Patriot Transportation reports higher 3Q net income, revenue

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Patriot Transportation Holding on Wednesday, Aug. 1, reported net income for the third quarter of fiscal 2007 of $2.43 million, an increase of $582,000 or 31.6 percent compared to $1.84 million for the same period last year. Net income for the first nine months of fiscal 2007 was $7.18 million, an increase of $1.74 million or 31.9 percent compared to $5.45 million for the same period last year.

Net income for the third quarter and nine months of fiscal 2006 was impacted adversely by $649,000 of vacation expense, net of income tax benefits, that was not accrued previously. Results for the first three quarters of fiscal 2007 were assisted by lower expense for transportation insurance reserves and losses of $1.04 million for the first nine months ($636,000 net of income taxes). This is a result of continued trends in recent years of safe operation, lack of severe accidents and favorable claim development, according to the Jacksonville, Fla.-based company.

For the third quarter of fiscal 2007, consolidated revenues were $39.63 million, an increase of $2.02 million or 5.4 percent over the same quarter last year. Transportation segment revenues were $34.11 million in the third quarter of 2007, an increase of $1.67 million over the same quarter last year. Excluding fuel surcharges, revenue per mile was the same quarter-over-quarter, primarily reflecting a trend in the company’s flatbed operation of decreasing freight demand, as well as corresponding pricing softness from the housing downturn and attendant lower demand for construction materials. Revenue miles in the current quarter were up 5.8 percent compared to the third quarter of 2006, primarily from improved driver manning and higher tractor count.

Consolidated gross profit was $7.79 million in the third quarter of fiscal 2007 compared to $7.34 million in the same period last year, an increase of 6.2 percent. Gross profit in the transportation segment increased $474,000 or 11.0 percent due to the inclusion of $712,000 of vacation expense in the 2006 quarter, partially offset by lower fuel surcharge revenue as a percent of total revenues in the 2007 quarter.

For the first nine months of fiscal 2007, consolidated revenues were $114.91 million, an increase of $6.32 million or 5.8 percent over the same period last year. Transportation segment revenues were $98.42 million in the first nine months of 2007, an increase of $5.34 million over the same period last year. Excluding fuel surcharges, revenue per mile was the same year to year, reflecting a trend of decreasing freight demand, as well as pricing softness from the downturn in housing and attendant lower demand for construction materials. Revenue miles in the first nine months were up 6.7 percent compared to the same period in 2006, primarily from improved driver manning and higher tractor count.

Consolidated gross profit was $23.68 million in the first nine months of fiscal 2007 compared to $20.96 million in the same period last year, an increase of 13.0 percent. Gross profit in the transportation segment increased $2.36 million or 18.7 percent due to lower insurance reserves and loss expense and increased revenue miles.