Quality Distribution, Inc. Announces Preliminary Fourth Quarter 2010 Results
TAMPA, Fla., Feb. 1, 2011 (GLOBE NEWSWIRE) -- Quality Distribution, Inc. (Nasdaq:QLTY) ("Quality") today announced preliminary results for the fourth quarter and year ended December 31, 2010.
Quality estimates that:
- For the three-month period ended December 31, 2010, Quality expects its total revenue to be approximately $165.0 million, operating income to be within the range of $6.7 million to $7.0 million and Consolidated Adjusted EBITDA to be within the range of $14.4 million to $14.7 million;
- For the three-month period ended December 31, 2010, Quality expects a net loss to be within the range of ($0.53) and ($0.51) per diluted share;
- For the three-month period ended December 31, 2010, Quality expects its adjusted net income to be within the range of $0.05 and $0.06 per diluted share;
- The adjusted net income per diluted share excludes approximately $9.1 million of charges associated with the Company's debt refinancing, $3.2 million of restructuring costs and $0.7 million of costs associated with an unconsummated offering of Company securities during the fourth quarter. The debt refinancing charges include the non-cash write-off of deferred financing costs of approximately $7.4 million, and approximately $1.7 million of excess cash interest expense resulting from having additional debt outstanding during the required 30-day notification period prior to the debt redemption. The restructuring charges primarily include approximately $2.2 million of costs related to the consolidation of corporate office space;
- The above Consolidated Adjusted EBITDA range for the three-month period ended December 31, 2010 excludes the approximately $3.2 million of restructuring charges, $0.7 million of costs associated with an unconsummated offering of Company securities, and $0.6 million of employee non-cash compensation;
- For the year ended December 31, 2010, Quality expects total revenue to be approximately $686.0 million, operating income to be within the range of $36.4 million to $36.7 million, Consolidated Adjusted EBITDA to be within the range of $62.4 million to $62.7 million, and adjusted net income to be within the range of $0.29 and $0.30 per diluted share;
- Cash and total debt at December 31, 2010 were approximately $1.8 million and $317.3 million, respectively;
- Availability under Quality's asset-based revolving credit facility was $79.6 million at December 31, 2010, and the outstanding borrowings under the ABL Facility were $38.5 million; and
- For the three-month period ended December 31, 2010, capital expenditures were approximately $3.0 million and net proceeds from sales of property and equipment were approximately $4.6 million.
"Our anticipated fourth quarter results met our expectations, reflecting the typical seasonal decline versus the third quarter, and showed continued improvement in year-over-year earnings and cash flow performance," stated Gary Enzor, Chief Executive Officer. "With Quality's business 95% affiliated, our asset-light business model continues to demonstrate the ability to generate strong free cash flow, and we are very excited about our positive momentum and solid prospects for growth in 2011." Reconciliation of Estimated Adjusted Net Income and Estimated Adjusted Net Income per Share to Estimated Net LossAdjusted Net Income and Adjusted Net Income per Share are not measures of financial performance or liquidity under United States Generally Accepted Accounting Principles ("GAAP"). Adjusted Net Income and Adjusted Net Income per Share are presented herein because they are important metrics used by management to evaluate and understand the performance of the ongoing operations of Quality's business. For Adjusted Net Income, management uses a 39% tax rate for calculating the provision for income taxes to normalize Quality's tax rate to that of competitors, and to compare Quality's reporting periods with different effective tax rates. In addition, in arriving at Adjusted Net Income and Adjusted Net Income per Share, we adjust for significant items that are not part of regular operating activities. For the reconciliation below, the adjustments include charges related to a restructure plan which began in the second quarter of 2008 and concluded in 2010, write-off of debt issuance costs, write-off of unconsummated stock offering costs and excess interest from our recent debt refinancing.
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