<PAGE>
                       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, 2003

                                       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
                                 (479) 361-9111
          (Address of principal executive offices, including zip code,
                   and 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

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  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.  [_]

Indicate  by  check  mark  whether  the  registrant  is an accelerated filer (as
defined in Rule 12b-2 of the Exchange Act).
                            Yes [X]          No [_]
<PAGE>

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 $164,686,259. 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 February
28, 2004:  11,294,207 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 2004 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.

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 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  "Business  -  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.

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.
<PAGE>


                                     PART I

ITEM 1. BUSINESS.

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.  During 2003 we began to more
aggressively  enter the logistics market with the acquisition of a company which
provides  logistics-only  services.  The  logistics  portion of our business, as
compared  to  trucking  operations which require a significant capital equipment
investment, generally have lower operating margins and higher returns on assets.
Our  logistics  business consists of services such as transportation scheduling,
routing,  mode selection, transloading and other value added services related to
the transportation of freight.

P.A.M.  Transportation  Services,  Inc. is a holding company organized under the
laws  of  the State of Delaware in June 1986 which currently 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  and  McNeill  Express,  Inc.  Our  operating authorities are held by P.A.M.
Transport,  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.

OPERATIONS

     Our business 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.  During 2003, approximately 64% of our operating
revenues  were  generated through dedicated equipment and we maintained an empty
mile factor of 4.5%.  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.
<PAGE>

Providing  Superior  and  Flexible  Customer Service. Our wide range of services
includes dedicated fleet 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
enhance  fuel  efficiency, 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.

INDUSTRY

The  U.S.  market  for  truck-based  transportation  services  approximates $500
billion  in annual revenue. We believe that truckload services, such as those we
provide,  include approximately $65 billion of for-hire revenues and $80 billion
of  private  fleet  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 insurance companies, rising fuel costs, and erosion of
       equipment values in the used truck market.

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

<PAGE>

COMPETITION

The  trucking  industry  is highly competitive.  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  and  has  generally exerted downward pressure on prices.  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 MAJOR CUSTOMERS

Our marketing emphasis is directed to that segment 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 six employees who are
located  in  our  major  markets  and  supervised  from our headquarters.  These
individuals  emphasize  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 59%, 74% and 64% of
our  total  revenues  in  2001,  2002  and  2003,  respectively.  General Motors
Corporation  accounted  for  approximately  40%,  56% and 46% of our revenues in
2001, 2002 and 2003, respectively.

We also provide transportation services to other manufacturers who are suppliers
for  automobile  manufacturers.  Approximately  55%, 68% and 58% of our revenues
were  derived  from  transportation services provided to the automobile industry
during  2001,  2002  and  2003,  respectively.  This  portion  of  our business,
however,  is spread over 23 assembly plants and over 50 supplier/vendors located
throughout  North  America, which we believe reduces the risk of a material loss
of business.
<PAGE>

REVENUE EQUIPMENT

At  December 31, 2003, we operated a fleet of 1,913 tractors and 4,175 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 within 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:
                                                   2001      2002      2003
                                                  -----     -----     -----
     Tractors
     --------
     Additions                                      505       430       781
     Deletions                                      258       309       649
     End of year total                            1,660     1,781     1,913
     Average age at end of year (in years)          1.8       2.1       1.9

     Trailers
     --------
     Additions                                      228       127       991
     Deletions                                       55        86       789
     End of year total                            3,932     3,973     4,175
     Average age at end of year (in years)          5.3       5.7       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, 2003 the Company's tractor
fleet included 103 owner-operator tractors.

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
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.
<PAGE>

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.  Although
a significant portion of maintenance is performed at our maintenance facility in
Tontitown,  Arkansas,  we have additional maintenance facilities in West Memphis
and  North  Little  Rock,  Arkansas; Jacksonville, Florida; Effingham, Illinois;
Columbia,  Mississippi; Springfield, Missouri; Riverdale, New Jersey; Warren and
Willard,  Ohio;  Oklahoma City, Oklahoma; and El Paso, Irving and Laredo, Texas.
These  facilities  enhance our preventive and routine maintenance operations and
are strategically located on major transportation routes where a majority of our
freight  originates  and  terminates.  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.

DRIVERS

At  December  31, 2003, we utilized 2,235 company drivers in our operations.  We
also  had  103  owner-operators  under contract compensated on a per mile basis.
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,  and  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 our terminals in Tontitown, Arkansas;
Jacksonville,  Florida;  Riverdale,  New  Jersey;  Warren,  Ohio; Oklahoma City,
Oklahoma;  and Irving, Texas.  At December 31, 2003, we employed 72 persons on a
full-time  basis  in  our  driver  recruiting,  training  and safety instruction
programs.

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.

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.
<PAGE>

FACILITIES

We  are  headquartered and maintain our primary terminal, maintenance facilities
and  corporate  and  administrative  offices  in  Tontitown,  Arkansas, which is
located  in  northwest  Arkansas,  a  major center for the trucking industry and
where  support  services,  including  warranty  repair  services, for most major
tractor  and  trailer  equipment  manufacturers  are readily available.  We also
maintain dispatch offices at our headquarters in Tontitown, Arkansas, as well as
at  our  offices  in North Little Rock, Arkansas; Jacksonville, Florida; Breese,
Illinois;  Columbia,  Mississippi;  Warren  and  Willard,  Ohio;  Oklahoma City,
Oklahoma;  Riverdale  and  Paulsboro,  New Jersey; and Irving and Laredo, Texas.
These  regional  dispatch  offices  facilitate  communications  with  both  our
customers and drivers.

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 Exchange Act as soon as reasonably practicable after it
electronically files or furnishes such materials to the SEC.

EMPLOYEES

At December 31, 2003, we employed 2,765 persons, of whom 2,235 were drivers, 151
were maintenance personnel, 210 were employed in operations, 24 were employed in
marketing,  72  were  employed  in safety and personnel, and 73 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.

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.

The  trucking industry is subject to possible regulatory and legislative changes
(such  as  increasingly stringent environmental, safety and security regulations
and  limits  on  vehicle  weight  and size) that may affect the economics of the
industry  by  requiring changes in operating practices or by changing the demand
for  common  or  contract  carrier  services  or the cost of providing truckload
services.  These  types  of  future  regulations  could  unfavorably  affect our
operations.
<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      54      President and Chief
                                 Executive Officer                  21

   W. Clif Lawson        50      Executive Vice President
                                 and Chief Operating Officer        19

   Larry J. Goddard      45      Vice President - Finance
                                 Chief Financial Officer,
                                 Secretary and Treasurer            16

Each  of  our  executive officers has held his present position with the company
for  at  least  the last five years.  We have entered into employment agreements
with  our  executive  officers  with  terms  remaining  of from three to sixteen
months.

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.  It  is  not  possible  to  predict the medium- or long-term
effects of the September 11, 2001 terrorist attacks and subsequent events on the
economy  or  on customer confidence in the United States, or the impact, if any,
on our future results of operations.

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.
<PAGE>

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.

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
2003,  our top five customers, based on revenue, accounted for approximately 64%
of  our revenue, and our largest customer, General Motors Corporation, accounted
for  approximately  46% 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 58% of our revenues
for  2003  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.
<PAGE>

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 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.

Increased  prices  for  new revenue equipment and decreases in the value of used
revenue equipment may adversely affect our earnings and cash flows.

In  the past, we have acquired new tractors and trailers at favorable prices and
traded  or  disposed  of them at prices significantly higher than current market
values.  There  is currently a large supply of used tractors and trailers on the
market,  which  has  depressed  the  market  value  of  used equipment to levels
significantly  below  the  values  we  historically received.  In addition, some
manufacturers  have  communicated  their  intention  to  raise the prices of new
equipment.  If  either  or  both  of  these  events  occur,  we may increase our
depreciation  expense  or  recognize less gain (or a loss) on the disposition of
our  tractors  and  trailers.  This could adversely affect our earnings and cash
flows.
<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  three  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.

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  terminal  facilities  in  West  Memphis,  Arkansas;
Jacksonville,  Florida;  Springfield,  Missouri;  Riverdale  and  Paulsboro, New
Jersey;  Warren,  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, and provide on-the-road maintenance and
trailer drop and relay stations.

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.
<PAGE>

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, 2003.

                                     PART II

ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS.

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.  The  bid  prices  in  the  tables below do not include retail
mark-up, mark-down or commission.

Calendar Year Ended December 31, 2003
                                          HIGH        LOW
                                          ----        ---
                    First Quarter        $28.17     $20.25
                    Second Quarter        26.55      21.00
                    Third Quarter         22.99      19.80
                    Fourth Quarter        22.31      18.10


Calendar Year Ended December 31, 2002
                                          HIGH        LOW
                                          ----        ---
                    First Quarter        $26.00     $12.68
                    Second Quarter        27.55      22.25
                    Third Quarter         26.23      18.89
                    Fourth Quarter        26.30      18.15

As  of  March  8,  2004,  there  were approximately 208 holders of record of our
common  stock.  We  have  not  declared or paid any cash dividends on our common
stock.  The  policy  of  our  board  of  directors is to retain earnings for the
expansion  and development of our business and the repayment 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.
<PAGE>

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,
                                                  2003         2002        2001         2000         1999
                                               ---------    ---------   ---------    ---------    ---------
                                                         (in thousands, except per share amounts)
<S>                                            <C>          <C>         <C>          <C>          <C>
Statement of operations data:
Operating revenues                             $ 293,547    $ 264,012   $ 225,794    $ 205,245    $ 207,381
                                               ---------    ---------   ---------    ---------    ---------
Operating expenses:
   Salaries, wages and benefits                  119,350      115,432     100,359       90,680       90,248
   Operating supplies                             55,750       51,161      43,289       37,728       35,246
   Rent and purchased transportation              35,287        9,780      10,526       12,542       13,309
   Depreciation and amortization                  26,601       24,715      20,300       18,806       18,392
   Operating taxes and licenses                   14,710       13,467      11,936       11,140       11,334
   Insurance and claims                           13,500       12,786      10,202        8,674        7,945
   Communications and utilities                    2,540        2,284       2,320        2,234        2,365
   Other                                           4,755        4,620       4,707        3,756        4,388
   (Gain) loss on sale or
    disposal of property                             368          127         886          285         (301)
                                               ---------    ---------   ---------    ---------    ---------
Total operating expenses                         272,861      234,372     204,525      185,845      182,926
                                               ---------    ---------   ---------    ---------    ---------
Operating income                                  20,686       29,640      21,269       19,400       24,455
Non-operating income                                 276            -           -            -            -
Interest expense                                  (1,677)      (1,985)     (4,477)      (5,048)      (5,650)
                                               ---------    ---------   ---------    ---------    ---------
Income before income taxes                        19,295       27,655      16,792       14,352       18,805
Income taxes                                       7,805       11,062       6,721        5,694        7,536
                                               ---------    ---------   ---------    ---------    ---------
Net income                                     $  11,490    $  16,593   $  10,071    $   8,658    $  11,269
                                               =========    =========   =========    =========    =========
Earnings per common share:
Basic                                            $  1.02      $  1.56     $  1.18      $  1.02      $  1.34
                                                 =======      =======     =======      =======      =======
Diluted                                          $  1.01      $  1.55     $  1.18      $  1.02      $  1.33
                                                 =======      =======     =======      =======      =======
Average common shares outstanding-Basic           11,291       10,669       8,522        8,455        8,393
                                                 =======      =======     =======      =======      =======
Average common shares outstanding-Diluted(1)      11,326       10,715       8,550        8,518        8,488
                                                 =======      =======     =======      =======      =======
</TABLE>
--------------------------------------------------------------------------------
(1)  Diluted  income  per  share for 2003, 2002, 2001, 2000 and 1999 assumes the
exercise  of stock options to purchase an aggregate of 65,258, 87,984, 107,369,
208,602 and 262,097 shares of common stock, respectively.

<TABLE>
<CAPTION>
                                                                      AT DECEMBER 31,
                                                  2003         2002        2001         2000         1999
                                                --------     --------    --------     --------     --------
Balance Sheet Data:                                                   (in thousands)
<S>                                             <C>          <C>         <C>          <C>          <C>
Total Assets                                    $264,849     $228,320     $182,516    $164,518     $168,961
Long-term debt, excluding current portion         26,740       20,175       47,023      42,073       55,617
Stockholders' equity                             156,875      144,452       72,597      62,210       53,365
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
                                                                  YEAR ENDED DECEMBER 31,
                                                  2003         2002        2001         2000         1999
                                                --------     --------    --------     --------     --------
Operating Data:
<S>                                             <C>          <C>         <C>          <C>          <C>
Operating ratio (1)                                92.9%        88.7%       90.6%        90.5%        88.2%
Average number of truckloads per week              7,105        6,463       5,399        5,169        4,885
Average miles per trip                               701          755         769          713          734
Total miles traveled (in thousands)              242,890      238,256     204,303      183,476      186,355
Average miles per tractor                        131,934      136,772     131,554      128,936      128,966
Average revenue per tractor per day                 $653         $621        $591         $579         $570
Average revenue per loaded mile                    $1.13        $1.15       $1.17        $1.18        $1.18
Empty mile factor                                   4.5%         4.0%        5.5%         5.6%         5.4%

At end of period:
Total company-owned/leased tractors                1,913(2)     1,781(3)     1,660(4)    1,413(5)     1,468(6)
Average age of all tractors (in years)              1.94         2.12         1.81        1.72         1.64
Total trailers                                     4,175        3,973        3,932       3,759        3,846(7)
Average age of trailers (in years)                  5.15         5.74         5.31        4.66         3.97
Number of employees                                2,765        2,538        2,424       2,154        1,899
-----------------------------------------------
(1) Total operating expenses as a percentage
    of total operating revenues.
(2) Includes 103 owner operator tractors.
(3) Includes 130 owner operator tractors.
(4) Includes 135 owner operator tractors.
(5) Includes 117 owner operator tractors.
(6) Includes 148 owner operator tractors.
(7) Includes 21 trailers leased from an
    affiliate of our majority shareholder.
</TABLE>


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

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 party and  vendor  receivables  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,  plant  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 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 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.
<PAGE>

Revenue  Recognition.  Revenue is recognized in full upon completion of delivery
to  the  receivers  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 with estimated
expenses recognized upon recognition of the related revenue.

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.  Substantially all tires are
recapped with the cost of recapping expensed when incurred.

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 was tested for impairment
on  December  31, 2003. 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 SFAS No. 142.

RESULTS OF OPERATIONS

The  following  table  sets  forth  the  percentage  relationship of revenue and
expense items to operating revenues for the periods indicated.

                                                 YEARS ENDED DECEMBER 31,
                                                 2003      2002      2001
                                                 ----      ----      ----
     Operating revenues                         100.0%    100.0%    100.0%
                                                ------    ------    ------
     Operating expenses:
       Salaries, wages and benefits              40.7      43.7      44.4
       Operating supplies                        19.0      19.4      19.2
       Rent and purchased transportation         12.0       3.7       4.7
       Depreciation and amortization              9.0       9.4       9.0
       Operating taxes and licenses               5.0       5.1       5.3
       Insurance and claims                       4.6       4.8       4.5
       Communications and utilities               0.9       0.9       1.0
       Other                                      1.6       1.7       2.1
       Loss on sale or disposal of property       0.1       0.0       0.4
                                                ------    ------    ------
     Total operating expenses                    92.9      88.7      90.6
                                                ------    ------    ------
     Operating income                             7.1      11.3       9.4
     Non-operating income                         0.1       0.0       0.0
     Interest expense                            (0.6)     (0.8)     (2.0)
                                                ------    ------    ------
     Income before income taxes                   6.6      10.5       7.4
     Federal and state income taxes               2.7       4.2       3.0
                                                ------    ------    ------
     Net income                                   3.9%      6.3%      4.4%
                                                ======    ======    ======
<PAGE>

2003 COMPARED TO 2002

For  the  year  ended  December  31,  2003,  our revenues were $293.5 million as
compared  to  $264.0 million for the year ended December 31, 2002.  The increase
in  revenues was due to the revenues generated by East Coast Transport, Inc. and
McNeill  Express, Inc., which were each acquired during 2003.  During 2003, East
Coast  Transport,  Inc.  and  McNeill  Express, Inc. revenues were approximately
$30.5  million  and  $10.2  million,  respectively.  The  additional  revenues
generated  by  the  two  acquisitions  were  partially  offset  by a decrease in
revenues  attributable  to  a decrease in equipment utilization by the truckload
operations  portion  of  our  business.  This  decrease in equipment utilization
resulted  in  a 4.9% decrease in average truckload revenue generated per tractor
each work day from $596 in 2002 to $567 in 2003.

Salaries,  wages  and benefits decreased from 43.7% of revenues in 2002 to 40.7%
of revenues in 2003.  The decrease relates to a decrease in company driver wages
as  a  percentage of revenues due to the reliance on third party drivers for our
logistics  operations  which  is  reflected as purchased transportation costs as
discussed  below.  The  decrease,  as  a  percentage  of revenues, was partially
offset  by  increases  in  workers  compensation  and  health  insurance  costs.

Rent  and  purchased  transportation  increased from 3.7% of revenues in 2002 to
12.0%  of  revenues  in  2003.  The  increase relates primarily to the logistics
operations of East Coast Transport, Inc. which purchases transportation services
from other transportation companies.

Depreciation and amortization decreased from 9.4% of revenues in 2002 to 9.0% of
revenues  in 2003.  The decrease, as a percentage of revenues, was primarily due
to  the  additional revenues generated by our logistics operations which have no
corresponding  revenue  equipment  depreciation expense.  Excluding the dilutive
effect  of  the revenues generated by our logistics operations, depreciation and
amortization  expense  increased from 9.8% of truckload revenue in 2002 to 10.4%
of  truckload  revenue  in  2003  due  to the combined effect of higher purchase
prices  for  new  equipment  and lower guaranteed residual values offered by the
manufacturer.

Our effective tax rate increased from 40.0% during 2002 to 40.4% during 2003 due
to  an  increase  in partially non-deductible per-diem payments to drivers.  The
decrease  in income from operations also resulted in a decrease in the provision
for  income  taxes  from  $11.1  million  in  2002  to  $7.9  million  in  2003.

Net  income  decreased to $11.5 million, or 3.9% of revenues, in 2003 from $16.6
million,  or  6.3%  of  revenues in 2002, representing a decrease in diluted net
income per share to $1.02 in 2003 from $1.55 in 2002.
<PAGE>

2002 COMPARED TO 2001

For  the  year  ended  December  31,  2002,  our revenues were $264.0 million as
compared  to  $225.8 million for the year ended December 31, 2001.  The increase
was due to improved utilization of existing revenue equipment and an increase in
the  average  number  of tractors from 1,553 in 2001 to 1,742 in 2002.  Improved
utilization of existing revenue equipment resulted in a 5.1% increase in average
revenue  generated  per tractor each work day from $591 in 2001 to $621 in 2002.

Salaries,  wages  and benefits decreased from 44.4% of revenues in 2001 to 43.7%
of  revenues  in 2002.  While total salaries and wages costs did increase during
2002,  the  increase in revenues caused these costs to continue at approximately
the same percentage of revenue.  The decrease, as a percent of revenues, relates
to a decrease in the amount reserved for employee health claims incurred but not
reported.

Rent  and  purchased  transportation  decreased from 4.7% of revenues in 2001 to
3.7%  of  revenues  in  2002.  The  decrease  relates primarily to a decrease in
amounts  paid  to  other  transportation companies in the form of brokerage fees
thereby  resulting  in  a  shift  of  costs for driver wages, fuel and equipment
costs,  although  to  a  lesser extent, to the Company's other operating expense
categories.

Depreciation and amortization increased from 9.0% of revenues in 2001 to 9.4% of
revenues  in  2002.  The  increase  was  primarily due to the combined effect of
higher  purchase  prices  for new equipment and lower guaranteed residual values
offered by the manufacturer.

Insurance and claims increased from 4.5% of revenues in 2001 to 4.8% of revenues
in  2002.  The  increase  relates  primarily  to  an  increase in rates for auto
liability insurance coverage.

Other  expenses  decreased  from 2.1% of revenues in 2001 to 1.7% of revenues in
2002.  The  decrease  relates  primarily  to  the  expiration  of  non-compete
agreements with certain employees of a previously acquired company.

Interest  expense decreased from 2.0% of revenues in 2001 to 0.8% of revenues in
2002  due  to  a  decrease  in  interest  rates  and to the repayment of debt as
discussed  in  the  "Liquidity  and  Capital  Resources" section of this report.

Our effective tax rate remained constant at 40.0% during 2001 and 2002, however,
increased  net  income resulted in an increase in the provision for income taxes
from $6.7 million in 2001 to $11.1 million in 2002.

Net  income  increased to $16.6 million, or 6.3% of revenues, in 2002 from $10.1
million,  or  4.4%  of revenues in 2001, representing an increase in diluted net
income per share to $1.55 in 2002 from $1.18 in 2001.
<PAGE>

QUARTERLY RESULTS OF OPERATIONS

The  following  table  presents  selected consolidated financial information for
each  of  our  last  eight  fiscal  quarters  through  December  31,  2003.  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,
                              2002       2002        2002        2002        2003        2003        2003        2003
                              ----       ----        ----        ----        ----        ----        ----        ----
                                                                   (unaudited)
                                                 (in thousands, except earnings per share data)
<S>                         <C>         <C>         <C>         <C>         <C>         <C>         <C>         <C>
Operating revenues          $63,313     $70,841     $65,034     $64,824     $70,139     $74,956     $74,216     $74,236
Total operating expenses     56,331      62,082      58,061      57,898      65,185      67,896      68,899      70,881
Operating income              6,982       8,759       6,973       6,926       4,954       7,060       5,317       3,355
Net income                    3,606       5,034       3,958       3,995       2,818       4,047       2,965       1,660
Earnings per common share:
Basic                       $  0.40     $  0.45     $  0.35     $  0.36     $  0.25     $  0.36     $  0.26     $  0.15
                            =======     =======     =======     =======     =======     =======     =======     =======
Diluted                     $  0.40     $  0.45     $  0.35     $  0.35     $  0.25     $  0.36     $  0.26     $  0.14
                            =======     =======     =======     =======     =======     =======     =======     =======
</TABLE>

LIQUIDITY AND CAPITAL RESOURCES

During  2003,  we  generated  $37.9  million  in  cash from operating activities
compared  to  $48.9  million  and  $31.4 million in 2002 and 2001, respectively.
Investing  activities  used  $68.4 million in cash during 2003 compared to $30.4
million  and $36.7 million in 2002 and 2001, 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 generated $2.8 million
in  cash during 2003 compared to cash generated by financing activities of $11.4
million in 2002 and $5.7 million in 2001.  (See Cash Flow Statement on page 31.)

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  2002  and  2003,  we  utilized  cash  on hand and our lines of credit to
finance  revenue equipment purchases for an aggregate of $35.9 million and $69.6
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.  At
December  31, 2003, we had outstanding indebtedness under such installment notes
of  approximately  $94,000.  As  of  February  28,  2004,  we  no longer had any
outstanding indebtedness under such installment notes.
<PAGE>

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%, are secured by our
accounts  receivable  and  mature  on  May 31, 2005.  At December 31, 2003, $4.2
million, including $1.3 million in letters of credit were outstanding under Line
A,  with availability to borrow $15.8 million.  Amounts outstanding under Line B
bear  interest  at LIBOR (on the last day of the previous month) plus 1.15%, are
secured by revenue equipment and mature on June 30, 2005.  At December 31, 2003,
$27.0 million, including $7.0 million in letters of credit were outstanding with
availability  to borrow $3.0 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.

During  March and April 2002, the Company received net proceeds of approximately
$54.5  million  from  a public offering of 2,621,250 shares of its common stock.
The  Company  repaid  approximately  $43.0 million of long-term debt obligations
with  the  proceeds  and  used  the  remaining  proceeds  to  fund  its  capital
expenditures and to finance general working capital needs.

During the year ended December 31, 2003, we purchased approximately $4.0 million
of  equity  securities  with  excess  cash.  These  securities  appreciated
approximately $1.6 million during 2003.  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.  The  holding  term depends largely on the general economic environment,
the  equity  markets,  borrowing  rates  and  the  Company's  cash requirements.

Accounts  receivable  increased  approximately  $12.0  million  as  compared  to
December  31,  2002.  The  increase relates to an increase of approximately $6.5
million  generated by the two businesses acquired during 2003 and to an increase
in  revenues  earned  but  not  yet  billed  as  compared  to  2002.

Prepaid  expenses and deposits at December 31, 2003 increased approximately $3.0
million as compared to December 31, 2002.  The increase relates primarily to the
prepayment  of auto liability and physical damage insurance policies expiring in
August  2004  which  in  past  years,  expired  on  a  calendar  year  basis.

Trade  accounts  payable  at  December  31,  2003  increased  approximately $6.6
million  as  compared  to  December  31, 2002. This is a normal fluctuation that
occurs  as a result of the timing of regularly scheduled check runs and how they
fall  in  relation  to  the  end  of  a  period.

For 2004, we expect to purchase approximately 415 new tractors and approximately
310  trailers while continuing to sell or trade older equipment, which we expect
to  result  in  net  capital  expenditures  of  approximately  $26.5  million.
Management  expects  that  the  Company's  existing operating cash flows and its
available  lines  of  credit  will  be  sufficient to meet the Company's present
capital commitments, to repay indebtedness coming due, and to fund its operating
needs, during 2004.

On January 31, 2003, the Company closed the purchase of substantially all of the
assets  of  East  Coast  Transport  and  Logistics,  Inc.,  a  freight brokerage
operation based in New Jersey.  In connection with this acquisition, the Company
issued  to  the  seller  an installment note in the amount of approximately $5.0
million  at  an  interest rate of 6% and paid cash of approximately $1.9 million
utilizing existing cash.

On  April  3,  2003, the Company closed the purchase of substantially all of the
assets  of  McNeill  Trucking,  Inc.,  a truckload carrier based in North Little
Rock,  Arkansas.  In  connection with this acquisition, the Company paid cash of
approximately  $8.8  million  and  assumed liabilities of approximately $70,000.
<PAGE>

CONTRACTUAL OBLIGATIONS AND COMMERCIAL COMMITMENTS

The  following  table  sets  forth  the  Company's  contractual  obligations and
commercial commitments as of December 31, 2003 (in thousands):

<TABLE>
<CAPTION>
                                                  Payments due by period
                                                  ----------------------
                                             Less than    1 to 3      3 to 5     More than
                                   Total      1 year      years       years       5 Years
                                  -------     -------     -------     -------     -------

<S>                              <C>         <C>         <C>          <C>        <C>
Long-term debt                    $28,779      $2,039     $24,218      $1,474      $1,048
Operating leases (1)                1,573         582         487         336         168
Capital leases                          -           -           -           -           -
Purchase obligations (2)           41,165      41,165           -           -           -
Other long-term liabilities             -           -           -           -           -
                                  -------     -------     -------     -------     -------
Total                             $71,517     $43,786     $24,705      $1,810      $1,216
                                  =======     =======     =======     =======     =======

   (1)  Represents building and facilities operating leases.
   (2)  Represents tractor and trailer purchase obligations which are
        cancelable by us contingent upon advance notice.
</TABLE>

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.  The Company elected in 2002 and 2003
to self insure itself for physical damage to trailers.  During 2003, the Company
changed  its  workers' compensation coverage in Arkansas, Oklahoma, Mississippi,
Ohio  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  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 $3,433,000 are held by a
bank as security for workers' compensation claims.  The Company self insures for
employee  health  claims  with  a stop loss of $150,000 per covered employee per
year  and  estimates  its  liability  for  claims  incurred  but  not  reported.

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.
<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."

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

Our  primary  market risk exposures include commodity price risk (the price paid
to  obtain  diesel fuel for our tractors) and interest rate risk.  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.

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.  For
2003  and  2002, fuel expenses represented 15.7% and 15.0%, respectively, of our
total  operating expenses.  Based upon our 2003 fuel consumption, a 10% increase
in  the average annual price per gallon of diesel fuel would increase our annual
fuel expenses by $4.3 million.

In  August  2000  and  July  2001,  we  entered  into agreements to obtain price
protection  and  reduce  a  portion  of our exposure to fuel price fluctuations.
Under  these agreements, we were obligated to purchase minimum amounts of diesel
fuel  per  month,  with  a price protection component, for the six month periods
ended March 31, 2001 and February 28, 2002.  The agreements also provide that if
during  the 48 months commencing April 2001, the price of heating oil on the New
York  Mercantile  Exchange  ("NY  MX  HO")  falls  below $.58 per gallon, we are
obligated  to  pay,  for  a  maximum  of twelve different months selected by the
contract  holder  during  such  48-month period, the difference between $.58 per
gallon  and NY MX HO average price, multiplied by 900,000 gallons.  Accordingly,
in  any month in which the holder exercises such right, we would be obligated to
pay  the  holder $9,000 for each cent by which $.58 exceeds the average NY MX HO
price  for  that month.  For example, the NY MX HO average price during February
2002  was  approximately  $.54,  and  if the holder were to exercise its payment
right,  we  would  be  obligated  to  pay  the holder approximately $36,000.  In
addition,  if  during  any  month  in the twelve-month period commencing January
2005, the average NY MX HO is below $.58 per gallon, we will be 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.  The agreements are stated at
their  fair  value  of  $750,000 which is included in accrued liabilities in the
accompanying Consolidated Financial Statements.
<PAGE>

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  generally,  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 each of Line A and Line B for a full fiscal year, a hypothetical 100 basis
point  increase  in  LIBOR  would result in approximately $200,000 of additional
interest  expense,  net  of  the  effect of the swap agreements.  For additional
information  with  respect  to the interest rate swap agreements, see Note 15 to
our consolidated financial statements.
<PAGE>

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.

The following statements are filed with this report:

        Report of Independent Public Accountants

        Consolidated Balance Sheets - December 31, 2003 and 2002

        Consolidated Statements of Income - Years ended December 31, 2003,
        2002 and 2001

        Consolidated Statements of Shareholders' Equity - Years ended
        December 31, 2003, 2002 and 2001

        Consolidated Statements of Cash Flows - Years ended December 31, 2003,
        2002 and  2001

        Notes to Consolidated Financial Statements

<PAGE>

INDEPENDENT AUDITORS' REPORT


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

We  have  audited  the  accompanying  consolidated  balance  sheets  of  P.A.M.
Transportation  Services,  Inc.  (a  Delaware corporation) and subsidiaries (the
"Company")  as  of  December  31,  2003  and  2002, and the related consolidated
statements  of  income,  shareholders' equity, and cash flows for the years then
ended.  These  consolidated  financial  statements are the responsibility of the
Company's  management.  Our  responsibility  is  to  express an opinion on these
consolidated  financial statements based on our audits. The financial statements
for  the  year  ended December 31, 2001, were audited by other auditors who have
ceased  operations.  Those  auditors  expressed  an unqualified opinion on those
financial statements in their report dated February 21, 2002.

We conducted our audits in accordance with auditing standards generally accepted
in  the  United  States  of  America.  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, 2003 and 2002, and the results of their
operations  and  their  cash  flows  for the years then ended in conformity with
accounting  principles  generally  accepted  in  the  United  States of America.

As  discussed  in  Note  1 to the consolidated financial statements, the Company
changed  its  method  of  accounting  for  goodwill  to  conform to Statement of
Financial Accounting Standards No. 142, Goodwill and Other Intangible Assets, as
of January 1, 2002.

/s/ Deloitte & Touche LLP

Little Rock, Arkansas
March 10, 2004

<PAGE>

THE  FOLLOWING  IS A COPY OF A REPORT ISSUED BY ARTHUR ANDERSEN LLP AND INCLUDED
IN  THE  2001 FORM 10-K REPORT FILED ON MARCH 1, 2002.  THIS REPORT HAS NOT BEEN
REISSUED  BY  ARTHUR  ANDERSEN LLP, AND ARTHUR ANDERSEN LLP HAS NOT CONSENTED TO
ITS  USE  IN  THIS FORM 10-K.  SEE ITEM 9 AND EXHIBIT 23.2 FOR MORE INFORMATION.

                    REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS

To the Board of Directors and Shareholders of
P.A.M. Transportation Services, Inc.:

We  have  audited  the  accompanying  consolidated  balance  sheets  of  P.A.M.
Transportation  Services,  Inc.  (a Delaware corporation) and subsidiaries as of
December  31,  2001 and 2000, and the related consolidated statements of income,
shareholders'  equity,  and cash flows for each of the three years in the period
ended  December  31,  2001.  These  consolidated  financial  statements  are the
responsibility  of the Company's management. Our responsibility is to express an
opinion  on  these  consolidated  financial  statements  based  on  our  audits.

We conducted our audits in accordance with auditing standards generally accepted
in the 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, 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, 2001 and 2000,
and  the  results of their operations and their cash flows for each of the three
years  in  the  period  ended  December  31, 2001, in conformity with accounting
principles generally accepted in the United States.

Our  audits  were  made  for  the  purpose  of  forming  an opinion on the basic
financial  statements  taken  as  a  whole.  The schedule listed in the index of
financial  statements is presented for purposes of complying with the Securities
and  Exchange  Commission's  rules  and  is  not  part  of  the  basic financial
statements.  This schedule has been subjected to the auditing procedures applied
in  the  audit  of  the  basic  financial statements and, in our opinion, fairly
states  in  all  material  respects  the financial data required to be set forth
therein  in  relation  to  the  basic  financial  statements  taken  as a whole.

/s/ Arthur Andersen LLP

Tulsa, Oklahoma
February 21, 2002
<PAGE>
<TABLE>
<CAPTION>
P.A.M. TRANSPORTATION SERVICES, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2003 AND 2002
(in thousands)
--------------------------------------------------------------------------------
                                                           2003            2002
<S>                                                    <C>             <C>
ASSETS
CURRENT  ASSETS:
 Cash and cash equivalents                             $   3,064       $  30,766
 Accounts receivable-net:
  Trade                                                   46,120          34,231
  Other                                                    1,150           1,221
 Inventories                                                 653             411
 Prepaid expenses and deposits                             6,771           3,647
 Marketable equity securities available-for-sale           5,492
 Deferred income taxes                                                       127
 Income taxes refundable                                   1,256             281
                                                       ---------       ---------
     Total current assets                                 64,506          70,684

PROPERTY AND EQUIPMENT:
 Land                                                      2,674           2,237
 Structures and improvements                               9,258           7,552
 Revenue equipment                                       249,713         215,509
 Service vehicles                                            911             805
 Office furniture and equipment                            6,863           7,056
                                                       ---------       ---------
                                                         269,419         233,159
 Accumulated depreciation                                (86,689)        (85,787)
                                                       ---------       ---------
                                                         182,730         147,372
OTHER ASSETS:
 Goodwill                                                 15,413           8,102
 Other                                                     2,200           2,162
                                                       ---------       ---------
                                                          17,613          10,264
                                                       ---------       ---------
TOTAL                                                  $ 264,849       $ 228,320
                                                       =========       =========

                                                                     (Continued)
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
P.A.M. TRANSPORTATION SERVICES, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2003 AND 2002
(in thousands, except share data)
--------------------------------------------------------------------------------
                                                           2003            2002
<S>                                                    <C>             <C>
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT  LIABILITIES:
 Trade accounts payable                                $  22,295       $  15,725
 Accrued expenses and other liabilities                   11,167           9,601
 Current portion of long-term debt                         2,039           1,017
 Deferred income taxes-current                             1,330
                                                       ---------       ---------
     Total current liabilities                            36,831          26,343

 Long-term debt current portion                           26,740          20,175
 Deferred income taxes                                    43,708          37,350
 Other                                                       695

SHAREHOLDERS' EQUITY:
 Preferred stock, $.01 par value:
  Authorized shares - 10,000,000
  Issued and outstanding shares:
  0 at December 31, 2003 and 2002
 Common stock, $.01 par value:
  Authorized shares - 40,000,000
  Issued and outstanding shares:
  11,294,207  and  11,282,207
  at December 31, 2003 and 2002, respectively                113             113
 Additional paid-in capital                               75,957          76,193
 Accumulated other comprehensive gain/(loss)                 164          (1,005)
 Retained earnings                                        80,641          69,151
                                                       ---------       ---------
     Total shareholders' equity                          156,875         144,452
                                                       ---------       ---------
TOTAL                                                  $ 264,849       $ 228,320
                                                       =========       =========

See notes to consolidated financial statements.                      (Concluded)
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
P.A.M. TRANSPORTATION SERVICES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME
YEARS ENDED DECEMBER 31, 2003, 2002 AND 2001
(in thousands, except share data)
-------------------------------------------------------------------------------

                                             2003          2002          2001
<S>                                       <C>           <C>           <C>
OPERATING REVENUES                        $ 293,547     $ 264,012     $ 225,794

OPERATING EXPENSES AND COSTS:
 Salaries, wages, and benefits              119,350       115,432       100,359
 Operating supplies and expenses             55,750        51,161        43,289
 Rents and purchased transportation          35,287         9,780        10,526
 Depreciation and amortization               26,601        24,715        20,300
 Operating taxes and licenses                14,710        13,467        11,936
 Insurance and claims                        13,500        12,786        10,202
 Communications and utilities                 2,540         2,284         2,320
 Other                                        4,755         4,620         4,707
 Loss on sale or disposal of equipment          368           127           886
                                          ---------     ---------     ---------
                                            272,861       234,372       204,525
                                          ---------     ---------     ---------
OPERATING INCOME                             20,686        29,640        21,269

NON-OPERATING INCOME                            276

INTEREST EXPENSE                             (1,667)       (1,985)       (4,477)
                                          ---------     ---------     ---------
INCOME BEFORE INCOME TAXES                   19,295        27,655        16,792

FEDERAL AND STATE INCOME TAXES:
 Current                                        630         1,718         1,301
 Deferred                                     7,175         9,344         5,420
                                          ---------     ---------     ---------
                                              7,805        11,062         6,721
                                          ---------     ---------     ---------
NET INCOME                                $  11,490     $  16,593     $  10,071
                                          =========     =========     =========
EARNINGS PER COMMON SHARE:
 Basic                                    $    1.02     $    1.56     $    1.18
                                          =========     =========     =========
 Diluted                                  $    1.01     $    1.55     $    1.18
                                          =========     =========     =========
AVERAGE COMMON SHARES OUTSTANDING:
 Basic                                       11,291        10,669         8,522
                                          =========     =========     =========
 Diluted                                     11,326        10,715         8,550
                                          =========     =========     =========

See notes to consolidated financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
P.A.M. TRANSPORTATION SERVICES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
YEARS ENDED DECEMBER 31, 2003, 2002, AND 2001
(in thousands)
---------------------------------------------------------------------------------------------------------------------------------

                                                                 Additional   Accumulated       Other
                                               Common Stock       Paid-In    Comprehensive   Comprehensive    Retained
                                             Shares     Amount    Capital        Income          Loss         Earnings      Total
                                             -----------------    -------    -------------   -------------    --------      -----
<S>                                         <C>         <C>      <C>         <C>             <C>              <C>         <C>
BALANCE AT DECEMBER 31, 2000                  8,470     $   85   $ 19,638                                     $ 42,487    $ 62,210

  Components of comprehensive income:
    Net earnings                                                                $ 10,071                        10,071      10,071
    Other comprehensive loss-
       Unrealized loss on hedge,
         net of tax of $339                                                         (508)         (508)                       (508)
                                                                                --------
    Total comprehensive income                                                  $  9,563
                                                                                ========
  Exercise of stock options-shares
    issued                                      142          1        823                                                      824
                                             ------     ------   --------                     --------         -------    --------
BALANCE AT DECEMBER 31, 2001                  8,612         86     20,461                         (508)         52,558      72,597

  Components of comprehensive income:
    Net earnings                                                                $ 16,593                        16,593      16,593
    Other comprehensive loss -
      Unrealized loss on hedge,
         net of tax of $331                                                         (497)         (497)                       (497)
                                                                                --------
    Total comprehensive income                                                  $ 16,096
                                                                                ========
  Stock options-deferred stock
    compensation                                 39                   478                                                      478
  Issuance of common stock                    2,621         26     54,732                                                   54,758
  Exercise of stock options-
    shares issued including tax
    benefits                                     10          1        522                                                      523
                                             ------     ------   --------                     --------        --------    --------
BALANCE AT DECEMBER 31, 2002                 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 loss -
      Unrealized gain on hedge,
       net of tax of $779                                                            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 AT DECEMBER 31, 2003                 11,294     $  113   $ 75,957                     $    164        $ 80,641    $156,875
                                             ======     ======   ========                     ========        ========    ========

See notes to consolidated financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
P.A.M. TRANSPORTATION SERVICES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31, 2003, 2002
(in thousands)
 ---------------------------------------------------------------------------------------------
                                                            2003          2002          2001
<S>                                                     <C>           <C>           <C>
OPERATING ACTIVITIES:
 Net income                                             $  11,490     $  16,593     $  10,071
 Adjustments to reconcile net income to net
  cash provided by operating activities:
  Depreciation and amortization                            26,601        24,715        20,300
  Bad debt expense                                            110         1,028           897
  Non-competition agreement amortization                       42                         131
  Provision for deferred income taxes                       7,175         9,344         5,420
  Gain on sale of marketable equity securities                (47)
  Loss on sale or disposal of equipment                       368           127           886
  Changes in operating assets and liabilities-net
     of acquisition:
   Accounts receivable                                    (11,983)      (11,516)       (2,453)
   Prepaid expenses, inventories, and other assets         (3,170)         (349)         (763)
   Income taxes refundable                                   (975)         (357)          235
   Trade accounts payable                                   7,156         7,925        (3,927)
   Accrued expenses                                         1,168         1,357           648
                                                        ---------     ---------     ---------
       Net cash provided by operating activities           37,935        48,867        31,445
                                                        ---------     ---------     ---------

INVESTING ACTIVITIES:
 Purchases of property and equipment                      (74,238)      (42,067)      (47,515)
 Proceeds from sale or disposal of equipment               20,393        11,565        10,536
 Purchase of marketable equity securities                  (4,020)
 Proceeds from sales of marketable equity securities          152
 Lease payments received on direct financing leases            55           107           232
 Acquisition of business net of cash acquired             (10,752)
                                                        ---------     ---------     ---------
      Net cash used in investing activities               (68,410)      (30,395)      (36,747)

FINANCING ACTIVITIES:
 Borrowings under line of credit                          353,899       362,148       278,147
 Repayments under line of credit                         (351,030)     (371,224)     (258,197)
 Borrowings of long-term credit                             1,666         1,459         7,943
 Repayments of long-term debt                              (1,922)      (35,907)      (23,004)
 Proceeds from issuance of common stock                                  54,538
 Other                                                        160           384           824
                                                        ---------     ---------     ---------
      Net cash provided by financing activities             2,773        11,398         5,713
                                                        ---------     ---------     ---------

NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS      (27,702)       29,870           411

CASH AND CASH EQUIVALENTS - beginning of year              30,766           896           485
                                                        ---------     ---------     ---------
CASH AND CASH EQUIVALENTS - end of year                 $   3,064     $  30,766     $     896
                                                        =========     =========     =========

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION-
  Cash paid during the year for:
   Interest                                             $   1,591     $   2,100     $   4,500
                                                        =========     =========     =========
   Income taxes                                         $   1,119     $   1,500     $   1,100
                                                        =========     =========     =========

See notes to consolidated financial statements.
</TABLE>
<PAGE>

P.A.M. TRANSPORTATION SERVICES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2003, 2002, AND 2001
--------------------------------------------------------------------------------
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 motor carrier.

The  consolidated  financial  statements include the accounts of the Company and
its  wholly owned subsidiaries: P.A.M. Transport, Inc., P.A.M. Special Services,
Inc. (inactive as of December 31, 2003), P.A.M. Dedicated Services, Inc., P.A.M.
Logistics,  Inc.  (inactive  as  of  December  31, 2003), Choctaw Express, Inc.,
Choctaw  Brokerage,  Inc.  (inactive  as  of  December  31, 2003), Allen Freight
Services,  Inc.,  T.T.X., Inc., Transcend Logistics, Inc., Decker Transport Co.,
Inc.,  East  Coast  Transport  and  Logistics, LLC, and McNeill Express Inc. All
significant  intercompany  accounts  and  transactions  have  been  eliminated.

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  ALLOWANCE-An allowance is provided for accounts receivable
based  on  historical  collection  rates  applied  to accounts receivable in the
aggregate  considering the number of days the receivables have been outstanding.
Additionally,  management  considers  any accounts individually known to exhibit
characteristics indicating a collection problem.

MARKETABLE  EQUITY SECURITIES-Marketable equity securities are carried at market
value  with  unrelated  gains and losses recognized in accumulated comprehensive
income  in the statements of stockholders' equity. Realized gains and losses are
computed utilizing the specific identification method.

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.

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

GOODWILL-Goodwill was being amortized on a straight-line basis over 25 years for
years  prior  to  2002.  Effective  January  1,  2002,  the  Company adopted 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  completed  an  assessment  in  accordance  with  the
provisions  of  the  standard in second quarter 2002 using data as of January 1,
2002,  and determined there was no impairment as of the date of adoption of SFAS
No. 142. The annual assessment of impairment was completed on December 31, 2003.

SELF  INSURANCE  LIABILITY-A  liability is recognized for known health, workers'
compensation,  cargo damage and property 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.

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 with
estimated expenses recognized upon recognition of the related revenue.

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, 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.  Stock-based  compensation  expense  is not reflected in net income 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. During 2002, the Company adopted the disclosure provisions of
SFAS No. 148 as described below and in Note 10.
<PAGE>

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>

                                                    2003            2002           2001
                                                  (in thousands, except per share data)
<S>                                              <C>            <C>            <C>
Net income - as reported                         $ 11,490       $ 16,593       $ 10,071
Add: Stock-based employee
 compensation included in reported
 net income - net of related tax effects              (28)            76
Deduct total stock-based employee
 compensation expense determined under
 fair value based  method for all
 awards - net of related tax effects                 (322)          (445)           (48)
                                                ---------      ---------      ---------
Pro forma net income                             $ 11,140       $ 16,224       $ 10,023
                                                =========      =========      =========
Earnings  per  share:
 Basic - as reported                             $   1.02       $   1.56       $   1.18
 Basic - pro forma                               $   0.99       $   1.52       $   1.18

 Diluted - as reported                           $   1.01       $   1.55       $   1.18
 Diluted - pro forma                             $   0.98       $   1.51       $   1.18

</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:

                              2003                2002               2001

Dividend yield                 0%                  0%                 0%
Volatility range         37.34%-61.27%       35.00%-61.27%      31.63%-76.64%
Risk-free rate range      3.02%-4.38%         3.97%-6.01%        4.74%-7.02%
Expected life               5 years             5 years            5 years

BUSINESS  SEGMENT  AND CONCENTRATIONS OF CREDIT RISK-The Company operates in one
business  segment, motor carrier operations. The Company provides transportation
services  to  customers  throughout the United States and portions of Canada and
Mexico.  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  November  2002,  the Financial Accounting
Standards  Board  ("FASB")  issued Interpretation No. 45, Guarantor's Accounting
and  Disclosure  Requirements  for  Guarantees, Including Indirect Guarantees of
Indebtedness of Others (FIN 45"). For financial statements issued after December
15,  2002,  FIN  45  requires  a  guarantor  make  certain disclosures regarding
guarantees  or  indemnification  agreements.  Starting  January  1, 2003, FIN 45
requires  that a liability be recognized at the fair value of the guarantee. The
Company  has  adopted  the  disclosure  provisions and the liability recognition
provision of FIN 45 in the accompanying consolidated financial statements, which
did not have a material effect.
<PAGE>

In  April  2003,  the  FASB  issued  SFAS No. 149, Amendment of Statement 133 on
Derivative  Instruments  and  Hedging  Activities ("SFAS No. 149"). SFAS No. 149
amends  and  clarifies  accounting for derivative instruments, including certain
derivative  instruments  embedded in other contracts, and for hedging activities
under  SFAS  No.  133.  SFAS  No. 149 is effective for contracts entered into or
modified  after  June  30,  2003, and for hedging relationships designated after
June  30, 2003. The adoption of this statement did not have a material impact on
the Company's consolidated financial statements.

In  May  2003,  the  FASB  issued  SFAS No. 150, Accounting or Certain Financial
Instruments  with  Characteristics  of  Both  Liabilities  and Equity ("SFAS No.
150").  This  Statement  is  effective for financial instruments entered into or
modified  after  May 31, 2003 and otherwise is effective at the beginning of the
first  interim  period  beginning  after  June 15, 2003. This Statement provides
guidance  for  determining  the  classification  of  and  accounting for certain
financial  instruments  that  embody  obligations  of  the  issuing  entity. The
adoption  of  this  Statement  did  not  have a material impact on the Company's
consolidated financial statements.

In  December  2003,  the  FASB  issued  SFAS  No.  132  (revised December 2003),
Employers'  Disclosures  about  Pensions  and  Other  Postretirement Benefits-an
amendment  of  FASB  Statements  No.  87,  88  and  106  ("SFAS No. 132R"). This
Statement  revises  employers'  disclosures  about  pension  plans  and  other
postretirement  benefit plans. It does not change the measurement or recognition
of  those plans. This Statement retains the disclosure requirements contained in
FASB Statement No. 132, which it replaces. It requires additional disclosures to
those  in  the original Statement 132 about the assets, obligations, cash flows,
and net periodic benefit cost of defined benefit pension plans and other defined
benefit  postretirement  plans.  Disclosure  of  information for public entities
required  by  this Statement is effective for fiscal years ending after December
15,  2003.  Adoption  on  SFAS  No.  132R  did not have a material effect on the
Company's consolidated financial statements.

In December 2003, the FASB issued Interpretation No. 46 (revised December 2003),
Consolidation  of  Variable  Interest  Entities, an interpretation of Accounting
Research  Bulletin  No. 51, Consolidated Financial Statements ("FIN 46R"), which
replaced  FIN  46.  FIN  46  clarifies  the  application  of Accounting Research
Bulletin  No.  51  to certain entities in which equity investors do not have the
characteristics  of  a  controlling financial interest or do not have sufficient
equity  at  risk  for  the  entity  to finance its activities without additional
subordinated  financial support. The Company is required to adopt the provisions
of  FIN 46R by the beginning of the first annual period beginning after December
15, 2004. The Company does not believe that it has an interest in an entity that
is  subject  to  the  Interpretation,  therefore, the adoption of FIN 46R is not
expected  to  have  a  material  effect  on the Company's consolidated financial
statements.

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 amounts
reported  in  the  financial  statements  and accompanying notes. Actual results
could differ from those estimates.

RECLASSIFICATIONS-Certain  2002  and  2001  amounts  have  been  reclassified to
conform to the 2003 presentation.
<PAGE>

2.  ACCOUNTS RECEIVABLE

Accounts  receivable  is  presented net of an allowance for doubtful accounts as
shown  below.  An  analysis  of  changes  in  the  allowance for the years ended
December 31, 2003, 2002, and 2001 follows:
<TABLE>
<CAPTION>
                                       2003            2002            2001
                                                  (in thousands)
<S>                                  <C>             <C>             <C>
   Balance-beginning of year         $    716        $  1,515        $    656
   Provision for bad debts                110           1,028             898
   Charge-offs                                         (1,827)            (39)
   Recoveries                               8
                                     --------        --------        --------
   Balance, end of year              $    834        $    716        $  1,515
                                     ========        ========        ========
</TABLE>

The  2002  provision for bad debt includes an amount of $660,055 for a liability
relating  to  a preferential payment claim lawsuit filed by the creditors of one
of  the  Company's  subsidiaries  (see  Note  13). In addition, 2002 charge-offs
reflect  the  write-off  of  items included in the 2001 provision for bad debts.

3.  MARKETABLE EQUITY SECURITIES

Marketable  equity  securities,  which are classified as available for sale, had
gross  unrealized  gains of approximately $1,578,000 and gross unrealized losses
of  approximately $1,000 at December 31, 2003. The investments consist of equity
securities  with  a  combined  original  cost  of approximately $4,020,000 and a
combined  fair  market value of approximately $5,492,000. Such gains and losses,
net  of  income  tax  are presented in stockholders' equity as elements of other
comprehensive income for the year ended December 31, 2003.

4.  GOODWILL

A reconciliation of previously reported net income and earnings per share to the
amounts  adjusted  for  the  exclusion  of  goodwill amortization net of related
income tax effect for the years ended December 31, 2003, 2002, and 2001 follows:

<TABLE>
<CAPTION>
                                              2003           2002            2001
                                                        (in thousands)
<S>                                        <C>             <C>             <C>
   Reported net income                     $  11,490       $  16,593       $  10,071
   Goodwill amortization, net of tax                                             243
                                           ---------       ---------       ---------
   Adjusted net income                     $  11,490       $  16,593       $  10,314
                                           =========       =========       =========
   Adjusted net income per common share:
     Basic                                 $    1.02       $    1.56       $    1.21
                                           =========       =========       =========
     Diluted                               $    1.01       $    1.55       $    1.21
                                           =========       =========       =========
</TABLE>
<PAGE>

Effective  January  1, 2002, the Company adopted the provisions of SFAS No. 142,
Goodwill  and  Other  Intangible  Assets. At this date, amortization of goodwill
ceased  and  an assessment of impairment was made. Such assessment resulted in a
conclusion  that  no  impairment  was indicated. Goodwill is net of amortization
through December 31, 2001, of $1,219,000.

5.  ACCRUED EXPENSES

Accrued expenses at December 31 is summarized as follows:

<TABLE>
<CAPTION>
                                               2003            2002
                                                  (in thousands)
<S>                                          <C>            <C>
   Payroll                                   $  2,805       $  1,638
   Accrued vacation                             1,629          1,414
   Taxes-other than income                      1,798          1,535
   Interest                                       149             73
   Driver escrows                                 835            893
   Self-insurance claims reserves               3,951          4,048
                                             --------       --------
                                             $ 11,167       $  9,601
                                             ========       ========
</TABLE>
<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. The Company elected in 2002 to self
insure  itself for physical damage to trailers. During 2001, the Company changed
its  workers'  compensation  coverage  in  Arkansas,  Oklahoma,  Mississippi and
Florida  from a fully insured first dollar policy to a fully insured policy with
a  $500,000  per occurrence deductible. The company continues to be self insured
for  workers'  compensation  claims  in  the  State of Ohio with a $500,000 self
insured  retention with excess insurance. 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  $1,550,000  are  held  by insurers as security for workers'
compensation  claims  and  letters  of  credit  aggregating $150,000 are held by
insurers for auto liability claims. The Company self insures for employee health
claims  with a stop loss of $150,000 per covered employee per year and estimates
its liability for claims incurred but not reported.

<PAGE>

7.  LONG-TERM DEBT

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

<TABLE>
<CAPTION>
                                                         2003            2002
                                                            (in thousands)
<S>                                                   <C>             <C>
  Equipment financings (1)                            $      94       $   1,066
  Line of credit with a bank-due May 31, 2005
    and collateralized by accounts receivable (2)         2,868
  Line of credit with a bank-due November 30, 2005
    and collateralized by revenue equipment (3)          20,000          20,000
  Note payable (4)                                        4,486
  Other (5)                                               1,331             126
                                                      ---------       ---------
                                                         28,779          21,192
  Less current maturities                                (2,039)        ( 1,017)
                                                      ---------       ---------
  Long-term debt-net of current maturities            $  26,740       $  20,175
                                                      =========       =========
</TABLE>

(1)  Equipment  financings  consist  of  installment  obligations  for  revenue
     equipment  and service vehicles, payable in various monthly installments of
     $47,748 through February 2004, at a weighted average interest rate of 7.16%
     and collateralized by equipment with a net book value of approximately $1.2
     million  at  December  31,  2003.

(2)  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% (2.57% at December 31, 2003). The Company was in compliance with
     all  provisions  of  the  agreement  at  December  31,  2003.

(3)  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% (2.32% at December 31, 2003). The Company was in
     compliance  with  all  provisions  of  the  agreement at December 31, 2003.

(4)  6.0%  note  to  the  former owner of an acquired entity, payable in monthly
     installments  of  $72,672  through  March  2010.

(5)  Various notes at December 31, 2003, payable in monthly installments through
     January  2005.

The  Company  has  provided  letters  of  credit  to  third  parties  totaling
approximately  $8,300,000  at  December  31, 2003. 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.
<PAGE>

Scheduled  annual maturities on long-term debt outstanding at December 31, 2003,
are:

                                      (in thousands)

     2004                              $   2,039
     2005                                 23,523
     2006                                    695
     2007                                    738
     2008                                  1,784
                                       ---------
                                       $  28,779
                                       =========

8.  SIGNIFICANT CUSTOMERS AND INDUSTRY CONCENTRATION

In  2003,  2002,  and 2001, one customer, who is in the automobile manufacturing
industry, accounted for 46%, 56%, and 40% 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 2003, 2002,
and  2001,  67%,  68%,  and  55%, respectively, were derived from transportation
services  provided to the automobile manufacturing industry. Accounts receivable
from  the  largest  customer totaled $28,100,000 and $25,000,000 at December 31,
2003 and 2002, respectively.

9.  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.
<PAGE>

Significant  components  of the Company's deferred tax liabilities and assets at
December 31 are as follows:

<TABLE>
<CAPTION>
                                               2003                              2002
                                      ------------------------         ------------------------
                                                            (in thousands)
                                       CURRENT       LONG-TERM          CURRENT       LONG-TERM
<S>                                   <C>           <C>                <C>           <C>
Deferred tax liabilities:
  Property and equipment              $      -      $   48,671         $      -      $   40,608
  Unrealized gains on securities           631
  Prepaid expenses                       3,208              19            2,307
                                      --------      ----------         --------      ----------
    Total deferred tax liabilities       3,839          48,690            2,307          40,608

Deferred tax assets:
  Alternative minimum tax credit                         1,783                            2,016
  Allowance for doubtful accounts          298                              267
  Compensated absences                     618                              537
  Self-insurance allowances              1,082                            1,402
  Hedging derivative                       285             521                              670
  Accrued compensation                     156                              228
  Non-competition agreement                                474                              450
  Net operating loss carryovers                          2,156
  Other                                     70              48                              122
                                      --------      ----------         --------      ----------
Total deferred tax assets                2,509           4,982            2,434           3,258
                                      --------      ----------         --------      ----------
Net deferred tax asset (liability)    $ (1,330)     $  (43,708)        $    127      $  (37,350)
                                      ========      ==========         ========      ==========
</TABLE>
The  reconciliation  between  the  effective  income  tax rate and the statutory
Federal  income  tax  rate  is  for  year ended December 31, 2003, 2002 and 2001
presented in the following table:

<TABLE>
<CAPTION>
                                      2003                       2002                      2001
                               -------------------       -------------------       -------------------
                                                           (in thousands)
                                 AMOUNT    PERCENT         AMOUNT    PERCENT         AMOUNT    PERCENT
<S>                            <C>         <C>           <C>         <C>           <C>         <C>
Income tax at the statutory
  Federal rate of 34%          $  6,560     34.0%        $  9,403     34.0%        $  5,709     34.0%
Nondeductible expenses              548      2.8              401      1.5              338      2.0
State income taxes, net of
  federal benefit                   697      3.6            1,552      5.6              804      4.8
Other                                                        (294)    (1.1)            (130)    (0.8)
                               --------     ----         --------     ----         --------     ----
Total income taxes             $  7,805     40.4%        $ 11,062     40.0%        $  6,721     40.0%
                               ========     ====         ========     ====         ========     ====
</TABLE>
<PAGE>

The current income tax provision consists of the following:
<TABLE>
<CAPTION>
                                  2003           2002           2001
                                            (in thousands)
<S>                             <C>            <C>            <C>
  Federal                       $    282       $    975       $    951
  State                              348            743            350
                                --------       --------       --------
                                $    630       $  1,718       $  1,301
                                ========       ========       ========
</TABLE>

The Company has alternative minimum tax credits of approximately $1.8 million at
December  31,  2003,  which  have  no  expiration date under the current federal
income tax laws. The Company also has a net operating loss carryover for federal
income purposes of approximately $6,000,000 which expires in 2024.

10.  SHAREHOLDERS' EQUITY
The  Company  maintains  an incentive stock option plan and a nonqualified stock
option  plan  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,  2003.  At  December  31,  2003, approximately 292,000 shares were
available for granting future options.

Outstanding  incentive  stock  options  at  December 31, 2003, 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, 2003, must be exercised
within  five  to  nine  years. Certain nonqualified options may not be exercised
within one year of the date of grant.

In  August 2002, PAM 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.
<PAGE>

Transactions  in  stock  options  under  these  plans are summarized as follows:
<TABLE>
<CAPTION>
                                                SHARES              WEIGHTED
                                                UNDER               AVERAGE
                                                OPTION           EXERCISE PRICE
<S>                                           <C>                <C>
Outstanding-December 31, 2000                   240,300             $  7.34
  Granted                                         8,000                8.25
  Exercised                                    (142,300)               5.79
  Canceled                                       (1,000)               7.38
                                              ---------
Outstanding-December 31, 2001                   105,000             $  9.50
  Granted                                       320,500               23.03
  Exercised                                     (39,000)               9.84
                                              ---------
Outstanding-December 31, 2002                   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
                                              =========
Options exercisable-December 31, 2003           141,000
                                              =========
</TABLE>

The following is a summary of stock options outstanding as of December 31, 2003:

<TABLE>
<CAPTION>
                                                 WEIGHTED
                            OPTION               AVERAGE
          OPTIONS          EXERCISE             REMAINING         OPTIONS
        OUTSTANDING         PRICE                  YEARS        EXERCISABLE
<S>     <C>                <C>                  <C>             <C>
          30,000           $   9.25                 1.5           30,000
           2,000           $   8.63                 1.2            2,000
           6,000           $  10.25                 1.6            6,000
           8,000           $   9.13                 2.2            8,000
           8,000           $   8.25                 3.2            8,000
           8,000           $  20.79                 4.3            8,000
         260,000           $  23.22                 8.8           60,000
          12,500           $  19.88                 4.8            5,000
          14,000           $  22.68                 5.2           14,000
        --------                                                 --------
         348,500                                                  141,000
        ========                                                 ========
</TABLE>
<PAGE>

11.  EARNINGS PER SHARE

The  Company  applies  Statement  of  Financial  Accounting  Standards  No. 128,
Earnings  Per  Share,  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:

<TABLE>
<CAPTION>
                                              FOR THE YEAR ENDED DECEMBER 31, 2003
                                              (in thousands, except per share date)
                                              ------------------------------------
                                                 NET                     PER SHARE
                                               INCOME        SHARES       AMOUNT
<S>                                           <C>           <C>          <C>
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
                                              ========       ======        =======
</TABLE>

<TABLE>
<CAPTION>
                                              FOR THE YEAR ENDED DECEMBER 31, 2002
                                              (in thousands, except per share date)
                                              ------------------------------------
                                                 NET                     PER SHARE
                                               INCOME        SHARES       AMOUNT
<S>                                           <C>           <C>          <C>
Basic earnings per share data -               $ 16,593       10,669        $  1.56
Effect of dilutive securities-stock options                      46
                                              --------       ------        -------
Diluted earnings per share data               $ 16,593       10,715        $  1.55
                                              ========       ======        =======
</TABLE>

<TABLE>
<CAPTION>
                                              FOR THE YEAR ENDED DECEMBER 31, 2001
                                              (in thousands, except per share date)
                                              ------------------------------------
                                                 NET                     PER SHARE
                                               INCOME        SHARES       AMOUNT
<S>                                           <C>           <C>          <C>
Basic earnings per share data -               $ 10,071        8,522        $  1.18
Effect of dilutive securities-stock options                      28
                                              --------       ------        -------
Diluted earnings per share data               $ 10,071        8,550        $  1.18
                                              ========       ======        =======
</TABLE>

12.  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.
Total  employer  matching  contributions  to  the  plan  totaled  approximately
$270,000, $250,000 and $225,000 in 2003, 2002 and 2001, respectively.
<PAGE>

13.  COMMITMENTS AND CONTINGENCIES

On October 10, 2002, a suit was filed against one of the Company's subsidiaries.
The  suit,  which  has  been filed in the United States Bankruptcy Court for the
District  of  Delaware,  alleges preferential transfers of $660,055 were made to
the  Company's  subsidiary, Allen Freight Services Co., within the 90 day period
preceding  the  bankruptcy petition date of the plaintiff. The suit is currently
in pretrial proceedings. The settlement of this matter is not expected to have a
material  effect  on  the  financial  position  or  results of operations of the
Company.

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 (see Note 17), 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:

       2004                                                 $   581,999
       2005                                                     324,144
       2006                                                     163,000
       2007                                                     168,000
       2008 and thereafter                                      336,000
                                                            -----------
       Total                                                $ 1,573,143
                                                            ===========

Total rental expense, net of amounts reimbursed for the years ended December 31,
2003,  2002  and  2001  was  approximately  $964,000,  $809,000,  and  $972,000,
respectively.

14.  FAIR VALUE OF FINANCIAL INSTRUMENTS

SFAS  No.  107,  Disclosure  About Fair Value of Financial Instruments, 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, receivables, trade accounts payable, and accrued
expenses,  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.
<PAGE>

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 arrangements. The carrying value
of  this  other  long-term  debt at December 31, 2003 and 2002, respectively, is
$5,911,000  and  $1,192,000. The fair value of long-term debt is estimated to be
$6,436,000 and $1,217,000 at December 31, 2003 and 2002.

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 $2,054,000 and $2,425,000 at
December 31, 2003 and 2002, respectively.

15.  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.  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  loss in
shareholders'  equity  and will be reclassified into current earnings by June 2,
2006,  the  latest termination date for all current swap agreements. At December
31,  2003,  the  net  after  tax  deferred  hedging  loss  in  accumulated other
comprehensive  loss was approximately $782,000. Ineffectiveness related to these
hedges was not significant.
<PAGE>

In  August  2000  and  July  2001, the Company entered into agreements to obtain
price  protection  and  reduce  a  portion  of  our  exposure  to  fuel  price
fluctuations.  Under  these  agreements,  we  were obligated to purchase minimum
amounts of diesel fuel per month, with a price protection component, for the six
month  periods  ended  March 31, 2001 and February 28, 2002. The agreements also
provide that if during the 48 months commencing April 2001, the price of heating
oil  on  the  New  York  Mercantile  Exchange  ("NY MX HO") falls below $.58 per
gallon,  the  Company  is  obligated  to  pay, for a maximum of twelve different
months  selected  by  the  contract  holder  during  such  48-month  period, the
difference  between  $.58  per  gallon and NY MX HO average price, multiplied by
900,000  gallons.  Accordingly,  in any month in which the holder exercises such
right,  the Company would be obligated to pay the holder $9,000 for each cent by
which  $.58  exceeds the average NY MX HO price for that month. For example, the
NY  MX  HO average price during February 2002 was approximately $.54, and if the
holder  were  to  exercise  its  payment right, we would be obligated to pay the
holder  approximately  $36,000.  In  addition,  if  during  any  month  in  the
twelve-month  period commencing January 2005, the average NY MX HO is below $.58
per  gallon,  the  Company  will  be  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. The agreements are stated at their fair value
of  $750,000  which  is  included  in  accrued  liabilities  in the accompanying
consolidated balance sheets.

16.  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 $195,595, $354,241 and $58,030 in operating
revenue  and  $1,194,283, $1,103,062 and $905,570 in operating expenses in 2003,
2002,  and  2001,  respectively. At December 31, 2003 $1,015,852 was owed to the
Company  from these affiliates. Of these accounts receivable $195,595 represents
revenue  resulting  from  maintenance  performed  in  the  Company's maintenance
facilities,  $409,836 is due for an insurance claim, $244,897 remains receivable
from  2002  and  the remaining balance represents charges paid by the Company on
behalf  of  their  affiliate  and  charged  back  at  the  amount paid. Accounts
receivable  from  affiliates  at December 31 2002 was $479,342.  At December 31,
2003  and  2002  amounts  payable  to  these  affiliates  totaled $1,401,759 and
$494,342 respectively.
<PAGE>

17.  ACQUISTIONS

On January 31, 2003, P.A.M. Transportation Services, Inc. acquired substantially
all  of  the  assets  of  East  Coast  Transport  and  Logistics, Inc. a freight
brokerage operation based in New Jersey. The results of East Coast Transport and
Logistics,  Inc.  have  been  included  in the consolidated financial statements
since  that  date.  In  accordance with SFAS No. 141, Business Combinations, the
acquisition was accounted for under the purchase method of accounting.

The  aggregate purchase price of approximately $6.9 million was paid in the form
of  a  7 year installment note in the amount of approximately $5.0 million at an
interest  rate  of  6%  and  cash  payments  of  approximately  $1.9  million. A
non-compete agreement in the amount of $1.0 million and covering a 5 year period
was  also  entered  into.  Approximately $6.9 million of additional goodwill was
recognized as a result of the acquisition.

On  April  3,  2003, P.A.M. Transportation Services, Inc. acquired substantially
all  of  the  assets  of  McNeill  Express,  Inc. a truckload motor carrier. The
results  of  McNeill  Express,  Inc.  have  been  included  in  the consolidated
financial  statements since that date. In accordance with SFAS No. 141, Business
Combinations,  the  acquisition  was  accounted for under the purchase method of
accounting.

The aggregate purchase price of approximately $8.87 million was paid in the form
of  cash  in  the  amount  of  approximately  $8.8 million and the assumption of
liabilities  aggregating  approximately  $70,000. A non-compete agreement in the
amount  of  $300,000  and  covering  a  2  year  period  was  also entered into.
Approximately  $370,000 of additional goodwill was recognized as a result of the
acquisition.

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:

<TABLE>
<CAPTION>
                                      2003        2002          2001
                                  (in thousands, except per share date)
<S>                                <C>         <C>           <C>
Operating income                   $ 20,869    $ 32,160      $ 22,705
Income before income taxes           19,444      29,790        17,843
Net income                           11,578      18,521        11,056

Basic earnings per share           $   1.03    $   1.74      $   1.30
Diluted earnings per share             1.02        1.73          1.29

</TABLE>
<PAGE>

18.  QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)
The  tables  below  present  quarterly  financial information for 2003 and 2002:

<TABLE>
<CAPTION>
                                                                2003
                                                         THREE MONTHS ENDED
                                       MARCH 31        JUNE 30    SEPTEMBER 30   DECEMBER 31
                                       -----------------------------------------------------
                                                (in thousands, except per share data)
<S>                                    <C>            <C>         <C>            <C>
  Operating revenues                   $ 70,139       $ 74,956       $ 74,216       $ 74,236
  Operating expenses                     65,185         67,896         68,899         70,881
                                       --------       --------       --------       --------

  Operating income                        4,954          7,060          5,317          3,355
  Non-operating income                       10             59             70            137
  Interest expense                          268            485            445            469
  Income taxes                            1,878          2,587          1,977          1,363
                                       --------       --------       --------       --------
  Net income                           $  2,818       $  4,047       $  2,965       $  1,660
                                       ========       ========       ========       ========
  Net income per common share:
    Basic                              $   0.25       $   0.36       $   0.26       $   0.15
                                       ========       ========       ========       ========
    Diluted                            $   0.25       $   0.36       $   0.26       $   0.14
                                       ========       ========       ========       ========
  Average common shares outstanding:
    Basic                                11,287         11,290         11,293         11,291
                                       ========       ========       ========       ========
    Diluted                              11,338         11,332         11,327         11,326
                                       ========       ========       ========       ========
</TABLE>
<TABLE>
<CAPTION>
                                                                2002
                                                         THREE MONTHS ENDED
                                       MARCH 31        JUNE 30    SEPTEMBER 30   DECEMBER 31
                                       -----------------------------------------------------
                                                (in thousands, except per share data)
<S>                                    <C>            <C>         <C>            <C>
  Operating revenues                   $ 63,313       $ 70,841       $ 65,034       $ 64,824
  Operating expenses                     56,331         62,082         58,061         57,898
                                       --------       --------       --------       --------

  Operating income                        6,982          8,759          6,973          6,926
  Interest expense                          972            369            377            267
  Income taxes                            2,404          3,356          2,638          2,664
                                       --------       --------       --------       --------
  Net income                           $  3,606       $  5,034       $  3,958       $  3,995
                                       ========       ========       ========       ========
  Net income per common share:
    Basic                              $   0.40       $   0.45       $   0.35       $   0.36
                                       ========       ========       ========       ========
    Diluted                            $   0.40       $   0.45       $   0.35       $   0.35
                                       ========       ========       ========       ========
  Average common shares outstanding:
    Basic                                 8,928         11,183         11,263         11,268
                                       ========       ========       ========       ========
    Diluted                               8,974         11,238         11,307         11,308
                                       ========       ========       ========       ========
</TABLE>
<PAGE>

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

On July 9, 2002, the Company dismissed its independent auditors, Arthur Andersen
LLP,  and  on  the  same  date  engaged Deloitte & Touche LLP as its independent
auditors  for  the  fiscal year ending December 31, 2002.  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 July
12, 2002, which information is incorporated herein by reference.

ITEM 9A.  CONTROLS AND PROCEDURES.

We  maintain a set of disclosure controls and procedures designed to ensure that
information  required to be disclosed by P.A.M. Transportation Services, Inc. in
reports  that  it  files  under the Securities Exchange Act of 1934 is recorded,
processed,  summarized  and  reported  within  the  time  periods  specified  in
Securities  and  Exchange Commission ("SEC") rules and forms.  An evaluation was
carried  out  as  of  December  31,  2003  under  the  supervision  and with the
participation  of  our management, including the Chief Executive Officer ("CEO")
and  Chief  Financial  Officer  ("CFO"),  of the effectiveness of our disclosure
controls  and  procedures.  Based  on  that  evaluation,  the  CEO  and CFO have
concluded  that  our  disclosure  controls  and  procedures were effective as of
December 31, 2003.

CEO and CFO Certificates

Attached  as  Exhibits  31.1  and  31.2  to  this  report  on  Form 10-K are two
certifications,  one  each  by  the  CEO  and  the  CFO, respectively.  They are
required  in  accordance  with  Rule  13a-14 of the Exchange Act.  This Item 9A,
Controls  and  Procedures,  includes  the  information  concerning  the controls
evaluation  referred  to in the certifications and should be read in conjunction
with the certifications.

Disclosure Controls

"Disclosure  Controls"  are  procedures  that  are  designed  to  ensure  that
information  required  to be disclosed in our reports filed under the Securities
Exchange  Act of 1934, such as this report on Form 10-K, is recorded, processed,
summarized  and  reported within the time periods specified in the SEC rules and
forms.  Disclosure  Controls  are  also  designed  to  ensure  that  information
required  to  be  disclosed  is  accumulated and communicated to our management,
including  our  CEO  and CFO, as appropriate to allow timely decisions regarding
disclosure.

Internal Controls

"Internal  Controls"  are  procedures  that  are  designed to provide reasonable
assurance  that  (1)  our  transactions  are  properly  authorized, recorded and
reported  and  (2)  our  assets are safeguarded against unauthorized or improper
use,  so  that  our  financial  statements  may  be  prepared in accordance with
generally accepted accounting principles.
<PAGE>

Limitations on the Effectiveness of Controls

Our  management,  including  the  CEO and CFO, do not expect that our Disclosure
Controls and/or our Internal Controls will prevent or detect all error or fraud.
A system of controls is able to provide only reasonable, not complete, assurance
that the control objectives are being met, no matter how extensive those control
systems  may  be.  Also, control systems must be established within the opposing
forces  of  risk  and resources, (i.e., the benefits of a control system must be
considered  relative  to its costs).  Because of these inherent limitations that
exist  in  all  control  systems,  no  evaluation  of Disclosure Controls and/or
Internal  Controls  can  provide absolute assurance that all errors or fraud, if
any,  have  been  detected.  The inherent limitations in control systems include
various  human  and  system  factors  that  may  include  errors  in judgment or
interpretation  regarding  events  or  circumstances  or  inadvertent  error.
Additionally,  controls  can  be circumvented by the acts of a single person, by
collusion  on  the  part  of two or more people or by management override of the
control.  Over  time,  controls  can  also  become  ineffective  as  conditions,
circumstances,  policies,  technologies,  level of compliance and people change.
Because  of such inherent limitations, in any cost-effective control system over
financial information, misstatements may occur due to error or fraud and may not
be detected.

Scope of Evaluation of Disclosure Controls

The  evaluation of our Disclosure Controls performed by our CEO and CFO included
obtaining  an  understanding  of  the  design and objective of the controls, the
implementation  of those controls and the results of the controls on this report
on  Form  10-K.  We  have  established  a  Disclosure Committee whose duty is to
perform  procedures  to evaluate the Disclosure Controls and provide the CEO and
CFO  with  the results of their evaluation as part of the information considered
by the CEO and CFO in their evaluation of Disclosure Controls.  In the course of
the  evaluation  of  Disclosure  Controls,  we reviewed the controls that are in
place  to record, process, summarize and report, on a timely basis, matters that
require  disclosure  in  our  reports filed under the Securities Exchange Act of
1934.  We  also considered the adequacy of the items disclosed in this report on
Form 10-K.

Conclusions

Based  upon  the  evaluation of Disclosure Controls described above, our CEO and
CFO  have  concluded  that,  subject  to  the  limitations  described above, our
Disclosure  Controls  are  effective  so  that  material information relating to
P.A.M.  Transportation  Services, Inc. and its consolidated subsidiaries is made
known  to  management,  including  the CEO and CFO, so that required disclosures
have been included in this report on Form 10-K.
<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 20, 2004.  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  section  entitled "Election of Directors" 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 Frank L. Conner, Thomas H. Cooke,
Daniel  C.  Sullivan,  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 10 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.
<PAGE>

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.

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, 2003, 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       348,500                     $20.85                     291,500

  Equity Compensation Plans
  not approved by Security
  Holders                              -0-                         -0-                         -0-
</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.
<PAGE>

                                     PART IV

ITEM 15.  EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM 8-K.

(a) Financial Statements and Schedules.

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

          Report of Independent Public Accountants

          Consolidated  Balance  Sheets - December 31, 2003 and 2002

          Consolidated Statements of Income - Years ended
          December 31, 2003, 2002 and 2001

          Consolidated Statements of Shareholders' Equity - Years ended
          December 31, 2003, 2002 and 2001

          Consolidated Statements of Cash Flows - Years ended
          December 31, 2003, 2002 and 2001

          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  Exhibit  Index filed herewith and appearing immediately following
          the signatures in this Report is incorporated by reference in response
          to this Item.

(b) Reports on Form 8-K.

    A Current Report on Form 8-K was filed on October 28, 2003 regarding a
    press  release  issued  to announce our third quarter 2003 results. No other
    reports  on Form 8-K were filed during the fourth quarter ended December 31,
    2003.
<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 12, 2004         By:  /s/ Robert W. Weaver
                                    --------------------------
                                    ROBERT W. WEAVER
                                    President and Chief Executive Officer
                                    (principal executive officer)

Dated:  March 12, 2004         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 12, 2004         By:  /s/ Robert W. Weaver
                                    --------------------------
                                    ROBERT W. WEAVER, President and Chief
                                    Executive Officer, Director

Dated:  March 12, 2004         By:  /s/ Matthew T. Moroun
                                    --------------------------
                                    MATTHEW T. MOROUN, Director

Dated:  March 12, 2004         By:  /s/ Daniel C. Sullivan
                                    --------------------------
                                    DANIEL C. SULLIVAN, Director

Dated:  March 12, 2004         By:  /s/ Charles F. Wilkins
                                    --------------------------
                                    CHARLES F. WILKINS, Director

Dated:  March 12, 2004         By:  /s/ Frederick P. Calderone
                                    --------------------------
                                    FREDERICK P. CALDERONE, Director

Dated:  March 12, 2004         By:  /s/ Manuel J. Moroun
                                    --------------------------
                                    MANUEL J. MOROUN, Director

Dated:  March 12, 2004         By:  /s/ Thomas H. Cooke
                                    --------------------------
                                    THOMAS H. COOKE, Director

Dated:  March 12, 2004         By:  /s/ Frank L. Conner
                                    --------------------------
                                    FRANK L. CONNER, Director
<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 Annual Report on Form 10-K for the year ended December
31,  1987 ("1987 10-K"); (iii) the Annual Report on Form 10-K for the year ended
December  31, 1992 ("1992 10-K"); (iv) the Quarterly Report on Form 10-Q for the
quarter  ended  June 30, 1994 ("6/30/94 10-Q"); (v) the Quarterly Report on Form
10-Q  for  the  quarter ended June 30, 1995 ("6/30/95 10-Q"); (vi) the Quarterly
Report  on  Form  10-Q  for the quarter ended September 30, 1996 (9/30/96 10-Q);
(vii) the Annual Report on Form 10-K for the year ended December 31, 1996 ("1996
10-K");  or  (viii) the Quarterly Report on Form 10-Q for the quarter ended June
30,  1998  ("6/30/98  10-Q");  (ix) the Form S-8 Registration Statement filed on
June  11,  1999;  (x) the Annual Report on Form 10-K for the year ended December
31,  2001  ("2001  10-K");  or  (xi)  the  Quarterly Report on Form 10-Q for the
quarter  ended  March  31,  2002  ("3/31/02  10-Q").

<TABLE>
<CAPTION>
EXHIBIT#                                          DESCRIPTION  OF  EXHIBIT
--------    -----------------------------------------------------------------------------------------------
<S>         <C>
*3.1        -  Amended and Restated Certificate of Incorporation of the Registrant (Exh. 3.1, 1986 S-1)

*3.1.1      -  Amendment to Certificate of Incorporation dated June 24, 1987 (Exh. 3.1.1, 1987 10-K)

*3.1.2      -  Amended and Restated Certificate of Incorporation of the Registrant (Exh. 3.1, 3/31/02 10-Q)

*3.2.4      -  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)
<PAGE>
*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)

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

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

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

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

*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)

 21.1       -  Subsidiaries of the Registrant

 23.1       -  Consent of Deloitte & Touche LLP

 23.2       -  Notice regarding Consent of Arthur Andersen, 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>