EXHIBIT 99
PATRIOT TRANSPORTATION HOLDING, INC./NEWS
Contact: John E. Anderson
Chief Executive Officer 904/396-5733, Ext. 101
PATRIOT TRANSPORTATION HOLDING, INC. ANNOUNCES RESTATED RESULTS OF
OPERATIONS.
Jacksonville, Florida; December 23, 2005 - Patriot Transportation Holding,
Inc. (NASDAQ-PATR) announced today that it will revise its previously
reported earnings results for the fiscal 2005 fourth quarter and full year
and will restate its financial statements for certain prior periods. The
impact of this restatement is to increase revenues, earnings before income
taxes, net earnings and diluted earnings per common share. The adjustment
has no impact on the Company's cash flows or loan compliance.
In November 2005, the Company initiated a review of certain aspects of
its accounting practices regarding real estate leases. As a result of
this review, the Company changed its practice related to scheduled rate
increases on operating leases and restated certain historical financial
information for prior periods to correct its lease accounting.
Historically, the Company has recognized rental revenue on a cash basis
for real estate leases with scheduled annual rate increases of 3% or
less. Based on a re-examination of the applicable accounting literature,
the Company determined that the proper accounting practice is to
recognize rental revenue on a straight line basis over the contractual
term of the lease.
On December 22, 2005, the Audit Committee of the Board of Directors of
the Company concluded that the Company will restate its consolidated
statements of income, shareholders' equity and cash flows for the year
ended September 30, 2003. For the year ended September 30, 2004, the
Company will restate its consolidated statement of shareholder's equity,
and its consolidated balance sheet as of September 30, 2004. There were
not any differences related to corrections reported in the consolidated
statements of income or cash flows for the year ended September 30, 2004.
The restatement also affected periods prior to fiscal 2003. The impact
of the restatement on such prior periods will be reflected as an addition
of $810,000 to retained earnings as of September 30, 2002. The Company
will also restate its quarterly results of operations for fiscal 2005.
As a result of the restatement, these financial statements should no
longer be relied upon.
Continued
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1801 Art Museum Drive / Jacksonville, Florida 32207 / (904) 396-5733
As a result of this restatement, the Company will adjust its
financial results as follows (in thousands, except per share data):
Year Ended September 30, 2005
-----------------------------
As Previously
Reported Adjustments As Adjusted
-------- ----------- -----------
Total revenues $ 130,855 181 131,036
Gross profit 24,812 181 24,993
Operating profit 15,010 181 15,191
Income from continuing
operations before tax 11,764 181 11,945
Provision for income
taxes 4,267 69 4,336
Income from continuing
operations 7,497 112 7,609
Net Income 7,497 112 7,609
Earnings per common share:
Basic $ 2.54 0.04 2.58
Diluted $ 2.47 0.03 2.50
Other assets 5,422 1,608 7,030
Deferred income taxes 13,783 611 14,394
Retained earnings 79,507 997 80,504
Total shareholders'
equity 106,904 997 107,901
As a result of this restatement, the Company will adjust its financial
results as follows (in thousands, except per share data):
Quarterly Results for the Year Ended September 30, 2005
-------------------------------------------------------
First Quarter Second Quarter Third Quarter Fourth Quarter
------------- -------------- ------------- --------------
As As As As
Previously As Previously As Previously As Previously As
Reported Restated Reported Restated Reported Restated Reported Restated
-------- -------- --------- -------- -------- -------- -------- --------
<s> <c> <c> <c> <c> <c> <c> <c> <c>
Revenues 31,374 31,419 32,014 32,059 33,061 33,106 34,406 34,452
Gross profit 5,917 5,962 5,669 5,714 6,807 6,852 6,420 6,465
Income from continuing
Operations 1,656 1,684 1,545 1,573 2,112 2,140 2,184 2,212
Net income 1,656 1,684 1,545 1,573 2,112 2,140 2,184 2,212
Earnings per common share:
Basic 0.56 0.57 0.52 0.53 0.71 0.72 0.74 0.75
Diluted 0.55 0.56 0.51 0.52 0.69 0.70 0.71 0.72
</table>
Year Ended September 30, 2004
-----------------------------
As Previously
Reported Adjustments As Restated
-------- ----------- -----------
Other assets $ 4,137 1,427 5,564
Deferred income taxes 15,767 542 16,309
Retained earnings 72,010 885 72,895
Total shareholders'
equity 98,087 885 98,972
Year Ended September 30, 2003
-----------------------------
As Previously
Reported Adjustments As Restated
-------- ----------- -----------
Total revenues $ 102,440 121 102,561
Gross profit 17,469 121 17,590
Operating profit 9,316 121 9,437
Income from continuing
operations before tax 5,824 121 5,945
Provision for income
taxes 2,272 46 2,318
Income from continuing
operations 3,552 75 3,627
Net Income 4,575 75 4,650
Earnings per common share:
Bas $ 1.51 0.02 1.53
Diluted $ 1.49 0.02 1.51
Cash flows from operating activities:
Net income $ 4,575 75 4,650
Deferred income taxes 879 46 925
Net changes in operating
assets and liabilities:
Other assets (705) (121) (826)
Net cash provided by
Operating activities 15,345 - 15,345
The full impact of the restatement will be set forth in the Company's
Annual Report on Form 10K which is expected to be filed by December 29,
2005.
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.