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 THIRD
QUARTER AND FIRST NINE MONTHS OF FISCAL YEAR 2009 AND SALE OF FLATBED
TRUCKING OPERATIONS
Jacksonville, Florida; August 13, 2009 - Patriot Transportation Holding,
Inc. (NASDAQ-PATR) reported income from continuing operations of $.70
per diluted share in the third quarter of fiscal 2009, a decrease of
14.2% compared to $2,580,000 or $.83 per diluted share for the same
period last year. Income from continuing operations for the first nine
months of fiscal 2009 was $5,852,000 or $1.88 per diluted share for the
first nine months of fiscal 2009 compared to $5,703,000 or $1.82 per
diluted share for the same period last year.
Reduced miles driven in the transportation segment were more than offset
by increased revenue per mile, higher gains on equipment sales and cost
management. The real estate segment's results were impacted by lower
royalty revenues, increased depreciation and maintenance expense for new
buildings that are not leased, and severance costs but were assisted by
increased capitalization of property taxes and interest expense. 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 former President and CEO, whose
retirement was effective February 6, 2008.
In June 2009 the Company offered for sale its flatbed trucking company,
SunBelt Transport, Inc. ("SunBelt"). Discussions progressed such that an
agreement of sale was completed August 12, 2009 and closed on August 13,
2009. Under the agreement, the Buyer purchased all of SunBelt's tractors
and trailers, leased the Sunbelt terminal facilities in Jacksonville,
Florida for 36 months at a rental of $5,000 per month and leased the
terminal facilities in South Pittsburgh, Tennessee for 60 months at a
rental of $5,000 per month with an option to purchase those Tennessee
facilities at the end of the lease for payment of an additional $100,000.
The purchase price received for the tractors and trailers and inventories
was a $1 million cash payment and the delivery of a Promissory Note
requiring 60 monthly payments of $130,000 each, secured by the assets of
the business conveyed. The Company retained all pre-closing receivables
and liabilities. SunBelt has been accounted for as discontinued
operations in accordance with Statement of Financial Accounting Standards
No. 144, "Accounting for the Impairment or Disposal of Long-Lived Assets"
(SFAS 144). All periods presented have been restated accordingly.
Third Quarter Operating Results. For the third quarter of fiscal 2009,
consolidated revenues were $28,090,000, a decrease of $6,048,000 or 17.7%
over the same quarter last year.
Transportation segment revenues were $22,604,000 in the third quarter of
2009, a decrease of $5,463,000 over the same quarter last year. Revenue
miles in the current quarter were down 8.0% compared to the third quarter
of 2008 due to the economic environment. Excluding fuel surcharges,
revenue per mile increased 3.4% over the same quarter last year. The
average price paid per gallon of diesel fuel decreased by $2.07 or 49.2%
over the same quarter in fiscal 2008. Fuel surcharge revenue decreased
$4,425,000.
Continued
501 Riverside Ave., Ste 500 / Jacksonville, Florida 32202 /(904) 396-5733
Real Estate segment revenues for the third quarter of fiscal 2009 were
$5,486,000, a decrease of $585,000 or 9.6% over the same quarter last
year. Lease revenue from developed properties decreased $159,000 or
3.8% due to reduced occupancy. Royalties and rent decreased $426,000
or 22.0% due to decreased demand for mined tons and a $120,000 decrease
in revenues from timber sales.
Consolidated gross profit was $7,181,000 in the third quarter of fiscal
2009, a decrease of $997,000 or 12.2% compared to $8,178,000 in the same
period last year. Gross profit in the transportation segment decreased
$179,000 or 3.5% due to reduced miles driven and lower fuel surcharges
mostly offset by improved insurance and loss experience and other cost
management. Gross profit in the real estate segment decreased $818,000
or 26.8% from the third quarter 2008, due to decreased demand for tons
mined, reduced occupancy of developed properties, increased cost from
new buildings placed in service and severance costs partially offset by
higher capitalization of real estate taxes.
Selling, general and administrative expenses decreased $296,000 (9.3%)
over the same quarter last year primarily due to amounts paid to the
Company's prior CFO who retired in the same quarter last year.
Income from continuing operations was $2,213,000 or $.70 per diluted share
in the third quarter of fiscal 2009, a decrease of 14.2% compared to
$2,580,000 or $.83 per diluted share for the same period last year.
The after tax loss from discontinued operations for the third quarter of
fiscal 2009 was $2,615,000 versus income of $194,000 for the same period
last year. Diluted loss on discontinued operations for the third quarter
of fiscal 2009 was $.83 compared to diluted earnings of $.06 in the same
quarter last year. The third quarter of fiscal 2009 includes a loss on
the sale of $2,010,000 after tax or $.64 per diluted share.
Nine Months Operating Results. For the first nine months of fiscal 2009,
consolidated revenues were $86,711,000, a decrease of $8,406,000 or 8.8%
over the same period last year.
Transportation segment revenues were $69,108,000 in the first nine months
of 2009, a decrease of $7,307,000 over the same period last year. Revenue
miles in the first nine months of fiscal 2009 were down 5.1% compared to
the first nine months of 2008 due to the economic environment. Excluding
fuel surcharges, revenue per mile increased 4.8% over the same period last
year. The average price paid per gallon of diesel fuel decreased by $1.32
or 37.1% over the same period last year. Fuel surcharge revenue decreased
$6,952,000.
Real Estate segment revenues for the first nine months of fiscal 2009 were
$17,603,000, a decrease of $1,099,000 or 5.9% over the same period last
year. Lease revenue from developed properties decreased $150,000 or 1.2%.
Royalties and rent decreased $949,000 or 16.1% due to decreased demand
for mined tons.
Consolidated gross profit was $21,431,000 in the first nine months of
fiscal 2009, a decrease of $518,000 or 2.4% compared to $21,949,000 in the
same period last year. Gross profit in the transportation segment
increased $920,000 or 7.3% due higher gains on equipment sales, increased
revenue per mile, and cost management offsetting the reduced miles driven.
Gross profit in the real estate segment decreased $1,438,000 or 15.4% from
the first nine months of fiscal 2008, due to reduced demand for mined tons,
expenses related to new building additions, and severance costs.
Continued
Selling, general and administrative expenses decreased $2,399,000 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.
Income from continuing operations was $5,852,000 or $1.88 per diluted
share for the first nine months of fiscal 2009, an increase of 2.6%
compared to $5,703,000 or $1.82 per diluted share for the same period
last year.
The after tax loss from discontinued operations for the first nine
months of fiscal 2009 was $3,098,000 compared to the after tax loss of
$898,000 for the same period last year. Diluted loss per share on
discontinued operations for the first nine months of fiscal 2009 was
$1.00 compared to a loss of $.28 in the first nine months of fiscal 2008.
The first nine months of fiscal 2009 includes a loss on the sale of
$2,010,000 after tax or $.65 per diluted share.
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 did not occur in the third quarter and are not
anticipated during the next months. In the real estate segment, revenues
from mining royalties are expected to be down versus the prior year.
Revenues from the leasing of developed buildings likewise are expected to
weaken from existing levels as our three new buildings brought into
service in the past twelve months continue to contribute no revenue
(but now add their fair share of depreciation and maintenance expense)
and expiring leases, if renewed, will entail rent concessions from the
existing levels. Prospective tenants for vacant space are significantly
fewer than in the past few years, competition for their contracts are
more intense and rental rates continue to decline from existing levels.
The Company is not presently engaged in the construction of any new
buildings.
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 was subject to
certain contingencies, including the satisfactory completion of the
buyer's inspection period. The buyer elected to terminate the agreement
on August 3, 2009.
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. Preliminary zoning approval for the number of residential
units originally contemplated under the agreement's pricing contingencies
has now been received and the time for any appeals from that approval
expired during the last days of July 2009.
Continued
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 Nine Months
Ended Ended
June 30 June 30
------- --------
2009 2008 2009 2008
---- ---- ---- ----
Revenues $28,090 34,138 $86,711 95,117
Gross profit $7,181 8,178 $21,431 21,949
Income before taxes $3,397 3,925 $9,359 9,169
Income from continuing operations $2,213 2,580 $5,852 5,703
Income (loss) from discontinued
operations including loss on
pending sale after taxes ($2,615) 194 ($3,098) (898)
Net income (loss) ($402) 2,774 $2,754 4,805
Earnings per common share:
Income from continuing operations
Basic $0.73 0.85 $1.93 1.88
Diluted $0.70 0.83 $1.88 1.82
Income (loss) from discontinued
operations including loss on
pending sale after taxes
Basic ($0.86) 0.07 ($1.02) (0.30)
Diluted ($0.83) 0.06 ($1.00) (0.28)
Net income (loss)
Basic ($0.13) 0.92 $0.91 1.58
Diluted ($0.13) 0.89 $0.88 1.54
Weighted average common shares
outstanding:
Basic 3,044 3,024 3,039 3,034
Diluted 3,123 3,114 3,114 3,130
Continued
PATRIOT TRANSPORTATION HOLDING, INC.
Condensed Balance Sheets (unaudited)
(Amounts in thousands)
June 30 September 30
2009 2008
--------- -------------
Cash and cash equivalents $ 12,181 $ 7,778
Accounts receivable, net 5,956 9,834
Other current assets 4,335 6,943
Property, plant and equipment, net 201,607 197,823
Investment in Brooksville Joint Venture 6,735 6,395
Other non-current assets 15,534 15,970
Assets of discontinued operations 11,238 17,297
----------- --------------
Total Assets $ 257,586 $ 262,040
=========== ==============
Current liabilities $ 16,924 $ 20,737
Long-term debt (excluding current
maturities) 72,960 76,153
Deferred income taxes 15,938 15,227
Other non-current liabilities 4,652 4,694
Liabilities of discontinued operations 5,829 7,874
Shareholders' equity 141,283 137,355
----------- --------------
Total Liabilities and Shareholders'
Equity $ 257,586 $ 262,040
=========== ==============
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
------- -------
2009 2008 2009 2008
---- ---- ---- ----
Transportation Revenues $22,604 28,067 $69,108 76,415
Real Estate Revenues 5,486 6,071 17,603 18,702
------- ------ ------- ------
Total Revenues $28,090 34,138 $86,711 95,117
======= ====== ======= ======
Transportation Operating Profit $ 2,961 3,003 $ 7,238 6,398
Real Estate Operating Profit 2,237 3,055 7,905 9,343
Corporate Expenses -911 -1,070 -3,267 -5,746
------- ------ ------ ------
Total Operating Profit $4,287 4,988 $11,876 9,995
======= ====== ======= ======