PATI - Earnings call 3 2021 | Patriot Transportation Holding, Inc.

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Operator

Greetings, and welcome to Patriot Transportation Holdings, Inc. Earnings Call for the Third Quarter. [Operator Instructions] As a reminder, this conference is being recorded.

I would now like to turn this conference over to your host, Mr. Rob Sandlin, President and CEO of Patriot Transportation. sir. you, Thank

begin. You may

Robert Sandlin

with and Chief call thank Transportation. being afternoon and Transportation. all am our Matt Chief Financial Officer. you and for the Officer; And Patriot today of Patriot Klopfenstein, Sandlin, on today your are Rob McNulty, our Good John CEO for me Accounting interest I in

risks to from Before and to nature, during this made that any we get statements cause their could into that differ by by our that uncertainties results, forward-looking the relate actual let subject events are, statements. to me those caution you and such future call results indicated materially

Additional company's information uncertainties the filings and with factors the Exchange and regarding other Securities risk in may be found and these Commission.

Today, same income primarily by quarter results. February the to one were share Total reported million year XXXX. Now impacted $XX.XXX share COVID, $X.XX negatively $X.XX quarter per quarter. an related $X.XXX customer beginning was large third the of last while to or last quarter increase for a net $XXX,XXX or the due revenue downsizing in in revenues million, compared per quarter year's year, of third $XXX,XXX from this third company year's our last decline in to of of

benefits reduction increased Our increase mainly in pay $XXX,XXX, driver offset versus last business. transportation and to $XXX,XXX increase, driver or increased $X.XX associated our eliminating mile revenue our and support with year's Compensation rate per by X.X% to due same increases pay quarter lower-rated wages. to due

year's due continue to last expense decreased Insurance were due $XXX,XXX and care and the rightsize losses to higher Depreciation $XXX,XXX lower in Danfair the a due from increased our forfeitures used match health claims, to for onetime related higher in to claims XXX(k) the quarter was COVID. SG&A of by travel, $XXX,XXX the increased as plan. timing expense last as year's to quarter fleet. company's by gain to we

and on $XXX,XXX gain terminal the Chattanooga quarter partial leaseback. sale in this was site sale of The the to due

operating $XXX,XXX in last to the XX.X% result, was last ratio a with $XXX,XXX of profit quarter compared As for quarter. year's year's quarter, operating an XX.X% first compared during to

reported or share gains first or of a or $XXX,XXX for X income a year. we $X.XX loss results, on $X.XX in period per of X per of $X.XXX the net The real million compared the income months net last net income included months share negative net to per share taxes. sales, from the first same For $X.XX estate $XXX,XXX

for revenue shortage. resulting same a from was $X,XXX,XXX down large of to related period $X,XXX,XXX and the the driver $XX,XXX,XXX, drivers Total reduction the from period from a year, account of downsizing last approximately

up our miles per transportation was staff. reductions mix decreased non-driver and to expense were pay $X,XXX,XXX, of benefits down mainly or driver business XX% period, and mile Revenue or over due rate of in revenue and miles, improved and the X.X% minimum lower same company other X,XXX,XXX elimination the miles $X.XX Compensation because increases.

and losses was continue we Insurance $XXX,XXX, reductions. lower by to expense offset claims, down from to decreased healthcare expense fleet. quarter. rollover Depreciation tractor partially lower And $XXX,XXX rightsize tire $XXX,XXX, cost single miles due and Repairs primarily the due as accident. this permanent resulting SG&A was decreased to a down

of Chattanooga, our in in terminal leaseback and of Pensacola, land former of the and terminal due location sale Florida, sale to on was Gain $X,XXX,XXX sale the Tennessee. our

same $XXX,XXX result, in an operating income year. the loss was compared of As a $XXX,XXX last period to operating

months was on was for last same Excluding the during of period year. sites the the XXX.X% accident, and terminal the versus loss ratio $XXX,XXX. X the negative XX.X% gain the sale of rollover impact Operating operating

summary Now outlook. the and onto

X first certain increased, a downsized we revenue volume The business of early the XXXX, and with as negatively of quarter in shortage and months this shortage During XXXX XXXX, ability part drivers. meet the COVID-related due decreased impacting early quarter of declines, third year and most related levels resulting to fiscal of customers, worsened during petroleum in our revenue additional lower driver second customer markets. our increased year, of this near hiring and challenges the early to volumes and demand turnover as pre-COVID to in

highlighted that XX% say and tanker drivers. there XX% It driver national shortage among to of shortage that of has Pipeline increased of haulers fuel hack -- on impact types is the in highlighted is markets during been States. United we the and safe carriers of and the Southeastern -- The all that was as serve by few subsequent the impacted capacity all the a demand shortage shortage the consensus has as bulk across to demand fuel filled is Colonial demand this the of

shortage, drivers, the Department the Tank others and material Carriers of to implemented Association, develop Along including discussions the challenges management Carrier National American with our all Truck Motor discuss we of solutions. After driver private of Labor, Federal Department a industry, the careful increase our in in Safety shortage fleets April. have Transportation, in the friends increase driver of with and the continue to and pay an competing the across to the late driver Trucking consideration around board for our

terminations to have we and have but applicants a leading turnover, revenue-producing reduction been in see experiencing in driver still to an increase the yet dramatic of are a driver turnover improvement results voluntary drivers. The number in and

see are is in increase and force in as hopeful way applicants months. to numbers, stabilized to this say we has coming slight count a the the have driver seen recently Another in revenue-producing driver we increase

will outlined which adjustments, filter one adjustments added management cost pay for the with implemented months. the our increase, need and additional continue to increases summer met business. cover In the each to cover in price driver add to cost, to small and to customer add negotiated up margin the we quickly response and the price over the exception, we and With price

customer had to customers that meet our reduce on to long-term meet We longer-range we Unfortunately, improving return our business have on and and have to allow demand some unable us with strategic that goals. partner those investment. been demand in while markets, partnerships are fit focused forming

balance solid $XX.X Our and outstanding million of no with sheet cash debt. remains

will We year, remainder of replacement this the tractors a for trailers do not capital to during schedule fiscal or normal replacement anticipate but XXXX. purchase more return a fiscal

at contract outside $X.X price with Finally, XX, the and a million. sales of under of period a September closing remains Tampa property look free inspection an XXXX, in date

our for in Thank any you questions. company, to again entertain and will your happy interest be we

Operator

comes of line question first the Oppenheimer. John Our Instructions] [Operator from Koller with

John Koller

okay? of that's couple I've got a questions, if

Matthew Mcnulty

Absolutely.

John Koller

capital or 'XX, run it that tell is assume rate? to to year it that too early the big need point? see it should for beyond don't fair purchases is at resume this just that is You fiscal any beyond First $X million

Matthew Mcnulty

I think that's a fair assumption.

Robert Sandlin

-- That's yes.

John Koller

Okay.

where about there revenue or are keep Okay. noticed were so, seems the being if them like corner Great. on is, flat. point, in that stabilizing anyway, at me really if just and to And to down -- the increase improvement, we're sequentially, to XXX,XXX then to it somewhat or And and that cusp, again, miles able revenue loss we're it you drivers this I obviously, per mile. was even looking at like with driver of able the looks Is big And... at? turning

Robert Sandlin

flow And increase this coming desks. a to just that you, get and viable compared recruiters to we applicant XXXX, right our about of flat off I'll tell driver seen drivers pay keeping that's the lack driver say we've reduction actually half minute in now. of of seeing the to -- about that October would X/X applicants maybe I

we're maybe just those people. So and we've -- hire and been all anywhere at X/X near about as you as don't and low X/X, of

keep in drivers. to drivers And in to more them we into get so going need turn number really that revenue-producing order up to

would we still I So ways on have a to say go that.

John Koller

let guess aggressive, long I question the be Are of through sort want work that how guess? way take more patient its you the I before be Okay. you step? it of to you then or you willing next begs to sort do

Robert Sandlin

No.

back by and board. April, each do I And -- that increase something wholesale again. what every looking I the on we we late at market market, we'll spend We're mean It's day. we to think put we're specifically in May. we'll just do. early time go across it pay need

little top. the we're So we out But a have it's is race there. that that of to where every bit option at looking and right, top, the

got to we've to monitor to out. figure so all by sit and But make And going -- we're continuing waiting not long. that and too get we're a mistake and that,

John Koller

as efforts. dealing difficult. job fine that the you're is applaud I well the a doing Well, Everything Okay. it can, really are think circumstances as doing and with really I

Robert Sandlin

Great. Thank you.

Matthew Mcnulty

you. Thank

Robert Sandlin

questions. the for Thanks

Operator

question Rudd next with comes Steve from Our line of ]. the [ Blackwell

Unknown Analyst

many on exact drivers, you and right done well approach extremely job count, echo and How guys with spot your I sensibility. driver now? are First, the

Matthew Mcnulty

have you ] it? Do [

Robert Sandlin

to had before we've the XXX with operators a counts in want our say in XXX -- about of orientations we got I We've jobs. XX number [ don't those training, to lot got turn XX but a orientation scheduled, -- actual into of Yes, and XXX started, day there's ].

Unknown Analyst

Okay.

even we're down So from June.

you it XX off to truck. in right? assuming say, someone I'm know about I -- So we're fall doesn't, the But training, with we're get XX the almost flat, to at what saying,

Robert Sandlin

out yes, Yes, flatten increase of have went pay we we kind the in. -- it kind seen since

that made enough to we let be safety in since guys the driver training -- or leave go drivers the get have got weeks drop voluntarily off have had, some enough one another. had we We've much are of already reasons to for it we or flow would to applicant that the But get to or outpace either up leaving reasons. their then. thing mind other we've people going to just able for I still say, pretty You first increase, X pay had seen

Unknown Analyst

you sorry. So yes, -- yes,

Matthew Mcnulty

was different of to the our say since the monthly increase, And the And but kind about increase, average the decline was was X has been about in where months month, it before we each pay average -- pay decline that's X, XX. I are. driver going

Unknown Analyst

on monitoring basis. Okay. the answered a question And basically saying by daily prior you're you this

there's I whichever Monday idea? market pay you're going mean, Monday, is to act if is pay So a that that thought raise raising benefit would to quickly on literally that best. you think the on you you in

Robert Sandlin

Yes, and so. in our a one particular now we're looking market I would business. one -- one smaller of lines right mean say at of I

yes. So,

Unknown Analyst

million it cash, $XX another point got Okay. got and on $XX million to $XX we've the debt CapEx The out, less call things. next I at need approximately We've sheet. no million us that for balance depending -- gets for we million thing or and coming, wanted you in But year. most on next how look let's debt free. at And more $X about

the we because pulled the we forethought currently, and -- a would Washington to change. looked that last have that the we -- in a did, dividend We trigger we of administration

that point, date forward. And they and they probably and too, with the you brought somewhat those tax of largely do typically, and had or that's going you process data focusing is to date the at out. -- let's They to this, to the on happen increase reported tax And committee or might the of of it's date may beginning budget. that that be There either noticed all reconciliation serious But as guys on at effective unusual. of theory, look need typically the -- we've in now committee out. is brought aware obviously, a budget XX is a can pull only or do year, any your the those Board Or committee. know, the date it reported dividend, for I'm but increase because to this the -- that's backdate senators of the it out side, anything effective

there, particularly the for So excess of doesn't capital coming is in it given out and need? over make declare of given that our triggers our strong pay foreseeable Board sense clearly cash looming additional and capital, some very are and that, that to flows amount the

Matthew Mcnulty

think that short. to I So answer in

left. paying to net first somewhere sale and closer after -- cash $X.X I thing taxes that, to us is of million that's fees Tampa going The $X million between to and all the want say something probably and and

So what's is and the gains. I it's capital really tax way bill the in this future the And people -- of the that the lot we'll be with whole only on And into I really where the that's I kind more the dividend haven't what heard tax. that throwing what of point we bank. answer know really don't and can question discussions, dividend at the been a

the had we since closed we specific last any But on sale dividend, discussions of about dividend, likely haven't haven't the most Tampa. really because

to kind have we see, want have what board we decide bank know I do So of in to and those the let and think occur discussions they the future the a once cash do. for will the just planning

Unknown Analyst

almost D.C. confess idea, And decades a alcoholism, in right? ago, let's I admitting I'm that worked like It's admitting it. the not you I'll mark, So call alcoholism, get but Washington, black

Matthew Mcnulty

We're sure.

Unknown Analyst

right? sharing. Thanks high for day. We And Yes. get another speed, together

point a they folks anyway, So marketing get. marketing and from more that is folks of of gains capital think they think of as point dividends ordinary political view, from or get, rich a less, something something view,

capital you're capital it So history, you of them you're the as more in tax and seen rate won't to rate linked But tax -- a in you've gains. gains dividends. tax has, say the X talk rate but tied. I selling if on The recent about on would traditionally, if Democrat,

more feels say, like cutting You dividends, to or we're because cutting coupons. grandma coupons that the wouldn't going "'And grandpa raise too,"

misled will be in hand. by think hand that, I go they go both -- don't So

don't could recovered, calls And getting have if not, out world. bed but way, call, Board know a we listens or real these are And different Tampa, in alert estate So if prices you money. and that, it's to they of fall very know by the I the the if the their I it's plainly.

ball because So it, behind caught don't should X to be really on we that. want focus the they on

Robert Sandlin

Yes. made. are we not all that the share If they're comments listening,

we'll So pass that certainly along.

Unknown Analyst

be committee it with date passing you other that apart because talk is, along the it. usually add, the is I'm is grateful honestly, of going reported could to it. sell and It's that's not could you that for they're out. And piece not working full, and about Yes. advance you're do lot goes in It medicine it don't be of hard just usually something I have except to how not. gratitude. it earlier, I anything know clever enormously but a stuff, or and

Matthew Mcnulty

you. Thank

Robert Sandlin

the appreciate I you. Thank Great. information.

Operator

end call would Ladies for remarks. we of turn closing to have to the reached like I today's and over session. gentlemen, Sandlin question-and-answer back this Rob Mr.

Robert Sandlin

appreciate the again to all next you Great. forward in Thank appreciate We and being interest your you. call with Look on of Patriot Transportation. quarter. you talking

Operator

concludes today's This conference.

You the of time. and enjoy for may your day. this your disconnect your at rest you Thank participation lines

Patriot Transportation Holding (PATI) 28 Jul 212021 Q3 Earnings call transcript