HOUSTON, March 8, 2019 /PRNewswire/ -- Adams
Resources & Energy, Inc. (NYSE AMERICAN: AE) ("Adams" or the
"Company") today announced its financial results for the three
months and year ended December 31, 2018.
The Company reported a net loss of $3.8
million, or ($0.91) per common
share, on revenues of $442.6 million
for the fourth quarter of 2018, compared to net earnings of
$3.7 million, or $0.88 per common share, on revenues of
$408.5 million for the fourth quarter
of 2017. On an adjusted basis, net earnings were $2.2 million, or $0.52 per common share, for the fourth quarter of
2018, compared to net earnings of $1.3
million, or $0.31 per common
share, for the fourth quarter of 2017. For the full year
2018, the Company had net earnings of $2.9
million, or $0.70 per common
share, on revenues of $1.75 billion,
compared to a net loss of $0.5
million, or ($0.11) per common
share, on revenues of $1.32 billion
for the full year 2017. On an adjusted basis, net earnings
were $5.9 million, or $1.40 per common share, for the full year 2018,
compared to net earnings of $1.3
million, or $0.31 per common
share, for the full year 2017.
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 2018 Highlights:
- Gross revenues of approximately $442.6
million for the fourth quarter of 2018 compared to
$408.5 million for the fourth quarter
of 2017, and gross revenues of approximately $1.75 billion for the full year 2018 compared to
$1.32 billion for the full year
2017
- Our crude oil marketing subsidiary, GulfMark Energy, Inc.,
marketed approximately 110,802 barrels per day ("bpd") of crude oil
during the fourth quarter of 2018, compared to 72,387 bpd of crude
oil during the fourth quarter of 2017
- Cash and cash equivalents increased by approximately 7.0
percent from December 31, 2017 of
$109.4 million to over $117.1 million at December
31, 2018
- $55.4 million of undrawn capacity
under our letter of credit facility at December 31, 2018
- Adjusted cash flow of $5.7
million for the fourth quarter of 2018 compared to
$3.2 million for the fourth quarter
of 2017, and adjusted cash flow of $17.9
million for the full year 2018 compared to $12.9 million for the full year 2017
- Approximately 415,523 barrels of crude oil inventory at
December 31, 2018 compared to 198,011
barrels at December 31, 2017
- Dividend of $0.22 per share for
the fourth quarter of 2018
- No short or long term debt at December
31, 2018
"During the fourth quarter of 2018, our Service Transport
business unit continued to generate improved financial and
operating results as our revenue per mile increased 7 percent from
the third quarter of 2018 and 23 percent from the fourth quarter of
2017," said Townes Pressler,
Executive Chairman. "As customer demand continues to be
strong in this segment, improved trucking rates allow improved
hiring and retention of skilled drivers as we continue to provide
dependable superior service to our customers at Service
Transport. We are continuing on schedule with improving the
age of our fleet, with the purchase of 60 new tractors during 2018,
and commitments to purchase an additional 35 tractors and 20
trailers by the end of the first quarter of 2019."
"At our GulfMark business unit, crude oil marketing volumes for
the fourth quarter of 2018 increased 57 percent from the third
quarter of 2018 and increased 53 percent from the fourth quarter of
2017, primarily as a result of the acquisition of a crude oil
gathering operation during October
2018, coupled with increased production in our marketing
areas. We have seen some increase in marketing margins as a
result of improved marketing conditions."
"During 2019, we will remain focused on safety first and
remaining in the top tier for all safety statistics. We will
be introducing efficiencies in our crude oil marketing division,
integrating our crude oil gathering company acquisition into our
business, replacing aging tractors and right sizing our tractor and
trailer fleets in both business units, and improving
company-wide driver recruitment and retention, and increasing our
driver count. We will continue to explore synergic growth
opportunities in our core businesses, both organically and in the
open market," continued Pressler.
Capital Investments and Dividends
During the fourth quarter of 2018, the Company spent
approximately $4.0 million of capital
and paid dividends of $0.9 million
($0.22 per common share). For
the full year 2018, the Company spent approximately $11.7 million of capital and paid dividends of
$3.7 million (a total of $0.88 per common share). The majority of
the capital costs relate to the purchase of tractors in our Service
Transport subsidiary.
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 through its
two subsidiaries, GulfMark Energy, Inc. and Service Transport
Company, respectively. 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: Tracy E.
Ohmart
EVP, Chief Financial Officer
tohmart@adamsresources.com
(713) 881-3609
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,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Revenues:
|
|
|
|
|
|
|
|
Marketing
|
$
|
428,382
|
|
$
|
395,255
|
|
$
|
1,694,437
|
|
$
|
1,267,275
|
Transportation
|
14,267
|
|
13,205
|
|
55,776
|
|
53,358
|
Oil and natural
gas
|
—
|
|
—
|
|
—
|
|
1,427
|
Total
revenues
|
442,649
|
|
408,460
|
|
1,750,213
|
|
1,322,060
|
|
|
|
|
|
|
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
Marketing
|
430,812
|
|
387,196
|
|
1,681,045
|
|
1,247,763
|
Transportation
|
11,566
|
|
11,857
|
|
48,169
|
|
48,538
|
Oil and natural
gas
|
—
|
|
—
|
|
—
|
|
948
|
Oil and natural gas
property impairments
|
—
|
|
—
|
|
—
|
|
3
|
General and
administrative
|
2,837
|
|
2,823
|
|
8,937
|
|
9,707
|
Depreciation, depletion
and amortization
|
3,640
|
|
2,827
|
|
10,654
|
|
13,599
|
Total costs and
expenses
|
448,855
|
|
404,703
|
|
1,748,805
|
|
1,320,558
|
|
|
|
|
|
|
|
|
Operating earnings
(losses)
|
(6,206)
|
|
3,757
|
|
1,408
|
|
1,502
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
Loss on deconsolidation
of subsidiary
|
—
|
|
—
|
|
—
|
|
(3,505)
|
Impairment of
investment in unconsolidated affiliate
|
—
|
|
—
|
|
—
|
|
(2,500)
|
Interest
income
|
669
|
|
314
|
|
2,155
|
|
1,103
|
Interest
expense
|
(49)
|
|
(17)
|
|
(109)
|
|
(27)
|
Total other income
(expense), net
|
620
|
|
297
|
|
2,046
|
|
(4,929)
|
|
|
|
|
|
|
|
|
(Losses) earnings
before income taxes
|
(5,586)
|
|
4,054
|
|
3,454
|
|
(3,427)
|
|
|
|
|
|
|
|
|
Income tax benefit
(provision)
|
1,738
|
|
(361)
|
|
(509)
|
|
2,945
|
|
|
|
|
|
|
|
|
Net (losses)
earnings
|
$
|
(3,848)
|
|
$
|
3,693
|
|
$
|
2,945
|
|
$
|
(482)
|
|
|
|
|
|
|
|
|
Earnings (losses)
per share:
|
|
|
|
|
|
|
|
Basic and diluted net
(losses) earnings per common share
|
$
|
(0.91)
|
|
$
|
0.88
|
|
$
|
0.70
|
|
$
|
(0.11)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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,
|
|
2018
|
|
2017
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
117,066
|
|
$
|
109,393
|
Accounts receivable,
net of allowance for doubtful accounts
|
85,197
|
|
121,353
|
Accounts receivable –
related party
|
425
|
|
—
|
Inventory
|
22,779
|
|
12,192
|
Derivative
assets
|
162
|
|
166
|
Income tax
receivable
|
2,404
|
|
1,317
|
Prepayments and other
current assets
|
1,557
|
|
1,264
|
Total current
assets
|
229,590
|
|
245,685
|
|
|
|
|
Property and
equipment, net
|
44,623
|
|
29,362
|
Investments in
unconsolidated affiliates
|
—
|
|
425
|
Cash deposits and
other
|
4,657
|
|
7,232
|
Total
assets
|
$
|
278,870
|
|
$
|
282,704
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
|
116,068
|
|
$
|
124,706
|
Accounts payable –
related party
|
29
|
|
5
|
Derivative
liabilities
|
139
|
|
145
|
Current portion of
capital lease obligations
|
883
|
|
338
|
Other current
liabilities
|
6,148
|
|
4,404
|
Total current
liabilities
|
123,267
|
|
129,598
|
Other long-term
liabilities:
|
|
|
|
Asset retirement
obligations
|
1,525
|
|
1,273
|
Capital lease
obligations
|
3,209
|
|
1,351
|
Deferred taxes and
other liabilities
|
4,271
|
|
3,363
|
Total
liabilities
|
132,272
|
|
135,585
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
Shareholders'
equity
|
146,598
|
|
147,119
|
Total liabilities and
shareholders' equity
|
$
|
278,870
|
|
$
|
282,704
|
ADAMS RESOURCES
& ENERGY, INC. AND SUBSIDIARIES
|
UNAUDITED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In
thousands)
|
|
|
Year
Ended
|
|
December
31,
|
|
2018
|
|
2017
|
Operating
activities:
|
|
|
|
Net (losses)
earnings
|
$
|
2,945
|
|
$
|
(482)
|
Adjustments to
reconcile net (losses) earnings to net cash
|
|
|
|
provided by operating
activities:
|
|
|
|
Depreciation,
depletion and amortization
|
10,654
|
|
13,599
|
Gains on sales of
property
|
(1,240)
|
|
(594)
|
Impairment of oil and
natural gas properties
|
—
|
|
3
|
Provision for doubtful
accounts
|
(150)
|
|
78
|
Stock-based
compensation expense
|
255
|
|
—
|
Deferred income
taxes
|
936
|
|
(3,840)
|
Net change in fair
value contracts
|
(2)
|
|
27
|
Impairment of
investment in unconsolidated affiliate
|
—
|
|
2,500
|
Loss on
deconsolidation of subsidiary
|
—
|
|
3,505
|
Changes in assets
and liabilities:
|
|
|
|
Accounts
receivable
|
36,350
|
|
(34,935)
|
Accounts
receivable/payable, affiliates
|
24
|
|
271
|
Inventories
|
(10,587)
|
|
878
|
Income tax
receivable
|
(1,087)
|
|
1,418
|
Prepayments and other
current assets
|
(293)
|
|
831
|
Accounts
payable
|
(10,252)
|
|
44,790
|
Accrued
liabilities
|
1,744
|
|
(991)
|
Other
|
1,717
|
|
(962)
|
Net cash provided by
operating activities
|
31,014
|
|
26,096
|
|
|
|
|
Investing
activities:
|
|
|
|
Property and equipment
additions
|
(11,731)
|
|
(2,644)
|
Asset
acquisition
|
(10,272)
|
|
—
|
Proceeds from property
sales
|
2,038
|
|
720
|
Proceeds from sales of
AREC assets
|
—
|
|
2,775
|
Insurance and state
collateral (deposits) refunds
|
830
|
|
(1,067)
|
Net cash used in
investing activities
|
(19,135)
|
|
(216)
|
|
|
|
|
Financing
activities:
|
|
|
|
Principal repayments of
capital lease obligations
|
(495)
|
|
(118)
|
Dividends paid on
common stock
|
(3,711)
|
|
(3,711)
|
Net cash used in
financing activities
|
(4,206)
|
|
(3,829)
|
|
|
|
|
Increase in cash
and cash equivalents
|
7,673
|
|
22,051
|
Cash and cash
equivalents at beginning of period
|
109,393
|
|
87,342
|
Cash and cash
equivalents at end of period
|
$
|
117,066
|
|
$
|
109,393
|
ADAMS RESOURCES
& ENERGY, INC. AND SUBSIDIARIES
|
NON-GAAP
RECONCILIATIONS
|
(In thousands,
except per share data)
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Reconciliation of
Adjusted Cash Flow to Net (Losses) Earnings:
|
|
|
|
|
|
|
|
Net (losses)
earnings
|
$
|
(3,848)
|
|
$
|
3,693
|
|
$
|
2,945
|
|
$
|
(482)
|
Income tax (benefit)
provision
|
(1,738)
|
|
361
|
|
509
|
|
(2,945)
|
Depreciation, depletion
and amortization
|
3,640
|
|
2,827
|
|
10,654
|
|
13,599
|
Gains on sales of
property
|
(350)
|
|
(247)
|
|
(1,240)
|
|
(594)
|
Impairment of oil and
natural gas properties
|
—
|
|
—
|
|
—
|
|
3
|
Loss on deconsolidation
of subsidiary
|
—
|
|
—
|
|
—
|
|
3,505
|
Impairment of
investment in unconsolidated affiliate
|
—
|
|
—
|
|
—
|
|
2,500
|
Stock-based
compensation expense
|
111
|
|
—
|
|
255
|
|
—
|
Inventory liquidation
gains
|
—
|
|
(3,481)
|
|
—
|
|
(3,372)
|
Inventory valuation
losses
|
7,898
|
|
—
|
|
5,363
|
|
—
|
Net change in fair
value contracts
|
(7)
|
|
(21)
|
|
(2)
|
|
27
|
Costs of voluntary
early retirement program
|
—
|
|
—
|
|
—
|
|
1,435
|
Legal and other accrual
reversals
|
—
|
|
—
|
|
—
|
|
(840)
|
Insurance proceeds for
Hurricane Harvey claims
|
—
|
|
—
|
|
(610)
|
|
—
|
Insurance deductible
related to hurricane
|
—
|
|
100
|
|
—
|
|
100
|
Adjusted cash
flow
|
$
|
5,706
|
|
$
|
3,232
|
|
$
|
17,874
|
|
$
|
12,936
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Adjusted net
(losses) earnings and (losses) earnings per common share
(Non-GAAP):
|
|
|
|
|
|
|
|
Net (losses)
earnings
|
$
|
(3,848)
|
|
$
|
3,693
|
|
$
|
2,945
|
|
$
|
(482)
|
Add
(subtract):
|
|
|
|
|
|
|
|
Loss on
deconsolidation of subsidiary
|
—
|
|
—
|
|
—
|
|
3,505
|
Impairment of
investment in unconsolidated affiliate
|
—
|
|
—
|
|
—
|
|
2,500
|
Gains on sales of
property
|
(350)
|
|
(247)
|
|
(1,240)
|
|
(594)
|
Impairment of oil and
natural gas properties
|
—
|
|
—
|
|
—
|
|
3
|
Stock-based
compensation expense
|
111
|
|
—
|
|
255
|
|
—
|
Costs of voluntary
early retirement program
|
—
|
|
—
|
|
—
|
|
1,435
|
Net change in fair
value contracts
|
(7)
|
|
(21)
|
|
(2)
|
|
27
|
Inventory liquidation
gains
|
—
|
|
(3,481)
|
|
—
|
|
(3,372)
|
Inventory valuation
losses
|
7,898
|
|
—
|
|
5,363
|
|
—
|
Legal and other
accrual reversals
|
—
|
|
—
|
|
—
|
|
(840)
|
Insurance proceeds for
Hurricane Harvey claims
|
—
|
|
—
|
|
(610)
|
|
—
|
Insurance deductible
related to hurricane
|
—
|
|
100
|
|
—
|
|
100
|
Tax effect of
adjustments to (losses) earnings
|
(1,607)
|
|
1,277
|
|
(790)
|
|
(967)
|
Adjusted net (losses)
earnings
|
$
|
2,197
|
|
$
|
1,321
|
|
$
|
5,921
|
|
$
|
1,315
|
|
|
|
|
|
|
|
|
Adjusted (losses)
earnings per common share
|
$
|
0.52
|
|
$
|
0.31
|
|
$
|
1.40
|
|
$
|
0.31
|
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SOURCE Adams Resources & Energy, Inc.