HOUSTON, March 12, 2018 /PRNewswire/ -- Adams
Resources & Energy, Inc. (NYSE MKT: AE) ("Adams" or the
"Company") today announced its financial results for the three
months and year ended December 31,
2017.
The Company reported net earnings of $3.7
million, or $0.88 per common
share, on revenues of $408.5 million
for the fourth quarter of 2017, compared to a net loss of
$0.2 million, or ($0.04) per common share, on revenues of
$299.0 million for the fourth quarter
of 2016. On an adjusted basis, net earnings were $1.3 million, or $0.31 per common share, for the fourth quarter of
2017, compared to a net loss of $1.6
million, or ($0.38) per common
share, for the fourth quarter of 2016. For the full year
2017, the Company had a net loss of $0.5
million, or ($0.11) per common
share, on revenues of $1.3 billion,
compared to net earnings of $2.5
million, or $0.60 per common
share, on revenues of $1.1 billion
for the full year 2016. On an adjusted basis, net earnings
were $1.3 million, or $0.31 per common share for the full year 2017,
compared to a net loss of $3.0
million, or ($0.70) per common
share for the full year 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.
Fourth Quarter 2017 Highlights:
- Gross revenues of approximately $408.5
million for the fourth quarter of 2017 compared to
$299.0 million for the fourth quarter
of 2016, and gross revenues of approximately $1.3 billion for the full year 2017 compared to
$1.1 billion for the full year
2016
- Our crude oil marketing subsidiary, GulfMark Energy, Inc.,
marketed approximately 72,387 barrels per day ("bpd") of crude oil
during the fourth quarter of 2017, compared to 66,469 bpd of crude
oil during the fourth quarter of 2016
- Cash and cash equivalents increased 25 percent from
December 31, 2016 levels of
$87 million to over $109 million at December
31, 2017
- $167 million of liquidity
($109.4 million of cash and cash
equivalents and $57.8 million of
undrawn letter of credit facility) at December 31, 2017
- Generated positive adjusted cash flow of $3.2 million for the fourth quarter of 2017
compared to positive adjusted cash flow of $2.3 million for the fourth quarter of 2016
- Approximately 198,011 barrels of crude oil inventory at
December 31, 2017
- Dividend of $0.22 per share for
the fourth quarter of 2017
- No short or long term debt at December
31, 2017
"During the fourth quarter of 2017, we generated positive
financial and operating results from our marketing segment as our
average daily barrels marketed and transported increased
approximately nine percent from levels in the fourth quarter of
2016 to 72,387 barrels per day," said Townes Pressler, Executive Chairman.
"Volumes increased as our customers' completion crews converted
drilled but uncompleted wells to production primarily in the Gulf
Coast region. Service Transport began to gain positive
momentum as our revenue per mile increased 15 percent from the
fourth quarter of 2016 to the fourth quarter of 2017. As
demand remains robust, we are making good progress in improving
trucking rates with our customers at Service Transport.
During 2018, we plan to remain focused on enhancing margins, with
disciplined investing and upgrading our fleet of tractors with the
latest technologically advanced safety equipment, as well as
actively pursuing development opportunities that complement our two
primary business segments," continued Pressler.
Capital Investments and Dividends
During the fourth quarter of 2017, the Company recorded
approximately $0.2 million of capital
spending and paid dividends of $0.9
million ($0.22 per
share). For the full year 2017, the Company recorded
approximately $4.5 million of capital
and paid dividends of $3.7 million
($0.88 per share). Of the
$4.5 million of capital recorded
during 2017, $1.8 million was
associated with capital leases of tractors for our marketing
segment and $1.8 million was
associated with drilling and completions activity associated with
our upstream subsidiary. The Company exited the upstream
business through a chapter 11 bankruptcy sale process in which
substantially all of the assets were sold during 2017. The
upstream subsidiary obtained a confirmed plan from the Delaware bankruptcy court in December 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. 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
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In thousands,
except per share data)
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Revenues:
|
|
|
|
|
|
|
|
Marketing
|
$
|
395,255
|
|
|
$
|
285,148
|
|
|
$
|
1,267,275
|
|
|
$
|
1,043,775
|
|
Transportation
|
13,205
|
|
|
12,838
|
|
|
53,358
|
|
|
52,355
|
|
Oil and natural
gas
|
—
|
|
|
983
|
|
|
1,427
|
|
|
3,410
|
|
Total
revenues
|
408,460
|
|
|
298,969
|
|
|
1,322,060
|
|
|
1,099,540
|
|
|
|
|
|
|
|
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
Marketing
|
387,196
|
|
|
278,875
|
|
|
1,247,763
|
|
|
1,016,733
|
|
Transportation
|
11,857
|
|
|
11,617
|
|
|
48,538
|
|
|
45,154
|
|
Oil and natural
gas
|
—
|
|
|
(337)
|
|
|
948
|
|
|
2,084
|
|
Oil and natural gas
property impairments
|
—
|
|
|
313
|
|
|
3
|
|
|
313
|
|
General and
administrative
|
2,823
|
|
|
4,158
|
|
|
9,707
|
|
|
10,410
|
|
Depreciation,
depletion and amortization
|
2,827
|
|
|
4,407
|
|
|
13,599
|
|
|
18,792
|
|
Total costs
and expenses
|
404,703
|
|
|
299,033
|
|
|
1,320,558
|
|
|
1,093,486
|
|
|
|
|
|
|
|
|
|
Operating earnings
(losses)
|
3,757
|
|
|
(64)
|
|
|
1,502
|
|
|
6,054
|
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
Loss on
deconsolidation of subsidiary
|
—
|
|
|
—
|
|
|
(3,505)
|
|
|
—
|
|
Impairment of
investment in unconsolidated affiliate
|
—
|
|
|
—
|
|
|
(2,500)
|
|
|
—
|
|
Interest
income
|
314
|
|
|
138
|
|
|
1,103
|
|
|
582
|
|
Interest
expense
|
(17)
|
|
|
(2)
|
|
|
(27)
|
|
|
(2)
|
|
Total other
income (expense), net
|
297
|
|
|
136
|
|
|
(4,929)
|
|
|
580
|
|
|
|
|
|
|
|
|
|
(Losses) earnings
before income taxes and investment in unconsolidated
affiliate
|
4,054
|
|
|
72
|
|
|
(3,427)
|
|
|
6,634
|
|
|
|
|
|
|
|
|
|
Income tax benefit
(provision)
|
(361)
|
|
|
(240)
|
|
|
2,945
|
|
|
(2,691)
|
|
|
|
|
|
|
|
|
|
Earnings (losses)
from continuing operations
|
3,693
|
|
|
(168)
|
|
|
(482)
|
|
|
3,943
|
|
|
|
|
|
|
|
|
|
Losses from
investment in unconsolidated affiliate, net of tax
benefit
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,430)
|
|
|
|
|
|
|
|
|
|
Net (losses)
earnings
|
$
|
3,693
|
|
|
$
|
(168)
|
|
|
$
|
(482)
|
|
|
$
|
2,513
|
|
|
|
|
|
|
|
|
|
Earnings (losses)
per share:
|
|
|
|
|
|
|
|
From continuing
operations
|
$
|
0.88
|
|
|
$
|
(0.04)
|
|
|
$
|
(0.11)
|
|
|
$
|
0.94
|
|
From investment in
unconsolidated affiliate
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.34)
|
|
Basic and diluted net
(losses) earnings per common share
|
$
|
0.88
|
|
|
$
|
(0.04)
|
|
|
$
|
(0.11)
|
|
|
$
|
0.60
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding
|
4,218
|
|
|
4,218
|
|
|
4,218
|
|
|
4,218
|
|
|
|
|
|
|
|
|
|
Dividends per
common share
|
$
|
0.22
|
|
|
$
|
0.22
|
|
|
$
|
0.88
|
|
|
$
|
0.88
|
|
|
|
|
|
|
|
|
|
ADAMS RESOURCES
& ENERGY, INC. AND SUBSIDIARIES
|
UNAUDITED
CONSOLIDATED BALANCE SHEETS
|
(In thousands,
except share data)
|
|
|
December
31,
|
|
2017
|
|
2016
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
109,393
|
|
|
$
|
87,342
|
|
Accounts receivable,
net of allowance for doubtful accounts
|
121,353
|
|
|
87,162
|
|
Inventory
|
12,192
|
|
|
13,070
|
|
Derivative
assets
|
166
|
|
|
112
|
|
Income tax
receivable
|
1,317
|
|
|
2,735
|
|
Prepayments and other
current assets
|
1,264
|
|
|
2,097
|
|
Total current
assets
|
245,685
|
|
|
192,518
|
|
|
|
|
|
Property and
equipment, net
|
29,362
|
|
|
46,325
|
|
Investments in
unconsolidated affiliates
|
425
|
|
|
2,500
|
|
Cash deposits and
other
|
7,232
|
|
|
5,529
|
|
Total
assets
|
$
|
282,704
|
|
|
$
|
246,872
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
|
124,706
|
|
|
$
|
79,897
|
|
Accounts payable –
related party
|
5
|
|
|
53
|
|
Derivative
liabilities
|
145
|
|
|
64
|
|
Current portion of
capital lease obligations
|
338
|
|
|
—
|
|
Other current
liabilities
|
4,404
|
|
|
6,060
|
|
Total current
liabilities
|
129,598
|
|
|
86,074
|
|
Other long-term
liabilities:
|
|
|
|
Asset retirement
obligations
|
1,273
|
|
|
2,329
|
|
Capital lease
obligations
|
1,351
|
|
|
—
|
|
Deferred taxes and
other liabilities
|
3,363
|
|
|
7,157
|
|
Total
liabilities
|
135,585
|
|
|
95,560
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
Shareholders'
equity
|
147,119
|
|
|
151,312
|
|
Total liabilities and
shareholders' equity
|
$
|
282,704
|
|
|
$
|
246,872
|
|
ADAMS RESOURCES
& ENERGY, INC. AND SUBSIDIARIES
|
UNAUDITED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In
thousands)
|
|
|
Year
Ended
|
|
December
31,
|
|
2017
|
|
2016
|
Operating
activities:
|
|
|
|
Net (losses)
earnings
|
$
|
(482)
|
|
|
$
|
2,513
|
|
Adjustments to
reconcile net (losses) earnings to net cash
|
|
|
|
provided by operating
activities:
|
|
|
|
Depreciation,
depletion and amortization
|
13,599
|
|
|
18,792
|
|
Gains on sale
of property
|
(594)
|
|
|
(1,966)
|
|
Impairment of
oil and natural gas properties
|
3
|
|
|
313
|
|
Provision for
doubtful accounts
|
78
|
|
|
19
|
|
Deferred
income taxes
|
(3,840)
|
|
|
(857)
|
|
Net change in
fair value contracts
|
27
|
|
|
(243)
|
|
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
|
(34,935)
|
|
|
(15,368)
|
|
Accounts
receivable/payable, affiliates
|
271
|
|
|
—
|
|
Inventories
|
878
|
|
|
(5,399)
|
|
Income tax
receivable
|
1,418
|
|
|
(148)
|
|
Prepayments and other
current assets
|
831
|
|
|
492
|
|
Accounts
payable
|
44,790
|
|
|
6,984
|
|
Accrued
liabilities
|
(991)
|
|
|
52
|
|
Other
|
(962)
|
|
|
(440)
|
|
Net cash provided by
operating activities
|
26,096
|
|
|
6,944
|
|
|
|
|
|
Investing
activities:
|
|
|
|
Property and equipment
additions
|
(2,644)
|
|
|
(8,484)
|
|
Proceeds from property
sales
|
720
|
|
|
3,706
|
|
Proceeds from sales of
AREC assets
|
2,775
|
|
|
—
|
|
Investments in
unconsolidated affiliates
|
—
|
|
|
(4,700)
|
|
Insurance and state
collateral (deposits) refunds
|
(1,067)
|
|
|
1,710
|
|
Net cash used in
investing activities
|
(216)
|
|
|
(7,768)
|
|
|
|
|
|
Financing
activities:
|
|
|
|
Principal repayments
of capital lease obligations
|
(118)
|
|
|
—
|
|
Dividends paid on
common stock
|
(3,711)
|
|
|
(3,711)
|
|
Net cash used in
financing activities
|
(3,829)
|
|
|
(3,711)
|
|
|
|
|
|
Increase
(decrease) in cash and cash equivalents
|
22,051
|
|
|
(4,535)
|
|
Cash and cash
equivalents at beginning of period
|
87,342
|
|
|
91,877
|
|
Cash and cash
equivalents at end of period
|
$
|
109,393
|
|
|
$
|
87,342
|
|
ADAMS RESOURCES
& ENERGY, INC. AND SUBSIDIARIES
|
NON-GAAP
RECONCILIATIONS
|
(In thousands,
except per share data
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Reconciliation of
Adjusted Cash Flow to Net (Losses) Earnings:
|
|
|
|
|
|
|
Net (losses)
earnings
|
$
|
3,693
|
|
|
$
|
(168)
|
|
|
$
|
(482)
|
|
|
$
|
2,513
|
|
Income tax benefit
(provision)
|
361
|
|
|
240
|
|
|
(2,945)
|
|
|
1,921
|
|
Depreciation,
depletion and amortization
|
2,827
|
|
|
4,407
|
|
|
13,599
|
|
|
18,792
|
|
Gains on sale of
property
|
(247)
|
|
|
(18)
|
|
|
(594)
|
|
|
(1,966)
|
|
Impairment of oil and
natural gas properties
|
—
|
|
|
226
|
|
|
3
|
|
|
313
|
|
Loss on
deconsolidation of subsidiary
|
—
|
|
|
—
|
|
|
3,505
|
|
|
—
|
|
Impairment of
investments in unconsolidated affiliates
|
—
|
|
|
—
|
|
|
2,500
|
|
|
1,732
|
|
Inventory liquidation
gains
|
(3,481)
|
|
|
(2,464)
|
|
|
(3,372)
|
|
|
(8,243)
|
|
Net change in fair
value contracts
|
(21)
|
|
|
62
|
|
|
27
|
|
|
(243)
|
|
Voluntary early
retirement program costs
|
—
|
|
|
—
|
|
|
1,435
|
|
|
—
|
|
Legal and other
accrual reversals
|
—
|
|
|
—
|
|
|
(840)
|
|
|
—
|
|
Insurance deductible
related to hurricane
|
100
|
|
|
—
|
|
|
100
|
|
|
—
|
|
Adjusted cash
flow
|
$
|
3,232
|
|
|
$
|
2,285
|
|
|
$
|
12,936
|
|
|
$
|
14,819
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Adjusted net
(losses) earnings and (losses) earnings per common share
(Non-GAAP):
|
|
|
|
|
|
|
|
Net (losses)
earnings
|
$
|
3,693
|
|
|
$
|
(168)
|
|
|
$
|
(482)
|
|
|
$
|
2,513
|
|
Add
(subtract):
|
|
|
|
|
|
|
|
Loss on
deconsolidation of subsidiary
|
—
|
|
|
—
|
|
|
3,505
|
|
|
—
|
|
Impairment of
investments in unconsolidated affiliates
|
—
|
|
|
—
|
|
|
2,500
|
|
|
1,732
|
|
Gains on sale of
property
|
(247)
|
|
|
(18)
|
|
|
(594)
|
|
|
(1,966)
|
|
Impairment of oil and
natural gas properties
|
—
|
|
|
226
|
|
|
3
|
|
|
313
|
|
Voluntary early
retirement program costs
|
—
|
|
|
—
|
|
|
1,435
|
|
|
—
|
|
Net change in fair
value contracts
|
(21)
|
|
|
62
|
|
|
27
|
|
|
(243)
|
|
Inventory liquidation
gains
|
(3,481)
|
|
|
(2,464)
|
|
|
(3,372)
|
|
|
(8,243)
|
|
Legal and other
accrual reversals
|
—
|
|
|
—
|
|
|
(840)
|
|
|
—
|
|
Insurance deductible
related to hurricane
|
100
|
|
|
—
|
|
|
100
|
|
|
—
|
|
Tax effect of
adjustments to (losses) earnings
|
1,277
|
|
|
768
|
|
|
(967)
|
|
|
2,942
|
|
Adjusted net
(losses) earnings
|
$
|
1,321
|
|
|
$
|
(1,594)
|
|
|
$
|
1,315
|
|
|
$
|
(2,952)
|
|
|
|
|
|
|
|
|
|
Adjusted (losses)
earnings per common share
|
$
|
0.31
|
|
|
$
|
(0.38)
|
|
|
$
|
0.31
|
|
|
$
|
(0.70)
|
|
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SOURCE Adams Resources & Energy, Inc.