Patriot Transportation loses customers

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Updated Jan 10, 2010

Patriot Transportation Holding Inc. announced today, Jan. 6, that its transportation group has been unsuccessful in renewing certain contracts with significant customers recently. The Jacksonville, Fla.-based company says it will provide transitional services to the customers, who were lost to competing carriers due to lower pricing. For the fiscal year ending Sept. 30, the revenue from these customers was about $10 million, or about 11.0 percent of transportation group revenue, Patriot says.

The company’s transportation business is conducted through Florida Rock & Tank Lines Inc., a Southeastern-based hauler of liquid and dry bulk commodities. “While Florida Rock & Tank Lines Inc. continues to face an intensely competitive environment, management is committed to securing replacement business at rates that produce satisfactory returns for our shareholders,” the company says.

Patriot on Nov. 30 reported income from continuing operations of $2,056,000 in the fourth quarter of fiscal 2009, a decrease of 36.1 percent compared to $3,216,000 in the same period last year. Income from continuing operations for the fiscal year ended Sept. 30 was $7,908,000, a decrease of 11.3 percent compared to $8,919,000 for the same period last year.

For the fourth quarter, transportation segment revenues were $22,312,000, a decrease of $6,360,000. Gross profit in the transportation segment increased $433,000 or 8.4 percent due to reduced vehicle accident costs and cost management that offset the reduced miles driven. In August 2009, the company sold its flatbed trucking company, SunBelt Transport Inc.; the after-tax loss from this discontinued operation was $1,057,000 compared to $53,000.

For the fiscal year, transportation revenues were $91,420,000, a decrease of $13,667,000 or 13.0 percent. Gross profit in the transportation segment increased $1,353,000 or 7.6 percent due to reduced vehicle accident costs, higher gains on equipment sales, increased revenue per mile and cost management offsetting the reduced miles driven. The after-tax loss from discontinued operations was $4,155,000 compared to $951,000. Fiscal 2009 included a loss on the sale of $2,316,000 after-tax.