Patriot Transportation Holding, Inc.

Press Releases

Media Kit

Stock Information

PATRIOT TRANSPORTATION HOLDING, INC. ANNOUNCES OPERATING RESULTS FOR THE THIRD QUARTER AND NINE MONTHS OF FISCAL 2001.

Jacksonville, Florida; August 1, 2001 -- Patriot Transportation Holding, Inc. (NASDAQ-PATR) Patriot Transportation Holding, Inc. (NASDAQ-PATR) reported net income of $1,157,000 or $.37 per diluted share for its third fiscal quarter ended June 30, 2001, as compared to $865,000 or $.26 per diluted share for the third quarter of last year. Net income for the nine months ended June 30, 2001 was $4,036,000 or $1.28 per diluted share as compared to $1,914,000 or $.57 per diluted share for the nine months of last year.

Third Quarter Operating Results. Consolidated revenues for the third fiscal quarter ending June 30, 2001, increased 30.5% to $31,652,000 from $24,258,000 in the same quarter last year. Transportation revenues for the quarter increased 24.8% to $26,579,000 from $21,303,000 in the same quarter last year as a result of a 20.4% increase in miles hauled and a modest increase in pricing over the same quarter last year. The Company’s third-party agent/owner-operator subsidiary, Patriot Transportation, Inc., accounted for 84.2% of the increase in miles hauled. Real estate revenues for the third quarter of fiscal 2001 were $5,073,000, an increase of $2,118,000 from the same quarter last year. Primary components of this increase were: property sales of $1,250,000; a $376,000 increase in rental income from developed properties due to price increases and more space being leased; and higher royalties due to increased mining. ` Consolidated gross profit for the third fiscal quarter of 2001 increased from the same quarter last year by $553,000 to $5,238,000. The transportation group’s gross profit for the third quarter of fiscal 2001 was $2,257,000, a decrease of $667,000 or 22.8% over the same quarter last year. This decrease was primarily attributed to higher liability and health insurance costs and losses due to accidents. These increased costs were partially offset by an increase in miles hauled and improved margins due to price increases and improved fuel surcharges in the tank line business. The real estate group’s gross profit improved 69.3% from the same quarter last year to $2,981,000 primarily as a result of gross profit from property sales of $732,000, increased royalties from the mining properties and increased rental income.

Selling, general and administrative expense for the third fiscal quarter increased 5.5% to $2,462,000. A continuing adverse economic climate dictated an additional $100,000 provision for uncollectible accounts receivable in the transportation group. The balance of the increase was primarily due to additional administrative support for the start-up of the third-party transportation subsidiary and costs associated with establishing in-house information technology resources. Administrative expense as a percent of consolidated revenues, excluding property sales, was 8.1% compared to 9.6% in the same quarter last year.

Net interest expense decreased 10% to $846,000 from $940,000 in the same quarter last year due to lower average interest rates partially offset by additional borrowings in the real estate group. Net income increased to $1,157,000 or $.37 per diluted share in the third quarter from $865,000 or $.26 per diluted share in the same quarter last year.

Nine Months Operating Results. Consolidated revenues for the nine months ended June 30, 2001 were $93,744,000 reflecting an increase of 42.1% over the $65,974,000 reported for the first nine months of last year. Revenues for the nine months of this year include $3,978,000 of property sales versus $315,000 last year. Gross profit improved 47% to $17,798,000 from $12,111,000. Administrative expenses increased $1,985,000 and net interest expense decreased $107,000 compared to the nine months of last year. Net income was $4,036,000 or $1.28 per diluted share for the nine months of this year compared to $1,914,000 or $.57 per diluted share for the nine months of last year. The improved results of operations were due primarily to the property gains, increased rental income and additional royalties in the real estate group. The improved results of operations in the real estate group were partially offset by reduced margins and increased administrative costs in the transportation group primarily related to the Company’s third-party agent/owner-operator subsidiary. For the nine months of fiscal 2001, the transportation group has been hindered by an adverse economic climate which dictated additional provisions of $700,000 for uncollectible accounts receivable and advances, primarily in the third-party subsidiary. The transportation group’s operating profit was also negatively impacted by higher liability and health insurance costs, increased losses due to accidents, and settlement of litigation.

Summary and Outlook. The Company’s transportation and real estate groups continue to experience contrasting results. Real estate revenues and profits have remained strong compared to the on-going adverse operating climate facing transportation. Though freight demand has recovered somewhat, sharply higher liability insurance costs and continuing driver shortages plague operating margins for the trucking industry. The Company’s transportation group will continue to emphasize increases in its freight revenue rates to offset inflating liability and health insurance costs. Driver recruitment and retention will both remain top priorities as well.

Patriot Transportation Holding, Inc. is engaged in the transportation and real estate businesses. The Company’s transportation business is conducted through three 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 Southeast and Mid-Atlantic States, hauling primarily construction materials. Patriot Transportation, Inc. hauls a variety of cargo, primarily in the United States, through independent sales agents and owner/operators. The Company’s real estate group, through subsidiaries, acquires, constructs, leases, operates and manages land and buildings to generate both current cash flows and long-term capital appreciation.

Patriot Transportation Holding, Inc.
Summary of Consolidated Revenues and Earnings - Unaudited
(Amounts in thousands except per share amounts)

Three Months Ended
June 30

Six Months Ended
June 30

Revenues
Gross Profit
Income before income taxes
Net income

Earnings per common share:
  -Basic
  -Diluted

Weighted average shares outstanding:
  -Basic
  -Diluted

2001

$31,652
$5,238
$1,929
$1,157

$.37
$.37

3,140
3,145

2000

$24,258
$4,685
$1,418
$865

$.26
$.26

3,274
3,285

2001

$93,744
$17,798
$6,727
$4,036

$1.28
$1.28

3,163
3,164

2000

$65,974
$12,111
$3,138
$1,914

$.57
$.57

3,339
3,357

Investors are cautioned that 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 business conditions, competitive factors, political, economic, regulatory, climatic, pricing, energy costs and technological contingencies. Additional information regarding these and other risk factors and uncertainties may be found in the Company's filings with the Securities and Exchange Commission.