TAMPA, Fla., Feb. 25, 2009 (GLOBE NEWSWIRE) -- Quality Distribution, Inc. (Nasdaq:QLTY) (the "Company" or "QDI") today reported the results for its fourth quarter and year ended December 31, 2008. Total revenue for the fourth quarter of 2008 was $168.1 million, a decrease of 9.9% from $186.6 million for the same quarter in 2007. Total revenue for 2008 was $815.3 million, an increase of 8.5% from $751.6 million for 2007. The addition of Boasso, acquired in December 2007, contributed $22.8 million of revenue in the fourth quarter 2008 and $87.1 million for fiscal 2008 compared to $2.5 million in the fourth quarter and fiscal year 2007.

Net income for the fourth quarter of 2008 was $13.0 million, or $0.66 per diluted share, compared to a net loss of $11.2 million, or $(0.58) per diluted share, for the same quarter in 2007. As previously reported, the fourth quarter of 2008 results include a pre-tax restructuring charge of $1.3 million, primarily related to the closure of tank wash and trucking terminals, a net pre-tax gain of $16.2 million on early debt extinguishment and related write-off of debt issuance costs, and a pretax gain of $3.4 million for the early settlement of a multiemployer pension obligation. The fourth quarter of 2007 results contained net aggregate pretax charges of $3.6 million related to adverse insurance developments, write-off of debt issuance costs and acquisition costs. Applying a normalized tax rate of 39% and excluding adjustment items, the Company would have had an adjusted loss per diluted share of $(0.01) for the fourth quarter of 2008, compared to a loss of $(0.22) for the same quarter in 2007, and $0.02 adjusted earnings per diluted share for fiscal 2008 compared to an adjusted loss per diluted share of $(0.04) for fiscal 2007.

Net income for 2008 was $12.1 million, or $0.62 per diluted share, compared to a net loss of $7.6 million, or $(0.39) per diluted share, for 2007.

Gary Enzor, President and Chief Executive Officer, commented, "Trucking volume declined roughly 20% year-over-year, yet we generated $9 million of operating cash flow in the fourth quarter and produced near break-even results in one of the most challenging quarters in our company's history. The addition of Boasso and the positive impact of our vital few cost initiatives enabled us to post positive full year adjusted pre-tax earnings despite the current economic turbulence. We enter 2009 with a stronger company than we had in 2008, and we will continue to aggressively focus on cost reduction, debt reduction and cash conservation."

Steve Attwood, Chief Financial Officer, commented further, "Another thing that was particularly significant in the fourth quarter is that we reduced our overall debt by $42 million, which included a $24.2 million reduction in our 9% Subordinated Notes and an $18 million reduction in the outstanding balance on our revolving credit facility. At year-end 2008, we had over $40 million of borrowing availability under our revolving credit facility."

The Company will host a conference call for investors to discuss these results on February 26, 2009 at 10:00 a.m. Eastern Time. The toll free dial-in number is 877-440-5788; the toll number is 719-325-4920; the passcode is 2529452. A replay of the call will be available until March 28, 2009, by dialing 888-203-1112; passcode 2529452. A webcast of the conference call can be accessed at http://investor.shareholder.com/qualitydistribution/events.cfm. Copies of this earnings release and other financial information about the Company may be accessed in the Investor Relations section of the Company's website at www.qualitydistribution.com. The Company regularly posts or otherwise makes available information in the Investor Relations section that may be important to investors.

Headquartered in Tampa, Florida, QDI, through its subsidiaries, Quality Carriers, Inc. and Boasso America Corporation, and through its affiliates and owner-operators, provides bulk transportation and related services. QDI also provides tank cleaning services to the bulk transportation industry through its QualaWash(r) facilities. QDI is an American Chemistry Council Responsible Care(r) Partner and is a core carrier for many of the Fortune 500 companies that are engaged in chemical production and processing.

The Quality Distribution, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=5285

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. This forward-looking information includes estimated financial information for the fourth quarter and full year 2008. Without limitation, additional risks and uncertainties regarding forward-looking statements include the Company's substantial leverage and restrictions contained in our debt instruments; economic factors; turmoil in the credit and capital markets; 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 2009; 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; increased unionization, which could increase our operating costs or constrain operating flexibility, the potential loss of our ability to use net operating losses to offset future income due to a change of control 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 December 31, 2007 and its Quarterly Reports on Form 10-Q, as well as other reports filed with the Securities and Exchange Commission. The Company disclaims any obligations to update any forward-looking statement as a result of developments occurring after the date of this release.

QLTYE

                QUALITY DISTRIBUTION, INC. AND SUBSIDIARIES
                   CONSOLIDATED STATEMENTS OF OPERATIONS
                     (In 000's) Except Per Share Data
                                Unaudited


                               Three months ended       Year ended
                                   December 31,        December 31,
                               ------------------  ------------------

                                 2008      2007      2008      2007
                               --------  --------  --------  --------

 OPERATING REVENUES:
  Transportation               $120,016  $138,020  $565,814  $580,676
  Other service revenue          25,123    21,374   104,039    76,221
  Fuel surcharge                 22,947    27,178   145,437    94,661
                               --------------------------------------
    Total operating revenues    168,086   186,572   815,290   751,558
                               --------------------------------------
 OPERATING EXPENSES:
  Purchased transportation       90,445   113,504   466,823   471,531
  Compensation                   25,592    23,262   109,110    85,820
  Fuel, supplies and maintenance 21,152    24,771   114,351    81,316
  Depreciation and amortization   5,567     4,584    21,002    17,544
  Selling and administrative      9,321     9,977    35,836    31,291
  Insurance claims                3,370     9,562    14,999    23,883
  Taxes and licenses              1,200     1,251     5,242     3,980
  Communications and utilities    2,607     3,300    12,716    11,381
  (Gain) loss on disposal of 
   property and equipment          (260)      541    (3,092)      959
  Restructuring costs             1,250        --     5,325        --
                               --------------------------------------
    Total operating expenses    160,244   190,752   782,312   727,705
                               --------------------------------------
 
     Operating income             7,842    (4,180)   32,978    23,853

 Interest expense                 9,300     7,939    35,546    31,342
 Interest income                    (93)     (245)     (426)     (818)
 Gain on early extinguishment 
  of debt                       (16,532)       --   (16,532)       --
 Write-off of debt issuance 
  costs                             283     2,031       283     2,031
 Other (income) expense          (3,116)    1,578    (2,945)      940
                               --------------------------------------
   Income (loss) before taxes    18,000   (15,483)   17,052    (9,642)
  Provision for (benefit from) 
   income taxes                   5,038    (4,308)    4,940    (2,079)
                               --------------------------------------
    Net income (loss)          $ 12,962  $(11,175) $ 12,112  $ (7,563)
                               ======================================

 PER SHARE DATA:
  Net income (loss) per common 
   share
     Basic                     $   0.67  $  (0.58) $   0.63  $  (0.39)
                               ======================================
     Diluted                   $   0.66  $  (0.58) $   0.62  $  (0.39)
                               ======================================
 
  Weighted average number of 
   shares
     Basic                       19,387    19,335    19,379    19,336
     Diluted                     19,523    19,335    19,539    19,336



                  QUALITY DISTRIBUTION, INC. AND SUBSIDIARIES
                          CONSOLIDATED BALANCE SHEETS
                                   (In 000's)
                                   Unaudited

                                       December 31,     December 31,
                                           2008             2007
                                       -----------      -----------

  ASSETS
  Current assets:
    Cash and cash equivalents          $    6,787       $    9,711
    Accounts receivable, net               81,612           99,081
    Prepaid expenses                       12,922            8,150
    Deferred tax assets, net               14,707           20,483
    Other                                   7,950            6,258
                                       ----------       ----------
      Total current assets                123,978          143,683
    Property and equipment, net           148,692          121,992
    Goodwill                              173,519          173,575
    Intangibles, net                       22,698           24,167
    Non-current deferred tax 
     assets, net                           22,636           16,203
    Other assets                           10,580           14,356
                                       ----------       ----------
       Total assets                    $  502,103       $  493,976
                                       ==========       ==========


  LIABILITIES, MINORITY INTEREST 
   AND SHAREHOLDERS' EQUITY
  Current liabilities:
    Current maturities of 
     indebtedness                      $    8,361       $      413
    Current maturities of capital 
     lease obligations                      7,994            1,451
    Accounts payable                       16,126           17,428
    Affiliates and independent 
     owner-operators payable                7,649           12,597
    Accrued expenses                       25,357           25,957
    Environmental liabilities               4,819            4,751
    Accrued loss and damage claims          8,705           13,438
    Income taxes payable                       --              555
                                       ----------       ----------
        Total current liabilities          79,011           76,590
  Long-term indebtedness, less 
   current maturities                     330,409          343,575
  Capital lease obligations, less 
   current maturities                      15,822            3,832
  Environmental liabilities                 6,035            6,418
  Accrued loss and damage claims           12,815           18,474
  Other non-current liabilities            25,158           15,954
                                       ----------       ----------
        Total liabilities                 469,250          464,843
  Minority interest in subsidiary           1,833            1,833
  SHAREHOLDERS' EQUITY
    Common stock                          362,945          361,617
    Treasury stock                         (1,580)          (1,564)
    Accumulated deficit                  (114,034)        (126,146)
    Stock recapitalization               (189,589)        (189,589)
    Accumulated other comprehensive 
     loss                                 (26,488)         (16,748)
    Stock subscriptions receivable           (234)            (270)
                                       ----------       ----------
      Total shareholders' equity           31,020           27,300
                                       ----------       ----------
      Total liabilities, minority 
       interest and shareholders' 
       equity                          $  502,103       $  493,976
                                       ==========       ==========


  RECONCILIATION OF NET INCOME (LOSS) TO TAX EFFECTED AND ADJUSTED NET
  INCOME (LOSS) AND RECONCILIATION OF NET INCOME (LOSS) PER SHARE TO
        TAX EFFECTED AND ADJUSTED NET INCOME (LOSS) PER SHARE
    For the Three Months and Year Ended December 31, 2008 and 2007
                               (In 000's)
                               Unaudited

Tax Effected and Adjusted Net Income (Loss) and Tax Effected and Adjusted Net Income (Loss) Per Share (as defined) are 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 provision for (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. In addition, we adjust Net Income (Loss) for significant items that are not regularly recurring. Tax Effected and Adjusted Net Income (Loss) and Tax Effected and Adjusted Net Income (Loss) Per Share are not measures of financial performance or liquidity under United States Generally Accepted Accounting Principles ("GAAP"). Tax Effected and Adjusted Net Income (Loss) and Tax Effected and Adjusted Net Income (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.

 Net Income (Loss)             Three months ended     Year ended
  Reconciliation:                 December 31,        December 31,
                              -------------------  ------------------
                                2008      2007      2008      2007
                              --------  ---------  --------  --------

 Net income (loss)            $ 12,962  $ (11,175) $ 12,112  $ (7,563)

   Net income (loss) 
    per common share:
           Basic              $   0.67  $   (0.58) $   0.63  $  (0.39)
                              =======================================
           Diluted            $   0.66  $   (0.58) $   0.62  $  (0.39)
                              =======================================

 Adjustments to net 
  income (loss):
  Provision for 
   (benefit from) 
   income taxes                  5,038     (4,308)    4,940    (2,079)
  Gain on early debt 
   extinguishment              (16,532)        --   (16,532)       --
  Write off of debt 
   issuance costs                  283      2,031       283     2,031
  Gain on pension 
   settlement                   (3,410)        --    (3,410)       --
  Restructuring costs            1,250         --     5,325        --
  Gains on property sales           --         --    (2,128)       --
  Adverse insurance 
   claims development               --      4,800        --     4,800
  Costs related to 
   unconsummated acquisition        --      1,556        --     1,556
                              ---------------------------------------
 Adjusted income (loss) 
  before income taxes             (409)    (7,096)      590    (1,255)

  Provision for (benefit 
   from) income taxes at 39%      (160)    (2,767)      230      (489)
                              ---------------------------------------
  Tax effected and 
   adjusted net income (loss) $   (249) $  (4,329) $    360  $   (766)
                              =======================================

  Tax effected and adjusted 
   net income (loss) per
   common share:

   Basic                      $  (0.01) $   (0.22) $   0.02  $  (0.04)
                              =======================================
   Diluted                    $  (0.01) $   (0.22) $   0.02  $  (0.04)
                              =======================================
   Weighted average number 
    of shares:
    Basic                       19,387     19,335    19,379    19,336
    Diluted                     19,523     19,335    19,539    19,336

CONTACT:  Quality Distribution, Inc.
          Stephen R. Attwood, Senior Vice President 
           and Chief Financial Officer
          800-282-2031 ext. 7129