Even as the stock of Proficient Auto Logistics was getting hammered for the quarter and then some–dropping about 34% from early April to Monday’s close at $5.97–the auto hauler racked up several performance metrics during those three months that were solidly above that of the first three months of the year.
Among the key numbers at Proficient (NASDAQ: PAL), its operating ratio came in at 96.7%. While that is far worse than the 91.8% recorded in the second quarter of 2024, it marked a sequential improvement of 200 bps from the 98.7% it posted for the first quarter.
That improved OR helped lead the company to an adjusted operating income of $3.8 million for the quarter, an improvement sequentially from the $1.2 million recorded in the first quarter. But the year-on-year comparisons were not positive; the company had adjusted operating income in the second quarter of 2024 of $8.7 million.
CEO Rick O’Dell, who on the company’s first quarter earnings call had spoken of late quarter strength in the market (possibly the first signs of the impact from the Jack Cooper closure), said that stronger trend continued into April, resulting in record revenue for Proficient (which admittedly has only been around since May 2024). Revenue and unit volumes for the month were up 13% and 25%, respectively, though the comparisons were impacted by Proficient acquisitions in August 2024 (Auto Transport Group) and at the start of this year’s second quarter (Brothers Transport).
But the strength has continued, O’Dell said. Between the impact of the Brothers acquisitionand gains in market share that may have been bolstered by the collapse of auto hauler Jack Cooper–though O’Dell did not specifically reference the company–O’Dell said “June did not decelerate from May, and revenue performance finished above our expectations for the combined May and June months.”
Sequential comparisons have been highlighted by several companies this quarter. Year-on-year comparisons were always going to be negative, and the market is looking for some signs of life from the freight market.
Proficient’s volume almost certainly got a significant boost from the first quarter closure of Jack Cooper.
Proficient delivered 220,758 vehicles in the quarter while its subhaulers moved 401,848 vehicles. A year ago, the corresponding numbers were 152,714 and 354,998, respectively. In the first quarter of this year, when the Jack Cooper shutdown would have first been hitting the market, the numbers were 163,754 and 330,755.
One metric that was not a positive for Proficent in the quarter was its measurement of yield, revenue per unit on company deliveries. It was $178.82 in the second quarter, down 15.8% from a year earlier when the figure was $212.25. It was also down 3.5% sequentially.
