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 2013.
Jacksonville, Florida; August 7, 2013 - Patriot Transportation Holding, Inc.
(NASDAQ-PATR) reported net income of $3,002,000 or $.31 per diluted share in
the third quarter of fiscal 2013, an increase of $318,000 or 11.8% compared
to net income of $2,684,000 or $.28 per diluted share in the same period last
year. The third quarter of fiscal 2013 was unfavorably impacted by interest
expense which included $342,000 after income taxes related to a mortgage
prepayment of $7,281,000 of principal. Net income for the first nine months
of fiscal 2013 was $8,396,000 or $.88 per diluted share, an increase of
$1,945,000 or 30.2% compared to net income of $6,451,000 or $.68 per diluted
share for the same period last year.
Third Quarter Operating Results. For the third quarter of fiscal 2013,
consolidated revenues were $35,708,000, an increase of $2,678,000 or 8.1%
over the same quarter last year.
Transportation segment revenues were $28,794,000 in the third quarter of
2013, an increase of $1,887,000 over the same quarter last year. Revenue
miles in the current quarter were up 6.6% compared to the third quarter of
fiscal 2012 due to business growth and a longer average haul length.
Revenue per mile increased .7% over the same quarter last year due to rate
increases partially offset by lower fuel surcharges and a longer average
haul length. Fuel surcharge revenue decreased $108,000 due to the lower
cost of fuel. The average price paid per gallon of diesel fuel decreased by
$.09 over the same quarter in fiscal 2012. There is a time lag between
changes in fuel prices and surcharges and often fuel costs change more
rapidly than the market indexes used to determine fuel surcharges.
Excluding fuel surcharges, revenue per mile increased 2.4% over the same
quarter last year.
Mining royalty land segment revenues for the third quarter of fiscal 2013
were $1,299,000, an increase of $198,000 or 18.0% over the same quarter last
year due to royalties on a new property purchased in May 2012 along with a
shift in production at two locations increasing the share of mining on
property owned by the Company.
Developed property rentals segment revenues for the third quarter of fiscal
2013 were $5,615,000, an increase of $593,000 or 11.8% due to higher
occupancy and revenue on the 117,600 square foot build to suit building
completed and occupied during the quarter ending March 2013. Occupancy at
June 30, 2013 was 89.9% as compared to 87.0% at June 30, 2012.
Continued
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200 W. Forsyth St., 7th Floor / Jacksonville, Florida 32202 / (904) 396-5733
Consolidated operating profit was $6,070,000 in the third quarter of fiscal
2013, an increase of $1,179,000 or 24.1% compared to $4,891,000 in the same
period last year. Operating profit in the transportation segment increased
$821,000 or 35.9% due to the increase in miles driven, lower health
insurance claims and higher gains on sales of equipment. Operating profit
in the mining royalty land segment increased $186,000 or 23.4% due to
royalties on a new property purchased in May 2012 along with a shift in
production at two locations increasing the share of mining on property owned
by the Company partially offset by higher professional fees and maintenance
expenses. Operating profit in the Developed property rentals segment
increased $282,000 or 14.8% due to higher occupancy, the 117,600 square foot
build to suit building completed and occupied during the second quarter, and
lower maintenance expenses partially offset by higher property taxes and
professional fees. Consolidated operating profit includes corporate
expenses not allocated to any segment in the amount of $204,000 in the third
quarter of fiscal 2013, an increase of $110,000 compared to the same period
last year.
Interest expense increased $600,000 over the same quarter last year due to
accelerated prepayment on long-term debt and lower capitalized interest
partially offset by declining mortgage principal balance. On June 3, 2013
the Company prepaid the $7,281,000 remaining principal balance on a 6.12%
mortgage under an early prepayment provision the note allowed after 7.5
years. The $561,000 cost of the prepayment included a penalty of $386,000
and the remaining deferred loan costs of $175,000. The amount of interest
capitalized on real estate projects under development was $166,000 lower
than the same quarter in fiscal 2012 primarily due to the completion of
Patriot Business Park's horizontal development.
Nine Months Operating Results. For the first nine months of fiscal 2013,
consolidated revenues were $102,633,000, an increase of $7,918,000 or 8.4%
over the same period last year.
Transportation segment revenues were $82,609,000 in the first nine months of
2013, an increase of $5,412,000 over the same period last year. Revenue
miles in the first nine months of fiscal 2013 were up 5.1% compared to the
first nine months of fiscal 2012 due to business growth and a slightly longer
average haul length. Revenue per mile increased 1.7% over the same period
last year due to rate increases. Fuel surcharge revenue decreased $61,000
due to changes to certain customer rates to incorporate fuel surcharges into
base rates. The average price paid per gallon of diesel fuel increased by
$.02 or .7% over the same period in fiscal 2012. There is a time lag
between changes in fuel prices and surcharges and often fuel costs change
more rapidly than the market indexes used to determine fuel surcharges.
Excluding fuel surcharges, revenue per mile increased 3.7% over the same
period last year.
Mining royalty land segment revenues for the first nine months of fiscal 2013
were $3,874,000, an increase of $771,000 or 24.8% over the same period last
year due to royalties on a new property purchased in May 2012 along with a
shift in production at two locations increasing the share of mining on
property owned by the Company partially offset by lower timber sales.
Developed property rentals segment revenues for the first nine months of
fiscal 2013 were $16,150,000, an increase of $1,735,000 or 12.0% due to
higher occupancy and revenue on a 117,600 square foot build to suit building
completed and occupied during the period. Occupancy at June 30, 2013 was
89.9% as compared to 87.0% at June 30, 2012.
Continued
Consolidated operating profit was $14,786,000 in the first nine months of
fiscal 2013, an increase of $3,237,000 or 28.0% compared to $11,549,000 in
the same period last year. Operating profit in the transportation segment
increased $1,306,000 or 23.7% due to incremental profits on increased
revenue and higher gains on equipment sales partially offset by higher
accident costs, increased vehicle repair costs, increased site maintenance,
and increased sales, general and administrative expenses. Operating profit
in the mining royalty land segment increased $749,000 or 34.4% due to
royalties on a new property purchased in May 2012 along with a shift in
production at two locations increasing the share of mining on property
owned by the Company partially offset by increased corporate expense
allocation and lower timber sales. Operating profit in the Developed
property rentals segment increased $1,373,000 or 28.6% due to higher
occupancy, the 117,600 square foot build to suit building completed and
occupied during the period, reduced severance costs, and lower maintenance
costs partially offset by higher property taxes. Consolidated operating
profit includes corporate expenses not allocated to any segment in the
amount of $1,136,000 in the first nine months of fiscal 2013, an increase
of $191,000 compared to the same period last year.
Gain on investment land sold for the first nine months of fiscal 2013
includes a gain on the sale of the developed property rentals Commonwealth
property of $1,116,000 before income taxes. The book value of the property
was $723,000.
The first nine 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.
Interest expense increased $10,000 over the same period last year due
accelerated prepayment on long-term debt mostly offset by higher
capitalized interest and declining mortgage principal balance. On June 3,
2013 the Company prepaid the $7,281,000 remaining principal balance on a
6.12% mortgage under an early prepayment provision the note allowed after
7.5 years. The $561,000 cost of the prepayment included a penalty of
$386,000 and the remaining deferred loan costs of $175,000. The amount of
interest capitalized on real estate projects under development was $264,000
higher than the same period in fiscal 2012 primarily due to resumed
development of Patriot Business Park in April 2012.
Summary and Outlook. Transportation segment miles for this year were
5.1% higher than last year. The Company continues to succeed in adding
drivers and customers and anticipates increasing segment miles during the
balance of fiscal 2013.
Developed property rentals occupancy has increased from 87.0% to 89.9% over
June 30, 2012 as the market for new tenants has improved and traffic for
vacant space has increased. Occupancy at June 30, 2013 and 2012 included
77,456 square feet or 2.3% and 104,226 square feet or 3.4% respectively for
temporary leases under a less than full market lease rate. The Company
resumed development of Patriot Business Park in April 2012 due to two
developments. In February 2012, the Company signed an agreement to sell
15.18 acres of land at the site for a purchase price of $4,774,577 and the
sale was completed in July 2013. The Company also entered into a build to
suit lease signed in April 2012, for a 117,600 square foot building which
was completed and occupied during the quarter ending March 31, 2013.
Continued
In May 2013, the Company entered into a second build to suit lease, with
the same tenant as the first, for a 125,500 square foot building which is
currently under construction.
On June 20, 2013 the Company purchased, through a qualified intermediary,
Transit Business Park in Baltimore, Maryland which consists of 5
buildings on 14.5 acres totaling 232,318 square feet which were 87.9%
occupied (including 6.4% for temporary leases and 7.1% for holdover
tenant). This purchase is planned as a forward 1031 exchange upon the
closing of phase 1 of Windlass Run Residential scheduled to close during
the fourth quarter of fiscal 2013.
Conference Call. The Company will also host a conference call on Wednesday
afternoon, August 7, 2013 at 2:00 p.m. (EDT). Analysts, stockholders and
other interested parties may access the teleconference live by calling
1-800-351-4897 (pass code 97481) within the United States. International
callers may dial 1-334-323-7224 (pass code 97481). 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 50656930. 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. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In thousands except per share amounts)
(Unaudited)
THREE MONTHS ENDED NINE MONTHS ENDED
JUNE 30 JUNE 30
------- -------
2013 2012 2013 2012
---- ---- ---- ----
Revenues:
Transportation $28,794 26,907 82,609 77,197
Mining royalty land 1,299 1,101 3,874 3,103
Developed property rentals 5,615 5,022 16,150 14,415
------ ------ ------ ------
Total revenues 35,708 33,030 102,633 94,715
Cost of operations:
Transportation 25,687 24,621 75,784 71,678
Mining royalty land 319 307 945 923
Developed property rentals 3,428 3,117 9,982 9,620
Unallocated corporate 204 94 1,136 945
------ ------ ------ ------
Total cost of operations 29,638 28,139 87,847 83,166
Operating profit:
Transportation 3,107 2,286 6,825 5,519
Mining royalty land 980 794 2,929 2,180
Developed property rentals 2,187 1,905 6,168 4,795
Unallocated corporate (204) (94) (1,136) (945)
------ ------ ------ ------
Total operating profit 6,070 4,891 14,786 11,549
Gain on termination
of sale contract - - - 1,039
Gain on investment land sold - - 1,116 -
Interest income and other - (10) 37 11
Equity in loss of joint
ventures (11) - (30) (8)
Interest Expense (1,137) (537) (2,145) (2,135)
------ ------ ------ ------
Income before income taxes 4,922 4,344 13,764 10,456
Provision for income taxes (1,920) (1,668) (5,368) (4,016)
------ ------ ------ ------
Income from
continuing operations 3,002 2,676 8,396 6,440
Income from
discontinued operations, net - 8 - 11
------ ------ ------ ------
Net income $ 3,002 2,684 8,396 6,451
====== ====== ====== ======
Comprehensive income $ 3,002 2,684 8,396 6,451
====== ====== ====== ======
Earnings per common share:
Income from continuing
operations -
Basic 0.31 0.29 0.88 0.69
Diluted 0.31 0.28 0.88 0.68
Discontinued operations
(Note 11) -
Basic - - - -
Diluted - - - -
Net income - basic 0.31 0.29 0.88 0.69
Net income - diluted 0.31 0.28 0.88 0.68
Number of shares (in thousands)
used in computing:
-basic earnings per
common share 9,549 9,382 9,511 9,341
-diluted earnings per
common share 9,625 9,482 9,592 9,458
See accompanying notes