Quality Distribution Inc. (QLTY)

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Quality Distribution, Inc. Announces Reduction in Force
TAMPA, Fla., April 14 /PRNewswire-FirstCall/ -- Quality Distribution, Inc. (Nasdaq: QLTY) (the 'Company') announced today that it has reduced its workforce. Most of the reductions occurred at the Company's Tampa, FL headquarters where approximately 17% of the positions were eliminated. The Company eliminated approximately sixty positions and expects a reduction in payroll related cost in excess of $5 million dollars annually. In conjunction with this action, the Company will take a pre-tax charge for severance related costs of approximately $1.5 million in the second quarter.

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Gary Enzor, Chief Executive Officer stated, 'This was a very difficult decision, but one that was necessary in light of our recent financial performance. We made these reductions while giving full consideration to ensuring that we maintain our commitment to the highest standards for customer service and compliance. In addition to the announced staff reductions, we are focused on further cost reductions driven via procurement, increased loaded ratio and improved productivity. While our recent profitability has been below our expectations, we made these changes to strengthen our market leading position and we remain committed to both top and bottom line growth. We believe we have the access to capital necessary to not only weather the current economic cycle, but also to pursue our growth plans. With the December 2007 refinancing of our Senior Credit Facility, the Company had in excess of $50 million available borrowing capacity at the end of the quarter, a greater level of availability than at any time in our history.'

The Company also announced that first quarter revenues excluding fuel surcharge were approximately $177 million, an 11% increase over last year. Excluding the impact of our acquisition of Boasso, which closed in December of 2007, revenue for the quarter was flat with last year, as we continued to be impacted by the softness in the housing markets as well as 10% fewer work days in March this year as compared to last March.