Quality Distribution, Inc. Q1 2010 Earnings Call Transcript
Thanks, Steve. This is a very exciting time for our Company. In the past two years, we’ve taken several major actions to strengthen our Company and better position us for future success.
We’ve changed our business model by affiliating trucking operations with partners who run independent businesses with average revenues in excess of 20 million. Our affiliates are strong operators who build excellent relationships with their customers and drivers. They also share our interest and profitably growing our business.
We dramatically reduced our cost infrastructure to by implementing close to 50 million of cost savings initiatives. Corporate headcount excluding Boasso has been reduced 35% since the beginning of 2008. Contracts for IT services, employee benefits, and fuel purchases have been renegotiated. We’re a much leaner company than we were two years ago.We restructured our debt removing any question about our financial viability while moving all major maturities out to mid-2013. As earnings improve so will our ability to strengthen our balance sheet by reducing our leverage. We continue to focus on safety. It makes good business sense. The regulatory agencies that govern our industry are pushing every carrier in that direction and is the right thing to do. Our insurance and claims expense for Q1 was 2.1% of revenue, well below the industry average of other public carriers. As I said in our earnings release, it’s great to be able to report year-over-year revenue growth. None of our competitors have the ability to bring additional capacity to the market to the extent that we do. Our pipeline of opportunities with both new and existing accounts continues to be strong. Read the rest of this transcript for free on seekingalpha.com
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