HOUSTON, Nov. 9, 2017 /PRNewswire/ -- Adams Resources
& Energy, Inc. (NYSE MKT: AE) ("Adams" or the "Company") today
announced its financial results for the three months ended
September 30, 2017.
The Company reported a net loss of $3.0
million, or ($0.72) per common
share, on revenues of $295.3 million
for the third quarter of 2017, compared to a net loss of
$2.2 million, or ($0.51) per common share, on revenues of
$256.9 million for the third quarter
of 2016. On an adjusted basis, net losses were $0.2 million, or ($0.04) per common share, for the third quarter
of 2017, compared to a net loss of $1.3
million, or ($0.31) per common
share, for the third quarter of 2016.
Adjusted net (losses) earnings, adjusted (losses) earnings per
common share and adjusted cash flow are non-generally accepted
accounting principle ("non-GAAP") financial measures that are
defined and reconciled in the financial tables below.
Third Quarter 2017 Highlights:
- Gross revenues of approximately $295.3
million for the third quarter of 2017 compared to
$256.9 million for the third quarter
of 2016
- Our crude oil marketing subsidiary, GulfMark Energy, Inc.,
marketed approximately 64,104 barrels per day ("bpd") of crude oil
during the third quarter of 2017, compared to 61,200 bpd of crude
oil during the third quarter of 2016
- Approximately 435,000 barrels of crude oil inventory as of
September 30, 2017
- $159.4 million of liquidity
($99.4 million of cash and cash
equivalents and $60 million of
undrawn letter of credit facility) as of September 30, 2017
- Generated adjusted cash flow of $2.3
million for the third quarter of 2017 compared to
$2.4 million for the third quarter of
2016
- Dividend of $0.22 per share for
the third quarter of 2017
- No short or long term debt as of September 30, 2017
"We achieved a lot during the third quarter of 2017, but our
financial results were negatively impacted by disruptions caused by
Hurricane Harvey and also by various one-time charges.
GulfMark has seen a recovery of volumes after Harvey-related
downtime and from several newly completed wells coming online
recently in the Gulf Coast region. We are encouraged by the
demand at Service Transport Company, and we are looking forward to
onboarding this month with our new President of Service Transport
Company to capitalize on the opportunity seen in that sector over
the coming months," said Townes
Pressler, Executive Chairman.
Capital Investments and Dividends
During the third quarter of 2017, the Company recorded
approximately $2.1 million of capital
and paid dividends of $0.9 million
($0.22 per share). The majority
of the recorded capital relates to a 5-year capital lease of
$1.8 million for new tractors at our
GulfMark Energy subsidiary.
The Company's Board of Directors also declared a quarterly cash
dividend for the third quarter of 2017 in the amount of
$0.22 per common share, payable on
December 19, 2017 to shareholders of
record as of December 5, 2017.
Use of Non-GAAP Financial Measures
This press release
and accompanying schedules includes the non-GAAP financial measures
of adjusted cash flow, adjusted net (losses) earnings and
adjusted (losses) earnings per common share. The accompanying
schedules provide definitions of these non-GAAP financial measures
and reconciliations to their most directly comparable financial
measures calculated and presented in accordance with GAAP.
Company management uses these measurements as aids in monitoring
the Company's ongoing financial performance from quarter to quarter
and year to year on a regular basis and for benchmarking against
peer companies. Our non-GAAP financial measures should not be
considered as alternatives to GAAP measures such as net income,
operating income, net cash flow provided by operating activities or
any other measure of financial performance calculated and presented
in accordance with GAAP. Our non-GAAP financial measures may
not be comparable to similarly-titled measures of other companies
because they may not calculate such measures in the same manner as
we do.
Adams Resources & Energy, Inc. is engaged in the
business of crude oil marketing, transportation and storage, tank
truck transportation of liquid chemicals and dry bulk and ISO tank
container storage and transportation. For more information,
visit www.adamsresources.com.
Cautionary Statement Regarding Forward-Looking
Statements
This news release contains forward-looking
statements. Forward-looking statements relate to future events and
anticipated results of operations, business strategies, and other
aspects of our operations or operating results. In many cases you
can identify forward-looking statements by terminology such as
"anticipate," "intend," "plan," "project," "estimate," "continue,"
"potential," "should," "could," "may," "will," "objective,"
"guidance," "outlook," "effort," "expect," "believe," "predict,"
"budget," "projection," "goal," "forecast," "target" or similar
words. Statements may be forward looking even in the absence of
these particular words. Where, in any forward-looking statement,
the Company expresses an expectation or belief as to future
results, such expectation or belief is expressed in good faith and
believed to have a reasonable basis. However, there can be no
assurance that such expectation or belief will result or be
achieved. The actual results of operations can and will be affected
by a variety of risks and other matters including, but not limited
to, changes in commodity prices; changes in expected levels of
natural gas and oil reserves or production; operating hazards,
drilling risks, unsuccessful exploratory activities; limited access
to capital or significantly higher cost of capital related to
illiquidity or uncertainty in the domestic or international
financial markets; international monetary conditions; unexpected
cost increases; potential liability for remedial actions under
existing or future environmental regulations; potential liability
resulting from pending or future litigation; and general domestic
and international economic and political conditions; as well as
changes in tax, environmental and other laws applicable to our
business. Other factors that could cause actual results to differ
materially from those described in the forward-looking statements
include other economic, business, competitive and/or regulatory
factors affecting our business generally as set forth in our
filings with the Securities and Exchange Commission. Unless legally
required, Adams undertakes no obligation to update publicly any
forward-looking statements, whether as a result of new information,
future events or otherwise.
Contact: Josh C. Anders
EVP, Chief Financial Officer
janders@adamsresources.com
(281) 974-9442
ADAMS RESOURCES
& ENERGY, INC. AND SUBSIDIARIES
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In thousands,
except per share data)
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Revenues:
|
|
|
|
|
|
|
|
Marketing
|
$
|
282,229
|
|
|
$
|
243,704
|
|
|
$
|
872,020
|
|
|
$
|
758,627
|
|
Transportation
|
13,082
|
|
|
12,310
|
|
|
40,153
|
|
|
39,517
|
|
Oil and natural
gas
|
—
|
|
|
863
|
|
|
1,427
|
|
|
2,427
|
|
Total
revenues
|
295,311
|
|
|
256,877
|
|
|
913,600
|
|
|
800,571
|
|
|
|
|
|
|
|
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
Marketing
|
277,906
|
|
|
240,021
|
|
|
860,567
|
|
|
737,858
|
|
Transportation
|
12,668
|
|
|
11,039
|
|
|
36,681
|
|
|
33,537
|
|
Oil and natural
gas
|
—
|
|
|
1,011
|
|
|
951
|
|
|
2,421
|
|
General and
administrative
|
2,787
|
|
|
2,114
|
|
|
6,884
|
|
|
6,252
|
|
Depreciation,
depletion and amortization
|
3,240
|
|
|
4,514
|
|
|
10,772
|
|
|
14,385
|
|
Total
costs and expenses
|
296,601
|
|
|
258,699
|
|
|
915,855
|
|
|
794,453
|
|
|
|
|
|
|
|
|
|
Operating earnings
(losses)
|
(1,290)
|
|
|
(1,822)
|
|
|
(2,255)
|
|
|
6,118
|
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
Loss on
deconsolidation of subsidiary
|
(1,870)
|
|
|
—
|
|
|
(3,505)
|
|
|
—
|
|
Impairment of
investments in unconsolidated affiliates
|
(2,500)
|
|
|
(1,732)
|
|
|
(2,500)
|
|
|
(1,732)
|
|
Losses from equity
investments
|
—
|
|
|
(68)
|
|
|
—
|
|
|
(468)
|
|
Interest
income
|
370
|
|
|
245
|
|
|
789
|
|
|
444
|
|
Interest
expense
|
(8)
|
|
|
—
|
|
|
(10)
|
|
|
—
|
|
Total other
income (expense), net
|
(4,008)
|
|
|
(1,555)
|
|
|
(5,226)
|
|
|
(1,756)
|
|
|
|
|
|
|
|
|
|
(Losses) earnings
before income taxes
|
(5,298)
|
|
|
(3,377)
|
|
|
(7,481)
|
|
|
4,362
|
|
Income tax benefit
(provision)
|
2,265
|
|
|
1,224
|
|
|
3,306
|
|
|
(1,681)
|
|
|
|
|
|
|
|
|
|
Net (losses)
earnings
|
$
|
(3,033)
|
|
|
$
|
(2,153)
|
|
|
$
|
(4,175)
|
|
|
$
|
2,681
|
|
|
|
|
|
|
|
|
|
Earnings (losses)
per share:
|
|
|
|
|
|
|
|
Basic and diluted net
(losses) earnings
|
|
|
|
|
|
|
|
per common
share
|
$
|
(0.72)
|
|
|
$
|
(0.51)
|
|
|
$
|
(0.99)
|
|
|
$
|
0.64
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common
|
|
|
|
|
|
|
|
shares
outstanding
|
4,218
|
|
|
4,218
|
|
|
4,218
|
|
|
4,218
|
|
|
|
|
|
|
|
|
|
Dividends per
common share
|
$
|
0.22
|
|
|
$
|
0.22
|
|
|
$
|
0.66
|
|
|
$
|
0.66
|
|
|
|
|
|
|
|
|
|
ADAMS RESOURCES
& ENERGY, INC. AND SUBSIDIARIES
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(In thousands,
except share data)
|
|
|
September
30,
|
|
December
31,
|
|
2017
|
|
2016
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
99,449
|
|
|
$
|
87,342
|
|
Accounts receivable,
net of allowance for doubtful accounts
|
81,277
|
|
|
87,162
|
|
Inventory
|
22,398
|
|
|
13,070
|
|
Derivative
assets
|
—
|
|
|
112
|
|
Income tax
receivable
|
4,147
|
|
|
2,735
|
|
Prepayments and other
current assets
|
1,168
|
|
|
2,097
|
|
Total current
assets
|
208,439
|
|
|
192,518
|
|
|
|
|
|
Property and
equipment, net
|
31,958
|
|
|
46,325
|
|
Investments in
unconsolidated affiliates
|
3,200
|
|
|
2,500
|
|
Cash deposits and
other
|
4,932
|
|
|
5,529
|
|
Total
assets
|
$
|
248,529
|
|
|
$
|
246,872
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
|
89,339
|
|
|
$
|
79,897
|
|
Accounts payable –
related party
|
—
|
|
|
53
|
|
Derivative
liabilities
|
—
|
|
|
64
|
|
Current portion of
capital lease obligation
|
306
|
|
|
—
|
|
Other current
liabilities
|
5,860
|
|
|
6,060
|
|
Total current
liabilities
|
95,505
|
|
|
86,074
|
|
Other long-term
liabilities:
|
|
|
|
Asset retirement
obligations
|
1,263
|
|
|
2,329
|
|
Capital lease
obligations
|
1,465
|
|
|
—
|
|
Deferred taxes and
other liabilities
|
5,943
|
|
|
7,157
|
|
Total
liabilities
|
104,176
|
|
|
95,560
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
Shareholders'
equity
|
144,353
|
|
|
151,312
|
|
Total liabilities and
shareholders' equity
|
$
|
248,529
|
|
|
$
|
246,872
|
|
ADAMS RESOURCES
& ENERGY, INC. AND SUBSIDIARIES
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In
thousands)
|
|
|
Nine Months
Ended
|
|
September
30,
|
|
2017
|
|
2016
|
Operating
activities:
|
|
|
|
Net (losses)
earnings
|
$
|
(4,175)
|
|
|
$
|
2,681
|
|
Adjustments to
reconcile net (losses) earnings to net cash
|
|
|
|
provided by
(used in) operating activities:
|
|
|
|
Depreciation, depletion and amortization
|
10,772
|
|
|
14,385
|
|
Gains
on sale of property
|
(347)
|
|
|
(1,948)
|
|
Impairment of oil and natural gas properties
|
3
|
|
|
87
|
|
Provision for doubtful accounts
|
(9)
|
|
|
19
|
|
Deferred income taxes
|
(1,198)
|
|
|
(1,170)
|
|
Net
change in fair value contracts
|
48
|
|
|
(305)
|
|
Losses
from equity investment
|
—
|
|
|
468
|
|
Impairment of investments in unconsolidated affiliates
|
2,500
|
|
|
1,732
|
|
Loss on
deconsolidation of subsidiary
|
3,505
|
|
|
—
|
|
Changes in assets
and liabilities:
|
|
|
|
Accounts
receivable
|
5,228
|
|
|
(1,767)
|
|
Accounts
receivable/payable, affiliates
|
266
|
|
|
—
|
|
Inventories
|
(9,328)
|
|
|
(8,395)
|
|
Income tax
receivable
|
(1,412)
|
|
|
113
|
|
Prepayments and other
current assets
|
927
|
|
|
(1,570)
|
|
Accounts
payable
|
9,482
|
|
|
(8,795)
|
|
Accrued
liabilities
|
465
|
|
|
1,378
|
|
Other
|
(240)
|
|
|
(252)
|
|
Net cash provided by
(used in) operating activities
|
16,487
|
|
|
(3,339)
|
|
|
|
|
|
Investing
activities:
|
|
|
|
Property and equipment
additions
|
(2,465)
|
|
|
(7,186)
|
|
Proceeds from property
sales
|
430
|
|
|
3,536
|
|
Investments in
unconsolidated affiliates
|
—
|
|
|
(4,700)
|
|
Insurance and state
collateral (deposits) refunds
|
439
|
|
|
1,081
|
|
Net cash used in
investing activities
|
(1,596)
|
|
|
(7,269)
|
|
|
|
|
|
Financing
activities:
|
|
|
|
Dividends paid on
common stock
|
(2,784)
|
|
|
(2,784)
|
|
Net cash used in
financing activities
|
(2,784)
|
|
|
(2,784)
|
|
|
|
|
|
Increase
(decrease) in cash and cash equivalents
|
12,107
|
|
|
(13,392)
|
|
Cash and cash
equivalents at beginning of period
|
87,342
|
|
|
91,877
|
|
Cash and cash
equivalents at end of period
|
$
|
99,449
|
|
|
$
|
78,485
|
|
ADAMS RESOURCES
& ENERGY, INC. AND SUBSIDIARIES
|
NON-GAAP
RECONCILIATIONS
|
(In thousands,
except per share data)
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Reconciliation of
Adjusted Cash Flow to Net (Losses) Earnings:
|
|
|
|
|
|
|
|
Net (losses)
earnings
|
$
|
(3,033)
|
|
|
$
|
(2,153)
|
|
|
$
|
(4,175)
|
|
|
$
|
2,681
|
|
Income tax benefit
(provision)
|
(2,265)
|
|
|
(1,224)
|
|
|
(3,306)
|
|
|
1,681
|
|
Depreciation,
depletion and amortization
|
3,240
|
|
|
4,514
|
|
|
10,772
|
|
|
14,385
|
|
Gains on sale of
property
|
(218)
|
|
|
(673)
|
|
|
(347)
|
|
|
(1,948)
|
|
Impairment of oil and
natural gas properties
|
—
|
|
|
—
|
|
|
3
|
|
|
87
|
|
Loss on
deconsolidation of subsidiary
|
1,870
|
|
|
—
|
|
|
3,505
|
|
|
—
|
|
Impairment of
investments in unconsolidated affiliates
|
2,500
|
|
|
1,732
|
|
|
2,500
|
|
|
1,732
|
|
Inventory liquidation
gains
|
(1,954)
|
|
|
—
|
|
|
—
|
|
|
(5,779)
|
|
Inventory valuation
losses
|
—
|
|
|
432
|
|
|
109
|
|
|
—
|
|
Net change in fair
value contracts
|
748
|
|
|
(181)
|
|
|
48
|
|
|
(305)
|
|
Voluntary early
retirement program costs
|
1,435
|
|
|
—
|
|
|
1,435
|
|
|
—
|
|
Legal and other
accrual reversals
|
—
|
|
|
—
|
|
|
(840)
|
|
|
—
|
|
Adjusted cash
flow
|
$
|
2,323
|
|
|
$
|
2,447
|
|
|
$
|
9,704
|
|
|
$
|
12,534
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Adjusted net
(losses) earnings and (losses) earnings per common share
(Non-GAAP):
|
|
|
|
|
|
|
|
Net (losses)
earnings
|
$
|
(3,033)
|
|
|
$
|
(2,153)
|
|
|
$
|
(4,175)
|
|
|
$
|
2,681
|
|
Add
(subtract):
|
|
|
|
|
|
|
|
Loss on
deconsolidation of subsidiary
|
1,870
|
|
|
—
|
|
|
3,505
|
|
|
—
|
|
Impairment of
investments in unconsolidated affiliates
|
2,500
|
|
|
1,732
|
|
|
2,500
|
|
|
1,732
|
|
Gains on sale of
property
|
(218)
|
|
|
(673)
|
|
|
(347)
|
|
|
(1,948)
|
|
Impairment of oil and
natural gas properties
|
—
|
|
|
—
|
|
|
3
|
|
|
87
|
|
Costs of voluntary
early retirement program
|
1,435
|
|
|
—
|
|
|
1,435
|
|
|
—
|
|
Derivative valuation
gains
|
748
|
|
|
(181)
|
|
|
48
|
|
|
(305)
|
|
Inventory liquidation
gains
|
(1,954)
|
|
|
—
|
|
|
—
|
|
|
(5,779)
|
|
Inventory valuation
losses
|
—
|
|
|
432
|
|
|
109
|
|
|
—
|
|
Tax effect of
adjustments to (losses) earnings
|
(1,533)
|
|
|
(459)
|
|
|
(2,539)
|
|
|
2,175
|
|
Adjusted net
(losses) earnings
|
$
|
(185)
|
|
|
$
|
(1,302)
|
|
|
$
|
539
|
|
|
$
|
(1,357)
|
|
|
|
|
|
|
|
|
|
Adjusted (losses)
earnings per common share
|
$
|
(0.04)
|
|
|
$
|
(0.31)
|
|
|
$
|
0.13
|
|
|
$
|
(0.32)
|
|
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SOURCE Adams Resources & Energy, Inc.