Frozen Food Express Industries, Inc. (Nasdaq: FFEX) yesterday reported net income of $128,000, or one cent a share, for the quarter ended June 30, 2001 on revenue of $99.3 million, compared to net income of $753,000, or five cents a share, on revenue of $100.0 million for the 2000 second quarter.
“Weakness in the demand for our trucking services has continued,” said Stoney M. (Mit) Stubbs, Jr., President and CEO. “Excluding the fuel adjustment charges we bill to our customers, our freight revenue increased by only 3.3% as compared to the second quarter of 2000, but our non-freight revenue fell by $4.3 million, or 22.8%.
“Our performance, like that of our industry, reflects the nation’s slowing economy,” Mr. Stubbs said. “Demand for trucking services softens with the economy, which puts pressure on freight rates. Meanwhile, many of our costs, especially fuel and driver wages, have increased.
Regarding the Company’s non-freight segment, Mr. Stubbs explained that industry-wide softness in the demand for trucking services also has impacted the demand for trucking equipment. “Our non-freight segment sells trailers and refrigeration equipment. The market for those assets has softened, resulting in less revenue,” he said.
“This is not a recipe for strong profitability. Had it not been for our cost management initiatives, our second quarter profit would have been in question. Based on our view of the near-term future of the economy, we will continue addressing operating expenses.”
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.
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 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.
For the three months ended June 30: 2001 2000
Revenue $99,273,000 $99,999,000
Net Income $128,000 $753,000
Net Income per share –
Basic $0.01 $0.05
Diluted $0.01 $0.05
Weighted average shares outstanding –
Basic 16,360,000 16,321,000
Diluted 16,375,000 16,372,000
For the six months ended June 30: 2001 2000
Revenue $188,761,000 $192,415,000
Net (loss) income $(876,000) $190,000
Net (loss) income per share –
Basic $(0.05) $0.01
Diluted $(0.05) $0.01
Weighted average shares outstanding –
Basic 16,351,000 16,320,000
Diluted 16,351,000 16,354,000