EXHIBIT 99.1
PATRIOT TRANSPORTATION HOLDING, INC./NEWS
Contact: John E. Anderson
Chief Executive Officer 904/396-5733, Ext. 3215
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PATRIOT TRANSPORTATION HOLDING, INC. ANNOUNCES RESULTS FOR THE FOURTH
QUARTER AND FISCAL YEAR ENDED SEPTEMBER 30, 2004.
Jacksonville, Florida; December 1, 2004 - Patriot Transportation Holding,
Inc. (NASDAQ-PATR) reported net income of $1,493,000 or $.50 per diluted
share for the fourth quarter of fiscal year 2004, compared to $1,669,000 or
$.56 per diluted share for the same quarter last year. Fiscal 2003 fourth
quarter included $739,000 of income from discontinued operations. Income
from continuing operations was $1,704,000, an 83.2% increase over the same
quarter last year.
Net income for fiscal year 2004 was $20,740,000 or $6.97 per diluted share,
an increase of $16,165,000 over fiscal year 2003. Income from continuing
operations for fiscal 2004 increased 71.6% to $6,096,000.
Fourth Quarter Operating Results. For the fourth quarter of fiscal 2004,
consolidated revenues were $30,049,000, an increase of $3,095,000 or 11.5%
over the same quarter last year.
The transportation segment's revenues for the fourth quarter of fiscal 2004
were $25,787,000, an increase of $2,848,000 or 12.4% over the same quarter
last year. Approximately $656,000 of this increase was a result of a 3.2%
increase in miles hauled in the fourth quarter of 2004 over the same
quarter last year. Increased fuel surcharges accounted for $909,000 of the
increase over the same quarter last year. The remaining difference of
$1,283,000 was due to an 8.9% increase in average revenue per mile,
reflecting higher freight rates.
Real estate revenues were $4,262,000 for the fourth quarter of fiscal 2004,
an increase of $247,000 or 6.2% from the fourth quarter of fiscal 2003.
Lease revenues from flex office-warehouse properties increased $390,000 or
16.2%, primarily due to a 17.3% increase in average leased square feet.
Royalties from mining contracts decreased $143,000 or 8.9% primarily
resulting from a reduction in tons sold and a decrease in average royalty
rates compared to the same quarter last year.
Consolidated gross profit for the fourth quarter of 2004 was $6,262,000, an
increase of $1,691,000 or 37.0% from the fourth quarter of last year. Gross
profit in the transportation segment increased $1,459,000 or 68.1%,
primarily due to the increases in volume and pricing and steady level of
fixed costs compared to the same quarter last year. Gross profit in the
real estate segment increased $232,000 or 9.6% from the fourth quarter of
2003, primarily due to increased lease revenue from higher average leased
square footage.
Income from continuing operations was $1,704,000 or $.57 per diluted share
from the fourth quarter of fiscal 2004, an 83.2% increase over the fourth
quarter of last year.
Net income was $1,493,000 or $.50 per diluted share for the fourth quarter
of fiscal 2004 compared to $1,669,000 or $.56 per diluted share for the
same quarter last year. Net income for the fourth quarter of 2004
Continued
1801 Art Museum Drive / Jacksonville, Florida 32207 / (904) 396-5733
included a charge of $211,000 included in discontinued operations,
related to tax expense on prior quarter property sales. Net income for
the fourth quarter of 2003 included $739,000 of income from
discontinued operations.
FISCAL 2004 OPERATING RESULTS. Consolidated revenues for fiscal 2004
were $115,789,000, an increase of 13.0% from $102,440,000 the previous
year.
The Transportation segment's revenues for fiscal year 2004 were
$99,424,000, an increase of $11,428,000 or 13.0% over last year.
Transportation revenues increased $6,937,000 over last year due to an
8.8% increase in miles, reflecting increased customer demand for
transportation services. The increased demand also allowed better
pricing for our services and as a result, average revenue per mile,
excluding fuel surcharges, increased 2.5%. Fuel surcharge revenue
increased $1,670,000 over the previous year as a result of the average
price per gallon of diesel fuel increasing $0.17.
Real Estate revenues were $16,365,000, an increase of $1,921,000 or
13.3% in 2004. Lease revenues from developed properties increased
$1,739,000 or 19.8% due to the completion of a fully leased 200,200
square foot office/warehouse at the Hillside Business Park in late
fiscal 2003 and the purchase of two 50% leased office/warehouses at
Interchange Boulevard in Newark, Delaware, in March of 2004. Royalties
from mining operations increased 4.5% during 2004.
Consolidated gross profit for fiscal 2004 increased 28.7% to
$22,482,000 from $17,469,000 for the previous year. Transportation
gross profit was $13,212,000, an increase of $4,172,000 or 46.2%, in
2004 compared to 2003. The increase in gross profit was primarily due
to the increase in miles and prices and a steady level of fixed
expenses. Real Estate gross profit increased $841,000 primarily due to
the increase in rental revenues from the higher average leased square
feet.
Selling, general and administrative expenses for 2004 increased
$899,000 to $9,052,000, primarily due to the accrual of management
incentive compensation, which is based on the Company achieving certain
profitability targets. Selling, general and administration expense as
a percent of consolidated revenues was 7.8% compared to 8.0% last year.
Income from continuing operations was $6,096,000 or $2.05 per diluted
share in fiscal 2004, an increase of 71.6% compared to $3,552,000 or
$1.16 per diluted share for last year.
Income from discontinued operations includes the results of operations
and the gain from sales of a mining property in fiscal 2003 and two
rental properties and a mining property in fiscal 2004. The after-tax
net income from the operations of the sold properties was $188,000 in
2004 and $366,000 in 2003. The after-tax gain from the sale of the
properties was $14,456,000 in 2004 and $657,000 in 2003.
Net income increased to $20,740,000 in fiscal 2004 from $4,575,000 in
2003. Diluted earnings per share increased to $6.97 in fiscal 2004 from
$1.49 in 2003. Diluted total shares outstanding decreased 2.9% from
3,066,000 in 2003 to 2,976,000 in 2004 primarily as a result of the
repurchase and cancellation of 77,533 shares during the year.
SUMMARY AND LOOKOUT. The Company's real estate and transportation
businesses are experiencing an improved business climate as the result
of a stronger regional and national economy. While low interest rates
continue to enhance overall business conditions, the Company's real
estate development operations are receiving encouraging levels of
inquiry from prospective tenants for the Company's flexible
office/warehouse product.
continued
Demand for hauling services remains firm for the Company's
transportation business. Improved pricing is occurring for the
Company's flatbed and tank truck operations. Operating pressures from
volatile diesel fuel costs, tight driver availability, and burdensome
health and liability insurance costs will continue to challenge the
trucking industry. These expense pressures in the face of improving
freight demand should lead to continued price increases for hauling
services.
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; regulations regarding driver qualifications and
hours of service; 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.
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,
comprised of FRP Development Corp, and Florida Rock Properties, Inc.,
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.
PATRIOT TRANSPORTATION HOLDING, INC.
Summary of Consolidated Revenues and Earnings
(In thousands except per share amounts)
Three Months Twelve Months
Ended Ended
September 30, September 30,
2004 2003 2004 2003
---- ---- ---- ----
<s> <c> <c> <c> <c>
Revenues $ 30,049 26,954 115,789 102,440
Gross profit $ 6,262 4,571 22,482 17,469
Income before income taxes $ 2,895 1,525 9,975 5,824
Income from continuing operations $ 1,704 930 6,096 3,552
Income from discontinued operations $ (211) 739 14,644 1,023
Net income $ 1,493 1,669 20,740 4,575
Earnings per common share:
Income from continuing operations
Basic $0.58 0.32 2.08 1.17
Diluted $0.57 0.31 2.05 1.16
Income from discontinued operations
Basic ($0.07) 0.25 5.00 0.34
Diluted ($0.07) 0.25 4.92 0.33
Net income
Basic $0.51 0.57 7.08 1.51
Diluted $0.50 0.56 6.97 1.49
Shares used in computing earnings per
share:
Basic 2,929 2,933 2,931 3,033
Diluted 2,973 2,985 2,976 3,066
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PATRIOT TRANSPORTATION HOLDING, INC.
Condensed Balance Sheets (Unaudited)
(Amounts in thousands)
September 30 September 30
2004 2003
------------- ------------
<s> <c> <c>
Cash and cash equivalents $ 199 $ 757
Cash held in escrow (a) 16,553 1,795
Accounts receivable, net 9,123 7,332
Other current assets 4,191 4,081
Property, plant and equipment, net 149,011 139,379
Other non-current assets 6,317 11,872
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Total Assets $ 185,394 $ 165,216
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Current liabilities 23,099 $11,220
Long-term debt (excluding current maturities) 41,185 57,816
Deferred income taxes 15,767 10,760
Other non-current liabilities 7,256 7,391
Shareholders' equity 98,087 78,029
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Total Liabilities and Shareholders'
Equity $ 185,394 $ 165,216
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</table>
(a) Cash held in escrow consists of proceeds from sales of real estate
held in escrow in anticipation of qualified real estate purchases
in accordance with Section 1031 of the Internal Revenue Code.
In November 2004, $7,150,000 was used to purchase qualified
property and the balance was released from escrow.
Patriot Transportation Holding, Inc.
Business Segments
(Amounts in thousands)
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 Twelve months ended
September 30 September 30
------------------ -------------------
2004 2003 2004 2003
---- ---- ---- ----
<s> <c> <c> <c> <c>
Transportation Revenues $ 25,787 22,939 $ 99,424 87,996
Real Estate Revenues $ 4,262 4,015 $ 16,365 14,444
-------- ------ -------- -------
Total Revenues $ 30,049 26,954 $115,789 102,440
======== ====== ======== =======
Transportation Operating Profit $ 1,516 324 5,625 2,361
Real Estate Operating Profit $ 2,660 2,430 9,269 8,428
Corporate Expenses $ (316) (361) (1,464) (1,473)
--------- ------- --------- --------
Total Operating Profit $ 3,860 2,393 13,430 9,316
</table>