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-- Quality Generates Second Quarter Revenues of $239.3 Million --
-- Company Reports Net Loss of ($1.18) per Diluted Share ---- Net Loss Includes $55.7 Million Non-Cash Goodwill Impairment Charges ---- Q2 2013 Adjusted Net Income of $0.20 per Diluted Share ---- Adjusted EBITDA at Energy Logistics Up Nearly 100% Sequentially vs. Q1 2013 --
TAMPA, Fla., July 31, 2013 (GLOBE NEWSWIRE) -- Quality Distribution, Inc. (Nasdaq:QLTY) ("Quality" or the "Company"), a North American logistics and transportation provider with market leading businesses, today reported a net loss of $31.1 million, or ($1.18) per diluted share, for the second quarter ended June 30, 2013, compared to net income of $28.8 million, or $1.04 per diluted share, in the second quarter ended June 30, 2012. Pre-tax, non-cash goodwill impairment charges of $55.7 million in the Company's Energy Logistics business impacted current-period results, and prior-period results included a $22.8 million reversal of a deferred tax valuation allowance.
Under accounting guidelines, companies are required to conduct an annual goodwill impairment test for each business segment, which Quality performs during its second quarter. As a result of this review, management determined that a write down of its Energy Logistics goodwill and other intangible assets totaling $55.7 million was required. While the Energy Logistics operating results improved in the second quarter of 2013, the charge is appropriate because the Company's expectations of revenue and profitability at June 30, 2013 are lower than original estimates used when the three Energy Logistics businesses were acquired in 2012.
Adjusted net income for the second quarter of 2013 was $5.3 million, or $0.20 per diluted share, compared to adjusted net income of $6.5 million, or $0.24 per diluted share, for the same quarter in 2012. Both periods are calculated by excluding items not considered part of regular operating activities. Results for 2012 were adjusted by applying a normalized tax rate of 39.0%; beginning in 2013, the Company uses its effective tax rate when reporting adjusted net income for the quarter, which was 36.5% in the second quarter of 2013. For consistency purposes, the Company intends to present prior period adjusted results using normalized tax rates as originally reported.