HOUSTON, March 8, 2022 /PRNewswire/ -- Adams Resources
& Energy, Inc. (NYSE AMERICAN: AE) ("Adams" or the "Company")
today announced operational and financial results for the three
months and year ended December 31, 2021.
Fourth Quarter 2021 Financial Highlights
- Reported net earnings of $2.8
million, or $0.64 per diluted
common share, on revenues of $644.8
million for the fourth quarter of 2021, compared to
$5.8 million, or $1.38 per diluted common share, on revenues of
$249.8 million for the fourth quarter
of 2020. During the third quarter of 2021, the Company reported net
earnings of $1.5 million, or
$0.36 per diluted common share, on
revenues of $568.2 million.
- Generated net cash provided by operating activities of
$16.8 million for the fourth quarter
of 2021, versus $6.1 million for the
fourth quarter of 2020. The increase was primarily driven by
changes in working capital and higher cash-based earnings in the
2021 period. Adams generated net cash provided by operating
activities of $12.1 million for the
third quarter of 2021.
- Reported adjusted net earnings of $2.8
million, or $0.64 per diluted
common share, for the fourth quarter of 2021, compared to
$2.8 million, or $0.65 per diluted common share, for the fourth
quarter of 2020, and $1.8 million, or
$0.41 per diluted common share, for
the third quarter of 2021.
- Increased adjusted cash flow by 40% to $8.6 million for the fourth quarter of 2021 from
$6.1 million for the fourth quarter
of 2020, and 18% from $7.3 million
for the third quarter of 2021.
Full Year 2021 Financial Highlights
- Reported net earnings of $11.9
million, or $2.75 per diluted
common share, on revenues of $2.03
billion for the full year 2021, compared to $1.0 million, or $0.23 per diluted common share, on revenues of
$1.02 billion for the full year
2020.
- Generated net cash provided by operating activities of
$81.0 million for the full year 2021,
compared to net cash used in operating activities of $44.0 million for the full year 2020. The
increase was primarily driven by changes in working capital due to
the volatility in the market price of crude oil during 2020
substantially driven by the COVID-19 pandemic.
- Reported adjusted net earnings of $3.8
million, or $0.88 per diluted
common share, for the full year 2021, compared to $12.2 million, or $2.87 per diluted common share, for the full year
2020.
- Produced adjusted cash flow of $25.2
million for the full year 2021, compared to $27.2 million for the full year 2020.
Adjusted net earnings, adjusted earnings per diluted common
share and adjusted cash flow are non-generally accepted accounting
principle ("non-GAAP") financial measures that are defined and
reconciled in the financial tables below.
Additional Key Highlights
- Grew the Company's cash and cash equivalents position to
$97.8 million at December 31, 2021, which represented a 149%
increase from $39.3 million at
December 31, 2020.
- Increased Adams' financial flexibility with liquidity of
$131.7 million at December 31, 2021, including cash and cash
equivalents and $33.9 million
available under the Company's $40.0
million Credit Agreement.
- Adams' crude oil marketing subsidiary, GulfMark Energy, Inc.
("GulfMark"), marketed 91,640 barrels per day ("bpd") of crude oil
during the fourth quarter of 2021, compared to 86,577 bpd during
the fourth quarter of 2020 and 91,941 bpd for the third quarter of
2021. For the full year 2021, GulfMark marketed 89,061 bpd of crude
oil versus 91,957 bpd for the full year 2020.
- The collective fleet of Service Transport Company ("Service
Transport"), Adams' liquid chemicals, pressurized gases, asphalt
and dry bulk transportation subsidiary, traveled 6.79 million miles
during the fourth quarter of 2021, versus 7.48 million miles during
the fourth quarter of 2020 and 6.93 million miles during the third
quarter of 2021. For the full year 2021, Service Transport traveled
27.9 million miles versus 24.24 million miles for the full year
2020.
- Adams' crude oil pipeline and storage segment, which was
established following the purchase of the Victoria Express Pipeline
System ("VEX Pipeline System") in October
2020, further expanded its scope of operations during the
fourth quarter of 2021. Pipeline throughput increased to 9,988 bpd
for the fourth quarter of 2021 from 9,759 bpd for the third quarter
of 2021, and terminalling volumes grew to 10,282 bpd for the fourth
quarter of 2021 from 9,159 bpd for the third quarter of 2021.
- Paid dividends totaling $0.96 per
common share in 2021. The Company has consistently paid a dividend
since 1994.
- Remained solidly positioned with 259,489 barrels of crude oil
inventory at December 31, 2021
compared to 421,759 barrels at December 31,
2020.
- Ended 2021 with a combined owned or leased fleet across
GulfMark and Service Transport of 524 tractors and 1,119 trailers.
Through its continued targeted efforts to maintain a modernized
fleet, Adams' average life of its tractor fleet was 3.0 years at
December 31, 2021 compared to 2.7
years at December 31, 2020.
Kevin J. Roycraft, Adams' Chief
Executive Officer, commented, "We were pleased with the operating
performance of our segments during 2021. All three businesses
benefited from an improved macro-economic environment and our
continued execution of targeted growth opportunities. We were
especially pleased with our success in the fourth quarter as
evidenced by our significant increase in revenue, earnings and cash
flow from the third quarter of 2021. We carried that momentum
into 2022 and look forward to executing on additional initiatives
designed to drive long-term benefit for our
shareholders."
Capital Investments and Dividends
During the fourth quarter of 2021, the Company spent capital of
$2.5 million for tractors, trailers
and various equipment. In addition, Adams paid dividends of
$1.0 million ($0.24 per common share).
For the full year 2021, Adams spent capital of $12.4 million for the purchase of 44 tractors, 54
trailers and other various
equipment.
As previously announced on February 18,
2022, the Company's Board of Directors declared a quarterly
cash dividend for the fourth quarter of 2021 in the amount of
$0.24 per common share, payable on
March 18, 2022 to shareholders of
record as of March 4, 2022.
Outlook
Mr. Roycraft concluded, "Our focus for 2022 is to continue to
expand and enhance the quality of the service offerings we provide
for our customers. Our plans are multi-faceted in nature and span
all of our business units. At GulfMark, we remain squarely focused
on driving incremental efficiencies in our fleet operations. We are
executing on a number of identified opportunities in the business
designed to generate additional free cash flow. This complements
our efforts at Service Transport where we continue to enhance our
truck utilization, fleet utilization and driver retention and
recruitment efforts. We also look forward to further expansion of
our VEX Pipeline System through new connection opportunities that
drive increased pipeline and storage utilization."
"Supporting our expansion efforts is our continued strong
financial position supported by a year-end 2021 cash balance of
$98 million and available borrowing
balance on our credit facility of $34
million, resulting in almost $132
million of liquidity for the Company at the end of last
year. As such, we remain in a great position to continue to
capitalize on both internal and external opportunities that drive
further cash flow generation that supports the long-term needs of
our shareholders."
Use of Non-GAAP Financial Measures
This press release and accompanying schedules includes the
non-GAAP financial measures of adjusted cash flow, adjusted net
earnings and adjusted earnings per common share. The
accompanying schedules provide definitions of these non-GAAP
financial measures and reconciliations to their most directly
comparable financial measures calculated and presented in
accordance with GAAP. Company management believes these
measures are useful indicators of the financial performance of our
business and uses these measurements as aids in monitoring the
Company's ongoing financial performance from quarter to quarter and
year to year on a regular basis and for benchmarking against peer
companies. Our non-GAAP financial measures should not be
considered as alternatives to GAAP measures such as net income,
operating income, net cash flow provided by operating activities,
earnings per share or any other measure of financial performance
calculated and presented in accordance with GAAP. Our
non-GAAP financial measures may not be comparable to similarly
titled measures of other companies because they may not calculate
such measures in the same manner as we do. The non-GAAP
financial measures are defined and reconciled in the financial
tables below.
About Adams Resources & Energy, Inc.
Adams Resources & Energy, Inc. is engaged in the business of
crude oil marketing, transportation, terminalling and storage and
tank truck transportation of liquid chemicals, pressurized gases,
asphalt and dry bulk through its subsidiaries, GulfMark Energy,
Inc., Service Transport Company, Victoria Express Pipeline, LLC and
GulfMark Terminals, LLC. For more information, visit
www.adamsresources.com.
Cautionary Statement Regarding Forward-Looking
Statements
This news release contains forward-looking statements.
Forward-looking statements relate to future events and anticipated
results of operations, business strategies, and other aspects of
our operations or operating results. In many cases you can identify
forward-looking statements by terminology such as "anticipate,"
"intend," "plan," "project," "estimate," "continue," "potential,"
"should," "could," "may," "will," "objective," "guidance,"
"outlook," "effort," "expect," "believe," "predict," "budget,"
"projection," "goal," "forecast," "target" or similar words.
Statements may be forward looking even in the absence of these
particular words. Where, in any forward-looking statement, the
Company expresses an expectation or belief as to future results,
such expectation or belief is expressed in good faith and believed
to have a reasonable basis. Forward-looking statements are subject
to risks and uncertainties that could cause actual results to
differ materially from those expressed or implied in the
forward-looking statements, and any other risk factors included in
Adams' reports filed with the Securities and Exchange
Commission. However, there can be no assurance that such
expectation or belief will result or be achieved. Unless legally
required, Adams undertakes no obligation to update publicly any
forward-looking statements, whether as a result of new information,
future events or otherwise.
Contact
Tracy E. Ohmart
EVP, Chief Financial Officer
tohmart@adamsresources.com
(713) 881-3609
ADAMS RESOURCES
& ENERGY, INC. AND SUBSIDIARIES
|
UNAUDITED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In thousands,
except per share data)
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Revenues:
|
|
|
|
|
|
|
|
Marketing
|
$
619,699
|
|
$
227,880
|
|
$
1,930,042
|
|
$
950,426
|
Transportation
|
24,940
|
|
21,603
|
|
94,498
|
|
71,724
|
Pipeline and
storage
|
149
|
|
272
|
|
664
|
|
272
|
Total
revenues
|
644,788
|
|
249,755
|
|
2,025,204
|
|
1,022,422
|
|
|
|
|
|
|
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
Marketing
|
612,476
|
|
218,233
|
|
1,898,126
|
|
940,031
|
Transportation
|
19,152
|
|
17,710
|
|
75,295
|
|
58,888
|
Pipeline and
storage
|
532
|
|
393
|
|
2,126
|
|
393
|
General and
administrative
|
3,862
|
|
3,254
|
|
13,701
|
|
10,284
|
Depreciation and
amortization
|
5,094
|
|
4,963
|
|
19,797
|
|
18,573
|
Total costs and
expenses
|
641,116
|
|
244,553
|
|
2,009,045
|
|
1,028,169
|
|
|
|
|
|
|
|
|
Operating earnings
(losses)
|
3,672
|
|
5,202
|
|
16,159
|
|
(5,747)
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest
income
|
10
|
|
42
|
|
243
|
|
656
|
Interest
expense
|
(144)
|
|
(156)
|
|
(746)
|
|
(444)
|
Total other
(expense) income, net
|
(134)
|
|
(114)
|
|
(503)
|
|
212
|
|
|
|
|
|
|
|
|
Earnings (losses)
before income taxes
|
3,538
|
|
5,088
|
|
15,656
|
|
(5,535)
|
|
|
|
|
|
|
|
|
Income tax (provision)
benefit
|
(713)
|
|
758
|
|
(3,768)
|
|
6,530
|
|
|
|
|
|
|
|
|
Net
earnings
|
$
2,825
|
|
$
5,846
|
|
$
11,888
|
|
$
995
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
Basic net earnings per
common share
|
$
0.65
|
|
$
1.38
|
|
$
2.78
|
|
$
0.23
|
Diluted net earnings
per common share
|
$
0.64
|
|
$
1.37
|
|
$
2.75
|
|
$
0.23
|
|
|
|
|
|
|
|
|
Dividends per
common share
|
$
0.24
|
|
$
0.24
|
|
$
0.96
|
|
$
0.96
|
ADAMS RESOURCES
& ENERGY, INC. AND SUBSIDIARIES
|
UNAUDITED
CONSOLIDATED BALANCE SHEETS
|
(In
thousands)
|
|
|
December
31,
|
|
2021
|
|
2020
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
97,825
|
|
$
39,293
|
Restricted
cash
|
9,492
|
|
12,772
|
Accounts receivable,
net of allowance for doubtful accounts
|
137,789
|
|
99,799
|
Accounts receivable –
related party
|
2
|
|
—
|
Inventory
|
18,942
|
|
19,336
|
Derivative
assets
|
347
|
|
61
|
Income tax
receivable
|
6,424
|
|
13,288
|
Prepayments and other
current assets
|
2,389
|
|
2,964
|
Total current
assets
|
273,210
|
|
187,513
|
|
|
|
|
Property and
equipment, net
|
88,036
|
|
94,134
|
Operating lease
right-of-use assets, net
|
7,113
|
|
8,051
|
Intangible assets,
net
|
3,317
|
|
4,106
|
Other
assets
|
3,027
|
|
2,383
|
Total
assets
|
$
374,703
|
|
$
296,187
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
168,224
|
|
$
85,991
|
Derivative
liabilities
|
324
|
|
52
|
Current portion of
finance lease obligations
|
3,663
|
|
4,112
|
Current portion of
operating lease liabilities
|
2,178
|
|
2,050
|
Other current
liabilities
|
11,622
|
|
22,343
|
Total current
liabilities
|
186,011
|
|
114,548
|
Other long-term
liabilities:
|
|
|
|
Asset retirement
obligations
|
2,376
|
|
2,308
|
Finance lease
obligations
|
9,672
|
|
11,507
|
Operating lease
liabilities
|
4,938
|
|
6,000
|
Deferred taxes and
other liabilities
|
11,320
|
|
12,732
|
Total
liabilities
|
214,317
|
|
147,095
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
Shareholders'
equity
|
160,386
|
|
149,092
|
Total
liabilities and shareholders' equity
|
$
374,703
|
|
$
296,187
|
ADAMS RESOURCES
& ENERGY, INC. AND SUBSIDIARIES
|
UNAUDITED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In
thousands)
|
|
|
Year
Ended
|
|
December
31,
|
|
2021
|
|
2020
|
Operating
activities:
|
|
|
|
Net
earnings
|
$
11,888
|
|
$
995
|
Adjustments to
reconcile net earnings to net cash provided by (used in) operating
activities:
|
|
|
|
Depreciation and
amortization
|
19,797
|
|
18,573
|
Gains on sales
of property
|
(733)
|
|
(1,859)
|
Provision for
doubtful accounts
|
(6)
|
|
(27)
|
Stock-based
compensation expense
|
854
|
|
643
|
Deferred income
taxes
|
(1,401)
|
|
6,389
|
Net change in
fair value contracts
|
(14)
|
|
(9)
|
Changes in assets
and liabilities:
|
|
|
|
Accounts
receivable
|
(37,984)
|
|
(5,162)
|
Accounts
receivable/payable, affiliates
|
(2)
|
|
(5)
|
Inventories
|
394
|
|
4,751
|
Income tax
receivable
|
6,864
|
|
(10,719)
|
Prepayments and other
current assets
|
575
|
|
(1,401)
|
Accounts
payable
|
82,170
|
|
(61,116)
|
Accrued
liabilities
|
(692)
|
|
5,052
|
Other
|
(684)
|
|
(104)
|
Net cash
provided by (used in) operating
activities
|
81,026
|
|
(43,999)
|
|
|
|
|
Investing
activities:
|
|
|
|
Property and equipment
additions
|
(12,382)
|
|
(5,008)
|
Acquisitions
|
—
|
|
(20,200)
|
Proceeds from property
sales
|
2,286
|
|
4,515
|
Insurance and state
collateral refunds
|
—
|
|
1,030
|
Net cash
used in investing activities
|
(10,096)
|
|
(19,663)
|
|
|
|
|
Financing
activities:
|
|
|
|
Borrowings under Credit
Agreement
|
8,000
|
|
—
|
Repayments under Credit
Agreement
|
(8,000)
|
|
—
|
Principal repayments of
finance lease obligations
|
(4,367)
|
|
(2,336)
|
Payment for financed
portion of VEX acquisition
|
(10,000)
|
|
—
|
Net proceeds from sale
of equity
|
2,830
|
|
—
|
Payment of contingent
consideration liability
|
—
|
|
(111)
|
Dividends paid on
common stock
|
(4,141)
|
|
(4,081)
|
Net cash
used in financing activities
|
(15,678)
|
|
(6,528)
|
|
|
|
|
Increase
(Decrease) in cash and cash equivalents, including restricted
cash
|
55,252
|
|
(70,190)
|
Cash and cash
equivalents, including restricted cash, at beginning of
period
|
52,065
|
|
122,255
|
Cash and cash
equivalents, including restricted cash, at end of
period
|
$
107,317
|
|
$
52,065
|
ADAMS RESOURCES
& ENERGY, INC. AND SUBSIDIARIES
|
NON-GAAP
RECONCILIATIONS
|
(In thousands,
except per share data)
|
|
|
Three
Months
|
|
|
|
|
|
|
|
|
|
Ended
|
|
Three Months
Ended
|
|
Year
Ended
|
|
September
30,
|
|
December
31,
|
|
December
31,
|
|
2021
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Reconciliation of
Adjusted Cash Flow to
|
|
|
|
|
|
|
|
|
|
Net
Earnings:
|
|
|
|
|
|
|
|
|
|
Net earnings
|
$
1,546
|
|
$
2,825
|
|
$
5,846
|
|
$
11,888
|
|
$
995
|
Add
(subtract):
|
|
|
|
|
|
|
|
|
|
Income tax
provision (benefit)
|
614
|
|
713
|
|
(758)
|
|
3,768
|
|
(6,530)
|
Depreciation and
amortization
|
4,849
|
|
5,094
|
|
4,963
|
|
19,797
|
|
18,573
|
Gains on sales
of property
|
(267)
|
|
(201)
|
|
(874)
|
|
(733)
|
|
(1,859)
|
Stock-based
compensation expense
|
224
|
|
213
|
|
190
|
|
854
|
|
643
|
Inventory
liquidation gains
|
—
|
|
(62)
|
|
(3,229)
|
|
(10,344)
|
|
—
|
Inventory
valuation losses
|
311
|
|
—
|
|
—
|
|
—
|
|
14,967
|
Costs of
voluntary early retirement program
|
—
|
|
—
|
|
—
|
|
—
|
|
431
|
Net change in
fair value contracts
|
(7)
|
|
18
|
|
(6)
|
|
(14)
|
|
(9)
|
Adjusted cash
flow
|
$
7,270
|
|
$
8,600
|
|
$
6,132
|
|
$
25,216
|
|
$
27,211
|
|
|
Three
Months
|
|
|
|
|
|
|
|
|
|
Ended
|
|
Three Months
Ended
|
|
Year
Ended
|
|
September
30,
|
|
December
31,
|
|
December
31,
|
|
2021
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Adjusted net
earnings and earnings
|
|
|
|
|
|
|
|
|
|
per common share
(Non-GAAP):
|
|
|
|
|
|
|
|
|
|
Net earnings
|
$
1,546
|
|
$
2,825
|
|
$
5,846
|
|
$
11,888
|
|
$
995
|
Add
(subtract):
|
|
|
|
|
|
|
|
|
|
Gains on sales
of property
|
(267)
|
|
(201)
|
|
(874)
|
|
(733)
|
|
(1,859)
|
Stock-based
compensation expense
|
224
|
|
213
|
|
190
|
|
854
|
|
643
|
Net change in
fair value contracts
|
(7)
|
|
18
|
|
(6)
|
|
(14)
|
|
(9)
|
Inventory
liquidation gains
|
—
|
|
(62)
|
|
(3,229)
|
|
(10,344)
|
|
—
|
Inventory
valuation losses
|
311
|
|
—
|
|
—
|
|
—
|
|
14,967
|
Costs of
voluntary early retirement program
|
—
|
|
—
|
|
—
|
|
—
|
|
431
|
Tax effect of
adjustments to earnings
|
(55)
|
|
7
|
|
823
|
|
2,149
|
|
(2,976)
|
Adjusted
net earnings
|
$
1,752
|
|
$
2,800
|
|
$
2,750
|
|
$
3,800
|
|
$
12,192
|
Adjusted earnings per
common share
|
$
0.41
|
|
$
0.64
|
|
$
0.65
|
|
$
0.88
|
|
$
2.87
|
ADAMS RESOURCES
& ENERGY, INC. AND SUBSIDIARIES
|
NON-GAAP
RECONCILIATIONS
|
(In
thousands)
|
|
|
|
Three
Months
|
|
|
|
|
|
|
|
|
|
|
Ended
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
September
30,
|
|
December
31,
|
|
December
31,
|
|
|
2021
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Reconciliation of
Adjusted Cash Flow to
|
|
|
|
|
|
|
|
|
|
|
Net Cash Provided by
(Used in)
|
|
|
|
|
|
|
|
|
|
|
Operating
Activities:
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
(used in) operating activities
|
|
$
12,125
|
|
$
16,794
|
|
$
6,091
|
|
$
81,026
|
|
$
(43,999)
|
Add
(subtract):
|
|
|
|
|
|
|
|
|
|
|
Income tax
provision (benefit)
|
|
614
|
|
713
|
|
(758)
|
|
3,768
|
|
(6,530)
|
Deferred income
taxes
|
|
28
|
|
(263)
|
|
(7,892)
|
|
1,401
|
|
(6,389)
|
Provision for
doubtful accounts
|
|
1
|
|
3
|
|
—
|
|
6
|
|
27
|
Inventory
liquidation gains
|
|
—
|
|
(62)
|
|
(3,229)
|
|
(10,344)
|
|
—
|
Inventory
valuation losses
|
|
311
|
|
—
|
|
—
|
|
—
|
|
14,967
|
Costs of
voluntary early retirement program
|
|
—
|
|
—
|
|
—
|
|
—
|
|
431
|
Changes in assets
and liabilities
|
|
(5,809)
|
|
(8,585)
|
|
11,920
|
|
(50,641)
|
|
68,704
|
Adjusted
cash flow
|
|
$
7,270
|
|
$
8,600
|
|
$
6,132
|
|
$
25,216
|
|
$
27,211
|
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SOURCE Adams Resources & Energy, Inc.