8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report:

(Date of earliest event reported)

November 5, 2009

FROZEN FOOD EXPRESS INDUSTRIES, INC.

(Exact Name of Registrant as Specified in its Charter)

Texas (State or Other Jurisdiction of Incorporation)	1-10006 COMMISSION FILE NUMBER	75-1301831 (IRS Employer Identification No.)
1145 Empire Central Place Dallas, Texas 75247-4305 (Address of Principal Executive Offices)		(214) 630-8090 (Registrant's telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
r	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
r	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
r	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
r	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

ITEM 2.02.	Results of Operations and Financial Condition
	On November 5, 2009, Frozen Food Express Industries, Inc. issued a news release announcing its results of operations for the three- and nine-month periods ended September 30, 2009, as compared to the same period of 2008.  A copy of the news release is furnished, but not filed, as Exhibit 99.1 to this Current Report on Form 8-K.

ITEM 9.01.	Financial Statements and Exhibits
(a)	Financial statements of business acquired.
	Not applicable.
(b)	Pro-forma financial information.
	Not applicable.
(c)	Shell company transactions.
	Not applicable.
(d)	Exhibits
	99.1	Press Release dated November 5, 2009, regarding the third quarter 2009 results of Frozen Food Express Industries, Inc.

   SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	FROZEN FOOD EXPRESS INDUSTRIES, INC.
Dated: November 6, 2009	By:	/s/ Ronald J. Knutson
		Ronald J. Knutson   Senior Vice President and Chief Financial Officer (Principal Financial and Accounting Officer)

EXHIBIT INDEX
Exhibit No.	Exhibit Title
99.1	Press Release dated November 5, 2009, regarding the third quarter 2009 results of Frozen Food Express Industries, Inc.

EX-99.1 CHARTER

EXHIBIT 99.1

FOR IMMEDIATE RELEASE

Frozen Food Express Industries, Inc.

Announces Third Quarter 2009 Results

DALLAS, November 5, 2009 (GLOBE NEWSWIRE) – Frozen Food Express Industries, Inc. (Nasdaq:FFEX) today announced its financial and operating results for the quarter ended September 30, 2009.  Highlights from the third quarter include:

·   Total revenues of $94.5 million

·   A pre-tax loss of $4.6 million, an improvement of $1.9 million over the second quarter of 2009

·   Operating expenses of $99.3 million, a reduction of $29.6 million from the third quarter of last year

·   Operating ratio of 105.1% versus 106.8% for the second quarter and 109.2% for the first quarter

·   No debt outstanding and cash on hand of $2.7 million

For the current quarter, revenue excluding fuel surcharges decreased 16.8% to $82.0 million from $98.6 million in the third quarter of 2008. Total revenue for the quarter declined 28.7% to $94.5 million from $132.5 million in 2008.  For the nine month period ended September 30, 2009, revenue excluding fuel surcharges decreased 13.4% to $249.5 million from $288.1 million in 2008, while total year to date revenue declined 25.5% to $281.6 million from $378.2 million in 2008.

For the quarter, the Company incurred an after tax loss of $2.6 million, or $0.15 per diluted share compared to net income of $1.4 million, or $0.08 per diluted share in the third quarter of 2008. The loss was primarily driven by the current economic slump which is driving lower demand for transportation services and creating excess capacity, which in turn is placing continued downward pressure on pricing.  For the nine month period ended September 30, 2009, the Company reported an after tax loss of $13.8 million, or $0.81 per diluted share versus net income of $806,000, or $0.05 per diluted share in 2008.

Despite the economic challenges and rapidly declining demand for transportation services in 2009, the Company is continuing to focus on reducing operating expenses wherever possible and maintaining tight control over its cash position.  Stoney M. (“Mit”) Stubbs, President and CEO commented, “2009 has undoubtedly been the toughest operating conditions our industry has seen in quite some time.  We continue to experience significant revenue and profit challenges that we believe are the result of the weak economy, increased unemployment and changes in consumer buying habits.  While our results reflect the negative impact of the current economic recession, we continue to place an emphasis on cost controls while focusing on customer initiatives to incrementally increase revenue and profits which has allowed our results to improve every quarter during 2009.”

The Company recently entered into a two year credit agreement with Comerica Bank.  Mit Stubbs continued, “This agreement allows us to partner with an institution that truly understands our business needs.  And, we ended the third quarter with no amounts drawn on the facility evidencing our strong management over our balance sheet and cash flows.”

The Company continues to execute on its comprehensive cost reduction initiative to reduce many of its non-variable costs.  To date, the Company’s non-driver headcount has been reduced approximately 190 positions or 22 percent since January 1st.  Since the beginning of the year, the Company has taken additional significant action to reduce many of its operating costs including, but not limited to, suspension of its 401(k) match, reduction of standard work week hours, decrease of its recruiting efforts, early termination of equipment leases, reduction of travel expenses and streamlining existing processes.

For the quarter, asset productivity (measured by revenue per truck per week) declined 15.3% to $3,024 from $3,569 during the third quarter of 2008 primarily due to a decrease in freight rates per loaded mile for truckload services to $1.41 from $1.48, an increase in the Company’s empty mile ratio, a 13.7% decline in less-than-truckload hundredweight and a decrease in less-than-truckload revenue per hundredweight from $15.04 to $14.51.  Although revenue per mile and less-than-truckload revenue per hundredweight decreased from a year ago, they increased 4 cents and 30 cents, respectively, over the second quarter as we refine our pricing within our network.

Operating expenses as a percentage of operating revenue (“operating ratio”) were 105.1% for the third quarter of 2009 compared with 97.3% in 2008 and 106.8% for the second quarter of 2009.  Operating expenses decreased at a lower rate than revenue primarily due to higher claims and insurance costs and increased equipment rent, partially offset by decreases in fuel and purchased transportation.  Fuel decreased 46.7% to $17.1 million in the third quarter of 2009 from $32.1 million in the third quarter of 2008 and decreased 47.9% to $46.3 million in the 2009 nine month period from $88.7 million in the 2008 nine month period.  This improvement was primarily due to significantly lower fuel prices and fewer miles driven in the 2009 periods and our focus to reduce fuel cost through improved miles-per-gallon initiatives.

Purchased transportation decreased 31.4% to $20.2 million in the third quarter of 2009 from $29.5 million in the third quarter of 2008 and decreased 33.7% to $61.8 million in the 2009 nine month period from $93.1 million in the 2008 nine month period primarily as a result of a decrease in miles driven by, and lower fuel surcharges paid to, our independent contractors.  Revenue equipment rent increased 4.7% to $9.4 million in the third quarter of 2009 from $9.0 million in the third quarter of 2008 and increased 14.2% to $29.4 million for the 2009 nine month period primarily due to an increase in the number of leased tractors as the Company increased its mix of leased versus owned equipment.

Despite the third quarter operating loss, the Company continues to be in a strong cash position with no borrowings outstanding under its revolving credit agreement as of the end of the quarter. For the nine months ending September 30, 2009, the Company generated cash flows from operations of $6.5 million and maintains a strong working capital position. At September 30, 2009 the Company had $2.7 million in cash and cash equivalents, $92.3 million in shareholders' equity and no outstanding debt.

Mr. Stubbs concluded, "We are taking every conceivable action to control costs and implement sales initiatives to drive incremental revenue during this severe economic recession, while at the same time managing our cash position to ensure liquidity.  We are taking a very aggressive approach in managing our balance sheet and working capital.  We have ended each quarter this year with no amounts due on our revolver and we believe we will be well positioned in the future when the overall economy and the transportation industry rebounds.”

About FFEX

Frozen Food Express Industries, Inc. is one of the leading temperature-controlled truckload and less-than-truckload carriers in the United States with core operations in the transport of temperature-controlled products and perishable goods including food, health care and confectionery products. Service is offered in over-the-road and intermodal modes for temperature-controlled truckload and less-than-truckload, as well as dry truckload. We also provide brokerage/logistics services, as well as dedicated fleets to our customers. Additional information about Frozen Food Express Industries, Inc. can be found at the http://www.ffex.net.  To join our email alert list, please click on the following link: http://financials.ffex.net/alerts.cfm. FFE's common stock is traded on the Nasdaq Global Select market under the symbol FFEX.

 Forward-Looking Statements

This press release contains certain statements that may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934, as amended. Forward-looking statements include statements relating to plans, strategies, objectives, expectations, intentions, and adequacy of resources, and may be identified by words such as "will", "could", "should", "believe", "expect", "intend", "plan", "schedule", "estimate", "project", and similar expressions. Those statements are based on current expectations and are subject to uncertainty and change.

Although our management believes that the expectations reflected in such forward-looking statements are reasonable, there can be no assurance that such expectations will be realized. Should one or more of the risks or uncertainties underlying such expectations not materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those expected.

Among the key factors that are not within our management's control and that may cause actual results to differ materially from those projected in such forward-looking statements are demand for the company's services and products, and its ability 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 and owner-operators, the ability to negotiate favorably with lenders and lessors, the effects of terrorism and war, the availability and cost of equipment, fuel and supplies, the market for previously-owned equipment, 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 and the other risks and uncertainties described in our filings with the Securities and Exchange Commission. Readers should review and consider these factors along with the various disclosures by the Company in its press releases, stockholder reports and filings with the Securities and Exchange Commission. The company does not assume, and specifically disclaims, any obligation to update or revise any forward-looking statements to reflect actual results or changes in the factors affecting the forward-looking information.

Frozen Food Express Industries, Inc. and Subsidiaries

Consolidated Condensed Balance Sheets

(Unaudited and in thousands, except per-share amounts)

Assets	September 30, 2009			December 31, 2008
Current assets
Cash and cash equivalents	$	2,670		$	1,308
Accounts receivable, net		43,622			52,749
Tires on equipment in use, net		5,632			5,425
Deferred income taxes		1,491			2,666
Property and equipment held for sale		1,019			-
Other current assets		9,075			10,822
Total current assets		63,509			72,970
Property and equipment, net		74,555			83,394
Other assets		5,058			5,822
Total assets	$	143,122		$	162,186
Liabilities and Shareholders' Equity
Current liabilities
Accounts payable	$	20,379		$	21,148
Insurance and claims accruals		9,628			7,736
Accrued payroll and deferred compensation		5,367			4,396
Accrued liabilities		1,716			1,760
Total current liabilities		37,090			35,040
Long-term debt		-			-
Deferred income taxes		6,585			14,235
Insurance and claims accruals		7,176			6,460
Total liabilities		50,851			55,735
Shareholders’ equity
Common stock, $1.50 par value per share; 75,000 shares
authorized; 18,572 shares issued		27,858			27,858
Additional paid-in capital		2,625			5,412
Retained earnings		72,739			87,103
		103,222			120,373
Treasury stock (1,441 and 1,813 shares), at cost		(10,951	)		(13,922	)
Total shareholders’ equity		92,271			106,451
Total liabilities and shareholders’ equity	$	143,122		$	162,186

Frozen Food Express Industries, Inc. and Subsidiaries

Consolidated Condensed Statements of Operations

(Unaudited and in thousands, except per-share amounts)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2009			2008			2009			2008
Revenue	$	94,500		$	132,451		$	281,602		$	378,206
Operating expenses
Salaries, wages and related expenses		30,306			33,693			94,115			96,524
Purchased transportation		20,246			29,517			61,752			93,141
Fuel		17,132			32,130			46,251			88,694
Supplies and  maintenance		11,486			14,047			35,874			39,864
Revenue equipment rent		9,431			9,005			29,386			25,734
Depreciation		4,303			4,684			13,296			14,183
Claims and insurance		3,215			2,733			10,934			9,001
Communications and utilities		1,323			1,410			3,898			3,636
Operating taxes and licenses		1,076			1,163			3,656			3,431
Loss (gain) on sale of property and equipment		177			(491	)		(75	)		(1,096	)
Miscellaneous		638			1,000			2,367			3,234
Total operating expenses		99,333			128,891			301,454			376,346
Income (loss) from operations		(4,833	)		3,560			(19,852	)		1,860
Interest and other (income) expense
Interest income		(1	)		(12	)		(5	)		(66	)
Interest expense		5			74			9			110
Equity in earnings of limited partnership		(313	)		(200	)		(472	)		(511	)
Other		106			200			591			(108	)
Total interest and other (income) expense		(203	)		62			123			(575	)
Pre-tax income (loss)		(4,630	)		3,498			(19,975	)		2,435
Income tax (benefit) expense		(2,070	)		2,141			(6,126	)		1,629
Net income (loss)	$	(2,560	)	$	1,357		$	(13,849	)	$	806
Net income (loss) per share of common stock
Basic	$	(0.15	)	$	0.08		$	(0.81	)	$	0.05
Diluted	$	(0.15	)	$	0.08		$	(0.81	)	$	0.05
Weighted average shares outstanding
Basic		17,149			16,737			17,069			16,699
Diluted		17,149			17,027			17,069			16,998
Dividends declared per common share	$	-		$	0.03		$	0.03		$	0.09

The following table summarizes and compares the significant components of revenue and presents our operating ratio and revenue per truck per week for each of the three- and nine-month periods ended September 30: