HOUSTON, May 6, 2016 /PRNewswire/ -- Adams Resources
& Energy, Inc., (NYSE MKT: AE), announced first quarter 2016
unaudited net earnings of $1,430,000
or $.34 per common share on revenues
of $250,531,000. This compares
to first quarter 2015 unaudited net earnings of $3,097,000 or $.73
per common share. Net cash utilized in operating activities
totaled $2,358,000 for the
three-month period ended March 31,
2016 as the Company expended cash for strategic crude oil
inventory purchases in order to take advantage of the difference
between current and forward month commodity futures prices.
Thomas S. Smith, President and
Chief Executive Officer, attributed the current earnings reduction
to sharp competition for available crude oil supplies within the
Company's areas of operation. Lower crude oil prices
curtailed active drilling by suppliers which, in turn, reduced
available supplies. The Company is experiencing both reduced
volumes and unit margins as a result. The Company also
saw reduced activity within its common carrier chemical
transportation business consistent with a slowing U.S.
economy. Mr. Smith added that the Company seeks to be a low
cost competitor and this, combined with strong liquidity, will
leave the Company in favorable position when market conditions
rebound.
A summary of operating results follows:
|
First
Quarter
|
|
2016
|
|
2015
|
|
Operating Earnings
(Expense)
|
|
|
|
|
Crude oil
marketing
|
$ 4,648,000
|
|
$ 8,848,000
|
|
Transportation
|
173,000
|
|
1,125,000
|
|
Oil and gas
|
(282,000)
|
|
(1,725,000)
|
|
Administrative
expenses
|
(2,200,000)
|
|
(3,331,000)
|
|
2,339,000
|
|
4,917,000
|
|
Interest income
(expense), net
|
103,000
|
|
74,000
|
|
Equity investments,
net of tax
|
(124,000)
|
|
-
|
|
Income tax
(provision)
|
(888,000)
|
|
(1,894,000)
|
|
Net
earnings
|
$ 1,430,000
|
|
$ 3,097,000
|
The Company also announced that its Board of Directors declared
a quarterly cash dividend in the amount of $.22 (twenty-two
cents) per common share, payable on June 17, 2016 to shareholders of record as of
June 3, 2016.
The Company's quarterly report on Form 10-Q for the period ended
March 31, 2016 will be filed with the
Securities and Exchange Commission on May 9,
2016 and will be available on the Company's website at
"adamsresources.com."
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.
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENT OF EARNINGS
|
|
(In thousands,
except per share data)
|
|
Three Months
Ended
|
|
March 31,
|
|
March 31,
|
|
2016
|
|
2015
|
|
|
|
|
|
Revenues
|
$ 250,531
|
|
$ 555,573
|
|
|
|
|
|
Costs, expenses and
other
|
(248,213)
|
|
(550,582)
|
|
Income tax
(provision)
|
(888)
|
|
(1,894)
|
|
|
|
|
|
Net
earnings
|
$ 1,430
|
|
$ 3,097
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
Basic and
diluted net earnings per common share
|
$
.34
|
|
$
.73
|
|
|
|
|
|
Dividends per
common share
|
$
.22
|
|
$
.22
|
|
UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEET
|
|
(In
thousands)
|
|
March 31,
|
|
December
31,
|
|
2016
|
|
2015
|
|
|
|
|
|
ASSETS
|
|
|
|
|
Cash and marketable
securities
|
$ 83,099
|
|
$ 91,877
|
|
Other current
assets
|
89,321
|
|
84,660
|
|
Total current
assets
|
172,420
|
|
176,537
|
|
|
|
|
|
Net property &
equipment
|
56,624
|
|
59,715
|
|
Deposits and other
assets
|
8,871
|
|
6,963
|
|
$ 237,915
|
|
$ 243,215
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
Total current
liabilities
|
$ 75,797
|
|
$ 80,197
|
|
Deferred tax and
other liabilities
|
9,106
|
|
10,508
|
|
Shareholders'
equity
|
153,012
|
|
152,510
|
|
$ 237,915
|
|
$ 243,215
|
Rick Abshire
(713)
881-3609
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/adams-resources-announces-dividend-and-first-quarter-2016-earnings-300264593.html
SOURCE Adams Resources & Energy, Inc.