Patriot Transportation Holding, Inc. (NASDAQ:PATI) Q2 2020 Earnings Conference Call - Final Transcript

May 11, 2020 • 03:00 pm ET

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Patriot Transportation Holding, Inc. (NASDAQ:PATI) Q2 2020 Earnings Conference Call - Final Transcript

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Q & A
Operator
Operator

At this time, we would like to be conducting a question-and-answer session. [Operator Instructions]

Our first question comes from the line of Dorsey Farr with KDHB V Capital. You may begin.

Analyst
Dorsey Farr

Thank you. Good morning. Thanks for taking the questions. Can you remind us, when you declared the special dividend in December, what were the expectations for the timeline with regard to Tampa at that point in time?

Executive
Matthew C. McNulty

Similar to what they are today, what we've got in this latest announcement.

Analyst
Dorsey Farr

Okay. So, we shouldn't view those as connected in the sense that, that timeline hasn't been delayed from the point when that dividend was declared.

Executive
Matthew C. McNulty

No.

Executive
Robert E. Sandlin

No, not at all.

Analyst
Dorsey Farr

And have you -- I don't recall if you've shared anything with regard to the terms being changed with the buyer. Obviously, the environment is a lot different. But is that property under contract? What is the status of it in terms of the negotiations with the buyer? They are under a study period. But is there a...

Executive
Matthew C. McNulty

Yeah. So, they're still under contract for probably over a year at this point. I don't have the exact start date, but it's -- we went under contract with a -- the first phase of the contract was for us as the owner of the property to get the site plan approval. Once that occurred and the City of Tampa issued the approval, then the contract kicks to the second phase, which is a standard kind of real estate contract where the buyer has 120 days, and then 30 days to close, and they've got a couple of 30-day extensions on there. So that's really the time frame now. They've got 120 days to tell us whether or not they're going to move forward.

Analyst
Dorsey Farr

Okay. So, in terms of -- I don't recall it. At one point, you had the contract -- or excuse me, the property under contract and there was a stated price on that. And I think that one fell through maybe a couple of years back. Have you published the -- the earn-outs, the price that -- for this particular contract?

Executive
Robert E. Sandlin

Yeah, we did when we first went under contract, but it's $10.5 million.

Analyst
Dorsey Farr

Okay. Second, with regard to -- you mentioned others being in a position where they're probably going to struggle and they don't have the balance sheet you have. How are you thinking about the current environment as we come out of the shutdowns? Are you thinking, there's going to be M&A opportunities that are appealing to you? Or are you thinking, you'll just take business from others who are going out of business? How do you think about coming out of this from a position of strength in a market that's very different from the one you have been operating in where now you're -- you probably never thought you'd be furloughing drivers when you couldn't retain them for the past several years. So, it's really been turned on its head.

Executive
Robert E. Sandlin

No. Frankly, good