Quality Distribution says 4Q revenue likely down nearly 10%

user-gravatar

Quality Distribution Inc. on Tuesday, Feb. 10, announced preliminary results for the fourth quarter and year ended Dec. 31. Based on currently available unaudited information, QDI estimates:

  • Total revenue for the fourth quarter of $168.1 million, a decrease of 9.9 percent from $186.6 million for the same quarter in 2007; and total revenue for 2008 of $815.3 million, an increase of 8.5 percent from $751.6 million for 2007;
  • Net income for the fourth quarter of $13.0 million, compared to a net loss of $11.2 million for the same quarter in 2007; and net income for 2008 of $12.1 million compared to a net loss of $7.6 million for 2007. Fourth-quarter 2008 earnings included the following items that are not part of regular operating activities: Net gain on early extinguishment of debt ($16.2 million pretax), gain on pension settlement ($3.4 million pretax) and charge for restructuring costs ($1.3 million pretax);
  • Applying a normalized tax rate of 39 percent and excluding adjustment items, the company expects to report an adjusted loss per diluted share of $0.01 for the fourth quarter compared to $0.22 for the same quarter in 2007, and $0.02 adjusted earnings per diluted share for 2008 compared to an adjusted loss per diluted share of $0.04 for 2007.
  • “Despite the continued softness in demand, the cost-reduction actions we took last year enabled us to generate $9.0 million of operating cash flow and near break-even results in one of the most challenging quarters in our company’s history,” said Gary Enzor, president and chief executive officer of Tampa, Fla.-based QDI. “Although we have yet to see an improvement in volumes, we are aggressively pursuing new business opportunities and additional reductions in our cost infrastructure.”

    Steve Attwood, chief financial officer, said operations continue to generate positive cash flow even under tough market conditions. “During the fourth quarter, we reduced our total debt by $42.0 million, which included a $24.2 million reduction in our 9 percent subordinated notes and an $18.0 million reduction in the outstanding balance on our revolving credit facility,” Attwood said.