PAMT CORP 10-K

Item 8. Financial Statements and Supplementary Data.   The following statements are filed with this report:   Report of Independent Registered Public Accounting Firm – Grant Thornton LLP Consolidated Balance Sheets - December 31, 2020 and 2019 Consolidated Statements of Operations - Years ended December 31, 2020, 2019 and 2018 Consolidated Statements of Comprehensive Income - Years ended December 31, 2020, 2019 and 2018 Consolidated Statements of Stockholders’ Equity - Years ended December 31, 2019, 2018 and 2017 Consolidated Statements of Cash Flows - Years ended December 31, 2020, 2019 and 2018 Notes to Consolidated Financial Statements   - 33 - Table of Contents   REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM   Board of Directors and Stockholders P.A.M. Transportation Services, Inc.   Opinion on the financial statements We have audited the accompanying consolidated balance sheets of P.A.M. Transportation Services, Inc. (a Delaware corporation) and subsidiaries (the “Company”) as of December 31, 2020 and 2019, the related consolidated statements of operations, comprehensive income, stockholders’ equity, and cash flows for each of the three years in the period ended December 31, 2020, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2020 and 2019, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2020, in conformity with accounting principles generally accepted in the United States of America.   We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the Company’s internal control over financial reporting as of December 31, 2020, based on criteria established in the 2013 Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”), and our report dated March 5, 2021 expressed an unqualified opinion.   Basis for opinion These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.   We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.   Critical audit matter The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.   Claims Liabilities As described further in Note 6 to the consolidated financial statements, the Company is self-insured for a portion of its risk related to auto liability and workers’ compensation. Self-insurance results when the Company insures itself by maintaining funds to cover possible losses rather than by purchasing an insurance policy. The Company accrues for the cost of the self-insured portion of unpaid claims by evaluating the nature and severity of individual claims and by estimating future claims development based upon historical development trends. The actual cost to settle self-insured claim liabilities may differ from the Company’s reserve estimates due to legal costs, claims that have been incurred but not reported, and various other uncertainties.   - 34 - Table of Contents   We identified the estimation of auto liability and workers’ compensation claims accruals subject to exposure at claim dollar value layers ranging from $1.0 to $2.0 million depending on the specific coverages for auto liability, workers' compensation claims subject to self-insurer retention of $0.5 million, as a critical audit matter. Auto liability and workers’ compensation unpaid claim liabilities are determined by projecting the estimated loss related to a claim, less actual costs paid to date. These estimates rely on the assumption that historical claim patterns are an accurate representation for future claims that have been incurred but not completely paid. The principal considerations for assessing auto liability and workers’ compensation claims as a critical audit matter are the high level of estimation uncertainty related to determining the severity of these types of claims, as well as the inherent subjectivity in management’s judgment in estimating the total costs to settle or dispose of these claims.   Our audit procedures related to this critical audit matter included the following, among others:     • We tested the design and operating effectiveness of controls over auto liability and workers’ compensation claims, including the completeness and accuracy of claim expenses and payments.     • We tested management’s process for determining the auto liability and workers’ compensation accrual, including evaluating the reasonableness of the methods and assumptions used in estimating the ultimate claim losses with the assistance of an internal specialist.     • We tested the claims data used in the reserve calculation by inspecting source documents to test key attributes of the claims data.     /s/ GRANT THORNTON LLP   We have served as the Company’s auditor since 2005.   Tulsa, Oklahoma March 5, 2021   - 35 - Table of Contents     P.A.M. TRANSPORTATION SERVICES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2020 AND 2019 (in thousands, except share and per share data)     ASSETS   2020     2019                     CURRENT ASSETS:                 Cash and cash equivalents   $ 337     $ 318   Accounts receivable—net:                 Trade, less current estimated credit loss of $3,482 and $2,952 , respectively     77,731       61,784   Other     5,127       3,769   Inventories     1,345       1,327   Prepaid expenses and deposits     10,172       8,669   Marketable equity securities     27,941       29,521   Income taxes refundable     868       504                     Total current assets     123,521       105,892                     PROPERTY AND EQUIPMENT:                 Land     18,486       7,246   Structures and improvements     32,275       20,204   Revenue equipment     592,476       524,527   Office furniture and equipment     10,439       11,185                     Total property and equipment     653,676       563,162                     Accumulated depreciation     ( 202,851 )     ( 175,887 )                   Net property and equipment     450,825       387,275                     OTHER ASSETS     4,246       4,842                     TOTAL ASSETS   $ 578,592     $ 498,009     (Continued)   See notes to consolidated financial statements.   - 36 - Table of Contents   CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2020 AND 2019 (in thousands, except share and per share data)         2020     2019   LIABILITIES AND STOCKHOLDERS' EQUITY                                   CURRENT LIABILITIES:                 Accounts payable   $ 46,102     $ 16,597   Accrued expenses and other liabilities     26,601       40,610   Current maturities of long-term debt     57,776       67,637                     Total current liabilities     130,479       124,845                     Long-term debt—less current portion     228,330       174,187   Deferred income taxes     68,883       63,522   Other long-term liabilities     919       1,481                     Total liabilities     428,611       364,034                     COMMITMENTS AND CONTINGENCIES (Note 16)                                       STOCKHOLDERS’ EQUITY                 Preferred stock, $.01 par value, 10,000,000 shares authorized; none issued     -       -   Common stock, $.01 par value, 40,000,000 shares authorized; 11,695,719 and 11,656,160 shares issued; 5,727,895 and 5,748,897 shares outstanding at December 31, 2020 and 2019, respectively     117       117   Additional paid-in capital     84,148       83,688   Accumulated Other Comprehensive Income     -       -   Treasury stock, at cost; 5,967,824 and 5,907,263 shares at December 31, 2020 and 2019, respectively     ( 159,118 )     ( 156,837 ) Retained earnings     224,834       207,007                     Total stockholders’ equity     149,981       133,975                     TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY   $ 578,592     $ 498,009     (Concluded) See notes to consolidated financial statements.   - 37 - Table of Contents     P.A.M. TRANSPORTATION SERVICES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS YEARS ENDED DECEMBER 31, 2020, 2019 AND 2018 (in thousands, except per share data)       2020     2019     2018   OPERATING REVENUES:                         Revenue, before fuel surcharge   $ 438,987     $ 439,511     $ 445,855   Fuel surcharge     47,838       74,666       87,406                             Total operating revenues     486,825       514,177       533,261                             OPERATING EXPENSES AND COSTS:                         Salaries, wages and benefits     124,098       129,738       119,819   Operating supplies and expenses     84,275       98,420       93,130   Rents and purchased transportation     165,984       168,399       201,455   Depreciation     56,168       55,107       49,387   Insurance and claims     8,866       35,622       17,191   Other     13,138       13,761       11,983   Loss (gain) on disposition of equipment     373       583       ( 1,306 )                           Total operating expenses and costs     452,902       501,630       491,659                             OPERATING INCOME     33,923       12,547       41,602                             NON-OPERATING (EXPENSE) INCOME     ( 1,699 )     6,222       ( 4,016 ) INTEREST EXPENSE     ( 8,815 )     ( 8,654 )     ( 6,245 )                           INCOME BEFORE INCOME TAXES     23,409       10,115       31,341                             FEDERAL & STATE INCOME TAX EXPENSE:                         Current     220       590       141   Deferred     5,362       1,625       7,206                             Total federal & state income tax expense     5,582       2,215       7,347                             NET INCOME   $ 17,827     $ 7,900     $ 23,994                             EARNINGS PER COMMON SHARE:                         Basic   $ 3.10     $ 1.35     $ 3.94   Diluted   $ 3.09     $ 1.34     $ 3.90                             AVERAGE COMMON SHARES OUTSTANDING:                         Basic     5,752       5,832       6,083   Diluted     5,768       5,880       6,159     See notes to consolidated financial statements.   - 38 - Table of Contents     P.A.M. TRANSPORTATION SERVICES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME YEARS ENDED DECEMBER 31, 2020, 2019 AND 2018 (in thousands)       2020     2019     2018                             NET INCOME   $ 17,827     $ 7,900     $ 23,994                             Other comprehensive income, net of tax:                                                   Other comprehensive income (1)     -       -       -                             COMPREHENSIVE INCOME   $ 17,827     $ 7,900     $ 23,994     _______________ (1) Other comprehensive income for 2020, 2019 and 2018 was $0, $0, and $0, respectively.   See notes to consolidated financial statements.   - 39 - Table of Contents     P.A.M. TRANSPORTATION SERVICES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF STOCKHOLDERS ’  EQUITY YEARS ENDED DECEMBER 31, 2020, 2019 AND 2018 (in thousands, except per share data)     Common Stock Shares / Amount     Additional Paid-In Capital     Accumulated Other Comprehensive Income     Treasury Stock     Retained Earnings     Total                                                             BALANCE— January 1, 2018     6,161     $ 115     $ 81,559     $ 7,444     $ ( 129,183 )   $ 167,669     $ 127,604                                                             Net income                                             23,994       23,994   Exercise of stock options-shares issued including tax benefits     45       1       485                               486   Restricted stock issued     38                                                   Treasury stock repurchases     ( 287 )                             ( 13,369 )             ( 13,369 ) Share-based compensation                     732                               732   Cumulative effect adjustment – ASU 2016-01                             ( 7,444 )             7,444       -                                                             BALANCE— December 31, 2018     5,957     $ 116     $ 82,776     $ 0     $ ( 142,552 )   $ 199,107     $ 139,447                                                             Net income                                           7,900       7,900   Restricted stock issued     44       1                                       1   Treasury stock repurchases     ( 252 )                             ( 14,285 )             ( 14,285 ) Share-based compensation                     912                               912                                                             BALANCE— December 31, 2019     5,749     $ 117     $ 83,688     $ 0     $ ( 156,837 )   $ 207,007     $ 133,975                                                             Net income                                             17,827       17,827   Restricted stock issued     40                                                   Treasury stock repurchases     ( 61 )                             ( 2,281 )             ( 2,281 ) Share-based compensation                     460                               460                                                             BALANCE— December 31, 2020     5,728     $ 117     $ 84,148     $ 0     $ ( 159,118 )   $ 224,834     $ 149,981     See notes to consolidated financial statements.   - 40 - Table of Contents     P.A.M. TRANSPORTATION SERVICES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 2020, 2019 AND 2018 (in thousands)     2020     2019     2018   OPERATING ACTIVITIES:                         Net income   $ 17,827     $ 7,900     $ 23,994   Adjustments to reconcile net income to net cash provided by operating activities:                         Depreciation     56,168       55,107       49,387   Bad debt expense     530       728       889   Stock compensation—net of excess tax benefits     460       912       732   Provision for deferred income taxes     5,362       1,625       7,206   Recognized loss (gain) on marketable equity securities     3,463       ( 4,753 )     5,388   Loss (gain) on sale or disposal of equipment     373       583       ( 1,306 ) Changes in operating assets and liabilities:                         Accounts receivable     ( 17,835 )     884       ( 5,970 ) Prepaid expenses, deposits, inventories, and other assets     ( 1,780 )     1,865       ( 137 ) Income taxes refundable     ( 60 )     1,372       ( 76 ) Trade accounts payable     20,880       ( 2,233 )     1,731   Accrued expenses and other liabilities     ( 17,798 )     20,307       509   Net cash provided by operating activities     67,590       84,297       82,347                             INVESTING ACTIVITIES:                         Purchases of property and equipment     ( 48,226 )     ( 79,354 )     ( 73,882 ) Proceeds from disposition of equipment     17,418       14,263       24,904   Sales of marketable equity securities     2,039       2,984       1,045   Purchases of marketable equity securities, net of return of capital     ( 3,923 )     ( 203 )     ( 7,318 ) Net cash used in investing activities     ( 32,692 )     ( 62,310 )     ( 55,251 )                           FINANCING ACTIVITIES:                         Borrowings under line of credit     517,668       590,902       615,612   Repayments under line of credit     ( 516,468 )     ( 584,047 )     ( 605,419 ) Borrowings of long-term debt     26,837       60,203       52,717   Repayments of long-term debt     ( 64,411 )     ( 70,917 )     ( 82,442 ) Borrowings under margin account     7,068       527       7,584   Repayments under margin account     ( 3,292 )     ( 4,334 )     ( 2,206 ) Repurchases of treasury stock     ( 2,281 )     ( 14,285 )     ( 13,369 ) Proceeds from exercise of stock options     -       -       485   Net cash used in financing activities     ( 34,879 )     ( 21,951 )     ( 27,038 )                           NET INCREASE IN CASH AND CASH EQUIVALENTS     19       36       58                             CASH AND CASH EQUIVALENTS—Beginning of year     318       282       224   CASH AND CASH EQUIVALENTS—End of year   $ 337     $ 318     $ 282                             SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION—                         Cash paid during the period for:                         Interest   $ 8,798     $ 8,612     $ 6,095   Income taxes   $ 281     $ 671     $ 217                             NONCASH INVESTING AND FINANCING ACTIVITIES—                         Purchases of revenue equipment included in accounts payable   $ 9,050     $ 366     $ 1,597     See notes to consolidated financial statements.   - 41 - Table of Contents   P.A.M. TRANSPORTATION SERVICES, INC. AND SUBSIDIARIES   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2020, 2019 AND 2018     1. ACCOUNTING POLICIES   Description of Business and Principles of Consolidation –P.A.M. Transportation Services, Inc. (the “Company”), through its subsidiaries, operates as a truckload transportation and logistics company.   The consolidated financial statements include the accounts of the Company and its wholly owned operating subsidiaries: P.A.M. Transport, Inc., P.A.M. Cartage Carriers, LLC, Overdrive Leasing, LLC, Choctaw Express, LLC, Decker Transport Co., LLC, T.T.X., LLC, Transcend Logistics, Inc., and East Coast Transport and Logistics, LLC. The following subsidiaries were inactive during all periods presented: P.A.M. International, Inc., P.A.M. Logistics Services, Inc., Choctaw Brokerage, Inc., S & L Logistics, Inc. and P.A.M. Mexico Holdings, LLC.   Use of Estimates –The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of any contingent assets and liabilities at the financial statement date and reported amounts of revenue and expenses during the reporting period. The Company periodically reviews these estimates and assumptions. The most significant estimates that affect our financial statements include accrued liabilities for insurance claims, legal reserves, useful lives and salvage values for property and equipment, current expected credit losses, and estimates for income taxes. The Company's estimates were based on its historical experience and various other assumptions that management believes to be reasonable under the circumstances. Actual results could differ from those estimates.   Cash and Cash Equivalents –The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. At times cash held at banks may exceed FDIC insured limits.   Accounts Receivable and Current Expected Credit Losses –Accounts receivable are presented in the Company’s consolidated financial statements net of current expected credit losses. Management estimates current expected credit losses based upon an evaluation of the aging of our customer receivables and historical write-offs, as well as other trends and factors surrounding the credit risk of specific customers. The Company continually updates the history it uses to make these estimates so as to reflect the most recent trends, factors and other information available. In order to gather information regarding these trends and factors, the Company also performs ongoing credit evaluations of its customers. Customer receivables are considered to be past due when payment has not been received by the invoice due date. Write-offs occur when management determines an account to be uncollectible and could differ from the current expected credit losses estimate as a result of a number of factors, including unanticipated changes in the overall economic environment or factors and risks surrounding a particular customer. Management believes its methodology for estimating current expected credit losses to be reliable and consistent with prior periods. However, additional credit losses may be incurred if the financial condition of our customers were to deteriorate, and could have a material effect on the Company’s consolidated financial statements in future periods.   Bank Overdrafts –The Company classifies bank overdrafts in current liabilities as accounts payable and does not offset other positive bank account balances located at the same or other financial institutions. Bank overdrafts generally represent checks written that have not yet cleared the Company’s bank accounts. The majority of the Company’s bank accounts are zero balance accounts that are funded at the time items clear against the account by drawings against a line of credit; therefore, the outstanding checks represent bank overdrafts. Because the recipients of these checks have generally not yet received payment, the Company continues to classify bank overdrafts as accounts payable. Bank overdrafts are classified as changes in accounts payable in the cash flows from operating activities section of the Company’s Consolidated Statement of Cash Flows. Bank overdrafts as of December 31, 2020 and 2019 were approximately $ 7,638,000 and $ 2,572,000 , respectively.   - 42 - Table of Contents   Accounts Receivable Other –The components of accounts receivable other consist primarily of amounts representing company driver advances, independent contractor advances, and equipment manufacturer warranties. Advances receivable from company drivers as of December 31, 2020 and 2019, were approximately $ 136,000 and $ 211,000 , respectively. Accounts receivable from independent contractors as of December 31, 2020 and 2019, were approximately $ 614,000 and $ 1,381,000 , respectively. Independent contractors are allowed to purchase items such as fuel, repairs and tolls on Company accounts in order to share in favorable pricing negotiated by the Company. Independent contractors and trip lease carriers are also allowed to receive advances for a portion of the revenue that they expect to receive for loads that they transport for the Company.   Marketable Equity Securities – The Company’s investment in marketable equity securities is accounted for in accordance with ASC Topic 321, (“ASC Topic 321” ), Investments - Equity Securities. ASC Topic 321 requires companies to measure equity investments at fair value, with changes in fair value recognized in net income. The Company’s investments in marketable securities consist of equity securities with readily determinable fair values. The cost of securities sold is based on the specific identification method. Realized and unrealized gains and losses, interest and dividends on marketable equity securities are included in non-operating income (expense) in our consolidated statements of operations.   For additional information with respect to marketable equity securities, see Note 4 – Marketable Equity Securities.   Impairment of Long-Lived Assets –The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of a long-lived asset may not be recoverable. An impairment loss would be recognized if the carrying amount of the long-lived asset is not recoverable, and it exceeds its fair value. For long-lived assets classified as held and used, if the carrying value of the long-lived asset exceeds the sum of the future net undiscounted cash flows, it is not recoverable. No impairment losses were recorded during 2020 or 2019.   Property and Equipment –Property and equipment is recorded at historical cost, less accumulated depreciation. For financial reporting purposes, the cost of such property is depreciated principally by the straight-line method. For tax reporting purposes, accelerated depreciation or applicable cost recovery methods are used. Depreciation is recognized over the estimated asset life, considering the estimated salvage value of the asset. Such salvage values are based on estimates using expected market values for used equipment and the estimated time of disposal which in many cases include guaranteed residual values by the manufacturers. Gains and losses are reflected in the year of disposal. The following is a table reflecting estimated ranges of asset useful lives by major class of depreciable assets:   Asset Class   Estimated Asset Life (in years)               Service vehicles   3 - 5   Office furniture and equipment   3 - 7   Revenue equipment   3 - 8   Structures and improvements   5 - 40     The Company’s management periodically evaluates whether changes to estimated useful lives and/or salvage values are necessary to ensure its estimates accurately reflect the economic use of the assets. During 2020 and 2019, management determined that an adjustment to the estimated useful lives or salvage values of trucks or trailers was not necessary based on such an evaluation.   Inventory –Inventories consist primarily of revenue equipment parts, tires, supplies, and fuel. Inventories are carried at the lower of cost or market with cost determined using the first in, first out method.   Prepaid Tires –Tires purchased with revenue equipment are capitalized as a cost of the related equipment. Replacement tires are included in prepaid expenses and deposits and are amortized over a 24 -month period. Amounts paid for the recapping of tires are expensed when incurred.   Advertising Expense –Advertising costs are expensed as incurred and totaled approximately $ 1,102,000 , $ 1,269,000 and $ 1,234,000 for the years ended December 31, 2020, 2019 and 2018, respectively.   - 43 - Table of Contents   Repairs and Maintenance –Repairs and maintenance costs are expensed as incurred.   Self-Insurance Liability –A liability is recognized for known health, workers’ compensation, cargo damage, property damage, and auto liability damage claims. An estimate of the incurred but not reported claims for each type of liability is made based on historical claims made, estimated frequency of occurrence, and considering changing factors that contribute to the overall cost of insurance. See Note 6 – Claims Liabilities for more information regarding insurance and claims liability.   Income Taxes –The Company applies the asset and liability method of accounting for income taxes, under which deferred taxes are determined based on the temporary differences between the financial statement and tax basis of assets and liabilities using tax rates expected to be in effect during the years in which the basis differences reverse. A valuation allowance is recorded when it is more likely than not that some or all of the deferred tax assets will not be realized. See Note 12 – Federal and State Income Taxes for more information regarding income taxes.   The application of income tax law to multi-jurisdictional operations such as those performed by the Company is inherently complex. Laws and regulations in this area are voluminous and often ambiguous. As such, we may be required to make subjective assumptions and judgments regarding our income tax exposures. Interpretations of and guidance surrounding income tax laws and regulations may change over time which could cause changes in our assumptions and judgments that could materially affect amounts recognized in the consolidated financial statements.   We recognize the impact of tax positions in our financial statements. These tax positions must meet a more-likely-than- not recognition threshold to be recognized and tax positions that previously failed to meet the more-likely-than- not threshold are recognized in the first subsequent financial reporting period in which that threshold is met. Previously recognized tax positions that no longer meet the more-likely-than- not threshold are derecognized in the first subsequent financial reporting period in which that threshold is no longer met. We recognize potential accrued interest and penalties related to unrecognized tax benefits within the consolidated statements of income as income tax expense.   In determining whether a tax asset valuation allowance is necessary, management, in accordance with the provisions of ASC 740 - 10 - 30, weighs all available evidence, both positive and negative to determine whether, based on the weight of that evidence, a valuation allowance is necessary. If negative conditions exist which indicate a valuation allowance might be necessary, consideration is then given to what effect the future reversals of existing taxable temporary differences and the availability of tax strategies might have on future taxable income to determine the amount, if any, of the required valuation allowance. As of December 31, 2020 and 2019, management determined that the future reversals of existing taxable temporary differences and available tax strategies would generate sufficient future taxable income to realize its tax assets and therefore a valuation allowance was not necessary.   Revenue Recognition – Revenue is recognized over time as the freight progresses towards its destination and the transportation service obligation is fulfilled. For loads picked up during the reporting period, but delivered in a subsequent reporting period, revenue is allocated to each period based on the transit time in each period as a percentage of total transit time. There are no assets or liabilities recorded in conjunction with revenue recognized, other than accounts receivable and current expected credit losses.   Earnings Per Share –The Company computes basic earnings per share (“EPS”) by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted EPS includes the potential dilution that could occur from stock-based awards and other stock-based commitments using the treasury stock or the as if converted methods, as applicable. The difference between the Company's weighted-average shares outstanding and diluted shares outstanding is due to the dilutive effect of stock options for all periods presented. See Note 14 – Earnings per Share for more information regarding the computation of diluted EPS.   Fair Value Measurements –Certain financial assets and liabilities are measured at fair value within the financial statements on a recurring basis. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. For additional information with respect to fair value measurements, see Note 18 – Fair Value of Financial Instruments.   - 44 - Table of Contents   Reporting Segments –The Company's operations are all in the motor carrier segment and are aggregated into a single reporting segment in accordance with the aggregation criteria under United States generally accepted accounting principles (“GAAP”). The Company provides truckload transportation services as well as brokerage and logistics services to customers throughout the United States and portions of Canada and Mexico. Truckload transportation services revenues, excluding fuel surcharges, represented 76.9 %, 82.7 % and 80.0 % of total revenues, excluding fuel surcharges, for the twelve months ended December 31, 2020, 2019 and 2018, respectively. Remaining revenues, excluding fuel surcharges, for each respective year were generated by brokerage and logistics services.   Concentrations of Credit Risk –The Company performs ongoing credit evaluations and generally does not require collateral from its customers. The Company maintains reserves for potential credit losses. In view of the concentration of the Company’s revenues and accounts receivable among a limited number of customers within the automobile industry, the financial health of this industry is a factor in the Company’s overall evaluation of accounts receivable.   Subsequent Events – We have evaluated subsequent events for recognition and disclosure through the date these financial statements were filed with the United States Securities and Exchange Commission and concluded that no subsequent events or transactions have occurred that require recognition or disclosure in our financial statements.   Risks and Uncertainties (COVID- 19 ) – In March 2020, the World Health Organization declared the novel strain of coronavirus (“COVID- 19” ) a global pandemic, and the President of the United States declared the COVID- 19 outbreak a national emergency.  The rapid spread of the pandemic and the continuously evolving responses to combat it have had an increasingly negative impact on the global economy.  In view of the rapidly changing business environment, unprecedented market volatility and heightened degree of uncertainty resulting from COVID- 19, we are currently unable to fully determine its future impact on our business.  We continue to monitor the progression of the pandemic, further government responses and development of treatments and vaccines and the resulting potential effect on our financial position, results of operations, cash flows and liquidity.  These events could have an impact in future periods on certain estimates used in the preparation of our financial results, including, but not limited to impairment of goodwill, other intangible assets and other long-lived assets, income tax provision and recoverability of certain receivables.  Should the pandemic continue for an even further extended period of time, the impact on our operations could have a material adverse effect on our financial condition, results of operations, cash flows and liquidity.   Foreign Currency Transactions –The functional currency of the Company’s foreign branch office in Mexico is the U.S. dollar. The Company remeasures the monetary assets and liabilities of this branch office, which are maintained in the local currency ledgers, at the rates of exchange in effect at the end of the reporting period. Revenues and expenses recorded in the local currency during the period are remeasured using average exchange rates for each period. Non-monetary assets and liabilities are remeasured using historical rates. Any resulting exchange gain or loss from the remeasurement process is included in non-operating income (loss) in the Company’s consolidated statements of operations.   Recent Accounting Pronouncements – In June 2016, the FASB issued ASU No. 2016 - 13, (“ASU 2016 - 13” ), Accounting for Credit Losses (Topic 326 ). ASU 2016 - 13 requires the use of an “expected loss” model on certain types of financial instruments. The standard also amends the impairment model for available-for-sale debt securities and requires estimated credit losses to be recorded as allowances instead of reductions to the amortized cost of the securities. For smaller reporting companies, ASU  2016 - 13  is effective for fiscal years, and interim periods within those years, beginning after  December 15, 2022 ,  with early adoption permitted. The adoption of this guidance on  January 1, 2020  did not  have a material impact on the Company’s financial condition, results of operations, or cash flows.   - 45 - Table of Contents   In  March 2020,  the FASB issued Accounting Standards Update  No.   2020 - 04,  (“ASU  2020 - 04” ), Reference Rate Reform (Topic 848 ): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. ASU  2020 - 04  was issued to provide optional guidance for a limited period of time to ease the potential burden in accounting for reference rate reform on financial reporting. ASU  2020 - 04  is effective as of  March 12, 2020  through  December 31, 2022 .  The Company has evaluated the provisions of this standard and determined that it is applicable to our line of credit and investment margin account. The London Interbank Offered Rate (“LIBOR”) is the basis for interest charges on outstanding borrowings for both our line of credit and investment margin account. The scheduled discontinuation of LIBOR is  not  expected to materially alter any provisions of either of these debt instruments, except for the identification of a replacement reference rate. The Company has evaluated the new guidance and does  not  expect it to have a material impact on its financial condition, results of operations, or cash flows.     2. REVENUE RECOGNITION   The Company has a single performance obligation, to transport our customer’s freight from a specified origin to a specified destination. The Company has the discretion to choose to self-transport or to arrange for alternate transportation to fulfill the performance obligation. Where the Company decides to self-transport the freight, the Company classifies the service as truckload services, and where the Company arranges for alternate transportation of the freight, the Company classifies the service as brokerage and logistics services. In either case, the Company is paid a rate to transport freight from its origin location to a specified destination. Because the primary factors influencing revenue recognition, including performance obligation, customer base, and timing of revenue recognition are the same for both of its service categories, the Company utilizes the same revenue recognition method throughout its operations.   Company revenue is generated from freight transportation services performed utilizing heavy truck trailer combinations. While various ownership arrangements may exist for the equipment utilized to perform these services, including Company-owned or leased, owner-operator owned, and third -party carriers, revenue is generated from the same base of customers. Contracts with these customers establish rates for services performed, which are predominantly rates that will be paid to pick up, transport and drop off freight at various locations. In addition to transportation, revenue is also awarded for various accessorial services performed in conjunction with the base transportation service. The Company also has other revenue categories that are not discussed in this note or broken out in our consolidated statements of operations due to their immaterial amounts.   In fulfilling the Company’s obligation to transport freight from a specified origin to a specified destination, control of freight is transferred to us at the point it has been loaded into the driver’s trailer, the doors are sealed and the driver has signed a bill of lading, which is the basic transportation agreement that establishes the nature, quantity and condition of the freight loaded, responsibility for invoice payment, and pickup and delivery locations. Our revenue is generated, and our customer receives benefit, as the freight progresses towards delivery locations. In the event our customer cancels the shipment at some point prior to the final delivery location and re-consigns the shipment to an alternate delivery location, we are entitled to receive payment for services performed for the partial shipment. Shipments are generally conducted over a relatively short time span, generally one to three days; however, freight is sometimes stored temporarily in our trailer at one of our drop yard locations or at a location designated by a customer. Our revenue is categorized as either Freight Revenue or Fuel Surcharge Revenue, and both are earned by performing the same freight transportation services, as discussed further below.   Freight Revenue – revenue generated by the performance of the freight transportation service, including any accessorial service, provided to customers.   Fuel Surcharge Revenue – revenue designed to adjust freight revenue rates to an agreed upon base cost for diesel fuel. Diesel fuel prices can fluctuate widely during the term of a contract with a customer. At the point that freight revenue rates are negotiated with customers, a sliding scale is agreed upon that approximately adjusts diesel fuel costs to an agreed upon base amount. In general, as fuel prices increase, revenue from fuel surcharge increases, so that diesel fuel cost is adjusted to the approximate base amount agreed upon.   Revenue is recognized over time as the freight progresses towards its destination and the transportation service obligation is fulfilled. For loads picked up during the reporting period, but delivered in a subsequent reporting period, revenue is allocated to each period based on the transit time in each period as a percentage of total transit time. There are no assets or liabilities recorded in conjunction with revenue recognized, other than accounts receivable and current estimated credit losses.   - 46 - Table of Contents     3. TRADE ACCOUNTS RECEIVABLE   The Company's receivables result primarily from the sale of transportation and logistics services. The Company performs ongoing credit evaluations of its customers and generally does not require collateral for accounts receivable. Accounts receivable, which consist of both billed and unbilled receivables, are presented net of current estimated credit losses. Accounts outstanding longer than contractual payment terms are considered past due and are reviewed individually for collectability. Accounts receivable balances consist of the following components as of December 31, 2020 and 2019:       2020     2019       (in thousands)                     Billed   $ 68,584     $ 57,495   Unbilled     12,629       7,241   Current estimated credit losses     ( 3,482 )     ( 2,952 )                   Total accounts receivable—net   $ 77,731     $ 61,784     An analysis of changes in current estimated credit losses for the years ended December 31, 2020, 2019, and 2018 follows:       2020     2019     2018       (in thousands)                             Balance—beginning of year   $ 2,952     $ 2,224     $ 1,335   Provision for bad debts     530       728       889   Charge-offs     -       -       -   Recoveries     -       -       -   Balance—end of year   $ 3,482     $ 2,952     $ 2,224       4. MARKETABLE EQUITY SECURITIES   The Company accounts for its marketable securities in accordance with ASC Topic 321, Investments - Equity Securities. ASC Topic 321 requires companies to measure equity investments at fair value, with changes in fair value recognized in net income. The Company’s investments in marketable securities consist of equity securities with readily determinable fair values. The cost of securities sold is based on the specific identification method, and interest and dividends on securities are included in non-operating income (expense).   Marketable equity securities are carried at fair value, with changes in fair market value included in the determination of net income. The fair market value of marketable equity securities is determined based on quoted market prices in active markets. See Note 18 – Fair Value of Financial Instruments for additional information regarding the valuation of marketable equity securities.   The following table sets forth cost, market value and unrealized gain on equity securities classified as available-for-sale as of December 31, 2020 and 2019.       2020     2019       (in thousands)   Available-for-sale securities:                 Fair market value   $ 27,941     $ 29,521   Cost     25,860       24,156   Unrealized gain   $ 2,081     $ 5,365     - 47 - Table of Contents   The following table sets forth the gross unrealized gains and losses on the Company’s marketable securities as of December 31, 2020 and 2019.       2020     2019       (in thousands)   Available-for-sale securities:                 Gross unrealized gains   $ 7,048     $ 7,808   Gross unrealized losses     4,967       2,443   Net unrealized gains   $ 2,081     $ 5,365     For the years ended December 31, 2020, 2019 and 2018, the Company recognized dividends of approximately $ 1,266,000 , $ 1,309,000 , and $ 1,171,000 in non-operating income in its statements of operations, respectively.   The following table shows the Company’s net realized (losses) gains during 2020, 2019 and 2018 on certain marketable equity securities.       2020     2019     2018       (in thousands)   Realized (losses) gains:                         Sale proceeds   $ 2,039     $ 2,984     $ 1,044   Cost of securities sold     2,216       1,929       669                             Realized (losses) / gains   $ ( 177 )   $ 1,055     $ 375                             Realized (losses) / gains, net of taxes   $ ( 90 )   $ 815     $ 278     At December 31, 2020, the Company’s investments’ approximate fair value of securities in a loss position and related gross unrealized losses were $ 10,221,000 and $ 4,967,000 , respectively. At December 31, 2019, the Company’s investments’ approximate fair value of securities in a loss position and related gross unrealized losses were $ 8,587,000 and $ 2,443,000 , respectively.   The market value of the Company’s equity securities are periodically used as collateral against any outstanding margin account borrowings. As of December 31, 2020 and 2019, the Company had outstanding borrowings of $ 11,251,000 and $ 7,474,000 under its margin account, respectively, which is reflected in accrued expenses. The interest rates on margin account borrowings were 0.75 % and 2.40 % as of December 31, 2020 and 2019, respectively.   - 48 - Table of Contents     5. ACCRUED EXPENSES AND OTHER LIABILITIES   Accrued expenses and other liabilities at December 31 are summarized as follows:       2020     2019       (in thousands)                     Payroll   $ 1,621     $ 2,226   Accrued vacation     835       2,191   Taxes—other than income     6,881       2,719   Interest     301       284   Driver escrows     1,782       2,211   Margin account borrowings     11,251       7,474   Self-insurance claims     3,303       2,988   Legal reserves     -       19,901   Current portion of Right-of-Use asset     627       616                     Total accrued expenses and other liabilities   $ 26,601     $ 40,610     The Company’s accounts payable of $ 46,102,000 includes $ 9,050,000 in payables for purchases of revenue equipment.     6. CLAIMS LIABILITIES   The Company maintains cargo insurance coverage to protect it from certain business risks. This policy has a per occurrence deductible of $ 10,000 .   On September 1, 2020, the Company elected to become self-insured for certain layers of auto liability claims in excess of $ 2.0 million. Between September 1, 2019 and August 31, 2020, the Company was self-insured for certain layers of auto liability claims in excess of $ 1.0 million. Prior to September 1, 2019, the Company maintained auto liability insurance coverage for these layers. The Company currently specifically reserves for claims that are expected to exceed $2.0 million when fully developed, based on the facts and circumstances of those claims.   The Company maintains workers’ compensation coverage in Arkansas, Florida, Ohio, Oklahoma, and Mississippi with a $ 0.5 million self-insured retention and a $ 0.5 million per occurrence excess policy. The Company has elected to opt out of workers’ compensation coverage in Texas and is providing coverage through the P.A.M. Texas Injury Plan. The Company has accrued 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 approximately $ 310,000 and certificates of deposit totaling $ 300,000 are held by banks as security for workers’ compensation claims. The Company self-insures for employee health claims with a stop loss of $ 350,000 per covered employee per year and estimates its liability for claims outstanding and claims incurred but not reported. See Note 5 – Accrued Expenses and Other Liabilities for additional information regarding self-insurance claims liabilities.   - 49 - Table of Contents     7. LONG-TERM DEBT   Long-term debt at December 31, consists of the following:       2020     2019       (in thousands)   Line of credit with a bank—due July 1, 2022, and collateralized by accounts receivable (1)     18,246       17,047   Equipment financing (2)     250,572       224,777   Real estate financing (3)     17,288       -   Total long-term debt     286,106       241,824   Less current maturities     ( 57,776 )     ( 67,637 )                   Long-term debt—net of current maturities   $ 228,330     $ 174,187       ( 1 ) Line of credit agreement with a bank provides for maximum borrowings of $ 60.0 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 1.25 % ( 1.40 % at December  31, 2020 ) and are secured by our trade accounts receivable. An “unused fee” of 0.25 % is charged if average daily borrowings are less than $ 18.0 million in a given month. Monthly payments of interest are required under this agreement. Also, under the terms of the agreement the Company must maintain a debt to adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization, excluding gains/losses on equity securities and extraordinary items) ratio of less than 4.00:1. The Company was in compliance with all provisions under this agreement throughout 2020. At December 31, 2020, outstanding advances on the line were approximately $ 18.6 million, including letters of credit totaling $ 0.3 million, with availability to borrow $ 41.4 million. At December 31, 2019, outstanding advances on the line were approximately $ 17.4 million, including letters of credit totaling $ 0.4 million.     ( 2 ) Equipment financings consist of installment obligations for revenue equipment purchases, payable in various monthly installments with various maturity dates through September 2026, at a weighted average interest rate of 3.30 % as of December 31, 2020 and collateralized by revenue equipment.     ( 3 ) Real estate financing consisting of an installment obligation for the purchase of real estate in Laredo, TX, payable in 120 installments at an interest rate of 3.02 % and maturing in August 2030. This obligation is collateralized by the underlying real estate and any rental income generated by the underlying real estate.   The Company has provided letters of credit to third parties totaling approximately $ 310,000 and $ 430,000 at December 31, 2020 and December 31, 2019, respectively. The letters are held by these third parties to assist such parties in collection of any amounts due by the Company should the Company default in its commitments to the parties.   Scheduled annual maturities on long-term debt outstanding at December 31, 2020, are:   2021   $ 57,776   2022     72,681   2023     66,767   2024     43,116   2025     30,596   2026     7,921   Thereafter     7,249             Total   $ 286,106     - 50 - Table of Contents     8. NONCASH INVESTING AND FINANCING ACTIVITIES   The Company financed approximately $ 80.7 million and $ 24.5 million in equipment purchases during 2020 and 2019, respectively, utilizing noncash financing.     9. CAPITAL STOCK   The Company's authorized capital stock consists of 40,000,000 shares of common stock, par value $.01 per share, and 10,000,000 shares of preferred stock, par value $.01 per share. At December 31, 2020, there were 11,695,719 shares of our common stock issued and 5,727,895 shares outstanding. At December 31, 2019, there were 11,656,160 shares of our common stock issued and 5,748,897 shares outstanding. No shares of our preferred stock were issued or outstanding at December 31, 2020 or 2019.   Common Stock   The holders of our common stock, subject to such rights as may be granted to any preferred stockholders, elect all directors and are entitled to one vote per share. All shares of common stock participate equally in dividends when and as declared by the Board of Directors and in net assets on liquidation. The shares of common stock have no preference, conversion, exchange, preemptive, or cumulative voting rights.   Preferred Stock   Preferred stock may be issued from time to time by our Board of Directors, without stockholder approval, in such series and with such preferences, conversion or other rights, voting powers, restrictions, limitations as to dividends, qualifications or other provisions, as may be fixed by the Board of Directors in the resolution authorizing their issuance. The issuance of preferred stock by the Board of Directors could adversely affect the rights of holders of shares of common stock; for example, the issuance of preferred stock could result in a class of securities outstanding that would have certain preferences with respect to dividends and in liquidation over the common stock, and that could result in a dilution of the voting rights, net income per share and net book value of the common stock. As of December 31, 2020, we have no agreements or understandings for the issuance of any shares of preferred stock.   Treasury Stock   In May 2019, our Board of Directors authorized the repurchase of up to 200,000 shares of our common stock through a Dutch auction tender offer (the “2019 tender offer”). Subject to certain limitations and legal requirements, the Company could repurchase up to an additional 2 % of its outstanding shares, which totaled 118,996 shares. The 2019 tender offer commenced on May 13, 2019 and expired on June 11, 2019. Through this tender offer, the Company’s shareholders had the opportunity to tender some or all of their shares at a price within the range of $ 55.00 to $ 60.00 per share. Upon expiration, 192,743 shares were purchased through this offer at a final purchase price of $ 60.00 per share for a total of approximately $ 11.6 million, including fees and commission. The repurchase was settled on June 13, 2019. The Company accounted for the repurchase of these shares as treasury stock on the Company’s consolidated balance sheet as of December 31, 2019.   In May 2018, our Board of Directors authorized the repurchase of up to 100,000 shares of our common stock through a Dutch auction tender offer (the “2018 tender offer”). Subject to certain limitations and legal requirements, the Company could repurchase up to an additional 2 % of its outstanding shares, which totaled 124,248 shares. The 2018 tender offer commenced on May 8, 2018 and expired on June 7, 2018. Through this tender offer, the Company’s shareholders had the opportunity to tender some or all of their shares at a price within the range of $ 39.00 to $ 43.00 per share. Upon expiration, 185,597 shares were purchased through this offer at a final purchase price of $ 40.00 per share for a total of approximately $ 7.5 million, including fees and commission. The repurchase was settled on June 12, 2018. The Company accounted for the repurchase of these shares as treasury stock on the Company’s consolidated balance sheet as of December 31, 2018.   - 51 - Table of Contents   The Company’s stock repurchase program has been extended and expanded several times, most recently in April 2017, when the Board of Directors reauthorized 500,000 shares of common stock for repurchase under the initial September 2011 authorization. The Company repurchased 60,561 shares and 58,934 shares of its common stock under this program during 2020 and 2019, respectively.   The Company accounts for Treasury stock using the cost method, and as of December 31, 2020, 5,967,824 shares were held in the treasury at an aggregate cost of approximately $ 159,118,275 .     10. SEGMENT INFORMATION, SIGNIFICANT CUSTOMERS, INDUSTRY CONCENTRATION AND GEOGRAPHIC AREAS DIVIDENDS   The Company's revenues for 2020, 2019 and 2018 were all generated from operations in the motor carrier segment and are aggregated into a single reporting segment in accordance with the aggregation criteria under GAAP.   The table below presents revenue dollars and percentages by geographic area:       Year Ended December 31,       2020     2019     2018       (in thousands)       Amount     Percent     Amount     Percent     Amount     Percent   United States - domestic shipments   $ 316,542       66.1     $ 326,559       63.5     $ 302,754       56.8   Shipments to or from Mexico     161,412       33.7       186,392       36.3       229,350       43.0   Shipments to or from Canada     1,156       0.2       1,226       0.2       1,157       0.2                                                     Total Operating Revenues   $ 479,110       100 %   $ 514,177       100 %   $ 533,261       100 %   Our five largest customers, for which we provide carrier services covering a number of geographic locations, accounted for approximately 35 %, 40 % and 42 % of our total revenues in 2020, 2019 and 2018, respectively. General Motors Company accounted for approximately 15 %, 19 % and 13 % of our revenues in 2020, 2019 and 2018, respectively. Fiat Chrysler Automobiles accounted for approximately 6 %, 9 % and 16 % of our revenues in 2020, 2019 and 2018, respectively. Ford Motor Company accounted for approximately 5 %, 7 % and 8 % of our revenues in 2020, 2019 and 2018, respectively.   We also provide transportation services to other manufacturers who are suppliers for automobile manufacturers. Approximately 30 %, 40 % and 46 % of our revenues were derived from transportation services provided to the automobile industry during 2020, 2019 and 2018, respectively.   Accounts receivable from the three largest customers totaled approximately $ 25,593,000 and $ 31,327,000 at December 31, 2020 and 2019, respectively.     11. DIVIDENDS   The Company has paid cash dividends in the past; however, the Company currently intends to retain future earnings and does not anticipate paying cash dividends in the foreseeable future. Any future determination to pay dividends will be at the discretion of the Board and will depend on the Company’s financial condition, results of operations, capital requirements, any legal or contractual restrictions on the payment of dividends, and other factors the Board deems relevant.   - 52 - Table of Contents     12. FEDERAL AND STATE INCOME TAXES   Under GAAP, 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:       2020     2019       (in thousands)                     Deferred tax liabilities:                 Property and equipment   $ 100,736     $ 83,453   Unrealized gains on securities     2,580       2,580   Prepaid expenses and other     2,599       2,193                     Total deferred tax liabilities     105,915       88,226                     Deferred tax assets:                 Current expected credit losses     896       760   Tax credit carryforwards     988       988   Compensated absences     189       512   Self-insurance allowances     674       5,630   Marketable equity securities     2,129       1,253   Net operating loss carryover     32,031       15,364   Other     125       197                     Total deferred tax assets     37,032       24,704                     Net deferred tax liability   $ 68,883     $ 63,522     The reconciliation between the effective income tax rate and the statutory Federal income tax rate for the years ended December  31, 2020, 2019 and 2018 is presented in the following table:       2020     2019     2018       (in thousands)       Amount     Percent     Amount     Percent     Amount     Percent                                                     Federal income tax at statutory rate   $ 4,916       21.0     $ 2,124       21.0     $ 6,582       21.0   Nondeductible per diem and meals     321       1.4       -       -       -       -   Other nondeductible expenses, net     -       -       342       3.4       80       0.2   State income taxes/other, net     345       1.5       ( 251 )     ( 2.5 )     685       2.2                                                     Total income tax expense   $ 5,582       23.9     $ 2,215       21.9     $ 7,347       23.4     The provision (benefit) for income taxes consisted of the following:       2020     2019     2018       (in thousands)   Current:                         Federal   $ ( 62 )   $ ( 56 )   $ ( 48 ) State     282       646       189   Total current income tax provision     220       590       141   Deferred:                         Federal     4,860       2,177       6,185   State     502       ( 552 )     1,021   Total deferred income tax provision     5,362       1,625       7,206                             Total income tax provision expense   $ 5,582     $ 2,215     $ 7,347     - 53 - Table of Contents   In March 2020, the President of the United States signed the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”), to stabilize the economy during the coronavirus pandemic. The CARES Act temporarily suspends and modifies certain tax laws established by the TCJA, including, but not limited to, modifications to net operating loss limitations, business interest limitations and alternative minimum tax. The CARES Act did not have a material impact on the Company’s current year provision or the Company’s consolidated financial statements.   The Company has general business credits of approximately $ 988,000 at December 31, 2018, which begin to expire after the year 2030. The Company also has net operating loss carryovers for federal income purposes of approximately $ 59,715,000 of which $ 30,835,000 will begin to expire after the year 2030 while the remaining balance does not expire and can be carried forward indefinitely.   In determining whether a tax asset valuation allowance is necessary, management, in accordance with the provisions of ASC 740 - 10 - 30, weighs all available evidence, both positive and negative to determine whether, based on the weight of that evidence, a valuation allowance is necessary. If negative conditions exist which indicate a valuation allowance might be necessary, consideration is then given to what effect the future reversals of existing taxable temporary differences and the availability of tax strategies might have on future taxable income to determine the amount, if any, of the required valuation allowance. As of December 31, 2020 and 2019, management determined that the future reversals of existing taxable temporary differences and available tax strategies would generate sufficient future taxable income to realize its tax assets and therefore a valuation allowance was not necessary.   The Company recognizes a tax benefit from an uncertain tax position only if it is more likely than not that the position will be sustained on examination by taxing authorities, based on the technical merits of the position. As of December 31, 2020, an adjustment to the Company’s consolidated financial statements for uncertain tax positions has not been required as management believes that the Company’s tax positions taken in income tax returns filed or to be filed are supported by clear and unambiguous income tax laws. The Company recognizes interest and penalties related to uncertain income tax positions, if any, in income tax expense. During 2020 and 2019, the Company has not recognized or accrued any interest or penalties related to uncertain income tax positions.   The Company and its subsidiaries are subject to U.S. and Canadian federal income tax laws as well as the income tax laws of multiple state jurisdictions. The major tax jurisdictions in which the Company operates generally provide for a deficiency assessment statute of limitation period of three years, and as a result, the Company’s tax years 2017 and forward remain open to examination in those jurisdictions.     13. STOCK-BASED COMPENSATION   The Company maintains a stock incentive plan under which incentive and nonqualified stock options and other stock awards may be granted. On March 13, 2014, the Company’s Board of Directors adopted, and on May 29, 2014 our shareholders approved, the 2014 Amended and Restated Stock Option and Incentive Plan (the “Plan”) which amended and restated the Company’s 2006 Stock Option Plan. Under the Plan, 750,000 shares are reserved for the issuance of stock awards to directors, officers, key employees, and others. The stock option exercise price and the restricted stock purchase price under the 2014 Plan shall not be less than 85 % of the fair market value of the Company’s common stock on the date the award is granted. The fair market value is determined by the closing price of the Company’s common stock, on its primary exchange, on the same date that the option or award is granted.   In January 2020, the Company granted 7,000 shares of common stock to certain key employees. These restricted stock awards have a grant date fair value of $ 56.45 per share, based on the closing price of the Company’s stock on the date of grant, and vest on the four year anniversary date of the award.   In March 2020, the Company granted 2,608 shares of common stock to non-employee directors. These stock awards have a grant date fair value of $ 30.75 per share, based on the closing price of the Company’s stock on the date of grant, and vested immediately.   - 54 - Table of Contents   In April 2020, the Company granted 242 shares of common stock to a non-employee director. This stock award has a grant date fair value of $ 41.40 per share, based on the closing price of the Company’s stock on the date of grant, and vested immediately.   In August 2020, the Company granted 40,000 restricted shares of common stock to the Company’s Chief Executive Officer. This restricted stock award has a grant date fair value of $ 35.37 , based on the closing price of the Company’s stock on the date of grant, and will vest in increments of 5,000 shares each in 2022, 2023, 2024 and 2027 and 10,000 shares each in 2025 and 2026.   In August 2020, the Company granted 13,332 shares of common stock to certain key employees. These restricted stock awards have a grant date fair value of $ 30.25 per share, based on the closing price of the Company’s stock on the date of grant, and vest on the four year anniversary date of the award.   In April 2019, the Company granted 1,845 shares of common stock to non-employee directors. These stock awards have a grant date fair value of $ 48.94 per share, based on the closing price of the Company’s stock on the date of grant, and vested immediately.   In May 2019, the Company granted 213 shares of common stock to a non-employee director. These stock awards have a grant date fair value of $ 47.06 per share, based on the closing price of the Company’s stock on the date of grant, and vested immediately.   In December 2018, the Company granted 33,000 restricted shares of common stock to certain key employees. These restricted stock awards have a grant date fair value of $ 36.35 per share, based on the closing price of the Company’s stock on the date of grant, with one fourth of the award vesting each of the next four years on the anniversary date.   In March 2018, the Company granted 1,932 shares of common stock to non-employee directors. These stock awards have a grant date fair value of $ 36.35 per share, based on the closing price of the Company’s stock on the date of grant, and vested immediately.   During 2020 and 2019, there were no grants of stock options and there were no outstanding stock options at December 31, 2020 or December 31, 2019. At December 31, 2020, approximately 362,000 shares were available for granting future options or restricted stock.   The grant date fair value of stock and stock options vested during 2020, 2019 and 2018 was approximately $ 759,000 , $ 953,000 and $ 719,000 , respectively. Total pre-tax stock-based compensation expense, recognized in Salaries, wages and benefits was approximately $ 461,000 during 2020 and includes approximately $ 90,000 recognized as a result of the grant of 326 shares of stock to eight non-employee directors during the first quarter of 2020 and 242 shares of stock to one non-employee director during the second quarter of 2020. The Company recognized a total income tax benefit of approximately $ 100,000 related to stock-based compensation expense during 2020. The recognition of stock-based compensation expense decreased both diluted and basic earnings per common share by approximately $ 0.06 during 2020. As of December  31, 2020, the Company had stock-based compensation plans with total unvested stock-based compensation expense of approximately $ 2,077,000 which is being amortized over the remaining vesting period. As a result, the Company expects to recognize the following approximate amounts of additional compensation expense related to unvested restricted stock awards during each of the years indicated:   2021   $ 342,000   2022   $ 375,000   2023   $ 310,000   2024   $ 297,000   2025   $ 354,000   2026   $ 288,000   2027   $ 111,000                               - 55 - Table of Contents   Total pre-tax stock-based compensation expense, recognized in Salaries, wages and benefits was approximately $ 912,000 during 2019 and included approximately $ 100,000 recognized as a result of the grant of 205 shares of stock to each non-employee director during the first quarter of 2019. The Company recognized a total income tax benefit of approximately $ 200,000 related to stock-based compensation expense during 2019. The recognition of stock-based compensation expense decreased both diluted and basic earnings per common share by approximately $ 0.12 during 2019.   Total pre-tax stock-based compensation expense, recognized in Salaries, wages and benefits was approximately $ 732,000 during 2018 and included approximately $ 70,000 recognized as a result of the grant of 276 shares of stock to each non-employee director during the first quarter of 2018. The Company recognized a total income tax benefit of approximately $ 172,000 related to stock-based compensation expense during 2018. The recognition of stock-based compensation expense decreased diluted and basic earnings per common share by approximately $ 0.09 and $ 0.10 , respectively, during 2018.   Transactions in stock options under these plans are summarized as follows:       Shares Under Option     Weighted- Average Exercise Price   Outstanding—January 1, 2018:     45,068     $ 10.79   Granted     -       -   Exercised     ( 45,005 )     10.79   Canceled     ( 63 )     11.22   Outstanding—December 31, 2018:     -     $ -   Granted     -       -   Exercised     -       -   Canceled     -       -   Outstanding—December 31, 2019:     -     $ -   Granted     -       -   Exercised     -       -   Canceled     -       -   Outstanding—December 31, 2020:     -     $ -   Options exercisable—December 31, 2020:     -     $ -     There were no options granted during 2020, 2019, or 2018. The weighted-average grant-date fair value of options canceled, forfeited, or expired during 2018 was $ 6.34 .   The total intrinsic value of options exercised during 2018 were approximately $ 1,406,000 .   A summary of the status of the Company’s non-vested restricted stock as of December 31, 2020 and changes during the year ended December 31, 2020, is presented below:       Restricted Stock       Number of Shares     Weighted- Average Grant Date Fair Value   Nonvested—January 1, 2020     55,459     $ 24.35   Granted     63,182       36.46   Canceled/forfeited/expired     ( 18,047 )     38.25   Vested     ( 39,559 )     19.18   Nonvested—December 31, 2020:     61,035     $ 36.12     Cash received from option exercises totaled approximately $ 0 , $ 0 and $ 485,000 during the years ended December 31, 2020, 2019 and 2018, respectively. The Company issued new shares upon option exercise.   - 56 - Table of Contents     14. EARNINGS PER SHARE   Basic earnings per common share was computed by dividing net income by the weighted average number of shares outstanding during the period. Diluted earnings per common share was calculated as follows:       For the Year Ended December 31,       2020     2019     2018       (in thousands, except per share data)                             Net income   $ 17,827     $ 7,900     $ 23,994                             Basic weighted average common shares outstanding     5,752       5,832       6,083   Dilutive effect of common stock equivalents     16       48       76                             Diluted weighted average common shares outstanding     5,768       5,880       6,159                             Basic earnings per share   $ 3.10     $ 1.35     $ 3.94                             Diluted earnings per share   $ 3.09     $ 1.34     $ 3.90       15. BENEFIT PLAN   The Company sponsors a benefit plan for the benefit of all eligible employees. The plan qualifies under Section 401 (k) of the Internal Revenue Code thereby allowing eligible employees to make tax-deductible contributions to the plan. The plan provides for employer matching contributions of 50 % of each participant’s voluntary contribution up to 3 % of the participant’s compensation and vests at the rate of 20 % each year until fully vested after five years. Total employer matching contributions to the plan were approximately $ 190,000 , $ 198,000 and $ 176,000 in 2020, 2019 and 2018, respectively.     16. COMMITMENTS AND CONTINGENCIES   We were a defendant in a collective- and class-action lawsuit which was filed on December 9, 2016, in the United States District Court for the Western District of Arkansas. The plaintiffs, who included current and former employee drivers who worked for the Company during the period of December 9, 2013, through December 31, 2019, alleged violations under the Fair Labor Standards Act and the Arkansas Minimum Wage Law including “failure to pay minimum wage during orientation, failure to pay minimum wage to team drivers after initial orientation, failure to pay minimum wage to solo-drivers after initial orientation, failure to pay for compensable travel time, Comdata card fees, unlawful deductions, and breach of contract.” The plaintiffs were seeking actual and liquidated damages to include court costs and legal fees. During July 2020, the United States District Court for the Western District of Arkansas granted final approval of a $ 16.5 million settlement reached with the plaintiffs and the settlement payment was disbursed by the Company during August 2020. Management has determined that the loss under this claim will not be covered by existing insurance policies.   On March 31, 2020, the United States District Court for the Western District of Arkansas dismissed the collective- and class-action lawsuit filed against the Company on May 29, 2019 by plaintiffs who were independent contractors alleging violations under the Fair Labor Standards Act and the Arkansas Minimum Wage Law. The plaintiffs, through their attorneys, alleged “misclassification as independent contractors, payment on the basis of miles without regard to the number of hours worked, improper deductions, and failure to pay minimum wage.” The dismissal of this lawsuit resulted when the Company and plaintiffs reached a settlement agreement and the Company paid approximately $ 421,000 , plus legal fees. Legal reserve accruals in excess of the amount outlined in the settlement agreement were reversed during the first nine months of 2020, resulting in a reduction in accrued expenses and other liabilities in the Company’s consolidated balance sheets.   - 57 - Table of Contents   We are involved in certain claims and pending litigation arising from the ordinary conduct of business. We also provide accruals for claims within our self-insured retention amounts. On September 1, 2019, we elected to become self-insured for certain layers of auto liability claims in excess of $ 1.0 million for which we previously maintained auto liability insurance coverage. On September 1, 2020, we elected to become self-insured for certain layers of auto liability claims in excess of $ 2.0 million. We currently specifically reserve for claims that are expected to exceed $2.0 million when fully developed, based on the facts and circumstances of those claims. Based on our knowledge of the facts, and in certain cases, opinions of outside counsel, we believe the resolution of such claims and pending litigation will not have a material effect on our financial position, results of operations or cash flows. However, if we experience claims that are not covered by our insurance or that exceed our estimated claim reserve, it could increase the volatility of our earnings and have a materially adverse effect on our financial condition, results of operations or cash flows.   Total rental expense, net of amounts reimbursed, for the years ended December 31, 2020, 2019 and 2018 related to truck leases was approximately $ 0 , $ 0 , and $ 47,000 , respectively.     17. LEASES   Right-of-Use Leases   During 2019, the Company entered into operating leases which include initial terms of approximately five years and which do not include an option for early cancellation. During 2020, the Company did not enter into any new leases with similar provisions. In accordance with the provisions of ASC Topic 842, these leases resulted in the recognition of right-of-use assets and corresponding operating lease liabilities, respectively, valued at $ 1.5 million as of December 31, 2020. These assets and liabilities are recognized based on the present value of future minimum lease payments over the lease term at commencement date, using the Company’s incremental borrowing rate as of the respective dates of lease inception, as the rate implicit in each lease is not readily determinable. The right-of-use assets are recorded in other assets, and the lease liability is recorded in accrued expenses and other liabilities and in other long-term liabilities on our consolidated balance sheet. Lease expense is recorded on a straight-line basis over the lease term and is recorded in rent and purchased transportation in our consolidated statements of operations. While the lease agreements contain provisions to extend after the initial term for an additional five years, the Company is not reasonably certain these extension options will be exercised. Therefore, potential lease payments that might occur under this extension period are not included in amounts recorded in our consolidated balance sheets as of December 31, 2020.   - 58 - Table of Contents   Scheduled amounts and timing of cash flows arising from operating lease payments at December 31, 2020, are:       (in thousands)   Maturity of Lease Liabilities         2021   $ 627   2022     544   2023     340   2024     114   2025     -   Thereafter     -   Total undiscounted operating lease payments   $ 1,625   Less: Imputed interest     ( 79 ) Present value of operating lease liabilities   $ 1,546             Balance Sheet Classification         Right-of-use assets (recorded in other non-current assets)   $ 1,546             Current lease liabilities (recorded in other current liabilities)   $ 627   Long-term lease liabilities (recorded in other long-term liabilities)     919   Total operating lease liabilities   $ 1,546             Other Information         Weighted-average remaining lease term for operating leases (in years)   2.81   Weighted-average discount rate for operating leases     3.61 %   Cash Flows   Right-of-use assets of $ 0 and $ 2.4 million were recognized as non-cash asset additions that resulted from new operating lease liabilities during the years ended December 31, 2020 and December 31, 2019, respectively. Cash paid for amounts included in the present value of right-of-use lease liabilities was $ 0.6 and $ 0.3 million during the years ended December 31, 2020 and December 31, 2019, respectively, and is included in operating cash flows.   Cash Paid for Operating Leases       Twelve Months Ended       December 31,       2020     2019                     Right-of-Use leases   $ 552     $ 255   Short-term leases (1)     2,177       2,214   Total   $ 2,729     $ 2,469       ( 1 ) Short-term lease cost includes leases with a term of twelve months or less and leases with options for early cancellation.   Lease Revenue   The Company has a lease-purchase program whereby we offer independent contractors the opportunity to lease a Company-owned truck. The terms associated with these leases require weekly lease payments over the term of the leases which range from 7 to 60 months. The cost and carrying amount of Company-owned trucks in this program at December 31, 2020 were approximately $ 49,228,000 and $ 24,708,000 , respectively. The cost and carrying amount of the Company-owned trucks in this program at December 31, 2019 were approximately $ 60,130,000 and $ 33,757,000 , respectively. Payments under this program are classified in the Company’s financial statements under the consolidated statement of operations category Revenue.   - 59 - Table of Contents   Leases in our lease-purchase program expire at various dates through 2025. Payments received under this program are classified in the Company’s financial statements under the consolidated statements of operations category Revenue. Future minimum lease receipts related to these leases at December 31, 2020 and 2019 were approximately $ 15,242,000 and $ 18,792,000 , respectively. Depreciation is calculated on a straight-line basis over the estimated useful life of the equipment, down to an estimated salvage value. In most cases, the Company has agreements in place with certain manufacturers whereby salvage values are guaranteed by the manufacturer. In other cases, where salvage values are not guaranteed, estimates of salvage value are based on the expected market values of equipment at the time of disposal. During the year ended December 31, 2020, the Company incurred $ 6.2 million of depreciation expense for these assets.   The Company leases dock space to a related party at our Laredo, Texas terminal and warehouse and office space to an unrelated lessee at a second Laredo, Texas terminal. At December 31, 2020, the cost and carrying amount of the facilities leased were approximately $ 13,738,000 and $ 12,402,000 , respectively. Future minimum lease receipts related to this lease at December 31, 2020 are approximately $ 705,000 . See Note 19 – Related Party Transactions for additional information regarding the Company’s transactions with related persons.   The Company's operating lease revenue is disclosed in the table below.       Twelve Months Ended       December 31,       2020     2019                                       Leased truck revenue (recorded in revenue, before fuel surcharge)   $ 6,756     $ 9,220   Leased building space revenue (recorded in non-operating income)     573       155   Total lease revenue   $ 7,329     $ 9,375     Lease Receivable   Future minimum operating lease payments receivable at December 31, 2020:   2021   $ 6,613   2022     4,774   2023     2,803   2024     1,051   2025     1   Thereafter     -   Total future minimum lease payments receivable   $ 15,242     Lease Payments to Related Parties   Payments to related parties of $ 1,129,231 were made for real estate leases during 2020 which include maintenance facilities in one state and trailer drop yards in eleven states. The leases are generally month to month leases with automatic monthly renewal provisions.   During 2020 the Company leased office, shop and parking spaces from various lessors, including a related party. The initial term for the majority of these leases is one year, with an option for early cancellation and an option to renew for subsequent one -month periods. These leases can be terminated by either party by providing notice to the other party of the intent to cancel or to not extend. Relatively short lease durations for these properties are intended to provide flexibility to the Company as changing operational needs and shifting opportunities often result in cancellation or non-renewal of these leases by the Company or the lessor. The minimum operating lease payable under these arrangements was approximately $ 214,000 as of December 31, 2020.   - 60 - Table of Contents   The Company leases office and shop facilities to a related party. At December 31, 2020, the cost and carrying amount of the facilities leased were approximately $13,738,000 and $12,402,000, respectively. Future minimum lease receipts related to this lease at December 31, 2020 were approximately $ 12,100 .     18. FAIR VALUE OF FINANCIAL INSTRUMENTS   The Company’s financial instruments consist of cash and cash equivalents, marketable equity securities, accounts receivable, trade accounts payable, and borrowings.   The Company follows the guidance for financial assets and liabilities measured on a recurring basis. The guidance defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date and also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.   The standard describes three levels of inputs that may be used to measure fair value:   Level 1:   Quoted market prices in active markets for identical assets or liabilities.       Level 2:   Inputs other than Level 1 inputs that are either directly or indirectly observable such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable; or other inputs not directly observable, but derived principally from, or corroborated by, observable market data. Level 3:   Unobservable inputs that are supported by little or no market activity.   The Company utilizes the market approach to measure fair value for its financial assets and liabilities. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities.   At December 31, 2020 and 2019, the following items are measured at fair value on a recurring basis:       2020     2019                                                                         Total     Level 1     Level 2     Level 3     Total     Level 1     Level 2     Level 3   Marketable equity securities   $ 27,9417,549     $ 27,941       -       -     $ 29,521     $ 29,521       -       -     During 2020 and 2019, there were no transfers of marketable securities between levels of fair value measurement.   The Company’s investments in marketable equity securities are recorded at fair value based on quoted market prices. The carrying value of cash and cash equivalents, accounts receivable, trade accounts payable, and accrued liabilities approximate fair value due to their short maturities.   The carrying amount for the line of credit approximates fair value because the line of credit interest rate is adjusted frequently.   For long-term debt other than the lines 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 values and estimated fair values of this other long-term debt at December 31, 2020 and 2019 are summarized as follows:       2020     2019       Carrying Value     Estimated Fair Value     Carrying Value     Estimated Fair Value       (in thousands)   Long-term debt   $ 267,860     $ 268,582     $ 224,777     $ 228,449     - 61 - Table of Contents   The Company has not elected the fair value option for any of our financial instruments.     19. RELATED PARTY TRANSACTIONS   In the normal course of business, transactions for transportation and repair services, equipment, property leases and other services are conducted between the Company and companies affiliated with our Chairman and controlling stockholder. The Company recognized approximately $ 9,897,000 , $ 2,691,000 and $ 2,854,000 in operating revenue and approximately $ 6,791,000 , $ 9,190,000 and $ 9,859,000 in operating expenses in 2020, 2019, and 2018, respectively.   The Company purchased physical damage, auto liability, general liability, and workers’ compensation insurance through an unaffiliated insurance broker which was written by an insurance company affiliated with our Chairman and controlling stockholder. The premiums for physical damage coverage were approximately $ 0 , $ 0 and $ 1,271,000 for 2020, 2019, and 2018, respectively. Premiums for auto liability coverage during 2020, 2019, and 2018 were approximately $ 8,516,000 , $ 10,345,000 , and $ 10,987,000 , respectively. Premiums for general liability coverage during 2020, 2019, and 2018 were approximately $ 0 , $ 0 and $ 24,000 , respectively. Premiums for workers’ compensation coverage during 2020, 2019, and 2018 were approximately $ 299,000 , $ 266,000 and $ 301,000 , respectively.   Amounts owed to the Company by these affiliates were approximately $ 2,348,000 and $ 1,052,000 at December 31, 2020 and 2019, respectively. Of the accounts receivable at December 31, 2020 and 2019, approximately $ 2,236,000 and $ 1,052,000 represent freight transportation and approximately $ 112,000 and $ 0 represent revenue resulting from other services performed for related parties. Amounts payable to affiliates at December 31, 2020 and 2019 were approximately $ 1,864,000 and $ 961,000 respectively.   - 62 - Table of Contents     20. QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)   The tables below present quarterly financial information for 2020 and 2019:       2020       Three Months Ended       March 31     June 30     September 30     December 31       (in thousands, except per share data)                                     Operating revenues   $ 129,155     $ 92,979     $ 121,942     $ 142,750   Operating expenses and costs     119,669       94,986       111,868       126,380                                     Operating income (loss)     9,486       ( 2,007 )     10,074       16,370   Non-operating (loss) income     ( 9,076 )     2,961       ( 94 )     4,510   Interest expense     ( 2,212 )     ( 2,179 )     ( 2,211 )     ( 2,214 ) Income tax benefit (expense)     498       402       ( 1,769 )     ( 4,713 )                                   Net (loss) income   $ ( 1,304 )   $ ( 823 )   $ 6,000     $ 13,953                                     Net (loss) income per common share:                                 Basic   $ ( 0.23 )   $ ( 0.14 )   $ 1.04     $ 2.43   Diluted   $ ( 0.23 )   $ ( 0.14 )   $ 1.04     $ 2.43                                     Average common shares outstanding:                                 Basic     5,746       5,766       5,763       5,734   Diluted     5,746       5,766       5,768       5,752         2019       Three Months Ended       March 31     June 30     September 30     December 31       (in thousands, except per share data)                                     Operating revenues   $ 128,686     $ 133,000     $ 128,994     $ 123,497   Operating expenses and costs     118,999       119,789       121,461       141,381                                     Operating income (loss)     9,687       13,211       7,533       ( 17,884 ) Non-operating income (loss)     3,472       ( 197 )     490       2,457   Interest expense     ( 2,040 )     ( 2,059 )     ( 2,178 )     ( 2,377 ) Income tax (expense) benefit     ( 2,818 )     ( 2,301 )     ( 1,264 )     4,168                                     Net income (loss)   $ 8,301     $ 8,654     $ 4,581     $ ( 13,636 )                                   Net income (loss) per common share:                                 Basic   $ 1.40     $ 1.47     $ 0.80     $ ( 2.37 ) Diluted   $ 1.39     $ 1.45     $ 0.79     $ ( 2.37 )                                   Average common shares outstanding:                                 Basic     5,921       5,901       5,756       5,751   Diluted     5,985       5,949       5,799       5,751     - 63 - Table of Contents     Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.   None.