Frozen Food Express (FFEX) research, news, and more from GeoInvesting

Company description

Wed, 30 Jul 2008 04:00:00 GMT

Frozen Food Express Industries, Inc. is the largest full-service, publicly-owned, temperature-controlled trucking company in North America. The company is also the only nationwide, full-service, temperature-controlled trucking company in the United States offering all of thefollowing services: FULL-TRUCKLOAD, DEDICATED FLEETS, LESS-THAN-TRUCKLOAD and DISTRIBUTION.

Comments & Business Outlook

Thu, 15 Nov 2012 05:00:00 GMT

DALLAS, Nov. 14, 2012 (GLOBE NEWSWIRE) -- Frozen Food Express Industries, Inc. (Nasdaq:FFEX) today announced its financial and operating results for the quarter ended September 30, 2012. A summary of third quarter of 2012 financial results include:

Total operating revenue decreased 7.0% to $95.6 million versus the same period of 2011, primarily due to the expected decline in dry freight services revenue, related to our decision to exit dry van services in the third quarter of 2011.
Continued improvement in operating ratio versus the same period of 2011 despite significant economic headwinds.
Revenue per truck per week increased 8.4% to $3,499 compared to $3,229 in the same period of 2011.
Improved operating loss of $5.3 million versus a loss of $13.5 million in the same period of 2011.
Net loss per share of diluted common stock was ($0.32), compared to a net loss per diluted common share of ($0.77) in the same period of 2011.

"We are excited to show strong improvement over the third quarter of 2011, led by continued tonnage and yield growth in our LTL services," said Russell Stubbs, the Company's President and Chief Executive Officer. "Nevertheless, after the strong operating results of the second quarter, we expected a better third quarter. Our third quarter results were negatively impacted by increasing fuel prices, reduced truckload volumes caused by a weak economy, higher insurance and claims expenses, and a decline in oil drilling activity that cut our water transport revenue significantly versus the second quarter. As was the case with many of our competitors, the steadily increasing fuel prices in the third quarter didn't allow our fuel surcharge revenue to offset the increases, which had a negative impact of $1.9 million versus the second quarter of this year. Additionally, insurance and claims expenses increased $1.9 million versus the second quarter, but we are having an improved year in this area and we are pleased our insurance and claims expenses are trending better than we have experienced in the prior five years," Stubbs said.

Mr. Stubbs continued, stating, "I was disappointed with the decline in our water transport revenue, but it has proven to be somewhat volatile and difficult to track on a quarterly basis. However, drilling activity has picked up in the first few weeks of the fourth quarter, and on an annual basis we are satisfied with the return we are achieving from this investment. Truckload volume is also showing improvement which is a positive sign for the fourth quarter. We feel that our improvement plan for 2012 is proceeding despite the challenges we have outlined above. Our truckload fleet age has dropped from 2.7 years old to 1.8 years old over the last 12 months. We have decreased non-driver headcount by 12%, we continue to improve our yield and equipment productivity, and we are continuing to seek out and grow higher margin revenue accounts. As we continue on this path we should see improvement in the fourth quarter of this year."

Outlook

"As a result of multiple factors, our results for the third quarter and forecasted results for the remainder of 2012 are below the expectations we set earlier in the year. In the third quarter, we experienced an unexpected steep decline in activity in our water transport business and a sharp increase in fuel prices. Also, while we continue to experience a significant improvement in our LTL business, the truckload market has softened somewhat. While we are confident that the structural changes we have made will restore the Company to profitability and we continue to expect significant improvement in year-over-year results, near-term market pressures have slowed the pace of our recovery," concluded Mr. Stubbs. v

Comments & Business Outlook

Wed, 15 Aug 2012 04:00:00 GMT

Second Quarter 2012 Results (reported 7/24/2012)

Income from operations of $1.6 million compared to a loss of $3.8 million in the same period of 2011.
Net income of $1.1 million compared to a loss of $3.3 million in the same period of 2011.
Total operating revenue decreased 5.6% to $95.7 million, primarily due to the exit from the dedicated dry van services business.
Total operating revenue, net of fuel surcharges, decreased 2.9% to $76.3 million.
Revenue per truck per week increased 6.7% to $3,559 compared to $3,335 in the same period of 2011.
Net income per share of diluted common stock was $0.06, compared to a net loss per diluted common share of $0.19 in the same period of 2011.

Excluding fuel surcharge revenue and the revenue contribution from dedicated dry van services, a business which we exited last year, we experienced a 5.7% revenue growth benefiting from both higher yields and pricing in our refrigerated services and the impact of the new water services revenue on our logistics services," said Russell Stubbs, the Company's President and Chief Executive Officer. "Our LTL business continues to benefit from improved demand and pricing, producing 7.5% growth, the best second quarter performance in five years."

Strategic Plan Update

Updates on the key elements of its strategic plan to restore profitability during fiscal 2012 include:

• Exit low margin/ low return businesses – During the fourth quarter of 2011, the Company completed the sale of 415 dry van trailers and 228 tractors and no longer provides dry van services via a dedicated fleet of dry van trailers. This action removed a line of lower margin services, and lowered the average age of the fleet to 2.1 years during the first six months of 2012 from 2.8 years during the same period last year. As a result, during the first six months of 2012, tractor maintenance expense was in line with our plan and fuel economy improved by approximately 5 percent.

• Reinvest in growth businesses – The Company began providing bulk tank water transportation services for the crude oil drilling industry during the fourth quarter of 2011. "We are pleased with the results we are obtaining from this operation," said Mr. Stubbs, "After a slow start in the first quarter we are on track to achieve the earnings contribution goals set in our plan for this year."

• Improve operating efficiencies – Non-driver employee headcount at the end of the second quarter was 681, a 4.9% reduction from the same period a year ago. The Company is on track to realize annualized cost savings of approximately $5 million as the result of its previously announced reduction in non-driver staffing levels.

• Improve yields in core temperature controlled business – The Company believes market conditions are improving in the Company's core refrigerated truckload (TL) and less-than-truckload (LTL) shipping markets. As a result, revenue per loaded mile has increased 7.0% during the first six months of 2012 and LTL shipments and revenue per hundredweight increased 8.4% and 4.7%, respectively.

Outlook

The Company expects that quarterly results will continue to improve throughout the year. In addition, capital expenditures are not expected to exceed $1.0 million, net of proceeds from disposition, and cash flows are expected to remain positive throughout the balance of fiscal 2012. "The strategic initiatives that we have implemented are on track and yielding positive results. We have posted our first quarter of profitability since the economic recession began and are well positioned to build on the progress we have made. Given the higher fixed cost nature of the LTL business, incremental contribution from even modest improvements in revenue can have a significant impact on our profitability and returns, which is evident in our improving results. Combined with a growing contribution from our water transportation business, we are on track to restore the Company to profitability this year," said Russell Stubbs.