HOUSTON, May 6, 2021 /PRNewswire/ -- Adams Resources &
Energy, Inc. (NYSE AMERICAN: AE) ("Adams" or the "Company") today announced
operational and financial results for the three months ended
March 31, 2021 and declared a quarterly cash dividend of
$0.24 per common share.
- Reported net earnings of $2.8
million, or $0.66 per diluted
common share, on revenues of $325.5
million for the first quarter of 2021, compared to a net
loss of $11.4 million, or a loss of
$2.69 per diluted common share, on
revenues of $353.5 million for the
first quarter of 2020. Negatively impacting the Company's financial
performance for the first quarter of 2021 was the severe winter
storm in Texas during February
that resulted in approximately a week's worth of downtime for
Adams' collective operations.
- Generated net cash provided by operating activities of
$23.0 million for the first quarter
of 2021, compared to net cash used in operating activities of
$23.8 million for the first quarter
of 2020. The increase was primarily driven by changes in working
capital due to an increase in the market price of crude oil.
- Reported an adjusted net loss of $2.6
million, or a loss of $0.61
per diluted common share, for the first quarter of 2021, compared
to adjusted net earnings of $7.7
million, or $1.81 per diluted
common share, for the first quarter of 2020.
- Adjusted cash flow for the first quarter of 2021 was
$2.0 million versus $8.9 million for the first quarter of 2020.
Adjusted net (losses) earnings, adjusted (losses) earnings
per diluted 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.
Additional Highlights for Q1 2021
- Maintained strong financial flexibility at March 31, 2021, including $59.0 million in cash and cash equivalents. This
represented a 50% increase in cash and cash equivalents from
$39.3 million at December 31, 2020.
- Adam's crude oil marketing subsidiary, GulfMark Energy, Inc.
("GulfMark"), marketed approximately 82,889 barrels per day ("bpd")
of crude oil during the first quarter of 2021, compared to 109,253
bpd during the first quarter of 2020 and 86,577 bpd during the
fourth quarter of 2020. GulfMark held 469,226 barrels of crude oil
inventory at March 31, 2021, compared
to 421,759 barrels at December 31,
2020.
- The collective fleet of Service Transport Company ("Service
Transport"), Adams' liquid
chemicals, pressurized gases, asphalt and dry bulk transportation
subsidiary, traveled approximately 6.93 million miles during the
first quarter of 2021, compared to 5.24 million miles during the
first quarter of 2020 and 7.48 million miles during the fourth
quarter of 2020. Significantly contributing to the year-over-year
increase in miles traveled for the first quarter was the mid-2020
recent purchase of assets from CTL Transportation, which grew the
Company's collective fleet of tractors and trailers by more than
50% and expanded its footprint of operations into important markets
in Florida, Georgia, Illinois, Missouri and Ohio.
Kevin J. Roycraft, Adams' Chief Executive Officer, commented,
"While unexpected downtime from the severe winter storm in February
had a negative impact, we were pleased with our overall financial
performance for the first quarter of 2021. During the period,
all of our business segments benefited from an improving economic
backdrop, and we look forward to further recovery for the remainder
of 2021 and into next year. Supporting this view is the
continued rollout of COVID-19 vaccines that will allow the global
population to return to the more normal activities they were
accustomed to prior to the pandemic."
Capital Investments and Dividends
During the first quarter of 2021, the Company spent capital of
$0.2 million for computer and other
field equipment. In addition, Adams paid dividends of $1.0 million, or $0.24 per common
share.
Adams' Board of Directors has
declared a quarterly cash dividend for the first quarter of 2021 of
$0.24 per common share, payable on
June 18, 2021, to shareholders of
record as of June 4, 2021.
Adams' has consistently paid a
dividend since 1994.
New Credit Facility
On May 4, 2021, the Company
entered into a $40 million credit
facility with Wells Fargo Bank, NA. The credit facility is
for three years and provides enhanced financial flexibility for
Adams' as it potentially executes
on additional opportunities to prudently expand its business.
As part of the $40 million borrowing
base, the credit facility allows the Company to issue Letters of
Credits totaling up to $20 million, a
portion of which is expected to be immediately utilized to release
approximately $5 million of currently
restricted cash into the Company's operating account for use in the
business as necessary.
Outlook
Mr. Roycraft concluded, "As we look to the remainder of 2021, we
believe our collective business is well positioned for continued
success. Supporting our view are the two strategic M&A
transactions we executed in 2020 that significantly enhanced and
expanded our service offerings and footprint of operations.
"While our recent expansion initiatives are key milestones, as
important to our long-term success is our strong balance sheet.
Having financial flexibility is critical, especially in today's
environment, and the new credit facility we entered into earlier
this week provides us increased liquidity as we look to further
grow the business for the benefit of all of our shareholders.
As important, it affords our best-in-class employee team an
enhanced ability to remain solely focused on providing our
customers unparalleled service quality and reliability."
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 believes these
measures are useful indicators of the financial performance of our
business and 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,
earnings per share 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. The non-GAAP
financial measures are defined and reconciled in the financial
tables below.
About Adams Resources & Energy, Inc.
Adams Resources & Energy, Inc. is engaged in crude oil
marketing, transportation, terminalling and storage and tank truck
transportation of liquid chemicals and dry bulk through its
subsidiaries, GulfMark Energy, Inc., Service Transport Company,
Victoria Express Pipeline, LLC and GulfMark Terminals, LLC.
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. Forward-looking statements are subject
to risks and uncertainties that could cause actual results to
differ materially from those expressed or implied in the
forward-looking statements, and any other risk factors included in
Adams' reports filed with the
Securities and Exchange Commission. 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
Tracy E. Ohmart
EVP, Chief Financial Officer
tohmart@adamsresources.com
(713) 881-3609
ADAMS RESOURCES
& ENERGY, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
(In thousands, except per share data)
|
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
|
2021
|
|
2020
|
Revenues:
|
|
|
|
|
Marketing
|
|
$
|
304,023
|
|
|
$
|
337,221
|
|
Transportation
|
|
21,235
|
|
|
16,256
|
|
Pipeline and
storage
|
|
233
|
|
|
—
|
|
Total
revenues
|
|
325,491
|
|
|
353,477
|
|
|
|
|
|
|
Costs and
expenses:
|
|
|
|
|
Marketing
|
|
295,207
|
|
|
352,865
|
|
Transportation
|
|
17,460
|
|
|
13,185
|
|
Pipeline and
storage
|
|
544
|
|
|
—
|
|
General and
administrative
|
|
3,376
|
|
|
2,894
|
|
Depreciation and
amortization
|
|
5,053
|
|
|
4,473
|
|
Total costs and
expenses
|
|
321,640
|
|
|
373,417
|
|
|
|
|
|
|
Operating earnings
(losses)
|
|
3,851
|
|
|
(19,940)
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
Interest and other
income
|
|
134
|
|
|
365
|
|
Interest
expense
|
|
(220)
|
|
|
(150)
|
|
Total other income
(expense), net
|
|
(86)
|
|
|
215
|
|
|
|
|
|
|
Earnings (losses)
before income taxes
|
|
3,765
|
|
|
(19,725)
|
|
Income tax
(provision) benefit
|
|
(957)
|
|
|
8,298
|
|
|
|
|
|
|
Net earnings
(losses)
|
|
$
|
2,808
|
|
|
$
|
(11,427)
|
|
|
|
|
|
|
Earnings (losses)
per share:
|
|
|
|
|
Basic net earnings
(losses) per common share
|
|
$
|
0.66
|
|
|
$
|
(2.70)
|
|
Diluted net earnings
(losses) per common share
|
|
$
|
0.66
|
|
|
$
|
(2.69)
|
|
|
|
|
|
|
Dividends per
common share
|
|
$
|
0.24
|
|
|
$
|
0.24
|
|
|
|
|
|
|
ADAMS RESOURCES
& ENERGY, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
|
|
|
|
March
31,
|
|
December
31,
|
|
|
2021
|
|
2020
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
58,985
|
|
|
$
|
39,293
|
|
Restricted
cash
|
|
12,377
|
|
|
12,772
|
|
Accounts receivable,
net of allowance for doubtful accounts
|
|
111,068
|
|
|
99,799
|
|
Accounts receivable –
related party
|
|
13
|
|
|
—
|
|
Inventory
|
|
29,223
|
|
|
19,336
|
|
Derivative
assets
|
|
576
|
|
|
61
|
|
Income tax
receivable
|
|
11,638
|
|
|
13,288
|
|
Prepayments and other
current assets
|
|
3,621
|
|
|
2,964
|
|
Total current
assets
|
|
227,501
|
|
|
187,513
|
|
|
|
|
|
|
Property and
equipment, net
|
|
90,643
|
|
|
94,134
|
|
Operating lease
right-of-use assets, net
|
|
7,774
|
|
|
8,051
|
|
Intangible assets,
net
|
|
3,902
|
|
|
4,106
|
|
Other
assets
|
|
2,482
|
|
|
2,383
|
|
Total
assets
|
|
$
|
332,302
|
|
|
$
|
296,187
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
|
$
|
122,155
|
|
|
$
|
85,991
|
|
Derivative
liabilities
|
|
546
|
|
|
52
|
|
Current portion of
finance lease obligations
|
|
4,494
|
|
|
4,112
|
|
Current portion of
operating lease liabilities
|
|
2,172
|
|
|
2,050
|
|
Other current
liabilities
|
|
19,888
|
|
|
22,343
|
|
Total current
liabilities
|
|
149,255
|
|
|
114,548
|
|
Other long-term
liabilities:
|
|
|
|
|
Asset retirement
obligations
|
|
2,325
|
|
|
2,308
|
|
Finance lease
obligations
|
|
12,202
|
|
|
11,507
|
|
Operating lease
liabilities
|
|
5,603
|
|
|
6,000
|
|
Deferred taxes and
other liabilities
|
|
11,900
|
|
|
12,732
|
|
Total
liabilities
|
|
181,285
|
|
|
147,095
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
151,017
|
|
|
149,092
|
|
Total liabilities and
shareholders' equity
|
|
$
|
332,302
|
|
|
$
|
296,187
|
|
ADAMS RESOURCES
& ENERGY, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS
(In thousands)
|
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
|
2021
|
|
2020
|
Operating
activities:
|
|
|
|
|
Net earnings
(losses)
|
|
$
|
2,808
|
|
|
$
|
(11,427)
|
|
Adjustments to
reconcile net earnings (losses) to net cash
|
|
|
|
|
provided by (used in)
operating activities:
|
|
|
|
|
Depreciation and
amortization
|
|
5,053
|
|
|
4,473
|
|
Gains on sales of
property
|
|
(83)
|
|
|
(140)
|
|
Provision for doubtful
accounts
|
|
(1)
|
|
|
(24)
|
|
Stock-based
compensation expense
|
|
185
|
|
|
134
|
|
Deferred income
taxes
|
|
(829)
|
|
|
(2,689)
|
|
Net change in fair
value contracts
|
|
(21)
|
|
|
(19)
|
|
Changes in assets
and liabilities:
|
|
|
|
|
Accounts
receivable
|
|
(11,268)
|
|
|
41,617
|
|
Accounts
receivable/payable, affiliates
|
|
(13)
|
|
|
1
|
|
Inventories
|
|
(9,887)
|
|
|
16,386
|
|
Income tax
receivable
|
|
1,650
|
|
|
(5,530)
|
|
Prepayments and other
current assets
|
|
(657)
|
|
|
253
|
|
Accounts
payable
|
|
36,127
|
|
|
(68,384)
|
|
Accrued
liabilities
|
|
51
|
|
|
1,506
|
|
Other
|
|
(114)
|
|
|
(3)
|
|
Net cash provided by
(used in) operating activities
|
|
23,001
|
|
|
(23,846)
|
|
|
|
|
|
|
Investing
activities:
|
|
|
|
|
Property and equipment
additions
|
|
(170)
|
|
|
(2,212)
|
|
Proceeds from property
sales
|
|
1,005
|
|
|
502
|
|
Insurance and state
collateral refunds
|
|
—
|
|
|
1,128
|
|
Net cash provided by
(used in) investing activities
|
|
835
|
|
|
(582)
|
|
|
|
|
|
|
Financing
activities:
|
|
|
|
|
Principal repayments of
finance lease obligations
|
|
(1,014)
|
|
|
(532)
|
|
Payment for financed
portion of VEX acquisition
|
|
(2,500)
|
|
|
—
|
|
Payment of contingent
consideration liability
|
|
—
|
|
|
(54)
|
|
Dividends paid on
common stock
|
|
(1,025)
|
|
|
(1,016)
|
|
Net cash used in
financing activities
|
|
(4,539)
|
|
|
(1,602)
|
|
|
|
|
|
|
Increase
(Decrease) in cash and cash equivalents, including restricted
cash
|
|
19,297
|
|
|
(26,030)
|
|
Cash and cash
equivalents, including restricted cash, at beginning of
period
|
|
52,065
|
|
|
122,255
|
|
Cash and cash
equivalents, including restricted cash, at end of
period
|
|
$
|
71,362
|
|
|
$
|
96,225
|
|
ADAMS RESOURCES
& ENERGY, INC. AND SUBSIDIARIES
NON-GAAP RECONCILIATIONS
(In thousands, except per share data)
|
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
|
2021
|
|
2020
|
Reconciliation of
Adjusted Cash Flow to Net Earnings (Losses):
|
|
|
|
|
Net earnings
(losses)
|
|
$
|
2,808
|
|
|
$
|
(11,427)
|
|
Add
(subtract):
|
|
|
|
|
Income tax (benefit)
provision
|
|
957
|
|
|
(8,298)
|
|
Depreciation and
amortization
|
|
5,053
|
|
|
4,473
|
|
Gains on sales of
property
|
|
(83)
|
|
|
(140)
|
|
Stock-based
compensation expense
|
|
185
|
|
|
134
|
|
Inventory liquidation
gains
|
|
(6,943)
|
|
|
—
|
|
Inventory valuation
losses
|
|
—
|
|
|
24,215
|
|
Net change in fair
value contracts
|
|
(21)
|
|
|
(19)
|
|
Adjusted cash
flow
|
|
$
|
1,956
|
|
|
$
|
8,938
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
|
2021
|
|
2020
|
Adjusted net
(losses) earnings and (losses) earnings per
|
|
|
|
|
common share
(Non-GAAP):
|
|
|
|
|
Net earnings
(losses)
|
|
$
|
2,808
|
|
|
$
|
(11,427)
|
|
Add
(subtract):
|
|
|
|
|
Gains on sales of
property
|
|
(83)
|
|
|
(140)
|
|
Stock-based
compensation expense
|
|
185
|
|
|
134
|
|
Net change in fair
value contracts
|
|
(21)
|
|
|
(19)
|
|
Inventory liquidation
gains
|
|
(6,943)
|
|
|
—
|
|
Inventory valuation
losses
|
|
—
|
|
|
24,215
|
|
Tax effect of
adjustments to earnings (losses)
|
|
1,440
|
|
|
(5,080)
|
|
Adjusted net (losses)
earnings
|
|
$
|
(2,614)
|
|
|
$
|
7,683
|
|
|
|
|
|
|
Adjusted (losses)
earnings per common share
|
|
$
|
(0.61)
|
|
|
$
|
1.81
|
|
|
|
ADAMS RESOURCES
& ENERGY, INC. AND SUBSIDIARIES
NON-GAAP RECONCILIATIONS
(In thousands)
|
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
|
2021
|
|
2020
|
Reconciliation of
Adjusted Cash Flow to Net Cash
Provided by (Used in) Operating Activities:
|
|
|
Net cash provided by
(used in) operating activities
|
|
$
|
23,001
|
|
|
$
|
(23,846)
|
|
Add
(subtract):
|
|
|
|
|
Income tax provision
(benefit)
|
|
957
|
|
|
(8,298)
|
|
Deferred income
taxes
|
|
829
|
|
|
2,689
|
|
Provision for doubtful
accounts
|
|
1
|
|
|
24
|
|
Inventory liquidation
gains
|
|
(6,943)
|
|
|
—
|
|
Inventory valuation
losses
|
|
—
|
|
|
24,215
|
|
Changes in assets and
liabilities
|
|
(15,889)
|
|
|
14,154
|
|
Adjusted cash
flow
|
|
$
|
1,956
|
|
|
$
|
8,938
|
|
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SOURCE Adams Resources & Energy, Inc.