Patriot Transportation Holding, Jacksonville, Fla., reported net income of $2.77 million in the third quarter of fiscal 2008, a 14.3% increase over net income of $2.43 million in the same period last year.


Net income for the first nine months of fiscal 2008 was $4.82 million, a decrease of $2.38 million compared to net income of $7.18 million for the same period last year.

Net income for the first nine months of fiscal 2008 benefited from a gain on condemnation of land of $1.54 million, but was adversely impacted by the accrual of retirement benefits of about the same amount for the company's previous president and CEO, whose retirement was effective February 6, 2008.

The transportation segment was negatively impacted in the first nine months of fiscal 2008 by reduced demand for flatbed trucking services and high fuel expenses. The first nine months of fiscal 2007 benefited from gains on equipment sales and prior period insurance recoveries.

For the third quarter of fiscal 2008, consolidated revenues were $46.06 million, an increase of $6.43 million, or 16.2%, over the same quarter last year.

Transportation segment revenues were $39.99 million in the third quarter of 2008, an increase of $5.88 million over the same quarter last year. Revenue miles in the current quarter were down 2.6% compared to the third quarter of 2007 due to reduced loads in the flatbed portion of the transportation segment. Excluding fuel surcharges, revenue per mile increased 8.4% over the same quarter last year. In addition to general rate increases, a shift to new business in the flatbed division was a significant factor in this increase.

Consolidated gross profit was $8.63 million in the third quarter of fiscal 2008, an increase of $834,000 or 10.7% compared to $7.79 million in the same period last year. Gross profit in the transportation segment increased $778,000 or 16.2% as increased revenue per mile more than offset reduced demand for flatbed trucking services and high fuel expenses. Gross profit in the real estate segment increased $56,000 or 1.9% from the third quarter 2007, due to higher rental rates on new leases offset by increased real estate taxes that could not be billed to tenants.

Selling, general and administrative expenses increased $392,000 over the same quarter last year. Payroll and payroll taxes increased $247,000 due to amounts paid to the Company's prior CFO who retired June 16, 2008 along with additional staffing and payroll taxes on stock option exercises.

For the first nine months of fiscal 2008, consolidated revenues were $126.35 million, an increase of 10% over the same period last year.

Transportation segment revenues were $107.65 million in the first nine months of 2008, an increase of $9.23 million over the same period last year. Revenue miles in the first nine months of fiscal 2008 were down 3.1% compared to the first nine months of fiscal 2007 due to reduced loads in the flatbed portion of the transportation segment. Excluding fuel surcharges, revenue per mile increased 5.3% over the same period last year. In addition to general rate increases, the addition of new business in the flatbed division during the third quarter was a significant factor in this increase. Until the third quarter, decreased construction material freight demand and pricing softness from the downturn in housing pushed revenues down in the flatbed operation compared to the same period last year.

Consolidated gross profit was $20.90 million in the first nine months of fiscal 2008, a decrease of 11.7% compared to $23.68 million in the same period last year. Gross profit in the transportation segment decreased $3.4 million, or 22.8% due to the increase in cost of operations along with decreased freight demand, resulting in reduced revenue miles in the flatbed portion.

Average fuel cost per gallon in the first nine months of 2008 increased 41% over the same period last year. This resulted in an increase in fuel cost of $679,000 in excess of the increase in fuel surcharge revenue in the flatbed portion.

The flatbed portion of the transportation segment continues to face poor freight demand from the housing downturn as well as high fuel expenses. During the third quarter of fiscal 2008, increased revenue per mile in the transportation segment more than offset reduced demand for flatbed trucking services and high fuel expenses.

Patriot Transportation Holding, Inc. is engaged in the transportation and real estate businesses. The company's transportation business is conducted through two wholly owned subsidiaries. Florida Rock & Tank Lines is a Southeastern transportation company concentrating in the hauling by motor carrier of liquid and dry bulk commodities. SunBelt Transport serves the flatbed portion of the trucking industry in the Southeastern states, hauling primarily construction materials