Adams Resources Announces Second Quarter Earnings
HOUSTON, Aug. 11 /PRNewswire-FirstCall/ -- Adams Resources & Energy, Inc.,
(AMEX:AE), announced second quarter 2004 unaudited net earnings of $1,118,000
or $.27 per common share. Revenues for the quarter totaled $495,616,000. Current earnings compared to unaudited second quarter 2003 net earnings of
$1,430,000 or $.34 per common share. For the six-month period ended June 30,
2004, net earnings were $2,056,000 compared to $1,778,000 for the six-month
period in 2003.
Chairman, K. S. "Bud" Adams, Jr. attributed the reduced quarterly earnings to
weaker margins within the Company's crude oil marketing business. Although
world crude oil prices were generally increasing during the quarter, the
Company experienced the unusual situation of narrowing margins due to adequate
domestic crude oil supplies. Mr. Adams noted that reduced marketing margins
were substantially offset by strong results from the Company's transportation
sector. The Company's chemical transportation business is presently operating
at or near full capacity and this strong demand condition is expected to
continue through at least year-end.
A summary of operating results is as follows:
Second Quarter
2004 2003
Operating Earnings
Marketing $ 1,193,000 $ 3,284,000
Transportation 1,692,000 631,000
Oil and gas 661,000 984,000
General & administrative expenses (1,851,000) (1,566,000)
Interest, net (10,000) 86,000
Income tax provision (567,000) (1,334,000) Earnings from continuing operations 1,118,000 2,085,000 Loss from discontinued operations, net of tax --- (655,000) Net earnings $ 1,118,000 $ 1,430,000 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, among others (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, except per share data) Six Months Ended Three Months Ended
June 30, June 30,
2004 2003 2004 2003 Revenues $ 956,931 $ 900,257 $ 495,616 $ 426,967 Costs, expenses and other (953,427) (892,820) (493,931) (423,548)
Income tax provision (1,195) (2,859) (567) (1,334) Earnings from continuing
operations 2,309 4,578 1,118 2,085
Loss for discontinued
operation, net of tax (253) (2,708) --- (655)
Cumulative effect of
accounting change,
net of tax --- (92) --- ---
Net earnings $ 2,056 $ 1,778 $ 1,118 $ 1,430 Earnings (loss) per share
From continuing
operations $ .55 $ 1.08 $ .27 $ .49
From discontinued
operation (.06) (.64) --- (.15)
Cumulative effect of
accounting change --- (.02) --- ---
Basic and diluted
net earnings per
common share $ .49 $ .42 $ .27 $ .34 Dividends per common share $ --- $ --- $ --- $ ---
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands)
June 30, December 31,
2004 2003
ASSETS
Cash $ 17,562 $ 28,342
Other current assets 173,016 157,309
Total current assets 190,578 185,651 Net property & equipment 24,943 24,407
Other assets 182 203
$ 215,703 $ 210,261 LIABILITIES AND EQUITY
Total current liabilities $ 156,023 $ 152,665
Long-term debt 11,475 11,475
Deferred taxes and other 3,917 3,889
Shareholders' equity 44,288 42,232
$ 215,703 $ 210,261 CONTACT:
Jim Smith (713)881-3662
DATASOURCE: Adams Resources & Energy, Inc.
CONTACT: Jim Smith of Adams Resources & Energy, Inc., +1-713-881-3662
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