Patriot Transportation reports 4Q net income up, full-year profit down

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Patriot Transportation Holding on Wednesday, Dec. 3, reported net income of $3.163 million in the fourth quarter of fiscal 2008, an increase of $841,000 or 36.2 percent compared to net income of $2.322 million in the same period last year. Net income for fiscal year ended Sept. 30 was $7.968 million, a decrease of $1.537 million compared to net income of $9.505 million for the same period last year.

Results for fiscal 2008 benefited from a gain on condemnation of land of $1.916 million, net of income taxes, but was impacted adversely by the accrual of retirement benefits of $1.541 million, net of income tax benefits, for the Jacksonville, Fla.-based company’s previous president and chief executive officer, whose retirement was effective Feb. 6. The transportation segment was impacted negatively in fiscal 2008 by reduced demand for flatbed trucking services.

For the fourth quarter of fiscal 2008, consolidated revenues were $45.7 million, an increase of $6.329 million or 16.1 percent over the same quarter last year. Transportation segment revenues were $39.589 million, an increase of $6.066 million. Revenue miles were down 3.4 percent due to reduced loads in the flatbed portion of the transportation segment. Excluding fuel surcharges, revenue per mile increased 8.8 percent.

Consolidated gross profit was $8.192 million, an increase of $1.461 million or 21.7 percent compared to $6.731 million. Gross profit in the transportation segment increased $1.913 million or 57.4 percent as increased revenue per mile and a decreasing fuel cost more than offset reduced demand for flatbed trucking services.

For the fiscal year 2008, consolidated revenues were $172.049 million, an increase of $17.767 million or 11.5 percent over the same period last year. Transportation revenues were $147.236 million, an increase of $15.294 million or 11.6 percent. Revenue miles were down 3.2 percent. Decreased construction material freight demand from the downturn in housing pushed revenue miles down in the flatbed operation. Excluding fuel surcharges, revenue per mile increased 5.8 percent.

Consolidated gross profit was $29.096 million in fiscal 2008, a decrease of $1.311 million or 4.3 percent compared to $30.407 million in 2007. Gross profit in the transportation segment decreased $1.494 million or 8.2 percent due to an increase in cost of operations and reduced revenue miles but was assisted by increased revenue per mile.

Patriot says that during the fourth quarter of fiscal 2008, increased revenue per mile in the transportation segment and a decreasing fuel cost more than offset reduced demand for flatbed trucking services. The flatbed portion of the transportation segment continues to face poor freight demand from the housing downturn, according to the company.