PATRIOT TRANSPORTATION HOLDING, INC./NEWS
Contact: John D. Milton, Jr.
Chief Financial Officer 904/396-5733
PATRIOT TRANSPORTATION HOLDING, INC. ANNOUNCES RESULTS FOR THE FOURTH QUARTER
AND FISCAL YEAR ENDED SEPTEMBER 30, 2008.
Jacksonville, Florida; December 03, 2008 - Patriot Transportation Holding,
Inc. (NASDAQ-PATR) reported net income of $3,163,000 or $1.02 per diluted
share in the fourth quarter of fiscal 2008, an increase of $841,000 or 36.2%
compared to net income of $2,322,000 or $0.74 per diluted share in the same
period last year. Net income for fiscal year ended September 30, 2008 was
$7,968,000 or $2.55 per diluted share, a decrease of $1,537,000 compared to
net income of $9,505,000 or $3.04 per diluted share for the same period last
year.
Results for fiscal 2008 benefited from a gain on condemnation of land of
$1,916,000, 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 fiscal 2008
by reduced demand for flatbed trucking services. Results for fiscal 2008
included a higher effective tax rate of 38.2% versus 35.0% in 2007.
Insurance and losses increased $1,847,000 primarily due to 2007 including a
reduction of expense for changes in estimated prior year retained loss
reserves along with a $357,000 of prior year insurance recoveries. Gains on
sales of transportation equipment in fiscal 2008 were $515,000 lower than
gains in fiscal 2007.
Fourth Quarter Operating Results. For the fourth quarter of fiscal 2008,
consolidated revenues were $45,700,000, an increase of $6,329,000 or 16.1%
over the same quarter last year.
Transportation segment revenues were $39,589,000 in the fourth quarter of
2008, an increase of $6,066,000 over the same quarter last year. Revenue
miles in the current quarter were down 3.4% compared to the fourth quarter
of 2007 due to reduced loads in the flatbed portion of the transportation
segment. Excluding fuel surcharges, revenue per mile increased 8.8% over
the same quarter last year.
Real Estate segment revenues for the fourth quarter of fiscal 2008 were
$6,111,000, an increase of $263,000 or 4.5% over the same quarter last
year. Lease revenue from developed properties increased $217,000 or 5.4%,
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 $46,000 or 2.5%.
Consolidated gross profit was $8,192,000 in the fourth quarter of fiscal
2008, an increase of $1,461,000 or 21.7% compared to $6,731,000 in the same
period last year. Gross profit in the transportation segment increased
$1,913,000 or 57.4% as increased revenue per mile and a decreasing fuel cost
more than offset reduced demand for flatbed trucking services. Gross profit
in the real estate segment decreased $452,000 or 13.3% from the fourth
quarter 2007, due to 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 for the fourth quarter of
fiscal 2008 increased $386,000 over the same quarter last year. Interest
expense net of interest income was $648,000 lower than the same quarter
last year primarily due to higher construction activity capitalized interest.
During the fourth quarter of fiscal 2008 the Company recorded an additional
gain from condemnation of land of $372,000, net of income taxes related to
final agreement with the Virginia Department of Transportation on the value
of 28 acres taken on December 13, 2007.
Fiscal Year 2008 Operating Results. For the fiscal year 2008, consolidated
revenues were $172,049,000, an increase of $17,767,000 or 11.5% over the same
period last year.
Transportation revenues were $147,236,000, an increase of $15,294,000 or
11.6%. Revenue miles in the current year were down 3.2%. Decreased
construction material freight demand from the downturn in housing pushed
revenue miles down in the flatbed operation compared to last year. Excluding
fuel surcharges, revenue per mile increased 5.8%.
Real Estate segment revenues for fiscal 2008 were $24,813,000, an increase of
$2,473,000 or 11.1% over the same period last year. Lease revenue from
developed properties increased $1,341,000 or 8.6%, due to an increase in
occupied square footage along with higher rental rates on new leases.
Royalties and land rent increased $1,132,000 or 16.9% despite reduced tons
mined because of an increase of $284,000 in revenues from timber harvesting,
revenue of $575,000 for reimbursement of higher real estate taxes and
increases in royalties per ton.
Consolidated gross profit was $29,096,000 in fiscal 2008, a decrease of
$1,311,000 or 4.3% compared to $30,407,000 in 2007. Gross profit in the
transportation segment decreased $1,494,000 or 8.2% due to an increase in
cost of operations and reduced revenue miles but was assisted by increased
revenue per mile. Insurance and losses increased $1,847,000 primarily due
to 2007 including a reduction of expense for changes in estimated prior year
retained loss reserves along with a $357,000 of prior year insurance
recoveries. Gains on sales of transportation equipment in fiscal 2008 were
$515,000 lower than gains in fiscal 2007. Gross profit in the real estate
segment increased $183,000 or 1.5% due to higher rental rates on new leases
and $284,000 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 $3,557,000 over 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 $114,000 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 bad debts expense increased $106,000 primarily due an
increase in the estimate of the allowance for doubtful accounts. Audit and
legal fees increased $40,000 due to various projects.
Summary and Outlook. During the fourth quarter of fiscal 2008, increased
revenue per mile in the transportation segment and a decreasing fuel cost
more than offset reduced demand for flatbed trucking services. The flatbed
portion of the transportation segment continues to face poor freight demand
from the housing downturn.
The Company's real estate development business is proceeding with the
completion of the ongoing construction of a new warehouse-office building
at its Lakeside Business Park but will maintain a watchful eye on national
and regional economic health before constructing additional buildings.
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 Fiscal Year
Ended Ended
September 30 September 30
------------ ------------
2008 2007 2008 2007
---- ---- ---- ----
Revenues $ 45,700 39,371 $172,049 154,282
Gross profit $ 8,192 6,731 $ 29,096 30,407
Income before income taxes $ 5,187 2,834 $ 12,898 14,616
Net income $ 3,163 2,322 $ 7,968 9,505
Earnings per common share:
Basic $1.04 0.76 $2.63 3.15
Diluted $1.02 0.74 $2.55 3.04
Weighted average common shares
outstanding:
Basic 3,028 3,039 3,033 3,022
Diluted 3,114 3,148 3,126 3,131
PATRIOT TRANSPORTATION HOLDING, INC.
Condensed Balance Sheets (unaudited)
(Amounts in thousands)
September 30 September 30
2008 2007
------------ ------------
Cash and cash equivalents $ 7,778 $ 26,944
Accounts receivable, net 12,918 10,983
Other current assets 8,167 6,559
Property, plant and equipment, net 210,760 192,523
Investment in Brooksville Joint Venture 6,395 5,904
Other non-current assets 16,022 10,617
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Total Assets $ 262,040 $ 253,530
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Current liabilities $ 23,263 $ 20,228
Long-term debt (excluding current
maturities) 76,153 80,172
Deferred income taxes 18,885 15,274
Other non-current liabilities 6,384 7,395
Shareholders' equity 137,355 130,461
------------ ------------
Total Liabilities and
Shareholders' Equity $ 262,040 $ 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 Fiscal Year Ended
September 30 September 30
------------ ------------
2008 2007 2008 2007
---- ---- ---- ----
Transportation Revenues $ 39,589 33,523 $ 147,236 131,942
Real Estate Revenues 6,111 5,848 24,813 22,340
-------- ------ --------- -------
Total Revenues $ 45,700 39,371 $ 172,049 154,282
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Transportation Operating Profit $ 2,994 1,241 $ 7,934 9,693
Real Estate Operating Profit 2,945 3,397 12,288 12,105
Corporate Expenses (992) (766) (6,738) (3,446)
--------- ----- --------- -------
Total Operating Profit $ 4,947 3,872 $ 13,484 18,352
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