EXHIBIT 99.1
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For: Frozen Food Express From: Mike Engleman
Industries, Inc. Mike Engleman/Associates
Listed: Nasdaq (FFEX) 11308 Valleydale
- ------ Dallas, TX 75230
Company Contacts: (214) 373-6464
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Stoney M. (Mit) Stubbs, Jr. (CEO)
F. Dixon McElwee, Jr. (CFO)
(214) 630-8090
FOR IMMEDIATE RELEASE
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FROZEN FOOD EXPRESS INDUSTRIES REPORTS
FIRST QUARTER 2004 PROFIT VERSUS 2003 LOSS
Dallas, Texas, April 28, 2004--Frozen Food Express Industries, Inc.
(Nasdaq: FFEX) today reported the highest net income for any first quarter in
it's 58 years of existence. First quarter 2004 net income was $1,940,000, or 11
cents a share, diluted, on revenue of $103,377,000. For the same period of 2003,
the company incurred a loss of $668,000, or 4 cents a share, on revenue of
$91,454,000.
Freight revenue improved by 14% between the first three months of 2003
and 2004, to $100,905,000. Fuel adjustment charges comprised 4.9% of 2004's
freight revenue, as compared to 4.7% during the comparable 2003 period.
Operating income generated by the company's trucking operations was
$3,310,000 for 2004's first quarter--as compared to operating income of $89,000
for the same period of 2003. Non-freight operations, which lost money in every
quarter of 2003, accumulating more than $5 million in 2003 operating losses,
posted first-quarter 2004 operating income of $10,000.
"I'm almost as proud of AirPro's (the non-freight subsidiary) operating
profit as I am the good performance of our trucking operations," said Stoney M.
(Mit) Stubbs, Jr., FFEX chairman and CEO. "The new management we brought in last
fall has come up with a very good, very quick turnaround effort.
"But, of course, it's trucking results that are most important to us.
"Since we're primarily a refrigerated trucker, our year is typically
seasonal. Normally the first quarter is our weakest. Almost always we're the
busiest during the warmer months--the second and third quarters. Demand for
trucking service is strong, and the supply of trucks is tight right now and, as
drivers leave truck driving for warm-weather jobs in construction, the national
supply is likely to get tighter. Strong demand and tight supply mean that
freight rates should continue to rise.
"We're looking forward to a very active 2004," Mr. Stubbs concluded.
CONFERENCE CALL AND WEBCAST
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As previously announced, FFEX will hold a telephonic conference call
tomorrow morning, April 29 at 10:30 central time (11:30 am eastern time) to
discuss the first quarter 2004 operating results. Individuals wishing to
participate in the conference call may do so by dialing (888) 396-2298 or (617)
847-8708 and entering the pass code 20472252 prior to the beginning of the call.
There will also be a live web cast of the conference call that can be accessed
by clicking on the web cast icon at www.ffex.net. A replay of the web cast will
be available on the company's web site or by telephone at (888) 396-2298 for 90
days following the live web cast. The pass code for the replay will be 50951470.
SUPPLEMENTARY INFORMATION
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Information about FFEX's operating results during the first quarters of
2004 and 2003 is presented in the following table. Revenue amounts exclude
revenue from fuel adjustment charges:
2004 2003
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FULL-TRUCKLOAD:
Revenue (1) $ 67.2 $ 57.3
Total miles(1) 54.6 49.4
Shipments(2) 53.6 47.0
Per-mile revenue $ 1.23 $ 1.16
Per-shipment revenue $1,254 $1,219
Empty mile ratio 9.1 % 9.7 %
LESS-THAN-TRUCKLOAD:
Revenue(1) $ 28.8 $ 27.0
Total miles(1) 9.6 9.5
Shipments(2) 85.0 77.9
Per-mile revenue $ 3.00 $ 2.84
Per-shipment revenue $ 339 $ 347
Empty mile ratio 6.5 % 7.2 %
OTHER INFORMATION:
As of March 31
Tractors in service 2,304 2,180
Trailers in service 3,753 3,569
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(1) In millions
(2) In thousands
ABOUT FFEX
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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,
into Mexico. The refrigerated trucking company is the only one serving this
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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
reflect 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.
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CONSOLIDATED STATEMENTS OF INCOME
FROZEN FOOD EXPRESS INDUSTRIES, INC. AND SUBSIDIARIES
THREE MONTHS ENDED MARCH 31,
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
(UNAUDITED)
2004 2003
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Revenue
Freight revenue $100,905 $ 88,521
Non-freight revenue 2,472 2,933
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103,377 91,454
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Costs and expenses
Salaries, wages and related expenses 25,549 23,778
Purchased transportation 26,339 21,734
Supplies and expenses 28,861 26,455
Revenue equipment rent 6,739 6,678
Depreciation 4,612 3,512
Communications and utilities 974 1,073
Claims and insurance 2,888 2,991
Operating taxes and licenses 1,128 1,074
Miscellaneous expense 505 1,137
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97,595 88,432
Non-freight costs and operating expenses 2,462 3,528
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100,057 91,960
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Income (loss) from operations 3,320 (506)
Interest and other expense, net 226 363
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Income (loss) before income tax 3,094 (869)
Income tax provision (benefit) 1,154 (201)
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Net income (loss) $ 1,940 $ (668)
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Net income (loss) per share of common stock
Basic $ .11 $ (.04)
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Diluted $ .11 $ (.04)
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Weighted average shares outstanding
Basic 17,139 16,706
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Diluted 18,261 16,706
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CONSOLIDATED BALANCE SHEETS
FROZEN FOOD EXPRESS INDUSTRIES, INC. AND SUBSIDIARIES
(IN THOUSANDS)
(UNAUDITED)
Mar. 31, Dec. 31,
2004 2003
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Assets
Current assets
Cash and cash equivalents $ 1,088 $ 1,396
Accounts receivable, net 52,732 55,094
Inventories 3,551 4,054
Tires on equipment in use 5,126 5,657
Deferred federal income tax 1,464 2,657
Other current assets 7,490 7,843
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Total current assets 71,451 76,701
Property and equipment, net 63,646 66,551
Other assets 11,599 12,358
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$146,696 $155,610
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Liabilities and Shareholders' Equity
Current liabilities
Accounts payable $ 20,859 $ 25,045
Accrued claims 7,622 7,195
Accrued payroll 5,943 3,813
Accrued liabilities 2,218 2,907
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Total current liabilities 36,642 38,960
Long-term debt 6,500 14,000
Deferred federal income tax 2,746 2,878
Accrued claims and liabilities 14,522 15,718
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60,410 71,556
Shareholders' equity
Par value of common stock (17,314 and 17,281 shares issued) 25,971 25,921
Capital in excess of par value 951 1,097
Retained earnings 59,789 57,849
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86,711 84,867
Less - Treasury stock (128 and 587 shares), at cost 425 813
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Total shareholders' equity 86,286 84,054
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$146,696 $155,610
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