Quality Distribution, Inc. News
Quality Distribution, Inc. Announces First Quarter Results
The Company incurred a net loss for first quarter of 2008 of
The Company announced in April that it had eliminated approximately 60 positions, most of which were at its corporate office in
The Company will host a conference call for investors to discuss these results on
Headquartered in
This release contains 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, these risks and uncertainties include the Company's substantial leverage; economic factors; downturns in customers' business cycles or in the national economy; the cyclical nature of the transportation industry; claims exposure and insurance costs; adverse weather conditions; dependence on affiliates and owner-operators; changes in government regulation including transportation, environmental and anti-terrorism laws; the Company's environmental remediation costs; fluctuations in fuel pricing or availability; increases in interest rates; potential disruption at U.S. ports of entry; changes in senior management; the Company's ability to achieve projected operating objectives and debt reduction in 2008; its ability to successfully integrate acquired businesses or integrate affiliate businesses converted to Company-controlled operations; the Company's ability to achieve projected reductions in payroll related costs; and the Company's ability to attract and retain qualified drivers. Readers are urged to carefully review and consider the various disclosures, including but not limited to risk factors, contained in the Company's Annual Report on Form 10-K for the year ended
QLTYG Contact: Timothy B. Page Senior Vice President and Chief Financial Officer 800-282-2031 ext. 7376 QUALITY DISTRIBUTION, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In 000's) Except Per Share Data Unaudited Three Months Ended March 31, 2008 2007 OPERATING REVENUES: Transportation $149,259 $142,073 Other service revenues 26,745 16,968 Fuel surcharge 32,497 19,054 Total operating revenues 208,501 178,095 OPERATING EXPENSES: Purchased transportation 119,972 115,947 Compensation 28,604 19,669 Fuel, supplies and maintenance 30,133 16,124 Depreciation and amortization 4,896 4,175 Selling and administrative 9,248 6,466 Insurance claims 5,562 6,638 Taxes and licenses 1,217 781 Communications and utilities 3,616 2,632 (Gain) loss on disposal of property and equipment (544) 209 Total operating expenses 202,704 172,641 Operating income 5,797 5,454 Interest expense 9,151 7,677 Interest income (117) (199) Other expense 10 37 Loss before taxes (3,247) (2,061) Benefit from income taxes (1,328) (1,888) Net loss $(1,919) $(173) PER SHARE DATA: Net loss per common share Basic $(0.10) $(0.01) Diluted $(0.10) $(0.01) Weighted average number of shares Basic 19,064 19,348 Diluted 19,064 19,348 QUALITY DISTRIBUTION, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In 000's) Unaudited March 31, December 31, 2008 2007 ASSETS Current assets: Cash and cash equivalents $2,695 $9,711 Accounts receivable, net 105,952 99,081 Prepaid expenses 11,502 8,150 Deferred tax asset, net 20,483 20,483 Other 6,532 6,258 Total current assets 147,164 143,683 Property and equipment, net 127,231 121,992 Goodwill 172,790 173,575 Intangibles, net 23,932 24,167 Non-current deferred tax asset, net 17,385 16,203 Other assets 13,356 14,356 Total assets $501,858 $493,976 LIABILITIES, MINORITY INTEREST AND SHAREHOLDERS' EQUITY Current liabilities: Current maturities of indebtedness $1,895 $413 Current maturities of capital lease obligations 1,564 1,451 Accounts payable 16,604 17,428 Affiliates and independent owner-operators payable 17,568 12,597 Accrued expenses 30,167 25,957 Environmental liabilities 4,093 4,751 Accrued loss and damage claims 11,136 13,438 Income taxes payable - 555 Total current liabilities 83,027 76,590 Long-term indebtedness, less current maturities 348,156 343,575 Capital lease obligations, less current maturities 3,747 3,832 Environmental liabilities 6,418 6,418 Accrued loss and damage claims 16,657 18,474 Other non-current liabilities 16,116 15,954 Total liabilities 474,121 464,843 Minority interest in subsidiary 1,833 1,833 SHAREHOLDERS' EQUITY Common stock 362,039 361,617 Treasury stock (1,564) (1,564) Accumulated deficit (128,065) (126,146) Stock recapitalization (189,589) (189,589) Accumulated other comprehensive loss (16,647) (16,748) Stock subscriptions receivable (270) (270) Total shareholders' equity 25,904 27,300 Total liabilities, minority interest and shareholders' equity $501,858 $493,976
RECONCILIATION OF NET LOSS TO TAX EFFECTED NET LOSS AND RECONCILIATION OF NET
LOSS PER SHARE TO TAX EFFECTED NET LOSS PER SHARE For the Three Months Ended March 31, 2008 and 2007 (In 000's) Unaudited
Tax Effected Net Loss and Tax Effected Net Loss Per Share (as defined) is presented herein because they are important metrics used by management to evaluate and understand the performance of the ongoing operations of the Company's business. Management uses a 39% tax rate for calculating the benefit from income taxes to normalize the Company's tax rate to that of comparable transportation companies, and to compare Company periods with different effective tax rates. Tax Effected Net Loss and Tax Effected Net Loss Per Share are not a measure of financial performance or liquidity under United States Generally Accepted Accounting Principles ("GAAP"). Tax Effected Net Loss and Tax Effected Net Loss Per Share should not be considered in isolation or as a substitute for the consolidated statements of operations and cash flow data prepared in accordance with GAAP as an indication of the Company's operating performance or liquidity.
Three months ended March 31, Net Loss Reconciliation: 2008 2007 Net loss $(1,919) $(173) Net loss per common share: Basic $(0.10) $(0.01) Diluted $(0.10) $(0.01) Adjustments to net loss: Benefit from income taxes (1,328) (1,888) Loss before income taxes (3,247) (2,061) Benefit from income taxes at 39% (1,266) (804) Tax effected net loss $(1,981) $(1,257) Tax effected net loss per common share: Basic $(0.10) $(0.07) Diluted $(0.10) $(0.07) Weighted average number of shares: Basic 19,064 19,348 Diluted 19,064 19,348
SOURCE Quality Distribution, Inc.
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