JACKSONVILLE, FL / ACCESSWIRE / December 6, 2023 / Patriot Transportation Holding, Inc. (NASDAQ:PATI)
Fourth Quarter Operating Results
The Company reported net income of $526,000, or $.15 per share for the quarter ended September 30, 2023, compared to $470,000, or $.13 per share in the same quarter last year.
Revenue miles were up 402,000, or 7.7%, over the same quarter last year. Operating revenues for the quarter were $24,217,000, up $1,335,000 from the same quarter last year due to higher miles, rate increases, and an improved business mix. Operating revenue per mile was down $.08, or 1.8% due mainly to lower fuel surcharges as diesel prices have declined since the same quarter last year.
Compensation and benefits increased $895,000, mainly due to the increase in owner operators. Fuel expense decreased $515,000 due to lower diesel prices in the quarter. Insurance and losses decreased $81,000 due to lower risk insurance claims offset by increased health insurance claims. Sales, general & administrative increased $499,000 due mainly to bonus accruals. Corporate expenses included $368,000 of costs related to the pending merger. Gain on sale of equipment was $274,000 versus $97,000 in the same quarter last year.
As a result, operating profit this quarter was $579,000 compared to $484,000 in the same quarter last year.
Operating Results for Fiscal year 2023
The Company reported net income of $2,673,000, or $.74 per share for the fiscal year ended September 30, 2023, compared to $7,190,000, or $1.98 per share in the same period last year. Net income in the fiscal year ended September 30, 2022 included $6,281,000, or $1.73 per share, from one-time gains on real estate net of income taxes.
Revenue miles were up 579,000, or 2.7%, over the same period last year. Operating revenues for the period were $94,785,000, up $6,903,000 from the same period last year due to an increase in miles, rate increases and an improved business mix. Operating revenue per mile was up $.20, or 4.8%.
Compensation and benefits increased $5,587,000, mainly due to the increases in driver compensation, a $331,000 increase in training pay versus the same period last year and increases in owner operators. Fuel expense decreased $1,317,000 due to lower diesel prices. Insurance and losses decreased $1,103,000 due to lower risk and health insurance claims. Depreciation expense was down $127,000 in the period. Sales, general & administrative increased $1,286,000 due mainly to bonus accruals, increased travel and higher 401(k) match. Corporate expenses were up $204,000 due to $368,000 of costs related to the pending merger. Gain on sale of equipment was $1,047,000 versus $739,000 in the same period last year.
As a result, operating profit this period was $3,282,000 compared to $9,299,000 in the same period last year. Prior year gain on the sale of land was $8,330,000 due to the sale of our former terminal location in Tampa, FL. Operating ratio was 96.5 versus 89.4 in the same period last year.
Conference Call
The Company will not hold an earnings conference call due to the execution of a definitive merger agreement, pursuant to which affiliates of United Petroleum Transports, Inc. propose to acquire all of the outstanding shares of Patriot common stock for $16.26 per share in cash.
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 the satisfaction of the conditions precedent to complete the proposed merger, disruptions of current plans and operations caused by the announcement and pendency of the merger, and the response of customers, suppliers, drivers and regulators to the announcement and pendency of the merger as well as 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; impact of COVID-19; fuel costs; risk insurance markets; 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 business. The Company's transportation business is conducted through Florida Rock & Tank Lines, Inc. which is a Southeastern transportation company engaged in the hauling of liquid and dry bulk commodities.
PATRIOT TRANSPORTATION HOLDING, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In thousands)
(Unaudited)
| THREE MONTHS ENDED | TWELVE MONTHS ENDED | |||||||||||||||
| SEPTEMBER 30, | SEPTEMBER 30, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
Operating revenues |
$ | 24,217 | 22,882 | 94,785 | 87,882 | |||||||||||
Cost of operations: |
||||||||||||||||
Compensation and benefits |
10,981 | 10,086 | 43,493 | 37,906 | ||||||||||||
Fuel expenses |
2,930 | 3,445 | 11,971 | 13,288 | ||||||||||||
Repairs & tires |
1,712 | 1,597 | 6,102 | 5,760 | ||||||||||||
Other operating |
825 | 834 | 3,125 | 3,027 | ||||||||||||
Insurance and losses |
1,784 | 1,865 | 7,064 | 8,167 | ||||||||||||
Depreciation expense |
1,477 | 1,291 | 5,410 | 5,537 | ||||||||||||
Rents, tags & utilities |
618 | 618 | 2,578 | 2,650 | ||||||||||||
Sales, general & administrative |
2,860 | 2,361 | 10,592 | 9,306 | ||||||||||||
Corporate expenses |
725 | 398 | 2,215 | 2,011 | ||||||||||||
Gain on sale of terminal sites |
- | - | - | (8,330 | ) | |||||||||||
Gain on disposition of PP&E |
(274 | ) | (97 | ) | (1,047 | ) | (739 | ) | ||||||||
Total cost of operations |
23,638 | 22,398 | 91,503 | 78,583 | ||||||||||||
Total operating profit |
579 | 484 | 3,282 | 9,299 | ||||||||||||
Interest income and other |
96 | 45 | 324 | 62 | ||||||||||||
Interest expense |
(5 | ) | (5 | ) | (18 | ) | (18 | ) | ||||||||
Income before income taxes |
670 | 524 | 3,588 | 9,343 | ||||||||||||
Provision for income taxes |
144 | 54 | 915 | 2,153 | ||||||||||||
Net income |
$ | 526 | 470 | 2,673 | 7,190 | |||||||||||
Loss on retiree health, net |
(11 | ) | (13 | ) | (11 | ) | (13 | ) | ||||||||
Unrealized investment gains (losses), net |
- | 2 | 5 | (5 | ) | |||||||||||
Comprehensive income |
$ | 515 | 459 | 2,667 | 7,172 | |||||||||||
Earnings per common share: |
||||||||||||||||
Net income - |
||||||||||||||||
Basic |
$ | 0.15 | 0.13 | 0.76 | 2.08 | |||||||||||
Diluted |
$ | 0.15 | 0.13 | 0.74 | 1.98 | |||||||||||
| Number of shares (in thousands) used in computing: | ||||||||||||||||
-basic earnings per common share |
3,526 | 3,484 | 3,515 | 3,459 | ||||||||||||
-diluted earnings per common share |
3,624 | 3,510 | 3,594 | 3,623 | ||||||||||||
PATRIOT TRANSPORTATION HOLDING, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
| September 30, | September 30, | |||||||
Assets |
2023 | 2022 | ||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 6,429 | 8,302 | |||||
|
Accounts receivable (net of allowance for
doubtful accounts of $63 and $68, respectively)
|
6,126 | 5,296 | ||||||
Federal and state taxes receivable |
511 | - | ||||||
Inventory of parts and supplies |
898 | 1,006 | ||||||
Prepaid tires on equipment |
1,674 | 1,486 | ||||||
Prepaid taxes and licenses |
380 | 378 | ||||||
Prepaid insurance |
3,369 | 3,927 | ||||||
Prepaid expenses, other |
83 | 163 | ||||||
Total current assets |
19,470 | 20,558 | ||||||
Property and equipment, at cost |
77,048 | 72,816 | ||||||
Less accumulated depreciation |
50,708 | 52,567 | ||||||
Net property and equipment |
26,340 | 20,249 | ||||||
Operating lease right-of-use assets |
2,735 | 2,424 | ||||||
Goodwill |
3,637 | 3,637 | ||||||
Intangible assets, net |
359 | 556 | ||||||
Other assets, net |
126 | 142 | ||||||
Total assets |
$ | 52,667 | 47,566 | |||||
Liabilities and Shareholders' Equity |
||||||||
Current liabilities: |
||||||||
Accounts payable |
$ | 2,614 | 1,964 | |||||
Federal and state taxes payable |
- | 594 | ||||||
Accrued payroll and benefits |
4,490 | 3,208 | ||||||
Accrued insurance |
918 | 1,053 | ||||||
Accrued liabilities, other |
382 | 1,010 | ||||||
Operating lease liabilities, current portion |
653 | 884 | ||||||
Total current liabilities |
9,057 | 8,713 | ||||||
Operating lease liabilities, less current portion |
2,459 | 1,705 | ||||||
Deferred income taxes |
4,715 | 3,631 | ||||||
Accrued insurance |
1,276 | 1,476 | ||||||
Other liabilities |
829 | 854 | ||||||
Total liabilities |
18,336 | 16,379 | ||||||
Commitments and contingencies |
||||||||
Shareholders' Equity: |
||||||||
|
Preferred stock, 5,000,000 shares authorized, of which
250,000 shares are designated Series A Junior
Participating Preferred Stock; $0.01 par value;
None issued and outstanding
|
- | - | ||||||
|
Common stock, $.10 par value; (25,000,000 shares
authorized; 3,526,489 and 3,484,004 shares issued
and outstanding, respectively)
|
353 | 348 | ||||||
Capital in excess of par value |
40,430 | 39,958 | ||||||
Accumulated deficit |
(6,517 | ) | (9,190 | ) | ||||
Accumulated other comprehensive income, net |
65 | 71 | ||||||
Total shareholders' equity |
34,331 | 31,187 | ||||||
Total liabilities and shareholders' equity |
$ | 52,667 | 47,566 | |||||
SOURCE: Patriot Transportation Holding, Inc.
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