Patriot Transn Hldg Stock Price, News & Analysis

Patriot Transportation Holding, Inc. (NASDAQ: PATI) operates as a regional tank truck carrier. The company conducts its business through its wholly-owned subsidiary, Florida Rock & Tank Lines, Inc. Patriot specializes in the transportation of petroleum products, dry bulk commodities, and liquid chemicals across the southeastern United States. The company operates terminals located in Florida, Georgia, Alabama, South Carolina, North Carolina, and Tennessee.

As of September 30, 2016, Patriot managed a fleet of 468 tractors and 561 tank trailers from 21 terminals and nine satellite locations. They haul liquid petroleum products such as gas and diesel fuel from large-scale storage facilities to retail outlets like convenience stores, truck stops, and fuel depots. Their dry bulk commodities include cement, lime, and various industrial powder products. The company also provides delivery services for liquid chemicals from distribution or manufacturing facilities to end users.

Patriot recently announced its fiscal 2023 third quarter earnings, revealing a net income of $526,000, or $.15 per share. The company experienced an increase in revenue miles by 7.7% and operating revenues of $24.2 million, up $1.3 million from the same quarter last year. This boost was attributed to higher miles, rate increases, and an improved business mix.

In significant corporate news, Patriot is set to be acquired by United Petroleum Transports, Inc. (UPT) for $16.26 per share in cash, valuing the transaction at approximately $65.9 million. This merger aims to create a top five bulk tank carrier by revenue in the southern United States, with combined revenues exceeding $200 million. The combined entity will operate over 1,000 drivers across 11 states with more than 30 terminals.

Patriot's commitment to safety and quality customer service has been a significant factor in its enduring market presence. The company operates with one of the most modern tank fleets in the industry, including over 300 tractors and 400 trailers. Florida Rock serves as a premier bulk tank carrier, especially known for its petroleum-related product hauling services.

Looking forward, Patriot will continue to operate under the Florida Rock & Tank Lines brand post-merger, leveraging the combined strength, high-quality employees, and a large customer base to strategically grow the business further. This merger underscores Patriot's strategic intention to expand its network and capitalize on new and existing market opportunities.