Patriot Transportation Holding, Inc. Announces Results for the Fourth Quarter and Fiscal Year 2023

Rhea-AI Summary

Patriot Transportation Holding, Inc. (NASDAQ:PATI) reported net income of $526,000, or $.15 per share for Q4 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.

Positive

• Increase in net income for Q4 2023 compared to the same quarter last year
• Revenue miles up 7.7% over the same quarter last year
• Operating revenues increased by $1,335,000 from the same quarter last year

Negative

• Net income for fiscal year 2023 decreased compared to the same period last year
• Operating profit for the fiscal year 2023 decreased compared to the same period last year
• The company will not hold an earnings conference call due to the execution of a definitive merger agreement

JACKSONVILLE, FL / ACCESSWIRE / December 6, 2023 / Patriot Transportation Holding, Inc. (NASDAQ:PATI)

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 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.

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

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

SOURCE: Patriot Transportation Holding, Inc.

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FAQ

What is the net income reported for Q4 2023 by Patriot Transportation Holding, Inc. (NASDAQ:PATI)?

Patriot Transportation Holding, Inc. (NASDAQ:PATI) 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.

What was the percentage increase in revenue miles for Q4 2023 compared to the same quarter last year for Patriot Transportation Holding, Inc. (NASDAQ:PATI)?

Revenue miles were up 402,000, or 7.7%, over the same quarter last year.

What were the operating revenues for Q4 2023 for Patriot Transportation Holding, Inc. (NASDAQ:PATI)?

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.

What is the net income reported for the fiscal year 2023 by Patriot Transportation Holding, Inc. (NASDAQ:PATI)?

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.

What was the percentage increase in revenue miles for the fiscal year 2023 compared to the same period last year for Patriot Transportation Holding, Inc. (NASDAQ:PATI)?

Revenue miles were up 579,000, or 2.7%, over the same period last year.

What were the operating revenues for the fiscal year 2023 for Patriot Transportation Holding, Inc. (NASDAQ:PATI)?

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.

Why is the company not holding an earnings 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.