JACKSONVILLE, Fla., Aug. 13 /PRNewswire-FirstCall/ -- Patriot
Transportation Holding, Inc. (NASDAQ:PATR) reported income from
continuing operations of $.70 per diluted share in the third
quarter of fiscal 2009, a decrease of 14.2% compared to $2,580,000
or $.83 per diluted share for the same period last year. Income
from continuing operations for the first nine months of fiscal 2009
was $5,852,000 or $1.88 per diluted share for the first nine months
of fiscal 2009 compared to $5,703,000 or $1.82 per diluted share
for the same period last year. Reduced miles driven in the
transportation segment were more than offset by increased revenue
per mile, higher gains on equipment sales and cost management. The
real estate segment's results were impacted by lower royalty
revenues, increased depreciation and maintenance expense for new
buildings that are not leased, and severance costs but were
assisted by increased capitalization of property taxes and interest
expense. Net income for the first nine months of fiscal 2008
benefited from a gain on condemnation of land of $1,544,000, net of
income taxes but was adversely impacted by the accrual of
retirement benefits of $1,541,000, net of income tax benefits, for
the Company's former President and CEO, whose retirement was
effective February 6, 2008. In June 2009 the Company offered for
sale its flatbed trucking company, SunBelt Transport, Inc.
("SunBelt"). Discussions progressed such that an agreement of sale
was completed August 12, 2009 and closed on August 13, 2009. Under
the agreement, the Buyer purchased all of SunBelt's tractors and
trailers, leased the Sunbelt terminal facilities in Jacksonville,
Florida for 36 months at a rental of $5,000 per month and leased
the terminal facilities in South Pittsburgh, Tennessee for 60
months at a rental of $5,000 per month with an option to purchase
those Tennessee facilities at the end of the lease for payment of
an additional $100,000. The purchase price received for the
tractors and trailers and inventories was a $1 million cash payment
and the delivery of a Promissory Note requiring 60 monthly payments
of $130,000 each, secured by the assets of the business conveyed.
The Company retained all pre-closing receivables and liabilities.
SunBelt has been accounted for as discontinued operations in
accordance with Statement of Financial Accounting Standards No.
144, "Accounting for the Impairment or Disposal of Long-Lived
Assets" (SFAS 144). All periods presented have been restated
accordingly. Third Quarter Operating Results. For the third quarter
of fiscal 2009, consolidated revenues were $28,090,000, a decrease
of $6,048,000 or 17.7% over the same quarter last year.
Transportation segment revenues were $22,604,000 in the third
quarter of 2009, a decrease of $5,463,000 over the same quarter
last year. Revenue miles in the current quarter were down 8.0%
compared to the third quarter of 2008 due to the economic
environment. Excluding fuel surcharges, revenue per mile increased
3.4% over the same quarter last year. The average price paid per
gallon of diesel fuel decreased by $2.07 or 49.2% over the same
quarter in fiscal 2008. Fuel surcharge revenue decreased
$4,425,000. Real Estate segment revenues for the third quarter of
fiscal 2009 were $5,486,000, a decrease of $585,000 or 9.6% over
the same quarter last year. Lease revenue from developed properties
decreased $159,000 or 3.8% due to reduced occupancy. Royalties and
rent decreased $426,000 or 22.0% due to decreased demand for mined
tons and a $120,000 decrease in revenues from timber sales.
Consolidated gross profit was $7,181,000 in the third quarter of
fiscal 2009, a decrease of $997,000 or 12.2% compared to $8,178,000
in the same period last year. Gross profit in the transportation
segment decreased $179,000 or 3.5% due to reduced miles driven and
lower fuel surcharges mostly offset by improved insurance and loss
experience and other cost management. Gross profit in the real
estate segment decreased $818,000 or 26.8% from the third quarter
2008, due to decreased demand for tons mined, reduced occupancy of
developed properties, increased cost from new buildings placed in
service and severance costs partially offset by higher
capitalization of real estate taxes. Selling, general and
administrative expenses decreased $296,000 (9.3%) over the same
quarter last year primarily due to amounts paid to the Company's
prior CFO who retired in the same quarter last year. Income from
continuing operations was $2,213,000 or $.70 per diluted share in
the third quarter of fiscal 2009, a decrease of 14.2% compared to
$2,580,000 or $.83 per diluted share for the same period last year.
The after tax loss from discontinued operations for the third
quarter of fiscal 2009 was $2,615,000 versus income of $194,000 for
the same period last year. Diluted loss on discontinued operations
for the third quarter of fiscal 2009 was $.83 compared to diluted
earnings of $.06 in the same quarter last year. The third quarter
of fiscal 2009 includes a loss on the sale of $2,010,000 after tax
or $.64 per diluted share. Nine Months Operating Results. For the
first nine months of fiscal 2009, consolidated revenues were
$86,711,000, a decrease of $8,406,000 or 8.8% over the same period
last year. Transportation segment revenues were $69,108,000 in the
first nine months of 2009, a decrease of $7,307,000 over the same
period last year. Revenue miles in the first nine months of fiscal
2009 were down 5.1% compared to the first nine months of 2008 due
to the economic environment. Excluding fuel surcharges, revenue per
mile increased 4.8% over the same period last year. The average
price paid per gallon of diesel fuel decreased by $1.32 or 37.1%
over the same period last year. Fuel surcharge revenue decreased
$6,952,000. Real Estate segment revenues for the first nine months
of fiscal 2009 were $17,603,000, a decrease of $1,099,000 or 5.9%
over the same period last year. Lease revenue from developed
properties decreased $150,000 or 1.2%. Royalties and rent decreased
$949,000 or 16.1% due to decreased demand for mined tons.
Consolidated gross profit was $21,431,000 in the first nine months
of fiscal 2009, a decrease of $518,000 or 2.4% compared to
$21,949,000 in the same period last year. Gross profit in the
transportation segment increased $920,000 or 7.3% due higher gains
on equipment sales, increased revenue per mile, and cost management
offsetting the reduced miles driven. Gross profit in the real
estate segment decreased $1,438,000 or 15.4% from the first nine
months of fiscal 2008, due to reduced demand for mined tons,
expenses related to new building additions, and severance costs.
Selling, general and administrative expenses decreased $2,399,000
over the same period last year. Fiscal year 2008 included
$2,503,000 accrual of retirement benefits for the Company's
previous President and Chief Executive Officer. Gain from
condemnation of land was $2,507,000 in the first six months of
fiscal 2008 resulting from the taking by the Virginia Department of
Transportation ("VDOT") of 28 acres on December 13, 2007. The
Prince William County Property was purchased in December 2005 and
the cost of the 28 acres taken by VDOT was $3,282,000. Income from
continuing operations was $5,852,000 or $1.88 per diluted share for
the first nine months of fiscal 2009, an increase of 2.6% compared
to $5,703,000 or $1.82 per diluted share for the same period last
year. The after tax loss from discontinued operations for the first
nine months of fiscal 2009 was $3,098,000 compared to the after tax
loss of $898,000 for the same period last year. Diluted loss per
share on discontinued operations for the first nine months of
fiscal 2009 was $1.00 compared to a loss of $.28 in the first nine
months of fiscal 2008. The first nine months of fiscal 2009
includes a loss on the sale of $2,010,000 after tax or $.65 per
diluted share. Summary and Outlook. The flatbed and dry bulk tank
portions of the transportation segment continue to face poor
freight demand from the housing and commercial construction
downturns. During the first six months of fiscal 2009, increased
revenue per mile in the transportation segment and lower fuel
expenses offset reduced demand for flatbed trucking services.
However, the comparison was to a weak first half of the prior year.
Business picked up in the second half of last year and comparable
increases did not occur in the third quarter and are not
anticipated during the next months. In the real estate segment,
revenues from mining royalties are expected to be down versus the
prior year. Revenues from the leasing of developed buildings
likewise are expected to weaken from existing levels as our three
new buildings brought into service in the past twelve months
continue to contribute no revenue (but now add their fair share of
depreciation and maintenance expense) and expiring leases, if
renewed, will entail rent concessions from the existing levels.
Prospective tenants for vacant space are significantly fewer than
in the past few years, competition for their contracts are more
intense and rental rates continue to decline from existing levels.
The Company is not presently engaged in the construction of any new
buildings. On March 23, 2009, the Company's tank line subsidiary
entered into an agreement to sell approximately 1.5 acres of land
located in Escambia County, Florida for $1,950,000. The agreement
of sale was subject to certain contingencies, including the
satisfactory completion of the buyer's inspection period. The buyer
elected to terminate the agreement on August 3, 2009. In July 2008,
a subsidiary of the Company, FRP Bird River, LLC, entered into an
agreement to sell approximately 121 acres of land in Baltimore
County, Maryland to Mackenzie Investment Group, LLC. The purchase
price for the property is $25,265,000, subject to certain potential
purchase price adjustments. The agreement of sale is subject to
certain contingencies including government approvals and closing
may be two or more years away. The purchaser has placed
non-refundable deposits of $1,000,000 under this contract in escrow
including $650,000 in March 2009. Preliminary zoning approval for
the number of residential units originally contemplated under the
agreement's pricing contingencies has now been received and the
time for any appeals from that approval expired during the last
days of July 2009. 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 two wholly owned
subsidiaries. Florida Rock & Tank Lines, Inc. is a Southeastern
transportation company concentrating in the hauling by motor
carrier of liquid and dry bulk commodities. SunBelt Transport, Inc.
serves the flatbed portion of the trucking industry in the
Southeastern states, hauling primarily construction materials. 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 Nine Months Ended
Ended June 30 June 30 ------- ------- 2009 2008 2009 2008 ---- ----
---- ---- Revenues $28,090 34,138 $86,711 95,117 Gross profit
$7,181 8,178 $21,431 21,949 Income before taxes $3,397 3,925 $9,359
9,169 Income from continuing operations $2,213 2,580 $5,852 5,703
Income (loss) from discontinued operations ($2,615) 194 ($3,098)
(898) including loss on pending sale after taxes Net income (loss)
($402) 2,774 $2,754 4,805 Earnings per common share: Income from
continuing operations Basic $0.73 0.85 $1.93 1.88 Diluted $0.70
0.83 $1.88 1.82 Income (loss) from discontinued operations
including loss on pending sale after taxes Basic ($0.86) 0.07
($1.02) (0.30) Diluted ($0.83) 0.06 ($1.00) (0.28) Net income
(loss) Basic ($0.13) 0.92 $0.91 1.58 Diluted ($0.13) 0.89 $0.88
1.54 Weighted average common shares outstanding: Basic 3,044 3,024
3,039 3,034 Diluted 3,123 3,114 3,114 3,130 PATRIOT TRANSPORTATION
HOLDING, INC. Condensed Balance Sheets (unaudited) (Amounts in
thousands) June 30 September 30 2009 2008 ---- ---- Cash and cash
equivalents $12,181 $7,778 Accounts receivable, net 5,956 9,834
Other current assets 4,335 6,943 Property, plant and equipment, net
201,607 197,823 Investment in Brooksville Joint Venture 6,735 6,395
Other non-current assets 15,534 15,970 Assets of discontinued
operations 11,238 17,297 ------ ------ Total Assets $257,586
$262,040 ======== ======== Current liabilities $16,924 $20,737
Long-term debt (excluding current maturities) 72,960 76,153
Deferred income taxes 15,938 15,227 Other non-current liabilities
4,652 4,694 Liabilities of discontinued operations 5,829 7,874
Shareholders' equity 141,283 137,355 ------- ------- Total
Liabilities and Shareholders' Equity $257,586 $262,040 ========
======== PATRIOT TRANSPORTATION HOLDING, INC. Business Segments
(unaudited) (Amounts in thousands) The Company has identified two
business segments, Transportation and Real Estate, 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
------- ------- 2009 2008 2009 2008 ---- ---- ---- ----
Transportation Revenues $22,604 28,067 $69,108 76,415 Real Estate
Revenues 5,486 6,071 17,603 18,702 ----- ----- ------ ------ Total
Revenues $28,090 34,138 $86,711 95,117 ======= ====== =======
====== Transportation Operating Profit $2,961 3,003 $7,238 6,398
Real Estate Operating Profit 2,237 3,055 7,905 9,343 Corporate
Expenses -911 -1,070 -3,267 -5,746 ---- ------ ------ ------ Total
Operating Profit $4,287 4,988 $11,876 9,995 ====== ===== =======
===== DATASOURCE: Patriot Transportation Holding, Inc. CONTACT:
John D. Milton, Jr., Chief Financial Officer of Patriot
Transportation Holding, Inc., +1-904-396-5733
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