HOUSTON, March 15, 2017 /PRNewswire/ -- Adams
Resources & Energy, Inc., (NYSE MKT: AE) ("Adams" or the
"Company") announced an unaudited fourth quarter 2016 net loss of
$0.2 million or $0.04 per common share on revenues of
$299.0 million. This compares
to an unaudited net loss of $8.4
million or $1.99 per common
share on revenues of $348.3 million
for the fourth quarter of 2015. For the full year 2016, the
Company had net income of $2.5
million or $0.60 per share on
revenues of $1.1 billion.
2016 Highlights:
- Gross revenues of over $1 billion
for the full year ended December 31,
2016
- Adams Resources & Energy, Inc's crude oil and
transportation subsidiary, GulfMark Energy, Inc., marketed
approximately 73,000 barrels of oil per day during 2016
- 2016 marked the beginning of our effort to diversify offerings
at the transportation subsidiary by trucking dry bulk
materials
- Generated positive free cash flow (cash flow from operations
before changes in working capital less capital expenditures) during
2016
- Dividend of $0.88 per share for
the year ended December 31, 2016
- No short or long term debt as of December 31, 2016
- Over $147 million of liquidity
($87 million of cash and cash
equivalents and $60 million of
undrawn letter of credit facility) at year-end 2016
"During 2016, Adams took significant steps to broaden our
service offerings including beginning to diversify into dry bulk
transportation and focusing on gaining access to new areas within
our crude oil marketing and transportation segment. During
2017, we plan to continue to find ways to leverage our existing
businesses and focus on strategic business development
efforts," said Thomas S. Smith, President and Chief Executive
Officer.
During the fourth quarter of 2016, the Company recognized a
$0.2 million pre-tax, non-cash
impairment charge related to non-core acreage. In the fourth
quarter of 2015, as a result of a decline in natural gas and crude
oil prices, the Company recognized a $10.9
million pretax non-cash impairment of oil and gas
properties. The Company's capital structure remains sound and
net cash provided by operating activities before changes in working
capital totaled $20.8 million for the
full year 2016, down from $30.2
million for the year ended December
31, 2015 (see reconciliation table at the end of this press
release). The Company continues to have no bank debt or other
forms of debenture obligations and the cash balance at December 31, 2016 totaled $87.3 million, down from $91.9 million as of December 31, 2015.
Capital Investments and Dividends
During 2016 the Company invested $13.2
million of capital and paid dividends of $3.7 million ($0.88
per share). The Company invested $6.9
million in our truck transportation division, $4.7 million in medical management, $1.3 million in the crude oil marketing segment
and less than $1 million in the
upstream operations of Adams. A substantial portion of the
$6.9 million invested in the truck
transportation business was related to expansion of the Company's
Houston terminal which will allow
for further strategic diversification opportunities within the
segment. Adams currently has no plans to pursue further
investments in medical management services.
Josh C. Anders
(281)
974-9442
UNAUDITED CONDENSED
CONSOLIDATED STATEMENT OF OPERATIONS
|
(In thousands,
except per share data)
|
|
|
Year Ended
|
Three Months
Ended
|
|
December
31,
|
December
31,
|
|
2016
|
2015
|
2016
|
2015
|
|
|
|
|
|
Revenues
|
$
1,099,540
|
$
1,944,279
|
$
298,969
|
$
348,255
|
|
|
|
|
|
Costs, expenses and
other
|
(1,093,173)
|
(1,934,556)
|
(298,807)
|
(351,184)
|
Impairment of oil and
natural gas properties
|
(313)
|
(12,082)
|
(226)
|
(10,891)
|
Interest Income,
net
|
580
|
314
|
136
|
82
|
Income tax
(provision) benefit
|
(2,691)
|
770
|
(240)
|
5,334
|
Earnings (loss) from
continuing operations
|
3,943
|
(1,275)
|
(168)
|
(8,404)
|
Loss from equity
investments, net of tax
|
(1,430)
|
-
|
-
|
-
|
|
|
|
|
|
Net earnings
(loss)
|
$
2,513
|
$
(1,275)
|
$
(168)
|
$
(8,404)
|
Earnings (loss) per
common share:
|
|
|
|
|
From continuing
operations
|
$
.94
|
$
(.30)
|
$
(.04)
|
$
(1.99)
|
From equity
investments
|
(.34)
|
-
|
-
|
-
|
Basic and diluted net
earnings per common
share
|
$
0.60
|
$
(0.30)
|
$
(0.04)
|
$
(1.99)
|
Dividends per common
share
|
$
0.88
|
$
0.88
|
$
0.22
|
$
0.22
|
UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEET
|
(In
thousands)
|
|
December 31,
|
December
31,
|
|
2016
|
2015
|
ASSETS
|
|
|
Cash
|
$
87,342
|
$
91,877
|
Other current
assets
|
105,176
|
84,660
|
Total current
assets
|
192,518
|
176,537
|
|
|
|
Net property &
equipment
|
46,325
|
59,715
|
Deposits and other
assets
|
8,029
|
6,963
|
|
$
246,872
|
$
243,215
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
Total current
liabilities
|
$
86,074
|
$
80,197
|
Other liabilities and
deferred taxes
|
9,486
|
10,508
|
Shareholders'
equity
|
151,312
|
152,510
|
|
$
246,872
|
$
243,215
|
Adams Resources
& Energy, Inc. and Subsidiaries
|
Unaudited
Consolidated Statement of Cash Flows
|
(In
thousands)
|
|
|
|
Year Ended
|
|
2016
|
2015
|
CASH PROVIDED BY
OPERATIONS:
|
|
|
Net earnings
(loss)
|
$
2,513
|
$
(1,275)
|
Adjustments to
reconcile net earnings to net cashfrom operating activities-
|
|
|
Depreciation,
depletion and amortization
|
18,792
|
23,717
|
Property sale (gains)
other
|
(1,966)
|
(535)
|
Dry hole costs
incurred
|
-
|
817
|
Impairment of oil and
natural gas properties
|
313
|
12,082
|
Provision for
doubtful accounts
|
19
|
27
|
Deferred income taxes
(includes equity investments)
|
(857)
|
(4,843)
|
Net change in fair
value contracts
|
(243)
|
188
|
Equity investment
(earnings) losses
|
468
|
-
|
Impairment of equity
investment
|
1,732
|
-
|
Decrease (increase) in
accounts receivable
|
(15,368)
|
72,594
|
Decrease (increase) in
inventories
|
(5,399)
|
5,810
|
Decrease (increase) in
income tax receivable
|
(148)
|
(1,617)
|
Decrease (increase) in
prepayments
|
492
|
8,351
|
Increase (decrease) in
accounts payable
|
6,984
|
(87,404)
|
Increase (decrease) in
accrued and other liabilities
|
52
|
(166)
|
Other changes,
net
|
(440)
|
(2,269)
|
Net cash provided by
operating activities
|
6,944
|
25,477
|
|
|
|
INVESTING
ACTIVITIES:
|
|
|
Property and
equipment additions
|
(8,484)
|
(11,074)
|
Insurance and state
collateral (deposits) refunds
|
1,710
|
283
|
Investments
|
(4,700)
|
-
|
Proceeds from
property sales
|
3,706
|
719
|
Net cash (used in)
investing activities
|
(7,768)
|
(10,072)
|
|
|
|
FINANCING
ACTIVITIES:
|
|
|
Dividend
payments
|
(3,711)
|
(3,712)
|
Net cash (used
in) financing activities
|
(3,711)
|
(3,712)
|
|
|
|
Increase (decrease) in
cash and cash equivalents
|
(4,535)
|
11,693
|
|
|
|
Cash and cash
equivalents at beginning of year
|
91,877
|
80,184
|
|
|
|
Cash and cash
equivalents at end of year
|
$
87,342
|
$
91,877
|
Adams Resources
& Energy, Inc. and Subsidiaries
|
Unaudited
Operating Cash Flow Before Changes in Working Capital
Reconciliation
|
(In
thousands)
|
|
|
|
Year Ended
|
|
2016
|
2015
|
Operating Cash Flow
Before Changes in Working Capital Reconciliation:
|
|
|
Net earnings
(loss)
|
$
2,513
|
$
(1,275)
|
Adjustments to
reconcile net earnings to net cash from operating activities-
|
|
|
Depreciation,
depletion and amortization
|
18,792
|
23,717
|
Property sale (gains)
other
|
(1,966)
|
(535)
|
Dry hole costs
incurred
|
-
|
817
|
Impairment of oil and
natural gas properties
|
313
|
12,082
|
Provision for
doubtful accounts
|
19
|
27
|
Deferred income taxes
(includes equity investments)
|
(857)
|
(4,843)
|
Net change in fair
value contracts
|
(243)
|
188
|
Equity investment
(earnings) losses
|
468
|
-
|
Impairment of equity
investment
|
1,732
|
-
|
Operating Cash Flow
Before Changes in Working Capital
|
$
20,771
|
$
30,178
|
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.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/adams-resources-announces-fourth-quarter-2016-results-300424459.html
SOURCE Adams Resources & Energy, Inc.