Restructuring and refinancing at Quality Distribution reduced a $180.5 million net loss in 2009 to $7.4 million in 2010, while revenue climbed to $686.6 million.
A 5.4 percent increase in loads and 5.6 percent increase in miles driven helped lift the largest U.S. tank truck operator's annual revenue 11.9 percent from 2009.
For the fourth quarter, the trucking company reported a net loss of $10.7 million on $165.8 million in revenue, including $20.5 million in fuel surcharges.
Excluding $13.7 million in debt refinancing charges and other restructuring costs, the company said it reported $6.5 million in adjusted net income for 2010.
Quality Distribution news from JOC:
Quality Turns Profit in 4Q 2009
Quality's adjusted fourth quarter net income was $1.3 million, the carrier said March 9, compared to adjusted net income of $200,000 in the 2009 quarter.
"We have made great strides toward strengthening our balance sheet over the last six months," said Joe Troy, chief financial officer of the Tampa, Fla., company.
In February, Quality raised more than $17.5 million by selling 2 million shares of common stock. It issued $225 million in senior secured notes in November.
Stronger chemical demand will benefit the carrier, which also has an opportunity in the U.S. shale gas hydraulic fracturing market, said BB&T Capital Markets.
Quality's capacity could be used to haul clean water to support fracturing and backhaul wastewater, BB&T Capital Markets said in a note to investors.
The investment research group pointed out the American Chemistry Council expects chemical demand to increase 3 percent in 2011 and 3.4 percent in 2012.
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