EXHIBIT 99.1
PATRIOT TRANSPORTATION HOLDING, INC./NEWS
Contact: John D. Milton, Jr.
Chief Financial Officer 904/396-5733
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PATRIOT TRANSPORTATION HOLDING, INC. ANNOUNCES RESULTS FOR THE THIRD
QUARTER AND FIRST NINE MONTHS OF FISCAL YEAR 2008.
Jacksonville, Florida; August 06, 2008 - Patriot Transportation
Holding, Inc. (NASDAQ-PATR) reported net income of $2,774,000 or
$0.89 per diluted share in the third quarter of fiscal 2008, an
increase of $348,000 or 14.3% compared to net income of $2,426,000
or $0.77 per diluted share in the same period last year. Net income
for the first nine months of fiscal 2008 was $4,805,000 or $1.54 per
diluted share, a decrease of $2,378,000 compared to net income of
$7,183,000 or $2.30 per diluted share for the same period last year.
Net income for the first nine months of fiscal 2008 benefited from a
gain on condemnation of land of $1,544,000, net of income taxes but
was adversely impacted by the accrual of retirement benefits of
$1,541,000, net of income tax benefits, for the Company's previous
President and CEO, whose retirement was effective February 6, 2008.
The transportation segment was negatively impacted in the first nine
months of fiscal 2008 by reduced demand for flatbed trucking services
and high fuel expenses. The first nine months of fiscal 2007
benefited from gains on equipment sales and prior period insurance
recoveries.
Third Quarter Operating Results. For the third quarter of fiscal 2008,
consolidated revenues were $46,061,000, an increase of $6,430,000 or
16.2% over the same quarter last year.
Transportation segment revenues were $39,990,000 in the third quarter
of 2008, an increase of $5,883,000 over the same quarter last year.
Revenue miles in the current quarter were down 2.6% compared to the
third quarter of 2007 due to reduced loads in the flatbed portion of
the transportation segment. Excluding fuel surcharges, revenue per
mile increased 8.4% over the same quarter last year. In addition to
general rate increases, a shift to new business in the flatbed division
was a significant factor in this increase.
Real Estate segment revenues for the third quarter of fiscal 2008 were
$6,071,000, an increase of $547,000 or 9.9% over the same quarter last
year. Lease revenue from developed properties increased $311,000 or
8.1%, due to an increase in occupied square footage, higher rental
rates on new leases, and increased revenue from reimbursed real estate
taxes. Royalties and land rent increased $236,000 or 13.9% due to
increased reimbursements for real estate taxes and higher tons sold.
Consolidated gross profit was $8,628,000 in the third quarter of fiscal
2008, an increase of $834,000 or 10.7% compared to $7,794,000 in the
same period last year. Gross profit in the transportation segment
increased $778,000 or 16.2% as increased revenue per mile more than
offset reduced demand for flatbed trucking services and high fuel
expenses. Gross profit in the real estate segment increased $56,000
or 1.9% from the third quarter 2007, due to higher rental rates on
new leases offset by increased real estate taxes that could not be
billed to tenants.
Continued
1801 Art Museum Drive / Jacksonville, Florida 32207 / (904) 396-5733
Selling, general and administrative expenses increased $392,000 over
the same quarter last year. Payroll and payroll taxes increased
$247,000 due to amounts paid to the Company's prior CFO who retired
June 16, 2008 along with additional staffing and payroll taxes on
stock option exercises.
Nine Months Operating Results. For the first nine months of fiscal
2008, consolidated revenues were $126,349,000, an increase of
$11,438,000 or 10.0% over the same period last year.
Transportation segment revenues were $107,647,000 in the first nine
months of 2008, an increase of $9,228,000 over the same period last
year. Revenue miles in the first nine months of fiscal 2008 were
down 3.1% compared to the first nine months of fiscal 2007 due to
reduced loads in the flatbed portion of the transportation segment.
Excluding fuel surcharges, revenue per mile increased 5.3% over the
same period last year. In addition to general rate increases the
addition of new business in the flatbed division during the third
quarter was a significant factor in this increase. Until the third
quarter decreased construction material freight demand and pricing
softness from the downturn in housing pushed revenues down in the
flatbed operation compared to the same period last year.
Real Estate segment revenues for the first nine months of fiscal 2008
were $18,702,000, an increase of $2,210,000 or 13.4% over the same
period last year. Lease revenue from developed properties increased
$1,125,000 or 9.6%, due to an increase in occupied square footage
along with higher rental rates on new leases. Royalties and land rent
increased $1,085,000 or 22.5% despite reduced tons mined because of an
increase of $359,000 in revenues from timber harvesting, revenue of
$383,000 for reimbursement of higher real estate taxes, and increases
in royalties per ton.
Consolidated gross profit was $20,904,000 in the first nine months of
fiscal 2008, a decrease of $2,772,000 or 11.7% compared to $23,676,000
in the same period last year. Gross profit in the transportation
segment decreased $3,407,000 or 22.8% due to the increase in cost of
operations along with decreased freight demand, resulting in reduced
revenue miles in the flatbed portion. Average fuel cost per gallon in
the first nine months of 2008 increased 41% over the same period last
year. This resulted in an increase in fuel cost of $679,000 in excess
of the increase in fuel surcharge revenue in the flatbed portion.
Insurance and losses increased $1,790,000 primarily due to the same
period last year including a reduction of expense for changes in
estimated prior year retained loss reserves as of June 30, 2007 along
with a $357,000 of prior year insurance recoveries recorded in the three
months ended December 31, 2006. Other expense increased $1,393,000 due
to $752,000 higher gains on equipment sales the same period last year
along with an increase of $708,000 in vehicle tires and maintenance.
Gross profit in the real estate segment increased $635,000 or 7.3% from
the first nine months 2007, due to higher rental rates on new leases and
$359,000 increased gross profit from timber harvesting offset by
increased real estate taxes that could not be billed to tenants.
Selling, general and administrative expenses increased $3,171,000 over
the same period last year. The current year includes $2,503,000 accrual
of retirement benefits for the Company's previous President and CEO.
Payroll and payroll taxes increased $352,000 due to amounts paid to the
Company's prior CFO who retired June 16, 2008 along with additional
staffing and payroll taxes on stock option exercises. Estimated allowance
for doubtful accounts expense increased $78,000 primarily due to the
inclusion in the prior year of a reversal of prior accruals. Audit and
legal fees increased $89,000 due to various projects.
Summary and Outlook. The flatbed portion of the transportation segment
continues to face poor freight demand from the housing downturn as well
as high fuel expenses. During the third quarter of fiscal 2008,
increased revenue per mile in the transportation segment more than offset
reduced demand for flatbed trucking services and high fuel expenses.
The Company's real estate development business continues to expand its
portfolio of warehouse-office products consistent with maintaining a
watchful eye on national and regional economic health.
In July 2008, a subsidiary of the Company, FRP Bird River, LLC, entered
into an agreement to sell approximately 121 acres of land in Baltimore
County, Maryland to Mackenzie Investment Group, LLC. The purchase price
for the property is $25,265,000, subject to certain potential purchase
price adjustments. The agreement of sale is subject to certain
contingencies, including the satisfactory completion of the buyer's
inspection period. Closing is dependent upon several conditions
including additional government approvals and may be two or more
years away.
In May 2008, the Company received final approval from the Zoning
Commission of the District of Columbia of its planned unit development
application for the Company's 5.8 acre undeveloped waterfront site on
the Anacostia River in Washington, D.C. This site is located adjacent
to the recently opened Washington Nationals Baseball Park. The site
currently is leased to a subsidiary of Vulcan Materials Company under
a short-term lease. The approved planned unit development permits
the Company to develop a four building, mixed use project, containing
approximately 545,800 square feet of office and retail space and
approximately 569,600 square feet of additional space for residential
and hotel uses. The approved development would include numerous
publicly accessible open spaces and a waterfront esplanade along the
Anacostia River.
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.
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PATRIOT TRANSPORTATION HOLDING, INC.
Summary of Consolidated Revenues and Earnings (unaudited)
(In thousands except per share amounts)
Three Months Nine Months
Ended Ended
June 30 June 30
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2008 2007 2008 2007
---- ---- ---- ----
Revenues $ 46,061 39,631 $126,349 114,911
Gross profit $ 8,628 7,794 $ 20,904 23,676
Income before income taxes $ 4,240 3,979 $ 7,711 11,782
Net income $ 2,774 2,426 $ 4,805 7,183
Earnings per common share:
Basic $0.92 0.80 $1.58 2.38
Diluted $0.89 0.77 $1.54 2.30
Weighted average common shares
outstanding:
Basic 3,024 3,035 3,034 3,016
Diluted 3,114 3,142 3,130 3,125
PATRIOT TRANSPORTATION HOLDING, INC.
Condensed Balance Sheets (unaudited)
(Amounts in thousands)
June 30 September 30
2008 2007
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Cash and cash equivalents $ 15,916 $ 26,944
Accounts receivable, net 12,460 10,983
Other current assets 5,547 6,559
Property, plant and equipment, net 204,997 192,523
Investment in Brooksville Joint Venture 6,305 5,904
Other non-current assets 10,160 10,617
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Total Assets $ 255,385 $ 253,530
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Current liabilities $ 21,218 $ 20,228
Long-term debt (excluding current
maturities) 77,183 80,172
Deferred income taxes 17,155 15,274
Other non-current liabilities 6,106 7,395
Shareholders' equity 133,723 130,461
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Total Liabilities and Shareholders'
Equity $ 255,385 $ 253,530
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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 Nine Months Ended
June 30 June 30
------- -------
2008 2007 2008 2007
---- ---- ---- ----
Transportation Revenues $ 39,990 34,107 $ 107,647 98,419
Real Estate Revenues 6,071 5,524 18,702 16,492
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Total Revenues $ 46,061 39,631 $ 126,349 114,911
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Transportation Operating
Profit $ 3,318 2,600 $ 4,940 8,452
Real Estate Operating
Profit 3,055 2,999 9,343 8,708
Corporate Expenses (1,070) (738) (5,746) (2,680)
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Total Operating Profit $ 5,303 4,861 $ 8,537 14,480
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