EXHIBIT 99.1
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, 2010.
Jacksonville, Florida; November 30, 2010 -- Patriot Transportation
Holding, Inc. (NASDAQ-PATR) reported net income of $1,994,000 or $.63
per diluted share in the fourth quarter of fiscal 2010, an increase of
$995,000 or 99.6% compared to net income of $999,000 or $.32 per
diluted share in the same period last year. Net income for the fiscal
year ended September 30, 2010 was $7,371,000 or $2.35 per diluted share,
an increase of $3,618,000 or 96.4% compared to net income of $3,753,000
or $1.20 per diluted share in fiscal 2009.
Fourth Quarter Operating Results. For the fourth quarter of fiscal
2010, consolidated revenues were $27,970,000, an increase of $128,000 or
0.5% over the same quarter last year.
Transportation segment revenues were $22,834,000 in the fourth quarter
of 2010, an increase of $522,000 over the same quarter last year.
Revenue miles in the current quarter were up 3.8% compared to the fourth
quarter of fiscal 2009 due to growth initiatives. Fuel surcharge revenue
increased $801,000. Excluding fuel surcharges, revenue per mile decreased
5.3% over the same quarter last year due to a longer average haul length
and lower revenue per mile on certain growth business. The average price
paid per gallon of diesel fuel increased by $.30 or 12.7% over the same
quarter in fiscal 2009.
Mining royalty land segment revenues for the fourth quarter of fiscal 2010
were $1,267,000, an increase of $141,000 or 12.5% over the same quarter last
year, due to an increase in mined tons offset by a $48,000 decrease in timber
sales.
Developed property rentals segment revenues for the fourth quarter of
fiscal 2010 were $3,869,000, a decrease of $535,000 or 12.1% due to
reduced occupancy.
Consolidated operating profit was $3,913,000 in the fourth quarter of
fiscal 2010, a decrease of $339,000 or 8.0% compared to $4,252,000 in the
same period last year. Operating profit in the transportation segment
decreased $1,280,000 or 37.3% due to reduced revenue per mile, unusually
low insurance and losses in the prior year's quarter, lower gains on sales
of equipment and significant site maintenance. Operating profit in the
mining royalty land segment increased $122,000 or 15.6% due to an increase
in mined tons. Operating profit in the Developed property rentals segment
decreased $383,000 or 32.5% due to reduced occupancy of developed properties.
Consolidated operating profit includes corporate expenses not allocated to
any segment in the amount of ($60,000) in the fourth quarter of fiscal 2010,
a decrease of $1,202,000 compared to the same period last year. The fourth
quarter of fiscal 2009 included $900,000 for the impairment to the estimated
fair value of the corporate aircraft. The Company's decision to discontinue
the aircraft's regular use required adjustment to the lower values of the
current economic environment.
Continued
501 Riverside Ave., Ste 500 / Jacksonville, Florida 32202 / (904) 396-5733
During the fourth quarter of the prior year the Company sold its flatbed
trucking company, SunBelt Transport, Inc. The after tax income from
discontinued operations for the fourth quarter of fiscal 2010 was $98,000
versus a loss of $1,057,000 for the same period last year. Diluted earnings
per share on discontinued operations for the fourth quarter of fiscal 2010
was $.03 compared to a diluted loss of $.33 in the fourth quarter of fiscal
2009.
Fiscal Year 2010 Operating Results. For the fiscal year 2010, consolidated
revenues were $111,338,000, a decrease of $3,215,000 or 2.8% over the same
period last year.
The Company announced on January 6, 2010 that the transportation group had
been unsuccessful in renewing contracts with customers that represented
approximately 11.0% of transportation group revenue in fiscal 2009. The
Company successfully replaced the majority of the lost business with new
business obtained in the remainder of fiscal 2010. Nevertheless, revenue
miles in the current year were down 3.1% compared to fiscal 2009 due to the
time involved in replacing the lost business along with lower demand and a
more competitive economic climate. Approximately 3.3% of miles during
fiscal 2010 were from services related to the contracts that were not
renewed. Transportation revenues were $89,637,000 in 2010, a decrease of
$1,783,000 or 2.0% over 2009. Fuel surcharge revenue increased $2,309,000.
Excluding fuel surcharges, revenue per mile decreased 2.1% over 2009 due to
lower revenue per mile on certain replacement business partially offset by
a shorter average haul length in the first six months of fiscal 2010. The
average price paid per gallon of diesel fuel increased by $0.36 or 15.8%
over 2009.
Mining royalty land segment revenues for fiscal 2010 were $4,510,000, a
decrease of $557,000 or 11.0% compared to $5,067,000 in 2009 due to a
$594,000 decrease in revenues from timber sales.
Developed property rentals segment revenues decreased $875,000 or 4.8% in
2010 to $17,191,000 due to reduced occupancy partly offset by a $376,000
increase in tenant reimbursements for snow removal.
Consolidated operating profit was $14,503,000 in fiscal 2010 compared to
$16,128,000, a decrease of 10.1%. Operating profit in the transportation
segment decreased $1,615,000 or 16.4% due to reduced miles driven and lower
gains on sales of equipment partially offset by lower insurance and losses.
Operating profit in the mining royalty land segment decreased $369,000 or
10.6% due to lower timber sales partially offset by reduced expenses.
Operating profit in the Developed property rentals segment decreased
$1,113,000 or 20.8% due to reduced occupancy of developed properties.
Consolidated operating profit includes corporate expenses not allocated
to any segment in the amount of $1,084,000 in fiscal 2010, a decrease of
$1,472,000 compared to the same period last year. These unallocated
corporate expenses primarily include stock compensation and corporate
aircraft expenses both of which decreased during 2010 versus 2009.
The after tax income from discontinued operations was $315,000 or $.10
per diluted share in fiscal 2010 as a result of favorable insurance
reserve adjustments compared to a loss of $4,155,000 or $1.33 per
diluted share in fiscal 2009. Fiscal 2009 includes a loss on the sale
of $2,316,000 after tax or $.74 per diluted share.
Summary, Outlook and Subsequent Events. Transportation segment miles
for this year's fourth quarter were 3.8% higher than the same quarter
last year. The Company continues to succeed in replacing customers from
the non-renewed contracts announced January 6, 2010 and has basically
recovered from new customers substantially all the lost revenue miles,
albeit at lower rates per mile for longer average hauls.
Continued
Operating profit from the leasing of developed buildings has been
unfavorably impacted by three newer buildings brought into service in
fiscal 2009 which remained vacant during fiscal 2010, two nearly vacant
buildings in Delaware impacted by automobile plant closings along with
other space vacated upon lease expiration. Occupancy decreased from
75.1% to 72.0% during the year primarily due to space vacated at lease
expiration. However, the market for new tenants appears to have
bottomed and traffic for vacant space has increased. Two tenants took
occupancy in November 2010 comprising 5.1% of total square footage.
The Company is not presently engaged in the construction of any new
buildings.
Conference Call. The Company will also host a conference call at 2:00
p.m. E.S.T. on December 1, 2010. Analysts, stockholders and other
interested parties may access the teleconference live by calling
1-888-207-9998 (pass code 84633) within the United States.
International callers may dial 1-334-323-7225 (pass code 84633).
Computer audio is available via the Internet through the Conference
America, Inc. website at http://209.208.69.70/Conference_America or
via the Company's website at http://www.patriottrans.com. If using
the Company's website, click on the Investor Relations tab, then
select Patriot Transportation Holding, Inc. Conference Stream, next
select the appropriate link for the current conference. An audio
replay will be available for sixty days following the conference call.
To listen to the audio replay, dial toll free 888-207-9998,
international callers dial 334-323-7226. The passcode of the audio
replay is 47948540. Replay options: "1" begins playback, "4" rewind
30 seconds, "5" pause, "6" fast forward 30 seconds, "0" instructions,
and "9" exits recording. There may be a 30-40 minute delay until
the archive is available following the conclusion of the conference call.
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.
Continued
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
------------ ------------
2010 2009 2010 2009
---- ---- ---- ----
Revenues $27,970 27,842 $111,338 114,553
Operating profit $3,913 4,252 $14,503 16,128
Income before taxes $3,079 3,371 $11,019 12,730
Income from continuing operations 1,896 2,056 $7,056 7,908
Income (loss) from discontinued
operations 98 (1,057) $315 (4,155)
Net income $1,994 999 $7,371 3,753
Earnings per common share:
Income from continuing operations
Basic $0.62 0.67 $2.31 2.60
Diluted $0.60 0.66 $2.25 2.53
Income (loss) from discontinued
operations
Basic $0.03 (0.34) $0.10 (1.37)
Diluted $0.03 (0.34) $0.10 (1.33)
Net income
Basic $0.65 0.33 $2.41 1.23
Diluted $0.63 0.32 $2.35 1.20
Weighted average common shares
outstanding:
Basic 3,073 3,050 3,061 3,041
Diluted 3,142 3,128 3,141 3,117
PATRIOT TRANSPORTATION HOLDING, INC.
Condensed Balance Sheets (unaudited)
(Amounts in thousands)
September 30 September 30
2010 2009
------------ ------------
Cash and cash equivalents $ 17,151 $ 15,803
Accounts receivable, net 5,940 5,286
Federal and state income taxes receivable 930 -
Notes receivable, current 1,238 1,158
Assets of discontinued operations 542 1,519
Other current assets 5,971 6,117
Property, plant and equipment, net 198,116 199,013
Investment in Brooksville Joint Venture 7,344 6,647
Notes receivable, non-current 4,382 5,647
Other non-current assets 16,098 15,453
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Total Assets $ 257,712 $ 256,854
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Current liabilities $ 16,768 $ 18,707
Liabilities of discontinued operations 1,327 $ 3,660
Long-term debt (excluding current maturities) 67,272 71,860
Deferred income taxes 16,084 15,679
Other non-current liabilities 4,205 4,540
Shareholders' equity 152,056 142,408
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Total Liabilities and Shareholders' Equity $ 257,712 $ 256,854
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Continued
PATRIOT TRANSPORTATION HOLDING, INC.
Business Segments (unaudited)
(Amounts in thousands)
The Company has identified three business segments, Transportation, Mining
royalty land and Developed property rentals, 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
------------ ------------
2010 2009 2010 2009
---- ---- ---- ----
Transportation revenues $22,834 22,312 $89,637 91,420
Mining royalty land revenues 1,267 1,126 4,510 5,067
Developed property rentals revenues 3,869 4,404 17,191 18,066
----- ----- ------ ------
Total Revenues $27,970 27,842 $111,338 114,553
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Transportation operating profit $2,153 3,433 $8,236 9,851
Mining royalty land operating profit 905 783 3,108 3,477
Developed property rentals operating
profit 795 1,178 4,243 5,356
Unallocated corporate expenses 60 (1,142) (1,084) (2,556)
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Total Operating Profit $3,913 4,252 $14,503 16,128
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