PATRIOT TRANSPORTATION HOLDING, INC. ANNOUNCES RESULTS FOR THE FIRST FISCAL QUARTER ENDED DECEMBER 31, 2002 AND ADDITIONAL AUTHORIZATION TO REPURCHASE STOCK.
Jacksonville, Florida; January 29, 2003 -- Patriot Transportation Holding, Inc. (NASDAQ-PATR) reported net income of $938,000 or $.30 per diluted share for the first quarter of fiscal year 2003, a 30% decline from $1,346,000 or $.43 per diluted share for the same quarter last year.
First Quarter Operating Results.For the first quarter of Fiscal 2003, consolidated revenues were $24,042,000, an increase of $550,000 or 2.3% over the same quarter last year.
The transportation segment's revenues for the first quarter increased $888,000 or 4.5% primarily as a result of a 3.9% increase in revenue per mile in the first quarter 2003 over the same quarter last year. Miles hauled were virtually unchanged from last year as new business generated from the May 30, 2002 acquisition of the operating assets of Infinger Transportation, Inc. (Infinger) more than compensated for the loss of a significant customer in the fourth quarter of 2002 and a 5.3% decline in miles hauled in our flatbed division due to lower demand and driver shortages.
Real estate revenues decreased $338,000 or 9.1% for the first quarter of 2003. Revenues from developed leased properties in the Baltimore area increased $153,068 or 8.5%, primarily due to a 7.5% increase in average leased square feet due to building completions in Fiscal 2002 and minimal price increases. The real estate group had no property sales during the first quarter of 2003, compared to $20,000 in property sales in the same quarter last year. Royalties from mining leases decreased $464,000 or 31.8% primarily resulting from completion of mining at two locations during the third quarter of 2002. These mines accounted for approximately 33.8% of mined tons in the first quarter of 2002.
Consolidated gross profit for the first quarter was $4,329,000, a decrease of $738,000 or 14.6% compared to the same period last year. Gross profit in the transportation segment decreased $642,000 or 21.6% as a result of a 14.1% increase in depreciation expense resulting primarily from the Infinger asset additions as well as sharply higher expenses related to risk and health insurance. Gross profit in the real estate segment decreased $96,000 or 4.6% for the first quarter of 2003 due to decreased royalties from mining operations, partially offset by increased gross profits from newly developed commercial properties.
Selling, general and administrative expense decreased $67,000 or 3.3% for the first quarter compared to the same period last year. Selling, general and administrative expense as a percent of consolidated revenues excluding property sales was 8.2% as compared to 8.7% last year.
Interest expense, net of capitalized interest, increased $59,000 for the first quarter due to an increase in the average debt outstanding. The provision for income taxes decreased $297,000 for the first quarter as a result of the decrease in income before income taxes. The provision for income taxes was 39% of income before income taxes in the first quarter of 2003 and 40% in the first quarter of 2002.
Net income was $938,000 or $.30 per diluted share for the first quarter of Fiscal 2003 compared to $1,346,000 or $.43 per diluted share for the same quarter last year.
Summary and Outlook.Progress within the Company's real estate development business continues to be encouraging. Demand appears to be continuing for the Company's flexible office warehouse product. Completion of mining at two locations has reduced royalty revenues and related income.
Excluding volume benefits from the Infinger acquisition, quarter-over-quarter revenue miles for the Company's tank truck business remain modestly lower. The loss of a major customer, changes in tourism and air travel activity and associated decreased demand for petroleum products are challenging. Flatbed freight demand was slow in the quarter ended December 31, 2002 and remains tentative.
Future national and regional economic behavior will govern growth prospects for both real estate and transportation. Operating margins for U.S. domestic trucking will also continue to be challenged by escalating health and liability insurance expenses. Short-term margin pressures may also continue from escalating diesel fuel costs.
Additional Authorization to Repurchase Stock.The Company also announced that an additional $2,500,000 has been authorized for the repurchase of the Company's common stock from time to time as opportunities arise. The Company now has a total of $3,600,000 available for such repurchases.
Patriot Transportation Holding, Inc. is engaged in the transportation and real estate businesses. The Companys transportation business is conducted through two 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, Midwest and Mid-Atlantic States, hauling primarily construction materials. The Companys 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
December 31 |
|
Revenues
Gross Profit
Operationg Profit
Income before income taxes
Net income
Earnings per common share:
-Basic
-Diluted
Weighted average shares outstanding:
-Basic
-Diluted |
2002
$24,042
$4,329
$2,377
$1,538
$938
$.30
$.30
3,133
3,140 |
2001
23,492
5,067
3,023
2,243
1,346
$.43
$.43
3,156
3,142 |
Patriot Transportation Holding,
Inc.
Condensed Balance Sheets (Unaudited)
(Amounts in thousands)
Cash and cash equivalents
Accounts receivable, net
Prepaid expenses and other current asset
Property, plant and equipment, net
Other assets
Total Assets
Current liabilities
Long-term debt (excludingmaturities)
Deferred income taxes
Other liabilities
Shareholders’ equity
Total Liabilities and Shareholders’
Equity
|
December
31
2002
$ 203
7,191
6,317
148,184
5,707
$167,602
$ 10,074
62,765
10,062
6,986
77,715
$167,602
|
September
30
2001
529
7,343
3,618
138,367
5,606
155,463
11,972
47,290
10,062
6,979
79,160
155,463
|
|
Business
Segments (Unaudited) |
|
The Company has identified two business segments, Transportation
and Real Estate. All of the Company’s operations
are located in the Southeastern and Mid-Atlantic states
and each is managed separately along product lines.
Operating results for the Company’s business segments
are as follows (amounts in thousands):
|
Three
Months Ended
December 31 |
|
Revenues:
Transportation
Real Estate (a)
Operating profit
Transportation
Real Estate (a)
Corporate expenses
Operating profit
|
2002
$ 20,666
3,376
$ 24,042
$ 745
1,998
(366)
$ 2,377
|
2001
19,778
3,714
23,492
1,282
2,094
(353)
3,023
|
(a) the three months ended December 31, 2001 includes
revenues of $20,000 and an operating loss of $33,000
from the sale of real estate.
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.
|
