Quality Distribution Inc. (QLTY)

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Quality Distribution, Inc. Announces Third Quarter Results
Thursday November 6, 4:06 pm ET


TAMPA, Fla., Nov. 6, 2008 (GLOBE NEWSWIRE) -- Quality Distribution, Inc. (NasdaqGM:QLTY - News) (the ``Company'' or ``QDI'') today reported the results for its third quarter and nine months ended September 30, 2008. The Company recorded net income for the third quarter of 2008 of $0.7 million, or $0.04 per diluted share, as compared with net income for the same period last year of $1.5 million, or $0.08 per diluted share. The third quarter of 2008 results include a pre-tax restructuring charge of $1.7 million, primarily related to the closure of tank wash and trucking terminals. Applying a normalized tax rate of 39% and excluding the restructuring charge would have resulted in net income of $1.9 million, or $0.10 per diluted share, for the third quarter of 2008 as compared with net income of $2.1 million, or $0.11 per diluted share, for the same prior-year period.
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For the nine months ended September 30, 2008, the Company recorded a net loss of $0.9 million, or ($0.04) per diluted share, as compared with net income of $3.6 million, or $0.19 per diluted share, for the 2007 nine-month period.

Total revenue for the third quarter of 2008 increased $22.6 million, or 11.7%, over the third quarter of 2007 from $192.2 million to $214.7 million. Of this increase, $22.7 million was generated from the Company's subsidiary, Boasso America Corporation (``Boasso''), which was acquired effective December 18, 2007. Revenue, excluding fuel surcharge and the revenue from Boasso, decreased by $16.5 million, or 9.8%, driven by continued softening in the housing and auto markets, as well as general economic conditions.

Total revenue increased $82.2 million, or 14.6%, from $565.0 million for the nine months ended September 30, 2007 to $647.2 million for the nine months ended September 30, 2008. Of the increase, $64.3 million was generated from Boasso. Excluding fuel surcharge and Boasso, revenue decreased by $27.9 million, or 5.6%, due to the factors discussed above.

Gary Enzor, President and Chief Executive Officer, commented, ``Despite the challenging freight environment and two hurricanes that impacted Gulf operations, we were able to deliver positive earnings in the quarter because we took decisive actions early in the year. Our cost reduction initiatives more than offset the impact of volume declines during the third quarter of 2008 and we will continue to expand these initiatives heading into 2009. We expect many of the actions we have already taken to have carryover benefits into next year and position us to drive earnings and cash availability despite market softness.''

Steve Attwood, Chief Financial Officer, commented further, ``Our liquidity improved significantly during the quarter as well. We are pleased our availability grew by $11 million to $57 million at the end of the quarter.''