EXHIBIT 99.1
PATRIOT TRANSPORTATION HOLDING, INC./NEWS
Contact: John E. Anderson
Chief Executive Officer 904/396-5733, Ext. 101
PATRIOT TRANSPORTATION HOLDING, INC. ANNOUNCES RESULTS FOR THE FOURTH
QUARTER AND FISCAL YEAR ENDED SEPTEMBER 30, 2007.
Jacksonville, Florida; December 4, 2007 - Patriot Transportation Holding,
Inc. (NASDAQ-PATR) reported net income for the fourth quarter of fiscal
2007 of $2,322,000 or $.74 per diluted share, a decrease of $309,000 or
11.7% compared to $2,631,000 or $.85 per diluted share for the same period
last year. Net income for fiscal year ended September 30, 2007 was
$9,505,000 or $3.04 per diluted share, an increase of $1,427,000 or 17.7%
compared to $8,078,000 or $2.62 per diluted share for the same period
last year.
Results for fiscal 2007 were assisted by a lower effective tax rate of
35.0% versus 39.0% in the prior year representing a $585,000 reduction
in income tax expense. This was primarily due to a reduction in income
tax reserves from the expiration of the statutes of limitations related
to certain positions and the finalization of a Federal income tax audit.
Net income for fiscal 2006 was adversely impacted by $787,000 ($.25 per
diluted common share) of vacation expense, net of income tax benefits,
that was not previously accrued.
Fourth Quarter Operating Results. For the fourth quarter of fiscal
2007, consolidated revenues were $39,371,000, an increase of $592,000
or 1.5% over the same quarter last year.
Transportation segment revenues were $33,523,000 in the fourth quarter
of 2007, an increase of $351,000 over the same quarter last year.
Revenue miles in the current quarter were up .7% compared to the fourth
quarter of 2006 primarily from improved driver manning and higher
tractor count. Excluding fuel surcharges, revenue per mile increased
2.1% despite a trend in the Company's flatbed operation of decreasing
freight demand and pricing softness from the housing downturn and
attendant lower demand for construction materials.
Real Estate segment revenues for the fourth quarter of fiscal 2007
were $5,848,000, an increase of $241,000 or 4.3% over the same quarter
last year. Lease revenue from developed properties increased $52,000 or
1.3%, due to an increase in occupied square footage and higher rental
rates on new leases. Revenues from mining operations increased
$188,000 or 11.3% due to revenue from timber harvesting offset by
reduced tons mined.
Consolidated gross profit was $6,731,000 in the fourth quarter of fiscal
2007 compared to $8,193,000 in the same period last year, a decrease of
17.8%. Gross profit in the transportation segment decreased $1,577,000 or
32.1% primarily due to significant benefits realized in the fourth quarter
of fiscal 2006 from reduced insurance reserves. Gross profit in the
real estate segment increased $115,000 or 3.5% from the fourth quarter
2006, due to income from timber harvesting offset by increased staffing
expense to facilitate portfolio expansion.
Selling, general and administrative expenses decreased $29,000 over the
same quarter last year. Those costs decreased due to a $76,000 reduction
in audit fees and Sarbanes-Oxley compliance costs offset by an increase
in salaries. SG&A expense was 7.3% of revenue for the fourth quarter of
fiscal 2007 compared to 7.4% for the same period last year.
Continued
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1801 Art Museum Drive / Jacksonville, Florida 32207 / (904) 396-5733
Fiscal Year 2007 Operating Results. For the fiscal year 2007, consolidated
revenues were $154,282,000, an increase of $6,908,000 or 4.7% over the same
period last year.
Transportation segment revenues were $131,942,000 in fiscal year 2007, an
increase of $5,690,000 or 4.5% over 2006. Revenue miles in fiscal year 2007
were up 5.2% primarily from improved driver manning and higher tractor
count. Excluding fuel surcharges, revenue per mile increased 1.1%
reflecting a trend of decreasing freight demand and pricing softness
from the downturn in housing and attendant lower demand for construction
materials.
Real Estate segment revenues for fiscal year 2007 were $22,340,000, an
increase of $1,218,000 or 5.8% over last year. Lease revenue from
developed properties increased $1,181,000 or 8.2%, due to an increase
in occupied square footage and higher rental rates on new leases.
Royalties and rent from mining operations increased despite reduced
tons mined because of revenue from timber harvesting and increases
in minimum rent requirements pursuant to terms contained in several
mining leases that became effective in April 2006 and August 2007.
Consolidated gross profit was $30,407,000 in fiscal 2007 compared to
$29,152,000 compared to last year, an increase of 4.3%. Gross profit
in the transportation segment increased $783,000 or 4.5%, due to higher
miles and the vacation expense adjustment that was included in fiscal
2006. Gross profit in the real estate segment increased $472,000 or
4.1% over the last year, due to the increased revenues partially offset
by costs associated with increased square footage leased and increased
staffing expense to facilitate continuing portfolio expansion.
Selling, general and administrative expenses decreased $42,000 over last year
to $12,055,000. SG&A expense was 7.8% of revenue for fiscal 2007 compared to
8.2% for fiscal 2006.
Summary and Outlook.
The Company's transportation segment faces on-going challenges from high
diesel fuel expenses. SunBelt continues to face negative construction
materials industry trends and significant profitability challenges due
to poor freight demand, utilization disruption, pricing softness and
sharply higher diesel fuel expense net of surcharges. This downturn
will continue into 2008.
The Company's real estate development business continues to benefit from
active inquiry from prospective tenants for its warehouse-office
product and corresponding favorable occupancy rates. The Company also
continues to explore opportunities for development of various properties
while expanding its portfolio of warehouse-office products. On July 31,
2007, the Company borrowed $36,000,000 secured by seven developed
properties at a 20 year fixed rate of 5.74%. A portion of the proceeds
were used to repay balances outstanding under the Company's Revolver
and the remaining proceeds will be used to fund new construction and
purchase land for future development. Net interest expense for fiscal
2008 is expected to increase versus fiscal 2007 by approximately
$1,200,000 due to lower capitalized interest and interest rates on
mortgage debt exceeding short-term cash investments.
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
economic conditions; competitive factors; political, economic, regulatory
and climatic conditions; driver availability and cost; the impact of
future regulations regarding the transportation industry; freight
demand for petroleum product and levels of construction activity in
the Company's markets; fuel costs; risk insurance markets; demand for
flexible warehouse/office facilities; ability to obtain zoning and
entitlements necessary for property development; 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.
Continued
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 (unaudited)
(In thousands except per share amounts)
Three Months Fiscal Year
Ended Ended
September 30 September 30
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2007 2006 2007 2006
---- ---- ---- ----
Revenues $39,371 $38,779 $154,282 $147,374
Gross profit $ 6,731 $ 8,193 $ 30,407 $ 29,152
Income before income taxes $ 2,834 $ 4,392 $ 14,616 $ 13,249
Net income $ 2,322 $ 2,631 $ 9,505 $ 8,078
Earnings per common share:
Basic $.76 $.88 $3.15 $2.71
Diluted $.74 $.85 $3.04 $2.62
Weighted average common
shares outstanding:
Basic 3,039 2,996 3,022 2,980
Diluted 3,148 3,098 3,131 3,087
PATRIOT TRANSPORTATION HOLDING, INC.
Condensed Balance Sheets (unaudited)
(Amounts in thousands)
September 30, September 30,
2007 2006
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Cash and cash equivalents $ 26,944 $ 154
Accounts receivable, net 10,983 11,761
Other current assets 6,5599 5,497
Property, plant and equipment, net 192,523 192,073
Other non-current assets 16,521 9,730
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Total Assets $ 253,530 $ 219,215
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Current liabilities $ 20,228 $ 18,192
Long-term debt (excluding current
maturities) 80,172 60,548
Deferred income taxes 15,274 14,968
Other non-current liabilities 7,395 7,455
Shareholders' equity 130,461 118,052
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Total Liabilities and
Shareholders' Equity $ 253,530 $ 219,215
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Continued
PATRIOT TRANSPORTATION HOLDING, INC.
Business Segments (unaudited)
(Amounts in thousands)
The Company has identified two business segments, Transportation and
Real Estate, each of which is managed separately along product lines.
All of the Company's operations are located in the Southeastern and
Mid-Atlantic states. Operating results for the Company's business
segments are as follows:
Three Months Ended Fiscal Year
September 30 September 30
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2007 2006 2007 2006
---- ---- ---- ----
Transportation Revenues $33,523 $33,172 $ 131,942 $ 126,252
Real Estate Revenues 5,848 5,607 22,340 21,122
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Total Revenues $39,371 $38,779 $ 154,282 $ 147,374
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Transportation Operating
Profit $ 1,241 $ 2,887 $ 9,693 $ 8,875
Real Estate Operating Profit 3,397 3,282 12,105 11,633
Corporate Expenses (766) (864) (3,446) (3,453)
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Total Operating Profit $ 3,872 $ 5,305 $ 18,352 $ 17,055
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