JACKSONVILLE,
Fla., Dec. 4, 2013
/PRNewswire/ -- Patriot Transportation Holding, Inc.
(NASDAQ-PATR) reported net income of $6,989,000 or $.72
per diluted share in the fourth quarter of fiscal 2013, an increase
of $5,632,000 or 415.0% compared to
net income of $1,357,000 or
$.14 per diluted share in the same
period last year. The fourth quarter of fiscal 2013 included
gains from sales of investment properties of $6,217,000 ($3,792,000 after income taxes or $.39 per diluted share). The fourth quarter
of fiscal 2012 included $1,771,000
remediation expense ($1,091,000 after
income taxes or $.12 per diluted
share).
For the full year net income was $15,385,000 or $1.60 per diluted share in fiscal 2013, an
increase of 97.0% compared to $7,808,000 or $.82
per diluted share in fiscal 2012. Fiscal 2013 included gains
from sales of investment properties of $7,333,000 ($4,473,000 after income taxes or $.47 per diluted share).
Fourth Quarter Operating Results. For the fourth
quarter of fiscal 2013, consolidated revenues were $37,141,000, an increase of $4,342,000 or 13.2% over the same quarter last
year.
Transportation segment revenues were $29,511,000 in the fourth quarter of 2013, an
increase of $3,232,000 over the same
quarter last year. Revenue miles in the current quarter were
up 13.8% compared to the fourth quarter of fiscal 2012 due to
business growth and a longer average haul length. Fuel surcharge
revenue increased $538,000 due to
higher mileage partially offset by changes to certain customer
rates to incorporate fuel surcharges into base rates. The
average price paid per gallon of diesel fuel decreased by
$.02 or .5% over the same quarter in
fiscal 2012. Excluding fuel surcharges, revenue per mile
decreased 1.2% over the same quarter last year due to the longer
average haul length.
Mining royalty land segment revenues for the fourth quarter of
fiscal 2013 were $1,428,000, an
increase of $48,000 or 3.5% over the
same quarter last year, due to a shift in production at two
locations increasing the share of mining on property owned by the
Company.
Developed property rentals segment revenues for the fourth
quarter of fiscal 2013 were $6,202,000, an increase of $1,062,000 or 20.7% due to higher occupancy and
revenue on the 117,600 square foot build to suit building completed
and occupied during the quarter ending March
2013 and revenue on the purchase of Transit Business Park in
late June 2013 which consists of 5
buildings. Occupancy at September 30,
2013 was 89.6% as compared to 88.7% at September 30, 2012.
Consolidated operating profit was $5,648,000 in the fourth quarter of fiscal 2013,
an increase of $3,096,000 or 121.3%
compared to $2,552,000 in the same
period last year. Operating profit in the transportation
segment increased $572,000 or 29.2%
primarily due to the increase in miles driven and lower health
insurance claims. Operating profit in the mining royalty land
segment increased $28,000 or
2.7%. Operating profit in the developed property rentals
segment increased $2,475,000 or
798.4% primarily due to higher occupancy, the 117,600 square foot
build to suit building completed and occupied during second quarter
and the $1,771,000 environmental
remediation expense recorded in fiscal 2012 partially offset by
higher maintenance expenses, professional fees and property
taxes.
Interest expense for the fourth quarter of fiscal 2013 decreased
$128,000 over the same quarter last
year due to declining mortgage interest expense. The amount of
interest capitalized on real estate projects under development was
$47,000 lower than the same period in
fiscal 2012 primarily due to the completed development of Patriot
Business Park.
The after tax income from discontinued operations for the fourth
quarter of fiscal 2013 was $0 versus
$86,000 for the same period last
year. Diluted earnings per share on discontinued operations
for the fourth quarter of fiscal 2013 was $.00 compared to $.01 in the fourth quarter of fiscal
2012.
Fiscal Year 2013 Operating Results. For the fiscal
year 2013, consolidated revenues were $139,774,000, an increase of $12,260,000 or 9.6% over the same period last
year.
Transportation segment revenues were $112,120,000 in 2013, an increase of $8,644,000 or 8.4% over 2012. Revenue miles
in fiscal 2013 were up 7.3% compared to 2012 due to business growth
and a slightly longer average haul length. Revenue per mile
increased 1.0% over 2012 due to rate increases. Fuel
surcharge revenue increased $477,000
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 $.01 or .4% over
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 2.0% over 2012.
Mining royalty land segment revenues for fiscal 2013 were
$5,302,000, an increase of
$819,000 or 18.3% compared to
$4,483,000 in 2012 due to royalties
on new property purchased in May 2012
along with a shift in production at two locations increasing the
share of mining on properties owned by the Company partially offset
by lower timber sales.
Developed property rentals segment revenues increased
$2,797,000 or 14.3% in 2013 to
$22,352,000 due to higher occupancy,
revenue on a 117,600 square foot build to suit building completed
and occupied during the period and revenue on the purchase of
Transit Business Park which consists of 5 buildings.
Occupancy at September 30, 2013 was
89.6% as compared to 88.7% at September 30,
2012.
Consolidated operating profit was $20,434,000 in fiscal 2013 compared to
$14,101,000 in 2012, an increase of
44.9%. Operating profit in the transportation segment
increased $1,878,000 or 25.1% due to
incremental profits on increased revenue, lower health insurance
costs 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 $777,000 or 24.0% due to
royalties on a new property purchased in May
2012 along with a shift in production at two locations
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 $3,848,000 or 85.8% primarily due to higher
occupancy, the 117,600 square foot build to suit building completed
and occupied during the period, reduced severance and health
insurance costs, and the $1,771,000
environmental remediation expense recorded in 2012, partially
offset by higher property taxes. Consolidated operating profit
includes corporate expenses not allocated to any segment in the
amount of $1,261,000 in fiscal 2013,
an increase of $170,000 compared to
2012. Consolidated operating profit was $14,101,000 in 2012 compared to $14,369,000 in 2011 a decrease of 1.9%.
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.
Fiscal 2013 includes total gains on investment land sold of
$7,333,000. Income from
continuing operations for the first quarter of fiscal 2013 included
a gain on the sale of the developed property rentals Commonwealth
property in Jacksonville, Florida,
of $1,116,000 before income
taxes. The book value of the property was $723,000. In July
2013 the Company sold 15.18 acres of land at Patriot
Business Park resulting in a gain of $341,000 before income taxes. The book
value of the property was $3,603,000. In August 2013 the Company sold 5.38 acres of land
at Hollander 95 Business Park and recorded a gain before income
taxes of $514,000. The book
value of the property was $595,000. In August
2103 the Company sold phase 1 of the Windlass Run
Residential property and recorded a gain of $4,928,000 before income taxes. The book value of
the property was $2,971,000. In
August 2013 the Company sold 284
acres of Gulf Hammock mining
property and recorded a gain of $433,000 before income taxes. The book
value of the property was $296,000.
Interest expense for fiscal 2013 decreased $118,000 over 2012 due to declining mortgage
interest expense and higher capitalized interest partially offset
by the accelerated prepayment of long-term debt. On
June 3, 2013 the Company prepaid the
$7,281,000 remaining principal
balance on a 6.12% mortgage under an early prepayment provision the
note allowed after 7.5 years. The $561,000 cost of the prepayment included a
penalty of $382,000 and the remaining
deferred loan costs of $175,000. On July
31, 2013 the Company prepaid the $279,000 remaining principal balance on a 7.97%
mortgage. The cost of the prepayment included a penalty of
$7,000. The amount of interest
capitalized on real estate projects under development was
$217,000 higher than the same period
in fiscal 2012 primarily due to resumed development of Patriot
Business Park in April 2012.
The after tax income from discontinued operations was
$97,000 or $.01 per diluted share in fiscal 2012.
Summary, Outlook and Subsequent Events.
Transportation segment miles for this year were 7.3% higher than
last year. The Company's transportation segment acquired
certain assets of Pipeline Transportation, Inc. on November 7, 2013. Pipeline's operations
have been conducted in the Florida and Alabama markets also served by Florida Rock and Tank Lines, Inc. For the
twelve month period ending June 30,
2013, Pipeline had gross revenues of just over $16,500,000.
Developed property rentals occupancy has increased from 88.7% to
89.6% over last fiscal year end as the market for new tenants
continued to improve and traffic for vacant space has
increased. Occupancy at September 30,
2013 and 2012 included 42,606 square feet or 1.3% and 98,993
square feet or 3.4% respectively for temporary space under less
than full market lease rates. The Company resumed development
of Patriot Business Park effective April 1,
2012 due to two developments. In February 2012, the Company signed an agreement to
sell 15.18 acres of land at the site for a purchase price of
$4,774,577 and the sale was completed
in July 2013. The Company also
entered into a build to suit lease signed April 2012, for a 117,600 square foot building
which was completed and occupied during the quarter ending
March 31, 2013. In May 2013, the Company entered into a second build
to suit lease, with the same tenant as the first, for a 125,500
square foot building which is currently under construction.
In June 2013, the Company purchased
Transit Business Park in Baltimore,
Maryland which consists of 5 buildings on 14.5 acres
totaling 232,318 square feet which are 87.9% occupied (including
2.3% for temporary leases and 7.1% for a holdover tenant).
Conference Call. The Company will also host a
conference call on Wednesday afternoon, December 4, 2013 at 2:00
p.m. (EST). Analysts, stockholders and other
interested parties may access the teleconference live by calling
1-800-351-6801 (pass code 56547) within the United States.
International callers may dial 1-334-323-7224 (pass code
56547). 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 72540129. 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)
|
|
|
THREE MONTHS
ENDED
SEPTEMBER
30,
|
|
TWELVE MONTHS
ENDED
SEPTEMBER
30,
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transportation
|
$
|
29,511
|
|
|
|
26,279
|
|
|
|
112,120
|
|
|
|
103,476
|
|
Mining
royalty land
|
|
1,428
|
|
|
|
1,380
|
|
|
|
5,302
|
|
|
|
4,483
|
|
Developed
property rentals
|
|
6,202
|
|
|
|
5,140
|
|
|
|
22,352
|
|
|
|
19,555
|
|
Total
revenues
|
|
37,141
|
|
|
|
32,799
|
|
|
|
139,774
|
|
|
|
127,514
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transportation
|
|
26,982
|
|
|
|
24,322
|
|
|
|
102,766
|
|
|
|
96,000
|
|
Mining
royalty land
|
|
349
|
|
|
|
329
|
|
|
|
1,294
|
|
|
|
1,252
|
|
Developed
property rentals
|
|
4,037
|
|
|
|
5,450
|
|
|
|
14,019
|
|
|
|
15,070
|
|
Unallocated corporate
|
|
125
|
|
|
|
146
|
|
|
|
1,261
|
|
|
|
1,091
|
|
Total cost of
operations
|
|
31,493
|
|
|
|
30,247
|
|
|
|
119,340
|
|
|
|
113,413
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transportation
|
|
2,529
|
|
|
|
1,957
|
|
|
|
9,354
|
|
|
|
7,476
|
|
Mining
royalty land
|
|
1,079
|
|
|
|
1,051
|
|
|
|
4,008
|
|
|
|
3,231
|
|
Developed
property rentals
|
|
2,165
|
|
|
|
(310)
|
|
|
|
8,333
|
|
|
|
4,485
|
|
Unallocated corporate
|
|
(125)
|
|
|
|
(146)
|
|
|
|
(1,261)
|
|
|
|
(1,091)
|
|
Total operating
profit
|
|
5,648
|
|
|
|
2,552
|
|
|
|
20,434
|
|
|
|
14,101
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on termination
of sale contract
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,039
|
|
Gain on investment
land sold
|
|
6,217
|
|
|
|
—
|
|
|
|
7,333
|
|
|
|
—
|
|
Interest income and
other
|
|
1
|
|
|
|
15
|
|
|
|
38
|
|
|
|
26
|
|
Equity in loss of
joint ventures
|
|
(33)
|
|
|
|
—
|
|
|
|
(63)
|
|
|
|
(8)
|
|
Interest
expense
|
|
(375)
|
|
|
|
(503)
|
|
|
|
(2,520)
|
|
|
|
(2,638)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
11,458
|
|
|
|
2,064
|
|
|
|
25,222
|
|
|
|
12,520
|
|
Provision for income
taxes
|
|
(4,469)
|
|
|
|
(793)
|
|
|
|
(9,837)
|
|
|
|
(4,809)
|
|
Income from
continuing operations
|
|
6,989
|
|
|
|
1,271
|
|
|
|
15,385
|
|
|
|
7,711
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
discontinued operations, net
|
|
—
|
|
|
|
86
|
|
|
|
—
|
|
|
|
97
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
$
|
6,989
|
|
|
|
1,357
|
|
|
|
15,385
|
|
|
|
7,808
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
Income
|
$
|
6,989
|
|
|
|
1,357
|
|
|
|
15,385
|
|
|
|
7,808
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
0.73
|
|
|
|
0.14
|
|
|
|
1.62
|
|
|
|
0.82
|
|
Diluted
|
|
0.72
|
|
|
|
0.13
|
|
|
|
1.60
|
|
|
|
0.81
|
|
Discontinued
operations -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.01
|
|
Diluted
|
|
—
|
|
|
|
0.01
|
|
|
|
—
|
|
|
|
0.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income -
basic
|
|
0.73
|
|
|
|
0.14
|
|
|
|
1.62
|
|
|
|
0.83
|
|
Net income -
diluted
|
|
0.72
|
|
|
|
0.14
|
|
|
|
1.60
|
|
|
|
0.82
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of shares
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
used
in computing:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-basic
earnings per common share
|
|
9,557
|
|
|
|
9,414
|
|
|
|
9,523
|
|
|
|
9,360
|
|
-diluted
earnings per common share
|
|
9,648
|
|
|
|
9,519
|
|
|
|
9,605
|
|
|
|
9,474
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE Patriot Transportation Holding, Inc.