Frozen Food Express Industries, Inc. Announces Third Quarter 2012 Financial Results

Frozen Food Express Industries, Inc. Announces Third Quarter 2012 Financial
Results

DALLAS, Nov. 14, 2012 (GLOBE NEWSWIRE) -- Frozen Food Express Industries, Inc.
(Nasdaq:FFEX) today announced its financial and operating results for the
quarter ended September 30, 2012. A summary of third quarter of 2012 financial
results include:

  *Total operating revenue decreased 7.0% to $95.6 million versus the same
    period of 2011, primarily due to the expected decline in dry freight
    services revenue, related to our decision to exit dry van services in the
    third quarter of 2011.
  *Continued improvement in operating ratio versus the same period of 2011
    despite significant economic headwinds.
  *Revenue per truck per week increased 8.4% to $3,499 compared to $3,229 in
    the same period of 2011.
  *Improved operating loss of $5.3 million versus a loss of $13.5 million in
    the same period of 2011.
  *Net loss per share of diluted common stock was ($0.32), compared to a net
    loss per diluted common share of ($0.77) in the same period of 2011.

"We are excited to show strong improvement over the third quarter of 2011, led
by continued tonnage and yield growth in our LTL services," said Russell
Stubbs, the Company's President and Chief Executive Officer. "Nevertheless,
after the strong operating results of the second quarter, we expected a better
third quarter. Our third quarter results were negatively impacted by
increasing fuel prices, reduced truckload volumes caused by a weak economy,
higher insurance and claims expenses, and a decline in oil drilling activity
that cut our water transport revenue significantly versus the second quarter.
As was the case with many of our competitors, the steadily increasing fuel
prices in the third quarter didn't allow our fuel surcharge revenue to offset
the increases, which had a negative impact of $1.9 million versus the second
quarter of this year. Additionally, insurance and claims expenses increased
$1.9 million versus the second quarter, but we are having an improved year in
this area and we are pleased our insurance and claims expenses are trending
better than we have experienced in the prior five years," Stubbs said.

Mr. Stubbs continued, stating, "I was disappointed with the decline in our
water transport revenue, but it has proven to be somewhat volatile and
difficult to track on a quarterly basis. However, drilling activity has picked
up in the first few weeks of the fourth quarter, and on an annual basis we are
satisfied with the return we are achieving from this investment. Truckload
volume is also showing improvement which is a positive sign for the fourth
quarter. We feel that our improvement plan for 2012 is proceeding despite the
challenges we have outlined above. Our truckload fleet age has dropped from
2.7 years old to 1.8 years old over the last 12 months. We have decreased
non-driver headcount by 12%, we continue to improve our yield and equipment
productivity, and we are continuing to seek out and grow higher margin revenue
accounts.As we continue on this path we should see improvement in the fourth
quarter of this year."

Outlook

"As a result of multiple factors, our results for the third quarter and
forecasted results for the remainder of 2012 are below the expectations we set
earlier in the year.In the third quarter, we experienced an unexpected steep
decline in activity in our water transport business and a sharp increase in
fuel prices.Also, while we continue to experience a significant improvement
in our LTL business, the truckload market has softened somewhat.While we are
confident that the structural changes we have made will restore the Company to
profitability and we continue to expect significant improvement in
year-over-year results, near-term market pressures have slowed the pace of our
recovery," concluded Mr. Stubbs.

About FFEX

Frozen Food Express Industries, Inc. is one of the leading
temperature-controlled truckload and less-than-truckload carriers in the
United States with core operations in the transport of temperature-controlled
products and perishable goods including food, health care and confectionery
products. Service is offered in over-the-road and intermodal modes for
temperature-controlled truckload and less-than-truckload, as well as dry
truckload on a non-dedicated fleet basis. We also provide bulk tank water
transportation, brokerage/logistics and dedicated services to our customers.
Additional information about Frozen Food Express Industries, Inc. can be found
at http://www.ffeinc.com. To join our email alert list, please click on the
following link: http://financials.ffex.net/alerts.cfm. The Company's common
stock is traded on the Nasdaq Global Select market under the symbol FFEX.

The Frozen Food Express Industries, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=3209

Forward-Looking Statements

This press release contains certain statements that may be considered
forward-looking statements within the meaning of Section 27A of the Securities
Act of 1933, as amended, and Section 21E of the Securities Exchange Act of
1934, as amended. 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. Those statements are based on current expectations and
are subject to uncertainty and change. Although our 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 our management's control and that may cause actual results to differ
materially from those projected in such forward-looking statements 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 and
owner-operators, the ability to negotiate favorably with lenders and lessors,
the continued growth of hydraulic fracturing techniques for oil and gas
drilling in West Texas, 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 our filings with the Securities and Exchange Commission. Given
the volatility in fuel prices and the impact fuel surcharge revenues have on
total operating revenues, we often make reference to total operating revenue
excluding fuel surcharges to provide a more consistent basis for comparison of
operating revenue without the impact of fluctuating fuel prices. Readers
should review and consider these factors along with the various disclosures by
the Company in its press releases, stockholder reports and filings with the
Securities and Exchange Commission. The Company does not assume, and
specifically disclaims, any obligation to update or revise any forward-looking
statements to reflect actual results or changes in the factors affecting the
forward-looking information.

Frozen Food Express Industries, Inc. and Subsidiaries
Consolidated Condensed Balance Sheets
(Unaudited and in thousands, except per-share amounts)
                                                                
Assets                                              September 30, December31,
                                                    2012          2011
Current assets                                                   
Cash and cash equivalents                           $1,448      $1,048
Accounts receivable, net                            42,410        43,450
Tires on equipment in use, net                      7,705         5,968
Equipment held for sale                             1,898         3,437
Other current assets                                7,970         7,868
Total current assets                                61,431        61,771
                                                                
Property and equipment, net                         46,630        57,757
Deferred income taxes                               1,009         1,009
Other assets                                        5,862         5,867
Total assets                                        $114,932    $126,404
                                                                
Liabilities and Shareholders' Equity                             
Current liabilities                                              
Accounts payable                                    $27,898     $30,339
Insurance and claims accruals                       9,125         10,667
Accrued payroll and deferred compensation           4,711         4,047
Accrued liabilities                                 1,428         1,251
Current maturities of notes payable and capital     2,060         1,936
lease obligations
Deferred income taxes                               690           690
Total current liabilities                           45,912        48,930
                                                                
Borrowings under credit facility                    23,899        19,888
Long-term notes payable and capital lease           7,362         8,901
obligations
Insurance and claims accruals                       4,848         5,783
Total liabilities                                   82,021        83,502
                                                                
Shareholders' equity                                             
Common stock, $1.50 par value per share; 75,000     27,858        27,858
shares authorized; 18,572 shares issued
Additional paid-in capital                          914          427
Accumulated other comprehensive loss                (62)         (67)
Retained earnings                                   11,331       21,572
Total common shareholders' equity                   40,041       49,790
Treasury stock (1,013 and980 shares), at cost      (7,130)      (6,888)
Total shareholders' equity                          32,911       42,902
Total liabilities and shareholders' equity          $114,932    $126,404
                                                                



Frozen Food Express Industries, Inc. and Subsidiaries
Consolidated Condensed Statements of Operations
(Unaudited and in thousands, except per-share amounts)
                                                               
                               Three Months           Nine Months
                                Ended September 30,    Ended September 30,
                               2012       2011        2012        2011
Total operating revenue         $95,624  $102,834  $279,264  $296,270
Operating expenses                                              
Salaries, wages and related     29,515    31,766     86,818     90,868
expenses
Purchased transportation        17,952    18,357     50,272     51,856
Fuel                            21,247    25,854     60,016     73,654
Supplies and maintenance        14,340    15,710     39,106     42,561
Revenue equipment rent          10,691    9,200      31,205     26,553
Depreciation                    2,701     4,827      8,668      13,875
Communications and utilities    1,123     1,171      3,299      3,518
Claims and insurance            3,734     7,476      7,503      13,204
Operating taxes and licenses    924       985        3,076      3,089
Gain on sale of propertyand    (2,402)   (661)      (4,939)    (1,234)
equipment
Miscellaneous                  1,095     1,626      3,192      4,352
Total operating expenses       100,920   116,311    288,216    322,296
Loss from operations            (5,296)   (13,477)   (8,952)    (26,026)
                                                               
Interest and other expense                                      
(income)
Interest expense                388       247        1,157      479
Equity in earnings of limited   (211)     (192)      (543)      (551)
partnership
Life insurance and other        149       63         520        432
Total interest and other       326       118        1,134      360
expense (income)
Loss before income taxes        (5,622)   (13,595)   (10,086)   (26,386)
Income tax expense (benefit)    41        73         155        (1,476)
Net loss                        $(5,663) $(13,668) $(10,241) $(24,910)
                                                               
Net loss per share of common                                    
stock
Basic                           $(0.32)  $(0.77)   $(0.57)   $(1.42)
Diluted                         $(0.32)  $(0.77)   $(0.57)   $(1.42)
Weighted average shares                                         
outstanding
Basic                           17,917     17,663      17,839      17,557
Diluted                         17,917     17,663      17,839      17,557



The following table summarizes and compares the significant components of
revenue and presents our operating ratio and revenue per truck per week for
each of the three and nine month periods ended September 30:
                                                               
                                Three Months           Nine Months
Revenue from ^(a)                2012       2011        2012       2011
Temperature-controlled services  $25,999  $29,875   $77,821  $90,231
Dry-freight services             5,569      10,444      16,631     33,567
Total truckload linehaul         31,568     40,319      94,452     123,798
services
Dedicated services               4,610      4,140       14,165     13,051
Total truckload                  36,178     44,459      108,617    136,849
Less-than-truckload linehaul     34,463     30,740      93,917     85,908
services
Fuel surcharges                  18,968     21,298      56,124     62,683
Brokerage and logistics services 4,874      5,585       17,578     8,269
Equipment rental                1,141      752         3,028      2,561
Total operating revenue          95,624     102,834     279,264    296,270
                                                               
Operating expenses              100,920    116,311     288,216    322,296
Loss from operations             $(5,296) $(13,477) $(8,952) $(26,026)
Operating ratio ^(b)             105.5%     113.1%      103.2%     108.8%
                                                               
Total truckload revenue          $36,178  $44,459   $108,617 $136,849
Less-than-truckloadlinehaul     34,463     30,740      93,917     85,908
revenue
Total linehaul and dedicated     $70,641  $75,199   $202,534 $222,757
services revenue
                                                               
Weekly average trucks in service 1,536      1,772       1,504      1,772
Revenue per truck per week ^(c)  $3,499   $3,229    $3,440   $3,223
                                                               
Computational notes:
^(a) Revenue and expense amounts are stated in thousands of dollars.
^(b) Operating expenses divided by total operating revenue.
^(c) Average daily revenue, times seven, divided by weekly average trucks in
service.



The following table summarizes and compares selected statistical data relating
to our freight operations for each of the three and nine month periods ended
September 30:
                                                              
                         Three Months               Nine Months
Truckload                 2012          2011         2012         2011
Total linehaul miles ^(a) 21,219        27,994       63,561       87,748
Loaded miles ^(a)         18,549        24,809       55,890       77,889
Empty mile ratio ^(b)     12.6%         11.4%        12.1%        11.2%
Linehaul revenue per      $1.49       $1.44      $1.49      $1.41
total mile ^(c)
Linehaul revenue per      $1.70       $1.63      $1.69      $1.59
loaded mile ^(d)
Linehaul shipments ^(a)   20.3          27.8         60.9         86.4
Loaded miles per shipment 914           891          918          902
^(e)
LTL                                                            
Hundredweight            2,341,662     2,128,575    6,525,164    6,194,980
Shipments ^(a)            78.1          70.3         216.9        198.3
Linehaul revenue per      $14.72      $14.44     $14.39     $13.87
hundredweight ^(f)
Linehaul revenue per      $441        $437       $433       $433
shipment ^(g)
Average weight per        2,998         3,026        3,008        3,124
shipment ^(h)
                                                              
Computational notes:
^(a) Amounts are stated in thousands.
^(b) Total truckload linehaul miles less truckload loaded miles, divided by
total truckload linehaul miles.
^(c)Revenue from truckload linehaul services divided by total truckload
linehaul miles.
^(d) Revenue from truckload linehaul services divided bytruckload loaded
miles.
^(e) Total truckload loaded miles divided by number of truckload linehaul
shipments.
^(f) LTL revenue divided by LTL hundredweight.
^(g) LTL revenue divided by number of LTL shipments.
^(h) LTL hundredweight times one hundred divided by number of shipments.


The following table summarizes and compares the makeup of our fleets between
company-provided tractors and tractors provided by owner-operators as of
September 30:
                                                               
                                                  2012          2011
Total company tractors available for freight       1,360         1,613
operations
Total owner-operator tractors available for        275           286
freight operations
Total tractors available for freight operations    1,635         1,899
Total trailers available for freight operations    3,100         3,826

CONTACT: Frozen Food Express Industries, Inc.
         Russell Stubbs, President and CEO
         John Hickerson, EVP and COO
         John McManama, SVP and CFO
         (214) 630-8090
         Dave Mossberg, Investor Relations
         Three Part Advisors, LLC
         817 310-0051

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