Patriot Transportation Holding, Inc. Announces Results for the Second Quarter and Fiscal Year 2021

JACKSONVILLE, FL / ACCESSWIRE / May 13, 2021 / Patriot Transportation Holding, Inc. (NASDAQ:PATI):

Second Quarter Operating Results

The Company reported net income of $484,000, or $.14 per share for the quarter ended March 31, 2021, compared to a net loss of ($401,000), or ($.12) per share, in the same quarter last year. The quarter's net income included $1,037,000, or $.31 per share, from gains on real estate sales net of income taxes.

Total revenues for the quarter were $19,728,000, down $3,799,000 from the same quarter last year primarily resulting from the downsizing of one customer account ($1,488,000) and the closure of our Wilmington terminal in April, 2020 ($685,000). The remainder of the revenue variance is primarily attributable to a smaller driver force. Transportation revenues (excluding fuel surcharges) were $18,224,000, down $3,336,000 or 15%. Revenue miles were down 1,417,000, or 19%, over the same quarter last year. Transportation revenue per mile was up $.13, or 4.5%, due to an improved business mix and rate increases. Fuel surcharge revenue was $1,504,000, down $463,000 from the same quarter last year.

Compensation and benefits decreased $1,694,000, mainly due to lower company miles, as well as the elimination of minimum driver pay expense and reductions in non-driver support positions. Gross fuel expense decreased $482,000 as a result of lower company miles. Repairs and tire expense decreased $235,000 due to lower miles this quarter. Insurance and losses decreased $626,000, primarily from lower health care. Depreciation expense was down $168,000 in the quarter as we continue to reduce our fleet size to meet our business levels. SG&A expense was lower by $468,000 resulting from permanent cost reductions. Corporate expense was lower by $125,000 due mainly to lower director stock compensation expense of $116,000, a one-time expense that occurs in the 2nd quarter each year. Gain on sale of land was $1,431,000 due to the sale of our former terminal location in Pensacola, FL. Loss on disposition of assets was $113,000 versus a gain of $328,000 in the same quarter last year due to a single tractor rollover accident requiring the buyout of a leased tractor. During the quarter, we experienced an unfortunate single tractor rollover accident which negatively impacted the quarter by $466,500 through a combination of charges to the Insurance and losses line as well as the loss on disposition of assets. We do not anticipate any further material expenses from this accident.

As a result, operating profit this quarter was $671,000 compared to an operating loss of ($588,000) in the same quarter last year. Excluding the gain on sale of land and the negative impacts of the rollover accident, operating loss was ($293,500). Operating ratio was 96.6 this quarter versus 102.5 the same quarter last year.

First Six Months Operating Results for Fiscal year 2021

The Company reported net income of $262,000, or $.08 per share, compared to a net loss of ($865,000), or ($.26) per share, in the same period last year. The first six months' net income included $1,037,000, or $.31 per share, from gains on real estate sales net of income taxes.

Total revenues for the period were $39,956,000, down $8,380,000 from the same period last year, of which $3,175,000 resulted from the downsizing of one customer account and $1,352,000 from the closure of our Wilmington terminal in April, 2020. The remainder of the revenue variance was primarily attributable to the declining driver count and the impacts of COVID-19 prior to demand spiking in mid-February as the Country started to reopen. Transportation revenues (excluding fuel surcharges) were $37,441,000, down $6,718,000 or 15%. Revenue miles were down 2,927,000 miles, or 19%, over the same period last year. Transportation revenue per mile was up $.14, or 4.9%, due to an improved business mix and rate increases. Fuel surcharge revenue was $2,515,000, down $1,662,000 from the same period last year.

Compensation and benefits decreased $3,641,000, mainly due to lower company miles, as well as the elimination of minimum driver pay expense and reductions in non-driver support positions. Gross fuel expense decreased $1,847,000 as a result of lower company miles and a lower cost per gallon. Repairs and tire expense decreased $605,000 due to lower miles this quarter. Insurance and losses decreased $1,273,000, primarily from lower health care claims and workers' compensation expense somewhat offset by the single tractor rollover accident and several product mixes. Depreciation expense was down $373,000 as we continue to reduce our fleet size to meet our business levels. SG&A expense was lower by $813,000 resulting from permanent cost reductions. Corporate expenses were down $261,000 due mainly to lower compensation expense. Gain on sale of land was $1,431,000 due to the sale of our former terminal location in Pensacola, FL. Loss on disposition of assets was $199,000 primarily due to the write off of the equipment involved in the single tractor rollover accident versus a gain of $450,000 in the same period last year.

As a result, operating income was $370,000 compared to an operating loss of ($1,312,000) in the same period last year. Excluding the gain on sale of land and the negative impacts of the rollover accident, operating loss was ($594,500). Operating ratio was 99.1 in the first six months versus 102.7 the same period last year.

Summary and Outlook

While most of the revenue declines this quarter were anticipated due to the known business reductions with a single customer, there was a portion that was not as we continued to struggle with a declining driver count due primarily to high driver turnover and a tightening hiring market. We ended the quarter down ~25 drivers from where we started the quarter. In addition, Florida and Georgia began reopening quickly starting in the middle of February and we have experienced an intense level of customer demand ever since. We have put a lot of emphasis on turnover and finding ways to improve over the past several quarters. However, due to the intensity in the marketplace today, both in demand for our services and the race to hire drivers across the entire transportation industry, we determined it was imperative to implement a material increase on overall driver pay across all segments of our business. During the month of April, we increased several aspects of our compensation package to reward and retain our existing drivers for their continued efforts and to entice new drivers to apply and remain as long-term employees. If we are successful, it will allow us to grow back our driver force to meet the extremely high demand in the marketplace and improve our profitability. We do expect our customers to assist in offsetting these added costs and are working closely with them to form a stronger strategic alliance with higher rates and longer term contracts.

Our balance sheet remains solid with $9.4 million of cash and cash equivalents as of March 31, 2021, and no outstanding debt. We do not anticipate replacing any equipment until the first quarter of fiscal year 2022 putting our current planned capital expenditures at ~$1,000,000 for fiscal year 2021 and then returning to a more normalized capex spend in FY 2022. The Tampa property remains under contract in the 120-150 day "free look" Inspection Period with an outside closing date of September 19, 2021 at a sales price of $9,500,000.

Impact of the COVID-19 Pandemic

The COVID-19 pandemic continues to have some impact on demand for oil and petroleum products in certain markets but, mainly due to the rollout of the vaccine, that impact was far less in this quarter than had been experienced since the beginning of the pandemic. As an essential business, we have continued to operate throughout the pandemic in accordance with CDC guidance and orders issued by state and local authorities.

Conference Call

The Company will host a conference call on May 13, 2021 at 3:00 PM (EST). Analysts, shareholders and other interested parties may access the teleconference live by calling 1-877-407-0778 domestic or international at 1-201-689-8565. Computer audio live streaming is available via the Internet through the Company's website at www.patriottrans.com at the Investor Relations tab or https://www.webcaster4.com/Webcast/Page/2058/41212. An audio replay will be available for sixty (60) days following the conference call by dialing toll free 1-877-481-4010 domestic or international 1-919-882-2331 then enter pass code 41212. An audio archive can be accessed through the Company's website at www.patriottrans.com on the Investor Relations tab or at https://www.webcaster4.com/Webcast/Page/2058/41212.

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 impact of the COVID-19 pandemic on our revenues, operations and financial condition; 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  SIX MONTHS ENDED 
  MARCH 31,  MARCH 31, 
  2021  2020  2021  2020 
Revenues:                 
Transportation revenues $18,224   21,560  $37,441   44,159 
Fuel surcharges  1,504   1,967   2,515   4,177 
Total revenues  19,728   23,527   39,956   48,336 
                 
Cost of operations:                
Compensation and benefits  8,687   10,381   17,738   21,379 
Fuel expenses  2,464   2,946   4,562   6,409 
Repairs & tires  1,336   1,571   2,717   3,322 
Other operating  755   975   1,568   1,931 
Insurance and losses  1,929   2,555   4,051   5,324 
Depreciation expense  1,671   1,839   3,416   3,789 
Rents, tags & utilities  703   753   1,399   1,503 
Sales, general & administrative  2,141   2,609   4,277   5,090 
Corporate expenses  689   814   1,090   1,351 
Gain on sale of land  (1,431)  -   (1,431)  - 
Loss (gain) on disposition of PP&E  113   (328)  199   (450) 
Total cost of operations  19,057   24,115   39,586   49,648 
                 
Total operating profit (loss)  671   (588)  370   (1,312) 
                 
Interest income and other  1   42   3   127 
Interest expense  (7)  (7)  (15)  (15) 
                 
Income (loss) before income taxes  665   (553)  358   (1,200) 
Provision for (benefit from) income taxes  181   (152)  96   (335) 
                 
Net income (Loss) $484   (401) $262   (865) 
                 
Reclassification adjust for net investment gains realized in net income  -   -   -   (5) 
                 
Comprehensive income (loss) $484   (401) $262   (870) 
                 
Earnings per common share:                
Net Income (loss) -                
Basic $0.14   (0.12)  0.08   (0.26) 
Diluted $0.14   (0.12)  0.08   (0.26) 
                 
 Number of shares (in thousands) used in computing:       
-basic earnings per common share  3,393   3,354   3,385   3,352 
-diluted earnings per common share  3,394   3,354   3,390   3,352 

 

PATRIOT TRANSPORTATION HOLDING, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands) (Unaudited)

  March 31,  September 30, 
Assets 2021  2020 
Current assets:      
Cash and cash equivalents $9,396   15,962 
Accounts receivable (net of allowance for        
doubtful accounts of $76 and $87, respectively)  4,941   5,005 
Inventory of parts and supplies  935   903 
Prepaid tires on equipment  1,344   1,414 
Prepaid taxes and licenses  261   522 
Prepaid insurance  1,971   2,444 
Prepaid expenses, other  328   291 
Total current assets  19,176   26,541 
         
Property and equipment, at cost  80,819   83,204 
Less accumulated depreciation  54,053   52,805 
Net property and equipment  26,766   30,399 
         
Operating lease right-of-use assets  2,444   2,964 
Goodwill  3,637   3,637 
Intangible assets, net  857   957 
Other assets, net  164   171 
Total assets $53,044   64,669 
         
Liabilities and Shareholders' Equity        
Current liabilities:        
Accounts payable $2,064   2,679 
Federal and state taxes payable  730   284 
Accrued payroll and benefits  2,745   3,156 
Accrued insurance  1,042   1,210 
Accrued liabilities, other  1,508   1,281 
Operating lease liabilities, current portion  1,065   1,065 
Total current liabilities  9,154   9,675 
         
Operating lease liabilities, less current portion  1,525   2,073 
Deferred income taxes  4,069   5,087 
Accrued insurance  1,886   1,886 
Other liabilities  891   900 
Total liabilities  17,525   19,621 
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; 3,402,146 and 3,377,279 shares issued        
and outstanding, respectively)  340   338 
Capital in excess of par value  39,009   38,670 
Retained earnings  (3,935)  5,935 
Accumulated other comprehensive income, net  105   105 
Total shareholders' equity  35,519   45,048 
Total liabilities and shareholders' equity $53,044   64,669 

CONTACT:

Matt McNulty
Chief Financial Officer, 904-858-9100

SOURCE: Patriot Transportation Holding, Inc.



View source version on accesswire.com:
https://www.accesswire.com/647223/Patriot-Transportation-Holding-Inc-Announces-Results-for-the-Second-Quarter-and-Fiscal-Year-2021

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.