Adams Resources & Energy, Inc. Announces Results For First Quarter 2018 And Declares Quarterly Dividend
Adams Resources & Energy, Inc. Announces Results For First Quarter 2018 And Declares Quarterly Dividend
HOUSTON, May 9, 2018 /PRNewswire/ -- Adams Resources & Energy, Inc. (NYSE AMERICAN: AE) ("Adams" or the "Company") today announced its financial results for the three months ended March 31, 2018.
The Company reported net earnings of $1.1 million, or $0.27 per common share, on revenues of $387.3 million for the first quarter of 2018, compared to a net loss of $0.9 million, or ($0.20) per common share, on revenues of $303.1 million for the first quarter of 2017. On an adjusted basis, net earnings were $0.7 million, or $0.16 per common share, for the first quarter of 2018, compared to a net loss of $0.7 million, or ($0.17) per common share, for the first quarter of 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.
First Quarter 2018 Highlights:
-- Gross revenues of approximately $387.3 million for the first quarter of
2018 compared to $303.1 million for the first quarter of 2017
-- Our crude oil marketing subsidiary, GulfMark Energy, Inc., marketed
approximately 65,194 per day ("bpd") of crude oil during the first
quarter of 2018, compared to 66,374 bpd of crude oil during the first
quarter of 2017
-- Cash and cash equivalents increased 2 percent from December 31, 2017
levels of $109.4 million to over $111.5 million at March 31, 2018
-- $59.6 million of undrawn capacity under our letter of credit facility at
March 31, 2018
-- Generated adjusted cash flow of $3.3 million for the first quarter of
2018 compared to $2.8 million for the first quarter of 2017
-- Approximately 296,808 barrels of crude oil inventory at March 31, 2018
compared to 198,011 barrels at December 31, 2017
-- Dividend of $0.22 per share for the first quarter of 2018
-- No short or long term debt as of March 31, 2018
"During the first quarter of 2018, Service Transport generated improved financial and operating results as our revenue per mile increased 6 percent from the fourth quarter of 2017 and 12 percent from the first quarter of 2017," said Townes G. Pressler, Executive Chairman. "As demand continues to increase in this segment, we are making strides in improving trucking rates as we continue to provide superior service to our customers at Service Transport."
"At GulfMark, volumes have decreased slightly in the first quarter of 2018, compared to the first quarter of 2017, but the decline was mainly in areas that we elected to exit due to very thin margins, and consequently, our overall marketing margins have increased as a result."
"During 2018, we plan to remain focused on increasing margins in our crude oil marketing division, disciplined replacement of aging tractors and right sizing our tractor and trailer fleets, improving company-wide driver retention and increasing driver count, and exploring growth opportunities in our core businesses, both organically and in the open market," continued Pressler.
Capital Investments and Dividends
During the first quarter of 2018, the Company recorded approximately $0.9 million of capital costs and paid dividends of $0.9 million ($0.22 per share). The majority of the capital costs relate to construction of a pipeline connection at our GulfMark Energy subsidiary.
The Company's Board of Directors also declared a quarterly cash dividend for the first quarter of 2018 in the amount of $0.22 per common share, payable on June 15, 2018 to shareholders of record as of June 1, 2018.
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 and ISO tank container storage and transportation. 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: Sharon C. Davis
EVP, Interim Chief Financial Officer
sharond@adamsresources.com
(713) 881-3674
ADAMS RESOURCES & ENERGY, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Three Months Ended
March 31,
2018 2017
---- ----
Revenues:
Marketing $373,638 $288,615
Transportation 13,618 13,455
Oil and
natural
gas - 1,017
--- -----
Total
revenues 387,256 303,087
------- -------
Costs and expenses:
Marketing 369,183 285,153
Transportation 12,301 12,162
Oil and
natural
gas - 750
General
and
administrative 2,283 2,637
Depreciation,
depletion
and
amortization 2,412 3,969
----- -----
Total
costs
and
expenses 386,179 304,671
------- -------
Operating
earnings
(losses) 1,077 (1,584)
Other income (expense):
Interest
income 387 159
Interest
expense (19) (1)
--- ---
Total
other
income
(expense),
net 368 158
(Losses)
earnings
before
income
taxes 1,445 (1,426)
Income
tax
benefit
(provision) (307) 566
---- ---
Net
(losses)
earnings $1,138 $(860)
====== =====
Earnings (losses) per
share:
$0.27 $(0.20)
Basic and diluted
net (losses)
earnings per common
share
Weighted average
number of common
shares outstanding 4,218 4,218
===== =====
Dividends
per
common
share $0.22 $0.22
===== =====
ADAMS RESOURCES & ENERGY, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
March 31, December 31,
2018 2017
---- ----
ASSETS
Current assets:
Cash and cash
equivalents $111,536 $109,393
Accounts
receivable,
net of
allowance for
doubtful
accounts 117,153 121,353
Inventory 19,267 12,192
Derivative
assets 312 166
Income tax
receivable 437 1,317
Prepayments and
other current
assets 1,111 1,264
----- -----
Total current
assets 249,816 245,685
------- -------
Property and
equipment, net 27,744 29,362
Investments in
unconsolidated
affiliates 425 425
Cash deposits
and other 6,523 7,232
----- -----
Total assets $284,508 $282,704
======== ========
LIABILITIES AND SHAREHOLDERS'
EQUITY
Current liabilities:
Accounts
payable $126,044 $124,706
Accounts
payable -
related party 5 5
Derivative
liabilities 289 145
Current portion
of capital
lease
obligations 341 338
Other current
liabilities 5,255 4,404
----- -----
Total current
liabilities 131,934 129,598
------- -------
Other long-term liabilities:
Asset
retirement
obligations 1,334 1,273
Capital lease
obligations 1,265 1,351
Deferred taxes
and other
liabilities 2,646 3,363
----- -----
Total
liabilities 137,179 135,585
------- -------
Commitments and contingencies
Shareholders'
equity 147,329 147,119
Total
liabilities
and
shareholders'
equity $284,508 $282,704
======== ========
ADAMS RESOURCES & ENERGY, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Three Months Ended
March 31,
2018 2017
---- ----
Operating activities:
Net (losses)
earnings $1,138 $(860)
Adjustments to reconcile net
(losses) earnings to net cash
provided by operating
activities:
Depreciation,
depletion
and
amortization 2,412 3,969
Gains
(losses) on
sales of
property (26) 7
Impairment
of oil and
natural gas
properties - 3
Deferred
income
taxes (709) 60
Net change
in fair
value
contracts (2) (420)
Changes in assets and
liabilities:
Accounts
receivable 4,200 (1,968)
Inventories (7,075) (7,557)
Income tax
receivable 880 (736)
Prepayments
and other
current
assets 153 744
Accounts
payable 1,377 17,746
Accrued
liabilities 851 1,084
Other 86 78
--- ---
Net cash
provided by
(used in)
operating
activities 3,285 12,150
----- ------
Investing activities:
Property and
equipment
additions (866) (1,006)
Proceeds
from
property
sales 132 39
Insurance
and state
collateral
refunds 603 476
--- ---
Net cash
used in
investing
activities (131) (491)
---- ----
Financing activities:
Principal
repayments
of capital
lease
obligations (83) -
Dividends
paid on
common
stock (928) (928)
---- ----
Net cash
used in
financing
activities (1,011) (928)
------ ----
Increase in
cash and
cash
equivalents 2,143 10,731
Cash and
cash
equivalents
at
beginning
of period 109,393 87,342
------- ------
Cash and
cash
equivalents
at end of
period $111,536 $98,073
======== =======
ADAMS RESOURCES & ENERGY, INC. AND SUBSIDIARIES
NON-GAAP RECONCILIATIONS
(In thousands, except per share data)
Three Months Ended
March 31,
2018 2017
---- ----
Reconciliation of Adjusted Cash Flow to Net (Losses) Earnings:
Net (losses)
earnings $1,138 $(860)
Income tax
benefit
(provision) 307 (566)
Depreciation,
depletion and
amortization 2,412 3,969
Gains (losses) on
sales of
property (26) 7
Impairment of oil
and natural gas
properties - 3
Inventory
liquidation
gains (552) -
Inventory
valuation losses - 658
Net change in
fair value
contracts (2) (420)
Adjusted cash
flow $3,277 $2,791
====== ======
Three Months Ended
March 31,
2018 2017
---- ----
Adjusted net (losses) earnings
and (losses) earnings per
common share (Non-GAAP):
Net (losses) earnings $1,138 $(860)
Add (subtract):
Gains (losses) on sales of
property (26) 7
Impairment of oil and natural
gas properties - 3
Net change in fair value of
contracts (2) (420)
Inventory liquidation gains (552) -
Inventory valuation losses - 658
Tax effect of adjustments to
(losses) earnings 122 (87)
--- ---
Adjusted net (losses) earnings $680 $(699)
==== =====
Adjusted (losses) earnings per
common share $0.16 $(0.17)
===== ======
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SOURCE Adams Resources & Energy, Inc.
