HOUSTON, Nov. 8, 2016 /PRNewswire/ -- Adams Resources
& Energy, Inc. (NYSE MKT:AE) announced a third quarter 2016
unaudited net loss of $2,153,000 or
$.51 per common share. Revenues for
the quarter totaled $256,877,000. The
current period net loss compares to an unaudited third quarter 2015
net loss of $308,000 or $.07 per common share. For the nine months
ended September 30, 2016, net
earnings were $2,681,000 or
$.64 per common share.
Thomas S. Smith, President and
Chief Executive Officer, attributed the 2016 earnings decline to an
investment impairment provision recorded in the third quarter 2016,
as well as, reduced volumes and unit margins within the Company's
crude oil marketing business. The current commodity price for
crude has suppressed drilling and production in the Company's area
of interest and competition has stiffened for the fewer barrels
available. Additionally, the Company's common carrier
chemical transportation business has been negatively impacted by a
rate environment that deteriorated markedly versus the prior year
quarter and by lower volume with certain dedicated customers.
Mr. Smith added the Company's present emphasis involves aggressive
sales efforts and cost control pending a rebound in the market
conditions for the Company's products and services. By
preserving liquidity and operating as a low-cost provider, the
Company will be well positioned when the general economic
conditions improve.
Based on recent evaluations, the Company elected to fully impair
its investment in Bencap LLC. Given lower than projected
revenue growth and operating losses, the Company is unlikely to
loan any additional funds under the terms of the agreement causing
forfeiture of the investment. The Company recognized a net
loss of $1,430,000 from its
investment in Bencap for the nine months ended September 30, 2016. This loss included a
pre-tax impairment charge of $1,732,000 and pre-tax losses from the investment
of $468,000.
A summary of operating results is as follows:
|
Third
Quarter
|
|
2016
|
|
2015
|
|
|
|
|
Operating Earnings
(Expense)
|
|
|
|
Marketing
|
$
1,265,000
|
|
$
3,715,000
|
Transportation
|
(430,000)
|
|
918,000
|
Oil and natural
gas
|
(543,000)
|
|
(2,909,000)
|
Administrative
expenses
|
(2,114,000)
|
|
(2,101,000)
|
|
(1,822,000)
|
|
(377,000)
|
Interest income,
net
|
245,000
|
|
63,000
|
Equity investment, net
of tax
|
(1,170,000)
|
|
-
|
Income tax
benefit
|
594,000
|
|
6,000
|
|
|
|
|
Net loss
|
$
(2,153,000)
|
|
$
(308,000)
|
The Company's Board of Directors also declared a quarterly cash
dividend in the amount of $.22
(twenty-two cents) per common share,
payable on December 19, 2016 to
shareholders of record as of December 5, 2016.
The Company's quarterly report on Form 10-Q for the period ended
September 30, 2016 will be filed with
the Securities and Exchange Commission on November 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 OPERATIONS (In thousands, except per share
data)
|
|
|
|
|
|
Nine Months
Ended
September
30,
|
|
Three Months
Ended
September
30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
Revenues
|
$
800,571
|
|
$
1,596,024
|
|
$
256,877
|
|
$
439,893
|
|
|
|
|
|
|
|
|
Costs, expenses and
other
|
(795,439)
|
|
(1,584,331)
|
|
(259,624)
|
|
(440,207)
|
Income tax
(provision) benefit
|
(2,451)
|
|
(4,564)
|
|
594
|
|
6
|
|
|
|
|
|
|
|
|
Net earnings
(loss)
|
$
2,681
|
|
$
7,129
|
|
$
(2,153)
|
|
$
(308)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
common share:
|
|
|
|
|
|
|
|
Basic and diluted net earnings (loss)
|
|
|
|
|
|
|
|
per common
share
|
$
.64
|
|
$
1.69
|
|
$
(.51)
|
|
$
(.07)
|
|
|
|
|
|
|
|
|
Dividends per common
share
|
$
.66
|
|
$
.66
|
|
$
.22
|
|
$
.22
|
|
|
|
|
|
|
|
|
|
UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEET
|
(In
thousands)
|
|
|
September
30,
|
|
December
31,
|
|
2016
|
|
2015
|
|
|
|
|
ASSETS
|
|
|
|
Cash
|
$
78,485
|
|
$
91,877
|
Other current
assets
|
96,413
|
|
84,660
|
Total current
assets
|
174,898
|
|
176,537
|
|
|
|
|
Net property &
equipment
|
49,516
|
|
59,715
|
Deposits and other
assets
|
8,497
|
|
6,963
|
|
$
232,911
|
|
$
243,215
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Total current
liabilities
|
$
71,303
|
|
$
80,197
|
Other long-term
liabilities
|
9,201
|
|
10,508
|
Shareholders'
equity
|
152,407
|
|
152,510
|
|
$
232,911
|
|
$
243,215
|
John Riney (713)
881-3662
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/adams-resources-announces-dividend-and-third-quarter-2016-earnings-300359406.html
SOURCE Adams Resources & Energy, Inc.