Quality Distribution Inc. (QLTY, Financial) filed Quarterly Report for the period ended 2012-06-30.
Quality Distribution, Inc. has a market cap of $273.5 million; its shares were traded at around $9.63 with a P/E ratio of 12.1 and P/S ratio of 0.4.
For the six months ended June 30, 2012, total revenues were $404.6 million, an increase of $36.7 million, or 10.0%, from revenues of $367.9 million for the same period in 2011. Transportation revenue increased $29.6 million, or 11.7%, primarily due to an increase in new energy logistics revenue of $33.0 million of which $12.0 related to the 2012 Energy Acquisitions and an increase of $6.0 million in our intermodal business due to an increase in demand and acquisition of Greensville. These increases were partially offset by a decrease in chemical logistics revenue of $9.4 million due to driver capacity constraints resulting from the lingering effects of our installation of electronic on-board recorders, partially offset by price increases.
Purchased transportation increased $15.8 million, or 6.1%, due to an increase of $23.3 million in costs related to servicing the energy logistics market, of which $4.8 million was due to the 2012 Energy Acquisitions. Purchased transportation also increased $4.1 million related to our intermodal business, offset by a decrease of $11.6 million in costs related to servicing the chemical logistics market. Total purchased transportation as a percentage of transportation revenue and fuel surcharge revenue decreased to 79.1% for the six months ended June 30, 2012 versus 82.4% for the same period in 2011. Our independent affiliates generated 92.0% of our chemical logistics revenue and fuel surcharge revenue for the six months ended June 30, 2012 compared to 94.2% for the comparable prior-year period. This decrease resulted from the conversion of 2 independent affiliate trucking terminals to company-operated terminals and the addition of one new company-operated terminal. During the 2012 and 2011 periods, we paid our independent affiliates approximately 85% of chemical logistics transportation revenue and paid independent owner-operators approximately 65% of chemical logistics transportation revenue.
Independent affiliates and independent owner-operators typically supply their own tractors, which reduces our capital investment requirements. For the six months ending June 30, 2012, capital expenditures were $17.9 million and proceeds from sales of property and equipment were $7.0 million. Capital expenditures for 2012 included $10.1 million for equipment purchased to support our energy logistics business and proceeds from sales of property and equipment for 2012 included $1.4 million of energy equipment sales to independent affiliates. We generally expect our sustaining capital expenditures for our chemical logistics and intermodal businesses, net of proceeds from property and equipment sales, to be approximately 1% of operating segment revenues annually. We currently expect net capital expenditures to decline from first half of 2012. We expect net capital expenditures to be approximately $20.0 to $25.0 million for the 2012 year, of which approximately $13.4 million is for equipment required to grow our energy logistics business. Some of our independent affiliates who are engaged with us in the energy market may at times purchase some portion of this equipment from us. Actual amounts could differ materially because of operating needs, growth needs, regulatory changes, covenants in our debt arrangements, other expenses or other factors.
Net cash provided by operating activities was $3.4 million for the six-month period ended June 30, 2012, compared to $12.4 million provided by operating activities in the comparable 2011 period. The $9.0 million decrease in cash provided by operating activities was primarily due to an increase in accounts receivable of $11.3 million primarily due to increased energy logistics revenue and an increase in other assets of $4.6 million primarily due to the issuance of a $2.8 million note to an independent affiliate in the current period versus a write-off of debt issuance costs and a reduction in deposits in prior year. These uses of cash were partially offset by sources of cash from an increase in affiliates and independent owner-operators payable of $4.2 million and higher accounts payable of $2.9 million primarily due to growth in our energy logistics business.
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Quality Distribution, Inc. has a market cap of $273.5 million; its shares were traded at around $9.63 with a P/E ratio of 12.1 and P/S ratio of 0.4.
Highlight of Business Operations:
Purchased transportation increased $8.6 million, or 6.4%, due to an increase of $15.0 million in costs related to servicing the energy logistics market of which $4.8 million was due to the 2012 Energy Acquisitions. Purchased transportation also increased $1.7 million in costs related to our intermodal business offset by a decrease of $8.1 million in costs related to servicing the chemical logistics market. Total purchased transportation as a percentage of transportation revenue and fuel surcharge revenue decreased to 77.9% for the current quarter versus 82.3% for the same period in 2011. Our independent affiliates generated 92.3% of our chemical logistics revenue and fuel surcharge revenue for the three months ended June 30, 2012 compared to 94.2% for the comparable prior-year period. This decrease resulted from the conversion of two independent affiliate trucking terminals to company-operated terminals and the addition of one new company-operated terminal. During the 2012 and 2011 periods, we paid our independent affiliates approximately 85% of chemical logistics transportation revenue and paid independent owner-operators approximately 65% of chemical logistics transportation revenue.For the six months ended June 30, 2012, total revenues were $404.6 million, an increase of $36.7 million, or 10.0%, from revenues of $367.9 million for the same period in 2011. Transportation revenue increased $29.6 million, or 11.7%, primarily due to an increase in new energy logistics revenue of $33.0 million of which $12.0 related to the 2012 Energy Acquisitions and an increase of $6.0 million in our intermodal business due to an increase in demand and acquisition of Greensville. These increases were partially offset by a decrease in chemical logistics revenue of $9.4 million due to driver capacity constraints resulting from the lingering effects of our installation of electronic on-board recorders, partially offset by price increases.
Purchased transportation increased $15.8 million, or 6.1%, due to an increase of $23.3 million in costs related to servicing the energy logistics market, of which $4.8 million was due to the 2012 Energy Acquisitions. Purchased transportation also increased $4.1 million related to our intermodal business, offset by a decrease of $11.6 million in costs related to servicing the chemical logistics market. Total purchased transportation as a percentage of transportation revenue and fuel surcharge revenue decreased to 79.1% for the six months ended June 30, 2012 versus 82.4% for the same period in 2011. Our independent affiliates generated 92.0% of our chemical logistics revenue and fuel surcharge revenue for the six months ended June 30, 2012 compared to 94.2% for the comparable prior-year period. This decrease resulted from the conversion of 2 independent affiliate trucking terminals to company-operated terminals and the addition of one new company-operated terminal. During the 2012 and 2011 periods, we paid our independent affiliates approximately 85% of chemical logistics transportation revenue and paid independent owner-operators approximately 65% of chemical logistics transportation revenue.
Independent affiliates and independent owner-operators typically supply their own tractors, which reduces our capital investment requirements. For the six months ending June 30, 2012, capital expenditures were $17.9 million and proceeds from sales of property and equipment were $7.0 million. Capital expenditures for 2012 included $10.1 million for equipment purchased to support our energy logistics business and proceeds from sales of property and equipment for 2012 included $1.4 million of energy equipment sales to independent affiliates. We generally expect our sustaining capital expenditures for our chemical logistics and intermodal businesses, net of proceeds from property and equipment sales, to be approximately 1% of operating segment revenues annually. We currently expect net capital expenditures to decline from first half of 2012. We expect net capital expenditures to be approximately $20.0 to $25.0 million for the 2012 year, of which approximately $13.4 million is for equipment required to grow our energy logistics business. Some of our independent affiliates who are engaged with us in the energy market may at times purchase some portion of this equipment from us. Actual amounts could differ materially because of operating needs, growth needs, regulatory changes, covenants in our debt arrangements, other expenses or other factors.
Net cash provided by operating activities was $3.4 million for the six-month period ended June 30, 2012, compared to $12.4 million provided by operating activities in the comparable 2011 period. The $9.0 million decrease in cash provided by operating activities was primarily due to an increase in accounts receivable of $11.3 million primarily due to increased energy logistics revenue and an increase in other assets of $4.6 million primarily due to the issuance of a $2.8 million note to an independent affiliate in the current period versus a write-off of debt issuance costs and a reduction in deposits in prior year. These uses of cash were partially offset by sources of cash from an increase in affiliates and independent owner-operators payable of $4.2 million and higher accounts payable of $2.9 million primarily due to growth in our energy logistics business.
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