Patriot Transportation Reports Profits and Higher Revenue Miles
August 6, 2012
Patriot Transportation Holding reported a profit for its third fiscal quarter
, with net income of $2.68 million. The company said its transportation segment revenues were $26.91 million in the quarter, an increase of $725,000 over the same period in 2011.
Contributing to the company's profitability was a 0.4% increase in revenue miles when compared to the third quarter of 2011. Revenue per mile went up by 2.4% over the same period due to a number of factors, including rate increases and a lower average haul length (partially offset by lower fuel charges).
Revenue from fuel surcharges fell by $521,000 due to lower fuel costs and to changes to some customers' rates that incorporated the fuel surcharges into base rates. Patriot said the average price the company paid per gallon of diesel fuel dropped by 6 cents, or 1.7%, over the same quarter in fiscal-year 2011.
Operating profit dropped $158,000, or 6.5% for the third quarter. Factors affecting the company's operating profit in the transportation sector included higher costs for health insurance and workers' compensation claim costs, higher vehicle repair costs, increased tire prices, and costs associated with growth initiatives. The cost of growth initiatives was partially offset by increased revenue on equipment sales and incremental profits on higher revenues.
In looking at the company's performance for the first nine months of fiscal-year 2012, Patriot stated that consolidated revenues were at $94.72 million, an increase of $5.92 million, or 6.7%, over the same period in 2011.
Diesel fuel costs for the company during the first nine months of 2012 were up $.26, or 7.7%, on a per-gallon basis over the same period in fiscal-year 2011. Excluding fuel surcharges, revenue per mile increased 3.4% over the same quarter last year, according to Patriot.
Looking ahead, the company says it expects increasing segment miles during fiscal 2012. Patriot added that it continues to successfully add drivers.