Frozen Food Express Industries Inc announced its financial and operating results for the fourth quarter and year ended December 31, 2009.
For the full-year 2009, revenues declined $117.5 million or 24% from 2008. The net loss for the year was $16.4 million compared with a net income of $605,000 in 2008 as the company battled a difficult operating environment due to the severe economic downturn. On a per share basis, the loss equates to ($0.96) per diluted share in 2009 versus a net income of $0.04 per diluted share in 2008.
Revenue for the fourth quarter of 2009 decreased 15.7% to $78.6 million from $93.3 million in the fourth quarter of 2008. Total revenue for the quarter fell 18.6% to $91.4 million from $112.3 million in 2008. The net loss rose by $2.4 million to $2.6 million or $0.15 per diluted share from a loss of $0.2 million or $0.01 per diluted share in the fourth quarter of 2008.
Stoney M “Mit” Stubbs, chairman and chief executive officer, said, “We are disappointed in the operating results for the year, but given the economic conditions of 2009, which impacted virtually every industry, we are proud that our employees maintained their focus in providing exemplary service to our customers. Our management team succeeded, under difficult conditions, in adjusting our infrastructure to match the needs of shippers, while staying the course with initiatives that will improve our service product for years to come.”
Truckload revenue per loaded mile dropped to $1.40 in 2009 compared with $1.45 per loaded mile in 2008. Consistent with this decline, the firm’s LTL operation experienced a 2.1% decline in linehaul revenue per hundredweight to $14.31 in 2009 from $14.61 in 2008. Total operating expenses for the year declined $90.5 million or 18.5% on a revenue decline of 24.0%, while operating expenses for the quarter dropped 13.9% on a revenue decrease of 18.6%. To reduce operating expenses, the company initiated a cost-cutting initiative that resulted in a reduction of non-driver headcount by 20.2%.
Despite the poor results and continuing economic struggles, FFEX continues to be in a strong cash position with no borrowings outstanding under its revolving credit agreement as of the end of year. For 2009, the company generated cash flows from operations of $12.0 million. As of Dec 31, 2009 the firm had $3.7 million in cash and cash equivalents, $89.7 million in shareholders’ equity and no outstanding debt.
FFEX is a Dallas TX-based temperature-controlled truckload and less-than-truckload carrier with core operations in the transport of temperature-controlled products and perishable goods including food, healthcare, and confectionery products. Visit www.ffeinc.com for more details.
