Patriot Transportation sees revenue jump in third quarter (Courtesy of the Jacksonville Business Journal) — Although fuel prices are high and hiring is tough, Jacksonville-based Patriot Transportation Holding Inc. saw its third-quarter earnings more than double.
The Jacksonville-based trucking company posted earnings of $771,000, or 22 cents per share, in the quarter that ended June 30 — up from $323,000, or 9 cents per share, in the year-ago quarter.
Although the company’s revenue miles fell 9% since Q3 2021, operating revenue by mile grew by 24.2% as the company said it increases rates and fuel surcharges and improved its mix of business.
For the quarter, the tank truck carrier posted revenue of $23.5 million, a 14.1% increase from the $20.6 million brought in in the year-ago quarter.
Although the company’s cost of operations grew, the higher wages Patriot is paying its drivers were balanced by rate increases. The pay increases are paying off, the company said: Turnover fell to 77% in the first nine months of the year after hitting 100% in the previous fiscal year.
“We continue to see steady activity on driver applications and the average number of drivers in training,” the company said in a statement.
The company said it is dealing with a driver shortage that mirrors the rest of the industry and is specifically struggling in areas like Nashville and Birmingham, CEO Rob Sandlin said on a call with analysts.
In about half of its markets, Patriot said, it will be hiking wages again, affective Aug. 5.
As well as investing in drivers, the company is also looking to spend on its fleet: After replacing 10 tractors in the first half of the year, it’s looking to buy 20 replacement tractors and a handful of trailers in the fourth quarter, for a total of about $6 million in capital expenditures over the fiscal year.
Photo courtesy of Patriot Transportation