Quality says 4Q results likely to meet expectations

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Quality Distribution

Quality Distribution Inc. announced preliminary results for the fourth quarter and year ended Dec. 31:
• For the three-month period ended Dec. 31, 2010, Quality expects its total revenue to be about $165.0 million, operating income to be within the range of $6.7 million to $7.0 million and consolidated adjusted EBITDA to be within the range of $14.4 million to $14.7 million;
• For the three-month period, Quality expects a net loss to be within the range of ($0.53) and ($0.51) per diluted share;
• For the three-month period, Quality expects its adjusted net income to be within the range of $0.05 and $0.06 per diluted share;
• The adjusted net income per diluted share excludes about $9.1 million of charges associated with the company’s debt refinancing, $3.2 million of restructuring costs and $0.7 million of costs associated with an unconsummated offering of company securities during the fourth quarter. The debt refinancing charges include the noncash write-off of deferred financing costs of about $7.4 million, and about $1.7 million of excess cash interest expense resulting from having additional debt outstanding during the required 30-day notification period prior to the debt redemption. The restructuring charges primarily include about $2.2 million of costs related to the consolidation of corporate office space;
• The above consolidated adjusted EBITDA range for the three-month period excludes the about $3.2 million of restructuring charges, $0.7 million of costs associated with an unconsummated offering of company securities, and $0.6 million of employee noncash compensation; and
• For the year, Quality expects total revenue to be about $686.0 million, operating income to be within the range of $36.4 million to $36.7 million, consolidated adjusted EBITDA to be within the range of $62.4 million to $62.7 million, and adjusted net income to be within the range of $0.29 and $0.30 per diluted share.

“Our anticipated fourth-quarter results met our expectations, reflecting the typical seasonal decline versus the third quarter, and showed continued improvement in year-over-year earnings and cash flow performance,” said Gary Enzor, chief executive officer of the Tampa, Fla.-based company. “With Quality’s business 95 percent affiliated, our asset-light business model continues to demonstrate the ability to generate strong free cash flow, and we are very excited about our positive momentum and solid prospects for growth in 2011.”