Adams Resources Announces First Quarter Earnings
HOUSTON, May 13 /PRNewswire-FirstCall/ -- Adams Resources & Energy, Inc. (AMEX:AE) announced first quarter 2005 unaudited net earnings of $2,851,000 or
$.68 per common share on revenues of $527,808,000. This compares to unaudited
first quarter 2004 net earnings of $938,000 or $.22 per common share.
Chairman and Chief Executive Officer, K.S. "Bud" Adams, Jr., said the earnings
improvement was a result of rising crude oil prices during this year's first
quarter. This event allowed the Company to liquidate lower priced crude oil
inventory into a relatively higher priced market. Such opportunity provided a
pre-tax gain of $2,144,000 during the first quarter of 2005. Additionally,
during the current quarter, the Company sold its interest in twelve producing
oil and gas wells for a pre-tax gain of $601,000. This sale was completed due
to attractive pricing and to eliminate the liability for plugging and
abandonment costs on twenty-five currently non-producing wells on the property. The Company held a less than three percent working interest in each of such
wells. Further, within the oil and gas operation, the Company initiated the
drilling of eight wells during the first quarter of 2005, of which five proved
to be productive. Mr. Adams also added that demand for the Company's common
carrier trucking service has remained strong during 2005.
A summary of operating results is as follows: First Quarter
2005 2004 Operating Earnings
Marketing $ 3,851,000 $ 2,544,000
Transportation 1,169,000 415,000
Oil and gas 1,515,000 487,000
General & administrative expenses (2,152,000) (1,603,000)
Interest, net 1,000 (24,000)
Income tax provision (1,533,000) (628,000) Earnings from continuing operations 2,851,000 1,191,000 Loss from discontinued operations, net of tax --- (253,000) Net earnings $ 2,851,000 $ 938,000 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, (b) fluctuations in hydrocarbon prices and
margins, (c) variations between crude oil and natural gas 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, and (i) the availability of capital (j) changes in
regulations, (k) results of current items of litigation, (l) uninsured items of
litigation or losses, (m) uncertainty in reserve estimates and cash flows, (n)
ability to replace oil and gas reserves, (o) security issues related to drivers
and terminal facilities, (p) commodity price volatility and (q) successful
completion of drilling activity. These and other risks are described in the
Company's reports that are on file with the Securities and Exchange Commission.
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands) March 31, March 31,
2005 2004 Revenues $527,808 $ 461,315 Costs, expenses and other 523,424 (459,496)
Income tax provision (1,533) (628) Earnings from continuing operations 2,851 1,191
Loss from discontinued operations, net of tax --- (253)
Net earnings $ 2,851 $ 938 Earnings (loss) per share:
From continuing operations $ .68 $ .28
From discontinued operations --- (.06) Basic and diluted net earnings
per common share $ .68 $ .22 Dividends per common share $ --- $ --- UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands) March 31, December 31,
2005 2004 ASSETS
Cash $ 23,066 $ 19,942
Other current assets 198,423 189,397
Total current assets 221,489 209,339 Net property & equipment 30,993 29,076
Other assets 438 439
$ 252,920 $ 238,854 LIABILITIES AND EQUITY
Total current liabilities $ 184,565 $ 173,550
Long-term debt 11,475 11,475
Deferred taxes and other 4,454 4,254
Shareholders' equity 52,426 49,575
$ 252,920 $ 238,854 CONTACT: Rick Abshire (713) 881-3609
DATASOURCE: Adams Resources & Energy, Inc.
CONTACT: Rick Abshire of Adams Resources & Energy, Inc., +1-713-881-3609
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