PATRIOT TRANSPORTATION HOLDING, INC./NEWS
Contact: John D. Milton, Jr.
Chief Financial Officer 904/858-9100
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PATRIOT TRANSPORTATION HOLDING, INC. ANNOUNCES
RESULTS FOR THE FIRST QUARTER OF FISCAL 2017
Patriot Transportation Holding, Inc. (NASDAQ-PATI) Jacksonville, Florida;
January 25, 2017 -
First Quarter Operating Results.
The Company reported net income of $912,000, or $.28 per share (inclusive of
$169,000, or $.05 per share, due to a reduced tax expense in accordance with
newly adopted accounting guidance on stock option exercises), compared to net
income of $1,375,000, or $.42 per share, in the same quarter last year. The
prior year included $1,029,000, or $0.31 per share, of net income from the
settlement of a claim with BP in connection with the 2010 Deepwater Horizon
event.
During this first quarter, the overall driver turnover rate improved as
compared to our experience over the past two years. However, we also saw a
decrease in the flow of qualified applicants causing a reduction of our average
driver force down to 670 from 700 in the same quarter last year. As a result,
our revenue miles decreased by 585,000 to 9,851,000 this quarter versus the
same quarter last year.
Total revenues for the quarter were $28,758,000, down $613,000 from $29,371,000
in the same quarter last year. Transportation revenues (excluding fuel
surcharges) were down $750,000 to $27,259,000 as a result of the lower revenue
miles. However, as a result of improved pricing and effective utilization of
our equipment, our transportation revenue per mile increased by 3.1% over the
same quarter last year. Fuel surcharge revenues were up $137,000 to
$1,499,000.
Compensation and benefits decreased $488,000 due to $291,000 lower driver
training pay and less miles driven. Insurance and losses were lower by
$313,000 versus the same quarter last year due to the favorable final
settlement with our insurance company of all fiscal 2013 liability and workers
compensation claims combined with lower self insured health claims, accident
repairs and product losses. Depreciation increased $314,000 but was mostly
offset by lower repair and equipment leasing costs as we continue to buy new
tractors to replace leased tractors. Corporate expense was $341,000 lower
than the same quarter last year mainly due to a $254,000 reduction in
professional fees.
As a result, operating profit this quarter was up $649,000 to $1,248,000
compared to $599,000 in the same quarter last year. Operating ratio was 95.7
this quarter versus 98.0 in the same quarter last year.
Summary and Outlook.
The shortage of qualified drivers is the biggest headwind we face today and is
a concern as we head into the seasonally busier months ahead. We will remain
focused on hiring qualified drivers and are hopeful the applicant flow will
improve as we move past the holidays and into the new year. We continue to
see improvement in our per mile transportation revenue as well as our net fuel
expense following the implementation of more neutral fuel surcharge tables
last year. This year we are implementing several new technologies which we
believe will enhance the driver experience, improve customer satisfaction and
ultimately improve our bottom line results.
We operate in many of the best markets in the country and are known in those
markets, and beyond, as a top rated carrier for both safety and customer
satisfaction. We are committed to continuing our focus on safety, retention
and customer satisfaction and are confident that execution of that focus will
enable us to improve our profitability. We plan to maintain a strong balance
sheet as we work to achieve our targeted operating ratio in the low nineties
and double digit returns after tax returns on capital employed.
Conference Call.
The Company will host a conference call on Wednesday, January 25, 2017 at 2:00
p.m. (EST). Analysts, stockholders and other interested parties may access the
teleconference live by calling 1-800-351-6807 (pass code 97338) for domestic
or 1-334-323-7224 (pass code 97338) for international. Computer audio live
streaming is available via the Internet through the Company's website at
www.patriottrans.com at the Investor Relations tab. You may click on this link
for the live streaming http://stream.conferenceamerica.com/pth012517. Click on
the following link http://archive.conferenceamerica.com/archivestream/
pth012517.mp3 to access the archived internet audio replay. A telephonic audio
replay will be available for sixty days following the conference call and is
accessible by dialing toll free 877-919-4059 domestic or 334-323-0140
international. The passcode of the audio replay is 21419600. 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 short 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; 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 business.
The Company's transportation business is conducted through Florida Rock & Tank
Lines, Inc. which is a Southeastern transportation company engaged in the
hauling of liquid and dry bulk commodities.
PATRIOT TRANSPORTATION HOLDING, INC. AND SUBSIDIARIES
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CONSOLIDATED STATEMENTS OF INCOME
(In thousands)
(Unaudited)
THREE MONTHS ENDED
DECEMBER 31,
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2016 2015
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Revenues:
Transportation revenues $ 27,259 28,009
Fuel surcharges 1,499 1,362
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Total revenues 28,758 29,371
Cost of operations:
Compensation and benefits 12,084 12,572
Fuel expenses 3,904 3,825
Repairs & tires 1,638 1,809
Other operating 1,034 1,090
Insurance and losses 2,705 3,018
Depreciation expense 2,462 2,148
Rents, tags & utilities 863 949
Sales, general & administrative 2,311 2,399
Corporate expenses 617 958
(Gain) Loss on equipment sales (108) 4
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Total cost of operations 27,510 28,772
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Total operating profit 1,248 599
BP claim settlement - 1,687
Interest income and other 2 3
Interest expense (32) (35)
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Income before income taxes 1,218 2,254
Provision for income taxes 306 879
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Net income $ 912 1,375
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Comprehensive Income $ 912 1,375
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Earnings per common share:
Net Income-
Basic 0.28 0.42
Diluted 0.28 0.42
Number of shares (in thousands)
used in computing:
-basic earnings per common share 3,290 3,273
-diluted earnings per common share 3,294 3,277