Patriot Transportation Holding, Inc. (NASDAQ:PATI) Q2 2020 Earnings Conference Call - Final Transcript
May 11, 2020 • 03:00 pm ET
Robert E. Sandlin
volume when it returns.
As you see from my comments, since mid-March, we've been on a crisis -- we have been in crisis management without a playbook for this type of event. And I have been pleased with the response from our management team and our employees. Our drivers, while essential to the US economy, are taking an earnings hit during this event, and they have reacted positively and looking forward to return to full workload soon. I appreciate their dedication to providing the transportation needs for us all and for their loyalty to Patriot.
During late April, we closed our Wilmington, North Carolina chemical and dry bulk terminal and transitioned the business to another operator that has a large presence and more scale in North Carolina. This operation has been impacted by the closure of a large customer and lower pricing causing a loss of volume in the last year and thus was underperforming. I am pleased, we were able to find a good home for these employees and someone to take care of our loyal customers we had in the Wilmington market. We were also able to lease 21 of our trailers to the transitioning company and will sell many of the tractors. Exiting in this manner also benefits Patriot by lowering the cost to close the terminal.
On May 8, 2020, the City of Tampa and all other required agencies officially approved the Site Plan for the proposed mixed use development on our property located on Dale Mabry Highway in Tampa, Florida. As a result, the 120-day study period for the buyer commenced on that same day. Assuming the buyer is satisfied that all contingencies have been met, we anticipate a closing sometime late this calendar year.
Looking ahead, we are anxious to see what our business volumes do as states open back up for business, and we'll monitor the progress closely. We believe the increase in unemployment and residual effect on many businesses will improve our driver retention and the driver pool in the coming months, but only time will tell. Companies with strong balance sheets like ours should return to normal, but we believe there will be others that struggle due a lack of cash and pending increases in risk insurance. We are fortunate to be in a strong position to grow revenue with accounts willing to pay a price that allows for reasonable return on investment.
Finally, I want to be sure, I reiterate, how much I appreciate our employees and our management team by meeting the recent challenges head on. They really are a great group of people, and I'm proud to be a part of the team.
Thank you again for your interest in our company, and we will be happy to entertain any questions.