Frozen Food Express Industries Inc., headquartered in Dallas, Texas, has reported improved results for its first quarter, ended March 31, 2003, when compared to those of last year's first quarter.

Revenue for 2003's first quarter was $91,454,000, compared to $79,057,000 for the first quarter of 2002.
Freight revenue improved by 14.3% between the quarters to $88.5 million, principally due to increased revenue from less-than-truckload operations and from fuel surcharges. Freight revenue increased by $11.1 million, 33% of which was due to increased fuel surcharges. The first-quarter 2003 net loss was $668,000, or 4 cents a share, compared to a loss of $944,000, or 6 cents a share, for the first quarter of 2002.
Stoney M. (Mit) Stubbs, Jr., chairman and CEO, said 2003's first-quarter results were impacted by adverse weather conditions and record high fuel costs.
"During last year's first quarter," Stubbs said, "national average diesel fuel prices ranged from about $1.30 a gallon to a little more than $1.15. In this year's first quarter, the price of fuel ranged from about $1.80 to just under $1.55 a gallon. Our fleet drives millions of miles a quarter and the cost of fuel is important to our operating results.
"Our first-quarter fuel bill was 35% higher than it was in last year's first quarter, and it encourages me that, in spite of the high fuel costs, we were able to improve our results in what normally is our toughest quarter, due in part to improved claims and insurance expenses. We carry a significant retention of our accident liability coverage. Therefore, changes in the frequency and severity of accidents can positively or negatively impact our operating results," Stubbs said.
"Because the freight we haul is predominately temperature-sensitive, requiring some level of refrigeration, our business is best during the warmer months. The first quarter of our year is typically the weakest and the fourth quarter is the most unpredictable and almost always weaker than the warm-weather quarters," Stubbs explained.
"Our freight business earned a small operating profit in 2003's first quarter, compared to a $290,000 operating loss in the year-ago quarter, but our non-freight segment incurred an operating loss of about $600,000 during the first quarter of 2003, as compared to about $525,000 in the first quarter of 2002," Stubbs said. He expressed continuing disappointment in the performance of the non-freight segment and added that FFEX will take "whatever steps are required to address these issues."