HOUSTON, Nov. 13 /PRNewswire-FirstCall/ -- Adams Resources & Energy, Inc., (AMEX:AE), announced today its annual cash dividend in the amount of $.50 per common share, payable on December 16, 2008 to shareholders of record as of December 2, 2008. The amount of the dividend is increased by 6 percent over last year. Chairman K. S. "Bud" Adams, Jr., said the Company's strong liquidity and future outlook led to the dividend increase. The Company has been in a position to increase its annual dividend in each of the past six years.
The Company also announced a third quarter 2008 unaudited net loss of $6,276,000 or $1.49 per common share. Revenues for the quarter totaled $1,288,322,000. Current results compare to unaudited third quarter 2007 net earnings of $2,855,000 or $.68 per common share. For the nine months ended September 30, 2008 net earnings were $760,000 or $.18 per share on revenues totaling $3,534,662,000. Net cash provided by operating activities was $28,799,000 for the nine-month period ended September 30, 2008.
Chairman K. S. "Bud" Adams, Jr. attributed the third quarter 2008 earnings decline to the falling commodity price for crude oil. During the third quarter of 2008 the Company recognized an $11.6 million pre-tax inventory liquidation and valuation loss on the market value of crude oil quantities held in inventory. The inventory related loss for the quarter reflected a non-cash charge to earnings and did not impact net cash provided by operating activities. Mr. Adams added that the diversified nature of the Company's lines of business and its avoidance of bank debt provide a degree of stability during uncertain periods.
A summary of operating results is as follows: Third Quarter
2008 2007 Operating Earnings (Loss)
Marketing $(10,179,000) $5,095,000
Transportation 1,615,000 1,536,000
Oil and gas 558,000 (511,000)
Administrative expenses (2,038,000) (2,307,000)
(10,044,000) 3,813,000
Interest income, net 217,000 431,000
Income tax benefit (provision) 3,551,000 (1,389,000) Net earnings (loss) $(6,276,000) $2,855,000
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 (q) demand for chemical based trucking operations and (r) 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.
CONTACT:
Rick Abshire (713) 881-3609 UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except per share data) Nine Months Ended Three Months Ended
September September
2008 2007 2008 2007 Revenues $3,534,662 $1,756,409 $1,288,322 $700,295 Costs, expenses and other (3,533,829)(1,732,983)(1,298,149) (696,051)
Income tax benefit
(provision) (73) (8,373) 3,551 (1,389) Net earnings (loss) $760 $15,053 $(6,276) $2,855 Earnings per share
Basic and diluted net
earnings (loss) per
common share $.18 $3.57 $(1.49) $.68 Dividends per common share $- $- $- $- UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands) September 30, December 31,
2008 2007 ASSETS
Cash $39,045 $23,697
Other current assets 263,450 288,196
Total current assets 302,495 311,893 Net property & equipment 40,878 39,698
Other assets 4,083 5,484
$347,456 $357,075 LIABILITIES AND EQUITY
Total current liabilities $253,496 $261,321
Deferred taxes and other 3,758 6,312
Shareholders' equity 90,202 89,442
$347,456 $357,075
DATASOURCE: Adams Resources & Energy, Inc.
CONTACT: Rick Abshire of Adams Resources & Energy, Inc., +1-713-881-3609
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