PATI - Earnings call transcript Q2 2022 | Patriot Transportation Holding, Inc.

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Operator

Good afternoon, ladies and gentlemen, and welcome to the Patriot Transportation Earnings Call for the Second Quarter of Fiscal Year 2022. At this time, all participants have been placed on a listen-only mode, and we will open the floor for your questions and comments after the presentation. It is now my pleasure to turn the floor over to your host, Rob Sandlin, CEO and President of Patriot Transportation. Sir, the floor is yours. Rob, the floor is yours.

Rob Sandlin

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

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

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

from loss year. quarter quarter company Last higher $XXX,XXX real up for Today due quarter or surcharges. of the share the second included from estate, XX, were net the $X,XXX,XXX reported last quarter rate our ended loss increases per to year's year fuel per compared $X.XX tax. same results. same of revenues $X.XX or the income of quarter quarter for gains $X,XXX,XXX to net net March per quarter For $XX,XXX,XXX, the on in a last income share XXXX, or second of Operating and share $X.XX $XXX,XXX

the offset of were quarter due due mostly compensation the and down and care per to hit increased $XXX,XXX COVID work gains $XXX,XXX in $XXX,XXX, $X.XX and XX.X% by income, shortage. gains-on-sale reduction or income COVID benefits of driver by The was share, which the Operating company's six real total This was increased costs losses share, improved operating and approximately in last to by retention assets of XX increased compared income expense claim prior mile prior $XXX,XXX. of results $X.XX by due to same on up increases. second health in the net from estate $XXX,XXX driver net which year-to-date income prior from an miles from loss gains impacted lower first the The $XXX,XXX to to primarily year in year's workers' year's year. count claim $X.XX estate per rate The claim, quarter's the this share driver The quarter charge in net real The this was resulted $X.XX driver was a taxes. $XXX,XXX included or depreciation revenue and us income six-month year's per results. business negatively maximum the revenue in of $XXX,XXX negatively net comp $X,XXX,XXX mostly $X,XXX,XXX the or this year last mainly the claim, On support quarter. $XXX,XXX included or $X,XXX,XXX, reduction comp by count fuel to due versus package, second benefits count. Compensation quarter, to $XXX,XXX, year. last due of impacted a equipment transaction of one gain on increased $XXX,XXX, or in period the to The in $XXX,XXX of quarter. while caused in was adjusted share, while loss onetime last impacted quarter. earlier. increased claims higher mainly and our net the mix depreciation $X.XX The a staff. decreased and Insurance mentioned a downsizing of period in to loss per profit the compared for year's mix. on months increases taxes. $XXX,XXX per XXXX, versus by the truck second improved insurance months last XX.X% was was were a and increases, prices business land or was operating and of the last the by prices. Tampa assets two Tampa sale transaction miles have for $X,XXX,XXX of loss surcharges was used lower terminal offset land The $XXX,XXX due driver losses was sale period personnel the due versus gain $XXX,XXX Tampa last to This mostly Compensation were impacted surcharges, year. this and causing the an was $X.XX the bonus levels, by record $XXX,XXX fuel of to increase pay gain increased improved lower SG&A reductions year. revenues rates $X,XXX,XXX $X,XXX,XXX that to sale year's improved the year. up mostly compared and following increase bonus higher Including and by expense mile to expense Diesel by was driver Operating to to on revenue higher sale fiscal due onetime half our to negatively the $XX,XXX. The to expenses positively rate per operating property. management, of dramatic We $X,XXX,XXX quarter, mainly due sale while higher of non-driver for the $X,XXX,XXX fuel same the the compared completed driver six Operating last with the over

a year $XXX,XXX comp months. prior and of the COVID the earlier, six charge claim for in workers' negative stated first As resulted

the summary for outlook. Now and

two count increase driver and During to following remained of quarters similar driver April our in the previous months, large the six the XXXX. first pay steady

the our new driver XX% most depending market, February additional quarter, in over XX% and on all markets, increases that pay the the quarter's It During early in conference these a XX% effect minimum XXXX. bears of announced same is up added pay, our we repeating to driver from pay last which increases driver to took of call first period. of

of of last quarter. the Operations President to Vice increased CFO, In the first rate settled responsibilities driver addition, has new COO after into Matt at having raises. cost retired we pay end McNulty, cover in been have successful increases since of than more as his our the April our our

made our call have that we on other not As will personnel moves February, in replaced. be mentioned

drivers. continue dry growing segment bulk focus We to to as able new on markets hire we our into are

dry hire Labor drivers partnership base. trips bulk continue as an solutions with Washington, multiple for with made the and have at partnered senior registered to Department the D.C. I to to we hiring DOL in and staff driver along us truck our continue have trips We of expand work tank long-term effort several carriers of to the to and industry. national the shortage DOT and with for business

our of at of an November of We now remains the end I hauling be by was Department together invited balance actively D.C. but Washington, balance petroleum military this XXXX. a paid period. after sheet celebration to dividend us transitioning for person of apprenticeship to The better the driving in XX-day initial into Jr., drivers, March SkillBridge me. in $XX,XXX,XXX, Joseph we our $X,XXX,XXX are cash final exactly which access on the our Biden's provide with the in cash South trucking reduced truck had loads strong tractors with issues, of day looking Brit great while White for stages Joseph honored the training began asked who are we program. a of a for year X-year experience. replacement is a we Joseph challenge will were to with We to first President quarter and We along us fiscal this application a type X trailers of to program, take Defense chain handful total SkillBridge and receiving million with the experiencing House year. tractors was is acceptance of approximately Lawn with army of supply is of April delays anticipate XX of replacing registered one veteran the capital in $X this and expenditures and due fiscal during personnel

due supply of chain issues the new tractors seen also and to have increased We prices inflation.

opportunity interest XX missed all company, the Ted on in will passing will XX. to him Emeritus, Thank last to at business Finally, known from our of saddened years. happy a we our all. are am and His you to with the us time. Ted Chairman record and and pleasure again I we is any to over him had fortunate long had known, questions. the your of for April have I've for well entertain the He learn honored be Baker working by be have

Operator

The Blackwell. Steve, from your coming question is from line is first live. Steve [Operator Rudd Instructions]

Steve Rudd

Sure.

the an elderly Baker have I is didn't and they're condolences parent family. to Obviously, Ted, First, meet it's to it what a but gone, know when I loss. massive

know the call comments program noted questions, best So were release to that really we to – drivers. too. do your reverse do pay and condolences increases will, XXX now, quarter, be around transition On I last this my the quarter-to-quarter to we've you we to have feeling then appears entire that. -- heartfelt follow-up drivers driver down And you're family. stabilized that heartfelt your fruit bearing in Washington I but at on I see The what's do and participating about It's that press do versus weird I'll conference a the business past count, mean question your XX as now?

Matt McNulty

year. have about eight eight closed seven a this terminal with had or in -- drivers very of small Nashville We small very gotten - February drivers in we that

and with us and in from we We but call, on of market could was there, the the you and not had for business to -- on. data XX-driver most rely just drop us I'd reason that there was to move turnover better – is it's last from closure. have labor the for stay So that that about Nashville no the just to

Rob Sandlin

Rob. churn would ebb increases, But stabilized, that say, that would only in turnover little it from any is I -- think Yes. I here that is still new the thing And what -- the while should say this year. as on I a drivers the for flow was it's I in you pay is more driver -- thing down for pre-pay turnover add been what driver increases our way since there's senior see only those to given numbers. a than week, drivers, what the drivers, and have has drivers The is the

Steve Rudd

on the Nashville an and figure to there's the see much? of compound line, anticipated now extent I drivers end each But to compound to adjust will add go and think into closure. or our quarter. less then price news then And to I'll all driver we But next is on count the is, is this ask that how about we've appreciate question back that a do about by So our part. that $XX,XXX two-part second this part the driver increases company, by the my is, then That's additional I'll the the the the drivers one and it. good question going quarter, always the question we to clarification a on the on stabilization, --

Rob Sandlin

second. a for that, the first of think about I'll the part part Matt So let second

driver The the on of not first is difficult some significant. very any applicants. uptick of applicants, the of the is It half but of still number market. probably in looking very, a viable the are there There seen where board, great just have about drivers are report we've question some a we're to number in part have we and terminals trainees really lot most seen terminals, recently, don't we've of getting applicants, through close our recruiting uptick that don't

And difficult so successful. have hire driver we to through gets where training. get we're and markets being other very a more And it

that anywhere on And haven't heard So the reason believe making I just going don't great we're gains or else have marketplace. I start that in to that to seen adds. driver any

difficult still driver it's going going be to think very a I market So forward.

increases. while the driver I add as certainly thinking think maybe possible a think to other margin we that to bit, think as trying question little thing are the your cost about rate much outstrip I in one Matt

factored in to thing called until is is labor. I that hitting to in anywhere now we've from to this that's parts, lube think the us got tires nobody thing recently inflation oils,

getting of we're lot on surcharges tractors. those so a And interactive costs,

we're having go as that adjust monitor to and so And through we accordingly.

have number pay and a a all? think gain. driver add on I to we're at above that applying increases, Matt, nervous going what beyond we're want do I to to probably do to you rate we'd believe be -- about going gain little to but the much a how

Matt McNulty

our No, revenue that good I bring see I driver how go the don't to bottom-line. much a and with Rob's additional too to inflation costs in think things right the I to point, think other -- that's to to answer. it's that is going understand to happening of going is new now

for since a will but money number more that amount So certainly bottom-line I XX,XXX. the still will the that feel good a a There's probably like driver. be to be it I know to added of that Rob's is don't it's some giant point,

Steve Rudd

Okay. right one-- there a or is it don't And know I'll go back now -- queue if Is only I there a queue.

Rob Sandlin

Let's go -- to the-- go back back

Matt McNulty

you in. can pop he back Yes,

Rob Sandlin

in. you Pop back

Steve Rudd

Thanks. right. All Okay.

Operator

Thank question is Ritzer, Adam another you, Steve. private Adam, Adam investor. from your line We is coming do have in a live.

Unidentified Analyst

you Thank you. I taking call. appreciate my

Rob Sandlin

you. Thank

Unidentified Analyst

Thank -- picture larger overall I an had question. you. a just

I done a free your job of out think paying years. returning couple in you guys great terms assets, dividends the selling have last cash on capital, of flow

new you if So, away. I congratulate just really going But overall you that. from your never it driver going to keep for to. goes this Costs of alluded down be seems doing kind up, ago as few years a even as is probably profitability even so

us ever another we out X of is look, get would buyer not? that just there what to make this say, point, to really take it costs, a up why Maybe ever for cut to our you Would business for there's just sell you why don't or say, could and So, just business? why assets you money. who guys any just the pick talks

Rob Sandlin

And mean, part I that's an to company just strategy. I decision. selling, we're I or options don't option. think your the I think think Whether will of itself every I that that's we're pushing business buying managed But that has there's be a be as make us by that's always aware today mean, to -- folks

managed rate curve are with and lot of start see tough right especially I feel driver times the direction, move the we've in think and the a through starting to the like stabilization increases. we the to

And said, going forefront and of I where But mean, time not talk an opportunity the us is. comes I running the our if as never -- a So, to to it right I now. not to business it's going keep to no there's not minds like be just listen. we'll think somebody that's that on -- about we're wants

Unidentified Analyst

Okay.

for prices offset just But you keep drivers along. came adverse is costs at to to not to out keep our somebody if wanted trying are would plan situation, of try the that. look to new the it, our going and up, just So that of going to kind be raise and you us plugging get guys

Rob Sandlin

you look first seen point we happened. of to the the just that if on keenly certainly And trying that see right focused of And in doing your do think I improvement. Board we're the have back now, years done was what we've then we stuff involved we reasonable some all put things and mentioned at and get going question. to been But then No, to bottom-line. we've -- that have at And the for part -- stature possibilities itself. something that rest a we're that go and on return the then

yes. So

Unidentified Analyst

I now, it but see -- that on. want good. guys be last and are of to I trying years, rude, see tough but thought out there didn't Okay. want They I I'm couple been -- to put just what's the it what has said, not you for like of have going you because

Rob Sandlin

take And like as you No, don't at -- being things any business are say certainly, question. in fair don't We all. rooted that that's that we we're about. talk a -- those

Unidentified Analyst

very Okay, I appreciate Thanks it. much.

Rob Sandlin

you. Thank Great.

Operator

Rudd Please you. from if had follow-up question. Blackwell Thank go ahead. you And a Steve

Steve Rudd

I do things. and And straightforward for Rob, two. thanks your got approach have these and the straightforward team's

I'm -- a term everybody you question be yours, them again? prices. yet to further I'm well. on point. wondering But, accepted And adjust from follow-up from one could call. companies then, how inflation, And price I like are with thing The hearing pretty invest they small can managed. Adams have of familiar one most that quickly I increases I'm them, I'm being adjust And hearing in everybody prices to So enough well have, this I cap the old like

Rob Sandlin

fair it's Yeah. question. not It's completed. a that And we've

in are and the prices increases We last There's summer. there in through up month. and scheduled There a go up of were second are third prices up prices rate round went that were to that went February. that

as and haul products long those understand as doing ability think partnership we're there, got we've and out a I interested getting value to for are -- a with is difficulty demand what products partner -- the pure this and having business that long-range in the are it's them. business. don't customers I And So delivered people their of supply

only So to if future. back as to in think a we've think out we opportunities with partners, interested business, that companies couple done have in price And we rate type And to folks to of really some of that in pushed really cases a increase already. thus of question, there's relates we're the losing only like the that also ours. a not to there's change we've of But far company opportunities it your partnership point had increases. that the aren't with dealing couple of

think aware out -- So the that to timing there's more thing is of. that and properly there we opportunity some I probably have some still very be

Steve Rudd

Okay. what All last with consistent that's right. That's good. did you year. And guys

think runs light certainly your I'm here's I if shares, in do is I the a plan Ted's family? opportunity those know remember passing. the business. a what particularly pass for what seeing there to quite again, that's don't know is you what Is of is Are So last happens interesting we niche deep. At to business in least I of an that? -- name, they Adam, the question, shares shares? mean,

Matt McNulty

of any all family. on that. internally for the insight any have won't We That's handled

Rob Sandlin

Yeah. That's always personal stuff.

come hadn't it to us. -- we up So

know don't that So I at they're really point. this handling how

Steve Rudd

guys work. prior The triggered questioner. I the delicate And thank Okay. it Again, thing question. you hard for only understand it's was a the

as well aggressive, got probably you Street at in do I you'll from do you've that increases markets knowing the to you room think on is be but thing. right I and know the some And I do, room good heard got hands. your as least thoughtfully, you've think price your we're not but

again. thanks So

Rob Sandlin

your your participation appreciate we interest. and Well,

Matt McNulty

Yeah. Thank you.

Operator

And call questions Thank no you. this at in the I'd were closing for remarks. to back hand to time. there queue other Sandlin Rob like

Rob Sandlin

Patriot We next all in day. you look quarter. for interest with forward Thank Transportation. your you again Have a to talking good

Operator

and conclude you. gentlemen, conference. Thank today's this does Ladies

your you at have time, disconnect wonderful Thank this for participation. and may day. You a

Patriot Transportation Holding (PATI) 10 May 222022 Q2 Earnings call transcript