This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

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 Loss

Adjusted 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.

1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,034.93 +208.63 1.17%
S&P 500 2,100.40 +19.22 0.92%
NASDAQ 4,994.6020 +62.7870 1.27%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs