-- Trojan Provides Transportation Services to the Unconventional Oil and Gas Industry in Texas --
-- Acquisition Expands Quality's Presence in the Eagle Ford Shale --
TAMPA, Fla., April 2, 2012 (GLOBE NEWSWIRE) -- Quality Distribution, Inc. ("Quality" or the "Company") (Nasdaq:QLTY) today announced that its wholly-owned subsidiary, Quality Carriers, Inc., has purchased the operating assets of Trojan Vacuum Services ("Trojan") from Wiley Lease Co., Ltd. ("Seller") for $8.7 million in cash. An additional $1.0 million in cash consideration may be payable to the Seller in connection with the acquisition, contingent upon Trojan meeting certain future financial performance criteria.
Headquartered in Pleasanton, TX, Trojan provides transportation services to the unconventional oil and gas industry within the Eagle Ford shale region, primarily hauling flowback and production water for various energy customers. In conjunction with the transaction, Quality has entered into a water disposal services agreement for the exclusive right to utilize Seller's disposal water capacity within its fluid disposal wells, which the Seller has retained.
For its most recent fiscal year ended December 31, 2011, Trojan had revenues of approximately $13.5 million. Quality expects the acquisition to be accretive to earnings beginning in the second quarter of 2012.
"The acquisition of Trojan is an important step in expanding our Energy Logistics business within the Eagle Ford shale. Trojan broadens our customer base and gains us exclusive access to disposal wells," said Gary Enzor, Chief Executive Officer. "We are impressed with Trojan's operations and the level of service they provide to their customers, and are confident this acquisition will accelerate our growth in the energy market."
William O. Wiley, President of Trojan, stated: "We are excited about the opportunity to become part of the Quality family, and we believe this partnership will enable us to capitalize on a rapidly growing market."
Headquartered in Tampa, Florida, Quality operates the largest chemical bulk tank truck network in North America through its wholly owned subsidiary, Quality Carriers, Inc., and is the largest North American provider of intermodal tank container and depot services through its wholly owned subsidiary, Boasso America Corporation. Quality also provides logistics and transportation services to the unconventional oil and gas industry including crude oil, proppant sand, fresh water, and production fluids, through its wholly owned subsidiaries, QC Energy Resources, Inc. and QC Energy Resources, LLC. Quality's network of independent affiliates and independent owner-operators provides nationwide bulk transportation and related services. Quality is an American Chemistry Council Responsible Care® 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 press release and the oral public statements made by a Quality representative during the webcast announced in this press release may contain 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. Without limitation, additional risks and uncertainties regarding forward-looking statements include the effect of local and national economic, credit and capital market conditions on the economy in general, on our ability to obtain desired debt financing and on the particular industries in which we operate, including excess capacity in the industry, the availability of qualified drivers, changes in fuel and insurance prices, interest rate fluctuations, and downturns in customers' business cycles and shipping requirements; our substantial leverage and our ability to make required payments and restrictions contained in our debt arrangements; competition and rate fluctuations; our reliance on independent affiliates and independent owner-operators; the loss of or material reduction in the services to one or more of our major customers; our liability as a self-insurer to the extent of our deductibles as well as changing conditions and pricing in the insurance marketplace; changes in health insurance benefit regulations; changes in the future, or our inability to comply with, governmental regulations and legislative changes affecting the transportation industry generally or in the particular segments in which we operate; increased unionization, which could increase our operating costs or constrain operating flexibility; our ability to comply with current and future environmental regulations and the increasing costs relating to environmental compliance; potential disruption at U.S. ports of entry; diesel fuel prices and our ability to recover costs through fuel surcharges; our ability to attract and retain qualified drivers; terrorist attacks and the cost of complying with existing and future anti-terrorism security measures; our dependence on senior management; the potential loss of our ability to use net operating losses to offset future income; potential future impairment charges; the interests of our largest shareholder, which may conflict with your interests; our ability to successfully identify acquisition opportunities, consummate such acquisitions and integrate acquired businesses; our ability to execute plans to profitably operate in the energy logistics markets, our success in entering new markets; adverse weather conditions; our liability for our proportionate share of unfunded vested benefit liabilities in the event of our withdrawal from any of our multi-employer pension plans; and changes in planned or actual capital expenditures due to operating needs, changes in regulation, covenants in our debt arrangements and other expenses, including interest expenses. Readers are urged to carefully review and consider the various disclosures, including but not limited to risk factors contained in Quality Distribution, Inc.'s Annual Report on Form 10-K for the year ended December 31, 2011 and its Quarterly Reports on Form 10-Q, as well as other reports filed with the Securities and Exchange Commission. Quality disclaims any obligation to update any forward-looking statement as a result of developments occurring after the date of this release.