HOUSTON, March 31 /PRNewswire-FirstCall/ -- Adams Resources & Energy, Inc., (AMEX:AE), announced unaudited fourth quarter 2005 net earnings of $7,607,000 or $1.80 per common share on revenues totaling $657,988,000. This compares to unaudited fourth quarter 2004 net earnings of $2,200,000 or $.52 per share on revenues of $562,146,000. Net earnings for 2005 totaled $17,641,000 or $4.18 per share. Revenues for 2005 totaled $2,364,833,000.
A summary of operating results follows: Fourth Quarter
2005 2004
Operating earnings
Marketing $10,462,000 $3,868,000
Transportation 1,489,000 1,971,000
Oil and gas 2,174,000 193,000
General & administrative (3,174,000) (2,293,000)
Interest, net 24,000 (6,000)
Income tax (provision) (3,961,000) (1,553,000) Earnings from continuing operations 7,014,000 2,180,000 Income from discontinued operations 593,000 20,000 Net earnings $7,607,000 $2,200,000
Chairman K.S. "Bud" Adams, Jr., attributed a substantial portion of the fourth quarter 2005 earnings increase to certain non-recurring items within the Company's marketing segment. During the current quarter, the Company reduced expenses by an after tax amount totaling $2,210,000 from the reversal of previously recorded accrual items following the final "true-up" of the accounting for such items. Further, the Company collected and recognized as a reduction in after-tax expenses some $1,011,000 of previously disputed and fully reserved items. In addition, income from discontinued operations included a net after tax gain of $601,000 following the sale of certain oil and gas properties. The Company does not anticipate the recurrence of similar such items in 2006. The Company also benefited from improved earnings in its oil and gas segment during the fourth quarter of 2005 due to increased prices for crude oil and natural gas.
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 STATEMENTS OF OPERATIONS
(In thousands, except per share data) Year Ended Three Months Ended
December 31, December 31,
2005 2004 2005 2004 Revenues $2,364,833 $2,069,087 $657,988 $562,146 Costs, expenses and other (2,339,481) (2,055,353) (647,013) (558,413)
Income tax (provision) (8,583) (4,996) (3,961) (1,553)
Earnings from continuing
operations 16,769 8,738 7,014 2,180
Income (loss) from
discontinued operations,
net of tax 872 (130) 593 20 Net earnings $17,641 $8,608 $7,607 $2,200
Earnings (loss) per share
From continuing operations $3.97 $2.07 $1.66 $.51
From discontinued operations .21 (.03) .14 .01 Basic and diluted net
earnings per Common share $4.18 $2.04 $1.80 $.52 Dividends per common share $.37 $.30 $.37 $.30 UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands) December 31, December 31,
2005 2004
ASSETS
Cash $ 18,817 $ 19,942
Other current assets 251,633 189,397
Total current assets 270,450 209,339 Net property & equipment 39,896 29,076
Other assets 2,316 439
$312,662 $238,854
LIABILITIES AND EQUITY
Total current liabilities $231,129 $173,550
Long-term debt 11,475 11,475
Deferred taxes and other 4,402 4,254
Shareholders' equity 65,656 49,575
$312,662 $238,854 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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