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 SIX
MONTHS OF FISCAL YEAR 2012.
Jacksonville, Florida; May 2, 2012 - Patriot Transportation Holding, Inc.
(NASDAQ-PATR) reported net income of $1,643,000 or $.17 per diluted
share in the second quarter of fiscal 2012, a decrease of $40,000 or 2.4%
compared to net income of $1,683,000 or $.18 per diluted share in the
same period last year. Net income for the first six months of fiscal 2012
was $3,767,000 or $.40 per diluted share, a decrease of $4,311,000 or
53.3% compared to net income of $8,078,000 or $.85 per diluted share
for the same period last year. Income from discontinued operations
favorably impacted net income in fiscal 2011 due to an after tax gain of
$4,926,000 or $.52 per diluted share from the exchange of property.
Second Quarter Operating Results. For the second quarter of fiscal 2012,
consolidated revenues were $31,326,000, an increase of $2,736,000 or
9.7% over the same quarter last year.
Transportation segment revenues were $25,449,000 in the second quarter
of 2012, an increase of $2,413,000 over the same quarter last year. Revenue
miles in the current quarter were up 6.4% compared to the second quarter of
fiscal 2011 due to business growth and a longer average haul length. Fuel
surcharge revenue increased $642,000. Excluding fuel surcharges, revenue
per mile increased 3.0% over the same quarter last year. The average price
paid per gallon of diesel fuel increased by $.39 or 11.7% over the same
quarter in fiscal 2011.
Mining royalty land segment revenues for the second quarter of fiscal 2012
were $1,025,000, an increase of $107,000 or 11.7% over the same quarter
last year due primarily to a $62,000 increase in timber sales.
Developed property rentals segment revenues for the second quarter of
fiscal 2012 were $4,852,000, an increase of $216,000 or 4.7% due to
higher occupancy. Occupancy at March 31, 2012 was 86.0% as
compared to 77.2% at March 31, 2011.
Consolidated operating profit was $3,444,000 in the second quarter of
fiscal 2012, an increase of $260,000 or 8.2% compared to $3,184,000
in the same period last year. Operating profit in the transportation segment
decreased $212,000 or 10.6% primarily due to increased workers
compensation claim costs along with a sharp rise in fuel costs, higher
vehicle repairs, increased tire prices, and cost of growth initiatives
partially offset by higher gains on equipment sales and incremental
profits on increased revenues. Operating profit in the mining royalty
land segment increased $136,000 or 24.0% due to an increase in timber
sales and reduced allocation of indirect management company costs to
this segment. Operating profit in the Developed property rentals
segment increased $374,000 or 32.9% due to higher occupancy and
lower real estate taxes partially offset by higher maintenance costs,
professional fees and allocation of indirect management company
costs. Consolidated operating profit includes corporate expenses not
allocated to any segment in the amount of $559,000 in the second
quarter of fiscal 2012, an increase of $38,000 compared to the same
period last year.
Continued
200 W. Forsyth St., 7th Floor/Jacksonville, Florida 32202/(904) 396-5733
The after tax income from discontinued operations for the second quarter of
fiscal 2012 was $4,000 versus income of $178,000 for the same period last
year. Diluted earnings per share on discontinued operations for the second
quarter of fiscal 2012 was $.00 compared to $.02 in the second quarter of
fiscal 2011. The discontinued operations results are primarily due to lower
than expected retained liabilities and losses from prior year operations.
Six Months Operating Results. For the first six months of fiscal 2012,
consolidated revenues were $61,685,000, an increase of $4,832,000 or
8.5% over the same period last year.
Transportation segment revenues were $50,290,000 in the first six months
of fiscal 2012, an increase of $4,263,000 over the same period last year.
Revenue miles in the first six months of fiscal 2012 were up 4.1% compared
to the first six months of fiscal 2011 due to business growth and a longer
average haul length. Fuel surcharge revenue increased $1,800,000. Excluding
fuel surcharges, revenue per mile increased 2.1% over the same period last
year. The average price paid per gallon of diesel fuel increased by $.54 or
17.1% over the same period in fiscal 2011.
Mining royalty land segment revenues for the first six months of fiscal 2012
were $2,002,000, a decrease of $11,000 or .5% over the same period last
year, due to a shift in production at two locations reducing the share of
mining on the property owned by the Company offset by higher timber sales.
Developed property rentals segment revenues for the first six months of fiscal
2012 were $9,393,000, an increase of $580,000 or 6.6% due to higher
occupancy. Occupancy at March 31, 2012 was 86.0% as compared to
77.2% at March 31, 2011.
Consolidated operating profit was $6,658,000 in the first six months of fiscal
2012, an increase of $286,000 or 4.5% compared to $6,372,000 in the same
period last year. Operating profit in the transportation segment decreased
$757,000 or 19.0% primarily due to increased workers compensation and
health insurance claims along with a spike in fuel costs, higher vehicle
repairs, increased tire prices and cost of growth initiatives partially offset
by higher gains on equipment sales and incremental profits on increased
revenues. Operating profit in the mining royalty land segment increased
$64,000 or 4.8% primarily due to reduced allocation of indirect management
company costs to this segment. Operating profit in the Developed property
rentals segment increased $722,000 or 33.3% due to higher occupancy and
lower real estate taxes partially offset by increased maintenance costs and
professional fees. Consolidated operating profit includes corporate expenses
not allocated to any segment in the amount of $851,000 in the first six months
of fiscal 2012, a decrease of $257,000 compared to the same period last year
which included an adjustment to the fair value of the corporate aircraft of
$300,000.
The first six months of fiscal 2012 includes a gain of $1,039,000 on the
receipt of non-refundable deposits related to the termination of an
agreement to sell the Company's Windlass Run Residential property.
The after tax income from discontinued operations for the first six
months of fiscal 2012 was $3,000 versus income of $5,105,000 for the
same period last year. Diluted earnings per share on discontinued
operations for the first six months of fiscal 2012 was $.00 compared to
$.54 in the first six months of fiscal 2011. The first six months of fiscal
2011 included a book gain on the exchange of property of
$4,926,000 after tax or $.52 per diluted share.
Continued
Summary and Outlook. Transportation segment miles for this year were 4.1%
higher than last year. The Company continues to succeed in adding drivers and
customers and anticipates increasing segment miles during fiscal 2012.
Developed property rentals occupancy has increased from 79.8% to 86.0%
over last fiscal year end as the market for new tenants has improved
and traffic for vacant space has increased. Occupancy at March 31, 2012
2011 included 104,226 square feet or 3.6% and 118,156 square
feet or 4.0% respectively for temporary storage under a less than full
market lease rate.Occupancy at March 31, 2012 was unfavorably
impacted by vacancies representing 10.7% of the entire portfolio at
two buildings in Delaware which were impacted by automobile plant
closings and the residential housing downturn and the two parks that
each has only one building completed. The Company has resumed
development of Patriot Business Park effective April 1, 2012 due to
two recent developments. On February 15, 2012, the Company signed
an agreement to sell 15.18 acres of land at the site for a purchase
price of $4,774,577 which would result in a profit on the sale if
completed. The Company also entered into a build to suit lease
signed April 2 for a 117,600 square foot building.
With cap rates at historically low levels we have engaged the real
estate brokerage firm of Jones, Lang, LaSalle to explore the
market value of our existing office/warehouse portfolio in the
investment community. We have no preconceived decision
regarding the outcome of this exploration but will analyze the
results we receive and make our decision at that time in keeping
with our continuing effort to manage this Company's capital in
the most efficient manner possible for the longer term.
Conference Call.The Company will also host a conference call at 2:00 p.m.
EDT on May 2, 2012. Analysts, stockholders and other interested parties may
access the teleconference live by calling 1-888-859-8150 (pass code 35733)
within the United States. International callers may dial 1-334-323-7225
(pass code 35733). 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 26016917. 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 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)
<Table>
Three Months
Six Months
Ended
Ended
March 31
March 31
----------- -----------
<s> <c> <c> <c> <c>
2012
2011
2012
2011
----- ----- ----- ------
Revenues $31,326
28,590
61,685
56,853
Operating profit
$3,444
3,184
6,658
6,372
Income before taxes $2,661 2,443 6,112 4,827
Income from continuing operations $1,639 1,505 3,764 2,973
Income from discontinued operations $4 178 3 5,105
Net income
$1,643
1,683 3,767
8,078
Comprehensive Income
$1,643
1,683
3,767
8,078
Earnings per common share:
Income from continuing operations
Basic
$0.18
0.16
0.40
0.32
Diluted $0.17 0.16 0.40 0.31
Income from discontinued operations
Basic $0.00 0.02 0.00 0.55
Diluted $0.00 0.02 0.00 0.54
Net income
Basic $0.18 0.18 0.40 0.87
Diluted $0.17 0.18 0.40 0.85
Weighted average common shares outstanding:
Basic
9,353
9,272
9,321
9,272
Diluted
9,471
9,453
9,446
9,457
</Table>
PATRIOT TRANSPORTATION HOLDING, INC.
Condensed Balance Sheets (unaudited)
(Amounts in thousands)
<s> <c> <c>
March 31
September 30
2012
2011
----------- ---------------
Cash and cash equivalents
$ 20,037
$ 21,026
Accounts receivable, net 8,961 6,702
Federal and state income taxes
receivable 958 93
Assets of discontinued operations
107 114
Other current assets
5,165
6,759
Property, plant and equipment, net
210,161
208,988
Investment in Brooksville Joint Venture 7,470
7,412
Other non current assets 15,684 15,296
------------ --------------
Total Assets $ 268,543 $ 266,390
======== ==========
Current liabilities $ 16,820 $ 18,198
Liabilities of discontinued operations 31
34
Long-term debt (excluding current
maturities)
59,794
62,370
Deferred income taxes
18,147
16,919
Other non current liabilities 4,103 4,422
Shareholders' equity 169,648 164,447
--------- ---------
Total Liabilities and Shareholders
Equity $ 268,543 $ 266,390
</table>
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:
<Table>
Three Months Ended
Six Months Ended
March 31
March 31
---------- -----------
<s> <c> <c> <c> <c>
2012
2011
2012
2011
----- ------ ------ -----
Transportation revenues $25,449 23,036 50,290 46,027
Mining royalty land revenues
1,025
918 2,002 2,013
Developed property rentals
revenues
4,852
4,636
9,393
8,813
------ ------ ------ ------
Total Revenues
$31,326
28,590
61,685
56,853
====== ===== ===== =====
Transportation operating profit $1,790 2,002 3,233 3,990
Mining royalty land operating profit 702 566 1,386 1,322
Developed property rentals operating
profit
1,511
1,137
2,890
2,168
Unallocated corporate expenses
(559)
(521)
(851)
(1,108)
-------- -------- -------- ---------
Total Operating Profit
$3,444
3,184
6,658
6,372
===== ===== ====== =====
</Table>