Frozen Food Express tallies Q2 2010 results
Frozen Food Express Industries Inc (FFEX), the Dallas TX-based temperature-controlled carrier, has reported its financial and operating results for the second quarter ended June 30, 2010.
For the second quarter of 2010, total operating revenue, excluding fuel surcharges, increased 9.1% to $80.0 million compared with $73.3 million in the first quarter of 2010. This was a decrease of 5.3% versus $84.5 million in the second quarter of 2009.
Total operating revenue for the six months ended June 30, 2010,fell 3.4%, or $6.3 million, to $180.8 million from $187.1 million in 2009, while total operating revenue, excluding fuel surcharges, decreased 8.5% to $153.3 million from $167.5 million.
Stoney M “Mit” Stubbs, the company’s chairman and chief executive officer, said, “Through the latter portion of 2009 and into 2010, we placed a priority on service excellence, targeted pricing programs and asset utilization. We continue this approach, as it has shown results in improved pricing yield in our truckload service and increased shipment count and tonnage in our LTL (less-than-truckload) service. As carriers continued to exit the marketplace in late 2009 and early 2010, a marginal uptick in demand has put pressure on overall capacity, especially in the truckload sector, and this has had a pronounced impact on pricing. Increased shipper demand, shrinking capacity, and improving freight yield allowed us to regain our momentum and improve our pre-tax results by $2.4 million, or 41.9%, compared to the first quarter of 2010.”
Asset productivity (measured by revenue per truck per week) increased during the second quarter of 2010 by 4.6% to $3,336 from $3,190 in the same period of the prior year.
Total operating expenses for the quarter declined $3.1 million, or 3.1%, while total operating revenue grew 0.1%.
Current quarter operating expenses as a percentage of total operating revenue (operating ratio) were 103.5% in contrast to 106.8% in 2009. For the six month period, the operating ratio was 104.9% versus 108.0% for 2009, an improvement of 2.9%.
FFEX remains in a strong cash position with no borrowings outstanding under its revolving credit agreement. For the six months ended June 30, 2010, the company generated net cash flows of $2.3 million from operations and investing activities. As of June 30, 2010, the firm had a $6.6 million balance in cash and cash equivalents, $82.6 million in shareholders’ equity and no outstanding debt.