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 FIRST
QUARTER OF FISCAL YEAR 2005.
Jacksonville, Florida; January 26, 2005 - Patriot Transportation Holding,
Inc. (NASDAQ-PATR) reported net income increased 25.6% to $1,656,000 or
$.55 per diluted common share for the first quarter of fiscal year 2005,
compared to $1,318,000 or $.44 per diluted common share for the same
quarter last year. Fiscal 2004 first quarter included $87,000 of income
from discontinued operations. Income from continuing operations increased
34.5% to $1,656,000 in the first quarter of fiscal 2005 from $1,231,000 in
the first quarter of 2004.
First Quarter Operating Results. For the first quarter of fiscal 2005,
consolidated revenues were $31,374,000, an increase of $3,690,000 or 13.3%
over the same quarter last year.
The transportation segment's revenues for the first quarter of fiscal 2005
were $27,035,000, an increase of $3,264,000 or 13.7% over the same quarter
last year. Fuel surcharges accounted for $1,610,000 of the increase,
resulting from higher diesel fuel costs during the quarter compared to the
same quarter last year. Excluding fuel surcharges, revenue per mile
increased 5.1%, reflecting stronger pricing for hauling services. Revenue
miles in the current quarter were up 2.0% compared to the first quarter of
2004.
Real estate revenues were $4,339,000 for the first quarter of fiscal 2005,
an increase of $426,000 or 10.9% from the first quarter of fiscal 2004.
Lease revenue from developed properties increased $466,000 or 19.0%, due to
a 25.4% increase in occupied square footage. The increased space resulted
from the purchase of two completed buildings in March 2004 and the purchase
of one building in early November 2004. These purchases added 491,000 total
square feet and 339,000 of leased square feet during the first quarter of
fiscal 2005. Royalties from mining operations decreased as a result of a
7.5% decrease in tons sold as compared to the same quarter last year.
Consolidated gross profit for the first quarter of 2005 was $5,917,000, an
increase of $694,000 or 13.3% from the first quarter of last year. Gross
profit in the transportation segment increased $272,000 or 8.6%, primarily
due to the increases in pricing and volume, offset by increased risk and
health insurance costs as compared to the same quarter last year. Gross
profit in the real estate segment increased $423,000 or 20.5% from the
first quarter of 2004, primarily due to increased lease revenue from higher
average leased square footage from the purchase of the buildings discussed
above.
Income from continuing operations was $1,656,000 or $.55 per diluted common
share for the first quarter of fiscal 2005, a 34.5% increase over the first
quarter of last year.
Net income was $1,656,000 or $.55 per diluted share for the first quarter
of fiscal 2005 compared to $1,318,000 or $.44 per diluted common share for
the same quarter last year. Net income for the first quarter of 2004
included $87,000 of income from discontinued operations, net of tax.
Continued
1801 Art Museum Drive / Jacksonville, Florida 32207 / (904) 396-5733
Summary and Outlook. The Company's real estate and transportation
businesses continue to experience improved market conditions as the
result of a stronger regional and national economy. Management expects
both the real estate and transportation segments to benefit from
favorable demand within their respective businesses.
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 Southeastern 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
Ended
December 31,
2004 2003
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<s> <c> <c>
Revenues $ 31,374 27,684
Gross profit $ 5,917 5,223
Income before income taxes $ 2,714 2,019
Income from continuing operations $ 1,656 1,231
Income from discontinued operations $ - 87
Net income $ 1,656 1,318
Earnings per common share:
Income from continuing operations
Basic $ 0.56 0.42
Diluted $ 0.55 0.41
Income from discontinued operations
Basic $ - 0.03
Diluted $ - 0.03
Net income
Basic $ 0.56 0.45
Diluted $ 0.55 0.44
Common shares used in computing earnings
per share:
Basic 2,932 2,933
Diluted 3,000 2,983
Continued
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PATRIOT TRANSPORTATION HOLDING, INC.
Condensed Balance Sheets (Unaudited)
(Amounts in thousands)
December 31 September 31
2004 2004
----------- ------------
<s> <c> <c>
Cash and cash equivalents $ 359 $ 199
Cash held in escrow (a) - 16,553
Accounts receivable, net 8,237 9,123
Other current assets 5,707 4,191
Property, plant and equipment, net 160,624 149,011
Other non-current assets 6,777 6,317
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Total Assets $ 181,704 $ 185,394
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Current liabilities $ 12,604 $ 23,099
Long-term debt (excluding current maturities) 49,988 41,185
Deferred income taxes 11,667 15,767
Other non-current liabilities 7,301 7,256
Shareholders' equity 100,144 98,087
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Total Liabilities and
Shareholders' Equity $ 181,704 $ 185,394
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(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, $7,200,000 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
December 31
2004 2003
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<s> <c> <c>
Transportation revenues $27,035 $ 23,771
Real estate revenues 4,339 3,913
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Total revenues $31,374 $ 27,684
Transportation operating profit $ 1,450 $ 1,346
Real estate operating profit 2,486 2,062
Corporate expenses (419) (404)
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Total operating profit $ 3,517 $ 3,004
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