JACKSONVILLE, Fla., May 8 /PRNewswire-FirstCall/ -- Patriot
Transportation Holding, Inc. (NASDAQ:PATR) reported net income of
$626,000 or $0.20 per diluted share in the second quarter of fiscal
2008, a decrease of $1,971,000 compared to net income of $2,597,000
or $0.83 per diluted share in the same period last year. Net income
for the first six months of fiscal 2008 was $2,031,000 or $0.65 per
diluted share, a decrease of $2,726,000 compared to net income of
$4,757,000 or $1.53 per diluted share for the same period last
year. Net income for the first six 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 previous President and CEO, whose retirement was
effective February 6, 2008. The transportation segment was
negatively impacted in the first six months of fiscal 2008 from
continuing adverse demand, fuel expense and operating disruptions
for the flatbed trucking operations. The first six months of fiscal
2007 benefited from gains on equipment sales and prior period
insurance recoveries. Second Quarter Operating Results. For the
second quarter of fiscal 2008, consolidated revenues were
$41,088,000, an increase of $2,932,000 or 7.7% over the same
quarter last year. Transportation segment revenues were $34,738,000
in the second quarter of 2008, an increase of $2,150,000 over the
same quarter last year primarily due to fuel surcharges. Excluding
fuel surcharges, revenue per mile increased 3.2% over the same
quarter last year. Decreased construction material freight demand
and pricing softness from the downturn in housing pushed revenues
down in the flatbed operation compared to the same quarter last
year. Revenue miles in the current quarter were down 3.7% compared
to the second quarter of 2007 due to reduced loads in the flatbed
portion of the transportation segment. Real Estate segment revenues
for the second quarter of fiscal 2008 were $6,350,000, an increase
of $782,000 or 14.0% over the same quarter last year. Lease revenue
from developed properties increased $307,000 or 7.6%, due to an
increase in occupied square footage, higher rental rates on new
leases, and increased revenue from reimbursed real estate taxes.
Royalties and rent increased $475,000 or 31.1% despite reduced tons
mined because of an increase of $54,000 in revenues from timber
harvesting, revenue of $262,000 for reimbursement of higher real
estate taxes, and increases in minimum rent requirements effective
in August 2007 and October 2007 pursuant to terms contained in
several mining leases. Consolidated gross profit was $6,053,000 in
the second quarter of fiscal 2008, a decrease of $2,370,000 or
28.1% compared to $8,423,000 in the same period last year. Gross
profit in the transportation segment decreased $2,373,000 or 42.5%
due to increases in cost of operations along with decreased freight
demand, resulting in reduced revenue miles and lower pricing in the
flatbed portion. Average fuel cost per gallon in the second quarter
of 2008 increased 43% over the same period last year. This resulted
in an increase in fuel cost of $331,000 in excess of the increase
in fuel surcharge revenue in the flatbed portion. Insurance and
losses increased $1,182,000 primarily due the same quarter last
year including a reduction of expense for changes in estimated
prior year retained loss reserves as of March 31, 2007 versus
estimates as of September 30, 2006 as calculated by a third-party
actuary. Other expense increased $670,000 due to $295,000 higher
gains on equipment sales the same quarter last year along with an
increase of $344,000 in vehicle tires and maintenance. Gross profit
in the real estate segment increased $3,000 or 0.1% from the second
quarter 2007, due to higher rental rates on new leases, $54,000
increased gross profit from timber harvesting offset by increased
real estate taxes that could not be billed to tenants. Selling,
general and administrative expenses increased $450,000 over the
same quarter last year. The current quarter includes $132,000
accrual of retirement benefits for the Company's previous President
and CEO. Estimated allowance for doubtful accounts expense
increased $85,000 primarily due to inclusion in the prior year of a
reversal of prior accruals. Audit and legal fees increased $93,000
due to various projects. Stock compensation expense excluding
amounts associated with the Company's prior President and CEO
decreased $66,000. During the quarter a corporate aircraft was
purchased increasing expense $62,000. Donations increased $65,000
due to donations made earlier than the same donations were made in
the prior year. Payroll taxes increased $44,000 due to stock option
exercises. Six Months Operating Results. For the first six months
of fiscal 2008, consolidated revenues were $80,288,000, an increase
of $5,008,000 or 6.7% over the same period last year.
Transportation segment revenues were $67,657,000 in the first six
months of 2008, an increase of $3,345,000 over the same period last
year primarily due to fuel surcharges. Excluding fuel surcharges,
revenue per mile increased 2.6% over the same period last year.
Decreased construction material freight demand and pricing softness
from the downturn in housing pushed revenues down in the flatbed
operation compared to the same period last year. Revenue miles in
the first six months of fiscal 2008 were down 3.4% compared to the
first six months of fiscal 2007 due to reduced loads in the flatbed
portion of the transportation segment. Real Estate segment revenues
for the first six months of fiscal 2008 were $12,631,000, an
increase of $1,663,000 or 15.2% over the same period last year.
Lease revenue from developed properties increased $814,000 or
10.4%, due to an increase in occupied square footage along with
higher rental rates on new leases. Royalties and rent increased
$849,000 or 27.1% despite reduced tons mined because of an increase
of $365,000 in revenues from timber harvesting, revenue of $262,000
for reimbursement of higher real estate taxes, and increases in
minimum rent requirements effective in August 2007 and October 2007
pursuant to terms contained in several mining leases. Consolidated
gross profit was $12,276,000 in the first six months of fiscal
2008, a decrease of $3,606,000 or 22.7% compared to $15,882,000 in
the same period last year. Gross profit in the transportation
segment decreased $4,185,000 or 41.1% due to increases in cost of
operations along with decreased freight demand, resulting in
reduced revenue miles and lower pricing in the flatbed portion.
Average fuel cost per gallon in the first six months of 2008
increased 38% over the same period last year. This resulted in an
increase in fuel cost of $611,000 in excess of the increase in fuel
surcharge revenue in the flatbed portion. Insurance and losses
increased $1,580,000 primarily due to the same period last year
including a reduction of expense for changes in estimated prior
year retained loss reserves as of March 31, 2007 versus estimates
as of September 30, 2006 as calculated by a third-party actuary
along with a $357,000 of prior year insurance costs recorded in the
three months ended December 31, 2006. Other expense increased
$1,219,000 due to $750,000 higher gains on equipment sales over the
same period last year along with an increase of $501,000 in vehicle
tires and maintenance. Gross profit in the real estate segment
increased $579,000 or 10.1% from the first six months 2007, due to
higher rental rates on new leases, $365,000 increased gross profit
from timber harvesting offset by increased real estate taxes that
could not be billed to tenants. Selling, general and administrative
expenses increased $2,779,000 over the same period last year. The
current year includes $2,503,000 accrual of retirement benefits for
the Company's previous President and Chief Executive Officer.
Estimated allowance for doubtful accounts expense increased $89,000
primarily due to the inclusion in prior year of a reversal of prior
accruals. Audit and legal fees increased $100,000 due to various
projects. Stock compensation expense excluding amounts associated
with the Company's prior President and CEO decreased $97,000.
During the quarter a corporate aircraft was purchased increasing
expense $62,000. Donations increased $65,000 due to donations made
earlier than the same donations were made in the prior year.
Payroll taxes increased $45,000 due to stock option exercises.
Summary and Outlook. The flatbed portion of the transportation
segment continues to face severe industry over capacity and
significant disruptions to profitability from poor freight demand,
utilization disruption and pricing softness resulting from the
housing downturn as well as high fuel expenses. This downturn is
expected to continue to impact the operations of the flatbed
portion of our transportation business throughout calendar 2008.
The Company's real estate development business continues to expand
its portfolio of warehouse-office products consistent with
maintaining a watchful eye on national and regional economic
health. The Company is evaluating alternative proposals from
residential developers in an effort to obtain a Planned Unit
Development and Record Plat along with the eventual disposition of
the 62 developable acre residential portion of Windlass Run,
located in southeastern Baltimore County, Maryland. The Company has
a rezoning application before the Zoning Commission of the District
of Columbia for its 5.8 acre undeveloped site currently leased on
the Anacostia River in Washington, D.C. This tract is adjacent to
the new Washington Nationals Baseball Stadium. If the rezoning
application is granted, the Company would be permitted to develop
up to 545,800 square feet of commercial use and an additional
569,600 square feet for residential use. At a March 20, 2008
hearing, the Company received approval for Proposed Action subject
to a review by the National Capital Planning Commission (NCPC) and
final approval by the Zoning Commission. The NCPC reviewed the
proposed development plan at its meeting on May 1, 2008 and agreed
that the proposed project was not inconsistent with the Federal
interests there by finding no objection to the Zoning Commission
taking Final Action to approve the zoning application at a meeting
expected in the third or fourth quarter of Fiscal year 2008.
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 Six Months Ended Ended March 31 March 31 2008
2007 2008 2007 Revenues $ 41,088 38,156 $ 80,288 75,280 Gross
profit $ 6,053 8,423 $ 12,276 15,882 Income before income taxes $
1,192 4,261 $ 3,471 7,803 Net income $ 626 2,597 $ 2,031 4,757
Earnings per common share: Basic $0.21 0.86 $0.67 1.58 Diluted
$0.20 0.83 $0.65 1.53 Weighted average common shares outstanding:
Basic 3,037 3,017 3,039 3,007 Diluted 3,128 3,125 3,138 3,117
PATRIOT TRANSPORTATION HOLDING, INC. Condensed Balance Sheets
(unaudited) (Amounts in thousands) March 31 September 30 2008 2007
Cash and cash equivalents $ 8,428 $ 26,944 Accounts receivable, net
12,154 10,983 Other current assets 13,177 6,559 Property, plant and
equipment, net 202,783 192,523 Investment in Brooksville Joint
Venture 6,238 5,904 Other non-current assets 9,977 10,617 Total
Assets $ 252,757 $ 253,530 Current liabilities $ 20,663 $ 20,228
Long-term debt (excluding current 78,196 80,172 maturities)
Deferred income taxes 17,154 15,274 Other non-current liabilities
6,148 7,395 Shareholders' equity 130,596 130,461 Total Liabilities
and Shareholders' Equity $ 252,757 $ 253,530 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 Six
Months Ended March 31 March 31 2008 2007 2008 2007 Transportation
Revenues $ 34,738 32,588 $ 67,657 64,312 Real Estate Revenues 6,350
5,568 12,631 10,968 Total Revenues $ 41,088 38,156 $ 80,288 75,280
Transportation Operating Profit $ 976 3,440 $ 1,622 5,852 Real
Estate Operating Profit 2,848 2,845 6,288 5,709 Corporate Expenses
(1,426) (1,067) (4,676) (1,942) Total Operating Profit $ 2,398
5,218 $ 3,234 9.619 DATASOURCE: Patriot Transportation Holding,
Inc. CONTACT: John D. Baker II, Chief Executive Officer of Patriot
Transportation Holding, Inc., +1-904-396-5733
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