HOUSTON, May 8, 2017 /PRNewswire/ -- Adams Resources &
Energy, Inc., (NYSE MKT: AE)("Adams" or the "Company") announced an
unaudited first quarter 2017 net loss of approximately $0.9 million or ($0.20) per common share on revenues of
$303.1 million. This compares
to unaudited net income of $1.4
million or $0.34 per share on
revenues of $250.5 million for the
first quarter of 2016.
First Quarter 2017 Highlights:
- Gross revenues of over $303
million for the first quarter ended March 31, 2017
- Adams Resources & Energy, Inc.'s crude oil marketing and
transportation subsidiary, GulfMark Energy, Inc., marketed
approximately 66,360 barrels of oil per day during the first
quarter of 2017
- Continued effort to diversify offerings at the transportation
subsidiary, Service Transport Company, Inc., with plans to begin
ISO tank storage and transportation toward the end of the second
quarter of 2017
- Over $158 million of liquidity
($98 million of cash and cash
equivalents and $60 million of
undrawn letter of credit facility) as of March 31, 2017
- Generated positive free cash flow (cash flow from operations
before changes in working capital less capital expenditures and
dividends)
- Dividend of $0.22 per share for
the first quarter of 2017
- No short or long term debt as of March
31, 2017
"Adams is off to a decent start
in 2017 as our first quarter results saw meaningful increases in
activity in March 2017. Our crude oil marketing and
transportation subsidiary was negatively impacted by Frost Laws in
North Dakota and Michigan during the first quarter of 2017, but
saw volumes return in March 2017 as
weather related downtime was reduced. The Company experienced
a noticeable uptick in activity at our Service Transport subsidiary
during March 2017. We are encouraged by the activity that we
saw late in the first quarter of 2017 and look forward to executing
our strategy during the year," said Thomas
S. Smith, President and Chief Executive Officer.
Capital Investments and Dividends
During the first quarter of 2017, the Company invested
approximately $1.0 million of capital
and paid dividends of $0.9 million
($0.22 per share). The majority of
the capital during the first quarter of 2017 was invested in the
upstream oil and gas exploration and production subsidiary as the
Company participated in several wells in the Permian Basin and
Haynesville Shale. On April 20,
2017, the Company announced the conclusion of its review of
strategic alternatives associated with the oil and gas exploration
and production division and voluntarily filed a petition of
reorganization under Chapter 11 of the Bankruptcy Code in
Delaware. The Company has retained Oil & Gas Asset
Clearinghouse, LLC to advise us with respect to the sale process of
its oil and gas exploration and production subsidiary.
Josh C. Anders
(281)
974-9442
UNAUDITED CONDENSED
CONSOLIDATED STATEMENT OF EARNINGS
|
(In
thousands, except per share data)
|
|
|
Three Months
Ended
|
|
2017
|
2016
|
|
|
|
Revenues
|
$ 303,087
|
$
250,531
|
|
|
|
Costs, expenses and
other
|
(304,671)
|
(248,192)
|
Interest income,
net
|
158
|
103
|
Income tax benefit
(provision)
|
566
|
(888)
|
|
|
|
(Loss) earnings from
continuing operations
|
(860)
|
1,554
|
|
|
|
(Loss) from equity
investments, net of tax
|
-
|
(124)
|
|
|
|
Net (loss)
earnings
|
$
(860)
|
$
1,430
|
|
|
|
(Loss) earnings per
common share:
|
|
|
Basic and diluted net (loss) earnings per common
share
|
$
(0.20)
|
$
0.34
|
Dividends per common
share
|
$
0.22
|
$
0.22
|
UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEET
|
(In
thousands, except per share data)
|
|
|
March 31,
|
December 31,
|
|
2017
|
2016
|
ASSETS
|
|
|
Cash
|
$
98,073
|
$
87,342
|
Other current
assets
|
115,041
|
105,176
|
Total current
assets
|
213,114
|
192,518
|
|
|
|
Net property &
equipment
|
43,809
|
46,325
|
Deposits and other
assets
|
7,240
|
8,029
|
|
$
264,163
|
$
246,872
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
Total current
liabilities
|
$
105,337
|
$
86,074
|
Other liabilities and
deferred taxes
|
9,302
|
9,486
|
Shareholders'
equity
|
149,524
|
151,312
|
|
$
264,163
|
$
246,872
|
Adams Resources
& Energy, Inc. and Subsidiaries
|
Unaudited
Consolidated Statement of Cash Flows
|
(In
thousands)
|
|
|
|
Three Months
Ended
|
|
March 31,
|
|
2017
|
2016
|
CASH PROVIDED BY
OPERATIONS:
|
|
|
Net (loss)
earnings
|
$
(860)
|
$
1,430
|
Adjustments to
reconcile net earnings to net cash from operating activities -
|
|
|
Depreciation,
depletion and
amortization
|
3,969
|
5,115
|
Property sales loss
(gains)
|
7
|
(120)
|
Impairment of oil and
natural gas properties
|
3
|
29
|
Deferred income
taxes
|
60
|
(1,352)
|
Net change in fair
value contracts
|
(420)
|
158
|
Equity investment
losses
|
-
|
191
|
(Increase) in accounts
receivable
|
(1,968)
|
(1,224)
|
(Increase) in
inventories
|
(7,557)
|
(5,707)
|
Decrease (increase) in
income tax
receivable
|
(736)
|
1,958
|
Decrease in
prepayments
|
744
|
338
|
Increase (decrease) in
accounts payable
|
17,746
|
(3,614)
|
Increase in accrued
liabilities
|
1,084
|
393
|
Other changes,
net
|
78
|
47
|
|
|
|
Net cash provided by
(used in) operating activities
|
12,150
|
(2,358)
|
|
|
|
INVESTING
ACTIVITIES:
|
|
|
Property and equipment
additions
|
(1,006)
|
(4,210)
|
Proceeds from property
sales
|
39
|
920
|
Investments
|
-
|
(2,200)
|
Insurance and state
collateral (deposits) refunds
|
476
|
(2)
|
|
|
|
Net cash used in
investing activities
|
(491)
|
(5,492)
|
|
|
|
FINANCING
ACTIVITIES
|
|
|
Dividend
payments
|
(928)
|
(928)
|
|
|
|
Net cash used in
financing activities
|
(928)
|
(928)
|
|
|
|
Increase (decrease) in
cash and cash equivalents
|
10,731
|
(8,778)
|
|
|
|
Cash and cash
equivalents at beginning of period
|
87,342
|
91,877
|
|
|
|
Cash and cash
equivalents at end of period
|
$
98,073
|
$
83,099
|
Adams Resources
& Energy, Inc. and Subsidiaries
|
Unaudited
Operating Cash Flow Before Changes in Working Capital
Reconciliation
|
(In
thousands)
|
|
|
Three Months
Ended
March 31,
|
|
2017
|
2016
|
Operating Cash Flow
Before Changes in Working Capital Reconciliation:
|
|
|
Net (loss)
earnings
|
$
(860)
|
$
1,430
|
Adjustments to
reconcile net (loss) earnings to net cash from operating activities-
|
|
|
Depreciation,
depletion and amortization
|
3,969
|
5,115
|
Property sales losses
(gains) oil and natural gas
|
7
|
(120)
|
Impairment of oil and
natural gas properties
|
3
|
29
|
Deferred income taxes
(includes equity investments)
|
60
|
(1,352)
|
Net change in fair
value contracts
|
(420)
|
158
|
Equity investment
losses
|
-
|
191
|
Operating Cash Flow
Before Changes in Working Capital
|
$
2,759
|
$
5,451
|
Cautionary Statement Regarding Forward-Looking
Statements
The information in this release includes certain forward-looking
statements that are based on assumptions that in the future may
prove not to have been accurate. A number of factors could cause
actual results or events to differ materially from those
anticipated. Such factors include, among others, (a) general
economic conditions and potential adverse world economic
conditions, (b) fluctuations in hydrocarbon commodity prices and
margins, (c) variations between commodity contract volumes and
actual delivery volumes, (d) unanticipated environmental
liabilities or regulatory changes, (e) counterparty credit default,
(f) inability to obtain bank and/or trade credit support, (g)
availability and cost of insurance, (h) changes in tax laws, (i)
the availability and cost of capital, (j) results of current items
of litigation, (k) uninsured items of litigation or losses, (l)
uncertainty in reserve estimates and cash flows, (n) successful
drilling activity and the ability to replace oil and gas reserves,
(m) security issues related to drivers and terminal facilities, (o)
demand for chemical based trucking operations, (p) financial
soundness of customers and suppliers. These and other risks
are described in the Company's reports that are on file with the
Securities and Exchange Commission.
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visit:http://www.prnewswire.com/news-releases/adams-resources-announces-first-quarter-2017-results-300453590.html
SOURCE Adams Resources & Energy, Inc.