EXHIBIT 99.1
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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 Third Quarter 2003
Dallas, Texas, October 29, 2003-Frozen Food Express Industries, Inc.
(Nasdaq: FFEX) today reported improved income from freight operations. For
the three months ended September 30, 2003, income from freight operations
was $3,947,000 compared to $1,043,000 for the same quarter in 2002. Freight
revenue for 2003's third quarter increased 15.2 percent to $101.7 million
from $88.3 million for the same quarter of 2002.
The Company reported net income of $1,705,000, or 10 cents a share,
for the third quarter of 2003, compared to 2002's third quarter net income
of $3,338,000, or 20 cents a share. 2002's third-quarter net income was
substantially the result of a $4 million income-tax-related benefit,
without which the company would have reported a loss of $622,000, or 4
cents a share. In 2003's third quarter, FFEX's net income of $1.7 million
was after income tax expense of $1.1 million.
For the nine months ended September 30, 2003, the company reported
net income of $3,584,000, or 21 cents a share, on revenue of $300,336,000.
Revenue for 2003 was 15.3% higher than the $260,440,000 in revenue
generated in 2002's first nine months. Last year's nine-month net income
was $2,600,000, or 16 cents a share, including the $4 million (24 cents a
share) income tax benefit.
"Our fleet size is up just 5% from where it was at this time last
year, yet our nine-month freight revenue is up by about 15% and our net
result--the fact that most of it comes from our freight operations--is so
much better that it's not even comparable to 2002, in my opinion," said,
Mr. Stoney M. (Mit) Stubbs, Jr., Chairman and CEO.
Third-Quarter Comparison
For 2003's third quarter, operating income from freight operations
increased by 278%, from last year's $1,043,000 to $3,947,000. The Company's
2003 third quarter freight operating ratio improved to 96.1% from 98.8% in
the same period of 2002.
Pre-tax income for the third quarter of 2003 was $2,825,000 compared
to a loss of $610,000 in 2002's third quarter.
Mr. Stubbs explained that, "We are definitely seeing better demand
for our freight services across the board. The increased demand has
enabled us to use our fleet more efficiently, but it has not yet allowed us
to get meaningful increases in our full-truckload freight rates. Our
increased profitability has come from improved cost control, from better
utilization of our full-truckload fleet and from our refrigerated LTL
business.
"As the economy continues to improve and freight demand tightens, we
expect that we'll see rate increases." Mr. Stubbs added. "Based on the
growth we're seeing in our mainline business--trucking transportation--I'm
fairly optimistic about the future. I hope I'll be even more optimistic at
this time next year," Mr. Stubbs said.
The company also reported a decline in the third-quarter operating
loss from its non-freight operations. This year's third-quarter operating
loss was $431,000, compared to an operating loss of $1,156,000 in 2002's
third quarter. "I have repeatedly said that we'll continue to address the
problem of losses from our non-freight business," said Mr. Stubbs. "Since
our non-freight operations involve the air conditioning and refrigeration
equipment business, the hot months are the busiest. The fact that we had a
loss in the third quarter, even though it was lower than last year's, makes
it obvious that we've still got plenty of work to do. Expect us to
continue this work in the fourth quarter."
About FFEX
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Frozen Food Express Industries, Inc. (www.ffex.net) 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, 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
which are based upon information currently available. 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. These
statements are based on current expectations and are subject to uncertainty
and change.
Although 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 management's control and
that may have a bearing on operating results 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, 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 the company's filings with the Securities and
Exchange Commission.
Summarized information on the three and nine month periods ended
September 30, 2003 and 2002 is as follows, (in thousands, except per-share
amounts):
Three Months Nine Months
2003 2002 2003 2002
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Revenue from:
Freight operations $101,700 $88,282 $286,642 $250,156
Non-freight operations 4,725 4,573 13,694 10,284
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Total Revenue $106,425 $92,855 $300,336 $260,440
Operating income (loss) from:
Freight operations $ 3,947 $ 1,043 $ 6,894 $ 1,557
Non-freight operations (431) (1,156) (1,407) (1,796)
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Total operating income 3,516 (113) 5,487 (239)
Interest and other expense
(income) 691 497 (70) 1,250
Pre-tax income (loss) 2,825 (610) 5,557 (1,489)
Tax provision (benefit) 1,120 (3,948) 1,973 (4,089)
Net income $ 1,705 $ 3,338 $ 3,584 $ 2,600
Diluted net income per share $ 0.10 $ 0.20 $ 0.21 $ 0.16
Diluted shares 17,494 16,741 17,329 16,691