Frozen Food Express Industries, Inc. Announces Improved Fourth Quarter and 2010 Year End Results
February 15 2011 - 11:32AM
Frozen Food Express Industries, Inc. (Nasdaq:FFEX) today announced
its financial and operating results for the quarter and year ended
December 31, 2010. Highlights for the year include:
- Operating losses for the 4th Quarter of 2010, are $1.9 million,
an improvement versus the 4th Quarter of 2009 of $3.1 million; a
62.1% improvement.
- Operating losses for the year improved by $7.2 million versus
2009; a 29.1% improvement.
- Total operating revenue for the 4th Quarter increased 3.0% to
$94.2 million from $91.4 million in the 4th Quarter of 2009.
- Total operating revenue for 2010 was $368.8 million compared to
$373.1 million in 2009.
- Operating expenses decreased 2.9% or $11.5 million to $386.5
million compared to $398.0 million in 2009.
- Net loss improved 27.3% or $4.5 million to $11.9 million versus
$16.4 million in 2009.
- Continued focus on cost control resulted in an operating ratio
improvement of 1.9% to 104.8% compared to 106.7% in 2009.
- Net loss per share of diluted common stock improved 28.1% to
($0.69) versus ($0.96) in 2009.
For the year ended December 31, 2010, total operating revenue
decreased 1.1% or $4.2 million. Total operating revenue, net of
fuel surcharges, decreased 5.1% or $16.8 million, to $311.4 million
from $328.2 million in 2009 due largely to an 8.0% reduction in
average trucks in service. The net loss for the year improved 27.3%
to $11.9 million or ($.69) per diluted share compared to $16.4
million or ($.96) per diluted share in 2009.
For the fourth quarter ended December 31, 2010, total operating
revenue increased $2.7 million to $94.2 million compared to $91.4
million in the same period of last year. Total operating
revenue excluding fuel surcharges was comparable to last year at
$78.6 million. The net loss for the fourth quarter ended December
31, 2010 improved 41.6% or $1.1 million to $1.5 million or ($0.09)
per diluted share compared to $2.6 million or ($0.15) per diluted
share last year.
Stoney M. ("Mit") Stubbs, the Company's Chairman and Chief
Executive Officer commented, "Despite continued economic
challenges, our truckload services continued to support stronger
rates and deliver improved utility. We are pleased that our
truckload revenue per total mile has held steady since rate
increases taken at the end of the first quarter of this
year. LTL services continue to benefit from increased focus on
improved service dynamics. We've grown LTL tonnage by 5.0%
this year compared to last, however we've seen that this part of
the market continues to be very competitive in rates. We believe
our improved service offering and nationwide footprint will allow
us to command stronger rates in the future."
Asset productivity (measured by revenue per truck per week)
improved 2.9% to $3,221.00 for 2010 compared to $3,129.00 in
2009. Russell Stubbs, the Company's President commented that,
"A key challenge in this market is to increase seated drivers to
provide us the benefit of incremental revenue. We ended
2010 with an average weekly trucks in service number of 1,782
trucks, which was 155 trucks less than our 2009 average. We
will grow our truckload revenue in 2011 by correcting this
shortage. We have recently opened the FFE Driving Academy to allow
us to train and develop new truck driving professionals and have
also invested in our existing driver development infrastructure to
support increased driver recruitment efforts. This combined
with a new, more robust contractor lease program will give us the
additional capacity needed in this market to grow our revenue in
2011. We expect these enhancements will significantly improve
our ability to add qualified drivers to our existing fleet and take
advantage of opportunities in the truckload marketplace."
Mit Stubbs concluded, "We believe that despite the challenges
from continued weakness in the economy, our employees have
maintained their resolve to improve key elements of our business
model such as improved service metrics, higher truck utility and
tonnage growth from our LTL services, each of which will allow us
to continue to improve our operating performance."
About FFEX
Frozen Food Express Industries, Inc. is one of the leading
temperature-controlled truckload and less-than-truckload carriers
in the United States with core operations in the transport of
temperature-controlled products and perishable goods including
food, health care and confectionery products. Service is offered in
over-the-road and intermodal modes for temperature-controlled
truckload and less-than-truckload, as well as dry truckload. We
also provide brokerage/logistics and dedicated services to our
customers. Additional information about Frozen Food Express
Industries, Inc. can be found at http://www.ffeinc.com. To join our
email alert list, please click on the following link:
http://financials.ffex.net/alerts.cfm. The Company's common stock
is traded on the Nasdaq Global Select market under the symbol
FFEX.
The Frozen Food Express Industries, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=3209
Forward-Looking Statements
This press release contains certain statements that may be
considered forward-looking statements within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended. Forward-looking
statements include statements relating to plans, strategies,
objectives, expectations, intentions, and adequacy of resources,
and may be identified by words such as "will", "could", "should",
"believe", "expect", "intend", "plan", "schedule", "estimate",
"project", and similar expressions. Those statements are based on
current expectations and are subject to uncertainty and change.
Although our management believes that the expectations reflected in
such forward-looking statements are reasonable, there can be no
assurance that such expectations will be realized. Should one or
more of the risks or uncertainties underlying such expectations not
materialize, or should underlying assumptions prove incorrect,
actual results may vary materially from those expected.
Among the key factors that are not within our management's
control and that may cause actual results to differ materially from
those projected in such forward-looking statements are demand for
the company's services and products, and its ability to meet that
demand, which may be affected by, among other things, competition,
weather conditions and the general economy, the availability and
cost of labor and owner-operators, the ability to negotiate
favorably with lenders and lessors, the effects of terrorism and
war, the availability and cost of equipment, fuel and supplies, the
market for previously-owned equipment, the impact of changes in the
tax and regulatory environment in which the company operates,
operational risks and insurance, risks associated with the
technologies and systems used and the other risks and uncertainties
described in our filings with the Securities and Exchange
Commission. Given the volatility in fuel prices and the impact
fuel surcharge revenues have on total operating revenues, we often
make reference to total operating revenue excluding fuel surcharges
to provide a more consistent basis for comparison of operating
revenue without the impact of fluctuating fuel prices. Readers
should review and consider these factors along with the various
disclosures by the Company in its press releases, stockholder
reports and filings with the Securities and Exchange Commission.
The company does not assume, and specifically disclaims, any
obligation to update or revise any forward-looking statements to
reflect actual results or changes in the factors affecting the
forward-looking information.
FROZEN FOOD EXPRESS
INDUSTRIES, INC. AND SUBSIDIARIES |
Consolidated Statements
of Operations |
For the Three and Twelve Months
Ended December 31, |
|
|
|
|
|
|
(in thousands, except
per-share amounts) |
|
Three
Months |
Twelve
Months |
|
2010 |
2009 |
2010 |
2009 |
Total operating revenue |
$ 94,153 |
$ 91,449 |
$ 368,822 |
$ 373,051 |
Operating expenses |
|
|
|
|
Salaries, wages and related expenses |
29,846 |
28,026 |
117,134 |
122,141 |
Purchased transportation |
16,325 |
19,611 |
72,297 |
81,363 |
Fuel |
19,784 |
16,404 |
71,566 |
62,655 |
Supplies and maintenance |
11,876 |
11,473 |
47,886 |
47,347 |
Revenue equipment rent |
8,731 |
9,335 |
35,847 |
38,721 |
Depreciation |
4,208 |
4,254 |
16,322 |
17,550 |
Communications and utilities |
1,317 |
1,247 |
4,975 |
5,145 |
Claims and insurance |
2,253 |
4,371 |
13,017 |
15,305 |
Operating taxes and licenses |
953 |
992 |
4,162 |
4,648 |
Gain on sale of property and
equipment |
(511) |
(61) |
(1,103) |
(136) |
Miscellaneous |
1,288 |
858 |
4,389 |
3,225 |
Total operating expenses |
96,070 |
96,510 |
386,492 |
397,964 |
Loss from operations |
(1,917) |
(5,061) |
(17,670) |
(24,913) |
|
|
|
|
|
Interest and other (income) expense |
|
|
|
|
Interest income |
(2) |
(1) |
(32) |
(6) |
Interest expense |
162 |
21 |
470 |
30 |
Equity in earnings of limited
partnership |
(373) |
(267) |
(816) |
(739) |
Life insurance and other |
125 |
106 |
209 |
697 |
Total interest and other
income |
(88) |
(141) |
(169) |
(18) |
Net loss before income tax |
(1,829) |
(4,920) |
(17,501) |
(24,895) |
Income tax benefit |
(330) |
(2,354) |
(5,571) |
(8,480) |
Net loss |
$ (1,499) |
$ (2,566) |
$ (11,930) |
$ (16,415) |
|
|
|
|
|
Net loss per share of common stock |
|
|
|
|
Basic |
$ (0.09) |
$ (0.15) |
$ (0.69) |
$ (0.96) |
Diluted |
$ (0.09) |
$ (0.15) |
$ (0.69) |
$ (0.96) |
Weighted average shares outstanding |
|
|
|
|
Basic |
17,429 |
17,149 |
17,275 |
17,080 |
Diluted |
17,429 |
17,149 |
17,275 |
17,080 |
Dividends declared per common share |
$ -- |
$ -- |
$ -- |
$ 0.03 |
|
FROZEN FOOD EXPRESS
INDUSTRIES, INC. AND SUBSIDIARIES |
Operating
Statistics |
For the Three and Twelve Months
Ended December 31, |
|
|
Three
Months |
Twelve
Months |
Revenue from |
2010 |
2009 |
2010 |
2009 |
Temperature-controlled fleet |
$ 31,176 |
$ 32,797 |
$ 117,111 |
$ 136,427 |
Dry-freight fleet |
12,084 |
10,002 |
54,281 |
50,807 |
Total truckload linehaul services |
43,260 |
42,799 |
171,392 |
187,234 |
Dedicated fleets |
4,482 |
4,737 |
17,467 |
19,707 |
Total truckload |
47,742 |
47,536 |
188,859 |
206,941 |
Less-than-truckload linehaul services |
28,055 |
27,949 |
110,467 |
109,054 |
Fuel surcharges |
15,524 |
12,811 |
57,410 |
44,876 |
Brokerage |
1,410 |
1,851 |
6,798 |
7,266 |
Equipment rental |
1,422 |
1,302 |
5,288 |
4,914 |
Total operating revenue |
94,153 |
91,449 |
368,822 |
373,051 |
|
|
|
|
|
Operating expenses |
96,070 |
96,510 |
386,492 |
397,964 |
Loss from freight operations |
$ (1,917) |
$ (5,061) |
$ (17,670) |
$ (24,913) |
Operating ratio |
102.0% |
105.5% |
104.8% |
106.7% |
|
|
|
|
|
Total truckload revenue |
$ 47,742 |
$ 47,536 |
$ 188,859 |
$ 206,941 |
Less-than-truckload linehaul revenue |
28,055 |
27,949 |
110,467 |
109,054 |
Total linehaul and dedicated fleet
revenue |
$ 75,797 |
$ 75,485 |
$ 299,326 |
$ 315,995 |
|
|
|
|
|
Weekly average trucks in service |
1,790 |
1,824 |
1,782 |
1,937 |
Revenue per truck per week |
$ 3,222 |
$ 3,149 |
$ 3,221 |
$ 3,129 |
|
|
|
|
|
Statistical and revenue data
: |
|
|
|
|
Truckload |
|
|
|
|
Total linehaul miles (a) |
31,247 |
33,785 |
126,090 |
149,412 |
Loaded miles (a) |
27,732 |
29,916 |
111,537 |
133,956 |
Empty mile ratio (b) |
11.2% |
11.5% |
11.5% |
10.3% |
Linehaul revenue per total mile (c) |
$ 1.38 |
$ 1.27 |
$ 1.36 |
$ 1.25 |
Linehaul revenue per loaded mile (d) |
$ 1.56 |
$ 1.43 |
$ 1.54 |
$ 1.40 |
Linehaul shipments (a) |
30.8 |
36.8 |
124.3 |
154.3 |
Loaded miles per shipment (e) |
900 |
812 |
897 |
868 |
Less-than-truckload |
|
|
|
|
Hundredweight (a) |
2,010 |
1,988 |
8,001 |
7,619 |
Shipments (a) |
64.9 |
62.9 |
257 |
247 |
Linehaul revenue per hundredweight
(f) |
$ 13.96 |
$ 14.06 |
$ 13.81 |
$ 14.31 |
Linehaul revenue per shipment (g) |
432 |
445 |
431 |
442 |
Average weight per shipment (h) |
3,096 |
3,163 |
3,119 |
3,086 |
|
|
|
|
|
Tractors in service as of December 31 |
|
|
1,803 |
1,943 |
Trailers in service as of December 31 |
|
|
3,503 |
3,786 |
Non-driver employees as of December 31 |
|
|
714 |
682 |
|
|
|
|
|
Computational
notes: |
|
|
|
|
(a) In thousands. |
(b) Total truckload linehaul
miles less truckload loaded miles divided by total truckload
linehaul miles. |
(c) Revenue from truckload
linehaul services divided by truckload total linehaul miles. |
(d) Revenue from truckload
linehaul services divided by truckload loaded miles. |
(e) Total truckload loaded miles
divided by number of truckload linehaul shipments. |
(f) LTL revenue divided by LTL
hundredweight. |
(g) LTL revenue divided by number
of LTL shipments. |
(h) LTL hundredweight times one
hundred divided by number of LTL shipments. |
|
Frozen Food Express
Industries, Inc. and Subsidiaries |
Consolidated Balance
Sheets |
December
31, |
(in
thousands) |
|
Assets |
2010 |
2009 |
Current assets |
|
|
Cash and cash equivalents |
$ 1,203 |
$ 3,667 |
Accounts receivable, net |
41,921 |
41,318 |
Tires on equipment in use, net |
5,982 |
5,592 |
Deferred income taxes |
1,150 |
1,532 |
Property held for sale |
-- |
1,019 |
Other current assets |
6,575 |
12,706 |
Total current assets |
56,831 |
65,834 |
|
|
|
Property and equipment, net |
72,993 |
74,845 |
Other assets |
5,081 |
5,121 |
Total assets |
$ 134,905 |
$ 145,800 |
|
|
|
Liabilities and Shareholders'
Equity |
|
|
Current liabilities |
|
|
Accounts payable |
$ 27,443 |
$ 23,773 |
Insurance and claims accruals |
8,697 |
10,119 |
Accrued payroll and deferred
compensation |
5,032 |
3,837 |
Accrued liabilities |
709 |
1,953 |
Total current liabilities |
41,881 |
39,682 |
|
|
|
Long-term debt |
5,689 |
-- |
Deferred income taxes |
3,153 |
9,009 |
Insurance and claims accruals |
5,373 |
7,374 |
Total liabilities |
56,096 |
56,065 |
|
|
|
Shareholders' equity |
|
|
Common stock, $1.50 par value per
share; 75,000 shares authorized;18,572 shares issued |
27,858 |
27,858 |
Additional paid-in capital |
1,353 |
2,923 |
Retained earnings |
58,242 |
70,172 |
|
87,453 |
100,953 |
Treasury stock (1,146 and 1,477 shares),
at cost |
(8,644) |
(11,218) |
Total shareholders' equity |
78,809 |
89,735 |
Total liabilities and shareholders'
equity |
$ 134,905 |
$ 145,800 |
CONTACT: Frozen Food Express Industries, Inc.
Stoney M. "Mit" Stubbs, Jr., Chairman and CEO
Russell Stubbs, President
John Hickerson, EVP and COO
John McManama, Senior VP and CFO
(214) 630-8090
ir@ffex.net
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