The Company reported net income of $512,000 and EBITDA (a non-GAAP measure) of $2.0 million for the quarter compared to a net loss of $3.0 million and EBITDA of $196,000 for the same period a year ago, a $3.5 million and $1.8 million improvement to its financial performance, respectively. The Company reported basic and diluted earnings per share of $0.02 in the first quarter of fiscal 2009, compared to basic and diluted net loss per share of $0.21 in the prior year for the same period. In the first quarter of 2009, the Company continued with the trend of improvements in net margin contribution reflected in the fourth quarter of fiscal 2008, which was bolstered by the emergency response services provided during the current period.

Highlights of First Quarter Fiscal Year 2009 vs. First Quarter Fiscal Year 2008

-- Revenues were $79.3 million in the first quarter of fiscal 2009, a 43% increase from $55.5 million in the same period in fiscal 2008 primarily as a result of price variances due to overall higher market prices of petroleum products.

-- Net income of $512,000 in the first quarter of fiscal 2009, an increase of $3.5 million from a net loss of $3.0 million in the first quarter of fiscal 2008 primarily as a result of the continuing overall trend of improved margins, emergency response service margin generated as a result of the hurricane season in the current period, and the loss on extinguishment of debt related to the refinancing of outstanding secured promissory notes in the prior year.

-- EBITDA (a non-GAAP measure) was $2.0 million in the first quarter of fiscal 2009, a $1.8 million increase from $196,000 generated in the prior year period.

-- Gallons sold were 18.6 million in the first quarter of 2009, a slight decrease from the 18.7 million in the prior year period primarily as a result lower volumes sold to existing customers in response to higher fuel prices and a weaker economy, the elimination of lower margin customers and the pursuit of business with higher margin contributions.

-- Net margin per gallon increased to 33.2 cents in the first quarter of fiscal 2009 from 19.1 cents in the prior year period primarily as a result of higher margin business and improvements in operating efficiencies.

-- Non-cash charges were $1.3 million in the first quarter of fiscal 2009, down from $2.4 million in the same period in fiscal 2008.

Highlights of First Quarter Fiscal Year 2009 vs. Fourth Quarter Fiscal Year 2008

-- Revenues were $79.3 million in the first quarter of fiscal 2009, a 3.4% decrease from $82.0 million in the fourth quarter of fiscal 2008 primarily as a result of an 8% decrease in fuel market prices and a decrease of 474,000 in gallons sold relating primarily to the effects of hurricanes in the current period as discussed below.

-- Net income of $512,000 in the first quarter of fiscal 2009 increased $878,000 from a net loss of $366,000 in the fourth quarter of fiscal 2008. The increase in net income primarily results from the continuing trend of pursuing higher margin business, the addition of emergency response service margin generated as a result of the hurricane season in the first quarter of fiscal 2009, partially offset by an increase in SG&A due to increases in the provision for bad debt, credit card fees, and legal expenses.

-- EBITDA (a non-GAAP measure) increased by $836,000 to $2.0 million in the first quarter of fiscal 2009 from $1.2 million in the fourth quarter of fiscal 2008.

-- Gallons sold were 18.6 million in the first quarter of fiscal 2009 as compared to the 19.0 million gallons sold in the fourth quarter of fiscal 2008. This decrease in gallons sold was due to the hurricanes in the current period which interrupted certain existing customer operations and the reduction by the Company of certain lower margin, high volume bulk day business to allow for the increase of higher margin emergency response services which generated fewer gallons sold.

-- Net margin per gallon increased to 33.2 cents in the first quarter of fiscal 2009 from 24.2 cents in the prior quarter primarily as a result of higher margin business and operating efficiencies.

-- Non-cash charges were $1.3 million in the first quarter of fiscal 2009, an increase from $798,000 in the fourth quarter in fiscal 2008 primarily due to increases in the provision for bad debt.

Richard E. Gathright, Chairman, Chief Executive Office and President, commented:

"We are extremely pleased to report a profit of $512,000 and EBITDA of $2 million for the first quarter of fiscal 2009, a tremendous achievement for our Company in these troubled economic times. Our reported results are reflective of the investments in time and money that we have made over the past several years to improve our efficiency and our operations, including a continuation of the turnaround in our financial results that began in January of this year with the full implementation of our ERP system.

"While we share the widespread concern about the economic turmoil that is gripping the national economy, we are optimistic that our strong and diverse base of more than 4,000 customers, who deliver some of the most fundamental necessities of our economy, will help us withstand any future pressures from general economic conditions. We have already seen stabilization in our base customers' demand for our services over the last two quarters, irrespective of the longstanding downturn in the transportation sector, which downturn began well before the recent tumult in the financial markets. We are also greatly encouraged by the growth in demand for our services from new customers, which has been largely unaffected by the recent volatility in oil prices.

"With the new efficiencies in our business operations allowing us to operate with a higher yield, we presently expect that our positive momentum will continue even if the overall economy continues to deteriorate. Moreover, we believe that the advantages we now hold over many others in our industry will allow us to be a major consolidator in the downstream energy services distribution sector.