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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 2012.
Jacksonville, Florida; August 1, 2012-Patriot Transportation Holding, Inc.
(NASDAQ-PATR) reported net income of $2,684,000 or $.28 per diluted
share in the third quarter of fiscal 2012, an increase of $305,000 or 12.8%
compared to net income of $2,379,000 or $.25 per diluted share in the
same period last year. Net income for the first nine months of fiscal 2012
was $6,451,000 or $.68 per diluted share, a decrease of $4,006,000 or
38.3% compared to net income of $10,457,000 or $1.11 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.
Third Quarter Operating Results. For the third quarter of fiscal 2012,
consolidated revenues were $33,030,000, an increase of $1,083,000
or 3.4% over the same quarter last year.
Transportation segment revenues were $26,907,000 in the third
quarter of 2012, an increase of $725,000 over the same quarter last
year. Revenue miles in the current quarter were up .4% compared to
the third quarter of fiscal 2011 due to business growth partially offset
by a shorter average haul length. Revenue per mile increased 2.4%
over the same quarter last year due to rate increases, a lower average
haul length partially offset by lower fuel surcharges. Fuel surcharge
revenue decreased $521,000 due to lower fuel costs and
changes to certain customer rates to incorporate fuel surcharges into
base rates. The average price paid per gallon of diesel fuel decreased
by $.06 or 1.7% over the same quarter in fiscal 2011. 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
5.6% over the same quarter last year.
Mining royalty land segment revenues for the third quarter of fiscal
2012 were $1,101,000, a decrease of $79,000 or 6.7% over the
same quarter last year due to reduced tons mined on property owned
by the Company partially offset by royalties on new mining property.
Developed property rentals segment revenues for the third quarter of
fiscal 2012 were $5,022,000, an increase of $437,000 or 9.5% due
to higher occupancy. Occupancy at June 30, 2012 was 87.0% as
compared to 82.2% at June 30, 2011.
Consolidated operating profit was $4,891,000 in the third quarter
of fiscal 2012, an increase of $450,000 or 10.1% compared to
$4,441,000 in the same period last year. Operating profit in the
transportation segment decreased $158,000 or 6.5% primarily due
to increased health insurance and workers compensation claim costs
along with higher vehicle repairs, increased tire prices, and cost of
growth initiatives partially offset by increased gains on equipment sales
and incremental profits on increased revenues. Operating profit in the
mining royalty land segment decreased $52,000 or 6.1% due to
reduced tons mined on property owned by the Company partially
offset by reduced allocation of indirect management company costs
to this segment.
Continued
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200 W. Forsyth St., 7th Floor / Jacksonville, Florida 32202 /
(904) 396-5733
Operating profit in the Developed property rentals segment increased
$587,000 or 44.5% due to higher occupancy, lower real estate taxes,
maintenance costs and professional fees partially offset by higher
allocation of indirect management company costs. Consolidated operating
profit includes corporate expenses not allocated to any segment in the
amount of $94,000 in the third quarter of fiscal 2012, a decrease of
$73,000 compared to the same period last year.
The after tax income from discontinued operations for the third quarter
of fiscal 2012 was $8,000 versus income of $20,000 for the same period
last year. Diluted earnings per share on discontinued operations for the
third quarter of fiscal 2012 and fiscal 2011 was $.00. The discontinued
operations results are primarily due to SunBelt Transport risk reserve
adjustments.
Nine Months Operating Results. For the first nine months of fiscal 2012,
consolidated revenues were $94,715,000, an increase of $5,915,000 or
6.7% over the same period last year.
Transportation segment revenues were $77,197,000 in the first nine
months of fiscal 2012, an increase of $4,988,000 over the same period
last year. Revenue miles in the first nine months of fiscal 2012 were up
2.8% compared to the first nine months of fiscal 2011 due to business
growth and a slightly longer average haul length. Revenue per mile
increased 4.2% over the period last year due to rate increases and
higher fuel surcharges. Fuel surcharge revenue increased $1,279,000
due to higher fuel costs partially offset by changes to certain customer
rates to incorporate fuel surcharges into base rates. The average price
paid per gallon of diesel fuel increased by $.26 or 7.7% over the same
period in fiscal 2011. 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 3.4% over the same quarter last year.
Mining royalty land segment revenues for the first nine months of fiscal
2012 were $3,103,000, a decrease of $90,000 or 2.8% 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 partially
offset by new property royalties and higher timber sales.
Developed property rentals segment revenues for the first nine months
of fiscal 2012 were $14,415,000, an increase of $1,017,000 or 7.6%
due to higher occupancy. Occupancy at June 30, 2012 was 87.0% as
compared to 82.2% at June 30, 2011.
Consolidated operating profit was $11,549,000 in the first nine months
of fiscal 2012, an increase of $736,000 or 6.8% compared to
$10,813,000 in the same period last year. Operating profit in the
transportation segment decreased $915,000 or 14.2% primarily
due to increased workers compensation and health insurance claims
along with an increase 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 $12,000
or .6% primarily due to reduced allocation of indirect management
company costs to this segment. Operating profit in the Developed
property rentals segment increased $1,309,000 or 37.6% 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 $945,000 in the first nine months of
fiscal 2012, a decrease of $330,000 compared to the same period
last year which included an adjustment to the fair value of the
corporate aircraft of $300,000.
The first 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.
Continued
The after tax income from discontinued operations for the first
nine months of fiscal 2012 was $11,000 versus income of
$5,125,000 for the same period last year. Diluted earnings per
share on discontinued operations for the first nine months of fiscal
2012 was $.00 compared to $.55 in the first nine months of fiscal
2011. The first nine months of fiscal 2011 included a book gain
on the exchange of property of $4,926,000 after tax or $.52 per
diluted share.
Summary and Outlook. Transportation segment miles for this year
were 2.8% higher than last year. The Company continues to succeed in
adding drivers and customers and anticipates increasing segment miles
during fiscal 2012.
In May 2012 the Company acquired approximately 1,200 acres near
Orlando, Florida for a purchase price of $11 million. The Company
simultaneously executed a long-term royalty lease under which it
receives a minimum monthly royalty payment until the tenant receives
the necessary permits and begins mining.
Developed property rentals occupancy has increased from 79.8% to
87.0% over last fiscal year end as the market for new tenants has
improved and traffic for vacant space has increased. Occupancy at
June 30, 2012 and 2011 included 104,226 square feet or 3.4%
and 118,156 square feet or 3.9% respectively for temporary
storage under a less than full market lease rate. 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
which is currently under construction.
Conference Call.The Company will also host a conference call at
2:00 p.m. EDT on August 1, 2012.Analysts, stockholders and other
interested parties may access the teleconference live by calling
1-800-933-4955 (pass code 94633) within the United States.
International callers may dial 1-334-323-7225 (pass code 94633).
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
60280750.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.
Smmary of Consolidated Revenues and Earnings (unaudited)
(In thousands except per share amounts)
Three Months
Nine Months
Ended
Ended
June 30
June 30
2012
2011
2012
2011
Revenues
$33,030
31,947
94,715
88,800
Operating profit
$4,891
4,441
11,549
10,813
Income before taxes $4,344 3,708 10,456 8,535
Income from continuing
operations $2,676 2,359 6,440 5,332
Income from discontinued
operations 8 20 11 5,125
Net income
$2,684
2,379
6,451
10,457
Comprehensive Income
$2,684
2,379
6,451
10,457
Earnings per common share:
Income from continuing operations
Basic
$0.29
0.25
0.69
0.57
Diluted $0.28 0.25 0.68 0.56
Income from discontinued operations
Basic $0.00 0.01 0.00 0.56
Diluted $0.00 0.00 0.00 0.55
Net income
Basic $0.29 0.26 0.69 1.13
Diluted $0.28 0.25 0.68 1.11
Weighted average common shares outstanding:
Basic
9,382
9,291 9,341 9,279
Diluted
9,482
9,443
9,458
9,453
PATRIOT TRANSPORTATION HOLDING, INC.
Condensed Balance Sheets (unaudited)
(Amounts in thousands)
June 30
September 30
2012
2011
Cash and cash equivalents $ 11,838 $ 21,026
Accounts receivable, net 9,345 6,702
Federal and state income taxes receivable - 93
Assets of discontinued operations 101 114
Other current assets
4,288
6,759
Property, plant and equipment, net
223,085
208,988
Investment in Brooksville Joint Venture 7,523 7,412
Other non-current assets 16,172
15,296
Total Assets $ 272,352 $ 266,390
========= ==========
Current liabilities $ 19,357 $ 18,198
Liabilities of discontinued operations 20 34
Long-term debt (excluding current
maturities) 58,474 62,370
Deferred income taxes
17,939
16,919
Other non-current liabilities
4,060 4,422
Shareholders' equity
172,502 164,447
Total Liabilities and Shareholders'
Equity $ 272,352 $ 266,390
========= =========
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:
Three Months Ended
Nine Months Ended
June 30
June 30
2012
2011
2012
2011
Transportation
revenues $26,907 26,182 77,197 72,209
Mining royalty land
revenues 1,101 1,180 3,103 3,193
Developed property rentals
revenues 5,022
4,585
14,415 13,398
Total Revenues
$33,030 31,947 94,715 88,800
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Transportation operating
profit $ 2,286 2,444 5,519 6,434
Mining royalty land operating
profit 794 846 2,180 2,168
Developed property rentals
operating profit
1,905 1,318 4,795 3,486
Unallocated corporate
expenses (94) (167) (945) (1,275)
Total Operating
Profit
$4,891 4,441 11,549 10,813
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