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Discontinued operations
 3 Months Ended
Jun. 30, 2011
Discontinued operations

(11) Discontinued operations. In August 2009 the Company sold its flatbed trucking company, SunBelt Transport, Inc. ("SunBelt"). Under the agreement, the Buyer purchased all of SunBelt’s tractors and trailers, leased the SunBelt terminal facilities in Jacksonville, Florida for 36 months at a rental of $5,000 per month and leased the terminal facilities in South Pittsburgh, Tennessee for 60 months at a rental of $5,000 per month with an option to purchase the Tennessee facilities at the end of the lease for payment of an additional $100,000. The South Pittsburgh lease was recorded as a sale under bargain purchase accounting. The purchase price received for the tractors and trailers and inventories was a $1 million cash payment and the delivery of a Promissory Note requiring 60 monthly payments of $130,000 each including interest at 7%, secured by the assets of the business conveyed. Proceeds from the sale of equipment of $923,000 and an extra payment of $2,055,000 were partial prepayments to the note in fiscal 2011. The Company retained all pre-closing receivables and liabilities.

 

SunBelt has been accounted for as discontinued operations in accordance with ASC Topic 205-20 Presentation of Financial Statements – Discontinued Operations. All periods presented have been restated accordingly.

 

In December 2010, a subsidiary of the Company, Florida Rock Properties, Inc., sold approximately 1,777 acres of land in Caroline County, Virginia, to the Commonwealth of Virginia, Board of Game and Inland Fisheries. The purchase price for the property was $5,200,000, subject to certain deductions. The Company also donated the $5,402,000 value of minerals and aggregates and recognized a $2,053,000 permanent tax benefit. The Company's book value of the property was $276,000.

 

A summary of discontinued operations is as follows (in thousands):

  Three Months ended Nine Months ended
  June 30, June 30,
  2011 2010 2011 2010
Revenue  $    15      15      45      70
Operating expenses      (18)    (147)    (278)    (283)
Gain on property sale before taxes        -        -   4,665       -
Income before income taxes  $    33     162   4,988     353
Provision for income taxes      (13)     (63)     137    (136)
Income from discontinued operations  $    20      99   5,125     217

 

The components of the balance sheet are as follows:

  June 30, September 30,
  2011 2010
Accounts receivable  $         2            8
Deferred income taxes           20          417
Property and equipment, net          109          117
Assets of discontinued operations  $       131          542
     
Accounts payable  $        16          154
Accrued payroll and benefits            2            2
Accrued liabilities, other           22           61
Insurance liabilities           72        1,110
Liabilities of discontinued operations  $       112        1,327