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, 2002

                                      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.)

                                Highway 412 West
                                  P.O. Box 188
                            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.   [X]

Indicate  by  check  mark  whether  the  registrant  is an accelerated filer (as
defined in Rule 12b-2 of the Exchange Act).

                           Yes [X]          No [_]

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 $158,673,196. 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, 2003:  11,288,207 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 2003 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.


                                     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.

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. ("P.A.M.
Transport"),  P.A.M.  Special  Services,  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. and
Decker  Transport  Co.,  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. and East Coast Transport and Logistics, LLC.

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  and  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 2002, approximately 83% of our operating
revenues  were  generated through dedicated equipment and we maintained an empty
mile  factor  of  4.0%.  Dedicated  fleets  and high density lanes enable us to:

-     maintain consistent equipment capacity;

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

-     attract and retain drivers; and

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

Providing  Superior  and  Flexible Customer Service.  Our wide range of services
includes dedicated fleet services, 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, which is
required by many of our larger customers to ensure that their truckload carriers
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.
Approximately  83%  of  our  deliveries  to customers during 2002 were made on a
just-in-time basis.

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 business 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:

-     Freight rates have remained relatively stable despite the slowing economy,
      and  the  low  level  of  truck  orders  may  keep equipment capacity at a
      favorable position.

-     Rising  unemployment  has  benefited  the  trucking  industry by making it
      easier to recruit new drivers.

-     Price increases by insurance companies, rising fuel costs,  and erosion of
      equipment  values  in the used truck market offset these positive industry
      trends.

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

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 55%, 59% and 74% of
our  total  revenues  in  2000,  2001  and  2002,  respectively.  General Motors
Corporation  accounted  for  approximately  33%,  40% and 56% of our revenues in
2000, 2001 and 2002, respectively.

We also provide transportation services to other manufacturers who are suppliers
for  automobile  manufacturers.  Approximately  50%, 55% and 68% of our revenues
were  derived  from  transportation services provided to the automobile industry
during  2000,  2001  and  2002,  respectively.  This  portion  of  our business,
however,  is  spread  over  16  assembly  plants and 50 supplier/vendors located
throughout  North  America, which we believe reduces the risk of a material loss
of business.

REVENUE EQUIPMENT

At  December 31, 2002, we operated a fleet of 1,781 tractors and 3,973 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.  At December 31, 2002,
1,646 of our 1,781 tractors had guaranteed residual buy-back or trade-in values.
The  following  table  provides  information  regarding  our tractor and trailer
turnover and the age of our fleet over the past three years:

                                                        2000      2001      2002
                                                        ----      ----      ----
Tractors
--------
     Additions                                           304       505       430
     Deletions                                           359       258       309
     End of year total                                 1,413     1,660     1,781
     Average age at end of year (in years)               1.7       1.8       2.1
Trailers
--------
     Additions                                            51       228       127
     Deletions                                           138        55        86
     End of year total                                 3,759     3,932     3,973
     Average age at end of year (in years)               4.7       5.3       5.7


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, 2002 the Company's tractor
fleet included 130 owner-operator tractors.

TECHNOLOGY

We  have installed  Qualcomm  Omnitracs(TM)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, saving
telephone usage cost and increasing 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(TM) 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.

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 primary maintenance
facility  in  Tontitown,  Arkansas, we have additional maintenance facilities in
West  Memphis,  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,  for up to four years or 500,000 miles.  Trailers are warranted by
the  manufacturer  and  major  component  manufacturers  for  up  to five years.

DRIVERS

At  December  31, 2002, we utilized 2,090 company drivers in our operations.  We
also  had  130  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, 2002, we employed 62 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.

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  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, 2002, we employed 2,538 persons, of whom 2,090 were drivers, 143
were maintenance personnel, 148 were employed in operations, 29 were employed in
marketing,  62  were  employed  in safety and personnel, and 66 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.

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     53      President and Chief Executive          20
                                  Officer

     W. Clif Lawson       49      Executive Vice President and           18
                                  Chief Operating Officer

     Larry J. Goddard     44      Vice President - Finance,              15
                                  Chief Financial Officer,
                                  Secretary and Treasurer

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 extending through 2004.

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.

Our  business  is  dependent  upon  a number of factors that may have a material
adverse  effect  on  the results of our operations, many of which are beyond our
control.  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.

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
2002,  our top five customers, based on revenue, accounted for approximately 74%
of  our revenue, and our largest customer, General Motors Corporation, accounted
for  approximately  56% 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 68% of our revenues
for  2002  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.

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.

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  79,193 square feet of office space and maintenance and storage
facilities.  We  are  currently  in  the  process  of  expanding  this facility.

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; 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 locations
across  the  country.  We  lease certain of these facilities on a month-to-month
basis from an affiliate of our largest shareholder.

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


ITEM 3.  LEGAL PROCEEDINGS.
---------------------------

On  October 10, 2002, a suit was filed against one of the Company's subsidiaries
and  is entitled "The Official Committee of Unsecured Creditors of Bill's Dollar
Stores, Inc.  v.  Allen Freight Services Co."  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 defendant, Allen Freight
Services Co., within the 90 day period preceding the bankruptcy petition date of
Bill's  Dollar  Stores,  Inc.  The  suit  is  currently in pretrial proceedings.

In  addition to the specific legal action mentioned above, 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, 2002.

                                     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, 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

Calendar Year Ended December 31, 2001
                                           HIGH       LOW
                                           -----      ----
                  First Quarter            $9.84     $7.00
                  Second Quarter           10.00      5.88
                  Third Quarter            12.00      9.10
                  Fourth Quarter           12.85      8.60


As  of  February 28, 2003, there were approximately 220 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.  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.


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,
                                               2002         2001        2000         1999         1998
                                            ---------    ---------   ---------    ---------    ---------
                                                      (in thousands, except per share amounts)
<S>                                         <C>          <C>         <C>          <C>          <C>
Statement of operations data:
Operating revenues                          $ 264,012    $ 225,794   $ 205,245    $ 207,381    $ 143,164
                                            ---------    ---------   ---------    ---------    ---------
Operating expenses:
   Salaries, wages and benefits               115,432      100,359      90,680       90,248       65,169
   Operating supplies                          51,161       43,289      37,728       35,246       26,511
   Rent and purchased transportation            9,780       10,526      12,542       13,309        1,082
   Depreciation and amortization               24,715       20,300      18,806       18,392       14,003
   Operating taxes and licenses                13,467       11,936      11,140       11,334        8,388
   Insurance and claims                        12,786       10,202       8,674        7,945        6,069
   Communications and utilities                 2,284        2,320       2,234        2,365        1,583
   Other                                        4,620        4,707       3,756        4,388        3,131
   (Gain) loss on sale or
    disposal of property                          127          886         285         (301)         168
                                            ---------    ---------   ---------    ---------    ---------
Total operating expenses                      234,372      204,525     185,845      182,926      126,104
                                            ---------    ---------   ---------    ---------    ---------
Operating income                               29,640       21,269      19,400       24,455       17,060
Interest expense                               (1,985)      (4,477)     (5,048)      (5,650)      (3,830)
Other                                               -            -           -            -            1
                                            ---------    ---------   ---------    ---------    ---------
Income before income taxes                     27,655       16,792      14,352       18,805       13,231
Income taxes                                   11,062        6,721       5,694        7,536        5,158
                                            ---------    ---------   ---------    ---------    ---------
Net income                                  $  16,593    $  10,071   $   8,658    $  11,269    $   8,073
                                            =========    =========   =========    =========    =========
Earnings per common share:
Basic                                         $  1.56      $  1.18     $  1.02      $  1.34      $  0.97
                                              =======      =======     =======      =======      =======
Diluted                                       $  1.55      $  1.18     $  1.02      $  1.33      $  0.96
                                              =======      =======     =======      =======      =======
Average common shares outstanding-Basic        10,669        8,522       8,455        8,393        8,306
                                              =======      =======     =======      =======      =======
Average common shares outstanding-Diluted(1)   10,715        8,550       8,518        8,488        8,444
                                              =======      =======     =======      =======      =======
</TABLE>
--------------------------------------------------------------------------------
(1)  Diluted  income  per  share for 2002, 2001, 2000, 1999 and 1998 assumes the
exercise  of stock options to purchase an aggregate of 86,324, 107,369, 208,602,
262,097 and 317,040 shares of common stock, respectively.

<TABLE>
<CAPTION>
                                                                   AT DECEMBER 31,
                                               2002         2001        2000         1999         1998
                                             --------     --------    --------     --------     --------
Balance Sheet Data:                                                (in thousands)
<S>                                          <C>          <C>         <C>          <C>          <C>
Total Assets                                 $228,078     $182,516    $164,518     $168,961     $126,471
Long-term debt                                 20,175       47,023      42,073       55,617       44,816
Stockholders' equity                          144,452       72,597      62,210       53,365       41,457
</TABLE>

<TABLE>
<CAPTION>
                                                               YEAR ENDED DECEMBER 31,
                                               2002         2001        2000        1999         1998
                                             --------     --------    --------     --------     --------
Operating Data:
<S>                                          <C>          <C>         <C>          <C>          <C>
Operating ratio (1)                             88.8%        90.6%       90.5%        88.2%        88.1%
Average number of truckloads per week           6,463        5,399       5,169        4,885        3,425
Average miles per trip                            755          769         713          734          767
Total miles traveled (in thousands)           238,256      204,303     183,476      186,355      131,847
Average miles per tractor                     136,772      131,554     128,936      128,966      125,569
Average revenue per tractor per day           $   621      $   591     $   579      $   570       $  543
Average revenue per loaded mile               $  1.15      $  1.17     $  1.18      $  1.18       $ 1.15
Empty mile factor                                4.0%         5.5%        5.6%         5.4%         5.5%

At end of period:
Total company-owned/leased tractors             1,781(2)     1,660(3)    1,413(4)     1,468(5)     1,127(6)
Average age of all tractors (in years)           2.12         1.81        1.72         1.64         1.74
Total trailers                                  3,973        3,932       3,759        3,846(7)     2,784(8)
Average age of trailers (in years)               5.74         5.31        4.66         3.97         3.31
Number of employees                             2,538        2,424       2,154        1,899        1,656

</TABLE>
-------------------------------------------------------------------------------
  (1) Total operating expenses as a percentage of total operating revenues.
  (2) Includes 130 owner operator tractors.
  (3) Includes 135 owner operator tractors.
  (4) Includes 117 owner operator tractors.
  (5) Includes 148 owner operator tractors.
  (6) Includes 94 owner operator tractors.
  (7) Includes 21 trailers leased from an affiliate of our majority shareholder.
  (8) Includes 46 trailers leased from an affiliate of our majority shareholder.


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 its 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.

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

Revenue  Recognition.  Revenue is recognized in full upon completion of delivery
to  the  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.

RESULTS OF OPERATIONS

The  following  table  sets  forth  the  percentage  relationship of revenue and
expense items to operating revenues for the periods indicated.
<TABLE>
<CAPTION>
                                                       YEARS ENDED DECEMBER 31,
                                                    2002         2001         2000
                                                    ----         ----         ----
<S>                                                <C>          <C>          <C>
Operating revenues                                 100.0%       100.0%       100.0%
                                                   -----        -----        -----
Operating  expenses:
   Salaries, wages and benefits                     43.7         44.4         44.2
   Operating supplies                               19.4         19.2         18.4
   Rent and purchased transportation                 3.7          4.7          6.1
   Depreciation and amortization                     9.4          9.0          9.2
   Operating taxes and licenses                      5.1          5.3          5.4
   Insurance and claims                              4.8          4.5          4.2
   Communications and utilities                      0.9          1.0          1.1
   Other                                             1.7          2.1          1.8
   (Gain) loss on sale or disposal of property       0.0          0.4          0.1
                                                   -----        -----        -----
Total operating expenses                            88.7         90.6         90.5
                                                   -----        -----        -----
Operating income                                    11.3          9.4          9.5
Interest expense                                    (0.8)        (2.0)        (2.5)
                                                   -----        -----        -----
Income before income taxes                          10.5          7.4          7.0
Federal and state income taxes                       4.2          3.0          2.8
                                                   -----        -----        -----
Net income                                           6.3%         4.4%         4.2%
                                                   =====        =====        =====
</TABLE>

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.

2001 COMPARED TO 2000

For  the  year  ended  December  31,  2001,  our revenues were $225.8 million as
compared  to  $205.2  million for the year ended December 31, 2000. The increase
relates  primarily  to an increase in the average number of tractors, from 1,423
in  2000  to  1,553  in  2001,  and  an increase in our utilization (revenue per
tractor  per work day), which increased 2.1%, from $579 in 2000 to $591 in 2001.

Operating  supplies  and  expenses  increased  from 18.4% of revenues in 2000 to
19.2%  of revenues in 2001. The increase relates to an increase in fuel costs of
0.3%  of  revenues, net of a fuel surcharge passed to customers, and an increase
of 0.5% of revenues in equipment repair costs.

Rent  and  purchased  transportation  decreased from 6.1% of revenues in 2000 to
4.7%  of  revenues  in  2001.  The  decrease  relates primarily to a decrease in
amounts  paid  to  other transportation companies in the form of brokerage fees.

Insurance and claims increased from 4.2% of revenues in 2000 to 4.5% of revenues
in  2001.  The  increase  relates  primarily  to  an  increase in rates for auto
liability insurance coverage.

Loss  on sale or disposal of property increased from 0.1% of revenues in 2000 to
0.4%  of  revenues  in 2001. This increase is primarily the result of a one-time
write-down  in  the amount of $304,810, net of tax, of the value of the tractors
and  trailers  that  we  acquired  in the Decker Transport Co. Inc. acquisition,
which,  unlike  the rest of our tractors, do not have guaranteed residual resale
or trade-in values.

Our  effective  tax  rate  increased from 39.7% in 2000 to 40.0% in 2001, which,
combined  with  increased revenues, resulted in an increase in the provision for
income taxes from $5.7 million in 2000 to $6.7 million in 2001.

Net  income  increased  to $10.1 million, or 4.4% of revenues, in 2001 from $8.7
million,  or  4.2%  of revenues in 2000, representing an increase in diluted net
income per share to $1.18 in 2001 from $1.02 in 2000.

QUARTERLY RESULTS OF OPERATIONS

The  following  table  presents  selected consolidated financial information for
each  of  our  last  eight  fiscal  quarters  through  December  31,  2002.  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,
                            2001      2001      2001       2001       2002      2002       2002       2002
                          ------    -------   -------    -------    -------   --------   -------    -------
                                                             (unaudited)
                                            (in thousands, except earnings per share data)
<S>                       <C>       <C>       <C>        <C>        <C>       <C>       <C>        <C>
Operating revenues        $58,406   $57,462   $53,662    $56,264    $63,313    $70,841    $65,034   $64,824
Total operating expenses   52,861    51,502    49,192     50,970     56,331     62,082     58,062    57,897
Operating income            5,545     5,960     4,470      5,294      6,982      8,759      6,972     6,927
Net income                  2,639     2,885     2,002      2,545      3,606      5,034      3,957     3,996
Earnings per common share:
Basic                       $0.31     $0.34     $0.23      $0.30      $0.40      $0.45      $0.35     $0.35
                            =====     =====     =====      =====      =====      =====      =====     =====
Diluted                     $0.31     $0.34     $0.23      $0.30      $0.40      $0.45      $0.35     $0.35
                            =====     =====     =====      =====      =====      =====      =====     =====
</TABLE>

LIQUIDITY AND CAPITAL RESOURCES

During  2002,  we  generated  $48.9  million  in  cash from operating activities
compared  to  $31.4  million  and  $32.5 million in 2001 and 2000, respectively.
Investing  activities  used  $30.4 million in cash during 2002 compared to $36.7
million  and $17.7 million in 2001 and 2000, 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 $11.4 million
in  cash  during 2002 compared to cash generated by financing activities of $5.7
million  in 2001 and cash used in financing activities of $17.9 million in 2000.
In  all  three  years,  the  cash used in financing activities was primarily for
repayment  of  long-term  borrowings incurred to finance the purchase of revenue
equipment used in our operations. (See Cash Flow Statement on page 30.)

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  2001  and  2002,  we  utilized  cash  on hand and our lines of credit to
finance  revenue equipment purchases for an aggregate of $39.4 million and $35.9
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, 2002, we had outstanding indebtedness under such installment notes
of  $1.1  million.  As  of  February  28, 2003, we had approximately $900,000 in
outstanding  indebtedness  under  such  installment notes, with various maturity
dates  through  February  2004.  The  weighted  average  interest rates on these
installment  notes  were  7.16%,  6.32%  and  6.75%  for  2002,  2001  and 2000,
respectively.

We maintain two $20.0 million revolving lines of credit (Line A and Line B) 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, 2004.  At December 31, 2002,
$1.7  million  in  letters  of  credit  were  outstanding  under  Line  A,  with
availability  to  borrow  $18.3  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 November 30, 2004.  At December 31,
2002, Line B was fully utilized with $20.0 million outstanding.  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
$54.8  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 intends to use the remaining proceeds to fund its capital
expenditures and to finance general working capital needs.

Our  cash  flows  from operations increased to $48.9 million in 2002 compared to
$31.4  million  in  2001.  This  is  due  to an increase in cash provided by the
excess  of  cash  revenues over cash expenses and management of accounts payable
offset  by  an  increase  in  accounts receivable.  The purchase of property and
equipment  in  2002  required less cash than was required for those purchases in
2001.  The proceeds of the issuance of common stock provided $54.5 million which
was  used primarily to reduce outstanding debt.  Common stock proceeds in excess
of  debt  reductions  was  retained  at  December 31, 2002, for future corporate
purposes.

For 2003, we expect to purchase approximately 500 new tractors and approximately
770  trailers while continuing to sell or trade older equipment, which we expect
to  result  in  net capital expenditures of approximately $36.4 million.  We are
also in the process of expanding our corporate headquarters at our main facility
in  Tontitown,  Arkansas,  which  we  expect  to  finance  from  cash  on  hand.

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 $1.6 million
utilizing existing cash.

On February 19, 2003, the Company entered into a non-binding letter of intent to
purchase  for cash certain assets of McNeill Trucking Company, Inc., a truckload
carrier  based  in  Little  Rock,  Arkansas.  Consummation of the transaction is
subject  to  the  satisfactory  completion  of  a  due  diligence investigation,
negotiation  of  a  definitive  agreement and any required regulatory approvals.

Regardless of whether we consummate the proposed acquisition of McNeill Trucking
Company, Inc., we expect that our working capital and available credit under our
credit  lines  will  be  sufficient to meet our capital commitments and fund our
operating needs for at least the next twelve months.

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,  $5,000  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  $350,000 per occurrence deductible.  The company continues to be self insured
for  workers'  compensation  claims  in  the  State of Ohio with a $350,000 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 a bank as security for workers'
compensation  claims  and  letters  of credit aggregating $150,000 are held by a
bank  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.

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.

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.


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
2002  and  2001, fuel expenses represented 15.0% and 15.7%, respectively, of our
total  operating expenses.  Based upon our 2002 fuel consumption, a 10% increase
in  the average annual price per gallon of diesel fuel would increase our annual
fuel expenses by $3.5 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.

INTEREST RATE RISK

Our  two  $20.0  million  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 10 to our consolidated financial statements.


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, 2002 and 2001
       Consolidated Statements of Income - Years ended December 31, 2002, 2001
         and 2000
       Consolidated Statements of Shareholders' Equity - Years ended
         December 31, 2002, 2001 and 2000
       Consolidated Statements of Cash Flows - Years ended December 31, 2002,
         2001 and 2000
       Notes to Consolidated Financial Statements



                          INDEPENDENT AUDITORS' REPORT


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

We  have  audited  the  accompanying  consolidated  balance  sheet  of  P.A.M.
Transportation  Services,  Inc.  (a  Delaware corporation) and subsidiaries (the
"Company")  as  of December 31, 2002, and the related consolidated statements of
income,  shareholders'  equity,  and  cash  flows for the year 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  audit.  The  financial  statements of the
Company  as  of  December  31, 2001, and for each of the two years in the period
then  ended  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 audit 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  audit  provides  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,  2002,  and  the results of their
operations  and  their  cash  flows  for  the year then ended in conformity with
accounting  principles  generally  accepted  in  the  United  States of America.

As  discussed  in  Note  1  to the 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

March 12, 2003
Little Rock, Arkansas




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



<TABLE>
<CAPTION>
P.A.M. TRANSPORTATION SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2002 AND 2001 (in thousands)
-----------------------------------------------------
                                                               2002               2001
                                                             --------           --------
<S>                                                          <C>                <C>
ASSETS
CURRENT ASSETS:
  Cash and cash equivalents                                  $ 30,766            $   896
  Accounts receivable, net:
    Trade                                                      34,231             24,327
    Other                                                       1,221                744
  Inventories                                                     411                255
  Prepaid expenses and deposits                                 3,647              3,980
  Deferred income taxes                                           127                342
  Income taxes refundable                                         281                393
                                                             --------           --------
       Total current assets                                    70,684             30,937

PROPERTY AND EQUIPMENT:
  Land                                                          2,237              2,237
  Structures and improvements                                   7,552              4,336
  Revenue equipment                                           215,509            198,482
  Service vehicles                                                805                595
  Office furniture and equipment                                7,056              6,252
                                                             --------           --------
                                                              233,159            211,902
  Accumulated depreciation                                    (85,787)           (70,190)
                                                             --------           --------
                                                              147,372            141,712
OTHER ASSETS:
  Goodwill, net of amortization of $1,782                       8,102              8,102
  Other                                                         2,162              1,635
                                                             --------           --------
                                                               10,264              9,737
                                                             --------           --------
      Total assets                                           $228,320           $182,386
                                                             ========           ========
                                                                              (Continued)
              LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:
  Trade accounts payable                                     $ 15,725           $  7,800
  Accrued expenses                                              9,601              8,722
  Current portion of long-term debt                             1,017             17,692
                                                             --------           --------
      Total current liabilities                                26,343             34,214

  Long-term debt, less current portion                         20,175             47,023

  Deferred income taxes                                        37,350             28,552

SHAREHOLDERS EQUITY:
  Preferred  stock,  $.01  par  value:
    Authorized  shares--10,000,000
    Issued and outstanding shares: 0 at December 31,
      2002 and 2001
  Common stock, $.01 par value:
    Authorized shares--40,000,000
    Issued and outstanding shares: 11,282,207 and 8,611,957
      at December 31, 2002 and 2001, respectively                 113                 86
  Additional paid-in capital                                   76,193             20,461
  Accumulated other comprehensive loss                         (1,005)              (508)
  Retained earnings                                            69,151             52,558
                                                             --------           --------
      Total shareholders equity                               144,452             72,597
                                                             --------           --------
 TOTAL LIABILITIES AND SHAREHOLDERS EQUITY                   $228,320           $182,386
                                                             ========           ========
See notes to consolidated financial statements.                               (Concluded)
</TABLE>

<TABLE>
<CAPTION>
P.A.M. TRANSPORTATION SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
YEARS ENDED DECEMBER 31, 2002, 2001, AND 2000 (in thousands, except share data)
-------------------------------------------------------------------------------

                                                2002             2001             2000
                                              --------         --------         --------
<S>                                           <C>              <C>              <C>
Operating revenues                            $264,012         $225,794         $205,245
Operating expenses and costs:
  Salaries, wages, and benefits                115,432          100,359           90,680
  Operating supplies and expenses               51,161           43,289           37,728
  Rents and purchased transportation             9,780           10,526           12,542
  Depreciation and amortization                 24,715           20,300           18,806
  Operating taxes and licenses                  13,467           11,936           11,140
  Insurance and claims                          12,786           10,202            8,674
  Communications and utilities                   2,284            2,320            2,234
  Other                                          4,620            4,707            3,756
  Loss on sale or disposal of equipment            127              886              285
                                              --------         --------         --------
                                               234,372          204,525          185,845
                                              --------         --------         --------
Operating income                                29,640           21,269           19,400

Interest expense                                (1,985)          (4,477)          (5,048)
                                              --------         --------         --------

Income before income taxes                      27,655           16,792           14,352
Federal and state income taxes:
  Current                                        1,718            1,301            1,056
  Deferred                                       9,344            5,420            4,638
                                              --------         --------         --------
                                                11,062            6,721            5,694
                                              --------         --------         --------
Net income                                    $ 16,593         $ 10,071         $  8,658
                                              ========         ========         ========
Earnings per common share:
  Basic                                       $   1.56         $   1.18         $   1.02
                                              ========         ========         ========
  Diluted                                     $   1.55         $   1.18         $   1.02
                                              ========         ========         ========

Average common shares outstanding:
  Basic                                         10,669            8,522            8,455
                                              ========         ========         ========
  Diluted                                       10,715            8,550            8,518
                                              ========         ========         ========

See notes to consolidated financial statements.
</TABLE>

<TABLE>
<CAPTION>
P.A.M. TRANSPORTATION SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
YEARS ENDED DECEMBER 31, 2002, 2001, AND 2000 (in thousands)
------------------------------------------------------------

                                               ADDITIONAL   ACCUMULATED       OTHER
                                      COMMON    PAID-IN    COMPREHENSIVE   COMPREHENSIVE    RETAINED
                                       STOCK    CAPITAL        INCOME          LOSS         EARNINGS      TOTAL
                                      ------    -------    -------------   -------------    --------      -----
<S>                                   <C>      <C>         <C>             <C>              <C>         <C>
BALANCE AT DECEMBER 31, 1999           $  84   $ 19,452                                     $ 33,829    $ 53,365

  Net income                                                                                   8,658       8,658
  Exercise of stock options-shares
    issued                                 1        186                                                      187
                                      ------   --------                       --------       -------    --------
BALANCE AT DECEMBER 31, 2000              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                                 1        823                                                      824
                                      ------   --------                       --------       -------    --------
BALANCE AT DECEMBER 31, 2001              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                                    478                                                      478
  Issuance of common stock                26     54,732                                                   54,758
  Exercise of stock options-
    shares issued including tax
    benefits                               1        522                                                      523
                                      ------   --------                       --------      --------    --------
BALANCE AT DECEMBER 31, 2002         $   113   $ 76,193                       $ (1,005)     $ 69,151    $144,452
                                      ======   ========                       ========      ========    ========

See notes to consolidated financial statements.
</TABLE>

P.A.M. TRANSPORTATION SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31, 2002 AND 2001 (in thousands)
-----------------------------------------------------
<TABLE>
<CAPTION>
                                                                   2002            2001            2000
                                                                 --------        --------        --------
<S>                                                              <C>             <C>             <C>
OPERATING ACTIVITIES:
  Net income                                                     $ 16,593        $ 10,071        $  8,658
  Adjustments to reconcile net income to net
    cash provided by operating activities:
    Depreciation and amortization                                  24,715          20,300          18,806
    Bad debt expense                                                1,028             897              29
    Non-competition agreement amortization                                            131             131
    Provision for deferred income taxes                             9,344           5,420           4,638
    Loss on sale or disposal of equipment                             127             886             285
    Changes in operating assets and liabilities, net
       of acquisition:
      Accounts receivable                                         (11,516)         (2,453)           (271)
      Prepaid expenses, inventories, and other assets                (349)           (763)            592
      Income taxes refundable                                        (357)            235            (516)
      Trade accounts payable                                        7,925          (3,927)           (295)
      Accrued expenses                                              1,357             648             400
                                                                 --------        --------        --------
      Net cash provided by operating activities                    48,867          31,445          32,457
                                                                 --------        --------        --------
INVESTING ACTIVITIES:
  Purchases of property and equipment                             (42,067)        (47,515)        (30,732)
  Proceeds from sale or disposal of equipment                      11,565          10,536          12,842
  Lease payments received on direct financing leases                  107             232             231
                                                                 --------        --------        --------
      Net cash used in investing activities                       (30,395)        (36,747)        (17,659)

FINANCING ACTIVITIES:
  Borrowings under line of credit                                 362,148         278,147         196,472
  Repayments under line of credit                                (371,224)       (258,197)       (191,295)
  Borrowings of long-term debt                                      1,459           7,943           4,384
  Repayments of long-term debt                                    (35,907)        (23,004)        (27,158)
  Proceeds from issuance of common stock                           54,538
  Other                                                               384             824            (273)
                                                                 --------        --------        --------
      Net cash provided by (used in) financing activities          11,398           5,713         (17,870)
                                                                 --------        --------        --------
Net increase (decrease) in cash and cash equivalents               29,870             411          (3,072)

Cash and cash equivalents at beginning of year                        896             485           3,557
                                                                 --------        --------        --------
Cash and cash equivalents at end of year                         $ 30,766        $    896        $    485
                                                                 ========        ========        ========
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
   Cash paid during the year for:
    Interest                                                     $  2,100        $  4,500        $  5,100
                                                                 ========        ========        ========
    Income taxes                                                 $  1,500        $  1,100        $  1,100
                                                                 ========        ========        ========

See notes to consolidated financial statements.
</TABLE>



P.A.M. TRANSPORTATION SERVICES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2002, 2001, AND 2000
-----------------------------------------------------

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, 2002), P.A.M. Dedicated Services, Inc., P.A.M.
Logistics,  Inc.  (inactive  as  of  December  31, 2002), Choctaw Express, Inc.,
Choctaw  Brokerage,  Inc.  (inactive  as  of  December  31, 2002), Allen Freight
Services,  Inc.,  T.T.X.,  Inc., Transcend Logistics, Inc., and Decker Transport
Co.,  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.

TIRE PURCHASES-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.

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.  We completed the annual assessment of impairment in the fourth quarter
of  2002  and  determined  there  was  no impairment at that time.  Based on the
review  for impairment indicators in the second half of 2002, we have determined
that  an impairment review is not required prior to our annual review during the
fourth quarter of 2003.

REVENUE RECOGNITION POLICY-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.

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

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.  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:

                                                     ESTIMATED
             ASSET CLASS                             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

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.

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  and  such  losses  have  been  within  management's
expectations.  In  view  of  the  concentration  of  the  Company's revenues and
accounts  receivable  among  a limited number of customers within the automobile
manufacturing industry, the financial health of this industry is a factor in the
Company's overall evaluation of accounts receivable.

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 5.

RECENT  ACCOUNTING  PRONOUNCEMENTS-In  June  1998,  the  Financial  Accounting
Standards  Board  issued  Statement  of  Financial Accounting Standards No. 133,
Accounting  for Derivative Instruments and Hedging Activities, ("SFAS No. 133"),
which  was  amended  by  Statement  of  Financial  Accounting Standards No. 138,
Accounting  for  Certain Derivative Instruments and Certain Hedging Activities -
an  Amendment  of  FASB  Statement  No.  133  ("SFAS  No.  138").  SFAS  No. 133
establishes  accounting  and reporting standards requiring that every derivative
instrument  (including  certain  derivative  instruments  embedded  in  other
contracts)  be  recorded  in  the  balance sheet as either an asset or liability
measured  at  its  fair  value.  SFAS  No.  133  requires  that  changes  in the
derivative's  fair  value  be  recognized  currently in earnings unless specific
hedge accounting criteria are met.  Companies must formally document, designate,
and  assess  the  effectiveness  of  transactions that receive hedge accounting.
SFAS  No.  138  amends  the  accounting  and  reporting  standards  for  certain
derivative  instruments  and  certain  hedging  activities, including the normal
purchases and normal sales exception.

On  January  1,  2001,  the  Company  adopted  SFAS No. 133.  The Company had no
transition  adjustment  as a result of adopting SFAS No. 133 on January 1, 2001.

In  July  2001,  the  Financial  Accounting  Standards Board issued Statement of
Financial  Accounting Standards No. 141, Business Combinations ("SFAS No. 141"),
and  Statement  of  Financial  Accounting  Standards No. 142, Goodwill and Other
Intangible  Assets,  ("SFAS No. 142") and announced the approval for issuance of
Statement  of  Financial  Accounting  Standards  No.  143,  Accounting for Asset
Retirement Obligations ("SFAS No. 143").

SFAS  No.  141 requires all business combinations completed after June 30, 2001,
to  be  accounted for under the purchase method.  This standard also establishes
for  all  business  combinations made after June 30, 2001, specific criteria for
the recognition of intangible assets separately from goodwill.

SFAS  No.  142 addresses the accounting for goodwill and other intangible assets
after an acquisition.  Goodwill and other intangibles that have indefinite lives
will  no  longer  be  amortized, but will be subject to annual impairment tests.
All  other  intangible assets will continue to be amortized over their estimated
useful  lives.  The  Company adopted this statement on January 1, 2002.  At that
time, amortization of existing goodwill ceased.  The adoption of SFAS No. 142 on
January  1,  2002  did  not  have  a  material impact on the Company's financial
position or results of operations.

SFAS  No.  143  provides  accounting  requirements  for  retirement  obligations
associated  with  tangible  long-lived  assets,  including:  (i)  the  timing of
liability  recognition;  (ii)  initial  measurement  of  the  liability;  (iii)
allocation  of  asset retirement cost to expense; (iv) subsequent measurement of
the  liability;  and  (v) financial statement disclosures. SFAS No. 143 requires
that  an asset retirement cost be capitalized as part of the cost of the related
long-lived  asset  and  subsequently allocated to expense using a systematic and
rational  method.  This  standard  becomes  effective for fiscal years beginning
after June 15, 2002.  As of December 31, 2002, management believes that SFAS No.
143  will  have  no  significant  effect on the financial position or results of
operations of the Company.

In October 2001, the FASB issued Statement of Financial Accounting Standards No.
144,  Accounting  for the Impairment or Disposal of Long-Lived Assets ("SFAS No.
144").  SFAS No. 144 addresses financial accounting and reporting for impairment
or  disposal of long-lived assets.  This Statement supersedes FASB Statement No.
121,  Accounting  for the Impairment of Long-Lived Assets to be Disposed Of, and
the  accounting  and  reporting  provisions of APB Opinion No. 30, Reporting the
Results  of  Operations-Reporting  the  Effects  of  Disposal  of a Segment of a
Business,  and  Extraordinary,  Unusual  and  Infrequently  Occurring Events and
Transaction",  for the disposal of a segment of a business.  This Statement also
amends ARB No. 51, Consolidated Financial Statements, to eliminate the exception
to  consolidation  for a subsidiary for which control is likely to be temporary.
SFAS  No.  144  is effective for fiscal years beginning after December 15, 2001.
The Company adopted SFAS No. 144 on January 1, 2002, and there was no a material
impact on the Company's financial position or results of operations.

In May 2002, the FASB issued SFAS No. 145, Rescission of SFAS Nos. 4, 44 and 64,
Amendment  of SFAS No. 13, and Technical Corrections as of April 2002 ("SFAS No.
145").  SFAS  No.  145,  rescinds  SFAS  No.  4, Reporting Gains and Losses from
Extinguishment of Debt, and SFAS No. 64, Extinguishments of Debt made to Satisfy
Sinking-Fund  Requirements.  Under  the  provisions  of  SFAS No. 145, gains and
losses from extinguishment of debt can only be classified as extraordinary items
if  they  meet  the  criteria  in  APB  Opinion  No.  30. The provisions of this
Statement  related  to  the  rescission of SFAS No. 4 shall be applied in fiscal
years  beginning  after  May  15,  2002.  Earlier application is permitted. This
statement  also  amends  SFAS  No.  13,  Accounting  for Leases, to eliminate an
inconsistency between the accounting for sale-leaseback transactions and certain
lease modifications that have economic effects that are similar and is effective
for  transactions occurring after May 15, 2002. This Statement also amends other
existing  authoritative  pronouncements  to  make various technical corrections,
clarify  meanings,  or describe their applicability under changed conditions and
are  effective  for  financial statements issued on or after May 15, 2002. As of
December  31,  2002,  management  believes  that  SFAS  No.  145  will  have  no
significant  effect  on  the  financial position or results of operations of the
Company.

In  July  of 2002, the FASB issued SFAS No. 146, Accounting for Costs Associated
with  Exit  or Disposal Activities ("SFAS No. 146").  SFAS No. 146 replaces EITF
No.  94-3  Liability  Recognition  for Certain Employee Termination Benefits and
Other  Costs  to  Exit  an  Activity  (including  Certain  Costs  Incurred  in a
Restructuring).  SFAS  No.  146 requires companies to recognize costs associated
with  exit or disposal activities when they are incurred rather than at the date
of  a  commitment  to an exit or disposal plan as was required by EITF No. 94-3.
Examples  of  costs  covered by SFAS No. 146 include lease termination costs and
certain  employee  severance  costs  that  are  associated with a restructuring,
discontinued operation, plant closing, or other exit or disposal activity.  SFAS
No. 146 is to be applied to exit or disposal activities initiated after December
31,  2002.  As  of December 31, 2002, management believes that SFAS No. 146 will
have no significant effect on the financial position or results of operations of
the Company.

During  December  2002, the FASB issued SFAS No. 148, Accounting for Stock-Based
Compensation--Transition  and Disclosure, an Amendment of FASB Statement No. 123
("SFAS  No.  148"),  which  provides  alternative  methods  of  transition for a
voluntary  change  to  the fair value based method of accounting for stock-based
employee  compensation  and  requires  prominent  disclosures in both annual and
interim  financial  statements  about  the  method of accounting for stock-based
employee  compensation  and  the  effect of the method used on reported results.
SFAS  No.  148  is  effective  for  fiscal years ending after December 15, 2002.
Management  has  determined  that  adoption of the disclosure provisions of this
statement  did  not  have  any  effect  on  the financial position or results of
operations  of  the  Company  during  2002  and expects no significant effect on
future periods.

FASB  Interpretation  No. 45, Guarantor's Accounting and Disclosure Requirements
for  Guarantees,  Including  Indirect Guarantees of Indebtedness of Others ("FIN
45")  elaborates  on  the disclosures to be made by a guarantor in its financial
statements  about  its  obligations under certain guarantees that it has issued.
It also clarifies that a guarantor is required to recognize, at the inception of
a  guarantee,  a  liability  for  the fair value of the obligation undertaken in
issuing  the  guarantee.  The  initial  recognition  and  initial  measurement
provisions  of FIN 45 are applicable on a prospective basis to guarantees issued
or  modified  after  December  31,  2002, irrespective of the guarantor's fiscal
year-end.  The  disclosure  requirements  in  FIN 45 are effective for financial
statements  of annual periods ending after December 15, 2002.  Management of the
Company has not determined the effect, if any, of the application of the initial
recognition and initial measurement provisions of FIN 45.

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  2001  and  2000  amounts  have  been  reclassified to
conform to the 2002 presentation.

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, 2002, 2001 and 2000 follows:
<TABLE>
<CAPTION>
                                       2002            2001            2000
                                     --------        --------        --------
                                                  (in thousands)
<S>                                  <C>             <C>             <C>
   Balance, beginning of year        $  1,515        $    656        $    655
   Provision for bad debts              1,028             898              29
   Charge-offs                         (1,827)            (39)            (28)
                                     --------        --------        --------
   Balance, end of year              $    716        $  1,515        $    656
                                     ========        ========        ========
</TABLE>
Both  the  2002 provision for bad debt and charge-offs include a provision for a
contingent  liability  relating to a preferential payment claim lawsuit filed by
the  creditors  of one of the Company's subsidiaries (See Note 12). In addition,
2002  charge-offs  reflect the write-off of items included in the 2001 provision
for bad debts.

3. 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 follows:
<TABLE>
<CAPTION>
                                                     YEAR ENDED DECEMBER 31,
                                              2002           2001            2000
                                           ---------       ---------       ---------
                                                        (in thousands)
<S>                                        <C>             <C>             <C>
   Reported net income                     $  16,593       $  10,071       $   8,658
   Goodwill amortization, net of tax                             243             243
                                           ---------       ---------       ---------
   Adjusted net income                     $  16,593       $  10,314       $   8,901
                                           =========       =========       =========

   Adjusted net income per common share:
     Basic                                 $    1.56       $    1.21       $    1.05
                                           =========       =========       =========
     Diluted                               $    1.55       $    1.21       $    1.05
                                           =========       =========       =========
</TABLE>

4. ACCRUED EXPENSES
-------------------
Accrued expenses at December 31 is summarized as follows:
<TABLE>
<CAPTION>
                                              2002            2001
                                           ----------      ----------
                                                 (in thousands)
<S>                                        <C>             <C>
   Payroll                                 $    1,638      $    1,607
   Accrued vacation                             1,414             911
   Taxes                                        1,535           1,575
   Interest                                        73             159
   Driver escrows                                 893             803
   Self-insurance claims reserves               4,048           3,667
                                           ----------      ----------
                                           $    9,601      $    8,722
                                           ==========      ==========
</TABLE>

5. 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,  $5,000  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  $350,000  per occurrence deductible. The company continues to be self insured
for  workers'  compensation  claims  in  the  State of Ohio with a $350,000 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  a  bank as security for workers'
compensation  claims  and  letters  of credit aggregating $150,000 are held by a
bank  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.

6. LONG-TERM DEBT
-----------------
Long-term debt at December 31 consists of the following:
<TABLE>
<CAPTION>
                                                         2002            2001
                                                      ---------       ---------
                                                            (in thousands)
<S>                                                   <C>             <C>
  Equipment financings (1)                            $   1,066       $  32,883
  Line of credit with a bank, due May 31, 2004
    and collateralized by accounts receivable (2)                         9,076
  Line of credit with a bank, due November 30, 2004
    and collateralized by revenue equipment (3)          20,000          20,000
  Note payable (4)                                                        1,810
  Other (5)                                                 126             946
                                                      ---------       ---------
                                                         21,192          64,715
  Less current maturities                                (1,017)        (17,692)
                                                      ---------       ---------
  Long-term debt, net of current maturities           $  20,175       $  47,023
                                                      =========       =========
</TABLE>

(1)     Equipment  financings consist of installment obligations for revenue and
service  equipment  purchases,  payable  in various monthly installments through
February  2004,  at a weighted average interest rate of 7.16% and collateralized
by equipment with a net book value of approximately $2.3 million at December 31,
2002.

(2)     The 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%.  The  Company  was  in compliance with all provisions of the agreement at
December 31, 2002.

(3)     The 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 last day of the previous month
plus 1.15% (2.53% at December 31, 2002).  The Company was in compliance with all
provisions of the agreement at December 31, 2002.

(4)     6.0% note to the former owner of Decker Transport Company, Inc., payable
in monthly installments of $77,216 was paid in full during March 2002.

(5)     Various  notes  with weighted average interest rates of 0.0% at December
31, 2002, payable in monthly installments through January 2005.

Scheduled  annual maturities on long-term debt outstanding at December 31, 2002,
are:
                                   (in thousands)
                      2003           $   1,017
                      2004              20,173
                      2005                   2
                                     ---------
                                     $  21,192
                                     =========

7. SIGNIFICANT CUSTOMERS AND INDUSTRY CONCENTRATION
---------------------------------------------------
In  2002,  2001 and 2000, one customer, which is in the automobile manufacturing
industry, accounted for 56%, 40% and 33% 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 2002, 2001
and  2000,  68%,  55%  and  50%,  respectively, were derived from transportation
services provided to the automobile manufacturing industry.  Accounts receivable
from  the  largest customer totaled approximately $25,000,000 and $11,500,000 at
December 31, 2002 and 2001, respectively.

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

Significant  components  of the Company's deferred tax liabilities and assets at
December 31 are as follows:
<TABLE>
<CAPTION>
                                               2002                              2001
                                      ------------------------         ------------------------
                                                            (in thousands)
                                       CURRENT       LONG-TERM          CURRENT       LONG-TERM
                                      ---------------------------------------------------------
<S>                                   <C>           <C>                <C>           <C>
Deferred tax liabilities:
  Property and equipment                            $   40,608                       $   32,863
  Prepaid expenses                    $  2,307                         $  1,975
                                      --------      ----------         --------      ----------
    Total deferred tax liabilities       2,307          40,608            1,975          32,863

Deferred tax assets:
  Alternative minimum tax credit                         2,016                            3,345
  Allowance for doubtful accounts          267                              575
  Compensated absences                     537                              346
  Self-insurance allowances              1,402                            1,396
  Hedging derivative                                       670                              339
  Accrued compensation                     228
  Non-competition agreement                                450                              505
  Other                                                    122                              122
                                      --------      ----------         --------      ----------
Total deferred tax assets                2,434           3,258            2,317           4,311
                                      --------      ----------         --------      ----------
Net deferred tax asset (liability)    $    127      $  (37,350)        $    342      $  (28,552)
                                      ========      ==========         ========      ==========
</TABLE>

The  reconciliation  between  the  effective  income  tax rate and the statutory
Federal income tax rate is presented in the following table:
<TABLE>
<CAPTION>
                                                        YEAR ENDED DECEMBER 31,
                                      2002                       2001                      2000
                               -------------------       -------------------       -------------------
                                                           (in thousands)
                                 AMOUNT    PERCENT         AMOUNT    PERCENT         AMOUNT    PERCENT
                               -----------------------------------------------------------------------
<S>                            <C>         <C>           <C>         <C>           <C>         <C>
Income tax at the statutory
  Federal rate of 34%          $  9,403     34.0%        $  5,709     34.0%        $  4,879     34.0%
Nondeductible expenses              401      1.5              338      2.0              311      2.2
State income taxes, net of
  federal benefit                 1,552      5.6              804      4.8              840      5.9
Other                              (294)    (1.1)            (130)    (0.8)            (336)    (2.4)
                               --------     ----         --------     ----         --------     ----
Total income taxes             $ 11,062     40.0%        $  6,721     40.0%        $  5,694     39.7%
                               ========     ====         ========     ====         ========     ====
</TABLE>

The current income tax provision consists of the following:
<TABLE>
<CAPTION>
                                  2002           2001           2000
                                --------       --------       --------
                                            (in thousands)
<S>                             <C>            <C>            <C>
  Federal                       $    975       $    951       $    656
  State                              743            350            400
                                --------       --------       --------
                                $  1,718       $  1,301       $  1,056
                                ========       ========       ========
</TABLE>

The Company has alternative minimum tax credits of approximately $2.0 million at
December  31,  2002,  which  have  no  expiration date under the current federal
income tax laws.

9. 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,  2002.  At  December  31,  2002, approximately 315,000 shares were
available for granting future options.

Outstanding  incentive  stock  options  at  December 31, 2002, 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, 2002, must be exercised
within  five  to six years and certain nonqualified options may not be exercised
within one year of the date of grant.

Transactions  in  stock  options  under  these  plans are summarized as follows:
<TABLE>
<CAPTION>
                                                SHARES
                                                UNDER
                                                OPTION             PRICE RANGE
                                              ---------           -------------
<S>                                           <C>                 <C>
Outstanding at December 31, 1999                265,000           $5.75-$10.63
  Granted                                        10,000           $9.13
  Exercised                                     (29,700)          $5.75-$6.75
  Canceled                                       (5,000)          $7.38-$9.13
                                              ---------
Outstanding at December 31, 2000                240,300           $5.75-$10.63
  Granted                                         8,000           $8.25
  Exercised                                    (142,300)          $5.75-$7.38
  Canceled                                       (1,000)          $7.38
                                              ---------
Outstanding at December 31, 2001                105,000           $6.00-$10.63
  Granted                                       308,000           $20.79-$23.22
  Exercised                                     (39,000)          $6.00-$10.63
                                              ---------
Outstanding at December 31, 2002                374,000           $8.25-$23.22
                                              =========
Options exercisable at December 31, 2002        125,000
                                              =========
</TABLE>

The following is a summary of stock options outstanding as of December 31, 2002:
<TABLE>
<CAPTION>
                                                     WEIGHTED
                                  OPTION              AVERAGE
                   OPTIONS       EXERCISE            REMAINING         OPTIONS
                 OUTSTANDING      PRICE                YEARS         EXERCISABLE
                 ---------------------------------------------------------------
<S>              <C>             <C>                 <C>             <C>
                     1,000       $  10.63               1.2                1,000
                    30,000       $   9.25               1.5               30,000
                     5,000       $   8.63               2.2                5,000
                    14,000       $  10.25               2.6                5,000
                     8,000       $   9.13               3.2                8,000
                     8,000       $   8.25               4.2                8,000
                     8,000       $  20.79               5.3                8,000
                   300,000       $  23.22               9.8               60,000
                 ---------                                             ---------
                   374,000                                               125,000
                 =========                                             =========
</TABLE>

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>
                                                         2002           2001           2000
                                                       -------        -------        -------
                                                       (in thousands, except per share data)
<S>                                                    <C>            <C>            <C>
Net income                                             $16,593        $10,071        $ 8,658
Add: Stock-based employee compensation
  included in reported net income, net of
  related tax effects                                       76
Deduct:  Total stock-based employee compensation
  expense determined under fair value based
  method for all awards, net of related tax effects       (445)           (48)          (116)
                                                       -------        -------        -------
Pro forma net income                                   $16,224        $10,023        $ 8,542
                                                       =======        =======        =======

Earnings per share:
  Basic - as reported                                  $  1.56        $  1.18        $  1.02
  Basic - pro forma                                    $  1.52        $  1.18        $  1.01

  Diluted - as reported                                $  1.55        $  1.18        $  1.02
  Diluted - pro forma                                  $  1.51        $  1.18        $  1.00
</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:
<TABLE>
<CAPTION>
                                      2002                  2001                  2000
                                 -----------------------------------------------------------
<S>                              <C>                   <C>                   <C>
  Dividend yield                        0 %                   0 %                   0 %
  Volatility range               35.00% - 61.27%       31.63% - 76.64%       31.63% - 76.64%
  Risk-free rate range            3.97% - 6.01%         4.74% - 7.02%         4.74% - 7.02%
  Expected life                      5 years               5 years               5 years
</TABLE>

10. 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, 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
  Options issued                                       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
  Options issued                                       28
                                    --------       ------        -------
Diluted earnings per share data     $ 10,071        8,550        $  1.18
                                    ========       ======        =======
</TABLE>

<TABLE>
<CAPTION>
                                    FOR THE YEAR ENDED DECEMBER 31, 2000
                                    (in thousands, except per share date)
                                    ------------------------------------
                                       NET                     PER SHARE
                                     INCOME        SHARES        AMOUNT
                                    ------------------------------------
<S>                                 <C>            <C>         <C>
Basic earnings per share data -     $  8,658        8,455        $  1.02
  Options issued                                       63
                                    --------       ------        -------
Diluted earnings per share data     $  8,658        8,518        $  1.02
                                    ========       ======        =======
</TABLE>


11. 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
$250,000, $225,000, and $255,000 in 2002, 2001 and 2000, respectively.

12. 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.

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.

13. 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.  Such  amounts  are  not  presented  in this note due to their required
presentation elsewhere.

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.

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  long-term  debt  at  December  31, 2002, is $1,192,000 and the fair value of
long-term debt is estimated to be $1,217,000.

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

The  carrying  value of all hedging financial instruments is equal to their fair
value and is the amount at which the hedges could be settled, based on estimates
determined  by  dealers.  Hedging  liabilities  total $2,425,000 at December 31,
2002.

14. 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,  2002,  the  net  after  tax  deferred  hedging  loss  in  accumulated other
comprehensive  loss  was  approximately  $1,005,000.  Ineffectiveness related to
these hedges was not significant.

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 sheet at December 31, 2002.

15. 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  shareholder,  and  recognized  $354,241, $58,030, and $80,377 in
operating  revenue  and $1,103,062, $905,570, and $495,841 in operating expenses
in  2002, 2001, and 2000, respectively.  At December 31, 2002 and 2001, $479,342
and  $143,527,  respectively,  was  owed  to the Company for these services.  At
December 31, 2002 and 2001, $494,454 and $84,006, respectively, was due to these
affiliates  for  these  services.  In  the  opinion of management, related party
transactions are made on substantially the same terms as those prevailing at the
time  for comparable transactions with unrelated persons and do not involve more
than the normal risk of collectibility.

16. ACQUISITION (UNAUDITED)
---------------------------
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 $1.6 million
utilizing existing cash.

17. QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)
-------------------------------------------------------
The tables below present quarterly financial information for 2002 and 2001:
<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>

<TABLE>
<CAPTION>
                                                                2001
                                                         THREE MONTHS ENDED
                                        MARCH 31       JUNE 30    SEPTEMBER 30   DECEMBER 31
                                       -----------------------------------------------------
                                                (in thousands, except per share data)
<S>                                    <C>            <C>         <C>            <C>
  Operating revenues                   $ 58,406       $ 57,462       $ 53,662       $ 56,264
  Operating expenses                     52,861         51,502         49,192         50,970
                                       --------       --------       --------       --------

  Operating income                        5,545          5,960          4,470          5,294
  Interest expense                        1,147          1,159          1,148          1,023
  Income taxes                            1,759          1,916          1,320          1,726
                                       --------       --------       --------       --------
  Net income                           $  2,639       $  2,885       $  2,002       $  2,545
                                       ========       ========       ========       ========

  Net income per common share:
    Basic                              $   0.31       $   0.34       $   0.23       $   0.30
                                       ========       ========       ========       ========
    Diluted                            $   0.31       $   0.34       $   0.23       $   0.30
                                       ========       ========       ========       ========
  Average common shares outstanding:
    Basic                                 8,474          8,484          8,525          8,607
                                       ========       ========       ========       ========
    Diluted                               8,519          8,526          8,537          8,617
                                       ========       ========       ========       ========
</TABLE>


ITEM 9.  CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
------------------------------------------------------------------------
         FINANCIAL DISCLOSURE.
         ---------------------
On  July 9, 2002, P.A.M. Transportation Services, Inc. (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.

                                    PART III

Except  as to information with respect to executive officers, which is contained
in  a  separate heading under Item 1 to this Form 10-K, the information required
by Part III of Form 10-K is, 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 29, 2003.  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 is incorporated by reference from the
section  entitled  "Election  of  Directors"  contained  in the proxy statement.

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, 2002, 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       374,000                     $20.71                     318,000

  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.  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  with  the Securities Exchange Act of 1934 is recorded,
processed,  summarized  and  reported  within  the  time  periods  specified  in
Securities  and  Exchange  Commission rules and forms.  Within the 90-day period
prior  to  the  filing  of  this report, an evaluation was carried out 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 are effective.

CEO AND CFO CERTIFICATES

Immediately  following the Signatures section of this report on Form 10-K, there
are two certifications, one each by the CEO and the CFO. They are required under
Section  302  of  the  Sarbanes-Oxley  Act  of  2002  (the  "Section  302
Certifications").  This  Item 14, Controls and Procedures, is referred to in the
Section  302  Certifications  and should be read in conjunction with the Section
302 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.

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 to ensure 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.

We  have  also reviewed our system of Internal Controls and our CEO and CFO have
concluded  that  subsequent  to the date of their evaluation, there have been no
significant  changes  in  our  Internal  Controls or in other factors that could
significantly affect Internal Controls.

                                     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, 2002 and 2001
             Consolidated Statements of Income - Years ended December 31, 2002,
             2001  and  2000
             Consolidated Statements of Shareholders' Equity - Years ended
             December 31, 2002, 2001 and 2000
             Consolidated Statements of Cash Flows - Years ended December 31,
             2002, 2001 and 2000
             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  and  certifications 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  November 6, 2002
             regarding a press release issued to announce our third quarter 2002
             results.  No other reports on Form 8-K were filed during the fourth
             quarter ended December 31, 2002.


                                   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 28, 2003         By:  /s/ Robert W. Weaver
                                    --------------------------
                                    ROBERT W. WEAVER
                                    President and Chief Executive Officer
                                    (principal executive officer)

Dated:  March 28, 2003         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 28, 2003         By:  /s/ Robert W. Weaver
                                    --------------------------
                                    ROBERT W. WEAVER, President and Chief
                                    Executive Officer, Director

Dated:  March 28, 2003         By:  /s/ Matthew T. Moroun
                                    --------------------------
                                    MATTHEW T. MOROUN, Director

Dated:  March 28, 2003         By:  /s/ Daniel C. Sullivan
                                    --------------------------
                                    DANIEL C. SULLIVAN, Director

Dated:  March 28, 2003         By:  /s/ Charles F. Wilkins
                                    --------------------------
                                    CHARLES F. WILKINS, Director

Dated:  March 28, 2003         By:  /s/ Frederick P. Calderone
                                    --------------------------
                                    FREDERICK P. CALDERONE, Director

Dated:  March 28, 2003         By:  /s/ Manuel J. Moroun
                                    --------------------------
                                    MANUEL J. MOROUN, Director

Dated:  March 28, 2003         By:  /s/ Thomas H. Cooke
                                    --------------------------
                                    THOMAS H. COOKE, Director

Dated:  March 28, 2003         By:  /s/ Frank L. Conner
                                    --------------------------
                                    FRANK L. CONNER, Director



                    Certification of Chief Executive Officer
            Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002


I, ROBER W. WEAVER, President and Chief Executive Officer, certify that:

(1)  I  have  reviewed  this annual report on Form 10-K of P.A.M. TRANSPORTATION
SERVICES, INC., a Delaware corporation (the "registrant");

(2)  Based  on  my  knowledge,  this  annual  report does not contain any untrue
statement  of a material fact or omit to state a material fact necessary to make
the  statements  made, in light of the circumstances under which such statements
were  made,  not  misleading  with  respect to the period covered by this annual
report;

(3)  Based  on  my  knowledge,  the  financial  statements,  and other financial
information  included  in  this  annual  report,  fairly present in all material
respects  the  financial  condition, results of operations and cash flows of the
registrant  as  of,  and  for,  the  periods  presented  in  this annual report;

(4)  The  registrant's  other  certifying  officer  and  I  are  responsible for
establishing  and  maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:

      (a)  designed  such  disclosure  controls  and  procedures  to ensure that
      material  information  relating  to  the  registrant,  including  its
      consolidated  subsidiaries,  is  made  known  to us by others within those
      entities,  particularly  during  the period in which this annual report is
      being prepared;

      (b)  evaluated  the  effectiveness of the registrant's disclosure controls
      and  procedures  as  of  a date within 90 days prior to the filing date of
      this annual report (the "Evaluation Date"); and

      (c)  presented  in  this  annual  report  our  conclusions  about  the
      effectiveness  of  the  disclosure  controls  and  procedures based on our
      evaluation as of the Evaluation Date;

(5) The registrant's other certifying officer and I have disclosed, based on our
most  recent evaluation, to the registrant's auditors and the audit committee of
the  registrant's  board  of  directors  (or  persons  performing the equivalent
functions):

      (a)  all  significant  deficiencies in the design or operation of internal
      controls  which could adversely affect the registrant's ability to record,
      process,  summarize  and report financial data and have identified for the
      registrant's auditors any material weaknesses in internal controls; and

      (b)  any fraud, whether or not material, that involves management or other
      employees  who  have  a  significant  role  in  the  registrant's internal
      controls; and

(6)  The  registrant's  other  certifying  officer  and I have indicated in this
annual report whether or not there were significant changes in internal controls
or in other factors that could significantly affect internal controls subsequent
to the date of our most recent evaluation, including any corrective actions with
regard to significant deficiencies and material weaknesses.

Date:  March 28, 2003

                           By:  /s/ Robert W. Weaver
                                ------------------------------
                                Robert W. Weaver
                                President and Chief Executive Officer
                                (principal executive officer)



                    Certification of Chief Financial Officer
            Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002


I, LARRY J. GODDARD, Chief Financial Officer, certify that:

(1)  I  have  reviewed  this annual report on Form 10-K of P.A.M. TRANSPORTATION
SERVICES, INC., a Delaware corporation (the "registrant");

(2)  Based  on  my  knowledge,  this  annual  report does not contain any untrue
statement  of a material fact or omit to state a material fact necessary to make
the  statements  made, in light of the circumstances under which such statements
were  made,  not  misleading  with  respect to the period covered by this annual
report;

(3)  Based  on  my  knowledge,  the  financial  statements,  and other financial
information  included  in  this  annual  report,  fairly present in all material
respects  the  financial  condition, results of operations and cash flows of the
registrant  as  of,  and  for,  the  periods  presented  in  this annual report;

(4)  The  registrant's  other  certifying  officer  and  I  are  responsible for
establishing  and  maintaining disclosure controls and procedures (as defined in
Exchange  Act  Rules  13a-14  and  15d-14)  for  the  registrant  and  we  have:

      (a)  designed  such  disclosure  controls  and  procedures  to ensure that
      material  information  relating  to  the  registrant,  including  its
      consolidated  subsidiaries,  is  made  known  to us by others within those
      entities,  particularly  during  the period in which this annual report is
      being prepared;

      (b)  evaluated  the  effectiveness of the registrant's disclosure controls
      and  procedures  as  of  a date within 90 days prior to the filing date of
      this annual report (the "Evaluation Date"); and

      (c)  presented  in  this  annual  report  our  conclusions  about  the
      effectiveness  of  the  disclosure  controls  and  procedures based on our
      evaluation as of the Evaluation Date;

(5) The registrant's other certifying officer and I have disclosed, based on our
most  recent evaluation, to the registrant's auditors and the audit committee of
the  registrant's  board  of  directors  (or  persons  performing the equivalent
functions):

      (a)  all  significant  deficiencies in the design or operation of internal
      controls  which could adversely affect the registrant's ability to record,
      process,  summarize  and report financial data and have identified for the
      registrant's  auditors  any  material weaknesses in internal controls; and

      (b)  any fraud, whether or not material, that involves management or other
      employees  who  have  a  significant  role  in  the  registrant's internal
      controls; and

(6)  The  registrant's  other  certifying  officer  and I have indicated in this
annual report whether or not there were significant changes in internal controls
or in other factors that could significantly affect internal controls subsequent
to the date of our most recent evaluation, including any corrective actions with
regard to significant deficiencies and material weaknesses.

Date:  March 28, 2003

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


                                  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)

*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

 99.1       -  Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley
               Act of 2002

 99.2       -  Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley
               Act of 2002
</TABLE>