Attached files
Exhibit 99.9
PATRIOT TRANSPORTATION HOLDING, INC./NEWS
Contact: John D. Milton, Jr.
Chief Financial Officer 904/396-5733
PATRIOT TRANSPORTATION HOLDING, INC. ANNOUNCES
RESULTS FOR THE FOURTH QUARTER AND FISCAL YEAR
ENDED SEPTEMBER 30, 2012.
Jacksonville, Florida; December 5, 2012 - Patriot Transportation Holding,
Inc. (NASDAQ-PATR) reported net income of $1,357,000 or $.14 per
diluted share in the fourth quarter of fiscal 2012, a decrease of $397,000
or 22.6% compared to net income of $1,754,000 or $.19 per diluted
share in the same period last year. Net income was $7,808,000 or
$.82 per diluted share in fiscal 2012, a decrease of 36.1% compared
to $12,211,000 or $1.29 per diluted share in fiscal 2011. Income
from discontinued operations favorably impacted net income in fiscal
2011 due to an after tax gain of $4,999,000 or $.53 per diluted share
from the exchange of property.
The fourth quarter of fiscal 2012 includes an environmental remediation
expense of $1,771,000 ($1,091,000 after income taxes or $.12 per
diluted share) on the portion of the Company's property on the
Anacostia River in Washington D.C. which is to be contributed to a
joint venture for the intended construction of an apartment building.
Preliminary testing completed in the summer of 2012 on this portion
of the site indicated the presence of contaminated material that will
have to be specially handled in the event of excavation in conjunction
with construction. There are certain contaminants that we believe are
a result of normal operations of our previous tenant over the long-term
due to documented releases from an underground storage tank along
with other activities by the tenant on the property. The actual
expense may be materially higher or lower depending upon
the determined responsibility of the prior tenant, our ability to
collect from such prior tenant and actual costs incurred. While
we strongly believe that this expense by lease terms and by
law rightfully falls on our prior tenant for the site, we have not
yet received such tenant's commitment to take this
responsibility and so are accruing this expense to reassure our
joint venture partner, MRP that this enviornmental issue
will not adversely affect the ancitipated construction
cost of our apartment project on Phase I of the site.
Fourth Quarter Operating Results. For the fourth quarter of fiscal
2012, consolidated revenues were $32,799,000, an increase of
$1,493,000 or 4.8% over the same quarter last year.
Transportation segment revenues were $26,279,000 in the fourth
quarter of 2012, an increase of $687,000 over the same quarter last
year. Revenue miles in the current quarter were up .3% compared to
the fourth quarter of fiscal 2011 due to business growth partially offset
by a shorter average haul length. Fuel surcharge revenue decreased
$535,000 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 $.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 5.5% over the same quarter last year.
Mining royalty land segment revenues for the fourth quarter of fiscal
2012 were $1,380,000, an increase of $312,000 or 29.2% over the
same quarter last year, due to new property royalties.
Developed property rentals segment revenues for the fourth quarter of
fiscal 2012 were $5,140,000, an increase of $494,000 or 10.6% due
to higher occupancy. Occupancy at September 30, 2012 was 88.7%
as compared to 79.8% at September 30, 2011.
Continued
200 W. Forsyth St., 7th Fl./Jacksonville, Florida 32202/(904) 396-5733
Consolidated operating profit was $2,552,000 in the fourth quarter of
fiscal 2012, a decrease of $1,004,000 or 28.2% compared to
$3,556,000 in the same period last year. Operating profit in the
transportation segment increased $363,000 or 22.8% primarily due
to lower insurance and loss expense because the fourth quarter of
fiscal 2011 included two severe non-preventable incidents. Operating
profit in the mining royalty land segment increased $362,000 or 52.5%
primarily due to new property royalties. Operating profit in the
developed property rentals segment decreased $1,723,000 or
121.9% primarily due to the $1,771,000 environmental remediation
expense. Consolidated operating profit includes corporate expenses
not allocated to any segment in the amount of $146,000 in the fourth
quarter of fiscal 2012, compared to $140,000 for the same period last
year.
The after tax income from discontinued operations for the fourth
quarter of fiscal 2012 was $86,000 versus $97,000 for the same
period last year. Diluted earnings per share on discontinued operations
for the fourth quarter of fiscal 2012 was $.01 compared to $.01 in the
fourth quarter of fiscal 2011.
Fiscal Year 2012 Operating Results. For the fiscal year 2012,
consolidated revenues were $127,514,000, an increase of
$7,408,000 or 6.2% over the same period last year.
Transportation segment revenues were $103,476,000 in 2012, an
increase of $5,675,000 or 5.8% over 2011. Revenue miles in fiscal
2012 were up 2.1% compared to 2011 due to business growth and a
slightly longer average haul length. Revenue per mile increased 3.5%
over 2011 due to rate increases and higher fuel surcharges. Fuel
surcharge revenue increased $743,000 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 $.27 or 7.9% over 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 4.3% over 2011.
Mining royalty land segment revenues for fiscal 2012 were
$4,483,000, an increase of $222,000 or 5.2% compared to
$4,261,000 in 2011 due to new property royalties and higher timber
sales partially offset by production at two locations reducing the
share of mining on the property owned by the Company.
Developed property rentals segment revenues increased $1,511,000
or 8.4% in 2012 to $19,555,000 due to higher occupancy.
Occupancy at September 30, 2012 was 88.7% as compared to
79.8% at September 30, 2011.
Consolidated operating profit was $14,101,000 in fiscal 2012
compared to $14,369,000 in 2011, a decrease of 1.9%. Operating
profit in the transportation segment decreased $552,000 or 6.9%
due to increased workers compensation and health insurance claims
along with an increase in fuel costs, higher vehicle repairs, increased
tire prices and costs of growth initiatives partially offset by higher
gains on equipment sales, incremental profits of increased revenues
and two severe non-preventable incidents in the last four months of
fiscal 2011. Operating profit in the mining royalty land segment
increased $374,000 or 13.1% due to new property royalties, higher
timber sales and reduced allocation of indirect management costs to
this segment. Operating profit in the developed property rentals
segment decreased $414,000 or 8.5% primarily due to the
$1,771,000 environmental remediation expense partially offset
by higher occupancy and lower real estate taxes. Consolidated
operating profit includes corporate expenses not allocated to any
segment in the amount of $1,091,000 in fiscal 2012, a decrease
of $324,000 compared to 2011 which included an adjustment to
the fair value of the corporate aircraft of $300,000.
Continued
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.
The after tax income from discontinued operations was
$97,000 or $.01 per diluted share in fiscal 2012. The after tax
income from discontinued operations was $5,222,000 or $.55
per diluted share in fiscal 2011 which included a book gain on
the exchange of property of $4,999,000 after tax or $.53 per
diluted share.
Summary, Outlook and Subsequent Events. Transportation
segment miles for this year were 2.1% higher than last year.
The Company continues to succeed in adding drivers and
customers and anticipates increasing segment miles during
fiscal 2013.
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 sand.
The Company completed a reverse 1031 exchange in November
2012 by selling the Commonwealth property in Jacksonville
Florida for a sale price of $2 million which will result in a gain of
$1.1 million before income taxes in fiscal 2013.
Developed property rentals occupancy has increased from 79.8%
to 88.7% over last fiscal year end as the market for new tenants
has improved and traffic for vacant space has increased. Occupancy
at September 30, 2012 and 2011 included 98,993 square feet or
3.4% and 104,226 square feet or 3.6% respectively for temporary
space under less than full market lease rates. 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 and scheduled for
completion and occupancy in the first quarter of calendar 2013.
Windlass Run Residential (previously Bird River), located in
southeastern Baltimore County, Maryland, is a 121 acre tract of
land adjacent to our Windlass Run Business Park. In September
the Company received a non-binding letter of intent to sell the
phase 1 of the property in fiscal 2013 for $7.9 million and the
balance for $10.9 million approximately 18 months later.
Conference Call.The Company will also host a conference call
on Wednesday afternoon, December 5, 2012 at 2:00 p.m. (EST).
Analysts, stockholders and other interested parties may access
the teleconference live by calling 1-800-853-3898 (pass code
64482) within the United States.International callers may dial
1-334-323-7225 (pass code 64482).Computer audio is
available via the Internet through the Conference America, Inc.
website athttp://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 35137862.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.
Continued
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.
PATRIOT TRANSPORTATION HOLDING, INC.
Summary of Consolidated Revenues and Earnings (unaudited)
(In thousands except per share amounts)
Three Months
Fiscal Year
Ended
Ended
September 30
September 30
--------------- --------------
2012
2011
2012
2011
------ ----- ------ ------
Revenues
$32,799
31,306
$127,514
120,106
Operating profit
$2,552
3,556
$14,101
14,369
Income before taxes
$2,064
2,752 $12,520 11,287
Income from continuing operations $1,271 1,657 $7,711 6,989
Income from discontinued operations $86 97
$97 5,222
Net income
$1,357
1,754
$7,808
12,211
Earnings per common share:
Income from continuing operations
Basic
$0.13
0.18
$0.82
0.75
Diluted
$0.13 0.18 $0.81 0.74
Income from discontinued operations
Basic $0.01 0.01 $0.01 0.57
Diluted $0.01 0.01 $0.01 0.55
Net income
Basic $0.14 0.19 $0.83 1.32
Diluted $0.14 0.19 $0.82 1.29
Weighted average common shares outstanding:
Basic
9,414
9,299
9,360
9,284
Diluted
9,519
9,441
9,474
9,451
Continued
PATRIOT TRANSPORTATION HOLDING, INC.
Condensed Balance Sheets (unaudited)
(Amounts in thousands)
September 30
September 30
2012
2011
-------------- ---------------
Cash and cash equivalents
$ 6,713
$ 21,026
Accounts receivable, net 7,019
6,702
Real estate tax refund receivable 2,311 -
Federal and state income taxes receivable 426 93
Real estate held for sale, at cost 3,485 -
Assets of discontinued operations
- 114
Other current assets
6,965
6,759
Property, plant and equipment, net
228,021
208,988
Investment in Brooksville Joint Venture
7,521
7,412
Other non-current assets 13,244 15,296
----------- ------------
Total Assets
$ 275,705 $ 266,390
======== =========
Current liabilities $ 20,165 $ 18,198
Liabilities of discontinued operations
-
34
Long-term debt (excluding current
maturities)
57,131
62,370
Deferred income taxes
18,199
16,919
Other non-current liabilities
5,492
4,422
Shareholders' equity 174,718 164,447
---------- ------------
Total Liabilities and Shareholders'
Equity
$ 275,705 $ 266,390
======== ========
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
Fiscal Year Ended
September 30
September 30
-------------- ---------------
2012
2011
2012
2011
------ ----- ------ ------
Transportation revenues
$26,279 25,592 $103,476 97,801
Mining royalty land revenues 1,380 1,068
4,483 4,261
Developed property rentals revenues
5,140
4,646
19,555
18,044
------ ------ -------- -------
Total Revenues
$32,799
31,306
$127,514
120,106
====== ===== ====== ======
Transportation operating profit $1,957 1,594 $7,476
8,028
Mining royalty land operating profit 1,051 689
3,231 2,857
Developed property rentals operating
profit
(310)
1,413
4,485
4,899
Unallocated corporate expenses
(146)
(140)
(1,091)
(1,415)
-------- -------- --------- ----------
Total Operating Profit
$2,552
3,556 $14,101
14,369
===== ===== ======= =====
