Frozen Food Express Narrows Loss

Frozen Food Express Industries made sequential volume and revenue gains but was unable to shift back into profitability in the second quarter.

The company, which operates FFE Transportation Services, reported a $4.4 million net loss for the quarter, compared with a $5.2 million net loss a year ago.

Its net loss deepened from $3.7 million in the first quarter, thanks to $1.1 million in taxes. But its pretax results were 41.9 percent better than in the first quarter.

By The Numbers: Cass Freight Index.

The Dallas-based carrier's total operating revenue increased 10.6 percent from the first quarter to $95 million, though revenue was flat year-over-year.

"Increased shipper demand, shrinking capacity and improving freight yield allowed us to regain our momentum," said Stoney M. Stubbs, chairman and CEO.

The recession sent the 64-year-old temperature-controlled trucker into a deep freeze. Its revenue declined 24 percent last year to $373.1 million.

The carrier lost $16.4 million last year, compared with a $605,000 profit in 2008.

It began implementing a recovery plan as the economy pulled out of the recession.

"Through the latter portion of 2009 and into 2010, we placed a priority on service excellence, targeted pricing programs and asset utilization," said Stubbs.

Revenue from its temperature-controlled truckload fleet increased 20.9 percent from the first quarter to $30.7 million, but was down 15.5 percent year-over-year.

Truckload revenue per loaded mile was up 15.3 percent from a year ago and 8.9 percent from the first quarter at $1.58 per mile.

LTL revenue rose 9.8 percent from the first quarter to $27.7 million, and was 4.1 percent higher than in the second quarter a year ago.

FFE's LTL volume increased 8.1 percent from the first quarter to 63,900 shipments, 6.3 percent higher than its volume a year ago.

As demand rises, FFE is beginning to put trucks it parked last year back into service, said President S. Russell Stubbs, the son of Stoney M. Stubbs.

"We have seen a willingness from shippers to allow pricing adjustments in order to ensure available capacity," he said.

FFE cut its fleet capacity 4.3 percent in 2009, ending the year with 1,943 tractors.

"As drivers return to the work force, we will be able to profitably increase our fleet to traditional levels," said Russell Stubbs.

-- Contact William B. Cassidy at wcassidy@joc.com.