FRP Holdings, Inc. (NASDAQ: FRPH) Announces Results For The Fourth Quarter And Fiscal Year Ended September 30, 2015

Total revenues in this segment were $1,680,000, up $220,000, due mainly to an increase in tons mined this quarter versus the same quarter last year. 

Land Development and Construction Segment:

The Land Development and Construction segment is responsible for seeking opportunities to acquire existing income producing properties and managing and developing our non-income producing properties into income production; thus, this segment receives minimal revenues but incurs significant costs to accomplish this objective.  Revenues were $245,000, up $45,000 over last year's fourth quarter, due to higher real estate tax reimbursement from the ground lease at our Square 664E property in D.C.  Costs of operating this segment were $877,000 in the quarter, an increase of $178,000, driven primarily by higher property taxes of $131,000 due to the increase in assessed value of our future Phases 2-4 at our Anacostia property in DC.  We spent $2,023,000 in this segment on capital improvements in the fourth quarter primarily on construction of the new spec building at our Hollander Business Park ($1,770,000) and the replacement of the bulkhead at Square 664E ($140,000) plus some additional land development work on the Windlass Run Phase 2 residential site.

Adjusted Fourth Quarter Consolidated Results.  The following discussion includes certain non-GAAP financial measures ("adjusted") within the meaning of Regulation G promulgated by the Securities and Exchange Commission ("Regulation G") to supplement the financial results as reported in accordance with GAAP. Post Spin-off we are reporting any net gain/(loss) from the transportation business as "discontinued operations" and we currently have no other discontinued operations being reported.  GAAP accounting rules do not allow corporate overhead expenses to be allocated to a discontinued operation of the Company; thus, those corporate expenses attributable to the transportation business prior to the spin-off are charged to the Company as part of continuing operations.  The non-GAAP financial measures discussed below are adjusted income from continuing operations and adjusted consolidated operating profit. These non-GAAP financial measures exclude the corporate management fees attributable to the transportation business prior to the spin-off that are not allocable to the transportation business due to it being a discontinued operation. The Company uses these metrics to analyze its continuing operations and to monitor, assess, and identify meaningful trends in its operating and financial performance. These measures are not, and should not be viewed as, substitutes for GAAP financial measures. Refer to "Non-GAAP Financial Measures" in this press release for a more detailed discussion, including reconciliations of these non-GAAP financial measures to their most directly comparable GAAP financial measures. 

Fourth quarter revenues for the Company were up 10.4% to $8,899,000.  For the fourth quarter of fiscal 2015, adjusted income from continuing operations was $2,071,000, an increase of $350,000 or 20.3% compared to $1,721,000 in the same quarter last year.  Fourth quarter adjusted consolidated operating profit was $3,788,000, an increase of $296,000 or 8.5% compared to $3,492,000 in the same quarter last year. 

The improvement in fourth quarter results is mostly attributable to the completion and occupancy of the third build-to-suit building at Patriot Business Park during the first quarter of fiscal 2015, improved volumes at several of our mining locations and improved occupancy levels somewhat offset by increases in (i) depreciation expense, (ii) non-reimbursed property taxes (at our Anacostia property), and (iii) higher overhead expenses.

Fiscal Year 2015 Consolidated Results of Continuing Operations.  

Income from continuing operations was $6,093,000 or $.62 per share in fiscal 2015, an increase of $909,000 or 17.5%, compared to fiscal 2014.  For fiscal 2015, net operating income in the Asset Management Segment, management's chosen metric for measuring shareholder value creation in that segment, grew 12.4% to $21,043,000.  Fiscal 2015 mining royalty revenues grew 14.1% to $5,999,000. 

Fiscal Year 2015 Segment Operating Results.

Asset Management Segment:

We continue to add square feet to this segment's portfolio (129,850 in fiscal 2015) through construction and acquisition as we convert our non-income producing properties into income production.  Rental revenues in this segment were $22,946,000, up $2,109,000 or 10.1%, due to increases in rental rates, occupancy and total occupied square feet in this segment as we have continued to add new buildings to the portfolio over the past four fiscal years.  Cost of operations increased $1,393,000 due mainly to higher depreciation and higher property taxes as a result of the addition of new assets to the portfolio and higher corporate expenses.  Operating profit this year was $12,473,000, up $1,352,000 or 12.2%. Average annual occupancy was 90.8% during fiscal 2015 versus 89.8% during fiscal 2014.  Rent growth for leases renewed during the fiscal year showed a 6.95% increase over the prior lease term. Over half of those renewals were from leases that had terms beginning in late 2009 and early 2010 when rental rates were far more in favor of the tenant. 

Mining Royalty Lands Segment:

Mining sales volumes at several of our locations increased in fiscal 2015 resulting in an overall increase of 1,161,652 tons sold, up 23.4% over fiscal 2014.  As a result, royalty revenues were $5,999,000, up $743,000 or 14.1% in fiscal 2015.  Our operating profit was $4,615,000, up $497,000 or 12.1% versus fiscal 2014. We believe that volumes will continue to increase at our locations as construction activity in Florida and Georgia improves, and Vulcan (i) continues the recent commencement of mining on our property at Astatula, (ii) shifts most of their production to our property at Manassas for the foreseeable future and (iii) is successful at obtaining final permit approval for our Ft. Myers location. 

Land Development and Construction Segment:

During fiscal 2015, Management primarily focused its time in this segment on (i) working with our joint venture partner on the management of the on-going construction of Phase I at Riverfront on the Anacostia (n/k/a "Dock 79"), (ii) completion of the third build to suit at Patriot Business Park (iii) commencement of construction of a new 80,000 square foot spec warehouse/office building at our Hollander Business Park (iv) the sale of Windlass Run Residential Phase 2 and the evaluation of suitable Section 1031 replacement properties and (v) the evaluation of a proposed joint venture for the development and construction of a single story office park on the remainder of our undeveloped lands in the Windlass Run Business Park. In fiscal 2015, we invested over $4,085,000 with respect to the capital projects reported in this segment.  Revenues were $982,000, up $178,000, over last year due mainly to higher real estate tax reimbursement from the ground lease at our Square 664E property in D.C.  Costs of operating this segment were $3,660,000 in fiscal 2015 which was an increase of $1,039,000 driven primarily by higher property taxes ($479,000) due to the increase in assessed values of our 664E property and our Phases II-IV land at our Anacostia property and higher operating expenses ($181,000) as we undertook work to begin the reconstruction of the bulkhead at our Square 664E property in anticipation of future high rise development. 

Adjusted Fiscal Year 2015 Consolidated Results.

Fiscal 2015 total revenues for the Company were up 11.8% to $34,646,000. Adjusted income from continuing operations was $6,752,000 versus $6,822,000 in fiscal 2014.  The decrease in adjusted income from continuing operations was due primarily to a (i) $648,000 increase in interest expense and (ii) $476,000 gain on investment land sold in fiscal 2014 versus a loss of $34,000 on investment land sold in fiscal 2015.  Interest expense was greater primarily as a result of $722,000 more in capitalized interest in fiscal 2014 and $116,000 in prepayment penalties in fiscal 2015 as the Company prepaid the $1,314,000 remaining principal balance on 8.55% and 7.95% mortgages in January. Adjusted operating profit improved to $13,262,000, a 6.7% increase over fiscal 2014. 

Summary and Outlook.  With the successful completion of the spin-off behind us, we are focused on building shareholder value through our real estate holdings - mainly by growing our portfolio and converting non-income producing assets into income production.  We are very pleased with the results we achieved in fiscal 2015 as the Company saw our revenue grow by $3,668,000 (an 11.8% increase) over FY 2014 and our adjusted operating profit increase by $837,000 (up 6.7%).  During 2016, we expect the Asset Management Segment to add at least two additional income producing buildings to our portfolio.  Riverfront on the Anacostia continues to keep our focus as we begin planning and negotiating on Phase 2.  As of now, Phase I looks poised to have a successful impact on the Company in the near future.  Fiscal 2015 provided us the first real improvement in mining royalties since the Great Recession and, barring another major economic downturn in the US, we are confident that trend will continue for the foreseeable future. 

Subsequent Events.

On October 30, 2015 the Company closed on the sale of the Windlass Run Residential Phase 2 property for a total purchase price of $11,287,754 (inclusive of all extension fees) and the proceeds were used in a tax deferred reverse Section 1031 exchange to acquire the Port Capital property which closed on October 19, 2015 for a total purchase price of $9,900,000.  The Port Capital property is a 91,218 square foot warehouse/office building located in Howard County, MD.  The building was 100% occupied by a single tenant at the time of closing with a lease expiration of September 30, 2025 at an average annual gross rental rate of $641,519.   Additionally, following the close of fiscal 2015, the Company reached agreement with the former tenant on the Anacostia property to pay $3 million towards environmental remediation costs and also entered into statute of limitations tolling agreements with three other potentially responsible parties as a preface to settlement negotiations with those parties.

Conference Call.  

The Company will host a conference call on Wednesday, December 2, 2015 at 2:00 p.m. (EST).  Analysts, stockholders and other interested parties may access the teleconference live by calling 1-800-853-3898 (pass code 47423) within the United States.  International callers may dial 334-323-7224 (pass code 47423).  Computer audio live streaming is available via the Internet through the Company's website at www.frpholdings.com. You may also click on this link for the live streaming http://stream.conferenceamerica.com/frp120215. For the archived audio via the internet, click on the following link http://archive.conferenceamerica.com/archivestream/frp120215.wma. If using the Company's website, click on the Investor Relations tab, then select the earnings conference stream.  An audio replay will be available for sixty days following the conference call. To listen to the audio replay, dial toll free 877-919-4059, international callers dial 334-323-0140.  The passcode of the audio replay is 75999554.  Replay options: "1" begins playback, "4" rewind 30 seconds, "5" pause, "6" fast forward 30 seconds, "0" instructions, and "9" exits recording.  There may be a 30-40 minute delay until the archive is available following the conclusion of the conference call.

FRP HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF INCOME (In thousands except per share amounts) (Unaudited)
	THREE MONTHS ENDED									TWELVE MONTHS ENDED
	SEPTEMBER 30,									SEPTEMBER 30,
	2015						2014			2015		2014
Revenues:
Rental revenue	$	5,879					5,518			23,410		21,327
Royalty and rents		1,650					1,437			5,999		5,256
Revenue – reimbursements		1,370					1,108			5,237		4,395
Total Revenues		8,899					8,063			34,646		30,978
Cost of operations:
Depreciation, depletion and amortization		1,812					1,712			7,378		6,705
Operating expenses		1,122					1,159			4,609		4,391
Property taxes		1,120					901			4,443		3,494
Management company indirect		419					282			1,647		1,424
Corporate expenses		638					1,130			4,388		5,224
Total cost of operations		5,111					5,184			22,465		21,238
Total operating profit		3,788					2,879			12,181 Werbung Mehr Nachrichten zur FRP Holdings Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 09:57 - PR Newswire Samson Rock Capital LLP - Form 8.3 - Mattioli Woods plc 09:51 - PR Newswire Ninety One UK Ltd - Form 8.3 - BHP Group Limited Basin Uranium - Es geht los    Der Uran-Superzyklus ist gestartet! weiterlesen» Anzeige wo-site-teaser-box-16791_site-teaser-box_2024-04-29_07%253A00%253A00_2024-04-30_09%253A00%253A59