EXHIBIT 99.1
For: Frozen Food Express Industries, Inc. From: Mike Engleman
Listed: Nasdaq (FFEX) Mike Engleman/Associates
Company Contacts: 11308 Valleydale
Stoney M. (Mit) Stubbs, Jr. (CEO) Dallas, TX 75230
F. Dixon McElwee, Jr. (CFO) (214) 373-6464
(214) 630-8090
For Immediate Release
Frozen Food Express Industries
Sells Non-Freight Business Unit
Dallas, Texas, December 26, 2001-Frozen Food Express Industries, Inc.
(FFEX) said today that it closed the sale of the trailer and refrigeration
unit related assets of one of its subsidiaries, W&B Refrigeration Service
Company. The assets include accounts receivable, trade names, inventory
and equipment as well as one of the subsidiary's shop and office buildings.
The assets were purchased by W&B Newco, L.P. of Dallas, a newly formed
limited partnership, which is controlled by Mr. John Chisolm, the current
president and general manager of W&B Refrigeration Service Company.
The transaction is not expected to have a significant impact on FFEX's
2001 operating results. The sales price approximated $15 million - $6.8
million in cash, a $4.1 million subordinated note, a minority partnership
interest in W&B Newco, L.P. and the buyer's assumption of approximately $3
million of liabilities related to the business. The cash proceeds from the
sale will be used to reduce FFEX's long-term debt, which was about $15
million on September 30, 2001.
Stoney M. (Mit) Stubbs, Jr., chairman and CEO of FFEX, said that the
sale is part of an ongoing program to realign the company's operations in
light of what he described as changes in the market for refrigerated
trucking services.
"For some time now we have been working to focus our operations more
closely with changing demands of our marketplace. To accomplish this, we
must direct our attention and our capital more closely to our core
business, where we believe we can earn the greatest return on invested
capital. The sale of W&B is an important part of that effort," Mr. Stubbs,
explained.
Mr. John Chisolm added, "All of us at W&B are excited about the
opportunity represented by our acquisition. We hope to continue as one of
Frozen Food Express' good vendors while substantially expanding our market
to many other trucking companies."
FFEX will continue to operate the remainder of its non-freight
business. Those activities include the operations of AirPro, which is
involved in the sales and service of various climate control and
refrigeration products. With the closing of the transaction, FFEX will
change the name of W&B Refrigeration Service Company to AirPro Holdings,
Inc. and W&B Newco, L.P. will change its name to W&B Service Company, L.P.
FFEX also noted that the sale of these operations will enable it to
reduce the anticipated need for borrowed funds.
"One of the reasons we had kept our credit facility at $50 million is
to help us handle wide fluctuations in the need for working capital in our
non-freight operations. The cash from this divestiture and the related
reduction in those seasonal demands permit us to reduce our credit facility
to $33.3 million, and save the related commitment fees," Mr. Stubbs said.
Frozen Food Express Industries is the largest publicly owned
temperature-controlled carrier of perishable goods (primarily processed
foods and meats) on the North American continent. Its services extend from
Canada, throughout the 48 contiguous United States, into Mexico. The
refrigerated trucking company is the only one serving this market that is
full-service-providing full-truckload, less-than-truckload and distribution
transportation of refrigerated and frozen products. Its refrigerated less-
than-truckload operation is also the largest on the North American
continent.
W&B Service Company, L.P. offers a variety of transportation related
products. The company's principal products include Wabash semi trailers and
Carrier-Transicoldr truck and trailer refrigeration equipment. It is the
largest Carrier-Transicoldr dealer in the United States with thirteen
service facilities.
Statements contained herein which are not historical facts are
forward-looking statements as that term is defined in the Private
Securities Litigation Reform Act of 1995 ("PSLRA"). Certain statements
contained herein including statements regarding the anticipated development
and expansion of the company's business or the industry in which the
company operates, the intent, belief or current expectations of the
company, its directors or its officers, primarily with respect to the
future operating performance of the company and other statements contained
herein regarding matters that are not historical facts, are "forward-
looking" statements (as such term is defined in PSLRA). Because such
statements involve risks and uncertainties, actual results may differ
materially from those expressed or implied from such forward-looking
statements. These risks and uncertainties include demand for the company's
services and products, and the company's abilities 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, the
company's 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 by the company and the other risks and
uncertainties described in the company's filings with the Securities and
Exchange Commission.