Patriot Transportation Holding, Inc. (NASDAQ:PATI) Q4 2019 Earnings Conference Call - Final Transcript

Dec 04, 2019 • 03:00 pm ET


Patriot Transportation Holding, Inc. (NASDAQ:PATI) Q4 2019 Earnings Conference Call - Final Transcript


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Good day, ladies and gentlemen, and welcome to your Patriot Transportation Holding's Fourth Quarter 2019 Earnings Call. [Operator Instructions]

At this time, it is my pleasure to turn the floor over to Mr. Rob Sandlin, CEO. Sir, the floor is yours.

Robert E. Sandlin

Thank you. Good afternoon and thank you all for being on the call today and for your interest in Patriot Transportation. I am Rob Sandlin, CEO of Patriot Transportation and with me today are Matt McNulty, our Chief Financial Officer; and John Klopfenstein, our Chief Accounting Officer.

Before we get into our results, let me caution you that any statements made during this call that 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 by such forward-looking statements. Additional information regarding these and other risk factors and uncertainties may be found in the Company's filings with the Securities and Exchange Commission.

Now, for our fourth quarter results. Total revenue for the quarter decreased $2,653,000 to $26,128,000, while our transportation revenue decreased by $1,885,000 on a 1,039,000 less miles as we had 18 fewer drivers quarter versus quarter, partly due to our decision to close our Charlotte terminal in late May 2019, which accounted for nearly a $1 million of the revenue decline. Our revenue per mile increased by $0.11 per mile versus last year same quarter due to rate increases. Compensation and benefits decreased by $288,000, mainly due to lower Company miles and increased number of owner-operators and higher training pay.

Depreciation expense decreased by $121,000 on a lower tractor count. While we have effectively rightsized the fleet, we will continue to monitor the driver-to-truck ratio in order to increase our revenue per tractor. Insurance and losses decreased $959,000 quarter-over-quarter, mainly due to lower health claims, lower wreck repairs and lower losses and damages in this year's fourth quarter. We continue to be challenged during the quarter with hire -- with driver hiring, driver training, driver travel and retention-related cost. As a result, operating profit was $156,000 compared to $241,000 in last year's fourth quarter.

Now, for our year-to-date results. Total revenues for the year were $108,716,000, down $5,349,000 from last year. Transportation revenues were down $4,852,000 on 2,258,000 less miles and 42 fewer average drivers.

Net fuel expense decreased by $1,629,000, mainly due to fewer miles. Insurance and losses were down $2,303,000 due to lower auto liability expense resulting from closing of prior year claims and lower health expense. Our repair and tire expense increased due to more high dollar repairs. We continue to rightsize our fleet, thus depreciation expense decreased $889,000. Year-to-date, our average revenue per tractor was $283,000 versus $268,000 last year.

SG&A increased due to our continued upgrade to our information technology systems, which were completed during the fourth quarter and higher driver hiring expense.

Gains on disposition of assets increased primarily due to the sale of our Ocoee, Florida property and the hurricane gains -- hurricane insurance gains.