Patriot Transportation Holding, Inc. Announces Results for the First Quarter of Fiscal 2017
January 25 2017 - 11:51AM
Patriot Transportation Holding, Inc. (NASDAQ:PATI) --
First Quarter Operating
Results.
The Company reported net income of $912,000, or
$.28 per share (inclusive of $169,000, or $.05 per share, due to a
reduced tax expense in accordance with newly adopted accounting
guidance on stock option exercises), compared to net income of
$1,375,000, or $.42 per share, in the same quarter last year. The
prior year included $1,029,000, or $0.31 per share, of net income
from the settlement of a claim with BP in connection with the 2010
Deepwater Horizon event.
During this first quarter, the overall driver
turnover rate improved as compared to our experience over the past
two years. However, we also saw a decrease in the flow of qualified
applicants causing a reduction of our average driver force down to
670 from 700 in the same quarter last year. As a result, our
revenue miles decreased by 585,000 to 9,851,000 this quarter versus
the same quarter last year.
Total revenues for the quarter were $28,758,000,
down $613,000 from $29,371,000 in the same quarter last year.
Transportation revenues (excluding fuel surcharges) were down
$750,000 to $27,259,000 as a result of the lower revenue miles.
However, as a result of improved pricing and effective utilization
of our equipment, our transportation revenue per mile increased by
3.1% over the same quarter last year. Fuel surcharge revenues were
up $137,000 to $1,499,000.
Compensation and benefits decreased $488,000 due
to $291,000 lower driver training pay and less miles driven.
Insurance and losses were lower by $313,000 versus the same quarter
last year due to the favorable final settlement with our insurance
company of all fiscal 2013 liability and workers compensation
claims combined with lower self insured health claims, accident
repairs and product losses. Depreciation increased $314,000 but was
mostly offset by lower repair and equipment leasing costs as we
continue to buy new tractors to replace leased tractors. Corporate
expense was $341,000 lower than the same quarter last year mainly
due to a $254,000 reduction in professional fees.
As a result, operating profit this quarter was
up $649,000 to $1,248,000 compared to $599,000 in the same quarter
last year. Operating ratio was 95.7 this quarter versus 98.0 in the
same quarter last year.
Summary and Outlook.
The shortage of qualified drivers is the biggest
headwind we face today and is a concern as we head into the
seasonally busier months ahead. We will remain focused on hiring
qualified drivers and are hopeful the applicant flow will improve
as we move past the holidays and into the new year. We continue to
see improvement in our per mile transportation revenue as well as
our net fuel expense following the implementation of more neutral
fuel surcharge tables last year. This year we are implementing
several new technologies which we believe will enhance the driver
experience, improve customer satisfaction and ultimately improve
our bottom line results.
We operate in many of the best markets in the
country and are known in those markets, and beyond, as a top rated
carrier for both safety and customer satisfaction. We are committed
to continuing our focus on safety, retention and customer
satisfaction and are confident that execution of that focus will
enable us to improve our profitability. We plan to maintain a
strong balance sheet as we work to achieve our targeted operating
ratio in the low nineties and double digit returns after tax
returns on capital employed.
Conference Call.
The Company will host a conference call on
Wednesday, January 25, 2017 at 2:00 p.m. (EST). Analysts,
stockholders and other interested parties may access the
teleconference live by calling 1-800-351-6807 (pass code 97338) for
domestic or 1-334-323-7224 (pass code 97338) for international.
Computer audio live streaming is available via the Internet through
the Company’s website at www.patriottrans.com at the Investor
Relations tab. You may click on this link for the live streaming
http://stream.conferenceamerica.com/pth012517. Click on the
following link
http://archive.conferenceamerica.com/archivestream/pth012517.mp3 to
access the archived internet audio replay. A telephonic audio
replay will be available for sixty days following the conference
call and is accessible by dialing toll free 877-919-4059 domestic
or 334-323-0140 international. The passcode of the audio replay is
21419600. 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 short delay until the
archive is available following the conclusion of the conference
call.
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; 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, |
|
|
2016 |
|
2015 |
Revenues: |
|
|
|
|
|
|
|
|
Transportation revenues |
|
$ |
27,259 |
|
|
|
28,009 |
|
Fuel
surcharges |
|
|
1,499 |
|
|
|
1,362 |
|
Total revenues |
|
|
28,758 |
|
|
|
29,371 |
|
|
|
|
|
|
|
|
|
|
Cost of
operations: |
|
|
|
|
|
|
|
|
Compensation and benefits |
|
|
12,084 |
|
|
|
12,572 |
|
Fuel
expenses |
|
|
3,904 |
|
|
|
3,825 |
|
Repairs
& tires |
|
|
1,638 |
|
|
|
1,809 |
|
Other
operating |
|
|
1,034 |
|
|
|
1,090 |
|
Insurance
and losses |
|
|
2,705 |
|
|
|
3,018 |
|
Depreciation expense |
|
|
2,462 |
|
|
|
2,148 |
|
Rents,
tags & utilities |
|
|
863 |
|
|
|
949 |
|
Sales,
general & administrative |
|
|
2,311 |
|
|
|
2,399 |
|
Corporate
expenses |
|
|
617 |
|
|
|
958 |
|
(Gain)
Loss on equipment sales |
|
|
(108 |
) |
|
|
4 |
|
Total cost of
operations |
|
|
27,510 |
|
|
|
28,772 |
|
|
|
|
|
|
|
|
|
|
Total operating
profit |
|
|
1,248 |
|
|
|
599 |
|
|
|
|
|
|
|
|
|
|
BP claim
settlement |
|
|
— |
|
|
|
1,687 |
|
Interest income and
other |
|
|
2 |
|
|
|
3 |
|
Interest expense |
|
|
(32 |
) |
|
|
(35 |
) |
|
|
|
|
|
|
|
|
|
Income before income
taxes |
|
|
1,218 |
|
|
|
2,254 |
|
Provision for income
taxes |
|
|
306 |
|
|
|
879 |
|
|
|
|
|
|
|
|
|
|
Net
income |
|
$ |
912 |
|
|
|
1,375 |
|
|
|
|
|
|
|
|
|
|
Comprehensive
Income |
|
$ |
912 |
|
|
|
1,375 |
|
|
|
|
|
|
|
|
|
|
Earnings per
common share: |
|
|
|
|
|
|
|
|
Net
Income- |
|
|
|
|
|
|
|
|
Basic |
|
|
0.28 |
|
|
|
0.42 |
|
Diluted |
|
|
0.28 |
|
|
|
0.42 |
|
|
|
|
|
|
|
|
|
|
Number of
shares (in thousands)used in computing: |
|
|
|
|
|
|
|
|
-basic earnings
per common share |
|
|
3,290 |
|
|
|
3,273 |
|
-diluted earnings
per common share |
|
|
3,294 |
|
|
|
3,277 |
|
Contact:
John D. Milton, Jr.
Chief Financial Officer
904/858-9100
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