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 2011
Jacksonville, Florida; August 3, 2011 - Patriot Transportation
Holding, Inc. (NASDAQ-PATR) reported net income of $2,379,000 or
$.25 per diluted share in the third quarter of fiscal 2011, a
decrease of $220,000 or 8.5% compared to net income of $2,599,000
or $.28 per diluted share in the same period last year. Net
income for the first nine months of fiscal 2011 was $10,457,000
or $1.11 per diluted share, an increase of $5,080,000 or 94.5%
compared to net income of $5,377,000 or $.57 per diluted share
for the same period last year. Income from discontinued
operations favorably impacted net income for the first nine
months of the fiscal year due to an after tax gain of
$4,926,000 or $.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.
Third Quarter Operating Results. For the third quarter of fiscal
2011, consolidated revenues were $31,947,000, an increase of
$3,589,000 or 12.7% over the same quarter last year.
Transportation segment revenues were $26,182,000 in the third
quarter of 2011, an increase of $3,118,000 over the same quarter
last year. Revenue miles in the current quarter were up 5.4%
compared to the third quarter of fiscal 2010 due to business
growth and a longer average haul length. Fuel surcharge revenue
increased $1,905,000. Excluding fuel surcharges, revenue per
mile increased 0.9% over the same quarter last year. The
average price paid per gallon of diesel fuel increased by $.96
or 35.4% over the same quarter in fiscal 2010.
Mining royalty land segment revenues for the third quarter of
fiscal 2011 were $1,180,000, a decrease of $67,000 or 5.4% over
the same quarter last year, due to lower tons mined at most
locations mostly offset by a shift of production from land held
by other lessors to land held by the Company.
Developed property rentals segment revenues for the third quarter
of fiscal 2011 were $4,585,000, an increase of $538,000 or 13.3%
due to higher occupancy.
Consolidated operating profit was $4,441,000 in the third quarter
of fiscal 2011, a decrease of $40,000 or 0.9% compared to
$4,481,000 in the same period last year. Operating profit in the
transportation segment decreased $271,000 or 10.0% primarily due
to a $353,000 smaller reduction to the actuarial projections of
risk insurance claims and lower gains on equipment sales partially
offset by increased miles. Operating profit in the mining royalty
land segment decreased $33,000 or 3.8% due to lower tons mined at
most locations mostly offset by a shift of production from land
held by other lessors to land held by the Company. Operating
profit in the developed property rentals segment increased
$293,000 or 28.6% due to higher occupancy partially offset by
increased unbillable maintenance costs. Consolidated operating
profit includes corporate expenses not allocated to any segment
in the amount of $167,000 in the third quarter of fiscal 2011,
an increase of $29,000 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 third
quarter of fiscal 2011 was $20,000 versus $99,000 for the same
period last year. Diluted earnings per share on discontinued
operations for the third quarter of fiscal 2011 was $.00 compared to
$.01 in the third quarter of fiscal 2010. Results in both periods
were due to lower than expected retained liabilities and losses from
prior year operations.
Nine Months Operating Results. For the first nine months of fiscal 2011,
consolidated revenues were $88,800,000, an increase of $5,432,000 or
6.5% over the same period last year.
Transportation segment revenues were $72,209,000 in the first nine
months of 2011, an increase of $5,406,000 over the same period last
year. Revenue miles in the first nine months of 2011 were up 4.7%
compared to the first nine months of fiscal 2010 due to business growth
and a longer average haul length. Fuel surcharge revenue increased
$3,938,000. Excluding fuel surcharges, revenue per mile decreased
2.1% over the same period last year due to a longer average haul
length. The average price paid per gallon of diesel fuel increased
by $.70 or 26.7% over the same period in fiscal 2010.
Mining royalty land segment revenues for the first nine months of
fiscal 2011 were $3,193,000, a decrease of $50,000 or 1.5% over
the same period last year, due to a shift in tons sold in northern
Georgia to a quarry with a lower royalty.
Developed property rentals segment revenues for the first nine months
of fiscal 2011 were $13,398,000, an increase of $76,000 or 0.6% due to
higher occupancy partially offset by reduced tenant reimbursements for
snow removal.
Consolidated operating profit was $10,813,000 in the first nine months
of fiscal 2011, an increase of $223,000 or 2.1% compared to $10,590,000
in the same period last year. Operating profit in the transportation
segment increased $351,000 or 5.8% primarily due to lower health benefit
claims. Operating profit in the mining royalty land segment decreased
$35,000. Operating profit in the developed property rentals segment
increased $38,000 or 1.1% due to higher occupancy offset by increased
professional fees, maintenance costs, property taxes, and depreciation.
Consolidated operating profit includes corporate expenses not allocated
to any segment in the amount of $1,275,000 in the first nine months of
fiscal 2011, an increase of $131,000 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 nine
months of fiscal 2011 was $5,125,000 versus $217,000 for the same
period last year. Diluted earnings per share on discontinued
operations for the first nine months of fiscal 2011 was $.55 compared
to $.02 in the first nine months of fiscal 2010. The first nine
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
4.7% 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 has increased from 72.0% to 82.2%
(including 104,226 square feet or 3.6% for temporary storage under
a less than full market lease rate) over last fiscal year end as
the market for new tenants appears to have improved and traffic
for vacant space has increased. The Company is not presently
engaged in the construction of any new buildings.
In July 2011 the Company executed a Letter of Intent with MidAtlantic
Realty Partners, LLC. ("MRP") for the formation of a Joint Venture to
develop the first phase of the four-phase Master Development known as
RiverFront on the Anacostia in Washington, D.C. adjacent to the
Washington Nationals baseball stadium. Under the terms of the Letter
of Intent the parties have agreed to seek a modification from the
District of Columbia authorities to the existing approved plan for
the Master Development to change phase I from an office building to
residential apartments. The Letter of Intent contemplates the
parties will enter into a formal joint venture agreement wherein the
Company will contribute the land comprising phase I to the joint
venture in return for a seventy percent (70%) interest in the venture.
MRP will contribute capital in the amount necessary for the venture
to qualify for a nonrecourse loan for the balance of the estimated
construction costs (this MRP contribution is currently estimated to
be in the approximate amount of $4,500,000). At this point the Letter
of Intent contemplates commencement of construction in the spring of
2013 with lease up scheduled between September of 2014 and July of
2015. The Letter of Intent further contemplates additional incentive
promotional returns to MRP but only after FRP and MRP have received
a stipulated cumulative return on their contributed capital. The
Letter of Intent contemplates no commitments or obligations between
the parties with respect to Phases II, III and IV of the Master
Development Plan.
Conference Call. The Company will also host a conference call at
2:00 p.m. E.D.T. on August 3, 2011. Analysts, stockholders and
other interested parties may access the teleconference live by
calling 1-888-207-9994 (pass code 98437) within the United States.
International callers may dial 1-334-323-7225 (pass code 98437).
Computer audio is available via the Internet through the Conference
America, Inc., website at http://64.202.98.81/conferenceamerica 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 877-919-4059,
international callers dial 334-323-7226. The passcode of the
audio replay is 89660378. 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.
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 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.
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
------- -------
2011 2010 2011 2010
---- ---- ---- ----
Revenues $31,947 28,358 $88,800 83,368
Operating profit $4,441 4,481 $10,813 10,590
Income before taxes $3,708 3,621 $8,535 7,940
Income from continuing operations $2,359 2,500 $5,332 5,160
Income from discontinued operations $20 99 $5,125 217
Net income $2,379 2,599 $10,457 5,377
Earnings per common share:
Income from continuing operations
Basic $.25 .27 $.57 .56
Diluted $.25 .27 $.56 .55
Income from discontinued operations
Basic $.01 .01 $.56 .03
Diluted $.00 .01 $.55 .02
Net income
Basic $.26 .28 $1.13 .59
Diluted $.25 .28 $1.11 .57
Weighted average common shares outstanding:
Basic 9,291 9,184 9,279 9,171
Diluted 9,443 9,426 9,453 9,421
PATRIOT TRANSPORTATION HOLDING, INC.
Condensed Balance Sheets (unaudited)
(Amounts in thousands)
June 30 September 30
2011 2010
------- ------------
Cash and cash equivalents $ 22,760 $ 17,151
Accounts receivable, net 7,788 5,940
Federal and state income taxes receivable - 930
Notes receivable, current 1,427 1,238
Assets of discontinued operations 131 542
Other current assets 9,155 5,971
Deferred income taxes 895 -
Property, plant and equipment, net 207,172 198,116
Investment in Brooksville Joint Venture 7,437 7,344
Notes receivable, non-current 246 4,382
Other non-current assets 9,466 16,098
--------- ----------
Total Assets $ 266,477 $ 257,712
=========== ============
Current liabilities $ 19,101 $ 16,768
Liabilities of discontinued operations 112 $ 1,327
Long-term debt (excluding current maturities) 63,626 67,272
Deferred income taxes 16,421 16,084
Other non-current liabilities 4,364 4,205
Shareholders' equity 162,853 152,056
----------- ------------
Total Liabilities and
Shareholders' Equity $ 266,477 $ 257,712
=========== ============
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 Nine Months Ended
June 30 June 30
------- -------
2011 2010 2011 2010
---- ----- ---- ----
Transportation revenues $26,182 23,064 $72,209 66,803
Mining royalty land revenues 1,180 1,247 3,193 3,243
Developed property rentals
revenues 4,585 4,047 13,398 13,322
----- ----- ------ ------
Total Revenues $31,947 28,358 $88,800 83,368
======= ====== ======= ======
Transportation operating
profit $2,444 2,715 $6,434 6,083
Mining royalty land operating
profit 846 879 2,168 2,203
Developed property rentals
operating profit 1,318 1,025 3,486 3,448
Unallocated corporate expenses (167) (138) (1,275) (1,144)
--- --- ----- -----
Total Operating Profit $4,441 4,481 $10,813 10,590