DALLAS, Feb. 24, 2010 (GLOBE NEWSWIRE) -- Frozen Food Express Industries, Inc. (Nasdaq:FFEX) today announced its financial and operating results for the quarter and year ended December 31, 2009. Highlights for the year include:
- Total revenues of $373.1 million
- Operating expenses of $398.0 million, a reduction of $90.5 million from 2008 due to several cost reduction initiatives in response to an extremely challenging economic environment in 2009.
- Steady focus on cost control which resulted in an operating ratio improvement of 2.7% in the second half of the year versus the first half of the year; 105.3% versus 108.0%
- No debt outstanding and cash on hand of $3.7 million
For the year ended December 31, 2009, revenues declined $117.5 million or 24% from 2008. Net of fuel surcharges, revenue decreased $53.2 million or 14% from $381.4 million last year to $328.2 million in 2009. The net loss for the year was $16.4 million compared to a net income of $605,000 in 2008 as the Company battled a difficult operating environment due to the severe economic downturn in the United States. On a per share basis, the loss equates to ($0.96) per diluted share in 2009 compared to a net income of $0.04 per diluted share in 2008.
For the fourth quarter, revenue excluding fuel surcharges decreased 15.7% to $78.6 million from $93.3 million in the fourth quarter of 2008. Total revenue for the quarter declined 18.6% to $91.4 million from $112.3 million in 2008. The net loss increased by $2.4 million to $2.6 million or $0.15 per diluted share from a loss of $0.2 million or $0.01 per diluted share in the fourth quarter of the previous year.
Stoney M. ("Mit") Stubbs, Chairman and Chief Executive Officer commented: "We are disappointed in the operating results for the year, but given the economic conditions of 2009, which impacted virtually every industry, we are proud that our employees maintained their focus in providing exemplary service to our customers. Our management team succeeded, under difficult conditions, in adjusting our infrastructure to match the needs of shippers, while staying the course with initiatives that will improve our service product for years to come. We aggressively managed our working capital which allowed us to generate a positive cash flow for the year and remain debt free. The transportation industry is under extreme pricing pressure. This pressure, and its impact on operating margins, was a key contributor to our operating losses. In 2010, it is essential that we work with our customers to find an acceptable pricing level that will allow us an appropriate return on our service commitment to them."
Reflective of the tough pricing environment, our truckload revenue per loaded mile dropped to $1.40 in 2009 compared to $1.45 per loaded mile in 2008. Consistent with this decline, our LTL operation experienced a 2.1% decline in linehaul revenue per hundredweight to $14.31 in 2009 from $14.61 in 2008.
Total operating expenses for the year declined $90.5 million or 18.5% on a revenue decline of 24.0%, while operating expenses for the quarter dropped 13.9% on a revenue decrease of 18.6%. To accomplish the reduction in operating expenses, the Company initiated a comprehensive cost cutting initiative that resulted in a reduction of non-driver headcount by 20.2%. For the year, operating expenses decreased at a lower rate than revenue primarily due to higher claims and insurance costs, partially offset by decreases in fuel and purchased transportation. Fuel decreased 41.8% to $62.7 million from $107.7 million in 2008 and decreased 13.5% to $16.4 million in the fourth quarter of 2009 from $19.0 million in the fourth quarter of 2008. Purchased transportation decreased 30.9% to $81.4 million in 2009 from $117.8 million in the previous year and decreased 20.4% to $19.6 million in the fourth quarter of 2009 from $24.6 million in the fourth quarter of the prior year.
Notwithstanding the poor results and continuing economic and industry struggles, the Company continues to be in a strong cash position with no borrowings outstanding under its revolving credit agreement as of the end of year. For 2009, the Company generated cash flows from operations of $12.0 million. At December 31, 2009 the Company had $3.7 million in cash and cash equivalents, $89.7 million in shareholders' equity and no outstanding debt.
Mr. Stubbs concluded, "While the current business conditions are the worst we have seen, we are continuing our focus on providing an excellent service product and working with our customers to find a beneficial pricing structure. We continue to be diligent in cost containment and maintaining efficient utilization of our assets. The management team is dedicated to managing our cash position closely and ensuring we have adequate liquidity to maintain our business. I thank our entire team for doing an outstanding job in such challenging times and know we will be well positioned in the future based on our commitment to providing exceptional service and shipping capacity to our customers."
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 services, as well as dedicated fleets to our customers. Additional information about Frozen Food Express Industries, Inc. can be found at the http://www.ffeinc.com. To join our email alert list, please click on the following link: http://financials.ffex.net/alerts.cfm. FFE'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 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. 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 | |||
| 2009 | 2008 | 2009 | 2008 | |
| Revenue | $91,449 | $112,330 | $373,051 | $490,536 |
| Operating expenses | ||||
| Salaries, wages and related expenses | 28,026 | 32,097 | 122,141 | 128,621 |
| Purchased transportation | 19,611 | 24,633 | 81,363 | 117,774 |
| Fuel | 16,404 | 18,960 | 62,655 | 107,654 |
| Supplies and maintenance | 11,473 | 13,667 | 47,347 | 53,531 |
| Revenue equipment rent | 9,335 | 9,722 | 38,721 | 35,456 |
| Depreciation | 4,254 | 4,668 | 17,550 | 18,851 |
| Communications and utilities | 1,247 | 1,262 | 5,145 | 4,898 |
| Claims and insurance | 4,371 | 4,674 | 15,305 | 13,675 |
| Operating taxes and licenses | 992 | 1,003 | 4,648 | 4,434 |
| Gain on sale of property and equipment | (61) | (257) | (136) | (1,353) |
| Miscellaneous | 858 | 1,707 | 3,225 | 4,941 |
| Total operating expenses | 96,510 | 112,136 | 397,964 | 488,482 |
| Income (loss) from operations | (5,061) | 194 | (24,913) | 2,054 |
| Interest and other (income) expense | ||||
| Interest income | (1) | (7) | (6) | (72) |
| Interest expense | 21 | 31 | 30 | 140 |
| Equity in earnings of limited partnership | (267) | (366) | (739) | (877) |
| Life insurance and other | 106 | (276) | 697 | (384) |
| Total interest and other income | (141) | (618) | (18) | (1,193) |
| Pre-tax income (loss) | (4,920) | 812 | (24,895) | 3,247 |
| Income tax (benefit) expense | (2,354) | 1,013 | (8,480) | 2,642 |
| Net income (loss) | $(2,566) | $(201) | $(16,415) | $605 |
| Net income (loss) per share of common stock | ||||
| Basic | $(0.15) | $(0.01) | $(0.96) | $0.04 |
| Diluted | $(0.15) | $(0.01) | $(0.96) | $0.04 |
| Weighted average shares outstanding | ||||
| Basic | 17,114 | 16,761 | 17,080 | 16,715 |
| Diluted | 17,114 | 16,761 | 17,080 | 16,997 |
| Dividends declared per common share | $-- | $0.03 | $0.03 | $0.12 |
| FROZEN FOOD EXPRESS INDUSTRIES, INC. AND SUBSIDIARIES | ||||
| Operating Statistics | ||||
| For the Three and Twelve Months Ended December 31, | ||||
| Three Months | Twelve Months | |||
| Revenue from | 2009 | 2008 | 2009 | 2008 |
| Temperature-controlled fleet | $32,797 | $36,643 | $136,427 | $145,497 |
| Dry-freight fleet | 10,002 | 15,745 | 50,807 | 68,851 |
| Total truckload linehaul services | 42,799 | 52,387 | 187,234 | 214,348 |
| Dedicated fleets | 4,737 | 6,081 | 19,707 | 24,609 |
| Total truckload | 47,536 | 58,468 | 206,941 | 238,957 |
| Less-than-truckload linehaul services | 27,949 | 31,144 | 109,054 | 124,092 |
| Fuel surcharges | 12,811 | 19,020 | 44,876 | 109,144 |
| Brokerage | 1,851 | 2,512 | 7,266 | 13,142 |
| Equipment rental | 1,302 | 1,186 | 4,914 | 5,202 |
| Total revenue | 91,449 | 112,330 | 373,051 | 490,536 |
| Operating expenses | 96,510 | 112,136 | 397,964 | 488,482 |
| Income (loss) from freight operations | $(5,061) | $194 | $(24,913) | $2,054 |
| Operating ratio | 105.5% | 99.8% | 106.7% | 99.6% |
| Total truckload revenue | $47,536 | $58,468 | $206,941 | $238,957 |
| Less-than-truckload linehaul revenue | 27,949 | 31,144 | 109,054 | 124,092 |
| Total linehaul and dedicated fleet revenue | $75,485 | $89,612 | $315,995 | $363,049 |
| Weekly average trucks in service | 1,824 | 2,020 | 1,937 | 2,027 |
| Revenue per truck per week | $3,149 | $3,375 | $3,129 | $3,426 |
| Statistical and revenue data : | ||||
| Truckload | ||||
| Total linehaul miles (a) | 33,785 | 39,565 | 149,412 | 162,689 |
| Loaded miles (a) | 29,916 | 36,036 | 133,956 | 148,025 |
| Empty mile ratio (b) | 11.5% | 8.9% | 10.3% | 9.0% |
| Linehaul revenue per total mile (c) | $ 1.27 | $ 1.32 | $ 1.25 | $ 1.32 |
| Linehaul revenue per loaded mile (d) | $ 1.43 | $ 1.45 | $ 1.40 | $ 1.45 |
| Linehaul shipments (a) | 36.8 | 37.6 | 154.3 | 152.7 |
| Loaded miles per shipment (e) | 812 | 958 | 868 | 969 |
| Less-than-truckload | ||||
| Hundredweight (a) | 1,988 | 2,095 | 7,619 | 8,492 |
| Shipments (a) | 62.9 | 67.6 | 247 | 273.0 |
| Linehaul revenue per hundredweight (f) | $ 14.06 | $ 14.87 | $ 14.31 | $ 14.61 |
| Linehaul revenue per shipment (g) | 445 | 461 | 442 | 455 |
| Average weight per shipment (h) | 3,163 | 3,099 | 3,086 | 3,111 |
| Tractors in service as of December 31 | 1,943 | 2,029 | ||
| Trailers in service as of December 31 | 3,786 | 4,182 | ||
| Non-driver employees as of December 31 | 682 | 855 | ||
| 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 | 2009 | 2008 |
| Current assets | ||
| Cash and cash equivalents | $3,667 | $1,308 |
| Accounts receivable, net | 41,318 | 52,749 |
| Tires on equipment in use, net | 5,592 | 5,425 |
| Deferred income taxes | 1,532 | 2,666 |
| Property held for sale | 1,019 | -- |
| Other current assets | 12,706 | 10,822 |
| Total current assets | 65,834 | 72,970 |
| Property and equipment, net | 74,845 | 83,394 |
| Other assets | 5,121 | 5,822 |
| Total assets | $145,800 | $162,186 |
| Liabilities and Shareholders' Equity | ||
| Current liabilities | ||
| Accounts payable | $23,773 | $21,148 |
| Insurance and claims accruals | 10,119 | 7,736 |
| Accrued payroll and deferred compensation | 3,837 | 4,396 |
| Accrued liabilities | 1,953 | 1,760 |
| Total current liabilities | 39,682 | 35,040 |
| Deferred income taxes | 9,009 | 14,235 |
| Insurance and claims accruals | 7,374 | 6,460 |
| Total liabilities | 56,065 | 55,735 |
| Shareholders' equity | ||
|
Common stock, $1.50 par value per share; 75,000 shares authorized; 18,572 shares issued and outstanding |
27,858 | 27,858 |
| Additional paid-in capital | 2,923 | 5,412 |
| Retained earnings | 70,172 | 87,103 |
| 100,953 | 120,373 | |
| Treasury stock (1,477 and 1,813 shares), at cost | (11,218) | (13,922) |
| Total shareholders' equity | 89,735 | 106,451 |
| Total liabilities and shareholders' equity | $145,800 | $162,186 |