JACKSONVILLE, Fla.,
May 1, 2013 /PRNewswire/ -- Patriot
Transportation Holding, Inc. (NASDAQ-PATR) reported net income of
$2,271,000 or $.24 per diluted share in the second quarter of
fiscal 2013, an increase of $628,000
or 38.2% compared to net income of $1,643,000 or $.17
per diluted share in the same period last year. Net income
for the first six months of fiscal 2013 was $5,394,000 or $.56
per diluted share, an increase of $1,627,000 or 43.2% compared to net income of
$3,767,000 or $.40 per diluted share for the same period last
year.
Second Quarter Operating Results. For the second
quarter of fiscal 2013, consolidated revenues were $33,868,000, an increase of $2,542,000 or 8.1% over the same quarter last
year.
Transportation segment revenues were $27,176,000 in the second quarter of 2013, an
increase of $1,727,000 over the same
quarter last year. Revenue miles in the current quarter were
up 5.4% compared to the second quarter of fiscal 2012 due to
business growth and a longer average haul length. Revenue per
mile increased 1.4% over the same quarter last year due to rate
increases and higher fuel surcharges partially offset by a longer
average haul length. Fuel surcharge revenue decreased
$77,000 due to changes to certain
customer rates to incorporate fuel surcharges into base rates. The
average price paid per gallon of diesel fuel decreased by
$.01 over the same quarter in fiscal
2012. 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 3.3% over the same quarter
last year.
Mining royalty land segment revenues for the second quarter of
fiscal 2013 were $1,244,000, an
increase of $219,000 or 21.4% over
the same quarter last year due to royalties on a new property
purchased in May 2012 along with a
shift in production at one location increasing the share of mining
on property owned by the Company partially offset by lower timber
sales.
Developed property rentals segment revenues for the second
quarter of fiscal 2013 were $5,448,000, an increase of $596,000 or 12.3% due to higher occupancy and
revenue on the 117,600 square foot build to suit building completed
and occupied during the period. Occupancy at March 31, 2013 was 88.5% as compared to 86.0% at
March 31, 2012.
Consolidated operating profit was $4,308,000 in the second quarter of fiscal 2013,
an increase of $864,000 or 25.1%
compared to $3,444,000 in the same
period last year. Operating profit in the transportation
segment increased $131,000 or 7.3%
due to incremental profits on increased revenue mostly offset by
higher accident costs and health insurance claims. Operating
profit in the mining royalty land segment increased $224,000 or 31.9% due to royalties on a new
property purchased in May 2012 along
with a shift in production at one location increasing the share of
mining on property owned by the Company partially offset by
increased corporate expense allocation and lower timber
sales. Operating profit in the Developed property rentals
segment increased $619,000 or 41.0%
due to higher occupancy, the 117,600 square foot build to suit
building completed and occupied during the period, and lower
professional fees. Consolidated operating profit includes corporate
expenses not allocated to any segment in the amount of $669,000 in the second quarter of fiscal 2013, an
increase of $110,000 compared to the
same period last year.
Interest expense decreased $214,000 over the same quarter last year due to
higher capitalized interest and declining mortgage principal
balance. The amount of interest capitalized on real estate
projects under development was $133,000 higher than the same quarter in fiscal
2012 primarily due to resumed development of Patriot Business Park
in April 2012.
Six Months Operating Results. For the first six
months of fiscal 2013, consolidated revenues were $66,925,000, an increase of $5,240,000 or 8.5% over the same period last
year.
Transportation segment revenues were $53,815,000 in the first six months of 2013, an
increase of $3,525,000 over the same
period last year. Revenue miles in the first six months of
fiscal 2013 were up 4.4% compared to the first six months of fiscal
2012 due to business growth and a slightly longer average haul
length. Revenue per mile increased 2.7% over the same period
last year due to rate increases and higher fuel surcharges.
Fuel surcharge revenue increased $46,000 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 $.08 or 2.2% over the
same period in fiscal 2012. 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 3.8% over the same period last year.
Mining royalty land segment revenues for the first six months of
fiscal 2013 were $2,575,000, an
increase of $573,000 or 28.6% over
the same period last year due to royalties on a new property
purchased in May 2012 along with a
shift in production at one location increasing the share of mining
on property owned by the Company partially offset by lower timber
sales.
Developed property rentals segment revenues for the first six
months of fiscal 2013 were $10,535,000, an increase of $1,142,000 or 12.2% due to higher occupancy and
revenue on a 117,600 square foot build to suit building completed
and occupied during the period. Occupancy at March 31, 2013 was 88.5% as compared to 86.0% at
March 31, 2012.
Consolidated operating profit was $8,716,000 in the first six months of fiscal
2013, an increase of $2,058,000 or
30.9% compared to $6,658,000 in the
same period last year. Operating profit in the transportation
segment increased $485,000 or 15.0%
due to incremental profits on increased revenue and higher gains on
equipment sales partially offset by higher accident costs,
increased vehicle repair costs, increased site maintenance, and
increased sales, general and administrative expenses.
Operating profit in the mining royalty land segment increased
$563,000 or 40.6% due to royalties on
a new property purchased in May 2012
along with a shift in production at one location increasing the
share of mining on property owned by the Company partially offset
by increased corporate expense allocation and lower timber
sales. Operating profit in the Developed property rentals
segment increased $1,091,000 or 37.8%
due to higher occupancy, the 117,600 square foot build to suit
building completed and occupied during the period and lower
professional fees partially offset by higher health insurance
claims allocation. Consolidated operating profit includes
corporate expenses not allocated to any segment in the amount of
$932,000 in the first six months of
fiscal 2013, an increase of $81,000
compared to the same period last year.
Gain on investment land sold for the first six months of fiscal
2013 included a gain on the sale of the developed property rentals
Commonwealth property of $1,116,000
before income taxes. The book value of the property was
$723,000.
The first six 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.
Interest expense decreased $590,000 over the same period last year due to
higher capitalized interest and declining mortgage principal
balance. The amount of interest capitalized on real estate
projects under development was $430,000 higher than the same period in fiscal
2012 primarily due to resumed development of Patriot Business Park
in April 2012.
Summary and Outlook. Transportation segment miles
for this year were 4.4% higher than last year. The Company
continues to succeed in adding drivers and customers and
anticipates increasing segment miles during fiscal 2013.
Developed property rentals occupancy has increased from 86.0% to
88.5% over March 31, 2012 as the
market for new tenants has improved and traffic for vacant space
has increased. Occupancy at March 31,
2013 and 2012 included 25,660 square feet or .9% and 104,226
square feet or 3.6% respectively for temporary storage under a less
than full market lease rate. The Company resumed development
of Patriot Business Park in April
2012 due to two 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, 2012, for a 117,600 square foot building
which was completed and occupied during the quarter ending
March 31, 2013.
Conference Call. The Company will host a
conference call at 2:00 p.m. (EDT) on
May 1, 2013. Analysts,
stockholders and other interested parties may access the
teleconference live by calling 1-800-311-9408 (pass code 14834)
within the United States. International callers may dial
1-334-323-7224 (pass code 14834). 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 11162657. 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.
PATRIOT
TRANSPORTATION HOLDING, INC. AND
SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (In
thousands except per share amounts)
(Unaudited)
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THREE
MONTHS ENDED
MARCH 31,
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SIX
MONTHS ENDED
MARCH 31,
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2013
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2012
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2013
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2012
|
Revenues:
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|
|
|
|
|
|
|
|
|
|
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|
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Transportation
|
$
|
27,176
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|
|
|
25,449
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|
|
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53,815
|
|
|
|
50,290
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|
Mining royalty land
|
|
1,244
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|
|
|
1,025
|
|
|
|
2,575
|
|
|
|
2,002
|
|
Developed property rentals
|
|
5,448
|
|
|
|
4,852
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|
|
|
10,535
|
|
|
|
9,393
|
|
Total
revenues
|
|
33,868
|
|
|
|
31,326
|
|
|
|
66,925
|
|
|
|
61,685
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|
|
|
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Cost of
operations:
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Transportation
|
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25,255
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23,659
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|
|
|
50,097
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|
|
|
47,057
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|
Mining royalty land
|
|
318
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|
|
323
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|
|
|
626
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|
|
|
616
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|
Developed property rentals
|
|
3,318
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|
|
|
3,341
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|
|
|
6,554
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|
|
|
6,503
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|
Unallocated corporate
|
|
669
|
|
|
|
559
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|
|
|
932
|
|
|
|
851
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|
Total cost
of operations
|
|
29,560
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|
|
27,882
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|
|
|
58,209
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|
55,027
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Operating profit:
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Transportation
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1,921
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|
|
|
1,790
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|
|
|
3,718
|
|
|
|
3,233
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Mining royalty land
|
|
926
|
|
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|
702
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|
|
|
1,949
|
|
|
|
1,386
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Developed property rentals
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|
2,130
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|
|
|
1,511
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3,981
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2,890
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Unallocated corporate
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|
(669)
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(559)
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(932)
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(851)
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Total
operating profit
|
|
4,308
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|
3,444
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8,716
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6,658
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Gain on
termination of sale contract
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—
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—
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—
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|
|
|
1,039
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Gain on
investment land sold
|
|
—
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|
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|
—
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|
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|
1,116
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|
|
—
|
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Interest
income and other
|
|
5
|
|
|
|
12
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|
37
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|
|
21
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Equity in
loss of joint venture
|
|
(11)
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(1)
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(19)
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(8)
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Interest
expense
|
|
(580)
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|
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(794)
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(1,008)
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|
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(1,598)
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Income
before income taxes
|
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3,722
|
|
|
|
2,661
|
|
|
|
8,842
|
|
|
|
6,112
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|
Provision
for income taxes
|
|
(1,451)
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|
|
(1,022)
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|
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(3,448)
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|
|
(2,348)
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Income
from continuing operations
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|
2,271
|
|
|
|
1,639
|
|
|
|
5,394
|
|
|
|
3,764
|
|
|
|
|
|
|
|
|
|
|
|
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Income
from discontinued operations, net
|
|
—
|
|
|
|
4
|
|
|
|
—
|
|
|
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
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Net
income
|
$
|
2,271
|
|
|
|
1,643
|
|
|
|
5,394
|
|
|
|
3,767
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive Income
|
$
|
2,271
|
|
|
|
1,643
|
|
|
|
5,394
|
|
|
|
3,767
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Earnings per common share:
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Income
from continuing operations -
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|
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|
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Basic
|
|
0.24
|
|
|
|
0.18
|
|
|
|
0.57
|
|
|
|
0.40
|
|
Diluted
|
|
0.24
|
|
|
|
0.17
|
|
|
|
0.56
|
|
|
|
0.40
|
|
Discontinued operations (Note 11) -
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Basic
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Diluted
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
Net income
- basic
|
|
0.24
|
|
|
|
0.18
|
|
|
|
0.57
|
|
|
|
0.40
|
|
Net income
- diluted
|
|
0.24
|
|
|
|
0.17
|
|
|
|
0.56
|
|
|
|
0.40
|
|
|
|
|
|
|
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|
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Number
of shares (in thousands)
|
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|
used in computing:
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
-basic earnings per common
share
|
|
9,527
|
|
|
|
9,353
|
|
|
|
9,481
|
|
|
|
9,321
|
|
-diluted earnings per common
share
|
|
9,599
|
|
|
|
9,471
|
|
|
|
9,565
|
|
|
|
9,446
|
|
|
|
|
|
|
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|
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SOURCE Patriot Transportation Holding, Inc.