10-Q 1 patrmarq09.txt PATR MARCH 2009 FORM 10-Q FORM 10-Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 (Mark one) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For quarterly period ended March 31, 2009 or [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 33-26115 PATRIOT TRANSPORTATION HOLDING, INC. (Exact name of registrant as specified in its charter) Florida 59-2924957 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 501 Riverside Ave., Suite 500, Jacksonville, Florida 32202 (Address of principal executive offices) (Zip Code) 904/396-5733 (Registrant's telephone number, including area code) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No___ Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes[ ] No[ ] Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of "accelerated filer and large accelerated filer" in Rule 12b-2 of the Exchange Act. Large accelerated filer[ ] Accelerated filer[X] Non- accelerated filer[ ] Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). YES[ ] NO[X] Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of December 31, 2008: 3,043,786 shares of $.10 par value common stock. PATRIOT TRANSPORTATION HOLDING, INC. FORM 10-Q QUARTER ENDED MARCH 31, 2009 CONTENTS Page No. Preliminary Note Regarding Forward-Looking Statements 3 Part I. Financial Information Item 1. Financial Statements Consolidated Balance Sheets 4 Consolidated Statements of Income 5 Consolidated Statements of Cash Flows 6 Condensed Notes to Consolidated Financial Statements 7 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 13 Item 3. Quantitative and Qualitative Disclosures about Market Risks 23 Item 4. Controls and Procedures 23 Part II. Other Information Item 1A. Risk Factors 25 Item 4. Submission of Matters to a Vote of Security Holders 25 Item 6. Exhibits 25 Signatures 26 Exhibit 31 Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 28 Exhibit 32 Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. 31 Preliminary Note Regarding Forward-Looking Statements. Certain matters discussed in this report contain forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those indicated by such forward-looking statements. These forward-looking statements relate to, among other things, capital expenditures, liquidity, capital resources and competition and may be indicated by words or phrases such as "anticipate", "estimate", "plans", "projects", "continuing", "ongoing", "expects", "management believes", "the Company believes", "the Company intends" and similar words or phrases. The following factors and others discussed in the Company's periodic reports and filings with the Securities and Exchange Commission are among the principal factors that could cause actual results to differ materially from the forward-looking statements: freight demand for petroleum products including recessionary and terrorist impacts on travel in the Company's markets; levels of construction activity in the markets served by our mining properties and our flatbed trucking subsidiary; fuel costs and the Company's ability to recover fuel surcharges; accident severity and frequency; risk insurance markets; driver availability and cost; the impact of future regulations regarding the transportation industry; availability and terms of financing; competition; interest rates, inflation and general economic conditions; demand for flexible warehouse/office facilities in the Baltimore-Washington- Northern Virginia area; and ability to obtain zoning and entitlements necessary for property development. However, this list is not a complete statement of all potential risks or uncertainties. These forward-looking statements are made as of the date hereof based on management's current expectations, and the Company does not undertake an obligation to update such statements, whether as a result of new information, future events or otherwise. Additional information regarding these and other risk factors may be found in the Company's other filings made from time to time with the Securities and Exchange Commission. PART I. FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS PATRIOT TRANSPORTATION HOLDING, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands, except share data) March 31, September 30, Assets 2009 2008 Current assets: Cash and cash equivalents $ 7,788 7,778 Accounts receivable (including related party of $386 and $358 and net of allowance for doubtful accounts of $279 and $265, respectively) 7,551 11,774 Accounts receivable from condemnation - 554 Federal and state income taxes receivable - 590 Inventory of parts and supplies 722 891 Deferred income taxes 1,061 - Prepaid tires on equipment 1,932 2,102 Prepaid taxes and licenses 844 1,859 Prepaid insurance 1,846 3,224 Prepaid expenses, other 118 91 Total current assets 21,862 28,863 Property, plant and equipment, at cost 313,915 310,518 Less accumulated depreciation and depletion 99,122 99,758 Net property, plant and equipment 214,793 210,760 Real estate held for investment, at cost 6,918 6,918 Investment in joint venture 6,687 6,395 Goodwill 1,087 1,087 Unrealized rents 3,310 3,208 Other assets 4,285 4,809 Total assets $258,942 262,040 Liabilities and Shareholders' Equity Current liabilities: Accounts payable $ 3,326 7,663 Federal and state income taxes payable 607 - Accrued payroll and benefits 4,480 5,861 Accrued insurance reserves 5,218 4,494 Accrued liabilities, other 631 1,226 Long-term debt due within one year 4,154 4,019 Total current liabilities 18,416 23,263 Long-term debt, less current portion 74,042 76,153 Deferred income taxes 18,959 18,885 Accrued insurance reserves 4,848 4,848 Other liabilities 1,567 1,536 Commitments and contingencies (Note 8) Shareholders' equity: Preferred stock, no par value; 5,000,000 shares authorized; none issued - - Common stock, $.10 par value; 25,000,000 shares authorized, 3,043,786 and 3,039,086 shares issued and outstanding, respectively 304 304 Capital in excess of par value 35,139 34,540 Retained earnings 105,629 102,473 Accum. other comprehensive income, net of tax 38 38 Total shareholders' equity 141,110 137,355 Total liabilities and shareholders' equity $258,942 262,040 See accompanying notes. PATRIOT TRANSPORTATION HOLDING, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (In thousands except per share amounts) (Unaudited) THREE MONTHS SIX MONTHS ENDED MARCH 31, ENDED MARCH 31, 2009 2008 2009 2008 Revenues: Transportation $26,976 34,738 59,046 67,657 Real estate 6,255 6,350 12,117 12,631 Total revenues (including revenue from related parties of $2,005, $2,046, $3,620 and $4,234, respectively) 33,231 41,088 71,163 80,288 Cost of operations: Transportation 23,303 31,533 50,894 61,669 Real estate 3,272 3,502 6,449 6,343 Total cost of operations 26,575 35,035 57,343 68,012 Gross profit: Transportation 3,673 3,205 8,152 5,988 Real estate 2,983 2,848 5,668 6,288 Total gross profit 6,656 6,053 13,820 12,276 Selling, general and administrative expense 3,564 3,655 7,016 9,042 Operating profit 3,092 2,398 6,804 3,234 Gain on condemnation of land - - - 2,507 Interest income and other 3 166 28 492 Equity in loss of joint venture - (4) (5) (14) Interest expense (784) (1,368) (1,650) (2,748) Income before income taxes 2,311 1,192 5,177 3,471 Provision for income taxes (902) (566) (2,021) (1,440) Net income $ 1,409 626 3,156 2,031 Earnings per common share: Basic $ .46 .21 1.04 .67 Diluted $ .45 .20 1.02 .65 Number of shares (in thousands) used in computing: -basic earnings per common share 3,039 3,037 3,036 3,039 -diluted earnings per common share 3,102 3,128 3,106 3,138 See accompanying notes. PATRIOT TRANSPORTATION HOLDING, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS SIX MONTHS ENDED MARCH 31, 2009 AND 2008 (In thousands) (Unaudited) 2009 2008 Cash flows from operating activities: Net income $ 3,156 2,031 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, depletion and amortization 7,898 7,146 Deferred income taxes (1,034) 1,527 Equity in loss of joint venture 5 14 (Gain) loss on sale of equipment (735) (257) Gain on condemnation of land - (2,507) Stock-based compensation 555 828 Net changes in operating assets and liabilities: Accounts receivable 5,367 (1,171) Income taxes receivable - (1,161) Inventory of parts and supplies 169 (180) Prepaid expenses and other current assets 2,536 936 Other assets 76 397 Accounts payable and accrued liabilities (5,542) 1,011 Income taxes payable 607 (486) Long-term insurance reserves and other long-term liabilities 31 (1,247) Net cash provided by operating activities 13,089 6,881 Cash flows from investing activities: Purchase of transportation group property and equipment (3,832) (9,157) Purchase and development of real estate group property (8,393) (11,449) Investment in joint venture (300) (350) Proceeds from the sale of property, plant and equipment 1,378 460 Net cash used in investing activities (11,147) (20,496) Cash flows from financing activities: Repayment of long-term debt (1,976) (1,850) Repurchase of Company stock - (4,388) Excess tax benefits from exercises of stock options and vesting of restricted stock 15 527 Exercise of employee stock options 29 810 Net cash used in financing activities (1,932) (4,901) Net increase (decrease) in cash and cash equivalents 10 (18,516) Cash and cash equivalents at beginning of period 7,778 26,944 Cash and cash equivalents at end of the period $ 7,788 8,428 During the quarter ended December 31, 2007 the Company recorded a non-cash transaction for accounts receivable from condemnation in the amount of $5,860. The condemnation proceeds were received in April 2008. See accompanying notes. PATRIOT TRANSPORTATION HOLDING, INC. AND SUBSIDIARIES CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2009 (Unaudited) (1) Basis of Presentation. The accompanying consolidated financial statements include the accounts of Patriot Transportation Holding, Inc. and its subsidiaries (the "Company"). Investment in the 50% owned Brooksville Joint Venture is accounted for under the equity method of accounting. These statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and the instructions to Form 10-Q and do not include all the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments (primarily consisting of normal recurring accruals) considered necessary for a fair statement of the results for the interim periods have been included. Operating results for the six months ended March 31, 2009 are not necessarily indicative of the results that may be expected for the fiscal year ending September 30, 2009. The accompanying consolidated financial statements and the information included under the heading "Management's Discussion and Analysis of Financial Condition and Results of Operations" should be read in conjunction with the Company's consolidated financial statements and related notes included in the Company's Form 10-K for the year ended September 30, 2008. (2) Recent Accounting Pronouncements. In September 2006, the FASB issued Statement No. 157, Fair Value Measurement (SFAS 157). The Statement defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles (GAAP), and expands disclosures about fair value measurements. This Statement is effective for financial statements issued for fiscal years beginning after November 15, 2007, and interim periods within those fiscal years. In February 2008, the FASB agreed to a one-year delay of FAS 157 for certain nonfinancial assets and liabilities. Accordingly, adoption of this standard is limited to financial assets and liabilities, which primarily applies to the valuation of our long term mortgage debt. Management believes that the adoption of SFAS 157 will only require additional disclosure on the fair value of its goodwill, asset retirement obligations, and long-term mortgages and as such will not have a material impact on the consolidated financial results of the Company. The Company adopted the applicable provisions of SFAS 157 on October 1, 2008 and its adoption had no affect on consolidated financial results of the Company. In February 2007, the FASB issued Statement No. 159 ("SFAS 159"), "The Fair Value Option for Financial Assets and Financial Liabilities - Including an Amendment of FASB Statement No 115." This Statement permits an entity to choose to measure many financial instruments and certain other items at fair value. A business entity will report unrealized gains and losses on items for which the fair value option has been elected in earnings. The fair value option (a) may be applied instrument by instrument, (b) is irrevocable, and (c) is applied to entire instruments and not to portions of instruments. SFAS 159 is effective as of the beginning of an entity's first fiscal year that begins after November 15, 2007. The Company adopted SFAS 159 on October 1, 2008 and, as of this time, has not elected to measure financial instruments and other items at fair value that are not required to be measured at fair value. In December 2007 the FASB issued Statement No. 141(R) "Business Combinations" ("FAS 141(R)"). FAS 141(R) requires the acquiring entity in a business combination to recognize the full fair value of assets acquired and liabilities assumed in the transaction (whether a full or partial acquisition); establishes the acquisition-date fair value as the measurement objective for all assets acquired and liabilities assumed; requires expensing of most transaction and restructuring costs; and requires the acquirer to disclose to investors and other users all of the information needed to evaluate and understand the nature and financial effect of the business combination. FAS 141(R) applies prospectively to business combinations for which the acquisition date is on or after October 1, 2009. The impact of FAS No. 141R on the consolidated financial statements will depend upon the nature, terms and size of any acquisitions consummated after the effective date. In April 2009, the FASB issued FASB Staff Position No. 107-1 (FSP FAS 107-1) and APB 28-1 (APB 28-1), which amends FASB Statement No. 107, Disclosures about Fair Value of Financial Instruments and APB Opinion No. 28, Interim Financial Reporting, to require disclosures about the fair value of financial instruments for interim reporting periods. FSP FAS 107-1 and APB 28-1 will be effective for interim reporting periods ending after June 15, 2009. (3) Business Segments. The Company has identified two business segments, each of which is managed separately along product lines. The Company's operations are substantially in the Southeastern and Mid-Atlantic states. The transportation segment hauls primarily petroleum related bulk liquids, dry bulk commodities and construction materials by motor carrier. The real estate segment owns real estate of which a substantial portion is under mining royalty agreements or leased. The real estate segment also holds certain other real estate for investment and develops commercial and industrial properties. Operating results and certain other financial data for the Company's business segments are as follows (in thousands): Three Months ended Six Months ended March 31,_ __ March 31, ___ 2009 2008 2009 2008 Revenues: Transportation $ 26,976 34,738 59,046 67,657 Real estate 6,255 6,350 12,117 12,631 $ 33,231 41,088 71,163 80,288 Operating profit Transportation $ 1,418 976 3,492 1,622 Real estate 2,983 2,848 5,668 6,288 Corporate expenses (1,309) (1,426) (2,356) (4,676) $ 3,092 2,398 6,804 3,234 Identifiable assets March 31, September 30, 2009 2008 Transportation $ 54,710 62,511 Real estate 191,738 187,239 Cash items 7,788 7,778 Unallocated corporate assets 4,706 4,512 $258,942 262,040 (4) Long-Term debt. Long-term debt is summarized as follows (in thousands): March 31, September 30, 2009 2008 5.6% to 8.6% mortgage notes due in installments through 2027 78,196 80,172 Less portion due within one year 4,154 4,019 $ 74,042 76,153 The Company has a $37,000,000 uncollaterized Revolving Credit Agreement which was renewed on October 1, 2008 to extend the term until December 31, 2013 and to amend the loan covenants. The Revolver bears interest at a rate of 1.25% over the selected LIBOR, which may change quarterly based on the Company's ratio of Consolidated Total Debt to Consolidated Total Capital, as defined. A commitment fee of 0.2% per annum is payable quarterly on the unused portion of the commitment. The commitment fee may also change quarterly based upon the ratio described above. The Revolver contains limitations including limitations on paying cash dividends. Under the terms of this amended Revolver agreement, as of March 31, 2009, the full $37,000,000 amount of the line was available for borrowing and $37,999,000 of consolidated retained earnings was available for the payment of dividends. The Company was in compliance with all covenants as of March 31, 2009. (5) Related Party Transactions. The Company, through its transportation subsidiaries, hauls commodities by tank and flatbed trucks for Vulcan Materials Company (Vulcan). Charges for these services are based on prevailing market prices. The real estate subsidiaries lease certain construction aggregates mining and other properties to Vulcan. A subsidiary of the Company (FRP) has a Joint Venture Agreement with Vulcan Materials Company (formerly Florida Rock Industries, Inc.), Brooksville Quarry, LLC, to develop approximately 4,300 acres of land near Brooksville, Florida. The venture is jointly controlled by Vulcan and FRP, and they each have a mandatory obligation to fund additional capital contributions of up to $2 million of which capital contributions of $1,325,000 have been made by each party as of March 31, 2009. Distributions will be made on a 50-50 basis except for royalties and depletion specifically allocated to FRP. Other income for the six months ended March 31, 2009 and 2008 includes a loss of $5,000 and $14,000, respectively, representing the Company's equity in the loss of the joint venture. (6) Earnings per share. The following details the computations of the basic and diluted earnings per common share (dollars in thousands, except per share amounts): THREE MONTHS SIX MONTHS ENDED MARCH 31, ENDED MARCH 31, 2009 2008 2009 2008 Weighted average common shares outstanding during the period - shares used for basic earnings per common share 3,039 3,037 3,036 3,039 Common shares issuable under share based payment plans which are potentially dilutive 63 91 70 99 Common shares used for diluted earnings per common share 3,102 3,128 3,106 3,138 Net income $ 1,409 626 3,156 2,031 Earnings per common share Basic $ .46 .21 1.04 .67 Diluted $ .45 .20 1.02 .65 For the three and six months ended March 31, 2009, 19,000 and 10,000 shares attributable to outstanding stock options, respectively, were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive. For the three and six months ended March 31 2008, all outstanding stock options were included in the calculation of diluted earnings per common share because the sum of the hypothetical amount of future proceeds from the exercise price, unrecorded compensation, and tax benefits to be credited to capital in excess of par for all grants of stock options were lower than the average price of the common shares, and therefore were dilutive. For the three and six months ended March 31, 2009 and 2008, all outstanding restricted shares were included in the calculation of diluted earnings per common share because the unrecorded compensation and tax benefits to be credited to capital in excess of par for all awards of restricted stock were lower than the average price of the common shares, and therefore were dilutive. (7) Stock-Based Compensation Plans. As more fully described in Note 7 to the Company's notes to the consolidated financial statements in the Company's Annual Report on Form 10-K for the year ended September 30, 2008, the Company's stock-based compensation plan permits the grant of stock options, stock appreciation rights, restricted stock awards, restricted stock units, and stock awards. The number of common shares available for future issuance was 258,500 at March 31, 2009. Under provisions of SFAS 123R, the Company recorded the following stock compensation expense in its consolidated statement of income (in thousands): Three Months ended Six Months ended March 31,_ March 31,__ 2009 2008 2009 2008 Stock options issued prior to 123R adoption $ 57 61 113 166 Stock options issued after 123R adoption 23 - 46 - Restricted stock awards granted in 2006 51 51 102 105 Annual director stock award 294 395 294 395 Shares repurchased in connection with previous CEO retirement - 162 - 162 Modification to accelerate prior awards made in connection with CEO retirement - (3) - 216 425 666 555 1,044 Deferred income tax benefit 163 255 213 400 Stock compensation, net of tax $ 262 411 342 644 A summary of changes in outstanding options is presented below (in thousands, except share and per share amounts): Weighted Weighted Weighted Number Average Average Average Of Exercise Remaining Grant Date Options Shares Price Term (yrs) Fair Value Outstanding at September 30, 2008 232,080 $33.73 5.0 $ 3,900 Granted - $ - $ - Exercised 800 $36.19 $ 14 Forfeited 300 $24.00 $ 4 Outstanding at March 31, 2009 230,980 $33.73 4.5 $ 3,882 Exercisable at March 31, 2009 210,780 $30.82 4.3 $ 3,310 Vested during six months ended March 31, 2009 10,200 $ 201 The aggregate intrinsic value of exercisable in-the-money options was $6,639,000 and the aggregate intrinsic value of all outstanding in- the-money options was $6,842,000 based on the market closing price of $62.32 on March 31, 2009 less exercise prices. Gains of $27,000 were realized by option holders during the six months ended March 31, 2009. The realized tax benefit from options exercised for the six months ended March 31, 2009 was $10,000. Total compensation cost of options granted but not yet vested as of March 31, 2009 was $451,000, which is expected to be recognized over a weighted-average period of 1.5 years. A summary of changes in restricted stock awards is presented below (in thousands, except per share amounts): Weighted Weighted Weighted Number Average Average Average Of Grant Remaining Grant Date Restricted Stock Shares Price Term (yrs) Fair Value Outstanding at September 30, 2008 6,200 $63.67 1.3 $ 395 Granted - $ - $ - Vested 3,050 $63.67 $ 194 Forfeited 100 $63.54 $ 6 Outstanding at March 31, 2009 3,050 $63.67 .8 $ 195 Total compensation cost of restricted stock granted but not yet vested as of March 31, 2009 was $152,000 which is expected to be recognized over a weighted-average period of .8 years. (8) Contingent liabilities. Certain of the Company's subsidiaries are involved in litigation on a number of matters and are subject to certain claims which arise in the normal course of business. The Company has retained certain self-insurance risks with respect to losses for third party liability and property damage. In the opinion of management none of these matters are expected to have a material adverse effect on the Company's consolidated financial condition, results of operations or cash flows. (9) Concentrations. The transportation segment primarily serves customers in the petroleum, other liquid and dry bulk commodities, and construction industries in the Southeastern U.S. Petroleum and bulk commodities accounted for approximately 79% and construction customers accounted for approximately 21% of transportation segment revenues for the six months ended March 31, 2009. Significant economic disruption or downturn in this geographic region or these industries could have an adverse effect on our financial statements. During the first six months of fiscal 2009, the transportation segment's ten largest customers accounted for approximately 57.1% of the transportation segment's revenue. One of these customers accounted for 21.6% of the transportation segment's revenue. The loss of any one of these customers would have an adverse effect on the Company's revenues and income. Accounts receivable from the transportation segment's ten largest customers was $3,225,000 and $5,255,000 at March 31, 2009 and September 30, 2008 respectively. (10) CEO Retirement. On December 5, 2007, the board of directors approved certain retirement benefits for John E. Anderson, the Company's previous President and Chief Executive Officer effective February 6, 2008. Upon Mr. Anderson's retirement, the Company paid him $4,851,000 for his accrued benefit under the Management Security Plan, the fair value of his outstanding stock options and restricted stock and an additional bonus. The total impact of these payments on the Company's earnings for fiscal 2008 was $2,503,000 before taxes which is included in selling, general, and administrative expense primarily in the three months ending December 31, 2007. On December 5, 2007, the Company's Board of Directors elected John D. Baker II to succeed Mr. Anderson as President and Chief Executive Officer. The following tables detail the expense incurred and payments made (in thousands): Expenses Additional bonus paid in cash $2,125 Repurchase of vested options and stock at 20 day average market value per agreement which exceeded the closing price on the date of repurchase 162 Accelerated vesting of options 180 Accelerated vesting of restricted stock 36 Total expense ($2,371 in quarter ending 12/31/07) $2,503 Payments Total expense $2,503 Previously accrued benefit MSP Retirement Plan 1,331 Gain on vested stock options repurchased 999 Restricted shares vested 1/1/08 repurchased 18 Total payments $4,851 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Overview - The Company has two business segments: transportation and real estate. The Company's transportation business is conducted through two wholly owned subsidiaries, Florida Rock & Tank Lines, Inc. ("Tank Lines"), and SunBelt Transport, Inc. ("SunBelt"), both of which operate in the Southeastern United States. Tank Lines hauls petroleum and other bulk liquids and dry bulk commodities by tank trailers. SunBelt serves the flatbed portion of the trucking industry, hauling primarily construction materials. The Company's real estate activities are conducted through two wholly owned subsidiaries. Florida Rock Properties, Inc. ("Properties") and FRP Development Corp. ("Development"). Properties owns mining properties and other properties held for investment or future development. Development owns, manages and develops commercial warehouse/office rental properties in the Baltimore-Washington- Northern Virginia area. Substantially all of the real estate operations are conducted within the Southeastern and Mid-Atlantic United States. The Company's operations are influenced by a number of external and internal factors. External factors include levels of economic and industrial activity in the United States and the Southeast, driver availability and cost, regulations regarding driver qualifications and hours of service, petroleum product usage in the Southeast which is driven in part by tourism and commercial aviation, fuel costs, construction activity, aggregates sales by lessees from the Company's mining properties, interest rates, market conditions and attendant prices for casualty insurance, demand for commercial warehouse space in the Baltimore-Washington-Northern Virginia area, and ability to obtain zoning and entitlements necessary for property development. Internal factors include revenue mix, capacity utilization, auto and workers' compensation accident frequencies and severity, other operating factors, administrative costs, group health claims experience, and construction costs of new projects. Financial results of the Company for any individual quarter are not necessarily indicative of results to be expected for the year. Comparative Results of Operations for the Three Months Ended March 31, 2009 and 2008 Consolidated Results - Net income for the second quarter of fiscal 2009 increased 125.1% to $1,409,000 compared to net income of $626,000 for the same period last year. Diluted earnings per common share for the second quarter of fiscal 2009 were $0.45 compared to $0.20 in the second quarter of fiscal 2008. Improved recovery of fuel costs in the flatbed business and higher gains on equipment sales along with higher revenues per mile and cost management more than offset the reduced miles driven in the transportation segment. The real estate segment's results were impacted by lower royalty revenues and increased vacancy from new building additions but were assisted by timber sales and increased capitalization of property taxes and interest expense. Transportation Results Three Months Ended March 31 (dollars in thousands) ___2009 % 2008 %_ Transportation revenue $ 24,907 92% 28,716 83% Fuel surcharges 2,069 8% 6,022 17% Revenues 26,976 100% 34,738 100% Compensation and benefits 10,641 39% 12,662 36% Fuel expenses 4,513 17% 9,563 28% Insurance and losses 3,203 12% 3,246 9% Depreciation expense 2,377 9% 2,249 7% Other, net 2,569 9% 3,813 11% Cost of operations 23,303 86% 31,533 91% Gross profit $ 3,673 14% 3,205 9% Transportation segment revenues were $26,976,000 in the second quarter of 2009, a decrease of $7,762,000 over the same quarter last year. Revenue miles in the current quarter were down 20.1% compared to the second quarter of 2008 due to reduced loads in the flatbed portion of the transportation segment and reduced dry bulk tank hauling. Decreased construction material freight demand from the downturn in housing and commercial construction pushed revenue miles down in the flatbed operation compared to last year. Excluding fuel surcharges, revenue per mile increased 8.2% over the same quarter last year. The average price paid per gallon of diesel fuel decreased by $1.45 or 42.7% over the same quarter in fiscal 2008. Fuel surcharge revenue decreased $3,953,000. The Transportation segment's cost of operations was $23,303,000 in the second quarter of 2009, a decrease of $8,230,000 over the same quarter last year. The Transportation segment's cost of operations in the second quarter of 2009 as a percentage of revenue was 86% versus 91% in the second quarter of 2008. Compensation and benefits decreased $2,021,000 or 16.0% compared to the same quarter last year due to the decrease in miles driven. Average fuel cost per gallon in the second quarter of 2009 decreased 42.7% over the same period last year. Fuel cost decreased $1,097,000 more than the decrease in fuel surcharge revenue due to lower miles and improved recovery of fuel costs in the flatbed business. Insurance and losses decreased $43,000 due to the reduction in miles driven partially offset by higher health insurance claims. Other expense decreased $1,244,000 primarily due to the decrease in miles driven and higher gains on equipment sales. Real Estate Results Three Months Ended March 31 (dollars in thousands) ___2009 % 2008 %_ Royalties and rent $ 1,819 29% 2,001 32% Developed property rentals 4,436 71% 4,349 68% Total Revenue 6,255 100% 6,350 100% Mining and land rent expenses 565 9% 959 15% Developed property expenses 2,707 43% 2,543 40% Cost of Operations 3,272 52% 3,502 55% Gross profit $ 2,983 48% 2,848 45% Real Estate segment revenues for the second quarter of fiscal 2009 were $6,255,000, a decrease of $95,000 or 1.5% over the same quarter last year. Lease revenue from developed properties increased $87,000 or 2.0%. Royalties and rent decreased $182,000 or 9.1% due to decreased demand for mined tons partially offset by a $289,000 increase in revenues from timber sales. Real estate segment expenses decreased $230,000 to $3,272,000 during the second quarter of fiscal 2009 compared to $3,502,000 for the same quarter last year. Developed property expenses increased $164,000 as a result of new buildings placed in service. Mining and land rent expenses decreased $394,000 primarily due to capitalization of property taxes on property under development. Consolidated Results Gross Profit - Consolidated gross profit was $6,656,000 in the second quarter of fiscal 2009, an increase of $603,000 or 10.0% compared to $6,053,000 in the same period last year. Gross profit in the transportation segment increased $468,000 or 14.6% due improved recovery of fuel costs in the flatbed business and higher gains on equipment sales, higher revenues per mile and cost management which more than offset the reduced miles driven. Gross profit in the real estate segment increased $135,000 or 4.7% from the second quarter 2008, due to higher capitalization of real estate taxes and increased timber revenue offset by decreased demand for tons mined. Selling, general and administrative expense - Selling, general and administrative expenses decreased $91,000 (2.5%) over the same quarter last year. Interest expense - Interest expense decreased $584,000 over the same quarter last year due to higher capitalized interest. Income taxes - Income tax expense increased $336,000 over the same quarter last year due to increased earnings. Net income - Net income for the second quarter of fiscal 2009 increased 125.1% to $1,409,000 compared to net income of $626,000 for the same period last year. Diluted earnings per common share for the second quarter of fiscal 2009 were $0.45 compared to $0.20 in the second quarter of fiscal 2008. Improved recovery of fuel costs in the flatbed business and higher gains on equipment sales along with higher revenues per mile and cost management more than offset the reduced miles driven in the transportation segment. The real estate segment's results were impacted by lower royalty revenues and increased vacancy from new building additions but were assisted by timber sales and increased capitalization of property taxes and interest expense. Comparative Results of Operations for the Six Months Ended March 31, 2009 and 2008 Consolidated Results - Net income for the first six months of fiscal 2009 increased 55.4% to $3,156,000 compared to net income of $2,031,000 for the same period last year. Diluted earnings per common share for the first six months of fiscal 2009 were $1.02 compared to $0.65 in the first six months of fiscal 2008. Increased revenue per mile, lower fuel expenses and lower operating expenses in the transportation segment offset continued reduced demand for flatbed trucking services. The real estate segment's results were impacted by lower royalty revenues and increased vacancy from new building additions but were assisted by increased capitalization of property taxes and interest expense. Net income for the first six months of fiscal 2008 benefited from a gain on condemnation of land of $1,544,000, net of income taxes but was adversely impacted by the accrual of retirement benefits of $1,541,000, net of income tax benefits, for the Company's former President and CEO, whose retirement was effective February 6, 2008. Transportation Results Six Months Ended March 31 (dollars in thousands) ___2009 % 2008 %_ Transportation revenue $ 51,981 88% 56,477 83% Fuel surcharges 7,065 12% 11,180 17% Revenues 59,046 100% 67,657 100% Compensation and benefits 22,484 38% 25,285 37% Fuel expenses 11,186 19% 17,910 26% Insurance and losses 6,331 11% 6,519 10% Depreciation expense 4,834 8% 4,470 7% Other, net 6,059 10% 7,485 11% Cost of operations 50,894 86% 61,669 91% Gross profit $ 8,152 14% 5,988 9% Transportation segment revenues were $59,046,000 in the first six months of 2009, a decrease of $8,611,000 over the same period last year. Revenue miles in the first six months of fiscal 2009 were down 16.1% compared to the first six months of 2008 due to reduced loads in the flatbed portion of the transportation segment and reduced dry bulk tank hauling. Decreased construction material freight demand from the downturn in housing and commercial construction pushed revenue miles down in the flatbed operation compared to last year. Excluding fuel surcharges, revenue per mile increased 9.8% over the same period last year. The average price paid per gallon of diesel fuel decreased by $.95 or 29.3% over the same period last year. Fuel surcharge revenue decreased $4,115,000. The Transportation segment's cost of operations was $50,894,000 in the first six months of 2009, a decrease of $10,775,000 over the same period last year. The Transportation segment's cost of operations in the first six months of 2009 was 86% versus 91% in the first six months of 2008. Compensation and benefits decreased $2,801,000 or 11.1% compared to the same period last year due to the decrease in miles driven. Average fuel cost per gallon in the first six months of 2009 decreased 29.3% over the same period last year. Fuel cost decreased $2,609,000 more than the decrease in fuel surcharge revenue due to lower miles, improved recovery of fuel costs in the flatbed business, and due to the lag in surcharge changes versus falling fuel prices. Insurance and losses decreased $188,000 due to the reduction in miles driven partially offset by higher health insurance claims. Other expense decreased $1,426,000 primarily due to the decrease in miles driven and higher gains on equipment sales. Real Estate Results Six Months Ended March 31 (dollars in thousands) ___2009 % 2008 %_ Royalties and rent $ 3,454 29% 3,977 31% Developed property rentals 8,663 71% 8,654 69% Total Revenue 12,117 100% 12,631 100% Mining and land rent expenses 1,178 10% 1,524 12% Developed property expenses 5,271 43% 4,819 38% Cost of Operations 6,449 53% 6,343 50% Gross profit $ 5,668 47% 6,288 50% Real Estate segment revenues for the first six months of fiscal 2009 were $12,117,000, a decrease of $514,000 or 4.1% over the same period last year. Lease revenue from developed properties increased $9,000 or 0.1%. Royalties and rent decreased $523,000 or 13.2% due to decreased demand for mined tons partially offset by a $125,000 increase in revenues from timber sales. Real estate segment expenses increased $106,000 to $6,449,000 during the first six months of fiscal 2009 compared to $6,343,000 for the same period last year. Developed property expenses increased $452,000 as a result of new buildings placed in service. Mining and land rent expenses decreased $346,000 primarily due to capitalization of property taxes on property under development. Consolidated Results Gross Profit - Consolidated gross profit was $13,820,000 in the first six months of fiscal 2009, an increase of $1,544,000 or 12.6% compared to $12,276,000 in the same period last year. Gross profit in the transportation segment increased $2,164,000 or 36.1% due to a sharp decline in fuel costs net of surcharges, higher gains on equipment sales, higher revenues per mile, and cost management offsetting the reduced miles driven. Gross profit in the real estate segment decreased $620,000 or 9.9% from the first six months of fiscal 2008, due to reduced demand for mined tons and expenses related to new building additions. Selling, general and administrative expense - Selling, general and administrative expenses decreased $2,026,000 over the same period last year. Fiscal year 2008 included $2,503,000 accrual of retirement benefits for the Company's previous President and Chief Executive Officer. Gain from condemnation of land - Gain from condemnation of land was $2,507,000 in the first six months of fiscal 2008 resulting from the taking by the Virginia Department of Transportation ("VDOT") of 28 acres on December 13, 2007. The Prince William County Property was purchased in December 2005 and the cost of the 28 acres taken by VDOT was $3,282,000. Interest expense - Interest expense decreased $1,098,000 over the same period last year due to higher capitalized interest. Income taxes - Income tax expense increased $581,000 over the same period last year due to increased earnings. Net income - Net income for the first six months of fiscal 2009 increased 55.4% to $3,156,000 compared to net income of $2,031,000 for the same period last year. Diluted earnings per common share for the first six months of fiscal 2009 were $1.02 compared to $0.65 in the first six months of fiscal 2008. Increased revenue per mile, lower fuel expenses and lower operating expenses in the transportation segment offset continued reduced demand for flatbed trucking services. The real estate segment's results were impacted by lower royalty revenues and increased vacancy from new building additions but were assisted by increased capitalization of property taxes and interest expense. Net income for the first six months of fiscal 2008 benefited from a gain on condemnation of land of $1,544,000, net of income taxes but was adversely impacted by the accrual of retirement benefits of $1,541,000, net of income tax benefits, for the Company's former President and CEO, whose retirement was effective February 6, 2008. Liquidity and Capital Resources. For the first six months of fiscal 2009, the Company used cash provided by operating activities of $13,089,000, proceeds from the sale of plant, property and equipment of $1,378,000, proceeds from the exercise of employee stock options of $29,000, excess tax benefits from the exercise of stock options of $15,000 and cash balances to purchase $3,832,000 in transportation equipment, to expend $8,393,000 in real estate development, to invest $300,000 in the Brooksville Joint Venture and to make $1,976,000 scheduled payments on long-term debt. Cash increased $10,000. Cash flows from operating activities for the first six months of fiscal 2009 were $6,208,000 higher than the same period last year primarily reflecting prepayment of Fiscal 2009 insurance premiums in September 2008 along with a reduction in accounts receivable days sales outstanding. Cash flows used in investing activities for the first six months of fiscal 2009 were $9,349,000 lower due to decreased purchases of equipment and land. Last year included $3,395,000 for the purchase of a corporate aircraft and $4,333,000 for the purchase of 118 acres in Carroll County, Maryland for future warehouse/office development. Cash flows used in financing activities for the first six months of fiscal 2009 were $2,969,000 lower than the same period last year due to an increase of $126,000 in mortgage payments and reduced stock options exercised by employees and the prior year including $4,388,000 for the repurchase of Company stock. The Company has a $37,000,000 uncollaterized Revolving Credit Agreement which was renewed on October 1, 2008 to extend the term until December 31, 2013 and to amend the loan covenants. The Revolver contains limitations including limitations on paying cash dividends. Under the terms of this amended Revolver agreement, as of March 31, 2009, the full $37,000,000 amount of the line was available for borrowing and $37,999,000 of consolidated retained earnings was available for the payment of dividends. The Company was in compliance with all covenants as of March 31, 2009. The Company had $16,833,000 of irrevocable letters of credit outstanding as of March 31, 2009. Most of the letters of credit are irrevocable for a period of one year and are automatically extended for additional one-year periods until notice of non-renewal is received from the issuing bank. Substantially all of these are issued for workers' compensation and liability insurance retentions. If these letters of credit are not extended, the Company will have to find alternative methods of collateralizing or funding these obligations. The Board of Directors has authorized Management to repurchase shares of the Company's common stock from time to time as opportunities arise. As of March 31, 2009, $5,625,000 was authorized for future repurchases of common stock. The Company does not currently pay any dividends on common stock. The Company has committed to make additional capital contributions of up to $675,000 to Brooksville Quarry, LLC in connection with a joint venture with Vulcan. The Virginia Department of Transportation took title to 28 acres of the Company's land on December 13, 2007 by filing a Certificate of Take and depositing with the Court $5,860,000. The Company received these funds in April 2008. A portion of these funds that were receivable were used to purchase replacement property in March and the Company intends to use the balance of the funds for general corporate purposes until the Company identifies and purchases replacement property under IRS involuntary conversion rules. On October 15, 2008 the Company agreed to total compensation for the condemnation of $6,414,000 resulting in an additional amount of $554,000 received February 2009. While the Company is affected by environmental regulations, such regulations are not expected to have a major effect on the Company's capital expenditures or operating results. Recent Accounting Pronouncements. In September 2006, the FASB issued Statement No. 157, Fair Value Measurement (SFAS 157). The Statement defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles (GAAP), and expands disclosures about fair value measurements. This Statement is effective for financial statements issued for fiscal years beginning after November 15, 2007, and interim periods within those fiscal years. In February 2008, the FASB agreed to a one-year delay of FAS 157 for certain nonfinancial assets and liabilities. Accordingly, adoption of this standard is limited to financial assets and liabilities, which primarily applies to the valuation of our long term mortgage debt. Management believes that the adoption of SFAS 157 will only require additional disclosure on the fair value of its goodwill, asset retirement obligations, and long-term mortgages and as such will not have a material impact on the consolidated financial results of the Company. The Company adopted the applicable provisions of SFAS 157 on October 1, 2008 and its adoption had no affect on consolidated financial results of the Company. In February 2007, the FASB issued Statement No. 159 ("SFAS 159"), "The Fair Value Option for Financial Assets and Financial Liabilities - Including an Amendment of FASB Statement No 115." This Statement permits an entity to choose to measure many financial instruments and certain other items at fair value. A business entity will report unrealized gains and losses on items for which the fair value option has been elected in earnings. The fair value option (a) may be applied instrument by instrument, (b) is irrevocable, and (c) is applied to entire instruments and not to portions of instruments. SFAS 159 is effective as of the beginning of an entity's first fiscal year that begins after November 15, 2007. The Company adopted SFAS 159 on October 1, 2008 and, as of this time, has not elected to measure financial instruments and other items at fair value that are not required to be measured at fair value. In December 2007 the FASB issued Statement No. 141(R) "Business Combinations" ("FAS 141(R)"). FAS 141(R) requires the acquiring entity in a business combination to recognize the full fair value of assets acquired and liabilities assumed in the transaction (whether a full or partial acquisition); establishes the acquisition-date fair value as the measurement objective for all assets acquired and liabilities assumed; requires expensing of most transaction and restructuring costs; and requires the acquirer to disclose to investors and other users all of the information needed to evaluate and understand the nature and financial effect of the business combination. FAS 141(R) applies prospectively to business combinations for which the acquisition date is on or after October 1, 2009. The impact of FAS No. 141R on the consolidated financial statements will depend upon the nature, terms and size of any acquisitions consummated after the effective date. In April 2009, the FASB issued FASB Staff Position No. 107-1 (FSP FAS 107-1) and APB 28-1 (APB 28-1), which amends FASB Statement No. 107, Disclosures about Fair Value of Financial Instruments and APB Opinion No. 28, Interim Financial Reporting, to require disclosures about the fair value of financial instruments for interim reporting periods. FSP FAS 107-1 and APB 28-1 will be effective for interim reporting periods ending after June 15, 2009. Related Party Transactions. The Company, through its transportation subsidiaries, hauls commodities by tank and flatbed trucks for Vulcan Materials Company (Vulcan). Charges for these services are based on prevailing market prices. The real estate subsidiaries lease certain construction aggregates mining and other properties to Vulcan. On October 4, 2006, a subsidiary of the Company (FRP) entered into a Joint Venture Agreement with Vulcan Materials Company (formerly Florida Rock Industries, Inc.) to form Brooksville Quarry, LLC, to develop approximately 4,300 acres of land near Brooksville, Florida. The venture is jointly controlled by Vulcan and FRP, and they each have a mandatory obligation to fund additional capital contributions of up to $2 million of which capital contributions of $1,325,000 have been made by each party as of March 31, 2009. Distributions will be made on a 50-50 basis except for royalties and depletion specifically allocated to FRP. Other income for the six months ended March 31, 2009 and 2008 includes a loss of $5,000 and $14,000, respectively, representing the Company's equity in the loss of the joint venture. Summary and Outlook. The flatbed and dry bulk portions of the transportation segment continues to face poor freight demand from the housing and commercial construction downturns. During the first six months of fiscal 2009, increased revenue per mile in the transportation segment and lower fuel expenses offset reduced demand for flatbed trucking services. However, the comparison was to a weak first half of the prior year. Business picked up in the second half of last year and comparable increases are not anticipated during the next six months. On March 23, 2009, the Company's tank line subsidiary entered into an agreement to sell approximately 1.5 acres of land located in Escambia County, Florida for $1,950,000. The agreement of sale is subject to certain contingencies, including the satisfactory completion of the buyer's inspection period. The sale would not affect the Company's tank line operations as the Company would relocate its truck terminal to another site in the area. Closing is dependent upon several conditions including relocation and government approvals and may not occur before September 30, 2010. The Company's real estate development business continues to expand its portfolio of warehouse-office products consistent with maintaining a watchful eye on national and regional economic health. With the exception of completing a flex office warehouse building commenced in the spring of 2008, the Company is not presently engaged in the construction of any new buildings. In July 2008, a subsidiary of the Company, FRP Bird River, LLC, entered into an agreement to sell approximately 121 acres of land in Baltimore County, Maryland to Mackenzie Investment Group, LLC. The purchase price for the property is $25,265,000, subject to certain potential purchase price adjustments. The agreement of sale is subject to certain contingencies including government approvals and closing may be two or more years away. The purchaser has placed non- refundable deposits of $1,000,000 under this contract in escrow including $650,000 in March 2009. In May 2008, the Company received final approval from the Zoning Commission of the District of Columbia of its planned unit development application for the Company's 5.8 acre undeveloped waterfront site on the Anacostia River in Washington, D.C. This site is located adjacent to the recently opened Washington Nationals Baseball Park. The site currently is leased to a subsidiary of Vulcan Materials Company under a short-term lease. The approved planned unit development permits the Company to develop a four building, mixed use project, containing approximately 545,800 square feet of office and retail space and approximately 569,600 square feet of additional space for residential and hotel uses. The approved development would include numerous publicly accessible open spaces and a waterfront esplanade along the Anacostia River. ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKS The Company is exposed to market risk from changes in interest rates. For its cash and cash equivalents, a change in interest rates affects the amount of interest income that can be earned. For its debt instruments with variable interest rates, changes in interest rates affect the amount of interest expense incurred. The Company prepared a sensitivity analysis of its cash and cash equivalents to determine the impact of hypothetical changes in interest rates on the Company's results of operations and cash flows. The interest-rate analysis assumed a 50 basis point adverse change in interest rates on all cash and cash equivalents. However, the interest-rate analysis did not consider the effects of the reduced level of economic activity that could exist in such an environment. Based on this analysis, management has concluded that a 50 basis point adverse move in interest rates on the Company's cash and cash equivalents would have an immaterial impact on the Company's results of operations and cash flows. ITEM 4. CONTROLS AND PROCEDURES The Company maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in the Company's reports under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms, and that such information is accumulated and communicated to management, including the Company's Chief Executive Officer ("CEO"), Chief Financial Officer ("CFO"), and Chief Accounting Officer ("CAO"), as appropriate, to allow timely decisions regarding required disclosure. The Company also maintains a system of internal accounting controls over financial reporting that are designed to provide reasonable assurance to the Company's management and Board of Directors regarding the preparation and fair presentation of published financial statements. All control systems, no matter how well designed, have inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance of achieving the desired control objectives. As of March 31, 2009, the Company, under the supervision and with the participation of the Company's management, including the CEO, CFO and CAO, carried out an evaluation of the effectiveness of the design and operation of the Company's disclosure controls and procedures. Based on this evaluation, the Company's CEO, CFO and CAO concluded that the Company's disclosure controls and procedures are effective in alerting them in a timely manner to material information required to be included in periodic SEC filings. There have been no changes in the Company's internal controls over financial reporting during the first six months that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting. PART II. OTHER INFORMATION Item 1A. RISK FACTORS In addition to the other information set forth in this report, you should carefully consider the factors discussed in Part I, "Item 1A. Risk Factors" in our Annual Report on Form 10-K for the year ended September 30, 2008, which could materially affect our business, financial condition or future results. The risks described in our Annual Report on Form 10-K are not the only risks facing our Company. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition and/or operating results. Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS On February 4, 2009, the Company held its annual shareholders meeting. At the meeting, the shareholders elected the following directors by the vote shown: Term Votes Votes Broker/ Ending For Withheld Non-Votes Edward L. Baker 2013 2,607,272 250,696 - Charles E. Commander III 2013 2,817,593 40,375 - The directors whose terms of office as director have continued after the meeting are John E. Anderson, John D. Baker III, Thompson S. Baker II, Luke E. Fichthorn III, Robert H. Paul III, H. W. Shad III, Martin E. Stein, Jr., and James H. Winston. In addition, the shareholders ratified the appointment by the Audit Committee of Hancock Askew & Co., LLP as the company's independent auditors for fiscal year 2009 by the vote shown: Votes for: 2,839,822 Votes against: 18,132 Abstaining: 14 Item 6. EXHIBITS (a) Exhibits. The response to this item is submitted as a separate Section entitled "Exhibit Index", on page 27. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Report to be signed on its behalf by the undersigned thereunto duly authorized. May 6, 2009 PATRIOT TRANSPORTATION HOLDING, INC. John D. Baker II John D. Baker II President and Chief Executive Officer John D. Milton, Jr. John D. Milton Executive Vice President, Treasurer, Secretary and Chief Financial Officer John D. Klopfenstein John D. Klopfenstein Controller and Chief Accounting Officer PATRIOT TRANSPORTATION HOLDING, INC. FORM 10-Q FOR THE QUARTER ENDED MARCH 31, 2009 EXHIBIT INDEX (14) Financial Code of Ethical Conduct between the Company, Chief Executive Officers and Financial Managers, as revised on January 28, 2004, which is available on the Company's website at www.patriottrans.com. (31)(a) Certification of John D. Baker II. (31)(b) Certification of John D. Milton, Jr. (31)(c) Certification of John D. Klopfenstein. (32) Certification of Chief Executive Officer, Chief Financial Officer, and Chief Accounting Officer under Section 906 of the Sarbanes-Oxley Act of 2002.