JACKSONVILLE, Fla.,
Feb. 3, 2016 /PRNewswire/ --
Fiscal 2016 First Quarter Consolidated Results of Continuing
Operations.
Income from continuing operations for the first quarter of
fiscal 2016 was $7,473,000 or
$.76 per share versus $1,131,000 or $.12
per share in the first quarter last year. This first quarter
of fiscal 2016 benefited from a gain on land sale of $6,286,000 plus income of $3,000,000 from the settlement of environmental
claims resulting in a positive impact of $.57 per share of income from continuing
operations. Total revenues were up $521,000, or 6.3%, versus the same quarter last
year. Excluding the positive impact of the environmental
settlement this quarter ($3 million)
and the negative impact of corporate costs not allocated to
discontinued operations in the first quarter last year ($919,000), consolidated total operating profit
was up 10.3%.
First Quarter Segment Operating Results.
Mining Royalty Lands Segment:
Total revenues in this segment were $1,659,000, an increase of 23.4%, versus
$1,344,000 in the same quarter last
year as total tons mined at our locations increased by 29.0%.
Total operating profit in this segment was $1,470,000, an increase of 66.7%, versus
$882,000 in the first quarter of last
year. Management periodically analyzes the amount of
corporate and management company time spent on each segment and in
the most recent analysis it was determined that less time was being
spent on the mining segment versus prior years when management was
working on mining related transactions, such as the Lake Louisa
acquisition, and the spin-off, which benefited all segments of the
business. As a result, the allocation of corporate expense to
this segment was reduced and reallocated to our other two segments
resulting in $263,000 less corporate
expense in this quarter versus the same quarter last year.
Land Development and Construction Segment:
The Land Development and Construction segment is responsible for
managing and developing our non-income producing properties into
income production. In this quarter, this segment successfully
closed on the sale of Phase II of the Windlass Run residential land
(a non-income producing property) for $11,288,000. Using $9,900,000 of the proceeds from that sale in a
Section 1031 exchange, the Asset Management segment acquired the
Port Capital building, a 91,218 square foot, 100% occupied,
warehouse with first full year projected rental revenue of
$594,000. In addition,
construction of the 80,000 square foot spec warehouse at Hollander
Business park will be completed during the second quarter of this
fiscal year and, upon receipt of a Certificate of Occupancy, will
be transferred to the Asset Management segment for lease-up.
Lastly, management successfully completed negotiations and entered
into a $3,000,000 settlement of
environmental claims against our former tenant at the Riverfront on
the Anacostia property and continues to pursue settlement
negotiations with other potentially responsible parties.
Management anticipates committing to develop Phase II of the
Riverfront on the Anacostia project during this fiscal year at
which time we will likely book a liability for the estimated
incremental cost of remediation similar to what we booked with
regards to Phase I.
Revenues for this segment were up $48,000 over last year's first quarter due to
higher real estate tax reimbursement from the ground lease at our
Square 664E property in D.C. Costs of operating this segment
(excluding the $3,000,000 positive
benefit from the environmental settlement at Anacostia) were up
$224,000 in the quarter driven
primarily by higher property taxes at our Anacostia Phases II-IV
property and the reallocation of corporate expenses from the Mining
Royalty Lands segment.
Asset Management Segment:
Total revenues in this segment were $6,915,000, up $158,000 or 2.3%, over the same quarter last
year. The increase was due mainly to completion of the third
build-to-suit in the middle of the same quarter last year and the
acquisition of the Port Capital building in October offset by the
lack of revenues ($138,000) from a
building that was vacated in January
2015 as a result of the tenant outgrowing the space.
Cost of operations increased $234,000
due mainly to the reallocation of corporate expenses from the
Mining Royalty Lands segment and an increase in operating expenses
due primarily to transaction specific fees and costs (e.g. the 1031
exchange) partially offset by a reduction of $98,000 in property taxes due mainly to a
successful appeal of taxes on the three build-to-suit buildings at
our Patriot Business Park.
Summary and Outlook. We are focused on building
shareholder value through our real estate holdings - mainly by
growing our portfolio through the conversion of our non-income
producing assets into income production. This strategy is two
pronged in that we (i) sell land that is not conducive to
warehouse/office development and use the proceeds to acquire
existing income producing warehouse/office buildings (typically in
a Section 1031 exchange) and (ii) construct new warehouse/office
buildings on existing pad sites in our developed business
parks. Over the past five years, we have converted 172 acres
of non-income producing land into 766,216 square feet of income
producing properties with estimated FY 2016 rental revenues of
$5,115,000. We saw another
quarter of real improvement in mining royalties due mainly to
increased volumes at most of our locations and, barring another
major economic downturn in the US, we are confident that trend will
continue for the foreseeable future.
During the remainder of fiscal 2016, we expect to spend
approximately $4 million on the
construction of a new bulk head at the Square 664E property in
anticipation of future high-rise development and continue working
with our JV partner, MRP, to complete the construction of Phase I
of Riverfront on the Anacostia (now named Dock 79) and to continue
planning for the commencement of Phase II.
Conference Call.
The Company will host a conference call on Wednesday, February 3, 2016 at 1:00 p.m. (EST). Analysts, stockholders and
other interested parties may access the teleconference live by
calling 1-800-973-1544 (pass code 68134) within the United
States. International callers may dial 334-323-7224 (pass
code 68134). Computer audio live streaming is available via
the Internet through the Company's website at
www.frpholdings.com. You may also click on this link for the
live streaming http://stream.conferenceamerica.com/frp020316. For
the archived audio via the internet, click on the following link
http://archive.conferenceamerica.com/archivestream/frp020316.mp3.
If using the Company's website, click on the Investor Relations
tab, then select the earnings conference stream. 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 334-323-0140. The passcode of the
audio replay is 51125827. 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.
FRP HOLDINGS,
INC. CONSOLIDATED STATEMENTS OF INCOME (In
thousands except per share amounts)
(Unaudited)
|
|
|
|
|
|
|
THREE MONTHS
ENDED
|
|
|
|
DECEMBER
31,
|
|
|
|
2015
|
|
2014
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
Rental
revenue
|
|
$
|
6,027
|
|
|
|
5,868
|
|
|
Royalty and
rents
|
|
|
1,638
|
|
|
|
1,320
|
|
|
Revenue –
reimbursements
|
|
|
1,158
|
|
|
|
1,114
|
|
|
Total
Revenues
|
|
|
8,823
|
|
|
|
8,302
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
operations:
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion
and amortization
|
|
|
1,896
|
|
|
|
1,883
|
|
|
Operating
expenses
|
|
|
973
|
|
|
|
914
|
|
|
Environmental remediation
recovery
|
|
|
(3,000)
|
|
|
|
—
|
|
|
Property
taxes
|
|
|
1,118
|
|
|
|
1,095
|
|
|
Management company
indirect
|
|
|
504
|
|
|
|
352
|
|
|
Corporate
expenses
|
|
|
732
|
|
|
|
1,713
|
|
|
Total cost of
operations
|
|
|
2,223
|
|
|
|
5,957
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating
profit
|
|
|
6,600
|
|
|
|
2,345
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
1
|
|
|
|
—
|
|
|
Interest
expense
|
|
|
(481)
|
|
|
|
(445)
|
|
|
Equity in loss of
joint ventures
|
|
|
(54)
|
|
|
|
(30)
|
|
|
Gain (Loss) on
investment land sold
|
|
|
6,286
|
|
|
|
(17)
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations before income taxes
|
|
|
12,352
|
|
|
|
1,853
|
|
|
Provision for income
taxes
|
|
|
4,879
|
|
|
|
722
|
|
|
Income from
continuing operations
|
|
|
7,473
|
|
|
|
1,131
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain from
discontinued transportation operations, net of taxes
|
|
|
—
|
|
|
|
1,663
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
$
|
7,473
|
|
|
|
2,794
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive net
income
|
|
$
|
7,473
|
|
|
|
2,794
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
common share:
|
|
|
|
|
|
|
|
|
|
Income
from continuing operations-
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.76
|
|
|
|
0.12
|
|
|
Diluted
|
|
$
|
0.76
|
|
|
|
0.12
|
|
|
Discontinued operations-
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.00
|
|
|
|
0.17
|
|
|
Diluted
|
|
$
|
0.00
|
|
|
|
0.17
|
|
|
Net
Income-
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.76
|
|
|
|
0.29
|
|
|
Diluted
|
|
$
|
0.76
|
|
|
|
0.29
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of shares
(in thousands) used in computing:
|
|
|
|
|
|
|
|
|
|
-basic earnings per common
share
|
|
|
9,802
|
|
|
|
9,711
|
|
|
-diluted earnings per common
share
|
|
|
9,853
|
|
|
|
9,771
|
|
|
Asset Management Segment Results
|
|
Three months ended
December 31
|
|
|
|
|
(dollars in
thousands)
|
|
2015
|
|
%
|
|
2014
|
|
%
|
|
Change
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental
revenue
|
|
$
|
5,908
|
|
|
|
85.4
|
%
|
|
|
5,744
|
|
|
|
85.0
|
%
|
|
|
164
|
|
|
|
2.9
|
%
|
Revenue-reimbursements
|
|
|
1,007
|
|
|
|
14.6
|
%
|
|
|
1,013
|
|
|
|
15.0
|
%
|
|
|
(6)
|
|
|
|
-0.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
|
|
6,915
|
|
|
|
100.0
|
%
|
|
|
6,757
|
|
|
|
100.0
|
%
|
|
|
158
|
|
|
|
2.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation,
depletion and amortization
|
|
|
1,798
|
|
|
|
26.0
|
%
|
|
|
1,786
|
|
|
|
26.4
|
%
|
|
|
12
|
|
|
|
0.7
|
%
|
Operating
expenses
|
|
|
839
|
|
|
|
12.1
|
%
|
|
|
675
|
|
|
|
10.0
|
%
|
|
|
164
|
|
|
|
24.3
|
%
|
Property
taxes
|
|
|
659
|
|
|
|
9.5
|
%
|
|
|
757
|
|
|
|
11.2
|
%
|
|
|
(98)
|
|
|
|
-12.9
|
%
|
Management company
indirect
|
|
|
231
|
|
|
|
3.4
|
%
|
|
|
153
|
|
|
|
2.3
|
%
|
|
|
78
|
|
|
|
51.0
|
%
|
Corporate
expense
|
|
|
378
|
|
|
|
5.5
|
%
|
|
|
300
|
|
|
|
4.4
|
%
|
|
|
78
|
|
|
|
26.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
operations
|
|
|
3,905
|
|
|
|
56.5
|
%
|
|
|
3,671
|
|
|
|
54.3
|
%
|
|
|
234
|
|
|
|
6.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
$
|
3,010
|
|
|
|
43.5
|
%
|
|
|
3,086
|
|
|
|
45.7
|
%
|
|
|
(76)
|
|
|
|
-2.5
|
%
|
Mining Royalty Land Results
|
|
Three months ended
December 31
|
(dollars in
thousands)
|
|
2015
|
|
%
|
|
2014
|
|
%
|
|
|
|
|
|
|
|
|
|
Royalty and
rents
|
|
$
|
1,638
|
|
|
|
98.7
|
%
|
|
|
1,320
|
|
|
|
98.2
|
%
|
Revenue-reimbursements
|
|
|
21
|
|
|
|
1.3
|
%
|
|
|
24
|
|
|
|
1.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
|
|
1,659
|
|
|
|
100.0
|
%
|
|
|
1,344
|
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation,
depletion and amortization
|
|
|
34
|
|
|
|
2.0
|
%
|
|
|
31
|
|
|
|
2.3
|
%
|
Operating
expenses
|
|
|
41
|
|
|
|
2.5
|
%
|
|
|
55
|
|
|
|
4.1
|
%
|
Property
taxes
|
|
|
59
|
|
|
|
3.6
|
%
|
|
|
58
|
|
|
|
4.3
|
%
|
Corporate
expense
|
|
|
55
|
|
|
|
3.3
|
%
|
|
|
318
|
|
|
|
23.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
operations
|
|
|
189
|
|
|
|
11.4
|
%
|
|
|
462
|
|
|
|
34.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
$
|
1,470
|
|
|
|
88.6
|
%
|
|
$
|
882
|
|
|
|
65.6
|
%
|
Land Development and Construction Segment Results
|
|
Three months ended
December 31
|
|
(dollars in
thousands)
|
|
2015
|
|
2014
|
|
Change
|
|
|
|
|
|
|
|
|
|
Rental
revenue
|
|
$
|
119
|
|
|
|
124
|
|
|
|
(5)
|
|
|
Revenue-reimbursements
|
|
|
130
|
|
|
|
77
|
|
|
|
53
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
|
|
249
|
|
|
|
201
|
|
|
|
48
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation,
depletion and amortization
|
|
|
64
|
|
|
|
66
|
|
|
|
(2)
|
|
|
Operating
expenses
|
|
|
93
|
|
|
|
184
|
|
|
|
(91)
|
|
|
Environmental
remediation recovery
|
|
|
(3,000)
|
|
|
|
—
|
|
|
|
(3,000)
|
|
|
Property
taxes
|
|
|
400
|
|
|
|
280
|
|
|
|
120
|
|
|
Management company
indirect
|
|
|
273
|
|
|
|
199
|
|
|
|
74
|
|
|
Corporate
expense
|
|
|
299
|
|
|
|
176
|
|
|
|
123
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
operations
|
|
|
(1,871)
|
|
|
|
905
|
|
|
|
(2,776)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
loss
|
|
$
|
2,120
|
|
|
|
(704)
|
|
|
|
2,824
|
|
|
Non-GAAP Financial Measures.
To supplement the financial results presented in accordance with
GAAP, FRP presents certain non-GAAP financial measures within the
meaning of Regulation G promulgated by the Securities and Exchange
Commission. The non-GAAP financial measures included in this press
release are adjusted operating profit and net operating income
(NOI). FRP uses these non-GAAP financial measures to analyze its
continuing operations and to monitor, assess, and identify
meaningful trends in its operating and financial performance. These
measures are not, and should not be viewed as, substitutes for GAAP
financial measures.
Post Spin-off we are reporting any net gain/(loss) from the
transportation business as "discontinued operations" and we
currently have no other discontinued operations being
reported. GAAP accounting rules do not allow corporate
overhead expenses to be allocated to a discontinued operation of
the Company; thus, those corporate expenses attributable to the
transportation business prior to the spin-off are charged to the
Company as part of continuing operations.
Adjusted Operating Profit
Adjusted operating profit excludes the impact of the corporate
expense not allocated to discontinued operations and the
environmental remediation recovery. Adjusted operating profit is
presented to provide additional perspective on underlying trends in
FRP's core operating results. A reconciliation between operating
profit and adjusted operating profit is as follows:
Adjusted
Operating Profit
|
|
Three months
ended
|
|
|
|
|
|
|
December
31,
|
|
|
|
|
|
|
2015
|
|
2014
|
|
Change
|
|
%
|
Operating
profit
|
|
$
|
6,600
|
|
|
|
2,345
|
|
|
|
4,255
|
|
|
|
181.4
|
%
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Environmental remediation
recovery
|
|
|
(3,000)
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
Corporate
costs not allocated
to
discontinued operations
|
|
|
—
|
|
|
|
919
|
|
|
|
|
|
|
|
|
|
Adjusted Operating
profit
|
|
$
|
3,600
|
|
|
|
3,264
|
|
|
|
336
|
|
|
|
10.3
|
%
|
Net Operating Income
Reconciliation
|
Year Ended 12/31/15
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset
|
|
|
Land
|
|
|
Mining
|
|
|
Unallocated
|
|
|
FRP
|
|
|
|
Management
|
|
|
Development
|
|
|
Royalties
|
|
|
Corporate
|
|
|
Holdings
|
|
|
|
Segment
|
|
|
Segment
|
|
|
Segment
|
|
|
Expenses
|
|
|
Totals
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
$ 1,535
|
|
|
5,054
|
|
|
884
|
|
|
—
|
|
|
7,473
|
|
|
Income Tax
Allocation
|
1,003
|
|
|
3,298
|
|
|
578
|
|
|
—
|
|
|
4,879
|
|
|
Inc. from continuing
operations before income taxes
|
2,538
|
|
|
8,352
|
|
|
1,462
|
|
|
—
|
|
|
12,352
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gains on
investment land sold
|
9
|
|
|
6,277
|
|
|
|
|
|
|
|
|
|
|
|
Other
income
|
—
|
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized
rents
|
13
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
Lease
intangible rents
|
14
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
Plus:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in loss
of Joint Venture
|
—
|
|
|
45
|
|
|
|
|
|
|
|
|
|
|
|
Interest
Expense
|
481
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation/Amortization
|
1,798
|
|
|
64
|
|
|
|
|
|
|
|
|
|
|
|
Management Co.
Indirect
|
231
|
|
|
273
|
|
|
|
|
|
|
|
|
|
|
|
Allocated
Corporate Expenses
|
378
|
|
|
299
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Operating Income
(loss)
|
$ 5,390
|
|
|
2,755
|
|
|
|
|
|
|
|
|
|
|
|
Net Operating Income
Reconciliation
|
Year ended 12/31/14
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset
|
|
|
Land
|
|
|
Mining
|
|
|
Unallocated
|
|
|
FRP
|
|
|
|
Management
|
|
|
Development
|
|
|
Royalties
|
|
|
Corporate
|
|
|
Holdings
|
|
|
|
Segment
|
|
|
Segment
|
|
|
Segment
|
|
|
Expenses
|
|
|
Totals
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
$ 1,635
|
|
|
(452)
|
|
|
509
|
|
|
(561)
|
|
|
1,131
|
|
|
Income Tax
Allocation
|
1,046
|
|
|
(291)
|
|
|
325
|
|
|
(358)
|
|
|
722
|
|
|
Inc. from continuing
operations before income taxes
|
2,681
|
|
|
(743)
|
|
|
834
|
|
|
(919)
|
|
|
1,853
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease
intangible rents
|
12
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
Plus:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on
investment land sold
|
—
|
|
|
17
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized
rents
|
45
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
Equity in loss
of Joint Venture
|
—
|
|
|
22
|
|
|
|
|
|
|
|
|
|
|
|
Interest
Expense
|
405
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation/Amortization
|
1,786
|
|
|
66
|
|
|
|
|
|
|
|
|
|
|
|
Management Co.
Indirect
|
153
|
|
|
199
|
|
|
|
|
|
|
|
|
|
|
|
Allocated
Corporate Expenses
|
300
|
|
|
176
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Operating Income
(loss)
|
$ 5,358
|
|
|
(263)
|
|
|
|
|
|
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/frp-holdings-inc-nasdaq-frph-announces-results-for-the-first-quarter-of-fiscal-2016-300214510.html
SOURCE FRP Holdings, Inc.