EX-99 5 patisep23_pr.htm EARNINGS RELEASE

PATRIOT TRANSPORTATION HOLDING, INC./NEWS

 

Contact: Matt McNulty

             Chief Financial Officer                                                                                             904/858-9100

 

 

PATRIOT TRANSPORTATION HOLDING, INC. ANNOUNCES RESULTS FOR

THE FOURTH QUARTER AND FISCAL YEAR 2023

 

Patriot Transportation Holding, Inc. (NASDAQ-PATI) Jacksonville, Florida; December 6, 2023

 

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

1 
 

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.

2 
 

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  

 

 

 

 

 

 

 

 

 

3 
 

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