For: Frozen Food Express From: Mike Engleman
Industries, Inc. Mike Engleman/Associates
Listed: Nasdaq (FFEX) 11308 Valleydale
Company Contacts: Dallas, TX 75230
Stoney M. (Mit) Stubbs, Jr. (CEO) (214) 373-6464
F. Dixon McElwee, Jr. (CFO)
(214) 630-8090
For Immediate Release
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Frozen Food Express Industries
Reports Improved First-Quarter Results
Dallas, Texas, May 1, 2003-Frozen Food Express Industries, Inc. (Nasdaq:
FFEX) today reported improved results for its first quarter, ended March 31,
2003, when compared to those of last year's first quarter.
Revenue for 2003's first quarter was $91,454,000, compared to
$79,057,000 for the first quarter of 2002. Freight revenue improved by 14.3%
between the quarters to $88.5 million, principally due to increased revenue
from less-than-truckload operations and from fuel surcharges. Freight revenue
increased by $11.1 million, 33% of which was due to increased fuel surcharges.
The first-quarter 2003 net loss was $668,000, or 4 cents a share, compared to
a loss of $944,000, or 6 cents a share, for the first quarter of 2002.
Stoney M. (Mit) Stubbs, Jr., chairman and CEO said 2003's first-quarter
results were adversely impacted by adverse weather conditions and record high
fuel costs. "During last year's first quarter," Mr. Stubbs said, "national
average diesel fuel prices ranged from about $1.30 a gallon to a little more
than $1.15. In this year's first quarter, the price of fuel ranged from about
$1.80 to just under $1.55 a gallon. Our fleet drives millions of miles a
quarter and the cost of fuel is important to our operating results.
"Our first-quarter fuel bill was 35% higher than it was in last year's
first quarter, and it encourages me that, in spite of the high fuel costs, we
were able to improve our results in what normally is our toughest quarter, due
in part to improved claims and insurance expenses. We carry a significant
retention of our accident liability coverage. Therefore, changes in the
frequency and severity of accidents can positively or negatively impact our
operating results." Mr. Stubbs observed.
"Because the freight we haul is predominately temperature-sensitive,
requiring some level of refrigeration, our business is best during the warmer
months. The first quarter of our year is typically the weakest and the fourth
quarter is the most unpredictable and almost always weaker than the warm-
weather quarters," Mr. Stubbs explained.
"Our freight business earned a small operating profit in 2003's first
quarter, compared to a $290,000 operating loss in the year-ago quarter, but
our non-freight segment incurred an operating loss of about $600,000 during
the first quarter of 2003, as compared to about $525,000 in the first quarter
of 2002," Mr. Stubbs said. He expressed continuing disappointment in the
performance of the non-freight segment and added that FFEX will take "whatever
steps are required to address these issues."
Frozen Food Express Industries, Inc. is the largest publicly-owned,
temperature-controlled carrier of perishable goods (primarily food products,
health care supplies and confectionery items) on the North American continent.
Its services extend from Canada, throughout the 48 contiguous United States
and 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. The company also provides full-truckload transportation
of non-temperature-sensitive goods through its non-refrigerated trucking arm,
American Eagle Lines.
Forward-Looking Statements
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This report contains information and forward-looking statements that are
based on management's current beliefs and expectations and assumptions we made
based upon information currently available. Forward-looking statements include
statements relating to our 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. These
statements are based on current expectations and are subject to uncertainty
and change.
Although we believe that the expectations reflected in such forward-
looking statements are reasonable, actual results could differ materially from
the expectations reflected in such forward-looking statements. 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 we expect.
Factors that are not within our control that could contribute to such
differences and that may have a bearing on operating results include demand
for our services and products, and our 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, our 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 we operate, operational risks and insurance, risks
associated with the technologies and systems used and the other risks and
uncertainties described elsewhere in our filings with the Securities and
Exchange Commission.
For the Three months ended March 31:
2003 2002
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Revenue $91,454,000 $79,057,000
Loss from Operations (506,000) (813,000)
Net Loss (668,000) (944,000)
Net Loss per share -
Basic (0.04) (0.06)
Diluted (0.04) (0.06)
Weighted average shares outstanding -
Basic 16,706,000 16,474,000
Diluted 16,706,000 16,474,000