EXHIBIT 99.1
PATRIOT TRANSPORTATION HOLDING, INC./NEWS
Contact: John D. Baker II
Chief Executive Officer 904/396-5733, Ext. 101
PATRIOT TRANSPORTATION HOLDING, INC. ANNOUNCES A GAIN ON CONDEMNATION
OF LAND AND RESTATEMENT OF RESULTS FOR THE FIRST QUARTER OF FISCAL
YEAR 2008.
Jacksonville, Florida; March 7, 2008 - Patriot Transportation Holding,
Inc. (NASDAQ-PATR) reported a gain of $2,507,000 before income taxes on
the taking by the Virginia Department of Transportation of 28 acres of
a 101 acre tract of land in Prince William County, Virginia, owned by the
Company. This taking occurred in December 2007 and should have been
reflected in the Company's financial results for the first fiscal quarter.
Therefore the Company is restating its results of operations for the
first quarter of fiscal year 2008 to reflect this transaction. The
Company intends to find and purchase replacement property with the
condemnation proceeds.
On a restated basis, net income was $1,405,000 or $.45 per diluted share
in the first quarter of fiscal 2008, a decrease of $755,000 compared to
net income of $2,160,000 or $0.69 per diluted share in the same period
last year. Restated net income for the first quarter of fiscal 2008
was favorably impacted by the gain of $1,544,000, net of income taxes
related to the condemnation of real estate and 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 was
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.
The following table sets forth the effects of the restatement on our
previously reported financial statements:
PATRIOT TRANSPORTATION HOLDING, INC.
Summary of Consolidated Revenues and Earnings (unaudited)
(In thousands except per share amounts)
Three Months
Ended
December 31
2007 2007
---- ----
(restated) (previously
reported)
Revenues $ 39,200 39,200
Gross profit $ 6,223 6,223
Income (loss) before income taxes $ 2,279 (228)
Net income (loss) $ 1,405 (139)
Earnings (loss) per common share:
Basic $ 0.46 (0.05)
Diluted $ 0.45 (0.05)
Weighted average common shares
outstanding:
Basic 3,042 3,042
Diluted 3,150 3,042
Continued
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1801 Art Museum Drive / Jacksonville, Florida 32207 /
(904) 396-5733
PATRIOT TRANSPORTATION HOLDING, INC.
Condensed Balance Sheets (unaudited)
(Amounts in thousands)
December 31 December 31
2007 2007
----------- -----------
(restated) (previously
reported)
Cash and cash equivalents $ 24,732 $ 24,732
Accounts receivable, net 10,250 10,250
Accounts receivable from condemnation 5,860 -
Other current assets 7,713 7,713
Property, plant and equipment, net 192,542 195,895
Investment in Brooksville Joint Venture 6,143 6,143
Other non-current assets 10,908 10,908
---------- ----------
Total Assets $ 258,148 $ 255,641
========== ===========
Current liabilities $ 23,258 $ 23,258
Long-term debt (excluding current
maturities) 79,192 79,192
Deferred income taxes 16,809 15,846
Other non-current liabilities 6,144 6,144
Shareholders' equity 132,745 131,201
---------- -----------
Total Liabilities
and Shareholders' Equity $ 258,148 $ 255,641
Restated 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
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
---- ----
(restated)
Revenues $ 39,200 37,124
Gross profit $ 6,223 7,459
Income before income taxes $ 2,279 3,542
Net income $ 1,405 2,160
Earnings per common share:
Basic $ 0.46 0.72
Diluted $ 0.45 0.69
Weighted average common shares
outstanding:
Basic 3,042 2,997
Diluted 3,150 3,109
Continued
PATRIOT TRANSPORTATION HOLDING, INC.
Condensed Balance Sheets (unaudited)
(Amounts in thousands)
December 31 September 30
2007 2007
----------- -------------
(restated)
Cash and cash equivalents $ 24,732 $ 26,944
Accounts receivable, net 10,250 10,983
Accounts receivable from condemnation 5,860
Other current assets 7,713 6,559
Property, plant and equipment, net 192,542 192,523
Investment in Brooksville Joint Venture 6,143 5,904
Other non-current assets 10,908 10,617
----------- ------------
Total Assets $ 258,148 $ 253,530
Current liabilities $ 23,258 $ 20,228
Long-term debt (excluding current
maturities) 79,192 80,172
Deferred income taxes 16,809 15,274
Other non-current liabilities 6,144 7,395
Shareholders' equity 132,745 130,461
----------- ------------
Total Liabilities and
Shareholders' Equity $ 258,148 $ 253,530
============ ============
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
---------- -------
Total Revenues $ 39,200 37,124
========== =======
Transportation Operating Profit 646 2,412
Real Estate Operating Profit 3,440 2,864
Corporate Expenses (3,250) (875)
----------- -------
Total Operating Profit $ 836 4,401
========== =======