EX-99 2 pressreleasefinal.txt PRESS RELEASE EXHIBIT 99 PATRIOT TRANSPORTATION HOLDING, INC./NEWS Contact: John E. Anderson Chief Executive Officer 904/396-5733, Ext. 101 PATRIOT TRANSPORTATION HOLDING, INC. ANNOUNCES RESTATED RESULTS OF OPERATIONS. Jacksonville, Florida; December 23, 2005 - Patriot Transportation Holding, Inc. (NASDAQ-PATR) announced today that it will revise its previously reported earnings results for the fiscal 2005 fourth quarter and full year and will restate its financial statements for certain prior periods. The impact of this restatement is to increase revenues, earnings before income taxes, net earnings and diluted earnings per common share. The adjustment has no impact on the Company's cash flows or loan compliance. In November 2005, the Company initiated a review of certain aspects of its accounting practices regarding real estate leases. As a result of this review, the Company changed its practice related to scheduled rate increases on operating leases and restated certain historical financial information for prior periods to correct its lease accounting. Historically, the Company has recognized rental revenue on a cash basis for real estate leases with scheduled annual rate increases of 3% or less. Based on a re-examination of the applicable accounting literature, the Company determined that the proper accounting practice is to recognize rental revenue on a straight line basis over the contractual term of the lease. On December 22, 2005, the Audit Committee of the Board of Directors of the Company concluded that the Company will restate its consolidated statements of income, shareholders' equity and cash flows for the year ended September 30, 2003. For the year ended September 30, 2004, the Company will restate its consolidated statement of shareholder's equity, and its consolidated balance sheet as of September 30, 2004. There were not any differences related to corrections reported in the consolidated statements of income or cash flows for the year ended September 30, 2004. The restatement also affected periods prior to fiscal 2003. The impact of the restatement on such prior periods will be reflected as an addition of $810,000 to retained earnings as of September 30, 2002. The Company will also restate its quarterly results of operations for fiscal 2005. As a result of the restatement, these financial statements should no longer be relied upon. Continued ---------------------------------------------------------------------- 1801 Art Museum Drive / Jacksonville, Florida 32207 / (904) 396-5733 As a result of this restatement, the Company will adjust its financial results as follows (in thousands, except per share data): Year Ended September 30, 2005 ----------------------------- As Previously Reported Adjustments As Adjusted -------- ----------- ----------- Total revenues $ 130,855 181 131,036 Gross profit 24,812 181 24,993 Operating profit 15,010 181 15,191 Income from continuing operations before tax 11,764 181 11,945 Provision for income taxes 4,267 69 4,336 Income from continuing operations 7,497 112 7,609 Net Income 7,497 112 7,609 Earnings per common share: Basic $ 2.54 0.04 2.58 Diluted $ 2.47 0.03 2.50 Other assets 5,422 1,608 7,030 Deferred income taxes 13,783 611 14,394 Retained earnings 79,507 997 80,504 Total shareholders' equity 106,904 997 107,901 As a result of this restatement, the Company will adjust its financial results as follows (in thousands, except per share data):
Quarterly Results for the Year Ended September 30, 2005 ------------------------------------------------------- First Quarter Second Quarter Third Quarter Fourth Quarter ------------- -------------- ------------- -------------- As As As As Previously As Previously As Previously As Previously As Reported Restated Reported Restated Reported Restated Reported Restated -------- -------- --------- -------- -------- -------- -------- -------- Revenues 31,374 31,419 32,014 32,059 33,061 33,106 34,406 34,452 Gross profit 5,917 5,962 5,669 5,714 6,807 6,852 6,420 6,465 Income from continuing Operations 1,656 1,684 1,545 1,573 2,112 2,140 2,184 2,212 Net income 1,656 1,684 1,545 1,573 2,112 2,140 2,184 2,212 Earnings per common share: Basic 0.56 0.57 0.52 0.53 0.71 0.72 0.74 0.75 Diluted 0.55 0.56 0.51 0.52 0.69 0.70 0.71 0.72
Year Ended September 30, 2004 ----------------------------- As Previously Reported Adjustments As Restated -------- ----------- ----------- Other assets $ 4,137 1,427 5,564 Deferred income taxes 15,767 542 16,309 Retained earnings 72,010 885 72,895 Total shareholders' equity 98,087 885 98,972 Year Ended September 30, 2003 ----------------------------- As Previously Reported Adjustments As Restated -------- ----------- ----------- Total revenues $ 102,440 121 102,561 Gross profit 17,469 121 17,590 Operating profit 9,316 121 9,437 Income from continuing operations before tax 5,824 121 5,945 Provision for income taxes 2,272 46 2,318 Income from continuing operations 3,552 75 3,627 Net Income 4,575 75 4,650 Earnings per common share: Bas $ 1.51 0.02 1.53 Diluted $ 1.49 0.02 1.51 Cash flows from operating activities: Net income $ 4,575 75 4,650 Deferred income taxes 879 46 925 Net changes in operating assets and liabilities: Other assets (705) (121) (826) Net cash provided by Operating activities 15,345 - 15,345 The full impact of the restatement will be set forth in the Company's Annual Report on Form 10K which is expected to be filed by December 29, 2005. Investors are cautioned that any statements in this press release which relate to the future are, by their nature, subject to risks and uncertainties that could cause actual results and events to differ materially from those indicated in such forward-looking statements. These include general business conditions; competitive factors; political, economic, regulatory and climatic conditions; driver availability and cost; regulations regarding driver qualifications and hours of service; freight demand for petroleum products and for building and construction materials in the Company's markets; risk insurance markets; demand for flexible warehouse/office facilities; interest rates; levels of mining activity; pricing; energy costs and technological changes. Additional information regarding these and other risk factors and uncertainties may be found in the Company's filings with the Securities and Exchange Commission. 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, Inc. is a Southeastern transportation company concentrating in the hauling by motor carrier of liquid and dry bulk commodities. SunBelt Transport, Inc. serves the flatbed portion of the trucking industry in the Southeastern states, hauling primarily construction materials. The Company's real estate group, comprised of FRP Development Corp. and Florida Rock Properties, Inc., acquires, constructs, leases, operates and manages land and buildings to generate both current cash flows and long-term capital appreciation. The real estate group also owns real estate which is leased under mining royalty agreements or held for investment.