001, on notional amounts of $15,000,000
and  $5,000,000,  respectively.  The "pay fixed rates" under the $15,000,000 and
$5,000,000  swap  agreements  are  5.08%  and  4.83%, respectively. The "receive
floating rate" for both swap agreements is "1-month" LIBOR.  These interest rate
swap  agreements  terminate  on  March  2,  2006 and June 2, 2006, respectively.
Assuming  $20.0 million of variable rate debt was outstanding under Line "A" and
not  covered  by  a  hedge  agreement for a full fiscal year, a hypothetical 100
basis  point  increase  in  LIBOR  would  result  in  approximately  $200,000 of
additional  interest  expense.  For  additional  information with respect to the
interest  rate  swap  agreements,  see  Note  17  to  our consolidated financial
statements.

                                      -24-
<PAGE>

COMMODITY PRICE RISK

Prices  and  availability  of  all  petroleum products are subject to political,
economic  and  market  factors  that  are  generally  outside  of  our  control.
Accordingly,  the  price  and  availability  of  diesel  fuel,  as well as other
petroleum  products, can be unpredictable.  Because our operations are dependent
upon  diesel  fuel,  significant increases in diesel fuel costs could materially
and  adversely  affect our results of operations and financial condition.  Based
upon  our  2005 fuel consumption, a 10% increase in the average annual price per
gallon  of  diesel fuel would increase our annual fuel expenses by $8.1 million.

In July 2001, we entered into an agreement to obtain price protection and reduce
a  portion of our exposure to fuel price fluctuations.  Under this agreement, we
were  obligated  to  purchase  minimum  amounts of diesel fuel per month, with a
price  protection  component,  for the six-month period ended February 28, 2002.
The  agreement  also  provided that if during the twelve-month period commencing
January  2005, the price of heating oil on the New York Mercantile Exchange ("NY
MX  HO")  fell  below  $.58  per gallon, we would have been obligated to pay the
contract  holder the difference between $.58 per gallon and the NY MX HO average
price,  multiplied by 1,000,000 gallons.  Accordingly, in any month in which the
holder  exercised  such  right,  we  would have been obligated to pay the holder
$10,000 for each cent by which $.58 exceeded the average NY MX HO price for that
month.  For  example,  if  the  NY  MX  HO  average  price during March 2005 was
approximately  $.54,  and  if  the holder were to exercise its payment right, we
would  have  been obligated to pay the holder approximately $40,000.  During The
twelve-month  period commencing January 2005 the average NY MX HO price remained
well  above  the  $.58  per  gallon  threshold  and  as of December 31, 2005 the
agreement  expired  without  any  further  obligation  of either party.  For the
twelve-month  period  ended December 31, 2005 an adjustment of $500,000 was made
to  reflect  the  decline in fair value of the agreement which had the effect of
reducing  operating  supplies  expense  and  other  current  liabilities each by
$500,000  in  the  accompanying  consolidated  financial  statements.  For  the
twelve-month  period  ended December 31, 2004 an adjustment of $250,000 was made
to  reflect  the  decline in fair value of the agreement which had the effect of
reducing  operating  supplies  expense  and  other  current  liabilities each by
$250,000  in  the accompanying consolidated financial statements, see Note 17 to
our consolidated financial statements.

ITEM 8.  FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.

The following statements are filed with this report:

Report of Independent Registered Public Accounting Firm - Grant Thornton LLP
Report of Independent Registered Public Accounting Firm - Deloitte & Touche LLP
Consolidated Balance Sheets - December 31, 2005 and 2004
Consolidated Statements of Income - Years ended December 31, 2005, 2004 and 2003
Consolidated Statements of Shareholders' Equity - Years ended December 31, 2005
 2004 and 2003
Consolidated Statements of Cash Flows - Years ended December 31, 2005, 2004 and
 2003
Notes to Consolidated Financial Statements

                                      -25-
<PAGE>

             REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
             -------------------------------------------------------

Board of Directors and
Shareholders of P.A.M. Transportation Services, Inc. and Subsidiaries

We  have  audited  the  accompanying  consolidated  balance  sheet  of  P.A.M.
Transportation  Services,  Inc.  (a  Delaware  Corporation)  and  subsidiaries,
(collectively,  the  Company)  as  of  December  31,  2005,  and  the  related
consolidated  statements of income, stockholders' equity and other comprehensive
income,  and cash flows for the year then ended.  These financial statements are
the  responsibility  of  the  Company's  management.  Our  responsibility  is to
express an opinion on these financial statements based on our audit.

We  conducted  our  audit in accordance with the standards of the Public Company
Accounting  Oversight  Board  (United  States).  Those standards require that we
plan  and  perform  the  audit  to obtain reasonable assurance about whether the
financial  statements  are  free  of  material  misstatement.  An audit includes
examining,  on  a test basis, evidence supporting the amounts and disclosures in
the  financial  statements.  An  audit  also  includes  assessing the accounting
principles  used  and  significant  estimates  made  by  management,  as well as
evaluating  the  overall  financial statement presentation.  We believe that our
audit provides a reasonable basis for our opinion.

In  our opinion, the consolidated financial statements referred to above present
fairly,  in  all  material  respects,  the  financial  position  of  P.A.M.
Transportation  Services, Inc. and subsidiaries as of December 31, 2005, and the
results  of  their  operations  and  their cash flows for the year then ended in
conformity with accounting principles generally accepted in the United States of
America.

We  have  also  audited,  in accordance with the standards of the Public Company
Accounting  Oversight  Board (United States), the effectiveness of the Company's
internal  control  over  financial  reporting  as of December 31, 2005, based on
criteria  established  in  Internal  Control-Integrated  Framework issued by the
Committee  of Sponsoring Organizations of the Treadway Commission (COSO) and our
report  dated  March  1,  2006, included in Item 9A of the Annual Report on Form
10-K  for  the year ended December 31, 2005, expressed an unqualified opinion on
management's  assessment  of the effectiveness of the Company's internal control
over  financial reporting and an unqualified opinion on the effectiveness of the
Company's internal control over financial reporting.

/s/ GRANT THORNTON LLP
Tulsa, Oklahoma
March 1, 2006

                                      -26-
<PAGE>

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Board of Directors
P.A.M. Transportation Services, Inc. and Subsidiaries

We  have  audited  the  accompanying  consolidated  balance  sheet  of  P.A.M.
Transportation  Services,  Inc.  (a  Delaware corporation) and subsidiaries (the
"Company")  as  of December 31, 2004, and the related consolidated statements of
income,  stockholders' equity and other comprehensive income, and cash flows for
the years  ended December 31, 2004 and 2003.  These financial statements are the
responsibility of the Company's management.  Our responsibility is to express an
opinion on these financial statements based on our audits.

We  conducted  our audits in accordance with the standards of the Public Company
Accounting  Oversight  Board  (United  States).  Those standards require that we
plan  and  perform  the  audit  to obtain reasonable assurance about whether the
financial  statements  are  free  of  material  misstatement.  An audit includes
examining,  on  a test basis, evidence supporting the amounts and disclosures in
the  financial  statements.  An  audit  also  includes  assessing the accounting
principles  used  and  significant  estimates  made  by  management,  as well as
evaluating  the  overall  financial statement presentation.  We believe that our
audits provide a reasonable basis for our opinion.

In  our  opinion,  such consolidated financial statements present fairly, in all
material  respects,  the  financial  position of P.A.M. Transportation Services,
Inc.  and  subsidiaries  as  of  December  31,  2004,  and  the results of their
operations  and their cash flows for the years ended December 31, 2004 and 2003,
in conformity with accounting principles generally accepted in the United States
of America.

/s/ DELOITTE & TOUCHE LLP
Little Rock, Arkansas
March 8, 2005

                                      -27-
<PAGE>

<TABLE>
<CAPTION>
P.A.M. TRANSPORTATION SERVICES, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2005 AND 2004
(In thousands, except share data)
---------------------------------------------------------------------------------
<S>                                                      <C>            <C>
ASSETS                                                       2005           2004

CURRENT ASSETS:

  Cash and cash equivalents                               $  1,129       $ 19,659
  Accounts receivable-net:
    Trade                                                   65,433         47,926
    Other                                                    1,392          1,110
  Inventories                                                  749            913
  Prepaid expenses and deposits                             15,095         14,862
  Marketable equity securities available-for-sale           10,999          8,792
  Income taxes refundable                                      225            754
                                                          --------       --------

           Total current assets                             95,022         94,016

PROPERTY AND EQUIPMENT:
  Land                                                       2,674          2,674
  Structures and improvements                                9,319          9,299
  Revenue equipment                                        250,664        238,750
  Service vehicles                                             807            878
  Office furniture and equipment                             5,885          5,571
                                                          --------       --------

           Total property and equipment                    269,349        257,172

  Accumulated depreciation                                 (87,854)       (83,029)
                                                          --------       --------

           Net property and equipment                      181,495        174,143

OTHER ASSETS:
  Goodwill                                                  15,413         15,413
  Non-compete agreements, net                                  417            654
  Other                                                      1,094          1,123
                                                          --------       --------

           Total other assets                               16,924         17,190
                                                          --------       --------

TOTAL ASSETS                                              $293,441       $285,349
                                                          ========       ========
</TABLE>
                                                                    (Continued)

                                      -28-
<PAGE>

<TABLE>
<CAPTION>
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2005 AND 2004
(In thousands, except share data)
---------------------------------------------------------------------------------
<S>                                                      <C>            <C>
LIABILITIES AND SHAREHOLDERS' EQUITY                         2005           2004

CURRENT LIABILITIES:
  Accounts payable                                        $ 22,055       $ 28,702
  Accrued expenses and other liabilities                    10,507          9,828
  Current maturities of long-term debt                       1,859          2,080
  Deferred income taxes                                      7,134          7,162
                                                          --------       --------

           Total current liabilities                        41,555         47,772

  Long-term debt - current portion                          39,693         23,225
  Deferred income taxes - current portion                   47,197         45,375
  Other                                                        234            434
                                                          --------       --------

           Total liabilities                               128,679        116,806
                                                          --------       --------

COMMITMENTS AND CONTINGENCIES

SHAREHOLDERS' EQUITY:
  Preferred stock, $.01 par value, 10,000,000 shares
    authorized; 0 shares issued and outstanding at
    December 31, 2005 and 2004                                   -              -
  Common stock, $.01 par value, 40,000,000 shares
    authorized; 11,344,207 and 11,303,207 shares issued;
    10,285,607 and 11,303,207 shares outstanding at
    December 31, 2005 and 2004, respectively                   113            113
  Additional paid-in capital                                76,429         76,050
  Accumulated other comprehensive income                     1,721          1,151
  Treasury stock, at cost; 1,058,600 shares                (17,869)             -
  Retained earnings                                        104,368         91,229
                                                          --------       --------

           Total shareholders' equity                      164,762        168,543
                                                          --------       --------

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                $293,441       $285,349
                                                          ========       ========
</TABLE>

See notes to consolidated financial statements.                     (Concluded)

                                      -29-
<PAGE>

<TABLE>
<CAPTION>
P.A.M. TRANSPORTATION SERVICES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME
YEARS ENDED DECEMBER 31, 2005, 2004 AND 2003
(In thousands, except per share data)
-------------------------------------------------------------------------------
<S>                                             <C>        <C>        <C>
                                                   2005       2004       2003
OPERATING REVENUES:
  Revenue, before fuel surcharge                 $326,353   $309,475   $293,547
  Fuel surcharge                                   34,527     15,591      7,491
                                                 --------   --------   --------

           Total operating revenues               360,880    325,066    301,038
                                                 --------   --------   --------

OPERATING EXPENSES AND COSTS:
  Salaries, wages, and benefits                   122,005    119,519    119,350
  Operating supplies and expenses                 104,131     77,363     63,241
  Rents and purchased transportation               39,074     38,938     35,287
  Depreciation and amortization                    31,376     30,016     26,601
  Operating taxes and licenses                     15,776     15,488     14,710
  Insurance and claims                             15,992     15,820     13,500
  Communications and utilities                      2,648      2,690      2,540
  Other                                             6,205      5,131      4,755
  Loss on sale or disposal of equipment               147        915        368
                                                 --------   --------   --------

           Total operating expenses and costs     337,354    305,880    280,352
                                                 --------   --------   --------

NET OPERATING INCOME                               23,526     19,186     20,686

NON-OPERATING INCOME                                  477        464        276
INTEREST EXPENSE                                   (1,881)    (1,758)    (1,667)
                                                 --------   --------   --------

NET INCOME BEFORE INCOME TAXES                     22,122     17,892     19,295

FEDERAL AND STATE INCOME TAXES:
  Current                                           7,572        479        630
  Deferred                                          1,411      6,825      7,175
                                                 --------   --------   --------

           Total federal and state income taxes     8,983      7,304      7,805
                                                 --------   --------   --------

NET INCOME                                       $ 13,139   $ 10,588   $ 11,490
                                                 ========   ========   ========
EARNINGS PER COMMON SHARE:
  Basic                                          $   1.20   $   0.94   $   1.02
                                                 ========   ========   ========
  Diluted                                        $   1.20   $   0.94   $   1.01
                                                 ========   ========   =========
AVERAGE COMMON SHARES OUTSTANDING:
  Basic                                            10,966     11,298     11,291
                                                 ========   ========   ========
  Diluted                                          10,976     11,324     11,326
                                                 ========   ========   ========
</TABLE>
See notes to consolidated financial statements.
                                      -30-
<PAGE>

<TABLE>
<CAPTION>
P.A.M. TRANSPORTATION SERVICES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY AND OTHER COMPREHENSIVE INCOME
YEARS ENDED DECEMBER 31, 2005, 2004 AND 2003
(In thousands)
-----------------------------------------------------------------------------------------------------------------------------------
                                                                                   ACCUMULATED
                                                    ADDITIONAL       OTHER            OTHER
                                 COMMON STOCK        PAID-IN      COMPREHENSIVE   COMPREHENSIVE   TREASURY     RETAINED
                                SHARES  AMOUNT       CAPITAL         INCOME        INCOME (LOSS)   STOCK       EARNINGS     TOTAL
<S>                           <C>      <C>         <C>           <C>             <C>            <C>         <C>          <C>
BALANCE-January 1, 2003        11,282   $ 113        $76,193                          $(1,005)   $      -       $69,151   $144,452

 Components of
  comprehensive income:
   Net earnings                                                     $11,490                                      11,490     11,490

Other comprehensive gain:
    Unrealized gain on hedge,
     net of tax of $148                                                 223               223                                  223
    Unrealized gain on
     marketable securities,
     net of tax of $631                                                 946               946                                  946
                                                                    -------
  Total comprehensive income                                        $12,659
                                                                    =======
 Stock options-deferred
  stock compensation                                    (398)                                                                 (398)

Exercise of stock options-
  shares issued including
   tax benefits                    12                    162                                                                   162
                               ------    ----        -------                           ------    --------     --------    --------
BALANCE-December 31, 2003      11,294     113         75,957                              164           -       80,641     156,875

 Components of
  comprehensive income:
  Net earnings                                                      $10,588                                     10,588      10,588

  Other comprehensive gain:
   Unrealized gain on hedge,
    net of $314                                                         481               481                                  481
   Unrealized gain on
    marketable securities,
    net of tax of $371                                                  506               506                                  506
                                                                    -------
  Total comprehensive income                                        $11,575
                                                                    =======
 Exercise of stock options-
  shares issued including
   tax benefits                     9                     93                                                                    93
                               ------    ----        -------                           ------    --------    --------     --------
BALANCE-December 31, 2004      11,303     113         76,050                            1,151           -      91,229      168,543

 Components of
  comprehensive income:
  Net earnings                                                      $13,139                                    13,139       13,139

  Other comprehensive gain:
   Unrealized gain on hedge,
    net of $195                                                         282               282                                  282
   Unrealized gain on
    marketable securities,
    net of tax of $189                                                  288               288                                  288
                                                                    -------
  Total comprehensive income                                        $13,709
                                                                    =======
 Treasury stock repurchases    (1,059)                                                            (17,869)                 (17,869)

 Exercise of stock options-
  shares issued including
   tax benefits                    41                    379                                                                   379
                               ------    ----        -------                           ------    --------    --------     --------
BALANCE-December 31, 2005      10,285    $113        $76,429                           $1,721    $(17,869)   $104,368     $164,762
                               ======    ====        =======                           ======    ========    ========     ========

</TABLE>
See notes to consolidated financial statements.

                                      -31-
<PAGE>

<TABLE>
<CAPTION>
P.A.M. TRANSPORTATION SERVICES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31, 2005, 2004 AND 2003
(In thousands)
------------------------------------------------------------------------------------------------------------
<S>                                                                        <C>         <C>         <C>
                                                                                2005        2004        2003
OPERATING ACTIVITIES:
  Net income                                                                $  13,139   $  10,588   $  11,490
  Adjustments to reconcile net income to net cash
   provided by operating activities:
    Depreciation and amortization                                              31,376      30,016      26,601
    Bad debt expense (recovery)                                                 1,428        (410)        110
    Non-competition agreement amortization-net of payments                         37          88          42
    Provision for deferred income taxes                                         1,411       6,825       7,175
    Gain on sale of marketable equity securities                                    -           -         (47)
    Reclassification of unrealized loss on marketable equity securities           153           -           -
    Loss on sale or disposal of equipment                                         147         915         368
    Changes in operating assets and liabilities-net of acquisition:
      Accounts receivable                                                     (19,236)     (1,393)    (11,983)
      Prepaid expenses, inventories, and other assets                             (40)     (8,279)     (3,170)
      Income taxes refundable                                                     528         502        (975)
      Trade accounts payable                                                   (5,881)      7,202       7,156
      Accrued expenses                                                            679      (1,339)      1,168
                                                                            ---------   ---------   ---------

           Net cash provided by operating activities                           23,741      44,715      37,935
                                                                            ---------   ---------   ---------

INVESTING ACTIVITIES:
  Purchases of property and equipment                                         (62,013)    (53,703)    (74,238)
  Proceeds from sale or disposal of equipment                                  22,850      31,360      20,393
  Purchase of marketable equity securities                                     (1,884)     (2,423)     (4,020)
  Acquisition of businessof cash acquired                                           -           -     (10,752)
  Other                                                                            20          36         207
                                                                            ---------   ---------   ---------

           Net cash used in investing activities                              (41,027)    (24,730)    (68,410)

FINANCING ACTIVITIES:
  Borrowings under line of credit                                             422,460     350,787     353,899
  Repayments under line of credit                                            (405,277)   (353,656)   (351,030)
  Borrowings of long-term debt                                                  1,977       4,404       1,666
  Repayments of long-term debt                                                 (2,913)     (5,010)     (1,922)
  Repurchases of common stock                                                 (17,869)          -           -
  Other                                                                           378          85         160
                                                                            ---------   ---------   ---------

           Net cash (used in) provided by financing activities                 (1,244)     (3,390)      2,773
                                                                            ---------   ---------   ---------

NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS                          (18,530)     16,595     (27,702)

CASH AND CASH EQUIVALENTS-Beginning of year                                    19,659       3,064      30,766
                                                                            ---------   ---------   ---------

CASH AND CASH EQUIVALENTS-End of year                                       $   1,129   $  19,659   $   3,064
                                                                            =========   =========   =========

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
  Cash paid during the year for:
    Interest                                                                $   1,928   $   1,774   $   1,591
                                                                            =========   =========   =========

    Income taxes                                                            $   7,190   $     515   $   1,119
                                                                            =========   =========   =========
</TABLE>
See notes to consolidated financial statements

                                      -32-
<PAGE>

P.A.M. TRANSPORTATION SERVICES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2005, 2004, AND 2003
--------------------------------------------------------------------------------
1.  ACCOUNTING POLICIES

DESCRIPTION  OF  BUSINESS  AND PRINCIPLES OF CONSOLIDATION-P.A.M. Transportation
Services,  Inc.  (the  "Company"),  through  its  subsidiaries,  operates  as  a
truckload transportation and logistics company.

The  consolidated  financial  statements include the accounts of the Company and
its  wholly  owned  operating  subsidiaries:  P.A.M.  Transport,  Inc.,  P.A.M.
Dedicated  Services,  Inc., Choctaw Express, Inc., Allen Freight Services, Inc.,
Decker  Transport  Co.,  Inc.,  McNeill  Express,  Inc., T.T.X., Inc., Transcend
Logistics,  Inc.,  and  East  Coast  Transport and Logistics, LLC. The following
subsidiaries  were  inactive during all periods presented: P.A.M. International,
Inc.,  P.A.M.  Logistics Services, Inc., Choctaw Brokerage, Inc., P.A.M. Canada,
Inc.  and  S  &  L  Logistics,  Inc.  All  significant intercompany accounts and
transactions have been eliminated.

USE  OF  ESTIMATES-The  preparation  of  financial statements in conformity with
accounting  principles  generally  accepted  in  the  United  States  of America
requires  management  to make estimates and assumptions that affect the reported
amounts  of  assets  and  liabilities,  disclosure  of any contingent assets and
liabilities  at the financial statement date and reported amounts of revenue and
expenses  during  the  reporting  period. The Company periodically reviews these
estimates  and assumptions. The Company's estimates were based on its historical
experience  and  various  other  assumptions  that  the  Company  believes to be
reasonable  under  the  circumstances.  Actual  results  could differ from those
estimates.

CASH  AND  CASH  EQUIVALENTS-The Company considers all highly liquid investments
with a maturity of three months or less when purchased to be cash equivalents.

ACCOUNTS  RECEIVABLE  OTHER-The  components of accounts receivable other consist
primarily  of  company  driver  advances,  owner operator advances and equipment
manufacturer warranties. Advances receivable from company drivers as of December
31, 2005 and 2004, were approximately $484,000 and $426,000, respectively.

ACCOUNTS  RECEIVABLE  ALLOWANCE-An allowance is provided for accounts receivable
based  on  historical  collection experience. Additionally, management considers
any  accounts  individually  known  to  exhibit  characteristics  indicating  a
collection problem.

MARKETABLE  EQUITY SECURITIES-Marketable equity securities, which are classified
by  the  Company  as  available  for  sale,  are  carried  at  market value with
unrealized gains and losses recognized in accumulated other comprehensive income
in  the  statements  of  stockholders'  equity.  Realized  gains  and losses are
computed utilizing the specific identification method.

IMPAIRMENT  OF  LONG-LIVED  ASSETS-The Company reviews its long-lived assets for
impairment  whenever  events  or  changes  in  circumstances  indicate  that the
carrying amount of a long-lived asset may not be recoverable. An impairment loss
would  be  recognized  if  the  carrying  amount  of the long-lived asset is not
recoverable,  and it exceeds its fair value. For long-lived assets classified as
held  and used, if the carrying value of the long-lived asset exceeds the sum of
the  future  net  cash  flows,  it  is  not  recoverable.  The  Company does not
separately identify assets by subsidiary, as tractors and trailers are routinely
transferred  from  one  division  to another. As a result, none of the Company's
long-lived  assets  have  identifiable  cash  flows  from  use  that are largely
independent  of  the cash flows of other assets and liabilities. Thus, the asset
group  used to assess impairment would include all assets and liabilities of the
Company.

                                      -33-
<PAGE>

PROPERTY  AND  EQUIPMENT-Property  and  equipment  is  recorded  at  cost,  less
accumulated  depreciation.  For  financial  reporting purposes, the cost of such
property  is  depreciated  principally  by  the  straight-line  method.  For tax
reporting purposes, accelerated depreciation or applicable cost recovery methods
are  used. Depreciation is recognized over the estimated asset life, considering
the  estimated  salvage  value  of  the  asset. Such salvage values are based on
estimates using expected market values for used equipment and the estimated time
of  disposal  which,  in  many  cases  include guaranteed residual values by the
manufacturers.  Gains  and  losses  are  reflected  in the year of disposal. The
following  is a table reflecting estimated ranges of asset useful lives by major
class of depreciable assets:

                   ASSET CLASS                ESTIMATED ASSET LIFE

              Service vehicles                    3-5 years
              Office furniture and equipment      3-7 years
              Revenue equipment                   3-10 years
              Structures and improvements         5-30 years

PREPAID  TIRES-Tires  purchased with revenue equipment are capitalized as a cost
of  the  related  equipment.  Replacement tires are included in prepaid expenses
and  deposits  and  are  amortized over a 24-month period.  Amounts paid for the
recapping of tires are expensed when incurred.

ADVERTISING  EXPENSE-Advertising  costs  are  expensed  as  incurred and totaled
approximately $350,000, $1,100,000 and $680,000 for the years ended December 31,
2005, 2004, and 2003, respectively.

REPAIRS AND MAINTENANCE-Repairs and maintenance costs are expensed as incurred.

GOODWILL-The Company follows the provisions of Statement of Financial Accounting
Standards No. 142, Goodwill and Other Intangible Assets, ("SFAS No. 142"), which
requires  the  Company  to  assess  acquired  goodwill  for  impairment at least
annually  in the absence of an indicator of possible impairment, and immediately
upon  an indicator of possible impairment.  The Company has selected December 31
for  its  annual impairment testing and determined as of December 31, 2005 there
was no impairment.

SELF  INSURANCE  LIABILITY-A  liability is recognized for known health, workers'
compensation,  cargo  damage,  property  damage  and  auto liability damage.  An
estimate  of  the incurred but not reported claims for each type of liability is
made  based  on  historical  claims made, estimated frequency of occurrence, and
considering changing factors that contribute to the overall cost of insurance.

INCOME  TAXES-The  Company  applies  the  provisions  of  Statement of Financial
Accounting  Standards  No.  109,  Accounting  for Income Taxes ("SFAS No. 109").
Under  this  method, deferred tax liabilities and assets are determined based on
the difference between the financial reporting basis and the tax reporting basis
of assets and liabilities using enacted tax rates.

                                      -34-
<PAGE>

REVENUE  RECOGNITION  POLICY-Revenue  is  recognized  in full upon completion of
delivery  to  the  receiver's  location.  For freight in transit at the end of a
reporting  period,  the  Company  recognizes  revenue pro rata based on relative
transit  miles  completed  as  a  portion  of the estimated total transit miles.
Expenses are recognized as incurred.

STOCK  BASED  COMPENSATION TO EMPLOYEES-Stock based compensation to employees is
accounted  for  based  on the intrinsic value method under Accounting Principles
Board Opinion No. 25, Accounting for Stock Issued to Employees ("APB Opinion No.
25"),  and  related  interpretations in accounting for those plans.  Stock-based
compensation  expense  has  been  recognized  for  variable  stock  options  in
accordance  with  Interpretation  28  to  APB  Opinion  No. 25.  No compensation
expense  is recorded for non-variable stock options as all options granted under
those  plans  had  an exercise price equal to the market value of the underlying
common  stock  on  the  date  of  the grant.  The Company follows the disclosure
provisions  of  Statement  of Financial Accounting Standards No. 148, Accounting
for  Stock-Based  Compensation--Transition  and Disclosure, an Amendment of FASB
Statement  No. 123 ("SFAS No. 148") as described below and in Note 12.

The  Company  adopted  the  disclosure-only provisions of Statement of Financial
Accounting Standards No. 123, Accounting for Stock-Based Compensation ("SFAS No.
123").  The  following  table  illustrates the effect on net income and earnings
per  share  if  the Company had applied the fair value recognition provisions of
SFAS No. 123 to stock-based employee compensation:

<TABLE>
<CAPTION>

                                                       2005         2004         2003

                                                   (In thousands, except per share data)
<S>                                                 <C>          <C>          <C>
Net income-as reported                               $13,139      $10,588      $11,490
Stock-based employee compensation included in
  reported net income-net of related tax effects           -            -          (28)
Deduct total stock-based employee compensation
  expense determined under fair value based
  method for all awards-net of related tax effects      (296)        (292)        (322)
                                                     -------      -------      -------

Pro forma net income                                 $12,843      $10,296      $11,140
                                                     =======      =======      =======
Earnings per share:
  Basic-as reported                                  $  1.20      $  0.94      $  1.02
  Basic-pro forma                                    $  1.17      $  0.91      $  0.99

  Diluted-as reported                                $  1.20      $  0.94      $  1.01
  Diluted-pro forma                                  $  1.17      $  0.91      $  0.98

</TABLE>

The  fair value of each option grant is estimated on the date of grant using the
Black-Scholes  option  pricing  model  with  the  following  weighted  average
assumptions used during the periods above:

                              2005              2004              2003

Dividend yield                  0 %               0 %               0 %
Volatility range          33.86%-38.54%     35.37%-38.54%     37.34%-61.27%
Risk-free rate range       4.08%-4.38%       2.70%-4.38%       3.02%-4.38%
Expected life                5 years           5 years           5 years
Fair value of options      $6.73-$9.45       $6.62-$9.45       $5.10-$9.45

                                      -35-
<PAGE>

EARNINGS  PER SHARE-The Company computes and presents earnings per share ("EPS")
in accordance with Statement of Financial Accounting Standards No. 128, Earnings
per  Share  ("SFAS  No.  128").  The  difference  between  the  Company's
weighted-average shares outstanding and diluted shares outstanding is due to the
dilutive  effect  of  stock  options for all periods presented.  See Note 13 for
computation of diluted EPS.

BUSINESS  SEGMENT  AND CONCENTRATIONS OF CREDIT RISK-The Company operates in one
business  segment,  motor  carrier  operations.  The  Company provides truckload
transportation services as well as brokerage and logistics services to customers
throughout  the  United  States  and  portions  of Canada and Mexico.  Truckload
transportation  services revenues, excluding fuel surcharges, represented 88.0%,
86.4%,  and  86.7%  of total revenues, excluding fuel surcharges, for the twelve
months  ended  December  31,  2005,  2004,  and  2003,  respectively.  Remaining
revenues,  excluding fuel surcharges, for each respective year were generated by
brokerage  and  logistics  services.  The  Company  performs  ongoing  credit
evaluations  and  generally does not require collateral from its customers.  The
Company  maintains  reserves  for  potential  credit  losses.  In  view  of  the
concentration  of the Company's revenues and accounts receivable among a limited
number of customers within the automobile industry, the financial health of this
industry is a factor in the Company's overall evaluation of accounts receivable.

RECENT ACCOUNTING PRONOUNCEMENTS-In May 2005, the Financial Accounting Standards
Board  ("FASB")  issued  Statement  of  Financial  Accounting Standards No. 154,
Accounting  Changes  and  Error Corrections, a replacement of APB Opinion No. 20
and  FASB Statement No. 3 ("SFAS No. 154").  SFAS No. 154 requires retrospective
application  to  prior  periods'  financial statements for changes in accounting
principle,  unless  it  is impracticable to determine either the period-specific
effects  or  the cumulative effect of the change.  This Statement applies to all
voluntary  changes  in accounting principle as well as to changes required by an
accounting pronouncement in the unusual instance that the pronouncement does not
include  specific transition provisions.  SFAS No. 154 further requires a change
in  depreciation, amortization or depletion method for long-lived, non-financial
assets  to  be  accounted  for  as a change in accounting estimate effected by a
change  in  accounting  principle.  Corrections  of errors in the application of
accounting  principles  will  continue to be reported by retroactively restating
the  affected  financial  statements.  The  provisions  of  this  statement  are
effective  for  accounting changes and correction of errors made in fiscal years
beginning  after  December 15, 2005.  Adoption of this statement is not expected
to have a material effect on the Company's consolidated financial statements.

In March 2005, the FASB issued Interpretation No. 47, Accounting for Conditional
Asset  Retirement Obligations- an interpretation of FASB Statement No. 143 ("FIN
47").  FIN 47 clarifies the term conditional asset retirement obligation as used
in  Statement  of  Financial  Accounting Standards No. 143, Accounting for Asset
Retirement  Obligations, and requires an entity to recognize a liability for the
fair value of a conditional asset retirement obligation if the fair value can be
reasonably  estimated.  Any uncertainty about the amount and/or timing of future
settlement  of a conditional asset retirement obligation should be factored into
the  measurement  of  the  liability when sufficient information exists.  FIN 47
also  clarifies  when  an entity would have sufficient information to reasonably
estimate  the  fair value of an asset retirement obligation. FIN 47 is effective
for fiscal years ending after December 15, 2005.  Adoption of this statement did
not have a material effect on the Company's consolidated financial statements.

In  December  2004,  the FASB issued Statement of Financial Accounting Standards
No.  123(R)  ,  Share-Based Payment, ("SFAS No. 123(R)") which replaces SFAS No.
123, Accounting for Stock-Based Compensation, and supersedes APB Opinion No. 25,
Accounting for Stock Issued to Employees.  SFAS No. 123(R) requires compensation
costs  relating  to  share-based payment transactions be recognized in financial
statements.  The  pro  forma  disclosure previously permitted under SFAS No. 123
will  no  longer  be an acceptable alternative to recognition of expenses in the
financial  statements.  SFAS No. 123(R) was originally to be effective as of the
beginning of the first interim or annual reporting period that begins after June
15,  2005,  with  early  adoption encouraged.  In April 2005, the Securities and
Exchange  Commission  announced  the  adoption  of  a  new  rule that amends the
effective date of SFAS No. 123(R).  The Company adopted this standard on January
1,  2006  and  it  will  now  report in its financial statements the share-based
compensation expense for reporting periods beginning in 2006.  As of the date of
this  filing,  management  believes  that  adopting the new standard will have a

                                      -36-
<PAGE>

negative  impact  of  approximately  two  cents  per  share  for the year ending
December  31,  2006,  representing the expense to be recognized for the unvested
portion  of  awards  granted  to date, and cannot predict the earnings impact of
awards that may be granted in the future.

In  December  2004,  the FASB issued Statement of Financial Accounting Standards
No.  153,  Exchanges  of  Nonmonetary  Assets-an amendment to APB Opinion No. 29
("SFAS No. 153").  This statement amends Accounting Principles Board Opinion No.
29  ("APB  No.  29")  to  eliminate  the  exception for nonmonetary exchanges of
similar productive assets and replaces it with a general exception for exchanges
of  nonmonetary  assets  that  do  not have commercial substance.  A nonmonetary
exchange  has  commercial  substance  if the future cash flows of the entity are
expected  to  change significantly as a result of the exchange.  SFAS No. 153 is
effective  for nonmonetary exchanges occurring in fiscal periods beginning after
June 15, 2005.  Adoption of this statement did not have a material effect on the
Company's consolidated financial statements.

2.  ACCOUNTS RECEIVABLE

The  Company's  receivables result primarily from the sale of transportation and
logistics  services.  The  Company  performs  ongoing  credit evaluations of its
customers  and  generally  does  not require collateral for accounts receivable.
Accounts  receivable  which  consist  of both billed and unbilled receivables is
presented  net  of  an  allowance  for  doubtful  accounts.  Accounts receivable
balances  consist  of the following components as of December 31, 2005 and 2004:

                                        2005        2004
                                         (In thousands)

 Billed                               $56,953     $42,950
 Unbilled                              10,510       5,744
 Allowance for doubtful accounts       (2,030)       (768)
                                      -------     -------

 Total accounts receivable            $65,433     $47,926
                                      =======     =======

An  analysis  of  changes  in  the allowance for doubtful accounts for the years
ended December 31, 2005, 2004, and 2003 follows:

                                        2005        2004        2003
                                               (In thousands)

Balance-beginning of year              $  768      $  834      $  716
Provision for bad debts                 1,490         430         110
Charge-offs                              (228)       (701)          -
Recoveries                                  -         205           8
                                       ------      ------      ------
Balance-end of year                    $2,030      $  768      $  834
                                       ======      ======      ======

The December 31, 2004 charge-offs include $205,000 that was written off in prior
periods  and  recovered during 2004.  However, the December 31, 2004 charge-offs
and  recoveries  do  not  include an amount representing an approximate $635,000
reduction  in  liability and bad debt expense resulting from the settlement of a
lawsuit (see Note 15).
                                      -37-
<PAGE>

3.  MARKETABLE EQUITY SECURITIES

The  Company accounts for its marketable securities in accordance with Statement
of Financial Accounting Standards No. 115, Accounting for Certain Investments in
Debt and Equity Securities ("SFAS No. 115").  SFAS No. 115 requires companies to
classify  their  investments  as  either  trading,  available-for-sale  or
held-to-maturity.  The  Company's  investments  in  marketable  securities  are
classified  as  available-for-sale and consist of equity securities.  Management
determines  the  appropriate  classification  of these securities at the time of
purchase  and  re-evaluates  such  designation  as  of  each balance sheet date.
During  2005  and  2004,  there were no sales or reclassifications of marketable
securities.  These  securities  are  carried  at fair value, with the unrealized
gains  and  losses,  net  of  tax,  included as a component of accumulated other
comprehensive  income  in  shareholders' equity.  The cost of securities sold is
based  on  the  specific  identification  method.  Interest  and  dividends  on
securities  classified  as  available-for-sale  are  included  in  non-operating
income.  Realized  gains  and  losses,  and  declines  in  value  judged  to  be
other-than-temporary  on  available-for-sale securities, if any, are included in
the determination of net incomeas gains (losses) on the sale of securities.

As of December 31, 2005, these equity securities had a combined original cost of
approximately  $8,291,000  and  a  combined  fair  market value of approximately
$10,999,000.  For  the  year  ended  December  31,  2005,  the  Company  had net
unrealized  gains  in  market value of approximately $1,740,000, net of deferred
income  taxes.  These  securities  had  gross  unrealized gains of approximately
$3,150,000  and  gross  unrealized  losses  of  approximately  $219,000.  As  of
December  31,  2005, the total unrealized gain, net of deferred income taxes, in
accumulated other comprehensive income was approximately $1,740,000.

As of December 31, 2004, the Company's equity securities had a combined original
cost  of  approximately  $6,336,000  and  a  combined  fair  market  value  of
approximately $8,792,000.  For the year ended December 31, 2004, the Company had
net  unrealized gains in market value of approximately $506,000, net of deferred
income  taxes.  These  securities  had  gross  unrealized gains of approximately
$2,498,000 and gross unrealized losses of approximately $44,000.  As of December
31,  2004,  the  total  unrealized  gain,  net  of  deferred  income  taxes,  in
accumulated other comprehensive income was approximately $1,452,000.

The  following  table  shows  the  Company's  investments'  approximate  gross
unrealized  losses  and  fair  value  at  December  31,  2005  and  2004.  These
investments  are  all  classified  as  available-for-sale  and consist of equity
securities.  As of December 31, 2005 and 2004 there were no investments that had
been in a continuous unrealized loss position for twelve months or longer.

                               2005                          2004
                      ----------------------       ----------------------
                                         (In thousands)
                                  UNREALIZED                   UNREALIZED
                      FAIR VALUE    LOSSES         FAIR VALUE    LOSSES

Equity securities       $1,283       $219             $315         $44

                        ------       ----             ----         ---
Totals                  $1,283       $219             $315         $44
                        ======       ====             ====         ===

                                      -38-
<PAGE>

4.  INTANGIBLE ASSETS

The  Company  applies  the  provisions  of  Statement  of  Financial  Accounting
Standards No. 142, Goodwill and Other Intangible Assets, ("SFAS No. 142"), which
requires  the  Company  to  assess  acquired  goodwill  for  impairment at least
annually  in the absence of an indicator of possible impairment, and immediately
upon  an  indicator of possible impairment.  The annual assessment of impairment
was  completed  on  December  31,  2005  and the Company determined there was no
impairment as of that date.  Goodwill at December 31 is summarized as follows:

                                                  2005       2004       2003
                                                        (In thousands)

Goodwill, beginning of year                    $15,413    $15,413    $ 8,102
Goodwill acquired                                    -          -      7,311
Goodwill impairment                                  -          -          -
                                               -------    -------    -------

          Goodwill-end of year                 $15,413    $15,413    $15,413
                                               =======    =======    =======

Non-compete  agreements  are  amortized  on  a  straight-line  basis  over  the
contractual term of the related agreement.  Amortization expense associated with
non-compete  agreements  was  approximately $237,000, $350,000 and $296,000, for
the  years  ending  December 31, 2005, 2004 and 2003.  The Company's non-compete
agreements at December 31 are summarized as follows:

                                                            2005       2004
                                                             (In thousands)


Non-compete agreements, original cost                      $1,300     $1,300
Accumulated amortization                                     (883)      (646)
                                                          -------    -------

          Non-compete agreements-net                       $  417     $  654
                                                          =======    =======

Over  the  remaining  life  of  the non-compete agreements currently held by the
Company,  approximately  $200,000  of  amortization  expense  will be recognized
during each of the calendar years 2006 and 2007.

5.  ACCRUED EXPENSES AND OTHER LIABILITIES

Accrued expenses and other liabilities at December 31 are summarized as follows:

                                                            2005       2004
                                                             (In thousands)

Payroll                                                    $1,521     $1,364
Accrued vacation                                            1,632      1,562
Taxes-other than income                                     2,337      2,251
Interest                                                       86        133
Driver escrows                                                873        871
Self-insurance claims reserves                              4,058      3,647
                                                           -------    ------

          Total accrued expenses and other liabilities    $10,507     $9,828
                                                          =======     ======
                                      -39-
<PAGE>

6.  CLAIMS LIABILITIES

With respect to physical damage for tractors, cargo loss and auto liability, the
Company  maintains insurance coverage to protect it from certain business risks.
These  policies are with various carriers and have per occurrence deductibles of
$2,500, $10,000 and $2,500 respectively.  Since 2002, the Company has elected to
self insure itself for physical damage to trailers.  During 2003, and continuing
through  2005,  the  Company  changed  its  workers'  compensation  coverage  in
Arkansas,  Oklahoma,  Mississippi and Florida from a fully insured policy with a
$350,000  per  occurrence  deductible to become self insured with a $500,000 per
occurrence excess policy.  The Company continues to be self insured for workers'
compensation  in  the  State of Ohio with a $500,000 self insured retention with
excess  insurance.  The  Company has elected to opt out of workers' compensation
coverage  in  Texas  and  is  providing coverage through the P.A.M. Texas Injury
Plan.  The  Company has reserved for estimated losses to pay such claims as well
as  claims  incurred  but not yet reported.  The Company has not experienced any
adverse  trends  involving  differences  in  claims  experienced  versus  claims
estimates  for  workers'  compensation  claims.  Letters  of  credit aggregating
$2,768,000 are held by a bank as security for workers' compensation claims.  The
Company self insures for employee health claims with a stop loss of $175,000 per
covered  employee  per  year and estimates its liability for claims incurred but
not reported.


7.  LONG-TERM DEBT

Long-term debt at December 31, consists of the following:

                                                            2005       2004
                                                             (In thousands)
Line of credit with a bank-due May 31, 2006, and
  collateralized by accounts receivable (1)               $17,183    $     -
Line of credit with a bank-due June 30, 2007, and
  collateralized by revenue equipment (2)                  20,000     20,000
Note payable (3)                                            3,208      3,866
Other (4)                                                   1,161      1,439
                                                          -------    -------
          Total long-term debt                             41,552     25,305

Less current maturities                                    (1,859)    (2,080)
                                                          -------    -------

Long-term debt-net of current maturities                  $39,693    $23,225
                                                          =======    =======

(1)  Line  of  credit  agreement  with a bank provides for maximum borrowings of
     $20.0  million  and  contains  certain  restrictive  covenants that must be
     maintained  by  the Company on a consolidated basis. Borrowings on the line
     of credit are at an interest rate of LIBOR as of the first day of the month
     plus  1.40%  (5.69% at December 31, 2005). Under the terms of the agreement
     the  Company  must have (a) positive net income, (b) a debt to equity ratio
     of no more than 4:1, (c) a debt service coverage ratio of at least 1:1, and
     (d)  maintain a tangible net worth of at least $40 million. The Company was
     in  compliance  with  all provisions of the agreement at December 31, 2005.
     The  Company  has  the  intent  and  ability  to  extend  the terms of this
     agreement for an additional one year period until May 31, 2007.

(2)  Line  of  credit  agreement  with a bank provides for maximum borrowings of
     $30.0  million  and  contains  certain  restrictive  covenants that must be
     maintained  by  the Company on a consolidated basis. Borrowings on the line
     of  credit  are  at  an  interest  rate  of LIBOR as of the last day of the
     previous  month plus 1.15% (5.47% at December 31, 2005). Under the terms of
     the  agreement  the Company must have (a) positive net income, (b) a funded
     debt  to  EBITDA  ratio of less than 3:1, (c) a leverage ratio of less than
     3:1,  and  (d)  maintain  a  tangible  net  worth  of  at least $42 million
     increased by (1) 50% of cumulative quarterly net income and (2) proceeds of
     any  public  stock  offering.  The  Company  was  in  compliance  with  all
     provisions of the agreement at December 31, 2005.

                                      -40-
<PAGE>

(3)  6.0%  note  to the former owner of an acquired entity with an original face
     amount  of  $4,974,612,  payable in monthly installments of $72,672 through
     March 2010.

(4)  5.0% note to insurance premium finance company at December 31, 2005 with an
     original  face  amount  of  $1,976,927,  payable in monthly installments of
     $168,538 through July 2006.

The  Company  has  provided  letters  of  credit  to  third  parties  totaling
approximately  $6,537,000  at  December  31, 2005. The letters are held by these
third  parties  to  assist  such parties in collection of any amounts due by the
Company should the Company default in its commitments to the parties.

Scheduled  annual maturities on long-term debt outstanding at December 31, 2005,
are:

                                 (In thousands)

           2006                    $  1,859
           2007                      37,925
           2008                         788
           2009                         836
           2010                         144
                                   --------

                   Total           $ 41,552
                                   ========

8.  CAPITAL STOCK

The  Company's  authorized capital stock consists of 40,000,000 shares of common
stock,  par  value $.01 per share, and 10,000,000 shares of preferred stock, par
value $.01 per share.  At December 31, 2005, there were 11,344,207 shares of our
common  stock  issued  and  10,285,607  shares  outstanding.  No  shares  of our
preferred stock were issued or outstanding at December 31, 2005.

Common Stock

The holders of our common stock, subject to such rights as may be granted to any
preferred  stockholders,  elect  all  directors and are entitled to one vote per
share.  All  shares of common stock participate equally in dividends when and as
declared by the Board of Directors and in net assets on liquidation.  The shares
of  common  stock  have  no  preference,  conversion,  exchange,  preemptive  or
cumulative voting rights.

Preferred Stock

Preferred  stock  may  be  issued  from  time to time by our Board of Directors,
without  stockholder  approval,  in  such  series  and  with  such  preferences,
conversion  or  other  rights,  voting  powers,  restrictions, limitations as to
dividends,  qualifications  or other provisions, as may be fixed by the Board of
Directors  in  the  resolution  authorizing  their  issuance.  The  issuance  of
preferred  stock  by the Board of Directors could adversely affect the rights of
holders  of shares of common stock; for example, the issuance of preferred stock
could  result  in  a  class  of  securities  outstanding that would have certain
preferences  with respect to dividends and in liquidation over the common stock,
and  that  could result in a dilution of the voting rights, net income per share
and  net  book  value  of the common stock.  As of December 31, 2005, we have no
agreements or understandings for the issuance of any shares of preferred stock.

Treasury Stock

During  April  2005  our  Board  of Directors authorized the repurchase of up to
600,000  shares  of  our common stock during the six month period ending October
11,  2005.  During August 2005 the Board of Directors authorized an extension of
the stock repurchase program until September 2006 and the repurchase of up to an
additional  900,000  shares  of  our  common  stock.  During  2005  the  Company
repurchased  1,058,600  shares  of its common stock at an average price paid per
share of $16.88.

                                      -41-
<PAGE>

9.  COMPREHENSIVE INCOME

Comprehensive  income  was  comprised  of  net income plus or minus market value
adjustments  related  to  our  interest  rate  swap  agreements  and  marketable
securities.  The components of comprehensive income were as follows:

                                                    2005       2004       2003
                                                         (In thousands)

Net income                                        $13,139    $10,588    $11,490

Other comprehensive income (loss):
 Reclassification adjustment for losses on
   derivative instruments included in net income
   accounted for as hedges, net of income taxes       227        444        458
 Reclassification adjustment for unrealized
   losses on marketable securities, included in
   net income, net of income taxes                     91          -          -
 Change in fair value of interest rate
   swap agreements, net of income taxes                55         37       (235)
 Change in fair value of marketable
   securities, net of income taxes                    197        506        946
                                                  -------    -------   --------
 Total comprehensive income                       $13,709    $11,575    $12,659
                                                  =======    =======   ========

10.  SIGNIFICANT CUSTOMERS AND INDUSTRY CONCENTRATION

In  2005,  2004,  and 2003, one customer, who is in the automobile manufacturing
industry,  accounted  for  39%,  44%,  and  46%  of revenues, respectively.  The
Company  also  provides  transportation  services to other manufacturers who are
suppliers  for  automobile  manufacturers  including suppliers for the Company's
largest  customer.  As  a result, concentration of the Company's business within
the  automobile  industry  is  significant.  Of the Company's revenues for 2005,
2004,  and  2003,  52%,  56%,  and  58%,  respectively,  were  derived  from
transportation  services  provided  to  the  automobile  manufacturing industry.
Accounts  receivable from the largest customer totaled approximately $36,075,000
and $26,250,000 at December 31, 2005 and 2004, respectively.

                                      -42-
<PAGE>

11.  FEDERAL AND STATE INCOME TAXES

Under  SFAS  No.  109,  deferred  income  taxes  reflect  the net tax effects of
temporary differences between the carrying amounts of assets and liabilities for
financial reporting purposes and for income tax reporting purposes.

Significant  components  of the Company's deferred tax liabilities and assets at
December 31 are as follows:
<TABLE>
<CAPTION>
                                                2005                     2004
                                        -------------------      -------------------
                                                      (In thousands)
                                        CURRENT   LONG-TERM      CURRENT   LONG-TERM
<S>                                    <C>        <C>           <C>        <C>
Deferred tax liabilities:
  Property and equipment                $    -     $47,735       $    -     $51,152
  Unrealized gains on securities         1,190           -        1,002           -
  Prepaid expenses                       8,089          30        7,562          25
                                        ------     -------       ------     -------

Total deferred tax liabilities           9,279      47,765        8,564      51,177

Deferred tax assets:
  Alternative minimum tax credit             -           -            -       1,782
  Allowance for doubtful accounts          520           -          292           -
  Compensated absences                     496           -          451           -
  Self-insurance allowances              1,022           -          469           -
  Hedging derivative                        13           -          190         208
  Non-competition agreement                  -         520            -         518
  Net operating loss carryovers              -           -            -       3,237
  Other                                     94          48            -          57
                                        ------     -------       ------     -------

Total deferred tax assets                2,145         568        1,402       5,802
                                        ------     -------       ------     -------

Net deferred tax liability              $7,134     $47,197       $7,162     $45,375
                                        ======     =======       ======     =======
</TABLE>

The  reconciliation  between  the  effective  income  tax rate and the statutory
Federal  income  tax  rate  is  for  year ended December 31, 2005, 2004 and 2003
presented in the following table:

<TABLE>
<CAPTION>
                                     2005               2004               2003
                               ---------------    ---------------    ---------------
                                                   (In thousands)
                               AMOUNT  PERCENT    AMOUNT  PERCENT    AMOUNT  PERCENT
<S>                           <C>      <C>       <C>      <C>       <C>      <C>
Income tax at the statutory
  federal rate                 $7,743   35.0%     $6,083   34.0%     $6,560   34.0%
Nondeductible expenses            450    2.0         484    2.7         548    2.8
State income taxes-net of
  federal benefit                 790    3.6         737    4.1         697    3.6
                               ------   ----      ------   ----      ------   ----
Total income taxes             $8,983   40.6%     $7,304   40.8%     $7,805   40.4%
                               ======   ====      ======   =====     ======   ====
</TABLE>

                                      -43-
<PAGE>

The provision for income taxes consisted of the following:

                                     2005       2004       2003
                                           (In thousands)
CURRENT:
Federal                             $6,422     $    -     $  282
State                                1,150        479        348
                                    ------     ------     ------
                                     7,572        479        630
                                    ------     ------     ------
DEFERRED:
Federal                                876      6,076      6,180
State                                  535        749        995
                                    ------     ------     ------
                                     1,411      6,825      7,175
                                    ------     ------     ------

Total income tax expense            $8,983     $7,304     $7,805
                                    ======     ======     ======

12.  STOCK OPTION PLANS

The  Company  maintains  a stock option plan under which incentive stock options
and  nonqualified  stock  options  may  be  granted.  The  plan provides for the
issuance  of  options  to  directors,  officers,  key employees and others.  The
option price under these plans is the fair market value of the stock at the date
the  options were granted, ranging from $8.25 to $23.22 as of December 31, 2005.
At  December  31, 2005, approximately 264,000 shares were available for granting
future options.

Outstanding  incentive  stock  options  at  December 31, 2005, must be exercised
within six years from the date of grant and vest in increments of 20% each year.
Outstanding  nonqualified  stock options at December 31, 2005, must be exercised
within  five  to ten years from the date of grant.  Certain nonqualified options
may not be exercised within one year of the date of grant.

In  August 2002, the Company granted performance-based variable stock options to
certain  key  executives.  For these awards, the exercise price was fixed at the
grant  date  and  was  equal to the fair market value of the stock on that date.
The  number  of  shares  earned will not be known until the date the performance
criteria  is  measured.  Compensation  cost  is estimated at each reporting date
with  the  final  measurement  date  on  the  date  each performance criteria is
measured.  Vesting  will  be  measured  on  an accelerated vesting schedule.  No
compensation  expense  was  recognized  in  2005,  2004  or  2003  under  these
arrangements.

                                      -44-
<PAGE>

Transactions in stock options under these plans are summarized as follows:

                                             SHARES        WEIGHTED
                                             UNDER         AVERAGE
                                             OPTION     EXERCISE PRICE

Outstanding-January 1, 2003:                386,500         $20.69
  Granted                                    14,000          22.68
  Exercised                                 (12,000)          9.88
  Canceled                                  (40,000)         23.22
                                            -------

Outstanding-December 31, 2003:              348,500         $20.85
  Granted                                    14,000          16.99
  Exercised                                  (9,000)          9.39
  Canceled                                  (40,000)         23.22
                                            -------

Outstanding-December 31, 2004:              313,500         $20.70
  Granted                                    14,000          18.27
  Exercised                                 (41,000)          9.21
                                            -------

Outstanding-December 31, 2005               286,500         $22.22
                                            =======

Options Exercisable-December 31, 2005       161,500         $21.56
                                            =======

The following is a summary of stock options outstanding as of December 31, 2005:

                                        WEIGHTED
                      OPTION            AVERAGE
    OPTIONS          EXERCISE          REMAINING          OPTIONS
  OUTSTANDING          PRICE             YEARS          EXERCISABLE

      4,000           $ 8.25              0.2              4,000
      8,000           $20.79              1.2              8,000
    220,000           $23.22              6.8            100,000
     12,500           $19.88              2.8              7,500
     14,000           $22.68              2.2             14,000
     14,000           $16.99              3.2             14,000
     14,000           $18.27              4.2             14,000
    -------                                              -------
    286,500                                              161,500
    =======                                              =======

                                      -45-
<PAGE>

13.  EARNINGS PER SHARE

The  Company  applies  SFAS  No.  128  for computing and presenting earnings per
share.  Basic  earnings per common share were computed by dividing net income by
the  weighted  average  number of shares outstanding during the period.  Diluted
earnings per common share were calculated as follows:

                                            FOR THE YEAR ENDED DECEMBER 31, 2005
                                           (In thousands, except per share data)
                                           -------------------------------------
                                                 NET                PER SHARE
                                               INCOME     SHARES      AMOUNT

Basic earnings per share data                   $13,139    10,966     $1.20
Effect of dilutive securities-stock options                    10
                                                -------    ------     -----

Diluted earnings per share data                 $13,139    10,976     $1.20
                                                =======    ======     =====


                                            FOR THE YEAR ENDED DECEMBER 31, 2004
                                           (In thousands, except per share data)
                                           -------------------------------------
                                                 NET                PER SHARE
                                               INCOME     SHARES      AMOUNT

Basic earnings per share data                   $10,588    11,298     $0.94
Effect of dilutive securities-stock options                    26
                                                -------    ------     -----

Diluted earnings per share data                 $10,588    11,324     $0.94
                                                =======    ======     =====


                                            FOR THE YEAR ENDED DECEMBER 31, 2003
                                           (In thousands, except per share data)
                                           -------------------------------------
                                                 NET                PER SHARE
                                               INCOME     SHARES      AMOUNT

Basic earnings per share data                   $11,490    11,291     $1.02
Effect of dilutive securities-stock options                    35
                                                -------    ------     -----

Diluted earnings per share data                 $11,490    11,326     $1.01
                                                =======    ======     =====

Options  to  purchase  280,160, 254,500, and 274,000 shares of common stock were
outstanding  as of December 31, 2005, 2004, and 2003, respectively, but were not
included  in the computation of diluted EPS because the option price was greater
than the average market price of the common shares.

14.  PROFIT SHARING PLAN

The  Company  sponsors  a  profit  sharing  plan for the benefit of all eligible
employees.  The plan qualifies under Section 401(k) of the Internal Revenue Code
thereby  allowing eligible employees to make tax-deductible contributions to the
plan.  The  plan  provides  for  employer  matching contributions of 50% of each
participant's  voluntary contribution up to 3% of the participant's compensation
and  vests  at  the  rate  of 20% each year until fully vested after five years.
Total  employer  matching  contributions  to  the  plan  totaled  approximately
$300,000, $280,000 and $270,000 in 2005, 2004 and 2003, respectively.

                                      -46-
<PAGE>

15.  COMMITMENTS AND CONTINGENCIES

During  2004,  a suit which was originally filed on October 10, 2002 against one
of  the  Company's subsidiaries was settled in the amount of $25,000.  The suit,
which  was  filed  in  the  United  States  Bankruptcy Court for the District of
Delaware, alleged preferential transfers of $660,055 were made to the defendant,
Allen  Freight  Services  Co., within the 90 day period preceding the bankruptcy
petition  date  of  Bill's  Dollar  Stores,  Inc.  The  Company  had  originally
established a liability for the entire potential loss of $660,055; however, as a
result  of a settlement in the amount of $25,000 approximately $635,000 has been
removed  as  a  liability  on the Company's financial statements and the related
expense originally recorded as a bad debt expense has been reduced.

As to other matters, the Company is not a party to any pending legal proceedings
which management believes to be material to the financial position or results of
operations  of  the  Company.  The Company maintains liability insurance against
risks arising out of the normal course of its business.

Associated  with  the  purchase of East Coast Transport, Inc. (see Note 19), the
Company entered into a five year consulting agreement with the previous owner of
East  Coast,  whereby  such individual will serve as the president of East Coast
and  will  be compensated based on a percentage of East Coast revenue along with
eligibility for a yearly bonus subject to certain events.

The  Company  leases  certain  premises  under  noncancelable  operating  lease
agreements.  Future  minimum  annual  lease  payments  under these leases are as
follows:

           2006                  $  472,025
           2007                     468,965
           2008                     385,611
           2009                     255,761
           2010                     165,000
                                 ----------
           Total                 $1,747,362
                                 ==========

16.  FAIR VALUE OF FINANCIAL INSTRUMENTS

Statement of Financial Accounting Standards No. 107, Disclosure About Fair Value
of  Financial  Instruments,  ("SFAS  No. 107") requires disclosure of fair value
information  about  financial  instruments,  whether  or  not  recognized in the
balance  sheet,  for  which  it  is  practicable  to  estimate  that value.  The
estimated fair value amounts have been determined by the Company using available
market  information  and  appropriate  valuation  methodologies.  However,
considerable  judgment  is  necessarily  required  to  interpret  market data to
develop  the  estimates  of  fair  value.  Accordingly,  the estimates presented
herein  are  not necessarily indicative of the amounts the Company could realize
in  a  current  market exchange.  The use of different market assumptions and/or
estimation  methodologies may have a material effect on the estimated fair value
amounts.

The  following  methods  and  assumptions were used by the Company in estimating
fair  value  disclosures  for  financial  instruments:

     For  cash  and  cash  equivalents,  accounts receivable, and trade accounts
     payable,  the carrying amount is a reasonable estimate of fair value as the
     assets  are  readily redeemable or short-term in nature and the liabilities
     are short-term in nature. Marketable equity securities are carried at their
     fair value.

     For  long-term  debt  other  than  the  line of credit, the fair values are
     estimated  using  discounted  cash  flow  analyses,  based on the Company's
     current  incremental  borrowing  rates  for  similar  types  of  borrowing

                                      -47-
<PAGE>

     arrangements.  The  carrying value of this other long-term debt at December
     31,  2005  and  2004,  respectively, is $4,369,000 and $5,304,000. The fair
     value  of  long-term  debt  is estimated to be $4,401,000 and $5,559,000 at
     December 31, 2005 and 2004.

     The  carrying amount for the line of credit approximates fair value because
     the line of credit interest rates are adjusted frequently.

     The  carrying value of all hedging financial instruments approximates their
     fair value and is the amount at which the hedges could be settled, based on
     estimates  determined  by  dealers.  Hedging  liabilities total $32,000 and
     $1,008,000 at December 31, 2005 and 2004, respectively.

17.  DERIVATIVES AND HEDGING ACTIVITIES

Effective  February  28,  2001,  the  Company entered into an interest rate swap
agreement  on  a  notional  amount of $15,000,000.  The pay fixed rate under the
swap  is  5.08%,  while  the  receive  floating  rate  is "1-month" LIBOR.  This
interest  rate  swap  agreement  terminates  on March 2, 2006. Effective May 31,
2001,  the  Company  entered  into an interest rate swap agreement on a notional
amount  of  $5,000,000.  The  pay  fixed rate under the swap is 4.83%, while the
receive  floating  rate  is  "1-month"  LIBOR. This interest rate swap agreement
terminates on June 2, 2006.

The  Company designates both of these interest rate swaps as cash flow hedges of
its  exposure  to  variability  in  future  cash  flows  resulting from interest
payments  indexed to "1-month" LIBOR.  During the term of the interest rate swap
agreements changes in future cash flows from the interest rate swaps will offset
changes  in  interest  rate  payments  on the first $20,000,000 of the Company's
current  revolving  credit  facility  or future "1-month" LIBOR based borrowings
that  reset  on  the  last  London  Business  Day prior to the start of the next
interest  period.  The  hedge locks the interest rate at 5.08% or 4.83% plus the
pricing  spread  (currently  1.15%)  for the notional amounts of $15,000,000 and
$5,000,000, respectively.

These interest rate swap agreements meet the specific hedge accounting criteria.
The  measurement  of  hedge  effectiveness  is  based  upon  a comparison of the
floating-rate  leg  of  the  swap and the hedged floating-rate cash flows on the
underlying  liability.  The effective portion of the cumulative gain or loss has
been  reported  as  a  component  of  accumulated  other comprehensive income in
shareholders'  equity  and will be reclassified into current earnings by June 2,
2006, the latest termination date for all current swap agreements.  The December
31, 2004 balance of the net after tax deferred hedging loss in accumulated other
comprehensive income ("AOCI") related to these swap agreements was approximately
$301,000  and  the  ending  balance  as  of  December 31, 2005 was approximately
$19,000.  The change in AOCI related to these swap agreements during the current
year  was  approximately  $282,000.  Ineffectiveness related to these hedges was
not significant.

In  July  2001, the Company entered into an agreement to obtain price protection
and  reduce  a  portion  of  our exposure to fuel price fluctuations. Under this
agreement,  we  were  obligated  to  purchase minimum amounts of diesel fuel per
month,  with  a  price  protection  component,  for  the  six month period ended
February  28,  2002. The agreement also provided that if during the twelve-month
period  commencing January 2005, the average NY MX HO was below $.58 per gallon,
we  would  have been obligated to pay the contract holder the difference between
$.58  and  the  average  NY  MX HO price for such month, multiplied by 1,000,000
gallons.  During the twelve-month period commencing January 2005, the average NY
MX  HO  remained well above the $.58 per gallon threshold and as of December 31,
2005  the  agreement expired without any further obligation of either party. For
the  twelve-month  period  ended December 31, 2005 an adjustment of $500,000 was
made  to reflect the decline in fair value of the agreement which had the effect
of  reducing  operating  supplies  expense and other current liabilities each by
$500,000  in  the  accompanying  consolidated  financial  statements.  For  the
twelve-month  period  ended December 31, 2004 an adjustment of $250,000 was made
to  reflect  the  decline in fair value of the agreement which had the effect of
reducing  operating  supplies  expense  and  other  current  liabilities each by
$250,000 in the accompanying consolidated financial statements.

                                      -48-
<PAGE>

18.  RELATED PARTY TRANSACTIONS

In  the  normal  course  of  business,  the  Company  provides  and  receives
transportation, repair and other services for and from companies affiliated with
a  major  stockholder,  and  recognized  $111,510,  $269,553,  and  $195,595  in
operating  revenue  and  $1,616,534,  $1,234,267,  and  $1,194,283  in operating
expenses  in  2005,  2004,  and  2003,  respectively.  In  addition  the Company
purchased  physical  damage  insurance  through an unaffiliated insurance broker
which  was  written by an insurance company affiliated with a major stockholder.
Annual  premiums  were  $1,667,928, $1,686,587 and $1,715,334 for 2005, 2004 and
2003, respectively.

Amounts  owed  to  the Company by these affiliates were $788,841 and $294,610 at
December 31, 2005 and 2004 respectively.  Of the accounts receivable at December
31,  2005,  $371,700  represents revenue resulting from maintenance performed in
the Company's maintenance facilities and maintenance charges paid by the Company
to  third  parties  on  behalf of their affiliate and charged back at the amount
paid,  $10,850  represents freight revenue, and $406,291 represents a prepayment
of  physical  damage  insurance  premiums.  Amounts  payable  to  affiliates  at
December 31, 2005 and 2004 was $158,400 and $179,814 respectively.

19.  ACQUISITIONS

On January 31, 2003, P.A.M. Transportation Services, Inc. acquired substantially
all  of  the  assets of East Coast Transport, Inc. a freight brokerage operation
based  in  New  Jersey.  The  results  of  East  Coast Transport, Inc. have been
included  in  the  consolidated  financial  statements  since  that  date.  In
accordance  with  Statement  of Financial Accounting Standards No. 141, Business
Combinations,  ("SFAS  No.  141")  the  acquisition  was accounted for under the
purchase  method  of  accounting.  The  Company  paid cash of approximately $1.9
million,  entered  into  a  seven  year  installment  note  in  the  amount  of
approximately  $5.0  million  at  an  interest  rate  of  6%, and entered into a
non-compete  agreement  requiring  the  payment of $1.0 million over a five year
period.  Goodwill  resulting  from  the  transaction  totaled approximately $6.9
million  and is expected to be fully deductible for tax purposes.  The following
table presents the amounts assigned to each major asset and liability caption at
the acquisition date:
                                                  AT
                                           JANUARY 31, 2003
                                            (In thousands)

Current assets                                  $   10
Other assets-goodwill                            6,941
                                                ------
Net assets acquired                             $6,951
                                                ======

On  April  3,  2003, P.A.M. Transportation Services, Inc. acquired substantially
all  of  the  assets  of  McNeill Trucking, Inc. a truckload motor carrier.  The
results  of  McNeill  Trucking,  Inc.  have  been  included  in the consolidated
financial  statements  since  that  date.  In  accordance with SFAS No. 141, the
acquisition  was  accounted  for  under  the purchase method of accounting.  The
Company  paid  cash  of  approximately  $8.8  million and assumed liabilities of
approximately  $70,000,  and  entered into a non-compete agreement requiring the
payment  of  $300,000  over  a  two  year  period.  Goodwill  resulting from the
transaction  totaled  approximately  $370,000  and  is  expected  to  be  fully
deductible  for tax purposes.  The following table presents the amounts assigned
to each major asset and liability caption at the acquisition date:

                                                  AT
                                             APRIL 3, 2003
                                            (In thousands)

Property and equipment                          $8,462
Other assets-goodwill                              370
                                                ------
Total assets acquired                            8,832
Accrued expenses and other liabilities             (70)
                                                ------
Net assets acquired                             $8,762
                                                ======

                                      -49-
<PAGE>

The following unaudited pro forma information is being provided for the business
acquisitions  made during the year ended December 31, 2003 as though the Company
made the acquisitions at the beginning of the year ended December 31:


                                                2003
                                       (In thousands, except
                                         earnings per share)
                                             (unaudited)
 Operating income                              $20,869
 Income before income taxes                     19,444
 Net income                                     11,578

 Basic earnings per share                      $  1.03
 Diluted earnings per share                    $  1.02


20.  QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)

The tables below present quarterly financial information for 2005 and 2004:
<TABLE>
<CAPTION>
                                                              2005
                                                       THREE MONTHS ENDED
                                     ------------------------------------------------------
                                     MARCH 31        JUNE 30     SEPTEMBER 30   DECEMBER 31
                                              (In thousands, except per share data)
<S>                                 <C>            <C>            <C>            <C>
Operating revenues (1)               $ 86,192       $ 91,027       $ 88,484       $ 95,177
Operating expenses (1)                 81,034         84,479         84,471         87,370
                                     --------       --------       --------       --------

Operating income                        5,158          6,548          4,013          7,807
Non-operating income                      191            108            155             23
Interest expense                          445            474            422            540
Income taxes                            2,001          2,502          1,533          2,947
                                     --------       --------       --------       --------

Net income                           $  2,903       $  3,680       $  2,213       $  4,343
                                     ========       ========       ========       ========

Net income per common share:
  Basic                              $   0.26       $   0.33       $   0.20       $   0.41
                                     ========       ========       ========       ========

  Diluted                            $   0.26       $   0.33       $   0.20       $   0.41
                                     ========       ========       ========       ========

Average common shares outstanding:
  Basic                                11,305         11,114         10,818         10,634
                                     ========       ========       ========       ========

  Diluted                              11,327         11,130         10,821         10,636
                                     ========       ========       ========       ========
</TABLE>
(1)  In  order to conform to industry practice, during 2004 the Company began to
classify  fuel  surcharges  charged  to  customers  as  revenue rather than as a
reduction of operating supplies expense.  This reclassification has no effect on
net  operating  income,  net income or earnings per share.  The Company has made
corresponding reclassifications to comparative periods shown.

                                      -50-
<PAGE>
<TABLE>
<CAPTION>
                                                              2004
                                                       THREE MONTHS ENDED
                                     ------------------------------------------------------
                                     MARCH 31        JUNE 30     SEPTEMBER 30   DECEMBER 31
                                              (In thousands, except per share data)
<S>                                 <C>            <C>            <C>            <C>
Operating revenues (1)               $ 80,120       $ 82,284       $ 79,080       $ 83,582
Operating expenses (1)                 76,322         75,734         73,491         80,333
                                     --------       --------       --------       --------

Operating income                        3,798          6,550          5,589          3,249
Non-operating income                       93             62            161            148
Interest expense                          443            411            466            438
Income taxes                            1,417          2,554          2,136          1,197
                                     --------       --------       --------       --------
Net income                           $  2,031       $  3,647       $  3,148       $  1,762
                                     ========       ========       ========       ========
Net income per common share:
  Basic                              $   0.18       $   0.32       $   0.28       $   0.16
                                     ========       ========       ========       ========
  Diluted                            $   0.18       $   0.32       $   0.28       $   0.16
                                     ========       ========       ========       ========
Average common shares outstanding:
  Basic                                11,295         11,296         11,298         11,301
                                     ========       ========       ========       ========
  Diluted                              11,321         11,322         11,324         11,327
                                     ========       ========       ========       ========
</TABLE>
(1)  In  order to conform to industry practice, during 2004 the Company began to
classify  fuel  surcharges  charged  to  customers  as  revenue rather than as a
reduction of operating supplies expense.  This reclassification has no effect on
net  operating  income,  net income or earnings per share.  The Company has made
corresponding reclassifications to comparative periods shown.

                                      -51-

                                     ******

<PAGE>


ITEM 9.  CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
         FINANCIAL DISCLOSURE.

On  June  16,  2005,  the Company dismissed its independent auditors, Deloitte &
Touche  LLP,  and on the same date engaged Grant Thornton LLP as its independent
auditors  for  the  fiscal year ending December 31, 2005.  Each of these actions
was approved by the Audit committee of the Company.  Information with respect to
this  matter  is included in the Company's current report on Form 8-K filed June
21, 2005.

ITEM 9A.  CONTROLS AND PROCEDURES.

CONCLUSION REGARDING THE EFFECTIVENESS OF DISCLOSURE CONTROLS AND PROCEDURES

Under  the  supervision  and with the participation of our management, including
our principal executive officer and principal financial officer, we conducted an
evaluation  of  our  disclosure controls and procedures, as such term is defined
under  Rule  13a-15(e) promulgated under the Exchange Act, as amended.  Based on
this  evaluation,  our  principal  executive officer and our principal financial
officer  concluded  that our disclosure controls and procedures are effective as
of the end of the period covered by this Annual Report.

MANAGEMENT'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

Our management is responsible for establishing and maintaining adequate internal
control  over financial reporting, as such term is defined in Exchange Act Rules
13a-15(f).  Under  the supervision and with the participation of our management,
including  our  principal  executive officer and principal financial officer, we
conducted  an  evaluation of the effectiveness of the Company's internal control
over financial reporting based on the framework in Internal Control - Integrated
Framework  issued  by  the Committee of Sponsoring Organizations of the Treadway
Commission.  Based  on  our evaluation under the framework in Internal Control -
Integrated  Framework,  our  management concluded that our internal control over
financial reporting is effective as of December 31, 2005.

Our  management's  assessment  of the effectiveness of our internal control over
financial  reporting  as of December 31, 2005 has been audited by Grant Thornton
LLP,  an  independent  registered  public  accounting  firm,  who  has issued an
attestation  report on management's assessment of the Company's internal control
over financial reporting, as stated in their report which is included below.

CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING

There  were  no  changes  in  the  Company's  internal  controls  over financial
reporting  that  occurred  during the quarter ended December 31, 2005, that have
materially  affected,  or  are  reasonably  likely  to  materially  affect,  the
Company's internal control over financial reporting.

             REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
             -------------------------------------------------------

Board of Directors and
Shareholders of P.A.M. Transportation Services, Inc. and Subsidiaries

We  have  audited  management's  assessment,  included  in  the  accompanying
Management's  Report  on  Internal Control Over Financial Reporting, that P.A.M.
Transportation  Services,  Inc.  (a  Delaware  Corporation)  and  subsidiaries,
(collectively, the Company) maintained effective internal control over financial
reporting as of December 31, 2005, based on the criteria established in Internal
Control-Integrated Framework issued by the Committee of Sponsoring Organizations
of  the Treadway Commission (COSO).  The Company's management is responsible for
maintaining  effective  internal  control  over  financial reporting and for its
assessment  of  the  effectiveness of internal control over financial reporting.
Our  responsibility  is  to express an opinion on management's assessment and an
opinion  on  the  effectiveness of the Company's internal control over financial
reporting based on our audit.

                                      -52-
<PAGE>

We  conducted  our  audit in accordance with the standards of the Public Company
Accounting  Oversight  Board  (United  States).  Those standards require that we
plan  and  perform  the  audit  to  obtain  reasonable  assurance  about whether
effective  internal  control  over  financial  reporting  was  maintained in all
material  respects.  Our  audit  included obtaining an understanding of internal
control  over  financial  reporting, evaluating management's assessment, testing
and  evaluating  the design and operating effectiveness of internal control, and
performing  such  other  procedures  as  we  considered  necessary  in  the
circumstances.  We  believe  that  our audit provides a reasonable basis for our
opinions.

A  company's  internal control over financial reporting is a process designed to
provide  reasonable  assurance  regarding the reliability of financial reporting
and  the preparation of financial statements for external purposes in accordance
with  generally  accepted  accounting  principles.  A company's internal control
over financial reporting includes those policies and procedures that (1) pertain
to  the maintenance of records that, in reasonable detail, accurately and fairly
reflect  the  transactions  and  dispositions  of the assets of the company; (2)
provide  reasonable  assurance  that  transactions  are recorded as necessary to
permit preparation of financial statements in accordance with generally accepted
accounting  principles,  and  that  receipts and expenditures of the company are
being made only in accordance with authorizations of management and directors of
the company; and (3) provide reasonable assurance regarding prevention or timely
detection  of  unauthorized  acquisition,  use,  or disposition of the company's
assets that could have a material effect on the financial statements.

Because  of  inherent limitations, internal control over financial reporting may
not  prevent  or  detect  misstatements.  Also, projections of any evaluation of
effectiveness  to  future  periods are subject to the risk that the controls may
become  inadequate  because  of  changes  in  conditions,  or that the degree of
compliance with the policies or procedures may deteriorate.

In  our  opinion,  management's assessment that the Company maintained effective
internal  control  over  financial  reporting as of December 31, 2005, is fairly
stated,  in  all  material  respects,  based on criteria established in Internal
Control-Integrated  Framework  issued by COSO.  Also in our opinion, the Company
maintained,  in all material respects, effective internal control over financial
reporting  as  of  December  31, 2005, based on criteria established in Internal
Control-Integrated Framework issued by COSO.

We  also  have  audited,  in accordance with the standards of the Public Company
Accounting  Oversight  Board  (United States), the consolidated balance sheet of
P.A.M.  Transportation Services, Inc. and subsidiaries, as of December 31, 2005,
and  the  related  consolidated  statements  of income, stockholders' equity and
other  comprehensive  income,  and  cash  flows  for the year then ended and our
report  dated  March 1, 2006 expressed an unqualified opinion on those financial
statements.


/s/ GRANT THORNTON LLP
Tulsa, Oklahoma
March 1, 2006


ITEM 9B.  OTHER INFORMATION.

None.

                                      -53-
<PAGE>

                                    PART III

Portions  of  the information required by Part III of Form 10-K are, pursuant to
General  Instruction  G  (3)  of  Form  10-K, incorporated by reference from our
definitive proxy statement to be filed pursuant to Regulation 14A for our Annual
Meeting of Stockholders to be held on May 24, 2006.  We will, within 120 days of
the  end  of our fiscal year, file with the Securities and Exchange Commission a
definitive proxy statement pursuant to Regulation 14A.

ITEM 10.  DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT.

The  information  responsive  to  this  item,  with  the  exception of the Audit
Committee  and  Code  of  Ethics information presented below, is incorporated by
reference  from the sections entitled "Election of Directors" and "Section 16(a)
Beneficial Ownership Reporting Compliance" contained in the proxy statement.

Audit Committee

We  have  a  separately-designated  standing  audit  committee  established  in
accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934.  The
members  of the Audit Committee consist of Thomas H. Cooke (committee chairman),
Frank  L. Conner, and Charles F. Wilkins.  The Board of Directors has determined
that  Mr.  Conner  and  Mr. Cooke, both members of the Audit Committee, are each
qualified as an audit committee financial expert, as that term is defined in the
rules  of  the Securities and Exchange Commission.  Mr. Conner and Mr. Cooke are
independent,  as  independence  for  audit  committee  members is defined in the
listing standards of the Nasdaq Stock Market and the rules of the Securities and
Exchange Commission.

Code of Ethics

We  have adopted a Code of Ethics that applies to all of our directors, officers
and  employees,  including  our principal executive officer, principal financial
officer,  principal  accounting  officer  or  controller, and persons performing
similar  functions.  The Code of Ethics is posted on our website (www.pamt.com).
We  intend to post amendments to or waivers from our Code of Ethics, of the type
referred  to in Item 5.05 of Form 8-K, to the extent applicable to our principal
executive  officer, principal financial officer, principal accounting officer or
controller, and persons performing similar functions, on our website.

ITEM 11.  EXECUTIVE COMPENSATION.

The  information  responsive  to this item is incorporated by reference from the
section entitled "Executive Compensation" contained in the proxy statement.

                                      -54-
<PAGE>

ITEM 12.  SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND
          RELATED STOCKHOLDER  MATTERS.

The  information  responsive  to  this  item,  with  the exception of the equity
compensation plan information presented below, is incorporated by reference from
the  section  entitled  "Security  Ownership  of  Certain  Beneficial Owners and
Management" contained in the proxy statement.

EQUITY COMPENSATION PLAN INFORMATION

The  following  table  summarizes,  as  of  December 31, 2005, information about
compensation  plans  under which equity securities of the Company are authorized
for issuance:
<TABLE>
<CAPTION>
                                                                                   Number of securities
                             Number of securities to      Weighted-average         remaining available
                             be issued upon exercise      exercise price of        for future issuance
                             of outstanding options,      outstanding options,         under equity
       Plan Category          warrants and rights         warrants and rights       compensation plans
-------------------------------------------------------------------------------------------------------
<S>                                 <C>                         <C>                        <C>
  Equity Compensation Plans
  approved by Security Holders       286,500                     $22.22                     263,500

  Equity Compensation Plans
  not approved by Security
  Holders                              -0-                         -0-                         -0-
-------------------------------------------------------------------------------------------------------
  Total                              286,500                     $22.22                     263,500
=======================================================================================================
</TABLE>

ITEM 13.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.

The  information  responsive  to this item is incorporated by reference from the
section  entitled  "Certain Relationships and Related Transactions" contained in
the proxy statement.

ITEM 14.  PRINCIPAL ACCOUNTANT FEES AND SERVICES.

The  information  responsive  to this item is incorporated by reference from the
section entitled "Principal Accountant Fees and Services" contained in the proxy
statement.

                                      -55-
<PAGE>

                                     PART IV

ITEM 15.  EXHIBITS, FINANCIAL STATEMENT SCHEDULES.

(a) Financial Statements and Schedules.

   (1) Financial Statements: See Part II, Item 8 hereof.

       Report of Independent Registered Public Accounting Firm- Grant
       Thornton  LLP
       Report of Independent Registered Public Accounting Firm- Deloitte &
       Touche LLP
       Consolidated Balance Sheets- December 31, 2005 and 2004
       Consolidated Statements of Income- Years ended December 31, 2005, 2004
       and 2003
       Consolidated Statements of Shareholders' Equity- Years ended December 31,
       2005, 2004 and 2003
       Consolidated Statements of Cash Flows- Years ended December 31, 2005,
       2004 and 2003
       Notes to Consolidated Financial Statements

   (2) Financial Statement Schedules.

       All  schedules  for  which provision is made in the applicable accounting
       regulations  of  the  SEC  are  omitted  as  the  required information is
       inapplicable, or because the information is presented in the consolidated
       financial statements or related notes.

   (3) Exhibits.

       The  following  exhibits are filed with or incorporated by reference into
       this  Report.  The exhibits which are denominated by an asterisk (*) were
       previously  filed  as a part of, and are hereby incorporated by reference
       from  either (i) the Form S-1 Registration Statement under the Securities
       Act of 1933, as filed with the Securities and Exchange Commission on July
       30,  1986,  Registration  No.  33-7618,  as  amended  on  August 8, 1986,
       September 3, 1986 and September 10, 1986 ("1986 S-1"); (ii) the Quarterly
       Report on Form 10-Q for the quarter ended June 30, 1994 ("6/30/94 10-Q");
       (iii)  the  Quarterly  Report on Form 10-Q for the quarter ended June 30,
       1995  ("6/30/95  10-Q");  (iv)  the Quarterly Report on Form 10-Q for the
       quarter ended September 30, 1996 (9/30/96 10-Q); (v) the Annual Report on
       Form  10-K  for  the year ended December 31, 1996 ("1996 10-K"); (vi) the
       Quarterly  Report  on  Form  10-Q  for  the  quarter  ended June 30, 1998
       ("6/30/98 10-Q"); (vii) the Form S-8 Registration Statement filed on June
       11,  1999;  (viii)  the  Annual  Report  on  Form 10-K for the year ended
       December  31,  2001 ("2001 10-K"); (ix) the Quarterly Report on Form 10-Q
       for  the quarter ended March 31, 2002 ("3/31/02 10-Q"); (x) the Quarterly
       Report  on Form 10-Q for the quarter ended September 30, 2004 ("9/30/2004
       10-Q");  (xi)  the Annual Report on Form 10-K for the year ended December
       31,  2004  ("2004  10-K");  (xii)  the Form 8-K filed on January 25, 2005
       ("01/25/2005  8-K");  or  (xiii)  Form  8-K  filed  on  March  7,  2005
       ("03/07/2005 8-K").

<TABLE>
<CAPTION>
       EXHIBIT#                                          DESCRIPTION OF EXHIBIT
       --------    -----------------------------------------------------------------------------------------------
<S>               <C>
       *3.1        -  Amended and Restated Certificate of Incorporation of the Registrant (Exh. 3.1, 3/31/02 10-Q)

       *3.2        -  Amended and Restated By-Laws of the Registrant (Exh. 3.2, 3/31/02 10-Q)

       *4.1        -  Specimen Stock Certificate (Exh. 4.1, 1986 S-1)

       *4.2        -  Loan Agreement dated July 26, 1994 among First Tennessee Bank National  Association,
                      Registrant and P.A.M. Transport, Inc. together with Promissory Note (Exh. 4.1, 6/30/94 10-Q)

       *4.2.1      -  Security Agreement dated July 26, 1994 between First Tennessee Bank National Association and
                      P.A.M. Transport, Inc. (Exh. 4.2, 6/30/94 10-Q)

       *4.3        -  First Amendment to Loan Agreement dated June 27, 1995 by and among P.A.M. Transport, Inc.,
                      First Tennessee Bank National Association and P.A.M. Transportation Services, Inc., together
                      with Promissory Note in the principal amount of $2,500,000 (Exh. 4.1.1, 6/30/95 10-Q)

                                      -56-
<PAGE>

       *4.3.1      -  First Amendment to Security Agreement dated June 28, 1995 by and between P.A.M. Transport,
                      Inc. and First Tennessee Bank National Association (Exh. 4.2.2, 6/30/95 10-Q)

       *4.3.2      -  Security Agreement dated June 27, 1995 by  and between Choctaw Express, Inc. and First
                      Tennessee Bank National Association (Exh. 4.1.3, 6/30/95 10-Q)

       *4.3.3      -  Guaranty Agreement of P.A.M. Transportation Services, Inc. dated June 27, 1995 in favor of
                      First Tennessee Bank National Association respecting $10,000,000 line of credit (Exh. 4.1.4,
                      6/30/95 10-Q)

       *4.4        -  Second Amendment to Loan Agreement dated July 3, 1996 by and among P.A.M. Transport, Inc.,
                      First Tennessee Bank National Association and P.A.M. Transportation Services, Inc., together
                      with Promissory Note in the principal amount of $5,000,000 (Exh. 4.1.1, 9/30/96 10-Q)

       *4.4.1      -  Second Amendment to Security Agreement dated July 3, 1996 by and between P.A.M. Transport,
                      Inc. and First Tennessee National Bank Association (Exh. 4.1.2, 9/30/96 10-Q)

       *4.4.2      -  First Amendment to Security Agreement dated July 3, 1996 by and between Choctaw Express, Inc.
                      and First Tennessee Bank National Association (Exh. 4.1.3, 9/30/96 10-Q)

       *4.4.3      -  Security Agreement dated July 3, 1996 by and between Allen Freight Services, Inc. and First
                      Tennessee Bank National Association (Exh. 4.1.4, 9/30/96 10-Q)

       *4.5.1      -  Loan Agreement dated as of November 22, 2000 by and between P.A.M. Transport, Inc. and
                      SunTrust Bank (Exh. 4.5.1, 2001 10-K)

       *4.5.2      -  Revolving Credit Note dated November 22, 2000 (Exh. 4.5.2, 2001 10-K)

       *4.5.3      -  Security Agreement by and between P.A.M. Transport, Inc. and SunTrust Bank (Exh. 4.5.3,
                      2001 10-K)

       *4.5.4      -  First Amendment to Loan Agreement, Revolving Credit Note and Security Deposit (Exh. 4.5.4,
                      2001 10-K)

       *10.1       -  Employment Agreement between the Registrant and Robert W. Weaver, effective July 1, 2002
                      (Exh. 10.1.1, 2001 10-K)

       *10.1.1     -  New Employment Agreement between the Registrant and Robert W. Weaver, effective
                      July 1, 2004 (Exh. 10.1, 01/25/2005 8-K)

       *10.2       -  Employment Agreement between the Registrant and W. Clif Lawson, dated January 1, 2002
                      (Exh. 10.2, 2001 10-K)

       *10.2.1     -  Memo exercising the Company's option to extend W. Clif Lawson's Employment Agreement by one year
                      (Exh. 10.2.1, 2004 10-K)

       *10.3       -  Employment Agreement between the Registrant and Larry J. Goddard, dated January 1, 2002
                      (Exh. 10.3, 2001 10-K)

       *10.3.1     -  Memo exercising the Company's option to extend Larry J. Goddard's Employment Agreement by one year
                      (Exh. 10.3.1, 2004 10-K)

       *10.4       -  1995 Stock Option Plan, as Amended and Restated (Exh. 4.1, 6/11/99 S-8)

       *10.4.1     -  Amendment to 1995 Stock Option Plan (Exh. 10.1, 03/07/2005 8-K)

       *10.5       -  Interest rate swap agreement, dated March 1, 2001 (Exh. 10.5, 2001 10-K)

       *10.6       -  Interest rate swap agreement dated June 1, 2001 (Exh. 10.6, 2001 10-K)

       *10.7       -  Employee Non-Qualified Stock Option Agreement (Exh. 10.1, 9/30/2004 10-Q)

                                      -57-
<PAGE>

       *10.8       -  Director Non-Qualified Stock Option Agreement (Exh. 10.2, 9/30/2004 10-Q)

       *10.9       -  Executive Officers and Certain Other Employees Incentive Compensation Plan,
                      as amended (Exh. 10.3, 9/30/2004 10-Q)

        10.10      -  Extension of Executive Officers and Certain Other Employees Incentive Compensation Plan,
                      as amended

        21.1       -  Subsidiaries of the Registrant

        23.1       -  Consent of Grant Thornton LLP

        23.2       -  Consent of Deloitte & Touche LLP

        31.1       -  Rule 13a-14(a) Certification of Principal Executive Officer

        31.2       -  Rule 13a-14(a) Certification of Principal Financial Officer

        32.1       -  Section 1350 Certification of Chief Executive Officer

        32.2       -  Section 1350 Certification of Chief Financial Officer
</TABLE>
                                      -58-
<PAGE>

                                   SIGNATURES

Pursuant  to  the  requirements  of Section 13 of the Securities Exchange Act of
1934,  the  registrant  has caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.

                                    P.A.M. TRANSPORTATION SERVICES, INC.

Dated:  March 8, 2006          By:  /s/ Robert W. Weaver
                                    --------------------------
                                    ROBERT W. WEAVER
                                    President and Chief Executive Officer
                                    (principal executive officer)

Dated:  March 8, 2006          By:  /s/ Larry J. Goddard
                                    --------------------------
                                    LARRY J. GODDARD
                                    Vice President-Finance, Chief Financial
                                    Officer, Secretary and Treasurer
                                    (principal financial and accounting officer)

Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has  been signed by the following persons on behalf of the registrant and in the
capacities and on the dates indicated:


Dated:  March 8, 2006          By:  /s/ Robert W. Weaver
                                    --------------------------
                                    ROBERT W. WEAVER
                                    President and Chief Executive
                                    Officer, Director

Dated:  March 8, 2006          By:  /s/ Frederick P. Calderone
                                    --------------------------
                                    FREDERICK P. CALDERONE, Director

Dated:  March 8, 2006          By:  /s/ Frank L. Conner
                                    --------------------------
                                    FRANK L. CONNER, Director

Dated:  March 8, 2006          By:  /s/ Thomas H. Cooke
                                    --------------------------
                                    THOMAS H. COOKE, Director

Dated:  March 8, 2006          By:  /s/ Manuel J. Moroun
                                    --------------------------
                                    MANUEL J. MOROUN, Director

Dated:  March 8, 2006          By:  /s/ Matthew T. Moroun
                                    --------------------------
                                    MATTHEW T. MOROUN, Director

Dated:  March 8, 2006          By:  /s/ Daniel C. Sullivan
                                    --------------------------
                                    DANIEL C. SULLIVAN, Director

Dated:  March 8, 2006          By:  /s/ Charles F. Wilkins
                                    --------------------------
                                    CHARLES F. WILKINS, Director


                                      -59-
<PAGE>

EXHIBIT INDEX

The  following  exhibits  are  filed with or incorporated by reference into this
Report.  The  exhibits  which are denominated by an asterisk (*) were previously
filed as a part of, and are hereby incorporated by reference from either (i) the
Form  S-1 Registration Statement under the Securities Act of 1933, as filed with
the  Securities  and  Exchange  Commission  on  July  30, 1986, Registration No.
33-7618,  as amended on August 8, 1986, September 3, 1986 and September 10, 1986
("1986  S-1"); (ii) the Quarterly Report on Form 10-Q for the quarter ended June
30,  1994  ("6/30/94  10-Q");  (iii)  the  Quarterly Report on Form 10-Q for the
quarter  ended June 30, 1995 ("6/30/95 10-Q"); (iv) the Quarterly Report on Form
10-Q  for  the  quarter  ended September 30, 1996 (9/30/96 10-Q); (v) the Annual
Report on Form 10-K for the year ended December 31, 1996 ("1996 10-K"); (vi) the
Quarterly  Report  on  Form  10-Q  for the quarter ended June 30, 1998 ("6/30/98
10-Q"); (vii) the Form S-8 Registration Statement filed on June 11, 1999; (viii)
the  Annual  Report  on  Form  10-K  for the year ended December 31, 2001 ("2001
10-K");  (ix)  the Quarterly Report on Form 10-Q for the quarter ended March 31,
2002  ("3/31/02  10-Q");  (x)  the Quarterly Report on Form 10-Q for the quarter
ended September 30, 2004 ("9/30/2004 10-Q"); (xi) the Annual Report on Form 10-K
for  the year ended December 31, 2004 ("2004 10-K"); (xii) the Form 8-K filed on
January  25,  2005 ("01/25/2005 8-K"); or (xiii) Form 8-K filed on March 7, 2005
("03/07/2005 8-K").

<TABLE>
<CAPTION>
EXHIBIT#                                          DESCRIPTION OF EXHIBIT
--------    -----------------------------------------------------------------------------------------------
<S>        <C>
*3.1        -  Amended and Restated Certificate of Incorporation of the Registrant (Exh. 3.1, 3/31/02 10-Q)

*3.2        -  Amended and Restated By-Laws of the Registrant (Exh. 3.2, 3/31/02 10-Q)

*4.1        -  Specimen Stock Certificate (Exh. 4.1, 1986 S-1)

*4.2        -  Loan Agreement dated July 26, 1994 among First Tennessee Bank National  Association,
               Registrant and P.A.M. Transport, Inc. together with Promissory Note (Exh. 4.1, 6/30/94 10-Q)

*4.2.1      -  Security Agreement dated July 26, 1994 between First Tennessee Bank National Association and
               P.A.M. Transport, Inc. (Exh. 4.2, 6/30/94 10-Q)

*4.3        -  First Amendment to Loan Agreement dated June 27, 1995 by and among P.A.M. Transport, Inc.,
               First Tennessee Bank National Association and P.A.M. Transportation Services, Inc., together
               with Promissory Note in the principal amount of $2,500,000 (Exh. 4.1.1, 6/30/95 10-Q)

*4.3.1      -  First Amendment to Security Agreement dated June 28, 1995 by and between P.A.M. Transport,
               Inc. and First Tennessee Bank National Association (Exh. 4.2.2, 6/30/95 10-Q)

*4.3.2      -  Security Agreement dated June 27, 1995 by  and between Choctaw Express, Inc. and First
               Tennessee Bank National Association (Exh. 4.1.3, 6/30/95 10-Q)

*4.3.3      -  Guaranty Agreement of P.A.M. Transportation Services, Inc. dated June 27, 1995 in favor of
               First Tennessee Bank National Association respecting $10,000,000 line of credit (Exh. 4.1.4,
               6/30/95 10-Q)

*4.4        -  Second Amendment to Loan Agreement dated July 3, 1996 by and among P.A.M. Transport, Inc.,
               First Tennessee Bank National Association and P.A.M. Transportation Services, Inc., together
               with Promissory Note in the principal amount of $5,000,000 (Exh. 4.1.1, 9/30/96 10-Q)

*4.4.1      -  Second Amendment to Security Agreement dated July 3, 1996 by and between P.A.M. Transport,
               Inc. and First Tennessee National Bank Association (Exh. 4.1.2, 9/30/96 10-Q)

*4.4.2      -  First Amendment to Security Agreement dated July 3, 1996 by and between Choctaw Express, Inc.
               and First Tennessee Bank National Association (Exh. 4.1.3, 9/30/96 10-Q)

*4.4.3      -  Security Agreement dated July 3, 1996 by and between Allen Freight Services, Inc. and First
               Tennessee Bank National Association (Exh. 4.1.4, 9/30/96 10-Q)

*4.5.1      -  Loan Agreement dated as of November 22, 2000 by and between P.A.M. Transport, Inc. and
               SunTrust Bank (Exh. 4.5.1, 2001 10-K)

                                      -60-
<PAGE>

*4.5.2      -  Revolving Credit Note dated November 22, 2000 (Exh. 4.5.2, 2001 10-K)

*4.5.3      -  Security Agreement by and between P.A.M. Transport, Inc. and SunTrust Bank (Exh. 4.5.3,
               2001 10-K)

*4.5.4      -  First Amendment to Loan Agreement, Revolving Credit Note and Security Deposit (Exh. 4.5.4,
               2001 10-K)

*10.1       -  Employment Agreement between the Registrant and Robert W. Weaver, effective July 1, 2002
               (Exh. 10.1.1, 2001 10-K)

*10.1.1     -  New Employment Agreement between the Registrant and Robert W. Weaver, effective
               July 1, 2004 (Exh. 10.1, 01/25/2005 8-K)

*10.2       -  Employment Agreement between the Registrant and W. Clif Lawson, dated January 1, 2002
               (Exh. 10.2, 2001 10-K)

*10.2.1     -  Memo exercising the Company's option to extend W. Clif Lawson's Employment Agreement by one year
               (Exh. 10.2.1, 2004 10-K)

*10.3       -  Employment Agreement between the Registrant and Larry J. Goddard, dated January 1, 2002
               (Exh. 10.3, 2001 10-K)

*10.3.1     -  Memo exercising the Company's option to extend Larry J. Goddard's Employment Agreement by one year
               (Exh. 10.3.1, 2004 10-K)

*10.4       -  1995 Stock Option Plan, as Amended and Restated (Exh. 4.1, 6/11/99 S-8)

*10.4.1     -  Amendment to 1995 Stock Option Plan (Exh. 10.1, 03/07/2005 8-K)

*10.5       -  Interest rate swap agreement, dated March 1, 2001 (Exh. 10.5, 2001 10-K)

*10.6       -  Interest rate swap agreement dated June 1, 2001 (Exh. 10.6, 2001 10-K)

*10.7       -  Employee Non-Qualified Stock Option Agreement (Exh. 10.1, 9/30/2004 10-Q)

*10.8       -  Director Non-Qualified Stock Option Agreement (Exh. 10.2, 9/30/2004 10-Q)

*10.9       -  Executive Officers and Certain Other Employees Incentive Compensation Plan,
               as amended (Exh. 10.3, 9/30/2004 10-Q)

 10.10      -  Extension of Executive Officers and Certain Other Employees Incentive Compensation Plan,
               as amended

 21.1       -  Subsidiaries of the Registrant

 23.1       -  Consent of Grant Thornton LLP

 23.2       -  Consent of Deloitte & Touche LLP

 31.1       -  Rule 13a-14(a) Certification of Principal Executive Officer

 31.2       -  Rule 13a-14(a) Certification of Principal Financial Officer

 32.1       -  Section 1350 Certification of Chief Executive Officer

 32.2       -  Section 1350 Certification of Chief Financial Officer
</TABLE>

                                      -61-
<PAGE>