Quality Distribution Sees a Return to Profits
The bulk chemical transportation provider Quality Distribution Inc moved from being in the red to the black in the fourth quarter of last year and for all of 2014.


The bulk chemical transportation provider Quality Distribution Inc. moved from being in the red to the black during the fourth quarter of last year and for all of 2014.
The Florida-based parent to Quality Carriers and Boasso America reported on Wednesday net income of $2.6 million, or 9 cents per diluted share, compared to a net loss of $22.8 million for the final quarter of 2013, or a loss of 85 cents per diluted share.
Revenue in the most recent quarter was $243.2 million, 7.9% higher compared to a year earlier. Excluding fuel surcharges, revenue increased to $212.1 million, up 8.2%. This revenue improvement was due to continued growth in chemical logistics, which was driven by increased volumes and positive contribution from new terminals established in 2014, along with strong growth in its intermodal business, according to the company.
For all of 2014 net income increased to $20.6 million, or 74 cents per diluted share, compared to a net loss of $42 million for 2013, or a loss of $1.58 per diluted share.
Revenue was $991.8 million, 6.7% higher than compared to $929.8 million a year earlier. Excluding fuel surcharges, revenue increased to $854.1 million, up 6.1%, driven primarily by the chemical logistics and intermodal operating segments, according to the company.
"Our chemical and intermodal businesses delivered continued growth during the fourth quarter, which led to solid profitability at the high end of our earnings expectation range," said Gary Enzor, chairman and CEO. "Chemical's expansion efforts delivered strong results as well as increased international demand…[and] drove enhanced top and bottom line profitability. Our energy logistics revenue was down slightly versus last year, but adjusted operating income was up, primarily reflecting efforts to transition company-operated terminals to independent affiliates alongside our focus on reducing costs through asset optimization."
During the final quarter of 2014 the company’s chemical logistics revenue was $163.7 million, up 9% from a year earlier. Excluding fuel surcharges, revenue increased10.4%, due primarily to the opening of several new terminal locations in 2014, which increased volume, according to the company. Operating income was $19.4 million, up 15%.
The company’s intermodal operation reported revenue of $37.9 million, up 15.4% in the fourth quarter. Excluding fuel surcharges, revenue increased 16.2%. Strong domestic and international customer activity drove higher overall shipments, and stronger import volumes resulted in an increase in depot services revenue, according to the company. Operating income was $4.4 million, up 16.6% due to incremental profits on higher trucking revenue and strong margins from increases in depot services revenue.
Revenue in the fourth quarter for the company’s energy logistics business was $41.4 million, down slightly compared to $42.2 million a year earlier. Excluding fuel surcharges, revenue was lower by 3.6%, primarily due to reduced volumes in the Woodford shale region, partially offset by higher volumes in the Marcellus, Utica and Bakken shale regions, according to the company. Operating loss was $2.2 million compared to an operating loss of $39.2 million a year earlier.
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