Quality Distribution (QLTY) 8-K Quality Distribution, Inc. Announces Third

EXHIBIT 99.1

QUALITY DISTRIBUTION, INC. ANNOUNCES THIRD

QUARTER RESULTS

FOR IMMEDIATE RELEASE

TAMPA, FL – November 7, 2007 – Quality Distribution, Inc. (Nasdaq: QLTY) (the “Company”) today reported the results for its third quarter ended September 30, 2007. The total revenue for the quarter was $192.2 million, a 1.1% increase over third quarter revenues of $190.0 million last year. Total revenue for the nine months ended September 30, 2007, increased 1.1% to $565.0 million from $559.1 million last year. Revenue excluding fuel surcharge was $167.6 million for the quarter, a 1.8% increase over $164.7 million last year. For the nine month period ended September 30, 2007 revenue excluding fuel surcharge was $497.5 million, an increase of 1.2% over the same period last year.

The Company continued to generate strong cash flow during the quarter as total funded debt, net of cash, decreased $8.1 million, from $276.6 million at June 30, 2007 to $268.5 million as of September 30, 2007.

Income before taxes decreased from $5.9 million for the quarter ended September 30, 2006 to $3.3 million for the same period this year. The decrease in pre-tax income is primarily related to credits to our insurance expense and selling and administrative expenses last year, that did not occur in the current year.

Net income for the quarter ended September 30, 2007 was $1.4 million, or $0.07 earnings per fully diluted share (“EPS”), as compared with net income of $38.0 million or $1.94 EPS in the third quarter of last year. Net income for the nine months ended September 30, 2007 was $3.5 million, or $0.18 EPS, as compared with net income of $48.0 million, or $2.46 EPS last year. Net income for both the third quarter and the nine month period for last year were significantly influenced by the fact that we recorded as part of our provision for income taxes, a net non-cash benefit of $32.1 million ($1.64 per fully diluted share) resulting from the release of the Company’s deferred tax valuation allowance.

Applying an expected annual 39% tax rate to pre-tax income for the third quarter of 2007 would have resulted in tax expense of $1.3 million, and net income of $2.0 million, or EPS of $0.10. Applying the same 39% tax rate to the third quarter pre-tax income for last year would have resulted in tax expense of $2.3 million, and net income of $3.6 million, or EPS of $0.18.

As previously announced, the company expects to close its acquisition of Boasso America Corporation (“Boasso”) in the fourth quarter. Boasso, headquartered in Chalmette, LA, is a leading provider of ISO tank container and depot services. This acquisition will add six additional locations in Chalmette, LA, Houston, TX, Charleston, SC, Chicago, IL, Detroit, MI and Jacksonville, FL to the Company’s network of tank container service centers. For its most recent fiscal year ended March 31, 2007, Boasso had revenues in excess of $70 million. The Company expects the acquisition to be immediately accretive to earnings.

Commenting on the results and acquisitions, President and Chief Executive Officer Gary Enzor stated, “Despite today’s tough economic environment we grew revenues excluding fuel surcharge by 1.8% and reduced our net debt by $8.1 million. The Brite Clean acquisition has been a catalyst for profit improvement in our tank wash business and the Boasso acquisition, which we plan to close this quarter, will be an excellent growth vehicle during 2008. Although we are disappointed with our earnings level during the quarter, we believe we enter 2008 with a much stronger company. Over the last 24 months, through acquisitions and the conversion of a number of affiliates to company controlled terminals, we have transformed our model to one where the majority of our revenue will be directly controlled by the Company. We believe this focus on more network control will help us both reduce deadhead miles and increase driver productivity, which will ultimately translate into improved profitability. At the same time, we continue to retain our asset-light, variable cost model because the vast majority of our drivers continue to be owner operators or work for our affiliates. This structure reduces the Company’s capital requirements for tractors and provides us the ability to flex with demand changes.”

Timothy Page, Chief Financial Officer added, “In connection with the pending acquisition of Boasso, we intend to restructure our credit facilities. The proceeds from the refinancing will be used to fund the acquisition of Boasso and replace our existing revolver and term loan. Besides extending the maturities of our existing Senior Credit Facility, this refinancing will provide additional borrowing availability and is expected to yield a reduction in our blended cost of capital.”

The Company will host a conference call for investors to discuss these results on November 8, 2007 at 11:00 a.m. Eastern Time. The toll free dial-in number is 800-545-9704; the toll number is 913-981-5510; the passcode is 4597249. A replay of the call will be available until December 8, 2007, by dialing 888-203-1112; passcode; 4597249. Copies of this earnings release and other financial information about the Company may be accessed on the “QDI Main / News and Publications” and “Investors” sections of the Company’s website at www.qualitydistribution.com.

Headquartered in Tampa, Florida, Quality Distribution, Inc. through its subsidiary, Quality Carriers, Inc., and through its affiliates and owner-operators, provides bulk transportation and related services. The Company also provides tank cleaning services to the bulk transportation industry through its QualaWash® facilities. Quality Distribution, Inc. 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.

This release contains 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, these risks and uncertainties include the Company’s substantial leverage; economic factors; downturns in customers’ business cycles or in the national economy; the cyclical nature of the transportation industry; claims exposure and insurance costs; adverse weather conditions; dependence on affiliates and owner-operators; changes in government regulation including transportation, environmental and anti-terrorism laws; the Company’s environmental remediation costs; fluctuations in fuel pricing or availability; increases in interest rates; changes in senior management; its ability to achieve projected operating objectives and debt reduction in 2007; its ability to successfully integrate acquired businesses or integrate affiliate businesses converted to Company-controlled operations; and the Company’s ability to attract and retain qualified drivers. Readers are urged to carefully review and consider the various disclosures, including but not limited to risk factors, contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2006 and its quarterly reports on Form 10-Q, as well as other periodic reports filed with the Securities and Exchange Commission. The Company disclaims any obligations to update any forward-looking statement as a result of developments occurring after the date of this release.

Contact:	Timothy B. Page
	Senior Vice President and Chief Financial Officer
	800-282-2031 ext. 7376

QUALITY DISTRIBUTION, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(In 000’s) Except Per Share Data

Unaudited

	Three months ended September 30,						Nine months ended September 30,
	2007			2006			2007			2006
OPERATING REVENUES:
Transportation	$	148,900		$	149,150		$	442,656		$	440,776
Other service revenue		18,736			15,524			54,847			50,731
Fuel surcharge		24,545			25,354			67,483			67,549
Total operating revenues		192,181			190,028			564,986			559,056
OPERATING EXPENSES:
Purchased transportation		118,653			128,973			358,027			380,363
Compensation		22,302			19,052			62,558			55,326
Fuel, supplies and maintenance		21,429			15,064			57,056			38,803
Depreciation and amortization		4,332			3,873			12,562			11,661
Selling and administrative		7,442			4,875			21,314			15,626
Insurance claims		3,239			2,232			14,321			10,160
Taxes and licenses		1,105			1,018			2,729			2,663
Communications and utilities		2,952			2,012			8,081			6,867
Loss (gain) on disposal of property and equipment		219			(697	)		418			(920	)
Total operating expenses		181,673			176,402			537,066			520,549
Operating income		10,508			13,626			27,920			38,507
Interest expense		7,651			7,903			23,403			23,168
Interest income		(198	)		(260	)		(573	)		(1,370	)
Other (income) expense		(279	)		95			(638	)		(262	)
Income before taxes		3,334			5,888			5,728			16,971
Provision (benefit) for income taxes		1,982			(32,139	)		2,229			(31,070	)
Net income	$	1,352		$	38,027		$	3,499		$	48,041
PER SHARE DATA:
Net income per common share
Basic	$	0.07		$	2.01		$	0.18		$	2.54
Diluted	$	0.07		$	1.94		$	0.18		$	2.46
Weighted average number of shares
Basic		19,357			18,874			19,353			18,910
Diluted		19,488			19,569			19,488			19,548

QUALITY DISTRIBUTION, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In 000’s)

Unaudited

	September 30, 2007			December 31, 2006
ASSETS
Current assets:
Cash and cash equivalents	$	9,981		$	6,841
Accounts receivable, net		93,560			85,482
Prepaid expenses		6,542			6,101
Prepaid tires		7,295			7,517
Deferred tax asset, net		18,320			18,320
Other		6,401			9,214
Total current assets		142,099			133,475
Property and equipment, net		113,375			116,964
Assets held-for-sale		351			381
Goodwill		141,098			138,980
Intangibles, net		1,586			635
Non-current deferred tax asset, net		19,703			19,578
Other assets		8,775			11,249
Total assets	$	426,987		$	421,262
LIABILITIES, MINORITY INTEREST AND SHAREHOLDERS’ EQUITY
Current liabilities:
Current maturities of indebtedness	$	1,400		$	1,400
Current maturities of capital lease obligations		1,303			1,178
Accounts payable		11,954			13,957
Affiliates and independent owner-operators payable		14,950			11,025
Accrued expenses		26,713			21,197
Environmental liabilities		7,012			5,995
Accrued loss and damage claims		10,172			11,533
Total current liabilities		73,504			66,285
Long-term indebtedness, less current maturities		271,958			272,826
Capital lease obligations, less current maturities		3,788			3,718
Environmental liabilities		3,545			5,831
Accrued loss and damage claims		15,495			20,633
Other non-current liabilities		16,644			14,249
Deferred tax liability		832			724
Total liabilities		385,766			384,266
Minority interest in subsidiary		1,833			1,833
SHAREHOLDERS’ EQUITY
Common stock, no par value; 29,000 authorized, 19,344 issued at September 30, 2007 and 19,210 issued at December 31, 2006		361,281			359,995
Treasury stock, 158 and 172 shares at September 30, 2007 and December 31, 2006, respectively		(1,564	)		(1,527	)
Accumulated deficit		(111,695	)		(114,866	)
Stock recapitalization		(189,589	)		(189,589	)
Accumulated other comprehensive loss		(18,775	)		(18,531	)
Stock purchase warrants		—			21
Stock subscriptions receivable		(270	)		(340	)
Total shareholders’ equity		39,388			35,163
Total liabilities, minority interest and shareholders’ equity	$	426,987		$	421,262

QUALITY DISTRIBUTION, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In 000’s)

Unaudited

	Nine Months Ended September 30,
	2007			2006
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	3,499		$	48,041
Adjustments to reconcile to net cash and cash equivalents provided by operating activities:
Depreciation and amortization		12,562			11,661
Bad debt expense (recoveries)		792			(487	)
Loss (gain) on disposal of property and equipment		418			(920	)
Interest income on repayment of stock subscription		—			(690	)
Stock based compensation		1,227			2,255
Amortization of deferred financing costs		1,375			1,361
Amortization of bond discount		182			182
Minority dividends		109			109
Deferred taxes		848			(32,190	)
Changes in assets and liabilities:
Accounts and other receivables		(9,228	)		4,706
Prepaid expenses		(286	)		508
Prepaid tires		(129	)		(448	)
Other assets		(87	)		(7,845	)
Accounts payable		(1,918	)		(9,106	)
Accrued expenses		5,754			3,214
Environmental liabilities		(1,270	)		(5,199	)
Accrued loss and damage claims		(6,500	)		(1,578	)
Affiliates and independent owner-operators payable		3,925			2,983
Other liabilities		388			(540	)
Net cash provided by operating activities		11,661			16,017
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures		(6,728	)		(10,692	)
Acquisition of business and assets		(4,004	)		(5,506	)
Proceeds from sales of property and equipment		5,471			5,466
Net cash used in investing activities		(5,261	)		(10,732	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments on long-term debt		(1,050	)		(1,050	)
Principal payments on capital lease obligations		(899	)		(111	)
Proceeds from revolver		35,700			159,000
Payments on revolver		(35,700	)		(165,200	)
Payments on acquisition notes		(321	)		—
Deferred financing costs		(153	)		—
Stock offering costs		(787	)		—
Change in book overdraft		(70	)		3,378
Minority dividends		(109	)		(109	)
Proceeds from purchase of stock options		70			186
Net cash used in financing activities		(3,319	)		(3,906	)
Effect of exchange rate changes on cash		59			(63	)
Net increase in cash and cash equivalents		3,140			1,316
Cash and cash equivalents, beginning of period		6,841			1,636
Cash and cash equivalents, end of period	$	9,981		$	2,952