EX-99 2 patijunq23_pr.htm PATI JUN23 EARNINGS RELEASE

PATRIOT TRANSPORTATION HOLDING, INC./NEWS

 

Contact: Matt McNulty

              Chief Financial Officer                                                                                                904/858-9100

 

 

PATRIOT TRANSPORTATION HOLDING, INC. ANNOUNCES RESULTS FOR

THE THIRD QUARTER AND FIRST NINE MONTHS OF FISCAL 2023

 

Patriot Transportation Holding, Inc. (NASDAQ-PATI) Jacksonville, Florida; August 3, 2023

 

Third Quarter Operating Results

 

The Company reported net income of $1,187,000, or $.33 per share for the quarter ended June 30, 2023, compared to $771,000, or $.22 per share in the same quarter last year.

 

Revenue miles were up 379,000, or 7.1%, over the same quarter last year. Operating revenues for the quarter were $24,253,000, up $752,000 from the same quarter last year due to higher miles, rate increases, and an improved business mix. Operating revenue per mile was down $.16, or 3.6% due mainly to lower fuel surcharges as diesel prices have declined since the same quarter last year.

 

Compensation and benefits increased $1,490,000, mainly due to the increases in driver compensation, a $126,000 increase in training pay versus the same quarter last year and an increase in owner operators. Fuel expense decreased $1,242,000 due to lower diesel prices in the quarter. Insurance and losses decreased $266,000 due to lower risk insurance claims offset by increased health insurance claims. Sales, general & administrative increased $381,000 due mainly to bonus accruals. Gain on sale of equipment was $432,000 versus $163,000 in the same quarter last year.

 

As a result, operating profit this quarter was $1,499,000 compared to $913,000 in the same quarter last year.

 

 

First Nine Months Operating Results for Fiscal year 2023

 

The Company reported net income of $2,147,000, or $.60 per share for the nine months ended June 30, 2023, compared to $6,720,000, or $1.85 per share in the same period last year. Net income in the nine months ended June 30, 2022 included $6,281,000, or $1.73 per share, from gains on real estate net of income taxes that did not occur in the current period.

 

Revenue miles were up 177,000, or 1.1%, over the same period last year. Operating revenues for the period were $70,568,000, up $5,568,000 from the same period last year due to rate increases and an improved business mix. Operating revenue per mile was up $.29, or 7.2%.

 

Compensation and benefits increased $4,692,000, mainly due to the increases in driver compensation, a $422,000 increase in training pay versus the same period last year and increases in owner operators. Fuel expense decreased $802,000 due to declining diesel prices in the second and third quarters offset by higher diesel prices in the first quarter. Insurance and losses decreased $1,022,000 due to lower risk and health insurance claims. Depreciation expense was down $313,000 in the period. Sales, general & administrative increased $787,000 due mainly to bonus

 
 

accruals, increased travel and higher 401(k) match. Gain on sale of equipment was $773,000 versus $642,000 in the same period last year.

 

As a result, operating profit this period was $2,703,000 compared to $8,815,000 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 96.2 in the first nine months versus 86.4 in the same period last year.

 

Summary and Outlook

 

The adjustments we made to customer rates and driver pay beginning back in April, 2021 have benefitted us throughout this fiscal year. Our driver count has increased by approximately 12% since October 1 2022, our total revenue per mile is up over 7% and our annualized turnover rate has declined from 77.0% last year to 73.4% in fiscal 2023. While the driver training cost has increased significantly year over year, the added driver capacity has allowed us to add some quality new business with both existing and new customers in a few markets and we are working to continue that trend.

 

Our balance sheet remained stable with $7.4 million of cash as of June 30, 2023, with no outstanding debt. Through the first nine months we have purchased 52 new tractors. For the remainder of fiscal 2023 we are planning to replace 21 additional tractors (16 are replacing lease units) and anticipate a total capital expenditure of approximately $12 million in fiscal 2023.

 

Conference Call

 

The Company will host a conference call on August 3, 2023 at 3:00 PM (EDT). Analysts, shareholders and other interested parties may access the teleconference live by calling 1-888-506-0062 domestic or international at 1-973-528-0011. Computer audio live streaming is available at https://www.webcaster4.com/Webcast/Page/2058/48718. An audio replay will be available for sixty (60) days following the conference call by dialing toll free 1-877-481-4010 domestic or international 1-919-882-2331 then enter pass code 48718. An audio archive can also be accessed at https://www.webcaster4.com/Webcast/Page/2058/48718.

 

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 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   NINE MONTHS ENDED
    JUNE 30,   JUNE 30,
    2023   2022   2023   2022
                 
Operating revenues   $  24,253       23,501       70,568       65,000  
                                 
Cost of operations:                                
  Compensation and benefits     11,264       9,774       32,512       27,820  
  Fuel expenses     2,723       3,965       9,041       9,843  
  Repairs & tires     1,649       1,502       4,390       4,163  
  Other operating     792       739       2,300       2,193  
  Insurance and losses     1,652       1,918       5,280       6,302  
  Depreciation expense     1,360       1,363       3,933       4,246  
  Rents, tags & utilities     669       651       1,960       2,032  
  Sales, general & administrative     2,709       2,328       7,732       6,945  
  Corporate expenses     368       511       1,490       1,613  
  Gain on sale of terminal sites     —         —         —         (8,330 )
  Gain on disposition of PP&E     (432 )      (163 )      (773 )      (642 ) 
Total cost of operations     22,754       22,588       67,865       56,185  
                                 
Total operating profit     1,499       913       2,703       8,815  
                                 
Interest income and other     87       13       228       17  
Interest expense     (4 )      (4 )      (13 )      (13 ) 
                                 
Income before income taxes     1,582       922       2,918       8,819  
Provision for income taxes     395       151       771       2,099  
                                 
Net income   $ 1,187       771       2,147       6,720  
                                 
Unrealized investment gains (losses), net     (1 )      (4 )      5       (7 ) 
                                 
Comprehensive income   $ 1,186       767       2,152       6,713  
                                 
Earnings per common share:                                
  Net income -                                
    Basic   $  0.34       0.22       0.61       1.95  
    Diluted   $  0.33       0.22       0.60       1.85  
                                 
Number of shares (in thousands) used in computing:        
-basic earnings per common share     3,527       3,483       3,511       3,453  
-diluted earnings per common share     3,630       3,504       3,585       3,628  

 

 

 

 

 

 

 

 

 

 
 

 

PATRIOT TRANSPORTATION HOLDING, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)

      June 30,     September 30,
Assets     2023       2022  
Current assets:                
  Cash and cash equivalents   $ 7,425       8,302  

  Accounts receivable (net of allowance for

doubtful accounts of $62 and $68, respectively)

     5,690       5,296  
  Inventory of parts and supplies     928       1,006  
  Prepaid tires on equipment     1,656       1,486  
  Prepaid taxes and licenses     151       378  
  Prepaid insurance     2,301       3,927  
  Prepaid expenses, other     136       163  
    Total current assets     18,287       20,558  
                 
Property and equipment, at cost     76,106       72,816  
Less accumulated depreciation     51,393       52,567  
Net property and equipment     24,713       20,249  
                 
Operating lease right-of-use assets     2,969       2,424  
Goodwill     3,637       3,637  
Intangible assets, net     408       556  
Other assets, net     129       142  
Total assets   $ 50,143       47,566  
                 
Liabilities and Shareholders’ Equity                
Current liabilities:                
  Accounts payable   $ 1,882       1,964  
  Federal and state taxes payable     122       594  
  Accrued payroll and benefits     3,902       3,208  
  Accrued insurance     525       1,053  
  Accrued liabilities, other     327       1,010  
  Operating lease liabilities, current portion     738       884  
    Total current liabilities     7,496       8,713  
                 
Operating lease liabilities, less current portion     2,615       1,705  
Deferred income taxes     3,944       3,631  
Accrued insurance     1,476       1,476  
Other liabilities     836       854  
    Total liabilities     16,367       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     40,390       39,958  
  Accumulated deficit     (7,043 )     (9,190 )
  Accumulated other comprehensive income, net     76       71  
    Total shareholders’ equity     33,776       31,187  
Total liabilities and shareholders’ equity   $ 50,143       47,566