Adams Resources Increases Third Quarter 2004 Net Earnings and
Announces a 30% Dividend Increase
HOUSTON, Nov. 10 /PRNewswire-FirstCall/ -- Adams Resources & Energy, Inc.,
(AMEX:AE), announced unaudited third quarter 2004 net earnings of $4,352,000 or
$1.03 per common share on revenues totaling $550,563,000. This compares to
unaudited third quarter 2003 net earnings of $673,000 or $.16 per share. For
the nine months ended September 30, 2004, net earnings were $6,408,000 or $1.52
per share.
A summary of operating results follows:
Third Quarter
2004 2003 Operating earnings (loss)
Marketing $6,147,000 $2,444,000
Transportation 1,609,000 (463,000)
Oil and gas 1,021,000 860,000
General & administrative (2,120,000) (1,640,000)
Interest, net (5,000) 19,000
Income tax provision (2,300,000) (393,000) Earnings from continuing operations 4,352,000 827,000 Earnings (loss) from discontinued
operation, net of tax - (154,000) Net earnings $4,352,000 $673,000
Chairman K.S. "Bud" Adams, Jr., attributed the earnings increase to higher
commodity prices and increased demand within the Company's petrochemical
trucking operation. Increasing crude oil prices during the quarter expanded
margins and enabled the Company to liquidate lower priced inventory into a
rising market. The Company also experienced strong demand for its chemical
transportation services reversing a loss in the prior year to current
profitability.
The Company also announced its Board of Directors has declared an annual cash
dividend in the amount of $.30 per common share, payable on December 15, 2004
to shareholders of record as of December 2, 2004. The amount of the dividend
is increased by 30 percent, or $.07 per share, over last year. Chairman K. S. "Bud" Adams, Jr., said the Company's continued strength and the more favorable
tax laws led to the dividend increase.
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 CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except per share data) Nine Months Ended Three Months Ended
September 30, September 30,
2004 2003 2004 2003 Revenues $1,507,494 $1,299,500 $550,563 $399,243 Costs, expenses and
other 1,497,338 1,290,843 543,911 398,023
Income tax provision 3,495 3,252 2,300 393
Earnings from
continuing operations 6,661 5,405 4,352 827
Income (loss) for
discontinued operation,
net of tax (253) (2,862) - (154)
Cumulative effect of
accounting change,
net of tax - (92) - - Net earnings $6,408 $2,451 $4,352 $673 Earnings (loss) per
share
From continuing
operations $1.58 $1.28 $1.03 $.20
From discontinued
operation (.06) (.68) - (.04)
Cumulative effect of
accounting change - (.02) - -
Basic and diluted net
earnings per common
share $1.52 $.58 $1.03 $.16 Dividends per common
share $- $- $- $- UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands) September 30, December 31,
2004 2003 ASSETS
Cash $21,734 $28,342
Other current assets 179,005 157,309
Total current assets 200,739 185,651 Net property & equipment 25,332 24,407
Other assets 154 203
$226,225 $210,261
LIABILITIES AND EQUITY
Total current liabilities $162,178 $152,665
Long-term debt 11,475 11,475
Deferred taxes and other 3,932 3,889
Shareholders' equity 48,640 42,232
$226,225 $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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