Patriot Transportation Holding reports 2Q net income up 125%

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Patriot Transportation Holding on Wednesday, May 6, reported net income of $1.41 million in the second quarter of fiscal 2009, an increase of $783,000 or 125 percent compared to net income of $626,000 in the same period last year. Net income for the first six months of fiscal 2009 was $3.16 million, an increase of $1.13 million or 55.4 percent compared to net income of $2.03 million for the same period last year.

Increased revenue per mile, lower fuel expenses and lower operating expenses in the transportation segment offset continued reduced demand for flatbed trucking services. Net income for the first six months of fiscal 2008 was impacted adversely by the accrual of retirement benefits of $1.54 million, net of income tax benefits, for the company’s former president and chief executive officer, whose retirement was effective Feb. 6, 2008.

For the second quarter of fiscal 2009, consolidated revenues were $33.23 million, a decrease of $7.86 million or 19.1 percent over the same quarter last year. Transportation segment revenues were $27.0 million, a decrease of $7.76 million. Revenue miles were down 20.1 percent due to reduced loads in the flatbed portion of the transportation segment and reduced dry bulk tank hauling. Decreased construction material freight demand from the downturn in housing and commercial construction pushed revenue miles down in the flatbed operation. Excluding fuel surcharges, revenue per mile increased 8.2 percent. Fuel surcharge revenue decreased $3.95 million.

For the first six months of fiscal 2009, consolidated revenues were $71.16 million, a decrease of $9.13 million or 11.4 percent over the same period last year. Transportation segment revenues were $59.05 million, a decrease of $8.61 million. Revenue miles were down 16.1 percent due to reduced loads in the flatbed portion of the transportation segment and reduced dry bulk tank hauling. Decreased construction material freight demand from the downturn in housing and commercial construction pushed revenue miles down in the flatbed operation. Excluding fuel surcharges, revenue per mile increased 9.8 percent. Fuel surcharge revenue decreased $4.12 million. Consolidated gross profit was $13.82 million, an increase of $1.54 million or 12.6 percent compared to $12.28 million. Gross profit in the transportation segment increased $2.16 million or 36.1 percent due to a sharp decline in fuel costs net of surcharges, higher gains on equipment sales, higher revenues per mile, and cost management offsetting the reduced miles driven.

The Jacksonville, Fla.-based company said the flatbed and dry bulk tank portions of the transportation segment continue to face poor freight demand from the housing and commercial construction downturns. During the first six months of fiscal 2009, increased revenue per mile in the transportation segment and lower fuel expenses offset reduced demand for flatbed trucking services; however, the company said the comparison was to a weak first half of the prior year. Patriot said business picked up in the second half of last year and that comparable increases are not anticipated during the next six months.