JACKSONVILLE, Fla.,
May 4, 2016 /PRNewswire/ --
Fiscal 2016 Second Quarter Consolidated Results of Continuing
Operations.
Income from continuing operations for the second quarter of
fiscal 2016 was $1,820,000 or
$.18 per share versus $845,000 or $.09
per share in the second quarter last year. Total revenues
were up $667,000, or 7.5%, versus the
same quarter last year with total cost of operations down
$683,000, or 10.1%.
Consolidated total operating profit increased by $1,350,000, or 62.5%, to $3,509,000 this quarter.
The Company enjoyed another successful quarter in both of our
income producing segments. Compared to last year's
2nd quarter, our Mining Royalty Lands segment grew
operating profit (excluding the benefit from the
Reallocation1) by 68.9% while our Asset
Management segment grew operating profit by 7.9%.
Second Quarter Segment Operating Results.
Asset Management Segment:
Total revenues in this segment were $7,574,000, up $244,000 or 3.3%, over the same quarter last
year. Net Operating Income in this segment for the 2nd
quarter was $5,442,000, compared to
$5,095,000 in the 2nd quarter last
year, an increase of 6.8%. The increase was mainly due to the
completion of the third build-to-suit at Patriot Business Park in
the middle of the 2nd quarter last year and the
acquisition of the Port Capital building in Baltimore in October of 2015. We ended
this quarter with total occupied square feet of 3,348,112 versus
3,198,200 at the end of the 2nd quarter last year, an
increase of 4.7% or 149,912 square feet.
During the quarter, the Company identified an opportunistic
purchase opportunity and entered into a purchase agreement to buy
the Gilroy Road building located in Hunt
Valley, MD, for a purchase price of $8,850,000. The Gilroy Road building is a
113,386 sq.ft. warehouse that is currently 100% occupied. The
contract is in the feasibility study phase and is subject to
multiple contingencies before the parties are obligated to
close.
Mining Royalty Lands Segment:
Total revenues in this segment were $1,778,000, an increase of 33.2%, versus
$1,335,000 in the same quarter last
year due to an increase in tons shipped. Total operating
profit in this segment was $1,574,000, an increase of $909,000 (inclusive of a $451,000 benefit from the Reallocation), versus
$665,000 in the second quarter of
last year.
Land Development and Construction Segment:
The Land Development and Construction segment is responsible for
(i) seeking out and identifying opportunistic purchases of income
producing warehouse/office buildings, and (ii) developing our
non-income producing properties into income production.
Construction of the 79,550 square foot spec warehouse at Hollander
Business Park will be completed during the third quarter of this
fiscal year and, upon receipt of a Certificate of Occupancy, will
be transferred to the Asset Management segment for lease-up.
During the 2nd quarter, we entered into an agreement
with a substantial Baltimore
development company (St. John Properties, Inc.) to jointly develop
the remaining lands of our Windlass Run Business Park.
The 50/50 partnership initially calls for FRP to combine its
25 acres (valued at $7,500,000) with
St. John Properties' adjacent 10 acres fronting on a major state
highway (valued at $3,239,536)
resulting in an initial cash distribution of $2,130,232 to FRP on or about May, 2016.
Thereafter, the venture will jointly develop the combined
properties into a multi-building business park to consist of
approximately 329,000 square feet of single story office space.
Fiscal 2016 First Six Months Consolidated Results of
Continuing Operations.
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.
For the six months ended March 31,
2016 we received no benefit to after tax net income versus a
$2,179,000 benefit in the same period
last year. Additionally, GAAP accounting rules do not allow
corporate overhead expense to be allocated to a discontinued
operation of the Company which resulted in the first six months of
fiscal 2015 including $1,081,000 of
corporate overhead expense to the Company that was associated with
the discontinued transportation operations.
Income from continuing operations for the first six months of
fiscal 2016 was $9,293,000 or
$.94 per share versus $1,976,000 or $.20
per share in the first six months last year. The first six
months of fiscal 2016 included $.57
per share from a gain on land sale of $6,286,000 and income of $3,000,000 from the settlement of environmental
claims. The first six months of 2015 was negatively impacted
by $.07 per share as a result of
$1,081,000 of corporate costs not
allocable to discontinued operations.
Total revenues were up $1,188,000,
or 6.9%, versus the same period last year.
Consolidated adjusted total operating profit in the first six
months of the year (excluding the positive impacts of the
environmental settlement and the corporate expense not allocable to
discontinued operations in the prior year) was up 27.3% over the
same period last year (see table "Non-GAAP Financial Measures).
First Six Months Segment Operating Results.
Asset Management Segment:
Total revenues in this segment were $14,489,000, up $402,000 or 2.9%, over the same period last year.
Net operating income in this segment for the period was
$10,832,000, compared to $10,453,000 in the 2nd quarter last year, an
increase of 3.6%. The increase was due mainly to completion
of the third build-to-suit in the middle of the 2nd
quarter last year and the acquisition of the Port Capital
building in October of 2015.
Mining Royalty Lands Segment:
Total revenues in this segment were $3,437,000, an increase of 28.3%, versus
$2,679,000 in the same period last
year due to an increase in tons shipped. Total operating
profit in this segment was $3,044,000, an increase of $1,497,000 (inclusive of a $714,000 benefit from the Reallocation), versus
$1,547,000 in the first six months of
last year.
Land Development and Construction Segment:
In addition to the items occurring in the 2nd quarter
outlined above, during the first six months of fiscal 2016 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. 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.
Summary and Outlook. We are focused on building
shareholder value through our real estate holdings - mainly by
growing our portfolio through the opportunistic purchase of income
producing warehouse/office buildings, and the conversion of our
non-income producing assets into income production through a two
pronged approach that includes (i) selling land that is
not conducive to warehouse/office development (e.g. Windlass Run
Residential Phase 2 land) and using the proceeds to acquire
existing income producing warehouse/office buildings typically in a
Section 1031 exchange (e.g. the Port Capital building purchase) and
(ii) the construction of new warehouse/office buildings on existing
pad sites in our developed business parks (e.g. new spec building
at Hollander Business Park). 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 $5,133,000.
We saw another quarter of real improvement in mining royalties
due mainly to increased volumes at most of our locations.
During the quarter, we began the process of designing and
permitting for the construction of a 104,000 sq.ft. spec building
at our Patriot Business Park. Subject to further market
analysis and Board approval, we anticipate construction commencing
in the 3rd quarter of this year with completion in the
4th quarter of next fiscal year. We anticipate
commencing the capital improvement work on the bulkhead at Square
664E in southeast Washington, D.C.
during the 3rd quarter of this fiscal year with an estimated total
cost to complete of $4,200,000 of
which $397,000 has already been
incurred to date. In the event the Company commits to develop
Phase II of the Riverfront on the Anacostia project during this
fiscal year we will likely book a liability for the estimated
incremental cost of remediation similar to what we booked with
regards to Phase I.
The construction of Dock 79 at Riverfront on the Anacostia is on
budget and nearing completion on schedule. As a result,
through our property management agent (Kettler Management,
Inc.) we commenced leasing activities on the residential and
retail units. The initial activity has been positive and we
anticipate our first residential occupancies to begin in August of
this year. For more detail on the units and rental rates at
Dock 79 please visit www.dock79.com.
Conference Call.
The Company will host a conference call on Wednesday, May 4, 2016 at 1:00 p.m. (EDT). Analysts, stockholders and
other interested parties may access the teleconference live by
calling 1-888-207-9997 (pass code 97341) within the United
States. International callers may dial 334-323-7224 (pass
code 97341). 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/FRP050416http://stream.conferenceamerica.com/frp120215.
For the archived audio via the internet, click on the following
link
http://archive.conferenceamerica.com/archivestream/FRP050416.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 28893867. 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.
AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF INCOME
(In thousands except
per share amounts)
(Unaudited)
|
|
|
|
THREE MONTHS
ENDED
|
|
SIX MONTHS
ENDED
|
|
|
MARCH 31,
|
|
MARCH 31,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental
revenue
|
|
$
|
6,089
|
|
|
|
5,879
|
|
|
|
12,116
|
|
|
|
11,747
|
|
Royalty and
rents
|
|
|
1,756
|
|
|
|
1,315
|
|
|
|
3,394
|
|
|
|
2,635
|
|
Revenue –
reimbursements
|
|
|
1,770
|
|
|
|
1,754
|
|
|
|
2,928
|
|
|
|
2,868
|
|
Total
Revenues
|
|
|
9,615
|
|
|
|
8,948
|
|
|
|
18,438
|
|
|
|
17,250
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion
and amortization
|
|
|
1,929
|
|
|
|
1,878
|
|
|
|
3,825
|
|
|
|
3,761
|
|
Operating
expenses
|
|
|
1,531
|
|
|
|
1,755
|
|
|
|
2,504
|
|
|
|
2,669
|
|
Environmental
remediation recovery
|
|
|
—
|
|
|
|
—
|
|
|
|
(3,000)
|
|
|
|
—
|
|
Property
taxes
|
|
|
1,142
|
|
|
|
1,234
|
|
|
|
2,260
|
|
|
|
2,329
|
|
Management company
indirect
|
|
|
496
|
|
|
|
442
|
|
|
|
1,000
|
|
|
|
794
|
|
Corporate expenses
(Note 4 Related Party)
|
|
|
1,008
|
|
|
|
1,480
|
|
|
|
1,740
|
|
|
|
3,193
|
|
Total cost of
operations
|
|
|
6,106
|
|
|
|
6,789
|
|
|
|
8,329
|
|
|
|
12,746
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating
profit
|
|
|
3,509
|
|
|
|
2,159
|
|
|
|
10,109
|
|
|
|
4,504
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
1
|
|
|
|
—
|
|
|
|
2
|
|
|
|
—
|
|
Interest
expense
|
|
|
(415)
|
|
|
|
(620)
|
|
|
|
(896)
|
|
|
|
(1,065)
|
|
Equity in loss of
joint ventures
|
|
|
(86)
|
|
|
|
(150)
|
|
|
|
(140)
|
|
|
|
(180)
|
|
Gain (Loss) on
investment land sold
|
|
|
—
|
|
|
|
(3)
|
|
|
|
6,286
|
|
|
|
(20)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations before income taxes
|
|
|
3,009
|
|
|
|
1,386
|
|
|
|
15,361
|
|
|
|
3,239
|
|
Provision for income
taxes
|
|
|
1,189
|
|
|
|
541
|
|
|
|
6,068
|
|
|
|
1,263
|
|
Income from
continuing operations
|
|
|
1,820
|
|
|
|
845
|
|
|
|
9,293
|
|
|
|
1,976
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain from
discontinued transportation operations, net of taxes
|
|
|
—
|
|
|
|
516
|
|
|
|
—
|
|
|
|
2,179
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
$
|
1,820
|
|
|
|
1,361
|
|
|
|
9,293
|
|
|
|
4,155
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive net
income
|
|
$
|
1,820
|
|
|
|
1,361
|
|
|
|
9,293
|
|
|
|
4,155
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
from continuing operations-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.18
|
|
|
|
0.09
|
|
|
|
0.95
|
|
|
|
0.20
|
|
Diluted
|
|
$
|
0.18
|
|
|
|
0.09
|
|
|
|
0.94
|
|
|
|
0.20
|
|
Discontinued operations-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
—
|
|
|
|
0.05
|
|
|
|
—
|
|
|
|
0.23
|
|
Diluted
|
|
$
|
—
|
|
|
|
0.05
|
|
|
|
—
|
|
|
|
0.22
|
|
Net
Income-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.18
|
|
|
|
0.14
|
|
|
|
0.95
|
|
|
|
0.43
|
|
Diluted
|
|
$
|
0.18
|
|
|
|
0.14
|
|
|
|
0.94
|
|
|
|
0.42
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of shares
(in thousands) used in computing:
|
|
|
|
|
|
|
|
|
|
|
|
-basic earnings per common
share
|
|
|
9,853
|
|
|
|
9,749
|
|
|
|
9,828
|
|
|
|
9,730
|
|
-diluted earnings per common
share
|
|
|
9,893
|
|
|
|
9,818
|
|
|
|
9,873
|
|
|
|
9,813
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Management
Segment:
|
|
|
|
Three months ended
March 31
|
|
|
|
|
(dollars in
thousands)
|
|
2016
|
|
%
|
|
2015
|
|
%
|
|
Change
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental
revenue
|
|
$
|
5,958
|
|
|
|
78.7
|
%
|
|
|
5,755
|
|
|
|
78.5
|
%
|
|
|
203
|
|
|
|
3.5
|
%
|
Revenue-reimbursements
|
|
|
1,616
|
|
|
|
21.3
|
%
|
|
|
1,575
|
|
|
|
21.5
|
%
|
|
|
41
|
|
|
|
2.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
|
|
7,574
|
|
|
|
100.0
|
%
|
|
|
7,330
|
|
|
|
100.0
|
%
|
|
|
244
|
|
|
|
3.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation,
depletion and amortization
|
|
|
1,835
|
|
|
|
24.2
|
%
|
|
|
1,776
|
|
|
|
24.2
|
%
|
|
|
59
|
|
|
|
3.3
|
%
|
Operating
expenses
|
|
|
1,430
|
|
|
|
18.9
|
%
|
|
|
1,526
|
|
|
|
20.8
|
%
|
|
|
(96)
|
|
|
|
-6.3
|
%
|
Property
taxes
|
|
|
662
|
|
|
|
8.7
|
%
|
|
|
696
|
|
|
|
9.5
|
%
|
|
|
(34)
|
|
|
|
-4.9
|
%
|
Management company
indirect
|
|
|
224
|
|
|
|
3.0
|
%
|
|
|
145
|
|
|
|
2.0
|
%
|
|
|
79
|
|
|
|
54.4
|
%
|
Corporate
expense
|
|
|
520
|
|
|
|
6.9
|
%
|
|
|
497
|
|
|
|
6.8
|
%
|
|
|
23
|
|
|
|
4.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
operations
|
|
|
4,671
|
|
|
|
61.7
|
%
|
|
|
4,640
|
|
|
|
63.3
|
%
|
|
|
31
|
|
|
|
0.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
$
|
2,903
|
|
|
|
38.3
|
%
|
|
|
2,690
|
|
|
|
36.7
|
%
|
|
|
213
|
|
|
|
7.9
|
%
|
Mining Royalty Lands
Segment:
|
|
|
|
Three months ended
March 31
|
(dollars in
thousands)
|
|
2016
|
|
%
|
|
2015
|
|
%
|
|
|
|
|
|
|
|
|
|
Royalty and
rents
|
|
$
|
1,756
|
|
|
|
98.8
|
%
|
|
|
1,315
|
|
|
|
98.5
|
%
|
Revenue-reimbursements
|
|
|
22
|
|
|
|
1.2
|
%
|
|
|
20
|
|
|
|
1.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
|
|
1,778
|
|
|
|
100.0
|
%
|
|
|
1,335
|
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation,
depletion and amortization
|
|
|
31
|
|
|
|
1.8
|
%
|
|
|
30
|
|
|
|
2.3
|
%
|
Operating
expenses
|
|
|
39
|
|
|
|
2.2
|
%
|
|
|
59
|
|
|
|
4.4
|
%
|
Property
taxes
|
|
|
59
|
|
|
|
3.3
|
%
|
|
|
55
|
|
|
|
4.1
|
%
|
Corporate
expense
|
|
|
75
|
|
|
|
4.2
|
%
|
|
|
526
|
|
|
|
39.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
operations
|
|
|
204
|
|
|
|
11.5
|
%
|
|
|
670
|
|
|
|
50.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
$
|
1,574
|
|
|
|
88.5
|
%
|
|
|
665
|
|
|
|
49.8
|
%
|
Land Development and
Construction Segment:
|
|
|
|
Three months ended
March 31
|
|
(dollars in
thousands)
|
|
2016
|
|
2015
|
|
Change
|
|
|
|
|
|
|
|
|
|
Rental
revenue
|
|
$
|
131
|
|
|
|
124
|
|
|
|
7
|
|
|
Revenue-reimbursements
|
|
|
132
|
|
|
|
159
|
|
|
|
(27)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
|
|
263
|
|
|
|
283
|
|
|
|
(20)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation,
depletion and amortization
|
|
|
63
|
|
|
|
72
|
|
|
|
(9)
|
|
|
Operating
expenses
|
|
|
62
|
|
|
|
170
|
|
|
|
(108)
|
|
|
Property
taxes
|
|
|
421
|
|
|
|
484
|
|
|
|
(63)
|
|
|
Management company
indirect
|
|
|
272
|
|
|
|
296
|
|
|
|
(24)
|
|
|
Corporate
expense
|
|
|
413
|
|
|
|
295
|
|
|
|
118
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
operations
|
|
|
1,231
|
|
|
|
1,317
|
|
|
|
(86)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
loss
|
|
$
|
(968)
|
|
|
|
(1,034)
|
|
|
|
66
|
|
|
Asset Management
Segment:
|
|
|
|
Six months ended
March 31
|
|
|
|
|
(dollars in
thousands)
|
|
2016
|
|
%
|
|
2015
|
|
%
|
|
Change
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental
revenue
|
|
$
|
11,866
|
|
|
|
81.9
|
%
|
|
|
11,499
|
|
|
|
81.6
|
%
|
|
|
367
|
|
|
|
3.2
|
%
|
Revenue-reimbursements
|
|
|
2,623
|
|
|
|
18.1
|
%
|
|
|
2,588
|
|
|
|
18.4
|
%
|
|
|
35
|
|
|
|
1.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
|
|
14,489
|
|
|
|
100.0
|
%
|
|
|
14,087
|
|
|
|
100.0
|
%
|
|
|
402
|
|
|
|
2.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation,
depletion and amortization
|
|
|
3,633
|
|
|
|
25.1
|
%
|
|
|
3,562
|
|
|
|
25.3
|
%
|
|
|
71
|
|
|
|
2.0
|
%
|
Operating
expenses
|
|
|
2,269
|
|
|
|
15.7
|
%
|
|
|
2,201
|
|
|
|
15.7
|
%
|
|
|
68
|
|
|
|
3.1
|
%
|
Property
taxes
|
|
|
1,321
|
|
|
|
9.1
|
%
|
|
|
1,452
|
|
|
|
10.3
|
%
|
|
|
(131)
|
|
|
|
-9.0
|
%
|
Management company
indirect
|
|
|
455
|
|
|
|
3.1
|
%
|
|
|
299
|
|
|
|
2.1
|
%
|
|
|
156
|
|
|
|
52.2
|
%
|
Corporate
expense
|
|
|
898
|
|
|
|
6.2
|
%
|
|
|
797
|
|
|
|
5.6
|
%
|
|
|
101
|
|
|
|
12.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
operations
|
|
|
8,576
|
|
|
|
59.2
|
%
|
|
|
8,311
|
|
|
|
59.0
|
%
|
|
|
265
|
|
|
|
3.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
$
|
5,913
|
|
|
|
40.8
|
%
|
|
|
5,776
|
|
|
|
41.0
|
%
|
|
|
137
|
|
|
|
2.4
|
%
|
Mining Royalty Lands
Segment:
|
|
|
|
Six months ended
March 31
|
(dollars in
thousands)
|
|
2016
|
|
%
|
|
2015
|
|
%
|
|
|
|
|
|
|
|
|
|
Royalty and
rents
|
|
$
|
3,394
|
|
|
|
98.7
|
%
|
|
|
2,635
|
|
|
|
98.4
|
%
|
Revenue-reimbursements
|
|
|
43
|
|
|
|
1.3
|
%
|
|
|
44
|
|
|
|
1.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
|
|
3,437
|
|
|
|
100.0
|
%
|
|
|
2,679
|
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation,
depletion and amortization
|
|
|
65
|
|
|
|
1.9
|
%
|
|
|
61
|
|
|
|
2.3
|
%
|
Operating
expenses
|
|
|
80
|
|
|
|
2.3
|
%
|
|
|
114
|
|
|
|
4.3
|
%
|
Property
taxes
|
|
|
118
|
|
|
|
3.4
|
%
|
|
|
113
|
|
|
|
4.2
|
%
|
Corporate
expense
|
|
|
130
|
|
|
|
3.8
|
%
|
|
|
844
|
|
|
|
31.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
operations
|
|
|
393
|
|
|
|
11.4
|
%
|
|
|
1,132
|
|
|
|
42.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
$
|
3,044
|
|
|
|
88.6
|
%
|
|
|
1,547
|
|
|
|
57.7
|
%
|
Land Development and
Construction Segment:
|
|
|
|
Six months ended
March 31
|
|
(dollars in
thousands)
|
|
2016
|
|
2015
|
|
Change
|
|
|
|
|
|
|
|
|
|
Rental
revenue
|
|
$
|
250
|
|
|
|
248
|
|
|
|
2
|
|
|
Revenue-reimbursements
|
|
|
262
|
|
|
|
236
|
|
|
|
26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
|
|
512
|
|
|
|
484
|
|
|
|
28
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation,
depletion and amortization
|
|
|
127
|
|
|
|
138
|
|
|
|
(11)
|
|
|
Operating
expenses
|
|
|
155
|
|
|
|
354
|
|
|
|
(199)
|
|
|
Environmental
remediation recovery
|
|
|
(3,000)
|
|
|
|
—
|
|
|
|
(3,000)
|
|
|
Property
taxes
|
|
|
821
|
|
|
|
764
|
|
|
|
57
|
|
|
Management company
indirect
|
|
|
545
|
|
|
|
495
|
|
|
|
50
|
|
|
Corporate
expense
|
|
|
712
|
|
|
|
471
|
|
|
|
241
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
operations
|
|
|
(640)
|
|
|
|
2,222
|
|
|
|
(2,862)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
loss
|
|
$
|
1,152
|
|
|
|
(1,738)
|
|
|
|
2,890
|
|
|
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
|
|
Six months
ended
|
|
|
|
|
|
|
|
March 31,
|
|
|
|
|
|
|
|
2016
|
|
2015
|
|
Change
|
|
%
|
|
Operating
profit
|
|
$
|
10,109
|
|
|
|
4,504
|
|
|
|
5,605
|
|
|
|
124.4
|
%
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Environmental remediation
recovery
|
|
|
(3,000)
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
Corporate
costs not allocated to discontinued operations
|
|
|
—
|
|
|
|
1,081
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating
profit
|
|
$
|
7,109
|
|
|
|
5,585
|
|
|
|
1,524
|
|
|
|
27.3
|
%
|
|
|
Net Operating Income
Reconciliation
|
Three months ending
03/31/16 (in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset
|
|
|
Land
|
|
|
Mining
|
|
|
Unallocated
|
|
|
FRP
|
|
|
|
Management
|
|
|
Development
|
|
|
Royalties
|
|
|
Corporate
|
|
|
Holdings
|
|
|
|
Segment
|
|
|
Segment
|
|
|
Segment
|
|
|
Expenses
|
|
|
Totals
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
$ 1,505
|
|
|
(631)
|
|
|
946
|
|
|
—
|
|
|
1,820
|
|
|
Income Tax
Allocation
|
983
|
|
|
(410)
|
|
|
616
|
|
|
—
|
|
|
1,189
|
|
|
Inc. from continuing
operations before income taxes
|
2,488
|
|
|
(1,041)
|
|
|
1,562
|
|
|
—
|
|
|
3,009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gains on
investment land sold
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
Other
income
|
—
|
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized
rents
|
36
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
Lease
intangible rents
|
4
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
Plus:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in loss
of Joint Venture
|
—
|
|
|
75
|
|
|
|
|
|
|
|
|
|
|
|
Interest
Expense
|
415
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation/Amortization
|
1,835
|
|
|
63
|
|
|
|
|
|
|
|
|
|
|
|
Management Co.
Indirect
|
224
|
|
|
272
|
|
|
|
|
|
|
|
|
|
|
|
Allocated
Corporate Expenses
|
520
|
|
|
413
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Operating Income
(loss)
|
$ 5,442
|
|
|
(219)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Operating Income
Reconciliation
|
Six months ending
03/31/16 (in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset
|
|
|
Land
|
|
|
Mining
|
|
|
Unallocated
|
|
|
FRP
|
|
|
|
Management
|
|
|
Development
|
|
|
Royalties
|
|
|
Corporate
|
|
|
Holdings
|
|
|
|
Segment
|
|
|
Segment
|
|
|
Segment
|
|
|
Expenses
|
|
|
Totals
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
$ 3,040
|
|
|
4,423
|
|
|
1,830
|
|
|
—
|
|
|
9,293
|
|
|
Income Tax
Allocation
|
1,986
|
|
|
2,888
|
|
|
1,194
|
|
|
—
|
|
|
6,068
|
|
|
Inc. from continuing
operations before income taxes
|
5,026
|
|
|
7,311
|
|
|
3,024
|
|
|
—
|
|
|
15,361
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gains on
investment land sold
|
9
|
|
|
6,277
|
|
|
|
|
|
|
|
|
|
|
|
Other
income
|
—
|
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized
rents
|
49
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
Lease
intangible rents
|
18
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
Plus:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in loss
of Joint Venture
|
—
|
|
|
120
|
|
|
|
|
|
|
|
|
|
|
|
Interest
Expense
|
896
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation/Amortization
|
3,633
|
|
|
127
|
|
|
|
|
|
|
|
|
|
|
|
Management Co.
Indirect
|
455
|
|
|
545
|
|
|
|
|
|
|
|
|
|
|
|
Allocated
Corporate Expenses
|
898
|
|
|
712
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Operating
Income
|
$ 10,832
|
|
|
2,536
|
|
|
|
|
|
|
|
|
|
|
|
Net Operating Income
Reconciliation
|
Three months ending
03/31/15 (in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset
|
|
|
Land
|
|
|
Mining
|
|
|
Unallocated
|
|
|
FRP
|
|
|
|
Management
|
|
|
Development
|
|
|
Royalties
|
|
|
Corporate
|
|
|
Holdings
|
|
|
|
Segment
|
|
|
Segment
|
|
|
Segment
|
|
|
Expenses
|
|
|
Totals
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
$ 1,257
|
|
|
(706)
|
|
|
393
|
|
|
(99)
|
|
|
845
|
|
|
Income Tax
Allocation
|
803
|
|
|
(451)
|
|
|
252
|
|
|
(63)
|
|
|
541
|
|
|
Inc. from continuing
operations before income taxes
|
2,060
|
|
|
(1,157)
|
|
|
645
|
|
|
(162)
|
|
|
1,386
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gains on
investment land sold
|
—
|
|
|
17
|
|
|
|
|
|
|
|
|
|
|
|
Lease
intangible rents
|
13
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized
rents
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
Plus:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on
investment land sold
|
20
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
Equity in loss
of Joint Venture
|
—
|
|
|
140
|
|
|
|
|
|
|
|
|
|
|
|
Interest
Expense
|
610
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation/Amortization
|
1,776
|
|
|
72
|
|
|
|
|
|
|
|
|
|
|
|
Management Co.
Indirect
|
145
|
|
|
296
|
|
|
|
|
|
|
|
|
|
|
|
Allocated
Corporate Expenses
|
497
|
|
|
295
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Operating Income
(loss)
|
$ 5,095
|
|
|
(371)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Operating Income
Reconciliation
|
Six months ending
03/31/15 (in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset
|
|
|
Land
|
|
|
Mining
|
|
|
Unallocated
|
|
|
FRP
|
|
|
|
Management
|
|
|
Development
|
|
|
Royalties
|
|
|
Corporate
|
|
|
Holdings
|
|
|
|
Segment
|
|
|
Segment
|
|
|
Segment
|
|
|
Expenses
|
|
|
Totals
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
$ 2,892
|
|
|
(1,158)
|
|
|
901
|
|
|
(659)
|
|
|
1,976
|
|
|
Income Tax
Allocation
|
1,849
|
|
|
(742)
|
|
|
578
|
|
|
(422)
|
|
|
1,263
|
|
|
Inc. from continuing
operations before income taxes
|
4,741
|
|
|
(1,900)
|
|
|
1,479
|
|
|
(1,081)
|
|
|
3,239
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease
intangible rents
|
25
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
Plus:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on
investment land sold
|
20
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized
rents
|
44
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
Equity in loss
of Joint Venture
|
—
|
|
|
162
|
|
|
|
|
|
|
|
|
|
|
|
Interest
Expense
|
1,015
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation/Amortization
|
3,562
|
|
|
138
|
|
|
|
|
|
|
|
|
|
|
|
Management Co.
Indirect
|
299
|
|
|
495
|
|
|
|
|
|
|
|
|
|
|
|
Allocated
Corporate Expenses
|
797
|
|
|
471
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Operating
Income
|
$ 10,453
|
|
|
(634)
|
|
|
|
|
|
|
|
|
|
|
|
1
|
During fiscal 2015,
management analyzed the amount of corporate and management company
time likely to be spent on our segments going forward and, as a
result, the allocation of corporate expense to the Mining Royalty
Lands segment was reduced and reallocated to our other two segments
(the "Reallocation").
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/frp-holdings-inc-nasdaq-frph-announces-results-for-the-second-quarter-of-fiscal-2016-300262697.html
SOURCE FRP Holdings, Inc.