JACKSONVILLE, Fla.,
Nov. 22, 2016 /PRNewswire/ -- FRP
Holdings, Inc. (NASDAQ-FRPH) –
Fiscal 2016 Fourth Quarter Consolidated Results of
Operations.
Net income for the fourth quarter of fiscal 2016 was
$1,957,000 or $.20 per share versus $2,071,000 or $.21
per share in the fourth quarter last year. Total revenues
were $9,776,000, up 9.9%, versus the
same quarter last year, while total cost of operations increased
7%. Finally, consolidated total operating profit was up
$520,000 this quarter, a 13.7%
improvement over last year's fourth quarter results.
Fourth Quarter Segment Operating Results.
During fiscal 2015, management analyzed the amount of corporate
and management company time likely to be spent on our segments
going forward and, as a result, the allocation of corporate expense
to the Mining Royalty Lands segment was reduced and reallocated to
our other two segments (the "Reallocation").
Asset Management Segment:
Total revenues in this segment were $7,323,000, up $349,000 or 5.0%, over the same quarter last
year. Net Operating Income in this segment for the 4th quarter was
$5,627,000, compared to $5,317,000 in the 4th quarter last year, an
increase of 5.8%. The increase was mainly due to the
acquisition of the Port Capital building in Baltimore in October of 2015 and the
acquisition of the Gilroy Road building in Hunt Valley, MD on July
1, 2016. We ended this quarter with total occupied
square feet of 3,486,681 versus 3,262,965 at the end of the 4th
quarter last year, an increase of 6.9% or 223,716 square feet.
Depreciation and amortization expense increased primarily due to
the two building purchases in fiscal 2016 and the write-off of
prepaid commissions related to the bankruptcy of one of our
tenants, ITT Educational Services. Corporate expense
increased due to the Reallocation and higher professional fees.
Mining Royalty Lands Segment:
Total revenues in this segment were $2,037,000, an increase of 21.3%, versus
$1,680,000 in the same quarter last
year due to an increase in tons sold at locations over the
minimum. Including a $207,000
benefit from reallocating corporate expenses, total operating
profit in this segment was $1,866,000. That is an increase of
$611,000 over last year's fourth
quarter operating profit of $1,255,000.
Land Development and Construction Segment:
The Land Development and Construction segment is responsible for
(i) seeking out and identifying opportunistic purchases of income
producing warehouse/office buildings, and (ii) developing our
non-income producing properties into income production.
During the quarter we obtained rezoning of our 117 acre parcel in
Carroll County, Maryland from
industrial to residential which we pursued in order to maximize
this asset's profitability and expedite its disposition. We
also received $1,115,400 as
settlement for an easement related to the future construction of
the new Frederick Douglass Bridge.
Because of operating losses and depreciation during the lease up of
Phase I (Dock 79) of RiverFront on the Anacostia this quarter,
equity in loss of joint ventures was $652,000. Phase I pre-leasing activity for
the 305 residential units commenced in late May of 2016 and as of
the end of October the residential units were 30.5% occupied and
42.3% leased, while retail units were 80% leased with just one
space remaining.
Fiscal Year 2016 Consolidated Results of Continuing
Operations.
Income from continuing operations for fiscal 2016 was
$12,024,000 or $1.22 per share versus $6,093,000 or $.62
per share last year. Fiscal 2016 included $.43 per share from a gain on land sale of
$6,029,000 and income of $1,000,000 from the $3
million environmental claim cash settlement received offset
by a $2 million estimated liability
for environmental remediation on Phase II. Post Spin-off we
are reporting any net gain/(loss) from the transportation business
as "discontinued operations" and we currently have no other
discontinued operations being reported. For fiscal 2016 we received
no benefit to after tax net income versus a $2,179,000 benefit last year. Additionally, GAAP
accounting rules do not allow corporate overhead expense to be
allocated to a discontinued operation of the Company which resulted
in fiscal 2015 including $1,081,000
of corporate overhead expense to the Company that was associated
with the discontinued transportation operations.
Total revenues were up $2,811,000,
or 8.1%, versus the same period last year. Consolidated
adjusted total operating profit in fiscal 2016 (excluding the
positive impacts of the environmental settlement/expense (net) in
this period and the negative impact of corporate expense not
allocable to discontinued operations in the prior year) was up 16%
over last year (see table "Non-GAAP Financial Measures).
Fiscal Year 2016 Segment Operating Results.
Asset Management Segment:
Total revenues in this segment were $28,739,000, up $1,169,000 or 4.2%, over last year. Net operating
income in this segment for fiscal 2016 was $21,944,000, compared to $21,043,000 last year, an increase of 4.3%. The
increase was due mainly to completion of the third build-to-suit in
the middle of the 2nd quarter last year, the acquisition of the
Port Capital building in October of 2015 and the acquisition of the
Gilroy Road building in July of 2016.
Depreciation and amortization expense increased primarily due to
the two building purchases in fiscal 2016, accelerated depreciation
of $139,000 for tenant improvements
removed for a new tenant, and the write-off of prepaid commissions
related to the bankruptcy of one of our tenants, ITT Educational
Services. Corporate expense increased due to the Reallocation
and higher professional fees.
Mining Royalty Lands Segment:
Total revenues in this segment were $7,533,000, an increase of 23.6%, versus
$6,094,000 last year due to an
increase in tons sold. Total operating profit in this segment was
$6,798,000, an increase of
$2,642,000 (inclusive of a
$1,091,000 benefit from the
Reallocation), versus $4,156,000 last
year.
Land Development and Construction Segment:
Beyond the aforementioned rezoning of Hampstead and settling the easement at
Anacostia, during fiscal 2016 this segment successfully closed on
the sale of Phase II of the Windlass Run residential land (a
non-income producing property) for $11,288,000. Using $9,900,000 of the proceeds from that sale in a
Section 1031 exchange, the Asset Management segment acquired the
Port Capital building, a 91,218 square foot, 100% occupied
warehouse with first full year projected rental revenue of
$594,000. Management successfully
completed negotiations and entered into a $3,000,000 settlement of environmental claims
against our former tenant at the Riverfront on the Anacostia
property and continues to pursue settlement negotiations with other
potentially responsible parties. The Company executed a
letter of intent with MRP Realty in May
2016 to develop Phase II of the Riverfront on the Anacostia
project and recorded an estimated environmental remediation expense
of $2.0 million for the Company's
estimated liability under the proposed agreement. Construction of
the 79,550 square foot spec warehouse at Hollander Business Park
was completed during the third quarter of this fiscal year and
transferred to the Asset Management segment for lease-up. Also in
the third quarter of fiscal 2016 we started construction on a
103,653 square foot building in Patriot Business Center and
pre-leased 51,727 square feet.
Summary and Outlook.
We are focused on building shareholder value through our real
estate holdings - mainly by growing our portfolio through the
opportunistic purchase of income producing warehouse/office
buildings, and the conversion of our non-income producing assets
into income production through a two pronged approach
that includes (i) selling land that is not conducive to
warehouse/office development (e.g. Windlass Run Residential Phase 2
land) and using the proceeds to acquire existing income producing
warehouse/office buildings typically in a Section 1031 exchange
(e.g. the Port Capital building purchase) and (ii) the construction
of new warehouse/office buildings on existing pad sites in our
developed business parks (e.g. new spec building at Hollander
Business Park). Over the past five years, we have converted
172 acres of non-income producing land into 766,216 square feet of
income producing properties (excluding the recently completed spec
building) with FY 2016 rental revenues of $5,555,000.
We saw another quarter of real improvement in mining
royalties due mainly to increased volumes at most of our
locations.
During fiscal 2017, we expect to complete construction on the
new 104,000 sq.ft. spec building at Patriot Business Park,
reconstruct the bulk head at the Square 664E property in
anticipation of future high-rise development, and continue
management of lease up of Phase I (Dock 79) of RiverFront on the
Anacostia and pre-development activities for Phase II.
Conference Call.
The Company will host a conference call on Monday, November 28, 2016 at 10:00 a.m. (ET). Analysts, stockholders and
other interested parties may access the teleconference live by
calling 1-800-853-3898 (pass code 97315) within the United
States. International callers may dial 334-323-7224 (pass
code 97315). Computer audio live streaming is available via
the Internet through the Company's website at
www.frpholdings.com. You may also click on this link for the
live streaming http://stream.conferenceamerica.com/FRP112816. For
the archived audio via the internet, click on the following link
http://archive.conferenceamerica.com/archivestream/FRP112816.mp3.
If using the Company's website, click on the Investor Relations
tab, then select the earnings conference stream. An audio
replay will be available for sixty days following the conference
call. To listen to the audio replay, dial toll free 877-919-4059,
international callers dial 334-323-0140. The passcode of the
audio replay is 29505239. Replay options: "1" begins
playback, "4" rewind 30 seconds, "5" pause, "6" fast forward 30
seconds, "0" instructions, and "9" exits recording. There may
be a 30-40 minute delay until the archive is available following
the conclusion of the conference call.
FRP HOLDINGS, INC.
AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF INCOME
(In thousands except
per share amounts)
(Unaudited)
|
|
|
|
THREE MONTHS
ENDED
|
|
TWELVE MONTHS
ENDED
|
|
|
SEPTEMBER
30,
|
|
SEPTEMBER
30,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental
revenue
|
|
$
|
6,261
|
|
|
|
5,879
|
|
|
|
24,457
|
|
|
|
23,410
|
|
Mining Royalty and
rents
|
|
|
2,014
|
|
|
|
1,650
|
|
|
|
7,443
|
|
|
|
5,999
|
|
Revenue –
reimbursements
|
|
|
1,501
|
|
|
|
1,370
|
|
|
|
5,557
|
|
|
|
5,237
|
|
Total
Revenues
|
|
|
9,776
|
|
|
|
8,899
|
|
|
|
37,457
|
|
|
|
34,646
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion
and amortization
|
|
|
2,160
|
|
|
|
1,812
|
|
|
|
8,051
|
|
|
|
7,378
|
|
Operating
expenses
|
|
|
1,146
|
|
|
|
1,122
|
|
|
|
4,624
|
|
|
|
4,609
|
|
Environmental
remediation expense
|
|
|
—
|
|
|
|
—
|
|
|
|
(1,000)
|
|
|
|
—
|
|
Property
taxes
|
|
|
1,087
|
|
|
|
1,120
|
|
|
|
4,475
|
|
|
|
4,443
|
|
Management company
indirect
|
|
|
419
|
|
|
|
419
|
|
|
|
1,844
|
|
|
|
1,647
|
|
Corporate
expenses
|
|
|
656
|
|
|
|
638
|
|
|
|
3,080
|
|
|
|
4,388
|
|
Total cost of
operations
|
|
|
5,468
|
|
|
|
5,111
|
|
|
|
21,074
|
|
|
|
22,465
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating
profit
|
|
|
4,308
|
|
|
|
3,788
|
|
|
|
16,383
|
|
|
|
12,181
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
—
|
|
|
|
—
|
|
|
|
2
|
|
|
|
—
|
|
Interest
expense
|
|
|
(273)
|
|
|
|
(490)
|
|
|
|
(1,561)
|
|
|
|
(2,014)
|
|
Equity in loss of
joint ventures
|
|
|
(652)
|
|
|
|
110
|
|
|
|
(978)
|
|
|
|
(145)
|
|
Gain (Loss) on
investment land sold
|
|
|
(148)
|
|
|
|
(14)
|
|
|
|
6,029
|
|
|
|
(34)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations before income taxes
|
|
|
3,235
|
|
|
|
3,394
|
|
|
|
19,875
|
|
|
|
9,988
|
|
Provision for income
taxes
|
|
|
1,278
|
|
|
|
1,323
|
|
|
|
7,851
|
|
|
|
3,895
|
|
Income from
continuing operations
|
|
|
1,957
|
|
|
|
2,071
|
|
|
|
12,024
|
|
|
|
6,093
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain from
discontinued transportation operations, net of taxes
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2,179
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
$
|
1,957
|
|
|
|
2,071
|
|
|
|
12,024
|
|
|
|
8,272
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
from continuing operations-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.20
|
|
|
|
0.21
|
|
|
|
1.22
|
|
|
|
0.62
|
|
Diluted
|
|
$
|
0.20
|
|
|
|
0.21
|
|
|
|
1.22
|
|
|
|
0.62
|
|
Discontinued operations-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.23
|
|
Diluted
|
|
$
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.22
|
|
Net
Income-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.20
|
|
|
|
0.21
|
|
|
|
1.22
|
|
|
|
0.85
|
|
Diluted
|
|
$
|
0.20
|
|
|
|
0.21
|
|
|
|
1.22
|
|
|
|
0.84
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of shares
(in thousands) used in computing:
|
|
|
|
|
|
|
|
|
|
|
|
-basic earnings per common
share
|
|
|
9,865
|
|
|
|
9,789
|
|
|
|
9,846
|
|
|
|
9,756
|
|
-diluted earnings per common
share
|
|
|
9,908
|
|
|
|
9,839
|
|
|
|
9,890
|
|
|
|
9,827
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Management
Segment:
|
|
|
|
Three months ended
September 30
|
|
|
|
|
(dollars in
thousands)
|
|
2016
|
|
%
|
|
2015
|
|
%
|
|
Change
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental
revenue
|
|
$
|
5,977
|
|
|
|
81.6
|
%
|
|
|
5,763
|
|
|
|
82.6
|
%
|
|
|
214
|
|
|
|
3.7
|
%
|
Revenue-reimbursements
|
|
|
1,346
|
|
|
|
18.4
|
%
|
|
|
1,211
|
|
|
|
17.4
|
%
|
|
|
135
|
|
|
|
11.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
|
|
7,323
|
|
|
|
100.0
|
%
|
|
|
6,974
|
|
|
|
100.0
|
%
|
|
|
349
|
|
|
|
5.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation,
depletion and amortization
|
|
|
2,071
|
|
|
|
28.3
|
%
|
|
|
1,707
|
|
|
|
24.5
|
%
|
|
|
364
|
|
|
|
21.3
|
%
|
Operating
expenses
|
|
|
1,102
|
|
|
|
15.0
|
%
|
|
|
1,002
|
|
|
|
14.4
|
%
|
|
|
100
|
|
|
|
10.0
|
%
|
Property
taxes
|
|
|
729
|
|
|
|
10.0
|
%
|
|
|
648
|
|
|
|
9.3
|
%
|
|
|
81
|
|
|
|
12.5
|
%
|
Management company
indirect
|
|
|
176
|
|
|
|
2.4
|
%
|
|
|
191
|
|
|
|
2.7
|
%
|
|
|
(15)
|
|
|
|
-7.9
|
%
|
Corporate
expense
|
|
|
339
|
|
|
|
4.6
|
%
|
|
|
241
|
|
|
|
3.4
|
%
|
|
|
98
|
|
|
|
40.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
operations
|
|
|
4,417
|
|
|
|
60.3
|
%
|
|
|
3,789
|
|
|
|
54.3
|
%
|
|
|
628
|
|
|
|
16.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
$
|
2,906
|
|
|
|
39.7
|
%
|
|
|
3,185
|
|
|
|
45.7
|
%
|
|
|
(279)
|
|
|
|
-8.8
|
%
|
Mining Royalty Lands
Segment:
|
|
|
|
Three months ended
September 30
|
(dollars in
thousands)
|
|
2016
|
|
%
|
|
2015
|
|
%
|
|
|
|
|
|
|
|
|
|
Mining Royalty and
rents
|
|
$
|
2,014
|
|
|
|
98.9
|
%
|
|
|
1,650
|
|
|
|
98.2
|
%
|
Revenue-reimbursements
|
|
|
23
|
|
|
|
1.1
|
%
|
|
|
30
|
|
|
|
1.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
|
|
2,037
|
|
|
|
100.0
|
%
|
|
|
1,680
|
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation,
depletion and amortization
|
|
|
24
|
|
|
|
1.2
|
%
|
|
|
33
|
|
|
|
2.0
|
%
|
Operating
expenses
|
|
|
40
|
|
|
|
2.0
|
%
|
|
|
71
|
|
|
|
4.2
|
%
|
Property
taxes
|
|
|
58
|
|
|
|
2.8
|
%
|
|
|
65
|
|
|
|
3.9
|
%
|
Corporate
expense
|
|
|
49
|
|
|
|
2.4
|
%
|
|
|
256
|
|
|
|
15.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
operations
|
|
|
171
|
|
|
|
8.4
|
%
|
|
|
425
|
|
|
|
25.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
$
|
1,866
|
|
|
|
91.6
|
%
|
|
|
1,255
|
|
|
|
74.7
|
%
|
Land Development and
Construction Segment:
|
|
|
|
Three months ended
September 30
|
|
(dollars in
thousands)
|
|
2016
|
|
2015
|
|
Change
|
|
|
|
|
|
|
|
|
|
Rental
revenue
|
|
$
|
284
|
|
|
|
116
|
|
|
|
168
|
|
|
Revenue-reimbursements
|
|
|
132
|
|
|
|
129
|
|
|
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
|
|
416
|
|
|
|
245
|
|
|
|
171
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation,
depletion and amortization
|
|
|
65
|
|
|
|
72
|
|
|
|
(7)
|
|
|
Operating
expenses
|
|
|
3
|
|
|
|
49
|
|
|
|
(46)
|
|
|
Property
taxes
|
|
|
300
|
|
|
|
407
|
|
|
|
(107)
|
|
|
Management company
indirect
|
|
|
243
|
|
|
|
228
|
|
|
|
15
|
|
|
Corporate
expense
|
|
|
268
|
|
|
|
141
|
|
|
|
127
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
operations
|
|
|
879
|
|
|
|
897
|
|
|
|
(18)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
loss
|
|
$
|
(463)
|
|
|
|
(652)
|
|
|
|
189
|
|
|
Asset Management
Segment:
|
|
|
|
Years Ended September
30
|
|
|
|
|
|
(dollars in
thousands)
|
|
2016
|
|
%
|
|
2015
|
|
%
|
|
Change
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental
revenue
|
|
$
|
23,795
|
|
|
|
82.8
|
%
|
|
$
|
22,946
|
|
|
|
83.2
|
%
|
|
$
|
849
|
|
|
|
3.7
|
%
|
Revenue-reimbursements
|
|
|
4,944
|
|
|
|
17.2
|
%
|
|
|
4,624
|
|
|
|
16.8
|
%
|
|
|
320
|
|
|
|
6.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
|
|
28,739
|
|
|
|
100.0
|
%
|
|
|
27,570
|
|
|
|
100.0
|
%
|
|
|
1,169
|
|
|
|
4.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation,
depletion and amortization
|
|
|
7,689
|
|
|
|
26.8
|
%
|
|
|
6,963
|
|
|
|
25.3
|
%
|
|
|
726
|
|
|
|
10.4
|
%
|
Operating
expenses
|
|
|
4,145
|
|
|
|
14.4
|
%
|
|
|
3,933
|
|
|
|
14.3
|
%
|
|
|
212
|
|
|
|
5.4
|
%
|
Property
taxes
|
|
|
2,718
|
|
|
|
9.5
|
%
|
|
|
2,651
|
|
|
|
9.6
|
%
|
|
|
67
|
|
|
|
2.5
|
%
|
Management company
indirect
|
|
|
813
|
|
|
|
2.8
|
%
|
|
|
735
|
|
|
|
2.7
|
%
|
|
|
78
|
|
|
|
10.6
|
%
|
Corporate
expense
|
|
|
1,591
|
|
|
|
5.5
|
%
|
|
|
1,248
|
|
|
|
4.4
|
%
|
|
|
343
|
|
|
|
27.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
operations
|
|
|
16,956
|
|
|
|
59.0
|
%
|
|
|
15,530
|
|
|
|
56.3
|
%
|
|
|
1,426
|
|
|
|
9.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
$
|
11,783
|
|
|
|
41.0
|
%
|
|
$
|
12,040
|
|
|
|
43.7
|
%
|
|
$
|
(257)
|
|
|
|
-2.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mining Royalty Lands
Segment:
|
|
|
|
Years Ended September
30
|
(dollars in
thousands)
|
|
2016
|
|
%
|
|
2015
|
|
%
|
|
|
|
|
|
|
|
|
|
Mining Royalty and
rents
|
|
$
|
7,443
|
|
|
|
98.8
|
%
|
|
|
5,999
|
|
|
|
98.4
|
%
|
Revenue-reimbursements
|
|
|
90
|
|
|
|
1.2
|
%
|
|
|
95
|
|
|
|
1.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
|
|
7,533
|
|
|
|
100.0
|
%
|
|
|
6,094
|
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation,
depletion and amortization
|
|
|
104
|
|
|
|
1.4
|
%
|
|
|
133
|
|
|
|
2.2
|
%
|
Operating
expenses
|
|
|
165
|
|
|
|
2.2
|
%
|
|
|
251
|
|
|
|
4.1
|
%
|
Property
taxes
|
|
|
235
|
|
|
|
3.1
|
%
|
|
|
232
|
|
|
|
3.8
|
%
|
Corporate
expense
|
|
|
231
|
|
|
|
3.1
|
%
|
|
|
1,322
|
|
|
|
21.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
operations
|
|
|
735
|
|
|
|
9.8
|
%
|
|
|
1,938
|
|
|
|
31.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
$
|
6,798
|
|
|
|
90.2
|
%
|
|
$
|
4,156
|
|
|
|
68.2
|
%
|
Land Development and
Construction Segment:
|
|
|
|
Twelve months ended
September 30
|
|
(dollars in
thousands)
|
|
2016
|
|
2015
|
|
Change
|
|
|
|
|
|
|
|
|
|
Rental
revenue
|
|
$
|
662
|
|
|
|
464
|
|
|
|
198
|
|
|
Revenue-reimbursements
|
|
|
523
|
|
|
|
518
|
|
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
|
|
1,185
|
|
|
|
982
|
|
|
|
203
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation,
depletion and amortization
|
|
|
258
|
|
|
|
282
|
|
|
|
(24)
|
|
|
Operating
expenses
|
|
|
314
|
|
|
|
425
|
|
|
|
(111)
|
|
|
Environmental
remediation recovery
|
|
|
(1,000)
|
|
|
|
—
|
|
|
|
(1,000)
|
|
|
Property
taxes
|
|
|
1,522
|
|
|
|
1,560
|
|
|
|
(38)
|
|
|
Management company
indirect
|
|
|
1,031
|
|
|
|
912
|
|
|
|
119
|
|
|
Corporate
expense
|
|
|
1,258
|
|
|
|
737
|
|
|
|
521
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
operations
|
|
|
3,383
|
|
|
|
3,916
|
|
|
|
(533)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
loss
|
|
$
|
(2,198)
|
|
|
|
(2,934)
|
|
|
|
736
|
|
|
Non-GAAP Financial Measures.
To supplement the financial results presented in accordance with
GAAP, FRP presents certain non-GAAP financial measures within the
meaning of Regulation G promulgated by the Securities and Exchange
Commission. The non-GAAP financial measures included in this
quarterly report are adjusted operating profit and net operating
income (NOI). FRP uses these non-GAAP financial measures to analyze
its continuing operations and to monitor, assess, and identify
meaningful trends in its operating and financial performance. These
measures are not, and should not be viewed as, substitutes for GAAP
financial measures.
Post Spin-off we are reporting any net gain/(loss) from the
transportation business as "discontinued operations" and we
currently have no other discontinued operations being
reported. GAAP accounting rules do not allow corporate
overhead expenses to be allocated to a discontinued operation of
the Company; thus, those corporate expenses attributable to the
transportation business prior to the spin-off are charged to the
Company as part of continuing operations.
Adjusted Operating Profit
Adjusted operating profit excludes the impact of the corporate
expense not allocated to discontinued operations and the
environmental remediation recovery. Adjusted operating profit is
presented to provide additional perspective on underlying trends in
FRP's core operating results. A reconciliation between operating
profit and adjusted operating profit is as follows:
Adjusted
Operating Profit
|
|
Twelve months
ended
|
|
|
|
|
|
|
|
September
30,
|
|
|
|
|
|
|
|
2016
|
|
2015
|
|
Change
|
|
%
|
|
Operating
profit
|
|
$
|
16,383
|
|
|
|
12,181
|
|
|
|
4,202
|
|
|
|
34.5
|
%
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Environmental remediation
recovery
|
|
|
(1,000)
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
Corporate
costs not allocated to discontinued operations
|
|
|
—
|
|
|
|
1,081
|
|
|
|
|
|
|
|
|
|
Adjusted Operating
profit
|
|
$
|
15,383
|
|
|
|
13,262
|
|
|
|
2,121
|
|
|
|
16.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Operating Income
Reconciliation
|
Quarter ended 9/30/16
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset
|
|
|
Land
|
|
|
Mining
|
|
|
Unallocated
|
|
|
FRP
|
|
|
|
Management
|
|
|
Development
|
|
|
Royalties
|
|
|
Corporate
|
|
|
Holdings
|
|
|
|
Segment
|
|
|
Segment
|
|
|
Segment
|
|
|
Expenses
|
|
|
Totals
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
1,592
|
|
|
(758)
|
|
|
1,123
|
|
|
—
|
|
|
1,957
|
|
|
Income Tax
Allocation
|
1,039
|
|
|
(495)
|
|
|
734
|
|
|
—
|
|
|
1,278
|
|
|
Inc. from continuing
operations before income taxes
|
2,631
|
|
|
(1,253)
|
|
|
1,857
|
|
|
—
|
|
|
3,235
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease
intangible rents
|
4
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
Plus:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on
investment land sold
|
1
|
|
|
148
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized
rents
|
139
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
Equity in loss
of Joint Venture
|
—
|
|
|
642
|
|
|
|
|
|
|
|
|
|
|
|
Interest
Expense
|
274
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation/Amortization
|
2,071
|
|
|
65
|
|
|
|
|
|
|
|
|
|
|
|
Management Co.
Indirect
|
176
|
|
|
243
|
|
|
|
|
|
|
|
|
|
|
|
Allocated
Corporate Expenses
|
339
|
|
|
267
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Operating
Income
|
5,627
|
|
|
112
|
|
|
|
|
|
|
|
|
|
|
|
Net Operating Income
Reconciliation
|
Year ended 9/30/16
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset
|
|
|
Land
|
|
|
Mining
|
|
|
Unallocated
|
|
|
FRP
|
|
|
|
Management
|
|
|
Development
|
|
|
Royalties
|
|
|
Corporate
|
|
|
Holdings
|
|
|
|
Segment
|
|
|
Segment
|
|
|
Segment
|
|
|
Expenses
|
|
|
Totals
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
6,188
|
|
|
1,738
|
|
|
4,098
|
|
|
—
|
|
|
12,024
|
|
|
Income Tax
Allocation
|
4,041
|
|
|
1,134
|
|
|
2,676
|
|
|
—
|
|
|
7,851
|
|
|
Inc. from continuing
operations before income taxes
|
10,229
|
|
|
2,872
|
|
|
6,774
|
|
|
—
|
|
|
19,875
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gains on
investment land sold
|
8
|
|
|
6,006
|
|
|
|
|
|
|
|
|
|
|
|
Lease
intangible rents
|
27
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
Other
income
|
—
|
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
Plus:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized
rents
|
95
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
Equity in loss
of Joint Venture
|
—
|
|
|
938
|
|
|
|
|
|
|
|
|
|
|
|
Interest
Expense
|
1,562
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation/Amortization
|
7,689
|
|
|
258
|
|
|
|
|
|
|
|
|
|
|
|
Management Co.
Indirect
|
813
|
|
|
1,031
|
|
|
|
|
|
|
|
|
|
|
|
Allocated
Corporate Expenses
|
1,591
|
|
|
1,257
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Operating
Income
|
21,944
|
|
|
348
|
|
|
|
|
|
|
|
|
|
|
|
Net Operating Income
Reconciliation
|
Quarter Ended 9/30/15
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset
|
|
|
Land
|
|
|
Mining
|
|
|
Unallocated
|
|
|
FRP
|
|
|
|
Management
|
|
|
Development
|
|
|
Royalties
|
|
|
Corporate
|
|
|
Holdings
|
|
|
|
Segment
|
|
|
Segment
|
|
|
Segment
|
|
|
Expenses
|
|
|
Totals
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
1,643
|
|
|
(332)
|
|
|
760
|
|
|
—
|
|
|
2,071
|
|
|
Income Tax
Allocation
|
1,051
|
|
|
(213)
|
|
|
485
|
|
|
—
|
|
|
1,323
|
|
|
Inc. from continuing
operations before income taxes
|
2,694
|
|
|
(545)
|
|
|
1,245
|
|
|
—
|
|
|
3,394
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease
intangible rents
|
14
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
Equity in gain
of Joint Venture
|
—
|
|
|
121
|
|
|
|
|
|
|
|
|
|
|
|
Plus:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on
investment land sold
|
—
|
|
|
14
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized
rents
|
7
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
Interest
Expense
|
491
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation/Amortization
|
1,707
|
|
|
72
|
|
|
|
|
|
|
|
|
|
|
|
Management Co.
Indirect
|
191
|
|
|
228
|
|
|
|
|
|
|
|
|
|
|
|
Allocated
Corporate Expenses
|
241
|
|
|
141
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Operating Income
(loss)
|
5,317
|
|
|
(211)
|
|
|
|
|
|
|
|
|
|
|
|
Net Operating Income
Reconciliation
|
Year ended 9/30/15
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset
|
|
|
Land
|
|
|
Mining
|
|
|
Unallocated
|
|
|
FRP
|
|
|
|
Management
|
|
|
Development
|
|
|
Royalties
|
|
|
Corporate
|
|
|
Holdings
|
|
|
|
Segment
|
|
|
Segment
|
|
|
Segment
|
|
|
Expenses
|
|
|
Totals
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
6,146
|
|
|
(1,874)
|
|
|
2,480
|
|
|
(659)
|
|
|
6,093
|
|
|
Income Tax
Allocation
|
3,930
|
|
|
(1,199)
|
|
|
1,586
|
|
|
(422)
|
|
|
3,895
|
|
|
Inc. from continuing
operations before income taxes
|
10,076
|
|
|
(3,073)
|
|
|
4,066
|
|
|
(1,081)
|
|
|
9,988
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease
intangible rents
|
53
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
Plus:
Loss on
investment land sold
|
—
|
|
|
34
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized
rents
|
110
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
Equity in loss
of Joint Venture
|
—
|
|
|
105
|
|
|
|
|
|
|
|
|
|
|
|
Interest
Expense
|
1,964
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation/Amortization
|
6,963
|
|
|
282
|
|
|
|
|
|
|
|
|
|
|
|
Management Co.
Indirect
|
735
|
|
|
912
|
|
|
|
|
|
|
|
|
|
|
|
Allocated
Corporate Expenses
|
1,248
|
|
|
737
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Operating Income
(loss)
|
21,043
|
|
|
(1,003)
|
|
|
|
|
|
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/frp-holdings-inc-nasdaq-frph-announces-results-for-the-fourth-quarter-and-fiscal-year-ended-september-30-2016-300367619.html
SOURCE FRP Holdings, Inc.