Frozen Food Express Industries, Inc. announced that for the quarter ended June 30, 2006, total revenue was $126.8 million, as compared to $126.7 million during the same quarter of 2005.
Second quarter 2006 total revenue included fuel surcharge revenue of $20.2 million, compared to $14.0 million for the same quarter of 2005.
Income from operations for the second quarter of 2006 was $3.5 million, which declined from $6.0 million during the second quarter of 2005. Second quarter 2006 operating expenses include $.9 million for professional fees and other expenses related to an Audit Committee investigation. Second quarter 2005 interest and other income included the gain associated with the sale of the life insurance investment. Second quarter 2006 pre-tax income decreased to $3.8 million from $9.5 million for the second quarter of 2005.
Net income for the second quarter of 2006 decreased to $2.1 million from $5.8 million for the second quarter of 2005. Second quarter 2006 net income per diluted share of common stock was $.11 as compared to $.31 for the second quarter of 2005.
"The company has initiated programs designed to do more with what we've got,” said Stoney R. ("Russell") Stubbs, director and Senior Vice President of the company. “Just 6% of the company's full-year 2005 revenue was generated by its intermodal operations. You put a loaded trailer on a railroad flatcar and, suddenly, it's like you've got another tractor and driver."
FFEX has brought in new leadership for its intermodal operation. "We expect to see an increase in intermodal revenue during the second half of this year," commented Mr. Stubbs.
Stubbs explained that the company's LTL system operates on a schedule, "just like a bus line." He said the company is in the process of adjusting its LTL schedules to make the fleet more productive.
"LTL is complicated. We operate on schedules that promise our shippers definite pickup and delivery windows, so when an LTL truck is scheduled to leave, it pulls away from the dock and heads down the road-full or not. Based on the average weight they're carrying, we're running just two-thirds full. We can do better."
Stubbs said the company is revising its LTL schedules with the aim of having more shipments per LTL truck. "We make pickup and deliveries in about 6,500 cities and towns. To improve our efficiencies, we might lengthen the time between scheduled runs or eliminate a run altogether."