HOUSTON, May 16, 2022 /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, 2022 and declared a quarterly
cash dividend of $0.24 per common
share.
- Reported net earnings of $6.1
million, or $1.39 per diluted
common share, on revenues of $774.2
million for the first quarter of 2022, compared to 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.
- Generated net cash provided by operating activities of
$5.9 million for the first quarter of
2022, versus $23.0 million for the
first quarter of 2021. The decrease was primarily driven by changes
in working capital, partially offset by an increase in the market
price of crude oil.
- Reported adjusted net loss of $1.0
million, or a loss of $0.24
per diluted common share, for the first quarter of 2022, compared
to an adjusted net loss of $2.6
million, or a loss of $0.61
per diluted common share, for the first quarter of 2021.
- Produced adjusted cash flow for the first quarter of 2022 of
$4.0 million versus $2.0 million for the first quarter of 2021.
Adjusted net earnings (losses), adjusted earnings (losses)
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 later in this
release.
Additional Highlights for Q1 2022
- Grew its cash and cash equivalents position to $99.3 million at March 31,
2022, which represented a 2% increase from $97.8 million at December
31, 2021.
- Increased its financial flexibility with liquidity of
$133.2 million at March 31, 2022, including cash and cash
equivalents and $33.9 million
available under the Company's $40.0
million Credit Agreement.
- Adam's crude oil marketing subsidiary, GulfMark Energy, Inc.
("GulfMark"), marketed 90,385 barrels per day ("bpd") of crude oil
during the first quarter of 2022, compared to 82,889 bpd during the
first quarter of 2021 and 91,640 bpd during the fourth quarter of
2021. GulfMark held 404,636 barrels of crude oil inventory at
March 31, 2022, compared to 259,489
barrels at December 31, 2021.
- The collective fleet of Service Transport Company ("Service
Transport"), Adams' liquid chemicals, pressurized gases, asphalt
and dry bulk transportation subsidiary, traveled 6.80 million miles
during the first quarter of 2022, versus 6.93 million miles during
the first quarter of 2021 and 6.79 million miles during the fourth
quarter of 2021.
- Adams' crude oil pipeline and storage segment, which was
established following the purchase of the Victoria Express Pipeline
System ("VEX Pipeline System") in October
2020, further expanded its scope of operations during the
first quarter of 2022. Pipeline throughput increased to 10,486 bpd
for the first quarter of 2022 from 2,956 bpd for the first quarter
of 2021 and 9,988 bpd for the fourth quarter of 2021, and
terminalling volumes grew to 10,948 bpd for the first quarter of
2022 from 4,912 bpd in the first quarter of 2021 and 10,282 bpd for
the fourth quarter of 2021.
Kevin J. Roycraft, Adams' Chief
Executive Officer, commented, "We were pleased with our strong
start to 2022 - both operationally and on the financial
front. All three of our segments made important progress on
the execution of targeted initiatives designed to profitably
sustain and grow their respective businesses for the long-term
benefit of our shareholders, and I want to thank all of our team
members for their steadfast dedication to providing our customers
with a safe, efficient and best-in-class service
offering."
Capital Investments and Dividends
During the first quarter of 2022, the Company spent capital of
$3.7 million for tractors and other
field equipment. In addition, Adams paid dividends of
$1.1 million, or $0.24 per common
share.
Adams' Board of Directors has declared a quarterly cash dividend
for the first quarter of 2022 of $0.24 per common share, payable on June 17, 2022, to shareholders of record as of
June 3, 2022. Adams' has
consistently paid a dividend since 1994.
Outlook
Mr. Roycraft concluded, "We look forward to further executing
our plan to drive increased efficiencies across the
organization. Supporting our efforts remains our
well-established and continued strong financial position, which
included a liquidity position of more than $140 million at the end of this year's first
quarter. As in the past, we will continue to leverage our
significant operational expertise and financial flexibility to
execute on opportunities designed to prudently grow our
business. We also remain squarely focused on providing
significant value for our shareholders, including providing a
regular return on capital through the consistent payment of our
quarterly cash dividend."
Use of Non-GAAP Financial Measures
This press release and accompanying schedules includes the
non-GAAP financial measures of adjusted cash flow, adjusted net
earnings (losses) and adjusted earnings (losses) 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,
|
|
|
2022
|
|
2021
|
Revenues:
|
|
|
|
|
Marketing
|
|
$
747,555
|
|
$
304,023
|
Transportation
|
|
26,690
|
|
21,235
|
Pipeline and
storage
|
|
—
|
|
233
|
Total
revenues
|
|
774,245
|
|
325,491
|
|
|
|
|
|
Costs and
expenses:
|
|
|
|
|
Marketing
|
|
735,647
|
|
295,207
|
Transportation
|
|
20,865
|
|
17,460
|
Pipeline and
storage
|
|
554
|
|
544
|
General and
administrative
|
|
4,018
|
|
3,376
|
Depreciation and
amortization
|
|
5,013
|
|
5,053
|
Total costs and
expenses
|
|
766,097
|
|
321,640
|
|
|
|
|
|
Operating
earnings
|
|
8,148
|
|
3,851
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
Interest and other
income
|
|
24
|
|
134
|
Interest
expense
|
|
(114)
|
|
(220)
|
Total other (expense)
income, net
|
|
(90)
|
|
(86)
|
|
|
|
|
|
Earnings before
income taxes
|
|
8,058
|
|
3,765
|
Income tax
provision
|
|
(1,968)
|
|
(957)
|
|
|
|
|
|
Net
earnings
|
|
$
6,090
|
|
$
2,808
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
Basic net earnings per
common share
|
|
$
1.40
|
|
$
0.66
|
Diluted net earnings
per common share
|
|
$
1.39
|
|
$
0.66
|
|
|
|
|
|
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,
|
|
|
2022
|
|
2021
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
99,295
|
|
$
97,825
|
Restricted
cash
|
|
8,850
|
|
9,492
|
Accounts receivable,
net of allowance for doubtful accounts
|
|
212,454
|
|
137,789
|
Accounts receivable –
related party
|
|
1
|
|
2
|
Inventory
|
|
42,382
|
|
18,942
|
Derivative
assets
|
|
1,145
|
|
347
|
Income tax
receivable
|
|
5,140
|
|
6,424
|
Prepayments and other
current assets
|
|
1,705
|
|
2,389
|
Total current
assets
|
|
370,972
|
|
273,210
|
|
|
|
|
|
Property and
equipment, net
|
|
86,543
|
|
88,036
|
Operating lease
right-of-use assets, net
|
|
6,699
|
|
7,113
|
Intangible assets,
net
|
|
3,126
|
|
3,317
|
Other
assets
|
|
2,777
|
|
3,027
|
Total
assets
|
|
$
470,117
|
|
$
374,703
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
|
$
259,451
|
|
$
168,224
|
Accounts payable –
related party
|
|
47
|
|
—
|
Derivative
liabilities
|
|
1,102
|
|
324
|
Current portion of
finance lease obligations
|
|
3,293
|
|
3,663
|
Current portion of
operating lease liabilities
|
|
2,258
|
|
2,178
|
Other current
liabilities
|
|
10,828
|
|
11,622
|
Total current
liabilities
|
|
276,979
|
|
186,011
|
Other long-term
liabilities:
|
|
|
|
|
Asset retirement
obligations
|
|
2,391
|
|
2,376
|
Finance lease
obligations
|
|
8,903
|
|
9,672
|
Operating lease
liabilities
|
|
4,445
|
|
4,938
|
Deferred taxes and
other liabilities
|
|
11,878
|
|
11,320
|
Total
liabilities
|
|
304,596
|
|
214,317
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
165,521
|
|
160,386
|
Total liabilities and
shareholders' equity
|
|
$
470,117
|
|
$
374,703
|
ADAMS RESOURCES
& ENERGY, INC. AND SUBSIDIARIES UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS (In
thousands)
|
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
|
2022
|
|
2021
|
Operating
activities:
|
|
|
|
|
Net
earnings
|
|
$
6,090
|
|
$
2,808
|
Adjustments to
reconcile net earnings to net cash
|
|
|
|
|
provided by operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
|
5,013
|
|
5,053
|
Gains on sales of
property
|
|
(491)
|
|
(83)
|
Provision for doubtful
accounts
|
|
(5)
|
|
(1)
|
Stock-based
compensation expense
|
|
195
|
|
185
|
Deferred income
taxes
|
|
561
|
|
(829)
|
Net change in fair
value contracts
|
|
(20)
|
|
(21)
|
Changes in assets
and liabilities:
|
|
|
|
|
Accounts
receivable
|
|
(74,660)
|
|
(11,268)
|
Accounts
receivable/payable, affiliates
|
|
48
|
|
(13)
|
Inventories
|
|
(23,440)
|
|
(9,887)
|
Income tax
receivable
|
|
1,284
|
|
1,650
|
Prepayments and other
current assets
|
|
684
|
|
(657)
|
Accounts
payable
|
|
91,211
|
|
36,127
|
Accrued
liabilities
|
|
(775)
|
|
51
|
Other
|
|
178
|
|
(114)
|
Net cash provided by
operating activities
|
|
5,873
|
|
23,001
|
|
|
|
|
|
Investing
activities:
|
|
|
|
|
Property and equipment
additions
|
|
(3,694)
|
|
(170)
|
Proceeds from property
sales
|
|
856
|
|
1,005
|
Net cash (used in)
provided by investing activities
|
|
(2,838)
|
|
835
|
|
|
|
|
|
Financing
activities:
|
|
|
|
|
Principal repayments of
finance lease obligations
|
|
(1,139)
|
|
(1,014)
|
Payment for financed
portion of VEX acquisition
|
|
—
|
|
(2,500)
|
Dividends paid on
common stock
|
|
(1,068)
|
|
(1,025)
|
Net cash used in
financing activities
|
|
(2,207)
|
|
(4,539)
|
|
|
|
|
|
Increase in cash
and cash equivalents, including restricted cash
|
|
828
|
|
19,297
|
Cash and cash
equivalents, including restricted cash, at beginning of
period
|
|
107,317
|
|
52,065
|
Cash and cash
equivalents, including restricted cash, at end of
period
|
|
$
108,145
|
|
$
71,362
|
ADAMS RESOURCES
& ENERGY, INC. AND SUBSIDIARIES NON-GAAP
RECONCILIATIONS (In thousands, except per share
data)
|
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
|
2022
|
|
2021
|
Reconciliation of
Adjusted Cash Flow to Net Earnings:
|
|
|
|
|
Net earnings
|
|
$
6,090
|
|
$
2,808
|
Add
(subtract):
|
|
|
|
|
Income tax
provision
|
|
1,968
|
|
957
|
Depreciation and
amortization
|
|
5,013
|
|
5,053
|
Gains on sales of
property
|
|
(491)
|
|
(83)
|
Stock-based
compensation expense
|
|
195
|
|
185
|
Inventory liquidation
gains
|
|
(8,717)
|
|
(6,943)
|
Net change in fair
value contracts
|
|
(20)
|
|
(21)
|
Adjusted cash
flow
|
|
$
4,038
|
|
$
1,956
|
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
|
2022
|
|
2021
|
Adjusted net
(losses) earnings and (losses)
|
|
|
|
|
earnings per common
share (Non-GAAP):
|
|
|
|
|
Net earnings
|
|
$
6,090
|
|
$
2,808
|
Add
(subtract):
|
|
|
|
|
Gains on sales of
property
|
|
(491)
|
|
(83)
|
Stock-based
compensation expense
|
|
195
|
|
185
|
Net change in fair
value contracts
|
|
(20)
|
|
(21)
|
Inventory liquidation
gains
|
|
(8,717)
|
|
(6,943)
|
Tax effect of
adjustments to earnings (losses)
|
|
1,897
|
|
1,441
|
Adjusted net
losses
|
|
$
(1,046)
|
|
$
(2,613)
|
|
|
|
|
|
Adjusted losses per
common share
|
|
$
(0.24)
|
|
$
(0.61)
|
ADAMS RESOURCES
& ENERGY, INC. AND SUBSIDIARIES NON-GAAP
RECONCILIATIONS (In thousands)
|
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
|
2022
|
|
2021
|
Reconciliation of
Adjusted Cash Flow to Net Cash
Provided by Operating Activities:
|
|
|
Net cash provided by
operating activities
|
|
$
5,873
|
|
$
23,001
|
Add
(subtract):
|
|
|
|
|
Income tax
provision
|
|
1,968
|
|
957
|
Deferred income
taxes
|
|
(561)
|
|
829
|
Provision for doubtful
accounts
|
|
5
|
|
1
|
Inventory liquidation
gains
|
|
(8,717)
|
|
(6,943)
|
Changes in assets and
liabilities
|
|
5,470
|
|
(15,889)
|
Adjusted cash
flow
|
|
$
4,038
|
|
$
1,956
|
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SOURCE Adams Resources & Energy, Inc.