EXHIBIT 99
PATRIOT TRANSPORTATION HOLDING, INC./NEWS
Contact: John D. Milton, Jr.
Chief Financial Officer 904/396-5733
PATRIOT TRANSPORTATION HOLDING, INC. ANNOUNCES RESULTS FOR THE SECOND
QUARTER AND FIRST HALF OF FISCAL YEAR 2009.
Jacksonville, Florida; May 06, 2009 - Patriot Transportation Holding,
Inc. (NASDAQ-PATR) reported net income of $1,409,000 or $0.45 per
diluted share in the second quarter of fiscal 2009, an increase of
$783,000 or 125% compared to net income of $626,000 or $0.20 per
diluted share in the same period last year. Net income for the first
six months of fiscal 2009 was $3,156,000 or $1.02 per diluted share,
an increase of $1,125,000 or 55.4% compared to net income of
$2,031,000 or $0.65 per diluted share for the same period last year.
Increased revenue per mile, lower fuel expenses and lower operating
expenses in the transportation segment offset continued reduced demand
for flatbed trucking services. The real estate segment's results were
impacted by lower royalty revenues and increased vacancy from new
building additions but were assisted by increased capitalization of
property taxes and interest expense. Net income for the first six
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 former President and CEO, whose retirement
was effective February 6, 2008.
Second Quarter Operating Results. For the second quarter of fiscal
2009, consolidated revenues were $33,231,000, a decrease of
$7,857,000 or 19.1% over the same quarter last year.
Transportation segment revenues were $26,976,000 in the second quarter
of 2009, a decrease of $7,762,000 over the same quarter last year.
Revenue miles in the current quarter were down 20.1% compared to the
second quarter of 2008 due to reduced loads in the flatbed portion of
the transportation segment and reduced dry bulk tank hauling.
Decreased construction material freight demand from the downturn in
housing and commercial construction pushed revenue miles down in the
flatbed operation compared to last year. Excluding fuel surcharges,
revenue per mile increased 8.2% over the same quarter last year. The
average price paid per gallon of diesel fuel decreased by $1.45 or
42.7% over the same quarter in fiscal 2008. Fuel surcharge revenue
decreased $3,953,000.
Real Estate segment revenues for the second quarter of fiscal 2009
were $6,255,000, a decrease of $95,000 or 1.5% over the same quarter
last year. Lease revenue from developed properties increased $87,000
or 2.0%. Royalties and rent decreased $182,000 or 9.1% due to
decreased demand for mined tons partially offset by a $289,000
increase in revenues from timber sales.
Consolidated gross profit was $6,656,000 in the second quarter of
fiscal 2009, an increase of $603,000 or 10.0% compared to $6,053,000
in the same period last year. Gross profit in the transportation
segment increased $468,000 or 14.6% due to improved recovery of fuel
costs in the flatbed business, higher gains on equipment sales, higher
revenues per mile and cost management which more than offset the
reduced miles driven. Gross profit in the real estate segment
increased $135,000 or 4.7% from the second quarter 2008, due to higher
capitalization of real estate taxes and increased timber revenue offset
by decreased demand for tons mined.
Continued
501 Riverside Ave., Ste 500/Jacksonville, Florida 32202/(904) 396-5733
Selling, general and administrative expenses decreased $91,000 (2.5%)
over the same quarter last year.
Six Months Operating Results. For the first six months of fiscal 2009,
consolidated revenues were $71,163,000, a decrease of $9,125,000 or
11.4% over the same period last year.
Transportation segment revenues were $59,046,000 in the first six
months of 2009, a decrease of $8,611,000 over the same period last year.
Revenue miles in the first six months of fiscal 2009 were down 16.1%
compared to the first six months of 2008 due to reduced loads in the
flatbed portion of the transportation segment and reduced dry bulk tank
hauling. Decreased construction material freight demand from the
downturn in housing and commercial construction pushed revenue miles
down in the flatbed operation compared to last year. Excluding fuel
surcharges, revenue per mile increased 9.8% over the same period last
year. The average price paid per gallon of diesel fuel decreased by
$.95 or 29.3% over the same period last year. Fuel surcharge revenue
decreased $4,115,000.
Real Estate segment revenues for the first six months of fiscal 2009
were $12,117,000, a decrease of $514,000 or 4.1% over the same period
last year. Lease revenue from developed properties increased $9,000
or 0.1%. Royalties and rent decreased $523,000 or 13.2% due to
decreased demand for mined tons partially offset by a $125,000 increase
in revenues from timber sales.
Consolidated gross profit was $13,820,000 in the first six months of
fiscal 2009, an increase of $1,544,000 or 12.6% compared to
$12,276,000 in the same period last year. Gross profit in the
transportation segment increased $2,164,000 or 36.1% due to a sharp
decline in fuel costs net of surcharges, higher gains on equipment
sales, higher revenues per mile, and cost management offsetting the
reduced miles driven. Gross profit in the real estate segment
decreased $620,000 or 9.9% from the first six months of fiscal 2008,
due to reduced demand for mined tons and expenses related to new
building additions.
Selling, general and administrative expenses decreased $2,026,000
over the same period last year. Fiscal year 2008 included $2,503,000
accrual of retirement benefits for the Company's previous President
and Chief Executive Officer.
Gain from condemnation of land was $2,507,000 in the first six months
of fiscal 2008 resulting from the taking by the Virginia Department of
Transportation ("VDOT") of 28 acres on December 13, 2007. The Prince
William County Property was purchased in December 2005 and the cost
of the 28 acres taken by VDOT was $3,282,000.
Summary and Outlook. The flatbed and dry bulk tank portions of the
transportation segment continue to face poor freight demand from the
housing and commercial construction downturns. During the first six
months of fiscal 2009, increased revenue per mile in the
transportation segment and lower fuel expenses offset reduced demand
for flatbed trucking services. However, the comparison was to a weak
first half of the prior year. Business picked up in the second half
of last year and comparable increases are not anticipated during the
next six months.
On March 23, 2009, the Company's tank line subsidiary entered into an
agreement to sell approximately 1.5 acres of land located in Escambia
County, Florida for $1,950,000. The agreement of sale is subject to
certain contingencies, including the satisfactory completion of the
buyer's inspection period. The sale would not affect the Company's
tank line operations as the Company would relocate its truck terminal
to another site in the area. Closing is dependent upon several
conditions including relocation and government approvals and may not
occur before September 30, 2010.
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. With the
exception of completing a flex office warehouse building commenced
in the spring of 2008, the Company is not presently engaged in the
construction of any new buildings.
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 government approvals
and closing may be two or more years away. The purchaser has placed
non-refundable deposits of $1,000,000 under this contract in escrow
including $650,000 in March 2009.
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 Six Months
Ended Ended
March 31 March 31
-------- --------
2009 2008 2009 2008
---- ---- ---- ----
Revenues $33,231 41,088 $71,163 80,288
Gross profit $6,656 6,053 $13,820 12,276
Income before income taxes $2,311 1,192 $5,177 3,471
Net income $1,409 626 $3,156 2,031
Earnings per common share:
Basic $0.46 0.21 $1.04 0.67
Diluted $0.45 0.20 $1.02 0.65
Weighted average common
shares outstanding:
Basic 3,039 3,037 3,036 3,039
Diluted 3,102 3,128 3,106 3,138
Continued
PATRIOT TRANSPORTATION HOLDING, INC.
Condensed Balance Sheets (unaudited)
(Amounts in thousands)
March 31 September 30
2009 2008
-------- -------------
Cash and cash equivalents $ 7,788 $ 7,778
Accounts receivable, net 7,551 12,918
Other current assets 6,523 8,167
Property, plant and equipment, net 214,793 210,760
Investment in Brooksville Joint Venture 6,687 6,395
Other non-current assets 15,600 16,022
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Total Assets $ 258,942 $ 262,040
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Current liabilities $ 18,416 $ 23,263
Long-term debt (excluding current
maturities) 74,042 76,153
Deferred income taxes 18,959 18,885
Other non-current liabilities 6,415 6,384
Shareholders' equity 141,110 137,355
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Total Liabilities and
Shareholders' Equity $ 258,942 $ 262,040
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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 Six Months Ended
March 31 March 31
-------- --------
2009 2008 2009 2008
---- ---- ---- ----
Transportation Revenues $26,976 34,738 $59,046 67,657
Real Estate Revenues 6,255 6,350 12,117 12,631
------- ------ ------- ------
Total Revenues $33,231 41,088 $71,163 80,288
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Transportation Operating
Profit $1,418 976 $3,492 1,622
Real Estate Operating Profit 2,983 2,848 5,668 6,288
Corporate Expenses -1,309 -1,426 -2,356 -4,676
------ ------ ------ ------
Total Operating Profit $3,092 2,398 $6,804 3,234
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