Exhibit 99.1
PATRIOT TRANSPORTATION HOLDING, INC./NEWS
Contact: John E. Anderson
Chief Executive Officer 904/396-5733, Ext. 3215
________________________________________________________________
PATRIOT TRANSPORTATION HOLDING, INC. ANNOUNCES RESULTS FOR THE
THIRD QUARTER AND FIRST NINE MONTHS OF FISCAL YEAR 2003.
Jacksonville, Florida; August 6, 2003 - Patriot Transportation
Holding, Inc. (NASDAQ-PATR) reported results for the third
quarter and nine months ended June 30,2003.
The Company reported net income of $1,346,000 or $.45 per diluted
share for the third quarter of fiscal year 2003, a decrease of
$231,000 or 14.6% when compared to the same quarter last year.
Net income for the first nine months of fiscal 2003 was
$2,906,000 or $.94 per diluted share, a decrease of $1,441,000 or
33.1% from the first nine months of fiscal year 2002. Net income
for the quarter and nine months ended June 30, 2003 was adversely
affected by higher risk insurance premiums and claims expense
related to prior years' workers compensation occurrences.
THIRD QUARTER OPERATING RESULTS. For the third quarter of Fiscal
2003, consolidated revenues were $27,031,000, an increase of
$2,155,000 or 8.7% over the same quarter last year.
The transportation segment's revenues for the third quarter of
Fiscal 2003 were $23,079,000, an increase of $1,799,000 or 8.5%
over the same quarter last year. Approximately $1,375,000 of this
increase was a result of a 6.7% increase in miles hauled in the
third quarter of 2003 over the same quarter last year. The
balance of the increase was primarily due to higher fuel
surcharges billed to mitigate rising fuel costs. The increase in
miles hauled resulted primarily from new business generated from
the May 30, 2002 acquisition of the operating assets of Infinger
Transportation, Inc. (Infinger) and a 9.8% increase in miles in
the flatbed operations from the same quarter last year.
Real estate revenues were $3,952,000 for the third quarter of
Fiscal 2003, an increase of $356,000 or 9.9% from the third
quarter of Fiscal 2002. Royalties from mining contracts increased
$483,000 or 56.0% primarily resulting from a 31.3% increase in
tons mined and an increase in average royalty per ton mined as
compared to the same quarter last year. Revenues from flex office-
warehouse properties increased $56,000 or 2.7%, primarily due to
an 8.2% increase in average leased square feet and minimal price
increases. The real estate group had property sales of $3,000 in
the third quarter of 2003 compared to property sales of $199,000
in the third quarter of 2002.
Consolidated gross profit for the third quarter of 2003 was
$5,118,000, a decrease of $340,000 or 6.2% from the third quarter
of last year. Gross profit in the transportation segment
decreased $790,000 or 23.1% primarily due to higher risk
insurance premiums and claims expense related to prior years'
workers compensation occurrences. Additionally, depreciation
expense is higher as a result of the Infinger asset additions and
a newer trucking fleet.
Gross profit in the real estate segment increased $450,000 or
22.1% from the third quarter of 2002 due to increased royalties
from mining operations and improved gross profit from developed
properties, partially offset by reduced profit from property
sales.
Net income was $1,346,000 or $.45 per diluted share for the third
quarter of Fiscal 2003 compared to $1,577,000 or $.50 per diluted
share for the same quarter last year.
over
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1801 ART MUSEUM DRIVE / JACKSONVILLE, FLORIDA 32207 / (904) 396-5733
NINE MONTHS OPERATING RESULTS. For the nine months of Fiscal 2003,
consolidated revenues were $76,146,000, an increase of $4,771,000 or
6.7% over the same period last year.
The transportation segment's revenues for the nine months of Fiscal
2003 were $65,057,000, an increase of $4,818,000 or 8.0% over the same
period last year. Approximately $2,771,000 of this increase resulted
from a 4.5% increase in miles hauled primarily due to the Infinger
acquisition on May 30, 2002, partially offset by the loss of a major
customer. The balance of the increase was primarily due to higher fuel
surcharges as a result of rising fuel costs.
Real estate revenues were $11,089,000 for the first nine months of
2003, a decrease of $47,000 or 0.4% from the first nine months of 2002.
Royalties from mining contracts decreased $365,000 or 7.3% primarily
resulting from completion of mining at two locations during the third
quarter of 2002. Revenues from flex office-warehouse properties
increased $468,000 or 7.9%, primarily due to a 7.9% increase in leased
square feet and modest price increases. Property sales were $68,000 in
the nine months of 2003 as compared to property sales of $219,000
during the nine months of 2002.
Consolidated gross profit decreased $2,128,000 or 13.7% for the nine
months as compared to the same period last year. Gross profit in the
transportation segment decreased $2,198,000 or 24.2% as a result of
higher fuel costs per mile and higher risk insurance premiums and
claims expense related to prior years' workers compensation
occurrences. Additionally, depreciation expense was higher as a result
of the Infinger asset additions and a newer trucking fleet.
Gross profit in the real estate segment increased $70,000 or 1.1% from
the nine months of 2002 due to a $458,000 increase in gross profit from
newly developed properties which was mostly offset by decreased
royalties from mining operations.
Net income was $2,906,000 or $.94 per diluted share for the first nine
months of 2003 compared to $4,347,000 or $1.37 per diluted share for
the same period last year.
SUMMARY AND OUTLOOK. The Company's real estate development operations
have continued to benefit from a favorable national interest rate
environment and encouraging tenant occupancy. Positive market
acceptance continues for the Company's flexible office-warehouse
product, implying further development expansion.
Overall freight demand for the Company's transportation group has
gradually strengthened, though still somewhat muted in markets served
by the tank truck operations as an uncertain national economy has
dampened travel and resulting fuel consumption. Freight rate increases
and improved efficiencies from equipment utilization will be pursued to
offset chronic increases in risk and health insurance expenses.
Patriot Transportation Holding, Inc. is engaged in the transportation
and real estate businesses. The Company's transportation business is
conducted through two wholly owned subsidiaries. Florida Rock & Tank
Lines, Inc. is a Southeastern transportation company concentrating in
the hauling by motor carrier of liquid and dry bulk commodities.
SunBelt Transport, Inc. serves the flatbed portion of the trucking
industry in the Southeast, Midwest and Mid-Atlantic States, hauling
primarily construction materials. The Company's real estate group,
through subsidiaries, acquires, constructs, leases, operates and
manages land and buildings to generate both current cash flows and long-
term capital appreciation. The real estate group also owns real estate
which is leased under mining royalty agreements or held for investment.
continued
PATRIOT TRANSPORTATION HOLDING, INC.
Summary of Consolidated Revenues and Earnings
(In thousands except per share amounts)
Three Months Nine Months
Ended Ended
June 30, June 30,
2003 2002 2003 2002
____ ____ ____ ____
Net sales $27,031 24,876 76,146 71,375
Gross profit $5,118 5,458 13,363 15,491
Income before income taxes $2,206 2,629 4,763 7,245
Net income $1,346 1,577 2,906 4,347
Earnings per common share:
Basic $.45 .50 .95 1.38
Diluted $.45 .50 .94 1.37
Weighted average shares
outstanding:
Basic 2,982 3,145 3,056 3,141
Diluted 3,022 3,178 3,088 3,166
PATRIOT TRANSPORTATION HOLDING, INC.
Condensed Balance Sheets (Unaudited)
(Amounts in thousands)
June 30, September 30,
2003 2002
____ ____
Cash and cash equivalents $1,572 529
Accounts receivable, net 7,329 7,343
Other current assets 3,413 3,618
Property, plant and equipment, net 146,273 138,367
Other non-current assets 5,832 5,606
_______ _______
TOTAL ASSETS $164,419 $155,463
________ ________
________ ________
Current liabilities 10,245 11,972
Long-term debt (excluding current 60,692 47,290
maturities)
Deferred income taxes 10,069 10,062
Other non-current liabilities 7,053 6,979
Shareholders' equity 76,360 79,160
______ ______
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $164,419 $155,463
________ ________
________ ________
PATRIOT TRANSPORTATION HOLDING, INC.
BUSINESS SEGMENTS
(Amounts in thousands)
(Unaudited)
The Company has identified two business segments, Transportation and
Real Estate. All of the Company's operations are located in the
Southeastern and Mid-Atlantic states and each is managed separately
along product lines. Operating results for the Company's business
segments are as follows:
Three Months Ended Nine Months Ended
June 30, June 30,
________ ________
2003 2002 2003 2002
____ ____ ____ ____
Transportation Revenues 23,079 21,280 65,057 60,239
______ ______ ______ ______
Real Estate Revenues:
Royalties, rentals & other 3,949 3,397 11,021 10,917
Property sales 3 199 68 219
_____ _____ ______ ______
Total 3,952 3,596 11,089 11,136
_____ _____ ______ ______
Total Revenues $27,031 24,876 76,146 71,375
_______ ______ ______ ______
_______ ______ ______ ______
Transportation Operating Profit:
Current operations $ 955 1,651 1,957 4,015
Closed operations 12 97 78 278
_______ _____ _____ _____
Total 967 1,748 2,035 4,293
_______ _____ _____ _____
Real Estate Operating Profit (loss):
Royalties, rentals & other 2,504 1,883 6,415 6,282
Property sales (18) 153 47 110
______ _____ _____ _____
Total 2,486 2,036 6,462 6,392
______ _____ _____ _____
Corporate Expenses (348) (352) (1,111) (1,058)
______ ______ _______ _______
Total Operating Profit $ 3,105 3,432 7,386 9,627
________ ______ _______ ______
________ ______ _______ ______
Investors are cautioned that any statements in this press release which
relate to the future are, by their nature, subject to risks and
uncertainties that could cause actual results and events to differ
materially from those indicated in such forward-looking statements.
These include general business conditions; competitive factors;
political, economic, regulatory and climatic conditions; driver
availability and cost; freight demand for petroleum products and for
building and construction materials in the Company's markets; risk
insurance markets; demand for flexible warehouse/office facilities;
interest rates; levels of mining activity; pricing; energy costs and
technological changes. Additional information regarding these and
other risk factors and uncertainties may be found in the Company's
filings with the Securities and Exchange Commission.