Patriot Transportation Holding, Inc. (NASDAQ:PATI) Q1 2023 Earnings Call Transcript

Matt McNulty: If you’re borrowing money, with interest rates higher, the leasing companies are looking to get imputed interest rate into their number, that’s pretty high. And when we have money in the bank, it just makes less sense for us to do that.

John Deysher: Yeah, okay.

Matt McNulty: I did check, our turnover rate was 80% in the same quarter last year.

John Deysher: It was 80%, okay, and now it was 73%. Okay, that’s good, that’s fine. We haven’t seen the Q yet, but what was the CapEx for Q1?

Matt McNulty: $2 million net.

John Deysher: $2 million net, and the total is going to be $12 million, so that leaves about $10 million. How does the $10 million unfold over the next three quarters, roughly?

Rob Sandlin: So the way the trackers are coming in is we’ve got ten a quarter, provided that they deliver them on time from one of our vendors and then the lease tractors are spread over about three months across the third and maybe filter a little bit into the fourth quarter. But I think most of that’s going to hit in the third quarter and that’s the 29 trucks.

Matt McNulty: Yes, late second, mostly third.

Rob Sandlin: Late second, mostly third.

Matt McNulty: Pretty Sure.

John Deysher: So then the remaining $10 million folds out how over the next three quarters?

Matt McNulty: I can do that for you, so.

Rob Sandlin: It’s going to be heavy 29, 30 and can be 40 trucks. Three or four maybe?

Matt McNulty: No, it’ll be more. It’ll be heavy at either third. So it’s probably more like two, six and two probably. That’s right. That’s right.

Rob Sandlin: No, that’s right. Yeah, that one makes sense.

John Deysher: If they come on time.

Rob Sandlin: If they are here on time. The 29 have to be here on time.

Matt McNulty: For 29 we’re pretty much locked in with them. They will ride for that, that late second and third quarter.

John Deysher: Okay. So two, six and two for quarters two, three and four, is that right?

Rob Sandlin: Correct. Yes.

John Deysher: All right, good. That’s all we have. Thanks very much.

Rob Sandlin: Okay, thank you.

Operator: Thank you. There are no further questions in the queue at this time. So I will hand it back to Mr. Sandlin for any closing comments you may have.

Robert Sandlin: Thank you, and thank you all for your interest in Patriot Transportation. We look forward to talking with you next quarter.

Operator: Thank you, everyone, and this does conclude today’s conference call. You may disconnect your lines at this time, and have a wonderful day and we thank you for your participation.