10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-K

x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2012

¨ TRANSITION REPORT PURSUANT TO SECTIONS 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to                     

COMMISSION FILE NUMBER 000-24180

Quality Distribution, Inc.

(Exact name of registrant as specified in its charter)

Florida	59-3239073
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)

4041 Park Oaks Boulevard, Suite 200

Tampa, Florida 33610

(Address of principal executive offices) (zip code)

Registrant’s telephone number, including area code:

813-630-5826

SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT:

Title of each class	Name of each exchange on which registered
Common Stock (no par value per share)	NASDAQ Global Market

SECURITIES REGISTERED PURSUANT TO SECTION 12(g) OF THE ACT:

Title of each class Name of each exchange on which registered

None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.    Yes  ¨    No  x

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act.    Yes  ¨    No  x

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  ¨

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of Registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.  x

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer	¨	Accelerated filer	x
Non-accelerated filer	¨  (Do not check if a smaller reporting company)	Smaller reporting company	¨

Indicate by check mark whether the registrant is a shell company (as defined in Exchange Act Rule 12b-2).    Yes  ¨    No  x

Aggregate market value of voting stock held by non-affiliates as of June 30, 2012 was $245.4 million (based on the closing sale price of $11.08 per share).

As of March 1, 2013, the registrant had 27,046,644 outstanding shares of Common Stock, no par value, outstanding.

DOCUMENTS INCORPORATED BY REFERENCE

1. Portions of Quality Distribution, Inc. Notice of Annual Meeting and Proxy Statement (“Proxy Statement”) for our Annual Meeting of Shareholders which will be held May 30, 2013. The Proxy Statement will be filed within 120 days of the end of the fiscal year ended December 31, 2012. (Part III of Form 10-K).

TABLE OF CONTENTS

INTRODUCTION			1
FORWARD-LOOKING STATEMENTS AND CERTAIN CONSIDERATIONS			1
PART I			3
	ITEM 1.	BUSINESS	3
	ITEM 1A.	RISK FACTORS	15
	ITEM 1B.	UNRESOLVED STAFF COMMENTS	25
	ITEM 2.	PROPERTIES	25
	ITEM 3.	LEGAL PROCEEDINGS	26
	ITEM 4.	MINE SAFETY DISCLOSURES	26
PART II			28
	ITEM 5.	MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED SHAREHOLDER MATTERS AND ISSUER’S PURCHASES OF EQUITY SECURITIES	28
	ITEM 6.	SELECTED FINANCIAL DATA	31
	ITEM 7.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	33
	ITEM 7A.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	56
	ITEM 8.	FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA	57
	ITEM 9.	CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE	57
	ITEM 9A.	CONTROLS AND PROCEDURES	57
	ITEM 9B.	OTHER INFORMATION	58
PART III			59
	ITEM 10.	DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE	59
	ITEM 11.	EXECUTIVE COMPENSATION	59
	ITEM 12.	SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED SHAREHOLDER MATTERS	59
	ITEM 13.	CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE	59
	ITEM 14.	PRINCIPAL ACCOUNTANT FEES AND SERVICES	60
PART IV			61
	ITEM 15.	EXHIBITS AND FINANCIAL STATEMENT SCHEDULES	61
SIGNATURES			62
REPORT OF INDEPENDENT REGISTERED CERTIFIED PUBLIC ACCOUNTING FIRM			F-2
CONSOLIDATED STATEMENTS OF OPERATIONS			F-3
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)			F-4
CONSOLIDATED BALANCE SHEETS			F-5
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ DEFICIT			F-6
CONSOLIDATED STATEMENTS OF CASH FLOWS			F-8
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS			F-10

INTRODUCTION

In this Annual Report on Form 10-K, unless the context otherwise indicates, (i) the terms the “Company,” “our Company,” “Quality Distribution,” “QDI,” “we,” “us” and “our” refer to Quality Distribution, Inc. and its consolidated subsidiaries and their predecessors, (ii) the terms “Quality Distribution, LLC” and “QD LLC” refer to our 100% owned subsidiary, Quality Distribution, LLC, a Delaware limited liability company, and its consolidated subsidiaries and their predecessors, (iii) the term “QD Capital” refers to our 100% owned subsidiary, QD Capital Corporation, a Delaware corporation, (iv) the term “QCI” refers to our 100% owned subsidiary, Quality Carriers, Inc., an Illinois corporation, (v) the term “Boasso” refers collectively to our 100% owned subsidiary, Boasso America Corporation, a Louisiana corporation, and Boasso’s 100% owned subsidiary, Greensville Transport Company (“Greensville”), a Virginia corporation, (vi) the term “QCER” refers collectively to our 100% owned subsidiary, QC Energy Resources, Inc., a Delaware corporation, and its 100% owned subsidiaries, QC Energy Logistics, LLC, a Delaware limited liability company, QC Energy Resources, LLC, a Delaware limited liability company, QC Energy Resources Northwest, LLC, a Delaware limited liability company, and QC Energy Resources Texas, LLC, a Delaware limited liability company, as well as our 100% owned subsidiary QC Environmental Services, Inc., a North Dakota corporation, and (vii) the term “CLC” refers to our 100% owned subsidiary, Chemical Leaman Corporation, a Pennsylvania corporation.

FORWARD-LOOKING STATEMENTS AND CERTAIN CONSIDERATIONS

This report, along with other documents that are publicly disseminated by us, contains or might contain forward-looking statements within the meaning of the Securities Exchange Act of 1934, as amended. All statements included in this report and in any subsequent filings made by us with the SEC other than statements of historical fact, that address activities, events or developments that we or our management expect, believe or anticipate will or may occur in the future are forward-looking statements. These statements represent our reasonable judgment on the future based on various factors and using numerous assumptions and are subject to known and unknown risks, uncertainties and other factors that could cause our actual results and financial position to differ materially. We claim the protection of the safe harbor for forward-looking statements provided in the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act and Section 21E of the Exchange Act. Examples of forward-looking statements include: (i) projections of revenue, earnings, capital structure and other financial items, (ii) statements of our plans and objectives, (iii) statements of expected future economic performance, and (iv) assumptions underlying statements regarding us or our business. Forward-looking statements can be identified by, among other things, the use of forward-looking language, such as “targets”, “bodes”, “believes,” “expects,” “estimates,” “may,” “will,” “should,” “could,” “seeks,” “plans,” “intends,” “anticipates” or “scheduled to” or the negatives of those terms, or other variations of those terms or comparable language, or by discussions of strategy or other intentions.

Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause our actual results to differ materially from those contemplated by the statements. The forward-looking information is based on various factors and was derived using numerous assumptions. Important factors that could cause our actual results to be materially different from the forward-looking statements include the following risks and other factors discussed under the Item 1A “Risk Factors” in this Annual Report on Form 10-K. These factors include:

• the effect of local, national and international economic, credit, capital and labor market conditions on the economy in general, 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 comply with restrictions contained in our debt arrangements or to otherwise generate sufficient cash from operations or borrowings under our ABL Facility to fund our liquidity needs;

• competition and rate fluctuations, including fluctuations in prices and demand for transportation services as well as for commodities such as natural gas and oil;

• our reliance on independent affiliates and independent owner-operators;

• a shift away from or slowdown in production in the shale regions in which we have energy logistics operations;

• our liability as a self-insurer to the extent of our deductibles as well as changing conditions and pricing in the insurance marketplace;

• increased unionization, which could increase our operating costs or constrain operating flexibility;

• changes in 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;

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• federal and state legislative and regulatory initiatives, which could result in increased costs and additional operating restrictions upon us or our oil and gas frac shale energy customers;

• our ability to access and use our salt water disposal wells and other disposal sites and methods in our energy logistics business;

• 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 or our interests;

• our ability to successfully identify acquisition opportunities, consummate such acquisitions and successfully integrate acquired businesses and converted affiliates and achieve the anticipated benefits and synergies of acquisitions and conversions, the effects of the acquisitions and conversions on the acquired businesses’ existing relationships with customers, governmental entities, affiliates, owner-operators and employees, and the impact that acquisitions and conversions could have on our future financial results and business performance and other future conditions in the market and industry from the acquired businesses;

• our ability to execute plans to profitably operate in the transportation business and disposal well business within the energy logistics market;

• our success in entering new markets;

• adverse weather conditions;

• changes in health insurance benefit regulations;

• our liability for our proportionate share of unfunded vested benefit liabilities, particularly 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.

In addition, there may be other factors that could cause our actual results to be materially different from the results referenced in the forward-looking statements. All forward-looking statements contained in this Annual Report on Form 10-K are qualified in their entirety by this cautionary statement. Forward-looking statements speak only as of the date they are made, and we do not intend to update or otherwise revise the forward-looking statements to reflect events or circumstances after the date of this Annual Report on Form 10-K or to reflect the occurrence of unanticipated events.

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PART I

ITEM 1. BUSINESS

Overview

We operate the largest chemical bulk tank truck network in North America and are also the largest provider of intermodal ISO tank container and depot services in North America. In 2011, we began providing logistics services to the unconventional oil and gas frac shale energy markets. We operate an asset-light business model and service customers across North America through our network of 89 terminals servicing the chemical markets, 9 ISO tank depot services terminals (intermodal) servicing the chemical and other bulk liquid markets and 10 terminals servicing the energy markets.

Financial Reporting Segments

We have three reportable business segments for financial reporting purposes that are distinguished primarily on the basis of services offered:

• Chemical Logistics, which consists of the transportation of bulk chemicals primarily through our network of 25 independent affiliates and company-operated terminals, and equipment rental income;

• Energy Logistics, which consists primarily of the transportation of fresh water, disposal water, and crude oil for the unconventional oil and gas frac shale energy markets, primarily through company-operated terminals and 2 independent affiliates; and

• Intermodal, which consists of Boasso’s intermodal ISO tank container transportation and depot services business primarily supporting the international movement of bulk liquids.

Chemical Logistics

Through our subsidiary, QCI, we coordinate the transport of a broad range of chemical products and provide our customers with logistics and other value-added services. Through our North American network, we are a core carrier for many of the major companies engaged in chemical processing. We believe the diversity of our customer base, geography and end-markets provide a competitive advantage.

The bulk tank truck market in North America includes all products shipped by bulk tank truck carriers and consists mainly of liquid and dry bulk chemicals (including plastics) and bulk dry and liquid food-grade products. We estimate, based on industry sources, that the highly fragmented North American for-hire segment of the bulk tank transport market generated revenues of approximately $6.4 billion in 2011. We specifically operate in the for-hire chemical and food grade bulk transport market (which we estimated at $4.4 billion in 2011). We believe we have the leading market share (estimated at 15% in 2011) in this sector based on revenues. We believe managing a larger carrier network facilitates customer service and lane density, and provides a more favorable operating cost structure for us and our independent affiliates. As such, we believe we are well-positioned to expand our business.

Chemical bulk tank truck industry growth is generally dependent on volume growth in the industrial chemical industry, the rate at which chemical companies outsource their transportation needs, the overall capacity of the rail system, and, in particular, the extent to which chemical companies make use of the rail system for their bulk chemical transportation needs. We also believe that North American chemical producers will gain a global competitive advantage and grow domestic production (thus shipments which we can service) through the use of low cost energy sources, primarily natural gas and natural gas liquids.

The chemical bulk tank truck industry is characterized by high barriers to entry such as the time and cost required to develop the operational infrastructure necessary to handle sensitive chemical cargo, the financial and managerial resources required to recruit and train drivers, substantial and increasingly more stringent industry regulatory requirements, strong customer relationships and the significant capital investments required to build a fleet of equipment and establish a network of terminals and independent affiliates.

Our transportation revenue in the chemical logistics segment is principally a function of the volume of shipments by the bulk chemical industry, prices, the average number of miles driven per load, our market share and the allocation of shipments between tank truck transportation and other modes of transportation such as rail. Additionally, it is common practice in the bulk tank truck industry for customers to pay fuel surcharges.

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Energy Logistics

Our energy logistics business began operations in the second quarter of 2011 primarily as a third party logistics (“3PL”) provider. We operate the business through our subsidiary, QCER. Our energy logistics business services the unconventional oil and gas frac shale energy market through the transportation of crude oil, fresh water, flowback and produced brine water, and the disposal of flowback and produced brine water, as well as providing services ancillary to these activities. During 2012, we expanded our energy logistics business through the following acquisitions:

• On April 1, 2012, we acquired certain operating assets of Trojan Vacuum Services, which operates in the Eagle Ford shale. We paid $8.7 million in cash at closing, plus $1.0 million in cash in January 2013 upon the satisfaction of certain operating and financial performance criteria.

• On June 1, 2012, we acquired certain operating assets of Wiley Bice Trucking, LLC and certain operating assets and rights of RM Resources, LLC, (collectively “Bice”), which operates in the Bakken shale region, for $81.4 million in aggregate consideration, with up to an additional $19.0 million in cash consideration, payable one year after the closing date if certain future operating and financial performance criteria are satisfied.

• On August 1, 2012, we acquired certain operating assets of Dunn’s Tank Services, Inc. and its related company Nassau Disposal, Inc., (collectively “Dunn’s”), which operates in the Marcellus, Woodford and Utica shale regions for an aggregate purchase price of $34.3 million, with up to an additional $3.6 million in cash consideration, payable one year after the closing date if certain future operating and financial performance criteria are satisfied.

As of December 31, 2012, we operate in the Bakken, Eagle Ford, Permian, Marcellus, Woodford, Utica and Mississippian Limestone shale regions in North America, all of which drill for both oil and natural gas with the exception of Marcellus, which is solely natural gas. We continue to evaluate the potential for expansion into additional shales, which would provide additional diversification to our business. Our strategy to target multiple resource rich shales helps to diversify our customer offerings, lessen the impact of swings in any one commodity and optimize equipment utilization. We currently operate approximately 1,400 units (tractors, trailers and combination equipment) of energy equipment in this market across a diverse customer base.

Our energy logistics business is primarily involved in fluid management and logistics in the upstream segment of the energy industry, through its services in connection with the establishment of production wells, and the midstream segment of the energy industry, in connection with the transportation of crude oil. We believe the market for services such as those provided by our energy logistics business was approximately $5.0 to $7.0 billion in 2011. The industry is made up of providers that include independent national or regional trucking and logistics companies such as QCER, trucking and logistics companies owned by or dedicated to large oil and gas companies, and local providers focused on one or more particular shales. Energy logistics providers are impacted by the level of new drilling activity, which impact the transportation of fresh water and flowback water used and the provision of related services used in those activities, and the number of active wells, which impacts the transportation of crude oil and produced water and the provision of related services used in those activities. The energy logistics market is also impacted by market prices for oil and gas, which influence the production activities of our customers, the prices they are willing to pay for our services, and the shales in which they operate. We expect regulation of this industry to increase over time but believe that the scope of our operations and our experience with regulation in our chemical logistics business will facilitate our adaptation to new regulations and may provide us with an advantage over some of our competitors.

Intermodal

Our subsidiary, Boasso, provides intermodal ISO tank container transportation and depot services, through terminals located in the eastern half of the United States. In the fourth quarter of 2011, Boasso expanded its operations through the acquisition of Greensville Transport Company, which operates at a port located in Norfolk, Virginia. Boasso’s revenues are impacted by United States chemical import/export volume, in particular the number and volume of shipments through ports at which Boasso has terminals, as well as their market share at those ports.

In addition to intermodal tank transportation services, Boasso provides tank cleaning, heating, testing, maintenance and storage services to customers. Boasso provides local and over-the-road trucking primarily within the proximity of the port cities where its depots are located. Chemical manufacturers have sought to efficiently transport their products on a global basis by utilizing ISO tank containers, and we believe the resulting demand for distributors that can offer a broad range of services within the supply chain will drive future growth in this sector. We believe that our intermodal business will benefit from these trends because of its market leadership, experience and track record.

The intermodal ISO tank container business generally provides services that facilitate the global movement of liquid and dry bulk chemicals, pharmaceuticals and food grade products. The proliferation of global import/export of bulk liquid chemicals has driven the movement of basic manufacturing out of the United States and has resulted in an increase in chemical plant infrastructure to service these off-shore industries. Driven by this globalization, the intermodal ISO tank container market is a growing sector of the overall liquid bulk chemical transportation sector. Demand for intermodal ISO tank containers is impacted by the aggregate volume of imports and exports of chemicals through United States ports. Demand is also impacted by the shift in modes of transportation, from drums to ISO tank containers. Economic conditions and differences among the laws and currencies of foreign nations may also impact the volume of shipments. We operate in the global intermodal ISO tank container transportation and depot services market, which we believe was approximately a $1.0 to $2.0 billion market in 2011.

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Seasonality

Due to the nature of our customers’ business, our revenues are seasonal. Revenues generally decline during winter months, namely our first and fourth fiscal quarters and over holidays, and rise during our second and third fiscal quarters. Highway transportation can be adversely affected depending upon the severity of the weather in various sections of the country during the winter months. During periods of heavy snow, ice or rain, we may not be able to move our trucks and equipment between locations, thereby reducing our ability to provide services and generate revenues. Additionally, in our energy logistics segment, drilling within certain shales that we service may be adversely affected by the severity of weather in various sections of the country.

Competition

The tank truck business is competitive and fragmented. In our chemical logistics segment, we compete primarily with other tank truck carriers and dedicated private fleets in various states within the United States and Canada. Competition from for-hire carriers is composed of fewer than ten large carriers, most of which have other businesses that do not compete with ours, and more than 200 smaller, primarily regional carriers. With respect to certain aspects of our business, we also compete with intermodal transportation pipelines and railroads. Intermodal transportation has increased in recent years. Competition for the bulk tank truck services is based primarily on rates and service. We believe that we enjoy significant competitive advantages over other tank truck carriers because of our market share, overall fleet size, variable cost structure, strength of our independent affiliates and our national terminal network.

Our intermodal business competes primarily with other national, regional and local tank truck carriers and dedicated private fleets as well as local and regional dry container transporters. Competition in our intermodal ISO tank container services business depends on which competitors have facilities that are proximate to the ports serviced by Boasso. Among competitors for a port location, competition is based primarily on rates and service.

Our energy logistics business competes with national, regional and local trucking companies, dedicated private fleets, providers of temporary pipeline services as well as the integrated oil companies. In certain aspects of our energy business, we may also compete with rail and pipeline companies as well as companies offering water recycling options.

Our Competitive Strengths

We believe the following competitive strengths will enable us to sustain our market leadership and continue to grow our business:

Large Network

We operate the largest chemical tank truck network in North America with an approximate 15% share of the highly fragmented $4.4 billion for-hire chemical and food grade bulk transport market (which excludes fuel transportation), in each case estimated by us based on industry data contained in Bulk Transporter’s Tank Truck Carrier 2011 Annual Gross Revenue Report. We believe our unique large nationwide network covers all major North American chemical shippers and enables our chemical logistics business to serve customers with both international and national requirements better than our competitors, the majority of which are regionally focused.

We believe that the breadth of our network also provides our energy logistics business with a competitive advantage in the gas and oil frac shale energy market. Although the demand for logistics services is specific to the shale in which drilling occurs, many logistics customers operate across multiple shales. This provides us with the opportunity to provide services on a national basis, unlike those of our competitors that are focused on a single or limited number of shales. In certain instances, our energy logistics equipment can be moved among shales, enabling us to allocate resources as demand shifts.

We operate the largest provider of ISO tank container and depot services in North America. Boasso is the leading provider of intermodal ISO tank container over-the-road transportation and depot services in North America. We have significant exposure to high growth international markets. The intermodal tank container transportation market has experienced significant growth recently as international chemical trade has increased and chemical manufacturers move towards greater utilization of intermodal tanks and standardized intermodal tank containers to efficiently transport their products around the world via sea, land and air. Our intermodal tank container depots, which provide transportation, cleaning, heating, testing, maintenance and storage services, are located at or near ports in New Orleans, LA; Houston, TX; Newark, NJ; Charleston, SC; Chicago, IL; Detroit, MI; Savannah, GA; Jacksonville, FL; and Norfolk, VA. Greensville was acquired in November 2011, which filled a key underserved port that we expect to benefit from the future expansion of the Panama Canal.

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In all of our businesses, our size allows us, our independent affiliates and our independent owner-operators to benefit from economies of scale in the purchasing of supplies and services, including fuel, tires and insurance coverage.

Asset-Light Business Model

Our extensive use of independent affiliates and independent owner-operators results in a highly variable cost structure with relatively minimal net capital investment requirements. We generally expect sustaining capital expenditures for our chemical logistics and intermodal businesses, net of proceeds from property and equipment sales, to be approximately 1% to 2% of operating revenues annually, compared to the industry average of more than 10% for truckload carrier companies. This model contributes to the stability of our cash flow and margins and results in high returns on invested capital. The independent affiliates are generally responsible for capital investments and most of the operating expenses related to the business they service, including the capital costs related to purchasing and maintaining tractors. Typically, independent affiliates purchase or lease tractors for their business directly from the manufacturers, and to a lesser extent from us, and must lease trailers from us in accordance with our affiliate agreements. Independent owner-operators are independent

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contractors who supply one or more tractors and drivers for our own or our independent affiliates’ use. As with independent affiliates, independent owner-operators are responsible for most of the operating expenses related to the business they service, including costs related to the acquisition and maintenance of tractors. Some independent owner operators have lease-to-buy arrangements with us or independent affiliates for tractors.

With our entry into the energy markets, we have seen increased capital expenditures in order to build capacity for this new business. We expect this business to have higher capital requirements because we operate a number of the energy terminals as company operations. We plan to continue to add independent affiliates and owner-operators, and potentially convert company-owned operations to independent affiliates, with the overall goal to reduce capital needs while improving return on invested capital.

Our Customer Base

We serve customers in a number of diverse industries, whose products reach a diverse group of end-markets. Our chemical logistics business services most of the top 100 chemical producers with North American operations, our energy logistics business provides services to a diverse base of participants in the energy exploration and production market in the U.S., and our intermodal business provides services to all major non-vessel operating common carriers engaged in our operating footprint of ports. Our key customers include Anadarko, Arclin, Arkema, Ashland, BASF, Dow, Hoyer Global, Inc., Hunt Oil, Newport Tank Container, PPG Industries, Procter & Gamble, Stolt-Nielsen USA, and Valspar among others. In each of 2012, 2011 and 2010, no single customer accounted for more than 10.0% of combined revenues in any segment. In many cases, we have established long-term customer relationships with these clients.

Stable Pricing Environment

We believe pricing in the bulk tank truck and ISO tank industries tends to be more stable than pricing in the overall trucking industry. We believe the specialized nature of our industries, including specifically licensed drivers, specialized equipment and more stringent safety requirements, create barriers to entry which limit the more drastic swings in supply experienced by the broader trucking industry. Additionally, it is common practice in the bulk tank truck and ISO tank industries for customers to pay fuel surcharges, which enables trucking companies to recover some fuel costs from customers.

Safe and Efficient Operations

We have a strong emphasis on safety in our operations and have a relentless focus on improving productivity and efficiency. Given the nature of the cargo we haul, which requires a high degree of careful handling, we believe that our strong and proactive focus on safety creates a competitive advantage for us. For example, we completed the installation of electronic on-board recorders (“EOBRs”) in substantially all of our U.S. chemical logistics fleet in 2011, at a time when there was no regulatory requirement to do so. In 2012, federal legislation was enacted to mandate the use of EOBRs, and as that legislation is implemented the rest of the industry will be required to implement similar safety technology. Further, we believe this strong and proactive focus positions us well to comply with the Federal Motor Carrier Safety Administration’s (the “FMCSA”) Compliance, Safety and Accountability (“CSA”) program, which imposes additional safety standards on the industry.

Strong Management Team with a Track Record of Success

Our management team, led by our Chief Executive Officer, Gary Enzor, successfully navigated our business through the recent economic slowdown by implementing cost savings measures and by leading the transition to an independent affiliate-based network, among other initiatives. As a result, we believe we are well positioned to benefit from an economic recovery. Mr. Enzor, as well as our President and Chief Operating Officer, Steve Attwood, our Executive Vice President and Chief Financial Officer, Joe Troy, and other senior managers have significant managerial, operational and financial experience and have a demonstrated ability to respond to operational challenges and enhance shareholder value.

Independent Affiliates

In our chemical logistics segment and to a lesser extent our energy logistics segment, we operate with an asset-light structure designed to reduce our assets employed and capital expenditure requirements. In furtherance of this, we maintain contractual relationships with independent trucking companies who agree to provide their equipment and expertise to support the provision of transportation services exclusively to our customers in defined markets. We refer to these independent companies as our independent affiliates.

In exchange for the services rendered, independent affiliates are normally paid an agreed upon percentage of the revenues collected on each load hauled. Independent affiliates pay all tractor operating expenses for tractors they own and lease such as fuel,

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physical damage insurance, tractor maintenance, fuel taxes and highway use taxes. However, we reimburse independent affiliates for certain expenses passed through to our customers, such as tolls and scaling charges. We operate programs intended to benefit independent owner-operators by reducing their operating expenses for business requirements such as tractors, fuel, tires, occupational accident insurance and physical damage insurance.

We generated approximately 90%, 93% and 94% of our chemical logistics transportation revenue in the years ended December 31, 2012, 2011 and 2010, respectively, from independent affiliates. We generated approximately 23% and 45% of our energy logistics transportation revenue in the years ended December 31, 2012 and 2011, respectively, from independent affiliates. This change was the result of the 2012 Energy Acquisitions which are mainly operated as company terminals. Due to several factors, including our ownership of the customer contracts and relationships, our provision of back-office support in areas such as collections, billing and claims, our direct relationships with independent owner-operators, the presence of non-compete agreements with the independent affiliates, and, in some cases, our ownership of the trailers utilized in the contracted business, our relationships with the independent affiliates tend to be long-term in nature, with minimal turnover. We also monitor volume performance of each independent affiliate on a regular basis to ensure operating performance is in line with management’s expectations. We work proactively with our affiliates to take corrective action or render assistance where appropriate and have certain contractual mechanisms in place to remedy sustained underperformance.

Independent Owner-Operators

We and our independent affiliates extensively utilize independent owner-operators. Independent owner-operators are independent contractors who, through contracts with our operating subsidiaries, supply one or more tractors and drivers for our subsidiaries’ or independent affiliates’ use. Independent owner-operators’ contracts generally are terminable by either party upon short notice.

In exchange for the services rendered, independent owner-operators are normally paid an agreed upon percentage of the revenues collected on each load hauled or on a per mile rate. The percentage of revenues paid to independent owner-operators by us is lower than the percentage paid to our independent affiliates, which have a different cost structure. Independent owner-operators pay all tractor operating expenses such as fuel, physical damage insurance, tractor maintenance, fuel taxes and highway use taxes. However, we reimburse independent owner-operators for certain expenses passed through to our customers, such as tolls and scaling charges.

We compete with other motor carriers for the services of our drivers and independent owner-operators. Our overall size and our reputation for good relations have enabled us to attract qualified professional drivers and independent owner-operators.

Employees and Independent Owner-Operators

At December 31, 2012, we utilized 3,277 drivers of which 2,289 were utilized in our chemical logistics segment, 615 were utilized in our energy logistics segment and 373 were utilized in our intermodal segment. Of this total, 1,370 were independent owner-operators, 1,277 were independent affiliate drivers, and 630 were company employee drivers. Our energy logistics business also provides 3PL services and therefore utilizes other third party carriers.

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Company Personnel

At December 31, 2012, we employed 1,371 personnel (excluding drivers). Of this total, 598 were employed in our energy logistics segment, 460 were employed in our intermodal segment and 313 were employed in our chemical logistics segment.

Union Labor

At December 31, 2012, we had 137 employees and our independent affiliates had 7 employees who were members of the International Brotherhood of Teamsters. All 144 unionized employees are utilized in our chemical logistics segment.

Tractors and Trailers

As of December 31, 2012, we managed a fleet of approximately 2,800 tractors, 5,200 trailers and 1,400 energy logistics equipment utilized by either us, our independent affiliates, independent owner-operators, or shippers. The majority of our trailers are single compartment, chemical-hauling trailers. The balance of the fleet is made up of multi-compartment trailers, dry bulk trailers, and special use energy equipment. The chemical transport units typically have a capacity between 5,000 and 7,800 gallons and are designed to meet DOT specifications for transporting hazardous materials. Each trailer is designed for a useful service life of 15 to 20 years, though this has successfully been extended by us through upgrades and modifications. Each tractor is designed for a useful life of five to seven years, though this can also be extended through upgrades and modifications. Our energy logistics equipment utilized for transporting fresh water and disposal water, typically has a capacity between 4,600 and 5,500 gallons and typically has a useful service life of 4 to 15 years. Our energy logistics equipment utilized for hauling oil, typically has a capacity between 8,000 and 10,000 gallons, is designed to meet DOT specifications, and typically has a useful service life of 10 to 15 years.

We utilize our own and third-party repair shops for inspecting and repairing our fleets. Our systems enable us to determine when inspections and scheduled maintenance needs to be performed.

The following tables show the approximate number and age of tractors, trailers and energy logistics equipment we managed in all of our businesses as of December 31, 2012 and 2011:

TRACTORS (1)	LESS THAN 3 YEARS		3~5 YEARS		6~10 YEARS		GREATER THAN 10 YEARS		2012 TOTAL		2011 TOTAL
Company		490		198		116		8		812		587
Independent Affiliate		331		241		358		111		1,041		1,173
Independent Owner-Operator		50		155		367		350		922		1,042
Total		871		594		841		469		2,775		2,802

TRAILERS (1)(2)	LESS THAN 5 YEARS		5~10 YEARS		11~15 YEARS		16~20 YEARS		GREATER THAN 20 YEARS		2012 TOTAL		2011 TOTAL
Company (3)		601		259		930		890		883		3,563		3,665
Independent Affiliate		139		108		330		273		509		1,359		1,507
Independent Owner-Operator		—		—		—		1		—		1		—
Shipper-Owned		11		137		17		23		44		232		242
Total		751		504		1,277		1,187		1,436		5,155		5,414

ENERGY LOGISTICS EQUIPMENT (4)	LESS THAN 3 YEARS		3~5 YEARS		6~10 YEARS		11-15 YEARS		GREATER THAN 15 YEARS		2012 TOTAL		2011 TOTAL
Company		721		62		85		16		61		945		134
Independent Affiliate		45		—		—		—		—		45		83
Independent Owner-Operator		69		30		110		80		80		369		—
Total		835		92		195		96		141		1,359		217

(1) Age based upon original date of manufacture; tractor/trailer may be substantially refurbished or re-manufactured.

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(2) Excludes approximately 1,500 chassis utilized in the intermodal segment.

(3) Includes approximately 300 chassis utilized in the chemical logistics segment.

(4) Includes tractors, trailers and combination equipment.

Technology

We rely heavily on information technology and communications systems to operate our business and manage our network in an efficient manner. In contrast to many of our smaller competitors, we have equipped our drivers with various mobile communications systems that enable us to monitor our tractors and communicate with our drivers in the field and enable customers to track the location and monitor the progress of their cargo through the Internet. During 2011, we implemented EOBRs within our U.S. chemical logistics network and in 2012 began implementing EOBRs within our intermodal business.

Risk Management, Insurance and Safety

The primary insurable risks associated with our business are motor vehicle related bodily injury and property damage, workers’ compensation and cargo loss and damage (which includes spills, chemical releases and contaminations). We maintain insurance and self-insurance programs against these risks and are subject to liability as a self-insurer to the extent of the deductible under each policy. We currently maintain liability insurance for bodily injury and property damage with an aggregate limit on the coverage in the amount of $40.0 million, with a $2.0 million per incident deductible.

We currently maintain a $1.0 million per incident deductible for workers’ compensation insurance coverage, except in those states where state-run workers’ compensation programs do not provide for deductibles. We are insured over our deductible up to the statutory requirement and we are self-insured for damage or loss to the equipment we own or lease and for cargo losses.

We employ personnel to perform compliance checks and conduct safety tests throughout our operations. A number of safety programs are conducted that are designed to promote compliance with rules and regulations and to reduce accidents and cargo claims. These programs include training programs, driver recognition programs, safety awards, driver safety meetings, distribution of safety bulletins to drivers and participation in national safety associations.

Environmental Matters

It is our policy to comply with all applicable environmental, safety and health laws. We also are committed to the principles of Responsible Care^®, an international chemical industry initiative to enhance the industry’s responsible management of chemicals. We have obtained independent certification that our management system is in place and functions according to professional standards and we continue to evaluate and continuously improve our Responsible Care^® Management System performance. Our current activities involve the handling, transportation and storage of bulk chemicals, both liquid and dry, disposal water, and crude oil, which in many cases are classified as hazardous materials or hazardous substances. The energy logistics business operates disposal wells for non-conventional oil drilling wastewater. In addition, our former tank wash business (which was sold in 2009) and the remaining limited tank wash activities involve the generation, storage, discharge and disposal of wastes that may contain hazardous substances. As such, we and others who operate in our industry are subject to environmental, health and safety laws and regulation by U.S. federal, state and local agencies as well as foreign governmental authorities. Environmental laws and regulations are complex, and address emissions to the air, discharge onto land or water, and the generation, handling, storage, transportation, treatment and disposal of waste materials. These laws change frequently and generally require us to obtain and maintain various licenses and permits. Environmental laws have tended to become more stringent over time, and most provide for substantial fines and potential criminal sanctions for violations. Some of these laws and regulations are subject to varying and conflicting interpretations. Under certain of these laws, we could also be subject to allegations of liability for the activities of our independent affiliates or independent owner-operators.

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We are potentially subject to strict, joint and several liability for investigating and rectifying the consequences of spills and other releases of such substances. From time to time, we have incurred remedial costs and regulatory penalties with respect to chemical or wastewater spills and releases at our facilities and on the road, and, notwithstanding the existence of our environmental management program, we cannot: (1) assure that such obligations will not be incurred in the future, (2) predict with certainty the extent of future liabilities and costs under environmental, health, and safety laws, or (3) assure that such liabilities will not result in a material adverse effect on our business, financial condition, operating results or cash flow. We have established reserves for remediation expenses at known contamination sites when it is probable that such efforts will be required of us and the related expenses can be reasonably estimated. We have also incurred in the past, and expect to incur in the future, expenditures related to environmental compliance; however, we do not anticipate that compliance with existing environmental laws will have a material adverse effect on our earnings or competitive position.

Environmental Reserves

Our policy is to accrue remediation expenses when it is probable that such efforts will be required and the related expenses can be reasonably estimated. Estimates of costs for future environmental compliance and remediation may be impacted by such factors as changes in environmental laws and regulatory requirements, the availability and application of technology, the identification of currently unknown potential remediation sites and the allocation of costs among the potentially responsible parties under the applicable statutes. Our reserves for environmental compliance and remediation are adjusted periodically as remediation efforts progress or as additional technical or legal information becomes available. It is difficult to quantify with certainty the potential financial impact of actions regarding expenditures for environmental matters, particularly remediation, and future capital expenditures for environmental control equipment. Nevertheless, based upon the information currently available, we believe that our ultimate liability arising from such environmental matters, taking into account the reserves described below, should not be material to our business or financial condition. As of December 31, 2012 and 2011, we had reserves in the amount of $9.0 million and $10.1 million, respectively, for all environmental matters, of which the most significant are presented and discussed below.

	Number of Sites				Reserves (in millions)
	December 31, 2012		December 31, 2011		December 31, 2012		December 31, 2011
Multi-party sites		15		18	$	1.7	$	2.2
Sole party sites:
Bridgeport, New Jersey		1		1		4.8		5.3
William Dick, Pennsylvania		1		1		0.7		0.9
Other Properties		6		6		1.8		1.7
Total		23		26	$	9.0	$	10.1

The foregoing amounts include estimates for future expenditures over the next five years that we believe are probable and are reasonably estimable. The estimate of the range of reasonably possible costs is less certain than the estimates upon which the reserves are based, and the estimated high ends of the ranges do not represent our maximum theoretical liability.

Changes to the environmental reserves are reflected in our Consolidated Statements of Operations within the “Selling and administrative” category.

Property Contamination Liabilities—Multi-Party Sites

We have been named as (or are alleged to be) a potentially responsible party under the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended (“CERCLA”) and similar state laws at approximately 23 sites. At 15 of the 23 sites, we are one of many parties with alleged liability and are negotiating with Federal, State or private parties on the scope of our obligations, if any. At 1 of the 15 sites, we are participating in the initial study to determine site remediation objectives. Since our overall liability cannot be estimated at this time, we have set reserves for only the initial remedial investigation phase. At 2 of the 15 sites, we have explicitly denied any liability and since there has been no subsequent demand for payment we have not established a reserve for these matters. We have estimated all future expenditures for these 15 multi-party environmental matters to be paid over the next five years to be in the range of $1.7 million to $3.8 million. As of December 31, 2012, we have reserved $1.7 million.

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Sole Party Sites

At 8 of the 23 sites, we are alleged to be the only responsible party and are in the process of conducting investigations and/or remediation projects. Five of these projects relate to operations conducted by CLC and its subsidiaries prior to our acquisition of CLC in 1998. These five sites are: (1) Bridgeport, New Jersey; (2) William Dick, Pennsylvania; (3) Tonawanda, New York; (4) Scary Creek, West Virginia; and (5) Charleston, West Virginia. The remaining three sites relate to investigations and potential remediation that were triggered by the New Jersey Industrial Site Recovery Act (“ISRA”), which requires such investigations and remediation following the sale of industrial facilities. Each of these five CLC sites is discussed in more detail below. We have estimated future expenditures over the next five years for these eight properties to be in the range of $7.3 million to $16.7 million. As of December 31, 2012, we have reserved $7.3 million.

Bridgeport, New Jersey

QDI is required under the terms of three federal consent decrees to perform remediation work at this operating truck terminal and tank wash site. CLC entered into consent orders with the U.S. Environmental Protection Agency (“USEPA”) in 1991 to treat groundwater, in 1998, to remove contamination in the wetlands, and in 2010, to assess and remediate contaminated soils at the site.

The groundwater treatment remedy negotiated with USEPA required us to construct a treatment facility for in-place treatment of groundwater contamination and a local discharge which was completed in early 2007. After various start-up issues, the treatment facility began long-term operations in July 2011 and is in the operations and maintenance phase. The plant appears to be performing in accordance with its design criteria and meeting permit requirements. Wetlands contamination has been remediated with localized restoration completed. Monitoring of the restored wetlands is required by USEPA to continue in 2012, and USEPA has requested additional monitoring through 2017. In regard to contaminated soils, USEPA finalized the feasibility study and issued a record of decision in 2009 for the limited areas that show contamination and warrant additional investigation or work. We entered into a consent order with USEPA, in 2010, to perform the remediation work, which will consist of in-place thermal treatment. In late 2012, USEPA concluded that our additional required site investigation work for delineation purposes is now complete. The preliminary engineering design effort for the contaminated soils was started. We have estimated aggregate expenditures for the Bridgeport location over the next five years to be in the range of $4.8 million to $8.5 million. As of December 31, 2012, we have reserved $4.8 million.

William Dick, Pennsylvania

CLC entered into a consent order with the Pennsylvania Department of Environmental Protection and USEPA in 1995 to provide a replacement water supply to area residents, treat contaminated groundwater, and perform remediation of contaminated soils at this former wastewater disposal site. The replacement water supply is complete. We completed construction of a groundwater treatment facility with local discharge in 2007 and the treatment facility began operations in 2010. Although initial soil treatment was completed in 2007, test results indicated that soil clean-up objectives were not fully achieved. Soil piles from isolated discrete removal actions were subsequently treated on-site; we are awaiting approval from USEPA that this work is complete. Negotiations are on-going with USEPA over further limited soil remediation consisting of targeted in-situ chemical treatment that may be needed at the site. We have estimated aggregate expenditures for the William Dick location over the next five years to be in the range of $0.7 million to $3.4 million. As of December 31, 2012, we have reserved $0.7 million.

Other Properties

Tonawanda, New York: CLC entered into a consent order with the New York Department of Environmental Conservation (“NYSDEC”) in 1999 obligating it to perform soil and groundwater remediation at this former truck terminal and tank wash site. The remedial design work plan has been approved by the NYSDEC and the remedial action phase is expected to begin in 2013.

Scary Creek, West Virginia: CLC received a cleanup notice from the state environmental authority in 1994. The state and we have agreed that remediation can be conducted under the state’s voluntary clean-up program (instead of the state superfund enforcement program). We are currently completing the originally planned remedial investigation and the additional site investigation work.

Charleston, West Virginia: CLC completed its remediation plan for a former drum disposal area in 1995 at this truck terminal and tank wash site under the terms of a state hazardous waste permit. Supplemental groundwater monitoring was also required and completed. In 2012, we entered into the state’s voluntary clean-up program which requires us to perform additional sampling to close the site. Initial sampling work has commenced at the site.

ISRA New Jersey Facilities: We are obliged to conduct investigations and remediation at three current or former New Jersey tank wash and terminal sites pursuant to the state’s ISRA, which requires such remediation following the sale of facilities after 1983. Two of the sites are in the process of remedial investigation with projections set in contemplation of limited soil remediation expense for contaminated areas.

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One site has completed the investigation phase and a final report was submitted to New Jersey Department of Environmental Protection. In accordance with the report findings and with the concurrence of the NJDEP, remedial efforts included limited soil excavation at the site, deed recordation, placement of clean fill and the designation of a Classification Exception Area for the groundwater. No further field remediation work is expected and this site has entered a long term monitoring phase.

We have estimated aggregate future expenditures over the next five years for Tonawanda, Scary Creek, Charleston and ISRA New Jersey to be in the range of $1.8 million to $4.8 million. As of December 31, 2012, we have reserved $1.8 million.

Other Legal Matters

We are from time to time involved in routine litigation incidental to the conduct of our business. We believe that no such routine litigation currently pending against us, if adversely determined, would have a material adverse effect on our consolidated financial position, results of operations or cash flows.

Motor Carrier and Other Regulation

As a motor carrier, we are subject to regulation by the FMCSA, which is a unit of the DOT. The FMCSA enforces comprehensive trucking safety regulations and performs certain functions relating to such matters as motor carrier registration, cargo and liability insurance, extension of credit to motor carrier customers, and leasing of equipment by motor carriers from independent owner-operators. There are additional regulations specifically relating to the tank truck industry, including testing and specifications of equipment and product handling requirements. We may transport most types of freight to and from any point in the United States over any route selected by us. The trucking industry is subject to possible and anticipated regulatory and legislative changes, including changes contemplated by the Moving Ahead for Progress in the 21^st Century Act (“Map-21”), that may affect the economics of the industry by requiring changes in operating practices, restricting and taxing emissions or by changing the demand for common or contract carrier services or the cost of providing services. Some of these possible changes may include increasingly more stringent environmental regulations, increasing control over the transportation of hazardous materials, changes in the hours-of-service regulations which govern the amount of time a driver may drive in any specific period of time, safety-based driver hiring restrictions, heightened bonding or insurance requirements, limits on vehicle weight and size and changes intended to address climate change. Map-21 requires the U.S. Department of Transportation to promulgate rules and regulations mandating the use of EOBRs.

Interstate motor carrier operations are subject to safety requirements prescribed by the DOT. To a large degree, intrastate motor carrier operations are subject to safety and hazardous material transportation regulations that mirror federal regulations. Such matters as weight and dimension of equipment are also subject to federal and state regulations. DOT regulations mandate drug and alcohol testing of drivers and other safety personnel. In 2012, we underwent a compliance review by the FMCSA in which we retained our satisfactory DOT safety rating. Any downgrade in our DOT safety rating (as a result of the new CSA regulations described below, or otherwise) could adversely affect our business.

The FMCSA rates individual driver safety performance inclusive of all driver violations over 3-year time periods under the CSA. CSA is an FMCSA initiative designed to provide motor carriers and drivers with attention from FMCSA and state partners about their potential safety problems with an ultimate goal of achieving a greater reduction in large truck and bus crashes, injuries, and fatalities. Prior to these regulations, only carriers were rated by the DOT and the rating only included out-of-service violations and ticketed offenses associated with out-of-service violations. Under the CSA, the FMCSA may deem carriers with poor safety performance unfit to operate, which serves to prohibit the carrier from operating until its safety fitness determination improves.

Title VI of The Federal Aviation Administration Authorization Act of 1994 generally prohibits individual states, political subdivisions thereof and combinations of states from regulating price, entry, routes or service levels of most motor carriers. However, the states retained the right to continue to require certification of carriers, based upon two primary fitness criteria—safety and insurance—and retained certain other limited regulatory rights. Included in those rights, certain states require motor carriers to register with a state if operating on an intrastate basis within that state. In those states in which we operate on an intrastate basis and are required to obtain certifications or permits allowing us to so operate, we obtain those certifications or permits.

We are subject to compliance with cargo security and transportation regulations issued by the Transportation Security Administration and by the Department of Homeland Security, including regulation by the Bureau of Customs and Border Protection. We believe that we will be able to comply with Bureau of Customs and Border Protection rules, requiring pre-notification of cross-border shipments, with no material effect on our operations. We are also subject to the motor carrier laws of Canada and Mexico.

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From time to time, various legislative proposals are introduced including proposals to increase federal, state, or local taxes, including taxes on motor fuels, which may increase our costs and adversely impact the recruitment of drivers. We cannot predict whether, or in what form, any increase in such taxes applicable to us will be enacted.

During 2010, we began marketing transportation services to the oil, gas and frac shale energy market. Material regulatory regimes specifically designed to regulate this industry are not currently in place. However, certain Congressional bills have been advanced that, if enacted, would subject this industry to governmental regulation. Further, federal and state environmental and other agencies might enact rules under existing statutory authority to govern this industry. The enactment of legislation regulating the frac shale natural gas and oil drilling industry, or the exercise of rulemaking authority by governmental agencies, could have a material adverse effect on the customers we serve in this industry, and accordingly could adversely affect demand for our energy logistics services, impact the profitability of this business or subject us to additional regulation.

The federal Oil Pollution Act was enacted in 1990 and amends provisions of the Federal Water Pollution Control Act of 1972, the federal Clean Water Act, and other statutes as they pertain to prevention and response to oil spills. The Oil Pollution Act, and analogous state and local laws, subject owners of facilities used for storing, handling or transporting oil, including trucks, to strict, joint and potentially unlimited liability for containment and removal costs, natural resource damages and certain other consequences of an oil spill, where such spill is into navigable waters, along shorelines or in the exclusive economic zone of the United States.

Disposal wells are subject to the federal Clean Water Act, the Safe Drinking Water Act, state and local laws and regulations relating to all such laws, including those established by the Underground Injection Control Program of the EPA. All of our disposal wells require a permit for operation. These permits may be suspended or modified if a well operation is likely to result in pollution of fresh water, substantial violation of permit conditions or applicable rules, or if the well leaks. Any loss or modification of permit would adversely affect our operation of the affected well, and we could incur substantial costs to return the well to compliance, to close the well and to mitigate any impact on the environment.

Corporate Information

QDI is a Florida corporation formed in 1994. QDI is a holding company with no significant assets or operations other than the ownership of 100% of the membership units of QD LLC. QD LLC in turn owns direct and indirect interests in our operating subsidiaries.

ADDITIONAL INFORMATION AVAILABLE ON COMPANY WEBSITE

Our most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and amendments to those reports may be viewed or downloaded electronically or as paper copies from our website: http://www.qualitydistribution.com as soon as reasonably practicable after we electronically file such material with, or furnish it to, the SEC. Our recent press releases are also available to be viewed or downloaded electronically at http://www.qualitydistribution.com. We will also provide electronic or paper copies of our SEC filings free of charge on request. We regularly post or otherwise make available information on the Investor Relations section of our website that may be important to investors. Any information on or linked from our website is not incorporated by reference into this Annual Report on Form 10-K.

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ITEM 1A. RISK FACTORS

Risks Related to Our Business

Our business is subject to general and industry specific economic factors that are largely out of our control and could affect our operations and profitability.

Our business is dependent on various economic factors over which we have little control, that include:

• the availability of qualified drivers;

• access to the credit and capital markets;

• changes in regulations concerning shipment and storage of material we transport and depot;

• increases in fuel prices, taxes and tolls;

• increases in costs of equipment;

• interest rate, natural gas, oil and currency fluctuations;

• excess capacity in the chemical logistics, energy logistics or intermodal industry;

• changes in laws or regulations or changes in license and regulatory fees;

• potential disruptions at U.S. ports of entry;

• downturns in customers’ business cycles; and

• reductions in customers’ shipping requirements.

As a result, we may experience periods of overcapacity, declining prices, lower profit margins and less availability of cash in the future. We have a large number of customers in the chemical-processing, oil, gas, and consumer-goods industries. If these customers experience fluctuations in their business activity due to an economic downturn, work stoppages, commodity price changes or other industry conditions, transportation and other services provided by us on behalf of those customers may decrease. The volume of shipments of chemical products is affected by many other industries and end use markets. Natural gas and oil drilling is affected by the market prices for those commodities.

Our debt agreements contain restrictions that could limit our flexibility in operating our business.

Our ABL Facility and the indentures governing our 9.875% Second-Priority Senior Secured Notes due 2018 (the “2018 Notes”) contain covenants that limit or prohibit our ability, among other things, to:

• incur or guarantee additional indebtedness or issue certain preferred shares;

• redeem, repurchase, make payments on or retire subordinated indebtedness or make other restricted payments;

• make certain loans, acquisitions, capital expenditures or investments;

• sell certain assets, including stock of our subsidiaries;

• enter into sale and leaseback transactions;

• create or incur liens;

• consolidate, merge, sell, transfer or otherwise dispose of all or substantially all of our assets; and

• enter into certain transactions with our independent affiliates.

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These covenants may prohibit or impair us from taking actions that we believe are best for our business and shareholders. Furthermore, under the ABL Facility, we may be required to satisfy and maintain specified financial ratios under certain conditions. Our ability to meet those financial ratios can be affected by events beyond our control, and we may not meet those ratios. In addition, covenants in our debt agreements limit our use of proceeds from our ordinary operations and from extraordinary transactions. These limits may require us to apply proceeds in a certain manner or prohibit us from utilizing the proceeds in the manner we believe most beneficial.

A failure to comply with any of the covenants contained in the ABL Facility or our other indebtedness could result in an event of default, which, if not cured or waived, could have a material adverse effect on our business, financial condition and results of operations. In the event of default, the lenders of the defaulted indebtedness:

• would not be required to lend any additional amounts to us under the ABL Facility;

• could elect to declare all borrowings outstanding, together with accrued and unpaid interest and fees, to be due immediately and terminate all commitments to extend further credit; or

• could require us to apply all of our available cash to repay these borrowings.

Such actions by the lenders could cause cross defaults under our other indebtedness. If we were unable to repay amounts under the ABL Facility, the lenders under the ABL Facility could proceed against the collateral granted to them to secure that indebtedness. If any of our indebtedness is accelerated, there can be no assurance that our assets would be sufficient to repay such indebtedness in full.

We have substantial indebtedness and may not be able to make required payments on our indebtedness.

We had consolidated indebtedness and capital lease obligations, including current maturities, of $418.8 million as of December 31, 2012. We must make regular payments under the ABL Facility and our capital leases and semi-annual interest payments under our 2018 Notes.

Our 2018 Notes issued in the quarter ended December 31, 2010 carry high fixed rates of interest. In addition, interest on amounts borrowed under our ABL Facility is variable and will increase as market rates of interest increase. We do not presently hedge against the risk of rising interest rates. Our higher interest expense may reduce our future profitability. Our future higher interest expense and future redemption obligations could have other important consequences with respect to our ability to manage our business successfully, including the following:

• it may make it more difficult for us to satisfy our obligations for our indebtedness, and any failure to comply with these obligations could result in an event of default;

• it will reduce the availability of our cash flow to fund working capital, capital expenditures and other business activities;

• it increases our vulnerability to adverse economic and industry conditions;

• it limits our flexibility in planning for, or reacting to, changes in our business and the industry in which we operate;

• it may make us more vulnerable to further downturns in our business or the economy; and

• it limits our ability to exploit business opportunities.

The ABL Facility matures August 2016. However, the maturity date of the ABL Facility may be accelerated if we default on our obligations. If the maturity of the ABL Facility and/or such other debt is accelerated, we may not have sufficient cash on hand to repay the ABL Facility and/or such other debt or be able to refinance the ABL Facility and/or such other debt on acceptable terms, or at all. The failure to repay or refinance the ABL Facility and/or such other debt at maturity would have a material adverse effect on our business and financial condition, would cause substantial liquidity problems and may result in the bankruptcy of us and/or our subsidiaries. Any actual or potential bankruptcy or liquidity crisis may materially harm our relationships with our customers, suppliers and independent affiliates.

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Our ability to satisfy our interest and principal payment obligations will depend upon, among other things:

• our future financial and operating performance, which will be affected by many factors beyond our control; and

• our future ability to borrow under the ABL Facility, the availability of which depends on, among other things, our complying with the covenants in the ABL Facility.

We may not generate sufficient cash flow from operations, and we may not be able to draw under the ABL Facility, in an amount sufficient to fund our liquidity needs. If our cash flows and capital resources are insufficient to service our indebtedness or fund our operations, we may be forced to reduce or delay capital expenditures, sell assets, seek additional capital or restructure or refinance our indebtedness. Our ability to restructure or refinance our debt will depend on the condition of the capital markets and our financial condition at such time. Any refinancing of our debt could be at higher interest rates and may require us to comply with more onerous covenants, which could further restrict our business operations. If we are not able to refinance any of our indebtedness, sell assets or raise capital on commercially reasonable terms, or at all, or for sufficient proceeds, we could default on our obligations and impair our liquidity. Our inability to generate sufficient cash flow to satisfy our debt obligations or to refinance our obligations on commercially reasonable terms would have a material adverse effect on our business, financial condition, results of operations or cash flows.

Despite our substantial indebtedness, we may incur significantly more indebtedness, which could have a material adverse effect on our business, financial condition, results of operations or cash flows.

The ABL Facility and the indentures governing the 2018 Notes contain restrictions on our ability to incur additional indebtedness. These restrictions are subject to a number of important qualifications and exceptions, and the indebtedness incurred in compliance with these restrictions could be substantial. Accordingly, we or our subsidiaries could incur significant additional indebtedness in the future. We had $55.2 million available for additional borrowing under the ABL Facility as of December 31, 2012, including a subfacility for letters of credit, and the covenants under our debt agreements would allow us to borrow a significant amount of indebtedness beyond this amount. Additional leverage could have a material adverse effect on our business, financial condition, results of operations or cash flows and could increase the risks described in “Our debt agreements contain restrictions that could limit our flexibility in operating our business,” and “We have substantial indebtedness and may not be able to make required payments on our indebtedness.”

Stock repurchases under our share repurchase program will diminish our cash resources, may not enhance shareholder value and could adversely affect trading in our common stock.

Our Board of Directors has approved a share repurchase program for up to $15.0 million in shares of our common stock. Any repurchases under the program would diminish our cash resources and increase our leverage, which could impact our ability to reduce our indebtedness or pursue other business opportunities that may be more valuable to our shareholders. There is no assurance that we would be able to replenish our cash resources in the future. Share repurchases may not enhance shareholder value as the price of our common stock may decline below our repurchase prices, or the repurchase prices may exceed the intrinsic value of our assets or business. The share repurchase program does not have an expiration date, does not obligate us to acquire a particular number of shares, and may be discontinued at any time. Any discontinuation of or limited repurchases under our program could negatively impact our stock price. Any repurchases would reduce the number of shares available for the public to trade, which could diminish trading volumes, increase the price volatility of our common stock and reduce our equity.

The trucking industry is extremely competitive and fragmented.

The trucking industry is extremely competitive and fragmented. No single carrier in the chemical logistics or energy logistics business has a significant market share. We compete with many other carriers of varying sizes, customers’ private fleets, railroads and, in the energy logistics market, with pipelines which may limit our growth opportunities and reduce profitability. Historically, competition has created downward pressure on the trucking industry’s pricing structure. Some trucking companies with which we compete have greater financial resources than we do.

We believe that the most significant competitive factor that impacts demand for our services is rates, and we may be forced to lower our rates based on our competitors’ pricing decisions, which would reduce our profitability. In fact, certain markets that we serve have experienced fierce price competition in recent years. With respect to certain aspects of our business, we also compete with intermodal transportation, pipelines and railroads. Intermodal transportation has increased in recent years. Growth in such forms of transport could adversely affect our market share, net sales and profit margins. Competition from non-trucking modes of transportation and from intermodal transportation would likely increase if state or federal fuel taxes were to increase without a corresponding increase in taxes imposed upon other modes of transportation.

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Additional trends include current and anticipated consolidation among our competitors which may cause us to lose market share as well as put downward pressure on pricing. Some of our competitors are larger, have greater financial resources and have less debt than we do. As a result, those competitors may be better able to withstand a change in conditions within our industry and in the economy as a whole. If we do not compete successfully, our operating margins, financial condition, cash flows and profitability could be adversely affected.

Our reliance upon independent affiliates and independent owner-operators could adversely affect customer relationships, our operations and our financial performance.

We rely heavily upon independent affiliates and independent owner-operators to perform the services for which we contract with our customers. We believe that our independent affiliate and independent owner-operator relationships can facilitate our financial and operational goals. However, there can be no assurance that the structure will accomplish the goals for which it was created, and our reliance upon independent affiliates and independent owner-operators creates numerous risks for our business. In addition, while certain of these risks are shared characteristics of both independent affiliates and independent owner-operators, the degree of these risks may differ between the two and certain risks may be characteristic of only one.

We contract with our customers to perform the services provided by our businesses. If our independent affiliates or independent owner-operators fail to meet our contractual obligations or otherwise fail to perform in a manner consistent with our requirements, we may be required to utilize alternative service providers at potentially higher prices or with some degree of disruption of the services that we provide to our customers. If we fail to deliver on time, if our contractual obligations are not otherwise met, or if the costs of our services increase, then our profitability and customer relationships could be harmed.

The financial condition and operating costs of our independent affiliates and independent owner-operators are affected by conditions and events that are beyond our and their control. Adverse changes in the financial condition of our independent affiliates and independent owner-operators or increases in their equipment or operating costs could cause them to seek higher revenues or to cease their business relationships with us. The prices we charge our customers could be impacted by such issues, which may in turn limit our pricing flexibility with customers, resulting in fewer customer contracts and decreasing our revenues.

Although our independent affiliates have substantial contractual obligations to us, we do not control them. Independent affiliates may take actions that maximize their short-term profits or other interests even if they are detrimental to us. Due to their importance in our operations, we have loaned money to and entered into other financing arrangements with certain independent affiliates and may do so again. The inability of our independent affiliates to satisfy their obligations to us could result in accounting charges and losses that materially adversely affect our results of operations. We have in certain instances acquired the operations of underperforming independent affiliates and could again in the future. While these acquisitions seek to preserve our customer relationships and the scope of our operations, there is no assurance that they will succeed in doing so. Further, any such acquisition could require the use of liquidity sources, capital investment and management attention and could materially limit our ability to meet our financial and operations objectives.

Independent affiliates and independent owner-operators typically utilize tractors, trailers and other equipment bearing our tradenames and trademarks. If one of our independent affiliates or independent owner-operators is subject to negative publicity, it could reflect on us and have a material adverse effect on our business, brand and financial performance. Under certain laws, we could also be subject to allegations of liability for the activities of our independent affiliates or independent owner-operators.

Competition for qualified independent owner-operators is substantial, and currently and otherwise from time to time there are shortages of available qualified independent owner-operators. Shortages can result from causes beyond our control or from contractual terms or company policies that make contracting with us less desirable to certain owner-operators. Due to the absence of long-term contracts, independent owner-operators can quickly terminate their relationships with us. We may have insufficient driver capacity to meet the needs of our customers and be forced to forego business that would otherwise be available to us. Driver shortages may decrease our revenues and have a material adverse effect on our results of operations.

Our energy logistics business may suffer if production shifts away from or slows in the shale regions in which we have operations.

Our energy logistics business currently serves customers in the oil, gas and frac shale energy market in the Bakken, Eagle Ford, Marcellus, Mississippian Limestone, Permian, Utica and Woodford shale regions. A shale region may yield only oil or gas or both commodities, depending upon the region. In the past, frac shale drilling activity has shifted among shales as the relative prices of oil and gas make drilling for one commodity more profitable than another. Oil or gas drilling may shift away from the shale regions in which we have operations because of these commodity price swings or for other reasons over which we have no control, such as resource discovery, new pipeline access, local drilling costs or state regulation. While certain business assets may be redistributed among shales, assets such as terminals, disposal wells and certain customer contracts are specific to discrete shale regions. Even

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business assets that may be redistributed or repurposed may require time and expenditures for conversion for optimal use in different shale region or for a different service. A drilling shift away from or slowdown in shales in which we have assets could result in asset-related charges and decreased revenues and have a material adverse effect on our results of operations.

There are risks inherent in utilizing disposal wells and other disposal sites in our energy logistics business.

Rights to deposit flowback and/or production water in disposal wells and other disposal sites proximate to our shales are essential to our energy logistics business. We currently achieve these rights in the various shales in which we operate through well ownership and through contracts with third parties. Neither we nor the third parties with whom we contract can control the performance of disposal wells. Even though a well is legally permitted to accept a certain amount of water, there is no assurance that the well or any specific zone in the well will be capable of absorbing an anticipated amount. Disposal wells may also be ruined or rendered unusable during operations due to technical or mechanical difficulties or natural disaster. Disposal wells can encounter problems that render the well unusable even after a period of successful operation. Further, we will be obligated to retire wells that we own following their productive use in compliance with applicable laws. There can be no assurance that we will be able to successfully operate or access any specific disposal well or other disposal site, or will be able to obtain sufficient well or other disposal site access to achieve efficient operation in any shale. There can be no assurance that our estimates of the useful lives and costs of retirement of wells that we own will prove accurate.

We are self-insured and/or have deductible exposure to certain claims and are subject to the fluctuation of the insurance marketplace, all of which could affect our profitability.

The primary accident risks associated with our business are:

• motor-vehicle related bodily injury and property damage;

• workers’ compensation claims;

• environmental pollution liability claims;

• cargo loss and damage; and

• general liability claims.

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We currently maintain insurance for:

• motor-vehicle related bodily injury and property damage claims, covering all employees, independent owner operators and independent affiliates;

• workers’ compensation insurance coverage on our employees and company drivers;

• environmental pollution liability claims; and

• general liability claims.

Our insurance program includes a self insured deductible of $2.0 million per incident for bodily injury and property damage and a $1.0 million deductible for workers’ compensation. In addition, we currently maintain insurance policies with a total limit of $40.0 million, of which $35.0 million is provided under umbrella and excess liability policies and $5.0 million is provided under a truckers’ liability policy. The $2.0 million deductible per incident could adversely affect our profitability, particularly in the event of an increase in the frequency or severity of incidents. Additionally, we are self-insured for damage to the equipment that we own and lease, as well as for cargo losses and such self-insurance is not subject to any maximum limitation. We extend insurance coverage to our independent affiliates and independent owner-operators for (i) motor vehicle related bodily injury, (ii) motor-vehicle related property damage, and (iii) cargo loss and damage. Under this extended coverage, independent affiliates and independent owner-operators are responsible for only a small portion of the applicable deductibles. In addition, even where we have insurance, our insurance policies may not provide coverage for certain claims against us or may not be sufficient to cover all possible liabilities.

We are subject to changing conditions and pricing in the insurance marketplace and we cannot assure you that the cost or availability of various types of insurance may not change dramatically in the future. To the extent these costs cannot be passed on to our customers in increased prices, increases in insurance costs could reduce our future profitability and cash flow.

The trucking industry is subject to regulation, and changes in trucking regulations may increase costs.

As a motor carrier, we are subject to regulation by the FMCSA and the DOT, and by various federal, state, and provincial agencies. These regulatory authorities exercise broad powers governing various aspects such as operating authority, safety, hours of service, hazardous materials transportation, financial reporting and acquisitions. There are additional regulations specifically relating to the trucking industry, including testing and specification of equipment, product-handling requirements and drug testing of drivers. In 2012, we underwent a compliance review by the FMCSA in which we retained our satisfactory DOT safety rating. Any downgrade in our DOT safety rating (as a result of the new CSA regulations described below or otherwise) could adversely affect our business.

In December 2010, the FMCSA began to rate individual driver safety performance inclusive of all driver violations over 3-year time periods under regulations known as the CSA. CSA is an FMCSA initiative designed to provide motor carriers and drivers with attention from FMCSA and state partners about their potential safety problems with an ultimate goal of achieving a greater reduction in large truck and bus crashes, injuries, and fatalities. Prior to these regulations, only carriers were rated by the DOT and the rating only included out-of-service violations and ticketed offenses associated with out-of-service violations.

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The trucking industry is subject to possible regulatory and legislative changes that may affect the economics of the industry by requiring changes in operating practices, emissions or by changing the demand for common or contract carrier services or the cost of providing trucking services. Possible changes include:

• increasingly stringent environmental regulations, including changes intended to address climate change;

• restrictions, taxes or other controls on emissions;

• regulation specific to the fracing industry and logistics providers to the industry;

• changes in the hours-of-service regulations, which govern the amount of time a driver may drive in any specific period;

• requirements leading to accelerated purchases of new trailers;

• mandatory limits on vehicle weight and size;

• driver hiring restrictions;

• increased bonding or insurance requirements; and

• mandatory regulations imposed by the Department of Homeland Security.

From time to time, various legislative proposals are introduced, including proposals to increase federal, state, or local taxes, including taxes on motor fuels and emissions, which may increase our or our independent affiliates’ operating costs, require capital expenditures or adversely impact the recruitment of drivers.

Restrictions on emissions or other climate change laws or regulations could also affect our customers that use significant amounts of energy or burn fossil fuels in producing or delivering the products we carry. We also could lose revenue if our customers divert business from us because we have not complied with their sustainability requirements.

Federal and state legislative and regulatory initiatives could result in increased costs and additional operating restrictions upon us or our oil and gas frac shale energy customers in the energy logistics market.

Frac shale drilling is under significant legislative, regulatory and public scrutiny. Legislation to modify the treatment of hydraulic fracturing under the Safe Drinking Water Act has been proposed in Congress, the EPA is studying the potential environmental impacts of frac shale drilling activities, and the U.S. Department of the Interior has proposed to require companies to publicly disclose the chemicals used in hydraulic fracturing operations on public lands. In addition, some states and localities have adopted, and others are reportedly considering adopting, regulations or ordinances that could restrict frac shale drilling and injection wells in certain circumstances, or that would impose higher taxes, fees or royalties on us or on our energy logistics market customers. For example, North Dakota has adopted regulations requiring the permitting and bonding of injection wells and disclosure of fluids utilized in the hydraulic fracturing process. Similarly, Texas has adopted fluids disclosure requirements. Moreover, public debate over frac shale drilling has been increasing and has reportedly resulted in delays of well permits in some areas.

Future U.S. federal, state or local laws or regulations could significantly restrict, or increase costs associated with, hydraulic fracturing and make it more difficult or costly for producers to conduct hydraulic fracturing operations, which could result in a decline in exploration and production. New laws and regulations, and new enforcement policies by regulatory agencies, could also expressly restrict the quantities, sources and methods of water use and disposal, including in injection wells, and otherwise increase our and our customers’ costs of compliance, which could minimize water use and disposal needs even if other limits on drilling and completing new wells were not imposed. Any decline in exploration and production or any restrictions on water use and disposal could negatively impact our operation of disposal wells, result in a decline in demand for our energy logistics business and have a material adverse effect on our business, financial condition, results of operations and cash flows.

Our operations involve hazardous materials, which could create environmental liabilities.

Our activities, particularly those relating to our handling, transportation, storage and disposal of bulk chemicals, flowback and produced water and oil, are subject to environmental, health and safety laws and regulation by governmental authorities in the United States as well as foreign governmental authorities. Among other things, these environmental laws and regulations address emissions to the air, discharges onto land and into water, the generation, handling, storage, transportation, treatment and disposal of waste materials, and the health and safety of our employees. These laws generally require us to obtain and maintain various licenses and permits. Most environmental laws provide for substantial fines, penalties and potential criminal sanctions for violations. Additionally, we have been, and may in the future be required to obtain financial guarantees, such as letters of credit, for environmental obligations. Environmental, health and safety laws and regulations are complex, change frequently and have tended to

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become stricter over time. Some of these laws and regulations are subject to varying and conflicting interpretations. There can be no assurance that violations of such laws, regulations, permits or licenses will not be identified or occur in the future, or that such laws and regulations will not change in a manner that could impose material costs on us.

As a handler of hazardous substances, we are potentially subject to strict, joint and several liability for investigating and rectifying the consequences of spills, leakage from injection wells and other environmental releases of these substances to surface or subsurface soils, surface water or groundwater. We have incurred remedial costs and regulatory penalties for chemical, crude oil or wastewater spills and releases at our facilities or over the road. As a result of environmental studies conducted at our facilities or at third party sites, we have identified environmental contamination at certain sites that will require remediation and we are currently conducting investigation and remediation projects at eight of our facilities. In addition, we may be liable for environmental damages caused by previous owners of property purchased by us. Future liabilities and costs under environmental, health, and safety laws are not easily predicted, and such liabilities could result in a material adverse effect on our financial condition, results of operations or business reputation.

In addition, we have been named a potentially responsible party at various sites under the CERCLA and other environmental regulatory programs. Our current reserves provided for these sites may prove insufficient, which would result in future charges against earnings. Furthermore, we could be named a potentially responsible party at other sites in the future and the costs associated with such future sites could be material.

Potential disruptions at U.S. ports of entry could adversely affect our business, financial condition and results of operations.

Any disruption of the delivery of intermodal ISO tank containers to those ports where we do business would reduce the number of intermodal tank containers that we transport, store, clean or maintain. This reduced activity may have a material adverse effect on our business, results of operations or financial condition.

If fuel prices increase significantly, our results of operations could be adversely affected.

We are subject to risk with respect to purchases of fuel. Prices and availability of petroleum products are subject to political, economic and market factors that are generally outside our control. Political events in the Middle East, Venezuela, and elsewhere, as well as hurricanes and other weather-related events, and current and future legislation (such as market-based (cap-and-trade) greenhouse gas emissions control mechanisms), also may cause the price of fuel to increase. Because our operations are dependent upon diesel fuel, significant increases in diesel fuel costs could materially and adversely affect our results of operations and financial condition if we are unable to pass increased costs on to customers through rate increases or fuel surcharges. Historically, we have recovered the majority of the increases in fuel prices from chemical logistics and intermodal customers through fuel surcharges. Fuel surcharges that can be collected may not always fully offset the increase in the cost of diesel fuel. To the extent fuel surcharges are insufficient to offset our fuel costs or we are unable to continue passing on increased fuel costs to our customers, our results of operations may be adversely affected.

The loss of qualified drivers or other personnel could limit our growth and negatively affect operations.

During periods of high trucking volumes, there is substantial competition for qualified drivers in the trucking industry. Regulatory requirements, including CSA (discussed above), and an improvement in the economy could reduce the number of eligible drivers. Furthermore, certain geographic areas have a greater shortage of qualified drivers than other areas. We operate in many of the geographic areas where there have been driver shortages in the past and have turned down new business opportunities as a result of the lack of qualified new drivers. Our voluntary implementation of EOBRs prior to implementation of the regulatory requirement resulted in greater driver turnover in 2011 and 2012 and could become an on-going competitive disadvantage until our competitors are compelled to implement EOBRs as we anticipate. Difficulty in attracting qualified personnel, particularly qualified drivers, could require us to increase driver compensation, forego available customer opportunities and underutilize the tractors and trailers in our network. These actions could result in increased costs and decreased revenues. In addition, we may not be able to recruit other qualified personnel in the future.

Our business may be harmed by terrorist attacks, future wars or anti-terrorism measures.

In the aftermath of the terrorist attacks of September 11, 2001, federal, state and municipal authorities have implemented and are implementing various security measures, including checkpoints and travel restrictions on large trucks and fingerprinting of drivers in connection with new hazardous materials endorsements on their licenses. Such existing measures and future measures may have significant costs associated with them which a motor carrier is forced to bear. Moreover, large trucks carrying toxic chemicals are potential terrorist targets, and we may be obligated to take measures, including possible capital expenditures intended to protect our trucks. In addition, the insurance premiums charged for some or all of the coverage currently maintained by us could continue to increase dramatically or such coverage could be unavailable in the future.

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We depend on members of our senior management.

We believe that our ability to successfully implement our business strategy and to operate profitably depends in large part on the continued employment of our senior management team. If members of senior management become unable or unwilling to continue in their present positions, our business or financial results could be adversely affected.

Our goodwill and long-lived assets are subject to potential asset impairment.

At December 31, 2012, goodwill and other intangible assets represented approximately $141.9 million, or approximately 27.6% of our total assets and approximately 39.9% of our non-current assets, the carrying value of which may be reduced if we determine that those assets are impaired. In addition, at December 31, 2012, net property and equipment totaled approximately $190.3 million, or approximately 37.1% of our total assets.

We review for potential goodwill impairment on an annual basis as part of our goodwill impairment testing in the second quarter of each year with a measurement date of June 30, and more often if a triggering event or circumstance occurs making it likely that impairment exists. In addition, we test for the recoverability of long-lived assets at year end, and more often if an event or circumstance indicates the carrying value may not be recoverable. We conduct impairment testing based on our current business strategy in light of present industry and economic conditions, as well as future expectations.

If there are changes to the methods used to allocate carrying values, if management’s estimates of future operating results change, if there are changes in the identified reporting units or if there are changes to other significant assumptions, the estimated carrying values and the estimated fair value of our goodwill could change significantly, and could result in future impairment charges, which could materially impact our results of operations and financial condition.

Although we expect the Greensville, Trojan, Bice and Dunn’s acquisitions to be beneficial, their expected benefits may not be realized, in the time frame anticipated or at all, because of integration or other challenges and we may become liable for liabilities of which we are currently unaware.

Achieving the expected benefits of the Greensville, Trojan, Bice and Dunn’s acquisitions will depend on the timely and efficient integration of their operations, business culture, technology and personnel with our Company. The integration may not be completed as quickly as expected, and if we fail to effectively integrate the companies or the integration takes longer than expected, we may not achieve the expected benefits of the acquisitions. In particular, to date the Bice and Dunn’s acquisitions have not produced results consistent with our expectations. The challenges involved in acquisitions include, among others:

• potential disruption on our ongoing business and distraction of management,

• unexpected loss of key employees or customers of Greensville, Trojan, Bice and Dunn’s,

• conforming Greensville, Trojan, Bice and Dunn’s standards, processes, procedures and controls with our operations,

• hiring additional management and other critical personnel, and

• increasing the scope, geographic diversity and complexity of our operations.

We conducted due diligence investigations of Greensville, Trojan, Bice and Dunn’s operations prior to consummating these acquisitions. However, we cannot assure you that our efforts were sufficient to uncover all material information concerning such operations. As a result of such acquisitions, we may be held liable for risks and liabilities (including environmental-related costs or liabilities at disposal wells previously operated by Bice or Dunn’s or otherwise) of which we are not aware at the present time, some of which may not have been discoverable from our due diligence efforts.

We may be unable to successfully realize all of the intended benefits from future acquisitions, and we may be unable to identify or realize the intended benefits of potential future acquisition candidates.

We may be unable to realize all of the intended benefits of any future acquisitions. As part of our business strategy, we continually evaluate potential future acquisitions, some of which could be material, and engage in discussions with acquisition candidates. We cannot assure you that suitable acquisition candidates will be identified and acquired in the future, that the financing of any such acquisition will be available on satisfactory terms, that we will be able to complete any such acquisition or that we will be able to accomplish our strategic objectives as a result of any such acquisition. Nor can we assure you that our acquisition strategies will be viewed positively by customers or achieve their intended benefits. Often acquisitions are undertaken to improve the operating results of either or both the acquirer and the acquired company and we cannot assure you that we will be successful in this regard. We will encounter various risks in acquiring other companies, including the possible inability to integrate an acquired business into our operations, diversion of management’s attention and unanticipated problems or liabilities, some or all of which could have a material adverse effect on our business, financial condition, and results of operations or cash flows.

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Increased unionization could increase our operating costs or constrain operating flexibility.

Although only approximately 2.4% of our driver population, including independent owner-operators and employees of independent affiliates, was subject to collective bargaining agreements at December 31, 2012, unions such as the International Brotherhood of Teamsters have traditionally been active in the U.S. trucking industry. Unionized workers could disrupt our operations by strike, work stoppage or other slowdown. In addition, our non-union workforce has been subject to unionization efforts in the past, and we could be subject to future unionization. Increased unionization of our workforce could result in higher compensation and working condition demands that could increase our operating costs or constrain our operating flexibility.

If we withdraw from any of our multi-employer pension plans, we will be liable for a proportionate share of such plan’s unfunded vested benefit liabilities upon our withdrawal.

By their nature, multi-employer pension plans carry with them risks that differ from single-employer plans. We contribute to multi-employer pension and postretirement plans in accordance with our collective bargaining agreements. Other, unrelated, employers contribute to (or have contributed to) those multi-employer plans pursuant to their respective collective bargaining agreements. Assets contributed by an employer to a multi-employer pension plan are not segregated into a separate account and are not restricted to provide benefits only to the employees of that contributing employer. If a participating employer to a multi-employer pension plan no longer contributes to the plan, as has happened in the past and may happen in the future, the unfunded obligations of the plan, including obligations to former employees of the no longer-contributing employer, may be borne by the remaining participating employers, such as us. In the event of the termination of a multi-employer pension plan, union decertification, the mass withdrawal of other employers or if we withdraw from a multi-employer pension plan, we would have material liabilities for our share of the unfunded vested liabilities of such plan.

As of December 31, 2012, we contributed to three multi-employer pension plans for employees under collective bargaining agreements. Two of those multi-employer pension plans, the Central States Southeast and Southwest Areas Pension Fund (“Central States plan”) and the New York State Teamsters Conference Pension and Retirement Fund, have been classified as carrying red zone status under the Pension Protection Act of 2006 (the “PPA”), indicating that they are less than 65% funded, while the other multi-employer pension plan to which we contributed, Employer-Teamsters Local Nos. 175 & 505 Pension Trust Fund, is classified as carrying yellow zone status under the PPA, indicating that it is less than 80% funded.

We do not currently intend to withdraw from the remaining three multi-employer pension plans or take any actions that would subject us to payment of contingent obligations upon withdrawal. However, the actions of others could trigger this withdrawal liability. Based on information provided to us from the trustees of these remaining plans, we estimate our portion of the contingent liability in the case of a full withdrawal or termination from these remaining plans to be approximately $73.8 million, of which $68.8 million relates to the Central States plan, and may increase in future years. In the event that we were required to pay this unfunded liability, such payment, if it could be made at all, would have a material impact on our liquidity, operations and financial results.

New markets such as the energy logistics market have risks with which we have limited experience, and we may not be able to operate profitably in these markets and may lose our investment.

We entered into the energy logistics market in 2011 and expanded these activities through a series of acquisitions, as well as through organic growth during 2012. Although we have identified our existing contracts in this market as a source of revenue growth, we may prove unable to perform these contracts and earn anticipated revenue. We have limited experience performing energy logistics services or serving natural gas or oil drilling customers. We plan to leverage our existing network of affiliates to expand our energy market business, but our existing network may prove unsuitable for this new business. Also, our market expansion requires certain capital expenditures for specialized trailers and other start-up costs that we may be unable to recoup.

Hydraulic fracturing is under significant legislative and regulatory scrutiny, the adoption of new laws or regulations at the federal, state or local level could adversely affect our customers’ hydraulic fracturing operations, which could reduce demand for our logistics services. In addition, heightened political, regulatory and public scrutiny of hydraulic fracturing practices could adversely affect our business, financial condition and results of operations, whether directly or indirectly.

As we expand our business into this new market, we may face increased risks due to the cyclical nature of the energy industry. Depending on the market prices of oil and gas, customers in that industry may delay and decrease their capital and development expenditures, reducing the demand for our transportation services. Such market volatility may lead to fluctuations in results of operations from quarter to quarter. Natural gas prices in recent years have been at historic lows, leading some large producers to announce reduced fracing drilling. If this continues, it could reduce our revenues.

Accordingly, there can be no assurance that we will be able to effectively compete in this new market or that our operations in this market will be successful. If we are unsuccessful, our operating margins, financial condition, cash flows and profitability could be adversely affected.

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Risks Related to our Common Stock

We have a single shareholder who can substantially influence the outcome of all matters voted upon by our shareholders and prevent actions which a shareholder may otherwise view favorably.

As of March 1, 2013, Apollo Investment Fund III, L.P. and its affiliated funds (“Apollo”) were our largest shareholder and owned or controlled approximately 17.4% of our outstanding common stock. As a result, Apollo can influence substantially all matters requiring shareholder approval, including the election of directors, the approval of significant corporate transactions such as acquisitions, an unsolicited tender offer and any other matters requiring a vote of shareholders. Three of our board members are partners or employees of Apollo. This concentration of ownership and board representation could delay, defer or prevent a change in control of our Company or impede a merger, consolidation, takeover or other business combination that a shareholder may otherwise view favorably.

Our ability to issue “blank check” preferred stock and Florida law may prevent a change in control of our Company that a shareholder may consider favorable.

Provisions of our articles of incorporation and Florida law may discourage, delay or prevent a change in control of our Company that a shareholder may consider favorable. These provisions include:

• authorization of the issuance of “blank check” preferred stock that could be issued by our Board of Directors to increase the number of outstanding shares in order to control a takeover attempt which the Board viewed unfavorably;

• elimination of the voting rights of shareholders with respect to shares that are acquired without prior Board approval that would otherwise entitle such shareholder to exercise certain amounts of voting power in the election of directors; and

• prohibition on business combinations with interested shareholders unless particular conditions are met.

As a result, these provisions could limit the price that investors are willing to pay in the future for shares of our common stock.

Future sales and issuances of our common stock in the public market may depress our stock price and result in dilution.

The market price of our common stock could decline as a result of sales by our existing shareholders of a large number of shares of our common stock. These sales might also make it more difficult for us to sell additional equity securities at a time and price that we deem appropriate. As of March 1, 2013, there are approximately 27.0 million shares of common stock outstanding. Approximately 5.9 million shares of common stock, as of March 1, 2013, are “restricted securities” as defined in Rule 144 under the Securities Act of 1933 or are held by affiliates.

In addition, as of March 1, 2013, we have 1.4 million shares of common stock available for issuance under our 2012 Equity Incentive Plan. As of March 1, 2013, there were outstanding options for approximately 2.3 million shares and outstanding warrants of less than 0.1 million shares of our common stock. Exercise of the warrants and of options that are in-the-money will result in dilution to existing shareholders in an amount equal to the difference in the market and exercise prices multiplied by the number of shares exercised. In addition, prior to their exercise, these options and warrants may depress the market price for our common stock.

We currently do not intend to pay dividends on our common stock.

We do not expect to pay dividends on our common stock in the foreseeable future. In addition, the ABL Facility and indentures governing our 2018 Notes contain certain restrictions on our ability to pay dividends on our common stock. Accordingly, the price of our common stock must appreciate in order to realize a gain on one’s investment. This may not occur.

ITEM 1B. UNRESOLVED STAFF COMMENTS

None.

ITEM 2. PROPERTIES

Currently, we lease approximately 68,000 square feet for our administrative and corporate office headquarters in Tampa, Florida. We are currently using approximately half of this space, have subleased a portion of the unused space, and are seeking opportunities to sublet the remainder of the unused space. Our chemical logistics business and our energy logistics business do not have separate headquarters. The lease for our corporate headquarters expires in December 2017. The corporate headquarters for our Intermodal business is located in Chalmette, Louisiana, and consists of 20,000 square feet of office space. The lease expires in November 2023. We have no other location that is material to our operations.

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As of December 31, our network terminals and facilities consisted of the following:

	2012 Terminals		2011 Terminals		2010 Terminals
Chemical logistics independent affiliate trucking terminals		79		89		91
Chemical logistics company-operated trucking terminals		10		6		3
Energy logistics independent affiliate energy terminals		2		2		—
Energy logistics company-operated energy terminals		8		—		—
Intermodal container services terminals/depots		9		9		8
Total		108		106		102

We currently own 47 properties. We operate trucking, energy and container services terminals and repair services as well as owning or having disposal rights with respect to 8 disposal wells.

We consider our properties to be in good condition generally and believe that our facilities are adequate to meet our anticipated requirements.

ITEM 3. LEGAL PROCEEDINGS

In addition to those items disclosed under Item 1. “Business—Environmental Matters,” “Business—Other Legal Matters” and Note 20 to our consolidated financial statements contained herein, “Commitments and Contingencies—Environmental Matters,” we are from time to time involved in routine litigation incidental to the conduct of our business. We believe that no such routine litigation currently pending against us, if adversely determined, would have a material adverse effect on our consolidated financial position, results of operations or cash flows.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable

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EXECUTIVE OFFICERS OF THE REGISTRANT

Our executive officers, as of March 1, 2013 were as follows:

Name	Age	Position
Gary R. Enzor	50	Chief Executive Officer and Director
Stephen R. Attwood	61	President and Chief Operating Officer
Joseph J. Troy	49	Executive Vice President and Chief Financial Officer
John T. Wilson	38	Senior Vice President, General Counsel and Secretary
Randall T. Strutz	48	President Quality Carriers

Gary R. Enzor has been a director of QDI since 2008. He has served as our Chief Executive Officer since June 2007 and as President of QDI from November 2005 to July 2010. Mr. Enzor joined QDI in December 2004. Prior to joining QDI, Mr. Enzor served as Executive Vice President and Chief Financial Officer of Swift Transportation since August 2002. Prior to Swift, Mr. Enzor held executive positions with Honeywell International, Dell Computer and AlliedSignal Inc. (now Honeywell International, Inc.).

Stephen R. Attwood joined QDI in July 2008 as Senior Vice President and Chief Financial Officer. He was named President and Chief Operating Officer in July 2010. Prior to joining QDI, Mr. Attwood served as Controller and Vice President of Swift Transportation Co., Inc. Previously, Mr. Attwood held senior management positions with Dell Computer and AlliedSignal Inc. (now Honeywell International, Inc.).

Joseph J. Troy joined QDI in August 2010 as Executive Vice President and Chief Financial Officer. Prior to joining QDI, Mr. Troy held various senior leadership positions with Walter Industries, Inc. (predecessor to Walter Energy), including Executive Vice President and Chief Financial Officer. Prior to that, Mr. Troy held various banking positions with NationsBank and its predecessor institutions. Mr. Troy previously served on the board of directors of Cellu Tissue Holdings, Inc., a producer and seller of tissue papers in the United States. He currently serves on the board of Fisher Communications, Inc., a publicly-traded media company with television, radio, internet and mobile operations throughout the western United States, and various charitable boards.

John T. Wilson joined QDI in July 2012 as our Senior Vice President, General Counsel and Secretary. From March 2011 until July 2012, Mr. Wilson was in private practice. Prior to that, Mr. Wilson held various positions of increasing responsibility at Spectrum Brands Holdings, Inc. and its predecessor Spectrum Brands, Inc. from May 2005 until March 2011, including serving as Spectrum Brands’ General Counsel and Secretary from May 2007 until March 2011. Prior to joining Spectrum Brands, Mr. Wilson was an attorney with the firm of Sutherland Asbill & Brennan LLP.

Randall T. Strutz joined QDI in April of 2010 and serves as President Quality Carriers the Company’s chemical logistics business. Prior to assuming his current position in April 2012, he served as QDI’s Senior Vice President of Sales and New Business Development. Before joining QDI, Mr. Strutz held the position of Chief Executive Officer with Morgan Systems, Inc., from 2008 to 2010. Prior to Morgan Systems, Mr. Strutz worked at Pacer International from 2001 to 2007, where he held the positions of Chief Commercial Officer as well as the President of Rail Brokerage and Chief Operating Officer. From 1988 through 2001, Mr. Strutz held the positions of Financial Manager, Plant Controller, Logistics Manager, Manufacturing Manager, and Plant Manager for Thomson, S.A. Mr. Strutz also worked at Price Waterhouse from 1986 to 1988.

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PART II

ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED SHAREHOLDER MATTERS AND ISSUER’S PURCHASES OF EQUITY SECURITIES

Our common stock is traded on NASDAQ Global Market (“NASDAQ”) under the symbol “QLTY”. The table below sets forth the quarterly high and low sale prices for our common stock as reported on NASDAQ.

	Common Stock
	High		Low
2012
1st quarter	$	14.00	$	10.97
2nd quarter		14.61		9.67
3rd quarter		11.13		8.92
4th quarter		9.50		4.91
2011
1st quarter	$	12.39	$	8.49
2nd quarter		13.65		10.55
3rd quarter		13.53		8.33
4th quarter		12.08		8.01

As of March 1, 2013, there were approximately 62 holders of record of our common stock.

DIVIDEND POLICY

We have not declared cash dividends on our common stock for the periods presented above and have no present intention of doing so. We currently intend to retain our future earnings, if any, to repay debt or to finance the further expansion and continued growth of our business. Additionally, our ABL Facility and the indenture governing our 2018 Notes limit QDI’s ability to pay dividends on its common stock. Future dividends, if any, will be determined by our Board of Directors.

EQUITY COMPENSATION PLAN INFORMATION

The Company currently has one active and two frozen equity compensation plans. A description of our equity based compensation plans can be found in Note 19 of the Notes to Consolidated Financial Statements for the year ended December 31, 2012. Each of these equity compensation plans was approved by our shareholders. The following table sets forth information regarding outstanding options and shares available for future issuance under these plans as of December 31, 2012:

Plan category	Number of shares to be issued upon exercise of outstanding options, warrants and rights (a)		Weighted-average exercise price of outstanding options, warrants and rights (b)		Number of shares remaining available for future issuance under equity compensation plans (excluding shares reflected in column (a)) (c)
Equity compensation plans approved by shareholders		2,505,860	$	6.38		1,922,932
Equity compensation plans not approved by shareholders		—		—		—
Total		2,505,860	$	6.38		1,922,932

ISSUER PURCHASES OF EQUITY SECURITIES

The following table lists QDI’s share repurchases and deemed share repurchases during the three-months ended December 31, 2012. On November 20, 2012, we announced a share repurchase program pursuant to which our Board of Directors authorized the repurchase of up to $15.0 million of our common stock in an open-ended repurchase program (the “Repurchase Program”). Stock has been, and may in the future be, purchased pursuant to the Repurchase Program, from time to time, in the open market or through private transactions, subject to market conditions. Subject to applicable laws, repurchases under the Repurchase Program may be made at such times and in such amounts as we deem appropriate

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and may be made pursuant to Rule 10b5-1. We are not obligated to purchase any shares under the Repurchase Program, and it can be discontinued at any time that we feel additional purchases are not warranted. As of December 31, 2012, we have repurchased approximately 0.6 million shares valued at $3.7 million under the Repurchase Program. The remaining shares deemed repurchased were surrendered by employees in order to satisfy statutory tax withholding obligations in connection with the vesting of stock-based compensation awards.

Period	Total Number of Shares Purchased(1)		Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Program		Maximum Dollar Value of Shares That May Yet Be Purchased Under the Program (in thousands) (2)
November 2012		213,381	$	6.24		192,400	$	13,842
December 2012		392,693	$	6.50		382,305	$	11,342
Total		606,074	$	6.45		574,705	$	11,342

(1) The difference between the Total Number of Shares Purchased and the Total Number of Shares Purchased as Part of Publicly Announced Program reflects shares deemed repurchased that were surrendered by employees in order to satisfy statutory tax withholding obligations in connection with the vesting of stock-based compensation awards.

(2) Represents the amount remaining in the Repurchase Program as of the end of the period noted.

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PERFORMANCE GRAPH

The following graph depicts a comparison of cumulative total shareholder returns for us as compared to the NASDAQ Transportation Index and the NASDAQ Stock Market (U.S.) Index. The graph assumes the investment of $100 on December 31, 2007 through December 31, 2012 and the reinvestment of any dividends issued during the period.

The comparisons shown in the graph above are based upon historical data. We caution that the stock price performance shown in the graph below is not necessarily indicative of, nor is it intended to forecast, the potential future performance of our common stock. Information used in the graph was obtained from Research Data Group.

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ITEM 6. SELECTED FINANCIAL DATA

The selected historical consolidated financial information set forth below is qualified in its entirety by reference to, and should be read in conjunction with, our consolidated financial statements and notes thereto included elsewhere in this report and Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”

The consolidated statements of operations data set forth below for the years ended December 31, 2012, 2011 and 2010 and the historical balance sheet data as of December 31, 2012 and 2011 are derived from our audited consolidated financial statements included under Item 8 of this report. The historical statements of operations data for the years ended December 31, 2009 and 2008 and the historical balance sheet data as of December 31, 2010, 2009 and 2008 are derived from our audited consolidated financial statements that are not included in this report.

	YEAR ENDED DECEMBER 31
	2012			2011		2010			2009			2008
	(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
Statements of Operations Data (1)
Operating revenues	$	842,118		$	745,951	$	686,598		$	613,609		$	815,290
Operating expenses:
Purchased transportation		552,524			522,866		471,792			369,460			462,706
Depreciation and amortization		21,090			14,413		16,004			20,218			21,002
Impairment charge (2)		—			—		—			148,630			—
Other operating expenses		219,361			150,993		162,067			190,477			298,604
Operating income (loss)		49,143			57,679		36,735			(115,176	)		32,978
Interest expense, net		29,258			28,912		35,548			28,047			35,120
Write-off of debt issuance costs		—			3,181		7,391			20			283
Gain on extinguishment of debt		—			—		—			(1,870	)		(16,532	)
Other (income) expense		(2,864	)		214		791			1,912			(2,945	)
Income (loss) before taxes		22,749			25,372		(6,995	)		(143,285	)		17,052
(Benefit from) provision for income taxes		(27,327	)		1,941		411			37,249			4,940
Net income (loss) attributable to common shareholders	$	50,076		$	23,431	$	(7,406	)	$	(180,534	)	$	12,112
Net income (loss) per common share:
Basic	$	1.89		$	1.01	$	(0.36	)	$	(9.28	)	$	0.63
Diluted		1.84			0.96		(0.36	)		(9.28	)		0.62
Weighted average common shares outstanding:
Basic		26,502			23,088		20,382			19,449			19,379
Diluted		27,207			24,352		20,382			19,449			19,539

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	YEAR ENDED DECEMBER 31
	2012			2011			2010			2009			2008
	(DOLLARS IN THOUSANDS, EXCEPT TERMINAL, TRAILER, TRACTOR AND ENERGY LOGISTICS EQUIPMENT DATA)
Other Data (1)
Net cash provided by operating activities	$	17,002		$	35,399		$	21,071		$	39,756		$	19,593
Net cash (used in) provided by investing activities		(131,683	)		(30,458	)		(1,079	)		9,577			(8,524	)
Net cash provided by (used in) financing activities		113,332			(2,642	)		(23,879	)		(50,515	)		(13,485	)
Number of terminals at end of period		108			106			102			108			149
Number of trailers managed at end of period		5,155			5,414			5,738			6,410			7,115
Number of tractors managed at end of period		2,775			2,802			2,901			2,839			3,224
Number of energy logistics equipment managed at end of period		1,359			217			—			—			—
Balance Sheet Data at Year-End (1)
Working capital	$	77,570		$	45,790		$	34,955		$	19,016		$	44,967
Total assets		513,603			302,395			271,335			279,616			502,103
Total indebtedness, including current maturities		418,806			307,063			317,332			321,284			362,586
Shareholders’ (deficit) equity		(18,440	)		(106,185	)		(146,379	)		(140,736	)		31,020

(1) On November 1, 2011, we acquired 100% of the stock of Greensville Transport Company (“Greensville”). The results of Greensville have been included in our results since the date of the acquisition. On April 1, 2012, we acquired certain operating assets of Trojan Vacuum Services (“Trojan”). The results of Trojan have been included in our results since the date of acquisition. On June 1, 2012, we acquired certain operating assets of Wylie Bice Trucking, LLC and the operating assets and rights of RM Resources, LLC, collectively (“Bice”). The results of Bice have been included in our results since the date of acquisition. On August 1, 2012, we acquired certain operating assets of Dunn’s Tank Service, Inc. and the operating assets and rights of Nassau Disposal, Inc., collectively (“Dunn’s”). The results of Dunn’s have been included in our results since the date of acquisition.

(2) The impairment charge resulted from an impairment analysis of goodwill and intangible assets performed during the quarter ended June 30, 2009.

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ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion of our results of operations and financial condition should be read in conjunction with our consolidated financial statements and the related notes included elsewhere in this report. The following discussion includes forward-looking statements. For a discussion of important factors that could cause actual results to differ from results discussed in the forward-looking statements, see “Forward-Looking Statements and Certain Considerations” contained in the Introduction to this report.

OVERVIEW

We operate the largest chemical bulk tank truck network in North America and are also the largest provider of intermodal ISO tank container and depot services in North America. In 2011, we began providing logistics services to the unconventional oil and gas frac shale energy markets. We operate an asset-light business model and service customers across North America through our network of 89 terminals servicing the chemical markets, 9 ISO tank depot services terminals (intermodal) servicing the chemical and other bulk liquid markets and 10 terminals servicing the energy markets.

Chemical Logistics

Through our subsidiary, QCI, we coordinate the transport of a broad range of chemical products and provide our customers with logistics and other value-added services. Through our North American network, we are a core carrier for many of the major companies engaged in chemical processing. We believe the diversity of our customer base, geography and end-markets provide a competitive advantage.

The bulk tank truck market in North America includes all products shipped by bulk tank truck carriers and consists mainly of liquid and dry bulk chemicals (including plastics) and bulk dry and liquid food-grade products. We estimate, based on industry sources, that the highly fragmented North American for-hire segment of the bulk tank transport market generated revenues of approximately $6.4 billion in 2011. We specifically operate in the for-hire chemical and food grade bulk transport market (which we estimated at $4.4 billion in 2011). We believe we have the leading market share (estimated at 15% in 2011) in this sector based on revenues. We believe managing a larger carrier network facilitates customer service and lane density, and provides a more favorable operating cost structure for us and our independent affiliates. As such, we believe we are well-positioned to expand our business.

Chemical bulk tank truck industry growth is generally dependent on volume growth in the industrial chemical industry, the rate at which chemical companies outsource their transportation needs, the overall capacity of the rail system, and, in particular, the extent to which chemical companies make use of the rail system for their bulk chemical transportation needs. We also believe that North American chemical producers will gain a global competitive advantage and grow domestic production (thus shipments which we can service) through the use of low cost energy sources, primarily natural gas and natural gas liquids.

The chemical bulk tank truck industry is characterized by high barriers to entry such as the time and cost required to develop the operational infrastructure necessary to handle sensitive chemical cargo, the financial and managerial resources required to recruit and train drivers, substantial and increasingly more stringent industry regulatory requirements, strong customer relationships and the significant capital investments required to build a fleet of equipment and establish a network of terminals and independent affiliates.

Our transportation revenue in the chemical logistics segment is principally a function of the volume of shipments by the bulk chemical industry, prices, the average number of miles driven per load, our market share and the allocation of shipments between tank truck transportation and other modes of transportation such as rail. Additionally, it is common practice in the bulk tank truck industry for customers to pay fuel surcharges.

Energy Logistics

Our energy logistics business began operations in the second quarter of 2011 primarily as a third party logistics (“3PL”) provider. We operate the business through our subsidiary, QCER. Our energy logistics business services the unconventional oil and gas frac shale energy market through the transportation of crude oil, fresh water, flowback and produced brine water, and the disposal of flowback and produced brine water, as well as providing services ancillary to these activities. During 2012, we expanded our energy logistics business through the following acquisitions:

• On April 1, 2012, we acquired certain operating assets of Trojan Vacuum Services, which operates in the Eagle Ford shale. We paid $8.7 million in cash at closing, plus $1.0 million in cash in January 2013 upon the satisfaction of certain operating and financial performance criteria.

• On June 1, 2012, we acquired certain operating assets of Wiley Bice Trucking, LLC and certain operating assets and rights of RM Resources, LLC, (collectively “Bice”), which operates in the Bakken shale region, for $81.4 million in aggregate consideration, with up to an additional $19.0 million in cash consideration payable one year after the closing date if certain future operating and financial performance criteria are satisfied.

• On August 1, 2012, we acquired certain operating assets of Dunn’s Tank Services, Inc. and its related company Nassau Disposal, Inc., (collectively “Dunn’s”), which operates in the Marcellus, Woodford and Utica shale regions for an aggregate purchase price of $34.3 million, with up to an additional $3.6 million in cash consideration payable one year after the closing date if certain future operating and financial performance criteria are satisfied.

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As of December 31, 2012, we operate in the Bakken, Eagle Ford, Permian, Marcellus, Woodford, Utica and Mississippian Limestone shale regions in North America, all of which drill for both oil and natural gas with the exception of Marcellus, which is solely natural gas. We continue to evaluate the potential for expansion into additional shales, which would provide additional diversification to our business. Our strategy to target multiple resource rich shales helps to diversify our customer offerings, lessen the impact of swings in any one commodity and optimize equipment utilization. We currently operate approximately 1,400 units (tractors, trailers and combination equipment) of energy equipment in this market across a diverse customer base.

Our energy logistics business is primarily involved in fluid management and logistics in the upstream segment of the energy industry, through its services in connection with the establishment of production wells, and the midstream segment of the energy industry, in connection with the transportation of crude oil. We believe the market for services such as those provided by our energy logistics business was approximately $5.0 to $7.0 billion in 2011. The industry is made up of providers that include independent national or regional trucking and logistics companies such as QCER, trucking and logistics companies owned by or dedicated to large oil and gas companies, and local providers focused on one or more particular shales. Energy logistics providers are impacted by the level of new drilling activity, which impact the transportation of fresh water and flowback water used and the provision of related services used in those activities, and the number of active wells, which impacts the transportation of crude oil and produced water and the provision of related services used in those activities. The energy logistics market is also impacted by market prices for oil and gas, which influence the production activities of our customers, the prices they are willing to pay for our services, and the shales in which they operate. We expect regulation of this industry to increase over time but believe that the scope of our operations and our experience with regulation in our chemical logistics business will facilitate our adaptation to new regulations and may provide us with an advantage over some of our competitors.

Intermodal

Our subsidiary, Boasso, provides intermodal ISO tank container transportation and depot services, through terminals located in the eastern half of the United States. In the fourth quarter of 2011, Boasso expanded its operations through the acquisition of Greensville Transport Company, which operates at a port located in Norfolk, Virginia. Boasso’s revenues are impacted by United States chemical import/export volume, in particular the number and volume of shipments through ports at which Boasso has terminals, as well as their market share at those ports.

In addition to intermodal tank transportation services, Boasso provides tank cleaning, heating, testing, maintenance and storage services to customers. Boasso provides local and over-the-road trucking primarily within the proximity of the port cities where its depots are located. Chemical manufacturers have sought to efficiently transport their products on a global basis by utilizing ISO tank containers, and we believe the resulting demand for distributors that can offer a broad range of services within the supply chain will drive future growth in this sector. We believe that our intermodal business will benefit from these trends because of its market leadership, experience and track record.

The intermodal ISO tank container business generally provides services that facilitate the global movement of liquid and dry bulk chemicals, pharmaceuticals and food grade products. The proliferation of global import/export of bulk liquid chemicals has driven the movement of basic manufacturing out of the United States and has resulted in an increase in chemical plant infrastructure to service these off-shore industries. Driven by this globalization, the intermodal ISO tank container market is a growing sector of the overall liquid bulk chemical transportation sector. Demand for intermodal ISO tank containers is impacted by the aggregate volume of imports and exports of chemicals through United States ports. Demand is also impacted by the shift in modes of transportation, from drums to ISO tank containers. Economic conditions and differences among the laws and currencies of foreign nations may also impact the volume of shipments. We operate in the global intermodal ISO tank container transportation and depot services market, which we believe was approximately a $1.0 to $2.0 billion market in 2011.

Our Networks

Our businesses have networks that consist of terminals owned or operated by independent affiliates and terminals owned or operated by us and a driver pool consisting of independent owner-operator drivers, affiliate-employed drivers and company-employed drivers. Independent affiliates are independent companies with which we contract to operate trucking terminals and provide transportation services exclusively on our behalf in defined markets. The independent affiliates generally provide the capital necessary

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to service their contracted business and are also responsible for most of the operating costs associated with servicing the contracted business. Due to several factors, including our ownership of the customer contracts and relationships, our provision of back-office support in areas such as claims, our direct relationship with independent owner-operators,, the presence of non-compete agreements with the independent affiliates, and, in some cases, our ownership of the trailers utilized in the contracted business, our relationships with the independent affiliates tend to be long-term in nature, with minimal voluntary turnover. Independent owner-operators are generally individual drivers who own or lease their tractors and agree to provide transportation services to us under contract.

We believe our use of independent affiliates and independent owner-operators provides us with the following benefits:

• Locally owned and operated independent affiliate terminals can provide superior, tailored customer service.

• Independent affiliates and independent owner-operators generally are paid a fixed, contractual percentage of revenue collected on each load they transport creating a variable cost structure that mitigates against cyclical downturns.

• Reliance on independent affiliates and independent owner-operators creates an asset-light business model that generally reduces our capital investment.

At present, our businesses rely upon independent affiliates and independent owner-operators to varying degrees. Our chemical logistics business operates primarily through independent affiliate terminals located throughout the continental United States and independent owner-operator drivers. Our intermodal business relies primarily on company terminals located near ports in the eastern half of the United States and independent owner-operator drivers. Our energy logistics business currently relies primarily upon company terminals, which will affect the overall mix of our asset-light business, located near shale regions that have historically experienced frac shale drilling for natural gas and oil and independent owner-operator drivers; however, it also operates through independent affiliate terminals in certain shale regions. We expect to continue to add independent affiliates and owner-operators with the goal to reduce the capital burden of this business while improving return on invested capital.

The following table shows the approximate number of terminals, drivers, tractors, trailers, energy logistics equipment and chemical logistics transportation billed miles that we manage (including independent affiliates and independent owner-operators) as of December 31:

	2012		2011		2010
Terminals(1)		108		106		102
Drivers(2)		3,277		2,741		2,730
Tractors		2,775		2,802		2,901
Trailers		5,155		5,414		5,738
Energy logistics equipment(3)		1,359		217		—
Chemical Logistics Transportation Billed Miles (in thousands)		103,347		107,760		115,868

(1) Refer to Item 2. Properties for terminals by segment

(2) Includes approximately 600 and 160 drivers for the energy logistics business as of December 31, 2012 and 2011, respectively.

(3) Includes tractors, trailers and combination equipment.

Recent Significant Transactions

November 2012 Share Repurchase Program

On November 20, 2012, we announced a share repurchase program pursuant to which our Board of Directors authorized the repurchase of up to $15.0 million of our common stock in an open-ended repurchase program (the “Repurchase Program”). Stock has been, and may in the future be, purchased pursuant to the Repurchase Program, from time to time, in the open market or through private transactions, subject to market conditions. We are not obligated to purchase any shares under the Repurchase Program, and it can be discontinued at any time that we feel additional purchases are not warranted. As of December 31, 2012, we have repurchased approximately 0.6 million shares valued at $3.7 million under the Repurchase Program.

October 2012 Acquisition of an Independent Affiliate

Due to financial and operational difficulties encountered by one of our independent affiliates, we terminated our business relationship with this independent affiliate during the third quarter of 2012. On October 17, 2012, we acquired the business, certain operating assets and certain liabilities of this independent affiliate for a purchase price of $17.1 million, paid in cash at closing. Of the total $17.1 million, we allocated $15.5 million to property and equipment and $1.6 million to goodwill. This independent affiliate operated eight terminals within the chemical logistics segment and one terminal within the energy logistics segment. Four chemical logistics terminals were transitioned to other independent affiliates, with the remaining terminals transitioned

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to company operations. During this transition, operating results for the third and fourth quarters of 2012 were adversely impacted in aggregate by $4.4 million of greater than expected operating costs and reduced profitability. Despite the costs involved in the transition, we were able to provide a smooth transition of the servicing of those customers back to us and to other independent affiliates.

September 2012 ABL Facility Amendment

On September 27, 2012, we entered into an amendment to our ABL Facility. The amendment increased our maximum borrowing capacity under the facility from $250.0 million to $350.0 million. The maturity, interest rate and other material terms and conditions under the ABL Facility remained the same.

August 2012 Asset Acquisition—Dunn’s Tank Service and Nassau Disposal, Inc.

On August 1, 2012, we acquired the operating assets of Dunn’s Tank Service, Inc. and the operating assets and rights of Nassau Disposal, Inc., collectively (“Dunn’s”), for an aggregate purchase price of $34.3 million paid in cash. Of the total $34.3 million, we allocated $12.2 million to property and equipment, $17.3 million to goodwill and $4.8 million to intangibles. An additional $3.6 million in cash consideration may be payable if certain future operating and financial performance criteria are satisfied, although we do not currently expect those criteria to be met. Dunn’s is headquartered in Velma, Oklahoma and provides transportation services to the unconventional oil and gas industry within the Marcellus, Woodford and Utica shale regions, primarily hauling flowback and production water for various energy customers. For its fiscal year ended December 31, 2011, Dunn’s had revenues of approximately $17.5 million. Pro forma information for the acquisition has not been presented as the acquisition was deemed immaterial. The results of the Dunn’s acquisition are included in our energy logistics segment from the date of acquisition.

June 2012 Asset Acquisitions—Wylie Bice Trucking, LLC and RM Resources, LLC

On June 1, 2012, we acquired certain operating assets of Wylie Bice Trucking, LLC and the operating assets and rights of RM Resources, LLC, (collectively “Bice”) for an aggregate purchase price of $81.4 million, plus potential additional consideration of $19.0 million, to be paid in cash, subject to Bice achieving certain future operating and financial performance criteria. Headquartered in Killdeer, ND, Bice provides transportation services to the unconventional oil and gas frac shale industry within the Bakken shale region, primarily hauling fresh water, flowback and production water, and oil for numerous energy and other customers. The flowback and production water Bice hauls is primarily disposed of utilizing five salt water injection wells we originally purchased from Bice. In accordance with the asset purchase agreement, Bice delivered a sixth disposal well in December 2012. On a combined basis for its fiscal year ended December 31, 2011, Bice had revenues of approximately $106.0 million. Unaudited pro forma consolidated results for these acquisitions are presented in Note 1 of Notes to Consolidated Financial Statements included in Item 1 of this report. The results of the Bice acquisitions are included in our energy logistics segment from the date of acquisition.

April 2012 Asset Acquisition—Trojan Vacuum Services

On April 1, 2012, we acquired certain operating assets of Trojan Vacuum Services (“Trojan”). The purchase price was $8.7 million, paid in cash at closing, plus $1.0 million paid in cash upon satisfaction of certain operating and financial performance criteria. Of the total $8.7 million, we allocated $4.1 million to property and equipment, $4.3 million to intangibles and $0.3 million to goodwill. In January 2013, the full $1.0 million was paid in cash as the operating and financial performance criteria were met. Trojan is headquartered in Pleasanton, TX and provides transportation service to the unconventional oil and gas industry within the Eagle Ford shale region, primarily hauling flowback and production water for various energy customers. For its fiscal year ended December 31, 2011, Trojan had revenues of approximately $13.5 million. Pro forma information for the acquisition has not been presented as the acquisition was deemed immaterial. The results of the Trojan acquisition are included in our energy logistics segment from the date of acquisition.

March 2012 Common Stock Offering

On March 13, 2012, we sold 2.5 million shares of our common stock in an underwritten public offering, at a gross price of $13.00 per share, and received net proceeds, after underwriting fees and expenses, of approximately $30.5 million. Certain affiliates of Apollo Management, L.P. also sold 3.2 million shares in the offering. We used our net cash proceeds to repay outstanding borrowings under our ABL Facility.

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November 2011 Intermodal Acquisition—Greensville Transport Services

On November 1, 2011, Boasso acquired all of the outstanding stock of Greensville Transport Company (“Greensville”). The initial purchase price was $8.6 million, paid in cash. Of the total $8.6 million, we allocated $3.5 million to goodwill, $2.5 million to intangibles, $1.4 million to accounts receivable and $1.2 million to property and equipment. An additional $0.5 million was paid in cash in December 2012 upon satisfaction of certain operating and financial performance criteria. An additional $0.5 million was paid in cash for a Section 338(h)(10) tax election and a working capital adjustment. Greensville is headquartered in Chesapeake, Virginia and is a leading provider of ISO tank container and depot services with access to ports in Virginia, Maryland and South Carolina. Pro forma information for the acquisition has not been presented as the acquisition was deemed immaterial. The results of the Greensville acquisition are included in our intermodal segment from the date of acquisition.

August 2011 ABL Facility Refinancing

On August 19, 2011, we entered into a credit agreement for a new senior secured asset-based revolving credit facility (the “ABL Facility”). The ABL Facility provides for a revolving credit facility with a maturity of five years and initially had a maximum borrowing capacity of $250.0 million. The ABL Facility includes a sublimit of up to $150.0 million for letters of credit and up to $30.0 million for swingline borrowings on same-day notice. The ABL Facility replaced our previous asset-based revolving credit facility entered into on December 18, 2007 and its related collateral arrangements and guarantees.

February 2011 Common Stock Offering

On February 9, 2011, we sold 2.0 million shares of our common stock in an underwritten public offering, at a gross price of $9.50 per share, and received net proceeds, after underwriting fees and expenses, of approximately $17.6 million. Certain affiliates of Apollo Management, L.P. also sold 2.6 million shares in the offering. Pursuant to the offering, we used our net cash proceeds to redeem $17.5 million of our 11.75% Senior Subordinated PIK Notes due 2013 (“2013 PIK Notes”) at par, plus accrued and unpaid interest on March 11, 2011.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

Our discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements, which have been prepared in accordance with Generally Accepted Accounting Principles (“GAAP”). We believe the following are the more critical accounting policies that impact the financial statements, some of which are based on management’s best estimates available at the time of preparation. Actual future experience may differ from these estimates.

Property and equipment—Property and equipment expenditures, including tractor and trailer rebuilds that extend the useful lives of such equipment, are capitalized and recorded at cost. For financial statement purposes, these assets are depreciated using the straight-line method over the estimated useful lives of the assets to an estimated salvage value.

The asset lives used are presented in the following table:

	Average Lives (in years)
Buildings and improvements	10 - 25
Tractors and terminal equipment	5 - 7
Trailers	15 - 20
Energy logistics equipment	4 - 15
Disposal wells	5 - 15
Furniture and fixtures	3 - 5
Other equipment	3 - 10

Building improvements are recorded at the shorter of the lease term or useful life. Tractor and trailer rebuilds, which are recurring in nature and extend the lives of the related assets, are capitalized and depreciated over the period of extension, generally 3 to 10 years, based on the type and extent of these rebuilds. Maintenance and repairs are charged directly to expense as incurred. Management estimates the useful lives of these assets based on historical trends and the age of the assets when placed in service. Any changes in the actual lives could result in material changes in the net book value of these assets. Additionally, we estimate the salvage values of these assets based on historical sales or disposals, and any changes in the actual salvage values could also affect the net book value of these assets.

Furthermore, we evaluate the recoverability of our long-lived assets whenever adverse events or changes in the business climate indicate that the expected undiscounted future cash flows from the related asset may be less than previously anticipated. If the net book value of the related asset exceeds the undiscounted future cash flows of the asset, the carrying amount would be reduced to the present value of its expected future cash flows and an impairment loss would be recognized. This analysis requires us to make significant estimates and assumptions in projecting future cash flows, and changes in facts and circumstances could result in material changes in the amount of any write-offs for impairment.

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Goodwill and Intangible Assets—We evaluate goodwill and indefinite-lived intangible assets for impairment at least annually during the second quarter with a measurement date of June 30, and more frequently if indicators of impairment arise, in accordance with Financial Accounting Standards Board (“FASB”) guidance on goodwill and other intangible assets. We evaluate goodwill for impairment by determining the fair value for each reporting unit to which our goodwill relates. At December 31, 2012, our energy logistics, intermodal and chemical logistics segments contain goodwill and other identifiable intangible assets associated with past and recent acquisitions.

The methodology applied in the analysis performed at June 30, 2012 was consistent with the methodology applied in prior years, but was based on updated assumptions, as appropriate. As a result of our analysis, we concluded no impairment had occurred as of June 30, 2012, 2011 and 2010. We continued to evaluate indicators of impairment quarterly following our annual goodwill impairment test at June 30, 2012 through December 31, 2012. There were no indications that a triggering event has occurred. As of December 31, 2012, we had total goodwill of $104.3 million, of which $71.3 million was allocated to our energy logistics segment, $31.4 million was allocated to our intermodal segment and $1.6 million was allocated to our chemical logistics segment. As of December 31, 2012, we had total intangibles of $37.7 million, of which $20.9 million was allocated to our energy logistics segment, $16.6 million was allocated to our intermodal segment and $0.2 million was allocated to our chemical logistics segment.

Goodwill

Under the FASB guidance, the process of evaluating the potential impairment of goodwill involves a two-step process and requires significant judgment at many points during the analysis. In the first step, we determine whether there is an indication of impairment by comparing the fair value of a reporting unit to its carrying amount, including goodwill. If, based on the first step, we determine that there is an indication of goodwill impairment, we assess the impairment in step two in accordance with the FASB guidance.

In the first step, we determine the fair value for each reporting unit using a combination of two valuation approaches: the market approach and the income approach. The market approach uses a guideline company methodology which is based upon a comparison of each reporting unit to similar publicly-traded companies within our industry. We derive a market value of invested capital or business enterprise value for each comparable company by multiplying the price per share of common stock of the publicly traded companies by their total common shares outstanding and adding each company’s current level of debt. We calculate a business enterprise multiple based on revenue and earnings from each company, then apply those multiples to each reporting unit’s revenue and earnings to conclude a reporting unit business enterprise value. Assumptions regarding the selection of comparable companies are made based on, among other factors, capital structure, operating environment and industry. As the comparable companies were typically larger and more diversified than our reporting units, multiples were adjusted prior to application to our reporting units’ revenues and earnings to reflect differences in margins, long-term growth prospects and market capitalization.

The income approach uses a discounted debt-free cash flow analysis to measure fair value by estimating the present value of future economic benefits. To perform the discounted debt-free cash flow analysis, we develop a pro forma analysis of each reporting unit to estimate future available debt-free cash flow and discounting estimated debt-free cash flow by an estimated industry weighted average cost of capital based on the same comparable companies used in the market approach. Per the FASB guidance, the weighted average cost of capital is based on inputs (e.g., capital structure, risk, etc.) from a market participant’s perspective and not necessarily from the reporting unit or QDI’s perspective. Future cash flow is projected based on assumptions for our economic growth, industry expansion, future operations and the discount rate, all of which require significant judgments by management.

After computing a separate business enterprise value under the income approach and market approach, we apply a weighting to them to derive the business enterprise value of the reporting unit. The income approach and market approach were both weighted 50% in the analysis performed at June 30, 2012. The weightings are evaluated each time a goodwill impairment assessment is performed and give consideration to the relative reliability of each approach at that time. Given that the business enterprise value derived from the market approach supported what was calculated in the income approach, we believed that both approaches should be equally weighted. Based on these weightings, we calculated a business enterprise value for the reporting unit. We then add debt-free liabilities of the reporting unit to the calculated business enterprise value to derive an implied fair value of the reporting unit. The implied fair value is then compared to the reporting unit’s carrying value. Upon completion of the analysis in step one, we determined that the fair value of both our energy logistics and intermodal reporting units exceeded its respective carrying value. As such, a step two analysis was not required.

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Intangible Assets

To determine the implied fair value of our indefinite-lived intangible assets, we utilize the relief from royalty method, pursuant to which those assets are valued by reference to the amount of royalty income they would generate if licensed in an arm’s length transaction. Under the relief from royalty method, similar to the discounted cash flow method, estimated net revenues expected to be generated by the asset during its life are multiplied by a benchmark royalty rate and then discounted by the estimated weighted average cost of capital associated with the asset. The resulting capitalized royalty stream is an indication of the value of owning the asset. Based upon management’s review of the value of the indefinite-lived intangible assets in our intermodal segment, we determined that the implied fair value exceeded its carrying value.

If there are changes to the methods used to allocate carrying values, if management’s estimates of future operating results change, if there are changes in the identified reporting units or if there are changes to other significant assumptions, the estimated carrying values for each reporting unit and the estimated fair value of our goodwill could change significantly, and could result in future impairment charges, which could materially impact our results of operations and financial condition.

Deferred Tax Asset—In accordance with FASB guidance, we use the asset and liability method of accounting for income taxes. Significant management judgment is required in determining the provision for income taxes and, in particular, any valuation allowance that is recorded or released against our deferred tax assets.

We continue to evaluate quarterly the positive and negative evidence regarding the realization of net deferred tax assets. The carrying value of our net deferred tax assets is based on our belief that it is more likely than not that we will generate sufficient future taxable income to realize these deferred tax assets. We review a rolling thirty-six month calculation of U.S. earnings, and consider other criteria at each reporting date, to determine if we have incurred cumulative income or losses in recent years. In addition, we review future reversal of existing taxable temporary differences, the ability to carry back tax attributes to prior years, feasibility of tax planning strategies and estimated future taxable income.

During 2012, we recorded a deferred tax benefit of $28.1 million of which $35.3 related to a prior year valuation allowance release. These releases of the valuation allowance are a result of our consistent cumulative income position, improved operating results, and recent expansion of our energy business through acquisition. Our assessment of the recoverability of the deferred tax assets primarily relied on the positive evidence related to our cumulative income position as of December 31, 2012. We have determined that it is more likely than not that expected future taxable income will be sufficient to utilize substantially all of our U.S. federal and state net deferred tax assets. We will continue to maintain a valuation allowance against our net deferred tax asset related to foreign tax credits to the extent sufficient positive evidence does not exist to support their utilization. Changes in deferred tax assets and valuation allowance are reflected in the provision for income taxes line in our consolidated statements of operations.

At December 31, 2012, we had an estimated $75.1 million in federal net operating loss carryforwards, $3.6 million of unrecognized federal operating loss carryforwards related to excess stock compensation deductions and uncertain tax position deductions, $2.3 million in alternative minimum tax credit carryforwards and $5.3 million in foreign tax credit carryforwards. The net operating loss carryforwards will expire in the years 2018 through 2030, while the alternative minimum tax credits may be carried forward indefinitely and the foreign tax credits will expire in years 2014 through 2022.

Uncertain Income Tax Positions—In accordance with FASB guidance, we account for uncertainty in income taxes, using a two-step process. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained upon audit, including resolution of related appeals or litigation processes, if any. The second step requires us to estimate and measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. It is inherently difficult and subjective to estimate such amounts, as we have to determine the probability of various possible outcomes. We re-evaluate these uncertain tax positions on a quarterly basis. This evaluation is based on factors including, but not limited to, changes in facts or circumstances, changes in tax law, effectively settled issues under audit, and new audit activity. Such a change in recognition and measurement would result in recognition of a tax benefit and/or an additional charge to the tax provision.

Environmental Liabilities—We have reserved for potential environmental liabilities based on the best estimates of potential clean-up and remediation for known environmental sites. We employ a staff of environmental professionals to administer all phases of our environmental programs and use outside experts where needed. These professionals develop estimates of potential liabilities at these sites based on projected and known remediation costs. These cost projections are determined through previous experiences with other sites and through bids from third-party contractors. Management believes current reserves are reasonable based on current information, but estimates of environmental reserves and exposures may be affected by information subsequently received.

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Accrued Loss and Damage Claims—We currently maintain liability insurance for bodily injury and property damage claims, covering all employees, independent owner-operators and independent affiliates, and workers’ compensation insurance coverage on our employees and company drivers. This insurance includes deductibles up to $2.0 million per incident for bodily injury and property damage and up to $1.0 million for workers’ compensation. As such, we are subject to liability as a self-insurer to the extent of these deductibles under various policies. We are self-insured for damage to the equipment we own or lease and for cargo losses. As of December 31, 2012, we had $20.0 million in an outstanding letter of credit to our insurance company to guarantee the self-insurance portion of our liability. If we fail to meet certain terms of our agreement, the insurance company may draw down the letter of credit. In developing liability reserves, we rely on insurance company estimates, the judgment of our own licensed claims adjusters, and independent professional actuaries and attorneys. The most significant assumptions used in the estimation process include determining the trends in loss costs, the expected consistency in the frequency and severity of claims incurred but not yet reported to prior-year claims, and expected costs to settle unpaid claims. Management believes reserves are reasonable given known information, but as each case develops, estimates may change to reflect the effect of new information.

Revenue Recognition—Transportation revenue, including fuel surcharges and related costs, is recognized on the date freight is delivered. Service revenue consists primarily of rental revenues (primarily tractor and trailer rental), intermodal and depot revenues, disposal well services revenues, tank wash revenues and insurance related administrative services. Rental revenues from independent affiliates, independent owner-operators and third parties are recognized ratably over the lease period. Intermodal and depot revenues, consisting primarily of repair and storage services, are recognized when the services are rendered. Disposal well services revenues are recognized when the services are rendered. Insurance related administrative service revenues are recorded ratably over the service period. We recognize all revenues on a gross basis as the principal and primary obligor with risk of loss in relation to our responsibility for completion of services as contracted with our customers.

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Allowance for Uncollectible Receivables—The allowance for all potentially uncollectible receivables is based on a combination of historical data, cash payment trends, specific customer issues, write-off trends, general economic conditions and other factors. These factors are continuously monitored by our management to arrive at the estimate for the amount of accounts receivable that may be ultimately uncollectible. The receivables analyzed include trade receivables, as well as loans and advances made to independent owner-operators and independent affiliates. If the financial condition of our customers were to deteriorate, resulting in an impairment of their ability to make payments, an additional allowance could be required.

Stock Compensation Plans—Stock compensation is determined by the assumptions required under the FASB guidance. The fair values of stock option grants are based upon the Black-Scholes option-pricing model and amortized as compensation expense on a straight-line basis over the vesting period of the grants. Restricted stock awards are issued and measured at market value on the date of grant and related compensation expense is recognized over time on a straight-line basis over the vesting period of the grants. Stock-based compensation expense related to stock options and restricted stock was $3.2 million and $2.9 million for the year-ended December 31, 2012 and 2011, respectively. As of December 31, 2012, there was approximately $4.1 million of total unrecognized compensation cost related to the unvested portion of our stock-based awards. The recognition period for the remaining unrecognized stock-based compensation cost generally varies from two to four years. For further discussion on stock-based compensation, see Note 19 of Notes to Consolidated Financial Statements included in Item 15 of this report.

Pension Plans—We maintain two noncontributory defined benefit plans resulting from a prior acquisition that cover certain vested salaried participants and retirees and certain other vested participants and retirees under an expired collective bargaining agreement. Both plans are frozen and, as such, no future benefits accrue. We record annual amounts relating to these plans based on calculations specified by GAAP, which include various actuarial assumptions such as discount rates (3.90% to 4.50%) and assumed rates of return (7.00% to 8.00%) depending on the pension plan. Material changes in pension costs may occur in the future due to changes in these assumptions. Future annual amounts could be impacted by changes in the discount rate, changes in the expected long-term rate of return, changes in the level of contributions to the plans and other factors.

We had an accumulated net pension equity charge (after-tax) of $0.3 million at December 31, 2012 and an accumulated net pension equity charge (after-tax) of $5.2 million at December 31, 2011.

The discount rate is based on a model portfolio of AA-rated bonds with a maturity matched to the estimated payouts of future pension benefits. The expected return on plan assets is based on our expectation of the long-term rates of return on each asset class based on the current asset mix of the funds, considering the historical returns earned on the type of assets in the funds, plus an assumption of future inflation. The current inflation assumption is 2.25%. We review our actuarial assumptions on an annual basis and make modifications to the assumptions based on current rates and trends when appropriate. The effects of the modifications are amortized over future periods.

Assumed discount rates and expected return on plan assets have a significant effect on the amounts reported for the pension plan. At December 31, 2012, our projected benefit obligation (“PBO”) was $52.6 million. Our projected 2013 net periodic pension expense is $1.2 million. A 1.0% decrease in our assumed discount rate would increase our PBO to $58.8 million and decrease our 2013 net periodic pension expense less than $0.1 million. A 1.0% increase in our assumed discount rate would decrease our PBO to $47.5 million and increase our 2013 net periodic pension expense less than $0.1 million. A 1.0% decrease in our assumed rate of return would not change our PBO but would increase our 2013 net periodic pension expense to $1.5 million. A 1.0% increase in our assumed rate of return would not change our PBO but would decrease our 2013 net periodic pension expense to $0.9 million.

Restructuring—We account for restructuring costs associated with one-time termination benefits, costs associated with lease and contract terminations and other related exit activities in accordance with the FASB’s guidance. We previously made estimates of the

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costs to be incurred as part of a restructuring plan developed during 2008 and concluded at the end of 2010. The restructuring plan consisted of various actions including termination of approximately 380 non-driver positions, the consolidation, closure or affiliation of underperforming company terminals, our withdrawal from three multi-employer pension plans and costs associated with the consolidation of our corporate headquarters and resulted in charges during 2008, 2009 and 2010, primarily related to our chemical logistics segment. As of December 31, 2012, approximately $2.1 million was accrued related to the restructuring charges, which are expected to be paid through 2017.

NEW ACCOUNTING PRONOUNCEMENTS

Refer to Note 2, “Summary of Significant Accounting Policies—New Accounting Pronouncements” for discussion of recent accounting pronouncements and for additional discussion surrounding the adoption of accounting standards.

RESULTS OF OPERATIONS

The following table sets forth for the periods indicated the percentage of total revenue represented by certain items in our Consolidated Statements of Operations:

	Year Ended December 31,
	2012			2011			2010
OPERATING REVENUES:
Transportation		70.9	%		69.4	%		72.6	%
Service revenue		14.4			14.8			15.6
Fuel surcharge		14.7			15.8			11.8
Total operating revenues		100.0			100.0			100.0
OPERATING EXPENSES:
Purchased transportation		65.6			70.1			68.7
Compensation		9.8			8.2			8.4
Fuel, supplies and maintenance		9.7			6.9			7.9
Depreciation and amortization		2.5			1.9			2.3
Selling and administrative		4.0			2.9			2.8
Insurance costs		1.9			1.9			2.3
Taxes and licenses		0.3			0.3			0.3
Communication and utilities		0.4			0.4			0.6
(Gain) loss on disposal of property and equipment		(0.1	)		(0.2	)		0.2
Restructuring (credit) costs		—			(0.1	)		1.1
Total operating expenses		94.1			92.3			94.6
Operating income		5.9			7.7			5.4
Interest expense, net		3.5			3.9			5.2
Write-off of debt issuance costs		—			0.4			1.1
Other (income) expense, net		(0.3	)		—			0.1
Income (loss) before income taxes		2.7			3.4			(1.0	)
(Benefit from) provision for income taxes		(3.2	)		0.3			0.1
Net income (loss)		5.9			3.1			(1.1	)

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YEAR ENDED DECEMBER 31, 2012 COMPARED TO YEAR ENDED DECEMBER 31, 2011

Comparability for the year ended December 31, 2012 to the year ended December 31, 2011 is affected by recent acquisitions consummated in the fourth quarter of 2011 and during 2012. In November 2011, we acquired all of the outstanding stock of Greensville, which is included in our intermodal segment. In April 2012, we acquired certain operating assets of Trojan. In June 2012, we acquired certain operating assets and rights of Bice, and in August 2012, we acquired operating assets of Dunn’s. Trojan, Bice and Dunn’s are collectively referred to as the “2012 Energy Acquisitions” and are included in our energy logistics segment.

For the year ended December 31, 2012, total revenues were $842.1 million, an increase of $96.1 million, or 12.9%, from revenues of $746.0 million for the same period in 2011. Transportation revenue increased $79.6 million, or 15.4%, primarily due to an increase in energy logistics revenue of $76.2 million, of which $61.5 million related to the 2012 Energy Acquisitions and $14.7 million related to our existing energy business which began in the second quarter of 2011. In addition, we had an increase of $10.1 million in our intermodal business due to an increase in demand and revenue related to Greensville. These increases were partially offset by a decrease in chemical logistics revenue of $6.7 million due to driver capacity constraints resulting from the installation of EOBRs, partially offset by price increases.

Service revenue increased $10.5 million, or 9.5%. This increase was primarily due to an increase in our energy logistics business of $7.5 million, of which $6.7 million was due to the 2012 Energy Acquisitions and $0.8 million related to our existing energy business. In addition, we had higher intermodal depot services revenue of $2.8 million and higher chemical logistics revenue of $0.2 million.

Fuel surcharge revenue increased $6.0 million, or 5.1%, primarily due to an increase in our intermodal business and a slight increase in fuel prices. We have fuel surcharge programs in place with the majority of our chemical logistics and intermodal customers. Most of these programs typically involve a specified computation based on the changes in fuel prices. As a result, some of these programs have a short time lag between when fuel prices change and when this change is reflected in revenues. It is not meaningful to compare the amount of fuel surcharge revenue or the change in fuel surcharge revenue between reporting periods to fuel expense, or the change in fuel expense between periods, as a significant portion of fuel costs are included in purchased transportation.

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Purchased transportation increased $29.7 million, or 5.7%, due to an increase of $37.8 million in costs related to servicing the energy logistics market, of which $28.4 million was due to the 2012 Energy Acquisitions and $9.4 million in costs related to servicing our existing energy business. Purchased transportation also increased $6.0 million related to our intermodal business, offset by a decrease of $14.1 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 76.6% for the year ended December 31, 2012 versus 82.3% for the same period in 2011. Our independent affiliates generated 90.4% of our chemical logistics revenue and fuel surcharge revenue for the year ended December 31, 2012 compared to 93.4% for the comparable prior-year period. This decrease resulted from the conversion of five 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.

During the year ended December 31, 2012, hauling for the energy market was performed by company-operated terminals, independent affiliates and independent third-party carriers. During this period, company-operated terminals generated approximately 77% of the energy revenue and independent affiliates and third-party carriers generated approximately 23%. We typically pay these independent contractors between 72% and 95% of transportation revenue depending on their type of association with the Company.

Compensation expense increased $21.0 million, or 34.4%, due primarily to an increase of $14.7 million in our energy logistics business, of which $11.4 million was due to the 2012 Energy Acquisitions and an increase in our intermodal business of $3.9 million, of which $1.9 million related to the acquisition of Greensville. Compensation expense in our chemical logistics business increased $2.4 million due to an increase in company terminals.

Fuel, supplies and maintenance increased $30.9 million, or 60.5%, due primarily to an increase of $18.8 million related to our energy logistics business of which $16.8 million was due to the 2012 Energy Acquisitions. We had an increase of $7.8 million related to our chemical logistics business resulting from an increase in fuel costs of $3.2 million, an increase in equipment rent expense of $3.2 million and an increase in other terminal costs of $1.4 million, primarily at our company-operated terminals. In addition, we had an increase of $4.3 million related to our intermodal business due to an increase in fuel costs of $1.7 million, an increase in repairs and maintenance expense of $1.4 million and an increase in equipment rent of $1.2 million.

Depreciation and amortization expense increased $6.7 million, or 46.3%, primarily due to an increase in depreciation for new energy logistics equipment and an increase in amortization expense for acquired intangible assets. We expect our depreciation and amortization expense to be higher in 2013 than 2012 as energy logistics equipment and intangible assets acquired during 2012 are depreciated and amortized, respectively, for a full twelve months.

Selling and administrative expenses increased $12.2 million, or 56.5%, primarily due to an increase in our chemical logistics business of $8.9 million which includes the incurrence of $4.0 million of acquisition-related costs, an increase of $1.4 million in professional fees, which includes $0.3 million for various legal settlements, a lease termination cost of $0.5 million, an increase in building rent of $0.5 million and other terminal costs of $2.2 million. In addition, our energy logistics business had increased costs of $2.6 million, of which $1.7 million is due to the 2012 Energy Acquisitions, and our intermodal business had increased costs of $0.7 million.

Insurance costs increased $1.8 million, or 12.7%, due to an increase in volume in our energy logistics business, additional premiums related to the 2012 Energy Acquisitions and settlement of a large claim. As a percentage of revenue, insurance expense was below the low end of the Company’s target range of 2% to 3% of total revenue.

We recognized a gain on disposal of revenue equipment of $1.0 million and $1.3 million for the years ended December 31, 2012 and 2011, respectively.

In the second quarter of 2011, we recognized a restructuring credit of $0.5 million resulting from the reduction of a liability for the withdrawal from a multi-employer pension plan which was fully paid in the second quarter of 2011. In 2012, we had no restructuring credit.

For the year ended December 31, 2012, operating income was $49.1 million, a decrease of $8.5 million, or 14.8%, compared to operating income of $57.7 million for the same period in 2011. The operating margin for the year ended December 31, 2012 was 5.9% compared to 7.7% for the same period in 2011 as a result of the above-mentioned items. Operating income was negatively impacted by $4.4 million of operating costs and reduced profitability related to the transition of operations of an independent affiliate during the third and fourth quarters of 2012.

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Interest expense increased $0.6 million, or 2.0%, in the year ended December 31, 2012, primarily due to an increase in our weighted average ABL Facility borrowings which were primarily used to fund the 2012 Energy Acquisitions. We expect our interest expense for 2013 to be higher than the comparable period of 2012 due to higher average debt balances.

We had no write-offs of debt issuance costs during the year ended December 31, 2012. In the year ended December 31, 2011, we wrote off $3.2 million of unamortized debt issuance costs and other bank fees of which $2.1 million resulted from the redemptions of our remaining 2013 PIK Notes in January 2011, March 2011 and July 2011 and $1.1 million related to the refinancing of our previous ABL Facility.

Other income of $2.9 million in 2012 consists primarily of the net adjustments of acquisition earnout provisions related to the acquisitions of Greensville, Trojan and Dunn’s. Other expense in 2011 consists primarily of foreign currency expense of $0.2 million.

We recognized an income tax benefit of $27.3 million for the year ended December 31, 2012, compared to a provision for income taxes of $1.9 million for the same period in 2011. The effective tax rates for the years ended December 31, 2012 and 2011 were (120.1)% and 7.7%, respectively. The effective tax rate for the year ended December 31, 2012 was impacted by a release of $35.3 million in the aggregate of our deferred tax valuation allowance. The effective tax rate in the same period in 2011 was impacted by a 100% valuation allowance recorded against our net deferred tax assets.

For the year ended December 31, 2012, net income was $50.1 million compared to net income of $23.4 million for the same period in 2011 as a result of the above-mentioned items.

YEAR ENDED DECEMBER 31, 2011 COMPARED TO YEAR ENDED DECEMBER 31, 2010

Total revenues for 2011 were $746.0 million, an increase of $59.4 million, or 8.6%, from revenues of $686.6 million in 2010. Transportation revenue increased by $19.3 million, or 3.9%, primarily due to an increase in new energy logistics revenue of $29.4 million generated primarily from our delivery of fresh and disposal water in the frac shale energy market, most of which was generated in the second half of the year, and an increase of $2.7 million in our intermodal business. This was partially offset by a decrease in chemical logistics revenue of $12.8 million due to a decrease in bulk chemical shipments. In 2011, our chemical logistics business was adversely affected by a high level of driver turnover primarily driven by our installation of EOBRs in our fleet. We installed EOBRs in all of our U.S. fleet in order to improve efficiency and proactively address regulatory requirements that we expect in the future.

Service revenue increased $3.1 million, or 2.9%. This increase was primarily due to an increase in intermodal revenue of $5.2 million and other revenue of $1.1 million, partially offset by a decrease in trailer rental revenue of $3.2 million. Trailer rental revenue declined in connection with the implementation of EOBRs in our fleet.

Fuel surcharge revenue increased $36.9 million, or 45.7%, primarily due to an increase in fuel prices. We have fuel surcharge programs in place with the majority of our chemical logistics and intermodal customers. These programs typically involve a specified computation based on the changes in fuel prices. As a result, some of these programs may have a time lag between when fuel prices change and when this change is reflected in revenues. It is not meaningful to compare the amount of fuel surcharge revenue or the change in fuel surcharge revenue between reporting periods to fuel expense, or the change of fuel expense between periods, as a significant portion of fuel costs are included in purchased transportation.

Purchased transportation increased $51.1 million, or 10.8%, due to an increase of $18.2 million in costs related to servicing the chemical logistics market resulting from a shift in mix from independent owner-operators to independent affiliates, a $26.5 million increase for costs related to servicing the energy logistics market, and a $6.4 million increase for costs related to our intermodal business. Total purchased transportation as a percentage of transportation revenue and fuel surcharge revenue increased slightly to 82.3% for 2011 versus 81.5% for 2010. Our independent affiliates generated 93.4% of our chemical logistics revenue and fuel surcharge revenue for 2011 compared to 93.9% for 2010. During the 2011 and 2010 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. During 2011, hauling for the energy market was performed by independent affiliates and other independent third-party carriers. In the energy market, we typically pay between 85% to 95% of the transportation revenue depending upon whether the independent affiliate or a third-party carrier does the hauling, which generated nearly 100% of our energy logistics revenue in 2011.

Compensation expense increased by $3.5 million, or 6.1%, due to an increase in our chemical logistics business of $2.0 million primarily due to an increase in health care claims, an increase in our intermodal business of $1.1 million, of which $0.4 million relates to Greensville following its acquisition and an increase of $0.4 million in our energy logistics business.

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Fuel, supplies and maintenance decreased $3.3 million, or 6.0%, due to a decrease of $5.7 million related to our chemical logistics business primarily due to lower repairs and maintenance expense of $4.7 million and lower equipment rent of $2.0 million, partially offset by an increase in fuel costs of $1.0 million from company-operated operations. Lower repairs and maintenance resulted from aggressive reduction of aged or underutilized specialty equipment in 2011. The decrease was partially offset by increased costs of $2.5 million related to our intermodal business due to an increase in repairs and maintenance expense of $1.2 million from higher revenues, increased fuel costs of $0.9 million and costs of the operations of Greensville following its acquisition of $0.4 million.

Depreciation and amortization expense decreased $1.6 million, or 9.9%, primarily due to a decrease in depreciation due to sales of revenue equipment offset by an increase in depreciation for new energy equipment.

Selling and administrative expenses increased $2.3 million, or 11.9%, primarily due to an increase in our chemical logistics segment of $1.1 million, which was comprised primarily of increased environmental expense and professional fees of $1.2 million, and an increase in company-operated terminal costs of $0.7 million mostly associated with our implementation of EOBRs, partially offset by a decrease in building rent expense of $1.0 million. In addition, our intermodal business had increased costs of $1.0 million due to increased demand and we had increased costs of $0.2 million in our energy logistics business.

Insurance costs decreased by $1.5 million, or 9.7%, due to a premium refund received of $1.1 million related to prior policy years and a reduction in the number and severity of claims in 2011. The amount of $1.1 million was identified as a prior period error which was corrected and recorded during the fourth quarter of 2011. We concluded that this adjustment was not material to our interim and annual consolidated financial statements for 2011 or the financial statements for any prior period based on our consideration of quantitative and qualitative factors.

Communication and utilities expense decreased $1.4 million, or 33.7%, primarily due to cost savings initiatives.

We recognized a gain on disposal of revenue equipment of $1.3 million in 2011, as compared to a loss on disposal of assets of $1.1 million in 2010 from the sale and disposal of equipment.

In 2011, we recognized a restructuring credit of $0.5 million resulting from a reduction of a liability for the withdrawal from a multi-employer pension plan which was fully paid in the second quarter of 2011. In 2010, we incurred restructuring costs of $7.8 million resulting from a restructuring plan which began in 2008 and concluded in 2010. The costs in 2010 consisted primarily of $2.0 million for an estimated withdrawal liability from three multi-employer pension plans, $2.2 million for the consolidation of our corporate headquarters, as well as an additional $3.6 million of other expenses related to exit activities.

Operating income was $57.7 million in 2011, an increase of $21.0 million, or 57.0%, compared to operating income of $36.7 million in 2010. The operating margin for 2011 was 7.7% compared to 5.4% for 2010 as a result of the above-mentioned items.

Interest expense decreased by $6.7 million, or 18.4% in 2011, primarily due to redemptions of our high cost 2013 PIK Notes in 2010 and 2011 and lower interest rates on our 2018 Notes following our debt refinancing in the fourth quarter of 2010.

In 2011, we wrote off $3.2 million of unamortized debt issuance costs and other bank fees, of which $2.1 million resulted from the redemptions of our remaining 2013 PIK Notes in January 2011, March 2011 and July 2011 and $1.1 million related to the refinancing of our Previous ABL Facility. In 2010, we wrote off $7.4 million of unamortized debt issuance costs resulting from the redemption and repurchase of our 2013 PIK Notes in December 2010.

Other expense of $0.2 million in 2011 consists primarily of foreign currency expense of $0.2 million. Other expense of $0.8 million in 2010 consists primarily of costs associated with an unconsummated stock offering of $0.7 million.

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The provision for income taxes was $1.9 million in 2011 compared to $0.4 million in 2010. The effective rate for 2011 was 7.7%, which is lower than our anticipated 39.0% effective tax rate in large part due to an increase in the deferred tax valuation allowance.

Net income was $23.4 million for 2011 compared to a net loss of $7.4 million for 2010 as a result of the above-mentioned items.

Segment Operating Results

We have three reportable business segments for financial reporting purposes that are distinguished primarily on the basis of services offered:

• Chemical Logistics, which consists of the transportation of bulk chemicals primarily through our network of 25 independent affiliates and company-operated terminals, and equipment rental income;

• Energy Logistics, which consists primarily of the transportation of fresh water, disposal water, and crude oil for the unconventional oil and gas frac shale energy markets, primarily through company-operated terminals and 2 independent affiliates; and

• Intermodal, which consists of Boasso’s intermodal ISO tank container transportation and depot services business primarily supporting the international movement of bulk liquids.

Segment operating income reported in our segment tables excludes amounts such as depreciation and amortization, gains and losses on disposal of property and equipment, restructuring costs, corporate and other unallocated amounts. Although these amounts are excluded from the business segment results, they are included in our reported consolidated statements of operations. Most corporate and shared services overhead costs, including acquisition costs, are included in our chemical logistics segment. We have not provided specific asset information by segment, as it is not regularly provided to our chief operating decision maker for review.

Summarized segment operating results are as follows (in thousands):

	Year Ended December 31, 2012
	Chemical Logistics			Energy Logistics			Intermodal			Total
Operating Revenues:
Transportation	$	423,077		$	105,679		$	68,650		$	597,406
Service revenue		67,632			8,461			45,008			121,101
Fuel surcharge		105,767			926			16,918			123,611
Total operating revenues	$	596,476		$	115,066		$	130,576		$	842,118
Segment revenue % of total revenue		70.8	%		13.7	%		15.5	%		100.0	%
Segment operating income	$	37,809		$	12,177		$	19,259		$	69,245
Depreciation & amortization		11,293			6,310			3,487			21,090
Other (income) expense, net		(1,327	)		391			(52	)		(988	)
Operating income	$	27,843		$	5,476		$	15,824		$	49,143

	Year Ended December 31, 2011
	Chemical Logistics			Energy Logistics			Intermodal			Total
Operating Revenues:
Transportation	$	429,769		$	29,432		$	58,579		$	517,780
Service revenue		67,414			1,006			42,168			110,588
Fuel surcharge		103,487			64			14,032			117,583
Total operating revenues	$	600,670		$	30,502		$	114,779		$	745,951
Segment revenue % of total revenue		80.5	%		4.1	%		15.4	%		100.0	%
Segment operating income	$	48,444		$	3,081		$	18,728		$	70,253
Depreciation & amortization		10,418			785			3,210			14,413
Other (income) expense, net		(1,684	)		—			(155	)		(1,839	)
Operating income	$	39,710		$	2,296		$	15,673		$	57,679

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	Year Ended December 31, 2010
	Chemical Logistics			Energy Logistics		Intermodal			Total
Operating Revenues:
Transportation	$	442,576		$	—	$	55,870		$	498,446
Service revenue		70,470			—		37,004			107,474
Fuel surcharge		72,053			—		8,625			80,678
Total operating revenues	$	585,099		$	—	$	101,499		$	686,598
Segment revenue % of total revenue		85.2	%		—		14.8	%		100.0	%
Segment operating income	$	44,791		$	—	$	16,863		$	61,654
Depreciation & amortization		13,033			—		2,971			16,004
Other expense (income), net		8,901			—		14			8,915
Operating income	$	22,857		$	—	$	13,878		$	36,735

	2012 vs 2011		Chemical Logistics			Energy Logistics			Intermodal			Total
Segment revenues		$ change	$	(4,194	)	$	84,564		$	15,797		$	96,167
		% change		(0.7	)%		277.2	%		13.8	%		12.9	%
Segment operating income		$ change	$	(10,635	)	$	9,096		$	531		$	(1,008	)
		% change		(22.0	)%		295.2	%		2.8	%		(1.4	)%

	2011 vs 2010		Chemical Logistics			Energy Logistics			Intermodal			Total
Segment revenues		$ change	$	15,571		$	30,502		$	13,280		$	59,353
		% change		2.7	%		100.0	%		13.1	%		8.6	%
Segment operating income		$ change	$	3,653		$	3,081		$	1,865		$	8,599
		% change		8.2	%		100.0	%		11.1	%		13.9	%

Year Ended December 31, 2012 Compared to Year Ended December 31, 2011

Operating revenue:

Chemical Logistics—revenues decreased $4.2 million, or 0.7%, for the year ended December 31, 2012 compared to the same period for 2011 primarily due to a decrease in transportation revenue of $6.7 million. The decline was driven by reduced linehaul revenue resulting primarily from lower shipment volumes and the lingering effects of the implementation of electronic on-board recorders on driver counts. Although driver counts are rising slightly, industry-wide tightness in driver capacity could adversely impact our chemical logistics business for a portion of 2013. This decline was partially offset by an increase of $2.3 million of fuel surcharge revenue due to increased fuel prices and an increase of $0.2 million primarily due to increased trailer rental revenue.

Energy Logistics—revenues increased $84.6 million, or more than 100.0%, for the year ended December 31, 2012 due to our entry into the unconventional oil and gas frac shale energy market during the second quarter of 2011, the 2012 Energy Acquisitions and growth of our existing energy business through the addition of two independent affiliates.

Intermodal—revenues increased $15.8 million, or 13.8%, for the year ended December 31, 2012 compared to the same period in 2011, due to the Greensville acquisition, continued strong demand for ISO container shipments, and increases in brokerage, storage and repair business.

Segment Operating income:

Chemical Logistics—segment operating income decreased $10.6 million, or 22.0%, for the year ended December 31, 2012 compared to the same period in 2011 primarily due to acquisition costs, higher equipment rental expense, severance and lease termination costs, legal and claims settlement costs, higher repairs and maintenance and increased terminal costs. In addition, operating income was negatively impacted by $7.9 million of costs associated with the independent affiliate conversion, acquisition and severance charges and other legal settlements.

Energy Logistics—segment operating income increased $9.1 million, or more than 100.0%, for the year ended December 31, 2012 due to our entry into the unconventional oil and gas frac shale energy market in the second quarter of 2011, the 2012 Energy

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Acquisitions and through the addition of two independent affiliates, partially offset by increased depreciation and amortization costs related to acquired assets. Operating income was negatively impacted by $2.3 million of operating costs and reduced profitability related to the transition of an independent affiliate and decreased volumes in the Marcellus shale region driven by lower natural gas prices.

Intermodal—segment operating income increased $0.5 million, or 2.8%, for the year ended December 31, 2012 compared to the same period in 2011 due to the acquisition of Greensville, offset by increased transportation costs and greater than expected equipment repair costs. Operating income for our intermodal segment was adversely impacted by approximately $0.7 million due to the effects of Hurricane Sandy on our Newark, NJ terminal.

Year Ended December 31, 2011 Compared to Year Ended December 31, 2010

Operating revenue:

Chemical Logistics—revenues increased $15.6 million, or 2.7%, for 2011 compared to 2010 primarily due to an increase of $31.4 million of fuel surcharge revenue. Transportation revenue decreased by $12.8 million due to reduced linehaul revenue resulting from a decrease in chemical shipments primarily caused by a high level of driver turnover resulting from our implementation of EOBRs in our U.S. fleet. In addition, service revenue decreased by $3.0 million due primarily to decreased trailer rental revenue.

Energy Logistics—revenues increased $30.5 million, or 100.0%, for 2011 due to our entry into the gas and oil frac shale energy market during the year.

Intermodal—revenues increased $13.3 million, or 13.1%, for 2011 compared to 2010 due to an increase of $5.4 million in fuel surcharge revenue, an increase of $5.2 million in service revenue and an increase of $2.7 million in intermodal transportation and depot revenue, partially due to our acquisition of Greensville.

Operating income:

Chemical Logistics—operating income increased $3.7 million, or 8.2%, for 2011 compared to 2010 primarily due to cost reductions.

Energy Logistics—operating income increased $3.1 million, or 100.0%, for 2011 due to our entry into the gas and oil frac shale energy market.

Intermodal—operating income increased $1.9 million, or 11.1%, for 2011 compared to 2010 due to increased customer demand, partially offset by incremental costs to support the increase in revenue.

EXCHANGE RATES

We operate primarily in the United States but also have operations in Canada and Mexico. Our results of operations are affected by the relative strength of currencies in the countries where we operate. Approximately 4.7%, 6.1% and 5.5% of our revenue in 2012, 2011 and 2010, respectively, was generated outside the United States.

In comparing the average exchange rates between 2012 and 2011, the Canadian dollar and the Mexican peso depreciated against the United States dollar by approximately 1.1% . The change in exchange rates negatively impacted revenue by approximately $0.4 million in 2012. The depreciation of the Canadian dollar was the primary reason for the less than $0.1 million net increase in cumulative currency translation loss in shareholders’ deficit for 2012.

Gains and losses included in the consolidated statements of operations from foreign currency transactions included a less than $0.1 million gain in 2012, a $0.2 million loss in 2011, and a $0.2 million gain in 2010. Risks associated with foreign currency fluctuations are discussed further in Item 7A. “Quantitative and Qualitative Disclosures about Market Risk.”

LIQUIDITY AND CAPITAL RESOURCES

Our primary cash needs consist of debt service, working capital, capital expenditures, acquisitions and share repurchases . Our working capital needs depend upon the timing of our collections from customers and payments to others, as well as our capital and operating lease payment obligations. Our capital expenditures primarily relate to acquiring trailers to maintain the chemical logistics fleet and supporting our energy logistics business with growth capital. We reduce our capital expenditure requirements for our chemical logistics business by utilizing independent affiliates and independent owner-operators.

Independent affiliates and independent owner-operators typically supply their own tractors, which reduces our capital investment requirements. For 2012, capital expenditures were $32.3 million and proceeds from sales of property and equipment were

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$13.5 million. We generally expect our sustaining capital expenditures, net of proceeds from property and equipment sales, to be approximately 1% to 2% of operating segment revenues annually. We expect net capital expenditures to be approximately $10.0 to $15.0 million for the 2013 year. Notwithstanding our general expectation for sustaining capital expenditures, we expect net capital expenditures in 2013 to be lower than in 2012, regardless of operating revenue, as we focus on equipment rationalization. Some of our independent affiliates who are engaged with us in the chemical logistics or energy logistics markets 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.

Debt service currently consists of required interest payments on the outstanding balance of our ABL Facility and our outstanding 2018 Notes as well as acquisition related indebtedness. We have no major debt maturities prior to August 2016, when our ABL Facility matures. During 2011, note indebtedness was comprised primarily of our 2018 Notes and our 2013 PIK Notes, though the aggregate principal balance of notes changed during 2011. We redeemed $10.0 million of our 2013 PIK Notes in January 2011. We redeemed $17.5 million of our 2013 PIK Notes with the proceeds from our common stock offering in March 2011 and redeemed the remaining $5.8 million of our 2013 PIK Notes in July 2011.

We may from time to time repurchase or redeem additional amounts of our outstanding debt or may repurchase outstanding shares of our common stock. Our Board of Directors has approved a share repurchase program for up to $15.0 million in shares of our common stock, of which $11.3 million remained available at December 31, 2012. Any repurchases or redemptions would depend upon prevailing market conditions, our liquidity requirements, contractual restrictions and other factors we consider important. Future repurchases or redemptions may materially impact our liquidity, future tax liability and results of operations.

Our primary sources of liquidity for operations during the 2012 and 2011 periods have been cash flow from operations and borrowing availability under the ABL Facility and our Previous ABL Facility. At December 31, 2012, we had $55.2 million of borrowing availability under the ABL Facility. We periodically make business acquisitions with cash as part or all of the consideration. Some acquisitions provide us with new assets to pledge under our ABL Facility and increase our borrowing capacity. Further, we increased our maximum borrowing capacity under the ABL Facility by amendment on September 27, 2012.

If availability under the ABL Facility is insufficient to fund future acquisitions or pay contingent consideration on previous acquisitions, we would either need to raise additional capital or use other sources of liquidity to consummate the desired transactions or meet those requirements. We believe that, based on current operations and anticipated growth, our cash flow from operations, together with other available sources of liquidity, will be sufficient to fund anticipated capital expenditures, operating expenses and our other anticipated liquidity needs for the next 12 months. Anticipated debt maturities in 2016, the acquisition of other businesses or other events that we do not foresee may require us to seek alternative financing, such as restructuring or refinancing our long-term debt, selling assets or operations or selling additional debt or equity securities. If these alternatives were not available in a timely manner or on satisfactory terms or were not permitted under any of our debt agreements and we default on our obligations, our debt could be accelerated and our assets might not be sufficient to repay in full all of our obligations.

Cash Flows

The following summarizes our cash flows for 2012, 2011 and 2010 as reported in our consolidated statements of cash flows in the accompanying consolidated financial statements:

(In Thousands)	Year Ended December 31,
	2012			2011			2010
Net cash provided by operating activities	$	17,002		$	35,399		$	21,071
Net cash used in investing activities		(131,683	)		(30,458	)		(1,079	)
Net cash provided by (used in) financing activities		113,332			(2,642	)		(23,879	)
Effect of exchange rates		—			1			7
Net (decrease) increase in cash		(1,349	)		2,300			(3,880	)
Cash at beginning of period		4,053			1,753			5,633
Cash at end of period	$	2,704		$	4,053		$	1,753

We generated $17.0 million, $35.4 million and $21.1 million in net cash provided by operating activities in 2012, 2011 and 2010, respectively. In 2012, cash provided by operating activities was lower primarily due to lower operating income and the 2012 Energy Acquisitions. In 2011, cash provided by operating activities was primarily due to improved net income, recognized gains on sales of unutilized equipment and restructuring and cost reduction efforts. Our restructuring and cost reduction efforts prior to 2011 and reductions in our trailer fleet during 2011 enabled us to generate stronger operating cash in 2011. In 2010, cash provided by operating activities was primarily due to an increase in accounts receivable in the 2010 period resulting from higher revenue, slightly offset by an increase in our restructuring accrual.

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Net cash used in investing activities in 2012, 2011 and 2010 was $(131.7) million, $(30.5) million and $(1.1) million, respectively. Capital expenditures totaled $32.3 million, $38.3 million and $11.2 million in 2012, 2011 and 2010, respectively, while proceeds from sales of property and equipment were $13.5 million, $16.5 million and $10.1 million, respectively. In 2012, the increase in cash used for investing activities was primarily due to the 2012 Energy Acquisitions of $95.2 million, $18.8 million of net capital expenditure to support our energy logistics business growth initiatives and purchase of an independent affiliate’s assets of $17.1 million. In 2011, we increased our capital expenditures to support our entry into the energy markets, which was partially offset by an increase in proceeds from the sale of equipment. In addition, we used $8.6 million for the Greensville stock acquisitions in the fourth quarter of 2011. In 2010, we used proceeds of $10.1 million from sale of old unutilized revenue equipment to fund $11.2 million of new revenue equipment.

Net cash provided by financing activities in 2012 was $113.3 million. Net cash used in financing activities was $(2.6) million and $(23.9) million in 2011 and 2010, respectively. In 2012, increased net borrowings of $95.7 million under our ABL Facility, and net cash received from our equity offering of approximately $30.5 million was utilized to fund recent asset acquisitions, to pay down $8.5 million of other debt and capital lease obligations, fund share repurchases of $3.7 million and to pay financing fees of $1.0 million in connection with our ABL Facility and recent amendment. In 2011, net cash received from our equity offering of approximately $17.6 million, increased net borrowings of $27.0 million under our New and Previous ABL Facilities, and proceeds from the exercise of stock options of $1.8 million were utilized to redeem $27.5 million in principal amount of our 2013 PIK Notes, to pay down other debt and capital leases of $15.1 million, to pay fees related to our ABL Facility and 2018 Notes of $5.0 million and to redeem for $1.8 million the preferred shares of our subsidiary, CLC, which were previously reflected on our balance sheet as redeemable noncontrolling interest. In 2010, cash was primarily utilized to repay $29.5 million under our Previous ABL Facility, to pay down $6.5 million of other debt and capital lease obligations, to pay financing fees of $5.6 million in connection with the issuance of our 2018 Notes, to pay a large insurance claim and issue a loan to a new independent affiliate.

Off-Balance Sheet Arrangements

We have no off-balance sheet arrangements as defined under Item 303(a) (4) of Regulation S-K.

Contractual Obligations

The following is a schedule of our long-term contractual commitments, including the current portion of our long-term indebtedness at December 31, 2012 over the periods we expect them to be paid (in thousands):

	TOTAL		Year 2013		Years 2014 & 2015		Years 2016 & 2017		The Five Years after 2017
Operating leases (1)	$	99,278	$	21,877	$	39,111	$	35,305	$	2,985
Total indebtedness (2)		414,033		3,918		2,349		182,766		225,000
Capital leases		6,038		3,912		1,943		183		—
Interest on indebtedness (3)		153,554		28,751		56,920		49,367		18,516
Total contractual cash obligations (4) (5) (6) (7)	$	672,903	$	58,458	$	100,323	$	267,621	$	246,501

(1) These obligations represent the minimum rental commitments under all non-cancelable operating leases including the guaranteed residual values at the end of the leases. Commitments also include the operating lease for our corporate headquarters. We expect that some of our operating lease obligations for tractors and trailers will be partially offset by rental revenue from subleasing the tractors to independent affiliates and independent owner-operators and subleasing trailers to independent affiliates.

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(2) Includes aggregate unamortized discount of $1.3 million related to the 2018 Notes.

(3) Amounts presented for interest payments assume that all long-term debt obligations outstanding as of December 31, 2012 will remain outstanding until maturity and interest rates on variable-rate debt in effect as of December 31, 2012 will remain in effect until maturity.

(4) Excludes long-term pension obligations as we are unable to reasonably estimate the ultimate amount or timing of settlement of such obligations. As of December 31, 2012, obligations of $21.1 million were reflected in the consolidated balance sheet. This amount represented our unfunded status of such plans, which is the difference between our projected benefit obligation and the fair value of plan assets, as of such date. See Note 17 of the Notes to Consolidated Financial Statements.

(5) Excludes liabilities associated with environmental matters as we are unable to reasonably estimate the ultimate amount or timing of settlement of such liabilities. Liabilities of $9.0 million, which represent our reserves for environmental compliance and remediation were reflected in the consolidated balance sheet as of December 31, 2012. See Note 20 of the Notes to Consolidated Financial Statements.

(6) Excludes accrued loss and damage claims as we are unable to reasonably estimate the ultimate amount or timing of settlement of such claims. As of December 31, 2012, accrued loss and damage claims of $16.8 million, which represented the balance of our reserves for such liabilities, were reflected in the consolidated balance sheet.

(7) Excludes liabilities associated with uncertain tax positions as we are unable to reasonably estimate the ultimate amount or timing of settlement of such positions. See Note 16 of the Notes to Consolidated Financial Statements.

Long-term Debt

Long-term debt consisted of the following (in thousands):

	December 31, 2012			December 31, 2011
Capital lease obligations	$	6,038		$	9,101
ABL Facility		161,200			65,500
9.875% Second-Priority Senior Secured Notes, due 2018		225,000			225,000
5% Subordinated Acquisition Notes		21,300			—
Other Notes		6,533			8,943
Long-term debt, including current maturities		420,071			308,544
Discount on Notes		(1,265	)		(1,481	)
		418,806			307,063
Less current maturities of long-term debt (including capital lease obligations)		(7,831	)		(9,400	)
Long-term debt, less current maturities (including capital lease obligations)	$	410,975		$	297,663

Debt Retirement

The following is a schedule of our indebtedness at December 31, 2012 over the periods we are required to pay such indebtedness (in thousands):

	2013		2014		2015		2016		2017		Thereafter		Total
Capital lease obligations	$	3,912	$	1,610	$	333	$	106	$	77		—	$	6,038
ABL Facility		—		—		—		161,200		—		—		161,200
9.875% Second-Priority Senior Secured Notes, due 2018 (1)		—		—		—		—		—		225,000		225,000
5% Subordinated Acquisition Notes		—		—		—		—		21,300		—		21,300
Other Notes		3,919		1,265		1,084		265		—		—		6,533
Total	$	7,831	$	2,875	$	1,417	$	161,571	$	21,377		225,000	$	420,071

(1) Amount does not include the remaining unamortized original issue discount of $1.3 million related to the 2018 Notes.

The following is a schedule of our debt issuance costs for the year ended December 31 (in thousands):

	2011		Additional Debt Issuance Costs		2012 Amortization Expense			2012
ABL Facility	$	5,094	$	989	$	(1,238	)	$	4,845
9.875% Second-Priority Senior Secured Notes, due 2018		5,560		—		(895	)		4,665
Total	$	10,654	$	989	$	(2,133	)	$	9,510

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Amortization expense of deferred issuance costs was $2.1 million, $2.1 million, and $2.7 million for the years ending December 31, 2012, 2011 and 2010, respectively, and is included in interest expense. We are amortizing these costs over the term of the debt instruments.

The ABL Facility

Our ABL Facility provides for a revolving credit facility with a maturity of August 19, 2016. On September 27, 2012, our maximum borrowing capacity under the facility was increased from $250.0 million to $350.0 million. Borrowing availability under our ABL Facility did not change as a result of this amendment. Changes in borrowing availability result from increases or decreases in assets securing the ABL Facility. The ABL Facility includes borrowing capacity of up to $150.0 million for letters of credit and up to $30.0 million for swingline borrowings on same-day notice. The ABL Facility is available for working capital needs and general corporate purposes, including permitted acquisitions. At December 31, 2012, we had $55.2 million of borrowing availability under the ABL Facility.

Borrowings under the ABL Facility bear interest at a rate equal to an applicable margin plus, at our option, either a base rate or LIBOR. The applicable margin at December 31, 2012 was 1.25% for base rate borrowings and 2.25% for LIBOR borrowings. The applicable margin for borrowings will be reduced or increased based on aggregate borrowing base availability under the ABL Facility and may be further reduced in the event that our fixed charge coverage ratio as calculated under the ABL Facility exceeds a target level. The base rate is equal to the highest of the prime rate, the federal funds overnight rate plus 0.50% and 30-day LIBOR plus 1.00%. In addition to paying interest on outstanding principal under the ABL Facility, we are required to pay an unutilized commitment fee to the lenders quarterly at a rate ranging from 0.25% to 0.50%, depending on the average utilization of the ABL Facility. We also pay customary letter of credit fees quarterly. We may voluntarily repay outstanding loans under the ABL Facility at any time without premium or penalty, other than customary “breakage” costs with respect to LIBOR loans. The interest rate on the ABL Facility at December 31, 2012 and 2011 was 2.5% and 2.3%, respectively. The borrowing base for the ABL Facility consists of eligible accounts receivable, inventory, tractor and trailer equipment, real property and certain other equipment.

We recorded $6.4 million in debt issuance costs relating to the ABL Facility. We are amortizing the debt issuance costs over the remaining term of the ABL Facility.

The Previous ABL Facility

Our ABL Facility replaced our previous ABL Facility on August 19, 2011. Our previous ABL Facility consisted of a current asset tranche in the amount of $205.0 million and a fixed asset tranche in the amount of $20.0 million. The previous ABL Facility included a sublimit of up to $150.0 million to issue letters of credit and was available for working capital needs and general corporate purposes, including permitted acquisitions. The interest rate under the current asset tranche was based, at our option, on either the administrative agent’s base rate plus 1.00% or on the Eurodollar LIBOR rate plus an applicable margin. The administrative agent’s base rate was equal to the greater of the federal funds overnight rate plus 0.50% or the prime rate. The interest rate under the fixed asset tranche was based, at our option, on either the administrative agent’s base rate plus 1.25% or on LIBOR plus an applicable margin. The applicable margin under either tranche was subject to increases or reductions based upon the amounts available for borrowing.

Accounting Treatment for the Exchange of ABL Facility for Previous ABL Facility and Amendment of ABL Facility

The exchange of our previous ABL Facility for the ABL Facility was treated partially as a debt modification and partially as a debt extinguishment in accordance with FASB guidance. Under applicable FASB guidance, we compared the product of the remaining term multiplied by the maximum borrowing capacity of our previous ABL Facility to the maximum borrowing capacity of the new arrangement on a creditor-by-creditor basis to determine the accounting treatment. For each creditor, if the borrowing capacity of the new arrangement is greater than or equal to the maximum borrowing capacity of the old arrangement, then the exchange is classified as a modification, and, if not, the exchange is classified as an extinguishment in proportion to the percentage of the decrease. If the exchange is classified as a modification, then any unamortized debt issuance costs relating to our previous ABL Facility are allocated to the ABL Facility and amortized over the term of the ABL Facility using the effective interest method. Furthermore, if the exchange is classified as an extinguishment, then any unamortized debt issuance costs relating to our previous ABL Facility are written off in proportion to the decrease in maximum borrowing capacity of the ABL Facility. Upon the exchange of

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our previous ABL Facility with the ABL Facility, we wrote off $0.9 million of unamortized debt issuance costs, reflecting the proportion of such costs determined to be for indebtedness treated as extinguished, and the remaining unamortized debt issuance costs of $1.3 million, relating to indebtedness deemed a modification, were allocated to the ABL Facility. The recent amendment to the ABL Facility was treated as a modification.

9.875% Second-Priority Senior Secured Notes Due 2018

On November 3, 2010, we issued $225.0 million aggregate principal amount of the 2018 Notes. With the proceeds of the issuance of the 2018 Notes, we repaid and redeemed certain of our outstanding notes, redeemed $47.5 million of our 2013 PIK Notes, and paid down a portion of our outstanding borrowings under the previous ABL Facility.

Interest on the 2018 Notes is payable at a rate of 9.875% per annum, semiannually on May 1 and November 1 of each year. The payment obligations of QD LLC and QD Capital under the 2018 Notes are guaranteed by QDI and by all of its 100% owned domestic subsidiaries other than immaterial subsidiaries. The 2018 Notes are senior obligations of QD LLC and QD Capital and are secured by a second-priority lien on certain assets. Pursuant to an intercreditor agreement, the liens on the collateral securing the 2018 Notes rank junior in right of payment to the ABL Facility and obligations under certain hedging agreements and cash management obligations and certain other first-lien obligations.

The 2018 Notes mature on November 1, 2018. Prior to November 1, 2014, we may redeem the 2018 Notes, in whole or in part, at a price equal to 100% of the principal amount of the 2018 Notes redeemed, plus accrued and unpaid interest to the redemption date, plus an additional “make-whole premium” intended to capture the value of holding 2018 Notes through November 1, 2014, but not less than 1%. During any twelve-month period prior to November 1, 2014, we may also redeem up to 10% of the original aggregate principal amount of the 2018 Notes at a redemption price of 103%, plus accrued and unpaid interest to the redemption date. Additionally, at any time prior to November 1, 2013, we may redeem up to 35% of the principal amount of the 2018 Notes at a redemption price of 109.875%, plus accrued and unpaid interest to the redemption date, with the net proceeds of one or more equity offerings so long as at least 50% of the aggregate original principal amount of the 2018 Notes remains outstanding afterwards. On or after November 1, 2014, we may redeem the 2018 Notes, in whole or in part, at the following prices (expressed as a percentage of principal amount), plus accrued and unpaid interest to the redemption date, if redeemed during the 12-month period commencing on November 1 of the years set forth below:

Period	Redemption Price
2014		104.938	%
2015		102.469	%
2016 and thereafter		100.000	%

We recorded $6.6 million in debt issuance costs relating to the 2018 Notes, of which $6.4 million was related to the new issuance and $0.2 million of unamortized debt issuance costs related to our 10% Senior Notes due 2013 which are no longer outstanding. We are amortizing these costs over the term of the 2018 Notes.

5% Subordinated Acquisition Notes

We issued promissory notes in an aggregate principal amount of $21.3 million as part of the consideration for the Bice acquisition. The promissory notes bear interest at a fixed rate of 5.0% per annum and mature June 1, 2017. Payments of interest only are scheduled for the end of each calendar quarter with principal payable in full at maturity. The promissory notes are unsecured and subordinated. The notes are non-negotiable and non-transferable and may be prepaid at any time without premium or penalty.

11.75% Senior Subordinated PIK Notes Due 2013

On October 15, 2009, we issued $80.7 million aggregate principal amount of the 2013 PIK Notes. The payment obligations of QD LLC and QD Capital under the 2013 PIK Notes were guaranteed by QDI and by all of its domestic subsidiaries other than immaterial subsidiaries. The 2013 PIK Notes were unsecured senior subordinated obligations of QD LLC and QD Capital. Interest was payable on the 2013 PIK Notes at 11.75% per annum, payable 9% in cash and 2.75% in the form of additional 2013 PIK Notes.

At January 1, 2011, the outstanding principal balance of these notes was $33.3 million. On January 20, 2011, we redeemed $10.0 million of these notes plus accrued and unpaid interest. On March 11, 2011, we redeemed $17.5 million of these notes plus accrued and unpaid interest. We redeemed the remaining $5.8 million of principal amount of our 2013 PIK Notes in July 2011.

We recorded $1.5 million in debt issuance costs related to the 2013 PIK Notes and we recorded $6.7 million in note issuance discount due to warrants issued concurrently with the issuance of the 2013 PIK Notes. At January 1, 2011, $2.1 million of

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unamortized debt issuance costs and original issue discount remained. In conjunction with the January 20, 2011 and March 11, 2011 redemptions, we wrote off $1.8 million of unamortized debt issuance costs and unamortized original issue costs in the first quarter of 2011. In conjunction with the July 20, 2011 final redemption, we wrote off the remaining $0.3 million of unamortized debt issuance costs and unamortized original issue costs in the third quarter of 2011.

Collateral, Guarantees and Covenants

The ABL Facility contains a fixed charge coverage ratio which only needs to be met if borrowing availability is less than a designated amount ranging from $20.0 million to $35.0 million, depending upon the size of our borrowing base. The ABL Facility contains a number of covenants that, among other things, restrict, subject to certain exceptions: (i) our ability to sell assets; (ii) incur additional indebtedness; (iii) prepay other indebtedness, including the 2018 Notes; (iv) pay dividends and distributions or repurchase QDI’s capital stock; (v) create liens on assets; (vi) make investments; (vii) make certain acquisitions; (viii) engage in mergers or consolidations; (ix) engage in certain transactions with affiliates; (x) amend certain charter documents and material agreements governing subordinated indebtedness, including the 2018 Notes; (xi) change our business; and (xii) enter into agreements that restrict dividends from QD LLC’s subsidiaries. The ABL Facility also contains certain customary affirmative covenants and events of default.

The indenture governing the 2018 Notes contains covenants that restrict, subject to certain exceptions, our ability to, among other things: (i) incur additional debt or issue certain preferred shares; (ii) pay dividends on or make other distributions in respect of QDI’s common stock or make other restricted payments; (iii) make certain investments; (iv) sell certain assets; (v) create or permit to exist dividend and/or payment restrictions affecting their restricted subsidiaries; (vi) create liens on certain assets to secure debt; (vii) consolidate, merge, sell or otherwise dispose of all or substantially all of their assets; (viii) enter into certain transactions with their affiliates; and (ix) designate their subsidiaries as unrestricted subsidiaries. The indenture also provides certain customary events of default, which, if any of them occurs, may result in the principal, interest and any other monetary obligations on the then outstanding 2018 Notes becoming payable immediately.

The payment obligations under the ABL Facility are senior secured obligations of QD LLC and QD Capital and are secured by a first-priority lien on certain assets and guaranteed by QDI and by all of its domestic restricted subsidiaries other than immaterial subsidiaries. The payment obligations of QD LLC and QD Capital under the 2018 Notes are guaranteed by QDI and by all of its domestic subsidiaries other than immaterial subsidiaries. The 2018 Notes, and the guarantees thereof, are senior obligations of QD LLC and QD Capital and are secured by a second-priority lien on certain assets. Pursuant to an intercreditor agreement, the liens on the collateral securing the 2018 Notes rank junior in right of payment to the ABL Facility and obligations under certain hedging agreements and cash management obligations and certain other first lien obligations. We were in compliance with the covenants under the ABL Facility and the 2018 Notes at December 31, 2012.

Other Liabilities and Obligations

As of December 31, 2012, we had $26.4 million in outstanding letters of credit issued under the ABL Facility that may be drawn by third parties to satisfy some of the obligations described above and certain other obligations. We are required to provide letters of credit to our insurance administrator to ensure that we pay required claims. The letter of credit issued to our insurance administrator had a maximum draw amount of $20.0 million as of December 31, 2012. If we fail to meet certain terms of our agreement, the insurance administrator may draw down the entire letter of credit. The remaining $6.4 million of outstanding letters of credit as of December, 2012 relates to various other obligations.

In conjunction with acquisitions completed in 2012, we recorded liabilities for potential contingent consideration of approximately $11.5 million. At December 31, 2012, we have $8.8 million remaining of liabilities for potential contingent consideration. These liabilities represent our preliminary estimates which are subject to change based upon these acquired businesses meeting certain future operating and financial performance criteria. At this time, based on certain assumptions, we expect this potential contingent consideration to be paid during 2013 and expect to generate sufficient cash from operations to fund these obligations.

Our obligations for environmental matters, accrued loss and damage claims and long-term pension obligations are considered within “Contractual Obligations.”

Other Issues

While uncertainties relating to environmental, labor and other regulatory matters exist within the trucking industry, management is not aware of any trends or events likely to have a material adverse effect on liquidity or the accompanying consolidated financial statements. Our credit ratings are affected by many factors, including our financial results, operating cash flows and total indebtedness.

The ABL Facility and the indentures governing the 2018 Notes contain certain limitations on QD LLC’s ability to make distributions to QDI. We do not consider these restrictions to be significant, because QDI is a holding company with no significant operations or assets, other than ownership of 100% of QD LLC’s membership units. QD LLC’s direct and indirect 100% owned subsidiaries are generally permitted to make distributions to QD LLC, which is the principal obligor under the ABL Facility and the 2018 Notes.

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ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We are subject to market risks from (i) interest rates due to our variable interest rate indebtedness, (ii) foreign currency fluctuations due to our international operations and (iii) increased commodity prices due to the diesel consumption necessary for our operations. During the last three years, we have not held derivative instruments or engaged in other hedging transactions to reduce our exposure to such risks.

Interest Rate Risk

We are exposed to the impact of interest rate changes through our variable-rate borrowings under the ABL Facility. With regard to the ABL Facility, at QD LLC’s option, the applicable margin for borrowings at December 31, 2012 was 1.25% with respect to base rate borrowings and 2.25% with respect to LIBOR borrowings. The applicable margin for such borrowings will be reduced or increased based on aggregate borrowing base availability under the ABL Facility and may be further reduced in the event that our fixed charge coverage ratio as calculated under the ABL Facility exceeds a target level. The base rate under the ABL Facility is equal to the highest of the prime rate, the federal funds overnight rate plus 0.50%, and 30-day LIBOR plus 1.00%.

	Balance at December 31, 2012		Interest Rate at December 31, 2012			Effect of 1% Increase
	($ in 000s)					($ in 000s)
ABL Facility	$	161,200		2.50	%	$	1,612

At December 31, 2012, a 1% point increase in the current per annum interest rate would result in $1.6 million of additional interest expense during the next 12 months. The foregoing calculation assumes an instantaneous 1% point increase in the rates under the ABL Facility and that the principal amount is the amount outstanding as of December 31, 2012. The calculation therefore does not account for the differences in the market rates upon which the interest rates of our indebtedness are based, our option to elect the lowest of three different interest rates under our borrowings or other possible actions, such as prepayment, that we might take in response to any rate increase.

Foreign Currency Exchange Rate Risk

Operating in international markets involves exposure to the possibility of volatile movements in foreign exchange rates. The currencies in each of the countries in which we operate affect:

• the results of our international operations reported in United States dollars; and

• the value of the net assets of our international operations reported in United States dollars.

These exposures may impact future earnings or cash flows. Revenue from foreign locations (Canada and Mexico) represented approximately 4.7% of our consolidated revenue in 2012 and 6.1% of our consolidated revenue in 2011. The economic impact of foreign exchange rate movements is complex because such changes are often linked to variability in real growth, inflation, interest rates, governmental actions and other factors. These changes, if material, could cause us to adjust our financing and operating strategies. Therefore, to isolate the effect of changes in currency does not accurately portray the effect of these other important economic factors. As foreign exchange rates change, translation of the income statements of our international subsidiaries into U.S. dollars affects year-over-year comparability of operating results. While we may hedge specific transaction risks, we generally do not hedge translation risks because we believe there is no long-term economic benefit in doing so.

Assets and liabilities for our Canadian operations are matched in the local currency, which reduces the need for dollar conversion. Our Mexican operations use the United States dollar as their functional currency. Any foreign currency impact on translating assets and liabilities into dollars is included as a component of shareholders’ deficit. Our revenue results for 2012 were negatively impacted by a $0.4 million foreign currency movement, primarily due to the weakening of the Canadian dollar against the United States dollar.

Changes in foreign exchange rates that had the largest impact on translating our international operating profits for 2012 related to the Canadian dollar versus the United States dollar. We estimate that a 1% adverse change in the Canadian dollar foreign exchange rate would have decreased our revenues by approximately $0.4 million in 2012, assuming no changes other than the exchange rate itself. Our inter-company loans are subject to fluctuations in exchange rates primarily between the United States dollar and the Canadian dollar. Based on the outstanding balance of our intercompany loans at December 31, 2012, a change of 1% in the exchange rate for the Canadian dollar would cause a change in our foreign exchange result of less than $0.1 million.

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Commodity Price Risk

The price and availability of diesel fuel are subject to fluctuations due to changes in the level of global oil production, seasonality, weather, global politics and other market factors. Historically, we have been able to recover a majority of fuel price increases from our customers in the form of fuel surcharges. The price and availability of diesel fuel can be unpredictable as well as the extent to which fuel surcharges can be collected to offset such increases. In 2012 and 2011, a majority of fuel costs were covered through fuel surcharges.

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Financial statements and exhibits filed under this item are listed in the index appearing in Item 15 of this report.

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

None.

ITEM 9A. CONTROLS AND PROCEDURES

Attached as exhibits to this Form 10-K are certifications of our Chief Executive Officer and Chief Financial Officer, which are required in accordance with Rule 13a-14 of the Securities Exchange Act. This “Controls and Procedures” section includes information concerning the controls and controls evaluation referred to in the certifications.

Evaluation of Disclosure Controls and Procedures

As required by Exchange Act Rules 13a-15(b) and 15d-15(b), management has evaluated, with the participation of our Chief Executive Officer and Chief Financial Officer, the effectiveness of our disclosure controls and procedures as of the end of the period covered by this report. Based on their evaluation, management concluded our disclosure controls and procedures (as defined in Securities Exchange Act Rules 13a-15(e) and 15d-15(e)) were effective as of December 31, 2012 to ensure that information required to be disclosed by us in reports that we file or submit under the Securities Exchange Act is recorded, processed, summarized and reported within the time periods specified in Securities and Exchange Commission rules and forms and were effective as of December 31, 2012 to ensure that information required to be disclosed by us in the reports that we file or submit under the Securities Exchange Act is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, or persons performing similar functions, as appropriate, to allow timely decisions regarding required disclosure.

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Management’s Report on Internal Control over Financial Reporting

Management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rules 13a-15(e) and 15d-15(e). Our internal control over financial reporting is a process designed under the supervision of the Chief Executive Officer and Chief Financial Officer and effected by the Board of Directors and management, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of consolidated financial statements for external purposes in accordance with accounting principles generally accepted in the United States of America. Our internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Management has assessed the effectiveness of our internal control over financial reporting as of December 31, 2012, using the criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on that assessment and those criteria, management has determined that our internal control over financial reporting was effective as of December 31, 2012.

Management excluded the Trojan Vacuum Services, Inc., Wylie Bice Trucking LLC, RM Resources, LLC, Dunn’s Tank Service, Inc., and Nassau Disposal, Inc. (collectively the “2012 Energy Acquisitions”) businesses from its assessment of internal control over financial reporting as of December 31, 2012, because all the assets were acquired in business purchase combinations during 2012. Total assets of the 2012 Energy Acquisitions represent approximately 26.8% of our total assets as of December 31, 2012, and total revenues of the 2012 Energy Acquisitions, which are only included from date of acquisition, represent approximately 8.2% of our total revenues for the year ended December 31, 2012.

PricewaterhouseCoopers LLP, our independent registered certified public accounting firm, has audited the effectiveness of the Company’s internal controls over financial reporting as of December 31, 2012, as stated in their report which is included herein.

Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting during the quarter ended December 31, 2012 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

ITEM 9B. OTHER INFORMATION

Not applicable.

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PART III

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

Information with respect to the directors, the Audit Committee of the Board of Directors, the Nomination Committee of the Board of Directors (known as the Corporate Governance Committee), and the Audit Committee financial expert, will be contained in our 2013 Proxy Statement. The 2013 Proxy Statement is expected to be filed on or about April 25, 2013. Such information is incorporated herein by reference.

Information with respect to our executive officers who are not directors is located in Part I, Item 4 of this report.

Code of Ethics

We have adopted a Code of Conduct, which is applicable to all of our directors and employees, including our principal executive officer, our principal financial officer and our controller. A copy of the Code of Conduct can be found on our website at www.qualitydistribution.com. Any possible future amendments to or waivers from the Code of Conduct will be posted on our website.

Section 16(a) Beneficial Ownership Reporting Compliance

Information regarding compliance with Section 16(a) of the Exchange Act set forth under the heading “Section 16(a) Beneficial Ownership Reporting Compliance” will be in our 2013 Proxy Statement and is incorporated herein by reference.

ITEM 11. EXECUTIVE COMPENSATION

For information regarding our Executive Compensation, Compensation Committee Interlocks and Insider Participation, and our Compensation Committee Report, we direct you to the section entitled “Executive Compensation” that will be in the 2013 Proxy Statement. We are incorporating the information contained in that section of our Proxy Statement here by reference.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED SHAREHOLDER MATTERS

Information regarding the security ownership of certain beneficial owners and management and related shareholder matters and equity compensation plans will be set forth under the heading “Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters” in our 2013 Proxy Statement and is incorporated herein by reference.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE

The information required by this item will be incorporated by reference from our 2013 Proxy Statement under the headings “Certain Relationships and Related Party Transactions” and “Corporate Governance”.

Disclosure pursuant to Section 219 of the Iran Threat Reduction and Syria Human Rights Act.

On February 12, 2013, certain investment funds affiliated with Apollo Global Management, LLC beneficially owned approximately 19.6% of the ordinary shares of LyondellBasell Industries N.V. (“LyondellBasell”) and have certain director nomination rights. LyondellBasell may be deemed to be under common control with us, but this statement is not meant to be an admission that common control exists. As a result, it appears that we are required to provide disclosures as set forth herein pursuant to Section 219 of the new Iran Threat Reduction and Syria Human Rights Act of 2012 and Section 13(r) of the Securities Exchange Act. The Annual Report on Form 10-K for the year ended December 31, 2012 filed by LyondellBasell with the SEC on February 12, 2013 contained the disclosure set forth below (with all references contained therein to “the Company” being references to LyondellBasell and its consolidated subsidiaries).

The disclosure below does not relate to any activities conducted by us and does not involve us or our management. The disclosure relates solely to activities conducted by LyondellBasell and its consolidated subsidiaries.

Disclosure pursuant to Section 219 of the Iran Threat Reduction & Syria Human Rights Act

Certain non-U.S. subsidiaries of our predecessor, LyondellBasell AF, licensed processes to construct and operate manufacturing plants in Iran that produce polyolefin plastic material, which is used in the packaging of household and consumer goods. The subsidiaries also provided engineering support and supplied catalyst products to be used in these manufacturing operations. In 2009, the Company made the decision to suspend the pursuit of any new business dealings in Iran.

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As previously disclosed by the Company, in 2010, our management made the further decision to terminate all business by the Company and its direct and indirect subsidiaries with the government, entities and individuals in Iran. The termination was made in accordance with all applicable laws and with the knowledge of U.S. Government authorities. As part of the termination, we entered into negotiations with Iranian counterparties in order to exit our contractual obligations. As described below, two transactions occurred under settlement agreements in early 2012, although the agreements to cease our activities with these counterparties were entered into in 2011. In January 2012, one of our non-U.S. subsidiaries received a final payment of approximately €3.5 million for a shipment of catalyst from an entity that is 50% owned by the National Petrochemical Company of Iran.

Our shipment of the catalyst was in February 2012 as part of the agreement related to our termination and cessation of all business under agreements with the counterparty. In 2012, the gross revenue from this limited activity was approximately, €4.2 million and profit attributable to it was approximately, €2.4 million.

In January and February of 2012, one of the Company’s non-U.S. subsidiaries provided certain engineering documents relating to a polyolefin plastic process to a licensee comprising three Iranian companies, one of which is 20% owned by the National Oil Company of Iran. The provision of documents was the Company’s final act with respect to the termination and cessation of all business under agreements with the counterparties. No gross revenue or profit was attributable to this activity in 2012. The transactions disclosed in this report do not constitute violations of applicable anti-money laundering laws or sanctions laws administered by the U.S. Department of the Treasury, Office of Foreign Assets Control (OFAC), and are not the subject of any enforcement actions under the Iran sanction laws.

We have not conducted, and do not intend to conduct, any further business activities in Iran or with Iranian counterparties.

ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES

The information appearing in our 2013 Proxy Statement under the headings “Report of the Audit Committee of the Board of Directors,” “Appointment of the Independent Registered Certified Public Accounting Firm” and “Fees Paid to the Independent Registered Certified Public Accounting Firm in 2012 and 2011” is incorporated by reference.

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PART IV

ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

(a) The documents filed as part of this report are as follows:

1. The consolidated financial statements and accompanying report of independent registered certified public accountants are listed in the Index to Financial Statements and are filed as part of this report.

All consolidated financial statement schedules are omitted because they are inapplicable, not required or the information is included elsewhere in the consolidated financial statements or the notes thereto.

2. Exhibits required by Item 601 of Regulation S-K are submitted as a separate section herein immediately following the “Exhibit Index”.

(b) Other Exhibits

No exhibits in addition to those previously filed or listed in item 15(a) (2) and filed herein.

(c) Not Applicable

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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	QUALITY DISTRIBUTION, INC.
March 13, 2013	/S/    GARY R. ENZOR
	GARY R. ENZOR CHIEF EXECUTIVE OFFICER (DULY AUTHORIZED OFFICER)

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

DATE	SIGNATURE	TITLE
March 13, 2013	/s/ Gary R. Enzor Gary R. Enzor	Chief Executive Officer and Director (Principal Executive Officer)
March 13, 2013	/s/ Joseph J. Troy Joseph J. Troy	Executive Vice President and Chief Financial Officer (Principal Financial and Accounting Officer)
March 13, 2013	* Thomas M. White	Director and Chairman of the Board
March 13, 2013	* Kevin E. Crowe	Director
March 13, 2013	* Richard B. Marchese	Director
March 13, 2013	* Thomas R. Miklich	Director
March 13, 2013	* M. Ali Rashid	Director
March 13, 2013	* Annette M. Sandberg	Director
March 13, 2013	* Alan H. Schumacher	Director

*By:	/s/ Gary R. Enzor
	Gary R. Enzor
	Attorney-in-fact

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QUALITY DISTRIBUTION, INC. AND SUBSIDIARIES

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS

	Page(s)
Report of Independent Registered Certified Public Accounting Firm		F-2
Consolidated Statements of Operations for the Years Ended December 31, 2012, 2011 and 2010		F-3
Consolidated Statements of Comprehensive Income (Loss) for the Years Ended December  31, 2012, 2011 and 2010		F-4
Consolidated Balance Sheets as of December 31, 2012 and 2011		F-5
Consolidated Statements of Shareholders’ Deficit for the Years Ended December  31, 2012, 2011 and 2010		F-6–F-7
Consolidated Statements of Cash Flows for the Years Ended December 31, 2012, 2011 and 2010		F-8
Notes to Consolidated Financial Statements		F-10–F-62

REPORT OF INDEPENDENT REGISTERED CERTIFIED PUBLIC ACCOUNTING FIRM

To: Board of Directors and shareholders of Quality Distribution, Inc.

In our opinion, the accompanying consolidated balance sheets and the related consolidated statements of operations, of comprehensive income (loss), of shareholders’ deficit, and of cash flows present fairly, in all material respects, the financial position of Quality Distribution, Inc. and its subsidiaries at December 31, 2012 and December 31, 2011, and the results of their operations and their cash flows for each of the three years in the period ended December 31, 2012 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2012, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). The Company’s management is responsible for these financial statements, for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in Management’s Report on Internal Control over Financial Reporting appearing under Item 9A. Our responsibility is to express opinions on these financial statements and on the Company’s internal control over financial reporting based on our integrated audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement and whether effective internal control over financial reporting was maintained in all material respects. Our audits of the financial statements included examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

As described in Management’s Report on Internal Control over Financial Reporting, management has excluded the Trojan Vacuum Services, Inc., Wylie Bice Trucking, LLC, RM Resources, LLC, Dunn’s Tank Service, Inc., and Nassau Disposal, Inc. businesses from its assessment of internal control over financial reporting as of December 31, 2012 because they acquired all the assets of these companies in business purchase combinations during 2012. We have also excluded Trojan Vacuum Services, Inc., Wylie Bice Trucking, LLC, RM Resources, LLC, Dunn’s Tank Service, Inc., and Nassau Disposal, Inc. from our audit of internal control over financial reporting. Trojan Vacuum Services, Inc., Wylie Bice Trucking, LLC, RM Resources, LLC, Dunn’s Tank Service, Inc., and Nassau Disposal, Inc. businesses, whose total assets and total revenues represent 26.8% and 8.2%, respectively, of the related consolidated financial statement amounts as of and for the year ended December 31, 2012.

/s/ PricewaterhouseCoopers LLP

PricewaterhouseCoopers LLP

Tampa, Florida

March 13, 2013

F-2

QUALITY DISTRIBUTION, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

For the Years Ended December 31, 2012, 2011 and 2010

(In thousands, Except Per Share Data)

	Years ended December 31,
	2012			2011			2010
OPERATING REVENUES:
Transportation	$	597,406		$	517,780		$	498,446
Service revenue		121,101			110,588			107,474
Fuel surcharge		123,611			117,583			80,678
Total operating revenues		842,118			745,951			686,598
OPERATING EXPENSES:
Purchased transportation		552,524			522,866			471,792
Compensation		82,143			61,098			57,563
Fuel, supplies and maintenance		82,033			51,102			54,367
Depreciation and amortization		21,090			14,413			16,004
Selling and administrative		33,882			21,647			19,339
Insurance costs		15,830			14,042			15,546
Taxes and licenses		2,825			2,211			2,218
Communication and utilities		3,636			2,732			4,119
(Gain) loss on disposal of property and equipment		(988	)		(1,318	)		1,136
Restructuring (credit) costs		—			(521	)		7,779
Total operating expenses		792,975			688,272			649,863
Operating income		49,143			57,679			36,735
Interest expense		30,089			29,497			36,170
Interest income		(831	)		(585	)		(622	)
Write-off of debt issuance costs		—			3,181			7,391
Other (income) expense, net		(2,864	)		214			791
Income (loss) before income taxes		22,749			25,372			(6,995	)
(Benefit from) provision for income taxes		(27,327	)		1,941			411
Net income (loss)	$	50,076		$	23,431		$	(7,406	)
PER SHARE DATA:
Net income (loss) per common share
Basic	$	1.89		$	1.01		$	(0.36	)
Diluted	$	1.84		$	0.96		$	(0.36	)
Weighted-average number of shares
Basic		26,502			23,088			20,382
Diluted		27,207			24,352			20,382

The accompanying notes are an integral part of these consolidated financial statements.

F-3

QUALITY DISTRIBUTION, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

For the Years Ended December 31, 2012, 2011 and 2010

(In thousands)

	Years ended December 31,
	2012			2011			2010
Net income (loss)	$	50,076		$	23,431		$	(7,406	)
Other comprehensive loss:
Adjustment to pension obligation, net of tax		(328	)		(5,213	)		(520	)
Translation adjustment, net of tax		(43	)		26			(87	)
Total other comprehensive loss		(371	)		(5,187	)		(607	)
Comprehensive income (loss)	$	49,705		$	18,244		$	(8,013	)

The accompanying notes are an integral part of these consolidated financial statements.

F-4

QUALITY DISTRIBUTION, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

December 31, 2012 and 2011

(In thousands)

	December 31, 2012			December 31, 2011
ASSETS
Current assets:
Cash and cash equivalents	$	2,704		$	4,053
Accounts receivable, net		113,906			90,567
Prepaid expenses		14,651			7,849
Deferred tax asset, net		16,609			4,048
Other		9,694			3,858
Total current assets		157,564			110,375
Property and equipment, net		190,342			125,892
Goodwill		104,294			31,344
Intangibles, net		37,654			18,471
Non-current deferred tax asset, net		11,713			—
Other assets		12,036			16,313
Total assets	$	513,603		$	302,395
LIABILITIES AND SHAREHOLDERS’ DEFICIT
Current liabilities:
Current maturities of indebtedness	$	3,918		$	4,139
Current maturities of capital lease obligations		3,913			5,261
Accounts payable		9,966			7,571
Independent affiliates and independent owner-operators payable		14,243			9,795
Accrued expenses		37,889			25,327
Environmental liabilities		2,739			3,878
Accrued loss and damage claims		7,326			8,614
Total current liabilities		79,994			64,585
Long-term indebtedness, less current maturities		408,850			293,823
Capital lease obligations, less current maturities		2,125			3,840
Environmental liabilities		6,302			6,222
Accrued loss and damage claims		9,494			9,768
Other non-current liabilities		25,278			30,342
Total liabilities		532,043			408,580
Commitments and contingencies—Note 20
SHAREHOLDERS’ DEFICIT
Common stock, no par value; 49,000 shares authorized; 28,102 issued and 27,223 outstanding at December 31, 2012 and 24,207 issued and 23,940 outstanding at December 31, 2011.		437,192			393,859
Treasury stock, 879 shares at December 31, 2012 and 267 shares at December 31, 2011.		(5,849	)		(1,878	)
Accumulated deficit		(228,467	)		(278,543	)
Stock recapitalization		(189,589	)		(189,589	)
Accumulated other comprehensive loss		(31,752	)		(31,381	)
Stock purchase warrants		25			1,347
Total shareholders’ deficit		(18,440	)		(106,185	)
Total liabilities and shareholders’ deficit	$	513,603		$	302,395

The accompanying notes are an integral part of these consolidated financial statements.

F-5

QUALITY DISTRIBUTION, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ DEFICIT

For the Years Ended December 31, 2012, 2011 and 2010 (In thousands)

	Shares of Common Stock		Shares of Treasury Stock			Common Stock			Treasury Stock			Accumulated Deficit			Stock Recapitalization			Accumulated Other Comprehensive Loss			Stock Purchase Warrants			Stock Subscription Receivables			Total Shareholders’ Deficit
Balance, December 31, 2009		20,297		(220	)	$	364,046		$	(1,580	)	$	(294,568	)	$	(189,589	)	$	(25,587	)	$	6,696		$	(154	)	$	(140,736	)
Net loss		—		—			—			—			(7,406	)		—			—			—			—			(7,406	)
Issuance of restricted stock		69		—			—			—			—			—			—			—			—			—
Amortization of restricted stock		—		—			923			—			—			—			—			—			—			923
Amortization of stock options		—		—			1,350			—			—			—			—			—			—			1,350
Stock warrant exercise		1,311		—			5,013			—			—			—			—			(5,013	)		—			—
Stock option exercise		1		—			3			—			—			—			—			—			—			3
Forgiveness of stock subscription receivable		—		—			—			—			—			—			—			—			21			21
Satisfaction of stock subscription receivables		—		—			(47	)		(13	)		—			—			—			—			60			—
Other stock transactions		—		—			—			—			—			—			—			—			73			73
Translation adjustment, net of tax		—		—			—			—			—			—			(87	)		—			—			(87	)
Adjustment to pension obligation, net of tax		—		—			—			—			—			—			(520	)		—			—			(520	)
Balance, December 31, 2010		21,678		(220	)	$	371,288		$	(1,593	)	$	(301,974	)	$	(189,589	)	$	(26,194	)	$	1,683		$	—		$	(146,379	)
Net income		—		—			—			—			23,431			—			—			—			—			23,431
Issuance of restricted stock		93		—			—			—			—			—			—			—			—			—
Forfeiture of restricted stock		—		(42	)		—			(272	)		—			—			—			—			—			(272	)
Amortization of restricted stock		—		—			1,097			—			—			—			—			—			—			1,097
Amortization of stock options		—		—			1,777			—			—			—			—			—			—			1,777
Stock warrant exercise		88		—			336			—			—			—			—			(336	)		—			—
Stock option exercise		348		(1	)		1,781			(13	)		—			—			—			—			—			1,768
Proceeds from equity offering, net of transaction costs		2,000		—			17,580			—			—			—			—			—			—			17,580
Satisfaction of stock subscription receivables		—		(4	)		—			—			—			—			—			—			—			—
Translation adjustment, net of tax		—		—			—			—			—			—			26			—			—			26
Adjustment to pension obligation, net of tax		—		—			—			—			—			—			(5,213	)		—			—			(5,213	)
Balance, December 31, 2011		24,207		(267	)	$	393,859		$	(1,878	)	$	(278,543	)	$	(189,589	)	$	(31,381	)	$	1,347		$	—		$	(106,185	)

The accompanying notes are an integral part of these consolidated financial statements.

F-6

QUALITY DISTRIBUTION, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ DEFICIT

For the Years Ended December 31, 2012, 2011 and 2010 (In thousands) continued

	Shares of Common Stock		Shares of Treasury Stock			Common Stock		Treasury Stock			Accumulated Deficit			Stock Recapitalization			Accumulated Other Comprehensive Loss			Stock Purchase Warrants			Total Shareholders’ Deficit
Net income		—		—			—		—			50,076			—			—			—			50,076
Issuance of restricted stock		182		—			—		—			—			—			—			—			—
Forfeiture of restricted stock		—		(37	)		—		(313	)		—			—			—			—			(313	)
Amortization of restricted stock		—		—			1,497		—			—			—			—			—			1,497
Amortization of stock options		—		—			1,741		—			—			—			—			—			1,741
Stock warrant exercise		346		—			1,322		—			—			—			—			(1,322	)		—
Stock option exercise		82		—			360		—			—			—			—			—			360
Proceeds from equity offering, net of transaction costs		2,500		—			30,493		—			—			—			—			—			30,493
Issuance of stock for acquisitions		785		—			7,920		—			—			—			—			—			7,920
Purchases of treasury stock		—		(575	)		—		(3,658	)		—			—			—			—			(3,658	)
Translation adjustment, net of tax		—		—			—		—			—			—			(43	)		—			(43	)
Adjustment to pension obligation, net of tax		—		—			—		—			—			—			(328	)		—			(328	)
Balance, December 31, 2012		28,102		(879	)	$	437,192	$	(5,849	)	$	(228,467	)	$	(189,589	)	$	(31,752	)	$	25		$	(18,440	)

The accompanying notes are an integral part of these consolidated financial statements.

F-7

QUALITY DISTRIBUTION, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Years Ended December 31, 2012, 2011 and 2010

(In thousands)

	Years Ended December 31,
	2012			2011			2010
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$	50,076		$	23,431		$	(7,406	)
Adjustments to reconcile to net cash and cash equivalents provided by (used in) operating activities:
Deferred income tax provision (benefit)		7,174			8,500			(2,792	)
Depreciation and amortization		21,090			14,413			16,004
Bad debt expense (recoveries)		120			(800	)		(1,279	)
(Gain ) loss on disposal of property and equipment		(988	)		(1,318	)		1,136
PIK interest on Senior Subordinated Notes		—			196			2,027
Financing costs		—			—			174
Unconsummated stock offering costs		—			—			735
Write-off of deferred financing costs		—			1,468			2,946
Write-off of bond discount		—			1,713			4,445
Stock-based compensation		3,238			2,874			2,273
Amortization of deferred financing costs		2,133			2,118			2,742
Amortization of bond discount		216			333			2,231
Contingent consideration adjustment		(2,651	)		—			—
Noncontrolling interest dividends		—			38			145
(Benefit from) provision for deferred tax asset valuation allowance		(35,282	)		(8,500	)		2,792
Changes in assets and liabilities:
Accounts receivables		(24,166	)		(7,738	)		(9,155	)
Prepaid expenses		727			2,793			4,212
Other assets		(5,340	)		1,021			(3,458	)
Accounts payable		1,964			(743	)		579
Accrued expenses		(508	)		(1,881	)		3,202
Environmental liabilities		(1,059	)		(843	)		(705	)
Accrued loss and damage claims		(1,562	)		(543	)		(471	)
Independent affiliates and independent owner-operators payable		4,448			(1,264	)		1,325
Other liabilities		(1,669	)		(852	)		(782	)
Current income taxes		(959	)		983			151
Net cash provided by operating activities		17,002			35,399			21,071
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures		(32,317	)		(38,340	)		(11,184	)
Acquisition of Greensville Transport Company		—			(8,594	)		—
Acquisition of Greensville Transport Company purchase price adjustment		(566	)		—			—
Acquisition of Trojan Vacuum Services		(8,657	)		—			—
Acquisition of Wylie Bice Trucking and RM Resources		(52,176	)		—			—
Acquisition of Dunn’s Tank Service and Nassau Disposal		(34,321	)		—			—
Acquisition of an independent affiliate’s assets		(17,143	)		—			—
Proceeds from sales of property and equipment		13,497			16,476			10,105
Net cash used in investing activities		(131,683	)		(30,458	)		(1,079	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of long-term debt		—			—			223,479
Principal payments on long-term debt		(4,754	)		(38,075	)		(205,615	)
Principal payments on capital lease obligations		(3,786	)		(4,532	)		(5,162	)
Proceeds from revolver		236,800			175,457			59,200
Payments on revolver		(141,100	)		(148,457	)		(88,700	)
Payments on acquisition notes		(465	)		(632	)		(917	)
Financing costs		—			—			(174	)

F-8

QUALITY DISTRIBUTION, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Years Ended December 31, 2012, 2011 and 2010 (continued)

(In thousands)

	Years Ended December 31,
	2012			2011			2010
Deferred financing costs		(989	)		(4,965	)		(5,594	)
Unconsummated stock offering costs		—			—			(735	)
Change in book overdraft		431			1,085			441
Purchases of treasury stock		(3,658	)		—			—
Noncontrolling interest dividends		—			(38	)		(145	)
Redemption of noncontrolling interest		—			(1,833	)		—
Proceeds from equity offering, net of transaction costs		30,493			17,580			—
Proceeds from exercise of stock options		360			1,768			43
Net cash provided by (used in) financing activities		113,332			(2,642	)		(23,879	)
Effect of exchange rate changes on cash		—			1			7
Net (decrease) increase in cash and cash equivalents		(1,349	)		2,300			(3,880	)
Cash and cash equivalents, beginning of year		4,053			1,753			5,633
Cash and cash equivalents, end of year	$	2,704		$	4,053		$	1,753
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid during the year for:
Interest	$	27,409		$	26,535		$	29,427
Income Taxes		1,538			949			494
SUPPLEMENTAL DISCLOSURES OF NON-CASH FLOW INFORMATION:
Minimum pension liability accrual, net of tax	$	1,989		$	6,484		$	1,813
Original and amended capital lease obligations and lease residual guarantees		7,688			2,153			846
Notes payable for purchase of business assets or acquisitions		21,300			497			784
Notes payable—insurance fundings		2,011			2,062			1,582
Earnouts related to acquisitions		11,533			418			—
Liabilities assumed with the acquisition of Greensville Transport Company		—			821			—
Stock issuance related to acquisitions		7,920			—			—

The accompanying notes are an integral part of these consolidated financial statements.

F-9

QUALITY DISTRIBUTION, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

For the Years Ended December 31, 2012, 2011 and 2010

1. BUSINESS ORGANIZATION

Quality Distribution, Inc. (the “Company”, “QDI”, or “we”) and its subsidiaries are engaged primarily in transportation of bulk chemicals in North America. We are the largest provider of intermodal ISO tank container and depot services in North America through our wholly-owned subsidiary, Boasso America Corporation (“Boasso”). In 2011, we entered the gas and oil frac shale energy markets, providing logistics services to these markets through our wholly-owned subsidiaries, QC Energy Resources, Inc. and QC Environmental Service, Inc, collectively (“QCER”). We conduct a significant portion of our business through a network of independent affiliates and independent owner-operators. Independent affiliates are companies which enter into various term contracts with the Company. Independent affiliates are responsible for paying for their own power equipment (including debt service), fuel and other operating costs. Most of the independent affiliates lease trailers from us. Independent owner-operators are independent contractors, who, through a contract with us, supply one or more tractors and drivers for our use. Contracts with independent owner-operators may be terminated by either party on short notice. We charge independent affiliates and third parties for the use of tractors and trailers as necessary. In exchange for the services rendered, independent affiliates and independent owner-operators are normally paid a percentage of the revenues collected on each load hauled.

2. SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

These consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States using U.S. dollars as the reporting currency as the majority of our business is in the U.S. The consolidated financial statements include the accounts of QDI and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. The redeemable noncontrolling interest of the outstanding preferred stock of Chemical Leaman Corp. (“CLC”), a wholly-owned subsidiary of QDI, was fully redeemed in 2011.

Cash and Cash Equivalents

We consider all highly liquid investments with original maturities of three months or less to be cash equivalents. The Company has a restricted cash balance of $0.8 million at December 31, 2012 used to guarantee an environmental matter. Book overdrafts are included in accounts payable.

Reclassification

Certain prior period amounts have been reclassified amongst operating expense line items to conform to the current year presentation.

Allowance for Uncollectible Receivables

We have established a reserve for uncollectible receivables based on a combination of historical data, cash payment trends, specific customer issues, write-off trends, general economic conditions and other factors. We charge uncollectible amounts to our allowance based on various issues, including cash payment trends and specific customer issues. These factors are continuously monitored by our management to arrive at the estimate for the amount of accounts receivable that may be ultimately uncollectible. The receivables analyzed include trade receivables, as well as loans and advances made to independent affiliates and independent owner-operators.

F-10

QUALITY DISTRIBUTION, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements—(Continued)

For the Years Ended December 31, 2012, 2011 and 2010

Tires

We capitalize the cost of tires mounted on tractors and trailers that we acquire as a part of the total equipment cost and depreciate the cost over the useful life of the related equipment. Subsequent replacement tires are expensed at the time those tires are placed in service similar to other repairs and maintenance costs.

Property and equipment

Property and equipment expenditures, including tractor and trailer rebuilds that extend the useful lives of such equipment, are capitalized and recorded at cost. For financial statement purposes, these assets are depreciated using the straight-line method over the estimated useful lives of the assets to an estimated salvage value.

The asset lives used are presented in the following table:

	Average Lives (in years)
Buildings and improvements	10 - 25
Tractors and terminal equipment	5 - 7
Trailers	15 - 20
Energy logistics equipment	4 - 15
Disposal wells	5 - 15
Furniture and fixtures	3 - 5
Other equipment	3 - 10

Building improvements are recorded at the shorter of the lease term or useful life. Tractor and trailer rebuilds, which are recurring in nature and extend the lives of the related assets, are capitalized and depreciated over the period of extension, generally 3 to 10 years, based on the type and extent of these rebuilds. Maintenance and repairs are charged directly to expense as incurred. Management estimates the useful lives of these assets based on historical trends and the age of the assets when placed in service. Any changes in the actual lives could result in material changes in the net book value of these assets. Additionally, we estimate the salvage values of these assets based on historical sales or disposals, and any changes in the actual salvage values could also affect the net book value of these assets.

Furthermore, we evaluate the recoverability of our long-lived assets whenever adverse events or changes in the business climate indicate that the expected undiscounted future cash flows from the related asset may be less than previously anticipated. If the net book value of the related asset exceeds the undiscounted future cash flows of the asset, the carrying amount would be reduced to the present value of its expected future cash flows and an impairment loss would be recognized. This analysis requires us to make significant estimates and assumptions in projecting future cash flows, and changes in facts and circumstances could result in material changes in the amount of any write-offs for impairment.

Goodwill and Intangible Assets

We evaluate goodwill and indefinite-lived intangible assets for impairment at least annually during the second quarter with a measurement date of June 30, and more frequently if indicators of impairment arise, in accordance with Financial Accounting Standards Board (“FASB”) guidance on goodwill and other intangible assets. We evaluate goodwill for impairment by determining the fair value for each reporting unit to which our goodwill relates. At December 31, 2012, our energy logistics, intermodal and chemical logistics segments contain goodwill and other identifiable intangible assets associated with past and recent acquisitions.

The methodology applied in the analysis performed at June 30, 2012 was consistent with the methodology applied in prior years, but was based on updated assumptions, as appropriate. As a result of our analysis, we concluded no impairment had occurred as

F-11

QUALITY DISTRIBUTION, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements—(Continued)

For the Years Ended December 31, 2012, 2011 and 2010

of June 30, 2012, 2011 and 2010. We continued to evaluate indicators of impairment quarterly following our annual goodwill impairment test at June 30, 2012 through December 31, 2012. There were no indications that a triggering event has occurred. As of December 31, 2012, we had total goodwill of $104.3 million, of which $71.3 million was allocated to our energy logistics segment, $31.4 million was allocated to our intermodal segment and $1.6 million was allocated to our chemical logistics segment. As of December 31, 2012, we had total intangibles of $37.7 million, of which $20.9 million was allocated to our energy logistics segment, $16.6 million was allocated to our intermodal segment and $0.2 million was allocated to our chemical logistics segment.

Goodwill

Under the FASB guidance, the process of evaluating the potential impairment of goodwill involves a two-step process and requires significant judgment at many points during the analysis. In the first step, we determine whether there is an indication of impairment by comparing the fair value of a reporting unit to its carrying amount, including goodwill. If, based on the first step, we determine that there is an indication of goodwill impairment, we assess the impairment in step two in accordance with the FASB guidance.

In the first step, we determine the fair value for each reporting unit using a combination of two valuation approaches: the market approach and the income approach. The market approach uses a guideline company methodology which is based upon a comparison of each reporting unit to similar publicly-traded companies within our industry. We derive a market value of invested capital or business enterprise value for each comparable company by multiplying the price per share of common stock of the publicly traded companies by their total common shares outstanding and adding each company’s current level of debt. We calculate a business enterprise multiple based on revenue and earnings from each company, then apply those multiples to each reporting unit’s revenue and earnings to conclude a reporting unit business enterprise value. Assumptions regarding the selection of comparable companies are made based on, among other factors, capital structure, operating environment and industry. As the comparable companies were typically larger and more diversified than our reporting units, multiples were adjusted prior to application to our reporting units’ revenues and earnings to reflect differences in margins, long-term growth prospects and market capitalization.

The income approach uses a discounted debt-free cash flow analysis to measure fair value by estimating the present value of future economic benefits. To perform the discounted debt-free cash flow analysis, we develop a pro forma analysis of each reporting unit to estimate future available debt-free cash flow and discounting estimated debt-free cash flow by an estimated industry weighted average cost of capital based on the same comparable companies used in the market approach. Per the FASB guidance, the weighted average cost of capital is based on inputs (e.g., capital structure, risk, etc.) from a market participant’s perspective and not necessarily from the reporting unit or QDI’s perspective. Future cash flow is projected based on assumptions for our economic growth, industry expansion, future operations and the discount rate, all of which require significant judgments by management.

After computing a separate business enterprise value under the income approach and market approach, we apply a weighting to them to derive the business enterprise value of the reporting unit. The income approach and market approach were both weighted 50% in the analysis performed at June 30, 2012. The weightings are evaluated each time a goodwill impairment assessment is performed and give consideration to the relative reliability of each approach at that time. Given that the business enterprise value derived from the market approach supported what was calculated in the income approach, we believed that both approaches should be equally weighted. Based on these weightings, we calculated a business enterprise value for the reporting unit. We then add debt-free liabilities of the reporting unit to the calculated business enterprise value to derive an implied fair value of the reporting unit. The implied fair value is then compared to the reporting unit’s carrying value. Upon completion of the analysis in step one, we determined that the fair value of both our energy logistics and intermodal reporting units exceeded its respective carrying value. As such, a step two analysis was not required.

Intangible assets

To determine the implied fair value of our indefinite-lived intangible assets, we utilize the relief from royalty method, pursuant to which those assets are valued by reference to the amount of royalty income they would generate if licensed in an arm’s length transaction. Under the relief from royalty method, similar to the discounted cash flow method, estimated net revenues expected to be generated by the asset during its life are multiplied by a benchmark royalty rate and then discounted by the estimated weighted average cost of capital associated with the asset. The resulting capitalized royalty stream is an indication of the value of owning the asset. Based upon management’s review of the value of the indefinite-lived intangible assets in our intermodal segment, we determined that the implied fair value exceeded its carrying value.

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QUALITY DISTRIBUTION, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements—(Continued)

For the Years Ended December 31, 2012, 2011 and 2010

If there are changes to the methods used to allocate carrying values, if management’s estimates of future operating results change, if there are changes in the identified reporting units or if there are changes to other significant assumptions, the estimated carrying values for each reporting unit and the estimated fair value of our goodwill could change significantly, and could result in future impairment charges, which could materially impact our results of operations and financial condition.

Other Assets—Deferred Loan Costs

Costs incurred to issue debt are deferred and amortized as a component of interest expense over the estimated term of the related debt using the straight-line method.

Taxation

We use the asset and liability method of accounting for income taxes. If, on the basis of available evidence, it is more likely than not that all or a portion of the deferred tax asset will not be realized, the asset must be reduced by a valuation allowance. Any change in the actual future results of operations could impact the valuation of the net deferred tax asset.

During 2012, we recorded a deferred tax benefit of $28.1 million of which $35.3 related to a prior year valuation allowance release. These releases of the valuation allowance are a result of our consistent cumulative income position, improved operating results, and recent expansion of our energy business through acquisition. Our assessment of the recoverability of the deferred tax assets primarily relied on the positive evidence related to our cumulative income position. We have determined that it is more likely than not that expected future taxable income will be sufficient to utilize substantially all of our U.S. federal and state net deferred tax assets. We will continue to maintain a valuation allowance against our net deferred tax asset related to foreign tax credits to the extent sufficient positive evidence does not exist to support their utilization. Changes in deferred tax assets and valuation allowance are reflected in the (benefit from) provision for income taxes in our consolidated statements of operations.

Under FASB guidance, we account for uncertain tax positions using a two-step process. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step requires us to estimate and measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. It is inherently difficult and subjective to estimate such amounts, as we have to determine the probability of various possible outcomes. We re-evaluate these uncertain tax positions on a quarterly basis. This evaluation is based on factors including, but not limited to, changes in facts or circumstances, changes in tax law, effectively settled issues under audit, and new audit activity. Such a change in recognition or measurement would result in the recognition of a tax benefit or an additional charge to the tax provision.

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QUALITY DISTRIBUTION, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements—(Continued)

For the Years Ended December 31, 2012, 2011 and 2010

Environmental liabilities

We have reserved for potential environmental liabilities based on the best estimates of potential clean-up and remediation for known environmental sites. We employ a staff of environmental professionals to administer all phases of our environmental programs and use outside experts where needed. These professionals develop estimates of potential liabilities at these sites based on projected and known remediation costs. These cost projections are determined through previous experiences with other sites and through bids from third-party contractors. Management believes current reserves are reasonable based on current information, but estimates of environmental reserves and exposures may be affected by information subsequently received.

Accrued Loss and Damage Claims

We currently maintain liability insurance for bodily injury and property damage claims, covering all employees, independent owner-operators and independent affiliates, and workers’ compensation insurance coverage on our employees and company drivers. This insurance includes deductibles of $2.0 million per incident for bodily injury and property damage and $1.0 million for workers’ compensation. As such, we are subject to liability as a self-insurer to the extent of these deductibles under various policies. We are self-insured for damage to the equipment we own or lease and for cargo losses. As of December 31, 2012, we had $20.0 million in an outstanding letter of credit to our insurance company to guarantee the self-insurance portion of our liability. If we fail to meet certain terms of our agreement, the insurance company may draw down the letter of credit. In developing liability reserves, we rely on insurance company estimates, the judgment of our own licensed claims adjusters, and independent professional actuaries and attorneys. The most significant assumptions used in the estimation process include determining the trends in loss costs, the expected consistency in the frequency and severity of claims incurred but not yet reported to prior-year claims, and expected costs to settle unpaid claims. Management believes reserves are reasonable given known information, but as each case develops, estimates may change to reflect the effect of new information.

Redeemable Noncontrolling Interest

Shares of Series C preferred stock of our subsidiary, CLC, were held by two shareholders that were affiliated with us. These shareholders were entitled to dividends on each of their shares of Series C preferred stock, payable quarterly, at a rate of 8.0% (or $480 per preferred share) per annum. On March 3, 2011, we redeemed all 302 shares for $1.8 million plus accrued dividends through the redemption date.

Foreign Currency Translation

The translation from Canadian dollars to U.S. dollars is performed for balance sheet accounts using exchange rates in effect at the balance sheet date and for revenue and expense accounts using a weighted-average exchange rate in effect during the period. The gains or losses, net of income taxes, resulting from such translation are included in shareholders’ deficit as a component of accumulated other comprehensive loss. Gains or losses from foreign currency transactions are included in other expense.

Accumulated Other Comprehensive Loss

The components of accumulated other comprehensive loss are as follows as of December 31 (in thousands):

	2012		2011
Unrecognized loss and prior service costs	$	30,572	$	30,244
Foreign currency translation adjustment		1,180		1,137
	$	31,752	$	31,381

Revenue Recognition

Transportation revenue, including fuel surcharges and related costs, is recognized on the date freight is delivered. Service revenue consists primarily of rental revenues (primarily tractor and trailer rental), intermodal and depot revenues, disposal well services revenue, tank wash revenues and insurance related administrative services. Rental revenues from independent affiliates,

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QUALITY DISTRIBUTION, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements—(Continued)

For the Years Ended December 31, 2012, 2011 and 2010

independent owner-operators and third parties are recognized ratably over the lease period. Intermodal and depot revenues, consisting primarily of repair and storage services, are recognized when the services are rendered. Disposal well services revenue are recognized when the services are rendered. Insurance related administrative service revenues are recorded ratably over the service period. We recognize all revenues on a gross basis as the principal and primary obligor with risk of loss in relation to our responsibility for completion of services as contracted with our customers.

F-15

QUALITY DISTRIBUTION, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements—(Continued)

For the Years Ended December 31, 2012, 2011 and 2010

Service Revenue

The components of service revenue are as follows for the year ended December 31 (in thousands):

	2012		2011		2010
Rental revenue	$	53,044	$	50,726	$	53,911
Intermodal and depot revenues		45,008		42,169		37,004
Other revenue		23,049		17,693		16,559
	$	121,101	$	110,588	$	107,474

Share-Based Compensation

Under the FASB guidance, we apply the Black-Scholes valuation model in determining the fair value of share-based payments to employees and directors. The resulting compensation expense is recognized over the requisite service period, which is generally the option vesting term of two to four years. Please refer to Note 19 for further discussion regarding stock-based compensation.

Leased Assets

We have both capital and operating leases. The initial leases for most of our tractors and trailers have terms that range from four to six years. Some leases require us to pay the lessor a minimum residual amount at the end of the lease. For operating leases, we accrue this residual by recording a prepaid rent amount and amortizing a monthly amount as rental expense and also record a liability that is increased every year by recognizing interest expense. This residual amount is recorded in the balance sheet category “Other non-current liabilities.” For capital leases, the residual is included as part of the cost of the capitalized leased asset.

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Net Income (Loss) Per Common Share

Basic net income (loss) per common share is calculated based on the weighted-average common shares outstanding during each period. Diluted income (loss) per common share includes the dilutive effect, if any, of common equivalent shares outstanding during each period.

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QUALITY DISTRIBUTION, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements—(Continued)

For the Years Ended December 31, 2012, 2011 and 2010

New Accounting Pronouncements

In February 2013, the Financial Accounting Standards Board (“FASB”) issued an accounting pronouncement related to accumulated other comprehensive income (“AOCI”). Under this standard, entities will be required to disclose additional information with respect to changes in AOCI balances by component and significant items reclassified out of AOCI. Expanded disclosures for presentation of changes in AOCI involve disaggregating the total change of each component of other comprehensive income as well as presenting separately for each such component the portion of the change in AOCI related to (1) amounts reclassified into income and (2) current-period other comprehensive income. The disclosures required with respect to income statement line item impacts would be made in either the notes to the consolidated financial statements or parenthetically on the face of the financial statements. This standard is effective beginning January 1, 2013. The adoption of this standard will not have a material impact on our consolidated financial statements.

In July 2012, the FASB issued an accounting pronouncement related to intangibles—goodwill and other, which permits companies to first consider qualitative factors as a basis for assessing impairment and determining the necessity of a detailed impairment test of indefinite-lived intangible assets. The provisions for this pronouncement are effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. We do not expect the adoption of this pronouncement to have a material effect on our consolidated financial statements.

In May 2011, the FASB issued amended guidance on fair value measurement. This guidance clarifies how to measure fair value and is largely consistent with existing fair value measurement principles. It also expands existing disclosure requirements for fair value measurements. We adopted this amendment for the year ended December 31, 2012. The adoption of this amended guidance to expand our footnote disclosures in the consolidated financial statements did not have a material impact on our consolidated financial statements.

In September 2011, the FASB issued additional amendments to the guidance on goodwill testing for impairment by permitting an entity to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. We adopted this amendment for the year ended December 31, 2012. The adoption of this amendment did not have a material impact on the Company’s financial position, results of operations or cash flows.

In December 2011, the FASB issued additional guidance on comprehensive income. This accounting update defers changes that relate to the presentation of reclassification adjustments out of accumulated other comprehensive income. We adopted this amendment for the year ended December 31, 2012. The adoption of this guidance did not have a material effect on the Company’s consolidated financial statements.

3. VARIABLE INTEREST ENTITIES

At December 31, 2012, we have a variable interest in one variable interest entity (“VIE”), for which we are not the primary beneficiary. We have concluded, based on our qualitative consideration of our contracts with the VIE, the operating structure of the VIE and our role with the VIE, that we do not have the power to direct the activities that most significantly impact their economic performance. Therefore, we are not required to consolidate the operations of this VIE.

This VIE is an independent affiliate that is directly engaged in the dry bulk and chemical business through the management of three trucking terminals in the North East region of the U.S. As such, this business is highly seasonal. We are involved with this VIE as a non-controlling interest. Our maximum exposure to loss as a result of our involvement with this unconsolidated VIE is limited to our recorded loans receivable which aggregated approximately $3.2 million at December 31, 2012. These loans are secured by a second-priority lien on certain assets of the VIE.

During the third quarter of 2012, we terminated our relationship with an independent affiliate that was considered a variable interest entity as of June 30, 2012. This independent affiliate was directly engaged in both the chemical and energy logistics businesses through the management of eight chemical trucking terminals and one energy terminal. Please refer to Note 6, “Acquisitions”, for the discussion of the acquisition of this former VIE.

4. FAIR VALUE OF FINANCIAL INSTRUMENTS

The three-level valuation hierarchy for fair value measurements is based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our market assumptions. These two types of inputs create the following fair value hierarchy:

• Level 1—Quoted prices for identical instruments in active markets;

• Level 2—Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations whose significant inputs are observable; and

• Level 3—Instruments whose significant inputs are unobservable.

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QUALITY DISTRIBUTION, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements—(Continued)

For the Years Ended December 31, 2012, 2011 and 2010

Following is a description of the valuation methodologies we used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy.

Fair Value Measurements on a Nonrecurring Basis

The fair value of our long-term indebtedness is based on level 2 quoted market prices. As of December 31, 2012, the carrying value and fair value are as follows (in thousands):

	Carrying Value		Fair Value
9.875% Second-Priority Senior Secured Notes due 2018 (“2018 Notes”)	$	225,000	$	241,875

Our asset-based loan facility (the “ABL Facility”) is variable rate debt which Management believes is a reasonable approximation of its fair value that is adopted using a coupon rate on borrowings with similar maturities, current remaining average life to maturity borrower credit quality, and current market conditions and approximates fair value. The fair value of the 2018 Notes is estimated using various techniques, which may consider recently executed transactions in securities of the issuer or comparable issuers, market price quotations (where observable), bond spreads, fundamental data relating to the issuer, and credit default swap spreads adjusted for any basis difference between cash and derivative instruments.

The carrying amounts reported in the accompanying consolidated balance sheets for cash and cash equivalents, accounts receivable and accounts payable approximate fair value because of the immediate or short-term maturities of these financial instruments.

5. EARNINGS (LOSS) PER COMMON SHARE

A reconciliation of the numerators and denominators of the basic and diluted earnings (loss) from continuing operations to earnings (loss) per share computations follows (in thousands except per share amounts):

	December 31, 2012						December 31, 2011						December 31, 2010
	Earnings from continuing operations (numerator)		Shares (denominator)		Per- share amount		Earnings from continuing operations (numerator)		Shares (denominator)		Per- share amount		Loss from continuing operations (numerator)			Shares (denominator)		Per- share amount
Basic earnings (loss) available to common shareholders:
Earnings (loss)	$	50,076		26,502	$	1.89	$	23,431		23,088	$	1.01	$	(7,406	)		20,382	$	(0.36	)
Effect of dilutive securities:
Stock options				566						635							—
Unvested restricted stock				126						200							—
Unexercised stock warrants				13						429							—
Diluted earnings (loss) available to common shareholders:
Earnings (loss)	$	50,076		27,207	$	1.84	$	23,431		24,352	$	0.96	$	(7,406	)		20,382	$	(0.36	)

The effect of our stock options, restricted stock and stock warrants which represent the shares shown in the table above are included in the computation of diluted earnings per share for each year. There is no effect of our stock options, restricted stock and stock warrants in the computation of diluted earnings per share for the year ended December 31, 2010 due to a net loss in the period.

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QUALITY DISTRIBUTION, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements—(Continued)

For the Years Ended December 31, 2012, 2011 and 2010

The following securities were not included in the calculation of diluted EPS because such inclusion would be anti-dilutive (in thousands):

	For the years ended December 31,
	2012		2011		2010
Stock options		1,686		1,573		2,126
Restricted stock		119		134		313
Warrants		1		1		1

6. ACQUISITIONS

2012 Acquisitions

Acquisition of an Independent Affiliate

Due to financial and operational difficulties encountered by one of our independent affiliates, we terminated our business relationship with this independent affiliate during the third quarter of 2012. On October 17, 2012, we acquired the business, certain operating assets and certain liabilities of this independent affiliate for a purchase price of $17.1 million, paid in cash at closing. Of the total $17.1 million, we allocated $15.5 million to property and equipment and $1.6 million to goodwill. This entire amount of goodwill is deductible for tax purposes. This independent affiliate operated eight terminals within the chemical logistics segment and one terminal within the energy logistics segment. Four chemical logistics terminals were transitioned to other independent affiliates, with the remaining terminals transitioned to Company operations. During this transition, operating results for the third and fourth quarters of 2012 were adversely impacted in aggregate by $4.4 million of greater than expected operating costs and reduced profitability. Despite the costs involved in the transition, we were able to provide a smooth transition of the servicing of those customers back to us and to other independent affiliates.

Dunn’s Tank Service and Nassau Disposal, Inc.

On August 1, 2012, we acquired certain operating assets of Dunn’s Tank Service, Inc. and the operating assets and rights of Nassau Disposal, Inc., (collectively “Dunn’s”), for an aggregate purchase price of $34.3 million paid in cash. An additional $3.6 million in cash consideration may be payable in cash one year after the closing date if certain future operating and financial performance criteria are satisfied, although we do not currently expect those criteria to be met. Of the total $34.3 million, we allocated $12.2 million to property and equipment, $17.3 million to goodwill and $4.8 million to intangibles. The entire amount of goodwill is deductible for tax purposes. Dunn’s is headquartered in Velma, Oklahoma and provides transportation services to the unconventional oil and gas industry within the Marcellus, Woodford and Utica shale regions, primarily hauling flowback and production water for various energy customers, which expands our energy logistics business. For its fiscal year ended December 31, 2011, Dunn’s had revenues of approximately $17.5 million. The results of Dunn’s have been included in our results since the date of acquisition, and are included in our energy logistics segment.

Wylie Bice Trucking, LLC and RM Resources, LLC

On June 1, 2012, we acquired certain operating assets of Wylie Bice Trucking, LLC and the operating assets and rights of RM Resources, LLC, (collectively “Bice”), for $81.4 million aggregate consideration. Headquartered in Killdeer, ND, Bice provides transportation services to the unconventional oil and gas frac shale industry within the Bakken shale region, primarily hauling fresh water, flowback and production water, and oil for numerous energy and other customers, which expands our energy logistics business. The flowback and production water Bice hauls is primarily disposed of utilizing five salt water injection wells we originally purchased from Bice. In accordance with the asset purchase agreement, Bice must deliver a sixth disposal well within six months after the closing date of the acquisition. On a combined basis, for its fiscal year ended December 31, 2011, Bice had revenues of approximately $106.0 million. The results of the Bice acquisitions are included in our results since the date of acquisition, and are included in our energy logistics segment.

The Bice transaction was structured as asset acquisitions with aggregate consideration paid to the sellers as follows: (i) $52.2 million in cash; (ii) $21.3 million in 5-year subordinated seller notes bearing interest annually at a 5.0% fixed rate; and (iii) $7.9 million of approximately 0.7 million in unregistered restricted shares of Quality common stock. Up to an additional $19.0 million may be payable in cash one year after the closing date, contingent upon the collective businesses meeting certain future operating and financial performance criteria. Our preliminary estimate of this contingent consideration is $6.8 million. We have performed a preliminary allocation of the purchase price. The preliminary allocation of the purchase price is based on information existing at the acquisition date and is subject to change. Measurement period adjustments will be evaluated to determine whether they relate to facts and circumstances that existed at the acquisition date. Any measurement period adjustments recorded will be an adjustment to goodwill and are not expected to be material to the Company’s financial position. Estimates of useful lives and estimated fair values of tangible and amortizable intangible assets will be finalized after we review all available data including, but not limited to, appraisals and internal assessments. The purchase price of the combined acquisitions has initially been allocated to the assets acquired according to their estimated fair values at the time of the acquisitions as follows:

(In thousands)	Bice & RM Combined
Equipment	$	26,557	(1)
Non-compete agreements		400
Tradename		700

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QUALITY DISTRIBUTION, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements—(Continued)

For the Years Ended December 31, 2012, 2011 and 2010

(In thousands)	Bice & RM Combined
Customer-related intangibles		12,320
Contingent consideration		(6,800	)
Goodwill		48,218	(1)
	$	81,395

(1) A measurement period adjustment of $1.3 million was made in the fourth quarter of 2012 based on a real estate appraisal.

The non-compete agreements will be amortized over an estimated six-year useful life on a straight-line basis. The customer-related intangible assets relate to acquired customer relationships, and will be amortized over an estimated ten-year useful life on a straight-line basis. The tradename will be amortized over an estimated two-year useful life on a straight-line basis. Goodwill has been recorded because the consideration paid exceeds the fair value of the assets acquired. The goodwill acquired in these acquisitions is tax deductible.

Unaudited Pro forma Results. Businesses acquired are included in our consolidated results from the date of each acquisition. Unaudited pro forma results displayed below only represent the Bice acquisition, as our other acquisitions in 2012 and 2011 were deemed immaterial. The following consolidated results are presented on a pro forma basis, as if the 2012 acquisition of Bice had been completed as of January 1, 2011:

Unaudited pro forma consolidated results for the years ended December 31 (in thousands):

	Proforma 2012			Proforma 2011
Operating revenues	$	890,155		$	851,599
Net income		54,614	(1)		28,505
Income per common share—basic	$	2.06		$	1.19
Income per common share—diluted	$	2.01		$	1.13

(1) Includes release of $35.3 million in the aggregate of our deferred tax valuation allowance.

Trojan Vacuum Services

On April 1, 2012, we acquired certain operating assets of Trojan Vacuum Services (“Trojan”). The purchase price was $8.7 million paid in cash at closing, plus $1.0 million paid in cash upon the satisfaction of certain operating and financial performance criteria. Of the total $8.7 million, we allocated $4.1 million to property and equipment, $4.3 million to intangibles and $0.3 million to goodwill. The entire amount of goodwill is deductible for tax purposes. In January 2013, the full $1.0 million was paid in cash upon satisfaction of certain operating and financial performance criteria were met. Trojan is headquartered in Pleasanton, TX and provides transportation service to the unconventional oil and gas frac shale industry within the Eagle Ford shale region, primarily hauling flowback and production water for various energy customers, which expands our energy logistics business. For its fiscal year ended December 31, 2011, Trojan had revenues of approximately $13.5 million. The results of the Trojan acquisition are included in our energy logistics segment.

2011 Acquisitions

Greensville Transport Services, Inc.

On November 1, 2011, Boasso acquired all of the outstanding stock of Greensville Transport Services, Inc. “Greensville”. The purchase price was $8.6 million, paid in cash at closing. Of the total $8.6 million, we allocated $3.5 million to goodwill, $2.5 million to intangibles, $1.4 million to accounts receivable and $1.2 million to property and equipment. An additional $0.5 million was paid in cash in December 2012 upon satisfaction of certain operating and financial performance criteria. An additional $0.5 million was paid in cash for a Section 338(h)(10) tax election and a working capital adjustment. The tax deductible amount of goodwill is $4.5 million. Greensville is headquartered in Chesapeake, Virginia and is a leading provider of ISO tank container and depot services with access to ports in Virginia, Maryland and South Carolina. The results of the Greensville acquisition are included in our intermodal segment.

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QUALITY DISTRIBUTION, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements—(Continued)

For the Years Ended December 31, 2012, 2011 and 2010

7. SELECTED QUARTERLY FINANCIAL DATA (Unaudited) (In thousands, except per share data)

	Quarter Ended
	March 31		June 30		September 30		December 31
2012
Operating revenues	$	191,915	$	212,733	$	222,078	$	215,392
Operating income		13,838		13,444		11,617		10,244
Net income		6,700		28,804		8,863		5,709
Income per share—basic		0.27		1.07		0.32		0.21
Income per share—diluted		0.26		1.04		0.32		0.21
2011
Operating revenues	$	177,910	$	189,993	$	199,298	$	178,750
Operating income		12,193		16,939		15,286		13,261
Net income		2,722		9,046		6,187		5,476
Income per share—basic		0.12		0.39		0.26		0.23
Income per share—diluted		0.12		0.37		0.25		0.22

In 2012 we incurred acquisition expenses of $4.0 million, costs associated with the termination of an independent affiliate relationship of $4.4 million, severance and lease termination charges of $1.0 million, the effects of Hurricane Sandy of $0.7 million, and other legal settlements of $0.8 million offset by a net acquisition earnout benefit of $2.7 million. Also, in 2012, we recorded a release of $35.3 million in the aggregate of our deferred tax valuation allowance, most of which was recorded in the second quarter of 2012.

In 2011, we recognized a restructuring credit of $0.5 million in the first quarter. Results for the first quarter of 2011 include a write-off of debt issuance costs of $1.8 million related to the partial redemption of our 2013 PIK Notes. Results for the third quarter of 2011 include a write-off of debt issuance costs of $0.3 million related to the final redemption of our 2013 PIK Notes and a write-off of debt issuance costs of $0.9 million related to the refinancing of our Previous ABL Facility.

8. RESTRUCTURING

We account for restructuring costs associated with one-time termination benefits, costs associated with lease and contract terminations and other related exit activities in accordance with FASB’s guidance. We previously made estimates of the costs to be incurred as part of a restructuring plan developed during 2008 and concluded at the end of 2010. The restructuring plan consisted of various actions including termination of approximately 380 non-driver positions and the consolidation, closure or affiliation of underperforming company terminals, our withdrawal from three multi-employer pension plans and costs associated with the consolidation of our corporate headquarters, and resulted in charges during 2008, 2009 and 2010 primarily related to our chemical logistics segment. As of December 31, 2012, $2.1 million was related to the restructuring charges included in accrued expenses on the balance sheet which are expected to be paid through 2017.

In the year ended December 31, 2012, we had the following activity in our restructuring accrual (in thousands):

	Balance at December 31, 2011		Payments			Balance at December 31, 2012
Restructuring accrual	$	2,782	$	(633	)	$	2,149

In the year ended December 31, 2011, we had the following activity in our restructuring accrual (in thousands):

	Balance at December 31, 2010		Payments			Reductions			Balance at December 31, 2011
Restructuring accrual	$	5,449	$	(2,146	)	$	(521	)	$	2,782

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QUALITY DISTRIBUTION, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements—(Continued)

For the Years Ended December 31, 2012, 2011 and 2010

9. SEGMENT REPORTING

Reportable Segments

In 2011, our chief operating decision maker began managing the Company in three reportable business segments for financial reporting purposes that are distinguished primarily on the basis of services offered:

• Chemical Logistics, which consists of the transportation of bulk chemicals primarily through our network of 25 independent affiliates and company-operated terminals, and equipment rental income;

• Energy Logistics, which consists primarily of the transportation of fresh water, disposal water, and crude oil for the unconventional oil and gas frac shale energy markets, primarily through company-operated terminals and 2 independent affiliates; and

• Intermodal, which consists of Boasso’s intermodal ISO tank container transportation and depot services business primarily supporting the international movement of bulk liquids.

Segment operating income reported in our segment tables excludes amounts such as depreciation and amortization, gains and losses on disposal of property and equipment and restructuring costs. Although these amounts are excluded from the business segment results, they are included in our reported consolidated statements of operations. Most corporate and shared services overhead costs, including acquisitions costs, are included in our chemical logistics segment. We have not provided specific asset information by segment, as it is not regularly provided to our chief operating decision maker for review.

Summarized segment data and a reconciliation to operating income for the years ended December 31 follows (in thousands):

	December 31, 2012
	Chemical Logistics			Energy Logistics		Intermodal			Total
Operating Revenues:
Transportation	$	423,077		$	105,679	$	68,650		$	597,406
Service revenue		67,632			8,461		45,008			121,101
Fuel surcharge		105,767			926		16,918			123,611
Total operating revenues		596,476			115,066		130,576			842,118
Segment operating income		37,809			12,177		19,259			69,245
Depreciation and amortization		11,293			6,310		3,487			21,090
Other (income) expense, net		(1,327	)		391		(52	)		(988	)
Operating income	$	27,843		$	5,476	$	15,824		$	49,143

F-22

QUALITY DISTRIBUTION, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements—(Continued)

For the Years Ended December 31, 2012, 2011 and 2010

	December 31, 2011
	Chemical Logistics			Energy Logistics		Intermodal			Total
Operating Revenues:
Transportation	$	429,769		$	29,432	$	58,579		$	517,780
Service revenue		67,414			1,006		42,168			110,588
Fuel surcharge		103,487			64		14,032			117,583
Total operating revenues		600,670			30,502		114,779			745,951
Segment operating income		48,444			3,081		18,728			70,253
Depreciation and amortization		10,418			785		3,210			14,413
Other (income) expense, net		(1,684	)		—		(155	)		(1,839	)
Operating income	$	39,710		$	2,296	$	15,673		$	57,679

	December 31, 2010
	Chemical Logistics		Energy Logistics		Intermodal		Total
Operating Revenues:
Transportation	$	442,576	$	—	$	55,870	$	498,446
Service revenue		70,470		—		37,004		107,474
Fuel surcharge		72,053		—		8,625		80,678
Total operating revenues		585,099		—		101,499		686,598
Segment operating income		44,791		—		16,863		61,654
Depreciation and amortization		13,033		—		2,971		16,004
Other expense (income), net		8,901		—		14		8,915
Operating income	$	22,857	$	—	$	13,878	$	36,735

F-23

QUALITY DISTRIBUTION, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements—(Continued)

For the Years Ended December 31, 2012, 2011 and 2010

10. GEOGRAPHIC INFORMATION

Our operations are located primarily in the United States, Canada, and Mexico. Inter-area sales are not significant to the total revenue of any geographic area. Information about our operations in different geographic areas for the years ended December 31 is as follows (in thousands):

	2012
	U.S.		International		Consolidated
Total operating revenues	$	802,715	$	39,403	$	842,118
Operating income		42,346		6,797		49,143
Long-term identifiable assets (1)		184,510		5,832		190,342

	2011
	U.S.		International		Consolidated
Total operating revenues	$	700,641	$	45,310	$	745,951
Operating income		50,083		7,596		57,679
Long-term identifiable assets (1)		119,879		6,013		125,892

	2010
	U.S.		International		Consolidated
Total operating revenues	$	648,634	$	37,964	$	686,598
Operating income		32,086		4,649		36,735
Long-term identifiable assets (1)		106,148		7,271		113,419

(1) Includes property and equipment.

11. ACCOUNTS RECEIVABLE, NET

Accounts receivable consisted of the following at December 31 (in thousands):

	2012			2011
Trade accounts receivable	$	109,145		$	86,092
Independent affiliate and independent owner-operator receivables		4,417			4,373
Other receivables		1,050			776
		114,612			91,241
Less allowance for doubtful accounts		(706	)		(674	)
	$	113,906		$	90,567

The activity in the allowance for doubtful accounts for the years ended December 31 is as follows (in thousands):

	2012			2011			2010
Balance, beginning of period	$	(674	)	$	(842	)	$	(1,804	)
Adjustment to bad debt expense		(120	)		800			1,279
Write-offs, net of recoveries		88			(632	)		(317	)
Balance, end of period	$	(706	)	$	(674	)	$	(842	)

F-24

QUALITY DISTRIBUTION, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements—(Continued)

For the Years Ended December 31, 2012, 2011 and 2010

12. PROPERTY AND EQUIPMENT

Property and equipment consisted of the following at December 31 (in thousands):

	2012			2011
Land and improvements	$	15,466		$	13,462
Buildings and improvements		29,042			26,903
Revenue equipment		244,795			190,175
Other equipment and disposal wells		43,209			31,946
Total property and equipment		332,512			262,486
Accumulated depreciation		(142,170	)		(136,594	)
Property and equipment, net	$	190,342		$	125,892

Depreciation expense was $17.8 million, $13.0 million and $14.5 million for the years ending December 31, 2012, 2011 and 2010, respectively. At December 31, 2012 and 2011, we had $13.2 million and $17.6 million of capitalized cost, respectively, and $2.9 million and $2.8 million, respectively, of accumulated depreciation of equipment under capital leases, respectively, included in revenue equipment in the above schedule.

13. GOODWILL AND INTANGIBLE ASSETS

Goodwill

Goodwill within our intermodal, energy logistics and chemical logistics segments and the related changes were as follows (in thousands):

	December 31, 2011		Additions		Purchase Price Adjustments		December 31, 2012
Intermodal (1)	$	31,344	$	—	$	66	$	31,410
Energy Logistics (2)		—		71,339		—		71,339
Chemical Logistics (3)		—		1,545		—		1,545
Total	$	31,344	$	72,884	$	66	$	104,294

(1) Purchase price adjustment for the Greensville acquisition.

(2) Of the total additions of $71.3 million, $1.7 million related to an independent affiliate acquisition, $1.1 million related to the Trojan acquisition, $48.2 million related to the Bice acquisition and $20.3 million related to the Dunn’s acquisition.

(3) Additions are related to an independent affiliate acquisition.

Goodwill within our intermodal segment and the related changes were as follows (in thousands):

	December 31, 2010		Addition Acquisition  of Greensville		December 31, 2011
Intermodal	$	27,023	$	4,321	$	31,344

Intangible Assets

Intangible assets at December 31, 2012 are as follows (in thousands):

	Gross Book Value		2012 Additions		Accumulated Amortization			Net Book Value		Average Lives (in years)
Tradename—Intermodal	$	7,400	$	—	$	—		$	7,400		Indefinite
Tradename—Energy Logistics		—		1,100		(304	)		796		2
Customer relationships		14,260		19,150		(6,292	)		27,118		10-12
Non-compete agreements		3,221		1,090		(3,015	)		1,296		3-6
Service agreement		—		1,120		(76	)		1,044		11
	$	24,881	$	22,460	$	(9,687	)	$	37,654

F-25

QUALITY DISTRIBUTION, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements—(Continued)

For the Years Ended December 31, 2012, 2011 and 2010

Of the total intangibles of $37.7 million at December 31, 2012, $20.9 million was allocated to our energy logistics segment, $16.6 million was allocated to our intermodal segment and $0.2 million was allocated to our chemical logistics segment.

Intangible assets at December 31, 2011 are as follows (in thousands):

	Gross Book Value		Accumulated Amortization			2011 Additions		Net Book Value		Average Lives (in years)
Tradename	$	7,400	$	—		$	—	$	7,400	Indefinite
Customer relationships		11,900		(4,000	)		2,360		10,260	12
Non-compete agreements		2,593		(2,409	)		627		811	3 – 5
	$	21,893	$	(6,409	)	$	2,987	$	18,471

Of the total intangibles of $18.5 million at December 31, 2011, $17.9 million was allocated to our intermodal segment and $0.6 million was allocated to our chemical logistics segment.

F-26

QUALITY DISTRIBUTION, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements—(Continued)

For the Years Ended December 31, 2012, 2011 and 2010

Amortization expense for the years ended December 31, 2012, 2011, and 2010 was $3.3 million, $1.4 million and $1.5 million, respectively. Estimated amortization expense for intangible assets is as follows (in thousands):

2013	$	4,186
2014		3,680
2015		3,434
2016		3,430
2017		3,354
Thereafter		12,170

14. ACCOUNTS PAYABLE AND ACCRUED EXPENSES

Accounts payable includes $2.0 million and $1.6 million of book overdrafts at December 31, 2012 and 2011, respectively.

Accrued expenses include the following at December 31 (in thousands):

	2012		2011
Salaries, wages and benefits	$	4,783	$	5,519
Accrued interest		4,561		4,184
Claims and deposits		3,896		4,538
Taxes		1,191		2,185
Lease residual guarantees		6,759		1,807
Acquisition related earnouts		8,800		—
Other		7,899		7,094
	$	37,889	$	25,327

15. LONG-TERM INDEBTEDNESS

Long-term debt consisted of the following at December 31 (in thousands):

	2012			2011
Capital lease obligations	$	6,038		$	9,101
ABL Facility		161,200			65,500
9.875% Second-Priority Senior Secured Notes, due 2018		225,000			225,000
5% Subordinated Acquisition Notes		21,300			—
Other Notes		6,533			8,943
Long-term debt, including current maturities		420,071			308,544
Discount on Notes		(1,265	)		(1,481	)
		418,806			307,063
Less current maturities of long-term debt (including capital lease obligations)		(7,831	)		(9,400	)
Long-term debt, less current maturities (including capital lease obligations)	$	410,975		$	297,663

F-27

QUALITY DISTRIBUTION, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements—(Continued)

For the Years Ended December 31, 2012, 2011 and 2010

The ABL Facility

Our ABL Facility provides for a revolving credit facility with a maturity of August 19, 2016. On September 27, 2012, our maximum borrowing capacity under the facility was increased from $250.0 million to $350.0 million. Borrowing availability under our ABL Facility did not change as a result of this amendment. Changes in borrowing availability result from increases or decreases in assets securing the ABL Facility. The ABL Facility includes borrowing capacity of up to $150.0 million for letters of credit and up to $30.0 million for swingline borrowings on same-day notice. The ABL Facility is available for working capital needs and general corporate purposes, including permitted acquisitions. At December 31, 2012, we had $55.2 million of borrowing availability under the ABL Facility.

Borrowings under the ABL Facility bear interest at a rate equal to an applicable margin plus, at our option, either a base rate or LIBOR. The applicable margin at December 31, 2012 was 1.25% for base rate borrowings and 2.25% for LIBOR borrowings. The applicable margin for borrowings will be reduced or increased based on aggregate borrowing base availability under the ABL Facility and may be further reduced in the event that our fixed charge coverage ratio as calculated under the ABL Facility exceeds a target level. The base rate is equal to the highest of the prime rate, the federal funds overnight rate plus 0.50% and 30-day LIBOR plus 1.00%. In addition to paying interest on outstanding principal under the ABL Facility, we are required to pay an unutilized commitment fee to the lenders quarterly at a rate ranging from 0.25% to 0.50%, depending on the average utilization of the ABL Facility. We also pay customary letter of credit fees quarterly. We may voluntarily repay outstanding loans under the ABL Facility at any time without premium or penalty, other than customary “breakage” costs with respect to LIBOR loans. The interest rate on the ABL Facility at December 31, 2012 and 2011 was 2.5% and 2.3%, respectively.

The borrowing base for the ABL Facility consists of eligible accounts receivable, inventory, tractor and trailer equipment, real property and certain other equipment.

We recorded $6.4 million in debt issuance costs relating to the ABL Facility. We are amortizing the debt issuance costs over the remaining term of the ABL Facility.

The Previous ABL Facility

Our ABL Facility replaced our previous ABL Facility on August 19, 2011. Our previous ABL Facility consisted of a current asset tranche in the amount of $205.0 million and a fixed asset tranche in the amount of $20.0 million. The previous ABL Facility included a sublimit of up to $150.0 million to issue letters of credit and was available for working capital needs and general corporate purposes, including permitted acquisitions. The interest rate under the current asset tranche was based, at our option, on either the administrative agent’s base rate plus 1.00% or on the Eurodollar LIBOR rate plus an applicable margin. The administrative agent’s base rate was equal to the greater of the federal funds overnight rate plus 0.50% or the prime rate. The interest rate under the fixed asset tranche was based, at our option, on either the administrative agent’s base rate plus 1.25% or on LIBOR plus an applicable margin. The applicable margin under either tranche was subject to increases or reductions based upon the amounts available for borrowing.

Accounting Treatment for the Exchange of ABL Facility for Previous ABL Facility and Amendment of ABL Facility

The exchange of our previous ABL Facility for the ABL Facility was treated partially as a debt modification and partially as a debt extinguishment in accordance with FASB guidance. Under applicable FASB guidance, we compared the product of the remaining term multiplied by the maximum borrowing capacity of our previous ABL Facility to the maximum borrowing capacity of the new arrangement on a creditor-by-creditor basis to determine the accounting treatment. For each creditor, if the borrowing capacity of the new arrangement is greater than or equal to the maximum borrowing capacity of the old arrangement, then the exchange is classified as a modification, and, if not, the exchange is classified as an extinguishment in proportion to the percentage of the decrease. If the exchange is classified as a modification, then any unamortized debt issuance costs relating to our previous ABL Facility are allocated to the ABL Facility and amortized over the term of the ABL Facility using the effective interest method. Furthermore, if the exchange is classified as an extinguishment, then any unamortized debt issuance costs relating to our previous ABL Facility are written off in proportion to the decrease in maximum borrowing capacity of the ABL Facility. Upon the exchange of our previous ABL Facility with the ABL Facility, we wrote off $0.9 million of unamortized debt issuance costs, reflecting the proportion of such costs determined to be for indebtedness treated as extinguished, and the remaining unamortized debt issuance costs of $1.3 million, relating to indebtedness deemed a modification, were allocated to the ABL Facility. The recent amendment to the ABL Facility was treated as a modification.

F-28

QUALITY DISTRIBUTION, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements—(Continued)

For the Years Ended December 31, 2012, 2011 and 2010

9.875% Second-Priority Senior Secured Notes Due 2018

On November 3, 2010, we issued $225.0 million aggregate principal amount of the 2018 Notes. With the proceeds of the issuance of the 2018 Notes, we repaid and redeemed certain of our outstanding notes, redeemed $47.5 million of our 2013 PIK Notes, and paid down a portion of our outstanding borrowings under the previous ABL Facility.

Interest on the 2018 Notes is payable at a rate of 9.875% per annum, semiannually on May 1 and November 1 of each year. The payment obligations of QD LLC and QD Capital under the 2018 Notes are guaranteed by QDI and by all of its 100% owned domestic subsidiaries other than immaterial subsidiaries. The 2018 Notes are senior obligations of QD LLC and QD Capital and are secured by a second-priority lien on certain assets. Pursuant to an intercreditor agreement, the liens on the collateral securing the 2018 Notes rank junior in right of payment to the ABL Facility and obligations under certain hedging agreements and cash management obligations and certain other first-lien obligations.

The 2018 Notes mature on November 1, 2018. Prior to November 1, 2014, we may redeem the 2018 Notes, in whole or in part, at a price equal to 100% of the principal amount of the 2018 Notes redeemed, plus accrued and unpaid interest to the redemption date, plus an additional “make-whole premium” intended to capture the value of holding 2018 Notes through November 1, 2014, but not less than 1%. During any twelve-month period prior to November 1, 2014, we may also redeem up to 10% of the original aggregate principal amount of the 2018 Notes at a redemption price of 103%, plus accrued and unpaid interest to the redemption date. Additionally, at any time prior to November 1, 2013, we may redeem up to 35% of the principal amount of the 2018 Notes at a redemption price of 109.875%, plus accrued and unpaid interest to the redemption date, with the net proceeds of one or more equity offerings so long as at least 50% of the aggregate original principal amount of the 2018 Notes remains outstanding afterwards. On or after November 1, 2014, we may redeem the 2018 Notes, in whole or in part, at the following prices (expressed as a percentage of principal amount), plus accrued and unpaid interest to the redemption date, if redeemed during the 12-month period commencing on November 1 of the years set forth below:

Period	Redemption Price
2014		104.938	%
2015		102.469	%
2016 and thereafter		100.000	%

We recorded $6.6 million in debt issuance costs relating to the 2018 Notes, of which $6.4 million was related to the new issuance and $0.2 million of unamortized debt issuance costs related to our 10% Senior Notes due 2013 which are no longer outstanding. We are amortizing these costs over the term of the 2018 Notes.

5% Subordinated Acquisition Notes

In 2012, we issued promissory notes in an aggregate principal amount of $21.3 million as part of the consideration for the Bice acquisition. The promissory notes bear interest at a fixed rate of 5.0% per annum and mature June 1, 2017. Payments of interest only are scheduled for the end of each calendar quarter with principal payable in full at maturity. The promissory notes are unsecured and subordinated. The notes are non-negotiable and non-transferable and may be prepaid at any time without premium or penalty.

11.75% Senior Subordinated PIK Notes Due 2013

On October 15, 2009, we issued $80.7 million aggregate principal amount of the 2013 PIK Notes. The payment obligations of QD LLC and QD Capital under the 2013 PIK Notes were guaranteed by QDI and by all of its domestic subsidiaries other than immaterial subsidiaries. The 2013 PIK Notes were unsecured senior subordinated obligations of QD LLC and QD Capital. Interest was payable on the 2013 PIK Notes at 11.75% per annum, payable 9% in cash and 2.75% in the form of additional 2013 PIK Notes.

F-29

QUALITY DISTRIBUTION, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements—(Continued)

For the Years Ended December 31, 2012, 2011 and 2010

At January 1, 2011, the outstanding principal balance of these notes was $33.3 million. On January 20, 2011, we redeemed $10.0 million of these notes plus accrued and unpaid interest. On March 11, 2011, we redeemed $17.5 million of these notes plus accrued and unpaid interest. We redeemed the remaining $5.8 million of principal amount of our 2013 PIK Notes in July 2011.

We recorded $1.5 million in debt issuance costs related to the 2013 PIK Notes and we recorded $6.7 million in note issuance discount due to warrants issued concurrently with the issuance of the 2013 PIK Notes. At January 1, 2011, $2.1 million of unamortized debt issuance costs and original issue discount remained. In conjunction with the January 20, 2011 and March 11, 2011 redemptions, we wrote off $1.8 million of unamortized debt issuance costs and unamortized original issue costs in the first quarter of 2011. In conjunction with the July 20, 2011 final redemption, we wrote off the remaining $0.3 million of unamortized debt issuance costs and unamortized original issue costs in the third quarter of 2011.

F-30

QUALITY DISTRIBUTION, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements—(Continued)

For the Years Ended December 31, 2012, 2011 and 2010

Collateral, Guarantees and Covenants

The ABL Facility contains a fixed charge coverage ratio which only needs to be met if borrowing availability is less than a designated amount ranging from $20.0 million to $35.0 million, depending upon the size of our borrowing base. The ABL Facility contains a number of covenants that, among other things, restrict, subject to certain exceptions, our ability to sell assets; incur additional indebtedness; prepay other indebtedness, including the 2018 Notes; pay dividends and distributions or repurchase QDI’s capital stock; create liens on assets; make investments; make certain acquisitions; engage in mergers or consolidations; engage in certain transactions with affiliates; amend certain charter documents and material agreements governing subordinated indebtedness, including the 2018 Notes; change our business; and enter into agreements that restrict dividends from QD LLC’s subsidiaries. The ABL Facility also contains certain customary affirmative covenants and events of default.

The indenture governing the 2018 Notes contains covenants that restrict, subject to certain exceptions, our ability to, among other things: (i) incur additional debt or issue certain preferred shares; (ii) pay dividends on or make other distributions in respect of QDI’s common stock or make other restricted payments; (iii) make certain investments; (iv) sell certain assets; (v) create or permit to exist dividend and/or payment restrictions affecting their restricted subsidiaries; (vi) create liens on certain assets to secure debt; (vii) consolidate, merge, sell or otherwise dispose of all or substantially all of their assets; (viii) enter into certain transactions with their affiliates; and (ix) designate their subsidiaries as unrestricted subsidiaries. The indenture also provides certain customary events of default, which, if any of them occurs, may result in the principal, interest and any other monetary obligations on the then outstanding 2018 Notes becoming payable immediately.

The payment obligations under the ABL Facility are senior secured obligations of QD LLC and QD Capital and are secured by a first-priority lien on certain assets and guaranteed by QDI and by all of its domestic restricted subsidiaries other than immaterial subsidiaries. The payment obligations of QD LLC and QD Capital under the 2018 Notes are guaranteed by QDI and by all of its domestic subsidiaries other than immaterial subsidiaries. The 2018 Notes, and the guarantees thereof, are senior obligations of QD LLC and QD Capital and are secured by a second-priority lien on certain assets. Pursuant to an intercreditor agreement, the liens on the collateral securing the 2018 Notes rank junior in right of payment to the ABL Facility and obligations under certain hedging agreements and cash management obligations and certain other first lien obligations. We were in compliance with the covenants under the ABL Facility and the 2018 Notes at December 31, 2012.

F-31

QUALITY DISTRIBUTION, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements—(Continued)

For the Years Ended December 31, 2012, 2011 and 2010

Debt Retirement

The following is a schedule of our total indebtedness outstanding at December 31, 2012 over the periods we are required to pay such indebtedness (in thousands):

	2013		2014		2015		2016		2017		Thereafter		Total
Capital lease obligations	$	3,912	$	1,610	$	333	$	106	$	77		—	$	6,038
ABL Facility		—		—		—		161,200		—		—		161,200
9.875% Second-Priority Senior Secured Notes, due 2018 (1)		—		—		—		—		—		225,000		225,000
5% Subordinated Acquisition Notes		—		—		—		—		21,300		—		21,300
Other Notes		3,919		1,265		1,084		265		—		—		6,533
Total	$	7,831	$	2,875	$	1,417	$	161,571	$	21,377		225,000	$	420,071

(1) Amount does not include the remaining unamortized original issue discount of approximately $1.3 million related to the 2018 Notes.

The following is a schedule of our debt issuance costs for the year ended (in thousands):

	December 31, 2011		Additional Debt Issuance Costs		2012 Amortization Expense			December 31, 2012
ABL Facility	$	5,094	$	989	$	(1,238	)	$	4,845
9.875% Second-Priority Senior Secured Notes, due 2018		5,560		—		(895	)		4,665
Total	$	10,654	$	989	$	(2,133	)	$	9,510

F-32

QUALITY DISTRIBUTION, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements—(Continued)

For the Years Ended December 31, 2012, 2011 and 2010

Amortization expense of debt issuance costs was $2.1 million, $2.1 million, and $2.7 million for years ending December 31, 2012, 2011, and 2010, respectively, and is included in interest expense.

16. INCOME TAXES

For financial reporting purposes, income (loss) before income taxes includes the following components for years ended December 31 (in thousands):

	2012		2011			2010
Domestic	$	21,853	$	24,535		$	(8,153	)
Mexico		851		855			1,052
Canada		45		(18	)		106
	$	22,749	$	25,372		$	(6,995	)

F-33

QUALITY DISTRIBUTION, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements—(Continued)

For the Years Ended December 31, 2012, 2011 and 2010

The components of the (benefit) from provision for income tax for the years ended December 31 are as follows (in thousands):

	2012			2011			2010
Current taxes:
Federal	$	(337	)	$	146		$	13
State		516			998			794
Mexico		166			(45	)		(414	)
Canada		436			842			18
		781			1,941			411
Deferred taxes:
Federal		7,038			7,529			(2,743	)
State		136			971			(49	)
		7,174			8,500			(2,792	)
Valuation Allowance
Federal		(32,586	)		(7,529	)		2,743
State		(2,696	)		(971	)		49
		(35,282	)		(8,500	)		2,792
(Benefit from) provision for income taxes	$	(27,327	)	$	1,941		$	411

F-34

QUALITY DISTRIBUTION, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements—(Continued)

For the Years Ended December 31, 2012, 2011 and 2010

The net deferred tax asset (liability) consisted of the following at December 31 (in thousands):

	2012			2011
Deferred tax assets:
Environmental reserve	$	8,262		$	8,612
Tax credit carryforwards		7,701			7,294
Self-insurance reserves		6,723			7,241
Allowance for doubtful accounts		270			261
Pension		8,414			8,998
Net operating loss carryforwards		29,201			29,378
Stock compensation		2,531			2,178
Other accruals		4,425			3,688
Accrued losses and damage claims		30			52
		67,557			67,702
Less valuation allowance		(4,258	)		(39,540	)
	$	63,299		$	28,162
Deferred tax liabilities:
Property and equipment basis differences		(26,449	)		(21,706	)
Accrued interest and original issue discount		(2,831	)		(3,089	)
Depreciation of environmental costs		(1,826	)		(1,130	)
Fair value earnout adjustments		(1,038	)		—
Intangible basis differences		(2,833	)		(2,237	)
Net deferred tax asset	$	28,322		$	—
Comprised of:
Current deferred tax asset	$	16,609		$	4,048
Long-term deferred tax asset		46,690			—
Long-term deferred tax liability		(34,977	)		(4,048	)
Net deferred tax asset	$	28,322		$	—

During 2012, we recorded a deferred tax benefit of $28.1 million of which $35.3 related to a prior year valuation allowance release. These releases of the valuation allowance are a result of our consistent cumulative income position, improved operating results, and recent expansion of our energy business through acquisition which is expected to provide future taxable income. Management has determined based on the evaluation of both objective and subjective evidence available, that it is more likely than not that the deferred tax assets for which the valuation allowance was recorded, are realizable.

F-35

QUALITY DISTRIBUTION, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements—(Continued)

For the Years Ended December 31, 2012, 2011 and 2010

Our effective tax rate differs from the federal statutory rate. The reasons for those differences are as follows for the years ended December 31 (in thousands):

	2012			2011			2010
Tax expense (benefit) at the statutory rate	$	7,962		$	8,880		$	(2,448	)
State income taxes, net of federal benefit		679			1,625			408
Uncertain tax position adjustments		49			(252	)		(384	)
Stock compensation		123			278			—
Impact of foreign tax rates		(13	)		435			(167	)
Valuation allowance		(35,282	)		(8,500	)		2,792
Work opportunity tax credit		—			234			(10	)
IRC Section 956 income		335			219			240
Foreign tax credit		(525	)		(1,367	)		(253	)
Provision to return and other adjustments to deferred taxes		(608	)		—			—
Other		(47	)		389			233
(Benefit from) provision for income taxes	$	(27,327	)	$	1,941		$	411

F-36

QUALITY DISTRIBUTION, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements—(Continued)

For the Years Ended December 31, 2012, 2011 and 2010

At December 31, 2012, we had an estimated $75.1 million in federal net operating loss carryforwards, $3.6 million of unrecognized federal operating loss carryforwards related to excess stock compensation deductions and uncertain tax position deductions, $2.3 million in alternative minimum tax credit carryforwards and $5.3 million in foreign tax credit carryforwards. The net operating loss carryforwards will expire in the years 2018 through 2030 while the alternative minimum tax credits may be carried forward indefinitely and the foreign tax credits will expire in years 2014 through 2022.

Significant judgment is required in determining our provision for income taxes. In the ordinary course of an international business, there are many transactions for which the ultimate tax outcome is uncertain. We review our tax contingencies on a regular basis and make appropriate accruals as needed. As of December 31, 2012, U.S. taxes were not provided on income of our foreign subsidiaries, as we have invested or expect to invest the undistributed earnings indefinitely.

Rollforward of valuation allowance (in thousands):

	2012			2011			2010
Beginning balance	$	(39,540	)	$	(46,025	)	$	(43,032	)
Change in assessments about the realization of deferred income tax assets		35,282			6,485			(2,993	)
Ending balance	$	(4,258	)	$	(39,540	)	$	(46,025	)

At December 31, 2012 and 2011, we had approximately $1.7 million and $1.6 million, respectively, of total gross unrecognized tax benefits. Of the total gross unrecognized tax benefits at December 31, 2012, $1.0 million (net of federal benefit on state tax issues) represents the amount of unrecognized tax benefits that, if recognized, would favorably affect the effective income tax rate in any future periods.

Included in the balance of gross unrecognized tax benefits at December 31, 2012 less than $0.1 million related to tax positions for which it is reasonably possible that the total amounts could significantly change during the next twelve months due to expiration of the applicable statute of limitations. A reconciliation of the total amount of unrecognized tax benefits as of December 31 follows (in thousands):

	2012			2011			2010
Total unrecognized tax benefits as of January 1,	$	1,628		$	1,585		$	1,776
Increases in tax positions taken during prior period		359			425			160
Decreases in tax positions taken during prior period		(75	)		—			—
Increases in tax positions taken in the current period		85			—			—
Decreases in tax positions taken in the current period		(20	)		—			—
Settlements with taxing authorities		(85	)		—			—
Decrease due to lapse of applicable statute of limitations		(240	)		(382	)		(351	)
Total unrecognized tax benefits as of December 31,	$	1,652		$	1,628		$	1,585

F-37

QUALITY DISTRIBUTION, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements—(Continued)

For the Years Ended December 31, 2012, 2011 and 2010

Our continuing practice is to recognize interest and/or penalties related to income tax matters in income tax expense. For the year ended December 31, 2012, we recognized additional benefit of $0.1 million of interest and penalties in the provision for income taxes. As of December 31, 2011, we had accrued interest of $0.5 million (net of federal benefit) and $0.2 million accrued for penalties. At December 31, 2012, we had accrued interest of $0.4 million (net of federal benefit) and $0.2 million accrued for penalties.

We are subject to the income tax jurisdiction of the U.S., Canada, and Mexico, as well as multiple state jurisdictions. We believe we are no longer subject to U.S. federal income tax examinations for the years before 2007, to international examinations for years before 2006 and, with few exceptions, to state examinations before 2008.

17. EMPLOYEE BENEFIT PLANS

We maintain two noncontributory defined benefit plans resulting from a prior acquisition that cover certain vested salaried participants and retirees (“CLC Plan”) and certain other vested participants and retirees under an expired collective bargaining agreement (“TTWU Plan”). Retirement benefits for employees covered by the CLC Plan are based on years of service and compensation levels. The monthly benefit for employees under the TTWU Plan is based on years of service multiplied by a monthly benefit factor. Pension costs are funded in accordance with the provisions of the applicable law. Both pension plans have been frozen since prior to January 1, 1998. There are no new participants and no future accruals of benefits from the time the plans were frozen.

We use a December 31 measurement date for both of our plans.

We follow the recognition and disclosure requirements under the FASB guidance that require us to recognize the funded status of our postretirement benefit plans in the consolidated statement of financial position at December 31, 2012, with a corresponding adjustment to accumulated other comprehensive loss. The funded status is the difference between the fair value of plan assets and the benefit obligation. The adjustment to accumulated other comprehensive loss represents the net unrecognized actuarial gains or losses and unrecognized prior service costs. Future actuarial gains or losses that are not recognized as net periodic benefit cost in the same periods will be recognized as a component of other comprehensive loss (in thousands):

	2012
Items not yet recognized as a component of net periodic cost:
Unrecognized net actuarial loss	$	34,619
Unamortized prior service cost		323
Unrecognized loss and prior service costs recorded as a component of accumulated other comprehensive loss	$	34,942
Items to be recognized in 2013 as a component of net periodic cost:
Net actuarial loss	$	1,451
Prior service cost		94
Net periodic cost to be recorded in 2013 from accumulated other comprehensive loss	$	1,545

F-38

QUALITY DISTRIBUTION, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements—(Continued)

For the Years Ended December 31, 2012, 2011 and 2010

Obligations and Funded Status

The following table sets forth the change in the projected benefit obligation, change in plan assets and unfunded status of the two plans at 2012 and 2011 (in thousands):

	2012			2011
Change in Projected Benefit Obligation
Benefit obligation at January 1,	$	51,557		$	48,630
Settlement		(1,813	)		—
Service cost		166			176
Interest cost		2,102			2,420
Actuarial loss		3,827			3,785
Benefits and expenses paid		(3,202	)		(3,454	)
Benefit obligation at December 31,	$	52,637		$	51,557

	2012			2011
Change in Plan Assets
Fair value of plan assets at January 1,	$	28,912		$	29,947
Settlement		(709	)		—
Actual return (loss) on plan assets		2,916			(400	)
Contributions by Company		3,643			2,819
Benefits and expenses paid		(3,202	)		(3,454	)
Fair value of plan assets at December 31,	$	31,560		$	28,912

	2012			2011
Unfunded Status of Plans
Projected benefit obligation	$	(52,637	)	$	(51,557	)
Fair value of plan assets		31,560			28,912
Unfunded status as of December 31,	$	(21,077	)	$	(22,645	)

The accumulated benefit obligation for both defined benefit pension plans equaled the projected benefit obligations of $52.6 million and $51.6 million at December 31, 2012 and 2011, respectively.

We had the following net pension equity charges (after-tax) that were recorded as part of other comprehensive loss and accumulated other comprehensive loss:

	2012			2011			2010
Net actuarial loss, net of tax	$	(422	)	$	(5,307	)	$	(614	)
Prior service cost		94			94			94
Adjustment to pension benefit obligation	$	(328	)	$	(5,213	)	$	(520	)

F-39

QUALITY DISTRIBUTION, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements—(Continued)

For the Years Ended December 31, 2012, 2011 and 2010

Periodic Pension Costs

The components of net periodic pension cost are as follows for the years ended December 31 (in thousands):

	2012			2011			2010
Service cost	$	166		$	176		$	203
Interest cost		2,102			2,420			2,575
Amortization of loss		1,352			1,177			1,200
Amortization of prior service cost		94			94			94
Expected return on plan assets		(2,219	)		(2,298	)		(2,161	)
Net periodic pension cost	$	1,495		$	1,569		$	1,911

Assumptions

Weighted average assumptions used to determine benefit obligations at December 31:

	2012			2011			2010
Discount rate		3.48	%		4.20	%		5.08	%

Weighted average assumptions used to determine net periodic benefit cost at December 31:

	2012			2011			2010
TTWU Plan
Discount rate		3.90	%		4.90	%		5.50	%
Expected long-term rate of return on plan assets		7.00	%		7.00	%		7.00	%
CLC Plan
Discount rate		4.50	%		5.25	%		5.70	%
Expected long-term rate of return on plan assets		8.00	%		8.00	%		8.00	%

The discount rate is based on a model portfolio of AA-rated bonds with a maturity matched to the estimated payouts of future pension benefits. The TTWU Plan’s expected return on plan assets is based on our expectation of the long-term average rate of return on assets in the pension funds, which is based on the allocation of assets. The CLC Plan’s expected return on plan assets is based on historical and future returns of the multiple asset classes from which a weighted average was developed based on the asset allocation of the Plan.

F-40

QUALITY DISTRIBUTION, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements—(Continued)

For the Years Ended December 31, 2012, 2011 and 2010

Asset Mix

Our pension plan weighted-average asset allocations by asset category at December 31 are as follows:

	2012			2011
TTWU Plan
Equity securities and mutual funds		76.2	%		46.2	%
Debt securities		17.1	%		30.2	%
Other investments		—			20.9	%
Cash and cash equivalents		6.7	%		2.7	%
		100.0	%		100.0	%
CLC Plan
Equity securities and mutual funds		77.3	%		51.8	%
Debt securities		16.3	%		36.0	%
Other investments		—			9.7	%
Cash and cash equivalents		6.4	%		2.5	%
		100.0	%		100.0	%

Plan Assets

Our investment policy is that plan assets will be managed utilizing an investment philosophy and approach characterized by all of the following, but listed in priority order: (1) emphasis on total return, (2) emphasis on high-quality securities, (3) sufficient income and stability of income, (4) safety of principal with limited volatility of capital through proper diversification and (5) sufficient liquidity. None of our equity or debt securities are included in plan assets.

Our retirement plans’ assets were accounted for at fair value and are classified in their entirety based on the lowest level of any input that is significant to the fair value measurement. For a description of the fair value hierarchy, see Note 4.

Our actual retirement plans’ asset allocations by level within the fair value hierarchy at December 31, 2012, are presented in the table below (in thousands):

	TTWU Plan											CLC Plan
	Level 1		Level 2		Level 3		Total		% Total			Level 1		Level 2		Level 3		Total		% Total
Cash and cash equivalents	$	454	$	—	$	—	$	454		6.7	%	$	1,586	$	—	$	—	$	1,586		6.4	%
Mutual funds		4,564		618		—		5,182		76.2	%		15,367		3,766		—		19,133		77.3	%
Corporate bonds		—		551		—		551		8.1	%		—		1,902		—		1,902		7.7	%
Asset-backed securities		—		610		—		610		9.0	%		—		2,142		—		2,142		8.6	%
Total assets	$	5,018	$	1,779	$	—	$	6,797		100.0	%	$	16,953	$	7,810	$	—	$	24,763		100.0	%

F-41

QUALITY DISTRIBUTION, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements—(Continued)

For the Years Ended December 31, 2012, 2011 and 2010

Our actual retirement plans’ asset allocations by level within the fair value hierarchy at December 31, 2011, are presented in the table below (in thousands):

	TTWU Plan											CLC Plan
	Level 1		Level 2		Level 3		Total		% Total			Level 1		Level 2		Level 3		Total		% Total
Cash and cash equivalents	$	185	$	—	$	—	$	185		2.7	%	$	559	$	—	$	—	$	559		2.5	%
Equity securities		2,928		—		—		2,928		43.4	%		10,798		—		—		10,798		48.7	%
Mutual funds		188		—		—		188		2.8	%		683		—		—		683		3.1	%
Corporate bonds		—		1,462		—		1,462		21.7	%		—		5,975		—		5,975		27.0	%
Asset-backed securities		—		579		—		579		8.5	%		—		1,993		—		1,993		9.0	%
Other investments		—		311		1,097		1,408		20.9	%		—		1,051		1,103		2,154		9.7	%
Total assets	$	3,301	$	2,352	$	1,097	$	6,750		100.0	%	$	12,040	$	9,019	$	1,103	$	22,162		100.0	%

Level 1 includes cash and cash equivalents, equity securities and mutual funds. Fair values for these investments are measured using unadjusted quoted prices in active markets.

Level 2 includes investments in corporate bonds and asset-backed securities that are measured based on quoted prices for similar assets in active markets; quoted prices for identical or similar assets in inactive markets; inputs other than quoted prices that are observable for the asset; and inputs that are derived principally from or corroborated by observable market data by correlation or other means. The fair values for Level 2 assets are generally obtained from third-party broker quotes, independent pricing services and exchanges.

Level 3 includes investments in an interval fund containing a lock-up period that are valued using unobservable inputs. Valuation may be performed using a financial model with estimated inputs entered into the model.

The following is a reconciliation of assets in Level 3 of the fair value hierarchy (in thousands):

	TTWU			CLC
Beginning balance at January 1, 2011	$	1,313		$	1,108
Return on plan assets		24			(5	)
Expenses		(240	)		—
Balance at December 31, 2011	$	1,097		$	1,103
Return on plan assets		7			21
Expenses		—			—
Settlements		(709	)		—
Sales		(395	)		(1,124	)
Ending balance at December 31, 2012	$	—		$	—

F-42

QUALITY DISTRIBUTION, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements—(Continued)

For the Years Ended December 31, 2012, 2011 and 2010

Cash Flows

We expect to contribute $0.9 million to the TTWU pension plan and $2.3 million to the CLC pension plan during the year ending December 31, 2013.

The following benefit payments are expected to be paid (in thousands):

2013	$	3,367
2014		3,363
2015		3,384
2016		3,389
2017		3,401
2018 – 2022		16,376

In 2001, we established a Deferred Compensation Plan for our executives and other key employees. The plan is a non-qualified deferral plan that allows participants to contribute a portion of their wages on a pre-tax basis and includes a death benefit. No contributions were made in 2012, 2011 and 2010. Effective December 31, 2010, this plan was frozen and no future contributions will be made to the plan.

Substantially all of our U.S. employees are entitled to participate in our profit sharing plan established under Section 401(k) of the U.S. Internal Revenue Code. Employees are eligible to contribute voluntarily to the plan after 90 days of employment. At our discretion, we may also contribute to the plan. Employees are always vested in their contributed balance and become fully vested in our contributions after four years of service. The expenses related to contributions to the plan for the years ended December 31, 2012, 2011 and 2010 were approximately $0.3 million, $0.2 million and $0.3 million, respectively.

Multi-employer pension plans

We contribute to multi-employer pension plans under the terms of collective bargaining agreements that cover union-represented employees. The risk of participating in these multi-employer pension plans are different from a single-employer pension plan in the following aspects: (a) assets contributed to a multi-employer pension plan by one employer may be used to provide benefits to employees of other participating employers; (b) if a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers; and (c) if an employer chooses to stop participating in a plan, it may be required to pay those plans an amount based on the unfunded status of the plan, referred to as a withdrawal liability.

At December 31, 2012, we contributed to three separate multi-employer pension plans for employees under collective bargaining agreements. These agreements cover approximately 2.4% of our total workforce including our independent affiliates’ employees and independent owner-operators providing service to us. These multi-employer pension plans provide defined benefits to retired participants. We do not directly or indirectly manage any of these multi-employer pension plans. Trustees, half of whom are appointed by the International Brotherhood of Teamsters (the “Teamsters”) and half of whom various contributing employers appoint, manage the trusts covering these plans. Our collective bargaining agreements with the Teamsters determine the amounts of our ongoing contributions to these plans.

F-43

QUALITY DISTRIBUTION, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements—(Continued)

For the Years Ended December 31, 2012, 2011 and 2010

Our participation in these plans is outlined in the table below (contributions in thousands):

Pension Plan	EIN/Pension Plan Number (1)		Pension Protection Act Zone Status (2)				FIP/RP Status Pending/ Implemented (3)		Contributions by us						Expiration Date of Collective- Bargaining Agreement
			2012		2011				2012		2011		2010
Employer-Teamsters Local Nos. 175 & 505 Pension Trust Fund		55-6021850		Yellow		Green		RP Pending	$	41	$	40	$	40		2/8/2016
New York State Teamsters Conference Pension and Retirement Fund		16-6063585		Red		Red		RP Adopted		140		87		75		7/14/2014
Central States Southeast and Southwest Areas Pension Fund		36-6044243		Red		Red		RP Adopted		2,647		2,435		2,366		5/31/2013 to 8/31/2015
									$	2,828	$	2,562	$	2,481

(1) The “EIN/Pension Plan Number” column provides the Employee Identification Number (EIN) and the three-digit plan number, if applicable.

(2) Unless otherwise noted, the most recent Pension Protection Act zone status available in 2012 and 2011 is for the plan’s year-end at December 31, 2011 and December 31, 2010, respectively. The zone status is based on information that we received from the plan. Among other factors, plans in the red zone are generally less than 65% funded, plans in the yellow zone are less than 80% funded, and plans in the green zone are at least 80% funded.

(3) The “FIP/RP Status Pending/Implemented” column indicates plans for which a financial improvement plan (FIP) or a rehabilitation plan (RP) is either pending or has been implemented. No surcharge has been imposed for any of these plans.

We do not currently intend to withdraw from the three multi-employer pension plans or take any actions that would subject us to payment of contingent obligations upon withdrawal from such plans. Based on information provided to us from the trustees of these plans, we estimate our portion of the contingent liability in the case of a full withdrawal or termination from these plans to be approximately $73.8 million, of which $68.8 million relates to the Central States Southeast and Southwest Areas Pension Plan.

In conjunction with our prior restructuring efforts, during the quarter ended September 30, 2010, we notified the trustees of three other pension plans of our intention to withdraw from those plans. Our withdrawal notifications were originally estimated to result in an aggregate withdrawal liability of approximately $2.0 million and we recorded a restructuring charge for this full amount in the third quarter of 2010. During the first nine months of 2011, we made aggregate payments of approximately $1.5 million to fully discharge the liabilities under those three pension plans and recorded a restructuring credit of $0.5 million in the second quarter of 2011.

18. CAPITAL STOCK

Authorized Capital Stock

In accordance with our Amended and Restated Articles of Incorporation dated November 4, 2003, the Company is authorized to issue 50 million shares of capital stock, which includes 49 million shares of no par value common stock and 1 million shares of no par value preferred stock.

F-44

QUALITY DISTRIBUTION, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements—(Continued)

For the Years Ended December 31, 2012, 2011 and 2010

Our ABL Facility and indenture governing the 2018 Notes contain restrictions on QDI’s ability to pay dividends on its common stock.

Preferred Stock

Of the 1 million shares of preferred stock authorized, 600,000 shares were designated as convertible preferred stock, of which 510,000 were issued and outstanding prior to the initial public offering of shares of our common stock, when they were converted into shares of common stock pursuant to our Amended and Restated Articles of Incorporation. The remaining shares of preferred stock may be issued from time to time in one or more classes or series, with such relative rights, preferences, qualifications, and limitations as our Board of Directors may adopt by resolution.

March 2012 Common Stock Offering

On March 13, 2012, we sold 2.5 million shares of our common stock in an underwritten public offering, at a gross price of $13.00 per share, and received net proceeds, after underwriting fees and expenses, of approximately $30.5 million. Certain affiliates of Apollo Management, L.P. also sold 3.2 million shares in the offering.

February 2011 Common Stock Offering

On February 9, 2011, we sold 2.0 million shares of our common stock in an underwritten public offering, at a gross price of $9.50 per share, and received net proceeds, after underwriting fees and expenses, of approximately $17.6 million. Certain affiliates of Apollo Management, L.P. also sold 2.6 million shares in the offering.

Warrants

On October 15, 2009 in conjunction with the issuance of our 2013 PIK Notes, we issued 1,752,895 aggregate amount of warrants to purchase shares of the Company’s common stock at an exercise price of $0.01 per share. The warrants are exercisable during the period beginning April 16, 2010 and ending November 1, 2013. The warrants were accounted for at their fair value on October 15, 2009, which is based on the closing price of our common stock on that date. Approximately $6.7 million representing the fair value of the warrants was recorded to stock purchase warrants within shareholders’ deficit, with a corresponding discount on the 2013 PIK Notes. The discount was being amortized over the term of the 2013 PIK Notes until July 2011 when the remaining unamortized discount was written-off in conjunction with the final redemption of the 2013 PIK Notes. As of December 31, 2012, we had warrants outstanding of less than $0.1 million representing approximately 8,680 shares of our common stock. As of December 31, 2011, we had warrants outstanding of approximately $1.3 million representing approximately 354,000 shares of our common stock.

Treasury Stock

As of December 31, 2012 and 2011, we had approximately 879,000 and 267,000 treasury shares, respectively, carried at a cost of approximately $5.8 million and $1.9 million, respectively. These shares were acquired pursuant to our initial public offering, our publicly announced share repurchase program, the return of shares under limited recourse secured loans to shareholders, forfeitures and share withholdings.

Share Repurchase Program

On November 20, 2012, we announced a share repurchase program pursuant to which our Board of Directors authorized the repurchase of up to $15.0 million of our common stock in an open-ended repurchase program (the “Repurchase Program”). The Repurchase Program does not have an expiration date. Stock has been, and may in the future be, purchased pursuant to the Repurchase Program, from time to time, in the open market or through private transactions, subject to market conditions. Subject to applicable laws, repurchases under the Repurchase Program may be made at such times and in such amounts as we deem appropriate and may be made pursuant to Rule 10b5-1. We are not obligated to purchase any shares under the Repurchase Program and it can be discontinued at any time that we feel additional purchases are not warranted. As of December 31, 2012, we have repurchased approximately 0.6 million shares valued at $3.7 million under the Repurchase Program.

19. STOCK COMPENSATION PLANS

We account for our equity compensation plans and expense related to all stock option awards granted under the FASB guidance. We apply the Black-Scholes valuation model in determining the fair value of share-based payments to employees. The resulting compensation expense is recognized over the requisite service period, which is generally the vesting term of two to four years.

Active Performance Incentive Plan

As of December 31, 2012, we maintain one active stock-based incentive plan, the Quality Distribution, Inc. 2012 Equity Incentive Plan (the “2012 Equity Incentive Plan”), under which stock options, restricted shares and other types of equity and cash incentive awards may be granted to employees, non-employee directors and service providers. The 2012 Equity Incentive Plan became effective May 30, 2012 upon receipt of shareholder approval and expires May 30, 2022. There are 2,000,000 shares of common stock reserved for issuance under the 2012 Equity Incentive Plan.

F-45

QUALITY DISTRIBUTION, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements—(Continued)

For the Years Ended December 31, 2012, 2011 and 2010

The 2012 Equity Incentive Plan activity for the year ended December 31, 2012 is as follows (in thousands, except per share data):

Stock Options

	Number of Shares Outstanding		Weighted Average Exercise Price Per Share		Weighted Average Remaining contractual Term (in years)		Aggregate Intrinsic Value (in thousands) (a)
Options outstanding at December 31, 2011		—		—
2012 option activity:
Granted		48	$	10.54
Exercised		—		—
Canceled		—		—
Options outstanding at December 31, 2012		48	$	10.54
Options exercisable and expected to vest at December 31, 2012		—		—		—		—

(a) The intrinsic value of a stock option is the amount by which the market value of the underlying stock as of December 31, 2012 exceeds the exercise price of the option multiplied by the number of shares represented by such option.

During the year ended December 31, 2012 (in thousands, except per share data):

• the weighted-average grant date fair value per share of stock-based compensation granted to employees was $6.55;

• there were no stock options exercised; and

• there were no stock options that vested.

During the year ended December 31, 2012, cash was not used to settle any equity instruments previously granted.

Restricted Stock

	Number of Shares Outstanding			Weighted Average Grant Date Fair Value Per Share		Aggregate Intrinsic Value
Restricted stock unvested at December 31, 2011		—			—
2012 activity:
Granted		30		$	10.42
Vested		(4	)	$	10.61
Canceled		—			—
Restricted stock unvested at December 31, 2012		26		$	10.39	$	156

Frozen Performance Incentive Plans

We maintain two other stock-based incentive plans, the 2003 Stock Option Plan and the 2003 Restricted Stock Incentive Plan, under which stock options and restricted shares have been granted to employees, non-employee directors, consultants and advisors but under which no additional awards may be made after May 30, 2012 because we agreed to “freeze” them from further issuances in connection with the approval of the 2012 Equity Incentive Plan.

2003 Stock Option Plan

On November 5, 2003, our Board of Directors approved the 2003 Stock Option Plan in connection with our IPO. Nonqualified stock options that were granted under the 2003 Stock Option Plan become exercisable, with limited exceptions, in 25% increments on each of the first four anniversaries of the date upon which the options are granted or vest 50% in the third and 50% in the fourth year after issuance of the grant. The contractual term of each grant is ten years.

F-46

QUALITY DISTRIBUTION, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements—(Continued)

For the Years Ended December 31, 2012, 2011 and 2010

The 2003 Stock Option Plan activity for the year ended December 31, 2012 is as follows (in thousands, except per share data):

	Number of Shares Outstanding			Weighted Average Exercise Price Per Share		Weighted Average Remaining contractual Term (in years)		Aggregate Intrinsic Value (in thousands) (a)
Options outstanding at December 31, 2010		2,356		$	4.97
2011 option activity:
Granted		233		$	9.70
Exercised (b)(c)		(348	)	$	5.11
Canceled		(34	)	$	4.56
Options outstanding at December 31, 2011		2,207		$	5.45
2012 option activity:
Granted		163		$	13.00
Exercised (b)(c)		(82	)	$	4.40
Canceled		(36	)	$	5.69
Expired		(48	)	$	8.12
Options outstanding at December 31, 2012		2,204		$	5.99
Options exercisable and expected to vest at December 31, 2012		1,580		$	5.25		5.14	$	2,623

(a) The intrinsic value of a stock option is the amount by which the market value of the underlying stock as of December 31, 2012 exceeds the exercise price of the option multiplied by the number of shares represented by such option.

(b) Shares issued upon the exercise of stock options were treated as newly issued shares.

(c) There was no tax benefit recognized in 2012, 2011 and 2010 related to stock-based compensation.

During the years ended December 31, 2012, 2011 and 2010 (in thousands, except per share data):

• the weighted-average grant date fair value per share of stock-based compensation granted to employees during the three periods above was $8.09, $6.19 and $4.19, respectively;

• the total intrinsic value of stock options exercised in 2012 and 2011 was $0.5 million and $2.4 million, respectively. The total intrinsic value of stock options exercised in 2010 was deminimus; and

• the total fair value of stock options that vested during the three periods above was $1,223, $1,229 and $1,223, respectively.

During the year ended December 31, 2012, cash was not used to settle any equity instruments previously granted.

2003 Restricted Stock Incentive Plan

On November 5, 2003, our Board of Directors approved the 2003 Restricted Stock Incentive Plan, in connection with our IPO. The vesting periods for grant recipients were at the discretion of the Compensation Committee of the Board of Directors.

The 2003 Restricted Stock Incentive Plan activity for the year ended December 31, 2012 is as follows (in thousands, except per share data):

	Number of Shares Outstanding			Weighted Average Grant Date Fair Value Per Share		Aggregate Intrinsic Value
Restricted stock unvested at December 31, 2010		479		$	3.90
2011 activity:
Granted		93		$	9.39
Vested		(220	)	$	4.12
Canceled		(17	)	$	4.93
Restricted stock unvested at December 31, 2011		335		$	5.22	$	3,766
2012 activity:
Granted		152		$	12.67
Vested		(263	)	$	6.17
Canceled		(5	)	$	8.84
Restricted stock unvested at December 31, 2012		219		$	9.19	$	1,312

Accounting for Stock-Based Compensation

Compensation expense is recognized only for those options expected to vest, with forfeitures estimated based on our historical experience and future expectations.

The fair value of options granted during 2012, 2011 and 2010 was based upon the Black-Scholes option-pricing model. The expected term of the options represents the estimated period of time until exercise giving consideration to the contractual terms, vesting schedules and expectations of future employee behavior. Expected stock price volatility is based on the historical volatility of our common stock, which began trading on November 13, 2003. The risk-free interest rate is based on the U.S. Treasury yield curve in

F-47

QUALITY DISTRIBUTION, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements—(Continued)

For the Years Ended December 31, 2012, 2011 and 2010

effect at the time of grant with an equivalent remaining term. The Company has not paid dividends in the past and does not currently plan to pay any dividends in the foreseeable future. The Black-Scholes model was used with the following weighted-average assumptions:

	2012			2011			2010
Risk free rate		0.8	%		0.8	%		2.0	%
Expected life		5 years			5 years			5 years
Volatility		77.6	%		78 .0	%		77 .0	%
Expected dividend		—			—			—

F-48

QUALITY DISTRIBUTION, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements—(Continued)

For the Years Ended December 31, 2012, 2011 and 2010

Restricted stock awards are measured at fair value which is the stock price at date of grant at time of issuance and recognized on a straight-line basis over the vesting period.

Stock-based compensation expense recognized during the years ended December 31, 2012, 2011 and 2010 for each of the types of stock-based awards was (in thousands):

	2012		2011		2010
Stock options	$	1,741	$	1,777	$	1,351
Restricted stock		1,497		1,097		922
Total stock-based compensation expense	$	3,238	$	2,874	$	2,273

All stock-based compensation expense is classified within “Compensation” on the Consolidated Statements of Operations. None of the stock-based compensation was capitalized during 2012 and 2011.

The following table summarizes unrecognized stock-based compensation and the weighted average period over which such stock-based compensation is expected to be recognized as of December 31, 2012 (in thousands):

			Remaining years
Stock options	$	2,339		2.5
Restricted stock		1,724		2.2
	$	4,063

These amounts do not include the cost of any additional awards that may be granted in future periods nor any changes in our forfeiture rate. These amounts do not include the cost of any additional options or restricted stock that may be granted in future periods or any changes in the Company’s forfeiture rate.

F-49

QUALITY DISTRIBUTION, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements—(Continued)

For the Years Ended December 31, 2012, 2011 and 2010

20. COMMITMENTS AND CONTINGENCIES

Operating Leases

We are obligated under various noncancelable operating leases for our office facilities, office equipment, revenue equipment and vehicles. Future noncancelable lease commitments (excluding any sublease income) as of December 31, 2012, are as follows (in thousands):

2013	$	21,877
2014		19,976
2015		19,135
2016		19,288
2017		16,017
Thereafter		2,985
Total	$	99,278

We expect that some of our operating lease commitments for tractors and trailers will be partially offset by rental revenue from subleasing the tractors to independent affiliates and independent owner-operators and subleasing trailers to independent affiliates. Rent expense under operating leases was $23.2 million, $13.3 million and $16.8 million for the years ended December 31, 2012, 2011 and 2010, respectively.

Environmental Matters

It is our policy to comply with all applicable environmental, safety and health laws. We also are committed to the principles of Responsible Care^®, an international chemical industry initiative to enhance the industry’s responsible management of chemicals. We have obtained independent certification that our management system is in place and functions according to professional standards and we continue to evaluate and continuously improve our Responsible Care^® Management System performance. Our current activities involve the handling, transportation and storage of bulk chemicals, both liquid and dry, disposal water, and crude oil, which in many cases are classified as hazardous materials or hazardous substances. The energy logistics business operates disposal wells for non-conventional oil drilling wastewater. In addition, our former tank wash business (which was sold in 2009) and the remaining limited tank wash activities involve the generation, storage, discharge and disposal of wastes that may contain hazardous substances. As such, we and others who operate in our industry are subject to environmental, health and safety laws and regulation by U.S. federal, state and local agencies as well as foreign governmental authorities. Environmental laws and regulations are complex, and address emissions to the air, discharge onto land or water, and the generation, handling, storage, transportation, treatment and disposal of waste materials. These laws change frequently and generally require us to obtain and maintain various licenses and permits. Environmental laws have tended to become more stringent over time, and most provide for substantial fines and potential criminal sanctions for violations. Some of these laws and regulations are subject to varying and conflicting interpretations. Under certain of these laws, we could also be subject to allegations of liability for the activities of our independent affiliates or independent owner-operators.

F-50

QUALITY DISTRIBUTION, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements—(Continued)

For the Years Ended December 31, 2012, 2011 and 2010

We are potentially subject to strict, joint and several liability for investigating and rectifying the consequences of spills and other releases of such substances. From time to time, we have incurred remedial costs and regulatory penalties with respect to chemical or wastewater spills and releases at our facilities and on the road, and, notwithstanding the existence of our environmental management program, we cannot: (1) assure that such obligations will not be incurred in the future, (2) predict with certainty the extent of future liabilities and costs under environmental, health, and safety laws, or (3) assure that such liabilities will not result in a material adverse effect on our business, financial condition, operating results or cash flow. We have established reserves for remediation expenses at known contamination sites when it is probable that such efforts will be required of us and the related expenses can be reasonably estimated. We have also incurred in the past, and expect to incur in the future, expenditures related to environmental compliance; however, we do not anticipate that compliance with existing environmental laws will have a material adverse effect on our earnings or competitive position.

Environmental Reserves

Our policy is to accrue remediation expenses when it is probable that such efforts will be required and the related expenses can be reasonably estimated. Estimates of costs for future environmental compliance and remediation may be impacted by such factors as changes in environmental laws and regulatory requirements, the availability and application of technology, the identification of currently unknown potential remediation sites and the allocation of costs among the potentially responsible parties under the applicable statutes. Our reserves for environmental compliance and remediation are adjusted periodically as remediation efforts progress or as additional technical or legal information becomes available. It is difficult to quantify with certainty the potential financial impact of actions regarding expenditures for environmental matters, particularly remediation, and future capital expenditures for environmental control equipment. Nevertheless, based upon the information currently available, we believe that our ultimate liability arising from such environmental matters, taking into account the reserves described below, should not be material to our business or financial condition. As of December 31, 2012 and 2011, we had reserves in the amount of $9.0 million and $10.1 million, respectively, for all environmental matters, of which the most significant are presented and discussed below.

	Number of Sites				Reserves (in millions)
	December 31, 2012		December 31, 2011		December 31, 2012		December 31, 2011
Multi-party sites		15		18	$	1.7	$	2.2
Sole party sites:
Bridgeport, New Jersey		1		1		4.8		5.3
William Dick, Pennsylvania		1		1		0.7		0.9
Other Properties		6		6		1.8		1.7
Total		23		26	$	9.0	$	10.1

The foregoing amounts include estimates for future expenditures over the next five years that we believe are probable and are reasonably estimable. The estimate of the range of reasonably possible costs is less certain than the estimates upon which the reserves are based, and the estimated high ends of the ranges do not represent our maximum theoretical liability.

Changes to the environmental reserves are reflected in our Consolidated Statements of Operations within the “Selling and administrative” category.

Property Contamination Liabilities—Multi-Party Sites

We have been named as (or are alleged to be) a potentially responsible party under the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended (“CERCLA”) and similar state laws at approximately 23 sites. At 15 of the 23 sites, we are one of many parties with alleged liability and are negotiating with Federal, State or private parties on the scope of our obligations, if any. At 1 of the 15 sites, we are participating in the initial study to determine site remediation objectives. Since our overall liability cannot be estimated at this time, we have set reserves for only the initial remedial investigation phase. At 2 of the 15 sites, we have explicitly denied any liability and since there has been no subsequent demand for payment we have not established a reserve for these matters. We have estimated all future expenditures for these 15 multi-party environmental matters to be paid over the next five years to be in the range of $1.7 million to $3.8 million. As of December 31, 2012, we have reserved $1.7 million.

F-51

QUALITY DISTRIBUTION, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements—(Continued)

For the Years Ended December 31, 2012, 2011 and 2010

Sole Party Sites

At 8 of the 23 sites, we are alleged to be the only responsible party and are in the process of conducting investigations and/or remediation projects. Five of these projects relate to operations conducted by CLC and its subsidiaries prior to our acquisition of CLC in 1998. These five sites are: (1) Bridgeport, New Jersey; (2) William Dick, Pennsylvania; (3) Tonawanda, New York; (4) Scary Creek, West Virginia; and (5) Charleston, West Virginia. The remaining three sites relate to investigations and potential remediation that were triggered by the New Jersey Industrial Site Recovery Act (“ISRA”), which requires such investigations and remediation following the sale of industrial facilities. Each of these five CLC sites is discussed in more detail below. We have estimated future expenditures over the next five years for these eight properties to be in the range of $7.3 million to $16.7 million. As of December 31, 2012, we have reserved $7.3 million.

Bridgeport, New Jersey

QDI is required under the terms of three federal consent decrees to perform remediation work at this operating truck terminal and tank wash site. CLC entered into consent orders with the U.S. Environmental Protection Agency (“USEPA”) in 1991, to treat groundwater, in 1998, to remove contamination in the wetlands, and in 2010, to assess and remediate contaminated soils at the site.

The groundwater treatment remedy negotiated with USEPA required us to construct a treatment facility for in-place treatment of groundwater contamination and a local discharge which was completed in early 2007. After various start-up issues, the treatment facility began long-term operations in July 2011 and is in the operations and maintenance phase. The plant appears to be performing in accordance with its design criteria and meeting permit requirements. Wetlands contamination has been remediated with localized restoration completed. Monitoring of the restored wetlands is required by USEPA to continue in 2012, and USEPA has requested additional monitoring through 2017. In regard to contaminated soils, USEPA finalized the feasibility study and issued a record of decision in 2009 for the limited areas that show contamination and warrant additional investigation or work. We entered into a consent order with USEPA in 2010 to perform the remediation work, which will consist of in-place thermal treatment. In late 2012, USEPA concluded that our additional required site investigation work for delineation purposes is now complete. The preliminary engineering design effort for the contaminated soils was started. We have estimated aggregate expenditures for the Bridgeport location over the next five years to be in the range of $4.8 million to $8.5 million. As of December 31, 2012, we have reserved $4.8 million.

William Dick, Pennsylvania

CLC entered into a consent order with the Pennsylvania Department of Environmental Protection and USEPA in 1995 to provide a replacement water supply to area residents, treat contaminated groundwater, and perform remediation of contaminated soils at this former wastewater disposal site. The replacement water supply is complete. We completed construction of a groundwater treatment facility with local discharge in 2007 and the treatment facility began operations in 2010. Although initial soil treatment was completed in 2007, test results indicated that soil clean-up objectives were not fully achieved. Soil piles from isolated discrete removal actions were subsequently treated on-site; we are awaiting approval from USEPA that this work is complete. Negotiations are on-going with USEPA over further limited soil remediation consisting of targeted in-situ chemical treatment that may be needed at the site. We have estimated aggregate expenditures for the William Dick location over the next five years to be in the range of $0.7 million to $3.4 million. As of December 31, 2012, we have reserved $0.7 million.

Other Properties

Tonawanda, New York: CLC entered into a consent order with the New York Department of Environmental Conservation (“NYSDEC”) in 1999 obligating it to perform soil and groundwater remediation at this former truck terminal and tank wash site. The state issued a record of decision in 2006. The remedial design work plan has been approved by the NYSDEC, and the remedial action phase is expected to begin in 2013.

Scary Creek, West Virginia: CLC received a cleanup notice from the state environmental authority in 1994. The state and we have agreed that remediation can be conducted under the state’s voluntary clean-up program (instead of the state superfund enforcement program). We are currently completing the originally planned remedial investigation and the additional site investigation work.

F-52

QUALITY DISTRIBUTION, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements—(Continued)

For the Years Ended December 31, 2012, 2011 and 2010

Charleston, West Virginia: CLC completed its remediation plan for a former drum disposal area in 1995 at this truck terminal and tank wash site under the terms of a state hazardous waste permit. Supplemental groundwater monitoring was also required and completed. In 2012, we entered into the state’s voluntary clean-up program which requires us to perform additional sampling to close the site. Initial sampling work has commenced at the site.

ISRA New Jersey Facilities: We are obliged to conduct investigations and remediation at three current or former New Jersey tank wash and terminal sites pursuant to the state’s ISRA, which requires such remediation following the sale of facilities after 1983. Two of the sites are in the process of remedial investigation with projections set in contemplation of limited soil remediation expense for contaminated areas.

One site has completed the investigation phase and a final report was submitted to New Jersey Department of Environmental Protection. In accordance with the report findings and with the concurrence of the NJDEP, remedial efforts included limited soil excavation at the site, deed recordation, placement of clean fill and the designation of a Classification Exception Area for the groundwater. No further field remediation work is expected and this site has entered a long term monitoring phase.

We have estimated aggregate future expenditures over the next five years for Tonawanda, Scary Creek, Charleston and ISRA New Jersey to be in the range of $1.8 million to $4.8 million. As of December 31, 2012, we have reserved $1.8 million.

Other Legal Matters

We are from time to time involved in routine litigation incidental to the conduct of our business. We believe that no such routine litigation currently pending against us, if adversely determined, would have a material adverse effect on our consolidated financial position, results of operations or cash flows.

21. TRANSACTIONS WITH RELATED PARTIES

At March 1, 2013 and December 31, 2012, Apollo and its affiliated funds owned or controlled approximately 17.4% and 17.3%, respectively, of QDI’s outstanding common stock. As a result, Apollo can influence substantially all matters requiring shareholder approval, including the election of directors, the approval of significant corporate transactions, such as acquisitions and the ability to block an unsolicited tender offer.

In 2012, three of our customers (Momentive Specialty Chemical, Taminco and Lyondell Chemical) are controlled by Apollo. Revenues from these customers were $14.1 million in 2012. In 2011, one of our customers (Momentive Specialty Chemical) was controlled by Apollo. Revenues from this customer were $16.3 million. In 2010, two of our customers (Hexion Specialty Chemicals and Momentive Specialty Chemicals) were controlled by Apollo. Revenues from these two customers were $15.0 million in 2010. All pricing with the companies controlled by Apollo was based on market rates, including such factors as total expected revenue to be generated by the customer, number of loads to be hauled and the number of miles to be driven.

F-53

QUALITY DISTRIBUTION, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements—(Continued)

For the Years Ended December 31, 2012, 2011 and 2010

22. GUARANTOR SUBSIDIARIES

At and during the year ended December 31, 2012, there were outstanding 2018 Notes that were issued by our subsidiaries, QD LLC and QD Capital. The payment obligations of QD LLC and QD Capital under the 2018 Notes are guaranteed by QDI and by all of its domestic subsidiaries other than immaterial subsidiaries as further described below.

The 2018 Notes are the senior obligations of our subsidiaries, QD LLC and QD Capital, and are secured by a subordinated, second-priority lien on assets that secure our ABL Facility through a collateral agreement that is separate from the indenture under which these notes were issued. Pursuant to an intercreditor agreement, the liens on the collateral securing the 2018 Notes rank junior in right of payment to the ABL Facility and obligations under certain hedging agreements and cash management obligations and certain other first-lien obligations. Decisions regarding the maintenance and release of the collateral secured by the collateral agreement are made by the lenders under our ABL Facility and neither the indenture trustee nor the holders of the 2018 Notes have control of decisions regarding the release of the collateral.

The 2018 Notes are also guaranteed on a second-priority senior secured basis, jointly and severally, by QDI, subsidiary guarantors, and certain of our future U.S. restricted subsidiaries. The guarantees of the subsidiary guarantors are full and unconditional subject to customary release provisions for sales of a subsidiary in compliance with other provisions of the indenture for the 2018 Notes (the “Notes Indenture”), foreclosures of a pledge of the equity interests of the subsidiary, the right to designate a subsidiary as unrestricted under the terms of the Notes Indenture, the discharge of the 2018 Notes or the defeasance of the Notes Indenture. The guarantee of QDI is full and unconditional.

The subsidiary guarantors of all of the 2018 Notes are all of our direct and indirect domestic subsidiaries other than immaterial subsidiaries. No non-domestic subsidiaries are guarantor subsidiaries. QD Capital has no material assets or operations. QD LLC, all of the subsidiary guarantors and QD Capital are 100% owned by QDI. The subsidiary guarantors are 100% owned subsidiaries of QD LLC. QD LLC conducts substantially all of its business through and derives virtually all of its income from its subsidiaries. Therefore, its ability to make required principal and interest payments with respect to its indebtedness depends on the earnings of subsidiaries and its ability to receive funds from its subsidiaries through dividend and other payments.

QDI has no significant restrictions on its ability to receive funds from its subsidiaries. The ABL Facility and the indenture governing our 2018 Notes contain certain limitations on QD LLC’s ability to make distributions to QDI. We do not consider these restrictions to be significant, because QDI is a holding company with no significant operations or assets, other than ownership of 100% of QD LLC’s membership units. QD LLC’s direct and indirect wholly owned subsidiaries are generally permitted to make distributions to QD LLC, which is the principal obligor under the ABL Facility and the 2018 Notes. We do not believe that additional financial or narrative information about QDI, QD LLC, QD Capital or the subsidiary guarantors would be material to evaluating the guarantees.

The following condensed consolidating financial information for QDI, QD LLC, and QD Capital, which has no assets or operations, non-guarantor subsidiaries and combined guarantor subsidiaries presents:

• Condensed consolidating balance sheets at December 31, 2012 and December 31, 2011 and condensed consolidating statements of operations for the years ended December 31, 2012 and 2011, and the condensed consolidating statements of cash flows for each of the years ended December 31, 2012 and 2011.

• Elimination entries necessary to consolidate the parent company and all its subsidiaries.

F-54

QUALITY DISTRIBUTION, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements—(Continued)

For the Years Ended December 31, 2012, 2011 and 2010

The Company revised its condensed consolidating Balance Sheet for the year ended December 31, 2011 to correct the presentation of inter-company balances from net to gross amounts within current and long-term assets and liabilities, respectively. The revision was made to appropriately reflect intercompany balances for QDI, QD LLC and QD Capital, the Guarantor subsidiaries and Non-Guarantor subsidiaries as of December 31, 2011. This revision, which the Company determined is not material, and had no impact on the consolidated financial statements or footnotes, except for the QDI, QD LLC and QD Capital, the Guarantor subsidiaries and Non-Guarantor subsidiaries columns of the condensed consolidating balance sheet as of December 31, 2011.

The Company further revised its condensed consolidated balance sheet for the year ended December 31, 2011 to correct the presentation of investment in subsidiaries in the Guarantor subsidiaries column. The correction reclassifies the balance of approximately $28.0 million from Investment in subsidiary into noncurrent intercompany receivable. This revision, which the Company determined is not material, had no impact on the consolidated financial statements or footnotes other than the Guarantor subsidiaries column of the condensed consolidating balance sheet as of December 31, 2011.

F-55

QUALITY DISTRIBUTION, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements—(Continued)

For the Years Ended December 31, 2012, 2011 and 2010

Condensed Consolidating Statement of Operations

For the Year Ended December 31, 2012

(in thousands)

	QDI			QD LLC & QD Capital			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Operating revenues:
Transportation	$	—		$	—		$	597,406		$	—		$	—		$	597,406
Service revenue		—			—			120,698			403			—			121,101
Fuel surcharge		—			—			123,611			—			—			123,611
Total operating revenues		—			—			841,715			403			—			842,118
Operating expenses:
Purchased transportation		—			—			552,524			—			—			552,524
Compensation		—			—			82,143			—			—			82,143
Fuel, supplies and maintenance		—			—			82,033			—			—			82,033
Depreciation and amortization		—			—			21,090			—			—			21,090
Selling and administrative		—			39			33,758			85			—			33,882
Insurance costs		—			—			15,821			9			—			15,830
Taxes and licenses		—			—			2,825			—			—			2,825
Communication and utilities		—			—			3,636			—			—			3,636
Gain on disposal of property and equipment		—			—			(846	)		(142	)		—			(988	)
Operating (loss) income		—			(39	)		48,731			451			—			49,143
Interest expense (income), non-related party, net		—			28,490			782			(14	)		—			29,258
Interest (income) expense, related party, net		—			(28,490	)		28,905			(415	)		—			—
Other expense		—			—			(2,849	)		(15	)		—			(2,864	)
(Loss) income before income taxes		—			(39	)		21,893			895			—			22,749
Provision for (benefit from) income taxes		3,306			—			(30,799	)		166			—			(27,327	)
Equity in earnings of subsidiaries		53,382			53,421			—			—			(106,803	)		—
Net income	$	50,076		$	53,382		$	52,692		$	729		$	(106,803	)	$	50,076
Total other comprehensive loss		(371	)		(371	)		(328	)		(43	)		742			(371	)
Comprehensive income	$	49,705		$	53,011		$	52,364		$	686		$	(106,061	)	$	49,705

F-56

QUALITY DISTRIBUTION, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements—(Continued)

For the Years Ended December 31, 2012, 2011 and 2010

Condensed Consolidating Statement of Operations

For the Year Ended December 31, 2011

(in thousands)

	QDI			QD LLC & QD Capital			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Operating revenues:
Transportation	$	—		$	—		$	517,780		$	—		$	—		$	517,780
Service revenue		—			—			110,064			524			—			110,588
Fuel surcharge		—			—			117,583			—			—			117,583
Total operating revenues		—			—			745,427			524			—			745,951
Operating expenses:
Purchased transportation		—			—			522,866			—			—			522,866
Compensation		—			—			61,098			—			—			61,098
Fuel, supplies and maintenance		—			—			51,102			—			—			51,102
Depreciation and amortization		—			—			14,413			—			—			14,413
Selling and administrative		—			120			21,445			82			—			21,647
Insurance costs		—			—			14,025			17			—			14,042
Taxes and licenses		—			—			2,211			—			—			2,211
Communication and utilities		—			—			2,732			—			—			2,732
Gain on disposal of property and equipment		—			—			(1,318	)		—			—			(1,318	)
Restructuring credit		—			—			(521	)		—						(521	)
Operating (loss) income		—			(120	)		57,374			425			—			57,679
Interest (income) expense, non-related party, net		(15	)		28,012			923			(8	)		—			28,912
Interest (income) expense, related party, net		—			(28,012	)		28,427			(415	)		—			—
Write-off of debt issuance costs		—			3,181			—			—			—			3,181
Other expense		—			2			201			11			—			214
Income (loss) before income taxes		15			(3,303	)		27,823			837			—			25,372
Provision for (benefit from) income taxes		126			—			1,860			(45	)		—			1,941
Equity in earnings of subsidiaries		23,542			26,845			—			—			(50,387	)		—
Net income	$	23,431		$	23,542		$	25,963		$	882		$	(50,387	)	$	23,431
Total other comprehensive (loss) income		(5,187	)		(5,187	)		(5,213	)		26			10,374			(5,187	)
Comprehensive income	$	18,244		$	18,355		$	20,750		$	908		$	(40,013	)	$	18,244

F-57

QUALITY DISTRIBUTION, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements—(Continued)

For the Years Ended December 31, 2012, 2011 and 2010

Condensed Consolidating Statement of Operations

For the Year Ended December 31, 2010

(in thousands)

	QDI			QD LLC and QD  Capital			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Consolidated
Operating revenues:
Transportation	$	—		$	—		$	498,446		$	—		$	—	$	498,446
Service revenue		—			—			106,893			581			—		107,474
Fuel surcharge		—			—			80,678			—			—		80,678
Total operating revenues		—			—			686,017			581			—		686,598
Operating expenses:
Purchased transportation		—			—			471,792			—			—		471,792
Compensation		—			—			57,563			—			—		57,563
Fuel, supplies and maintenance		—			—			54,366			1			—		54,367
Depreciation and amortization		—			—			16,004			—			—		16,004
Selling and administrative		33			195			19,015			96					19,339
Insurance costs		—			—			15,525			21			—		15,546
Taxes and licenses		—			—			2,218			—			—		2,218
Communication and utilities		—			—			4,119			—			—		4,119
Loss (gain) on disposal of property and equipment		—			—			1,141			(5	)		—		1,136
Restructuring costs		—			—			7,779			—			—		7,779
Operating (loss) income		(33	)		(195	)		36,495			468			—		36,735
Interest expense (income), non-related party, net		37			34,221			1,339			(49	)		—		35,548
Interest (income) expense, related party, net		—			(34,226	)		34,652			(426	)		—		—
Write-off of debt issuance costs		—			7,391			—			—			—		7,391
Other expense (income)		735			174			96			(214	)		—		791
(Loss) income before income taxes		(805	)		(7,755	)		408			1,157			—		(6,995	)
Provision for (benefit from) income taxes		3			—			822			(414	)		—		411
(Loss) equity in earnings of subsidiaries		(6,598	)		1,157			—			—			5,441		—
Net (loss) income	$	(7,406	)	$	(6,598	)	$	(414	)	$	1,571		$	5,441	$	(7,406	)
Total other comprehensive loss		(607	)		(607	)		(520	)		(87	)		1,214		(607	)
Comprehensive (loss) income	$	(8,013	)	$	(7,205	)	$	(934	)	$	1,484		$	6,655	$	(8,013	)

F-58

QUALITY DISTRIBUTION, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements—(Continued)

For the Years Ended December 31, 2012, 2011 and 2010

Consolidating Balance Sheet, December 31, 2012

(in thousands)

	QDI			QD LLC and QD Capital			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	—		$	—		$	2,580		$	124		$	—		$	2,704
Accounts receivable, net		—			—			113,863			43			—			113,906
Prepaid expenses		—			(19	)		14,648			22			—			14,651
Deferred tax asset, net		—			—			16,609			—			—			16,609
Intercompany		—			—			369,458			88			(369,546	)		—
Other		44			—			9,679			(29	)		—			9,694
Total current assets		44			(19	)		526,837			248			(369,546	)		157,564
Property and equipment, net		—			—			190,342			—			—			190,342
Goodwill		—			—			104,294			—			—			104,294
Intangibles, net		—			—			37,654			—			—			37,654
Non-current deferred tax asset, net		(2,300	)		—			14,013			—			—			11,713
Investment in subsidiaries		(86,339	)		425,602			—			—			(339,263	)		—
Intercompany		144,738			252,732			389,289			11,582			(798,341	)		—
Other assets		—			9,510			2,526			—			—			12,036
Total assets	$	56,143		$	687,825		$	1,264,955		$	11,830		$	(1,507,150	)	$	513,603
LIABILITIES AND SHAREHOLDERS’ (DEFICIT) EQUITY
Current liabilities:
Current maturities of indebtedness	$	—		$	—		$	3,918		$	—		$	—		$	3,918
Current maturities of capital lease obligations		—			—			3,913			—			—			3,913
Accounts payable		—			—			9,977			(11	)		—			9,966
Intercompany		74,583			—			294,963			—			(369,546	)		—
Independent affiliates and independent owner-operators payable		—			—			14,243			—			—			14,243
Accrued expenses		—			4,294			33,567			28			—			37,889
Environmental liabilities		—			—			2,739			—			—			2,739
Accrued loss and damage claims		—			—			7,326			—			—			7,326
Total current liabilities		74,583			4,294			370,646			17			(369,546	)		79,994
Long-term indebtedness, less current maturities		—			384,935			23,915			—			—			408,850
Capital lease obligations, less current maturities		—			—			2,125			—			—			2,125
Environmental liabilities		—			—			6,302			—			—			6,302
Accrued loss and damage claims		—			—			9,494			—			—			9,494
Intercompany		—			384,935			409,053			4,353			(798,341	)		—
Other non-current liabilities		—			—			25,233			45			—			25,278
Total liabilities		74,583			774,164			846,768			4,415			(1,167,887	)		532,043
Shareholders’ (deficit) equity:
Common stock		437,192			354,963			390,760			4,191			(749,914	)		437,192
Treasury stock		(5,849	)		—			—			—			—			(5,849	)
Accumulated (deficit) retained earnings		(228,467	)		(220,458	)		57,630			4,356			158,472			(228,467	)
Stock recapitalization		(189,589	)		(189,589	)		—			(55	)		189,644			(189,589	)
Accumulated other comprehensive loss		(31,752	)		(31,280	)		(30,203	)		(1,077	)		62,560			(31,752	)
Stock purchase warrants		25			25			—			—			(25	)		25
Total shareholders’ (deficit) equity		(18,440	)		(86,339	)		418,187			7,415			(339,263	)		(18,440	)
Total liabilities and shareholders’ equity (deficit)		56,143		$	687,825		$	1,264,955		$	11,830		$	(1,507,150	)	$	513,603

F-59

QUALITY DISTRIBUTION, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements—(Continued)

For the Years Ended December 31, 2012, 2011 and 2010

Consolidating Balance Sheet, December 31, 2011

(in thousands)

	QDI			QD LLC and QD Capital			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	—		$	—		$	3,540		$	513		$	—		$	4,053
Accounts receivable, net		—			—			90,509			58			—			90,567
Prepaid expenses		—			31			7,818			—			—			7,849
Intercompany		—			122,294			147,251			2,440			(271,985	)		—
Deferred tax asset, net		—			—			4,048			—			—			4,048
Other		307			—			3,551			—			—			3,858
Total current assets		307			122,325			256,717			3,011			(271,985	)		110,375
Property and equipment, net		—			—			125,892			—			—			125,892
Goodwill		—			—			31,344			—			—			31,344
Intangibles, net		—			—			18,471			—			—			18,471
Investment in subsidiaries		(138,028	)		382,191			—			—			(244,163	)		—
Intercompany		66,198			—			316,983			8,383			(391,564	)		—
Other assets		—			10,655			5,658			—			—			16,313
Total assets	$	(71,523	)	$	515,171		$	755,065		$	11,394		$	(907,712	)	$	302,395
LIABILITIES AND SHAREHOLDERS’ (DEFICIT) EQUITY
Current liabilities:
Current maturities of indebtedness	$	—		$	—		$	4,139		$	—		$	—		$	4,139
Current maturities of capital lease obligations		—			—			5,261			—			—			5,261
Accounts payable		—			—			7,579			(8	)		—			7,571
Intercompany		35,328			—			232,720			3,937			(271,985	)		—
Independent affiliates and independent owner-operators payable		—			—			9,795			—			—			9,795
Accrued expenses		341			4,184			20,751			51			—			25,327
Environmental liabilities		—			—			3,878			—			—			3,878
Accrued loss and damage claims		—			—			8,614			—			—			8,614
Total current liabilities		35,669			4,184			292,737			3,980			(271,985	)		64,585
Long-term indebtedness, less current maturities		—			289,019			4,804			—			—			293,823
Capital lease obligations, less current maturities		—			—			3,840			—			—			3,840
Environmental liabilities		—			—			6,222			—			—			6,222
Accrued loss and damage claims		—			—			9,768			—			—			9,768
Intercompany		—			359,996			31,568			—			(391,564	)		—
Other non-current liabilities		(1,007	)		—			31,306			43			—			30,342
Total liabilities		34,662			653,199			380,245			4,023			(663,549	)		408,580
Shareholders’ (deficit) equity:
Common stock		393,859			354,963			399,757			4,833			(759,553	)		393,859
Treasury stock		(1,878	)		—			—			—			—			(1,878	)
Accumulated (deficit) retained earnings		(278,543	)		(273,840	)		4,938			3,627			265,275			(278,543	)
Stock recapitalization		(189,589	)		(189,589	)		—			(55	)		189,644			(189,589	)
Accumulated other comprehensive loss		(31,381	)		(30,909	)		(29,875	)		(1,034	)		61,818			(31,381	)
Stock purchase warrants		1,347			1,347			—			—			(1,347	)		1,347
Total shareholders’ (deficit) equity		(106,185	)		(138,028	)		374,820			7,371			(244,163	)		(106,185	)
Total liabilities and shareholders’ (deficit) equity	$	(71,523	)	$	515,171		$	755,065		$	11,394		$	(907,712	)	$	302,395

F-60

QUALITY DISTRIBUTION, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements—(Continued)

For the Years Ended December 31, 2012, 2011 and 2010

Condensed Consolidating Statement of Cash Flows

For the Year Ended December 31, 2012

(in thousands)

	QDI			QD LLC and QD Capital			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net income	$	50,076		$	53,382		$	52,692		$	729		$	(106,803	)	$	50,076
Adjustments for non-cash charges		(46,838	)		(79,562	)		15,204			(557	)		106,803			(4,950	)
Net changes in assets and liabilities		(2,908	)		1,305			(26,519	)		(2	)		—			(28,124	)
Intercompany activity		(330	)		24,875			(23,986	)		(559	)		—			—
Net cash provided by (used in) operating activities		—			—			17,391			(389	)		—			17,002
Cash flows from investing activities:
Capital expenditures		—			—			(32,317	)		—			—			(32,317	)
Greensville purchase price adjustment		—			—			(566	)		—			—			(566	)
Acquisition of Trojan		—			—			(8,657	)		—			—			(8,657	)
Acquisition of Bice		—			—			(52,176	)		—			—			(52,176	)
Acquisition of Dunn’s		—			—			(34,321	)		—			—			(34,321	)
Acquisition of independent affiliate’s assets		—			—			(17,143	)		—			—			(17,143	)
Proceeds from sales of property and equipment		—			—			13,497			—			—			13,497
Net cash used in investing activities		—			—			(131,683	)		—			—			(131,683	)
Cash flows from financing activities:
Principal payments on long-term debt and capital lease obligations		—			—			(8,540	)		—			—			(8,540	)
Proceeds from revolver		—			236,800			—			—			—			236,800
Payments on revolver		—			(141,100	)		—			—			—			(141,100	)
Deferred financing costs		—			(989	)		—			—			—			(989	)
Proceeds from equity offering, net of transaction costs		30,493			—			—			—			—			30,493
Proceeds from exercise of stock options		360			—			—			—			—			360
Purchases of treasury stock		(3,658	)		—			—			—			—			(3,658	)
Other		—			—			(34	)		—			—			(34	)
Intercompany activity		(27,195	)		(94,711	)		121,906			—			—			—
Net cash provided by financing activities		—			—			113,332			—			—			113,332
Effect of exchange rate changes on cash		—			—			—			—			—			—
Net decrease in cash and cash equivalents		—			—			(960	)		(389	)		—			(1,349	)
Cash and cash equivalents, beginning of year		—			—			3,540			513			—			4,053
Cash and cash equivalents, end of year	$	—		$	—		$	2,580		$	124		$	—		$	2,704

F-61

QUALITY DISTRIBUTION, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements—(Continued)

For the Years Ended December 31, 2012, 2011 and 2010

Condensed Consolidating Statement of Cash Flows

For the Year Ended December 31, 2011

(in thousands)

	QDI			QD LLC and QD Capital			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net income	$	23,431		$	23,542		$	25,963		$	882		$	(50,387	)	$	23,431
Adjustments for non-cash charges		(20,668	)		(49,029	)		40,760			(415	)		50,387			21,035
Net changes in assets and liabilities		(158	)		(1,238	)		(8,666	)		995			—			(9,067	)
Intercompany activity		(2,605	)		26,725			(22,592	)		(1,528	)		—			—
Net cash provided by (used in) operating activities		—			—			35,465			(66	)		—			35,399
Cash flows from investing activities:
Capital expenditures		—			—			(38,340	)		—			—			(38,340	)
Acquisition of Greensville Transport Company		—			—			(8,594	)		—			—			(8,594	)
Proceeds from sales of property and equipment		—			—			16,476			—			—			16,476
Net cash used in investing activities		—			—			(30,458	)		—			—			(30,458	)
Cash flows from financing activities:
Principal payments on long-term debt and capital lease obligations		—			(33,378	)		(9,229	)		—			—			(42,607	)
Proceeds from revolver		—			175,457			—			—			—			175,457
Payments on revolver		—			(148,457	)		—			—			—			(148,457	)
Deferred financing costs		—			(4,965	)		—			—			—			(4,965	)
Redemption of noncontrolling interest		—			—			(1,833	)		—			—			(1,833	)
Proceeds from equity offering, net of transaction costs		17,580			—			—			—			—			17,580
Proceeds from exercise of stock options		1,768			—			—			—			—			1,768
Other		—			—			415			—			—			415
Intercompany activity		(19,348	)		11,343			8,005			—			—			—
Net cash used in financing activities		—			—			(2,642	)		—			—			(2,642	)
Effect of exchange rate changes on cash		—			—			1			—			—			1
Net increase (decrease) in cash and cash equivalents		—			—			2,366			(66	)		—			2,300
Cash and cash equivalents, beginning of year		—			—			1,174			579			—			1,753
Cash and cash equivalents, end of year	$	—		$	—		$	3,540		$	513		$	—		$	4,053

F-62

QUALITY DISTRIBUTION, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements—(Continued)

For the Years Ended December 31, 2012, 2011 and 2010

Condensed Consolidating Statement of Cash Flows

For the Year Ended December 31, 2010

(in thousands)

	QDI			QD LLC and QD Capital			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net (loss) income	$	(7,406	)	$	(6,598	)	$	(414	)	$	1,571		$	5,441		$	(7,406	)
Adjustments for non-cash charges		9,566			(20,673	)		50,553			(426	)		(5,441	)		33,579
Net changes in assets and liabilities		140			(1,017	)		(5,340	)		1,115			—			(5,102	)
Intercompany activity		(2,300	)		28,288			(24,305	)		(1,683	)		—			—
Net cash provided by operating activities		—			—			20,494			577			—			21,071
Cash flows from investing activities:
Capital expenditures		—			—			(11,184	)		—			—			(11,184	)
Proceeds from sales of property and equipment		—			—			10,105			—			—			10,105
Net cash used in investing activities		—			—			(1,079	)		—			—			(1,079	)
Cash flows from financing activities:
Proceeds from issuance of long-term debt		—			223,479			—			—			—			223,479
Principal payments on long-term debt and capital lease obligations		—			(201,085	)		(9,692	)		—			—			(210,777	)
Proceeds from revolver		—			59,200			—			—			—			59,200
Payments on revolver		—			(88,700	)		—			—			—			(88,700	)
Deferred financing costs		—			(5,594	)		—			—			—			(5,594	)
Other		(692	)		(319	)		(476	)		—			—			(1,487	)
Intercompany activity		692			13,019			(11,611	)		(2,100	)		—			—
Net cash used in financing activities		—			—			(21,779	)		(2,100	)		—			(23,879	)
Effect of exchange rate changes on cash		—			—			7			—			—			7
Net decrease in cash and cash equivalents		—			—			(2,357	)		(1,523	)		—			(3,880	)
Cash and cash equivalents, beginning of year		—			—			3,531			2,102			—			5,633
Cash and cash equivalents, end of year	$	—		$	—		$	1,174		$	579		$	—		$	1,753

F-63

EXHIBIT INDEX

Exhibit No.	Description
2.1	Asset Purchase Agreement, dated May 7, 2012 by and among Quality Carriers, Inc., Wylie Bice Trucking, LLC and Wylie C. Bice. Incorporated herein by reference to Exhibit 2.1 to Current Report on Form 8-K, filed June 6, 2012.
2.2	Asset Purchase Agreement, dated May 7, 2012 by and among QC Environmental Services, Inc., RM Resources, LLC, Wylie C. Bice, Monte Gawryluk and Dean A. Rodne. Incorporated herein by reference to Exhibit 2.1 to Current Report on Form 8-K, filed June 15, 2012.
3.1	Amended and Restated Articles of Incorporation of Quality Distribution, Inc., dated November 4, 2003. Incorporated herein by reference to Exhibit 3.1 to Quality Distribution, Inc.’s Amendment No. 3 to Registration Statement on Form S-1 filed on November 5, 2003 (Registration No. 333-108344).
3.2	Articles of Amendment, dated June 28, 2005 to Amended and Restated Articles of Incorporation of Quality Distribution, Inc. Incorporated herein by reference to Exhibit 3.1 to Quality Distribution, Inc.’s Current Report on Form 8-K filed on June 28, 2005.
3.3	Articles of Amendment to Articles of Incorporation of Quality Distribution, Inc., filed May 28, 2010. Incorporated herein by reference to Exhibit 3.1 to Quality Distribution, Inc.’s Current Report on Form 8-K filed on May 28, 2010.
3.4*	Amended and Restated Bylaws of Quality Distribution. Inc., as amended December 19, 2012.
4.1	Indenture governing the 9% Senior Subordinated Notes due 2010, dated as of November 13, 2003, among Quality Distribution, LLC, QD Capital Corporation, the guarantors named therein and The Bank of New York, as trustee. Incorporated herein by reference to Exhibit 4.5 to Quality Distribution, Inc.’s Annual Report on Form 10-K filed on March 30, 2004.
4.2	Supplemental Indenture to the Indenture governing the 9% Senior Subordinated Notes due 2010, dated as of December 18, 2007, among Quality Distribution, LLC, QD Capital Corporation, Boasso America Corporation and The Bank of New York Trust Company, N.A., as trustee. Incorporated herein by reference to Exhibit 10.6 to Quality Distribution, Inc.’s Current Report on Form 8-K filed on December 24, 2007.
4.3	Second Supplemental Indenture to the Indenture governing the 9% Senior Subordinated Notes due 2010, dated as of August 27, 2009, among Quality Distribution, LLC, QD Capital Corporation, QD Risk Services, Inc. and The Bank of New York Mellon, as trustee. Incorporated herein by reference to Exhibit 10.1 to Quality Distribution, Inc.’s Current Report on Form 8-K filed on August 31, 2009.
4.4	Third Supplemental Indenture to the Indenture governing the Quality Distribution, LLC and QD Capital Corporation’s 9% Senior Subordinated Notes due 2010, dated as of October 14, 2009, among Quality Distribution, LLC, QD Capital Corporation, the guarantors named therein and The Bank of New York Mellon, as trustee. Incorporated herein by reference to Exhibit 4.1 to Quality Distribution, Inc.’s Current Report on Form 8-K filed on October 14, 2009.
4.5	Form of Exchange Note for the 9% Senior Subordinated Notes due 2010 (included as Exhibit B to Exhibit 4.1).
4.6	Indenture governing the Senior Floating Rate Notes due 2012, dated as of January 28, 2005, among Quality Distribution, LLC, QD Capital Corporation, the guarantors named therein and The Bank of New York Trust Company, N.A. as trustee. Incorporated herein by reference to Exhibit 10.2 to Quality Distribution, Inc.’s Current Report on Form 8-K filed on January 28, 2005.
4.7	Supplemental Indenture to the Indenture governing the Senior Floating Rate Notes due 2012, dated as of December 18, 2007, among Quality Distribution, LLC, QD Capital Corporation, the guarantors named therein, Boasso America Corporation and The Bank of New York Trust Company, N.A., as trustee. Incorporated herein by reference to Exhibit 10.7 to Quality Distribution, Inc.’s Current Report on Form 8-K filed on December 24, 2007.
4.8	Second Supplemental Indenture to the Indenture governing the Senior Floating Rate Notes due 2012, Series A, dated as of August 27, 2009, among Quality Distribution, LLC, QD Capital Corporation, the guarantors named therein, QD Risk Services, Inc. and The Bank of New York Mellon Trust Company, N.A., as trustee. Incorporated herein by reference to Exhibit 10.2 to Quality Distribution, Inc.’s Current Report on Form 8-K filed on August 31, 2009.

Exhibit No.	Description
4.9	Third Supplemental Indenture to the Indenture governing the Senior Floating Rate Notes due 2012, Series A, dated as of September 29, 2009, among Quality Distribution, LLC, QD Capital Corporation, the guarantors named therein and The Bank of New York Mellon Trust Company, N.A., as trustee. Incorporated herein by reference to Exhibit 4.1(a) to Quality Distribution, Inc.’s Current Report on Form 8-K filed on September 30, 2009.
4.10	Form of Exchange Note for the Senior Floating Rate Notes due 2012, Series A (included as Exhibit B to Exhibit 4.6).
4.11	Indenture with respect to the Senior Floating Rate Notes due 2012, Series B, dated as of December 18, 2007, among Quality Distribution, LLC, QD Capital Corporation, the guarantors named therein and The Bank of New York Trust Company, N.A., as trustee. Incorporated herein by reference to Exhibit 10.1 to Quality Distribution, Inc.’s Current Report on Form 8-K filed on December 24, 2007.
4.12	Supplemental Indenture to the Indenture governing the Senior Floating Rate Notes due 2012, Series B, dated as of August 27, 2009, among Quality Distribution, LLC, QD Capital Corporation, the guarantors named therein, QD Risk Services, Inc. and The Bank of New York Mellon Trust Company, N.A., as trustee. Incorporated herein by reference to Exhibit 10.3 to Quality Distribution, Inc.’s Current Report on Form 8-K filed on August 31, 2009.
4.13	Second Supplemental Indenture to the Indenture governing the Senior Floating Rate Notes due 2012, Series B, dated as of September 29, 2009, among Quality Distribution, LLC, QD Capital Corporation, the guarantors named therein and The Bank of New York Mellon Trust Company, N.A., as trustee. Incorporated herein by reference to Exhibit 4.1(b) to Quality Distribution, Inc.’s Current Report on Form 8-K filed on September 30, 2009.
4.14	Form of Exchange Note for the Senior Floating Rate Notes due 2012, Series B (included as Exhibit B to Exhibit 4.11).
4.15	Credit Agreement, dated as of December 18, 2007, among Quality Distribution, Inc., Quality Distribution, LLC, Credit Suisse, Cayman Islands Branch, as administrative agent, General Electric Capital Corporation, as collateral agent, SunTrust Bank, as syndication agent the lenders party thereto. Incorporated herein by reference to Exhibit 10.3 to Quality Distribution, Inc.’s Current Report on Form 8-K filed on December 24, 2007.
4.16	First Amendment to Credit Agreement, dated as of October 22, 2010, among Quality Distribution, Inc., Quality Distribution, LLC, the Lenders party hereto, Credit Suisse, Cayman Islands Branch as Administrative Agent for the Lenders, and General Electric Capital Corporation as Collateral Agent for the Lenders. Incorporated herein by reference to Exhibit 10.2 to Quality Distribution, Inc.’s Current Report on Form 8-K filed on October 26, 2010.
4.17	Indenture with respect to the 10% Senior Notes due 2013, dated as of October 15, 2009, among Quality Distribution, LLC, QD Capital Corporation, the guarantors named therein and The Bank of New York Mellon Trust Company, N.A., as trustee. Incorporated herein by reference to Exhibit 4.1 to Quality Distribution, Inc.’s Current Report on Form 8-K filed on October 16, 2009.
	Form of Exchange Note for the 10% Senior Notes due 2013 (included as Exhibit B to Exhibit 4.18).
4.18	Registration Rights Agreement with respect to the 10% Senior Notes due 2013, dated as October 15, 2009, among Quality Distribution, LLC, QD Capital Corporation, the guarantors named therein, and Credit Suisse Securities (USA) LLC and Moelis & Company LLC, as dealer managers. Incorporated herein by reference to Exhibit 4.2 to Quality Distribution, Inc.’s Current Report on Form 8-K filed on October 16, 2009.
4.19	Indenture with respect to the 11.75% Senior Subordinated PIK Notes due 2013, dated as of October 15, 2009, among Quality Distribution, LLC, QD Capital Corporation, the guarantors named therein and The Bank of New York Mellon Trust Company, N.A., as trustee. Incorporated herein by reference to Exhibit 4.3 to Quality Distribution, Inc.’s Current Report on Form 8-K filed on October 16, 2009.

Exhibit No.	Description
4.20	Form of Exchange Note for the 11.75% Senior Subordinated PIK Notes due 2013 (included as Exhibit B to Exhibit 4.21).
4.22	Registration Rights Agreement with respect to the 11.75% Senior Subordinated PIK Notes due 2013, dated as October 15, 2009, among Quality Distribution, LLC, QD Capital Corporation, the guarantors named therein and Credit Suisse Securities (USA) LLC and Moelis & Company LLC, as dealer managers. Incorporated herein by reference to Exhibit 4.4 to Quality Distribution, Inc.’s Current Report on Form 8-K filed on October 16, 2009.
4.22	Warrant Agreement, dated as October 15, 2009, between Quality Distribution, Inc. and The Bank of New York Mellon Trust Company, N.A., as warrant agent. Incorporated herein by reference to Exhibit 4.5 to Quality Distribution, Inc.’s Current Report on Form 8-K filed on October 16, 2009.
4.23	Indenture with respect to the 9.875% Second-Priority Senior Secured Notes due 2018, dated as of November 3, 2010, among Quality Distribution, LLC, QD Capital Corporation, the guarantors named therein and The Bank of New York Mellon Trust Company, N.A., as Trustee and The Bank of New York Mellon Trust Company, N.A., as Collateral Agent. Incorporated herein by reference to Exhibit 4.1 to Quality Distribution, Inc.’s Current Report on Form 8-K filed on November 3, 2010.
4.24*	First Supplemental Indenture to Indenture with respect to the 9.875% Second-Priority Senior Secured Notes due 2018, dated as of August 19, 2011, among Quality Distribution, LLC, QD Capital Corporation, the guarantors named therein and The Bank of New York Mellon Trust Company, N.A., as Trustee and The Bank of New York Mellon Trust Company, N.A., as Collateral Agent.
4.25	Second Supplemental Indenture to Indenture with respect to the 9.875% Second-Priority Senior Secured Notes due 2018, dated as of August 1, 2012, among Quality Distribution, LLC, QD Capital Corporation, the guarantors named therein and The Bank of New York Mellon Trust Company, N.A., as Trustee and The Bank of New York Mellon Trust Company, N.A., as Collateral Agent. Incorporated herein by reference to Exhibit 4.1 to Quality Distribution, Inc.’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2012.
4.26	Form of Initial Note for the 9.875% Second-Priority Senior Secured Notes due 2018 (included as Exhibit B to Exhibit 4.25).
4.27	Registration Rights Agreement with respect to the 9.875% Second-Priority Senior Secured Notes due 2018, dated as November 3, 2010, among Quality Distribution, LLC, QD Capital Corporation, the guarantors named in Annex I thereto and Credit Suisse Securities (USA) LLC, Jefferies & Company, Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated and RBC Capital Markets LLC acting as representatives of the purchasers of the 9.875% Second-Priority Senior Secured Notes due 2018. Incorporated herein by reference to Exhibit 4.2 to Quality Distribution, Inc.’s Current Report on Form 8-K filed on November 3, 2010.
4.28	Collateral Agreement dated and effective as of November 3, 2010, among Quality Distribution Inc., Quality Distribution, LLC, QD Capital Corporation, each subsidiary of QD LLC identified on Schedule I thereto and The Bank of New York Mellon Trust Company, N.A. as collateral agent. Incorporated herein by reference to Exhibit 10.2 to Quality Distribution, Inc.’s Current Report on Form 8-K filed on November 3, 2010.
10.1	Amended and Restated Shareholders’ Agreement, dated as of February 10, 1998, among MTL Inc., Apollo Investment Fund III, L.P., Apollo Overseas Partners III, L.P., Apollo U.K. Fund III, L.P. and certain shareholders of MTL Inc. Incorporated herein by reference to Exhibit 4.13 to Quality Distribution, Inc.’s Annual Report on Form 10-K filed on March 29, 2002.
10.2	Amended and Restated Common and Preferred Stock Purchase and Shareholders’ Agreement, dated as of August 28, 1998, among BT Investment Partners, Inc., MTL Equity Investors, L.L.C., Apollo Investment Fund III, L.P., Apollo Overseas Partners III, L.P., Apollo U.K. Fund III, L.P. and MTL, Inc. Incorporated herein by reference to Exhibit 4.14 to Quality Distribution, Inc.’s Annual Report on Form 10-K filed on March 29, 2002.
10.3	Amendment No. 1, dated as of April 2, 2002, to the Amended and Restated Common and Preferred Stock Purchase and Shareholders’ Agreement, dated as of August 28, 1998, among BT Investment Partners, Inc., MTL Equity Investors, L.L.C., Apollo Investment Fund III, L.P., Apollo Overseas Partners III, L.P., Apollo U.K. Fund III, L.P. and MTL, Inc. Incorporated herein by reference to Exhibit 10.3 to Quality Distribution, LLC’s Registration Statement on Form S-4 filed on August 14, 2002 (Registration No. 333-98077).
10.4	Second Amended and Restated Registration Rights Agreement, dated as of August 28, 1998, among Apollo Investment Fund III, L.P., Apollo Overseas Partners III, L.P., Apollo U.K. Fund III, L.P., Quality Distribution, Inc. and certain shareholders of Quality Distribution, Inc. Incorporated herein by reference to Exhibit 10.4 to Quality Distribution, LLC’s Registration Statement on Form S-4 filed on August 14, 2002 (Registration No. 333-98077).

Exhibit No.	Description
10.5	Agreement, dated as of May 30, 2002, among Apollo Investment Fund III, L.P., Apollo Overseas Partners III, L.P., Apollo U.K. Fund III, L.P., Quality Distribution, Inc., and certain shareholders of Quality Distribution, Inc. Incorporated herein by reference to Exhibit 10.5 to Quality Distribution, LLC’s Registration Statement on Form S-4 filed on August 14, 2002 (Registration No. 333-98077).
10.6	Warrant Agreement (including form of warrant certificate), dated as of May 30, 2002, between Quality Distribution, Inc. and The Bank of New York. Incorporated herein by reference to Exhibit 10.32 to Quality Distribution, Inc.’s Amendment No. 2 to Registration Statement on Form S-1 filed on October 24, 2003 (Registration No. 333-108344).
10.7†	Employment Agreement dated November 3, 2004 between Quality Distribution, Inc. and Gary Enzor. Incorporated herein by reference to Exhibit 99.2 to Quality Distribution, Inc.’s Current Report on Form 8-K filed on November 9, 2004.
10.8†	Quality Distribution, Inc. 2003 Restricted Stock Incentive Plan. Incorporated herein by reference to Exhibit 10.1 to Quality Distribution, Inc.’s Current Report on Form 8-K filed on May 28, 2010.
10.9†	Quality Distribution, Inc. 2003 Restricted Stock Incentive Plan, as amended. Incorporated herein by reference to Exhibit 10.2 to Quality Distribution, Inc.’s Current Report on Form 8-K filed on May 16, 2005.
10.10†	Form of Non Qualified Stock Option Agreement. Incorporated herein by reference to Exhibit 10.5 to Quality Distribution, Inc.’s Current Report on Form 8-K filed on June 7, 2005.
10.11†	Form of Restricted Stock Award Agreement. Incorporated herein by reference to Exhibit 10.6 to Quality Distribution, Inc.’s Current Report on Form 8-K filed on June 7, 2005.
10.12	Modification to Terms of Employment for Gary R. Enzor dated June 14, 2007 between Quality Distribution, Inc. and Gary R. Enzor. Incorporated herein by reference to Exhibit 10.3 to Quality Distribution, Inc.’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2007.
10.13†	Employment Agreement, dated July 28, 2008, between Quality Distribution, Inc. and Stephen R. Attwood. Incorporated herein by reference to Exhibit 10.2 to Quality Distribution, Inc.’s Quarterly Report on Form 10-Q filed on November 7, 2008.
10.14†	Employment Agreement dated March 12, 2010 between Quality Distribution, Inc. and Randall Strutz. Incorporated herein by reference to Exhibit 10.23 to Quality Distribution, LLC’s Registration Statement on Amendment No. 3 to Form S-4 dated April 7, 2010 (Registration No. 333-163868).
10.15†	Employment Agreement, dated July 16, 2010 between Quality Distribution, Inc. and Joseph J. Troy. Incorporated herein by reference to Exhibit 10.1 to Quality Distribution, Inc.’s Current Report on Form 8-K filed on July 22, 2010.
10.16	Credit Agreement, dated as of August 19, 2011, among Quality Distribution, Inc., Quality Distribution, LLC, the other loan parties party thereto, Bank of America, N.A., as administrative agent and collateral agent, JPMorgan Chase Bank, N.A., as syndication agent, and the lenders party thereto. Incorporated herein by reference to Exhibit 10.1 to Quality Distribution, Inc.’s Current Report on Form 8-K filed on August 22, 2011.
10.17	Guarantee and Collateral Agreement, dated as of August 19, 2011, among Quality Distribution, Inc., Quality Distribution, LLC, the Company’s subsidiaries party thereto, and Bank of America, N.A., as administrative agent and collateral agent. Incorporated herein by reference to Exhibit 10.2 to Quality Distribution, Inc.’s Current Report on Form 8-K filed on August 22, 2011.
10.18	Quality Distribution, Inc. 2012 Equity Incentive Plan. Incorporated herein by reference to Exhibit 10.1 to Quality Distribution, Inc.’s Current Report on Form 8-K, filed May 31, 2012.
10.19	Form of Quality Distribution, Inc. 2012 Equity Incentive Plan Nonqualified Stock Option Award Agreement. Incorporated herein by reference to Exhibit 10.2 to Quality Distribution, Inc.’s Current Report on Form 8-K, filed May 31, 2012.
10.20	Form of Quality Distribution, Inc. 2012 Equity Incentive Plan Restricted Stock Award Agreement. Incorporated herein by reference to Exhibit 10.3 to Quality Distribution, Inc.’s Current Report on Form 8-K, filed May 31, 2012.
10.21	Form of Quality Distribution, Inc. 2012 Equity Incentive Plan Restricted Stock Unit Award Agreement. Incorporated herein by reference to Exhibit 10.4 to Quality Distribution, Inc.’s Current Report on Form 8-K, filed May 31, 2012.
10.22	Employment Agreement, effective July 9, 2012, between Quality Distribution, Inc. and John T. Wilson. Incorporated herein by reference to Exhibit 10.6 to Quality Distribution, Inc.’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2012.

Exhibit No.	Description
10.23	Agreement of Separation and General Release dated July 12, 2012, between Quality Distribution, Inc. and Jonathan C. Gold. Incorporated herein by reference to Exhibit 10.5 to Quality Distribution, Inc.’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2012.
10.24	Amendment to Credit Agreement, dated as of September 27, 2012 by and among Quality Distribution, Inc., Quality Distribution, LLC, the other loan parties party thereto, Bank of America, N.A., as administrative agent and collateral agent, and the lenders party thereto. Incorporated herein by reference to Exhibit 10.1 to Quality Distribution, Inc.’s Current Report on Form 8-K filed on October 1, 2012.
10.25†*	Modification to Terms of Employment for Gary R. Enzor dated December 30, 2012 between Quality Distribution, Inc. and Gary R. Enzor.
10.26†*	Modification to Terms of Employment for Joseph J. Troy dated December 30, 2012 between Quality Distribution, Inc. and Joseph J. Troy.
10.27†*	Modification to Terms of Employment for Stephen R. Attwood dated December 30, 2012 between Quality Distribution, Inc. and Stephen R. Attwood.
10.28†*	Modification to Terms of Employment for Randall T. Strutz dated December 30, 2012 between Quality Distribution, Inc. and Randall T. Strutz.
10.29†*	Modification to Terms of Employment for John T. Wilson dated December 30, 2012 between Quality Distribution, Inc. and John T. Wilson.
21*	Subsidiaries of the Registrant.
23*	Consent of PricewaterhouseCoopers LLP
24*	Powers of Attorney
31.1*	Certification of Chief Executive Officer pursuant to Rule 13(a) – 14(a).
31.2*	Certification of Chief Financial Officer pursuant to Rule 13(a) – 14(a).
32.1*	Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101	Interactive Data File

* Document is filed with this Form 10-K

† Indicates a compensatory plan or arrangement contemplated by Item 15 a (3) of Form 10-K.

EX-3.4

Exhibit 3.4

AMENDED & RESTATED BY-LAWS

OF

QUALITY DISTRIBUTION, INC.

(as amended December 19, 2012)

TABLE OF CONTENTS

			Page
ARTICLE I.	OFFICES			1
SECTION	A.	PRINCIPAL OFFICE		1
SECTION	B.	OTHER OFFICES		1
ARTICLE II.	SHAREHOLDERS			1
SECTION	A.	ANNUAL MEETING		1
SECTION	B.	SPECIAL MEETINGS		1
SECTION	C.	PLACE OF MEETING		1
SECTION	D.	NOTICE OF MEETING		1
SECTION	E.	NOTICE OF ADJOURNED MEETING		2
SECTION	F.	WAIVER OF CALL AND NOTICE OF MEETING		2
SECTION	G.	QUORUM		2
SECTION	H.	ADJOURNMENT; QUORUM FOR ADJOURNED MEETING		2
SECTION	I.	VOTING ON MATTERS OTHER THAN ELECTION OF DIRECTORS		3
SECTION	J.	VOTING FOR DIRECTORS		3
SECTION	K.	VOTING LISTS		3
SECTION	L.	VOTING OF SHARES		3
SECTION	M.	PROXIES		3
SECTION	N.	INFORMAL ACTION BY SHAREHOLDERS		3
SECTION	O.	PRESIDING OFFICER AND SECRETARY		4
SECTION	P.	INSPECTORS		4
ARTICLE III.	BOARD OF DIRECTORS			4
SECTION	A.	GENERAL POWERS		4
SECTION	B.	NUMBER, TENURE AND QUALIFICATIONS		4
SECTION	C.	ANNUAL MEETING		4
SECTION	D.	REGULAR MEETINGS		5
SECTION	E.	SPECIAL MEETINGS		5
SECTION	F.	NOTICE		5
SECTION	G.	QUORUM		5

-i-

TABLE OF CONTENTS

(continued)

			Page
SECTION	H.	ADJOURNMENT; QUORUM FOR ADJOURNED MEETING		5
SECTION	I.	MANNER OF ACTING		5
SECTION	J.	RESIGNATION		5
SECTION	K.	REMOVAL		6
SECTION	L.	VACANCIES		6
SECTION	M.	COMPENSATION		6
SECTION	N.	PRESUMPTION OF ASSENT		6
SECTION	O.	INFORMAL ACTION BY BOARD		6
SECTION	P.	MEETING BY TELEPHONE, ETC		6
ARTICLE IV.	OFFICERS			6
SECTION	A.	NUMBER		6
SECTION	B.	APPOINTMENT AND TERM OF OFFICE		7
SECTION	C.	RESIGNATION		7
SECTION	D.	REMOVAL		7
SECTION	E.	VACANCIES		7
SECTION	F.	DUTIES OF THE CHAIRMAN OF THE BOARD		7
SECTION	G.	DUTIES OF THE PRESIDENT		8
SECTION	H.	DUTIES OF VICE PRESIDENTS		8
SECTION	I.	DUTIES OF THE SECRETARY		8
SECTION	J.	DUTIES OF THE CHIEF FINANCIAL OFFICER		8
SECTION	K.	DUTIES OF ASSISTANT SECRETARIES		8
SECTION	L.	SALARIES		9
SECTION	M.	DELEGATION OF DUTIES		9
SECTION	N.	DISASTER EMERGENCY POWERS OF ACTING OFFICERS		9
ARTICLE V.	EXECUTIVE AND OTHER COMMITTEES			10
SECTION	A.	CREATION OF COMMITTEES		10
SECTION	B.	EXECUTIVE COMMITTEE		10
SECTION	C.	COMPENSATION COMMITTEE		10
SECTION	D.	AUDIT COMMITTEE		10

-ii-

TABLE OF CONTENTS

(continued)

			Page
SECTION	E.	OTHER COMMITTEES		11
SECTION	F.	REMOVAL OR DISSOLUTION		11
SECTION	G.	VACANCIES ON COMMITTEES		11
SECTION	H.	MEETINGS OF COMMITTEES		11
SECTION	I.	ABSENCE OF COMMITTEE MEMBERS		11
SECTION	J.	QUORUM OF COMMITTEES		11
SECTION	K.	MANNER OF ACTING OF COMMITTEES		11
SECTION	L.	MINUTES OF COMMITTEES		11
SECTION	M.	COMPENSATION		12
SECTION	N.	INFORMAL ACTION		12
ARTICLE VI.	INDEMNIFICATION OF DIRECTORS AND OFFICERS			12
SECTION	A.	GENERAL		12
SECTION	B.	ACTIONS BY OR IN THE RIGHT OF THE CORPORATION		12
SECTION	C.	OBLIGATION TO INDEMNIFY		13
SECTION	D.	DETERMINATION THAT INDEMNIFICATION IS PROPER		13
SECTION	E.	EVALUATION AND AUTHORIZATION		13
SECTION	F.	PREPAYMENT OF EXPENSES		14
SECTION	G.	NONEXCLUSIVITY AND LIMITATIONS		14
SECTION	H.	CONTINUATION OF INDEMNIFICATION RIGHT		14
SECTION	I.	INSURANCE		14
ARTICLE VII.	INTERESTED PARTIES			15
SECTION	A.	GENERAL		15
SECTION	B.	DETERMINATION OF QUORUM AND APPROVAL		15
SECTION	C.	APPROVAL BY SHAREHOLDERS		15
ARTICLE VIII.	CERTIFICATES OF STOCK			16
SECTION	A.	CERTIFICATES FOR SHARES		16
SECTION	B.	SIGNATURES OF PAST OFFICERS		16
SECTION	C.	TRANSFER AGENTS AND REGISTRARS		16
SECTION	D.	TRANSFER OF SHARES		16

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TABLE OF CONTENTS

(continued)

			Page
SECTION	E.	LOST CERTIFICATES		16
ARTICLE IX.	RECORD DATE			17
SECTION	A.	RECORD DATE FOR SHAREHOLDER ACTIONS		17
SECTION	B.	RECORD DATE FOR DIVIDEND AND OTHER DISTRIBUTIONS		17
ARTICLE X.	DIVIDENDS			17
ARTICLE XI.	FISCAL YEAR			18
ARTICLE XII.	SEAL			18
ARTICLE XIII.	STOCK IN OTHER CORPORATIONS			18
ARTICLE XIV.	AMENDMENTS			18
ARTICLE XV.	EMERGENCY BY-LAWS			18
SECTION	A.	SCOPE OF EMERGENCY BY-LAWS		18
SECTION	B.	CALL AND NOTICE OF MEETING		19
SECTION	C.	QUORUM AND VOTING		19
SECTION	D.	APPOINTMENT OF TEMPORARY DIRECTORS		19
SECTION	E.	MODIFICATION OF LINES OF SUCCESSION		19
SECTION	F.	CHANGE OF PRINCIPAL OFFICE		20
SECTION	G.	LIMITATION OF LIABILITY		20
SECTION	H.	REPEAL AND CHANGE		20

-iv-

AMENDED & RESTATED BY-LAWS

OF

QUALITY DISTRIBUTION, INC.

(as amended December 19, 2012)

ARTICLE I.

Offices

SECTION A. PRINCIPAL OFFICE. The principal office of the corporation shall be in Tampa, County of Hillsborough, and State of Florida.

SECTION B. OTHER OFFICES. The corporation may also have offices at such other places both within and without the State of Florida as the Board of Directors may from time to time determine or the business of the corporation may require.

ARTICLE II.

Shareholders

SECTION A. ANNUAL MEETING. A meeting of the shareholders shall be held annually, within six months of the end of each fiscal year of the corporation, for the purpose of electing directors and for the transaction of such other proper business as may come before the meeting, the exact date to be established by the Board of Directors from time to time.

SECTION B. SPECIAL MEETINGS. Special meetings of the shareholders may be called at any time, for any purpose or purposes, but only by (a) the Chief Executive Officer, (b) a majority of the directors in office, although less than a quorum, and (c) the holders of at least fifty percent (50%) of the total number of votes of the then outstanding shares of capital stock of the Corporation entitled to be cast on any issue proposed to be considered at such special meeting (provided such holders sign, date and deliver to the corporation’s Secretary one or more written demands for a special meeting, describing the purpose(s) for which it is to be held). Notice and call of any such special meeting shall state the purpose or purposes of the proposed meeting, and business transacted at any special meeting of the shareholders shall be limited to the purposes stated in the notice thereof.

SECTION C. PLACE OF MEETING. The Board of Directors may designate any place, either within or without the State of Florida, as the place of meeting for any annual or special meeting of the shareholders. A waiver of notice signed by all shareholders entitled to vote at a meeting may designate any place, either within or without the State of Florida, as the place for the holding of such meeting. If no designation is made, the place of meeting shall be the principal office of the corporation in the State of Florida.

SECTION D. NOTICE OF MEETING. Written notice stating the place, day and hour of an annual or special meeting and the purpose or purposes for which it is called shall be delivered not less than ten (10) nor more than sixty (60) days before the date of the meeting to

each shareholder entitled to vote at such meeting, except that no notice of a meeting need be given to any shareholder for which notice is not required to be given under applicable law. Notice may be delivered personally, via first-class United States mail, telegraph, teletype, facsimile or other electronic transmission, or by private mail carriers handling nationwide mail services, by or at the direction of the President, the Secretary, the Board of Directors, or the person(s) calling the meeting. If mailed via first-class United States mail, addressed to the shareholder at the shareholder’s address as it appears on the stock transfer books of the corporation, with postage thereon prepaid.

SECTION E. NOTICE OF ADJOURNED MEETING. If an annual or special shareholders’ meeting is adjourned to a different date, time, or place, notice need not be given of the new date, time or place if the new date, time or place is announced at the meeting before an adjournment is taken, and any business may be transacted at the adjourned meeting that might have been transacted on the original date of the meeting. If, however, a new record date for the adjourned meeting is or must be fixed under law, notice of the adjourned meeting must be given to persons who are shareholders as of the new record date of who are otherwise entitled to notice of such meeting.

SECTION F. WAIVER OF CALL AND NOTICE OF MEETING. Call and notice of any shareholders’ meeting may be waived by any shareholder before or after the date and time stated in the notice. Such waiver must be in writing signed by the shareholder and delivered to the corporation. Neither the business to be transacted at nor the purpose of any special or annual meeting need be specified in such waiver. A shareholder’s attendance at a meeting (a) waives such shareholder’s ability to object to lack of notice or defective notice of the meeting, unless the shareholder at the beginning of the meeting objects to holding the meeting or transacting business at the meeting; and (b) waives such shareholder’s ability to object to consideration of a particular matter at the meeting that is not within the purpose or purposes described in the meeting notice, unless the shareholder objects to considering the matter when it is presented.

SECTION G. QUORUM. Except as otherwise provided in these by-laws, the Articles of Incorporation, or by law a majority of the outstanding shares of the corporation entitled to vote, represented in person or by proxy, shall constitute a quorum at any meeting of the shareholders. Once a share is represented for any purpose at a meeting, it is deemed present for quorum purposes for the meeting and for any adjournment of that meeting, unless a new record date is or must be set for an adjourned meeting, and the withdrawal of shareholders after a quorum has been established at a meeting shall not effect the validity of any action taken at the meeting or any adjournment thereof.

SECTION H. ADJOURNMENT; QUORUM FOR ADJOURNED MEETING. If less than a majority of the outstanding shares is represented at a meeting, a majority of the shares so represented may adjourn the meeting without further notice. At such adjourned meeting at which a quorum shall be present or represented or deemed to be present or represented, any business may be transacted which might have been transacted at the meeting as originally noticed.

2

SECTION I. VOTING ON MATTERS OTHER THAN ELECTION OF DIRECTORS. At any meeting at which a quorum is present, action on any matter other than the election of directors shall be approved if the votes cast by the holders of shares represented at the meeting and entitled to vote on the subject matter favoring the action exceed the votes cast opposing the action, unless a greater number of affirmative votes or voting by classes is required by these by-laws, the Articles of Incorporation or by law.

SECTION J. VOTING FOR DIRECTORS. Directors shall be elected by a plurality of the votes cast by the shares entitled to vote at a meeting at which a quorum is present. Each shareholder who is entitled to vote at an election of directors has the right to vote the number of shares owned by him or her for as many persons as there are directors to be elected. Shareholders do not have a right to cumulate their votes for directors.

SECTION K. VOTING LISTS. At least ten (10) days prior to each meeting of shareholders, the officer or agent having charge of the stock transfer books for shares of the corporation shall make or cause to be made a complete list of the shareholders entitled to vote at such meeting, or any adjournment thereof, with the address and the number, class and series (if any) of shares held by each, which list shall be subject to inspection by any shareholder during normal business hours for at least ten (10) days prior to the meeting. The list also shall be available at the meeting and shall be subject to inspection by any shareholder at any time during the meeting or its adjournment. The shareholders list shall be prima facie evidence as to who are the shareholders entitled to examine such list or the transfer books or to vote at any meeting of the shareholders.

SECTION L. VOTING OF SHARES. Each shareholder entitled to vote shall be entitled at every meeting of the shareholders to one vote in person or by proxy on each matter for each share of voting stock held by such shareholder. Such right to vote shall be subject to the right of the Board of Directors for voting shareholders as here after provided.

SECTION M. PROXIES. At all meetings of shareholders, a shareholder may vote by proxy, executed in writing and delivered to the corporation in the original or transmitted via telegram, or as a photographic, photostatic or equivalent reproduction of a written proxy by the shareholder or by the shareholder’s duly authorized attorney-in-fact; but, no proxy shall be valid after eleven (11) months from its date, unless the proxy provides for a longer period. Each proxy shall be filed with the Secretary of the corporation before or at the time of the meeting. In the event that a proxy shall designate two or more persons to act as proxies, a majority of such persons present at the meeting, or, if only one is present, that one, shall have all of the powers conferred by the proxy upon all the persons so designated, unless the instrument shall provide otherwise.

SECTION N. INFORMAL ACTION BY SHAREHOLDERS. Unless otherwise provided in the Articles of Incorporation, any action required or permitted to be taken at a meeting of the shareholders may be taken without a meeting, without prior notice and without a vote if one or more consents in writing, setting forth the action so taken, shall be signed by shareholders holding shares representing not less than the minimum number of votes that would be necessary to authorize or take such action at a meeting at which all shares entitled to vote thereon were present and voted. No written consent shall be effective to take the corporate

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action referred to therein unless, within sixty (60) days of the date of the earliest dated consent delivered to the Secretary, written consent signed by the number of shareholders required to take action is delivered to the Secretary. If authorization of an action is obtained by one or more written consent but less than all shareholders so consent, then within ten (10) days after obtaining the authorization of such action by written consents, notice must be given to each shareholder who did not consent in writing and to each shareholder who is not entitled to vote on the action.

SECTION O. PRESIDING OFFICER AND SECRETARY. At every meeting of the shareholders, the President, or in his absence the Chairman of the Board, or in his absence an individual appointed by the Board of Directors, shall act as the presiding officer of the meeting. The Secretary, or in his absence an Assistant Secretary, shall act as the secretary for the meeting.

SECTION P. INSPECTORS. For each meeting of the shareholders, the Board of Directors or the President may appoint two inspectors to supervise the voting; and, if inspectors are so appointed, questions respecting the qualification of any vote, the validity of any proxy, and the acceptance or action of any vote shall be decided by such inspectors. Before acting at any meeting, the inspectors shall take an oath to execute their duties with strict impartiality and according to the best of their ability. If any inspector shall fail to be present or shall decline to act, the presiding officer shall appoint another inspector to act in his place. In case of a tie vote by the inspectors on any question, the presiding officer shall decide the issue.

ARTICLE III.

Board of Directors

SECTION A. GENERAL POWERS. The business and affairs of the corporation shall be conducted by its Board of Directors, which may exercise all such powers of the corporation and do all acts and things as are not by law, the Articles of Incorporation or these by-laws directed or required to be exercised or done only by the shareholders.

SECTION B. NUMBER, TENURE AND QUALIFICATIONS. The number of directors of the corporation shall be not fewer than one (1) nor more than thirteen (13) as may be designated from time to time by resolution adopted by a majority of the remaining directors, even if less than a quorum. Each director shall hold office until the next annual meeting of shareholders and until such director’s successor shall have been duly elected and shall have qualified, unless such director sooner dies, resigns or is removed by the shareholders at any annual or special meeting. It shall not be necessary for directors to be shareholders. All directors shall be natural persons who are 18 years of age or older.

SECTION C. ANNUAL MEETING. After each annual meeting of shareholders, the Board of Directors shall hold its annual meeting at the same place as and, immediately, following such annual meeting of shareholders for the purpose of the election of officers and the transaction of such other business as may come before the meeting; and, if a majority of the directors are present at such place and time, no prior notice of such meeting shall be required to be given to the directors. The place and time of such meeting may be varied by written consent of all the directors.

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SECTION D. REGULAR MEETINGS. Regular meetings of the Board of Directors may be held without notice at such time and at such place as shall be determined from time to time by the Board of Directors.

SECTION E. SPECIAL MEETINGS. Special meetings of the Board of Directors may be called by the Chairman of the Board or the President. The person or persons authorized to call special meetings of the Board of Directors may fix the place for holding any special meetings of the Board of Directors called by him or them, as the case may be. If no such designation is made, the place of meeting shall be the principal office of the corporation in the State of Florida.

SECTION F. NOTICE. Whenever notice of a meeting is required, written notice stating the place, day and hour of the meeting shall be delivered at least two (2) days prior thereto to each director, either personally, or by first-class United States mail, telegraph, teletype, facsimile or other form of electronic communication, or by private mail carriers handling nationwide mail services, to the director’s business address. If notice is given by first-class United States mail, such notice shall be deemed to be delivered five (5) days after deposited in the United States mail so addressed with postage thereon prepaid or when received, if such date is earlier. If notice is given by telegraph, teletype, facsimile transmission or other form of electronic communication or by private mail carriers handling nationwide mail services, such notice shall be deemed to be delivered when received by the director. Any director may waive notice of any meeting, either before, at or after such meeting. The attendance of a director at a meeting shall constitute a waiver of notice of such meeting, except where a director attends a meeting for the express purpose of objecting to the transaction of any business because the meeting is not lawfully called or convened and so states at the beginning of the meeting or promptly upon arrival at the meeting.

SECTION G. QUORUM. A majority of the total number of directors as determined from time to time to comprise the Board of Directors shall constitute a quorum.

SECTION H. ADJOURNMENT; QUORUM FOR ADJOURNED MEETING. If less than a majority of the total number of directors is present at a meeting, a majority of the directors so present may adjourn the meeting without further notice. At any adjourned meeting at which a quorum shall be present, any business may be transacted which might have been transacted at the meeting as originally noticed.

SECTION I. MANNER OF ACTING. If a quorum is present when a vote is taken, the act of a majority of the directors present at the meeting shall be the act of the Board of Directors.

SECTION J. RESIGNATION. Any director may resign at any time either orally at any meeting of the Board of Directors or by giving written notice to the corporation. A director who resigns may postpone the effectiveness of his resignation to a future date or upon the occurrence of a future event specified in a written tender of resignation. If no time of effectiveness is specified therein, the resignation shall be effective upon tender. A vacancy shall be deemed to exist at the time a resignation is tendered, and the Board of Directors may elect to appoint a successor to take office when the resignation by its terms becomes effective.

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SECTION K. REMOVAL. Any director may be removed by the shareholders with or without cause at any meeting of the shareholders called expressly for that purpose, but such removal shall be without prejudice to the contract rights, if any, of the person removed.

SECTION L. VACANCIES. Any vacancy occurring in the Board of Directors, including any vacancy created by reason of an increase in the number of directors, may be filled by the affirmative vote of a majority of the remaining directors, even though less than a quorum of the Board of Directors, unless otherwise provided in the Articles of Incorporation. A director elected to fill a vacancy shall hold office for the balance of the terms, except that, in the case of an increase in the number of directors, such vacancy shall be filled only until the next annual meeting of shareholders, at which time the vacancy shall be filled by vote of the shareholders.

SECTION M. COMPENSATION. By resolution of the Board of Directors, the directors may be paid their expenses, if any, of attendance at each meeting of the Board of Directors, and each committee thereof, and may be paid a fixed sum for attendance at each meeting of the Board of Directors and each committee thereof, or a stated salary as directors. No payment shall preclude any director from serving the corporation in any other capacity and receiving compensation therefor.

SECTION N. PRESUMPTION OF ASSENT. A director of the corporation who is present at a meeting of the Board of Directors at which action on any corporate matter is taken shall be presumed to have assented to the action taken unless such director objects at the beginning of the meeting (or promptly upon his arrival) to the holding of the meeting or the transacting of specified business at the meeting or such director votes against such action or abstains from voting in respect of such matter.

SECTION O. INFORMAL ACTION BY BOARD. Any action required or permitted to be taken by any provisions of law, the Articles of Incorporation or these by-laws at any meeting of the Board of Directors or of any committee thereof may be taken without a meeting if each and every member of the Board or of such committee, as the case may be, signs a written consent thereto and such written consent is filed in the minutes of the proceedings of the Board or such committee, as the case may be. Action taken under this section is effective when the last director signs the consent, unless the consent specifies a different effective date, in which case it is effective on the date so specified.

SECTION P. MEETING BY TELEPHONE, ETC. Directors or the members of any committee shall be deemed present at a meeting of the Board of Directors or of any such committee, as the case may be, if the meeting is conducted using a conference telephone or similar communications equipment by means of which all persons participating in the meeting can hear each other at the same time.

ARTICLE IV.

Officers

SECTION A. NUMBER. The officers of the corporation shall consist of a Chief Executive Officer, President, a Secretary and a Chief Financial Officer, each of whom shall be appointed by the Board of Directors. The Board of Directors may also appoint a Chairman of the Board, who may also serve as an officer of the corporation, one or more Vice Presidents, one or more Assistant Secretaries and such other officers as the Board of Directors shall deem appropriate. The same individual may simultaneously hold more than one office in the corporation.

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SECTION B. APPOINTMENT AND TERM OF OFFICE. The officers of the corporation shall be appointed annually by the Board of Directors at its annual meeting. If the appointment of officers shall not be made at such meeting, such appointment shall be made as soon thereafter as is convenient. A duly appointed officer may appoint one or more officers or assistant officers if so authorized by the Board of Directors. Each officer shall hold office until such officer’s successor shall have been duly appointed and qualified, unless such officer sooner dies, resigns or is removed by the Board. In its discretion, the Board of Directors may leave unfilled for any period of time it may fix, any office except the office of President and Secretary. The appointment of an officer does not itself create contract rights.

SECTION C. RESIGNATION. An officer may resign at any time by delivering notice to the corporation. A resignation shall be effective when the notice is delivered unless the notice specifies a later effective date. An officer’s resignation shall not affect the corporation’s contract rights, if any, with the officer.

SECTION D. REMOVAL. The Board of Directors may remove any officer at any time with or without cause. An officer’s removal shall not affect the officer’s contract rights, if any, with the corporation.

SECTION E. VACANCIES. A vacancy in any office because of death, resignation, removal, disqualification or otherwise may be filled by the Board of Directors for the unexpired portion of the term.

SECTION F. DUTIES OF THE CHAIRMAN OF THE BOARD. The chairman of the Board shall preside at all meetings of the Board of Directors and, in the absence of the President, shall preside at meetings of the shareholders. The Chairman of the Board may be the chief executive officer of the Corporation and may be appointed to such other office as the Board of Directors shall determine, and shall perform such other duties as may be prescribed from time to time by the Board of Directors.

SECTION G. DUTIES OF THE CHIEF EXECUTIVE OFFICER. The Chief Executive Officer, unless otherwise - designated by the Board of Directors, shall be the chief executive officer of the corporation and shall have the responsibility for the management of the business and affairs of the corporation. The Chief Executive Officer shall preside at all meetings of the shareholders and, in the absence of the Chairman of the Board, shall preside at meetings of the Board of Directors. The Chief Executive Officer may sign, execute and deliver in the name of the corporation powers of attorney, contracts, bonds and other agreements and obligations. In addition to the foregoing specific powers and duties, the Chief Executive Officer shall exercise such duties as customarily pertain to such office of a corporation and shall exercise such further powers and perform such other duties as may from time to time be conferred or assigned by the Board of Directors.

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SECTION H. DUTIES OF THE PRESIDENT. In the absence or disability of the Chief Executive Officer, the President shall perform all the duties of the Chief Executive Officer, and when so acting shall have all of the powers of, and be subject to all the restrictions upon, the Chief Executive Officer. The President shall have such other powers and perform such other duties as from time to time may be prescribed by the Board of Directors or the Chief Executive Officer or the Chairman of the Board.

SECTION I. DUTIES OF VICE PRESIDENTS. Each Vice President shall have such powers and perform such duties as the Board of Directors or the President may prescribe and shall perform such other duties as may be prescribed by these by-laws. A Vice President may sign and execute contracts and other obligations pertaining to the regular course of his or her duties. In the absence or inability to act of the President, unless the Board of Directors shall otherwise provide, the Vice President who has served in such capacity for the longest time and who shall be present and able to act, shall perform all duties and may exercise any of the powers of the President.

SECTION J. DUTIES OF THE SECRETARY. The Secretary shall give, or cause to be given, notice of all meetings of the shareholders and of the Board of Directors, and all other notices required by law or by these by-laws. The Secretary shall keep a record of the minutes of the proceedings of meetings of shareholders and Board of Directors. The Secretary shall have custody of all books, records and papers of the corporation, except such as shall be in the charge of the Chief Financial Officer, or of some other person authorized to have custody and possession of such by a resolution of the Board of Directors. The Secretary may sign or execute contracts with the President or a Vice President thereunto authorized in the name of the corporation and affix the seal of the corporation thereto. The Secretary shall perform such other duties as may be prescribed by the President or the Board of Directors and shall perform such other duties as may be prescribed by these by-laws.

SECTION K. DUTIES OF THE CHIEF FINANCIAL OFFICER. The Chief Financial Officer, unless otherwise designated by the Board of Directors, shall be the chief financial officer of the corporation. The Chief Financial Officer shall have the general custody of all the funds and securities of the corporation and shall be responsible for the general supervision of the collection and disbursement of funds of the corporation. The Chief Financial Officer shall endorse on behalf of the corporation for collection checks, notes and other obligations, and shall deposit the same to the credit of the corporation in banks or other depositories. The Chief Financial Officer shall enter or cause to be entered regularly in the books of the corporation full and accurate account of all moneys received and paid on account of the corporation and shall render to the Board of Directors, whenever required, an account of all transactions and information pertaining to the financial condition of the corporation. The Chief Financial Officer shall have such other powers and perform such other duties as are assigned by the President or the Board of Directors and shall perform such other duties as may be prescribed by these by-laws.

SECTION L. DUTIES OF ASSISTANT SECRETARIES. The Board of Directors may appoint one or more assistant secretaries to perform such duties and to have such powers as shall be assigned to them by the Secretary, the President or the Board of Directors.

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SECTION M. SALARIES. The salaries of the officers shall be fixed from time to time by the Board of Directors, based on the recommendations of the Compensation Committee, and no officer shall be prevented from receiving a salary by reason of the fact that the officer is also a director of the corporation.

SECTION N. DELEGATION OF DUTIES. In the absence or disability of any officer of the corporation, or for any other reason deemed sufficient by the Board of Directors, the Board of Directors may delegate the powers or duties of such officer to any other officer or to any other director for such period of time as the Board of Directors shall determine, for the time being.

SECTION O. DISASTER EMERGENCY POWERS OF ACTING OFFICERS. Unless otherwise expressly prescribed by action of the Board of Directors taken pursuant to Article XV of these by-laws, if, as a result of some catastrophic event, a quorum of the corporation’s directors cannot readily be assembled and the President is unable to perform the duties of the office of President and/or other officers are unable to perform their duties, (a) the powers and duties of President shall be held and performed by that officer of the corporation highest on the list of successors (adopted by the Board of Directors for such purpose) who shall be available and capable of holding and performing such powers and duties; and, absent any such prior designation, by that Vice President who shall be available and capable of holding and performing such powers and duties who has served in such capacity for the longest time; or, if no Vice President is available and capable of holding and performing such powers and duties, then by the Secretary; or, if the Secretary is likewise unavailable, by the Chief Financial Officer; (b) the officer so selected to hold and perform such powers and duties shall serve as Acting President until the President again becomes capable of holding and performing the powers and duties of President, or until the Board of Directors shall have elected a new President or designated another individual as Acting President; (c) such officer (or the President, if such person is still serving) shall have the power, in addition to all other powers granted to the President by law, the Articles of Incorporation, these by-laws and the Board of Directors, to appoint acting officers to fill vacancies that may have occurred, either permanently or temporarily, by reason of such disaster or emergency, each of such acting appointees to serve in such capacity until the officer for whom the acting appointee is acting is capable of performing the duties of such office, or until the Board of Directors shall have designated another individual to perform such duties or shall have elected or appointed another person to fill such office; (d) each acting officer so appointed shall be entitled to exercise all powers invested by law, the Articles of Incorporation, these by-laws and the Board of Directors in the office in which such person is serving; and (e) anyone transacting business with the corporation may rely upon a certificate signed by any two officers of the corporation that a specified individual has succeeded to the powers and duties of the President or such other specified office. Any person, firm, corporation or other entity to which such certificate has been delivered by such officers may continue to rely upon it until notified of a change by means of a writing signed by two officers of this corporation.

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ARTICLE V.

Executive and Other Committees

SECTION A. CREATION OF COMMITTEES. The Board of Directors may designate an Executive Committee and one or more other committees, each to consist of two (2) or more of the directors of the corporation.

SECTION B. EXECUTIVE COMMITTEE. The Executive Committee, if there shall be one, shall consult with and advise the officers of the corporation in the management of its business, and shall have, and may exercise, except to the extent otherwise provided in the resolution of the Board of Directors creating such Executive committee, such powers of the Board of Directors as can be lawfully delegated by the Board of Directors.

SECTION C. COMPENSATION COMMITTEE. The Board of Directors may appoint a Compensation Committee consisting of three (3) or more directors, at least a majority of whom shall be neither officers nor otherwise employed by the corporation. The Board of Directors shall designate one director as Chairman of the Compensation Committee. The Compensation Committee shall have the power to fix from time to time the compensation of all principal officers of the corporation (including the Chairman of the Board) subject to the approval of the Board of Directors, and shall otherwise exercise such powers as may be specifically delegated to it by the Board of Directors and act upon such matters as may be referred to it from time to time for study and recommendation by the President or the Board of Directors.

SECTION D. AUDIT COMMITTEE. The Board of Directors may appoint from among its members an Audit Committee consisting of not less than three (3) members, and shall designate one of such members as the Chairman of the Audit Committee. The responsibilities of the Audit Committee shall be as follows:

(1) To recommend to the Board of Directors for approval by the shareholders a firm of independent public accountants to audit the accounts of the corporation and its subsidiaries;

(2) To meet jointly and/or separately with the chief financial officer of the corporation and the independent public accountants before commencement of the audit to (a) discuss the valuation of the adequacy and effectiveness of the accounting procedures and internal controls of the corporation and its subsidiaries, (b) approve the overall scope of the audit to be made and the fees to be charged, (c) inquire and discuss recent Financial Accounting Standards Board, Securities and Exchange Commission or other regulatory agency pronouncements, if any, which might affect the corporation’s financial statements;

(3) To meet jointly and/or separately with the chief financial officer and the independent public accountants at the conclusion of the audit to (a) review the audited financial statements of the corporation, (b) discuss the results of the audit, (c) discuss any significant recommendations by the independent public accountants for improvement of accounting systems and controls of the corporation, and (d) discuss the quality and depth of staffing in the accounting and financial departments of the corporation;

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(4) To meet and confer with such officers and employees of the corporation as the Audit Committee shall deem appropriate in connection with carrying out the foregoing responsibilities; and

(5) To exercise such other powers as may be specifically delegated to it by the Board of Directors.

SECTION E. OTHER COMMITTEES. Such other committees, to the extent provided in the resolution or resolutions creating them, shall have such functions and may exercise such powers of the Board of Directors as can be lawfully delegated.

SECTION F. REMOVAL OR DISSOLUTION. Any Committee of the Board of Directors may be dissolved by the Board at any meeting; and any member of such committee may be removed by the Board of Directors with or without cause. Such removal shall be without prejudice to the contract rights, if any, of the person so removed.

SECTION G. VACANCIES ON COMMITTEES. Vacancies on any committee of the Board of Directors shall be filled by the Board of Directors at any regular or special meeting.

SECTION H. MEETINGS OF COMMITTEES. Regular meetings of any committee of the Board of Directors may be held without notice at such time and at such place as shall from time to time be determined by such committee, and special meetings of any such committee may be called by any member thereof upon two (2) days notice of the date, time and place of the meeting given to each of the other members of such committee, or on such shorter notice as may be agreed to in writing by each of the other members of such committee, given either personally or in the manner provided in Section F of Article III of these by-laws (pertaining to notice for directors’ meetings).

SECTION I. ABSENCE OF COMMITTEE MEMBERS. The Board of Directors may designate one or more directors as alternate members of any committee of the Board of Directors, who may replace at any meeting of such committee, any member not able to attend.

SECTION J. QUORUM OF COMMITTEES. At all meetings of committees of the Board of Directors, a majority of the total number of members of the committee as determined from time to time shall constitute a quorum for the transaction of business.

SECTION K. MANNER OF ACTING OF COMMITTEES. If a quorum is present when a vote is taken, the act of a majority of the members of any committee of the Board of Directors present at the meeting shall be the act of such committee.

SECTION L. MINUTES OF COMMITTEES. Each committee of the Board of Directors shall keep regular minutes of its proceedings and report the same to the Secretary, and, when required, to the Board of Directors when required.

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SECTION M. COMPENSATION. Members of any Committee of the Board of Directors may be paid compensation in accordance with the provisions of Section M of Article III of these by-laws (pertaining to compensation of directors).

SECTION N. INFORMAL ACTION. Any committee of the Board of Directors may take such informal action and hold such informal meetings as allowed by the provisions of Sections O and P of Article III of these by-laws.

ARTICLE VI.

Indemnification of Directors and Officers

SECTION A. GENERAL. To the fullest extent permitted by the FBCA, including any amendments thereto (but in the case of any such amendment, only to the extent such amendment permits or requires the Corporation to provide broader indemnification rights than prior to such amendment, the corporation shall indemnify any person who is or was a party, or is threatened to be made a party, to any threatened, pending or completed action, suit or other type of proceeding (other than an action by or in the right of the corporation), whether civil, criminal, administrative, investigative or otherwise, and whether formal or informal, by reason of the fact that such person is or was a director or officer of the corporation or is or was serving at the request of the corporation as a director or officer of another corporation, partnership, joint venture, trust or other enterprise, against judgments, amounts paid in settlement, penalties, fines (including an excise tax assessed with respect to any employee benefit plan) and expenses (including counsel fees, including those for appeal) actually and reasonably incurred in connection with any such action, suit or other proceeding, including any appeal thereof, if such person acted in good faith and in a manner such person reasonably believed to be in, or not opposed to, the best interests of the corporation and, with respect to any criminal action or proceeding, had no reasonable cause to believe such person’s conduct was unlawful. The termination of any such action, suit or other proceeding by judgment, order, settlement or conviction, or upon a plea of nolo contendere or its equivalent, shall not, of itself, create a presumption that the person did not act in good faith and in a manner that such person reasonably believed to be in, or not opposed to, the best interests of the corporation or, with respect to any criminal action or proceeding, had reasonable cause to believe that such person’s conduct was unlawful.

SECTION B. ACTIONS BY OR IN THE RIGHT OF THE CORPORATION. To the fullest extent permitted by the FBCA, including any amendments thereto (but in the case of any such amendment, only to the extent such amendment permits or requires the Corporation to provide broader indemnification rights than prior to such amendment, the corporation shall indemnify any person who is or was a party, or is threatened to be made a party, to any threatened, pending or completed action, suit or other type of proceeding (as further described in Section A of this Article VI) by or in the right of the corporation to procure a judgment in its favor by reason of the fact that such person is or was a director or officer of the corporation or is or was serving at the request of the corporation as a director or officer of another corporation, partnership, joint venture, trust or other enterprise, against expenses (including counsel fees) and amounts paid in settlement not exceeding, in the judgment of the Board of Directors, the estimated expenses of litigating the action, suit or other proceeding to conclusion, actually and

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reasonably incurred in connection with the defense or settlement of such action, suit or other proceeding including any appeal thereof. Such indemnification shall be authorized if such person acted in good faith and in a manner such person reasonably believed to be in, or not opposed to, the best interests of the corporation, except that no indemnification shall be made under this Section B in respect of any claim, issue or matter as to which such person shall have been adjudged to be liable unless, and only to the extent that, the court in which such action, suit or other proceeding was brought, or any other court of competent jurisdiction, shall determine upon application that, despite the adjudication of liability but in view of all the circumstances of the case, such person is fairly and reasonably entitled to indemnification for such expenses that such court shall deem proper.

SECTION C. OBLIGATION TO INDEMNIFY. To the extent that a director or officer has been successful on the merits or otherwise in defense of any action, suit or other proceeding referred to in Section A or Section B of this Article VI, or in the defense of any claim, issue or matter therein, such person shall, upon application, be indemnified against expenses (including counsel fees) actually and reasonably incurred by such person in connection therewith.

SECTION D. DETERMINATION THAT INDEMNIFICATION IS PROPER. Indemnification pursuant to Section A or Section B of this Article VI, unless made under the provisions of Section C of this Article VI or unless otherwise made pursuant to a determination by a court, shall be made by the corporation only as authorized in the specific case upon a determination that the indemnification is proper in the circumstances because the indemnified person has met the applicable standard of conduct set forth in Section A or Section B of this Article VI. Such determination shall be made either (1) by the Board of Directors by a majority vote of a quorum consisting of directors who were not parties to the action, suit or other proceeding to which the indemnification relates; (2) if such a quorum is not obtainable or, even if obtainable, by majority vote of a committee duly designated by the Board of Directors (the designation being one in which directors who are parties may participate) consisting solely of two or more directors not at the time parties to such action, suit or other proceeding; (3) by independent legal counsel (i) selected by the Board of Directors in accordance with the requirements of subsection (1) or by a committee designated under subsection (2) or (ii) if a quorum of the directors cannot be obtained and a committee cannot be designated, selected by majority vote of the full Board of Directors (the vote being one in which directors who are parties may participate); or (4) by the shareholders by a majority vote of a quorum consisting of shareholders who were not parties to such action, suit or other proceeding or, if no such quorum is obtainable, by a majority vote of shareholders who were not parties to such action, suit or other proceeding.

SECTION E. EVALUATION AND AUTHORIZATION. Evaluation of the reasonableness of expenses and authorization of indemnification shall be made in the same manner as is prescribed in Section D of this Article VI for the determination that indemnification is permissible; provided, however, that if the determination as to whether indemnification is permissible is made by independent legal counsel, the persons who selected such independent legal counsel shall be responsible for evaluating the reasonableness of expenses and may authorize indemnification.

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SECTION F. PREPAYMENT OF EXPENSES. Expenses (including attorneys’ fees, paralegals’ fees and court costs) incurred by a director or officer in defending a civil or criminal action, suit or other proceeding referred to in Section A or Section B of this Article VI shall be paid by the corporation in advance of the final disposition thereof upon receipt of an undertaking by or on behalf of such director or officer to repay such amount if such person is ultimately found not to be entitled to indemnification by the corporation pursuant to this Article VI.

SECTION G. NONEXCLUSIVITY AND LIMITATIONS. The indemnification and advancement of expenses provided pursuant to this Article VI shall not be deemed exclusive of any other rights to which a person may be entitled under any law, by-law, agreement, vote of shareholders or disinterested directors, or otherwise, both as to action in such person’s official capacity and as to action in any other capacity while holding office with the corporation. The Board of Directors may, at any time, approve indemnification of or advancement of expenses to any other person that the corporation has the power by law to indemnify, including, without limitation, employees and agents of the corporation. in all cases not specifically provided for in this Article VI, indemnification or advancement of expenses shall not be made to the extent that such indemnification or advancement of expenses is expressly prohibited by law.

SECTION H. CONTINUATION OF INDEMNIFICATION RIGHT. Unless expressly otherwise provided when authorized or ratified by this corporation, indemnification and advancement of expenses as provided for in this Article VI shall continue as to a person who has ceased to be a director, officer, employee or agent and shall inure to the benefit of the heirs, executors, and administrators of such person, unless otherwise provided when authorized or ratified. For purposes of this Article VI, the term “corporation” includes, in addition to the resulting corporation, any constituent corporation (including any constituent of a constituent) absorbed in a consolidation or merger, so that any person who is or was a director or officer of a constituent corporation, or is or was serving at the request of a constituent corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, is in the same position under this Article VI with respect to the resulting or surviving corporation as such person would have been with respect to such constituent corporation if its separate existence had continued.

SECTION I. INSURANCE. The corporation may purchase and maintain insurance on behalf of any person who is or was a director, officer, employee or agent of the corporation, or who is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise against any liability asserted against such person and incurred by such person in any such capacity or arising out of such person’s status as such, whether or not the corporation would have the power to indemnify such person against the liability under the provision.

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ARTICLE VII.

Interested Parties

SECTION A. GENERAL. No contract or other transaction between the corporation and any one or more of its directors or any other corporation, firm, association or entity in which one or more of its directors are directors or officers or are financially interested shall be either void or voidable because of such relationship or interest, because such director or directors were present at the meeting of the Board of Directors or of a committee thereof which authorizes, approves or ratifies such contract or transaction or because such director’s or directors’ votes are counted for such purpose if: (a) the fact of such relationship or interest is disclosed or known to the Board of Directors or committee which authorizes, approves or ratifies the contract or transaction by a vote or consent sufficient for the purpose without counting the votes or consents of such interested directors; (b) the fact of such relationship or interest is disclosed or known to the shareholders entitled to vote on the matter, and they authorize, approve or ratify such contract or transaction by vote or written consent; or (c) the contract or transaction is fair and reasonable as to the corporation at the time it is authorized by the Board of Directors, a committee thereof or the shareholders.

SECTION B. DETERMINATION OF QUORUM AND APPROVAL. For purposes of Section A(a) only of this Article VII, a conflict of interest transaction is authorized, approved or ratified if it receives the affirmative vote of a majority of the directors of the Board of Directors, or on the committee, who have no relationship or interest in the transaction described in Section A(a), but a transaction may not be authorized, approved or ratified under this Section B by a single director. If a majority of the directors who have no such relationship or interest in the transaction vote to authorize, approve or ratify the transaction, a quorum is present for the purpose of taking action under this Section B. The presence of, or a vote cast by, a director with such relationship or interest in the transaction does not affect the validity of any action taken under Section A(a) if the transaction is otherwise authorized, approved or ratified as provided in that subsection, but such presence or vote of those directors may be counted for purposes of determining whether the transaction is approved under other sections of the corporation’s by-laws and applicable law.

SECTION C. APPROVAL BY SHAREHOLDERS. For purposes of Section A(b) of this Article VII, a conflict of interest transaction shall be authorized, approved or ratified if it receives the vote of a majority of the shares entitled to be counted under this Section C. Shares owned by or voted under the control of a director who has a relationship or interest in the transaction described in Section A of this Article VII may not be counted in a vote of shareholders to determine whether to authorize, approve or ratify a conflict of interest transaction under Section A(b) of this Article VII. The vote of the shares owned by or voted under the control of a director who has a relationship or interest in the transaction described in Section A of this Article VII, shall be counted, however, in determining whether the transaction is approved under other sections of the corporation’s by-laws and applicable law. A majority of those shares that would be entitled, if present, to be counted in a vote on the transaction under this Section C shall constitute a quorum for the purpose of taking action under this Section C.

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ARTICLE VIII.

Certificates of Stock

SECTION A. CERTIFICATES FOR SHARES. Shares may but need not be represented by certificates. The rights and obligations of shareholders shall be identical whether or not their shares are represented by certificates. If shares are represented by certificates, each certificate shall be in such form as the Board of Directors may from time to time prescribe, signed (either manually or in facsimile) by the President, a Vice President, the Secretary, or the Chief Financial Officer and sealed with the seal of the corporation or its facsimile), exhibiting the holder’s name, certifying the number of shares owned and stating such other matters as may be required by law. The certificates shall be numbered and entered on the books of the corporation as they are issued. If shares are not represented by certificates, then, within a reasonable time after issue or transfer of shares without certificates, the corporation shall send the shareholder a written statement in such form as the Board of Directors may from time to time prescribe, certifying as to the number of shares owned by the shareholder and as to such other information as would have been required to be on certificates for such shares.

SECTION B. SIGNATURES OF PAST OFFICERS. If the person who signed (either manually or in facsimile) a share certificate no longer holds office when the certificate is issued, the certificate shall nevertheless be valid.

SECTION C. TRANSFER AGENTS AND REGISTRARS. The Board of Directors may, in its discretion, appoint responsible banks or trust companies in such city or cities as the Board may deem advisable from time to time to act as transfer agents and registrars of the stock of the corporation; and, when such appointments shall have been made, no stock certificate shall be valid until countersigned by one of such transfer agents and registered by one of such registrars.

SECTION D. TRANSFER OF SHARES. Transfers of shares of the corporation shall be made upon its books by the holder of the shares in person or by the holder’s lawfully constituted representative, upon surrender of the certificate of stock for cancellation if such shares are represented by a certificate of stock or by delivery to the corporation of such evidence of transfer as may be required by the corporation if such shares are not represented by certificates. The person in whose name shares stand on the books of the corporation shall be deemed by the corporation to be the owner thereof for all purposes and the corporation shall not be bound to recognize any equitable or other claim to or interest in such share on the part of any other person, whether or not it shall have express or other notice thereof, save as expressly provided by the laws of the State of Florida.

SECTION E. LOST CERTIFICATES. The Board of Directors may direct a new certificate or certificates to be issued in place of any certificate or certificates theretofore issued by the corporation and alleged to have been lost or destroyed, upon the making of an affidavit of that fact by the person claiming the certificate of stock to be lost or destroyed. When authorizing such issue of a new certificate or certificates, the Board of Directors may, in its discretion and as a condition precedent to the issuance thereof, require the owner of such lost or destroyed certificate or certificates, or the owner’s legal representative, to advertise the same in such manner as it shall require and/or to give the corporation a bond in such sum as it may direct as indemnity against any claim that may be made against the corporation with respect to the certificate alleged to have been lost or destroyed.

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ARTICLE IX.

Record Date

SECTION A. RECORD DATE FOR SHAREHOLDER ACTIONS. The Board of Directors is authorized from time to time to fix in advance a date, not more than sixty (60) nor less than ten (10) days before the date of any meeting of the shareholders, a date in connection with the obtaining of the consent of shareholders for any purpose, or the date of any other action requiring a determination of the shareholders, as the record date for the determination of the shareholders entitled to notice of and to vote at any such meeting and any adjournment thereof (unless a new record date must be established by law for such adjourned meeting), or of the shareholders entitled to give such consent or take such action, as the case may be. In no event may a record date so fixed by the Board of Directors precede the date on which the resolution establishing such record date is adopted by the Board of Directors. Only those shareholders listed as shareholders of record as of the close of business on the date so fixed as the record date shall be entitled to notice of and to vote at such meeting and any adjournment thereof, or to exercise such rights or to give such consent, as the case may be, notwithstanding any transfer of any stock on the books of the corporation after any such record date fixed as aforesaid. If the Board of Directors fails to establish a record date as provided herein, the record date shall be deemed to be the date ten (10) days prior to the date of the shareholders’ meeting.

SECTION B. RECORD DATE FOR DIVIDEND AND OTHER DISTRIBUTIONS. The Board of Directors is authorized from time to time to fix in advance a date, not more than sixty (60) nor less than ten (10) days before the date of any dividend or other distribution, as the record date for the determination of the shareholders entitled to receive such dividend or other distribution. In no event may a record date so fixed by the Board of Directors precede the date on which the resolution establishing such record date is adopted by the Board of Directors. Only those shareholders listed as shareholders of record as of the close of business on the date so fixed as the record date shall be entitled to receive the dividend or other distribution, as the case may be, notwithstanding any transfer of any stock on the books of the corporation after any such record date fixed as aforesaid. If the Board of Directors fails to establish a record date as provided herein, the record date shall be deemed to be the date ten (10) days prior to the date of distribution of the dividend or other distribution.

ARTICLE X.

Dividends

The Board of Directors may from time to time declare, and the corporation may pay, dividends on its outstanding shares of capital stock in the manner and upon the terms and conditions provided by the Articles of Incorporation and by law. Subject to the provisions of the Articles of Incorporation and to law, dividends may be paid in cash or property, including shares of stock or other securities of the corporation.

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ARTICLE XI.

Fiscal Year

The fiscal year of the corporation shall begin on January 1 and end on December 31 of each year, unless the Board of Directors specifically establishes a different fiscal year.

ARTICLE XII.

Seal

The corporate seal shall have the name of the corporation, the word “SEAL” and the year of incorporation inscribed thereon, and may be a facsimile, engraved, printed or impression seal. An impression of said seal appears on the margin hereof.

ARTICLE XIII.

Stock in Other Corporations

Shares of stock in other corporations held by the corporation shall be voted by such officer or officers or other agent of the corporation as the Board of Directors shall from time to time designate for the purpose or by a proxy thereunto duly authorized by said Board.

ARTICLE XIV.

Amendments

These by-laws may be altered, amended or repealed and new by-laws may be adopted by the Board of Directors; provided that any by-law or amendment thereto as adopted by the Board of Directors may be altered, amended or repealed by vote of the shareholders entitled to vote thereon, or a new by-law in lieu thereof may be adopted by the shareholders, and the shareholders may prescribe in any by-law made by them that such by-law shall not be altered, amended or repealed by the Board of Directors.

ARTICLE XV.

Emergency By-laws

SECTION A. SCOPE OF EMERGENCY BY-LAWS. The emergency by-laws provided in this Article XV shall be operative during any emergency, notwithstanding any different provision set forth in the preceding articles hereof or the Articles of Incorporation. For purposes of the emergency by-law provisions of this Article XV, an emergency shall exist if a quorum of the corporation’s directors cannot readily be assembled because of some catastrophic event. To the extent not inconsistent with the provisions of this Article XV, the provisions provided elsewhere herein shall remain in effect during such emergency and upon termination of such emergency, these emergency by-laws shall cease to be operative.

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SECTION B. CALL AND NOTICE OF MEETING. During any emergency, a meeting of the Board of Directors may be called by any officer or director of the corporation. Notice of the date, time and place of the meeting shall be given by the person calling the meeting to such of the directors as it may be feasible to reach by any available means of communication. Such notice shall be given at such time in advance of the meeting as circumstances permit in the judgment of the person calling the meeting.

SECTION C. QUORUM AND VOTING. At any such meeting of the Board of Directors, a quorum shall consist of any one or more directors, and the act of the majority of the directors present at such meeting shall be the act of the corporation.

SECTION D. APPOINTMENT OF TEMPORARY DIRECTORS. The director or directors who are able to be assembled at a meeting of directors during an emergency may assemble for the purpose of appointing, if such directors deem it necessary, one or more temporary directors (the “Temporary Directors”) to serve as directors of the corporation during the term of any emergency.

1. The director or directors who are able to be assembled at a meeting of directors during an emergency may assemble for the purpose of appointing, if such directors deem it necessary, one or more temporary directors (the “Temporary Directors”) to serve as directors of the corporation during the term of any emergency.

2. If no directors are able to attend a meeting of directors during an emergency, then such shareholders as may reasonably be assembled shall have the right, by majority vote of those assembled, to appoint Temporary Directors to serve on the Board of Directors until the termination of the emergency.

3. If no shareholders can reasonably be assembled in order to conduct a vote for Temporary Directors, then the President or his successor, as determined pursuant to Section N of Article IV herein shall be deemed a Temporary Director of the corporation, and such President or his successor, as the case may be, shall have the right to appoint additional Temporary Directors to serve with him on the Board of Directors of the corporation during the term of the emergency.

4. Temporary Directors shall have all of the rights, duties and obligations of directors appointed pursuant to Article III hereof, provided, however, that a Temporary Director may be removed from the Board of Directors at any time by the person or persons responsible for appointing such Temporary Director, or by vote of the majority of the shareholders present at any meeting of the shareholders during an emergency, and, in any event, the Temporary Director shall automatically be deemed to have resigned from the Board of Directors upon the termination of the emergency in connection with which the Temporary Director was appointed.

SECTION E. MODIFICATION OF LINES OF SUCCESSION. During any emergency, the Board of Directors may provide, and from time to time modify, lines of succession different from that provided in Section N of Article IV in the event that during such an emergency any or all officers or agents of the corporation shall for any reason be rendered incapable of discharging their duties.

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SECTION F. CHANGE OF PRINCIPAL OFFICE. The Board of Directors may, either before or during any such emergency, and effective during such emergency, change the principal office of the corporation or designate several alternative head offices or regional offices, or authorize the officers of the corporation to do so.

SECTION G. LIMITATION OF LIABILITY. No officer, director or employee acting in accordance with these emergency by-laws during an emergency shall be liable except for willful misconduct.

SECTION H. REPEAL AND CHANGE. These emergency by-laws shall be subject to repeal or change by further action of the Board of Directors or by action of the shareholders, but no such repeal or change shall modify the provisions of Section G of this Article XV with regard to actions taken prior to the time of such repeal or change. Any amendment of these emergency by-laws may make any further or different provision that may be practical or necessary under the circumstances of the emergency.

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EX-4.24

Exhibit 4.24

SECOND SUPPLEMENTAL INDENTURE (this “Supplemental Indenture”) dated as of August 1, 2012 among QC ENVIRONMENTAL SERVICES, INC., a North Dakota corporation, QC ENERGY RESOURCES NORTHWEST, LLC, a Delaware limited liability company, QC ENERGY RESOURCES TEXAS, LLC, a Delaware limited liability company, QC ENERGY LOGISTICS, LLC, a Delaware limited liability company, and QUALITY BULK LOGISTICS, LLC, a Delaware limited liability company (each, a “New Guarantor” and, collectively, the “New Guarantors”), the other Guarantors named in the signature pages hereto, QUALITY DISTRIBUTION, LLC, a Delaware limited liability company, and QD CAPITAL CORPORATION, a Delaware corporation (together, the “Issuers”), and THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., a national banking association, as trustee under the indenture referred to below (the “Trustee”).

W I T N E S S E T H:

WHEREAS, the Issuers and certain Guarantors named therein have heretofore executed and delivered to the Trustee an indenture (as amended, supplemented or otherwise modified, the “Indenture”) dated as of November 3, 2010, providing for the issuance of the Issuers’ Second-Priority Senior Secured Notes due 2018 ( the “Notes”), initially in the aggregate principal amount of $225,000,000;

WHEREAS, Section 4.11 of the Indenture provides that under certain circumstances the Issuers are required to cause each New Guarantors to execute and deliver to the Trustee a supplemental indenture pursuant to which such New Guarantors shall unconditionally guarantee all the Issuers’ Obligations under the Notes and the Indenture pursuant to a Guarantee on the terms and conditions set forth herein;

WHEREAS, Sections 9.01(a)(iv), (x) and (xii) of the Indenture provide, respectively, that the Issuers, the Guarantors and the Trustee may amend the Indenture without the consent of the holders to (i) add a Guarantor with respect to the Notes pursuant to Section 4.11, (ii) surrender any right or power in the Indenture conferred upon the Issuers and (iii) make any change that does not adversely affect the rights of any holder;

WHEREAS, the Issuers, the Guarantors, the New Guarantors and the Trustee are authorized to execute and deliver this Supplemental Indenture;

WHEREAS, the Issuers have complied with all conditions precedent provided for in the Indenture relating to this Supplemental Indenture; and

WHEREAS, the Issuers have requested that the Trustee execute and deliver this Supplemental Indenture.

NOW THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt of which is hereby acknowledged, the Issuers, the Guarantors, the New Guarantors and the Trustee mutually covenant and agree for the equal and ratable benefit of the holders of the Notes as follows:

1. Defined Terms. As used in this Supplemental Indenture, terms defined in the Indenture or in the preamble or recital hereto are used herein as therein defined, except that the term “holders” in

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this Supplemental Indenture shall refer to the term “holders” as defined in the Indenture and the Trustee acting on behalf of and for the benefit of such holders. The words “herein,” “hereof” and “hereby” and other words of similar import used in this Supplemental Indenture refer to this Supplemental Indenture as a whole and not to any particular section hereof.

2. Effectiveness. This Supplemental Indenture shall become effective immediately upon its execution and delivery by the Issuers and the Trustee.

3. Agreement to Guarantee. Each New Guarantor hereby agrees, jointly and severally with all existing Guarantors and all other New Guarantors, to unconditionally guarantee the Issuers’ Obligations under the Notes and the Indenture on the terms and subject to the conditions set forth in Article XII of the Indenture and to be bound by all other applicable provisions of the Indenture and the Notes and to perform all of the obligations and agreements of a Guarantor under the Indenture.

4. Amendments. Section 11.04 of the Indenture is hereby amended by:

(i) in subsection (a) thereof, replacing the phrase “subject to subsections (b) and (c) of this Section 11.04” with the phrase “subject to subsections (b), (c) and (d) of this Section 11.04”; and

(ii) adding the following new subsection (d) at the end thereof:

“ (d) Notwithstanding anything herein to the contrary, to the extent necessary in order that under Rule 3-10 or Rule 3-16 of Regulation S-X under the Securities Act of 1933 (or any other law, rule or regulation), any direct or indirect parent of QD LLC not be required to file separate financial statements of QD, LLC and/or its Subsidiaries with the SEC (or any other governmental agency), none of (i) the provisions of Section 11.04(a) or (ii) the provisions of Article XII of this Indenture shall operate to release the Guarantee of any direct or indirect parent of QD LLC.”

5. Ratification of Indenture; Supplemental Indentures Part of Indenture. Except as expressly amended hereby, the Indenture is in all respects ratified and confirmed and all the terms, conditions and provisions thereof shall remain in full force and effect. This Supplemental Indenture shall form a part of the Indenture for all purposes, and every holder of Notes heretofore or hereafter authenticated and delivered shall be bound hereby.

6. Governing Law. THIS SUPPLEMENTAL INDENTURE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW.

7. Trustee Makes No Representation. The Trustee makes no representation as to the validity or sufficiency of this Supplemental Indenture. The recitals contained herein shall be taken as the statement of the Issuers, the Guarantors and the New Guarantors and the Trustee assumes no responsibility for their correctness.

8. Counterparts. The parties may sign any number of copies of this Supplemental Indenture. Each signed copy shall be an original, but all of them together represent the same agreement.

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9. Effect of Headings. The Section headings herein are for convenience only and shall not effect the construction thereof.

10. Notices. All notices or other communications to the New Guarantors shall be given as provided in Section 13.02 of the Indenture.

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IN WITNESS WHEREOF, the parties have caused this Indenture to be duly executed as of the date first written above.

QUALITY DISTRIBUTION, LLC, as an Issuer
By:	/s/ Gary R. Enzor
Name:	Gary R. Enzor
Title:	CEO

QD CAPITAL CORPORATION, as an Issuer
By:	/s/ Gary R. Enzor
Name:	Gary R. Enzor
Title:	CEO

BOASSO AMERICA CORPORATION, as a Guarantor
By:	/s/ Gary R. Enzor
Name: Title:	Gary R. Enzor CEO

CHEMICAL LEAMAN CORPORATION, as a Guarantor
By:	/s/ Gary R. Enzor
Name:	Gary R. Enzor
Title:	CEO

ENVIROPOWER INC., as a Guarantor
By:	/s/ Gary R. Enzor
Name:	Gary R. Enzor
Title:	CEO

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QUALA SYSTEMS, INC., as a Guarantor
By:	/s/ Gary R. Enzor
Name:	Gary R. Enzor
Title:	CEO

POWER PURCHASING, INC., as a Guarantor
By:	/s/ Gary R. Enzor
Name:	Gary R. Enzor
Title:	CEO

AMERICAN TRANSINSURANCE GROUP, INC., as a Guarantor
By:	/s/ Gary R. Enzor
Name:	Gary R. Enzor
Title:	CEO

MEXICO INVESTMENTS, INC., as a Guarantor
By:	/s/ Gary R. Enzor
Name:	Gary R. Enzor
Title:	CEO

MTL OF NEVADA, as a Guarantor
By:	/s/ Gary R. Enzor
Name:	Gary R. Enzor
Title:	CEO

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QD RISK SERVICES, INC., as a Guarantor
By:	/s/ Gary R. Enzor
Name:	Gary R. Enzor
Title:	CEO

QUALITY CARRIERS, INC., as a Guarantor
By:	/s/ Gary R. Enzor
Name:	Gary R. Enzor
Title:	CEO

QC DRY BULK, LLC, as a Guarantor
By:	/s/ Gary R. Enzor
Name:	Gary R. Enzor
Title:	CEO

QC ENERGY RESOURCES, LLC, as a Guarantor
By:	/s/ Gary R. Enzor
Name:	Gary R. Enzor
Title:	CEO

QC ENVIRONMENTAL SERVICES, INC. as a Guarantor
By:	/s/ Gary R. Enzor
Name:	Gary R. Enzor
Title:	CEO

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QC ENERGY RESOURCES NORTHWEST, LLC, as a Guarantor
By:	/s/ Gary R. Enzor
Name:	Gary R. Enzor
Title:	CEO

QC ENERGY RESOURCES TEXAS, LLC, as a Guarantor
By:	/s/ Gary R. Enzor
Name:	Gary R. Enzor
Title:	CEO

QC ENERGY LOGISTICS, LLC, as a Guarantor
By:	/s/ Gary R. Enzor
Name:	Gary R. Enzor
Title:	CEO

QUALITY BULK LOGISTICS, LLC, as a Guarantor
By:	/s/ Gary R. Enzor
Name:	Gary R. Enzor
Title:	CEO

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THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., not in its individual capacity, but solely as Trustee
By:	/s/ Melonee Young
Name:	Melonee Young
Title:	Vice President

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OFFICER’S CERTIFICATE

August 1, 2012

This Officer’s Certificate is delivered pursuant to the Indenture, dated as of November 3, 2010 (as amended, restated, supplemented or otherwise modified from time to time, the “Indenture”), among Quality Distribution, LLC, a Delaware limited liability company (the “Company”), QD Capital Corporation, a Delaware corporation (together with the Company, the “Issuers”), the guarantors party thereto (the “Guarantors”) and The Bank of New York Mellon Trust Company, N.A., as Trustee (the “Trustee”), relating to the 9.875% Second-Priority Senior Secured Notes due 2018 of the Issuers. Reference is hereby made to (i) the Second Supplemental Indenture, of even date herewith (the “Supplemental Indenture”), among the Issuers, QC Environmental Services, Inc., a North Dakota corporation, QC Energy Resources Northwest, LLC, a Delaware limited liability company, QC Energy Resources Texas, LLC, a Delaware limited liability company, QC Energy Logistics, LLC, a Delaware limited liability company and Quality Bulk Logistics, LLC, a Delaware limited liability company (each, an “Additional Guarantor” and, collectively, the “Additional Guarantors”), the other Guarantors and the Trustee, in the form attached here to as Exhibit A, (ii) Supplement No. 2 to the Collateral Agreement dated as of the date hereof (“Supplement No.2”), between the Additional Guarantors and The Bank of New York Mellon Trust Company, N.A., as Collateral Agent and (iii) the Acknowledgement to the Intercreditor Agreement dated as of the date hereof by the Additional Guarantors, Bank of America, N.A., as Intercreditor Agent, and the Trustee, as Second Priority Agent (the “Acknowledgement” and, together with the Supplemental Indenture and Supplement No.2, the “Transaction Documents”). Capitalized terms used herein and not otherwise defined shall have the respective meanings given to such terms in the Indenture

The Issuers hereby request the Trustee to execute and deliver the Transaction Documents on the date hereof.

The undersigned officer of the Issuers, in his or her capacity as such and not in his or her individual capacity, hereby certifies on behalf of the Issuers as follows:

1. He or she has read all of the covenants and conditions of the Indenture and the related definitions (including, but not limited to, Sections 4.11, 9.01, 9.06, 13.04 and 13.05 of the Indenture) with respect to the execution and delivery of the Transaction Documents by the Trustee.

2. The statements made in this Officer’s Certificate are based upon an examination and investigation of the provisions of the Indenture and each of the other documents, certificates and corporate or other records that he or she considered appropriate.

3. He or she has made such examination or investigation as is necessary to enable him or her to express an informed opinion as to whether the covenants and conditions precedent, if any, under the Indenture with respect to the execution and delivery of the Transaction Documents by the Trustee have been complied with, whether the

amendments to the Indenture set forth in the Supplemental Indenture are authorized or permitted by the Indenture and whether the Transaction Documents are the legal, valid and binding obligation of the Issuers and the Guarantors enforceable against them in accordance with their terms and comply with the provisions of the Indenture (including Section 9.03).

5. In the opinion of the undersigned, such covenants and conditions precedent under the Indenture with respect to the execution and delivery of the Supplemental Indenture Documents by the Trustee have been complied with, the amendments to the Indenture set forth in the Supplemental Indenture are authorized or permitted by the Indenture and the Transaction Documents are the legal, valid and binding obligation of the Issuers and the Guarantors enforceable against them in accordance with their terms and comply with the provisions of the Indenture (including Section 9.03).

As to various questions of law relevant to the certification listed above in paragraph 5, each of the undersigned has relied upon the opinion of O’Melveny & Meyers LLP, special counsel to the Issuers, delivered concurrently herewith.

IN WITNESS WHEREOF, the undersigned have duly executed this Officer’s Certificate as of the date first written above.

QUALITY DISTRIBUTION, LLC, as an Issuer
By:	/s/ Gary R. Enzor
Name:	Gary R. Enzor
Title:	CEO

QD CAPITAL CORPORATION, as an Issuer
By:	/s/ Gary R. Enzor
Name:	Gary R. Enzor
Title:	CEO

Exhibit A

Second Supplemental Indenture

(attached)

SECOND SUPPLEMENTAL INDENTURE (this “Supplemental Indenture”) dated as of August 1, 2012 among QC ENVIRONMENTAL SERVICES, INC., a North Dakota corporation, QC ENERGY RESOURCES NORTHWEST, LLC, a Delaware limited liability company, QC ENERGY RESOURCES TEXAS, LLC, a Delaware limited liability company, QC ENERGY LOGISTICS, LLC, a Delaware limited liability company, and QUALITY BULK LOGISTICS, LLC, a Delaware limited liability company (each, a “New Guarantor” and, collectively, the “New Guarantors”), the other Guarantors named in the signature pages hereto, QUALITY DISTRIBUTION, LLC, a Delaware limited liability company, and QD CAPITAL CORPORATION, a Delaware corporation (together, the “Issuers”), and THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., a national banking association, as trustee under the indenture referred to below (the “Trustee”).

W I T N E S S E T H:

WHEREAS, the Issuers and certain Guarantors named therein have heretofore executed and delivered to the Trustee an indenture (as amended, supplemented or otherwise modified, the “Indenture”) dated as of November 3, 2010, providing for the issuance of the Issuers’ Second-Priority Senior Secured Notes due 2018 ( the “Notes”), initially in the aggregate principal amount of $225,000,000;

WHEREAS, Section 4.11 of the Indenture provides that under certain circumstances the Issuers are required to cause each New Guarantors to execute and deliver to the Trustee a supplemental indenture pursuant to which such New Guarantors shall unconditionally guarantee all the Issuers’ Obligations under the Notes and the Indenture pursuant to a Guarantee on the terms and conditions set forth herein;

WHEREAS, Sections 9.01(a)(iv), (x) and (xii) of the Indenture provide, respectively, that the Issuers, the Guarantors and the Trustee may amend the Indenture without the consent of the holders to (i) add a Guarantor with respect to the Notes pursuant to Section 4.11, (ii) surrender any right or power in the Indenture conferred upon the Issuers and (iii) make any change that does not adversely affect the rights of any holder;

WHEREAS, the Issuers, the Guarantors, the New Guarantors and the Trustee are authorized to execute and deliver this Supplemental Indenture;

WHEREAS, the Issuers have complied with all conditions precedent provided for in the Indenture relating to this Supplemental Indenture; and

WHEREAS, the Issuers have requested that the Trustee execute and deliver this Supplemental Indenture.

NOW THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt of which is hereby acknowledged, the Issuers, the Guarantors, the New Guarantors and the Trustee mutually covenant and agree for the equal and ratable benefit of the holders of the Notes as follows:

1. Defined Terms. As used in this Supplemental Indenture, terms defined in the Indenture or in the preamble or recital hereto are used herein as therein defined, except that the term “holders” in

1

this Supplemental Indenture shall refer to the term “holders” as defined in the Indenture and the Trustee acting on behalf of and for the benefit of such holders. The words “herein,” “hereof” and “hereby” and other words of similar import used in this Supplemental Indenture refer to this Supplemental Indenture as a whole and not to any particular section hereof.

2. Effectiveness. This Supplemental Indenture shall become effective immediately upon its execution and delivery by the Issuers and the Trustee.

3. Agreement to Guarantee. Each New Guarantor hereby agrees, jointly and severally with all existing Guarantors and all other New Guarantors, to unconditionally guarantee the Issuers’ Obligations under the Notes and the Indenture on the terms and subject to the conditions set forth in Article XII of the Indenture and to be bound by all other applicable provisions of the Indenture and the Notes and to perform all of the obligations and agreements of a Guarantor under the Indenture.

4. Amendments. Section 11.04 of the Indenture is hereby amended by:

(i) in subsection (a) thereof, replacing the phrase “subject to subsections (b) and (c) of this Section 11.04” with the phrase “subject to subsections (b), (c) and (d) of this Section 11.04”; and

(ii) adding the following new subsection (d) at the end thereof:

“ (d) Notwithstanding anything herein to the contrary, to the extent necessary in order that under Rule 3-10 or Rule 3-16 of Regulation S-X under the Securities Act of 1933 (or any other law, rule or regulation), any direct or indirect parent of QD LLC not be required to file separate financial statements of QD, LLC and/or its Subsidiaries with the SEC (or any other governmental agency), none of (i) the provisions of Section 11.04(a) or (ii) the provisions of Article XII of this Indenture shall operate to release the Guarantee of any direct or indirect parent of QD LLC.”

5. Ratification of Indenture; Supplemental Indentures Part of Indenture. Except as expressly amended hereby, the Indenture is in all respects ratified and confirmed and all the terms, conditions and provisions thereof shall remain in full force and effect. This Supplemental Indenture shall form a part of the Indenture for all purposes, and every holder of Notes heretofore or hereafter authenticated and delivered shall be bound hereby.

6. Governing Law. THIS SUPPLEMENTAL INDENTURE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW.

7. Trustee Makes No Representation. The Trustee makes no representation as to the validity or sufficiency of this Supplemental Indenture. The recitals contained herein shall be taken as the statement of the Issuers, the Guarantors and the New Guarantors and the Trustee assumes no responsibility for their correctness.

8. Counterparts. The parties may sign any number of copies of this Supplemental Indenture. Each signed copy shall be an original, but all of them together represent the same agreement.

2

9. Effect of Headings. The Section headings herein are for convenience only and shall not effect the construction thereof.

10. Notices. All notices or other communications to the New Guarantors shall be given as provided in Section 13.02 of the Indenture.

3

IN WITNESS WHEREOF, the parties have caused this Indenture to be duly executed as of the date first written above.

QUALITY DISTRIBUTION, LLC, as an Issuer
By:	/s/ Gary R. Enzor
Name:	Gary R. Enzor
Title:	CEO

QD CAPITAL CORPORATION, as an Issuer
By:	/s/ Gary R. Enzor
Name:	Gary R. Enzor
Title:	CEO

BOASSO AMERICA CORPORATION, as a Guarantor
By:	/s/ Gary R. Enzor
Name:	Gary R. Enzor
Title:	CEO

CHEMICAL LEAMAN CORPORATION, as a Guarantor
By:	/s/ Gary R. Enzor
Name:	Gary R. Enzor
Title:	CEO

ENVIROPOWER INC., as a Guarantor
By:	/s/ Gary R. Enzor
Name:	Gary R. Enzor
Title:	CEO

4

QUALA SYSTEMS, INC., as a Guarantor
By:	/s/ Gary R. Enzor
Name:	Gary R. Enzor
Title:	CEO

POWER PURCHASING, INC., as a Guarantor
By:	/s/ Gary R. Enzor
Name:	Gary R. Enzor
Title:	CEO

AMERICAN TRANSINSURANCE GROUP, INC., as a Guarantor
By:	/s/ Gary R. Enzor
Name:	Gary R. Enzor
Title:	CEO

MEXICO INVESTMENTS, INC., as a Guarantor
By:	/s/ Gary R. Enzor
Name:	Gary R. Enzor
Title:	CEO

MTL OF NEVADA, as a Guarantor
By:	/s/ Gary R. Enzor
Name:	Gary R. Enzor
Title:	CEO

5

QD RISK SERVICES, INC., as a Guarantor
By:	/s/ Gary R. Enzor
Name:	Gary R. Enzor
Title:	CEO

QUALITY CARRIERS, INC., as a Guarantor
By:	/s/ Gary R. Enzor
Name:	Gary R. Enzor
Title:	CEO

QC DRY BULK, LLC, as a Guarantor
By:	/s/ Gary R. Enzor
Name:	Gary R. Enzor
Title:	CEO

QC ENERGY RESOURCES, LLC, as a Guarantor
By:	/s/ Gary R. Enzor
Name:	Gary R. Enzor
Title:	CEO

QC ENVIRONMENTAL SERVICES, INC. as a Guarantor
By:	/s/ Gary R. Enzor
Name:	Gary R. Enzor
Title:	CEO

6

QC ENERGY RESOURCES NORTHWEST, LLC, as a Guarantor
By:	/s/ Gary R. Enzor
Name:	Gary R. Enzor
Title:	CEO

QC ENERGY RESOURCES TEXAS, LLC, as a Guarantor
By:	/s/ Gary R. Enzor
Name:	Gary R. Enzor
Title:	CEO

QC ENERGY LOGISTICS, LLC, as a Guarantor
By:	/s/ Gary R. Enzor
Name:	Gary R. Enzor
Title:	CEO

QUALITY BULK LOGISTICS, LLC, as a Guarantor
By:	/s/ Gary R. Enzor
Name:	Gary R. Enzor
Title:	CEO

7

THE BANK OF NEW YORK MELLON     TRUST COMPANY, N.A., not in its individual capacity, but solely as Trustee
By:	/s/ Melonee Young
Name:	Melonee Young
Title:	Vice President

8

BEIJING BRUSSELS CENTURY CITY HONG KONG JAKARTA† LONDON LOS ANGELES	Times Square Tower 7 Times Square New York, New York 10036 TELEPHONE (212) 326-2000 FACSIMILE (212) 326-2061 www.omm.com	NEWPORT BEACH SAN FRANCISCO SHANGHAI SILICON VALLEY SINGAPORE TOKYO WASHINGTON, D.C.

August 1, 2012

The Bank of New York Mellon Trust Company, N.A.

10161 Centurion Parkway

Jacksonville, FL 32256

Attention: Corporate Trust Administration

Re: Quality Distribution, LLC/QD Capital Corporation

Ladies and Gentlemen:

We have acted as special counsel to Quality Distribution, LLC, a Delaware limited liability company (“Quality Distribution”), QD Capital Corporation, a Delaware corporation (“QD Capital,” and together with Quality Distribution, the “Issuers”). We are providing this opinion to you at the request of the Issuers pursuant to the Indenture, dated as of November 3, 2010 (as amended, restated, supplemented or otherwise modified from time to time, the “Indenture”), among the Issuers, the guarantors party thereto (the “Guarantors”) and The Bank of New York Mellon Trust Company, N.A., as Trustee (the “Trustee”), relating to the 9.875% Second-Priority Senior Secured Notes due 2018 of the Issuers. Reference is hereby made to (i) the Second Supplemental Indenture, of even date herewith (the “Supplemental Indenture”), among the Issuers, QC Environmental Services, Inc., a North Dakota corporation, QC Energy Resources Northwest, LLC, a Delaware limited liability company, QC Energy Resources Texas, LLC, a Delaware limited liability company, QC Energy Logistics, LLC, a Delaware limited liability company, and Quality Bulk Logistics, LLC, a Delaware limited liability company (each, an “Additional Guarantor” and, collectively, the “Additional Guarantors”), the other Guarantors and the Trustee, in the form attached here to as Exhibit A, (ii) Supplement No. 2 to the Collateral Agreement dated as of the date hereof (“Supplement No. 2”), between the Additional Guarantors and The Bank of New York Mellon Trust Company, N.A., as Collateral Agent and (iii) the Acknowledgement to the Intercreditor Agreement dated as of the date hereof by the Additional Guarantor, Bank of America, N.A., as Intercreditor Agent, and the Trustee, as Second Priority Agent (the “Acknowledgment” and, together with the Supplemental Indenture and Supplement No. 2, the “Transaction Documents”). Capitalized terms used herein and not otherwise defined shall have the respective meanings given to such terms in the Indenture.

In our capacity as such counsel, we have examined originals, or copies identified to our satisfaction, of those corporate and other records and documents we considered appropriate.

As to relevant factual matters, we have relied upon, among other things, the factual representations in the Officer’s Certificate delivered to you today by the Issuers (the “Officer’s Certificate”) in the form attached hereto as Exhibit B. In addition, we have assumed, without independent investigation, the accuracy of the factual statements made in the Officer’s Certificate.

† In association with Tumbuan & Partners

O’MELVENY & MYERS LLP

The Bank of New York Mellon Trust Company

August 1, 2012

Page 2

We have assumed the genuineness of all signatures, the authenticity of all documents submitted to us as originals and the conformity with originals of all documents submitted to us as copies. In addition, we assume that you have received the Officer’s Certificate and the Officer’s Certificate is reasonably satisfactory to you.

In connection with our opinion, (i) we have read (a) the conditions precedent and the related definitions in the Indenture, including, but not limited to, those set forth in Sections 4.11, 9.01, 9.03, 9.06, 13.04 and 13.05, (b) the Collateral Agreement dated as of November 3, 2010, among the Issuers, the other pledgors party thereto, and The Bank of New York Mellon Trust Company, N.A., as Collateral Agent and (c) the Officer’s Certificate delivered to you pursuant to Sections 9.06, 13.04 and 13.05 of the Indenture (the “Officer’s Certificate”), a copy of which is attached to this opinion letter as Exhibit B, (ii) the nature and scope of the examination and investigation upon which such opinion is based included an examination of the Indenture, including the sections of the Indenture referred to above, and (iii) we believe that we have made such investigation and examination as is reasonably necessary to enable us to express the informed opinion set forth below.

As to relevant factual matters, we have, with your consent, relied upon, oral or written statements and representations of officers of the Issuers and Guarantors. We have not independently verified such factual matters.

We have assumed the genuineness of all signatures, the authenticity of all documents submitted to us as originals and the conformity with originals of all documents submitted to us as copies. To the extent the obligations of the Issuers and the Guarantors depend on the enforceability of the Transaction Documents against the other parties thereto, we have assumed that the Transaction Documents are enforceable against such other parties.

On the basis of such examination, our reliance upon the assumptions stated in this opinion and our consideration of those questions of law we considered relevant, and subject to the limitations and qualifications in this opinion, we are of the opinion that:

1. All covenants and conditions precedent under the Indenture with respect to the execution and delivery of the Transaction Documents by the Issuers, the Guarantors and the Trustee have been complied with (including Section 9.03 of the Indenture), the execution and delivery of the Transaction Documents by the Issuers, the Guarantors and the Trustee are permitted by the Indenture and the amendments to the Indenture set forth in the Supplemental Indenture are authorized or permitted by the Indenture.

2. The Transaction Documents (i) are the legal, valid and binding obligation of the Issuers and the Guarantors, enforceable against them in accordance with their terms, except as

O’MELVENY & MYERS LLP

The Bank of New York Mellon Trust Company

August 1, 2012

Page 3

may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws relating to or affecting creditors’ rights generally (including, without limitation, fraudulent conveyance laws) and by general principles of equity, including, without limitation, concepts of materiality, reasonableness, good faith and fair dealing and the possible unavailability of specific performance or injunctive relief, regardless of whether considered in a proceeding in equity or at law and possible judicial action giving effect to governmental actions or foreign laws affecting creditors’ rights and (ii) comply with the provisions of the Indenture (including Section 9.03).

The opinions as expressed herein are subject to the following qualifications:

(a) Our opinion in paragraph 2(i) above as to the enforceability of the Transaction Documents is subject to: (i) public policy considerations, statutes or court decisions that may limit the rights of a party to obtain indemnification against its own gross negligence, willful misconduct or unlawful conduct; (ii) the unenforceability under certain circumstances of broadly or vaguely stated waivers or waivers of rights granted by law where the waivers are against public policy or prohibited by law; (iii) the unenforceability under certain circumstances of provisions imposing penalties, liquidated damages or other economic remedies; and (iv) the unenforceability under certain circumstances of provisions appointing one party as trustee for an adverse party or provisions for the appointment of a receiver.

(b) We express no opinion as to any provision of the Transaction Documents insofar as it purports to grant a right of setoff in respect of any Issuer’s or Guarantor’s assets to any person other than a creditor of such Issuer or Guarantor.

(c) We advise you that any provision of the Transaction Documents that provides for exclusive or non-exclusive jurisdiction of the courts of a particular state and federal courts sitting in that state may not be binding on the courts in the forum(s) selected or excluded.

The law covered by this opinion is limited to the present law of the State of New York and the present Trust Indenture Act of 1939. We express no opinion as to the laws of any other jurisdiction and no opinion regarding the statutes, administrative decisions, rules, regulations or requirements of any county, municipality, subdivision or local authority of any jurisdiction.

This opinion is furnished by us as counsel for the Issuers and may be relied upon by you, as Trustee, only in connection with the execution and delivery of the Transaction Documents and related matters. It may not be used or relied upon by you for any other purpose or by any other person, nor may copies be delivered to any other person without in each instance our prior written consent. This opinion is expressly limited to the matters set forth above, and we render no opinion, whether by implication or otherwise, as to any other matters. We assume no obligation to update or supplement this opinion to reflect any facts or circumstances that arise after the date of this opinion and come to our attention, or any future changes in laws.

Very truly yours,

O’Melveny & Myers LLP

Exhibit A

Second Supplemental Indenture

SECOND SUPPLEMENTAL INDENTURE (this “Supplemental Indenture”) dated as of August 1, 2012 among QC ENVIRONMENTAL SERVICES, INC., a North Dakota corporation, QC ENERGY RESOURCES NORTHWEST, LLC, a Delaware limited liability company, QC ENERGY RESOURCES TEXAS, LLC, a Delaware limited liability company, QC ENERGY LOGISTICS, LLC, a Delaware limited liability company, and QUALITY BULK LOGISTICS, LLC, a Delaware limited liability company (each, a “New Guarantor” and, collectively, the “New Guarantors”), the other Guarantors named in the signature pages hereto, QUALITY DISTRIBUTION, LLC, a Delaware limited liability company, and QD CAPITAL CORPORATION, a Delaware corporation (together, the “Issuers”), and THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., a national banking association, as trustee under the indenture referred to below (the “Trustee”).

W I T N E S S E T H :

WHEREAS, the Issuers and certain Guarantors named therein have heretofore executed and delivered to the Trustee an indenture (as amended, supplemented or otherwise modified, the “Indenture”) dated as of November 3, 2010, providing for the issuance of the Issuers’ Second-Priority Senior Secured Notes due 2018 (the “Notes”), initially in the aggregate principal amount of $225,000,000;

WHEREAS, Section 4.11 of the Indenture provides that under certain circumstances the Issuers are required to cause each New Guarantors to execute and deliver to the Trustee a supplemental indenture pursuant to which such New Guarantors shall unconditionally guarantee all the Issuers’ Obligations under the Notes and the Indenture pursuant to a Guarantee on the terms and conditions set forth herein;

WHEREAS, Sections 9.01(a)(iv), (x) and (xii) of the Indenture provide, respectively, that the Issuers, the Guarantors and the Trustee may amend the Indenture without the consent of the holders to (i) add a Guarantor with respect to the Notes pursuant to Section 4.11, (ii) surrender any right or power in the Indenture conferred upon the Issuers and (iii) make any change that does not adversely affect the rights of any holder;

WHEREAS, the Issuers, the Guarantors, the New Guarantors and the Trustee are authorized to execute and deliver this Supplemental Indenture;

WHEREAS, the Issuers have complied with all conditions precedent provided for in the Indenture relating to this Supplemental Indenture; and

WHEREAS, the Issuers have requested that the Trustee execute and deliver this Supplemental Indenture.

NOW THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt of which is hereby acknowledged, the Issuers, the Guarantors, the New Guarantors and the Trustee mutually covenant and agree for the equal and ratable benefit of the holders of the Notes as follows:

1. Defined Terms. As used in this Supplemental Indenture, terms defined in the Indenture or in the preamble or recital hereto are used herein as therein defined, except that the term “holders” in

1

this Supplemental Indenture shall refer to the term “holders” as defined in the Indenture and the Trustee acting on behalf of and for the benefit of such holders. The words “herein,” “hereof” and “hereby” and other words of similar import used in this Supplemental Indenture refer to this Supplemental Indenture as a whole and not to any particular section hereof.

2. Effectiveness. This Supplemental Indenture shall become effective immediately upon its execution and delivery by the Issuers and the Trustee.

3. Agreement to Guarantee. Each New Guarantor hereby agrees, jointly and severally with all existing Guarantors and all other New Guarantors, to unconditionally guarantee the Issuers’ Obligations under the Notes and the Indenture on the terms and subject to the conditions set forth in Article XII of the Indenture and to be bound by all other applicable provisions of the Indenture and the Notes and to perform all of the obligations and agreements of a Guarantor under the Indenture.

4. Amendments. Section 11.04 of the Indenture is hereby amended by:

(i) in subsection (a) thereof, replacing the phrase “subject to subsections (b) and (c) of this Section 11.04” with the phrase “subject to subsections (b), (c) and (d) of this Section 11.04”; and

(ii) adding the following new subsection (d) at the end thereof:

“ (d) Notwithstanding anything herein to the contrary, to the extent necessary in order that under Rule 3-10 or Rule 3-16 of Regulation S-X under the Securities Act of 1933 (or any other law, rule or regulation), any direct or indirect parent of QD LLC not be required to file separate financial statements of QD, LLC and/or its Subsidiaries with the SEC (or any other governmental agency), none of (i) the provisions of Section 11.04(a) or (ii) the provisions of Article XII of this Indenture shall operate to release the Guarantee of any direct or indirect parent of QD LLC.”

5. Ratification of Indenture; Supplemental Indentures Part of Indenture. Except as expressly amended hereby, the Indenture is in all respects ratified and confirmed and all the terms, conditions and provisions thereof shall remain in full force and effect. This Supplemental Indenture shall form a part of the Indenture for all purposes, and every holder of Notes heretofore or hereafter authenticated and delivered shall be bound hereby.

6. Governing Law. THIS SUPPLEMENTAL INDENTURE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW.

7. Trustee Makes No Representation. The Trustee makes no representation as to the validity or sufficiency of this Supplemental Indenture. The recitals contained herein shall be taken as the statement of the Issuers, the Guarantors and the New Guarantors and the Trustee assumes no responsibility for their correctness.

8. Counterparts. The parties may sign any number of copies of this Supplemental Indenture. Each signed copy shall be an original, but all of them together represent the same agreement.

2

9. Effect of Headings. The Section headings herein are for convenience only and shall not effect the construction thereof.

10. Notices. All notices or other communications to the New Guarantors shall be given as provided in Section 13.02 of the Indenture.

3

IN WITNESS WHEREOF, the parties have caused this Indenture to be duly executed as of the date first written above.

QUALITY DISTRIBUTION, LLC, as an Issuer
By:	/s/ Gary R. Enzor
Name: Gary R. Enzor
Title: CEO

QD CAPITAL CORPORATION, as an Issuer
By:	/s/ Gary R. Enzor
Name: Gary R. Enzor
Title: CEO

BOASSO AMERICA CORPORATION, as a Guarantor
By:	/s/ Gary R. Enzor
Name: Gary R. Enzor
Title: CEO

CHEMICAL LEAMAN CORPORATION, as a Guarantor
By:	/s/ Gary R. Enzor
Name: Gary R. Enzor
Title: CEO

ENVIROPOWER INC., as a Guarantor
By:	/s/ Gary R. Enzor
Name: Gary R. Enzor
Title: CEO

4

QUALA SYSTEMS, INC., as a Guarantor
By:	/s/ Gary R. Enzor
Name:	Gary R. Enzor
Title:	CEO

POWER PURCHASING, INC., as a Guarantor
By:	/s/ Gary R. Enzor
Name:	Gary R. Enzor
Title:	CEO

AMERICAN TRANSINSURANCE GROUP, INC., as a Guarantor
By:	/s/ Gary R. Enzor
Name:	Gary R. Enzor
Title:	CEO

MEXICO INVESTMENTS, INC., as a Guarantor
By:	/s/ Gary R. Enzor
Name:	Gary R. Enzor
Title:	CEO

MTL OF NEVADA, as a Guarantor
By:	/s/ Gary R. Enzor
Name:	Gary R. Enzor
Title:	CEO

5

QD RISK SERVICES, INC., as a Guarantor
By:	/s/ Gary R. Enzor
Name:	Gary R. Enzor
Title:	CEO

QUALITY CARRIERS, INC., as a Guarantor
By:	/s/ Gary R. Enzor
Name:	Gary R. Enzor
Title:	CEO

QC DRY BULK, LLC, as a Guarantor
By:	/s/ Gary R. Enzor
Name:	Gary R. Enzor
Title:	CEO

QC ENERGY RESOURCES, LLC, as a Guarantor
By:	/s/ Gary R. Enzor
Name:	Gary R. Enzor
Title:	CEO

QC ENVIRONMENTAL SERVICES, INC. as a Guarantor
By:	/s/ Gary R. Enzor
Name:	Gary R. Enzor
Title:	CEO

6

QC ENERGY RESOURCES NORTHWEST, LLC, as a Guarantor
By:	/s/ Gary R. Enzor
Name:	Gary R. Enzor
Title	CEO

QC ENERGY RESOURCES TEXAS, LLC, as a Guarantor
By:	/s/ Gary R. Enzor
Name:	Gary R. Enzor
Title	CEO

QC ENERGY LOGISTICS, LLC, as a Guarantor
By:	/s/ Gary R. Enzor
Name:	Gary R. Enzor
Title	CEO

QUALITY BULK LOGISTICS, LLC, as a Guarantor
By:	/s/ Gary R. Enzor
Name:	Gary R. Enzor
Title	CEO

7

THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., not in its individual capacity, but solely as Trustee
By:	/s/ Melonee Young
Name:	Melonee Young
Title:	Vice President

8

Exhibit B

Officer’s Certificate

OFFICER’S CERTIFICATE

August 1, 2012

This Officer’s Certificate is delivered pursuant to the Indenture, dated as of November 3, 2010 (as amended, restated, supplemented or otherwise modified from time to time, the “Indenture”), among Quality Distribution, LLC, a Delaware limited liability company (the “Company”), QD Capital Corporation, a Delaware corporation (together with the Company, the “Issuers”), the guarantors party thereto (the “Guarantors”) and The Bank of New York Mellon Trust Company, N.A., as Trustee (the “Trustee”), relating to the 9.875% Second-Priority Senior Secured Notes due 2018 of the Issuers. Reference is hereby made to (i) the Second Supplemental Indenture, of even date herewith (the “Supplemental Indenture”), among the Issuers, QC Environmental Services, Inc., a North Dakota corporation, QC Energy Resources Northwest, LLC, a Delaware limited liability company, QC Energy Resources Texas, LLC, a Delaware limited liability company, QC Energy Logistics, LLC, a Delaware limited liability company and Quality Bulk Logistics, LLC, a Delaware limited liability company (each, an “Additional Guarantor” and, collectively, the “Additional Guarantors”), the other Guarantors and the Trustee, in the form attached here to as Exhibit A, (ii) Supplement No. 2 to the Collateral Agreement dated as of the date hereof (“Supplement No.2”), between the Additional Guarantors and The Bank of New York Mellon Trust Company, N.A., as Collateral Agent and (iii) the Acknowledgement to the Intercreditor Agreement dated as of the date hereof by the Additional Guarantors, Bank of America, N.A., as Intercreditor Agent, and the Trustee, as Second Priority Agent (the “Acknowledgement” and, together with the Supplemental Indenture and Supplement No.2, the “Transaction Documents”). Capitalized terms used herein and not otherwise defined shall have the respective meanings given to such terms in the Indenture

The Issuers hereby request the Trustee to execute and deliver the Transaction Documents on the date hereof.

The undersigned officer of the Issuers, in his or her capacity as such and not in his or her individual capacity, hereby certifies on behalf of the Issuers as follows:

1. He or she has read all of the covenants and conditions of the Indenture and the related definitions (including, but not limited to, Sections 4.11, 9.01, 9.06, 13.04 and 13.05 of the Indenture) with respect to the execution and delivery of the Transaction Documents by the Trustee.

2. The statements made in this Officer’s Certificate are based upon an examination and investigation of the provisions of the Indenture and each of the other documents, certificates and corporate or other records that he or she considered appropriate.

3. He or she has made such examination or investigation as is necessary to enable him or her to express an informed opinion as to whether the covenants and conditions precedent, if any, under the Indenture with respect to the execution and delivery of the Transaction Documents by the Trustee have been complied with, whether the

amendments to the Indenture set forth in the Supplemental Indenture are authorized or permitted by the Indenture and whether the Transaction Documents are the legal, valid and binding obligation of the Issuers and the Guarantors enforceable against them in accordance with their terms and comply with the provisions of the Indenture (including Section 9.03).

5. In the opinion of the undersigned, such covenants and conditions precedent under the Indenture with respect to the execution and delivery of the Supplemental Indenture Documents by the Trustee have been complied with, the amendments to the Indenture set forth in the Supplemental Indenture are authorized or permitted by the Indenture and the Transaction Documents are the legal, valid and binding obligation of the Issuers and the Guarantors enforceable against them in accordance with their terms and comply with the provisions of the Indenture (including Section 9.03).

As to various questions of law relevant to the certification listed above in paragraph 5, each of the undersigned has relied upon the opinion of O’Melveny & Meyers LLP, special counsel to the Issuers, delivered concurrently herewith.

IN WITNESS WHEREOF, the undersigned have duly executed this Officer’s Certificate as of the date first written above.

QUALITY DISTRIBUTION, LLC, as an Issuer
By:	/s/ Gary R. Enzor
Name:	Gary R. Enzor
Title	CEO

QD CAPITAL CORPORATION, as an Issuer
By:	/s/ Gary R. Enzor
Name:	Gary R. Enzor
Title	CEO

Exhibit A

Second Supplemental Indenture

(attached)

SECOND SUPPLEMENTAL INDENTURE (this “Supplemental Indenture”) dated as of August 1, 2012 among QC ENVIRONMENTAL SERVICES, INC., a North Dakota corporation, QC ENERGY RESOURCES NORTHWEST, LLC, a Delaware limited liability company, QC ENERGY RESOURCES TEXAS, LLC, a Delaware limited liability company, QC ENERGY LOGISTICS, LLC, a Delaware limited liability company, and QUALITY BULK LOGISTICS, LLC, a Delaware limited liability company (each, a “New Guarantor” and, collectively, the “New Guarantors”), the other Guarantors named in the signature pages hereto, QUALITY DISTRIBUTION, LLC, a Delaware limited liability company, and QD CAPITAL CORPORATION, a Delaware corporation (together, the “Issuers”), and THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., a national banking association, as trustee under the indenture referred to below (the “Trustee”).

W I T N E S S E T H:

WHEREAS, the Issuers and certain Guarantors named therein have heretofore executed and delivered to the Trustee an indenture (as amended, supplemented or otherwise modified, the “Indenture”) dated as of November 3, 2010, providing for the issuance of the Issuers’ Second-Priority Senior Secured Notes due 2018 (the “Notes”), initially in the aggregate principal amount of $225,000,000;

WHEREAS, Section 4.11 of the Indenture provides that under certain circumstances the Issuers are required to cause each New Guarantors to execute and deliver to the Trustee a supplemental indenture pursuant to which such New Guarantors shall unconditionally guarantee all the Issuers’ Obligations under the Notes and the Indenture pursuant to a Guarantee on the terms and conditions set forth herein;

WHEREAS, Sections 9.01(a)(iv), (x) and (xii) of the Indenture provide, respectively, that the Issuers, the Guarantors and the Trustee may amend the Indenture without the consent of the holders to (i) add a Guarantor with respect to the Notes pursuant to Section 4.11, (ii) surrender any right or power in the Indenture conferred upon the Issuers and (iii) make any change that does not adversely affect the rights of any holder;

WHEREAS, the Issuers, the Guarantors, the New Guarantors and the Trustee are authorized to execute and deliver this Supplemental Indenture;

WHEREAS, the Issuers have complied with all conditions precedent provided for in the Indenture relating to this Supplemental Indenture; and

WHEREAS, the Issuers have requested that the Trustee execute and deliver this Supplemental Indenture.

NOW THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt of which is hereby acknowledged, the Issuers, the Guarantors, the New Guarantors and the Trustee mutually covenant and agree for the equal and ratable benefit of the holders of the Notes as follows:

1. Defined Terms. As used in this Supplemental Indenture, terms defined in the Indenture or in the preamble or recital hereto are used herein as therein defined, except that the term “holders” in

1

this Supplemental Indenture shall refer to the term “holders” as defined in the Indenture and the Trustee acting on behalf of and for the benefit of such holders. The words “herein,” “hereof and “hereby” and other words of similar import used in this Supplemental Indenture refer to this Supplemental Indenture as a whole and not to any particular section hereof.

2. Effectiveness. This Supplemental Indenture shall become effective immediately upon its execution and delivery by the Issuers and the Trustee.

3. Agreement to Guarantee. Each New Guarantor hereby agrees, jointly and severally with all existing Guarantors and all other New Guarantors, to unconditionally guarantee the Issuers’ Obligations under the Notes and the Indenture on the terms and subject to the conditions set forth in Article XII of the Indenture and to be bound by all other applicable provisions of the Indenture and the Notes and to perform all of the obligations and agreements of a Guarantor under the Indenture.

4. Amendments. Section 11.04 of the Indenture is hereby amended by:

(i) in subsection (a) thereof, replacing the phrase “subject to subsections (b) and (c) of this Section 11.04” with the phrase “subject to subsections (b), (c) and (d) of this Section 11.04”; and

(ii) adding the following new subsection (d) at the end thereof:

“ (d) Notwithstanding anything herein to the contrary, to the extent necessary in order that under Rule 3-10 or Rule 3-16 of Regulation S-X under the Securities Act of 1933 (or any other law, rule or regulation), any direct or indirect parent of QD LLC not be required to file separate financial statements of QD, LLC and/or its Subsidiaries with the SEC (or any other governmental agency), none of (i) the provisions of Section 11.04(a) or (ii) the provisions of Article XII of this Indenture shall operate to release the Guarantee of any direct or indirect parent of QD LLC.”

5. Ratification of Indenture; Supplemental Indentures Part of Indenture. Except as expressly amended hereby, the Indenture is in all respects ratified and confirmed and all the terms, conditions and provisions thereof shall remain in full force and effect. This Supplemental Indenture shall form a part of the Indenture for all purposes, and every holder of Notes heretofore or hereafter authenticated and delivered shall be bound hereby.

6. Governing Law. THIS SUPPLEMENTAL INDENTURE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW.

7. Trustee Makes No Representation. The Trustee makes no representation as to the validity or sufficiency of this Supplemental Indenture. The recitals contained herein shall be taken as the statement of the Issuers, the Guarantors and the New Guarantors and the Trustee assumes no responsibility for their correctness.

8. Counterparts. The parties may sign any number of copies of this Supplemental Indenture. Each signed copy shall be an original, but all of them together represent the same agreement.

2

9. Effect of Headings. The Section headings herein are for convenience only and shall not effect the construction thereof.

10. Notices. All notices or other communications to the New Guarantors shall be given as provided in Section 13.02 of the Indenture.

3

IN WITNESS WHEREOF, the parties have caused this Indenture to be duly executed as of the date first written above.

QUALITY DISTRIBUTION, LLC, as an Issuer
By:	/s/ Gary R. Enzor
Name:	Gary R. Enzor
Title:	CEO

QD CAPITAL CORPORATION, as an Issuer
By:	/s/ Gary R. Enzor
Name:	Gary R. Enzor
Title:	CEO

BOASSO AMERICA CORPORATION, as a Guarantor
By:	/s/ Gary R. Enzor
Name:	Gary R. Enzor
Title:	CEO

CHEMICAL LEAMAN CORPORATION, as a Guarantor
By:	/s/ Gary R. Enzor
Name:	Gary R. Enzor
Title:	CEO

ENVIROPOWER INC., as a Guarantor
By:	/s/ Gary R. Enzor
Name:	Gary R. Enzor
Title:	CEO

4

QUALA SYSTEMS, INC., as a Guarantor
By:	/s/ Gary R. Enzor
Name:	Gary R. Enzor
Title:	CEO

POWER PURCHASING, INC., as a Guarantor
By:	/s/ Gary R. Enzor
Name:	Gary R. Enzor
Title:	CEO

AMERICAN TRANSINSURANCE GROUP, INC., as a Guarantor
By:	/s/ Gary R. Enzor
Name:	Gary R. Enzor
Title:	CEO

MEXICO INVESTMENTS, INC., as a Guarantor
By:	/s/ Gary R. Enzor
Name:	Gary R. Enzor
Title:	CEO

MTL OF NEVADA, as a Guarantor
By:	/s/ Gary R. Enzor
Name:	Gary R. Enzor
Title:	CEO

5

QD RISK SERVICES, INC., as a Guarantor
By:	/s/ Gary R. Enzor
Name:	Gary R. Enzor
Title:	CEO

QUALITY CARRIERS, INC., as a Guarantor
By:	/s/ Gary R. Enzor
Name:	Gary R. Enzor
Title:	CEO

QC DRY BULK, LLC, as a Guarantor
By:	/s/ Gary R. Enzor
Name:	Gary R. Enzor
Title:	CEO

QC ENERGY RESOURCES, LLC, as a Guarantor
By:	/s/ Gary R. Enzor
Name:	Gary R. Enzor
Title:	CEO

QC ENVIRONMENTAL SERVICES, INC. as a Guarantor
By:	/s/ Gary R. Enzor
Name:	Gary R. Enzor
Title:	CEO

6

QC ENERGY RESOURCES NORTHWEST, LLC, as a Guarantor
By:	/s/ Gary R. Enzor
Name:	Gary R. Enzor
Title:	CEO

QC ENERGY RESOURCES TEXAS, LLC, as a Guarantor
By:	/s/ Gary R. Enzor
Name:	Gary R. Enzor
Title:	CEO

QC ENERGY LOGISTICS, LLC, as a Guarantor
By:	/s/ Gary R. Enzor
Name:	Gary R. Enzor
Title:	CEO

QUALITY BULK LOGISTICS, LLC, as a Guarantor
By:	/s/ Gary R. Enzor
Name:	Gary R. Enzor
Title:	CEO

7

THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., not in its individual capacity, but solely as Trustee
By:	/s/ Melonee Young
Name:	Melonee Young
Title:	Vice President

8

SUPPLEMENT NO. 2 dated as of August 1, 2012 (this “Supplement”), to the Collateral Agreement dated as of November 3, 2010 (the “Collateral Agreement”), among QUALITY DISTRIBUTION, LLC, a Delaware limited liability company (“QD LLC”), QD CAPITAL CORPORATION, a Delaware Corporation (together with QD LLC, the “Issuers”), QUALITY DISTRIBUTION, INC., each Subsidiary of QD LLC identified on Schedule I thereto or otherwise identified herein as a party (each, a “Subsidiary Pledgor” and collectively, the “Subsidiary Pledgors”) and THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A. as collateral agent for the Secured Parties (in such capacity, the “Collateral Agent”).

A. Reference is made to the Indenture dated as of November 3, 2010 (as amended, restated, supplemented, waived or otherwise modified from time to time, the “Indenture”), among the Issuers, Holdings, and THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., as Trustee (the “Trustee”).

B. Capitalized terms used herein and not otherwise defined herein shall have the meanings assigned to such terms in the Indenture and the Collateral Agreement.

C. The Pledgors have entered into the Collateral Agreement in order to induce to induce the Trustee to enter into the Indenture, and to induce the Holders of the Notes to purchase the Notes. Section 9.16 of the Collateral Agreement provides that additional Subsidiaries may become Subsidiary Pledgors under the Collateral Agreement by execution and delivery of an instrument in the form of this Supplement. Each undersigned Subsidiary (each, a “New Subsidiary” and, collectively, the “New Subsidiaries”) is executing this Supplement in accordance with the requirements of the Indenture to become a Subsidiary Pledgor under the Collateral Agreement as consideration for the entry by the Trustee into the Indenture and the purchase of the Notes by the Holders.

Accordingly, the Collateral Agent and each New Subsidiary agree as follows:

SECTION 1. In accordance with Section 9.16 of the Collateral Agreement, each New Subsidiary by its signature below becomes a Subsidiary Pledgor under the Collateral Agreement with the same force and effect as if originally named therein as a Subsidiary Pledgor, and each New Subsidiary hereby (a) agrees to all the terms and provisions of the Collateral Agreement applicable to it as a Subsidiary Pledgor thereunder and (b) represents and warrants that the representations and warranties made by it as a Pledgor thereunder are true and correct, in all material respects, on and as of the date hereof. In furtherance of the foregoing, each New Subsidiary, as security for the payment and performance in full of the Obligations (as defined in the Collateral Agreement), does hereby create and grant to the Collateral Agent, for the ratable benefit of the Secured Parties, a security interest in and Lien on all such New Subsidiary’s right, title and interest in and to the Collateral (as defined in the Collateral Agreement) of such New Subsidiary. Each reference to a “Subsidiary Pledgor” or “Pledgor” in the Collateral Agreement shall be deemed to include the New Subsidiary. The Collateral Agreement is hereby incorporated herein by reference.

SECTION 2. Each New Subsidiary represents and warrants to the Collateral Agent and the other Secured Parties that this Supplement has been duly authorized, executed and delivered by it and constitutes its legal, valid and binding obligation, enforceable against it in accordance

with its terms, subject to (i) the effects of bankruptcy, insolvency, moratorium, reorganization, fraudulent conveyance or other similar laws affecting creditors’ rights generally, (ii) general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law) and (iii) implied covenants of good faith and fair dealing.

SECTION 3. This Agreement may be executed in two or more counterparts, each of which shall constitute an original but all of which when taken together shall constitute but one contract. This Supplement shall become effective when (a) the Collateral Agent shall have received a counterpart of this Supplement that bears the signature of each New Subsidiary and (b) the Collateral Agent has executed a counterpart hereof.

SECTION 4. Schedules I, II, III, IV, V and VI and to the Collateral Agreement are hereby amended by supplementing such Schedules with the information for the New Subsidiaries contained in Annexes A, B, C, D, E and F attached hereto.

SECTION 5. Except as expressly supplemented hereby, the Collateral Agreement shall remain in full force and effect.

SECTION 6. THIS SUPPLEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS SUPPLEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.

SECTION 7. In the event any one or more of the provisions contained in this Supplement should be held invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein and in the Collateral Agreement shall not in any way be affected or impaired thereby. The parties shall endeavor in good-faith negotiations to replace the invalid, illegal or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions.

SECTION 8. All communications and notices hereunder shall be in writing and given as provided in Section 9.01 of the Collateral Agreement.

SECTION 9. Each New Subsidiary agrees to reimburse the Collateral Agent for reasonable out-of-pocket expenses in connection with this Supplement, including the reasonable fees, disbursements and other charges of counsel for the Collateral Agent.

SECTION 10. The recitals contained herein shall be taken as the statements of the New Subsidiaries, and the Collateral Agent assumes no responsibility for their correctness. The Collateral Agent makes no representations as to the validity or sufficiency of this Supplement.

Page 2

IN WITNESS WHEREOF, the New Subsidiaries and the Collateral Agent have duly executed this Supplement to the Collateral Agreement as of the day and year first above written.

QC ENVIRONMENTAL SERVICES, INC.
By:	/s/ Gary R. Enzor
Name:	Gary R. Enzor
Title:	CEO

QC ENERGY RESOURCES NORTHWEST, LLC
By:	/s/ Gary R. Enzor
Name:	Gary R. Enzor
Title:	CEO

QC ENERGY RESOURCES TEXAS, LLC
By:	/s/ Gary R. Enzor
Name:	Gary R. Enzor
Title:	CEO

QC ENERGY LOGISTICS, LLC
By:	/s/ Gary R. Enzor
Name:	Gary R. Enzor
Title:	CEO

QUALITY BULK LOGISTICS, LLC
By:	/s/ Gary R. Enzor
Name:	Gary R. Enzor
Title:	CEO

Page 3

ANNEX A

to Supplement No. 2 to the

Collateral Agreement

JL NAME; JURISDICTION OF FORMATION; CHIEF EXECUTIVE OFFICE; TYPE OF ORGANIZATION; WHETHER A REGISTERED ORGANIZATION; ORGANIZATIONAL IDENTIFICATION NUMBER, IF ANY;

FEDERAL TAXPAYER IDENTIFICATION NUMBER

[ILLEGIBLE]	Location of Chief Executive Office	Type of Organization	Registered Organization?	Organization Identification Number (or, if none, so indicate)	Federal Taxpayer Identification Number
[ILLEGIBLE]	4041 Park Oaks Blvd.,Ste 200 Tampa, Florida 33610	Corporation	Yes	31,519,000	45-5321615
[ILLEGIBLE]	4041 Park Oaks Blvd.,Ste 200 Tampa, Florida 33610	Limited Liability Compary	Yes	5068899	45-3853313
[ILLEGIBLE]	4041 Park Oaks BIvd.,Ste 200 Tampa, Florida 33610	Limited Liability Company	Yes	5091658	35-2433295
[ILLEGIBLE]	4041 Park Oaks Blvd.,Ste 200 Tampa, Florida 33610	Limited Liability Company	Yes	5189738	Not yet applied for.
[ILLEGIBLE]	4041 Park Oaks BlvD.,Ste 200 Tampa, Florida 33610	Limited Liability Company	Yes	5189735	Not yet applied for.

ANNEX B

to Supplement No. 2 to the

Collateral Agreement

PLEDGED SECURITIES OF THE NEW SUBSIDIARIES

Equity Interests

None.

Debt Securities

None.

ANNEX C

to Supplement No. 2 to the

Collateral Agreement

PATENTS, TRADEMARKS AND COPYRIGHTS

None.

ANNEX D

to Supplement No. 2 to the

Collateral Agreement

FILING JURISDICTIONS

QC Environmental Services, Inc.	North Dakota
QC Energy Resources Northwest, LLC	Delaware
QC Energy Resources Texas, LLC	Delaware
QC Energy Logistics, LLC	Delaware
Quality Bulk Logistics, LLC	Delaware

ANNEX E

to Supplement No. 2 to the

Collateral Agreement

COMMERCIAL TORT CLAIMS

None.

ANNEX F

to Supplement No. 2 to the

Collateral Agreement

MATTERS RELATING TO ACCOUNTS AND INVENTORY

None.

ANNEX G

to Supplement No. 2 to the

Collateral Agreement

TRANSPORTATION EQUIPMENT

None.

ACKNOWLEDGEMENT OF INTERCREDITOR AGREEMENT

This Acknowledgement of Intercreditor Agreement (this “Acknowledgement”) dated as of August 1, 2012 by the undersigned is made in reference to the Intercreditor Agreement, dated as of November 3, 2010 (as amended, restated, supplemented or otherwise modified from time to time, the “Intercreditor Agreement”), among Bank of America, N.A., as Intercreditor Agent, and The Bank of New York Mellon Trust Company, N.A., as Second Priority Agent.

Reference is also made to (i) the Credit Agreement dated as of August 19, 2011 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), among Quality Distribution, LLC, (the “Company”), Quality Distribution, Inc. (“Holdings”), Bank of America, N.A., as administrative and collateral agent, and the lenders and other agents party thereto and (ii) the Indenture, dated as of November 3, 2010 (as amended, restated, supplemented or otherwise modified from time to time, the “Indenture”), among the Company, QD Capital Corporation, a Delaware corporation, (together with the Company, the “Issuers”), the guarantors party thereto, and The Bank of New York Mellon Trust Company, N.A., as trustee, relating to the 9.875% Second-Priority Senior Secured Notes due 2018 of the Issuers.

Capitalized terms used in this Acknowledgement and not otherwise defined herein shall have the meanings set forth in the Intercreditor Agreement.

Each of the undersigned Loan Parties (each, a “Grantor”) consents to the terms of the Intercreditor Agreement. Each Grantor agrees not to take any action that would be contrary to the provisions of the Intercreditor Agreement and agrees that, except as otherwise provided therein, including with respect to those provisions of which the Company is an intended third party beneficiary, no Second Priority Agent, First Lien Agent, Senior Lender or Second Priority Secured Party shall have any liability to the Grantor for acting in accordance with the provisions of the Intercreditor Agreement, the Credit Agreement, the Indenture and other collateral, security and credit documents referred to therein. Each Grantor understands that it is not an intended beneficiary or third party beneficiary of the Intercreditor Agreement except that it is an intended beneficiary and third party beneficiary thereof with the right and power to enforce with respect to Sections 5.1, 5.3, 5.7, 8.3 (solely with respect to the final sentence thereof), 8.16 and 8.22 thereof and as otherwise provided therein. Each Grantor agrees to be bound by Section 8.22 of the Intercreditor Agreement.

Notwithstanding anything to the contrary in the Intercreditor Agreement or provided herein, each of the undersigned and each party to the Intercreditor Agreement agree, on behalf of itself and in its capacity as agent under the Intercreditor Agreement, that (i) Holdings, the Company and the other Grantors shall not have any right to consent to or approve any amendment, modification or waiver of any provision of the Intercreditor Agreement except to the extent their rights are adversely affected (in which case the Company shall have the right to consent to or approve any such amendment, modification or waiver) and (ii) upon the Company’s request in connection with a designation of additional obligations as Other First Priority Lien Obligations or Future Second Lien Indebtedness, any First Lien Agent and/or any Second Priority Agent shall enter into such supplemental agreements (which may each take the form of a joinder to the Intercreditor Agreement) to facilitate the designation of such additional obligations as contemplated by Section 8.22 of the Intercreditor Agreement as the Company may request.

Without limitation of the Intercreditor Agreement, the undersigned agree, at the Company’s expense, to take such further action and to execute and deliver such additional documents and instruments (in recordable form, if requested) as any of the Company, the Intercreditor Agents, the Trustee or any other First Lien Agent or Second Priority Agent may reasonably request to effectuate the terms of the Intercreditor Agreement.

THIS ACKNOWLEDGEMENT SHALL BE INTERPRETED, AND THE RIGHTS AND LIABILITIES OF THE BOUND HEREBY DETERMINED, IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

This Acknowledgement may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed and delivered shall be deemed an original, but all such counterparts together shall constitute but one and the same instrument; signature pages may be detached from multiple separate counterparts and attached to a single counterpart so that all signature pages are physically attached to the same document. Delivery of an executed counterpart of this Acknowledgement by telefacsimile or electronic mail shall be equally as effective as delivery of an original executed counterpart of this Acknowledgement. Any party delivering an executed counterpart of this Acknowledgement by telefacsimile or electronic mail also shall deliver an original executed counterpart of this Acknowledgement but the failure to deliver an original executed counterpart shall not affect the validity, enforceability, and binding effect of this Acknowledgement.

*  *  *  *  *  *  *

IN WITNESS WHEREOF, the undersigned have caused this Acknowledgment to be executed as of the date first set forth above.

QC ENVIRONMENTAL SERVICES, INC., as a Grantor
By:	/s/ Gary R. Enzor
	Name: Gary R. Enzor Title: CEO

QC ENERGY RESOURCES NORTHWEST, LLC as a Grantor
By:	/s/ Gary R. Enzor
	Name: Gary R. Enzor Title: CEO

QC ENERGY RESOURCES TEXAS, LLC, as a Grantor
By:	/s/ Gary R. Enzor
	Name: Gary R. Enzor Title: CEO

QC ENERGY LOGISTICS, LLC, as a Grantor
By:	/s/ Gary R. Enzor
	Name: Gary R. Enzor Title: CEO

QUALITY BULK LOGISTICS, LLC., as a Grantor
By:	/s/ Gary R. Enzor
	Name: Gary R. Enzor Title: CEO

Acknowledged:

The Bank of New York Mellon Trust Company, N.A., in its capacity as Trustee, as Second Priority Agent
By:	/s/ Melonee Young
	Name: Melonee Young
	Title:   Vice President

Bank of America, N.A.,

in its capacity as Administrative Agent, as Collateral Agent, as Intercreditor Agent

By:
	Name: Title:

Acknowledged:

The Bank of New York Mellon Trust Company, N.A., in its capacity as Trustee, as Second Priority Agent
By:
	Name:
	Title:

Bank of America, N.A.,

in its capacity as Administrative Agent, as Collateral Agent, as Intercreditor Agent

By:	/s/ William [ILLEGIBLE]
	Name: William [ILLEGIBLE] Title: Vice President

EX-10.25

Exhibit 10.25

Modification to Terms of Employment for Gary R. Enzor

December 30, 2012

Dear Gary,

To ensure continued compliance with Section 409A of the Internal Revenue Code, the following will modify your Employment Agreement dated November 3, 2004 and as amended pursuant to a letter agreement dated June 14, 2007 (the “Employment Agreement”) with Quality Distribution, Inc. (the “Company”) as follows, effective as of the date hereof:

1. Subsection 4.2.2 is amended by deleting the last sentence thereof and by substituting the following:

Such annual cash bonus shall be paid in the year following the year in which the Termination Date occurs and at the same time such annual cash bonuses are normally paid to senior executives of the Company.

2. Subsection 4.2.3 is amended substituting the following for paragraph (i) thereof and by deleting the last sentence thereof:

(i) an annual cash bonus at target prorated from the first day of such fiscal year through the Termination Date to be paid in the year following the year in which the Termination Date occurs and at the same time annual cash bonuses are normally paid to senior executives of the Company;

3. Subsection 4.3.1 is amended by deleting the existing provision and by substituting the following:

4.3.1 In the event of a change of control of the Company, as defined in the Option Plan, if a termination of Executive’s employment by the Company without Cause or a resignation by Executive for Good Reason occurs within one year of such change of control, Executive shall be entitled to the greater of the severance pay and benefits provided under Sections 4.2.3 and 4.2.4 thereof or the change of control benefits provided to any executive at the senior vice president level, provided that such other benefits will be paid at a time and in a form that does not violate the requirements of Internal Revenue Code Section 409A (“Section 409A”) to the extent applicable.

4. A new subsection 4.4.2 shall be added to Section 4.4 as follows:

4.4.2 The payments and benefits set forth in Sections 4.2.3, 4.2.4 and 4.3 shall be made or begin, as applicable, within the 45-day period immediately following the Termination Date, provided that Executive has delivered an executed copy of the general release agreement described above and the seven (7) day statutory period during which Executive may revoke such general release agreement has expired before such 45^th day. If such 45-day period begins in one calendar year and ends in another, then any payments or benefits that are subject to Section 409A shall be made or provided in the later calendar year.

5. A new Section 20 shall be added to the end of the Employment Agreement as follows:

20. Section 409A.

This Agreement shall be interpreted, administered and construed to reflect the intent of the parties that all aspects of the Agreement shall, to the extent subject to Section 409A, comply with Section 409A and any regulations and other binding guidance thereunder and to avoid any adverse tax result thereunder. All payments under this Agreement are deemed to be a separate payment for purposes of Section 409A of the Code, and the right to a series of installment payments shall be treated as the right to a series of separate payments. If, and only if required by law, the Company shall not pay any amount or provide any benefit under Sections 4.2 and 4.3 until the first day of the seventh (7^th) month following the Termination Date, at which time all payments that would have otherwise been made since the Termination Date shall be made. Neither the Company nor any of its Affiliates makes or has made any representation, warranty, or guarantee of any federal, state, or local tax consequences with respect to the entitlement or receipt of any benefit or payment hereunder, including but not limited to, under Section 409A of the Code, and Executive is solely responsible for all taxes, penalties and interest that may result from his receipt of the amounts payable under this Agreement.

The Company requests your signature below and your subsequent delivery of this letter agreement to the Company to evidence confirmation of your understanding of, and agreement to, the above-described changes to the terms of your employment as of December 30, 2012.

QUALITY DISTRIBUTION, INC.
By:	/s/ John T. Wilson
	John T. Wilson Senior Vice President, General Counsel and Corporate Secretary

Agreed to and accepted as of the date first written above.

By:	/s/ Gary R. Enzor
	Gary R. Enzor

EX-10.26

Exhibit 10.26

Modification to Terms of Employment for Joseph J. Troy

December 30, 2012

Dear Joe,

To ensure continued compliance with Section 409A of the Internal Revenue Code, the following will modify your Employment Agreement dated July 16, 2010 (the “Employment Agreement”) with Quality Distribution, Inc. (the “Company”) as follows, effective as of the date hereof:

1. Subsection 4.2.2 is amended by deleting the last sentence thereof and by substituting the following:

Such annual cash bonus shall be paid in a lump sum in the year following the year in which the Termination Date occurs and at the same time such annual cash bonuses are normally paid to similarly situated employees of the Company.

2. Subsection 4.2.3 is amended substituting the following for paragraph (i) thereof and by deleting the last sentence thereof:

(i) an annual cash bonus at target prorated from the first day of such fiscal year through the Termination Date to be paid in the year following the year in which the Termination Date occurs and at the same time annual cash bonuses are normally paid to similarly situated employees of the Company;

3. A new subsection 4.3.2 shall be added to Section 4.3 as follows:

4.3.2 The payments and benefits set forth in Section 4.2.3 shall be made or begin, as applicable, within the 45-day period immediately following the Termination Date, provided that Employee has delivered an executed copy of the general release agreement described above and the seven (7) day statutory period during which Employee may revoke such general release agreement has expired before such 45^th day. If such 45-day period begins in one calendar year and ends in another, then any payments or benefits that are subject to Internal Revenue Code Section 409A (“Section 409A”) shall be made or provided in the later calendar year.

4. A new Section 20 shall be added to the end of the Employment Agreement as follows:

20. Section 409A.

This Agreement shall be interpreted, administered and construed to reflect the intent of the parties that all aspects of the Agreement shall, to the extent subject to Section 409A, comply with Section 409A and any regulations and other binding guidance thereunder and to avoid any adverse tax result thereunder. All payments under this Agreement are deemed to be a separate payment for purposes of Section 409A of the Code, and the right to a series of installment payments shall be treated as the right to a series of separate payments. If, and only if required by law, the Company shall not pay any amount or provide any benefit under Section 4.2 until the first day of the seventh (7^th) month following the Termination Date, at which time all payments

that would have otherwise been made since the Termination Date shall be made. Neither the Company nor any of its Affiliates makes or has made any representation, warranty, or guarantee of any federal, state, or local tax consequences with respect to the entitlement or receipt of any benefit or payment hereunder, including but not limited to, under Section 409A of the Code, and Employee is solely responsible for all taxes, penalties and interest that may result from his receipt of the amounts payable under this Agreement.

The Company requests your signature below and your subsequent delivery of this letter agreement to the Company to evidence confirmation of your understanding of, and agreement to, the above-described changes to the terms of your employment as of December 30, 2012.

QUALITY DISTRIBUTION, INC.
By:	/s/ Gary R. Enzor
	Gary R. Enzor Chief Executive Officer

Agreed to and accepted as of the date first written above.

By:	/s/ Joseph J. Troy
	Joseph J. Troy

EX-10.27

Exhibit 10.27

Modification to Terms of Employment for Stephen R. Attwood

December 30, 2012

Dear Steve,

To ensure continued compliance with Section 409A of the Internal Revenue Code, the following will modify your Employment Agreement dated July 28, 2008 (the “Employment Agreement”) with Quality Distribution, Inc. (the “Company”) as follows, effective as of the date hereof:

1. Subsection 4.2.2 is amended by deleting the last sentence thereof and by substituting the following:

Such annual cash bonus shall be paid in the year following the year in which the Termination Date occurs and at the same time such annual cash bonuses are normally paid to similarly situated employees of the Company.

2. Subsection 4.2.3 is amended substituting the following for paragraph (i) thereof and by deleting the last sentence thereof:

(i) an annual cash bonus at target prorated from the first day of such fiscal year through the Termination Date to be paid in the year following the year in which the Termination Date occurs and at the same time annual cash bonuses are normally paid to similarly situated employees of the Company;

3. A new subsection 4.3.2 shall be added to Section 4.3 as follows:

4.3.2 The payments and benefits set forth in Section 4.2.3 shall be made or begin, as applicable, within the 45-day period immediately following the Termination Date, provided that Employee has delivered an executed copy of the general release agreement described above and the seven (7) day statutory period during which Employee may revoke such general release agreement has expired before such 45^th day. If such 45-day period begins in one calendar year and ends in another, then any payments or benefits that are subject to Internal Revenue Code Section 409A (“Section 409A”) shall be made or provided in the later calendar year.

4. A new Section 21 shall be added to the end of the Employment Agreement as follows:

21. Section 409A.

This Agreement shall be interpreted, administered and construed to reflect the intent of the parties that all aspects of the Agreement shall, to the extent subject to Section 409A, comply with Section 409A and any regulations and other binding guidance thereunder and to avoid any adverse tax result thereunder. All payments under this Agreement are deemed to be a separate payment for purposes of Section 409A of the Code, and the right to a series of installment payments shall be treated as the right to a series of separate payments. If, and only if required by law, the Company shall not pay any amount or provide any benefit under Section 4.2 until the first day of the seventh (7^th) month following the Termination Date, at which time all payments

that would have otherwise been made since the Termination Date shall be made. Neither the Company nor any of its Affiliates makes or has made any representation, warranty, or guarantee of any federal, state, or local tax consequences with respect to the entitlement or receipt of any benefit or payment hereunder, including but not limited to, under Section 409A of the Code, and Employee is solely responsible for all taxes, penalties and interest that may result from his receipt of the amounts payable under this Agreement.

The Company requests your signature below and your subsequent delivery of this letter agreement to the Company to evidence confirmation of your understanding of, and agreement to, the above-described changes to the terms of your employment as of December 30, 2012.

QUALITY DISTRIBUTION, INC.
By:	/s/ Gary R. Enzor
	Gary R. Enzor Chief Executive Officer

Agreed to and accepted as of the date first written above.

By:	/s/ Stephen R. Attwood
	Stephen R. Attwood

EX-10.28

Exhibit 10.28

Modification to Terms of Employment for Randall T. Strutz

December 30, 2012

Dear Randy,

To ensure continued compliance with Section 409A of the Internal Revenue Code, the following will modify your Employment Agreement dated March 12, 2010 (the “Employment Agreement”) with Quality Distribution, Inc. (the “Company”) as follows, effective as of the date hereof:

1. Subsection 4.2.2 is amended by deleting the last sentence thereof and by substituting the following:

Such annual cash bonus shall be paid in the year following the year in which the Termination Date occurs and at the same time such annual cash bonuses are normally paid to similarly situated employees of the Company.

2. Subsection 4.2.3 is amended substituting the following for paragraph (i) thereof and by deleting the last sentence thereof:

(i) an annual cash bonus at target prorated from the first day of such fiscal year through the Termination Date to be paid in the year following the year in which the Termination Date occurs and at the same time annual cash bonuses are normally paid to similarly situated employees of the Company;

3. A new subsection 4.3.2 shall be added to Section 4.3 as follows:

4.3.2 The payments and benefits set forth in Section 4.2.3 shall be made or begin, as applicable, within the 45-day period immediately following the Termination Date, provided that Employee has delivered an executed copy of the general release agreement described above and the seven (7) day statutory period during which Employee may revoke such general release agreement has expired before such 45^th day. If such 45-day period begins in one calendar year and ends in another, then any payments or benefits that are subject to Internal Revenue Code Section 409A (“Section 409A”) shall be made or provided in the later calendar year.

4. A new Section 20 shall be added to the end of the Employment Agreement as follows:

20. Section 409A.

This Agreement shall be interpreted, administered and construed to reflect the intent of the parties that all aspects of the Agreement shall, to the extent subject to Section 409A, comply with Section 409A and any regulations and other binding guidance thereunder and to avoid any adverse tax result thereunder. All payments under this Agreement are deemed to be a separate payment for purposes of Section 409A of the Code, and the right to a series of installment payments shall be treated as the right to a series of separate payments. If, and only if required by law, the Company shall not pay any amount or provide any benefit under Section 4.2 until the first day of the seventh (7^th) month following the Termination Date, at which time all payments

that would have otherwise been made since the Termination Date shall be made. Neither the Company nor any of its Affiliates makes or has made any representation, warranty, or guarantee of any federal, state, or local tax consequences with respect to the entitlement or receipt of any benefit or payment hereunder, including but not limited to, under Section 409A of the Code, and Employee is solely responsible for all taxes, penalties and interest that may result from his receipt of the amounts payable under this Agreement.

The Company requests your signature below and your subsequent delivery of this letter agreement to the Company to evidence confirmation of your understanding of, and agreement to, the above-described changes to the terms of your employment as of December 30, 2012.

QUALITY DISTRIBUTION, INC.
By:	/s/ Gary R. Enzor
	Gary R. Enzor Chief Executive Officer

Agreed to and accepted as of the date first written above.

By:	/s/ Randall T. Strutz
	Randall T. Strutz

EX-10.29

Exhibit 10.29

Modification to Terms of Employment for John T. Wilson

December 30, 2012

Dear John,

To ensure continued compliance with Section 409A of the Internal Revenue Code, the following will modify your Employment Agreement dated June 25, 2012 (the “Employment Agreement”) with Quality Distribution, Inc. (the “Company”) as follows, effective as of the date hereof:

1. Subsection 4.2.2 is amended substituting the following for paragraph (ii) thereof and by deleting the last sentence thereof:

(ii) an annual cash bonus at target prorated from the first day of such fiscal year through the Termination Date to be paid in the year following the year in which the Termination Date occurs and at the same time annual cash bonuses are normally paid to similarly situated employees of the Company and

2. A new subsection 4.3.2 shall be added to Section 4.3 as follows:

4.3.2 The payments and benefits set forth in Section 4.2.2 shall be made or begin, as applicable, within the 45-day period immediately following the Termination Date, provided that Executive has delivered an executed copy of the general release agreement described above and the seven (7) day statutory period during which Executive may revoke such general release agreement has expired before such 45^th day. If such 45-day period begins in one calendar year and ends in another, then any payments or benefits that are subject to Internal Revenue Code Section 409A (“Section 409A”) shall be made or provided in the later calendar year.

3. A new Section 20 shall be added to the end of the Employment Agreement as follows:

20. Section 409A.

This Agreement shall be interpreted, administered and construed to reflect the intent of the parties that all aspects of the Agreement shall, to the extent subject to Section 409A, comply with Section 409A and any regulations and other binding guidance thereunder and to avoid any adverse tax result thereunder. All payments under this Agreement are deemed to be a separate payment for purposes of Section 409A of the Code, and the right to a series of installment payments shall be treated as the right to a series of separate payments. If, and only if required by law, the Company shall not pay any amount or provide any benefit under Section 4.2 until the first day of the seventh (7^th) month following the Termination Date, at which time all payments that would have otherwise been made since the Termination Date shall be made. Neither the Company nor any of its Affiliates makes or has made any representation, warranty, or guarantee of any federal, state, or local tax consequences with respect to the entitlement or receipt of any benefit or payment hereunder, including but not limited to, under Section 409A of the Code, and Executive is solely responsible for all taxes, penalties and interest that may result from his receipt of the amounts payable under this Agreement.

The Company requests your signature below and your subsequent delivery of this letter agreement to the Company to evidence confirmation of your understanding of, and agreement to, the above-described changes to the terms of your employment as of December 30, 2012.

QUALITY DISTRIBUTION, INC.
By:	/s/ Gary R. Enzor
	Gary R. Enzor Chief Executive Officer

Agreed to and accepted as of the date first written above.

By:	/s/ John T. Wilson
	John T. Wilson

EX-21

Exhibit 21

LIST OF SUBSIDIARIES OF QUALITY DISTRIBUTION, INC.

Name	State of Incorporation
American Transinurance Group, Inc.	Delaware
Boasso America Corporation	Louisiana
Chemical Leaman Corporation	Pennsylvania
Levy Transport Ltd. / Levy Transport, LTEE	Canada
Mexico Investments, Inc.	Florida
MTL De Mexico S.A. de c.v.	Mexico
Power Purchasing, Inc.	Delaware
QC Bulk Logistics, LLC	Delaware
QC Energy Logistics, LLC	Delaware
QC Energy Resources, Inc.	Delaware
QC Energy Resources, LLC	Delaware
QC Energy Resources Northwest, LLC	Delaware
QC Energy Resources Texas, LLC	Delaware
QC Dry Bulk, LLC	Delaware
QD Capital Corporation	Delaware
QD Risk Services, Inc.	Florida
Quala Systems, Inc.	Delaware
Quality Carriers, Inc.	Illinois
Quality Distribution, LLC	Delaware

EX-23

Exhibit 23

CONSENT OF INDEPENDENT REGISTERED CERTIFIED PUBLIC ACCOUNTING FIRM

We hereby consent to the incorporation by reference in the Registration Statements on Form S-8 (No. 333-133408), Form S-8 (No. 333-182552) and on Form S-3 (No. 333-175094) of Quality Distribution, Inc. of our report dated March 8, 2013 relating to the financial statements and the effectiveness of internal control over financial reporting, which appears in this Form 10-K.

/s/ PricewaterhouseCoopers LLP

Tampa, Florida

March 13, 2013

EX-24

Exhibit 24

POWER OF ATTORNEY

KNOW ALL MEN BY THESE PRESENTS THAT the undersigned, a Director of Quality Distribution, Inc., a Florida corporation, (the “Company”) does hereby constitute and appoint Gary R. Enzor and Joseph J. Troy, or either of them, his true and lawful attorney, for him and in his name, place, and stead, to execute, by manual or facsimile signature, electronic transmission, or otherwise, the Annual Report on Form 10-K of the Company for the year ended December 31, 2012 and any amendments or supplements to said Annual Report and to cause the same to be filed with the Securities and Exchange Commission, together with any exhibits, financial statements, and schedules included or to be incorporated by reference therein, hereby granting to said attorneys full power and authority to do and perform all and every act and thing whatsoever requisite or desirable to be done in and about the premises as fully to all intents and purposes as the undersigned might or could do in person, hereby ratifying and confirming all acts and things which said attorneys may do or cause to be done by virtue of these presents.

IN WITNESS WHEREOF, the undersigned has hereunto set his hand and seal as of the 13th day of March, 2013.

/s/ Thomas M. White

Thomas M. White

POWER OF ATTORNEY

KNOW ALL MEN BY THESE PRESENTS THAT the undersigned, a Director of Quality Distribution, Inc., a Florida corporation, (the “Company”) does hereby constitute and appoint Gary R. Enzor and Joseph J. Troy, or either of them, his true and lawful attorney, for him and in his name, place, and stead, to execute, by manual or facsimile signature, electronic transmission, or otherwise, the Annual Report on Form 10-K of the Company for the year ended December 31, 2012 and any amendments or supplements to said Annual Report and to cause the same to be filed with the Securities and Exchange Commission, together with any exhibits, financial statements, and schedules included or to be incorporated by reference therein, hereby granting to said attorneys full power and authority to do and perform all and every act and thing whatsoever requisite or desirable to be done in and about the premises as fully to all intents and purposes as the undersigned might or could do in person, hereby ratifying and confirming all acts and things which said attorneys may do or cause to be done by virtue of these presents.

IN WITNESS WHEREOF, the undersigned has hereunto set his hand and seal as of the 13^th day of March, 2013.

/s/ Kevin E. Crowe

Kevin E. Crowe

POWER OF ATTORNEY

KNOW ALL MEN BY THESE PRESENTS THAT the undersigned, a Director of Quality Distribution, Inc., a Florida corporation, (the “Company”) does hereby constitute and appoint Gary R. Enzor and Joseph J. Troy, or either of them, his true and lawful attorney, for him and in his name, place, and stead, to execute, by manual or facsimile signature, electronic transmission, or otherwise, the Annual Report on Form 10-K of the Company for the year ended December 31, 2012 and any amendments or supplements to said Annual Report and to cause the same to be filed with the Securities and Exchange Commission, together with any exhibits, financial statements, and schedules included or to be incorporated by reference therein, hereby granting to said attorneys full power and authority to do and perform all and every act and thing whatsoever requisite or desirable to be done in and about the premises as fully to all intents and purposes as the undersigned might or could do in person, hereby ratifying and confirming all acts and things which said attorneys may do or cause to be done by virtue of these presents.

IN WITNESS WHEREOF, the undersigned has hereunto set his hand and seal as of the 13^th day of March, 2013.

/s/ Richard B. Marchese

Richard B. Marchese

POWER OF ATTORNEY

KNOW ALL MEN BY THESE PRESENTS THAT the undersigned, a Director of Quality Distribution, Inc., a Florida corporation, (the “Company”) does hereby constitute and appoint Gary R. Enzor and Joseph J. Troy, or either of them, his true and lawful attorney, for him and in his name, place, and stead, to execute, by manual or facsimile signature, electronic transmission, or otherwise, the Annual Report on Form 10-K of the Company for the year ended December 31, 2012 and any amendments or supplements to said Annual Report and to cause the same to be filed with the Securities and Exchange Commission, together with any exhibits, financial statements, and schedules included or to be incorporated by reference therein, hereby granting to said attorneys full power and authority to do and perform all and every act and thing whatsoever requisite or desirable to be done in and about the premises as fully to all intents and purposes as the undersigned might or could do in person, hereby ratifying and confirming all acts and things which said attorneys may do or cause to be done by virtue of these presents.

IN WITNESS WHEREOF, the undersigned has hereunto set his hand and seal as of the 13^th day of March, 2013.

/s/ Thomas R. Miklich

Thomas R. Miklich

POWER OF ATTORNEY

KNOW ALL MEN BY THESE PRESENTS THAT the undersigned, a Director of Quality Distribution, Inc., a Florida corporation, (the “Company”) does hereby constitute and appoint Gary R. Enzor and Joseph J. Troy, or either of them, his true and lawful attorney, for him and in his name, place, and stead, to execute, by manual or facsimile signature, electronic transmission, or otherwise, the Annual Report on Form 10-K of the Company for the year ended December 31, 2012 and any amendments or supplements to said Annual Report and to cause the same to be filed with the Securities and Exchange Commission, together with any exhibits, financial statements, and schedules included or to be incorporated by reference therein, hereby granting to said attorneys full power and authority to do and perform all and every act and thing whatsoever requisite or desirable to be done in and about the premises as fully to all intents and purposes as the undersigned might or could do in person, hereby ratifying and confirming all acts and things which said attorneys may do or cause to be done by virtue of these presents.

IN WITNESS WHEREOF, the undersigned has hereunto set his hand and seal as of the 13^th day of March, 2013.

/s/ M. Ali Rashid

M. Ali Rashid

POWER OF ATTORNEY

KNOW ALL MEN BY THESE PRESENTS THAT the undersigned, a Director of Quality Distribution, Inc., a Florida corporation, (the “Company”) does hereby constitute and appoint Gary R. Enzor and Joseph J. Troy, or either of them, his true and lawful attorney, for him and in his name, place, and stead, to execute, by manual or facsimile signature, electronic transmission, or otherwise, the Annual Report on Form 10-K of the Company for the year ended December 31, 2012 and any amendments or supplements to said Annual Report and to cause the same to be filed with the Securities and Exchange Commission, together with any exhibits, financial statements, and schedules included or to be incorporated by reference therein, hereby granting to said attorneys full power and authority to do and perform all and every act and thing whatsoever requisite or desirable to be done in and about the premises as fully to all intents and purposes as the undersigned might or could do in person, hereby ratifying and confirming all acts and things which said attorneys may do or cause to be done by virtue of these presents.

IN WITNESS WHEREOF, the undersigned has hereunto set his hand and seal as of the 13^th day of March, 2013.

/s/ Annette M. Sandberg

Annette M. Sandberg

POWER OF ATTORNEY

KNOW ALL MEN BY THESE PRESENTS THAT the undersigned, a Director of Quality Distribution, Inc., a Florida corporation, (the “Company”) does hereby constitute and appoint Gary R. Enzor and Joseph J. Troy, or either of them, his true and lawful attorney, for him and in his name, place, and stead, to execute, by manual or facsimile signature, electronic transmission, or otherwise, the Annual Report on Form 10-K of the Company for the year ended December 31, 2012 and any amendments or supplements to said Annual Report and to cause the same to be filed with the Securities and Exchange Commission, together with any exhibits, financial statements, and schedules included or to be incorporated by reference therein, hereby granting to said attorneys full power and authority to do and perform all and every act and thing whatsoever requisite or desirable to be done in and about the premises as fully to all intents and purposes as the undersigned might or could do in person, hereby ratifying and confirming all acts and things which said attorneys may do or cause to be done by virtue of these presents.

IN WITNESS WHEREOF, the undersigned has hereunto set his hand and seal as of the 13^th day of March, 2013.

/s/ Alan H. Schumacher

Alan H. Schumacher

EX-31.1

Exhibit 31.1

CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Gary R. Enzor, certify that:

1. I have reviewed this annual report on Form 10-K of Quality Distribution, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: March 13, 2013

/s/ Gary R. Enzor

GARY R. ENZOR

CHIEF EXECUTIVE OFFICER

EX-31.2

Exhibit 31.2

CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Joseph J. Troy, certify that:

1. I have reviewed this annual report on Form 10-K of Quality Distribution, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: March 13, 2013

/s/ Joseph J. Troy

JOSEPH J. TROY

EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED

PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

Each of the undersigned in connection with this Annual Report of Quality Distribution, Inc. (the “company”) on Form 10-K for the annual period ended December 31, 2012 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the undersigned’s knowledge:

(1) the Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operation of the company.

Date: March 13, 2013

/s/ Gary R. Enzor

GARY R. ENZOR

CHIEF EXECUTIVE OFFICER

Date: March 13, 2013

/s/ Joseph J. Troy

JOSEPH J. TROY

EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER

This certification accompanies the Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.

A signed original of this written statement required by Section 906 has been provided to Quality Distribution, Inc. and will be retained by Quality Distribution, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

XML

ACCOUNTS RECEIVABLE, NET (Tables)

12 Months Ended

Dec. 31, 2012

Accounts Receivable

Accounts receivable consisted of the following at December 31 (in thousands):

	2012			2011
Trade accounts receivable	$	109,145		$	86,092
Independent affiliate and independent owner-operator receivables		4,417			4,373
Other receivables		1,050			776
		114,612			91,241
Less allowance for doubtful accounts		(706	)		(674	)
	$	113,906		$	90,567

Activity in Allowance for Doubtful Accounts

The activity in the allowance for doubtful accounts for the years ended December 31 is as follows (in thousands):

	2012			2011			2010
Balance, beginning of period	$	(674	)	$	(842	)	$	(1,804	)
Adjustment to bad debt expense		(120	)		800			1,279
Write-offs, net of recoveries		88			(632	)		(317	)
Balance, end of period	$	(706	)	$	(674	)	$	(842	)

XML

Black-Scholes Model Weighted-Average Assumptions (Detail)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk free rate	0.80%	0.80%	2.00%
Expected life	5 years	5 years	5 years
Volatility	77.60%
Expected dividend

XML

Carrying Value and Fair Value of Long-Term Indebtedness (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2012
Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Senior Secured Notes	$ 225,000
Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Senior Secured Notes	$ 241,875

XML

GUARANTOR SUBSIDIARIES (Tables)

12 Months Ended

Dec. 31, 2012

Condensed Consolidated Statements of Operations

Condensed Consolidating Statement of Operations

For the Year Ended December 31, 2012

(in thousands)

	QDI			QD LLC & QD Capital			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Operating revenues:
Transportation	$	—		$	—		$	597,406		$	—		$	—		$	597,406
Service revenue		—			—			120,698			403			—			121,101
Fuel surcharge		—			—			123,611			—			—			123,611
Total operating revenues		—			—			841,715			403			—			842,118
Operating expenses:
Purchased transportation		—			—			552,524			—			—			552,524
Compensation		—			—			82,143			—			—			82,143
Fuel, supplies and maintenance		—			—			82,033			—			—			82,033
Depreciation and amortization		—			—			21,090			—			—			21,090
Selling and administrative		—			39			33,758			85			—			33,882
Insurance costs		—			—			15,821			9			—			15,830
Taxes and licenses		—			—			2,825			—			—			2,825
Communication and utilities		—			—			3,636			—			—			3,636
Gain on disposal of property and equipment		—			—			(846	)		(142	)		—			(988	)
Operating (loss) income		—			(39	)		48,731			451			—			49,143
Interest expense (income), non-related party, net		—			28,490			782			(14	)		—			29,258
Interest (income) expense, related party, net		—			(28,490	)		28,905			(415	)		—			—
Other expense		—			—			(2,849	)		(15	)		—			(2,864	)
(Loss) income before income taxes		—			(39	)		21,893			895			—			22,749
Provision for (benefit from) income taxes		3,306			—			(30,799	)		166			—			(27,327	)
Equity in earnings of subsidiaries		53,382			53,421			—			—			(106,803	)		—
Net income	$	50,076		$	53,382		$	52,692		$	729		$	(106,803	)	$	50,076
Total other comprehensive loss		(371	)		(371	)		(328	)		(43	)		742			(371	)
Comprehensive income	$	49,705		$	53,011		$	52,364		$	686		$	(106,061	)	$	49,705

Condensed Consolidating Statement of Operations

For the Year Ended December 31, 2011

(in thousands)

	QDI			QD LLC & QD Capital			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Operating revenues:
Transportation	$	—		$	—		$	517,780		$	—		$	—		$	517,780
Service revenue		—			—			110,064			524			—			110,588
Fuel surcharge		—			—			117,583			—			—			117,583
Total operating revenues		—			—			745,427			524			—			745,951
Operating expenses:
Purchased transportation		—			—			522,866			—			—			522,866
Compensation		—			—			61,098			—			—			61,098
Fuel, supplies and maintenance		—			—			51,102			—			—			51,102
Depreciation and amortization		—			—			14,413			—			—			14,413
Selling and administrative		—			120			21,445			82			—			21,647
Insurance costs		—			—			14,025			17			—			14,042
Taxes and licenses		—			—			2,211			—			—			2,211
Communication and utilities		—			—			2,732			—			—			2,732
Gain on disposal of property and equipment		—			—			(1,318	)		—			—			(1,318	)
Restructuring credit		—			—			(521	)		—						(521	)
Operating (loss) income		—			(120	)		57,374			425			—			57,679
Interest (income) expense, non-related party, net		(15	)		28,012			923			(8	)		—			28,912
Interest (income) expense, related party, net		—			(28,012	)		28,427			(415	)		—			—
Write-off of debt issuance costs		—			3,181			—			—			—			3,181
Other expense		—			2			201			11			—			214
Income (loss) before income taxes		15			(3,303	)		27,823			837			—			25,372
Provision for (benefit from) income taxes		126			—			1,860			(45	)		—			1,941
Equity in earnings of subsidiaries		23,542			26,845			—			—			(50,387	)		—
Net income	$	23,431		$	23,542		$	25,963		$	882		$	(50,387	)	$	23,431
Total other comprehensive (loss) income		(5,187	)		(5,187	)		(5,213	)		26			10,374			(5,187	)
Comprehensive income	$	18,244		$	18,355		$	20,750		$	908		$	(40,013	)	$	18,244

Condensed Consolidating Statement of Operations

For the Year Ended December 31, 2010

(in thousands)

	QDI			QD LLC and QD  Capital			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Consolidated
Operating revenues:
Transportation	$	—		$	—		$	498,446		$	—		$	—	$	498,446
Service revenue		—			—			106,893			581			—		107,474
Fuel surcharge		—			—			80,678			—			—		80,678
Total operating revenues		—			—			686,017			581			—		686,598
Operating expenses:
Purchased transportation		—			—			471,792			—			—		471,792
Compensation		—			—			57,563			—			—		57,563
Fuel, supplies and maintenance		—			—			54,366			1			—		54,367
Depreciation and amortization		—			—			16,004			—			—		16,004
Selling and administrative		33			195			19,015			96					19,339
Insurance costs		—			—			15,525			21			—		15,546
Taxes and licenses		—			—			2,218			—			—		2,218
Communication and utilities		—			—			4,119			—			—		4,119
Loss (gain) on disposal of property and equipment		—			—			1,141			(5	)		—		1,136
Restructuring costs		—			—			7,779			—			—		7,779
Operating (loss) income		(33	)		(195	)		36,495			468			—		36,735
Interest expense (income), non-related party, net		37			34,221			1,339			(49	)		—		35,548
Interest (income) expense, related party, net		—			(34,226	)		34,652			(426	)		—		—
Write-off of debt issuance costs		—			7,391			—			—			—		7,391
Other expense (income)		735			174			96			(214	)		—		791
(Loss) income before income taxes		(805	)		(7,755	)		408			1,157			—		(6,995	)
Provision for (benefit from) income taxes		3			—			822			(414	)		—		411
(Loss) equity in earnings of subsidiaries		(6,598	)		1,157			—			—			5,441		—
Net (loss) income	$	(7,406	)	$	(6,598	)	$	(414	)	$	1,571		$	5,441	$	(7,406	)
Total other comprehensive loss		(607	)		(607	)		(520	)		(87	)		1,214		(607	)
Comprehensive (loss) income	$	(8,013	)	$	(7,205	)	$	(934	)	$	1,484		$	6,655	$	(8,013	)

Condensed Consolidating Balance Sheet

Consolidating Balance Sheet, December 31, 2012

(in thousands)

	QDI			QD LLC and QD Capital			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	—		$	—		$	2,580		$	124		$	—		$	2,704
Accounts receivable, net		—			—			113,863			43			—			113,906
Prepaid expenses		—			(19	)		14,648			22			—			14,651
Deferred tax asset, net		—			—			16,609			—			—			16,609
Intercompany		—			—			369,458			88			(369,546	)		—
Other		44			—			9,679			(29	)		—			9,694
Total current assets		44			(19	)		526,837			248			(369,546	)		157,564
Property and equipment, net		—			—			190,342			—			—			190,342
Goodwill		—			—			104,294			—			—			104,294
Intangibles, net		—			—			37,654			—			—			37,654
Non-current deferred tax asset, net		(2,300	)		—			14,013			—			—			11,713
Investment in subsidiaries		(86,339	)		425,602			—			—			(339,263	)		—
Intercompany		144,738			252,732			389,289			11,582			(798,341	)		—
Other assets		—			9,510			2,526			—			—			12,036
Total assets	$	56,143		$	687,825		$	1,264,955		$	11,830		$	(1,507,150	)	$	513,603
LIABILITIES AND SHAREHOLDERS’ (DEFICIT) EQUITY
Current liabilities:
Current maturities of indebtedness	$	—		$	—		$	3,918		$	—		$	—		$	3,918
Current maturities of capital lease obligations		—			—			3,913			—			—			3,913
Accounts payable		—			—			9,977			(11	)		—			9,966
Intercompany		74,583			—			294,963			—			(369,546	)		—
Independent affiliates and independent owner-operators payable		—			—			14,243			—			—			14,243
Accrued expenses		—			4,294			33,567			28			—			37,889
Environmental liabilities		—			—			2,739			—			—			2,739
Accrued loss and damage claims		—			—			7,326			—			—			7,326
Total current liabilities		74,583			4,294			370,646			17			(369,546	)		79,994
Long-term indebtedness, less current maturities		—			384,935			23,915			—			—			408,850
Capital lease obligations, less current maturities		—			—			2,125			—			—			2,125
Environmental liabilities		—			—			6,302			—			—			6,302
Accrued loss and damage claims		—			—			9,494			—			—			9,494
Intercompany		—			384,935			409,053			4,353			(798,341	)		—
Other non-current liabilities		—			—			25,233			45			—			25,278
Total liabilities		74,583			774,164			846,768			4,415			(1,167,887	)		532,043
Shareholders’ (deficit) equity:
Common stock		437,192			354,963			390,760			4,191			(749,914	)		437,192
Treasury stock		(5,849	)		—			—			—			—			(5,849	)
Accumulated (deficit) retained earnings		(228,467	)		(220,458	)		57,630			4,356			158,472			(228,467	)
Stock recapitalization		(189,589	)		(189,589	)		—			(55	)		189,644			(189,589	)
Accumulated other comprehensive loss		(31,752	)		(31,280	)		(30,203	)		(1,077	)		62,560			(31,752	)
Stock purchase warrants		25			25			—			—			(25	)		25
Total shareholders’ (deficit) equity		(18,440	)		(86,339	)		418,187			7,415			(339,263	)		(18,440	)
Total liabilities and shareholders’ equity (deficit)		56,143		$	687,825		$	1,264,955		$	11,830		$	(1,507,150	)	$	513,603

Consolidating Balance Sheet, December 31, 2011

(in thousands)

	QDI			QD LLC and QD Capital			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	—		$	—		$	3,540		$	513		$	—		$	4,053
Accounts receivable, net		—			—			90,509			58			—			90,567
Prepaid expenses		—			31			7,818			—			—			7,849
Intercompany		—			122,294			147,251			2,440			(271,985	)		—
Deferred tax asset, net		—			—			4,048			—			—			4,048
Other		307			—			3,551			—			—			3,858
Total current assets		307			122,325			256,717			3,011			(271,985	)		110,375
Property and equipment, net		—			—			125,892			—			—			125,892
Goodwill		—			—			31,344			—			—			31,344
Intangibles, net		—			—			18,471			—			—			18,471
Investment in subsidiaries		(138,028	)		382,191			—			—			(244,163	)		—
Intercompany		66,198			—			316,983			8,383			(391,564	)		—
Other assets		—			10,655			5,658			—			—			16,313
Total assets	$	(71,523	)	$	515,171		$	755,065		$	11,394		$	(907,712	)	$	302,395
LIABILITIES AND SHAREHOLDERS’ (DEFICIT) EQUITY
Current liabilities:
Current maturities of indebtedness	$	—		$	—		$	4,139		$	—		$	—		$	4,139
Current maturities of capital lease obligations		—			—			5,261			—			—			5,261
Accounts payable		—			—			7,579			(8	)		—			7,571
Intercompany		35,328			—			232,720			3,937			(271,985	)		—
Independent affiliates and independent owner-operators payable		—			—			9,795			—			—			9,795
Accrued expenses		341			4,184			20,751			51			—			25,327
Environmental liabilities		—			—			3,878			—			—			3,878
Accrued loss and damage claims		—			—			8,614			—			—			8,614
Total current liabilities		35,669			4,184			292,737			3,980			(271,985	)		64,585
Long-term indebtedness, less current maturities		—			289,019			4,804			—			—			293,823
Capital lease obligations, less current maturities		—			—			3,840			—			—			3,840
Environmental liabilities		—			—			6,222			—			—			6,222
Accrued loss and damage claims		—			—			9,768			—			—			9,768
Intercompany		—			359,996			31,568			—			(391,564	)		—
Other non-current liabilities		(1,007	)		—			31,306			43			—			30,342
Total liabilities		34,662			653,199			380,245			4,023			(663,549	)		408,580
Shareholders’ (deficit) equity:
Common stock		393,859			354,963			399,757			4,833			(759,553	)		393,859
Treasury stock		(1,878	)		—			—			—			—			(1,878	)
Accumulated (deficit) retained earnings		(278,543	)		(273,840	)		4,938			3,627			265,275			(278,543	)
Stock recapitalization		(189,589	)		(189,589	)		—			(55	)		189,644			(189,589	)
Accumulated other comprehensive loss		(31,381	)		(30,909	)		(29,875	)		(1,034	)		61,818			(31,381	)
Stock purchase warrants		1,347			1,347			—			—			(1,347	)		1,347
Total shareholders’ (deficit) equity		(106,185	)		(138,028	)		374,820			7,371			(244,163	)		(106,185	)
Total liabilities and shareholders’ (deficit) equity	$	(71,523	)	$	515,171		$	755,065		$	11,394		$	(907,712	)	$	302,395

Condensed Consolidating Statements of Cash Flows

Condensed Consolidating Statement of Cash Flows

For the Year Ended December 31, 2012

(in thousands)

	QDI			QD LLC and QD Capital			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net income	$	50,076		$	53,382		$	52,692		$	729		$	(106,803	)	$	50,076
Adjustments for non-cash charges		(46,838	)		(79,562	)		15,204			(557	)		106,803			(4,950	)
Net changes in assets and liabilities		(2,908	)		1,305			(26,519	)		(2	)		—			(28,124	)
Intercompany activity		(330	)		24,875			(23,986	)		(559	)		—			—
Net cash provided by (used in) operating activities		—			—			17,391			(389	)		—			17,002
Cash flows from investing activities:
Capital expenditures		—			—			(32,317	)		—			—			(32,317	)
Greensville purchase price adjustment		—			—			(566	)		—			—			(566	)
Acquisition of Trojan		—			—			(8,657	)		—			—			(8,657	)
Acquisition of Bice		—			—			(52,176	)		—			—			(52,176	)
Acquisition of Dunn’s		—			—			(34,321	)		—			—			(34,321	)
Acquisition of independent affiliate’s assets		—			—			(17,143	)		—			—			(17,143	)
Proceeds from sales of property and equipment		—			—			13,497			—			—			13,497
Net cash used in investing activities		—			—			(131,683	)		—			—			(131,683	)
Cash flows from financing activities:
Principal payments on long-term debt and capital lease obligations		—			—			(8,540	)		—			—			(8,540	)
Proceeds from revolver		—			236,800			—			—			—			236,800
Payments on revolver		—			(141,100	)		—			—			—			(141,100	)
Deferred financing costs		—			(989	)		—			—			—			(989	)
Proceeds from equity offering, net of transaction costs		30,493			—			—			—			—			30,493
Proceeds from exercise of stock options		360			—			—			—			—			360
Purchases of treasury stock		(3,658	)		—			—			—			—			(3,658	)
Other		—			—			(34	)		—			—			(34	)
Intercompany activity		(27,195	)		(94,711	)		121,906			—			—			—
Net cash provided by financing activities		—			—			113,332			—			—			113,332
Effect of exchange rate changes on cash		—			—			—			—			—			—
Net decrease in cash and cash equivalents		—			—			(960	)		(389	)		—			(1,349	)
Cash and cash equivalents, beginning of year		—			—			3,540			513			—			4,053
Cash and cash equivalents, end of year	$	—		$	—		$	2,580		$	124		$	—		$	2,704

Condensed Consolidating Statement of Cash Flows

For the Year Ended December 31, 2011

(in thousands)

	QDI			QD LLC and QD Capital			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net income	$	23,431		$	23,542		$	25,963		$	882		$	(50,387	)	$	23,431
Adjustments for non-cash charges		(20,668	)		(49,029	)		40,760			(415	)		50,387			21,035
Net changes in assets and liabilities		(158	)		(1,238	)		(8,666	)		995			—			(9,067	)
Intercompany activity		(2,605	)		26,725			(22,592	)		(1,528	)		—			—
Net cash provided by (used in) operating activities		—			—			35,465			(66	)		—			35,399
Cash flows from investing activities:
Capital expenditures		—			—			(38,340	)		—			—			(38,340	)
Acquisition of Greensville Transport Company		—			—			(8,594	)		—			—			(8,594	)
Proceeds from sales of property and equipment		—			—			16,476			—			—			16,476
Net cash used in investing activities		—			—			(30,458	)		—			—			(30,458	)
Cash flows from financing activities:
Principal payments on long-term debt and capital lease obligations		—			(33,378	)		(9,229	)		—			—			(42,607	)
Proceeds from revolver		—			175,457			—			—			—			175,457
Payments on revolver		—			(148,457	)		—			—			—			(148,457	)
Deferred financing costs		—			(4,965	)		—			—			—			(4,965	)
Redemption of noncontrolling interest		—			—			(1,833	)		—			—			(1,833	)
Proceeds from equity offering, net of transaction costs		17,580			—			—			—			—			17,580
Proceeds from exercise of stock options		1,768			—			—			—			—			1,768
Other		—			—			415			—			—			415
Intercompany activity		(19,348	)		11,343			8,005			—			—			—
Net cash used in financing activities		—			—			(2,642	)		—			—			(2,642	)
Effect of exchange rate changes on cash		—			—			1			—			—			1
Net increase (decrease) in cash and cash equivalents		—			—			2,366			(66	)		—			2,300
Cash and cash equivalents, beginning of year		—			—			1,174			579			—			1,753
Cash and cash equivalents, end of year	$	—		$	—		$	3,540		$	513		$	—		$	4,053

Condensed Consolidating Statement of Cash Flows

For the Year Ended December 31, 2010

(in thousands)

	QDI			QD LLC and QD Capital			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net (loss) income	$	(7,406	)	$	(6,598	)	$	(414	)	$	1,571		$	5,441		$	(7,406	)
Adjustments for non-cash charges		9,566			(20,673	)		50,553			(426	)		(5,441	)		33,579
Net changes in assets and liabilities		140			(1,017	)		(5,340	)		1,115			—			(5,102	)
Intercompany activity		(2,300	)		28,288			(24,305	)		(1,683	)		—			—
Net cash provided by operating activities		—			—			20,494			577			—			21,071
Cash flows from investing activities:
Capital expenditures		—			—			(11,184	)		—			—			(11,184	)
Proceeds from sales of property and equipment		—			—			10,105			—			—			10,105
Net cash used in investing activities		—			—			(1,079	)		—			—			(1,079	)
Cash flows from financing activities:
Proceeds from issuance of long-term debt		—			223,479			—			—			—			223,479
Principal payments on long-term debt and capital lease obligations		—			(201,085	)		(9,692	)		—			—			(210,777	)
Proceeds from revolver		—			59,200			—			—			—			59,200
Payments on revolver		—			(88,700	)		—			—			—			(88,700	)
Deferred financing costs		—			(5,594	)		—			—			—			(5,594	)
Other		(692	)		(319	)		(476	)		—			—			(1,487	)
Intercompany activity		692			13,019			(11,611	)		(2,100	)		—			—
Net cash used in financing activities		—			—			(21,779	)		(2,100	)		—			(23,879	)
Effect of exchange rate changes on cash		—			—			7			—			—			7
Net decrease in cash and cash equivalents		—			—			(2,357	)		(1,523	)		—			(3,880	)
Cash and cash equivalents, beginning of year		—			—			3,531			2,102			—			5,633
Cash and cash equivalents, end of year	$	—		$	—		$	1,174		$	579		$	—		$	1,753

XML

Consolidating Balance Sheet (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2012		Dec. 31, 2011		Dec. 31, 2010		Dec. 31, 2009
Current assets:
Cash and cash equivalents	$ 2,704		$ 4,053		$ 1,753		$ 5,633
Accounts receivable, net	113,906		90,567
Prepaid expenses	14,651		7,849
Deferred tax asset, net	16,609		4,048
Other	9,694		3,858
Total current assets	157,564		110,375
Property and equipment, net	190,342	[1]	125,892	[1]	113,419	[1]
Goodwill	104,294		31,344
Intangibles, net	37,654		18,471
Non-current deferred tax asset, net	11,713
Other assets	12,036		16,313
Total assets	513,603		302,395
Current liabilities:
Current maturities of indebtedness	3,918		4,139
Current maturities of capital lease obligations	3,913		5,261
Accounts payable	9,966		7,571
Independent affiliates and independent owner-operators payable	14,243		9,795
Accrued expenses	37,889		25,327
Environmental liabilities	2,739		3,878
Accrued loss and damage claims	7,326		8,614
Total current liabilities	79,994		64,585
Long-term indebtedness, less current maturities	408,850		293,823
Capital lease obligations, less current maturities	2,125		3,840
Environmental liabilities	6,302		6,222
Accrued loss and damage claims	9,494		9,768
Other non-current liabilities	25,278		30,342
Total liabilities	532,043		408,580
Shareholders' (deficit) equity:
Common stock	437,192		393,859
Treasury stock	(5,849)		(1,878)
Accumulated (deficit) retained earnings	(228,467)		(278,543)
Stock recapitalization	(189,589)		(189,589)
Accumulated other comprehensive loss	(31,752)		(31,381)
Stock purchase warrants	25		1,347
Total shareholders' (deficit) equity	(18,440)		(106,185)		(146,379)		(140,736)
Total liabilities and shareholders' (deficit) equity	513,603		302,395
QDI
Current assets:
Other	44		307
Total current assets	44		307
Non-current deferred tax asset, net	(2,300)
Investment in subsidiaries	(86,339)		(138,028)
Intercompany	144,738		66,198
Total assets	56,143		(71,523)
Current liabilities:
Intercompany	74,583		35,328
Accrued expenses			341
Total current liabilities	74,583		35,669
Other non-current liabilities			(1,007)
Total liabilities	74,583		34,662
Shareholders' (deficit) equity:
Common stock	437,192		393,859
Treasury stock	(5,849)		(1,878)
Accumulated (deficit) retained earnings	(228,467)		(278,543)
Stock recapitalization	(189,589)		(189,589)
Accumulated other comprehensive loss	(31,752)		(31,381)
Stock purchase warrants	25		1,347
Total shareholders' (deficit) equity	(18,440)		(106,185)
Total liabilities and shareholders' (deficit) equity	56,143		(71,523)
QD LLC and QD Capital
Current assets:
Prepaid expenses	(19)		31
Intercompany			122,294
Total current assets	(19)		122,325
Investment in subsidiaries	425,602		382,191
Intercompany	252,732
Other assets	9,510		10,655
Total assets	687,825		515,171
Current liabilities:
Accrued expenses	4,294		4,184
Total current liabilities	4,294		4,184
Long-term indebtedness, less current maturities	384,935		289,019
Intercompany	384,935		359,996
Total liabilities	774,164		653,199
Shareholders' (deficit) equity:
Common stock	354,963		354,963
Accumulated (deficit) retained earnings	(220,458)		(273,840)
Stock recapitalization	(189,589)		(189,589)
Accumulated other comprehensive loss	(31,280)		(30,909)
Stock purchase warrants	25		1,347
Total shareholders' (deficit) equity	(86,339)		(138,028)
Total liabilities and shareholders' (deficit) equity	687,825		515,171
Guarantor Subsidiaries
Current assets:
Cash and cash equivalents	2,580		3,540		1,174		3,531
Accounts receivable, net	113,863		90,509
Prepaid expenses	14,648		7,818
Deferred tax asset, net	16,609		4,048
Intercompany	369,458		147,251
Other	9,679		3,551
Total current assets	526,837		256,717
Property and equipment, net	190,342		125,892
Goodwill	104,294		31,344
Intangibles, net	37,654		18,471
Non-current deferred tax asset, net	14,013
Intercompany	389,289		316,983
Other assets	2,526		5,658
Total assets	1,264,955		755,065
Current liabilities:
Current maturities of indebtedness	3,918		4,139
Current maturities of capital lease obligations	3,913		5,261
Accounts payable	9,977		7,579
Intercompany	294,963		232,720
Independent affiliates and independent owner-operators payable	14,243		9,795
Accrued expenses	33,567		20,751
Environmental liabilities	2,739		3,878
Accrued loss and damage claims	7,326		8,614
Total current liabilities	370,646		292,737
Long-term indebtedness, less current maturities	23,915		4,804
Capital lease obligations, less current maturities	2,125		3,840
Environmental liabilities	6,302		6,222
Accrued loss and damage claims	9,494		9,768
Intercompany	409,053		31,568
Other non-current liabilities	25,233		31,306
Total liabilities	846,768		380,245
Shareholders' (deficit) equity:
Common stock	390,760		399,757
Accumulated (deficit) retained earnings	57,630		4,938
Accumulated other comprehensive loss	(30,203)		(29,875)
Total shareholders' (deficit) equity	418,187		374,820
Total liabilities and shareholders' (deficit) equity	1,264,955		755,065
Non-Guarantor Subsidiaries
Current assets:
Cash and cash equivalents	124		513		579		2,102
Accounts receivable, net	43		58
Prepaid expenses	22
Intercompany	88		2,440
Other	(29)
Total current assets	248		3,011
Intercompany	11,582		8,383
Total assets	11,830		11,394
Current liabilities:
Accounts payable	(11)		(8)
Intercompany			3,937
Accrued expenses	28		51
Total current liabilities	17		3,980
Intercompany	4,353
Other non-current liabilities	45		43
Total liabilities	4,415		4,023
Shareholders' (deficit) equity:
Common stock	4,191		4,833
Accumulated (deficit) retained earnings	4,356		3,627
Stock recapitalization	(55)		(55)
Accumulated other comprehensive loss	(1,077)		(1,034)
Total shareholders' (deficit) equity	7,415		7,371
Total liabilities and shareholders' (deficit) equity	11,830		11,394
Eliminations
Current assets:
Intercompany	(369,546)		(271,985)
Total current assets	(369,546)		(271,985)
Investment in subsidiaries	(339,263)		(244,163)
Intercompany	(798,341)		(391,564)
Total assets	(1,507,150)		(907,712)
Current liabilities:
Intercompany	(369,546)		(271,985)
Total current liabilities	(369,546)		(271,985)
Intercompany	(798,341)		(391,564)
Total liabilities	(1,167,887)		(663,549)
Shareholders' (deficit) equity:
Common stock	(749,914)		(759,553)
Accumulated (deficit) retained earnings	158,472		265,275
Stock recapitalization	189,644		189,644
Accumulated other comprehensive loss	62,560		61,818
Stock purchase warrants	(25)		(1,347)
Total shareholders' (deficit) equity	(339,263)		(244,163)
Total liabilities and shareholders' (deficit) equity	$ (1,507,150)		$ (907,712)

[1] Includes property and equipment.

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Accounts Receivable (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2012	Dec. 31, 2011
Accounts, Notes, Loans and Financing Receivable [Line Items]
Trade accounts receivable	$ 109,145	$ 86,092
Independent affiliate and independent owner-operator receivables	4,417	4,373
Other receivables	1,050	776
Accounts Receivable, Gross, Current, Total	114,612	91,241
Less allowance for doubtful accounts	(706)	(674)
Accounts Receivable, Net, Total	$ 113,906	$ 90,567

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Carrying Value and Fair Value of Long-Term Indebtedness (Parenthetical) (Detail)	12 Months Ended
	Dec. 31, 2012
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Senior Secured Notes, due date	2018
Senior Secured Notes, Interest rate	9.875%

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Estimated Amortization Expense for Intangible Assets (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2012
Intangible Assets Goodwill And Other Assets [Line Items]
2013	$ 4,186
2014	3,680
2015	3,434
2016	3,430
2017	3,354
Thereafter	$ 12,170

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Expected Benefit Payments (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2012
Defined Benefit Plan Disclosure [Line Items]
2013	$ 3,367
2014	3,363
2015	3,384
2016	3,389
2017	3,401
2018 - 2022	$ 16,376

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STOCK COMPENSATION PLANS (Tables)

12 Months Ended

Dec. 31, 2012

Weighted-Average Assumptions Based on Black-Scholes Model

The Black-Scholes model was used with the following weighted-average assumptions:

	2012			2011			2010
Risk free rate		0.8	%		0.8	%		2.0	%
Expected life		5 years			5 years			5 years
Volatility		77.6	%		78 .0	%		77 .0	%
Expected dividend		—			—			—

Stock-Based Compensation Expense Recognized Each of Stock Based Awards

Stock-based compensation expense recognized during the years ended December 31, 2012, 2011 and 2010 for each of the types of stock-based awards was (in thousands):

	2012		2011		2010
Stock options	$	1,741	$	1,777	$	1,351
Restricted stock		1,497		1,097		922
Total stock-based compensation expense	$	3,238	$	2,874	$	2,273

Unrecognized Stock-Based Compensation and Weighted Average Period

The following table summarizes unrecognized stock-based compensation and the weighted average period over which such stock-based compensation is expected to be recognized as of December 31, 2012 (in thousands):

			Remaining years
Stock options	$	2,339		2.5
Restricted stock		1,724		2.2
	$	4,063

Two Thousand Three Stock Option Plan

Stock Option Plan Activity

The 2003 Stock Option Plan activity for the year ended December 31, 2012 is as follows (in thousands, except per share data):

	Number of Shares Outstanding			Weighted Average Exercise Price Per Share		Weighted Average Remaining contractual Term (in years)		Aggregate Intrinsic Value (in thousands) (a)
Options outstanding at December 31, 2010		2,356		$	4.97
2011 option activity:
Granted		233		$	9.70
Exercised (b)(c)		(348	)	$	5.11
Canceled		(34	)	$	4.56
Options outstanding at December 31, 2011		2,207		$	5.45
2012 option activity:
Granted		163		$	13.00
Exercised (b)(c)		(82	)	$	4.40
Canceled		(36	)	$	5.69
Expired		(48	)	$	8.12
Options outstanding at December 31, 2012		2,204		$	5.99
Options exercisable and expected to vest at December 31, 2012		1,580		$	5.25		5.14	$	2,623

(a) The intrinsic value of a stock option is the amount by which the market value of the underlying stock as of December 31, 2012 exceeds the exercise price of the option multiplied by the number of shares represented by such option.

(b) Shares issued upon the exercise of stock options were treated as newly issued shares.

(c) There was no tax benefit recognized in 2012, 2011 and 2010 related to stock-based compensation.

Restricted Stock Incentive Plan Activity

The 2003 Restricted Stock Incentive Plan activity for the year ended December 31, 2012 is as follows (in thousands, except per share data):

	Number of Shares Outstanding			Weighted Average Grant Date Fair Value Per Share		Aggregate Intrinsic Value
Restricted stock unvested at December 31, 2010		479		$	3.90
2011 activity:
Granted		93		$	9.39
Vested		(220	)	$	4.12
Canceled		(17	)	$	4.93
Restricted stock unvested at December 31, 2011		335		$	5.22	$	3,766
2012 activity:
Granted		152		$	12.67
Vested		(263	)	$	6.17
Canceled		(5	)	$	8.84
Restricted stock unvested at December 31, 2012		219		$	9.19	$	1,312

Two Thousand Twelve Equity Incentive Plan

Stock Option Plan Activity

The 2012 Equity Incentive Plan activity for the year ended December 31, 2012 is as follows (in thousands, except per share data):

Stock Options

	Number of Shares Outstanding		Weighted Average Exercise Price Per Share		Weighted Average Remaining contractual Term (in years)		Aggregate Intrinsic Value (in thousands) (a)
Options outstanding at December 31, 2011		—		—
2012 option activity:
Granted		48	$	10.54
Exercised		—		—
Canceled		—		—
Options outstanding at December 31, 2012		48	$	10.54
Options exercisable and expected to vest at December 31, 2012		—		—		—		—

(a) The intrinsic value of a stock option is the amount by which the market value of the underlying stock as of December 31, 2012 exceeds the exercise price of the option multiplied by the number of shares represented by such option.

Restricted Stock Incentive Plan Activity

During the year ended December 31, 2012, cash was not used to settle any equity instruments previously granted.

Restricted Stock

	Number of Shares Outstanding			Weighted Average Grant Date Fair Value Per Share		Aggregate Intrinsic Value
Restricted stock unvested at December 31, 2011		—			—
2012 activity:
Granted		30		$	10.42
Vested		(4	)	$	10.61
Canceled		—			—
Restricted stock unvested at December 31, 2012		26		$	10.39	$	156

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EARNINGS (LOSS) PER COMMON SHARE (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of Reconciliation of Numerators and Denominators of Basic and Diluted Income Per Share

A reconciliation of the numerators and denominators of the basic and diluted earnings (loss) from continuing operations to earnings (loss) per share computations follows (in thousands except per share amounts):

	December 31, 2012						December 31, 2011						December 31, 2010
	Earnings from continuing operations (numerator)		Shares (denominator)		Per- share amount		Earnings from continuing operations (numerator)		Shares (denominator)		Per- share amount		Loss from continuing operations (numerator)			Shares (denominator)		Per- share amount
Basic earnings (loss) available to common shareholders:
Earnings (loss)	$	50,076		26,502	$	1.89	$	23,431		23,088	$	1.01	$	(7,406	)		20,382	$	(0.36	)
Effect of dilutive securities:
Stock options				566						635							—
Unvested restricted stock				126						200							—
Unexercised stock warrants				13						429							—
Diluted earnings (loss) available to common shareholders:
Earnings (loss)	$	50,076		27,207	$	1.84	$	23,431		24,352	$	0.96	$	(7,406	)		20,382	$	(0.36	)

Summary of Antidilutive Securities Not Included in Calculation of Diluted Earnings Per Share

The following securities were not included in the calculation of diluted EPS because such inclusion would be anti-dilutive (in thousands):

	For the years ended December 31,
	2012		2011		2010
Stock options		1,686		1,573		2,126
Restricted stock		119		134		313
Warrants		1		1		1

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Accounts Payable and Accrued Expenses - Additional Information - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	Dec. 31, 2012	Dec. 31, 2011
Accrued Expenses [Line Items]
Book overdrafts included in accounts payable	$ 2.0	$ 1.6

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Transactions with Related Parties - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended			1 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010	Mar. 01, 2013 Affiliated Entity
Related Party Transaction [Line Items]
Percentage of outstanding common stock owned or controlled by related party	17.30%			17.40%
Revenue from customers	$ 14.1	$ 16.3	$ 15.0

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Property and Equipment - Additional Information (Detail) (USD $)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Property, Plant and Equipment [Line Items]
Depreciation expense	$ 17,800,000	$ 13,000,000	$ 14,500,000
Accumulated depreciation equipment under capital lease	142,170,000	136,594,000
Revenue Equipment
Property, Plant and Equipment [Line Items]
Capitalized cost	13,200,000	17,600,000
Accumulated depreciation equipment under capital lease	$ 2,900,000	$ 2,800,000

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Components of (Benefit) from Provision for Income Tax (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Current taxes:
Current taxes	$ 781	$ 1,941	$ 411
Deferred taxes:
Deferred taxes	7,174	8,500	(2,792)
Valuation Allowance
Valuation Allowance	(35,282)	(8,500)	2,792
(Benefit from) provision for income taxes	(27,327)	1,941	411
Internal Revenue Service (IRS)
Current taxes:
Current taxes	(337)	146	13
Deferred taxes:
Deferred taxes	7,038	7,529	(2,743)
Valuation Allowance
Valuation Allowance	(32,586)	(7,529)	2,743
State and Local Jurisdiction
Current taxes:
Current taxes	516	998	794
Deferred taxes:
Deferred taxes	136	971	(49)
Valuation Allowance
Valuation Allowance	(2,696)	(971)	49
MEXICO
Current taxes:
Current taxes	166	(45)	(414)
CANADA
Current taxes:
Current taxes	$ 436	$ 842	$ 18

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Summary of Antidilutive Securities Not Included in Calculation of Diluted Earnings Per Share (Detail) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Stock Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount	1,686	1,573	2,126
Unvested restricted stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount	119	134	313
Stock warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount	1	1	1

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Equity Instruments Previously Granted (Detail) (Two Thousand Twelve Equity Incentive Plan, USD $) In Thousands, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2012
Two Thousand Twelve Equity Incentive Plan
Number of Shares Outstanding
Granted	30
Vested	(4)
Canceled
Restricted stock unvested at December 31, 2012	26
Weighted Average Grant Date Fair Value Per Share
Granted	$ 10.42
Vested	$ 10.61
Canceled
Restricted stock unvested at December 31, 2012	$ 10.39
Aggregate intrinsic value
Restricted stock unvested at December 31, 2012	$ 156

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Intangible Assets (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Finite-Lived Intangible Assets [Line Items]
Gross Book Value	$ 24,881	$ 21,893
Additions	22,460	2,987
Accumulated Amortization	(9,687)	(6,409)
Net Book Value	37,654	18,471
Intermodal
Finite-Lived Intangible Assets [Line Items]
Net Book Value	16,600	17,900
Energy Logistics
Finite-Lived Intangible Assets [Line Items]
Net Book Value	20,900
Tradename
Finite-Lived Intangible Assets [Line Items]
Gross Book Value		7,400
Net Book Value		7,400
Intangible assets useful life		Indefinite
Tradename | Intermodal
Finite-Lived Intangible Assets [Line Items]
Gross Book Value	7,400
Net Book Value	7,400
Intangible assets useful life	Indefinite
Tradename | Energy Logistics
Finite-Lived Intangible Assets [Line Items]
Additions	1,100
Accumulated Amortization	(304)
Net Book Value	796
Intangible assets useful life	2 years
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Gross Book Value	14,260	11,900
Additions	19,150	2,360
Accumulated Amortization	(6,292)	(4,000)
Net Book Value	27,118	10,260
Intangible assets useful life		12 years
Customer relationships | Minimum
Finite-Lived Intangible Assets [Line Items]
Intangible assets useful life	10 years
Customer relationships | Maximum
Finite-Lived Intangible Assets [Line Items]
Intangible assets useful life	12 years
Non-compete agreements
Finite-Lived Intangible Assets [Line Items]
Gross Book Value	3,221	2,593
Additions	1,090	627
Accumulated Amortization	(3,015)	(2,409)
Net Book Value	1,296	811
Non-compete agreements | Minimum
Finite-Lived Intangible Assets [Line Items]
Intangible assets useful life	3 years	3 years
Non-compete agreements | Maximum
Finite-Lived Intangible Assets [Line Items]
Intangible assets useful life	6 years	5 years
Service Agreements
Finite-Lived Intangible Assets [Line Items]
Additions	1,120
Accumulated Amortization	(76)
Net Book Value	$ 1,044
Intangible assets useful life	11 years

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Schedule of Indebtedness Required to Pay (Parenthetical) (Detail) (USD $) In Millions, unless otherwise specified	Dec. 31, 2012
Debt Instrument [Line Items]
Discount on Notes	$ 1.3

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Long Term Debt (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2012		Dec. 31, 2011
Debt Instrument [Line Items]
Debt instrument carrying amount	$ 420,071		$ 308,544
Discount on Notes	(1,265)		(1,481)
Total Long Term Debt and Capital Lease Obligations, Total	418,806		307,063
Less current maturities of long-term debt (including capital lease obligations)	(7,831)		(9,400)
Long-term debt, less current maturities (including capital lease obligations)	410,975		297,663
Capital lease
Debt Instrument [Line Items]
Debt instrument carrying amount	6,038		9,101
Abl Facility
Debt Instrument [Line Items]
Debt instrument carrying amount	161,200		65,500
Nine Point Eight Seven Five Percent Second Priority Senior Secured Notes Due Twenty Eighteen
Debt Instrument [Line Items]
Debt instrument carrying amount	225,000	[1]	225,000
Five Percent Subordinated Acquisition Notes
Debt Instrument [Line Items]
Debt instrument carrying amount	21,300
Other Notes
Debt Instrument [Line Items]
Debt instrument carrying amount	$ 6,533		$ 8,943

[1] Amount does not include the remaining unamortized original issue discount of $1.3 million related to the 2018 Notes.

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Schedule of Debt Issuance Cost (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Debt Instrument [Line Items]
Beginning balance	$ 10,654
Additional Debt Issuance Costs	989
2012 Amortization Expense	(2,133)	(2,118)	(2,742)
Ending balance	9,510	10,654
Abl Facility
Debt Instrument [Line Items]
Beginning balance	5,094
Additional Debt Issuance Costs	989
2012 Amortization Expense	(1,238)
Ending balance	4,845
Nine Point Eight Seven Five Percent Second Priority Senior Secured Notes Due Twenty Eighteen
Debt Instrument [Line Items]
Beginning balance	5,560
2012 Amortization Expense	(895)
Ending balance	$ 4,665

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Goodwill and Intangible Assets - Additional Information (Detail) (USD $)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Intangible Assets Goodwill And Other Assets [Line Items]
Intangibles, net	$ 37,654,000	$ 18,471,000
Amortization expense	3,300,000	1,400,000	1,500,000
Energy Logistics
Intangible Assets Goodwill And Other Assets [Line Items]
Intangibles, net	20,900,000
Intermodal
Intangible Assets Goodwill And Other Assets [Line Items]
Intangibles, net	16,600,000	17,900,000
Chemical Logistics
Intangible Assets Goodwill And Other Assets [Line Items]
Intangibles, net	$ 200,000	$ 600,000

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Activity in Allowance for Doubtful Accounts (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Accounts, Notes, Loans and Financing Receivable [Line Items]
Balance, beginning of period	$ (674)	$ (842)	$ (1,804)
Adjustment to bad debt expense	(120)	800	1,279
Write-offs, net of recoveries	88	(632)	(317)
Balance, end of period	$ (706)	$ (674)	$ (842)

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CAPITAL STOCK

12 Months Ended

Dec. 31, 2012

CAPITAL STOCK

18. CAPITAL STOCK

Authorized Capital Stock

In accordance with our Amended and Restated Articles of Incorporation dated November 4, 2003, the Company is authorized to issue 50 million shares of capital stock, which includes 49 million shares of no par value common stock and 1 million shares of no par value preferred stock.

Our ABL Facility and indenture governing the 2018 Notes contain restrictions on QDI’s ability to pay dividends on its common stock.

Preferred Stock

Of the 1 million shares of preferred stock authorized, 600,000 shares were designated as convertible preferred stock, of which 510,000 were issued and outstanding prior to the initial public offering of shares of our common stock, when they were converted into shares of common stock pursuant to our Amended and Restated Articles of Incorporation. The remaining shares of preferred stock may be issued from time to time in one or more classes or series, with such relative rights, preferences, qualifications, and limitations as our Board of Directors may adopt by resolution.

March 2012 Common Stock Offering

On March 13, 2012, we sold 2.5 million shares of our common stock in an underwritten public offering, at a gross price of $13.00 per share, and received net proceeds, after underwriting fees and expenses, of approximately $30.5 million. Certain affiliates of Apollo Management, L.P. also sold 3.2 million shares in the offering.

February 2011 Common Stock Offering

On February 9, 2011, we sold 2.0 million shares of our common stock in an underwritten public offering, at a gross price of $9.50 per share, and received net proceeds, after underwriting fees and expenses, of approximately $17.6 million. Certain affiliates of Apollo Management, L.P. also sold 2.6 million shares in the offering.

Warrants

On October 15, 2009 in conjunction with the issuance of our 2013 PIK Notes, we issued 1,752,895 aggregate amount of warrants to purchase shares of the Company’s common stock at an exercise price of $0.01 per share. The warrants are exercisable during the period beginning April 16, 2010 and ending November 1, 2013. The warrants were accounted for at their fair value on October 15, 2009, which is based on the closing price of our common stock on that date. Approximately $6.7 million representing the fair value of the warrants was recorded to stock purchase warrants within shareholders’ deficit, with a corresponding discount on the 2013 PIK Notes. The discount was being amortized over the term of the 2013 PIK Notes until July 2011 when the remaining unamortized discount was written-off in conjunction with the final redemption of the 2013 PIK Notes. As of December 31, 2012, we had warrants outstanding of less than $0.1 million representing approximately 8,680 shares of our common stock. As of December 31, 2011, we had warrants outstanding of approximately $1.3 million representing approximately 354,000 shares of our common stock.

Treasury Stock

As of December 31, 2012 and 2011, we had approximately 879,000 and 267,000 treasury shares, respectively, carried at a cost of approximately $5.8 million and $1.9 million, respectively. These shares were acquired pursuant to our initial public offering, our publicly announced share repurchase program, the return of shares under limited recourse secured loans to shareholders, forfeitures and share withholdings.

Share Repurchase Program

On November 20, 2012, we announced a share repurchase program pursuant to which our Board of Directors authorized the repurchase of up to $15.0 million of our common stock in an open-ended repurchase program (the “Repurchase Program”). The Repurchase Program does not have an expiration date. Stock has been, and may in the future be, purchased pursuant to the Repurchase Program, from time to time, in the open market or through private transactions, subject to market conditions. Subject to applicable laws, repurchases under the Repurchase Program may be made at such times and in such amounts as we deem appropriate and may be made pursuant to Rule 10b5-1. We are not obligated to purchase any shares under the Repurchase Program and it can be discontinued at any time that we feel additional purchases are not warranted. As of December 31, 2012, we have repurchased approximately 0.6 million shares valued at $3.7 million under the Repurchase Program.

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Estimated Useful Lives of Assets (Detail)	12 Months Ended
	Dec. 31, 2012
Minimum | Building and improvements
Property, Plant and Equipment [Line Items]
Average Lives (in years)	10 years
Minimum | Tractors and terminal equipment
Property, Plant and Equipment [Line Items]
Average Lives (in years)	5 years
Minimum | Trailers
Property, Plant and Equipment [Line Items]
Average Lives (in years)	15 years
Minimum | Energy market equipment
Property, Plant and Equipment [Line Items]
Average Lives (in years)	4 years
Minimum | Disposal wells
Property, Plant and Equipment [Line Items]
Average Lives (in years)	5 years
Minimum | Furniture and fixtures
Property, Plant and Equipment [Line Items]
Average Lives (in years)	3 years
Minimum | Other equipment
Property, Plant and Equipment [Line Items]
Average Lives (in years)	3 years
Maximum | Building and improvements
Property, Plant and Equipment [Line Items]
Average Lives (in years)	25 years
Maximum | Tractors and terminal equipment
Property, Plant and Equipment [Line Items]
Average Lives (in years)	7 years
Maximum | Trailers
Property, Plant and Equipment [Line Items]
Average Lives (in years)	20 years
Maximum | Energy market equipment
Property, Plant and Equipment [Line Items]
Average Lives (in years)	15 years
Maximum | Disposal wells
Property, Plant and Equipment [Line Items]
Average Lives (in years)	15 years
Maximum | Furniture and fixtures
Property, Plant and Equipment [Line Items]
Average Lives (in years)	5 years
Maximum | Other equipment
Property, Plant and Equipment [Line Items]
Average Lives (in years)	10 years

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ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Tables)

12 Months Ended

Dec. 31, 2012

Accrued Expenses

Accrued expenses include the following at December 31 (in thousands):

	2012		2011
Salaries, wages and benefits	$	4,783	$	5,519
Accrued interest		4,561		4,184
Claims and deposits		3,896		4,538
Taxes		1,191		2,185
Lease residual guarantees		6,759		1,807
Acquisition related earnouts		8,800		—
Other		7,899		7,094
	$	37,889	$	25,327

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Goodwill and Related Changes (Parenthetical) (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2012
Intangible Assets Goodwill And Other Assets [Line Items]
Goodwill additions	$ 72,884
Energy Logistics
Intangible Assets Goodwill And Other Assets [Line Items]
Goodwill additions	71,339	[1]
Affiliate Acquisition | Energy Logistics
Intangible Assets Goodwill And Other Assets [Line Items]
Goodwill additions	1,700
Trojan Acquisition | Energy Logistics
Intangible Assets Goodwill And Other Assets [Line Items]
Goodwill additions	1,100
Bice And Rm Acquisition | Energy Logistics
Intangible Assets Goodwill And Other Assets [Line Items]
Goodwill additions	48,200
Dunn's | Energy Logistics
Intangible Assets Goodwill And Other Assets [Line Items]
Goodwill additions	$ 20,300

[1] Of the total additions of $71.3 million, $1.7 million related to an independent affiliate acquisition, $1.1 million related to the Trojan acquisition, $48.2 million related to the Bice acquisition and $20.3 million related to the Dunn's acquisition.

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Change in Projected Benefit Obligation, Change in Plan Assets and Unfunded Status (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Unfunded Status of Plans
Projected benefit obligation	$ (52,637)	$ (51,557)	$ (48,630)
Fair value of plan assets	31,560	28,912	29,947
Unfunded status as of December 31,	(21,077)	(22,645)
Change in Projected Benefit Obligation
Projected benefit obligation	51,557	48,630
Settlement	(1,813)
Service cost	166	176	203
Interest cost	2,102	2,420	2,575
Actuarial loss	3,827	3,785
Benefits and expenses paid	(3,202)	(3,454)
Projected benefit obligation	52,637	51,557	48,630
Change in Plan Assets
Fair value of plan assets	28,912	29,947
Settlement	(709)
Actual return (loss) on plan assets	2,916	(400)
Contributions by Company	3,643	2,819
Benefits and expenses paid	(3,202)	(3,454)
Fair value of plan assets	$ 31,560	$ 28,912	$ 29,947

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SEGMENT REPORTING (Tables)

12 Months Ended

Dec. 31, 2012

Summarized Segment Data and Reconciliation to Operating Income

Summarized segment data and a reconciliation to operating income for the years ended December 31 follows (in thousands):

	December 31, 2012
	Chemical Logistics			Energy Logistics		Intermodal			Total
Operating Revenues:
Transportation	$	423,077		$	105,679	$	68,650		$	597,406
Service revenue		67,632			8,461		45,008			121,101
Fuel surcharge		105,767			926		16,918			123,611
Total operating revenues		596,476			115,066		130,576			842,118
Segment operating income		37,809			12,177		19,259			69,245
Depreciation and amortization		11,293			6,310		3,487			21,090
Other (income) expense, net		(1,327	)		391		(52	)		(988	)
Operating income	$	27,843		$	5,476	$	15,824		$	49,143

	December 31, 2011
	Chemical Logistics			Energy Logistics		Intermodal			Total
Operating Revenues:
Transportation	$	429,769		$	29,432	$	58,579		$	517,780
Service revenue		67,414			1,006		42,168			110,588
Fuel surcharge		103,487			64		14,032			117,583
Total operating revenues		600,670			30,502		114,779			745,951
Segment operating income		48,444			3,081		18,728			70,253
Depreciation and amortization		10,418			785		3,210			14,413
Other (income) expense, net		(1,684	)		—		(155	)		(1,839	)
Operating income	$	39,710		$	2,296	$	15,673		$	57,679

	December 31, 2010
	Chemical Logistics		Energy Logistics		Intermodal		Total
Operating Revenues:
Transportation	$	442,576	$	—	$	55,870	$	498,446
Service revenue		70,470		—		37,004		107,474
Fuel surcharge		72,053		—		8,625		80,678
Total operating revenues		585,099		—		101,499		686,598
Segment operating income		44,791		—		16,863		61,654
Depreciation and amortization		13,033		—		2,971		16,004
Other expense (income), net		8,901		—		14		8,915
Operating income	$	22,857	$	—	$	13,878	$	36,735

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Components of Service Revenue (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Significant Accounting Policies [Line Items]
Rental revenue	$ 53,044	$ 50,726	$ 53,911
Intermodal and depot revenues	45,008	42,169	37,004
Other revenue	23,049	17,693	16,559
Service revenue	$ 121,101	$ 110,588	$ 107,474

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Segment Reporting - Additional Information (Detail) (Chemical Logistics)	9 Months Ended
	Dec. 31, 2012 Entity
Chemical Logistics
Segment Reporting Information [Line Items]
Independent affiliates	25

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Two Thousand Three Restricted Stock Incentive Plan Activity (Detail) (Two Thousand Three Restricted Stock Incentive Plan, USD $) In Thousands, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Two Thousand Three Restricted Stock Incentive Plan
Number of Shares Outstanding
Beginning Balance	335	479
Granted	152	93
Vested	(263)	(220)
Canceled	(5)	(17)
Ending Balance	219	335
Weighted Average Grant Date Fair Value Per Share
Beginning Balance	$ 5.22	$ 3.90
Granted	$ 12.67	$ 9.39
Vested	$ 6.17	$ 4.12
Canceled	$ 8.84	$ 4.93
Ending Balance	$ 9.19	$ 5.22
Aggregate intrinsic value
Restricted stock unvested at December 31, 2011	$ 1,312	$ 3,766

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Pro Forma Consolidated Results (Detail) (Unaudited pro forma, USD $) In Thousands, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2012		Dec. 31, 2011
Unaudited pro forma
Operating revenues	$ 890,155		$ 851,599
Net income	$ 54,614	[1]	$ 28,505	[1]
Income per common share-basic	$ 2.06		$ 1.19
Income per common share-diluted	$ 2.01		$ 1.13

[1] Includes release of $35.3 million in the aggregate of our deferred tax valuation allowance.

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COMMITMENTS AND CONTINGENCIES (Tables)

12 Months Ended

Dec. 31, 2012

Future Noncancelable Lease Commitments

Future noncancelable lease commitments (excluding any sublease income) as of December 31, 2012, are as follows (in thousands):

2013	$	21,877
2014		19,976
2015		19,135
2016		19,288
2017		16,017
Thereafter		2,985
Total	$	99,278

Commitment and Contingencies

business or financial condition. As of December 31, 2012 and 2011, we had reserves in the amount of $9.0 million and $10.1 million, respectively, for all environmental matters, of which the most significant are presented and discussed below.

	Number of Sites				Reserves (in millions)
	December 31, 2012		December 31, 2011		December 31, 2012		December 31, 2011
Multi-party sites		15		18	$	1.7	$	2.2
Sole party sites:
Bridgeport, New Jersey		1		1		4.8		5.3
William Dick, Pennsylvania		1		1		0.7		0.9
Other Properties		6		6		1.8		1.7
Total		23		26	$	9.0	$	10.1

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SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2012

SIGNIFICANT ACCOUNTING POLICIES

2. SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

These consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States using U.S. dollars as the reporting currency as the majority of our business is in the U.S. The consolidated financial statements include the accounts of QDI and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. The redeemable noncontrolling interest of the outstanding preferred stock of Chemical Leaman Corp. (“CLC”), a wholly-owned subsidiary of QDI, was fully redeemed in 2011.

Cash and Cash Equivalents

We consider all highly liquid investments with original maturities of three months or less to be cash equivalents. The Company has a restricted cash balance of $0.8 million at December 31, 2012 used to guarantee an environmental matter. Book overdrafts are included in accounts payable.

Reclassification

Certain prior period amounts have been reclassified amongst operating expense line items to conform to the current year presentation.

Allowance for Uncollectible Receivables

We have established a reserve for uncollectible receivables based on a combination of historical data, cash payment trends, specific customer issues, write-off trends, general economic conditions and other factors. We charge uncollectible amounts to our allowance based on various issues, including cash payment trends and specific customer issues. These factors are continuously monitored by our management to arrive at the estimate for the amount of accounts receivable that may be ultimately uncollectible. The receivables analyzed include trade receivables, as well as loans and advances made to independent affiliates and independent owner-operators.

Tires

We capitalize the cost of tires mounted on tractors and trailers that we acquire as a part of the total equipment cost and depreciate the cost over the useful life of the related equipment. Subsequent replacement tires are expensed at the time those tires are placed in service similar to other repairs and maintenance costs.

Property and equipment

Property and equipment expenditures, including tractor and trailer rebuilds that extend the useful lives of such equipment, are capitalized and recorded at cost. For financial statement purposes, these assets are depreciated using the straight-line method over the estimated useful lives of the assets to an estimated salvage value.

The asset lives used are presented in the following table:

	Average Lives (in years)
Buildings and improvements	10 - 25
Tractors and terminal equipment	5 - 7
Trailers	15 - 20
Energy logistics equipment	4 - 15
Disposal wells	5 - 15
Furniture and fixtures	3 - 5
Other equipment	3 - 10

Building improvements are recorded at the shorter of the lease term or useful life. Tractor and trailer rebuilds, which are recurring in nature and extend the lives of the related assets, are capitalized and depreciated over the period of extension, generally 3 to 10 years, based on the type and extent of these rebuilds. Maintenance and repairs are charged directly to expense as incurred. Management estimates the useful lives of these assets based on historical trends and the age of the assets when placed in service. Any changes in the actual lives could result in material changes in the net book value of these assets. Additionally, we estimate the salvage values of these assets based on historical sales or disposals, and any changes in the actual salvage values could also affect the net book value of these assets.

Furthermore, we evaluate the recoverability of our long-lived assets whenever adverse events or changes in the business climate indicate that the expected undiscounted future cash flows from the related asset may be less than previously anticipated. If the net book value of the related asset exceeds the undiscounted future cash flows of the asset, the carrying amount would be reduced to the present value of its expected future cash flows and an impairment loss would be recognized. This analysis requires us to make significant estimates and assumptions in projecting future cash flows, and changes in facts and circumstances could result in material changes in the amount of any write-offs for impairment.

Goodwill and Intangible Assets

We evaluate goodwill and indefinite-lived intangible assets for impairment at least annually during the second quarter with a measurement date of June 30, and more frequently if indicators of impairment arise, in accordance with Financial Accounting Standards Board (“FASB”) guidance on goodwill and other intangible assets. We evaluate goodwill for impairment by determining the fair value for each reporting unit to which our goodwill relates. At December 31, 2012, our energy logistics, intermodal and chemical logistics segments contain goodwill and other identifiable intangible assets associated with past and recent acquisitions.

The methodology applied in the analysis performed at June 30, 2012 was consistent with the methodology applied in prior years, but was based on updated assumptions, as appropriate. As a result of our analysis, we concluded no impairment had occurred as of June 30, 2012, 2011 and 2010. We continued to evaluate indicators of impairment quarterly following our annual goodwill impairment test at June 30, 2012 through December 31, 2012. There were no indications that a triggering event has occurred. As of December 31, 2012, we had total goodwill of $104.3 million, of which $71.3 million was allocated to our energy logistics segment, $31.4 million was allocated to our intermodal segment and $1.6 million was allocated to our chemical logistics segment. As of December 31, 2012, we had total intangibles of $37.7 million, of which $20.9 million was allocated to our energy logistics segment, $16.6 million was allocated to our intermodal segment and $0.2 million was allocated to our chemical logistics segment.

Goodwill

Under the FASB guidance, the process of evaluating the potential impairment of goodwill involves a two-step process and requires significant judgment at many points during the analysis. In the first step, we determine whether there is an indication of impairment by comparing the fair value of a reporting unit to its carrying amount, including goodwill. If, based on the first step, we determine that there is an indication of goodwill impairment, we assess the impairment in step two in accordance with the FASB guidance.

In the first step, we determine the fair value for each reporting unit using a combination of two valuation approaches: the market approach and the income approach. The market approach uses a guideline company methodology which is based upon a comparison of each reporting unit to similar publicly-traded companies within our industry. We derive a market value of invested capital or business enterprise value for each comparable company by multiplying the price per share of common stock of the publicly traded companies by their total common shares outstanding and adding each company’s current level of debt. We calculate a business enterprise multiple based on revenue and earnings from each company, then apply those multiples to each reporting unit’s revenue and earnings to conclude a reporting unit business enterprise value. Assumptions regarding the selection of comparable companies are made based on, among other factors, capital structure, operating environment and industry. As the comparable companies were typically larger and more diversified than our reporting units, multiples were adjusted prior to application to our reporting units’ revenues and earnings to reflect differences in margins, long-term growth prospects and market capitalization.

The income approach uses a discounted debt-free cash flow analysis to measure fair value by estimating the present value of future economic benefits. To perform the discounted debt-free cash flow analysis, we develop a pro forma analysis of each reporting unit to estimate future available debt-free cash flow and discounting estimated debt-free cash flow by an estimated industry weighted average cost of capital based on the same comparable companies used in the market approach. Per the FASB guidance, the weighted average cost of capital is based on inputs (e.g., capital structure, risk, etc.) from a market participant’s perspective and not necessarily from the reporting unit or QDI’s perspective. Future cash flow is projected based on assumptions for our economic growth, industry expansion, future operations and the discount rate, all of which require significant judgments by management.

After computing a separate business enterprise value under the income approach and market approach, we apply a weighting to them to derive the business enterprise value of the reporting unit. The income approach and market approach were both weighted 50% in the analysis performed at June 30, 2012. The weightings are evaluated each time a goodwill impairment assessment is performed and give consideration to the relative reliability of each approach at that time. Given that the business enterprise value derived from the market approach supported what was calculated in the income approach, we believed that both approaches should be equally weighted. Based on these weightings, we calculated a business enterprise value for the reporting unit. We then add debt-free liabilities of the reporting unit to the calculated business enterprise value to derive an implied fair value of the reporting unit. The implied fair value is then compared to the reporting unit’s carrying value. Upon completion of the analysis in step one, we determined that the fair value of both our energy logistics and intermodal reporting units exceeded its respective carrying value. As such, a step two analysis was not required.

Intangible assets

To determine the implied fair value of our indefinite-lived intangible assets, we utilize the relief from royalty method, pursuant to which those assets are valued by reference to the amount of royalty income they would generate if licensed in an arm’s length transaction. Under the relief from royalty method, similar to the discounted cash flow method, estimated net revenues expected to be generated by the asset during its life are multiplied by a benchmark royalty rate and then discounted by the estimated weighted average cost of capital associated with the asset. The resulting capitalized royalty stream is an indication of the value of owning the asset. Based upon management’s review of the value of the indefinite-lived intangible assets in our intermodal segment, we determined that the implied fair value exceeded its carrying value.

If there are changes to the methods used to allocate carrying values, if management’s estimates of future operating results change, if there are changes in the identified reporting units or if there are changes to other significant assumptions, the estimated carrying values for each reporting unit and the estimated fair value of our goodwill could change significantly, and could result in future impairment charges, which could materially impact our results of operations and financial condition.

Other Assets—Deferred Loan Costs

Costs incurred to issue debt are deferred and amortized as a component of interest expense over the estimated term of the related debt using the straight-line method.

Taxation

We use the asset and liability method of accounting for income taxes. If, on the basis of available evidence, it is more likely than not that all or a portion of the deferred tax asset will not be realized, the asset must be reduced by a valuation allowance. Any change in the actual future results of operations could impact the valuation of the net deferred tax asset.

During 2012, we recorded a deferred tax benefit of $28.1 million of which $35.3 related to a prior year valuation allowance release. These releases of the valuation allowance are a result of our consistent cumulative income position, improved operating results, and recent expansion of our energy business through acquisition. Our assessment of the recoverability of the deferred tax assets primarily relied on the positive evidence related to our cumulative income position. We have determined that it is more likely than not that expected future taxable income will be sufficient to utilize substantially all of our U.S. federal and state net deferred tax assets. We will continue to maintain a valuation allowance against our net deferred tax asset related to foreign tax credits to the extent sufficient positive evidence does not exist to support their utilization. Changes in deferred tax assets and valuation allowance are reflected in the (benefit from) provision for income taxes in our consolidated statements of operations.

Under FASB guidance, we account for uncertain tax positions using a two-step process. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step requires us to estimate and measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. It is inherently difficult and subjective to estimate such amounts, as we have to determine the probability of various possible outcomes. We re-evaluate these uncertain tax positions on a quarterly basis. This evaluation is based on factors including, but not limited to, changes in facts or circumstances, changes in tax law, effectively settled issues under audit, and new audit activity. Such a change in recognition or measurement would result in the recognition of a tax benefit or an additional charge to the tax provision.

Environmental liabilities

We have reserved for potential environmental liabilities based on the best estimates of potential clean-up and remediation for known environmental sites. We employ a staff of environmental professionals to administer all phases of our environmental programs and use outside experts where needed. These professionals develop estimates of potential liabilities at these sites based on projected and known remediation costs. These cost projections are determined through previous experiences with other sites and through bids from third-party contractors. Management believes current reserves are reasonable based on current information, but estimates of environmental reserves and exposures may be affected by information subsequently received.

Accrued Loss and Damage Claims

We currently maintain liability insurance for bodily injury and property damage claims, covering all employees, independent owner-operators and independent affiliates, and workers’ compensation insurance coverage on our employees and company drivers. This insurance includes deductibles of $2.0 million per incident for bodily injury and property damage and $1.0 million for workers’ compensation. As such, we are subject to liability as a self-insurer to the extent of these deductibles under various policies. We are self-insured for damage to the equipment we own or lease and for cargo losses. As of December 31, 2012, we had $20.0 million in an outstanding letter of credit to our insurance company to guarantee the self-insurance portion of our liability. If we fail to meet certain terms of our agreement, the insurance company may draw down the letter of credit. In developing liability reserves, we rely on insurance company estimates, the judgment of our own licensed claims adjusters, and independent professional actuaries and attorneys. The most significant assumptions used in the estimation process include determining the trends in loss costs, the expected consistency in the frequency and severity of claims incurred but not yet reported to prior-year claims, and expected costs to settle unpaid claims. Management believes reserves are reasonable given known information, but as each case develops, estimates may change to reflect the effect of new information.

Redeemable Noncontrolling Interest

Shares of Series C preferred stock of our subsidiary, CLC, were held by two shareholders that were affiliated with us. These shareholders were entitled to dividends on each of their shares of Series C preferred stock, payable quarterly, at a rate of 8.0% (or $480 per preferred share) per annum. On March 3, 2011, we redeemed all 302 shares for $1.8 million plus accrued dividends through the redemption date.

Foreign Currency Translation

The translation from Canadian dollars to U.S. dollars is performed for balance sheet accounts using exchange rates in effect at the balance sheet date and for revenue and expense accounts using a weighted-average exchange rate in effect during the period. The gains or losses, net of income taxes, resulting from such translation are included in shareholders’ deficit as a component of accumulated other comprehensive loss. Gains or losses from foreign currency transactions are included in other expense.

Accumulated Other Comprehensive Loss

The components of accumulated other comprehensive loss are as follows as of December 31 (in thousands):

	2012		2011
Unrecognized loss and prior service costs	$	30,572	$	30,244
Foreign currency translation adjustment		1,180		1,137
	$	31,752	$	31,381

Revenue Recognition

Transportation revenue, including fuel surcharges and related costs, is recognized on the date freight is delivered. Service revenue consists primarily of rental revenues (primarily tractor and trailer rental), intermodal and depot revenues, disposal well services revenue, tank wash revenues and insurance related administrative services. Rental revenues from independent affiliates, independent owner-operators and third parties are recognized ratably over the lease period. Intermodal and depot revenues, consisting primarily of repair and storage services, are recognized when the services are rendered. Disposal well services revenue are recognized when the services are rendered. Insurance related administrative service revenues are recorded ratably over the service period. We recognize all revenues on a gross basis as the principal and primary obligor with risk of loss in relation to our responsibility for completion of services as contracted with our customers.

Service Revenue

The components of service revenue are as follows for the year ended December 31 (in thousands):

	2012		2011		2010
Rental revenue	$	53,044	$	50,726	$	53,911
Intermodal and depot revenues		45,008		42,169		37,004
Other revenue		23,049		17,693		16,559
	$	121,101	$	110,588	$	107,474

Share-Based Compensation

Under the FASB guidance, we apply the Black-Scholes valuation model in determining the fair value of share-based payments to employees and directors. The resulting compensation expense is recognized over the requisite service period, which is generally the option vesting term of two to four years. Please refer to Note 19 for further discussion regarding stock-based compensation.

Leased Assets

We have both capital and operating leases. The initial leases for most of our tractors and trailers have terms that range from four to six years. Some leases require us to pay the lessor a minimum residual amount at the end of the lease. For operating leases, we accrue this residual by recording a prepaid rent amount and amortizing a monthly amount as rental expense and also record a liability that is increased every year by recognizing interest expense. This residual amount is recorded in the balance sheet category “Other non-current liabilities.” For capital leases, the residual is included as part of the cost of the capitalized leased asset.

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Net Income (Loss) Per Common Share

Basic net income (loss) per common share is calculated based on the weighted-average common shares outstanding during each period. Diluted income (loss) per common share includes the dilutive effect, if any, of common equivalent shares outstanding during each period.

New Accounting Pronouncements

In February 2013, the Financial Accounting Standards Board (“FASB”) issued an accounting pronouncement related to accumulated other comprehensive income (“AOCI”). Under this standard, entities will be required to disclose additional information with respect to changes in AOCI balances by component and significant items reclassified out of AOCI. Expanded disclosures for presentation of changes in AOCI involve disaggregating the total change of each component of other comprehensive income as well as presenting separately for each such component the portion of the change in AOCI related to (1) amounts reclassified into income and (2) current-period other comprehensive income. The disclosures required with respect to income statement line item impacts would be made in either the notes to the consolidated financial statements or parenthetically on the face of the financial statements. This standard is effective beginning January 1, 2013. The adoption of this standard will not have a material impact on our consolidated financial statements.

In July 2012, the FASB issued an accounting pronouncement related to intangibles—goodwill and other, which permits companies to first consider qualitative factors as a basis for assessing impairment and determining the necessity of a detailed impairment test of indefinite-lived intangible assets. The provisions for this pronouncement are effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. We do not expect the adoption of this pronouncement to have a material effect on our consolidated financial statements.

In May 2011, the FASB issued amended guidance on fair value measurement. This guidance clarifies how to measure fair value and is largely consistent with existing fair value measurement principles. It also expands existing disclosure requirements for fair value measurements. We adopted this amendment for the year ended December 31, 2012. The adoption of this amended guidance to expand our footnote disclosures in the consolidated financial statements did not have a material impact on our consolidated financial statements.

In September 2011, the FASB issued additional amendments to the guidance on goodwill testing for impairment by permitting an entity to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. We adopted this amendment for the year ended December 31, 2012. The adoption of this amendment did not have a material impact on the Company’s financial position, results of operations or cash flows.

In December 2011, the FASB issued additional guidance on comprehensive income. This accounting update defers changes that relate to the presentation of reclassification adjustments out of accumulated other comprehensive income. We adopted this amendment for the year ended December 31, 2012. The adoption of this guidance did not have a material effect on the Company’s consolidated financial statements.

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Commitment and Contingencies - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2012 Site Location	Dec. 31, 2011 Location	Dec. 31, 2010
Commitments and Contingencies [Line Items]
Rent expense under operating leases	$ 23.2	$ 13.3	$ 16.8
Reserves	9.0	10.1
Number of Sites	23	26
Multi-party sites
Commitments and Contingencies [Line Items]
Reserves	1.7	2.2
Future expenditure for environmental matters	5 years
Number of Sites	15	18
Number of Sites with alleged liability	15
Participating party in the initial study	1
Explicitly Denied liabilities	15
Multi-party sites | Minimum
Commitments and Contingencies [Line Items]
Estimated future expenditure	1.7
Multi-party sites | Maximum
Commitments and Contingencies [Line Items]
Estimated future expenditure	3.8
Sole party sites
Commitments and Contingencies [Line Items]
Reserves	7.3
Period of future expenditure	5 years
Responsible Party for the process of conducting investigation	8
Sole party sites | Minimum
Commitments and Contingencies [Line Items]
Estimated future expenditure	7.3
Sole party sites | Maximum
Commitments and Contingencies [Line Items]
Estimated future expenditure	16.7
Bridgeport, New Jersey
Commitments and Contingencies [Line Items]
Reserves	4.8
Future expenditure for environmental matters	5 years
Bridgeport, New Jersey | Minimum
Commitments and Contingencies [Line Items]
Estimated future expenditure	4.8
Bridgeport, New Jersey | Maximum
Commitments and Contingencies [Line Items]
Estimated future expenditure	8.5
William Dick, Pennsylvania
Commitments and Contingencies [Line Items]
Reserves	0.7
Future expenditure for environmental matters	5 years
William Dick, Pennsylvania | Minimum
Commitments and Contingencies [Line Items]
Estimated future expenditure	0.7
William Dick, Pennsylvania | Maximum
Commitments and Contingencies [Line Items]
Estimated future expenditure	3.4
ISRA New Jersey Facilities
Commitments and Contingencies [Line Items]
Reserves	1.8
Future expenditure for environmental matters	5 years
ISRA New Jersey Facilities | Minimum
Commitments and Contingencies [Line Items]
Estimated future expenditure	1.8
ISRA New Jersey Facilities | Maximum
Commitments and Contingencies [Line Items]
Estimated future expenditure	4.8
Environmental Matters
Commitments and Contingencies [Line Items]
Reserves	$ 9.0	$ 10.1
Future expenditure for environmental matters	5 years

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Pro Forma Consolidated Results (Parenthetical) (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended	12 Months Ended
	Jun. 30, 2012	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Deferred tax valuation allowance	$ 35,300	$ 35,282	$ 8,500	$ (2,792)
Unaudited pro forma
Deferred tax valuation allowance		$ 35,300

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LONG-TERM INDEBTEDNESS (Tables)

12 Months Ended

Dec. 31, 2012

Long Term Debt

Long-term debt consisted of the following at December 31 (in thousands):

	2012			2011
Capital lease obligations	$	6,038		$	9,101
ABL Facility		161,200			65,500
9.875% Second-Priority Senior Secured Notes, due 2018		225,000			225,000
5% Subordinated Acquisition Notes		21,300			—
Other Notes		6,533			8,943
Long-term debt, including current maturities		420,071			308,544
Discount on Notes		(1,265	)		(1,481	)
		418,806			307,063
Less current maturities of long-term debt (including capital lease obligations)		(7,831	)		(9,400	)
Long-term debt, less current maturities (including capital lease obligations)	$	410,975		$	297,663

Redemption Prices of 2018 Notes

On or after November 1, 2014, we may redeem the 2018 Notes, in whole or in part, at the following prices (expressed as a percentage of principal amount), plus accrued and unpaid interest to the redemption date, if redeemed during the 12-month period commencing on November 1 of the years set forth below:

Period	Redemption Price
2014		104.938	%
2015		102.469	%
2016 and thereafter		100.000	%

Payment of Debts

The following is a schedule of our total indebtedness outstanding at December 31, 2012 over the periods we are required to pay such indebtedness (in thousands):

	2013		2014		2015		2016		2017		Thereafter		Total
Capital lease obligations	$	3,912	$	1,610	$	333	$	106	$	77		—	$	6,038
ABL Facility		—		—		—		161,200		—		—		161,200
9.875% Second-Priority Senior Secured Notes, due 2018 (1)		—		—		—		—		—		225,000		225,000
5% Subordinated Acquisition Notes		—		—		—		—		21,300		—		21,300
Other Notes		3,919		1,265		1,084		265		—		—		6,533
Total	$	7,831	$	2,875	$	1,417	$	161,571	$	21,377		225,000	$	420,071

(1) Amount does not include the remaining unamortized original issue discount of approximately $1.3 million related to the 2018 Notes.

Schedule of Debt Issuance Cost

The following is a schedule of our debt issuance costs for the year ended (in thousands):

	December 31, 2011		Additional Debt Issuance Costs		2012 Amortization Expense			December 31, 2012
ABL Facility	$	5,094	$	989	$	(1,238	)	$	4,845
9.875% Second-Priority Senior Secured Notes, due 2018		5,560		—		(895	)		4,665
Total	$	10,654	$	989	$	(2,133	)	$	9,510

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GUARANTOR SUBSIDIARIES

12 Months Ended

Dec. 31, 2012

GUARANTOR SUBSIDIARIES

22. GUARANTOR SUBSIDIARIES

At and during the year ended December 31, 2012, there were outstanding 2018 Notes that were issued by our subsidiaries, QD LLC and QD Capital. The payment obligations of QD LLC and QD Capital under the 2018 Notes are guaranteed by QDI and by all of its domestic subsidiaries other than immaterial subsidiaries as further described below.

The 2018 Notes are the senior obligations of our subsidiaries, QD LLC and QD Capital, and are secured by a subordinated, second-priority lien on assets that secure our ABL Facility through a collateral agreement that is separate from the indenture under which these notes were issued. Pursuant to an intercreditor agreement, the liens on the collateral securing the 2018 Notes rank junior in right of payment to the ABL Facility and obligations under certain hedging agreements and cash management obligations and certain other first-lien obligations. Decisions regarding the maintenance and release of the collateral secured by the collateral agreement are made by the lenders under our ABL Facility and neither the indenture trustee nor the holders of the 2018 Notes have control of decisions regarding the release of the collateral.

The 2018 Notes are also guaranteed on a second-priority senior secured basis, jointly and severally, by QDI, subsidiary guarantors, and certain of our future U.S. restricted subsidiaries. The guarantees of the subsidiary guarantors are full and unconditional subject to customary release provisions for sales of a subsidiary in compliance with other provisions of the indenture for the 2018 Notes (the “Notes Indenture”), foreclosures of a pledge of the equity interests of the subsidiary, the right to designate a subsidiary as unrestricted under the terms of the Notes Indenture, the discharge of the 2018 Notes or the defeasance of the Notes Indenture. The guarantee of QDI is full and unconditional.

The subsidiary guarantors of all of the 2018 Notes are all of our direct and indirect domestic subsidiaries other than immaterial subsidiaries. No non-domestic subsidiaries are guarantor subsidiaries. QD Capital has no material assets or operations. QD LLC, all of the subsidiary guarantors and QD Capital are 100% owned by QDI. The subsidiary guarantors are 100% owned subsidiaries of QD LLC. QD LLC conducts substantially all of its business through and derives virtually all of its income from its subsidiaries. Therefore, its ability to make required principal and interest payments with respect to its indebtedness depends on the earnings of subsidiaries and its ability to receive funds from its subsidiaries through dividend and other payments.

QDI has no significant restrictions on its ability to receive funds from its subsidiaries. The ABL Facility and the indenture governing our 2018 Notes contain certain limitations on QD LLC’s ability to make distributions to QDI. We do not consider these restrictions to be significant, because QDI is a holding company with no significant operations or assets, other than ownership of 100% of QD LLC’s membership units. QD LLC’s direct and indirect wholly owned subsidiaries are generally permitted to make distributions to QD LLC, which is the principal obligor under the ABL Facility and the 2018 Notes. We do not believe that additional financial or narrative information about QDI, QD LLC, QD Capital or the subsidiary guarantors would be material to evaluating the guarantees.

The following condensed consolidating financial information for QDI, QD LLC, and QD Capital, which has no assets or operations, non-guarantor subsidiaries and combined guarantor subsidiaries presents:

• Condensed consolidating balance sheets at December 31, 2012 and December 31, 2011 and condensed consolidating statements of operations for the years ended December 31, 2012 and 2011, and the condensed consolidating statements of cash flows for each of the years ended December 31, 2012 and 2011.

• Elimination entries necessary to consolidate the parent company and all its subsidiaries.

The Company revised its condensed consolidating Balance Sheet for the year ended December 31, 2011 to correct the presentation of inter-company balances from net to gross amounts within current and long-term assets and liabilities, respectively. The revision was made to appropriately reflect intercompany balances for QDI, QD LLC and QD Capital, the Guarantor subsidiaries and Non-Guarantor subsidiaries as of December 31, 2011. This revision, which the Company determined is not material, and had no impact on the consolidated financial statements or footnotes, except for the QDI, QD LLC and QD Capital, the Guarantor subsidiaries and Non-Guarantor subsidiaries columns of the condensed consolidating balance sheet as of December 31, 2011.

The Company further revised its condensed consolidated balance sheet for the year ended December 31, 2011 to correct the presentation of investment in subsidiaries in the Guarantor subsidiaries column. The correction reclassifies the balance of approximately $28.0 million from Investment in subsidiary into noncurrent intercompany receivable. This revision, which the Company determined is not material, had no impact on the consolidated financial statements or footnotes other than the Guarantor subsidiaries column of the condensed consolidating balance sheet as of December 31, 2011.

Condensed Consolidating Statement of Operations

For the Year Ended December 31, 2012

(in thousands)

	QDI			QD LLC & QD Capital			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Operating revenues:
Transportation	$	—		$	—		$	597,406		$	—		$	—		$	597,406
Service revenue		—			—			120,698			403			—			121,101
Fuel surcharge		—			—			123,611			—			—			123,611
Total operating revenues		—			—			841,715			403			—			842,118
Operating expenses:
Purchased transportation		—			—			552,524			—			—			552,524
Compensation		—			—			82,143			—			—			82,143
Fuel, supplies and maintenance		—			—			82,033			—			—			82,033
Depreciation and amortization		—			—			21,090			—			—			21,090
Selling and administrative		—			39			33,758			85			—			33,882
Insurance costs		—			—			15,821			9			—			15,830
Taxes and licenses		—			—			2,825			—			—			2,825
Communication and utilities		—			—			3,636			—			—			3,636
Gain on disposal of property and equipment		—			—			(846	)		(142	)		—			(988	)
Operating (loss) income		—			(39	)		48,731			451			—			49,143
Interest expense (income), non-related party, net		—			28,490			782			(14	)		—			29,258
Interest (income) expense, related party, net		—			(28,490	)		28,905			(415	)		—			—
Other expense		—			—			(2,849	)		(15	)		—			(2,864	)
(Loss) income before income taxes		—			(39	)		21,893			895			—			22,749
Provision for (benefit from) income taxes		3,306			—			(30,799	)		166			—			(27,327	)
Equity in earnings of subsidiaries		53,382			53,421			—			—			(106,803	)		—
Net income	$	50,076		$	53,382		$	52,692		$	729		$	(106,803	)	$	50,076
Total other comprehensive loss		(371	)		(371	)		(328	)		(43	)		742			(371	)
Comprehensive income	$	49,705		$	53,011		$	52,364		$	686		$	(106,061	)	$	49,705

Condensed Consolidating Statement of Operations

For the Year Ended December 31, 2011

(in thousands)

	QDI			QD LLC & QD Capital			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Operating revenues:
Transportation	$	—		$	—		$	517,780		$	—		$	—		$	517,780
Service revenue		—			—			110,064			524			—			110,588
Fuel surcharge		—			—			117,583			—			—			117,583
Total operating revenues		—			—			745,427			524			—			745,951
Operating expenses:
Purchased transportation		—			—			522,866			—			—			522,866
Compensation		—			—			61,098			—			—			61,098
Fuel, supplies and maintenance		—			—			51,102			—			—			51,102
Depreciation and amortization		—			—			14,413			—			—			14,413
Selling and administrative		—			120			21,445			82			—			21,647
Insurance costs		—			—			14,025			17			—			14,042
Taxes and licenses		—			—			2,211			—			—			2,211
Communication and utilities		—			—			2,732			—			—			2,732
Gain on disposal of property and equipment		—			—			(1,318	)		—			—			(1,318	)
Restructuring credit		—			—			(521	)		—						(521	)
Operating (loss) income		—			(120	)		57,374			425			—			57,679
Interest (income) expense, non-related party, net		(15	)		28,012			923			(8	)		—			28,912
Interest (income) expense, related party, net		—			(28,012	)		28,427			(415	)		—			—
Write-off of debt issuance costs		—			3,181			—			—			—			3,181
Other expense		—			2			201			11			—			214
Income (loss) before income taxes		15			(3,303	)		27,823			837			—			25,372
Provision for (benefit from) income taxes		126			—			1,860			(45	)		—			1,941
Equity in earnings of subsidiaries		23,542			26,845			—			—			(50,387	)		—
Net income	$	23,431		$	23,542		$	25,963		$	882		$	(50,387	)	$	23,431
Total other comprehensive (loss) income		(5,187	)		(5,187	)		(5,213	)		26			10,374			(5,187	)
Comprehensive income	$	18,244		$	18,355		$	20,750		$	908		$	(40,013	)	$	18,244

Condensed Consolidating Statement of Operations

For the Year Ended December 31, 2010

(in thousands)

	QDI			QD LLC and QD  Capital			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Consolidated
Operating revenues:
Transportation	$	—		$	—		$	498,446		$	—		$	—	$	498,446
Service revenue		—			—			106,893			581			—		107,474
Fuel surcharge		—			—			80,678			—			—		80,678
Total operating revenues		—			—			686,017			581			—		686,598
Operating expenses:
Purchased transportation		—			—			471,792			—			—		471,792
Compensation		—			—			57,563			—			—		57,563
Fuel, supplies and maintenance		—			—			54,366			1			—		54,367
Depreciation and amortization		—			—			16,004			—			—		16,004
Selling and administrative		33			195			19,015			96					19,339
Insurance costs		—			—			15,525			21			—		15,546
Taxes and licenses		—			—			2,218			—			—		2,218
Communication and utilities		—			—			4,119			—			—		4,119
Loss (gain) on disposal of property and equipment		—			—			1,141			(5	)		—		1,136
Restructuring costs		—			—			7,779			—			—		7,779
Operating (loss) income		(33	)		(195	)		36,495			468			—		36,735
Interest expense (income), non-related party, net		37			34,221			1,339			(49	)		—		35,548
Interest (income) expense, related party, net		—			(34,226	)		34,652			(426	)		—		—
Write-off of debt issuance costs		—			7,391			—			—			—		7,391
Other expense (income)		735			174			96			(214	)		—		791
(Loss) income before income taxes		(805	)		(7,755	)		408			1,157			—		(6,995	)
Provision for (benefit from) income taxes		3			—			822			(414	)		—		411
(Loss) equity in earnings of subsidiaries		(6,598	)		1,157			—			—			5,441		—
Net (loss) income	$	(7,406	)	$	(6,598	)	$	(414	)	$	1,571		$	5,441	$	(7,406	)
Total other comprehensive loss		(607	)		(607	)		(520	)		(87	)		1,214		(607	)
Comprehensive (loss) income	$	(8,013	)	$	(7,205	)	$	(934	)	$	1,484		$	6,655	$	(8,013	)

Consolidating Balance Sheet, December 31, 2012

(in thousands)

	QDI			QD LLC and QD Capital			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	—		$	—		$	2,580		$	124		$	—		$	2,704
Accounts receivable, net		—			—			113,863			43			—			113,906
Prepaid expenses		—			(19	)		14,648			22			—			14,651
Deferred tax asset, net		—			—			16,609			—			—			16,609
Intercompany		—			—			369,458			88			(369,546	)		—
Other		44			—			9,679			(29	)		—			9,694
Total current assets		44			(19	)		526,837			248			(369,546	)		157,564
Property and equipment, net		—			—			190,342			—			—			190,342
Goodwill		—			—			104,294			—			—			104,294
Intangibles, net		—			—			37,654			—			—			37,654
Non-current deferred tax asset, net		(2,300	)		—			14,013			—			—			11,713
Investment in subsidiaries		(86,339	)		425,602			—			—			(339,263	)		—
Intercompany		144,738			252,732			389,289			11,582			(798,341	)		—
Other assets		—			9,510			2,526			—			—			12,036
Total assets	$	56,143		$	687,825		$	1,264,955		$	11,830		$	(1,507,150	)	$	513,603
LIABILITIES AND SHAREHOLDERS’ (DEFICIT) EQUITY
Current liabilities:
Current maturities of indebtedness	$	—		$	—		$	3,918		$	—		$	—		$	3,918
Current maturities of capital lease obligations		—			—			3,913			—			—			3,913
Accounts payable		—			—			9,977			(11	)		—			9,966
Intercompany		74,583			—			294,963			—			(369,546	)		—
Independent affiliates and independent owner-operators payable		—			—			14,243			—			—			14,243
Accrued expenses		—			4,294			33,567			28			—			37,889
Environmental liabilities		—			—			2,739			—			—			2,739
Accrued loss and damage claims		—			—			7,326			—			—			7,326
Total current liabilities		74,583			4,294			370,646			17			(369,546	)		79,994
Long-term indebtedness, less current maturities		—			384,935			23,915			—			—			408,850
Capital lease obligations, less current maturities		—			—			2,125			—			—			2,125
Environmental liabilities		—			—			6,302			—			—			6,302
Accrued loss and damage claims		—			—			9,494			—			—			9,494
Intercompany		—			384,935			409,053			4,353			(798,341	)		—
Other non-current liabilities		—			—			25,233			45			—			25,278
Total liabilities		74,583			774,164			846,768			4,415			(1,167,887	)		532,043
Shareholders’ (deficit) equity:
Common stock		437,192			354,963			390,760			4,191			(749,914	)		437,192
Treasury stock		(5,849	)		—			—			—			—			(5,849	)
Accumulated (deficit) retained earnings		(228,467	)		(220,458	)		57,630			4,356			158,472			(228,467	)
Stock recapitalization		(189,589	)		(189,589	)		—			(55	)		189,644			(189,589	)
Accumulated other comprehensive loss		(31,752	)		(31,280	)		(30,203	)		(1,077	)		62,560			(31,752	)
Stock purchase warrants		25			25			—			—			(25	)		25
Total shareholders’ (deficit) equity		(18,440	)		(86,339	)		418,187			7,415			(339,263	)		(18,440	)
Total liabilities and shareholders’ equity (deficit)		56,143		$	687,825		$	1,264,955		$	11,830		$	(1,507,150	)	$	513,603

Consolidating Balance Sheet, December 31, 2011

(in thousands)

	QDI			QD LLC and QD Capital			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	—		$	—		$	3,540		$	513		$	—		$	4,053
Accounts receivable, net		—			—			90,509			58			—			90,567
Prepaid expenses		—			31			7,818			—			—			7,849
Intercompany		—			122,294			147,251			2,440			(271,985	)		—
Deferred tax asset, net		—			—			4,048			—			—			4,048
Other		307			—			3,551			—			—			3,858
Total current assets		307			122,325			256,717			3,011			(271,985	)		110,375
Property and equipment, net		—			—			125,892			—			—			125,892
Goodwill		—			—			31,344			—			—			31,344
Intangibles, net		—			—			18,471			—			—			18,471
Investment in subsidiaries		(138,028	)		382,191			—			—			(244,163	)		—
Intercompany		66,198			—			316,983			8,383			(391,564	)		—
Other assets		—			10,655			5,658			—			—			16,313
Total assets	$	(71,523	)	$	515,171		$	755,065		$	11,394		$	(907,712	)	$	302,395
LIABILITIES AND SHAREHOLDERS’ (DEFICIT) EQUITY
Current liabilities:
Current maturities of indebtedness	$	—		$	—		$	4,139		$	—		$	—		$	4,139
Current maturities of capital lease obligations		—			—			5,261			—			—			5,261
Accounts payable		—			—			7,579			(8	)		—			7,571
Intercompany		35,328			—			232,720			3,937			(271,985	)		—
Independent affiliates and independent owner-operators payable		—			—			9,795			—			—			9,795
Accrued expenses		341			4,184			20,751			51			—			25,327
Environmental liabilities		—			—			3,878			—			—			3,878
Accrued loss and damage claims		—			—			8,614			—			—			8,614
Total current liabilities		35,669			4,184			292,737			3,980			(271,985	)		64,585
Long-term indebtedness, less current maturities		—			289,019			4,804			—			—			293,823
Capital lease obligations, less current maturities		—			—			3,840			—			—			3,840
Environmental liabilities		—			—			6,222			—			—			6,222
Accrued loss and damage claims		—			—			9,768			—			—			9,768
Intercompany		—			359,996			31,568			—			(391,564	)		—
Other non-current liabilities		(1,007	)		—			31,306			43			—			30,342
Total liabilities		34,662			653,199			380,245			4,023			(663,549	)		408,580
Shareholders’ (deficit) equity:
Common stock		393,859			354,963			399,757			4,833			(759,553	)		393,859
Treasury stock		(1,878	)		—			—			—			—			(1,878	)
Accumulated (deficit) retained earnings		(278,543	)		(273,840	)		4,938			3,627			265,275			(278,543	)
Stock recapitalization		(189,589	)		(189,589	)		—			(55	)		189,644			(189,589	)
Accumulated other comprehensive loss		(31,381	)		(30,909	)		(29,875	)		(1,034	)		61,818			(31,381	)
Stock purchase warrants		1,347			1,347			—			—			(1,347	)		1,347
Total shareholders’ (deficit) equity		(106,185	)		(138,028	)		374,820			7,371			(244,163	)		(106,185	)
Total liabilities and shareholders’ (deficit) equity	$	(71,523	)	$	515,171		$	755,065		$	11,394		$	(907,712	)	$	302,395

Condensed Consolidating Statement of Cash Flows

For the Year Ended December 31, 2012

(in thousands)

	QDI			QD LLC and QD Capital			Guarantor  Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net income	$	50,076		$	53,382		$	52,692		$	729		$	(106,803	)	$	50,076
Adjustments for non-cash charges		(46,838	)		(79,562	)		15,204			(557	)		106,803			(4,950	)
Net changes in assets and liabilities		(2,908	)		1,305			(26,519	)		(2	)		—			(28,124	)
Intercompany activity		(330	)		24,875			(23,986	)		(559	)		—			—
Net cash provided by (used in) operating activities		—			—			17,391			(389	)		—			17,002
Cash flows from investing activities:
Capital expenditures		—			—			(32,317	)		—			—			(32,317	)
Greensville purchase price adjustment		—			—			(566	)		—			—			(566	)
Acquisition of Trojan		—			—			(8,657	)		—			—			(8,657	)
Acquisition of Bice		—			—			(52,176	)		—			—			(52,176	)
Acquisition of Dunn’s		—			—			(34,321	)		—			—			(34,321	)
Acquisition of independent affiliate’s assets		—			—			(17,143	)		—			—			(17,143	)
Proceeds from sales of property and equipment		—			—			13,497			—			—			13,497
Net cash used in investing activities		—			—			(131,683	)		—			—			(131,683	)
Cash flows from financing activities:
Principal payments on long-term debt and capital lease obligations		—			—			(8,540	)		—			—			(8,540	)
Proceeds from revolver		—			236,800			—			—			—			236,800
Payments on revolver		—			(141,100	)		—			—			—			(141,100	)
Deferred financing costs		—			(989	)		—			—			—			(989	)
Proceeds from equity offering, net of transaction costs		30,493			—			—			—			—			30,493
Proceeds from exercise of stock options		360			—			—			—			—			360
Purchases of treasury stock		(3,658	)		—			—			—			—			(3,658	)
Other		—			—			(34	)		—			—			(34	)
Intercompany activity		(27,195	)		(94,711	)		121,906			—			—			—
Net cash provided by financing activities		—			—			113,332			—			—			113,332
Effect of exchange rate changes on cash		—			—			—			—			—			—
Net decrease in cash and cash equivalents		—			—			(960	)		(389	)		—			(1,349	)
Cash and cash equivalents, beginning of year		—			—			3,540			513			—			4,053
Cash and cash equivalents, end of year	$	—		$	—		$	2,580		$	124		$	—		$	2,704

Condensed Consolidating Statement of Cash Flows

For the Year Ended December 31, 2011

(in thousands)

	QDI			QD LLC and QD Capital			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net income	$	23,431		$	23,542		$	25,963		$	882		$	(50,387	)	$	23,431
Adjustments for non-cash charges		(20,668	)		(49,029	)		40,760			(415	)		50,387			21,035
Net changes in assets and liabilities		(158	)		(1,238	)		(8,666	)		995			—			(9,067	)
Intercompany activity		(2,605	)		26,725			(22,592	)		(1,528	)		—			—
Net cash provided by (used in) operating activities		—			—			35,465			(66	)		—			35,399
Cash flows from investing activities:
Capital expenditures		—			—			(38,340	)		—			—			(38,340	)
Acquisition of Greensville Transport Company		—			—			(8,594	)		—			—			(8,594	)
Proceeds from sales of property and equipment		—			—			16,476			—			—			16,476
Net cash used in investing activities		—			—			(30,458	)		—			—			(30,458	)
Cash flows from financing activities:
Principal payments on long-term debt and capital lease obligations		—			(33,378	)		(9,229	)		—			—			(42,607	)
Proceeds from revolver		—			175,457			—			—			—			175,457
Payments on revolver		—			(148,457	)		—			—			—			(148,457	)
Deferred financing costs		—			(4,965	)		—			—			—			(4,965	)
Redemption of noncontrolling interest		—			—			(1,833	)		—			—			(1,833	)
Proceeds from equity offering, net of transaction costs		17,580			—			—			—			—			17,580
Proceeds from exercise of stock options		1,768			—			—			—			—			1,768
Other		—			—			415			—			—			415
Intercompany activity		(19,348	)		11,343			8,005			—			—			—
Net cash used in financing activities		—			—			(2,642	)		—			—			(2,642	)
Effect of exchange rate changes on cash		—			—			1			—			—			1
Net increase (decrease) in cash and cash equivalents		—			—			2,366			(66	)		—			2,300
Cash and cash equivalents, beginning of year		—			—			1,174			579			—			1,753
Cash and cash equivalents, end of year	$	—		$	—		$	3,540		$	513		$	—		$	4,053

Condensed Consolidating Statement of Cash Flows

For the Year Ended December 31, 2010

(in thousands)

	QDI			QD LLC and QD Capital			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net (loss) income	$	(7,406	)	$	(6,598	)	$	(414	)	$	1,571		$	5,441		$	(7,406	)
Adjustments for non-cash charges		9,566			(20,673	)		50,553			(426	)		(5,441	)		33,579
Net changes in assets and liabilities		140			(1,017	)		(5,340	)		1,115			—			(5,102	)
Intercompany activity		(2,300	)		28,288			(24,305	)		(1,683	)		—			—
Net cash provided by operating activities		—			—			20,494			577			—			21,071
Cash flows from investing activities:
Capital expenditures		—			—			(11,184	)		—			—			(11,184	)
Proceeds from sales of property and equipment		—			—			10,105			—			—			10,105
Net cash used in investing activities		—			—			(1,079	)		—			—			(1,079	)
Cash flows from financing activities:
Proceeds from issuance of long-term debt		—			223,479			—			—			—			223,479
Principal payments on long-term debt and capital lease obligations		—			(201,085	)		(9,692	)		—			—			(210,777	)
Proceeds from revolver		—			59,200			—			—			—			59,200
Payments on revolver		—			(88,700	)		—			—			—			(88,700	)
Deferred financing costs		—			(5,594	)		—			—			—			(5,594	)
Other		(692	)		(319	)		(476	)		—			—			(1,487	)
Intercompany activity		692			13,019			(11,611	)		(2,100	)		—			—
Net cash used in financing activities		—			—			(21,779	)		(2,100	)		—			(23,879	)
Effect of exchange rate changes on cash		—			—			7			—			—			7
Net decrease in cash and cash equivalents		—			—			(2,357	)		(1,523	)		—			(3,880	)
Cash and cash equivalents, beginning of year		—			—			3,531			2,102			—			5,633
Cash and cash equivalents, end of year	$	—		$	—		$	1,174		$	579		$	—		$	1,753

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TRANSACTIONS WITH RELATED PARTIES

12 Months Ended

Dec. 31, 2012

TRANSACTIONS WITH RELATED PARTIES

21. TRANSACTIONS WITH RELATED PARTIES

At March 1, 2013 and December 31, 2012, Apollo and its affiliated funds owned or controlled approximately 17.4% and 17.3%, respectively, of QDI’s outstanding common stock. As a result, Apollo can influence substantially all matters requiring shareholder approval, including the election of directors, the approval of significant corporate transactions, such as acquisitions and the ability to block an unsolicited tender offer.

In 2012, three of our customers (Momentive Specialty Chemical, Taminco and Lyondell Chemical) are controlled by Apollo. Revenues from these customers were $14.1 million in 2012. In 2011, one of our customers (Momentive Specialty Chemical) was controlled by Apollo. Revenues from this customer were $16.3 million. In 2010, two of our customers (Hexion Specialty Chemicals and Momentive Specialty Chemicals) were controlled by Apollo. Revenues from these two customers were $15.0 million in 2010. All pricing with the companies controlled by Apollo was based on market rates, including such factors as total expected revenue to be generated by the customer, number of loads to be hauled and the number of miles to be driven.

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Assumptions (Detail)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Defined Benefit Plan Disclosure [Line Items]
Discount rate	3.48%	4.20%	5.08%
Ttwu Plan
Defined Benefit Plan Disclosure [Line Items]
Discount rate	3.90%	4.90%	5.50%
Expected long-term rate of return on plan assets	7.00%	7.00%	7.00%
Clc Plan
Defined Benefit Plan Disclosure [Line Items]
Discount rate	4.50%	5.25%	5.70%
Expected long-term rate of return on plan assets	8.00%	8.00%	8.00%

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Schedule of Reconciliation of Numerators and Denominators of Basic and Diluted Income Per Share (Detail) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Net income (numerator)	$ 5,709	$ 8,863	$ 28,804	$ 6,700	$ 5,476	$ 6,187	$ 9,046	$ 2,722	$ 50,076	$ 23,431	$ (7,406)
Net income (numerator), diluted									$ 50,076	$ 23,431	$ (7,406)
Shares (denominator)									26,502	23,088	20,382
Weighted Average Shares, Diluted									27,207	24,352	20,382
Basic income available to common shareholders, Per-share amount	$ 0.21	$ 0.32	$ 1.07	$ 0.27	$ 0.23	$ 0.26	$ 0.39	$ 0.12	$ 1.89	$ 1.01	$ (0.36)
Diluted income available to common shareholders, Per-share amount	$ 0.21	$ 0.32	$ 1.04	$ 0.26	$ 0.22	$ 0.25	$ 0.37	$ 0.12	$ 1.84	$ 0.96	$ (0.36)
Stock Options
Shares (denominator)									566	635
Unvested restricted stock
Shares (denominator)									126	200
Stock warrants
Shares (denominator)									13	429

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INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2012

Income (Loss) before Income Taxes

For financial reporting purposes, income (loss) before income taxes includes the following components for years ended December 31 (in thousands):

	2012		2011			2010
Domestic	$	21,853	$	24,535		$	(8,153	)
Mexico		851		855			1,052
Canada		45		(18	)		106
	$	22,749	$	25,372		$	(6,995	)

Components of (Benefit) from Provision for Income Tax

The components of the (benefit) from provision for income tax for the years ended December 31 are as follows (in thousands):

	2012			2011			2010
Current taxes:
Federal	$	(337	)	$	146		$	13
State		516			998			794
Mexico		166			(45	)		(414	)
Canada		436			842			18
		781			1,941			411
Deferred taxes:
Federal		7,038			7,529			(2,743	)
State		136			971			(49	)
		7,174			8,500			(2,792	)
Valuation Allowance
Federal		(32,586	)		(7,529	)		2,743
State		(2,696	)		(971	)		49
		(35,282	)		(8,500	)		2,792
(Benefit from) provision for income taxes	$	(27,327	)	$	1,941		$	411

Net Deferred Tax Asset (Liability)

The net deferred tax asset (liability) consisted of the following at December 31 (in thousands):

	2012			2011
Deferred tax assets:
Environmental reserve	$	8,262		$	8,612
Tax credit carryforwards		7,701			7,294
Self-insurance reserves		6,723			7,241
Allowance for doubtful accounts		270			261
Pension		8,414			8,998
Net operating loss carryforwards		29,201			29,378
Stock compensation		2,531			2,178
Other accruals		4,425			3,688
Accrued losses and damage claims		30			52
		67,557			67,702
Less valuation allowance		(4,258	)		(39,540	)
	$	63,299		$	28,162
Deferred tax liabilities:
Property and equipment basis differences		(26,449	)		(21,706	)
Accrued interest and original issue discount		(2,831	)		(3,089	)
Depreciation of environmental costs		(1,826	)		(1,130	)
Fair value earnout adjustments		(1,038	)		—
Intangible basis differences		(2,833	)		(2,237	)
Net deferred tax asset	$	28,322		$	—
Comprised of:
Current deferred tax asset	$	16,609		$	4,048
Long-term deferred tax asset		46,690			—
Long-term deferred tax liability		(34,977	)		(4,048	)
Net deferred tax asset	$	28,322		$	—

Reconciliation of Effective Tax Rate and Federal Statutory Rate

Our effective tax rate differs from the federal statutory rate. The reasons for those differences are as follows for the years ended December 31 (in thousands):

	2012			2011			2010
Tax expense (benefit) at the statutory rate	$	7,962		$	8,880		$	(2,448	)
State income taxes, net of federal benefit		679			1,625			408
Uncertain tax position adjustments		49			(252	)		(384	)
Stock compensation		123			278			—
Impact of foreign tax rates		(13	)		435			(167	)
Valuation allowance		(35,282	)		(8,500	)		2,792
Work opportunity tax credit		—			234			(10	)
IRC Section 956 income		335			219			240
Foreign tax credit		(525	)		(1,367	)		(253	)
Provision to return and other adjustments to deferred taxes		(608	)		—			—
Other		(47	)		389			233
(Benefit from) provision for income taxes	$	(27,327	)	$	1,941		$	411

Rollforward of Valuation Allowance

Rollforward of valuation allowance (in thousands):

	2012			2011			2010
Beginning balance	$	(39,540	)	$	(46,025	)	$	(43,032	)
Change in assessments about the realization of deferred income tax assets		35,282			6,485			(2,993	)
Ending balance	$	(4,258	)	$	(39,540	)	$	(46,025	)

Reconciliation of Total Amount of Unrecognized Tax Benefits

A reconciliation of the total amount of unrecognized tax benefits as of December 31 follows (in thousands):

	2012			2011			2010
Total unrecognized tax benefits as of January 1,	$	1,628		$	1,585		$	1,776
Increases in tax positions taken during prior period		359			425			160
Decreases in tax positions taken during prior period		(75	)		—			—
Increases in tax positions taken in the current period		85			—			—
Decreases in tax positions taken in the current period		(20	)		—			—
Settlements with taxing authorities		(85	)		—			—
Decrease due to lapse of applicable statute of limitations		(240	)		(382	)		(351	)
Total unrecognized tax benefits as of December 31,	$	1,652		$	1,628		$	1,585

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SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Dec. 31, 2012

Basis of Presentation

Basis of Presentation

These consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States using U.S. dollars as the reporting currency as the majority of our business is in the U.S. The consolidated financial statements include the accounts of QDI and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. The redeemable noncontrolling interest of the outstanding preferred stock of Chemical Leaman Corp. (“CLC”), a wholly-owned subsidiary of QDI, was fully redeemed in 2011.

Cash and Cash Equivalents

Cash and Cash Equivalents

We consider all highly liquid investments with original maturities of three months or less to be cash equivalents. The Company has a restricted cash balance of $0.8 million at December 31, 2012 used to guarantee an environmental matter. Book overdrafts are included in accounts payable.

Reclassification

Reclassification

Certain prior period amounts have been reclassified amongst operating expense line items to conform to the current year presentation.

Allowance for Uncollectible Receivables

Allowance for Uncollectible Receivables

We have established a reserve for uncollectible receivables based on a combination of historical data, cash payment trends, specific customer issues, write-off trends, general economic conditions and other factors. We charge uncollectible amounts to our allowance based on various issues, including cash payment trends and specific customer issues. These factors are continuously monitored by our management to arrive at the estimate for the amount of accounts receivable that may be ultimately uncollectible. The receivables analyzed include trade receivables, as well as loans and advances made to independent affiliates and independent owner-operators.

Tires

Tires

We capitalize the cost of tires mounted on tractors and trailers that we acquire as a part of the total equipment cost and depreciate the cost over the useful life of the related equipment. Subsequent replacement tires are expensed at the time those tires are placed in service similar to other repairs and maintenance costs.

Property and equipment

Property and equipment

Property and equipment expenditures, including tractor and trailer rebuilds that extend the useful lives of such equipment, are capitalized and recorded at cost. For financial statement purposes, these assets are depreciated using the straight-line method over the estimated useful lives of the assets to an estimated salvage value.

The asset lives used are presented in the following table:

	Average Lives (in years)
Buildings and improvements	10 - 25
Tractors and terminal equipment	5 - 7
Trailers	15 - 20
Energy logistics equipment	4 - 15
Disposal wells	5 - 15
Furniture and fixtures	3 - 5
Other equipment	3 - 10

Building improvements are recorded at the shorter of the lease term or useful life. Tractor and trailer rebuilds, which are recurring in nature and extend the lives of the related assets, are capitalized and depreciated over the period of extension, generally 3 to 10 years, based on the type and extent of these rebuilds. Maintenance and repairs are charged directly to expense as incurred. Management estimates the useful lives of these assets based on historical trends and the age of the assets when placed in service. Any changes in the actual lives could result in material changes in the net book value of these assets. Additionally, we estimate the salvage values of these assets based on historical sales or disposals, and any changes in the actual salvage values could also affect the net book value of these assets.

Furthermore, we evaluate the recoverability of our long-lived assets whenever adverse events or changes in the business climate indicate that the expected undiscounted future cash flows from the related asset may be less than previously anticipated. If the net book value of the related asset exceeds the undiscounted future cash flows of the asset, the carrying amount would be reduced to the present value of its expected future cash flows and an impairment loss would be recognized. This analysis requires us to make significant estimates and assumptions in projecting future cash flows, and changes in facts and circumstances could result in material changes in the amount of any write-offs for impairment.

Goodwill and Intangible Assets

Goodwill and Intangible Assets

We evaluate goodwill and indefinite-lived intangible assets for impairment at least annually during the second quarter with a measurement date of June 30, and more frequently if indicators of impairment arise, in accordance with Financial Accounting Standards Board (“FASB”) guidance on goodwill and other intangible assets. We evaluate goodwill for impairment by determining the fair value for each reporting unit to which our goodwill relates. At December 31, 2012, our energy logistics, intermodal and chemical logistics segments contain goodwill and other identifiable intangible assets associated with past and recent acquisitions.

The methodology applied in the analysis performed at June 30, 2012 was consistent with the methodology applied in prior years, but was based on updated assumptions, as appropriate. As a result of our analysis, we concluded no impairment had occurred as of June 30, 2012, 2011 and 2010. We continued to evaluate indicators of impairment quarterly following our annual goodwill impairment test at June 30, 2012 through December 31, 2012. There were no indications that a triggering event has occurred. As of December 31, 2012, we had total goodwill of $104.3 million, of which $71.3 million was allocated to our energy logistics segment, $31.4 million was allocated to our intermodal segment and $1.6 million was allocated to our chemical logistics segment. As of December 31, 2012, we had total intangibles of $37.7 million, of which $20.9 million was allocated to our energy logistics segment, $16.6 million was allocated to our intermodal segment and $0.2 million was allocated to our chemical logistics segment.

Goodwill

Under the FASB guidance, the process of evaluating the potential impairment of goodwill involves a two-step process and requires significant judgment at many points during the analysis. In the first step, we determine whether there is an indication of impairment by comparing the fair value of a reporting unit to its carrying amount, including goodwill. If, based on the first step, we determine that there is an indication of goodwill impairment, we assess the impairment in step two in accordance with the FASB guidance.

In the first step, we determine the fair value for each reporting unit using a combination of two valuation approaches: the market approach and the income approach. The market approach uses a guideline company methodology which is based upon a comparison of each reporting unit to similar publicly-traded companies within our industry. We derive a market value of invested capital or business enterprise value for each comparable company by multiplying the price per share of common stock of the publicly traded companies by their total common shares outstanding and adding each company’s current level of debt. We calculate a business enterprise multiple based on revenue and earnings from each company, then apply those multiples to each reporting unit’s revenue and earnings to conclude a reporting unit business enterprise value. Assumptions regarding the selection of comparable companies are made based on, among other factors, capital structure, operating environment and industry. As the comparable companies were typically larger and more diversified than our reporting units, multiples were adjusted prior to application to our reporting units’ revenues and earnings to reflect differences in margins, long-term growth prospects and market capitalization.

The income approach uses a discounted debt-free cash flow analysis to measure fair value by estimating the present value of future economic benefits. To perform the discounted debt-free cash flow analysis, we develop a pro forma analysis of each reporting unit to estimate future available debt-free cash flow and discounting estimated debt-free cash flow by an estimated industry weighted average cost of capital based on the same comparable companies used in the market approach. Per the FASB guidance, the weighted average cost of capital is based on inputs (e.g., capital structure, risk, etc.) from a market participant’s perspective and not necessarily from the reporting unit or QDI’s perspective. Future cash flow is projected based on assumptions for our economic growth, industry expansion, future operations and the discount rate, all of which require significant judgments by management.

After computing a separate business enterprise value under the income approach and market approach, we apply a weighting to them to derive the business enterprise value of the reporting unit. The income approach and market approach were both weighted 50% in the analysis performed at June 30, 2012. The weightings are evaluated each time a goodwill impairment assessment is performed and give consideration to the relative reliability of each approach at that time. Given that the business enterprise value derived from the market approach supported what was calculated in the income approach, we believed that both approaches should be equally weighted. Based on these weightings, we calculated a business enterprise value for the reporting unit. We then add debt-free liabilities of the reporting unit to the calculated business enterprise value to derive an implied fair value of the reporting unit. The implied fair value is then compared to the reporting unit’s carrying value. Upon completion of the analysis in step one, we determined that the fair value of both our energy logistics and intermodal reporting units exceeded its respective carrying value. As such, a step two analysis was not required.

Intangible assets

To determine the implied fair value of our indefinite-lived intangible assets, we utilize the relief from royalty method, pursuant to which those assets are valued by reference to the amount of royalty income they would generate if licensed in an arm’s length transaction. Under the relief from royalty method, similar to the discounted cash flow method, estimated net revenues expected to be generated by the asset during its life are multiplied by a benchmark royalty rate and then discounted by the estimated weighted average cost of capital associated with the asset. The resulting capitalized royalty stream is an indication of the value of owning the asset. Based upon management’s review of the value of the indefinite-lived intangible assets in our intermodal segment, we determined that the implied fair value exceeded its carrying value.

If there are changes to the methods used to allocate carrying values, if management’s estimates of future operating results change, if there are changes in the identified reporting units or if there are changes to other significant assumptions, the estimated carrying values for each reporting unit and the estimated fair value of our goodwill could change significantly, and could result in future impairment charges, which could materially impact our results of operations and financial condition.

Other Assets-Deferred Loan Costs

Other Assets—Deferred Loan Costs

Costs incurred to issue debt are deferred and amortized as a component of interest expense over the estimated term of the related debt using the straight-line method.

Taxation

Taxation

We use the asset and liability method of accounting for income taxes. If, on the basis of available evidence, it is more likely than not that all or a portion of the deferred tax asset will not be realized, the asset must be reduced by a valuation allowance. Any change in the actual future results of operations could impact the valuation of the net deferred tax asset.

During 2012, we recorded a deferred tax benefit of $28.1 million of which $35.3 related to a prior year valuation allowance release. These releases of the valuation allowance are a result of our consistent cumulative income position, improved operating results, and recent expansion of our energy business through acquisition. Our assessment of the recoverability of the deferred tax assets primarily relied on the positive evidence related to our cumulative income position. We have determined that it is more likely than not that expected future taxable income will be sufficient to utilize substantially all of our U.S. federal and state net deferred tax assets. We will continue to maintain a valuation allowance against our net deferred tax asset related to foreign tax credits to the extent sufficient positive evidence does not exist to support their utilization. Changes in deferred tax assets and valuation allowance are reflected in the (benefit from) provision for income taxes in our consolidated statements of operations.

Under FASB guidance, we account for uncertain tax positions using a two-step process. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step requires us to estimate and measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. It is inherently difficult and subjective to estimate such amounts, as we have to determine the probability of various possible outcomes. We re-evaluate these uncertain tax positions on a quarterly basis. This evaluation is based on factors including, but not limited to, changes in facts or circumstances, changes in tax law, effectively settled issues under audit, and new audit activity. Such a change in recognition or measurement would result in the recognition of a tax benefit or an additional charge to the tax provision.

Environmental liabilities

Environmental liabilities

We have reserved for potential environmental liabilities based on the best estimates of potential clean-up and remediation for known environmental sites. We employ a staff of environmental professionals to administer all phases of our environmental programs and use outside experts where needed. These professionals develop estimates of potential liabilities at these sites based on projected and known remediation costs. These cost projections are determined through previous experiences with other sites and through bids from third-party contractors. Management believes current reserves are reasonable based on current information, but estimates of environmental reserves and exposures may be affected by information subsequently received.

Accrued Loss and Damage Claims

Accrued Loss and Damage Claims

We currently maintain liability insurance for bodily injury and property damage claims, covering all employees, independent owner-operators and independent affiliates, and workers’ compensation insurance coverage on our employees and company drivers. This insurance includes deductibles of $2.0 million per incident for bodily injury and property damage and $1.0 million for workers’ compensation. As such, we are subject to liability as a self-insurer to the extent of these deductibles under various policies. We are self-insured for damage to the equipment we own or lease and for cargo losses. As of December 31, 2012, we had $20.0 million in an outstanding letter of credit to our insurance company to guarantee the self-insurance portion of our liability. If we fail to meet certain terms of our agreement, the insurance company may draw down the letter of credit. In developing liability reserves, we rely on insurance company estimates, the judgment of our own licensed claims adjusters, and independent professional actuaries and attorneys. The most significant assumptions used in the estimation process include determining the trends in loss costs, the expected consistency in the frequency and severity of claims incurred but not yet reported to prior-year claims, and expected costs to settle unpaid claims. Management believes reserves are reasonable given known information, but as each case develops, estimates may change to reflect the effect of new information.

Redeemable Noncontrolling Interest

Redeemable Noncontrolling Interest

Shares of Series C preferred stock of our subsidiary, CLC, were held by two shareholders that were affiliated with us. These shareholders were entitled to dividends on each of their shares of Series C preferred stock, payable quarterly, at a rate of 8.0% (or $480 per preferred share) per annum. On March 3, 2011, we redeemed all 302 shares for $1.8 million plus accrued dividends through the redemption date.

Foreign Currency Translation

Foreign Currency Translation

The translation from Canadian dollars to U.S. dollars is performed for balance sheet accounts using exchange rates in effect at the balance sheet date and for revenue and expense accounts using a weighted-average exchange rate in effect during the period. The gains or losses, net of income taxes, resulting from such translation are included in shareholders’ deficit as a component of accumulated other comprehensive loss. Gains or losses from foreign currency transactions are included in other expense.

Accumulated Other Comprehensive Loss

Accumulated Other Comprehensive Loss

The components of accumulated other comprehensive loss are as follows as of December 31 (in thousands):

	2012		2011
Unrecognized loss and prior service costs	$	30,572	$	30,244
Foreign currency translation adjustment		1,180		1,137
	$	31,752	$	31,381

Revenue Recognition

Revenue Recognition

Transportation revenue, including fuel surcharges and related costs, is recognized on the date freight is delivered. Service revenue consists primarily of rental revenues (primarily tractor and trailer rental), intermodal and depot revenues, disposal well services revenue, tank wash revenues and insurance related administrative services. Rental revenues from independent affiliates, independent owner-operators and third parties are recognized ratably over the lease period. Intermodal and depot revenues, consisting primarily of repair and storage services, are recognized when the services are rendered. Disposal well services revenue are recognized when the services are rendered. Insurance related administrative service revenues are recorded ratably over the service period. We recognize all revenues on a gross basis as the principal and primary obligor with risk of loss in relation to our responsibility for completion of services as contracted with our customers.

Service Revenue

Service Revenue

The components of service revenue are as follows for the year ended December 31 (in thousands):

	2012		2011		2010
Rental revenue	$	53,044	$	50,726	$	53,911
Intermodal and depot revenues		45,008		42,169		37,004
Other revenue		23,049		17,693		16,559
	$	121,101	$	110,588	$	107,474

Share-Based Compensation

Share-Based Compensation

Under the FASB guidance, we apply the Black-Scholes valuation model in determining the fair value of share-based payments to employees and directors. The resulting compensation expense is recognized over the requisite service period, which is generally the option vesting term of two to four years. Please refer to Note 19 for further discussion regarding stock-based compensation.

Leased Assets

Leased Assets

We have both capital and operating leases. The initial leases for most of our tractors and trailers have terms that range from four to six years. Some leases require us to pay the lessor a minimum residual amount at the end of the lease. For operating leases, we accrue this residual by recording a prepaid rent amount and amortizing a monthly amount as rental expense and also record a liability that is increased every year by recognizing interest expense. This residual amount is recorded in the balance sheet category “Other non-current liabilities.” For capital leases, the residual is included as part of the cost of the capitalized leased asset.

Use of Estimates

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Net Income (Loss) Per Common Share

Net Income (Loss) Per Common Share

Basic net income (loss) per common share is calculated based on the weighted-average common shares outstanding during each period. Diluted income (loss) per common share includes the dilutive effect, if any, of common equivalent shares outstanding during each period.

New Accounting Pronouncements

New Accounting Pronouncements

In February 2013, the Financial Accounting Standards Board (“FASB”) issued an accounting pronouncement related to accumulated other comprehensive income (“AOCI”). Under this standard, entities will be required to disclose additional information with respect to changes in AOCI balances by component and significant items reclassified out of AOCI. Expanded disclosures for presentation of changes in AOCI involve disaggregating the total change of each component of other comprehensive income as well as presenting separately for each such component the portion of the change in AOCI related to (1) amounts reclassified into income and (2) current-period other comprehensive income. The disclosures required with respect to income statement line item impacts would be made in either the notes to the consolidated financial statements or parenthetically on the face of the financial statements. This standard is effective beginning January 1, 2013. The adoption of this standard will not have a material impact on our consolidated financial statements.

In July 2012, the FASB issued an accounting pronouncement related to intangibles—goodwill and other, which permits companies to first consider qualitative factors as a basis for assessing impairment and determining the necessity of a detailed impairment test of indefinite-lived intangible assets. The provisions for this pronouncement are effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. We do not expect the adoption of this pronouncement to have a material effect on our consolidated financial statements.

In May 2011, the FASB issued amended guidance on fair value measurement. This guidance clarifies how to measure fair value and is largely consistent with existing fair value measurement principles. It also expands existing disclosure requirements for fair value measurements. We adopted this amendment for the year ended December 31, 2012. The adoption of this amended guidance to expand our footnote disclosures in the consolidated financial statements did not have a material impact on our consolidated financial statements.

In September 2011, the FASB issued additional amendments to the guidance on goodwill testing for impairment by permitting an entity to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. We adopted this amendment for the year ended December 31, 2012. The adoption of this amendment did not have a material impact on the Company’s financial position, results of operations or cash flows.

In December 2011, the FASB issued additional guidance on comprehensive income. This accounting update defers changes that relate to the presentation of reclassification adjustments out of accumulated other comprehensive income. We adopted this amendment for the year ended December 31, 2012. The adoption of this guidance did not have a material effect on the Company’s consolidated financial statements.

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SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2012

Useful Lives of Assets

The asset lives used are presented in the following table:

	Average Lives (in years)
Buildings and improvements	10 - 25
Tractors and terminal equipment	5 - 7
Trailers	15 - 20
Energy logistics equipment	4 - 15
Disposal wells	5 - 15
Furniture and fixtures	3 - 5
Other equipment	3 - 10

Components of Accumulated Other Comprehensive Loss

The components of accumulated other comprehensive loss are as follows as of December 31 (in thousands):

	2012		2011
Unrecognized loss and prior service costs	$	30,572	$	30,244
Foreign currency translation adjustment		1,180		1,137
	$	31,752	$	31,381

Components of Service Revenue

The components of service revenue are as follows for the year ended December 31 (in thousands):

	2012		2011		2010
Rental revenue	$	53,044	$	50,726	$	53,911
Intermodal and depot revenues		45,008		42,169		37,004
Other revenue		23,049		17,693		16,559
	$	121,101	$	110,588	$	107,474

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BUSINESS ORGANIZATION

12 Months Ended

Dec. 31, 2012

BUSINESS ORGANIZATION

1. BUSINESS ORGANIZATION

Quality Distribution, Inc. (the “Company”, “QDI”, or “we”) and its subsidiaries are engaged primarily in transportation of bulk chemicals in North America. We are the largest provider of intermodal ISO tank container and depot services in North America through our wholly-owned subsidiary, Boasso America Corporation (“Boasso”). In 2011, we entered the gas and oil frac shale energy markets, providing logistics services to these markets through our wholly-owned subsidiaries, QC Energy Resources, Inc. and QC Environmental Service, Inc, collectively (“QCER”). We conduct a significant portion of our business through a network of independent affiliates and independent owner-operators. Independent affiliates are companies which enter into various term contracts with the Company. Independent affiliates are responsible for paying for their own power equipment (including debt service), fuel and other operating costs. Most of the independent affiliates lease trailers from us. Independent owner-operators are independent contractors, who, through a contract with us, supply one or more tractors and drivers for our use. Contracts with independent owner-operators may be terminated by either party on short notice. We charge independent affiliates and third parties for the use of tractors and trailers as necessary. In exchange for the services rendered, independent affiliates and independent owner-operators are normally paid a percentage of the revenues collected on each load hauled.

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FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2012

Carrying Value and Fair Value of Long-Term Indebtedness

As of December 31, 2012, the carrying value and fair value are as follows (in thousands):

	Carrying Value		Fair Value
9.875% Second-Priority Senior Secured Notes due 2018 (“2018 Notes”)	$	225,000	$	241,875

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Long-Term Indebtedness - Additional Information (Detail) (USD $)	12 Months Ended			3 Months Ended	12 Months Ended				12 Months Ended						12 Months Ended							12 Months Ended			12 Months Ended			1 Months Ended				3 Months Ended		12 Months Ended					12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010	Sep. 30, 2011 Abl Facility	Dec. 31, 2012 Abl Facility	Sep. 27, 2012 Abl Facility	Sep. 26, 2012 Abl Facility	Dec. 31, 2011 Abl Facility	Dec. 31, 2012 Abl Facility Minimum	Dec. 31, 2012 Abl Facility Maximum	Sep. 27, 2012 Abl Facility Letter of Credit	Sep. 27, 2012 Abl Facility Swingline Borrowings	Dec. 31, 2012 Abl Facility Base Rate	Dec. 31, 2012 Abl Facility LIBOR	Dec. 31, 2012 Previous Abl Facility	Dec. 31, 2012 Previous Abl Facility Letter of Credit	Dec. 31, 2012 Previous Abl Facility Current Assets	Dec. 31, 2012 Previous Abl Facility Fixed Asset	Dec. 31, 2012 Previous Abl Facility Base Rate Current Assets	Dec. 31, 2012 Previous Abl Facility Base Rate Fixed Asset	Dec. 31, 2012 Previous Abl Facility Federal Funds Rate Current Assets	Dec. 31, 2012 Nine Point Eight Seven Five Percent Second Priority Senior Secured Notes Due Twenty Eighteen	Dec. 31, 2011 Nine Point Eight Seven Five Percent Second Priority Senior Secured Notes Due Twenty Eighteen	Nov. 03, 2010 Nine Point Eight Seven Five Percent Second Priority Senior Secured Notes Due Twenty Eighteen	Dec. 31, 2012 Nine Point Eight Seven Five Percent Second Priority Senior Secured Notes Due Twenty Eighteen Minimum	Dec. 31, 2012 Nine Point Eight Seven Five Percent Second Priority Senior Secured Notes Due Twenty Eighteen Semi Annual Payment, First Payment	Dec. 31, 2012 Nine Point Eight Seven Five Percent Second Priority Senior Secured Notes Due Twenty Eighteen Semi Annual Payment, Second Payment	Jul. 31, 2011 Eleven Point Seven Five Percent Senior Subordinated Pik Notes Due Twenty Thirteen	Mar. 11, 2011 Eleven Point Seven Five Percent Senior Subordinated Pik Notes Due Twenty Thirteen	Jan. 20, 2011 Eleven Point Seven Five Percent Senior Subordinated Pik Notes Due Twenty Thirteen	Nov. 03, 2010 Eleven Point Seven Five Percent Senior Subordinated Pik Notes Due Twenty Thirteen	Sep. 30, 2011 Eleven Point Seven Five Percent Senior Subordinated Pik Notes Due Twenty Thirteen	Mar. 31, 2011 Eleven Point Seven Five Percent Senior Subordinated Pik Notes Due Twenty Thirteen	Dec. 31, 2012 Eleven Point Seven Five Percent Senior Subordinated Pik Notes Due Twenty Thirteen	Jan. 31, 2011 Eleven Point Seven Five Percent Senior Subordinated Pik Notes Due Twenty Thirteen	Oct. 15, 2009 Eleven Point Seven Five Percent Senior Subordinated Pik Notes Due Twenty Thirteen	Oct. 15, 2009 Eleven Point Seven Five Percent Senior Subordinated Pik Notes Due Twenty Thirteen Cash	Oct. 15, 2009 Eleven Point Seven Five Percent Senior Subordinated Pik Notes Due Twenty Thirteen Senior Notes	Dec. 31, 2012 New Issued Nine Point Eight Seven Five Percent Second Priority Senior Secured Notes Due Twenty Eighteen	Dec. 31, 2012 Senior Notes 10 Percent Due 2013	Dec. 31, 2012 Five Percent Subordinated Acquisition Notes
Debt Instrument [Line Items]
Revolving credit facility maturity date					Aug. 19, 2016
Maximum borrowing capacity						$ 350,000,000	$ 250,000,000				$ 150,000,000	$ 30,000,000				$ 150,000,000	$ 205,000,000	$ 20,000,000
Borrowing capacity available					55,200,000				20,000,000	35,000,000
Applicable margin rate													1.25%	2.25%
Debt instrument, basis spread on variable rate													0.50%	1.00%					1.00%	1.25%	0.50%
Unutilized commitment fee percentage									0.25%	0.50%
Interest Rate					2.50%			2.30%
Debt issuance costs					6,400,000																	6,600,000												1,500,000					6,400,000	200,000
Write-off of debt issuance Costs		3,181,000	7,391,000	900,000											900,000																	300,000	1,800,000
Unamortized debt issuance costs					1,300,000
Aggregate principal amount																								225,000,000											33,300,000	80,700,000					21,300,000
Debt instrument amount redeemed																												5,800,000	17,500,000	10,000,000	47,500,000
Interest rate	9.875%																					9.875%	9.875%													11.75%	9.00%	2.75%			5.00%
Maturity Year																						2018	2018
Interest rate payment day and month																										--05-01	--11-01
Maturity date																						Nov. 01, 2018																			Jan. 06, 2017
Debt instrument, redemption price																						100.00%			1.00%
Debt instrument redemption price principal percentage year two																						10.00%
Debt instrument, redemption price year two																						103.00%
Debt instrument redemption price principal percentage year one																						35.00%
Debt instrument, redemption price year one																						109.875%
Debt instrument principal amount outstanding percentage																						50.00%
Discount on Notes	1,265,000	1,481,000																																6,700,000	2,100,000
Amortization of deferred issuance costs	$ 2,133,000	$ 2,118,000	$ 2,742,000		$ 1,238,000																	$ 895,000

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Unrecognized Stock-Based Compensation and Weighted Average Period over Which Such Stock-Based Compensation Expected To Be Recognized (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock-based compensation, Stock options	$ 2,339
Unrecognized stock based compensation, Restricted shares and stock units	1,724
Total unrecognized stock based compensation	$ 4,063
Weighted average period, Stock options	2 years 6 months
Weighted average period, Restricted stock Restricted shares and stock units	2 years 2 months 12 days

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PROPERTY AND EQUIPMENT (Tables)

12 Months Ended

Dec. 31, 2012

Property Plant and Equipment Disclosure

Property and equipment consisted of the following at December 31 (in thousands):

	2012			2011
Land and improvements	$	15,466		$	13,462
Buildings and improvements		29,042			26,903
Revenue equipment		244,795			190,175
Other equipment and disposal wells		43,209			31,946
Total property and equipment		332,512			262,486
Accumulated depreciation		(142,170	)		(136,594	)
Property and equipment, net	$	190,342		$	125,892

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Variable Interest Entities - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	Dec. 31, 2012 Entity
Variable Interest Entity [Line Items]
Holding variable interest in number of VIEs	1
VIE dry bulk business
Variable Interest Entity [Line Items]
Aggregated loans receivable	3.2

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Property and Equipment (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2012		Dec. 31, 2011		Dec. 31, 2010
Property, Plant and Equipment [Line Items]
Property plant and equipment	$ 332,512		$ 262,486
Accumulated depreciation	(142,170)		(136,594)
Property and equipment, net	190,342	[1]	125,892	[1]	113,419	[1]
Land and improvements
Property, Plant and Equipment [Line Items]
Property plant and equipment	15,466		13,462
Buildings and improvements
Property, Plant and Equipment [Line Items]
Property plant and equipment	29,042		26,903
Revenue equipment
Property, Plant and Equipment [Line Items]
Property plant and equipment	244,795		190,175
Other equipment and disposal wells
Property, Plant and Equipment [Line Items]
Property plant and equipment	$ 43,209		$ 31,946

[1] Includes property and equipment.

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Consolidated Statements of Operations (USD $) In Thousands, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
OPERATING REVENUES:
Transportation	$ 597,406	$ 517,780	$ 498,446
Service revenue	121,101	110,588	107,474
Fuel surcharge	123,611	117,583	80,678
Total operating revenues	842,118	745,951	686,598
OPERATING EXPENSES:
Purchased transportation	552,524	522,866	471,792
Compensation	82,143	61,098	57,563
Fuel, supplies and maintenance	82,033	51,102	54,367
Depreciation and amortization	21,090	14,413	16,004
Selling and administrative	33,882	21,647	19,339
Insurance costs	15,830	14,042	15,546
Taxes and licenses	2,825	2,211	2,218
Communication and utilities	3,636	2,732	4,119
(Gain) loss on disposal of property and equipment	(988)	(1,318)	1,136
Restructuring (credit) costs		(521)	7,779
Total operating expenses	792,975	688,272	649,863
Operating (loss) income	49,143	57,679	36,735
Interest expense	30,089	29,497	36,170
Interest income	(831)	(585)	(622)
Write-off of debt issuance costs		3,181	7,391
Other (income) expense, net	(2,864)	214	791
(Loss) income before income taxes	22,749	25,372	(6,995)
(Benefit from) provision for income taxes	(27,327)	1,941	411
Net (loss) income	$ 50,076	$ 23,431	$ (7,406)
Net income (loss) per common share
Basic	$ 1.89	$ 1.01	$ (0.36)
Diluted	$ 1.84	$ 0.96	$ (0.36)
Weighted-average number of shares
Basic	26,502	23,088	20,382
Diluted	27,207	24,352	20,382

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EMPLOYEE BENEFIT PLANS (Tables)

12 Months Ended

Dec. 31, 2012

Future Actuarial Gains or Losses

Future actuarial gains or losses that are not recognized as net periodic benefit cost in the same periods will be recognized as a component of other comprehensive loss (in thousands):

	2012
Items not yet recognized as a component of net periodic cost:
Unrecognized net actuarial loss	$	34,619
Unamortized prior service cost		323
Unrecognized loss and prior service costs recorded as a component of accumulated other comprehensive loss	$	34,942
Items to be recognized in 2013 as a component of net periodic cost:
Net actuarial loss	$	1,451
Prior service cost		94
Net periodic cost to be recorded in 2013 from accumulated other comprehensive loss	$	1,545

Change in Projected Benefit Obligation and Plan Assets and Unfunded Status of 2012 and 2011 Plans

The following table sets forth the change in the projected benefit obligation, change in plan assets and unfunded status of the two plans at 2012 and 2011 (in thousands):

	2012			2011
Change in Projected Benefit Obligation
Benefit obligation at January 1,	$	51,557		$	48,630
Settlement		(1,813	)		—
Service cost		166			176
Interest cost		2,102			2,420
Actuarial loss		3,827			3,785
Benefits and expenses paid		(3,202	)		(3,454	)
Benefit obligation at December 31,	$	52,637		$	51,557

	2012			2011
Change in Plan Assets
Fair value of plan assets at January 1,	$	28,912		$	29,947
Settlement		(709	)		—
Actual return (loss) on plan assets		2,916			(400	)
Contributions by Company		3,643			2,819
Benefits and expenses paid		(3,202	)		(3,454	)
Fair value of plan assets at December 31,	$	31,560		$	28,912

	2012			2011
Unfunded Status of Plans
Projected benefit obligation	$	(52,637	)	$	(51,557	)
Fair value of plan assets		31,560			28,912
Unfunded status as of December 31,	$	(21,077	)	$	(22,645	)

Accumulated Other Comprehensive Loss

We had the following net pension equity charges (after-tax) that were recorded as part of other comprehensive loss and accumulated other comprehensive loss:

	2012			2011			2010
Net actuarial loss, net of tax	$	(422	)	$	(5,307	)	$	(614	)
Prior service cost		94			94			94
Adjustment to pension benefit obligation	$	(328	)	$	(5,213	)	$	(520	)

Components of Estimated Net Periodic Pension Cost

The components of net periodic pension cost are as follows for the years ended December 31 (in thousands):

	2012			2011			2010
Service cost	$	166		$	176		$	203
Interest cost		2,102			2,420			2,575
Amortization of loss		1,352			1,177			1,200
Amortization of prior service cost		94			94			94
Expected return on plan assets		(2,219	)		(2,298	)		(2,161	)
Net periodic pension cost	$	1,495		$	1,569		$	1,911

Weighted Average Assumptions Used to Determine Benefit Obligations

Weighted average assumptions used to determine benefit obligations at December 31:

	2012			2011			2010
Discount rate		3.48	%		4.20	%		5.08	%

Weighted average assumptions used to determine net periodic benefit cost at December 31:

	2012			2011			2010
TTWU Plan
Discount rate		3.90	%		4.90	%		5.50	%
Expected long-term rate of return on plan assets		7.00	%		7.00	%		7.00	%
CLC Plan
Discount rate		4.50	%		5.25	%		5.70	%
Expected long-term rate of return on plan assets		8.00	%		8.00	%		8.00	%

Pension Plan Weighted-Average Asset Allocations by Asset Category

Our pension plan weighted-average asset allocations by asset category at December 31 are as follows:

	2012			2011
TTWU Plan
Equity securities and mutual funds		76.2	%		46.2	%
Debt securities		17.1	%		30.2	%
Other investments		—			20.9	%
Cash and cash equivalents		6.7	%		2.7	%
		100.0	%		100.0	%
CLC Plan
Equity securities and mutual funds		77.3	%		51.8	%
Debt securities		16.3	%		36.0	%
Other investments		—			9.7	%
Cash and cash equivalents		6.4	%		2.5	%
		100.0	%		100.0	%

Actual Retirement Plans' Asset Allocation by Level within Fair Value Hierarchy

Our actual retirement plans’ asset allocations by level within the fair value hierarchy at December 31, 2012, are presented in the table below (in thousands):

	TTWU Plan											CLC Plan
	Level 1		Level 2		Level 3		Total		% Total			Level 1		Level 2		Level 3		Total		% Total
Cash and cash equivalents	$	454	$	—	$	—	$	454		6.7	%	$	1,586	$	—	$	—	$	1,586		6.4	%
Mutual funds		4,564		618		—		5,182		76.2	%		15,367		3,766		—		19,133		77.3	%
Corporate bonds		—		551		—		551		8.1	%		—		1,902		—		1,902		7.7	%
Asset-backed securities		—		610		—		610		9.0	%		—		2,142		—		2,142		8.6	%
Total assets	$	5,018	$	1,779	$	—	$	6,797		100.0	%	$	16,953	$	7,810	$	—	$	24,763		100.0	%

Our actual retirement plans’ asset allocations by level within the fair value hierarchy at December 31, 2011, are presented in the table below (in thousands):

	TTWU Plan											CLC Plan
	Level 1		Level 2		Level 3		Total		% Total			Level 1		Level 2		Level 3		Total		% Total
Cash and cash equivalents	$	185	$	—	$	—	$	185		2.7	%	$	559	$	—	$	—	$	559		2.5	%
Equity securities		2,928		—		—		2,928		43.4	%		10,798		—		—		10,798		48.7	%
Mutual funds		188		—		—		188		2.8	%		683		—		—		683		3.1	%
Corporate bonds		—		1,462		—		1,462		21.7	%		—		5,975		—		5,975		27.0	%
Asset-backed securities		—		579		—		579		8.5	%		—		1,993		—		1,993		9.0	%
Other investments		—		311		1,097		1,408		20.9	%		—		1,051		1,103		2,154		9.7	%
Total assets	$	3,301	$	2,352	$	1,097	$	6,750		100.0	%	$	12,040	$	9,019	$	1,103	$	22,162		100.0	%

Reconciliation of Assets in Level3

The following is a reconciliation of assets in Level 3 of the fair value hierarchy (in thousands):

	TTWU			CLC
Beginning balance at January 1, 2011	$	1,313		$	1,108
Return on plan assets		24			(5	)
Expenses		(240	)		—
Balance at December 31, 2011	$	1,097		$	1,103
Return on plan assets		7			21
Expenses		—			—
Settlements		(709	)		—
Sales		(395	)		(1,124	)
Ending balance at December 31, 2012	$	—		$	—

Expected Benefit Payments

The following benefit payments are expected to be paid (in thousands):

2013	$	3,367
2014		3,363
2015		3,384
2016		3,389
2017		3,401
2018 – 2022		16,376

Multi Employer Pension Plans

Our participation in these plans is outlined in the table below (contributions in thousands):

Pension Plan	EIN/Pension Plan Number (1)		Pension Protection Act Zone Status (2)				FIP/RP Status Pending/ Implemented (3)		Contributions by us						Expiration Date of Collective- Bargaining Agreement
			2012		2011				2012		2011		2010
Employer-Teamsters Local Nos. 175 & 505 Pension Trust Fund		55-6021850		Yellow		Green		RP Pending	$	41	$	40	$	40		2/8/2016
New York State Teamsters Conference Pension and Retirement Fund		16-6063585		Red		Red		RP Adopted		140		87		75		7/14/2014
Central States Southeast and Southwest Areas Pension Fund		36-6044243		Red		Red		RP Adopted		2,647		2,435		2,366		5/31/2013 to 8/31/2015
									$	2,828	$	2,562	$	2,481

(1) The “EIN/Pension Plan Number” column provides the Employee Identification Number (EIN) and the three-digit plan number, if applicable.

(2) Unless otherwise noted, the most recent Pension Protection Act zone status available in 2012 and 2011 is for the plan’s year-end at December 31, 2011 and December 31, 2010, respectively. The zone status is based on information that we received from the plan. Among other factors, plans in the red zone are generally less than 65% funded, plans in the yellow zone are less than 80% funded, and plans in the green zone are at least 80% funded.

(3) The “FIP/RP Status Pending/Implemented” column indicates plans for which a financial improvement plan (FIP) or a rehabilitation plan (RP) is either pending or has been implemented. No surcharge has been imposed for any of these plans.

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Future Actuarial Gains or Losses (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Items not yet recognized as a component of net periodic cost:
Unrecognized net actuarial loss	$ 34,619
Unamortized prior service cost	323
Unrecognized loss and prior service costs recorded as a component of accumulated other comprehensive loss	34,942
Items to be recognized in 2013 as a component of net periodic cost:
Net actuarial loss	1,451
Prior service cost	94	94	94
Net periodic cost to be recorded in 2013 from accumulated other comprehensive loss	$ 1,545

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Stock-Based Compensation Expense Recognized for Each Types of Stock-Based Awards (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 3,238	$ 2,874	$ 2,273
Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	1,741	1,777	1,351
Unvested restricted stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 1,497	$ 1,097	$ 922

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Consolidated Statements of Shareholders' Deficit (USD $) In Thousands	Total	Shares of Common Stock	Shares of Treasury Stock	Common Stock	Treasury Stock	Retained Earnings	Stock Recapitalization	Accumulated Other Comprehensive Income (Loss)	Stock Purchase Warrants	Stock Subscription Receivables
Beginning Balance at Dec. 31, 2009	$ (140,736)			$ 364,046	$ (1,580)	$ (294,568)	$ (189,589)	$ (25,587)	$ 6,696	$ (154)
Beginning Balance (in shares) at Dec. 31, 2009		20,297	(220)
Net income (loss)	(7,406)					(7,406)
Issuance of restricted stock		69
Amortization of restricted stock	923			923
Amortization of stock options	1,350			1,350
Stock warrant exercise		1,311		5,013					(5,013)
Stock option exercise (in shares)		1
Stock option exercise	3			3
Forgiveness of stock subscription receivable	21									21
Satisfaction of stock subscription receivables				(47)	(13)					60
Other stock transactions	73									73
Translation adjustment, net of tax	(87)							(87)
Adjustment to pension obligation, net of tax	(520)							(520)
Ending Balance at Dec. 31, 2010	(146,379)			371,288	(1,593)	(301,974)	(189,589)	(26,194)	1,683
Ending Balance (in shares) at Dec. 31, 2010		21,678	(220)
Net income (loss)	23,431					23,431
Issuance of restricted stock		93
Forfeiture of restricted stock (shares)			(42)
Forfeiture of restricted stock	(272)				(272)
Amortization of restricted stock	1,097			1,097
Amortization of stock options	1,777			1,777
Stock warrant exercise		88		336					(336)
Stock option exercise (in shares)		348	(1)
Stock option exercise	1,768			1,781	(13)
Proceeds from equity offering, net of transaction costs (in shares)		2,000
Proceeds from equity offering, net of transaction costs	17,580			17,580
Satisfaction of stock subscription receivables			(4)
Translation adjustment, net of tax	26							26
Adjustment to pension obligation, net of tax	(5,213)							(5,213)
Ending Balance at Dec. 31, 2011	(106,185)			393,859	(1,878)	(278,543)	(189,589)	(31,381)	1,347
Ending Balance (in shares) at Dec. 31, 2011		24,207	(267)
Net income (loss)	50,076					50,076
Issuance of restricted stock		182
Forfeiture of restricted stock (shares)			(37)
Forfeiture of restricted stock	(313)				(313)
Amortization of restricted stock	1,497			1,497
Amortization of stock options	1,741			1,741
Stock warrant exercise		346		1,322					(1,322)
Stock option exercise (in shares)		82
Stock option exercise	360			360
Proceeds from equity offering, net of transaction costs (in shares)		2,500
Proceeds from equity offering, net of transaction costs	30,493			30,493
Issuance of stock for acquisitions (in shares)		785
Issuance of stock for acquisitions	7,920			7,920
Purchases of treasury stock (shares)			(575)
Purchases of treasury stock	(3,658)				(3,658)
Translation adjustment, net of tax	(43)							(43)
Adjustment to pension obligation, net of tax	(328)							(328)
Ending Balance at Dec. 31, 2012	$ (18,440)			$ 437,192	$ (5,849)	$ (228,467)	$ (189,589)	$ (31,752)	$ 25
Ending Balance (in shares) at Dec. 31, 2012		28,102	(879)

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Reconciliation of Total Amount of Unrecognized Tax Benefits (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Income Taxes [Line Items]
Total unrecognized tax benefits as of January 1,	$ 1,628	$ 1,585	$ 1,776
Increases in tax positions taken during prior period	359	425	160
Decreases in tax positions taken during prior period	(75)
Increases in tax positions taken in the current period	85
Decreases in tax positions taken in the current period	(20)
Settlements with taxing authorities	(85)
Decrease due to lapse of applicable statute of limitations	(240)	(382)	(351)
Total unrecognized tax benefits as of December 31,	$ 1,652	$ 1,628	$ 1,585

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Estimated Fair Values of Assets Acquired (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2012
Asset Acquisition [Line Items]
Equipment	$ 26,557	[1]
Non-compete agreements	400
Tradename	700
Customer-related intangibles	12,320
Contingent consideration	(6,800)
Goodwill	48,218	[1]
Fair Value of Assets Acquired, Total	$ 81,395

[1] A measurement period adjustment of $1.3 million was made in the fourth quarter of 2012 based on a real estate appraisal.

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Components of Net Periodic Pension Cost (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 166	$ 176	$ 203
Interest cost	2,102	2,420	2,575
Amortization of loss	1,352	1,177	1,200
Amortization of prior service cost	94	94	94
Expected return on plan assets	(2,219)	(2,298)	(2,161)
Net periodic pension cost	$ 1,495	$ 1,569	$ 1,911

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SELECTED QUARTERLY FINANCIAL DATA (Tables)

12 Months Ended

Dec. 31, 2012

SELECTED QUARTERLY FINANCIAL DATA

SELECTED QUARTERLY FINANCIAL DATA (Unaudited) (In thousands, except per share data)

	Quarter Ended
	March 31		June 30		September 30		December 31
2012
Operating revenues	$	191,915	$	212,733	$	222,078	$	215,392
Operating income		13,838		13,444		11,617		10,244
Net income		6,700		28,804		8,863		5,709
Income per share—basic		0.27		1.07		0.32		0.21
Income per share—diluted		0.26		1.04		0.32		0.21
2011
Operating revenues	$	177,910	$	189,993	$	199,298	$	178,750
Operating income		12,193		16,939		15,286		13,261
Net income		2,722		9,046		6,187		5,476
Income per share—basic		0.12		0.39		0.26		0.23
Income per share—diluted		0.12		0.37		0.25		0.22

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Restructuring - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2012 Facility	Dec. 31, 2011	Mar. 31, 2011	Dec. 31, 2010
Restructuring Cost and Reserve [Line Items]
Termination of non-driver positions	380
Accrued restructuring charges	$ 2,149	$ 2,782	$ 500	$ 5,449
Accrued related to restructuring charges, expected payment year	2017

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LONG-TERM INDEBTEDNESS

12 Months Ended

Dec. 31, 2012

LONG-TERM INDEBTEDNESS

15. LONG-TERM INDEBTEDNESS

Long-term debt consisted of the following at December 31 (in thousands):

	2012			2011
Capital lease obligations	$	6,038		$	9,101
ABL Facility		161,200			65,500
9.875% Second-Priority Senior Secured Notes, due 2018		225,000			225,000
5% Subordinated Acquisition Notes		21,300			—
Other Notes		6,533			8,943
Long-term debt, including current maturities		420,071			308,544
Discount on Notes		(1,265	)		(1,481	)
		418,806			307,063
Less current maturities of long-term debt (including capital lease obligations)		(7,831	)		(9,400	)
Long-term debt, less current maturities (including capital lease obligations)	$	410,975		$	297,663

The ABL Facility

Our ABL Facility provides for a revolving credit facility with a maturity of August 19, 2016. On September 27, 2012, our maximum borrowing capacity under the facility was increased from $250.0 million to $350.0 million. Borrowing availability under our ABL Facility did not change as a result of this amendment. Changes in borrowing availability result from increases or decreases in assets securing the ABL Facility. The ABL Facility includes borrowing capacity of up to $150.0 million for letters of credit and up to $30.0 million for swingline borrowings on same-day notice. The ABL Facility is available for working capital needs and general corporate purposes, including permitted acquisitions. At December 31, 2012, we had $55.2 million of borrowing availability under the ABL Facility.

Borrowings under the ABL Facility bear interest at a rate equal to an applicable margin plus, at our option, either a base rate or LIBOR. The applicable margin at December 31, 2012 was 1.25% for base rate borrowings and 2.25% for LIBOR borrowings. The applicable margin for borrowings will be reduced or increased based on aggregate borrowing base availability under the ABL Facility and may be further reduced in the event that our fixed charge coverage ratio as calculated under the ABL Facility exceeds a target level. The base rate is equal to the highest of the prime rate, the federal funds overnight rate plus 0.50% and 30-day LIBOR plus 1.00%. In addition to paying interest on outstanding principal under the ABL Facility, we are required to pay an unutilized commitment fee to the lenders quarterly at a rate ranging from 0.25% to 0.50%, depending on the average utilization of the ABL Facility. We also pay customary letter of credit fees quarterly. We may voluntarily repay outstanding loans under the ABL Facility at any time without premium or penalty, other than customary “breakage” costs with respect to LIBOR loans. The interest rate on the ABL Facility at December 31, 2012 and 2011 was 2.5% and 2.3%, respectively.

The borrowing base for the ABL Facility consists of eligible accounts receivable, inventory, tractor and trailer equipment, real property and certain other equipment.

We recorded $6.4 million in debt issuance costs relating to the ABL Facility. We are amortizing the debt issuance costs over the remaining term of the ABL Facility.

The Previous ABL Facility

Our ABL Facility replaced our previous ABL Facility on August 19, 2011. Our previous ABL Facility consisted of a current asset tranche in the amount of $205.0 million and a fixed asset tranche in the amount of $20.0 million. The previous ABL Facility included a sublimit of up to $150.0 million to issue letters of credit and was available for working capital needs and general corporate purposes, including permitted acquisitions. The interest rate under the current asset tranche was based, at our option, on either the administrative agent’s base rate plus 1.00% or on the Eurodollar LIBOR rate plus an applicable margin. The administrative agent’s base rate was equal to the greater of the federal funds overnight rate plus 0.50% or the prime rate. The interest rate under the fixed asset tranche was based, at our option, on either the administrative agent’s base rate plus 1.25% or on LIBOR plus an applicable margin. The applicable margin under either tranche was subject to increases or reductions based upon the amounts available for borrowing.

Accounting Treatment for the Exchange of ABL Facility for Previous ABL Facility and Amendment of ABL Facility

The exchange of our previous ABL Facility for the ABL Facility was treated partially as a debt modification and partially as a debt extinguishment in accordance with FASB guidance. Under applicable FASB guidance, we compared the product of the remaining term multiplied by the maximum borrowing capacity of our previous ABL Facility to the maximum borrowing capacity of the new arrangement on a creditor-by-creditor basis to determine the accounting treatment. For each creditor, if the borrowing capacity of the new arrangement is greater than or equal to the maximum borrowing capacity of the old arrangement, then the exchange is classified as a modification, and, if not, the exchange is classified as an extinguishment in proportion to the percentage of the decrease. If the exchange is classified as a modification, then any unamortized debt issuance costs relating to our previous ABL Facility are allocated to the ABL Facility and amortized over the term of the ABL Facility using the effective interest method. Furthermore, if the exchange is classified as an extinguishment, then any unamortized debt issuance costs relating to our previous ABL Facility are written off in proportion to the decrease in maximum borrowing capacity of the ABL Facility. Upon the exchange of our previous ABL Facility with the ABL Facility, we wrote off $0.9 million of unamortized debt issuance costs, reflecting the proportion of such costs determined to be for indebtedness treated as extinguished, and the remaining unamortized debt issuance costs of $1.3 million, relating to indebtedness deemed a modification, were allocated to the ABL Facility. The recent amendment to the ABL Facility was treated as a modification.

9.875% Second-Priority Senior Secured Notes Due 2018

On November 3, 2010, we issued $225.0 million aggregate principal amount of the 2018 Notes. With the proceeds of the issuance of the 2018 Notes, we repaid and redeemed certain of our outstanding notes, redeemed $47.5 million of our 2013 PIK Notes, and paid down a portion of our outstanding borrowings under the previous ABL Facility.

Interest on the 2018 Notes is payable at a rate of 9.875% per annum, semiannually on May 1 and November 1 of each year. The payment obligations of QD LLC and QD Capital under the 2018 Notes are guaranteed by QDI and by all of its 100% owned domestic subsidiaries other than immaterial subsidiaries. The 2018 Notes are senior obligations of QD LLC and QD Capital and are secured by a second-priority lien on certain assets. Pursuant to an intercreditor agreement, the liens on the collateral securing the 2018 Notes rank junior in right of payment to the ABL Facility and obligations under certain hedging agreements and cash management obligations and certain other first-lien obligations.

The 2018 Notes mature on November 1, 2018. Prior to November 1, 2014, we may redeem the 2018 Notes, in whole or in part, at a price equal to 100% of the principal amount of the 2018 Notes redeemed, plus accrued and unpaid interest to the redemption date, plus an additional “make-whole premium” intended to capture the value of holding 2018 Notes through November 1, 2014, but not less than 1%. During any twelve-month period prior to November 1, 2014, we may also redeem up to 10% of the original aggregate principal amount of the 2018 Notes at a redemption price of 103%, plus accrued and unpaid interest to the redemption date. Additionally, at any time prior to November 1, 2013, we may redeem up to 35% of the principal amount of the 2018 Notes at a redemption price of 109.875%, plus accrued and unpaid interest to the redemption date, with the net proceeds of one or more equity offerings so long as at least 50% of the aggregate original principal amount of the 2018 Notes remains outstanding afterwards. On or after November 1, 2014, we may redeem the 2018 Notes, in whole or in part, at the following prices (expressed as a percentage of principal amount), plus accrued and unpaid interest to the redemption date, if redeemed during the 12-month period commencing on November 1 of the years set forth below:

Period	Redemption Price
2014		104.938	%
2015		102.469	%
2016 and thereafter		100.000	%

We recorded $6.6 million in debt issuance costs relating to the 2018 Notes, of which $6.4 million was related to the new issuance and $0.2 million of unamortized debt issuance costs related to our 10% Senior Notes due 2013 which are no longer outstanding. We are amortizing these costs over the term of the 2018 Notes.

5% Subordinated Acquisition Notes

In 2012, we issued promissory notes in an aggregate principal amount of $21.3 million as part of the consideration for the Bice acquisition. The promissory notes bear interest at a fixed rate of 5.0% per annum and mature June 1, 2017. Payments of interest only are scheduled for the end of each calendar quarter with principal payable in full at maturity. The promissory notes are unsecured and subordinated. The notes are non-negotiable and non-transferable and may be prepaid at any time without premium or penalty.

11.75% Senior Subordinated PIK Notes Due 2013

On October 15, 2009, we issued $80.7 million aggregate principal amount of the 2013 PIK Notes. The payment obligations of QD LLC and QD Capital under the 2013 PIK Notes were guaranteed by QDI and by all of its domestic subsidiaries other than immaterial subsidiaries. The 2013 PIK Notes were unsecured senior subordinated obligations of QD LLC and QD Capital. Interest was payable on the 2013 PIK Notes at 11.75% per annum, payable 9% in cash and 2.75% in the form of additional 2013 PIK Notes.

At January 1, 2011, the outstanding principal balance of these notes was $33.3 million. On January 20, 2011, we redeemed $10.0 million of these notes plus accrued and unpaid interest. On March 11, 2011, we redeemed $17.5 million of these notes plus accrued and unpaid interest. We redeemed the remaining $5.8 million of principal amount of our 2013 PIK Notes in July 2011.

We recorded $1.5 million in debt issuance costs related to the 2013 PIK Notes and we recorded $6.7 million in note issuance discount due to warrants issued concurrently with the issuance of the 2013 PIK Notes. At January 1, 2011, $2.1 million of unamortized debt issuance costs and original issue discount remained. In conjunction with the January 20, 2011 and March 11, 2011 redemptions, we wrote off $1.8 million of unamortized debt issuance costs and unamortized original issue costs in the first quarter of 2011. In conjunction with the July 20, 2011 final redemption, we wrote off the remaining $0.3 million of unamortized debt issuance costs and unamortized original issue costs in the third quarter of 2011.

Collateral, Guarantees and Covenants

The ABL Facility contains a fixed charge coverage ratio which only needs to be met if borrowing availability is less than a designated amount ranging from $20.0 million to $35.0 million, depending upon the size of our borrowing base. The ABL Facility contains a number of covenants that, among other things, restrict, subject to certain exceptions, our ability to sell assets; incur additional indebtedness; prepay other indebtedness, including the 2018 Notes; pay dividends and distributions or repurchase QDI’s capital stock; create liens on assets; make investments; make certain acquisitions; engage in mergers or consolidations; engage in certain transactions with affiliates; amend certain charter documents and material agreements governing subordinated indebtedness, including the 2018 Notes; change our business; and enter into agreements that restrict dividends from QD LLC’s subsidiaries. The ABL Facility also contains certain customary affirmative covenants and events of default.

The indenture governing the 2018 Notes contains covenants that restrict, subject to certain exceptions, our ability to, among other things: (i) incur additional debt or issue certain preferred shares; (ii) pay dividends on or make other distributions in respect of QDI’s common stock or make other restricted payments; (iii) make certain investments; (iv) sell certain assets; (v) create or permit to exist dividend and/or payment restrictions affecting their restricted subsidiaries; (vi) create liens on certain assets to secure debt; (vii) consolidate, merge, sell or otherwise dispose of all or substantially all of their assets; (viii) enter into certain transactions with their affiliates; and (ix) designate their subsidiaries as unrestricted subsidiaries. The indenture also provides certain customary events of default, which, if any of them occurs, may result in the principal, interest and any other monetary obligations on the then outstanding 2018 Notes becoming payable immediately.

The payment obligations under the ABL Facility are senior secured obligations of QD LLC and QD Capital and are secured by a first-priority lien on certain assets and guaranteed by QDI and by all of its domestic restricted subsidiaries other than immaterial subsidiaries. The payment obligations of QD LLC and QD Capital under the 2018 Notes are guaranteed by QDI and by all of its domestic subsidiaries other than immaterial subsidiaries. The 2018 Notes, and the guarantees thereof, are senior obligations of QD LLC and QD Capital and are secured by a second-priority lien on certain assets. Pursuant to an intercreditor agreement, the liens on the collateral securing the 2018 Notes rank junior in right of payment to the ABL Facility and obligations under certain hedging agreements and cash management obligations and certain other first lien obligations. We were in compliance with the covenants under the ABL Facility and the 2018 Notes at December 31, 2012.

Debt Retirement

The following is a schedule of our total indebtedness outstanding at December 31, 2012 over the periods we are required to pay such indebtedness (in thousands):

	2013		2014		2015		2016		2017		Thereafter		Total
Capital lease obligations	$	3,912	$	1,610	$	333	$	106	$	77		—	$	6,038
ABL Facility		—		—		—		161,200		—		—		161,200
9.875% Second-Priority Senior Secured Notes, due 2018 (1)		—		—		—		—		—		225,000		225,000
5% Subordinated Acquisition Notes		—		—		—		—		21,300		—		21,300
Other Notes		3,919		1,265		1,084		265		—		—		6,533
Total	$	7,831	$	2,875	$	1,417	$	161,571	$	21,377		225,000	$	420,071

(1) Amount does not include the remaining unamortized original issue discount of approximately $1.3 million related to the 2018 Notes.

The following is a schedule of our debt issuance costs for the year ended (in thousands):

	December 31, 2011		Additional Debt Issuance Costs		2012 Amortization Expense			December 31, 2012
ABL Facility	$	5,094	$	989	$	(1,238	)	$	4,845
9.875% Second-Priority Senior Secured Notes, due 2018		5,560		—		(895	)		4,665
Total	$	10,654	$	989	$	(2,133	)	$	9,510

Amortization expense of debt issuance costs was $2.1 million, $2.1 million, and $2.7 million for years ending December 31, 2012, 2011, and 2010, respectively, and is included in interest expense.

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RESTRUCTURING (Tables)

12 Months Ended

Dec. 31, 2012

Restructuring Accruals

In the year ended December 31, 2012, we had the following activity in our restructuring accrual (in thousands):

	Balance at December 31, 2011		Payments			Balance at December 31, 2012
Restructuring accrual	$	2,782	$	(633	)	$	2,149

In the year ended December 31, 2011, we had the following activity in our restructuring accrual (in thousands):

	Balance at December 31, 2010		Payments			Reductions			Balance at December 31, 2011
Restructuring accrual	$	5,449	$	(2,146	)	$	(521	)	$	2,782

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Accumulated Other Comprehensive Loss (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Defined Benefit Plan Disclosure [Line Items]
Net actuarial loss, net of tax	$ (422)	$ (5,307)	$ (614)
Prior service cost	94	94	94
Adjustment to pension benefit obligation	$ (328)	$ (5,213)	$ (520)

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EMPLOYEE BENEFIT PLANS

12 Months Ended

Dec. 31, 2012

EMPLOYEE BENEFIT PLANS

17. EMPLOYEE BENEFIT PLANS

We

maintain two noncontributory defined benefit plans resulting from a prior acquisition that cover certain vested salaried participants and retirees (“CLC Plan”) and certain other vested participants and retirees under an expired collective bargaining agreement (“TTWU Plan”). Retirement benefits for employees covered by the CLC Plan are based on years of service and compensation levels. The monthly benefit for employees under the TTWU Plan is based on years of service multiplied by a monthly benefit factor. Pension costs are funded in accordance with the provisions of the applicable law. Both pension plans have been frozen since prior to January 1, 1998. There are no new participants and no future accruals of benefits from the time the plans were frozen.

We use a December 31 measurement date for both of our plans.

We follow the recognition and disclosure requirements under the FASB guidance that require us to recognize the funded status of our postretirement benefit plans in the consolidated statement of financial position at December 31, 2012, with a corresponding adjustment to accumulated other comprehensive loss. The funded status is the difference between the fair value of plan assets and the benefit obligation. The adjustment to accumulated other comprehensive loss represents the net unrecognized actuarial gains or losses and unrecognized prior service costs. Future actuarial gains or losses that are not recognized as net periodic benefit cost in the same periods will be recognized as a component of other comprehensive loss (in thousands):

	2012
Items not yet recognized as a component of net periodic cost:
Unrecognized net actuarial loss	$	34,619
Unamortized prior service cost		323
Unrecognized loss and prior service costs recorded as a component of accumulated other comprehensive loss	$	34,942
Items to be recognized in 2013 as a component of net periodic cost:
Net actuarial loss	$	1,451
Prior service cost		94
Net periodic cost to be recorded in 2013 from accumulated other comprehensive loss	$	1,545

Obligations and Funded Status

The following table sets forth the change in the projected benefit obligation, change in plan assets and unfunded status of the two plans at 2012 and 2011 (in thousands):

	2012			2011
Change in Projected Benefit Obligation
Benefit obligation at January 1,	$	51,557		$	48,630
Settlement		(1,813	)		—
Service cost		166			176
Interest cost		2,102			2,420
Actuarial loss		3,827			3,785
Benefits and expenses paid		(3,202	)		(3,454	)
Benefit obligation at December 31,	$	52,637		$	51,557

	2012			2011
Change in Plan Assets
Fair value of plan assets at January 1,	$	28,912		$	29,947
Settlement		(709	)		—
Actual return (loss) on plan assets		2,916			(400	)
Contributions by Company		3,643			2,819
Benefits and expenses paid		(3,202	)		(3,454	)
Fair value of plan assets at December 31,	$	31,560		$	28,912

	2012			2011
Unfunded Status of Plans
Projected benefit obligation	$	(52,637	)	$	(51,557	)
Fair value of plan assets		31,560			28,912
Unfunded status as of December 31,	$	(21,077	)	$	(22,645	)

The accumulated benefit obligation for both defined benefit pension plans equaled the projected benefit obligations of $52.6 million and $51.6 million at December 31, 2012 and 2011, respectively.

We had the following net pension equity charges (after-tax) that were recorded as part of other comprehensive loss and accumulated other comprehensive loss:

	2012			2011			2010
Net actuarial loss, net of tax	$	(422	)	$	(5,307	)	$	(614	)
Prior service cost		94			94			94
Adjustment to pension benefit obligation	$	(328	)	$	(5,213	)	$	(520	)

Periodic Pension Costs

The components of net periodic pension cost are as follows for the years ended December 31 (in thousands):

	2012			2011			2010
Service cost	$	166		$	176		$	203
Interest cost		2,102			2,420			2,575
Amortization of loss		1,352			1,177			1,200
Amortization of prior service cost		94			94			94
Expected return on plan assets		(2,219	)		(2,298	)		(2,161	)
Net periodic pension cost	$	1,495		$	1,569		$	1,911

Assumptions

Weighted average assumptions used to determine benefit obligations at December 31:

	2012			2011			2010
Discount rate		3.48	%		4.20	%		5.08	%

Weighted average assumptions used to determine net periodic benefit cost at December 31:

	2012			2011			2010
TTWU Plan
Discount rate		3.90	%		4.90	%		5.50	%
Expected long-term rate of return on plan assets		7.00	%		7.00	%		7.00	%
CLC Plan
Discount rate		4.50	%		5.25	%		5.70	%
Expected long-term rate of return on plan assets		8.00	%		8.00	%		8.00	%

The discount rate is based on a model portfolio of AA-rated bonds with a maturity matched to the estimated payouts of future pension benefits. The TTWU Plan’s expected return on plan assets is based on our expectation of the long-term average rate of return on assets in the pension funds, which is based on the allocation of assets. The CLC Plan’s expected return on plan assets is based on historical and future returns of the multiple asset classes from which a weighted average was developed based on the asset allocation of the Plan.

Asset Mix

Our pension plan weighted-average asset allocations by asset category at December 31 are as follows:

	2012			2011
TTWU Plan
Equity securities and mutual funds		76.2	%		46.2	%
Debt securities		17.1	%		30.2	%
Other investments		—			20.9	%
Cash and cash equivalents		6.7	%		2.7	%
		100.0	%		100.0	%
CLC Plan
Equity securities and mutual funds		77.3	%		51.8	%
Debt securities		16.3	%		36.0	%
Other investments		—			9.7	%
Cash and cash equivalents		6.4	%		2.5	%
		100.0	%		100.0	%

Plan Assets

Our investment policy is that plan assets will be managed utilizing an investment philosophy and approach characterized by all of the following, but listed in priority order: (1) emphasis on total return, (2) emphasis on high-quality securities, (3) sufficient income and stability of income, (4) safety of principal with limited volatility of capital through proper diversification and (5) sufficient liquidity. None of our equity or debt securities are included in plan assets.

Our retirement plans’ assets were accounted for at fair value and are classified in their entirety based on the lowest level of any input that is significant to the fair value measurement. For a description of the fair value hierarchy, see Note 4.

Our actual retirement plans’ asset allocations by level within the fair value hierarchy at December 31, 2012, are presented in the table below (in thousands):

	TTWU Plan											CLC Plan
	Level 1		Level 2		Level 3		Total		% Total			Level 1		Level 2		Level 3		Total		% Total
Cash and cash equivalents	$	454	$	—	$	—	$	454		6.7	%	$	1,586	$	—	$	—	$	1,586		6.4	%
Mutual funds		4,564		618		—		5,182		76.2	%		15,367		3,766		—		19,133		77.3	%
Corporate bonds		—		551		—		551		8.1	%		—		1,902		—		1,902		7.7	%
Asset-backed securities		—		610		—		610		9.0	%		—		2,142		—		2,142		8.6	%
Total assets	$	5,018	$	1,779	$	—	$	6,797		100.0	%	$	16,953	$	7,810	$	—	$	24,763		100.0	%

Our actual retirement plans’ asset allocations by level within the fair value hierarchy at December 31, 2011, are presented in the table below (in thousands):

	TTWU Plan											CLC Plan
	Level 1		Level 2		Level 3		Total		% Total			Level 1		Level 2		Level 3		Total		% Total
Cash and cash equivalents	$	185	$	—	$	—	$	185		2.7	%	$	559	$	—	$	—	$	559		2.5	%
Equity securities		2,928		—		—		2,928		43.4	%		10,798		—		—		10,798		48.7	%
Mutual funds		188		—		—		188		2.8	%		683		—		—		683		3.1	%
Corporate bonds		—		1,462		—		1,462		21.7	%		—		5,975		—		5,975		27.0	%
Asset-backed securities		—		579		—		579		8.5	%		—		1,993		—		1,993		9.0	%
Other investments		—		311		1,097		1,408		20.9	%		—		1,051		1,103		2,154		9.7	%
Total assets	$	3,301	$	2,352	$	1,097	$	6,750		100.0	%	$	12,040	$	9,019	$	1,103	$	22,162		100.0	%

Level 1 includes cash and cash equivalents, equity securities and mutual funds. Fair values for these investments are measured using unadjusted quoted prices in active markets.

Level 2 includes investments in corporate bonds and asset-backed securities that are measured based on quoted prices for similar assets in active markets; quoted prices for identical or similar assets in inactive markets; inputs other than quoted prices that are observable for the asset; and inputs that are derived principally from or corroborated by observable market data by correlation or other means. The fair values for Level 2 assets are generally obtained from third-party broker quotes, independent pricing services and exchanges.

Level 3 includes investments in an interval fund containing a lock-up period that are valued using unobservable inputs. Valuation may be performed using a financial model with estimated inputs entered into the model.

The following is a reconciliation of assets in Level 3 of the fair value hierarchy (in thousands):

	TTWU			CLC
Beginning balance at January 1, 2011	$	1,313		$	1,108
Return on plan assets		24			(5	)
Expenses		(240	)		—
Balance at December 31, 2011	$	1,097		$	1,103
Return on plan assets		7			21
Expenses		—			—
Settlements		(709	)		—
Sales		(395	)		(1,124	)
Ending balance at December 31, 2012	$	—		$	—

Cash Flows

We expect to contribute $0.9 million to the TTWU pension plan and $2.3 million to the CLC pension plan during the year ending December 31, 2013.

The following benefit payments are expected to be paid (in thousands):

2013	$	3,367
2014		3,363
2015		3,384
2016		3,389
2017		3,401
2018 – 2022		16,376

In 2001, we established a Deferred Compensation Plan for our executives and other key employees. The plan is a non-qualified deferral plan that allows participants to contribute a portion of their wages on a pre-tax basis and includes a death benefit. No contributions were made in 2012, 2011 and 2010. Effective December 31, 2010, this plan was frozen and no future contributions will be made to the plan.

Substantially all of our U.S. employees are entitled to participate in our profit sharing plan established under Section 401(k) of the U.S. Internal Revenue Code. Employees are eligible to contribute voluntarily to the plan after 90 days of employment. At our discretion, we may also contribute to the plan. Employees are always vested in their contributed balance and become fully vested in our contributions after four years of service. The expenses related to contributions to the plan for the years ended December 31, 2012, 2011 and 2010 were approximately $0.3 million, $0.2 million and $0.3 million, respectively.

Multi-employer pension plans

We contribute to multi-employer pension plans under the terms of collective bargaining agreements that cover union-represented employees. The risk of participating in these multi-employer pension plans are different from a single-employer pension plan in the following aspects: (a) assets contributed to a multi-employer pension plan by one employer may be used to provide benefits to employees of other participating employers; (b) if a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers; and (c) if an employer chooses to stop participating in a plan, it may be required to pay those plans an amount based on the unfunded status of the plan, referred to as a withdrawal liability.

At December 31, 2012, we contributed to three separate multi-employer pension plans for employees under collective bargaining agreements. These agreements cover approximately 2.4% of our total workforce including our independent affiliates’ employees and independent owner-operators providing service to us. These multi-employer pension plans provide defined benefits to retired participants. We do not directly or indirectly manage any of these multi-employer pension plans. Trustees, half of whom are appointed by the International Brotherhood of Teamsters (the “Teamsters”) and half of whom various contributing employers appoint, manage the trusts covering these plans. Our collective bargaining agreements with the Teamsters determine the amounts of our ongoing contributions to these plans.

Our participation in these plans is outlined in the table below (contributions in thousands):

Pension Plan	EIN/Pension Plan Number (1)		Pension Protection Act Zone Status (2)				FIP/RP Status Pending/ Implemented (3)		Contributions by us						Expiration Date of Collective- Bargaining Agreement
			2012		2011				2012		2011		2010
Employer-Teamsters Local Nos. 175 & 505 Pension Trust Fund		55-6021850		Yellow		Green		RP Pending	$	41	$	40	$	40		2/8/2016
New York State Teamsters Conference Pension and Retirement Fund		16-6063585		Red		Red		RP Adopted		140		87		75		7/14/2014
Central States Southeast and Southwest Areas Pension Fund		36-6044243		Red		Red		RP Adopted		2,647		2,435		2,366		5/31/2013 to 8/31/2015
									$	2,828	$	2,562	$	2,481

(1) The “EIN/Pension Plan Number” column provides the Employee Identification Number (EIN) and the three-digit plan number, if applicable.

(2) Unless otherwise noted, the most recent Pension Protection Act zone status available in 2012 and 2011 is for the plan’s year-end at December 31, 2011 and December 31, 2010, respectively. The zone status is based on information that we received from the plan. Among other factors, plans in the red zone are generally less than 65% funded, plans in the yellow zone are less than 80% funded, and plans in the green zone are at least 80% funded.

(3) The “FIP/RP Status Pending/Implemented” column indicates plans for which a financial improvement plan (FIP) or a rehabilitation plan (RP) is either pending or has been implemented. No surcharge has been imposed for any of these plans.

We do not currently intend to withdraw from the three multi-employer pension plans or take any actions that would subject us to payment of contingent obligations upon withdrawal from such plans. Based on information provided to us from the trustees of these plans, we estimate our portion of the contingent liability in the case of a full withdrawal or termination from these plans to be approximately $73.8 million, of which $68.8 million relates to the Central States Southeast and Southwest Areas Pension Plan.

In conjunction with our prior restructuring efforts, during the quarter ended September 30, 2010, we notified the trustees of three other pension plans of our intention to withdraw from those plans. Our withdrawal notifications were originally estimated to result in an aggregate withdrawal liability of approximately $2.0 million and we recorded a restructuring charge for this full amount in the third quarter of 2010. During the first nine months of 2011, we made aggregate payments of approximately $1.5 million to fully discharge the liabilities under those three pension plans and recorded a restructuring credit of $0.5 million in the second quarter of 2011.

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Summarized Segment Data and Reconciliation to Operating Income (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
OPERATING REVENUES:
Transportation									$ 597,406	$ 517,780	$ 498,446
Service revenue									121,101	110,588	107,474
Fuel surcharge									123,611	117,583	80,678
Total operating revenues	215,392	222,078	212,733	191,915	178,750	199,298	189,993	177,910	842,118	745,951	686,598
Depreciation and amortization									21,090	14,413	16,004
Other (income) expense, net									(988)	(1,839)	8,915
Operating income	10,244	11,617	13,444	13,838	13,261	15,286	16,939	12,193	49,143	57,679	36,735
Operating Segments
OPERATING REVENUES:
Operating income									69,245	70,253	61,654
Chemical Logistics
OPERATING REVENUES:
Transportation									423,077	429,769	442,576
Service revenue									67,632	67,414	70,470
Fuel surcharge									105,767	103,487	72,053
Total operating revenues									596,476	600,670	585,099
Depreciation and amortization									11,293	10,418	13,033
Other (income) expense, net									(1,327)	(1,684)	8,901
Operating income									27,843	39,710	22,857
Chemical Logistics | Operating Segments
OPERATING REVENUES:
Operating income									37,809	48,444	44,791
Energy Logistics
OPERATING REVENUES:
Transportation									105,679	29,432
Service revenue									8,461	1,006
Fuel surcharge									926	64
Total operating revenues									115,066	30,502
Depreciation and amortization									6,310	785
Other (income) expense, net									391
Operating income									5,476	2,296
Energy Logistics | Operating Segments
OPERATING REVENUES:
Operating income									12,177	3,081
Intermodal
OPERATING REVENUES:
Transportation									68,650	58,579	55,870
Service revenue									45,008	42,168	37,004
Fuel surcharge									16,918	14,032	8,625
Total operating revenues									130,576	114,779	101,499
Depreciation and amortization									3,487	3,210	2,971
Other (income) expense, net									(52)	(155)	14
Operating income									15,824	15,673	13,878
Intermodal | Operating Segments
OPERATING REVENUES:
Operating income									$ 19,259	$ 18,728	$ 16,863

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Equity Incentive Plan Activity (Detail) (Two Thousand Twelve Equity Incentive Plan, USD $) In Thousands, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2012
Two Thousand Twelve Equity Incentive Plan
2012 option activity:
Granted	48
Exercised
Canceled
Ending Balance	48
Options exercisable and expected to vest at December 31, 2012
Weighted Average Exercise Price Per Share
Granted	$ 10.54
Exercised
Canceled
Ending balance	$ 10.54
Options exercisable and expected to vest at December 31, 2012
Aggregate Intrinsic Value
Options exercisable and expected to vest at December 31, 2012		[1]

[1] The intrinsic value of a stock option is the amount by which the market value of the underlying stock as of December 31, 2012 exceeds the exercise price of the option multiplied by the number of shares represented by such option.

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Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Cash flows from operating activities:
Net income (loss)	$ 50,076	$ 23,431	$ (7,406)
Adjustments to reconcile to net cash and cash equivalents provided by (used in) operating activities:
Deferred income tax provision (benefit)	7,174	8,500	(2,792)
Depreciation and amortization	21,090	14,413	16,004
Bad debt expense (recoveries)	120	(800)	(1,279)
(Gain ) loss on disposal of property and equipment	(988)	(1,318)	1,136
PIK interest on Senior Subordinated Notes		196	2,027
Financing costs			174
Unconsummated stock offering costs			735
Write-off of deferred financing costs		1,468	2,946
Write-off of bond discount		1,713	4,445
Stock-based compensation	3,238	2,874	2,273
Amortization of deferred financing costs	2,133	2,118	2,742
Amortization of bond discount	216	333	2,231
Contingent consideration adjustment	(2,651)
Noncontrolling interest dividends		38	145
(Benefit from) provision for deferred tax asset valuation allowance	(35,282)	(8,500)	2,792
Changes in assets and liabilities:
Accounts receivables	(24,166)	(7,738)	(9,155)
Prepaid expenses	727	2,793	4,212
Other assets	(5,340)	1,021	(3,458)
Accounts payable	1,964	(743)	579
Accrued expenses	(508)	(1,881)	3,202
Environmental liabilities	(1,059)	(843)	(705)
Accrued loss and damage claims	(1,562)	(543)	(471)
Independent affiliates and independent owner-operators payable	4,448	(1,264)	1,325
Other liabilities	(1,669)	(852)	(782)
Current income taxes	(959)	983	151
Net cash provided by (used in) operating activities	17,002	35,399	21,071
Cash flows from investing activities:
Capital expenditures	(32,317)	(38,340)	(11,184)
Acquisition of business		(8,594)
Acquisition of Greensville Transport Company purchase price adjustment	(566)
Proceeds from sales of property and equipment	13,497	16,476	10,105
Net cash used in investing activities	(131,683)	(30,458)	(1,079)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of long-term debt			223,479
Principal payments on long-term debt	(4,754)	(38,075)	(205,615)
Principal payments on capital lease obligations	(3,786)	(4,532)	(5,162)
Proceeds from revolver	236,800	175,457	59,200
Payments on revolver	(141,100)	(148,457)	(88,700)
Payments on acquisition notes	(465)	(632)	(917)
Financing costs			(174)
Deferred financing costs	(989)	(4,965)	(5,594)
Unconsummated stock offering costs			(735)
Change in book overdraft	431	1,085	441
Purchases of treasury stock	(3,658)
Noncontrolling interest dividends		(38)	(145)
Redemption of noncontrolling interest		(1,833)
Proceeds from equity offering, net of transaction costs	30,493	17,580
Proceeds from exercise of stock options	360	1,768	43
Net cash provided by (used in) financing activities	113,332	(2,642)	(23,879)
Effect of exchange rate changes on cash		1	7
Net (decrease) increase in cash and cash equivalents	(1,349)	2,300	(3,880)
Cash and cash equivalents, beginning of year	4,053	1,753	5,633
Cash and cash equivalents, end of year	2,704	4,053	1,753
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION Cash paid during the year for:
Interest	27,409	26,535	29,427
Income Taxes	1,538	949	494
SUPPLEMENTAL DISCLOSURES OF NON-CASH FLOW INFORMATION:
Minimum pension liability accrual, net of tax	1,989	6,484	1,813
Original and amended capital lease obligations and lease residual guarantees	7,688	2,153	846
Notes payable for purchase of business assets or acquisitions	21,300	497	784
Notes payable-insurance fundings	2,011	2,062	1,582
Earnouts related to acquisitions	11,533	418
Liabilities assumed with the acquisition of Greensville Transport Company		821
Stock issuance related to acquisitions	7,920
Greensville
Cash flows from investing activities:
Acquisition of business		(8,594)
Trojan
Cash flows from investing activities:
Acquisition of business	(8,657)
Bice And R M
Cash flows from investing activities:
Acquisition of business	(52,176)
Dunns Tank Service And Nassau Disposal Inc
Cash flows from investing activities:
Acquisition of business	(34,321)
Affiliate Acquisition
Cash flows from investing activities:
Acquisition of business	$ (17,143)

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Consolidated Statements of Comprehensive Income (Loss) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Net income (loss)	$ 50,076	$ 23,431	$ (7,406)
Other comprehensive loss:
Adjustment to pension obligation, net of tax	(328)	(5,213)	(520)
Translation adjustment, net of tax	(43)	26	(87)
Total other comprehensive loss	(371)	(5,187)	(607)
Comprehensive income (loss)	$ 49,705	$ 18,244	$ (8,013)

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GEOGRAPHIC INFORMATION

12 Months Ended

Dec. 31, 2012

GEOGRAPHIC INFORMATION

10. GEOGRAPHIC INFORMATION

Our operations are located primarily in the United States, Canada, and Mexico. Inter-area sales are not significant to the total revenue of any geographic area. Information about our operations in different geographic areas for the years ended December 31 is as follows (in thousands):

	2012
	U.S.		International		Consolidated
Total operating revenues	$	802,715	$	39,403	$	842,118
Operating income		42,346		6,797		49,143
Long-term identifiable assets (1)		184,510		5,832		190,342

	2011
	U.S.		International		Consolidated
Total operating revenues	$	700,641	$	45,310	$	745,951
Operating income		50,083		7,596		57,679
Long-term identifiable assets (1)		119,879		6,013		125,892

	2010
	U.S.		International		Consolidated
Total operating revenues	$	648,634	$	37,964	$	686,598
Operating income		32,086		4,649		36,735
Long-term identifiable assets (1)		106,148		7,271		113,419

(1) Includes property and equipment.

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Reconciliation of Assets in Level Three (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Defined Benefit Plan Disclosure [Line Items]
Settlements	$ (709)
Ttwu Plan
Defined Benefit Plan Disclosure [Line Items]
Beginning balance	1,097	1,313
Return on plan assets	7	24
Expenses		(240)
Settlements	(709)
Sales	(395)
Ending balance		1,097
Clc Plan
Defined Benefit Plan Disclosure [Line Items]
Beginning balance	1,103	1,108
Return on plan assets	21	(5)
Sales	(1,124)
Ending balance		$ 1,103

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Rollforward of Valuation Allowance (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Income Taxes [Line Items]
Beginning balance	$ (39,540)	$ (46,025)	$ (43,032)
Change in assessments about the realization of deferred income tax assets	35,282	6,485	(2,993)
Ending balance	$ (4,258)	$ (39,540)	$ (46,025)

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Income Taxes - Additional Information (Detail) (USD $)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Income Taxes [Line Items]
Defered tax benefit prior year valuation allowance	$ 7,174,000	$ 8,500,000	$ (2,792,000)
Unrecognized tax benefit	1,652,000	1,628,000	1,585,000	1,776,000
Unrecognized tax benefit that, if recognized, would favorably affect the effective income tax rate in any future periods	1,000,000
Unrecognized tax benefits related to tax positions for which it is reasonably possible that the total amounts could significantly change during the next twelve months due to expiration of the applicable statute of limitations	100,000
Recognized additional expense of interest and penalties in provision for income taxes	100,000
Net of federal tax benefit accrued for interest	400,000	500,000
Accrued for penalties	200,000	200,000
Current year
Income Taxes [Line Items]
Defered tax benefit prior year valuation allowance	28,100,000
Prior Year
Income Taxes [Line Items]
Defered tax benefit prior year valuation allowance	35,300,000
Minimum
Income Taxes [Line Items]
Tax credit carryforwards	2,300,000
Net operating loss carryforwards expiration year	2018
Maximum
Income Taxes [Line Items]
Net operating loss carryforwards expiration year	2030
Internal Revenue Service (IRS)
Income Taxes [Line Items]
Defered tax benefit prior year valuation allowance	7,038,000	7,529,000	(2,743,000)
Net operating loss carryforwards	75,100,000
Unrecognized federal net operating loss carryforwards	3,600,000
Foreign Tax Authority
Income Taxes [Line Items]
Tax credit carryforwards	$ 5,300,000

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Condensed Consolidating Statement of Cash Flows (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Cash flows from operating activities:
Net (loss) income	$ 50,076	$ 23,431	$ (7,406)
Adjustments for non-cash charges	(4,950)	21,035	33,579
Net changes in assets and liabilities	(28,124)	(9,067)	(5,102)
Net cash provided by (used in) operating activities	17,002	35,399	21,071
Cash flows from investing activities:
Capital expenditures	(32,317)	(38,340)	(11,184)
Greensville purchase price adjustment	(566)
Acquisition of business		(8,594)
Proceeds from sales of property and equipment	13,497	16,476	10,105
Net cash used in investing activities	(131,683)	(30,458)	(1,079)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of long-term debt			223,479
Principal payments on long-term debt and capital lease obligations	(8,540)	(42,607)	(210,777)
Proceeds from revolver	236,800	175,457	59,200
Payments on revolver	(141,100)	(148,457)	(88,700)
Deferred financing costs	(989)	(4,965)	(5,594)
Redemption of noncontrolling interest		(1,833)
Proceeds from equity offering, net of transaction costs	30,493	17,580
Proceeds from exercise of stock options	360	1,768	43
Purchases of treasury stock	(3,658)
Other	(34)	415	(1,487)
Net cash provided by (used in) financing activities	113,332	(2,642)	(23,879)
Effect of exchange rate changes on cash		1	7
Net decrease in cash and cash equivalents	(1,349)	2,300	(3,880)
Cash and cash equivalents, beginning of year	4,053	1,753	5,633
Cash and cash equivalents, end of year	2,704	4,053	1,753
Trojan
Cash flows from investing activities:
Acquisition of business	(8,657)
Bice And R M
Cash flows from investing activities:
Acquisition of business	(52,176)
Dunns Tank Service And Nassau Disposal Inc
Cash flows from investing activities:
Acquisition of business	(34,321)
Affiliate Acquisition
Cash flows from investing activities:
Acquisition of business	(17,143)
QDI
Cash flows from operating activities:
Net (loss) income	50,076	23,431	(7,406)
Adjustments for non-cash charges	(46,838)	(20,668)	9,566
Net changes in assets and liabilities	(2,908)	(158)	140
Intercompany activity	(330)	(2,605)	(2,300)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from equity offering, net of transaction costs	30,493	17,580
Proceeds from exercise of stock options	360	1,768
Purchases of treasury stock	(3,658)
Other			(692)
Intercompany activity	(27,195)	(19,348)	692
QD LLC and QD Capital
Cash flows from operating activities:
Net (loss) income	53,382	23,542	(6,598)
Adjustments for non-cash charges	(79,562)	(49,029)	(20,673)
Net changes in assets and liabilities	1,305	(1,238)	(1,017)
Intercompany activity	24,875	26,725	28,288
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of long-term debt			223,479
Principal payments on long-term debt and capital lease obligations		(33,378)	(201,085)
Proceeds from revolver	236,800	175,457	59,200
Payments on revolver	(141,100)	(148,457)	(88,700)
Deferred financing costs	(989)	(4,965)	(5,594)
Other			(319)
Intercompany activity	(94,711)	11,343	13,019
Guarantor Subsidiaries
Cash flows from operating activities:
Net (loss) income	52,692	25,963	(414)
Adjustments for non-cash charges	15,204	40,760	50,553
Net changes in assets and liabilities	(26,519)	(8,666)	(5,340)
Intercompany activity	(23,986)	(22,592)	(24,305)
Net cash provided by (used in) operating activities	17,391	35,465	20,494
Cash flows from investing activities:
Capital expenditures	(32,317)	(38,340)	(11,184)
Greensville purchase price adjustment	(566)
Acquisition of business		(8,594)
Proceeds from sales of property and equipment	13,497	16,476	10,105
Net cash used in investing activities	(131,683)	(30,458)	(1,079)
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments on long-term debt and capital lease obligations	(8,540)	(9,229)	(9,692)
Redemption of noncontrolling interest		(1,833)
Other	(34)	415	(476)
Intercompany activity	121,906	8,005	(11,611)
Net cash provided by (used in) financing activities	113,332	(2,642)	(21,779)
Effect of exchange rate changes on cash		1	7
Net decrease in cash and cash equivalents	(960)	2,366	(2,357)
Cash and cash equivalents, beginning of year	3,540	1,174	3,531
Cash and cash equivalents, end of year	2,580	3,540	1,174
Guarantor Subsidiaries | Trojan
Cash flows from investing activities:
Acquisition of business	(8,657)
Guarantor Subsidiaries | Bice And R M
Cash flows from investing activities:
Acquisition of business	(52,176)
Guarantor Subsidiaries | Dunns Tank Service And Nassau Disposal Inc
Cash flows from investing activities:
Acquisition of business	(34,321)
Guarantor Subsidiaries | Affiliate Acquisition
Cash flows from investing activities:
Acquisition of business	(17,143)
Non-Guarantor Subsidiaries
Cash flows from operating activities:
Net (loss) income	729	882	1,571
Adjustments for non-cash charges	(557)	(415)	(426)
Net changes in assets and liabilities	(2)	995	1,115
Intercompany activity	(559)	(1,528)	(1,683)
Net cash provided by (used in) operating activities	(389)	(66)	577
CASH FLOWS FROM FINANCING ACTIVITIES:
Intercompany activity			(2,100)
Net cash provided by (used in) financing activities			(2,100)
Net decrease in cash and cash equivalents	(389)	(66)	(1,523)
Cash and cash equivalents, beginning of year	513	579	2,102
Cash and cash equivalents, end of year	124	513	579
Eliminations
Cash flows from operating activities:
Net (loss) income	(106,803)	(50,387)	5,441
Adjustments for non-cash charges	$ 106,803	$ 50,387	$ (5,441)

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Guarantor Subsidiaries - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Condensed Financial Statements, Captions [Line Items]
Second-Priority Senior Secured Notes, maturity date	2018
Correction reclassifies from Investment in subsidiary into non current intercompany receivable		$ 28.0
Qd Llc
Condensed Financial Statements, Captions [Line Items]
Percentage of ownership by QDI	100.00%
QD LLC and QD Capital
Condensed Financial Statements, Captions [Line Items]
Percentage of ownership by QDI	100.00%
Guarantor Subsidiaries
Condensed Financial Statements, Captions [Line Items]
Equity investment method, ownership interest	100.00%

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Document and Entity Information (USD $)	12 Months Ended
	Dec. 31, 2012	Mar. 01, 2013	Jun. 30, 2012
Document Information [Line Items]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2012
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	FY
Trading Symbol	QLTY
Entity Registrant Name	QUALITY DISTRIBUTION INC
Entity Central Index Key	0000922863
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		27,046,644
Entity Public Float			$ 245,400,000

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ACCOUNTS RECEIVABLE, NET

12 Months Ended

Dec. 31, 2012

ACCOUNTS RECEIVABLE, NET

11. ACCOUNTS RECEIVABLE, NET

Accounts receivable consisted of the following at December 31 (in thousands):

	2012			2011
Trade accounts receivable	$	109,145		$	86,092
Independent affiliate and independent owner-operator receivables		4,417			4,373
Other receivables		1,050			776
		114,612			91,241
Less allowance for doubtful accounts		(706	)		(674	)
	$	113,906		$	90,567

The activity in the allowance for doubtful accounts for the years ended December 31 is as follows (in thousands):

	2012			2011			2010
Balance, beginning of period	$	(674	)	$	(842	)	$	(1,804	)
Adjustment to bad debt expense		(120	)		800			1,279
Write-offs, net of recoveries		88			(632	)		(317	)
Balance, end of period	$	(706	)	$	(674	)	$	(842	)

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Accrued expenses (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2012	Dec. 31, 2011
Accrued Expenses [Line Items]
Salaries, wages and benefits	$ 4,783	$ 5,519
Accrued interest	4,561	4,184
Claims and deposits	3,896	4,538
Taxes	1,191	2,185
Lease residual guarantees	6,759	1,807
Acquisition related earnouts	8,800
Other	7,899	7,094
Accrued expenses	$ 37,889	$ 25,327

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Net Deferred Tax Asset (Liability) (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Deferred tax assets:
Environmental reserve	$ 8,262	$ 8,612
Tax credit carryforwards	7,701	7,294
Self-insurance reserves	6,723	7,241
Allowance for doubtful accounts	270	261
Pension	8,414	8,998
Net operating loss carryforwards	29,201	29,378
Stock compensation	2,531	2,178
Other accruals	4,425	3,688
Accrued losses and damage claims	30	52
Deferred Tax Assets, Gross, Total	67,557	67,702
Less valuation allowance	(4,258)	(39,540)	(46,025)	(43,032)
Deferred Tax Assets, Net of Valuation Allowance, Total	63,299	28,162
Deferred tax liabilities:
Property and equipment basis differences	(26,449)	(21,706)
Accrued interest and original issue discount	(2,831)	(3,089)
Depreciation of environmental costs	(1,826)	(1,130)
Fair value earnout adjustments	(1,038)
Intangible basis differences	(2,833)	(2,237)
Net deferred tax asset	28,322
Current deferred tax asset	16,609	4,048
Long-term deferred tax asset	46,690
Long-term deferred tax liability	(34,977)	(4,048)
Net deferred tax asset	$ 28,322

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Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Dec. 31, 2012		Dec. 31, 2011
Current assets:
Cash and cash equivalents	$ 2,704		$ 4,053
Accounts receivable, net	113,906		90,567
Prepaid expenses	14,651		7,849
Deferred tax asset, net	16,609		4,048
Other	9,694		3,858
Total current assets	157,564		110,375
Property and equipment, net	190,342	[1]	125,892	[1]
Goodwill	104,294		31,344
Intangibles, net	37,654		18,471
Non-current deferred tax asset, net	11,713
Other assets	12,036		16,313
Total assets	513,603		302,395
Current liabilities:
Current maturities of indebtedness	3,918		4,139
Current maturities of capital lease obligations	3,913		5,261
Accounts payable	9,966		7,571
Independent affiliates and independent owner-operators payable	14,243		9,795
Accrued expenses	37,889		25,327
Environmental liabilities	2,739		3,878
Accrued loss and damage claims	7,326		8,614
Total current liabilities	79,994		64,585
Long-term indebtedness, less current maturities	408,850		293,823
Capital lease obligations, less current maturities	2,125		3,840
Environmental liabilities	6,302		6,222
Accrued loss and damage claims	9,494		9,768
Other non-current liabilities	25,278		30,342
Total liabilities	532,043		408,580
Commitments and contingencies-Note 20
SHAREHOLDERS' DEFICIT
Common stock, no par value; 49,000 shares authorized; 28,102 issued and 27,223 outstanding at December 31, 2012 and 24,207 issued and 23,940 outstanding at December 31, 2011.	437,192		393,859
Treasury stock, 879 shares at December 31, 2012 and 267 shares at December 31, 2011.	(5,849)		(1,878)
Accumulated deficit	(228,467)		(278,543)
Stock recapitalization	(189,589)		(189,589)
Accumulated other comprehensive loss	(31,752)		(31,381)
Stock purchase warrants	25		1,347
Total shareholders' deficit	(18,440)		(106,185)
Total liabilities and shareholders' deficit	$ 513,603		$ 302,395

[1] Includes property and equipment.

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EARNINGS (LOSS) PER COMMON SHARE

12 Months Ended

Dec. 31, 2012

EARNINGS (LOSS) PER COMMON SHARE

5. EARNINGS (LOSS) PER COMMON SHARE

A reconciliation of the numerators and denominators of the basic and diluted earnings (loss) from continuing operations to earnings (loss) per share computations follows (in thousands except per share amounts):

	December 31, 2012						December 31, 2011						December 31, 2010
	Earnings from continuing operations (numerator)		Shares (denominator)		Per- share amount		Earnings from continuing operations (numerator)		Shares (denominator)		Per- share amount		Loss from continuing operations (numerator)			Shares (denominator)		Per- share amount
Basic earnings (loss) available to common shareholders:
Earnings (loss)	$	50,076		26,502	$	1.89	$	23,431		23,088	$	1.01	$	(7,406	)		20,382	$	(0.36	)
Effect of dilutive securities:
Stock options				566						635							—
Unvested restricted stock				126						200							—
Unexercised stock warrants				13						429							—
Diluted earnings (loss) available to common shareholders:
Earnings (loss)	$	50,076		27,207	$	1.84	$	23,431		24,352	$	0.96	$	(7,406	)		20,382	$	(0.36	)

The effect of our stock options, restricted stock and stock warrants which represent the shares shown in the table above are included in the computation of diluted earnings per share for each year. There is no effect of our stock options, restricted stock and stock warrants in the computation of diluted earnings per share for the year ended December 31, 2010 due to a net loss in the period.

The following securities were not included in the calculation of diluted EPS because such inclusion would be anti-dilutive (in thousands):

	For the years ended December 31,
	2012		2011		2010
Stock options		1,686		1,573		2,126
Restricted stock		119		134		313
Warrants		1		1		1

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FAIR VALUE OF FINANCIAL INSTRUMENTS

12 Months Ended

Dec. 31, 2012

FAIR VALUE OF FINANCIAL INSTRUMENTS

4. FAIR VALUE OF FINANCIAL INSTRUMENTS

The three-level valuation hierarchy for fair value measurements is based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our market assumptions. These two types of inputs create the following fair value hierarchy:

• Level 1—Quoted prices for identical instruments in active markets;

• Level 2—Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations whose significant inputs are observable; and

• Level 3—Instruments whose significant inputs are unobservable.

Following is a description of the valuation methodologies we used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy.

Fair Value Measurements on a Nonrecurring Basis

The fair value of our long-term indebtedness is based on level 2 quoted market prices. As of December 31, 2012, the carrying value and fair value are as follows (in thousands):

	Carrying Value		Fair Value
9.875% Second-Priority Senior Secured Notes due 2018 (“2018 Notes”)	$	225,000	$	241,875

Our asset-based loan facility (the “ABL Facility”) is variable rate debt which Management believes is a reasonable approximation of its fair value that is adopted using a coupon rate on borrowings with similar maturities, current remaining average life to maturity borrower credit quality, and current market conditions and approximates fair value. The fair value of the 2018 Notes is estimated using various techniques, which may consider recently executed transactions in securities of the issuer or comparable issuers, market price quotations (where observable), bond spreads, fundamental data relating to the issuer, and credit default swap spreads adjusted for any basis difference between cash and derivative instruments.

The carrying amounts reported in the accompanying consolidated balance sheets for cash and cash equivalents, accounts receivable and accounts payable approximate fair value because of the immediate or short-term maturities of these financial instruments.

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INCOME TAXES

12 Months Ended

Dec. 31, 2012

INCOME TAXES

16. INCOME TAXES

For financial reporting purposes, income (loss) before income taxes includes the following components for years ended December 31 (in thousands):

	2012		2011			2010
Domestic	$	21,853	$	24,535		$	(8,153	)
Mexico		851		855			1,052
Canada		45		(18	)		106
	$	22,749	$	25,372		$	(6,995	)

The components of the (benefit) from provision for income tax for the years ended December 31 are as follows (in thousands):

	2012			2011			2010
Current taxes:
Federal	$	(337	)	$	146		$	13
State		516			998			794
Mexico		166			(45	)		(414	)
Canada		436			842			18
		781			1,941			411
Deferred taxes:
Federal		7,038			7,529			(2,743	)
State		136			971			(49	)
		7,174			8,500			(2,792	)
Valuation Allowance
Federal		(32,586	)		(7,529	)		2,743
State		(2,696	)		(971	)		49
		(35,282	)		(8,500	)		2,792
(Benefit from) provision for income taxes	$	(27,327	)	$	1,941		$	411

The net deferred tax asset (liability) consisted of the following at December 31 (in thousands):

	2012			2011
Deferred tax assets:
Environmental reserve	$	8,262		$	8,612
Tax credit carryforwards		7,701			7,294
Self-insurance reserves		6,723			7,241
Allowance for doubtful accounts		270			261
Pension		8,414			8,998
Net operating loss carryforwards		29,201			29,378
Stock compensation		2,531			2,178
Other accruals		4,425			3,688
Accrued losses and damage claims		30			52
		67,557			67,702
Less valuation allowance		(4,258	)		(39,540	)
	$	63,299		$	28,162
Deferred tax liabilities:
Property and equipment basis differences		(26,449	)		(21,706	)
Accrued interest and original issue discount		(2,831	)		(3,089	)
Depreciation of environmental costs		(1,826	)		(1,130	)
Fair value earnout adjustments		(1,038	)		—
Intangible basis differences		(2,833	)		(2,237	)
Net deferred tax asset	$	28,322		$	—
Comprised of:
Current deferred tax asset	$	16,609		$	4,048
Long-term deferred tax asset		46,690			—
Long-term deferred tax liability		(34,977	)		(4,048	)
Net deferred tax asset	$	28,322		$	—

During 2012, we recorded a deferred tax benefit of $28.1 million of which $35.3 related to a prior year valuation allowance release. These releases of the valuation allowance are a result of our consistent cumulative income position, improved operating results, and recent expansion of our energy business through acquisition which is expected to provide future taxable income. Management has determined based on the evaluation of both objective and subjective evidence available, that it is more likely than not that the deferred tax assets for which the valuation allowance was recorded, are realizable.

Our effective tax rate differs from the federal statutory rate. The reasons for those differences are as follows for the years ended December 31 (in thousands):

	2012			2011			2010
Tax expense (benefit) at the statutory rate	$	7,962		$	8,880		$	(2,448	)
State income taxes, net of federal benefit		679			1,625			408
Uncertain tax position adjustments		49			(252	)		(384	)
Stock compensation		123			278			—
Impact of foreign tax rates		(13	)		435			(167	)
Valuation allowance		(35,282	)		(8,500	)		2,792
Work opportunity tax credit		—			234			(10	)
IRC Section 956 income		335			219			240
Foreign tax credit		(525	)		(1,367	)		(253	)
Provision to return and other adjustments to deferred taxes		(608	)		—			—
Other		(47	)		389			233
(Benefit from) provision for income taxes	$	(27,327	)	$	1,941		$	411

At December 31, 2012, we had an estimated $75.1 million in federal net operating loss carryforwards, $3.6 million of unrecognized federal operating loss carryforwards related to excess stock compensation deductions and uncertain tax position deductions, $2.3 million in alternative minimum tax credit carryforwards and $5.3 million in foreign tax credit carryforwards. The net operating loss carryforwards will expire in the years 2018 through 2030 while the alternative minimum tax credits may be carried forward indefinitely and the foreign tax credits will expire in years 2014 through 2022.

Significant judgment is required in determining our provision for income taxes. In the ordinary course of an international business, there are many transactions for which the ultimate tax outcome is uncertain. We review our tax contingencies on a regular basis and make appropriate accruals as needed. As of December 31, 2012, U.S. taxes were not provided on income of our foreign subsidiaries, as we have invested or expect to invest the undistributed earnings indefinitely.

Rollforward of valuation allowance (in thousands):

	2012			2011			2010
Beginning balance	$	(39,540	)	$	(46,025	)	$	(43,032	)
Change in assessments about the realization of deferred income tax assets		35,282			6,485			(2,993	)
Ending balance	$	(4,258	)	$	(39,540	)	$	(46,025	)

At December 31, 2012 and 2011, we had approximately $1.7 million and $1.6 million, respectively, of total gross unrecognized tax benefits. Of the total gross unrecognized tax benefits at December 31, 2012, $1.0 million (net of federal benefit on state tax issues) represents the amount of unrecognized tax benefits that, if recognized, would favorably affect the effective income tax rate in any future periods.

Included in the balance of gross unrecognized tax benefits at December 31, 2012 less than $0.1 million related to tax positions for which it is reasonably possible that the total amounts could significantly change during the next twelve months due to expiration of the applicable statute of limitations. A reconciliation of the total amount of unrecognized tax benefits as of December 31 follows (in thousands):

	2012			2011			2010
Total unrecognized tax benefits as of January 1,	$	1,628		$	1,585		$	1,776
Increases in tax positions taken during prior period		359			425			160
Decreases in tax positions taken during prior period		(75	)		—			—
Increases in tax positions taken in the current period		85			—			—
Decreases in tax positions taken in the current period		(20	)		—			—
Settlements with taxing authorities		(85	)		—			—
Decrease due to lapse of applicable statute of limitations		(240	)		(382	)		(351	)
Total unrecognized tax benefits as of December 31,	$	1,652		$	1,628		$	1,585

Our continuing practice is to recognize interest and/or penalties related to income tax matters in income tax expense. For the year ended December 31, 2012, we recognized additional benefit of $0.1 million of interest and penalties in the provision for income taxes. As of December 31, 2011, we had accrued interest of $0.5 million (net of federal benefit) and $0.2 million accrued for penalties. At December 31, 2012, we had accrued interest of $0.4 million (net of federal benefit) and $0.2 million accrued for penalties.

We are subject to the income tax jurisdiction of the U.S., Canada, and Mexico, as well as multiple state jurisdictions. We believe we are no longer subject to U.S. federal income tax examinations for the years before 2007, to international examinations for years before 2006 and, with few exceptions, to state examinations before 2008.

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PROPERTY AND EQUIPMENT

12 Months Ended

Dec. 31, 2012

PROPERTY AND EQUIPMENT

12. PROPERTY AND EQUIPMENT

Property and equipment consisted of the following at December 31 (in thousands):

	2012			2011
Land and improvements	$	15,466		$	13,462
Buildings and improvements		29,042			26,903
Revenue equipment		244,795			190,175
Other equipment and disposal wells		43,209			31,946
Total property and equipment		332,512			262,486
Accumulated depreciation		(142,170	)		(136,594	)
Property and equipment, net	$	190,342		$	125,892

Depreciation expense was $17.8 million, $13.0 million and $14.5 million for the years ending December 31, 2012, 2011 and 2010, respectively. At December 31, 2012 and 2011, we had $13.2 million and $17.6 million of capitalized cost, respectively, and $2.9 million and $2.8 million, respectively, of accumulated depreciation of equipment under capital leases, respectively, included in revenue equipment in the above schedule.

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Redemption Prices (Detail) (Nine Point Eight Seven Five Percent Second Priority Senior Secured Notes Due Twenty Eighteen)	Dec. 31, 2012
Nine Point Eight Seven Five Percent Second Priority Senior Secured Notes Due Twenty Eighteen
Debt Instrument [Line Items]
2014	104.938%
2015	102.469%
2016 and thereafter	100.00%

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RESTRUCTURING

12 Months Ended

Dec. 31, 2012

RESTRUCTURING

8. RESTRUCTURING

We account for restructuring costs associated with one-time termination benefits, costs associated with lease and contract terminations and other related exit activities in accordance with FASB’s guidance. We previously made estimates of the costs to be incurred as part of a restructuring plan developed during 2008 and concluded at the end of 2010. The restructuring plan consisted of various actions including termination of approximately 380 non-driver positions and the consolidation, closure or affiliation of underperforming company terminals, our withdrawal from three multi-employer pension plans and costs associated with the consolidation of our corporate headquarters, and resulted in charges during 2008, 2009 and 2010 primarily related to our chemical logistics segment. As of December 31, 2012, $2.1 million was related to the restructuring charges included in accrued expenses on the balance sheet which are expected to be paid through 2017.

In the year ended December 31, 2012, we had the following activity in our restructuring accrual (in thousands):

	Balance at December 31, 2011		Payments			Balance at December 31, 2012
Restructuring accrual	$	2,782	$	(633	)	$	2,149

In the year ended December 31, 2011, we had the following activity in our restructuring accrual (in thousands):

	Balance at December 31, 2010		Payments			Reductions			Balance at December 31, 2011
Restructuring accrual	$	5,449	$	(2,146	)	$	(521	)	$	2,782

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Estimated Fair Values of Assets Acquired (Parenthetical) (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Dec. 31, 2012
Asset Acquisition [Line Items]
Measurement period adjustment based on real estate appraisal	$ 1.3

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Two Thousand Three Stock Option Plan activity (Detail) (Two Thousand Three Stock Option Plan, USD $) In Thousands, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2012		Dec. 31, 2011
Two Thousand Three Stock Option Plan
Number of Shares Outstanding
Beginning Balance	2,207		2,356
Granted	163		233
Exercised	(82)	[1],[2]	(348)	[1],[2]
Canceled	(36)		(34)
Expired	(48)
Ending Balance	2,204		2,207
Options exercisable and expected to vest at December 31, 2012	1,580
Weighted Average Exercise Price Per Share
Beginning Balance	$ 5.45		$ 4.97
Granted	$ 13.00		$ 9.70
Exercised	$ 4.40	[1],[2]	$ 5.11	[1],[2]
Canceled	$ 5.69		$ 4.56
Expired	$ 8.12
Ending balance	$ 5.99		$ 5.45
Options exercisable and expected to vest at December 31, 2012	$ 5.25
Weighted Average Remaining contractual Term (in years)
Options exercisable and expected to vest at December 31, 2012	5 years 1 month 21 days
Aggregate Intrinsic Value
Options exercisable and expected to vest at December 31, 2012	$ 2,623	[3]

[1] Shares issued upon the exercise of stock options were treated as newly issued shares.

[2] There was no tax benefit recognized in 2012, 2011 and 2010 related to stock-based compensation.

[3] The intrinsic value of a stock option is the amount by which the market value of the underlying stock as of December 31, 2012 exceeds the exercise price of the option multiplied by the number of shares represented by such option.

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ACQUISITIONS

12 Months Ended

Dec. 31, 2012

ACQUISITIONS

6. ACQUISITIONS

2012 Acquisitions

Acquisition of an Independent Affiliate

Due to financial and operational difficulties encountered by one of our independent affiliates, we terminated our business relationship with this independent affiliate during the third quarter of 2012. On October 17, 2012, we acquired the business, certain operating assets and certain liabilities of this independent affiliate for a purchase price of $17.1 million, paid in cash at closing. Of the total $17.1 million, we allocated $15.5 million to property and equipment and $1.6 million to goodwill. This entire amount of goodwill is deductible for tax purposes. This independent affiliate operated eight terminals within the chemical logistics segment and one terminal within the energy logistics segment. Four chemical logistics terminals were transitioned to other independent affiliates, with the remaining terminals transitioned to Company operations. During this transition, operating results for the third and fourth quarters of 2012 were adversely impacted in aggregate by $4.4 million of greater than expected operating costs and reduced profitability. Despite the costs involved in the transition, we were able to provide a smooth transition of the servicing of those customers back to us and to other independent affiliates.

Dunn’s Tank Service and Nassau Disposal, Inc.

On August 1, 2012, we acquired certain operating assets of Dunn’s Tank Service, Inc. and the operating assets and rights of Nassau Disposal, Inc., (collectively “Dunn’s”), for an aggregate purchase price of $34.3 million paid in cash. An additional $3.6 million in cash consideration may be payable in cash one year after the closing date if certain future operating and financial performance criteria are satisfied, although we do not currently expect those criteria to be met. Of the total $34.3 million, we allocated $12.2 million to property and equipment, $17.3 million to goodwill and $4.8 million to intangibles. The entire amount of goodwill is deductible for tax purposes. Dunn’s is headquartered in Velma, Oklahoma and provides transportation services to the unconventional oil and gas industry within the Marcellus, Woodford and Utica shale regions, primarily hauling flowback and production water for various energy customers, which expands our energy logistics business. For its fiscal year ended December 31, 2011, Dunn’s had revenues of approximately $17.5 million. The results of Dunn’s have been included in our results since the date of acquisition, and are included in our energy logistics segment.

Wylie Bice Trucking, LLC and RM Resources, LLC

On June 1, 2012, we acquired certain operating assets of Wylie Bice Trucking, LLC and the operating assets and rights of RM Resources, LLC, (collectively “Bice”), for $81.4 million aggregate consideration. Headquartered in Killdeer, ND, Bice provides transportation services to the unconventional oil and gas frac shale industry within the Bakken shale region, primarily hauling fresh water, flowback and production water, and oil for numerous energy and other customers, which expands our energy logistics business. The flowback and production water Bice hauls is primarily disposed of utilizing five salt water injection wells we originally purchased from Bice. In accordance with the asset purchase agreement, Bice must deliver a sixth disposal well within six months after the closing date of the acquisition. On a combined basis, for its fiscal year ended December 31, 2011, Bice had revenues of approximately $106.0 million. The results of the Bice acquisitions are included in our results since the date of acquisition, and are included in our energy logistics segment.

The Bice transaction was structured as asset acquisitions with aggregate consideration paid to the sellers as follows: (i) $52.2 million in cash; (ii) $21.3 million in 5-year subordinated seller notes bearing interest annually at a 5.0% fixed rate; and (iii) $7.9 million of approximately 0.7 million in unregistered restricted shares of Quality common stock. Up to an additional $19.0 million may be payable in cash one year after the closing date, contingent upon the collective businesses meeting certain future operating and financial performance criteria. Our preliminary estimate of this contingent consideration is $6.8 million. We have performed a preliminary allocation of the purchase price. The preliminary allocation of the purchase price is based on information existing at the acquisition date and is subject to change. Measurement period adjustments will be evaluated to determine whether they relate to facts and circumstances that existed at the acquisition date. Any measurement period adjustments recorded will be an adjustment to goodwill and are not expected to be material to the Company’s financial position. Estimates of useful lives and estimated fair values of tangible and amortizable intangible assets will be finalized after we review all available data including, but not limited to, appraisals and internal assessments. The purchase price of the combined acquisitions has initially been allocated to the assets acquired according to their estimated fair values at the time of the acquisitions as follows:

(In thousands)	Bice & RM Combined
Equipment	$	26,557	(1)
Non-compete agreements		400
Tradename		700
Customer-related intangibles		12,320
Contingent consideration		(6,800	)
Goodwill		48,218	(1)
	$	81,395

(1) A measurement period adjustment of $1.3 million was made in the fourth quarter of 2012 based on a real estate appraisal.

The non-compete agreements will be amortized over an estimated six-year useful life on a straight-line basis. The customer-related intangible assets relate to acquired customer relationships, and will be amortized over an estimated ten-year useful life on a straight-line basis. The tradename will be amortized over an estimated two-year useful life on a straight-line basis. Goodwill has been recorded because the consideration paid exceeds the fair value of the assets acquired. The goodwill acquired in these acquisitions is tax deductible.

Unaudited Pro forma Results. Businesses acquired are included in our consolidated results from the date of each acquisition. Unaudited pro forma results displayed below only represent the Bice acquisition, as our other acquisitions in 2012 and 2011 were deemed immaterial. The following consolidated results are presented on a pro forma basis, as if the 2012 acquisition of Bice had been completed as of January 1, 2011:

Unaudited pro forma consolidated results for the years ended December 31 (in thousands):

	Proforma 2012			Proforma 2011
Operating revenues	$	890,155		$	851,599
Net income		54,614	(1)		28,505
Income per common share—basic	$	2.06		$	1.19
Income per common share—diluted	$	2.01		$	1.13

(1) Includes release of $35.3 million in the aggregate of our deferred tax valuation allowance.

Trojan Vacuum Services

On April 1, 2012, we acquired certain operating assets of Trojan Vacuum Services (“Trojan”). The purchase price was $8.7 million paid in cash at closing, plus $1.0 million paid in cash upon the satisfaction of certain operating and financial performance criteria. Of the total $8.7 million, we allocated $4.1 million to property and equipment, $4.3 million to intangibles and $0.3 million to goodwill. The entire amount of goodwill is deductible for tax purposes. In January 2013, the full $1.0 million was paid in cash upon satisfaction of certain operating and financial performance criteria were met. Trojan is headquartered in Pleasanton, TX and provides transportation service to the unconventional oil and gas frac shale industry within the Eagle Ford shale region, primarily hauling flowback and production water for various energy customers, which expands our energy logistics business. For its fiscal year ended December 31, 2011, Trojan had revenues of approximately $13.5 million. The results of the Trojan acquisition are included in our energy logistics segment.

2011 Acquisitions

Greensville Transport Services, Inc.

On November 1, 2011, Boasso acquired all of the outstanding stock of Greensville Transport Services, Inc. “Greensville”. The purchase price was $8.6 million, paid in cash at closing. Of the total $8.6 million, we allocated $3.5 million to goodwill, $2.5 million to intangibles, $1.4 million to accounts receivable and $1.2 million to property and equipment. An additional $0.5 million was paid in cash in December 2012 upon satisfaction of certain operating and financial performance criteria. An additional $0.5 million was paid in cash for a Section 338(h)(10) tax election and a working capital adjustment. The tax deductible amount of goodwill is $4.5 million. Greensville is headquartered in Chesapeake, Virginia and is a leading provider of ISO tank container and depot services with access to ports in Virginia, Maryland and South Carolina. The results of the Greensville acquisition are included in our intermodal segment.

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SELECTED QUARTERLY FINANCIAL DATA

12 Months Ended

Dec. 31, 2012

SELECTED QUARTERLY FINANCIAL DATA

7. SELECTED QUARTERLY FINANCIAL DATA (Unaudited) (In thousands, except per share data)

	Quarter Ended
	March 31		June 30		September 30		December 31
2012
Operating revenues	$	191,915	$	212,733	$	222,078	$	215,392
Operating income		13,838		13,444		11,617		10,244
Net income		6,700		28,804		8,863		5,709
Income per share—basic		0.27		1.07		0.32		0.21
Income per share—diluted		0.26		1.04		0.32		0.21
2011
Operating revenues	$	177,910	$	189,993	$	199,298	$	178,750
Operating income		12,193		16,939		15,286		13,261
Net income		2,722		9,046		6,187		5,476
Income per share—basic		0.12		0.39		0.26		0.23
Income per share—diluted		0.12		0.37		0.25		0.22

In 2012 we incurred acquisition expenses of $4.0 million, costs associated with the termination of an independent affiliate relationship of $4.4 million, severance and lease termination charges of $1.0 million, the effects of Hurricane Sandy of $0.7 million, and other legal settlements of $0.8 million offset by a net acquisition earnout benefit of $2.7 million. Also, in 2012, we recorded a release of $35.3 million in the aggregate of our deferred tax valuation allowance, most of which was recorded in the second quarter of 2012.

In 2011, we recognized a restructuring credit of $0.5 million in the first quarter. Results for the first quarter of 2011 include a write-off of debt issuance costs of $1.8 million related to the partial redemption of our 2013 PIK Notes. Results for the third quarter of 2011 include a write-off of debt issuance costs of $0.3 million related to the final redemption of our 2013 PIK Notes and a write-off of debt issuance costs of $0.9 million related to the refinancing of our Previous ABL Facility.

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SEGMENT REPORTING

12 Months Ended

Dec. 31, 2012

SEGMENT REPORTING

9. SEGMENT REPORTING

Reportable Segments

In 2011, our chief operating decision maker began managing the Company in three reportable business segments for financial reporting purposes that are distinguished primarily on the basis of services offered:

• Chemical Logistics, which consists of the transportation of bulk chemicals primarily through our network of 25 independent affiliates and company-operated terminals, and equipment rental income;

• Energy Logistics, which consists primarily of the transportation of fresh water, disposal water, and crude oil for the unconventional oil and gas frac shale energy markets, primarily through company-operated terminals and 2 independent affiliates; and

• Intermodal, which consists of Boasso’s intermodal ISO tank container transportation and depot services business primarily supporting the international movement of bulk liquids.

Segment operating income reported in our segment tables excludes amounts such as depreciation and amortization, gains and losses on disposal of property and equipment and restructuring costs. Although these amounts are excluded from the business segment results, they are included in our reported consolidated statements of operations. Most corporate and shared services overhead costs, including acquisitions costs, are included in our chemical logistics segment. We have not provided specific asset information by segment, as it is not regularly provided to our chief operating decision maker for review.

Summarized segment data and a reconciliation to operating income for the years ended December 31 follows (in thousands):

	December 31, 2012
	Chemical Logistics			Energy Logistics		Intermodal			Total
Operating Revenues:
Transportation	$	423,077		$	105,679	$	68,650		$	597,406
Service revenue		67,632			8,461		45,008			121,101
Fuel surcharge		105,767			926		16,918			123,611
Total operating revenues		596,476			115,066		130,576			842,118
Segment operating income		37,809			12,177		19,259			69,245
Depreciation and amortization		11,293			6,310		3,487			21,090
Other (income) expense, net		(1,327	)		391		(52	)		(988	)
Operating income	$	27,843		$	5,476	$	15,824		$	49,143

	December 31, 2011
	Chemical Logistics			Energy Logistics		Intermodal			Total
Operating Revenues:
Transportation	$	429,769		$	29,432	$	58,579		$	517,780
Service revenue		67,414			1,006		42,168			110,588
Fuel surcharge		103,487			64		14,032			117,583
Total operating revenues		600,670			30,502		114,779			745,951
Segment operating income		48,444			3,081		18,728			70,253
Depreciation and amortization		10,418			785		3,210			14,413
Other (income) expense, net		(1,684	)		—		(155	)		(1,839	)
Operating income	$	39,710		$	2,296	$	15,673		$	57,679

	December 31, 2010
	Chemical Logistics		Energy Logistics		Intermodal		Total
Operating Revenues:
Transportation	$	442,576	$	—	$	55,870	$	498,446
Service revenue		70,470		—		37,004		107,474
Fuel surcharge		72,053		—		8,625		80,678
Total operating revenues		585,099		—		101,499		686,598
Segment operating income		44,791		—		16,863		61,654
Depreciation and amortization		13,033		—		2,971		16,004
Other expense (income), net		8,901		—		14		8,915
Operating income	$	22,857	$	—	$	13,878	$	36,735

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Selected Quarterly Financial Data - Additional Information (Detail) (USD $)	3 Months Ended	12 Months Ended				3 Months Ended
	Jun. 30, 2012	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010	Mar. 31, 2011	Sep. 30, 2011 Pik Notes	Mar. 31, 2011 Pik Notes	Sep. 30, 2011 Abl Facility
Quarterly Financial Information [Line Items]
Business acquisition expenses		$ 4,000,000
Termination expenses		4,400,000
Severance and lease termination charges		1,000,000
Effects of hurricane sandy		700,000
Other legal settlements		800,000
Net acquisition earn out adjustments		2,700,000
Deferred tax valuation allowance	35,300,000	35,282,000	8,500,000	(2,792,000)
Recognized a restructuring credit		2,149,000	2,782,000	5,449,000	500,000
Write-off of deferred financing costs			$ 3,181,000	$ 7,391,000		$ 300,000	$ 1,800,000	$ 900,000

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Condensed Consolidating Statement of Operations (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
OPERATING REVENUES:
Transportation									$ 597,406	$ 517,780	$ 498,446
Service revenue									121,101	110,588	107,474
Fuel surcharge									123,611	117,583	80,678
Total operating revenues	215,392	222,078	212,733	191,915	178,750	199,298	189,993	177,910	842,118	745,951	686,598
OPERATING EXPENSES:
Purchased transportation									552,524	522,866	471,792
Compensation									82,143	61,098	57,563
Fuel, supplies and maintenance									82,033	51,102	54,367
Depreciation and amortization									21,090	14,413	16,004
Selling and administrative									33,882	21,647	19,339
Insurance costs									15,830	14,042	15,546
Taxes and licenses									2,825	2,211	2,218
Communication and utilities									3,636	2,732	4,119
Gain on disposal of property and equipment									(988)	(1,318)	1,136
Restructuring costs										(521)	7,779
Operating (loss) income	10,244	11,617	13,444	13,838	13,261	15,286	16,939	12,193	49,143	57,679	36,735
Interest (income) expense, non-related party, net									29,258	28,912	35,548
Interest (income) expense, related party, net									(831)	(585)	(622)
Write-off of debt issuance costs										3,181	7,391
Other expense									(2,864)	214	791
(Loss) income before income taxes									22,749	25,372	(6,995)
Provision for (benefit from) income taxes									(27,327)	1,941	411
Net (loss) income									50,076	23,431	(7,406)
Total other comprehensive (loss) income									(371)	(5,187)	(607)
Comprehensive (loss) income									49,705	18,244	(8,013)
QDI
OPERATING EXPENSES:
Selling and administrative											33
Operating (loss) income											(33)
Interest (income) expense, non-related party, net										(15)	37
Other expense											735
(Loss) income before income taxes										15	(805)
Provision for (benefit from) income taxes									3,306	126	3
(Loss) equity in earnings of subsidiaries									53,382	23,542	(6,598)
Net (loss) income									50,076	23,431	(7,406)
Total other comprehensive (loss) income									(371)	(5,187)	(607)
Comprehensive (loss) income									49,705	18,244	(8,013)
QD LLC and QD Capital
OPERATING EXPENSES:
Selling and administrative									39	120	195
Operating (loss) income									(39)	(120)	(195)
Interest (income) expense, non-related party, net									28,490	28,012	34,221
Interest (income) expense, related party, net									(28,490)	(28,012)	(34,226)
Write-off of debt issuance costs										3,181	7,391
Other expense										2	174
(Loss) income before income taxes									(39)	(3,303)	(7,755)
(Loss) equity in earnings of subsidiaries									53,421	26,845	1,157
Net (loss) income									53,382	23,542	(6,598)
Total other comprehensive (loss) income									(371)	(5,187)	(607)
Comprehensive (loss) income									53,011	18,355	(7,205)
Guarantor Subsidiaries
OPERATING REVENUES:
Transportation									597,406	517,780	498,446
Service revenue									120,698	110,064	106,893
Fuel surcharge									123,611	117,583	80,678
Total operating revenues									841,715	745,427	686,017
OPERATING EXPENSES:
Purchased transportation									552,524	522,866	471,792
Compensation									82,143	61,098	57,563
Fuel, supplies and maintenance									82,033	51,102	54,366
Depreciation and amortization									21,090	14,413	16,004
Selling and administrative									33,758	21,445	19,015
Insurance costs									15,821	14,025	15,525
Taxes and licenses									2,825	2,211	2,218
Communication and utilities									3,636	2,732	4,119
Gain on disposal of property and equipment									(846)	(1,318)	1,141
Restructuring costs										(521)	7,779
Operating (loss) income									48,731	57,374	36,495
Interest (income) expense, non-related party, net									782	923	1,339
Interest (income) expense, related party, net									28,905	28,427	34,652
Other expense									(2,849)	201	96
(Loss) income before income taxes									21,893	27,823	408
Provision for (benefit from) income taxes									(30,799)	1,860	822
Net (loss) income									52,692	25,963	(414)
Total other comprehensive (loss) income									(328)	(5,213)	(520)
Comprehensive (loss) income									52,364	20,750	(934)
Non-Guarantor Subsidiaries
OPERATING REVENUES:
Service revenue									403	524	581
Total operating revenues									403	524	581
OPERATING EXPENSES:
Fuel, supplies and maintenance											1
Selling and administrative									85	82	96
Insurance costs									9	17	21
Gain on disposal of property and equipment									(142)		(5)
Operating (loss) income									451	425	468
Interest (income) expense, non-related party, net									(14)	(8)	(49)
Interest (income) expense, related party, net									(415)	(415)	(426)
Other expense									(15)	11	(214)
(Loss) income before income taxes									895	837	1,157
Provision for (benefit from) income taxes									166	(45)	(414)
Net (loss) income									729	882	1,571
Total other comprehensive (loss) income									(43)	26	(87)
Comprehensive (loss) income									686	908	1,484
Eliminations
OPERATING EXPENSES:
(Loss) equity in earnings of subsidiaries									(106,803)	(50,387)	5,441
Net (loss) income									(106,803)	(50,387)	5,441
Total other comprehensive (loss) income									742	10,374	1,214
Comprehensive (loss) income									$ (106,061)	$ (40,013)	$ 6,655

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Schedule of Indebtedness Required to Pay (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2012		Dec. 31, 2011
Debt Instrument [Line Items]
2013	$ 7,831
2014	2,875
2015	1,417
2016	161,571
2017	21,377
Thereafter	225,000
Total	420,071		308,544
Capital lease
Debt Instrument [Line Items]
2013	3,912
2014	1,610
2015	333
2016	106
2017	77
Total	6,038		9,101
Abl Facility
Debt Instrument [Line Items]
2016	161,200
Total	161,200		65,500
Nine Point Eight Seven Five Percent Second Priority Senior Secured Notes Due Twenty Eighteen
Debt Instrument [Line Items]
Thereafter	225,000	[1]
Total	225,000	[1]	225,000
Five Percent Subordinated Acquisition Notes
Debt Instrument [Line Items]
2017	21,300
Total	21,300
Other Notes
Debt Instrument [Line Items]
2013	3,919
2014	1,265
2015	1,084
2016	265
Total	$ 6,533		$ 8,943

[1] Amount does not include the remaining unamortized original issue discount of $1.3 million related to the 2018 Notes.

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Restructuring Accrual Activity (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Mar. 31, 2011
Restructuring Cost and Reserve [Line Items]
Balance	$ 2,782	$ 5,449	$ 500
Payments	(633)	(2,146)
Reductions		(521)
Balance	$ 2,149	$ 2,782	$ 500

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Actual Retirement Plans' Asset Allocation by Level within Fair Value Hierarchy (Detail) (USD $) In Thousands, unless otherwise specified				12 Months Ended																													12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2012 Ttwu Plan	Dec. 31, 2011 Ttwu Plan	Dec. 31, 2012 Ttwu Plan Cash and Cash Equivalents	Dec. 31, 2011 Ttwu Plan Cash and Cash Equivalents	Dec. 31, 2011 Ttwu Plan Equity Securities	Dec. 31, 2012 Ttwu Plan Mutual Funds	Dec. 31, 2011 Ttwu Plan Mutual Funds	Dec. 31, 2012 Ttwu Plan Corporate Debt Securities	Dec. 31, 2011 Ttwu Plan Corporate Debt Securities	Dec. 31, 2012 Ttwu Plan Asset-backed Securities	Dec. 31, 2011 Ttwu Plan Asset-backed Securities	Dec. 31, 2011 Ttwu Plan Other Investments	Dec. 31, 2012 Ttwu Plan Level 1	Dec. 31, 2011 Ttwu Plan Level 1	Dec. 31, 2012 Ttwu Plan Level 1 Cash and Cash Equivalents	Dec. 31, 2011 Ttwu Plan Level 1 Cash and Cash Equivalents	Dec. 31, 2011 Ttwu Plan Level 1 Equity Securities	Dec. 31, 2012 Ttwu Plan Level 1 Mutual Funds	Dec. 31, 2011 Ttwu Plan Level 1 Mutual Funds	Dec. 31, 2012 Ttwu Plan Level 2	Dec. 31, 2011 Ttwu Plan Level 2	Dec. 31, 2012 Ttwu Plan Level 2 Mutual Funds	Dec. 31, 2012 Ttwu Plan Level 2 Corporate Debt Securities	Dec. 31, 2011 Ttwu Plan Level 2 Corporate Debt Securities	Dec. 31, 2012 Ttwu Plan Level 2 Asset-backed Securities	Dec. 31, 2011 Ttwu Plan Level 2 Asset-backed Securities	Dec. 31, 2011 Ttwu Plan Level 2 Other Investments	Dec. 31, 2011 Ttwu Plan Fair Value, Inputs, Level 3	Dec. 31, 2011 Ttwu Plan Fair Value, Inputs, Level 3 Other Investments	Dec. 31, 2012 Clc Plan	Dec. 31, 2011 Clc Plan	Dec. 31, 2012 Clc Plan Cash and Cash Equivalents	Dec. 31, 2011 Clc Plan Cash and Cash Equivalents	Dec. 31, 2011 Clc Plan Equity Securities	Dec. 31, 2012 Clc Plan Mutual Funds	Dec. 31, 2011 Clc Plan Mutual Funds	Dec. 31, 2012 Clc Plan Corporate Debt Securities	Dec. 31, 2011 Clc Plan Corporate Debt Securities	Dec. 31, 2012 Clc Plan Asset-backed Securities	Dec. 31, 2011 Clc Plan Asset-backed Securities	Dec. 31, 2011 Clc Plan Other Investments	Dec. 31, 2012 Clc Plan Level 1	Dec. 31, 2011 Clc Plan Level 1	Dec. 31, 2012 Clc Plan Level 1 Cash and Cash Equivalents	Dec. 31, 2011 Clc Plan Level 1 Cash and Cash Equivalents	Dec. 31, 2011 Clc Plan Level 1 Equity Securities	Dec. 31, 2012 Clc Plan Level 1 Mutual Funds	Dec. 31, 2011 Clc Plan Level 1 Mutual Funds	Dec. 31, 2012 Clc Plan Level 2	Dec. 31, 2011 Clc Plan Level 2	Dec. 31, 2012 Clc Plan Level 2 Mutual Funds	Dec. 31, 2012 Clc Plan Level 2 Corporate Debt Securities	Dec. 31, 2011 Clc Plan Level 2 Corporate Debt Securities	Dec. 31, 2012 Clc Plan Level 2 Asset-backed Securities	Dec. 31, 2011 Clc Plan Level 2 Asset-backed Securities	Dec. 31, 2011 Clc Plan Level 2 Other Investments	Dec. 31, 2011 Clc Plan Fair Value, Inputs, Level 3	Dec. 31, 2011 Clc Plan Fair Value, Inputs, Level 3 Other Investments
Defined Benefit Plan Disclosure [Line Items]
Define benefit plan	$ 31,560	$ 28,912	$ 29,947	$ 6,797	$ 6,750	$ 454	$ 185	$ 2,928	$ 5,182	$ 188	$ 551	$ 1,462	$ 610	$ 579	$ 1,408	$ 5,018	$ 3,301	$ 454	$ 185	$ 2,928	$ 4,564	$ 188	$ 1,779	$ 2,352	$ 618	$ 551	$ 1,462	$ 610	$ 579	$ 311	$ 1,097	$ 1,097	$ 24,763	$ 22,162	$ 1,586	$ 559	$ 10,798	$ 19,133	$ 683	$ 1,902	$ 5,975	$ 2,142	$ 1,993	$ 2,154	$ 16,953	$ 12,040	$ 1,586	$ 559	$ 10,798	$ 15,367	$ 683	$ 7,810	$ 9,019	$ 3,766	$ 1,902	$ 5,975	$ 2,142	$ 1,993	$ 1,051	$ 1,103	$ 1,103
Define benefit plan				100.00%	100.00%	6.70%	2.70%	43.40%	76.20%	2.80%	8.10%	21.70%	9.00%	8.50%	20.90%																		100.00%	100.00%	6.40%	2.50%	48.70%	77.30%	3.10%	7.70%	27.00%	8.60%	9.00%	9.70%

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Selected Quarterly Financial Data (Detail) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Quarterly Financial Information [Line Items]
Operating revenues	$ 215,392	$ 222,078	$ 212,733	$ 191,915	$ 178,750	$ 199,298	$ 189,993	$ 177,910	$ 842,118	$ 745,951	$ 686,598
Operating income	10,244	11,617	13,444	13,838	13,261	15,286	16,939	12,193	49,143	57,679	36,735
Net income	$ 5,709	$ 8,863	$ 28,804	$ 6,700	$ 5,476	$ 6,187	$ 9,046	$ 2,722	$ 50,076	$ 23,431	$ (7,406)
Income per share-basic	$ 0.21	$ 0.32	$ 1.07	$ 0.27	$ 0.23	$ 0.26	$ 0.39	$ 0.12	$ 1.89	$ 1.01	$ (0.36)
Income per share-diluted	$ 0.21	$ 0.32	$ 1.04	$ 0.26	$ 0.22	$ 0.25	$ 0.37	$ 0.12	$ 1.84	$ 0.96	$ (0.36)

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Reconciliation of Effective Tax Rate and Federal Statutory Rate (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Income Taxes [Line Items]
Tax expense (benefit) at the statutory rate	$ 7,962	$ 8,880	$ (2,448)
State income taxes, net of federal benefit	679	1,625	408
Uncertain tax position adjustments	49	(252)	(384)
Stock compensation	123	278
Impact of foreign tax rates	(13)	435	(167)
Valuation Allowance	(35,282)	(8,500)	2,792
Work opportunity tax credit		234	(10)
IRC Section 956 income	335	219	240
Foreign tax credit	(525)	(1,367)	(253)
Provision to return and other adjustments to deferred taxes	(608)
Other	(47)	389	233
(Benefit from) provision for income taxes	$ (27,327)	$ 1,941	$ 411

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ACQUISITIONS (Tables)

12 Months Ended

Dec. 31, 2012

Estimated Fair Values of Assets Acquired

The purchase price of the combined acquisitions has initially been allocated to the assets acquired according to their estimated fair values at the time of the acquisitions as follows:

(In thousands)	Bice & RM Combined
Equipment	$	26,557	(1)
Non-compete agreements		400
Tradename		700
Customer-related intangibles		12,320
Contingent consideration		(6,800	)
Goodwill		48,218	(1)
	$	81,395

(1) A measurement period adjustment of $1.3 million was made in the fourth quarter of 2012 based on a real estate appraisal.

Pro Forma Consolidated Results

Unaudited pro forma consolidated results for the years ended December 31 (in thousands):

	Proforma 2012			Proforma 2011
Operating revenues	$	890,155		$	851,599
Net income		54,614	(1)		28,505
Income per common share—basic	$	2.06		$	1.19
Income per common share—diluted	$	2.01		$	1.13

(1) Includes release of $35.3 million in the aggregate of our deferred tax valuation allowance.

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Components of Accumulated other Comprehensive Loss (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2012	Dec. 31, 2011
Accumulated Other Comprehensive Income (Loss) [Line Items]
Unrecognized loss and prior service costs	$ 30,572	$ 30,244
Foreign currency translation adjustment	1,180	1,137
Accumulated other comprehensive loss	$ 31,752	$ 31,381

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ACCOUNTS PAYABLE AND ACCRUED EXPENSES

12 Months Ended

Dec. 31, 2012

ACCOUNTS PAYABLE AND ACCRUED EXPENSES

14. ACCOUNTS PAYABLE AND ACCRUED EXPENSES

Accounts payable includes $2.0 million and $1.6 million of book overdrafts at December 31, 2012 and 2011, respectively.

Accrued expenses include the following at December 31 (in thousands):

	2012		2011
Salaries, wages and benefits	$	4,783	$	5,519
Accrued interest		4,561		4,184
Claims and deposits		3,896		4,538
Taxes		1,191		2,185
Lease residual guarantees		6,759		1,807
Acquisition related earnouts		8,800		—
Other		7,899		7,094
	$	37,889	$	25,327

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Future Noncancelable Lease Commitments (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2012
Operating Leased Assets [Line Items]
2013	$ 21,877
2014	19,976
2015	19,135
2016	19,288
2017	16,017
Thereafter	2,985
Total	$ 99,278

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STOCK COMPENSATION PLANS

12 Months Ended

Dec. 31, 2012

STOCK COMPENSATION PLANS

19. STOCK COMPENSATION PLANS

We

account for our equity compensation plans and expense related to all stock option awards granted under the FASB guidance. We apply the Black-Scholes valuation model in determining the fair value of share-based payments to employees. The resulting compensation expense is recognized over the requisite service period, which is generally the vesting term of two to four years.

Active Performance Incentive Plan

As of December 31, 2012, we maintain one active stock-based incentive plan, the Quality Distribution, Inc. 2012 Equity Incentive Plan (the “2012 Equity Incentive Plan”), under which stock options, restricted shares and other types of equity and cash incentive awards may be granted to employees, non-employee directors and service providers. The 2012 Equity Incentive Plan became effective May 30, 2012 upon receipt of shareholder approval and expires May 30, 2022. There are 2,000,000 shares of common stock reserved for issuance under the 2012 Equity Incentive Plan.

The 2012 Equity Incentive Plan activity for the year ended December 31, 2012 is as follows (in thousands, except per share data):

Stock Options

	Number of Shares Outstanding		Weighted Average Exercise Price Per Share		Weighted Average Remaining contractual Term (in years)		Aggregate Intrinsic Value (in thousands) (a)
Options outstanding at December 31, 2011		—		—
2012 option activity:
Granted		48	$	10.54
Exercised		—		—
Canceled		—		—
Options outstanding at December 31, 2012		48	$	10.54
Options exercisable and expected to vest at December 31, 2012		—		—		—		—

(a) The intrinsic value of a stock option is the amount by which the market value of the underlying stock as of December 31, 2012 exceeds the exercise price of the option multiplied by the number of shares represented by such option.

During the year ended December 31, 2012 (in thousands, except per share data):

• the weighted-average grant date fair value per share of stock-based compensation granted to employees was $6.55;

• there were no stock options exercised; and

• there were no stock options that vested.

During the year ended December 31, 2012, cash was not used to settle any equity instruments previously granted.

Restricted Stock

	Number of Shares Outstanding			Weighted Average Grant Date Fair Value Per Share		Aggregate Intrinsic Value
Restricted stock unvested at December 31, 2011		—			—
2012 activity:
Granted		30		$	10.42
Vested		(4	)	$	10.61
Canceled		—			—
Restricted stock unvested at December 31, 2012		26		$	10.39	$	156

Frozen Performance Incentive Plans

We maintain two other stock-based incentive plans, the 2003 Stock Option Plan and the 2003 Restricted Stock Incentive Plan, under which stock options and restricted shares have been granted to employees, non-employee directors, consultants and advisors but under which no additional awards may be made after May 30, 2012 because we agreed to “freeze” them from further issuances in connection with the approval of the 2012 Equity Incentive Plan.

2003 Stock Option Plan

On November 5, 2003, our Board of Directors approved the 2003 Stock Option Plan in connection with our IPO. Nonqualified stock options that were granted under the 2003 Stock Option Plan become exercisable, with limited exceptions, in 25% increments on each of the first four anniversaries of the date upon which the options are granted or vest 50% in the third and 50% in the fourth year after issuance of the grant. The contractual term of each grant is ten years.

The 2003 Stock Option Plan activity for the year ended December 31, 2012 is as follows (in thousands, except per share data):

	Number of Shares Outstanding			Weighted Average Exercise Price Per Share		Weighted Average Remaining contractual Term (in years)		Aggregate Intrinsic Value (in thousands) (a)
Options outstanding at December 31, 2010		2,356		$	4.97
2011 option activity:
Granted		233		$	9.70
Exercised (b)(c)		(348	)	$	5.11
Canceled		(34	)	$	4.56
Options outstanding at December 31, 2011		2,207		$	5.45
2012 option activity:
Granted		163		$	13.00
Exercised (b)(c)		(82	)	$	4.40
Canceled		(36	)	$	5.69
Expired		(48	)	$	8.12
Options outstanding at December 31, 2012		2,204		$	5.99
Options exercisable and expected to vest at December 31, 2012		1,580		$	5.25		5.14	$	2,623

(a) The intrinsic value of a stock option is the amount by which the market value of the underlying stock as of December 31, 2012 exceeds the exercise price of the option multiplied by the number of shares represented by such option.

(b) Shares issued upon the exercise of stock options were treated as newly issued shares.

(c) There was no tax benefit recognized in 2012, 2011 and 2010 related to stock-based compensation.

During the years ended December 31, 2012, 2011 and 2010 (in thousands, except per share data):

• the weighted-average grant date fair value per share of stock-based compensation granted to employees during the three periods above was $8.09, $6.19 and $4.19, respectively;

• the total intrinsic value of stock options exercised in 2012 and 2011 was $0.5 million and $2.4 million, respectively. The total intrinsic value of stock options exercised in 2010 was deminimus; and

• the total fair value of stock options that vested during the three periods above was $1,223, $1,229 and $1,223, respectively.

During the year ended December 31, 2012, cash was not used to settle any equity instruments previously granted.

2003 Restricted Stock Incentive Plan

On November 5, 2003, our Board of Directors approved the 2003 Restricted Stock Incentive Plan, in connection with our IPO. The vesting periods for grant recipients were at the discretion of the Compensation Committee of the Board of Directors.

The 2003 Restricted Stock Incentive Plan activity for the year ended December 31, 2012 is as follows (in thousands, except per share data):

	Number of Shares Outstanding			Weighted Average Grant Date Fair Value Per Share		Aggregate Intrinsic Value
Restricted stock unvested at December 31, 2010		479		$	3.90
2011 activity:
Granted		93		$	9.39
Vested		(220	)	$	4.12
Canceled		(17	)	$	4.93
Restricted stock unvested at December 31, 2011		335		$	5.22	$	3,766
2012 activity:
Granted		152		$	12.67
Vested		(263	)	$	6.17
Canceled		(5	)	$	8.84
Restricted stock unvested at December 31, 2012		219		$	9.19	$	1,312

Accounting for Stock-Based Compensation

Compensation expense is recognized only for those options expected to vest, with forfeitures estimated based on our historical experience and future expectations.

The fair value of options granted during 2012, 2011 and 2010 was based upon the Black-Scholes option-pricing model. The expected term of the options represents the estimated period of time until exercise giving consideration to the contractual terms, vesting schedules and expectations of future employee behavior. Expected stock price volatility is based on the historical volatility of our common stock, which began trading on November 13, 2003. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant with an equivalent remaining term. The Company has not paid dividends in the past and does not currently plan to pay any dividends in the foreseeable future. The Black-Scholes model was used with the following weighted-average assumptions:

	2012			2011			2010
Risk free rate		0.8	%		0.8	%		2.0	%
Expected life		5 years			5 years			5 years
Volatility		77.6	%		78 .0	%		77 .0	%
Expected dividend		—			—			—

Restricted stock awards are measured at fair value which is the stock price at date of grant at time of issuance and recognized on a straight-line basis over the vesting period.

Stock-based compensation expense recognized during the years ended December 31, 2012, 2011 and 2010 for each of the types of stock-based awards was (in thousands):

	2012		2011		2010
Stock options	$	1,741	$	1,777	$	1,351
Restricted stock		1,497		1,097		922
Total stock-based compensation expense	$	3,238	$	2,874	$	2,273

All stock-based compensation expense is classified within “Compensation” on the Consolidated Statements of Operations. None of the stock-based compensation was capitalized during 2012 and 2011.

The following table summarizes unrecognized stock-based compensation and the weighted average period over which such stock-based compensation is expected to be recognized as of December 31, 2012 (in thousands):

			Remaining years
Stock options	$	2,339		2.5
Restricted stock		1,724		2.2
	$	4,063

These amounts do not include the cost of any additional awards that may be granted in future periods nor any changes in our forfeiture rate. These amounts do not include the cost of any additional options or restricted stock that may be granted in future periods or any changes in the Company’s forfeiture rate.

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Employee Benefit Plans - Additional Information (Detail) (USD $)	3 Months Ended	9 Months Ended	12 Months Ended
	Jun. 30, 2011	Sep. 30, 2011	Dec. 31, 2012 CompensationPlan	Dec. 31, 2011	Dec. 31, 2010	Sep. 30, 2010
Defined Benefit Plan Disclosure [Line Items]
Number of noncontributory defined benefit plans			2
Projected benefit obligation			$ 52,637,000	$ 51,557,000	$ 48,630,000
Employers contribution vesting period			4 years
Expenses related to contributions to the plan			300,000	200,000	300,000
Number of employer pension plans			3
Multi-employer pension employee percentage			2.40%
Contingent liability			73,800,000
Estimated aggregate withdrawal liability						2,000,000
Aggregate payment to fully discharge liabilities		1,500,000
Restructuring credit	500,000
Ttwu Plan
Defined Benefit Plan Disclosure [Line Items]
Expected contribution during the year ending December 31, 2013			900,000
Clc Plan
Defined Benefit Plan Disclosure [Line Items]
Expected contribution during the year ending December 31, 2013			2,300,000
Central States Southeast And Southwest Areas Pension Plan
Defined Benefit Plan Disclosure [Line Items]
Contingent liability			$ 68,800,000

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Significant Accounting Policies - Additional Information (Detail) (USD $)	12 Months Ended
	Dec. 31, 2012		Dec. 31, 2011		Dec. 31, 2010
Significant Accounting Policies [Line Items]
Restricted cash balance	$ 800,000
Goodwill	104,294,000		31,344,000
Intangibles, net	37,654,000		18,471,000
Deferred tax benefit	7,174,000		8,500,000		(2,792,000)
Insurance deductible for bodily injury and property damages	2,000,000
Insurance deductible for workers compensation	1,000,000
Outstanding letter of credit	20,000,000
Minimum
Significant Accounting Policies [Line Items]
Initial leases period	4 years
Maximum
Significant Accounting Policies [Line Items]
Initial leases period	6 years
Energy Logistics
Significant Accounting Policies [Line Items]
Goodwill	71,339,000	[1]
Intangibles, net	20,900,000
Intermodal
Significant Accounting Policies [Line Items]
Goodwill	31,410,000	[2]	31,344,000	[2]	27,023,000
Intangibles, net	16,600,000		17,900,000
Chemical Logistics
Significant Accounting Policies [Line Items]
Goodwill	1,545,000	[3]
Intangibles, net	200,000		600,000
Current year
Significant Accounting Policies [Line Items]
Deferred tax benefit	28,100,000
Prior Year
Significant Accounting Policies [Line Items]
Deferred tax benefit	35,300,000
Tractor Tankers | Minimum
Significant Accounting Policies [Line Items]
Useful life	3 years
Tractor Tankers | Maximum
Significant Accounting Policies [Line Items]
Useful life	10 years
Stock Options | Minimum
Significant Accounting Policies [Line Items]
Vesting period	2 years
Stock Options | Maximum
Significant Accounting Policies [Line Items]
Vesting period	4 years
Series C Preferred Stock
Significant Accounting Policies [Line Items]
Percentage of dividend payable on shares of series C preferred stock	8.00%
Dividend per preferred share	480
Preferred stock shares outstanding					302
Redemption value of preferred stock					$ 1,800,000

[1] Of the total additions of $71.3 million, $1.7 million related to an independent affiliate acquisition, $1.1 million related to the Trojan acquisition, $48.2 million related to the Bice acquisition and $20.3 million related to the Dunn's acquisition.

[2] Purchase price adjustment for the Greensville acquisition.

[3] Additions are related to an independent affiliate acquisition.

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Multi-Employer Pension Plans (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2012		Dec. 31, 2011		Dec. 31, 2010
Multiemployer Plans [Line Items]
Contributions by us	$ 2,828		$ 2,562		$ 2,481
Employer Teamsters Local Numbers One Hundred Seventy Five and Five Hundred Five Pension Trust Fund
Multiemployer Plans [Line Items]
EIN/Pension Plan Number	55-6021850	[1]
Pension Act Zone Status	Yellow	[2]	Green	[2]
FIP/RP Status Pending/ Implemented	Pending	[3]
Contributions by us	41		40		40
Expiration Date of Collective-Bargaining Agreement	Aug. 02, 2016
New York State Teamsters Conference Pension and Retirement Fund
Multiemployer Plans [Line Items]
EIN/Pension Plan Number	16-6063585	[1]
Pension Act Zone Status	Red	[2]	Red	[2]
FIP/RP Status Pending/ Implemented	Implemented	[3]
Contributions by us	140		87		75
Expiration Date of Collective-Bargaining Agreement	Jul. 14, 2014
Central States Southeast and Southwest Areas Pension Fund
Multiemployer Plans [Line Items]
EIN/Pension Plan Number	36-6044243	[1]
Pension Act Zone Status	Red	[2]	Red	[2]
FIP/RP Status Pending/ Implemented	Implemented	[3]
Contributions by us	$ 2,647		$ 2,435		$ 2,366
Maximum | Central States Southeast and Southwest Areas Pension Fund
Multiemployer Plans [Line Items]
Expiration Date of Collective-Bargaining Agreement	Aug. 31, 2015
Minimum | Central States Southeast and Southwest Areas Pension Fund
Multiemployer Plans [Line Items]
Expiration Date of Collective-Bargaining Agreement	May 31, 2013

[1] The "EIN/Pension Plan Number" column provides the Employee Identification Number (EIN) and the three-digit plan number, if applicable.

[2] Unless otherwise noted, the most recent Pension Protection Act zone status available in 2012 and 2011 is for the plan's year-end at December 31, 2011 and December 31, 2010, respectively. The zone status is based on information that we received from the plan. Among other factors, plans in the red zone are generally less than 65% funded, plans in the yellow zone are less than 80% funded, and plans in the green zone are at least 80% funded.

[3] The "FIP/RP Status Pending/Implemented" column indicates plans for which a financial improvement plan (FIP) or a rehabilitation plan (RP) is either pending or has been implemented. No surcharge has been imposed for any of these plans.

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GOODWILL AND INTANGIBLE ASSETS (Tables)

12 Months Ended

Dec. 31, 2012

Goodwill within Our Intermodal Segment

Goodwill within our intermodal, energy logistics and chemical logistics segments and the related changes were as follows (in thousands):

	December 31, 2011		Additions		Purchase Price Adjustments		December 31, 2012
Intermodal (1)	$	31,344	$	—	$	66	$	31,410
Energy Logistics (2)		—		71,339		—		71,339
Chemical Logistics (3)		—		1,545		—		1,545
Total	$	31,344	$	72,884	$	66	$	104,294

(1) Purchase price adjustment for the Greensville acquisition.

(2) Of the total additions of $71.3 million, $1.7 million related to an independent affiliate acquisition, $1.1 million related to the Trojan acquisition, $48.2 million related to the Bice acquisition and $20.3 million related to the Dunn’s acquisition.

(3) Additions are related to an independent affiliate acquisition.

Intangible Assets

Intangible assets at December 31, 2011 are as follows (in thousands):

	Gross Book Value		Accumulated Amortization			2011 Additions		Net Book Value		Average Lives (in years)
Tradename	$	7,400	$	—		$	—	$	7,400	Indefinite
Customer relationships		11,900		(4,000	)		2,360		10,260	12
Non-compete agreements		2,593		(2,409	)		627		811	3 – 5
	$	21,893	$	(6,409	)	$	2,987	$	18,471

Estimated Amortization Expense for Intangible Assets

Estimated amortization expense for intangible assets is as follows (in thousands):

2013	$	4,186
2014		3,680
2015		3,434
2016		3,430
2017		3,354
Thereafter		12,170

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Stock Compensation Plans - Additional Information (Detail) (USD $)	1 Months Ended	12 Months Ended
	Nov. 05, 2003 Y	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Two Thousand Twelve Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity incentive plan expiry of plan		May 30, 2022
Common stock reserved for issuance		2,000,000
Weighted-average grant date fair value per share of stock-based compensation granted to employees		$ 6.55
Two Thousand Three Stock Option Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average grant date fair value per share of stock-based compensation granted to employees		$ 8.09	$ 6.19	$ 4.19
Increase in grant of nonqualified stock options exercisable with limited exceptions		25.00%
Vesting percentage in third year after issuance of the grant		50.00%
Vesting percentage in fourth year after issuance of the grant		50.00%
Expire date of stock option plan approved	10
Total intrinsic value of stock options exercised		$ 500,000	$ 2,400,000
Total fair value of stock options vested		$ 1,223,000	$ 1,229,000	$ 1,223,000

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Consolidated Balance Sheets (Parenthetical) (USD $) In Thousands, except Per Share data, unless otherwise specified	Dec. 31, 2012	Dec. 31, 2011
Common stock, par value	$ 0	$ 0
Common stock, shares authorized	49,000	49,000
Common stock, shares issued	28,102	24,207
Common stock, shares outstanding	27,223	23,940
Treasury stock, shares	879	267

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Components of Income (Loss) before Income Taxes (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Income Taxes [Line Items]
Domestic	$ 21,853	$ 24,535	$ (8,153)
(Loss) income before income taxes	22,749	25,372	(6,995)
MEXICO
Income Taxes [Line Items]
Foreign	851	855	1,052
CANADA
Income Taxes [Line Items]
Foreign	$ 45	$ (18)	$ 106

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VARIABLE INTEREST ENTITIES

12 Months Ended

Dec. 31, 2012

VARIABLE INTEREST ENTITIES

3. VARIABLE INTEREST ENTITIES

At December 31, 2012, we have a variable interest in one variable interest entity (“VIE”), for which we are not the primary beneficiary. We have concluded, based on our qualitative consideration of our contracts with the VIE, the operating structure of the VIE and our role with the VIE, that we do not have the power to direct the activities that most significantly impact their economic performance. Therefore, we are not required to consolidate the operations of this VIE.

This VIE is an independent affiliate that is directly engaged in the dry bulk and chemical business through the management of three trucking terminals in the North East region of the U.S. As such, this business is highly seasonal. We are involved with this VIE as a non-controlling interest. Our maximum exposure to loss as a result of our involvement with this unconsolidated VIE is limited to our recorded loans receivable which aggregated approximately $3.2 million at December 31, 2012. These loans are secured by a second-priority lien on certain assets of the VIE.

During the third quarter of 2012, we terminated our relationship with an independent affiliate that was considered a variable interest entity as of June 30, 2012. This independent affiliate was directly engaged in both the chemical and energy logistics businesses through the management of eight chemical trucking terminals and one energy terminal. Please refer to Note 6, “Acquisitions”, for the discussion of the acquisition of this former VIE.

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Acquisitions - Additional Information (Detail) (USD $) Share data in Millions, unless otherwise specified	3 Months Ended									12 Months Ended						12 Months Ended							1 Months Ended
	Dec. 31, 2012		Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2012		Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2012 Subordinated Seller Notes	Dec. 31, 2012 Quality Common Stock	Dec. 31, 2012 Dunns Tank Service And Nassau Disposal Inc	Dec. 31, 2012 Bice And R M	Dec. 31, 2011 Bice And R M	Dec. 31, 2012 Bice And R M Unregistered Restricted Common Stock	Dec. 31, 2012 Trojan	Dec. 31, 2012 Greensville	Dec. 31, 2012 Affiliated Entity	Oct. 31, 2012 Affiliated Entity Chemical Logistics Location	Oct. 31, 2012 Affiliated Entity Chemical Logistics Transit Segment Location	Oct. 31, 2012 Affiliated Entity Energy Logistics Location
Quarterly Results Of Operations [Line Items]
Cash paid for acquisition	$ 52,200,000									$ 52,200,000						$ 34,300,000						$ 17,100,000
Increase in expected operating costs																						4,400,000
Purchase price allocated to property plant and equipment																12,200,000				4,100,000	1,200,000	15,500,000
Purchase price allocated to goodwill	48,218,000	[1]								48,218,000	[1]					17,300,000				300,000	3,500,000	1,600,000
Number of terminals																							8	4	1
Date of acquisition																Aug. 01, 2012	Jun. 01, 2012			Apr. 01, 2012	Nov. 01, 2011
Additional Cost of Acquisition																3,600,000	19,000,000				500,000
Purchase price allocated to intangibles assets																4,800,000				4,300,000	2,500,000
Duration of Cash consideration																1 year
Revenue reported by Acquired Entity in Last Reporting year																17,500,000
Purchase price for acquisition																	81,400,000			8,700,000	8,600,000
Revenues	215,392,000		222,078,000	212,733,000	191,915,000	178,750,000	199,298,000	189,993,000	177,910,000	842,118,000		745,951,000	686,598,000					106,000,000
Issued for acquisition														21,300,000	7,900,000
Duration of subordinated seller notes										5 years
Interest rate for subordinated seller notes										5.00%
Unregistered restricted share																			0.7
Duration of restricted shares of quality common stock										1 year
Contingent consideration	6,800,000									6,800,000							6,800,000
Amortization period for non-compete agreements										6 years
Amortization period for customer related intangible assets										10 years
Amortization period for trade name										2 years
Additional cost of acquisition																				1,000,000
Revenue																				13,500,000
purchase price allocated to accounts receivables																					1,400,000
Cash paid for acquisition																					500,000
Tax deductible amount of Goodwill																					$ 4.5

[1] A measurement period adjustment of $1.3 million was made in the fourth quarter of 2012 based on a real estate appraisal.

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Long Term Debt (Parenthetical) (Detail)	Dec. 31, 2012	Dec. 31, 2011
Debt Instrument [Line Items]
Interest rate	9.875%
Nine Point Eight Seven Five Percent Second Priority Senior Secured Notes Due Twenty Eighteen
Debt Instrument [Line Items]
Interest rate	9.875%	9.875%
Maturity Year	2018	2018
Five Percent Subordinated Acquisition Notes
Debt Instrument [Line Items]
Interest rate	5.00%

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Capital Stock - Additional Information (Detail) (USD $)	1 Months Ended						1 Months Ended			12 Months Ended	1 Months Ended
	Mar. 13, 2012	Feb. 09, 2011	Dec. 31, 2012	Dec. 31, 2011	Oct. 15, 2009	Nov. 04, 2003	Mar. 13, 2012 Apollo Management, L.P.	Feb. 09, 2011 Apollo Management, L.P.	Nov. 20, 2012 Share Repurchase Program	Dec. 31, 2012 Share Repurchase Program	Oct. 15, 2009 Minimum	Oct. 15, 2009 Maximum	Nov. 04, 2003 Convertible Preferred Stock
Stockholders Equity Note [Line Items]
Capital stock authorized						50,000,000
Common stock, shares authorized			49,000,000	49,000,000		49,000,000
Preferred stock, shares authorized						1,000,000							600,000,000
Preferred stock, shares issued													510,000,000
Preferred stock, shares outstanding													510,000,000
Common stock sold in an underwritten public offering	2,500,000	2,000,000					3,200,000	2,600,000
Gross price per share	$ 13.00	$ 9.50
Proceed from sale of common stock	$ 30,500,000	$ 17,600,000
Warrants to purchase shares					1,752,895
Exercise price of warrants					0.01
Warrants exercisable period											Apr. 16, 2010	Nov. 01, 2013
Fair value of warrants					6,700,000
Warrants outstanding			8,680	354,000
Warrants outstanding shares			25,000	1,347,000
Treasury stock value			5,849,000	1,878,000
Treasury stock, shares			879,000	267,000
Repurchase of common stock value									$ 15,000,000	$ 3,700,000
Repurchase of common stock shares										600,000

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Operations Different Geographic Area (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended										12 Months Ended
	Dec. 31, 2012		Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011		Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2012		Dec. 31, 2011		Dec. 31, 2010
Geographic Reporting Disclosure [Line Items]
Total operating revenues	$ 215,392		$ 222,078	$ 212,733	$ 191,915	$ 178,750		$ 199,298	$ 189,993	$ 177,910	$ 842,118		$ 745,951		$ 686,598
Operating income	10,244		11,617	13,444	13,838	13,261		15,286	16,939	12,193	49,143		57,679		36,735
Long-term identifiable assets	190,342	[1]				125,892	[1]				190,342	[1]	125,892	[1]	113,419	[1]
U.S.
Geographic Reporting Disclosure [Line Items]
Total operating revenues											802,715		700,641		648,634
Operating income											42,346		50,083		32,086
Long-term identifiable assets	184,510	[1]				119,879	[1]				184,510	[1]	119,879	[1]	106,148	[1]
International
Geographic Reporting Disclosure [Line Items]
Total operating revenues											39,403		45,310		37,964
Operating income											6,797		7,596		4,649
Long-term identifiable assets	$ 5,832	[1]				$ 6,013	[1]				$ 5,832	[1]	$ 6,013	[1]	$ 7,271	[1]

[1] Includes property and equipment.

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COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2012

COMMITMENTS AND CONTINGENCIES

20. COMMITMENTS AND CONTINGENCIES

Operating Leases

We are obligated under various noncancelable operating leases for our office facilities, office equipment, revenue equipment and vehicles. Future noncancelable lease commitments (excluding any sublease income) as of December 31, 2012, are as follows (in thousands):

2013	$	21,877
2014		19,976
2015		19,135
2016		19,288
2017		16,017
Thereafter		2,985
Total	$	99,278

We expect that some of our operating lease commitments for tractors and trailers will be partially offset by rental revenue from subleasing the tractors to independent affiliates and independent owner-operators and subleasing trailers to independent affiliates. Rent expense under operating leases was $23.2 million, $13.3 million and $16.8 million for the years ended December 31, 2012, 2011 and 2010, respectively.

Environmental Matters

It is our policy to comply with all applicable environmental, safety and health laws. We also are committed to the principles of Responsible Care^®, an international chemical industry initiative to enhance the industry’s responsible management of chemicals. We have obtained independent certification that our management system is in place and functions according to professional standards and we continue to evaluate and continuously improve our Responsible Care^® Management System performance. Our current activities involve the handling, transportation and storage of bulk chemicals, both liquid and dry, disposal water, and crude oil, which in many cases are classified as hazardous materials or hazardous substances. The energy logistics business operates disposal wells for non-conventional oil drilling wastewater. In addition, our former tank wash business (which was sold in 2009) and the remaining limited tank wash activities involve the generation, storage, discharge and disposal of wastes that may contain hazardous substances. As such, we and others who operate in our industry are subject to environmental, health and safety laws and regulation by U.S. federal, state and local agencies as well as foreign governmental authorities. Environmental laws and regulations are complex, and address emissions to the air, discharge onto land or water, and the generation, handling, storage, transportation, treatment and disposal of waste materials. These laws change frequently and generally require us to obtain and maintain various licenses and permits. Environmental laws have tended to become more stringent over time, and most provide for substantial fines and potential criminal sanctions for violations. Some of these laws and regulations are subject to varying and conflicting interpretations. Under certain of these laws, we could also be subject to allegations of liability for the activities of our independent affiliates or independent owner-operators.

We are potentially subject to strict, joint and several liability for investigating and rectifying the consequences of spills and other releases of such substances. From time to time, we have incurred remedial costs and regulatory penalties with respect to chemical or wastewater spills and releases at our facilities and on the road, and, notwithstanding the existence of our environmental management program, we cannot: (1) assure that such obligations will not be incurred in the future, (2) predict with certainty the extent of future liabilities and costs under environmental, health, and safety laws, or (3) assure that such liabilities will not result in a material adverse effect on our business, financial condition, operating results or cash flow. We have established reserves for remediation expenses at known contamination sites when it is probable that such efforts will be required of us and the related expenses can be reasonably estimated. We have also incurred in the past, and expect to incur in the future, expenditures related to environmental compliance; however, we do not anticipate that compliance with existing environmental laws will have a material adverse effect on our earnings or competitive position.

Environmental Reserves

Our policy is to accrue remediation expenses when it is probable that such efforts will be required and the related expenses can be reasonably estimated. Estimates of costs for future environmental compliance and remediation may be impacted by such factors as changes in environmental laws and regulatory requirements, the availability and application of technology, the identification of currently unknown potential remediation sites and the allocation of costs among the potentially responsible parties under the applicable statutes. Our reserves for environmental compliance and remediation are adjusted periodically as remediation efforts progress or as additional technical or legal information becomes available. It is difficult to quantify with certainty the potential financial impact of actions regarding expenditures for environmental matters, particularly remediation, and future capital expenditures for environmental control equipment. Nevertheless, based upon the information currently available, we believe that our ultimate liability arising from such environmental matters, taking into account the reserves described below, should not be material to our business or financial condition. As of December 31, 2012 and 2011, we had reserves in the amount of $9.0 million and $10.1 million, respectively, for all environmental matters, of which the most significant are presented and discussed below.

	Number of Sites				Reserves (in millions)
	December 31, 2012		December 31, 2011		December 31, 2012		December 31, 2011
Multi-party sites		15		18	$	1.7	$	2.2
Sole party sites:
Bridgeport, New Jersey		1		1		4.8		5.3
William Dick, Pennsylvania		1		1		0.7		0.9
Other Properties		6		6		1.8		1.7
Total		23		26	$	9.0	$	10.1

The foregoing amounts include estimates for future expenditures over the next five years that we believe are probable and are reasonably estimable. The estimate of the range of reasonably possible costs is less certain than the estimates upon which the reserves are based, and the estimated high ends of the ranges do not represent our maximum theoretical liability.

Changes to the environmental reserves are reflected in our Consolidated Statements of Operations within the “Selling and administrative” category.

Property Contamination Liabilities—Multi-Party Sites

We have been named as (or are alleged to be) a potentially responsible party under the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended (“CERCLA”) and similar state laws at approximately 23 sites. At 15 of the 23 sites, we are one of many parties with alleged liability and are negotiating with Federal, State or private parties on the scope of our obligations, if any. At 1 of the 15 sites, we are participating in the initial study to determine site remediation objectives. Since our overall liability cannot be estimated at this time, we have set reserves for only the initial remedial investigation phase. At 2 of the 15 sites, we have explicitly denied any liability and since there has been no subsequent demand for payment we have not established a reserve for these matters. We have estimated all future expenditures for these 15 multi-party environmental matters to be paid over the next five years to be in the range of $1.7 million to $3.8 million. As of December 31, 2012, we have reserved $1.7 million.

Sole Party Sites

At 8 of the 23 sites, we are alleged to be the only responsible party and are in the process of conducting investigations and/or remediation projects. Five of these projects relate to operations conducted by CLC and its subsidiaries prior to our acquisition of CLC in 1998. These five sites are: (1) Bridgeport, New Jersey; (2) William Dick, Pennsylvania; (3) Tonawanda, New York; (4) Scary Creek, West Virginia; and (5) Charleston, West Virginia. The remaining three sites relate to investigations and potential remediation that were triggered by the New Jersey Industrial Site Recovery Act (“ISRA”), which requires such investigations and remediation following the sale of industrial facilities. Each of these five CLC sites is discussed in more detail below. We have estimated future expenditures over the next five years for these eight properties to be in the range of $7.3 million to $16.7 million. As of December 31, 2012, we have reserved $7.3 million.

Bridgeport, New Jersey

QDI is required under the terms of three federal consent decrees to perform remediation work at this operating truck terminal and tank wash site. CLC entered into consent orders with the U.S. Environmental Protection Agency (“USEPA”) in 1991, to treat groundwater, in 1998, to remove contamination in the wetlands, and in 2010, to assess and remediate contaminated soils at the site.

The groundwater treatment remedy negotiated with USEPA required us to construct a treatment facility for in-place treatment of groundwater contamination and a local discharge which was completed in early 2007. After various start-up issues, the treatment facility began long-term operations in July 2011 and is in the operations and maintenance phase. The plant appears to be performing in accordance with its design criteria and meeting permit requirements. Wetlands contamination has been remediated with localized restoration completed. Monitoring of the restored wetlands is required by USEPA to continue in 2012, and USEPA has requested additional monitoring through 2017. In regard to contaminated soils, USEPA finalized the feasibility study and issued a record of decision in 2009 for the limited areas that show contamination and warrant additional investigation or work. We entered into a consent order with USEPA in 2010 to perform the remediation work, which will consist of in-place thermal treatment. In late 2012, USEPA concluded that our additional required site investigation work for delineation purposes is now complete. The preliminary engineering design effort for the contaminated soils was started. We have estimated aggregate expenditures for the Bridgeport location over the next five years to be in the range of $4.8 million to $8.5 million. As of December 31, 2012, we have reserved $4.8 million.

William Dick, Pennsylvania

CLC entered into a consent order with the Pennsylvania Department of Environmental Protection and USEPA in 1995 to provide a replacement water supply to area residents, treat contaminated groundwater, and perform remediation of contaminated soils at this former wastewater disposal site. The replacement water supply is complete. We completed construction of a groundwater treatment facility with local discharge in 2007 and the treatment facility began operations in 2010. Although initial soil treatment was completed in 2007, test results indicated that soil clean-up objectives were not fully achieved. Soil piles from isolated discrete removal actions were subsequently treated on-site; we are awaiting approval from USEPA that this work is complete. Negotiations are on-going with USEPA over further limited soil remediation consisting of targeted in-situ chemical treatment that may be needed at the site. We have estimated aggregate expenditures for the William Dick location over the next five years to be in the range of $0.7 million to $3.4 million. As of December 31, 2012, we have reserved $0.7 million.

Other Properties

Tonawanda, New York: CLC entered into a consent order with the New York Department of Environmental Conservation (“NYSDEC”) in 1999 obligating it to perform soil and groundwater remediation at this former truck terminal and tank wash site. The state issued a record of decision in 2006. The remedial design work plan has been approved by the NYSDEC, and the remedial action phase is expected to begin in 2013.

Scary Creek, West Virginia: CLC received a cleanup notice from the state environmental authority in 1994. The state and we have agreed that remediation can be conducted under the state’s voluntary clean-up program (instead of the state superfund enforcement program). We are currently completing the originally planned remedial investigation and the additional site investigation work.

Charleston, West Virginia: CLC completed its remediation plan for a former drum disposal area in 1995 at this truck terminal and tank wash site under the terms of a state hazardous waste permit. Supplemental groundwater monitoring was also required and completed. In 2012, we entered into the state’s voluntary clean-up program which requires us to perform additional sampling to close the site. Initial sampling work has commenced at the site.

ISRA New Jersey Facilities: We are obliged to conduct investigations and remediation at three current or former New Jersey tank wash and terminal sites pursuant to the state’s ISRA, which requires such remediation following the sale of facilities after 1983. Two of the sites are in the process of remedial investigation with projections set in contemplation of limited soil remediation expense for contaminated areas.

One site has completed the investigation phase and a final report was submitted to New Jersey Department of Environmental Protection. In accordance with the report findings and with the concurrence of the NJDEP, remedial efforts included limited soil excavation at the site, deed recordation, placement of clean fill and the designation of a Classification Exception Area for the groundwater. No further field remediation work is expected and this site has entered a long term monitoring phase.

We have estimated aggregate future expenditures over the next five years for Tonawanda, Scary Creek, Charleston and ISRA New Jersey to be in the range of $1.8 million to $4.8 million. As of December 31, 2012, we have reserved $1.8 million.

Other Legal Matters

We are from time to time involved in routine litigation incidental to the conduct of our business. We believe that no such routine litigation currently pending against us, if adversely determined, would have a material adverse effect on our consolidated financial position, results of operations or cash flows.

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Commitment and contingencies (Detail) (USD $) In Millions, unless otherwise specified	Dec. 31, 2012 Site	Dec. 31, 2011 Location
Commitment And Contingencies [Line Items]
Number of Sites	23	26
Reserves	$ 9.0	$ 10.1
Multi-party sites
Commitment And Contingencies [Line Items]
Number of Sites	15	18
Reserves	1.7	2.2
Sole party sites
Commitment And Contingencies [Line Items]
Reserves	7.3
Sole party sites | Bridgeport, New Jersey
Commitment And Contingencies [Line Items]
Number of Sites	1	1
Reserves	4.8	5.3
Sole party sites | William Dick, Pennsylvania
Commitment And Contingencies [Line Items]
Number of Sites	1	1
Reserves	0.7	0.9
Sole party sites | Other Properties
Commitment And Contingencies [Line Items]
Number of Sites	6	6
Reserves	$ 1.8	$ 1.7

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Goodwill and Related Changes (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2012		Dec. 31, 2011
Intangible Assets Goodwill And Other Assets [Line Items]
Beginning Balance	$ 31,344
Additions	72,884
Addition	66
Ending Balance	104,294
Intermodal
Intangible Assets Goodwill And Other Assets [Line Items]
Beginning Balance	31,344	[1]	27,023
Addition	66	[1]	4,321
Ending Balance	31,410	[1]	31,344	[1]
Energy Logistics
Intangible Assets Goodwill And Other Assets [Line Items]
Additions	71,339	[2]
Ending Balance	71,339	[2]
Chemical Logistics
Intangible Assets Goodwill And Other Assets [Line Items]
Additions	1,545	[3]
Ending Balance	$ 1,545	[3]

[1] Purchase price adjustment for the Greensville acquisition.

[2] Of the total additions of $71.3 million, $1.7 million related to an independent affiliate acquisition, $1.1 million related to the Trojan acquisition, $48.2 million related to the Bice acquisition and $20.3 million related to the Dunn's acquisition.

[3] Additions are related to an independent affiliate acquisition.

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GEOGRAPHIC INFORMATION (Tables)

12 Months Ended

Dec. 31, 2012

Operations Different Geographic Area

Information about our operations in different geographic areas for the years ended December 31 is as follows (in thousands):

	2012
	U.S.		International		Consolidated
Total operating revenues	$	802,715	$	39,403	$	842,118
Operating income		42,346		6,797		49,143
Long-term identifiable assets (1)		184,510		5,832		190,342

	2011
	U.S.		International		Consolidated
Total operating revenues	$	700,641	$	45,310	$	745,951
Operating income		50,083		7,596		57,679
Long-term identifiable assets (1)		119,879		6,013		125,892

	2010
	U.S.		International		Consolidated
Total operating revenues	$	648,634	$	37,964	$	686,598
Operating income		32,086		4,649		36,735
Long-term identifiable assets (1)		106,148		7,271		113,419

(1) Includes property and equipment.

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GOODWILL AND INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2012

GOODWILL AND INTANGIBLE ASSETS

13. GOODWILL AND INTANGIBLE ASSETS

Goodwill

Goodwill within our intermodal, energy logistics and chemical logistics segments and the related changes were as follows (in thousands):

	December 31, 2011		Additions		Purchase Price Adjustments		December 31, 2012
Intermodal (1)	$	31,344	$	—	$	66	$	31,410
Energy Logistics (2)		—		71,339		—		71,339
Chemical Logistics (3)		—		1,545		—		1,545
Total	$	31,344	$	72,884	$	66	$	104,294

(1) Purchase price adjustment for the Greensville acquisition.

(2) Of the total additions of $71.3 million, $1.7 million related to an independent affiliate acquisition, $1.1 million related to the Trojan acquisition, $48.2 million related to the Bice acquisition and $20.3 million related to the Dunn’s acquisition.

(3) Additions are related to an independent affiliate acquisition.

Goodwill within our intermodal segment and the related changes were as follows (in thousands):

	December 31, 2010		Addition Acquisition  of Greensville		December 31, 2011
Intermodal	$	27,023	$	4,321	$	31,344

Intangible Assets

Intangible assets at December 31, 2012 are as follows (in thousands):

	Gross Book Value		2012 Additions		Accumulated Amortization			Net Book Value		Average Lives (in years)
Tradename—Intermodal	$	7,400	$	—	$	—		$	7,400		Indefinite
Tradename—Energy Logistics		—		1,100		(304	)		796		2
Customer relationships		14,260		19,150		(6,292	)		27,118		10-12
Non-compete agreements		3,221		1,090		(3,015	)		1,296		3-6
Service agreement		—		1,120		(76	)		1,044		11
	$	24,881	$	22,460	$	(9,687	)	$	37,654

Of the total intangibles of $37.7 million at December 31, 2012, $20.9 million was allocated to our energy logistics segment, $16.6 million was allocated to our intermodal segment and $0.2 million was allocated to our chemical logistics segment.

Intangible assets at December 31, 2011 are as follows (in thousands):

	Gross Book Value		Accumulated Amortization			2011 Additions		Net Book Value		Average Lives (in years)
Tradename	$	7,400	$	—		$	—	$	7,400	Indefinite
Customer relationships		11,900		(4,000	)		2,360		10,260	12
Non-compete agreements		2,593		(2,409	)		627		811	3 – 5
	$	21,893	$	(6,409	)	$	2,987	$	18,471

Of the total intangibles of $18.5 million at December 31, 2011, $17.9 million was allocated to our intermodal segment and $0.6 million was allocated to our chemical logistics segment.

Amortization expense for the years ended December 31, 2012, 2011, and 2010 was $3.3 million, $1.4 million and $1.5 million, respectively. Estimated amortization expense for intangible assets is as follows (in thousands):

2013	$	4,186
2014		3,680
2015		3,434
2016		3,430
2017		3,354
Thereafter		12,170

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Pension Plan Weighted Average Asset Allocations by Asset Category (Detail)	Dec. 31, 2012	Dec. 31, 2011
Ttwu Plan
Defined Benefit Plan Disclosure [Line Items]
Weighted-average asset allocations	100.00%	100.00%
Ttwu Plan | Equity Securities and Mutual Funds
Defined Benefit Plan Disclosure [Line Items]
Weighted-average asset allocations	76.20%	46.20%
Ttwu Plan | Debt Securities
Defined Benefit Plan Disclosure [Line Items]
Weighted-average asset allocations	17.10%	30.20%
Ttwu Plan | Other Investments
Defined Benefit Plan Disclosure [Line Items]
Weighted-average asset allocations		20.90%
Ttwu Plan | Cash and Cash Equivalents
Defined Benefit Plan Disclosure [Line Items]
Weighted-average asset allocations	6.70%	2.70%
Clc Plan
Defined Benefit Plan Disclosure [Line Items]
Weighted-average asset allocations	100.00%	100.00%
Clc Plan | Equity Securities and Mutual Funds
Defined Benefit Plan Disclosure [Line Items]
Weighted-average asset allocations	77.30%	51.80%
Clc Plan | Debt Securities
Defined Benefit Plan Disclosure [Line Items]
Weighted-average asset allocations	16.30%	36.00%
Clc Plan | Other Investments
Defined Benefit Plan Disclosure [Line Items]
Weighted-average asset allocations		9.70%
Clc Plan | Cash and Cash Equivalents
Defined Benefit Plan Disclosure [Line Items]
Weighted-average asset allocations	6.40%	2.50%