Frozen Food Express Industries, Inc. Announces First Quarter 2013 Financial Results

Frozen Food Express Industries, Inc. Announces First Quarter 2013 Financial

DALLAS, April 29, 2013 (GLOBE NEWSWIRE) -- Frozen Food Express Industries,
Inc. (Nasdaq:FFEX) today announced its financial and operating results for the
quarter ended March 31, 2013. Highlights from first quarter 2013 financial
results include:

  *1Q13 total operating revenue was $97.8 million, an 11.3% increase versus
  *1Q13 revenue per truck per week increased 2.0% to $3,339, compared to
    $3,275 during 1Q12
  *1Q13 operating ratio improved to 104.1%, compared to 105.9% during 1Q12
  *1Q13 net loss improved to $3.3 million, compared to a $5.6 million loss
    during 1Q12
  *1Q13 net loss per share of diluted common stock was ($0.18), compared to
    ($0.32) during 1Q12

Revenue (in $ millions) from:                 1Q13 1Q12 % Change
Total Truckload ("TL")                        37.9 34.8 9.0%
Less-than-truckload ("LTL")                   33.4 28.3 17.8%
Brokerage, Logistics and Equipment Rental     6.7  7.0  (4.2%)
Operating Revenue (Excluding Fuel Surcharges) 78.0 70.1 11.2%
Fuel Surcharges                               19.8 17.8 11.3%
Total Operating Revenue                       97.8 87.9 11.3%

"The execution of our strategic plan continues to deliver solid growth in
revenue and improvement in operating profitability. During the first quarter,
TL and LTL revenue grew 9.0% and 17.8% respectively, keeping pace with a 12.0%
growth in the number of trucks in service. Volumes and pricing trends were
favorable and were only slightly offset by an increase in the empty mile
ratio," said Russell Stubbs, the Company's President and Chief Executive
Officer. "Brokerage, logistics and equipment rental revenue was relatively
unchanged from the prior year at approximately $7 million, as the effect of
exiting an unprofitable dedicated service relationship last year was offset by
a $0.6 increase in equipment rental revenue and slight growth in water
transport services."

During the first quarter of 2013, total operating expenses increased $8.7
million, or 9.4%, to $101.9 million compared to $93.1 million during the first
quarter of 2012. The primary factor related to the year-over-year increase in
operating expenses was the increase in TL linehaul miles of 12.0% and LTL
tonnage of 9.9% versus the first quarter of 2012. To handle this volume, the
Company increased the number of weekly average trucks in service to 1,660,
versus 1,482 during the same period last year. A significant part of this
increase in trucks came from independent owner operators as the Company
focused on growing its fleet by utilizing this resource. During the same time
period, salaries, wages and related expenses, which includes both drivers and
non-driver compensation, decreased $218,000, or 0.7%. The Company experienced
excellent claims and insurance results in the first quarter of 2012, thus the
Company expected the increase in claims and insurance expense in 2013 of $1.5
million, which actually was below budget for the quarter. Operating expense
also compared negatively in the first quarter of 2013 versus the first quarter
of 2012 due to a $1.5 million decline in gain on equipment sales, year over

During the first quarter, the operating ratio improved to 104.1% compared to
105.9% last year, as the pace of revenue growth outpaced growth in expenses.
The operating ratio improvement was primarily related to strategic decisions
implemented over the past 18 months to exit less profitable businesses,
refresh the average age of the fleet and increase efficiencies.

The Company expects 2013 capital expenditures will not exceed $3 million, net
of proceeds from dispositions.

"During the first quarter, we achieved cost savings from our younger and more
fuel efficient fleet. We improved yields and grew volumes in our temperature
control services. While we still have progress to make, we have successfully
repositioned our Company, and I am confident that we have the right plan in
place to restore the Company to profitability during 2013 and restore more
meaningful profitability in the years to come," Mr. Stubbs concluded.

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 To join our email alert list, please click on the
following link: The Company's common
stock is traded on the Nasdaq Global Select market under the symbol FFEX.

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                                                  March 31, December 31,
                                                        2013      2012
Current assets                                                   
Cash and cash equivalents                               $ 1,006   $ 2,907
Accounts receivable, net of allowance for doubtful      40,876    40,069
accounts of $1,171 and $1,565, respectively
Tires on equipment in use, net                          8,674     8,176
Equipment held for sale                                 --        832
Other current assets                                    6,441     7,840
Total current assets                                    56,997    59,824
Property and equipment, net                             52,589    54,680
Deferred income taxes                                   3,039     3,039
Other assets                                            4,241     6,096
Total assets                                            $ 116,866 $ 123,639
Liabilities and Shareholders' Equity                             
Current liabilities                                              
Accounts payable                                        $ 24,778  $ 26,178
Insurance and claims accruals                           8,397     10,033
Accrued payroll and deferred compensation               4,214     3,951
Accrued liabilities                                     1,263     1,429
Current maturities of notes payable and capital lease   3,102     3,040
Deferred income taxes                                   2,727     2,727
Total current liabilities                               44,481    47,358
Borrowings under credit facility                        25,839    26,215
Long-term notes payable and capital lease obligations   16,095    16,891
Insurance and claims accruals                           5,275     4,904
Total liabilities                                       91,690    95,368
Shareholders' equity                                             
Common stock, $1.50 par value per share; 75,000 shares  27,858    27,858
authorized; 18,572 shares issued
Additional paid-in capital                              863       1,165
Accumulated other comprehensive loss                    (77)      (79)
Retained earnings                                       3,261     6,516
Total common shareholders' equity                       31,905    35,460
Treasury stock (962 and1,026 shares), at cost          (6,729)   (7,189)
Total shareholders' equity                              25,176    28,271
Total liabilities and shareholders' equity              $ 116,866 $ 123,639

Frozen Food Express Industries, Inc. and Subsidiaries
Consolidated Condensed Statements of Operations
(Unaudited and in thousands, except per-share amounts)
                                                 Three Months
                                                 Ended March 31,
                                                 2013      2012
Total operating revenue                           $ 97,831  $ 87,935
Operating expenses                                         
Salaries, wages and related expenses              29,007    29,225
Purchased transportation                          19,646    15,833
Fuel                                              18,949    19,017
Supplies and maintenance                          12,953    12,404
Revenue equipment rent                            12,200    10,212
Depreciation                                      2,882     3,059
Communications and utilities                      1,007     933
Claims and insurance                              3,412     1,905
Operating taxes and licenses                      960       1,087
Gain on sale of propertyand equipment            (266)     (1,760)
Miscellaneous                                     1,111     1,233
Total operating expenses                          101,861   93,148
Loss from operations                              (4,030)   (5,213)
Interest and other (income) expense                        
Interest expense                                  626       371
Equity in loss (earnings) of limited partnership  10        (235)
Gain on sale of investment in limited partnership (1,649)   --
Other                                             186       242
Total interest and other (income) expense         (827)     378
Loss before income taxes                          (3,203)   (5,591)
Income tax expense                                52        58
Net loss                                          $ (3,255) $ (5,649)
Net loss per share of common stock                         
Basic                                             $ (0.18)  $ (0.32)
Diluted                                           $ (0.18)  $ (0.32)
Weighted average shares outstanding                        
Basic                                             17,924    17,727
Diluted                                           17,924    17,727

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-month periods ended March 31:

Revenue from: ^(a)                             2013            2012
Temperature-controlled services                $ 28,136        $ 24,502
Dry-freight services                           6,168           5,445
Total truckload linehaul services              34,304          29,947
Dedicated services                             3,605           4,836
Total truckload                                37,909          34,783
Less-than-truckload linehaul services          33,358          28,306
Fuel surcharges                                19,811          17,794
Brokerage and logistics services               5,224           6,116
Equipment rental                               1,529           936
Total operating revenue                        97,831          87,935
Operating expenses                             101,861         93,148
Loss from operations                           $ (4,030)       $ (5,213)
Operating ratio ^(b)                           104.1%          105.9%
Total truckload revenue                        $ 37,909        $ 34,783
Less-than-truckload linehaul revenue           33,358          28,306
Total linehaul and dedicated services revenue  $ 71,267        $ 63,089
Weekly average trucks in service               1,660           1,482
Revenue per truck per week ^(c)                $ 3,339         $ 3,275
Computational notes:
^(a) Revenue and expense amounts are stated in thousands of dollars.
^(b) Operating expenses divided by total revenue.
^(c) Average daily revenue times seven divided by weekly average trucks in

The following table summarizes and compares selected statistical data relating
to our freight operations for each of the three-month periods ended March 31:

Truckload                                         2013           2012
Total linehaul miles ^(a)                         23,009         20,550
Loaded miles ^(a)                                 20,142         18,156
Empty mile ratio ^(b)                             12.5%          11.6%
Linehaul revenue per total mile ^(c)              $ 1.49         $ 1.46
Linehaul revenue per loaded mile ^(d)             $ 1.70         $ 1.65
Linehaul shipments ^(a)                           22.0           19.6
Loaded miles per shipment ^(e)                    917            929
Hundredweight ^(a)                                2,201          2,004
Shipments ^(a)                                    75.9           67.1
Linehaul revenue per hundredweight ^(f)           $ 15.16        $ 14.13
Linehaul revenue per shipment ^(g)                $ 440          $ 422
Average weight per shipment ^(h)                  2,901          2,986
Computational notes:                                            
^(a) 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 truckload total
linehaul miles.
^(d) Revenue from truckload linehaul services divided bytruckload loaded
^(e) Total truckload loaded miles divided by number of truckload linehaul
^(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 LTL shipments.

The following table summarizes and compares the makeup of our fleet between
company-provided tractors and tractors provided by owner-operators as of March

                                                              2013  2012
Total company tractors available for freight operations        1,342 1,312
Total owner-operator tractors available for freight operations 384   250
Total tractors available for freight operations                1,726 1,562
Total trailers available for freight operations                3,237 3,118

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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