Frozen Food Express Industries, Inc. Announces Third Quarter 2010 Results
For the nine months ended September 30, 2010, total operating revenue decreased 2.5%, or $6.9 million, to $274.7 million from $281.6 million during the same period in 2009, while total operating revenue, excluding fuel surcharges, decreased 6.7% to $232.8 million from $249.5 million during the same period in 2009. The net loss for the nine months ended September 30, 2010 was ($10.4 million), an improvement of $3.4 million, or 24.7%, compared to the net loss of ($13.8 million) during the same period in 2009. On a per share basis, the loss equated to ($0.61) per diluted share in 2010 compared to ($0.81) per diluted share in 2009.
Asset productivity (measured by revenue per truck per week) increased during the third quarter of 2010 by 4.1% to $3,209 from $3,081 in the same period of the last year, primarily due to an improvement in truckload revenue per loaded mile to $1.56 from $1.41 last year, partially offset by a 7.2% decrease in the average weekly trucks in service, or 141 trucks, and an increase in the Company's empty mile ratio to 11.7% from 11.2%. At our revenue per truck per week of $3,209 attained in the third quarter, an additional 141 trucks would have allowed us to attain approximately $5.9 million in additional truckload revenue, net of fuel surcharge, which would have enabled us to surpass our third quarter 2009 revenue, net of fuel surcharge, by approximately $3.4 million.
"We saw pricing improve in the second quarter and this trend continued in the third quarter," commented Russell Stubbs, the Company's President. "However, demand was not as robust in the third quarter as we experienced in the second quarter. Capacity continues to be a challenge due to a driver shortage, but it appears the rebound in the economy that drove demand in the second quarter, moderated in the third quarter. This, coupled with extreme weather delays created as the remnants of hurricane Alex moved through Texas and the Midwest, presented a challenging quarter. We are certainly not satisfied with the results of the third quarter and have taken additional strides to reduce our annualized operating costs by approximately $6 million, which includes the reduction of annualized salaried payroll by approximately $1 million. We expect to see results of these actions in the near future."
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