Patriot Transportation Holding has plenty of tanks but hasn't fired a shot. The company's Transportation segment, comprising Florida Rock & Tank Lines subsidiary, transports liquid and dry bulk commodities, mainly petroleum (including ethanol) and chemicals, in tank trucks. Patriot Transportation's combined fleet of about 415 trucks and 520 trailers operates primarily in the southeastern and mid-Atlantic US. The company's Real Estate unit, comprising Florida Rock Properties and FRP Development, owns office and warehouse properties, as well as sand and gravel deposits on the East Coast that are leased to Vulcan Materials Company.
Florida Rock & Tank Lines has 20 terminal locations spanning Florida, Georgia, North Carolina, South Carolina, Alabama and Tennessee.
Sales and Marketing
Patriot's 10 largest customers accounted for 55% of its total transportation segment revenue for 2011. Murphy Oil alone accounts for roughly 20% of this segment's revenues each year. The loss of one of these customers could have a detrimental effect on its revenue and income.
Patriot saw its revenue rise and its profits skyrocket from 2010 to 2011. Total sales increased by 8% in 2011 due to 5% growth in its real estate rentals segment and a 9% uptick in its core transportation operations, which benefited from a longer average haul length. Profits surged by almost 66%, mostly as a result of the rise in total sales and about $5 million it earned from discontinued operations.
Patriot's strategy for growth involves acquiring related businesses and increasing it fleet size so it can carry more loads and attract additional customers. In 2010 and 2009 it procured a total of roughly 80 tractors and seven trailers. During 2011 it purchased 47 new tractors, eight used tractors, and 20 trailers, and its budget for 2012 included 49 new tractors and 24 new trailers. – less