Frozen Food Express Industries Inc has reported its financial and operating results for the quarter ended June 30, 2012. Highlights of second quarter 2012 results include:
•Income from operations of $1.6 million compared with a loss of $3.8 million in the same period of 2011.
•Net income of $1.1 million versus a loss of $3.3 million in the same period of 2011.
•Total operating revenue decreased 5.6% to $95.7 million.
•Total operating revenue, net of fuel surcharges, fell 2.9% to $76.3 million.
“Excluding fuel surcharge revenue and the revenue contribution from dedicated dry van services—a business which we exited last year—we experienced a 5.7% revenue growth benefiting from both higher yields and pricing in our refrigerated services and the impact of the new water services revenue on our logistics services,” said Russell Stubbs, the company’s president and chief executive officer. “Our LTL business continues to benefit from improved demand and pricing, producing 7.5% growth—the best second quarter performance in five years.”
During the second quarter of 2012, total operating expenses dropped $10.9 million, or 10.4%, to $94.1 million compared with $105.1 million during the second quarter of 2011, which yielded an operating ratio of 98.4 versus 103.7 for the same period in 2011. Fuel costs fell $5.6 million and represented about half of the year-over-year cost savings. Excluding fuel costs, operating costs declined 6.7%. Net of the impact of fuel on revenue and expenses, the company generated an operating ratio of 97.4 in the second quarter of 2012, compared with 101.4 in the second quarter of 2011.
For the six months ended June 30, 2012, total operating revenue decreased 5.1%, or $9.8 million, to $183.6 million versus $193.4 million in the same period of 2011. Total operating revenue, excluding fuel surcharges, fell 3.7% to $146.5 million from $152.1 million the same period a year ago. Net loss for the six months ended June 30, 2012 was $4.6 million, in contrast to a net loss of $11.2 million in the same period of 2011.
The company expects quarterly results will continue to improve throughout 2012. Capital expenditures are not expected to exceed $1.0 million, net of proceeds from disposition, and cash flows are expected to remain positive throughout the balance of fiscal 2012.
