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Proficient Auto Logistics, Inc.(PAL) - 2025 Q1 - Quarterly Report
PALProficient Auto Logistics, Inc.(PAL)2025-05-14 21:23
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Financial Performance - Proficient's total operating revenue for the three months ended March 31, 2025, was 95,206,021,asignificantincreasefrom95,206,021, a significant increase from 27,826,592 for the same period in 2024[17] - The net loss for Proficient for the three months ended March 31, 2025, was 3,191,685,comparedtoanetincomeof3,191,685, compared to a net income of 1,184,632 for the same period in 2024[17] - Proficient's operating loss for the three months ended March 31, 2025, was (2,362,506),comparedtoanoperatingincomeof(2,362,506), compared to an operating income of 2,025,900 for the same period in 2024[17] - The company reported a loss per share of (0.12)forthethreemonthsendedMarch31,2025[17]−ForthethreemonthsendedMarch31,2025,thenetlosswas(0.12) for the three months ended March 31, 2025[17] - For the three months ended March 31, 2025, the net loss was 3,191,685 compared to a net income of 1,184,632forthesameperiodin2024[24]−TotaloperatingrevenueforthethreemonthsendedMarch31,2025,was1,184,632 for the same period in 2024[24] - Total operating revenue for the three months ended March 31, 2025, was 95,206,000, a decrease of 6.1% from 102,345,000inthesameperiodof2024[63]−Thecompanyreportedatotaloperatinglossof102,345,000 in the same period of 2024[63] - The company reported a total operating loss of 2,363,000 for the three months ended March 31, 2025, compared to an operating income of 6,062,000intheprioryear[63]CashandAssets−Cashandcashequivalentsdecreasedto6,062,000 in the prior year[63] Cash and Assets - Cash and cash equivalents decreased to 10,910,825 as of March 31, 2025, down from 15,398,714asofDecember31,2024[15]−Accountsreceivableincreasedto15,398,714 as of December 31, 2024[15] - Accounts receivable increased to 47,161,777 as of March 31, 2025, compared to 37,394,656asofDecember31,2024[15]−Totalcurrentassetsroseto37,394,656 as of December 31, 2024[15] - Total current assets rose to 69,269,300 as of March 31, 2025, from 67,687,442asofDecember31,2024[15]−Cashflowsprovidedbyoperatingactivitieswere67,687,442 as of December 31, 2024[15] - Cash flows provided by operating activities were 1,633,024, a significant increase from a cash outflow of 382,135intheprioryear[24]−Cashandcashequivalentsattheendoftheperiodwere382,135 in the prior year[24] - Cash and cash equivalents at the end of the period were 10,910,825, down from 15,398,714atthebeginningoftheperiod[24]−Thecompanyreportedcashpaidforinterestwas15,398,714 at the beginning of the period[24] - The company reported cash paid for interest was 1,558,106 during the period, highlighting its financing costs[24] Liabilities and Debt - Total liabilities decreased slightly to 169,300,048asofMarch31,2025,from169,300,048 as of March 31, 2025, from 170,107,421 as of December 31, 2024[15] - Total long-term debt decreased to 52,953,684asofMarch31,2025,from52,953,684 as of March 31, 2025, from 56,336,911 at the end of 2024[73] - The company had 8,000,000outstandingonitsrevolvinglineofcreditasofMarch31,2025,with8,000,000 outstanding on its revolving line of credit as of March 31, 2025, with 12,000,000 available to be drawn[72] - Future maturities of long-term debt for the year ending December 31, 2025, are projected to be 14,516,189[74]AcquisitionsandGrowthStrategy−ThecompanycompleteditsIPOonMay13,2024,andacquiredfiveoperatingbusinessesaspartofitsgrowthstrategy[29]−SubsequenttotheIPO,thecompanyacquiredAutoTransportGroupforapproximately14,516,189[74] Acquisitions and Growth Strategy - The company completed its IPO on May 13, 2024, and acquired five operating businesses as part of its growth strategy[29] - Subsequent to the IPO, the company acquired Auto Transport Group for approximately 28.9 million and Utah Truck & Trailer Repair for 4.5million,expandingitsgeographicpresence[30]−ProficientAutoLogistics,Inc.completedtheacquisitionoffiveoperatingbusinesses,includingDelta,Deluxe,Sierra,ProficientTransport,andTribeca,onMay13,2024,concurrentwithitsIPO[48]−Thetotalpurchasepriceforallacquisitionsrecognizedwas4.5 million, expanding its geographic presence[30] - Proficient Auto Logistics, Inc. completed the acquisition of five operating businesses, including Delta, Deluxe, Sierra, Proficient Transport, and Tribeca, on May 13, 2024, concurrent with its IPO[48] - The total purchase price for all acquisitions recognized was 289,275,386, with cash consideration of 183,448,307andstockconsiderationof183,448,307 and stock consideration of 102,731,965[58] - The acquisition of Auto Transport Group resulted in a total purchase price of 49,480,431,withcashconsiderationof49,480,431, with cash consideration of 28,938,295 and stock consideration of 20,542,136[59]−Thecompanyisfocusedonexpandingitsmarketpresencethroughstrategicacquisitionsandenhancingoperationalcapabilities[48]GoodwillandIntangibleAssets−TheacquisitionofDeltaresultedinrecognizedgoodwillof20,542,136[59] - The company is focused on expanding its market presence through strategic acquisitions and enhancing operational capabilities[48] Goodwill and Intangible Assets - The acquisition of Delta resulted in recognized goodwill of 27,558,000[50] - The acquisition of Deluxe resulted in recognized goodwill of 34,555,987[52]−TheacquisitionofProficientTransportresultedinrecognizedgoodwillof34,555,987[52] - The acquisition of Proficient Transport resulted in recognized goodwill of 58,332,452[53] - Goodwill from the acquisitions totaled 141,946,652,primarilyduetoexpectedsynergiesandworkforcevalue[58]−Thetotalbalanceofgoodwillincreasedto141,946,652, primarily due to expected synergies and workforce value[58] - The total balance of goodwill increased to 170,900,127 from 169,056,675asofDecember31,2024,reflectingadjustmentsof169,056,675 as of December 31, 2024, reflecting adjustments of 1,843,452[64] - The company recognized intangible assets totaling 114,900,000acrossvariousacquisitions,includingcustomerrelationshipsandtradenames[58]OperationalSegments−Thecompany’sCODMincludestheCEO,CFO,andCOO,whoevaluateperformancebasedonoperationalresultsfromservicesprovidedbyCompanyDriversandSubhaulers[44]−Thecompany’soperatingsegmentsincludeDriversandSubhaulers,withthelatterfocusingonanasset−lightmodelfortransportationservices[93]−ForthethreemonthsendedMarch31,2025,totalrevenuewas114,900,000 across various acquisitions, including customer relationships and trade names[58] Operational Segments - The company’s CODM includes the CEO, CFO, and COO, who evaluate performance based on operational results from services provided by Company Drivers and Subhaulers[44] - The company’s operating segments include Drivers and Subhaulers, with the latter focusing on an asset-light model for transportation services[93] - For the three months ended March 31, 2025, total revenue was 95,206,021, with segment revenue from Drivers at 32,674,418andSubhaulersat32,674,418 and Subhaulers at 62,531,603[94] Legal and Compliance Matters - Sierra Mountain Group, Inc. reached a settlement agreement for approximately 4,000,000relatedtothemisclassificationofindependentcontractors,withfinalapprovalfor4,000,000 related to the misclassification of independent contractors, with final approval for 3,947,725 granted by the court[104] - Deluxe Auto Carriers, Inc. is evaluating a class action claim regarding unpaid meal and rest periods, with potential liabilities included in accrued liabilities as of December 31, 2024[105] - Deluxe Auto Carriers, Inc. was delinquent in its filings with the Department of Labor for Retirement Plan Information Returns from 2019 to 2022, but all filings were completed by December 31, 2024[106]