HOUSTON, Aug. 12, 2021 /PRNewswire/ -- Adams
Resources & Energy, Inc. (NYSE AMERICAN: AE) ("Adams" or the "Company") today announced
operational and financial results for the three months ended
June 30, 2021 and declared a quarterly cash dividend of
$0.24 per common share.
- Reported net earnings of $4.7
million, or $1.10 per diluted
common share, on revenues of $486.7
million for the second quarter of 2021, compared to
$3.5 million, or $0.82 per diluted common share, on revenues of
$152.3 million for the second quarter
of 2020.
- Generated net cash provided by operating activities of
$29.1 million for the second quarter
of 2021, compared to net cash used in operating activities of
$6.6 million for the second 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 adjusted net earnings of $1.9
million, or $0.44 per diluted
common share, for the second quarter of 2021, compared to an
adjusted net loss of $0.8 million, or
a loss of $0.18 per diluted common
share, for the second quarter of 2020.
- Adjusted cash flow for the second quarter of 2021 was
$7.4 million versus $1.9 million for the second quarter of
2020.
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 Q2 2021
- Maintained strong financial flexibility at June 30, 2021, including $88.7 million in cash and cash equivalents. This
represented a 126% increase from $39.3
million at December 31,
2020.
- Liquidity of $111.4 million at
June 30, 2021, including cash and
cash equivalents and $22.8 million
available under the Company's $40.0
million Credit Agreement entered into in May 2021.
- Adam's crude oil marketing subsidiary, GulfMark Energy, Inc.
("GulfMark"), marketed approximately 89,585 barrels per day ("bpd")
of crude oil during the second quarter of 2021, compared to 81,152
bpd during the second quarter of 2020 and 82,889 bpd during the
first quarter of 2021. GulfMark held 413,973 barrels of crude oil
inventory at June 30, 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 7.25 million miles during the
second quarter of 2021, compared to 3.89 million miles during the
second quarter of 2020 and 6.93 million miles during the first
quarter of 2021. Significantly contributing to the year-over-year
increase in miles traveled for the second quarter was the
June 2020 purchase of assets from CTL
Transportation, which added new services and product lines for the
Company's new and existing customers in new markets in Florida, Georgia, Illinois, Missouri and Ohio.
Kevin J. Roycraft, Adams' Chief Executive Officer, commented, "We
were pleased with our results for the second quarter of 2021,
including generating adjusted cash flow that was almost four times
higher than both the first quarter of this year and the second
quarter of 2020. Contributing to our financial performance
for this year's second quarter was a continued improvement in the
economic backdrop, including increased demand for crude oil and a
resulting higher price environment. Our recent acquisitions in our
transportation and pipeline and storage segments also benefited our
results for the period. We were especially pleased with the
second quarter performance of the VEX Pipeline System, which we
acquired in October of last year, producing positive cash flow in
its second full quarter of operation."
Capital Investments and Dividends
During the second quarter of 2021, the Company spent capital of
$3.4 million for trailers 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 second quarter of 2021
of $0.24 per common share, payable on
September 17, 2021, to shareholders
of record as of September 3,
2021. Adams' has
consistently paid a dividend since 1994.
Outlook
Mr. Roycraft concluded, "Looking to the second half of 2021, we
remain focused on increasing efficiencies in each of our business
segments. This includes further integrating our newly
acquired terminals and leveraging back haul opportunities with
continued efforts to diversify our offerings. We also plan to
grow in new and existing areas with our crude oil marketing
segment. Finally, as we have successfully done in the past,
we will continue to evaluate business development opportunities
that complement our core businesses and support our mission of
providing unparalleled service quality and reliability for our
customers."
"Underpinning our strategic initiatives to enhance and expand
our business is ensuring we maintain a solid financial position.
Our strong balance sheet and significant liquidity served us
well in the economic depths associated with the pandemic, and we
believe our financial flexibility will continue to differentiate
Adams in the marketplace moving
forward. Also key to our past and future success is the
dedicated efforts of our full employee team. I look forward
to working closely with them as we identify and execute on
additional targeted opportunities to prudently grow the business
for the long-term benefit of our shareholders."
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
|
|
Six Months
Ended
|
|
|
June
30,
|
|
June
30,
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Revenues:
|
|
|
|
|
|
|
|
|
Marketing
|
|
$
|
463,092
|
|
|
$
|
140,141
|
|
|
$
|
767,115
|
|
|
$
|
477,362
|
|
Transportation
|
|
23,497
|
|
|
12,145
|
|
|
44,732
|
|
|
28,401
|
|
Pipeline and
storage
|
|
155
|
|
|
—
|
|
|
388
|
|
|
—
|
|
Total
revenues
|
|
486,744
|
|
|
152,286
|
|
|
812,235
|
|
|
505,763
|
|
|
|
|
|
|
|
|
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
Marketing
|
|
453,081
|
|
|
131,454
|
|
|
748,288
|
|
|
484,319
|
|
Transportation
|
|
19,078
|
|
|
10,888
|
|
|
36,538
|
|
|
24,073
|
|
Pipeline and
storage
|
|
488
|
|
|
—
|
|
|
1,032
|
|
|
—
|
|
General and
administrative
|
|
2,961
|
|
|
2,731
|
|
|
6,337
|
|
|
5,625
|
|
Depreciation and
amortization
|
|
4,801
|
|
|
4,278
|
|
|
9,854
|
|
|
8,751
|
|
Total costs and
expenses
|
|
480,409
|
|
|
149,351
|
|
|
802,049
|
|
|
522,768
|
|
|
|
|
|
|
|
|
|
|
Operating earnings
(losses)
|
|
6,335
|
|
|
2,935
|
|
|
10,186
|
|
|
(17,005)
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
Interest and other
income
|
|
62
|
|
|
144
|
|
|
196
|
|
|
509
|
|
Interest
expense
|
|
(204)
|
|
|
(68)
|
|
|
(424)
|
|
|
(218)
|
|
Total other (expense)
income, net
|
|
(142)
|
|
|
76
|
|
|
(228)
|
|
|
291
|
|
|
|
|
|
|
|
|
|
|
Earnings (losses)
before income taxes
|
|
6,193
|
|
|
3,011
|
|
|
9,958
|
|
|
(16,714)
|
|
Income tax
(provision) benefit
|
|
(1,484)
|
|
|
492
|
|
|
(2,441)
|
|
|
8,790
|
|
|
|
|
|
|
|
|
|
|
Net earnings
(losses)
|
|
$
|
4,709
|
|
|
$
|
3,503
|
|
|
$
|
7,517
|
|
|
$
|
(7,924)
|
|
|
|
|
|
|
|
|
|
|
Earnings (losses)
per share:
|
|
|
|
|
|
|
|
|
Basic net earnings
(losses) per common share
|
|
$
|
1.11
|
|
|
$
|
0.83
|
|
|
$
|
1.77
|
|
|
$
|
(1.87)
|
|
Diluted net earnings
(losses) per common share
|
|
$
|
1.10
|
|
|
$
|
0.82
|
|
|
$
|
1.76
|
|
|
$
|
(1.87)
|
|
|
|
|
|
|
|
|
|
|
Dividends per
common share
|
|
$
|
0.24
|
|
|
$
|
0.24
|
|
|
$
|
0.48
|
|
|
$
|
0.48
|
|
|
|
|
|
|
|
|
|
|
ADAMS RESOURCES
& ENERGY, INC. AND SUBSIDIARIES
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(In
thousands)
|
|
|
|
June
30,
|
|
December
31,
|
|
|
2021
|
|
2020
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
88,668
|
|
|
$
|
39,293
|
|
Restricted
cash
|
|
7,033
|
|
|
12,772
|
|
Accounts receivable,
net of allowance for doubtful accounts
|
|
125,910
|
|
|
99,799
|
|
Accounts receivable –
related party
|
|
4
|
|
|
—
|
|
Inventory
|
|
29,712
|
|
|
19,336
|
|
Derivative
assets
|
|
1,255
|
|
|
61
|
|
Income tax
receivable
|
|
5,846
|
|
|
13,288
|
|
Prepayments and other
current assets
|
|
2,122
|
|
|
2,964
|
|
Total current
assets
|
|
260,550
|
|
|
187,513
|
|
|
|
|
|
|
Property and
equipment, net
|
|
90,577
|
|
|
94,134
|
|
Operating lease
right-of-use assets, net
|
|
7,249
|
|
|
8,051
|
|
Intangible assets,
net
|
|
3,700
|
|
|
4,106
|
|
Other
assets
|
|
2,930
|
|
|
2,383
|
|
Total
assets
|
|
$
|
365,006
|
|
|
$
|
296,187
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
|
$
|
151,113
|
|
|
$
|
85,991
|
|
Derivative
liabilities
|
|
1,221
|
|
|
52
|
|
Current portion of
finance lease obligations
|
|
4,333
|
|
|
4,112
|
|
Current portion of
operating lease liabilities
|
|
2,184
|
|
|
2,050
|
|
Other current
liabilities
|
|
13,556
|
|
|
22,343
|
|
Total current
liabilities
|
|
172,407
|
|
|
114,548
|
|
Other long-term
liabilities:
|
|
|
|
|
Long-term
debt
|
|
8,000
|
|
|
—
|
|
Asset retirement
obligations
|
|
2,342
|
|
|
2,308
|
|
Finance lease
obligations
|
|
11,246
|
|
|
11,507
|
|
Operating lease
liabilities
|
|
5,067
|
|
|
6,000
|
|
Deferred taxes and
other liabilities
|
|
11,093
|
|
|
12,732
|
|
Total
liabilities
|
|
210,155
|
|
|
147,095
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
154,851
|
|
|
149,092
|
|
Total liabilities and
shareholders' equity
|
|
$
|
365,006
|
|
|
$
|
296,187
|
|
ADAMS RESOURCES
& ENERGY, INC. AND SUBSIDIARIES
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In
thousands)
|
|
|
|
Six Months
Ended
|
|
|
June
30,
|
|
|
2021
|
|
2020
|
Operating
activities:
|
|
|
|
|
Net earnings
(losses)
|
|
$
|
7,517
|
|
|
$
|
(7,924)
|
|
Adjustments to
reconcile net earnings (losses) to net cash
|
|
|
|
|
provided by (used in)
operating activities:
|
|
|
|
|
Depreciation and
amortization
|
|
9,854
|
|
|
8,751
|
|
Gains on sales of
property
|
|
(265)
|
|
|
(140)
|
|
Provision for doubtful
accounts
|
|
(2)
|
|
|
(24)
|
|
Stock-based
compensation expense
|
|
417
|
|
|
304
|
|
Deferred income
taxes
|
|
(1,636)
|
|
|
(1,534)
|
|
Net change in fair
value contracts
|
|
(25)
|
|
|
(12)
|
|
Changes in assets
and liabilities:
|
|
|
|
|
Accounts
receivable
|
|
(26,109)
|
|
|
27,103
|
|
Accounts
receivable/payable, affiliates
|
|
(4)
|
|
|
1
|
|
Inventories
|
|
(10,376)
|
|
|
6,570
|
|
Income tax
receivable
|
|
7,442
|
|
|
(4,733)
|
|
Prepayments and other
current assets
|
|
842
|
|
|
262
|
|
Accounts
payable
|
|
63,831
|
|
|
(63,013)
|
|
Accrued
liabilities
|
|
1,235
|
|
|
3,875
|
|
Other
|
|
(614)
|
|
|
55
|
|
Net cash provided by
(used in) operating activities
|
|
52,107
|
|
|
(30,459)
|
|
|
|
|
|
|
Investing
activities:
|
|
|
|
|
Property and equipment
additions
|
|
(3,602)
|
|
|
(2,880)
|
|
Asset
acquisition
|
|
—
|
|
|
(9,137)
|
|
Proceeds from property
sales
|
|
1,316
|
|
|
514
|
|
Insurance and state
collateral refunds
|
|
—
|
|
|
1,129
|
|
Net cash used in
investing activities
|
|
(2,286)
|
|
|
(10,374)
|
|
|
|
|
|
|
Financing
activities:
|
|
|
|
|
Borrowings under Credit
Agreement
|
|
8,000
|
|
|
—
|
|
Principal repayments of
finance lease obligations
|
|
(2,123)
|
|
|
(1,070)
|
|
Payment for financed
portion of VEX acquisition
|
|
(10,000)
|
|
|
—
|
|
Payment of contingent
consideration liability
|
|
—
|
|
|
(111)
|
|
Dividends paid on
common stock
|
|
(2,062)
|
|
|
(2,044)
|
|
Net cash used in
financing activities
|
|
(6,185)
|
|
|
(3,225)
|
|
|
|
|
|
|
Increase
(Decrease) in cash and cash equivalents, including restricted
cash
|
|
43,636
|
|
|
(44,058)
|
|
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
|
|
$
|
95,701
|
|
|
$
|
78,197
|
|
ADAMS RESOURCES
& ENERGY, INC. AND SUBSIDIARIES
|
NON-GAAP
RECONCILIATIONS
|
(In thousands,
except per share data)
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
June
30,
|
|
June
30,
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Reconciliation of
Adjusted Cash Flow to
|
|
|
|
|
|
|
|
|
Net Earnings
(Losses):
|
|
|
|
|
|
|
|
|
Net earnings
(losses)
|
|
$
|
4,709
|
|
|
$
|
3,503
|
|
|
$
|
7,517
|
|
|
$
|
(7,924)
|
|
Add
(subtract):
|
|
|
|
|
|
|
|
|
Income tax (benefit)
provision
|
|
1,484
|
|
|
(492)
|
|
|
2,441
|
|
|
(8,790)
|
|
Depreciation and
amortization
|
|
4,801
|
|
|
4,278
|
|
|
9,854
|
|
|
8,751
|
|
Gains on sales of
property
|
|
(182)
|
|
|
—
|
|
|
(265)
|
|
|
(140)
|
|
Stock-based
compensation expense
|
|
232
|
|
|
170
|
|
|
417
|
|
|
304
|
|
Early retirement and
terminations costs
|
|
—
|
|
|
431
|
|
|
—
|
|
|
431
|
|
Inventory liquidation
gains
|
|
(3,650)
|
|
|
(6,031)
|
|
|
(10,593)
|
|
|
—
|
|
Inventory valuation
losses
|
|
—
|
|
|
—
|
|
|
—
|
|
|
18,184
|
|
Net change in fair
value contracts
|
|
(4)
|
|
|
7
|
|
|
(25)
|
|
|
(12)
|
|
Adjusted cash
flow
|
|
$
|
7,390
|
|
|
$
|
1,866
|
|
|
$
|
9,346
|
|
|
$
|
10,804
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
June
30,
|
|
June
30,
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Adjusted net
(losses) earnings and (losses)
|
|
|
|
|
|
|
|
|
earnings per common
share (Non-GAAP):
|
|
|
|
|
|
|
|
|
Net earnings
(losses)
|
|
$
|
4,709
|
|
|
$
|
3,503
|
|
|
$
|
7,517
|
|
|
$
|
(7,924)
|
|
Add
(subtract):
|
|
|
|
|
|
|
|
|
Gains on sales of
property
|
|
(182)
|
|
|
—
|
|
|
(265)
|
|
|
(140)
|
|
Stock-based
compensation expense
|
|
232
|
|
|
170
|
|
|
417
|
|
|
304
|
|
Early retirement and
terminations costs
|
|
—
|
|
|
431
|
|
|
—
|
|
|
431
|
|
Net change in fair
value contracts
|
|
(4)
|
|
|
7
|
|
|
(25)
|
|
|
(12)
|
|
Inventory liquidation
gains
|
|
(3,650)
|
|
|
(6,031)
|
|
|
(10,593)
|
|
|
—
|
|
Inventory valuation
losses
|
|
—
|
|
|
—
|
|
|
—
|
|
|
18,184
|
|
Tax effect of
adjustments to earnings (losses)
|
|
757
|
|
|
1,139
|
|
|
2,197
|
|
|
(3,941)
|
|
Adjusted net earnings
(losses)
|
|
$
|
1,862
|
|
|
$
|
(781)
|
|
|
$
|
(752)
|
|
|
$
|
6,902
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings
(losses) per common share
|
|
$
|
0.44
|
|
|
$
|
(0.18)
|
|
|
$
|
(0.19)
|
|
|
$
|
1.63
|
|
ADAMS RESOURCES
& ENERGY, INC. AND SUBSIDIARIES
|
NON-GAAP
RECONCILIATIONS
|
(In
thousands)
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
June
30,
|
|
June
30,
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Reconciliation of
Adjusted Cash Flow to Net Cash
Provided by (Used in) Operating Activities:
|
|
|
|
|
|
|
Net cash provided by
(used in) operating activities
|
|
$
|
29,106
|
|
|
$
|
(6,613)
|
|
|
$
|
52,107
|
|
|
$
|
(30,459)
|
|
Add
(subtract):
|
|
|
|
|
|
|
|
|
Income tax provision
(benefit)
|
|
1,484
|
|
|
(492)
|
|
|
2,441
|
|
|
(8,790)
|
|
Deferred income
taxes
|
|
807
|
|
|
(1,155)
|
|
|
1,636
|
|
|
1,534
|
|
Provision for doubtful
accounts
|
|
1
|
|
|
—
|
|
|
2
|
|
|
24
|
|
Early retirement and
terminations costs
|
|
—
|
|
|
431
|
|
|
—
|
|
|
431
|
|
Inventory liquidation
gains
|
|
(3,650)
|
|
|
(6,031)
|
|
|
(10,593)
|
|
|
—
|
|
Inventory valuation
losses
|
|
—
|
|
|
—
|
|
|
—
|
|
|
18,184
|
|
Changes in assets and
liabilities
|
|
(20,358)
|
|
|
15,726
|
|
|
(36,247)
|
|
|
29,880
|
|
Adjusted cash
flow
|
|
$
|
7,390
|
|
|
$
|
1,866
|
|
|
$
|
9,346
|
|
|
$
|
10,804
|
|
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SOURCE Adams Resources & Energy, Inc.