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 FIRST QUARTER
OF FISCAL YEAR 2008.
Jacksonville, Florida; February 5, 2008 - Patriot Transportation Holding,
Inc. (NASDAQ-PATR) reported a net loss of $139,000 or $0.05 per diluted
share in the first quarter of fiscal 2008, a decrease of $2,299,000 compared
to net income of $2,160,000 or $0.69 per diluted share in the same period
last year. Net income for the first quarter of fiscal 2008 was adversely
impacted by the accrual of retirement benefits of $1,460,000, net of income
tax benefits, for the Company's President and CEO, whose retirement is
effective February 6, 2008. The transportation segment was negatively
impacted in the first quarter of fiscal 2008 from continuing adverse demand,
fuel expense and operating disruptions for the flatbed trucking operations.
The first quarter of fiscal 2007 benefited from gains on equipment sales and
prior period insurance recoveries.
First Quarter Operating Results. For the first quarter of fiscal 2008,
consolidated revenues were $39,200,000, an increase of $2,076,000 or 5.6%
over the same quarter last year.
Transportation segment revenues were $32,919,000 in the first quarter of 2008
an increase of $1,195,000 over the same quarter last year. Excluding fuel
surcharges, revenue per mile increased 2.7% over the same quarter last year.
Decreased construction material freight demand and pricing softness from the
downturn in housing pushed revenues down in the flatbed operation compared to
the same quarter last year. Revenue miles in the current quarter were down
3.1% compared to the first quarter of 2007 from reduced loads in the flatbed
portion of the transportation segment.
Real Estate segment revenues for the first quarter of fiscal 2008 were
$6,281,000, an increase of $881,000 or 16.3% over the same quarter last
year. Lease revenue from developed properties increased $507,000 or 13.3%,
due to an increase in occupied square footage along with higher rental rates
on new leases. Royalties and rent increased $374,000 or 23.3% despite
reduced tons mined because of an increase of $311,000 in revenues from timber
harvesting and increases in minimum rent requirements effective in August 2007
and October 2007 pursuant to terms contained in several mining leases.
Consolidated gross profit was $6,223,000 in the first quarter of fiscal 2008, a
decrease of $1,236,000 or 16.6% compared to $7,459,000 in the same period last
year. Gross profit in the transportation segment decreased $1,812,000 or 39.4%
due to increased cost of operations along with decreased freight demand,
resulting in reduced revenue miles and lower pricing in the flatbed portion.
Average fuel cost per gallon in the first quarter of 2008 increased 31%.
This resulted in an increase in fuel cost of $280,000 in excess of the
increase in fuel surcharge revenue in the flatbed portion. Insurance and
losses increased due to $357,000 of prior period recoveries in the same quarter
last year. Other expense increased $455,000 due to higher gains on equipment
sales the same quarter last year along with an increase of $156,000 in vehicle
tires and maintenance. Gross profit in the real estate segment increased
$576,000 or 20.1% from the first quarter 2007, due to higher rental rates on
new leases and $311,000 increased gross profit from timber sales.
Continued
1801 Art Museum Drive / Jacksonville, Florida 32207 / (904) 396-5733
Selling, general and administrative expenses increased $2,329,000 over the
same quarter last year. The current quarter includes $2,371,000 accrual of
retirement benefits for the Company's President and Chief Executive
Officer.
Summary and Outlook. The flatbed portion of the transportation segment
continues to face severe industry over capacity and significant disruptions
to profitability from poor freight demand, utilization disruption and
pricing softness resulting from the housing downturn as well as high fuel
expenses. This downturn is expected to continue to impact the operations
of the flatbed portion of our transportation business throughout calendar
2008.
The Company's real estate development business has benefited 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. The Company
expects to continue expanding its portfolio of warehouse-office products
consistent with maintaining a watchful eye on national and regional
economic health.
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.
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
Ended
December 31
2007 2006
---- ----
Revenues $ 39,200 37,124
Gross profit $ 6,223 7,459
(Loss) Income before income taxes $ (228) 3,542
Net (loss) income $ (139) 2,160
(Loss) Earnings per common share:
Basic $ (0.05) 0.72
Diluted $ (0.05) 0.69
Weighted average common shares outstanding:
Basic 3,042 2,997
Diluted 3,042 3,109
Continued
PATRIOT TRANSPORTATION HOLDING, INC.
Condensed Balance Sheets (unaudited)
(Amounts in thousands)
December 31 September 30
2007 2007
----------- ------------
Cash and cash equivalents $ 24,732 $ 26,944
Accounts receivable, net 10,250 10,983
Other current assets 7,713 6,559
Property, plant and equipment, net 195,895 192,523
Investment in Brooksville Joint Venture 6,143 5,904
Other non-current assets 10,908 10,617
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Total Assets $ 255,641 $ 253,530
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Current liabilities $ 23,258 $ 20,228
Long-term debt (excluding current
maturities) 79,192 80,172
Deferred income taxes 15,846 15,274
Other non-current liabilities 6,144 7,395
Shareholders' equity 131,201 130,461
---------- -----------
Total Liabilities and Shareholders'
Equity $ 255,641 $ 253,530
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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
December 31
2007 2006
---- ----
Transportation Revenues $ 32,919 31,724
Real Estate Revenues 6,281 5,400
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Total Revenues $ 39,200 37,124
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Transportation Operating Profit 646 2,412
Real Estate Operating Profit 3,440 2,864
Corporate Expenses (3,250) (875)
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Total Operating Profit $ 836 4,401
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