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TAMPA -- Business is booming for Quality Distribution Inc. (symbol: QLTY). Revenues grew 9.5% in the third quarter of 2011 relative to the prior year, operating income is up 55%, and net income is up from $421,000 to $6.2 million.
The segment of Quality's business generating the most growth recently is its involvement in energy logistics. The bulk trucking company has begun providing transportation services to energy companies working to extract oil and gas from the Marcellus Shale, a 600-mile geological formation near the Appalachian mountains.
That business added $18.6 million in revenues to Quality's third quarter business, for a total of $199.3 million for the quarter, up from $181.9 million in 2010. CEO Gary Enzor says Quality will continue to explore options for additional energy work in the future.
The company has generated $25.2 million in operating cash flow through the first nine months of 2011, more than double the amount from the same timeframe last year. Joe Troy says this puts Quality in a position to invest in new internal and external opportunities.
Despite the gains in profitability, shares of Quality stock are down roughly 2% in early Thursday trading. But its current per share price, at slightly more than $11, is significantly higher than its 52-week low of $6.33, which it reached roughly a year ago.
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