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Quality Distribution, Inc. Announces Fourth Quarter And Year End 2010 Results

Stocks in this article: QLTY

The Quality Distribution, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=5285

This press release and the oral public statements made by a Quality representative during the webcast announced in this press release may contain certain forward-looking information that is subject to the safe harbor provisions created by the Private Securities Litigation Reform Act of 1995 and is subject to certain risks and uncertainties that could cause actual results to differ materially from those expected or projected in the forward-looking statements. Without limitation, additional risks and uncertainties regarding forward-looking statements include the effect of local and national economic, credit and capital market conditions on the economy in general, and on the particular industries in which we operate, including excess capacity in the industry, the availability of qualified drivers, changes in fuel and insurance prices, interest rate fluctuations, and downturns in customers' business cycles and shipping requirements; our substantial leverage, our ability to make required payments and restrictions contained in our debt arrangements; competition and rate fluctuations; our reliance on independent affiliates and independent owner-operators; the loss of or material reduction in the services to one or more of our major customers; our liability as a self-insurer to the extent of our deductibles as well as changing conditions and pricing in the insurance marketplace; changes in health insurance benefit regulations; changes in the future, or our inability to comply with, governmental regulations and legislative changes affecting the transportation industry; increased unionization, which could increase our operating costs or constrain operating flexibility; our ability to comply with current and future environmental regulations and the increasing costs relating to environmental compliance; potential disruption at U.S. ports of entry; diesel fuel prices and our ability to recover costs through fuel surcharges; our ability to attract and retain qualified drivers; terrorist attacks and the cost of complying with existing and future anti-terrorism security measures; our dependence on senior management; the potential loss of our ability to use net operating losses to offset future income; potential future impairment charges; the interests of our largest shareholder, which may conflict with your interests; our ability to successfully identify acquisition opportunities, consummate such acquisitions and integrate acquired businesses; adverse weather conditions; the impact of our restructuring on our operations and costs; our liability for our proportionate share of unfunded vested benefit liabilities in the event of our withdrawal from any of our multi-employer pension plans; and changes in planned or actual capital expenditures due to operating needs, changes in regulation, covenants in our debt arrangements and other expenses, including interest expenses. Readers are urged to carefully review and consider the various disclosures, including but not limited to risk factors contained in Quality Distribution, Inc.'s Annual Report on Form 10-K for the year ended December 31, 2009 and its Quarterly Reports on Form 10-Q, as well as other reports filed with the Securities and Exchange Commission. Quality disclaims any obligations to update any forward-looking statement as a result of developments occurring after the date of this release.

QUALITY DISTRIBUTION, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In 000's) Except Per Share Data
Unaudited
     
  Three months ended  December 31, Year ended  December 31,  
   2010   2009   2010   2009   
           
OPERATING REVENUES:          
Transportation $ 117,380 $ 111,104 $ 498,446 $ 454,658  
Service revenue  27,917  24,713  107,474  104,954  
Fuel surcharge  20,468  15,469  80,678  53,997  
Total operating revenues  165,765  151,286  686,598  613,609  
OPERATING EXPENSES:          
Purchased transportation  114,826  100,270  476,307  373,539  
Compensation  14,584  15,164  57,563  76,955  
Fuel, supplies and maintenance 12,845  12,857  49,852  62,448  
Depreciation and amortization  3,765  4,524  16,004  20,218  
Selling and administrative  4,219  4,958  19,339  24,572  
Insurance costs  3,859  3,043  15,546  14,119  
Taxes and licenses  530  482  2,218  3,578  
Communications and utilities  811  1,125  4,119  7,910  
Loss on disposal of property and equipment  145  436  1,136  450  
Gain on sale of tank wash assets  --  (7,130)  --  (7,130)  
Impairment charges  --  --  --  148,630  
Restructuring costs  3,190  1,391  7,779  3,496  
Total operating expenses  158,774  137,120  649,863  728,785  
           
Operating income (loss)  6,991  14,166  36,735  (115,176)  
           
Interest expense  10,129  8,355  36,170  28,335  
Interest income  (147)  (77)  (622)  (288)  
Gain on extinguishment of debt  --  (1,195)  --  (1,870)  
Write-off of debt issuance costs  7,391  20  7,391  20  
Other expense  567  2,196  791  1,912  
(Loss) income before income taxes  (10,949)  4,867  (6,995)  (143,285)  
 (Benefit from) provision for income taxes  (268)  298  411  37,249  
Net (loss) income $ (10,681) $ 4,569 $ (7,406) $ (180,534)  
           
PER SHARE DATA:          
Net (loss) income per common share          
Basic $ (0.51) $ 0.23 $ (0.36) $ (9.28)  
Diluted $ (0.51) $ 0.21 $ (0.36) $ (9.28)  
           
Weighted average number of shares          
Basic  20,918  19,679  20,382  19,449  
Diluted  20,918  21,322  20,382  19,449  

  

QUALITY DISTRIBUTION, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In 000's)
Unaudited
    December 31, 2010 December 31, 2009
     
ASSETS    
Current assets:    
Cash and cash equivalents $ 1,753 $ 5,633
Accounts receivable, net  80,895  69,625
Prepaid expenses  6,911  8,584
Deferred tax asset, net  3,848  5,506
Other  4,891  4,420
Total current assets  98,298  93,768
Property and equipment, net 113,419  127,329
Goodwill  27,023  27,023
Intangibles, net  16,924  18,467
Other assets  15,671  13,029
Total assets $ 271,335 $ 279,616
 
LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND SHAREHOLDERS' DEFICIT
Current liabilities:    
Current maturities of indebtedness $ 3,991 $ 19,866
Current maturities of capital lease obligations  4,572  5,322
Accounts payable  7,200  6,182
Independent affiliates and independent owner-operators payable  11,059  9,734
Accrued expenses  24,363  21,378
Environmental liabilities  3,687  3,408
Accrued loss and damage claims  8,471  8,862
Total current liabilities  63,343  74,752
     
Long-term indebtedness, less current maturities  300,491  284,253
Capital lease obligations, less current maturities  8,278  11,843
Environmental liabilities  7,255  8,241
Accrued loss and damage claims  10,454  10,534
Other non-current liabilities  26,060  28,896
Total liabilities  415,881  418,519
     
Redeemable noncontrolling interest  1,833  1,833
     
SHAREHOLDERS' DEFICIT    
Common stock 371,288  364,046
Treasury stock  (1,593)  (1,580)
Accumulated deficit  (301,974)  (294,568)
Stock recapitalization  (189,589)  (189,589)
Accumulated other comprehensive loss  (26,194)  (25,587)
Stock purchase warrants  1,683 6,696
Stock subscriptions receivable    --  (154)
Total shareholders' deficit  (146,379)  (140,736)
Total liabilities, redeemable noncontrolling interest and shareholders' deficit $ 271,335 $ 279,616

  

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