Frozen Food Express Industries Inc. (FFEX, Financial) filed Quarterly Report for the period ended 2009-09-30.
Frozen Food Express Industries Inc. is the largest full-service publicly-owned temperature-controlled trucking company in North America. The company is also the only nationwide full-service temperature-controlled trucking company in the United States offering all of thefollowing services: FULL-TRUCKLOAD DEDICATED FLEETS LESS-THAN-TRUCKLOAD and DISTRIBUTION. Frozen Food Express Industries Inc. has a market cap of $50.7 million; its shares were traded at around $2.95 with and P/S ratio of 0.1.
Our operating expenses as a percentage of operating revenue, or “operating ratio,” were 105.1% for the third quarter of 2009 compared with 97.3% in 2008. Our operating expenses decreased at a lower rate than our revenue due to higher claims and insurance costs and increased equipment rent as our share of leased equipment increased, partially offset by decreasing purchased transportation costs. For the quarter our loss per basic and diluted share was $0.15 in 2009 compared to net income per basic and diluted share of $0.08 in 2008.
Our business requires substantial, ongoing capital investments, particularly for new tractors and trailers. At September 30, 2009, we had no outstanding borrowings under our credit facility and $92.3 million in shareholders equity. In the third quarter of 2009, we added approximately $762,000 of property and equipment, net of proceeds from dispositions, and recognized a loss of $177,000 on the disposition of used equipment. These capital expenditures were funded with cash flows from operations. We estimate that capital expenditures will range from $17.0 million to $20.0 million in 2009, which would be higher than our historical levels due to our tractor replacement schedule and the capital required to consolidate two of our facilities into one location in New Jersey.
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Frozen Food Express Industries Inc. is the largest full-service publicly-owned temperature-controlled trucking company in North America. The company is also the only nationwide full-service temperature-controlled trucking company in the United States offering all of thefollowing services: FULL-TRUCKLOAD DEDICATED FLEETS LESS-THAN-TRUCKLOAD and DISTRIBUTION. Frozen Food Express Industries Inc. has a market cap of $50.7 million; its shares were traded at around $2.95 with and P/S ratio of 0.1.
Highlight of Business Operations:
For the third quarter of 2009 our operating revenue decreased by $38.0 million, or 28.7%. Operating revenue, net of fuel surcharges, decreased $16.6 million, or 16.8%, to $82.0 million from $98.6 million in 2008. Excluding fuel surcharges, our average truckload revenue-per-tractor-per-week decreased 13.7% primarily due to a decrease in our loaded truckload revenue per mile from $1.48 to $1.41, an increase in our empty mile ratio to 11.2% from 9.4%, a decrease in our intermodal business, a 13.7% decline in our LTL hundredweight and a decrease in our LTL revenue per hundredweight from $15.04 to $14.51. Although revenue per mile and per hundredweight has declined from a year ago, the third quarter 2009 pricing has increased over the second quarter of 2009, as we focus on our margins. Our truckload revenue decreased by $9.7 million, or 15.8%. Due to continuing pricing pressures and excess capacity in the freight industry, our truckload revenue per loaded mile decreased to $1.41 per mile and our loaded truckload miles declined 9.7% when compared to our third quarter 2008 results. Dedicated revenue decreased $2.1 million for the quarter while brokerage revenue decreased $1.5 million for the quarter.Our operating expenses as a percentage of operating revenue, or “operating ratio,” were 105.1% for the third quarter of 2009 compared with 97.3% in 2008. Our operating expenses decreased at a lower rate than our revenue due to higher claims and insurance costs and increased equipment rent as our share of leased equipment increased, partially offset by decreasing purchased transportation costs. For the quarter our loss per basic and diluted share was $0.15 in 2009 compared to net income per basic and diluted share of $0.08 in 2008.
Our business requires substantial, ongoing capital investments, particularly for new tractors and trailers. At September 30, 2009, we had no outstanding borrowings under our credit facility and $92.3 million in shareholders equity. In the third quarter of 2009, we added approximately $762,000 of property and equipment, net of proceeds from dispositions, and recognized a loss of $177,000 on the disposition of used equipment. These capital expenditures were funded with cash flows from operations. We estimate that capital expenditures will range from $17.0 million to $20.0 million in 2009, which would be higher than our historical levels due to our tractor replacement schedule and the capital required to consolidate two of our facilities into one location in New Jersey.
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