<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-Q
[X] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934 for the period ended June 30, 1999
-------------
or
[ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934 for the transition period from _________________ to
___________________
Commission File Number 1-10006
Frozen Food Express Industries, Inc.
_______________________________________________________________________________
(Exact name of registrant as specified on its charter)
Texas 75-1301831
_______________________________________________________________________________
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
1145 Empire Central Place Dallas, Texas 75247-4309
_______________________________________________________________________________
(Address of principal executive offices) (Zip Code)
(2l4) 630-8090
_______________________________________________________________________________
(Registrant's telephone number, including area code)
None
________________________________________________________________________________
(Former name, former address and former fiscal year, if changed since last
report)
Indicate by check mark whether the registrant (l) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to filing requirements
for the past 90 days.
[X] Yes [ ] No
As of August 6, 1999, 16,286,244 shares of the Registrant's Common Stock, $1.50
par value, were outstanding.
<PAGE>
INDEX
PART I - FINANCIAL INFORMATION
Page No.
--------
Item l. Financial Statements
Consolidated Condensed Balance Sheets -
June 30, 1999 and December 31, 1998 2
Consolidated Statements of Income -
Three and Six months ended June 30, 1999 and 1998 3
Consolidated Condensed Statements of Cash Flows -
Six months ended June 30, 1999 and 1998 4
Notes to Consolidated Condensed Financial Statements 5
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 7
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K 12
Exhibit 27.1 - Financial Data Schedule 14
-1-
<PAGE>
FROZEN FOOD EXPRESS INDUSTRIES, INC. AND SUBSIDIARIES
Consolidated Condensed Balance Sheets
(In thousands)
(Unaudited)
<TABLE>
<CAPTION>
June 30, Dec. 31,
1999 1998
------------------- ---------------
<S> <C> <C>
Assets
Current assets
Cash $ 4,435 $ 6,023
Accounts receivable, net 53,807 43,802
Inventories 20,415 12,575
Tires 5,675 5,276
Other current assets 10,271 3,259
-------- --------
Total current assets 94,603 70,935
Property and equipment, net 75,058 64,405
Other assets 16,810 14,340
-------- --------
$186,471 $149,680
======== ========
Liabilities and Shareholders' Equity
Current liabilities
Trade accounts payable $ 17,439 $ 17,153
Accrued claims liabilities 3,973 3,801
Accrued payroll 3,912 5,759
Other 6,189 4,869
-------- --------
Total current liabilities 31,513 31,582
Long-term debt 35,000 --
Other and deferred credits 21,663 19,821
-------- --------
Total liabilities and deferred credits 88,176 51,403
-------- --------
Shareholders' equity
Common stock 25,921 25,921
Paid-in capital 5,164 5,323
Retained earnings 74,596 73,001
-------- --------
105,681 104,245
Less - Treasury stock 7,386 5,968
-------- --------
Total shareholders' equity 98,295 98,277
-------- --------
$186,471 $149,680
======== ========
</TABLE>
See accompanying notes.
-2-
<PAGE>
FROZEN FOOD EXPRESS INDUSTRIES, INC. AND SUBSIDIARIES
Consolidated Statements of Income
(In thousands, except per-share amounts)
(Unaudited)
<TABLE>
<CAPTION>
For the Three Months For the Six Months
Ended June 30, Ended June 30,
-------------------------------------- --------------------------------------
1999 1998 1999 1998
------------------ ------------------ ------------------ ------------------
<S> <C> <C> <C> <C>
Revenue
Freight revenue $ 78,843 $ 77,131 $ 152,667 $ 147,772
Non-freight revenue 17,975 12,285 32,408 19,155
------- ------- -------- --------
96,818 89,416 185,075 166,927
------- ------- -------- --------
Costs and expenses
Freight operating expenses
Salaries, wages and related expenses 21,656 20,803 42,295 39,800
Purchased transportation 17,369 16,729 33,686 32,377
Supplies and expenses 21,756 21,054 41,273 40,834
Revenue equipment rent 6,419 6,230 12,889 12,229
Depreciation 2,918 2,280 5,614 4,626
Communications and utilities 816 1,164 1,732 2,123
Claims and insurance 4,401 2,909 7,463 5,751
Operating taxes and licenses 1,180 1,079 2,546 2,361
Gain on sale of equipment (450) (227) (711) (463)
Miscellaneous expense 915 882 1,740 1,442
------- ------- -------- --------
76,980 72,903 148,527 141,080
Non-freight costs and operating expenses 17,262 11,396 31,537 18,573
------- ------- -------- --------
94,242 84,299 180,064 159,653
------- ------- -------- --------
Income from operations 2,576 5,117 5,011 7,274
Interest and other expense, net 485 247 916 353
------- ------- -------- --------
Income before income tax 2,091 4,870 4,095 6,921
Provision for income tax 774 1,832 1,515 2,488
------- ------- -------- --------
Net income $ 1,317 $ 3,038 $ 2,580 $ 4,433
======= ======= ======== ========
Net income per share of common stock
Basic $ .08 $ .18 $ .16 $ .26
======= ======= ======== ========
Diluted $ .08 $ .18 $ .16 $ .26
======= ======= ======== ========
Weighted average shares outstanding
Basic 16,334 16,894 16,386 16,873
======= ======= ======== ========
Diluted 16,463 17,169 16,537 17,251
======= ======= ======== ========
</TABLE>
See accompanying notes.
-3-
<PAGE>
FROZEN FOOD EXPRESS INDUSTRIES, INC. AND SUBSIDIARIES
Consolidated Condensed Statements of Cash Flows
(In thousands)
(Unaudited)
<TABLE>
<CAPTION>
For the Six
Months Ended June 30,
-------------------------------
1999 1998
-------- --------
<S> <C> <C>
Net cash (used in) provided by operating activities $(16,614) $ 771
-------- --------
Cash flows from investing activities
Expenditures for property and equipment (22,325) (13,671)
Proceeds from sale of property and equipment 7,532 2,633
Company owned life insurance and other (2,621) (3,125)
-------- --------
Net cash used in investing activities (17,414) (14,163)
-------- --------
Cash flows from financing activities
Borrowings under revolving credit agreement 37,000 --
Payments against revolving credit agreement (2,000) --
Dividends paid (985) (1,013)
Net treasury stock activity (1,575) (672)
-------- --------
Net cash provided by (used in) financing activities 32,440 (1,685)
-------- --------
Net decrease in cash and cash equivalents (1,588) (15,077)
Cash and cash equivalents at January 1 6,023 23,318
-------- --------
Cash and cash equivalents at June 30 $ 4,435 $ 8,241
======== ========
</TABLE>
See accompanying notes.
-4-
<PAGE>
FROZEN FOOD EXPRESS INDUSTRIES, INC. AND SUBSIDIARIES
Notes to Consolidated Condensed Financial Statements
June 30, 1999 and 1998
(Unaudited)
1. BASIS OF PRESENTATION
---------------------
The consolidated financial statements include Frozen Food Express Industries,
Inc. (FFEX) and its subsidiary companies (the company), all of which are wholly
owned. All significant intercompany accounts and transactions have been
eliminated in consolidation. The financial statements included herein have been
prepared pursuant to the rules and regulations of the Securities and Exchange
Commission (SEC) and have not been audited or reviewed by independent public
accountants. In the opinion of management, all adjustments (which consisted
only of normal recurring accruals) necessary to present fairly the financial
position and results of operations have been made. Pursuant to SEC rules and
regulations, certain information and disclosures normally included in financial
statements prepared in accordance with generally accepted accounting principles
have been condensed or omitted from these statements unless significant changes
have taken place since the end of the most recent fiscal year. FFEX believes
that the disclosures contained herein, when read in conjunction with the
financial statements and notes included, or incorporated by reference, in FFEX's
Form 10-K filed with the SEC on March 26, 1999, are adequate to make the
information presented not misleading. It is suggested, therefore, that these
statements be read in conjunction with the statements and notes (included, or
incorporated by reference), in the aforementioned report on Form 10-K.
2. FINANCING AND INVESTING ACTIVITIES NOT AFFECTING CASH
-----------------------------------------------------
During the six months ended June 30, 1998, the company funded contributions to
its Employee Savings Plan by transferring 113,324 shares of treasury stock to
the Plan trustee. The fair market value of the transferred shares was
$1,078,000.
3. SHAREHOLDERS' EQUITY
--------------------
As of June 30, 1999 and December 31, 1998, respectively, there were 16,306,000
and 16,499,000 shares of stock outstanding. During both of the quarters ended
June 30, 1999 and 1998, the company declared dividends on the common stock of
three cents per share.
4. COMMITMENTS AND CONTINGENCIES
-----------------------------
The company has accrued for costs related to public liability and work-related
injury claims, some of which involve litigation. The aggregate amount of these
claims is significant. In the opinion of management, these actions can be
successfully defended or resolved, and any additional costs incurred over
amounts accrued will not have a material adverse effect on the company's
financial position, cash flows or results of operations.
5. EARNINGS PER SHARE
------------------
Common stock equivalents included in diluted weighted average shares, all of
which result from dilutive stock options granted by the company, were as
follows:
1999 1998
---- ----
For the three months ended June 30 129,000 275,000
For the six months ended June 30 151,000 378,000
-5-
<PAGE>
6. OPERATING SEGMENTS
------------------
The company's operations consist of two reportable segments. The freight
segment is engaged primarily in the motor carrier freight transportation
business. The smaller segment is primarily engaged in non-freight business
relating to the sale and service of refrigeration equipment and of trailers used
in freight transportation.
Financial information for each reportable segment for the six month periods
ended June 30, 1999 and 1998 is as follows (in millions):
<TABLE>
<CAPTION>
1999 1998
----------------- ----------------
<S> <C> <C>
Freight Operations
Total Revenue $152.7 $147.8
Operating Income 4.1 6.7
Total Assets 171.4 137.7
Non-Freight Operations
Total Revenue $ 39.2 $ 25.2
Operating Income 0.9 0.6
Total Assets 38.8 22.5
Intercompany Eliminations
Revenue $ (6.8) $ (6.1)
Operating Income - -
Assets (23.7) (12.4)
Consolidated
Revenue $185.1 $166.9
Operating Income 5.0 7.3
Assets 186.5 147.8
</TABLE>
Intercompany elimination of revenue relates to transfers at cost of inventory
such as trailers and refrigeration units from the non-freight segment for use by
the freight segment.
-6-
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
The table sets forth, as a percentage of freight revenue, certain major
operating expenses for the three-and six- month periods ended June 30, 1999 and
1998.
<TABLE>
<CAPTION>
Three Months Six Months
Ended June 30, Ended June 30,
----------------------------- ----------------------
1999 1998 1999 1998
-------------- ------------- ----------- ---------
<S> <C> <C> <C> <C>
Salaries, wages and related 27.5% 27.0% 27.7% 26.9%
expense
Purchased transportation 22.0 21.6 22.1 21.9
Supplies and expenses 27.6 27.2 27.0 27.6
Revenue equipment rent 8.1 8.1 8.4 8.3
Depreciation 3.7 3.0 3.7 3.1
Claims and insurance 5.6 3.8 4.9 3.9
Other 3.1 3.8 3.5 3.8
---- ---- ---- ----
Total freight operating expenses 97.6% 94.5% 97.3% 95.5%
==== ==== ==== ====
</TABLE>
Second Quarter of 1999 vs. 1998
During the second quarter of 1999, revenue increased by 8.3% to $96,818,000 with
freight revenue up $1.7 million or 2.2%. Non-freight revenue aggregated 18.6%
and 13.7% of total revenue during the second three months of 1999 and 1998,
respectively. Less-than-truckload (LTL) revenue was 4.1% lower and full-
truckload revenue increased by 5.2% as compared to the same period of 1998.
The increase in full-truckload revenue was due primarily to a 4.9% increase in
average per-shipment revenue.
During the 1999 second quarter, total LTL hundredweight declined by 6.3%, while
revenue per LTL hundredweight improved by 2.3%.
The 1999 increase in non-freight revenue was due to improvement in the market
for refrigeration equipment and to the continued expansion of the company's non-
freight subsidiary into new geographical and product market areas.
The number of tractors in the fleet of company-operated, full-truckload
equipment rose from approximately 1,235 at the beginning of 1999 to about 1,260
by the end of the second quarter. The number of full-truckload tractors provided
by owner-operators had increased by 30 to approximately 460.
-7-
<PAGE>
Full-truckload activities, which contributed 70.1% and 68.1%, respectively, of
freight revenue during the second quarter of 1999 and 1998, are conducted
primarily with company-operated equipment, while LTL activities are conducted
primarily with equipment provided by owner-operators. Changes in the mix of LTL
versus full-truckload revenue as well as fluctuations in the amount of total
freight handled on company-operated versus owner-operator provided equipment,
impacted the percent of freight revenue absorbed by the various categories of
operating expenses between the two quarters. The proportion of full-truckload
revenue generated by company-operated trucks during the second quarter of 1999
was 74.8%, as compared to 76.8% during the second quarter of 1998. Company-
operated trucks generated 30.4% of total LTL revenue for the second quarter of
1999 as compared to 29.6% during the second quarter of 1998.
During the second quarter of 1999, the percent of freight revenue absorbed by
salaries, wages and related expense was 27.5%, as compared to 27.0% during the
year-ago quarter, due primarily to the increased quantity of employee-driven,
company-operated equipment. Purchased transportation expense as a percent of
freight revenue also increased from 21.6% in the second quarter of 1998 to
1999's 22.0%. This was due primarily to the proportional increase in the
quantity of truckload shipments transported by contractor-provided tractors.
Per-gallon fuel costs paid by the company rose by 3.5% during the second quarter
of 1999 as compared to 1998. Due to a variety of factors, fuel price volatility
does not significantly impact the company's cost structure or profitability.
Owner-operators are responsible for all costs associated with their equipment,
including fuel. Therefore, the cost of such fuel is not a direct expense of the
company. With regard to fuel expenses for company-operated equipment, the
company attempts to mitigate the effect of fluctuating fuel costs by purchasing
more fuel-efficient tractors and aggressively managing fuel purchasing. Also,
certain rates charged by the company for its service are adjustable by reference
to market fuel prices. Relatively high or low per-gallon market fuel prices can
result in upward or downward adjustment of freight rates, further mitigating the
impact of such volatility on the company's profits.
The sum of revenue equipment rent and depreciation rose by 9.7% during 1999's
second quarter to $9.3 million. This increase is the result of increases in the
quantities of company-owned tractors and trailers.
Claims and insurance expense rose from 3.8% of freight revenue during the second
quarter of 1998, to 5.6% for 1999. The increase resulted from a variety of
factors, including but not limited to an increase in the frequency of physical
damage losses and the relative severity of incidents that involve liability for
personal injury.
Income from operations fell by 49.7% during the second quarter of 1999 as
compared to 1998.
Interest and other expense, net rose from $247,000 to $485,000 between the two
quarters. Increased interest costs associated with borrowed funds and reduced
interest income on invested funds were the principal factors affecting this net
increase.
Pre-tax income fell by 57.1% during the second quarter of 1999 as compared to
1998.
The provision for income tax was 37% of pre-tax income for the second quarter of
1999, as compared to 37.6% for 1998.
-8-
<PAGE>
First Six Months of 1999 vs. 1998
For the six months ended June 30,1999, revenue increased by 10.9%, but income
from operations fell by 31%. Of the $18,148,000 increase in total revenue,
revenue generated by the company-operated, full-truckload fleet increased by
$2,881,000, and full-truckload revenue generated by owner-operator provided
equipment rose by $3,300,000, or 13.7%. LTL revenue declined by $1,286,000, and
non-freight revenue increased by $13,253,000.
The increase in the percent of revenue absorbed by salaries, wages and related
expenses relative to the percent of freight revenue absorbed by purchased
transportation are related to the change in the mix of company-operated versus
owner-operator-provided trucks in the company's fleet as outlined above in the
discussion of second quarter results.
During the first half of 1999, revenue equipment rent expense, which is
primarily related to the company-operated, full-truckload fleet, as a percentage
of freight revenue was 8.4%, as compared to 8.3% during 1998. Depreciation
expense, which is related to the company's operating fleets as well as other
types of property, between the six-month periods rose from 3.1% to 3.7% of
freight revenue. Fluctuations in these expenses are affected by changes in the
proportion of owned tractors and trailers versus those that are leased pursuant
to long-term operating lease agreements.
LIQUIDITY AND CAPITAL RESOURCES
The company's primary needs for capital resources are to finance working
capital, capital expenditures and, from time to time, acquisitions. Working
capital investment typically increases during periods of sales expansion when
higher levels of receivables, with regard to non-freight operations inventory
are present. The company had long-term debt of $35.0 million as of June 30,
1999. Net of outstanding letters of credit in favor of insurance companies of $5
million, the unused portion of the company's $50,000,000 revolving credit
facility was approximately $10 million.
Net cash used in operating activities was $16.6 million and cash provided by
operating activities was $771,000 for the six months ending June 30, 1999 and
1998, respectively. This change was primarily attributable to fluctuations in
the components of working capital.
Net capital expenditures were $14.8 million and $11.0 million for the six months
ended June 30, 1999 and 1998, respectively.
The company believes that its current cash position, funds from operations, and
the availability of funds under its credit agreements will be sufficient to meet
anticipated liquidity requirements for the next twelve months. At June 30, 1999,
working capital was $63.1 million as compared to $39.4 million at December 31,
1998.
During the first six months of 1999, working capital increased by $24 million,
represented by increased investments in accounts receivable, inventories and
other current assets. Increased accounts receivable resulted in part from
temporary delays in the company's collection cycle. The slower collection cycle
is believed to be a temporary outcome of the computer systems conversion
accomplished during 1999's second quarter. The increased level of other current
assets resulted primarily from recoverable expenditures related to the
retirement of tractors that had been leased pursuant to operating leases. The
higher level of inventories was related to the expansion of the company's non-
freight operations and to such operations, seasonal purchases of product
anticipated to be marketed during the summer months which constitute the non-
freight operations' peak seasonal selling period.
-9-
<PAGE>
YEAR 2000
The company is aware of the potential problems associated with existing
information technology systems ("IT systems") as the millennium year (Year 2000)
approaches. The company's exposure to such problems does not involve significant
date-sensitive financial computations. Rather, problems may occur with regard to
IT systems and the impact erroneous dates may have on core business operating
activities such as the company's ability to process customer orders, track and
manage equipment, and generate customer invoices. Disruptions in any such
activity could have a significant negative impact on the company's ability to
conduct its routine business operations. New systems have been installed based
on more current technology, which address the issues associated with the
millennium year. It is not practicable to isolate the portion of "new" system
development costs, which are specifically associated with the Year 2000 ("Y2K")
problem. Such development costs have, to date, been financed by internally
generated funds. Incremental costs associated with the development effort have
been capitalized by the company and will be amortized against post-conversion
income.
The company also uses a variety of assets that are operated by or reliant upon
non-information technology systems ("non-IT systems"), such as equipment or
refrigeration systems that contain embedded technology. Modification or
replacement would be necessary for proper performance of any IT or non-IT system
that is unable to properly interpret and process the Y2K.
STATE OF READINESS. The company continues to evaluate the status of the
company's systems for Y2K compliance. In addition, the company has verified the
Y2K compliance of third parties with whom the company has a material
relationship, such as customers, suppliers and service providers such as
financial institutions. To date, no significant Y2K problems have been
identified by these evaluations.
The failure of any internal non-IT system to become timely compliant for Y2K is
not expected to have a material effect on the business, operations or financial
condition of the company. Nevertheless, the company will continue to take steps
to modify or replace all non-IT systems that are not Y2K compliant during the
1999 calendar year. The cost of such conversions is not expected to be
material.
During the first half of 1999, the company's principal operating subsidiary
converted from its non-Y2K compliant mainframe system, which had been in place
for several years, to a newer technology which is believed to be substantially
Y2K compliant. The new system is continually evaluated with respect to Y2K
compliance. These evaluations are conducted by internal as well as external
persons with requisite evaluation skills. To date, no significant Y2K problems
have been identified by these evaluations.
The new system is expected to improve and standardize company processes and
apply technology to reduce operating costs. This system centers around
modifications to software procured from third party systems vendors. The new IT
system and related processes are also expected to enhance the Company's
competitive position by improving customer service, pricing strategies and
logistics management.
The company has reviewed its telecommunications systems with its third party
providers and has been assured that they are or will be Y2K compliant. The
company is also assessing the requirements to make Y2K compliant all third party
IT-system software used in desktop computers. These costs are not expected to be
material to the company.
COSTS TO ADDRESS YEAR 2000 ISSUES. As of June 30, 1999, the company has
incurred $10 million for the cost of the system project.
RISKS TO THE COMPANY FOR Y2K ISSUES. The most likely worst case scenario to
the company associated with its Y2K compliance efforts would be the failure of
third parties with whom the company has material business relationships to
become Y2K compliant. It is not feasible at this time to predict the impact, if
any, on the company's financial condition or results of operations as a result
of this scenario.
CONTINGENCY PLAN. Other subsidiaries and divisions of the company are in
varying stages of Y2K readiness. Some are prepared while others are actively
pursuing Y2K compliance. It is expected that all operations will be
substantially compliant prior to the fourth quarter of 1999. Because procedures
at these
-10-
<PAGE>
operations are less complex, the company expects that non-compliance of
information systems can be quickly resolved.
OUTLOOK
Certain statements contained herein including statements regarding the
anticipated development and expansion of the company's business or the industry
in which the company operates, the intent, belief or current expectations of the
company, its directors or its officers, primarily with respect to the future
operating performance of the company and other statements contained herein
regarding matters that are not historical facts, are "forward-looking"
statements (as such term is defined in the Private Securities Litigation Reform
Act of 1995). Because such statements involve risks and uncertainties, actual
results may differ materially from those expressed or implied from such forward-
looking statements. These risks and uncertainties include demand for the
company's services and products, and the company's abilities to meet that
demand, which may be affected by, among other things, competition, weather
conditions and the general economy, the availability and cost of labor,
equipment, fuel and supplies, the impact of changes in the tax and regulatory
environment in which the company operates, operational risks and insurance,
risks associated with the technologies and systems used by the company and the
other risks and uncertainties described in the company's filings with the
Securities and Exchange Commission.
QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK
As of June 30, 1999, long-term debt stood at $35 million, which approximated
fair market value. No short-term debt was present. Also, as of June 30, 1999,
the company held no material market risk sensitive instruments (for trading as
well as non-trading purposes) which would involve significant foreign currency
exchange rate risk, commodity price risk or other relevant market risks, such as
equity price risk. Accordingly, the potential loss to the company in future
earnings, fair values or cash flows of market risk sensitive investments
resulting from changes in interest rates, foreign currency exchange rates,
commodity prices and other relevant market rates or prices is not significant.
-11-
<PAGE>
PART II - OTHER INFORMATION
Item 4. Submission of Matters to Vote of Security Holders
The Annual Meeting of Shareholders of the company was held on April 22,
1999. At the meeting, the following persons were elected as directors
of the company:
Stoney M. Stubbs, Jr. T. Michael O'Connor
W. Mike Baggett Edgar O. Weller
Brian R. Blackmarr Charles G. Robertson
Leroy Hallman F. Dixon McElwee, Jr.
W. Grogan Lord
The above listed individuals comprise all directors of the company.
Also voted on at the meeting was a proposal to approve an amendment to
the company's 1992 Incentive and Nonstatutory Stock Option Plan, as
amended, increasing the total number of shares available for the grant
of options from 2,006,944 to 2,306,944 shares (11,360,611 shares voted
for and 800,588 shares votes against), the proposal to reapprove the
FFE Transportation Services, Inc. 1994 Incentive Bonus Plan and the
performance goals contained therein (11,926,312 shares voted for and
324,695 shares voted against) and a proposal to reapprove the FFE
Transportation Services, Inc. 1999 Executive Bonus and Phantom Stock
Plan and the performance goals contained therein (11,925,661 shares
voted for and 313,522 shares voted against).
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
27.1 Financial Data Schedule
(b) No reports on Form 8-K were filed during the quarter ended
June 30, 1999.
-12-
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of l934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, hereunto duly authorized.
FROZEN FOOD EXPRESS INDUSTRIES, INC.
------------------------------------
(Registrant)
August 12, 1999 By: /s/Stoney M. Stubbs, Jr.
------------------------
Stoney M. Stubbs, Jr.
Chairman of the Board
August 12, 1999 By: /s/F. Dixon McElwee, Jr.
------------------------
F. Dixon McElwee, Jr.
Senior Vice President
Principal Financial and Accounting Officer
-13-
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED BALANCE SHEETS OF FROZEN FOOD EXPRESS INDUSTRIES, INC. AND
SUBSIDIARIES AS OF JUNE 30, 1999, AND THE CONSOLIDATED STATEMENTS OF INCOME,
CASH FLOWS AND STOCKHOLDERS' EQUITY FOR THE SIX MONTHS ENDED JUNE 30, 1999,
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> JUN-30-1999
<CASH> 4,435
<SECURITIES> 0
<RECEIVABLES> 57,840
<ALLOWANCES> 4,033
<INVENTORY> 20,415
<CURRENT-ASSETS> 94,603
<PP&E> 120,229
<DEPRECIATION> 45,171
<TOTAL-ASSETS> 186,471
<CURRENT-LIABILITIES> 31,153
<BONDS> 0
0
0
<COMMON> 25,921
<OTHER-SE> 72,374
<TOTAL-LIABILITY-AND-EQUITY> 186,471
<SALES> 32,408
<TOTAL-REVENUES> 185,075
<CGS> 0
<TOTAL-COSTS> 180,064
<OTHER-EXPENSES> 763
<LOSS-PROVISION> 893
<INTEREST-EXPENSE> 153
<INCOME-PRETAX> 4,095
<INCOME-TAX> 1,515
<INCOME-CONTINUING> 2,580
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,580
<EPS-BASIC> 0.16
<EPS-DILUTED> 0.16
</TABLE>
