Chemical bulk tank truck operator Quality Distribution Inc. on Monday, Nov. 8, reported net income of $0.4 million for the third quarter ended Sept. 30 compared to $1.4 million in the third quarter of 2009. Adjusted net income for the third quarter of 2010 was $2.2 million compared to adjusted net income of $1.1 million for the same quarter in 2009.
Adjusted net income for the third quarter of 2010 was derived by excluding $2.4 million of pretax restructuring charges and applying a normalized tax rate of 39 percent. The restructuring charges primarily represent about $2.0 million related to Quality’s estimated costs from the withdrawal from three multiemployer pension plans. Adjusted net income for the third quarter of 2009 was derived by excluding a $0.3 million pretax restructuring charge and applying a normalized tax rate of 39 percent.
“Our entire organization is committed to this asset-light business model, with a primary focus on generating improvements in earnings, cash flow and asset utilization,” said Gary Enzor, chief executive officer of the Tampa, Fla.-based company. “We maintain a positive outlook for the business and look forward to a solid finish in 2010.”
Total revenue was $181.9 million, an increase of 11.8 percent from $162.8 million. Excluding fuel surcharges, revenue increased 9.3 percent primarily due to higher volumes as a result of a 7.7 percent increase in loads and a 6.2 percent increase in miles driven as well as a 33.6 percent increase in revenues from Boasso’s container services business.
“Our strong performance in the third quarter of 2010 resulted in higher EBITDA and free cash flow, which helped reduce our leverage and increase our ABL capacity by $17.5 million on a sequential basis versus the second quarter,” said Joe Troy, chief financial officer. “We also substantially improved our capital structure via the 2018 notes offering in a way that increases flexibility, further enhances liquidity and extends the majority of our debt maturities. All of these benefits serve to support our growth initiatives going forward.”