P.A.M. Transportation Services operates a fleet of truckload dry van carriers to move a variety of products for customers in the U.S., Canada and Mexico. Its customer base includes manufacturers and retailers of both durable and consumer goods. The Company also provides logistics services. In the first six months of 2023, the Company reported $429.1 million in total sales, including $53.6 million in fuel charges. The period was down compared to the same time in the previous year largely do to reduced demand as manufacturers, retails and consumers curtail activity in the presence of continued high inflation and interest rates.
Despite top-line softness, the Company reported a profit of $14.6 million or $0.65 per share. Profits were negatively impacted by higher wages and salaries as well as higher operating expenses. The Company also reported higher interest expense despite a decrease in outstanding long-term debt. Importantly, the Company generated $67.47 million in operating cash flow in the six-month period. We note that collections on accounts receivable were significant in the recently reported six months. While still lower than cash flow from operations in the same six months in the previous year, the fact that cash flow remained strong during a trough period is indicative of a strong operating structure.
Strong cash flow generation bodes well for delivering value to shareholders. The Company generated 19.22% return on capital investment in the most recently reported twelve months. With an estimated weighted average cost of capital near 7.88%, excess return in 2022 was an estimated 11.34%.
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