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
SECOND QUARTER AND FIRST HALF OF FISCAL YEAR 2011
Jacksonville, Florida; May 4, 2011 - Patriot Transportation Holding,
Inc. (NASDAQ-PATR) reported net income of $1,683,000 or $.18 per
diluted share in the second quarter of fiscal 2011, an increase of
$241,000 or 16.7% compared to net income of $1,442,000 or $.15 per
diluted share in the same period last year. Net income for the first
six months of fiscal 2011 was $8,078,000 or $0.85 per diluted share,
an increase of $5,300,000 or 190.8% compared to net income of
$2,778,000 or $0.29 per diluted share for the same period last year.
Income from discontinued operations favorably impacted net income for
the first half of the fiscal year due to an after tax gain of
$4,926,000 or $0.52 per diluted share from the exchange of property
included in the first quarter of fiscal 2011. On December 1, 2010,
the board of directors declared a 3-for-1 stock split of the Company's
common stock in the form of a stock dividend. The record date for the
split was January 3, 2011 and the new shares were issued on January 17,
2011. All share and per share information presented has been adjusted
to reflect this stock split.
Second Quarter Operating Results. For the second quarter of fiscal 2011,
consolidated revenues were $28,590,000, an increase of $1,080,000 or 3.9%
over the same quarter last year.
Transportation segment revenues were $23,036,000 in the second quarter
of 2011, an increase of $1,378,000 over the same quarter last year.
Revenue miles in the current quarter were up 2.9% compared to the
second quarter of fiscal 2010 due to business growth and a longer
average haul length. Fuel surcharge revenue increased $1,280,000.
Excluding fuel surcharges, revenue per mile decreased 2.5% over the
same quarter last year due to a longer average haul length. The
average price paid per gallon of diesel fuel increased by $0.74 or
28.1% over the same quarter in fiscal 2010.
Mining royalty land segment revenues for the second quarter of fiscal
2011 were $918,000, a decrease of $91,000 or 9.0% over the same
quarter last year, primarily due to a shift of tons sold in northern
Georgia to a quarry with a lower royalty.
Developed property rentals segment revenues for the second quarter of
fiscal 2011 were $4,636,000, a decrease of $207,000 or 4.3% due to
reduced tenant reimbursements for snow removal partially offset by
higher occupancy.
Consolidated operating profit was $3,184,000 in the second quarter of
fiscal 2011, an increase of $117,000 or 3.8% compared to $3,067,000 in
the same period last year. Operating profit in the transportation
segment increased $278,000 or 16.1% primarily due to lower health
benefit claims. Operating profit in the mining royalty land segment
decreased $89,000 or 13.6% due to a shift of tons sold in northern
Georgia to a quarry with a lower royalty. Operating profit in the
Developed property rentals segment decreased $68,000 or 5.6% due to
higher depreciation and property taxes. Consolidated operating
profit includes corporate expenses not allocated to any segment in
the amount of $521,000 in the second quarter of fiscal 2011, an
increase of $4,000 compared to the same period last year.
Continued
501 Riverside Ave., Ste 500/Jacksonville, Florida 32202/(904) 396-5733
The after tax income from discontinued operations for the second
quarter of fiscal 2011 was $178,000 versus $94,000 for the same period
last year. Diluted earnings per share on discontinued operations for the
second quarter of fiscal 2011 was $.02 compared to $.01 in the second
quarter of fiscal 2010. Results in both periods were due to lower than
expected retained liabilities and losses from prior year operations.
Six Months Operating Results. For the first six months of fiscal 2011,
consolidated revenues were $56,853,000, an increase of $1,843,000 or 3.4%
over the same period last year.
Transportation segment revenues were $46,027,000 in the first six months
of 2011, an increase of $2,288,000 over the same period last year. Revenue
miles in the first six months of 2011 were up 4.3% compared to the first
six months of fiscal 2010 due to business growth and a longer average haul
length. Fuel surcharge revenue increased $2,033,000. Excluding fuel
surcharges, revenue per mile decreased 3.3% over the same period 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 $0.57 or 22.1% over the same period in fiscal 2010.
Mining royalty land segment revenues for the first six months of fiscal
2011 were $2,013,000, an increase of $17,000 or 0.9% over the same period
last year, due to an increase in mined tons.
Developed property rentals segment revenues for the first six months of
fiscal 2011 were $8,813,000, a decrease of $462,000 or 5.0% due to reduced
tenant reimbursements for snow removal partially offset by higher occupancy.
Consolidated operating profit was $6,372,000 in the first six months of
fiscal 2011, an increase of $263,000 or 4.3% compared to $6,109,000 in the
same period last year. Operating profit in the transportation segment
increased $622,000 or 18.5% primarily due to lower health benefit claims.
Operating profit in the mining royalty land segment decreased $2,000.
Operating profit in the Developed property rentals segment decreased
$255,000 or 10.5% due to higher professional fees, property taxes, and
depreciation. Consolidated operating profit includes corporate expenses
not allocated to any segment in the amount of $1,108,000 in the first six
months of fiscal 2011, an increase of $102,000 compared to the same period
last year due to adjustment to the fair value of the corporate aircraft of
$300,000 partially offset by lower stock compensation and professional fees.
The after tax income from discontinued operations for the first six months
of fiscal 2011 was $5,105,000 versus $118,000 for the same period last year.
Diluted earnings per share on discontinued operations for the first six
months of fiscal 2011 was $.54 compared to $.01 in the first six months of
fiscal 2010. The first six months of 2011 included a book gain on the
exchange of property of $4,926,000 after tax or $.52 per diluted share.
Brooksville Quarry, LLC Update. On October 4, 2006, a subsidiary of the
Company (FRP) entered into a Joint Venture Agreement with Vulcan Materials
Company (formerly Florida Rock Industries, Inc.) to form Brooksville Quarry,
LLC, a real estate joint venture to develop approximately 4,300 acres of land
near Brooksville, Florida (the "Project"). In April 2011, the Florida
Department of Community Affairs issued its Final Order approving the
development of the Project. Prior to commencing development of the Project
the property will need to be rezoned consistent with the approved
entitlements.
Continued
Summary and Outlook. Transportation segment miles for this year were
4.3% higher than 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.
Operating profit from the leasing of developed buildings has been
unfavorably impacted by three newer buildings brought into service
since September 2008 along with two nearly vacant buildings in Delaware
impacted by automobile plant closings and the residential housing
downturn. Occupancy increased from 72.0% to 77.2% over last fiscal year
end as the market for new tenants appears to have bottomed and traffic
for vacant space has increased. 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 May 4, 2011. Analysts, stockholders and other
interested parties may access the teleconference live by calling
1-888-318-6431 (pass code 35852) within the United States.
International callers may dial 1-334-323-7225 (pass code 25852).
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 wehsite 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 reply, dial toll free 877-919-4059,
international callers dial 334-323-7226. The passcode of the audio
replay is 22561471. Replay option: "1" begins playback, "4" rewind
30 seconds, "5" pause, "6" fast forward 30 seconds, "0" instructions,
and "0" 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 Florida Rock & Tank Lines, Inc. which is a
Southeastern transportation company concentrating in the hauling by
motor carrier of liquid and dry bulk commodities. 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 Six Months
Ended Ended
March 31 March 31
-------- --------
2011 2010 2011 2010
---- ---- ---- -----
Revenues $28,590 27,510 $56,853 55,010
Operating profit $3,184 3,067 $6,372 6,109
Income before taxes $2,443 2,189 $4,827 4,319
Income from continuing
operations 1,505 1,348 $2,973 2,660
Income (loss) from
discontinued operations 178 94 $5,105 118
Net income $1,683 1,442 $8,078 2,778
Earnings per common share:
Income from continuing operations
Basic $0.16 0.15 $0.32 0.29
Diluted $0.16 0.14 $0.31 0.28
Income (loss) from discontinued operations
Basic $0.02 0.01 $0.55 0.01
Diluted $0.02 0.01 $0.54 0.01
Net income
Basic $0.18 0.16 $0.87 0.30
Diluted $0.18 0.15 $0.85 0.29
Weighted average common shares outstanding:
Basic 9,272 9,175 9,272 9,164
Diluted 9,453 9,425 9,457 9,417
PATRIOT TRANSPORTATION HOLDING, INC.
Condensed Balance Sheets (unaudited)
(Amounts in thousands)
March 31 September 30
2011 2010
--------- ------------
Cash and cash equivalents $ 16,624 $ 17,151
Accounts receivable, net 6,627 5,940
Federal and state income taxes
receivable - 930
Notes receivable, current 1,310 1,238
Assets of discontinued operations 147 542
Other current assets 10,342 5,971
Deferred income taxes 477 -
Property, plant and equipment, net 205,211 198,116
Investment in Brooksville Joint
Venture 7,453 7,344
Notes receivable, non-current 3,246 4,382
Other non-current assets 9,470 16,098
---------- ------------
Total Assets $ 260,907 $ 257,712
========== =============
Current liabilities $ 15,171 $ 16,768
Liabilities of discontinued
operations 160 $ 1,327
Long-term debt (excluding current
maturities) 64,862 67,272
Deferred income taxes 16,340 16,084
Other non-current liabilities 4,340 4,205
Shareholders' equity 160,034 152,056
---------- -------------
Total Liabilities and
Shareholders' Equity $ 260,907 $ 257,712
=========== =============
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 Six Months Ended
March 31 March 31
-------- --------
2011 2010 2011 2010
---- ---- ---- ----
Transportation revenues $23,036 21,658 $46,027 43,739
Mining royalty land revenues 918 1,009 2,013 1,996
Developed property rentals
revenues 4,636 4,843 8,813 9,275
----- ----- ----- -----
Total Revenues $28,590 27,510 $56,853 55,010
Transportation operating
profit $2,002 1,724 $3,990 3,368
Mining royalty land operating
profit 566 655 1,322 1,324
Developed property rentals
operating profit 1,137 1,205 2,168 2,423
Unallocated corporate expenses (521) (517) (1,108) (1,006)
------ ------ ------- -------
Total Operating Profit $3,184 3,067 $6,372 6,109
====== ====== ======= =======