EX-99 5 pati1q23_earningspr.htm PRESS RELEASE DATED FEBRUARY 2, 2023

PATRIOT TRANSPORTATION HOLDING, INC./NEWS

 

Contact: Matt McNulty

            Chief Financial Officer                                                                                                904/858-9100

 

 

PATRIOT TRANSPORTATION HOLDING, INC. ANNOUNCES RESULTS FOR

THE FIRST QUARTER OF FISCAL YEAR 2023

 

Patriot Transportation Holding, Inc. (NASDAQ-PATI) Jacksonville, Florida; February 2, 2023

 

First Quarter Operating Results

 

The Company reported net income of $485,000, or $.14 per share for the quarter ended December 31, 2022, compared to $6,439,000, or $1.74 per share, in the same quarter last year which included $6,281,000, or $1.70 per share, from after tax gains on real estate sales.

 

Revenue miles were down 299,000, or 5.5%, over the same quarter last year due to a lower average driver count partially resulting from the closure of our Nashville location. Operating revenues for the quarter were $22,850,000, up $2,279,000 from the same quarter last year due to rate increases, higher fuel surcharges and an improved business mix. Operating revenue per mile was up $.66, or 17.5%.

 

Compensation and benefits increased $1,121,000, mainly due to the increases in driver compensation offset by a lower driver count and non-driver personnel reductions. Fuel expense increased $602,000 due to higher diesel prices. Insurance and losses increased $174,000. Depreciation expense was down $203,000 in the quarter. In this quarter the gain on sale of terminal sites was $0 versus $8,330,000 from the sale of Tampa in last year’s 1st quarter. Gain on sale of assets was $66,000 versus $360,000 in the same quarter last year.

 

As a result, operating profit this quarter was $620,000 compared to $8,541,000 in last year’s 1st quarter.

 

 

Summary and Outlook

 

The goal in FY 2022 remained on increasing revenues to allow us to raise driver pay, improve our retention and increase our margins, all of which were accomplished. We were able to add some quality new business with both existing and new customers in a few markets throughout the first quarter and hope to see that trend continue in 2023. Inflation continues to challenge us and we continue to successfully negotiate additional rate increases with most of our customers on our existing book of business and will seek to replace business where the rate negotiations do not allow us to cover our higher expenses.

 

Our balance sheet remained stable with $7.8 million of cash and cash equivalents as of December 31, 2022, with no outstanding debt. We replaced 9 tractors during the quarter. For the remainder of fiscal 2023 we are planning to replace 64 tractors (29 are replacing lease units) and ~10 trailers and anticipate a total capital expenditure of ~$12 million in fiscal 2023.

 

 
 

 

Conference Call

 

The Company will host a conference call on February 2, 2023 at 3:00 PM (EST). 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/2058/47500. 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 47500. An audio archive can also be accessed at https://www.webcaster4.com/Webcast/Page/2058/47500.

 

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 impact of the COVID-19 pandemic on our revenues, operations and financial condition; 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; 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
    DECEMBER 31,
    2022   2021
                 
Operating revenues   $ 22,850       20,571  
                 
Cost of operations:                
  Compensation and benefits     10,205       9,084  
  Fuel expenses     3,320       2,718  
  Repairs & tires     1,354       1,216  
  Other operating     689       744  
  Insurance and losses     1,984       1,810  
  Depreciation expense     1,274       1,477  
  Rents, tags & utilities     648       673  
  Sales, general & administrative     2,327       2,465  
  Corporate expenses     495       533  
  Gain on sale of terminal sites     —         (8,330 )
  Gain on disposition of PP&E     (66 )     (360 )
Total cost of operations     22,230       12,030  
                 
Total operating income     620       8,541  
                 
Interest income and other     65       1  
Interest expense     (4 )     (5 )
                 
Income before income taxes     681       8,537  
Provision for income taxes     196       2,098  
                 
Net income   $ 485       6,439  
                 
                 
Earnings per common share:                
  Net income-                
    Basic     0.14       1.88  
    Diluted     0.14       1.74  
                 
Number of shares (in thousands) used in computing:                
 -basic earnings per common share     3,490       3,419  
 -diluted earnings per common share     3,532       3,701  

 

 

 

 

 

 

 

 

 

 

 
 

 

PATRIOT TRANSPORTATION HOLDING, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)

      December 31,     September 30,
Assets     2022       2022  
Current assets:                
  Cash and cash equivalents   $ 7,808       8,302  

  Accounts receivable (net of allowance for

doubtful accounts of $71 and $68, respectively)

     5,737       5,296  
  Inventory of parts and supplies     1,037       1,006  
  Prepaid tires on equipment     1,555       1,486  
  Prepaid taxes and licenses     287       378  
  Prepaid insurance     3,538       3,927  
  Prepaid expenses, other     148       163  
    Total current assets     20,110       20,558  
                 
Property and equipment, at cost     74,183       72,816  
Less accumulated depreciation     53,215       52,567  
Net property and equipment     20,968       20,249  
                 
Operating lease right-of-use assets     3,422       2,424  
Goodwill     3,637       3,637  
Intangible assets, net     506       556  
Other assets, net     139       142  
Total assets   $ 48,782       47,566  
                 
Liabilities and Shareholders’ Equity                
Current liabilities:                
  Accounts payable   $ 2,057       1,964  
  Federal and state taxes payable     791       594  
  Accrued payroll and benefits     3,047       3,208  
  Accrued insurance     986       1,053  
  Accrued liabilities, other     300       1,010  
  Operating lease liabilities, current portion     890       884  
    Total current liabilities     8,071       8,713  
                 
Operating lease liabilities, less current portion     2,918       1,705  
Deferred income taxes     3,631       3,631  
Accrued insurance     1,476       1,476  
Other liabilities     848       854  
    Total liabilities     16,944       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; 3,501,289 and 3,484,004 shares issued

and outstanding, respectively)

     350       348  
  Capital in excess of par value     40,118       39,958  
  Accumulated deficit     (8,705 )     (9,190 )
  Accumulated other comprehensive income, net     75       71  
    Total shareholders’ equity     31,838       31,187  
Total liabilities and shareholders’ equity   $ 48,782       47,566