EXHIBIT 99.1 FOR IMMEDIATE RELEASE
Rick Abshire
(713) 881-3609
ADAMS RESOURCES ANNOUNCES SECOND QUARTER EARNINGS
Houston (August 12, 2010)--Adams Resources & Energy, Inc. (NYSE Amex-AE) announced second quarter 2010 unaudited net earnings of $ 1,685,000 or $.39 per common share. Revenues for the quarter totaled $547,141,000. Current earnings compare to unaudited second quarter 2009 net earnings of $2,734,000 or $.65 per common share. For the six months ended June 30, 2010, net earnings were $3,479,000 or $.82 per common share.
Chairman and Chief Executive Officer, K.S. "Bud" Adams, Jr., attributed the 2010 earnings decline to inventory liquidation losses as average crude oil prices fell during the current period. For the three months ended June 30, 2010, crude oil prices fell from the $81 per barrel level to approximately $75 per barrel resulting in a $1.2 million pre-tax charge during the quarter. In contrast, during last year’s second quarter, crude oil prices were increasing which produced $2.7 million of pre-tax inventory liquidation gains. Partially offsetting the adverse impact of the crude oil price change was significant demand improvement within the Company’s transportation segment. Relative to the second quarter of 2009, transportation revenues improved by 33 percent which in turn cause d a 250 percent increase in transportation operating results.
A summary of operating results is as follows:
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| Operating Earnings (Expense) | | | | | | |
| Marketing | | $ | 2,405,000 | | | $ | 6,799,000 | |
| Transportation | | | 2,153,000 | | | | 612,000 | |
| Oil and gas | | | 236,000 | | | | (699,000 | ) |
| Administrative expenses | | | (2,138,000 | ) | | | (2,384,000 | ) |
| | | | 2,656,000 | | | | 4,328,000 | |
| Interest income, net | | | 19,000 | | | | 22,000 | |
| Income tax (provision) | | | (990,000 | ) | | | (1,616,000 | ) |
| | | | | | | | | |
| Net earnings | | $ | 1,685,000 | | | $ | 2,734,000 | |
……………………………………………….
The information in this release includes certain forward-looking statements that are based on assumptions that in the future may prove not to have been accurate. A number of factors could cause actual results or events to differ materially from those anticipated. Such factors include, among others, (a) general economic conditions, (b) fluctuations in hydrocarbon prices and margins, (c) variations between commodity contract volumes and actual delivery volumes, (d) unanticipated environmental liabilities or regulatory changes, (e) counterparty credit default, (f) inability to obtain bank and/or trade credit support, (g) availability and cost of insurance, (h) changes in tax laws, (i) the availability of capital, (j) changes in regulations, (k) results of current items of litigation, (l) uninsured items of litigation or losses , (m) uncertainty in reserve estimates and cash flows, (n) ability to replace oil and gas reserves, (o) security issues related to drivers and terminal facilities, (p) commodity price volatility, (q) demand for chemical based trucking operations, (r) successful completion of drilling activity, (s) financial soundness of customers and suppliers and (t) adverse world economic conditions. These and other risks are described in the Company’s reports that are on file with the Securities and Exchange Commission.
| UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS | |
(In thousands, except per share data) | |
| | |
| | | Six Months Ended | | | Three Months Ended | |
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Revenues | | $ | 1,080,926 | | | $ | 855,211 | | | $ | 547,141 | | | $ | 515,070 | |
| | | | | | | | | | | | | | | | | |
Costs, expenses and other | | | (1,075,696 | ) | | | (848,035 | ) | | | (544,466 | ) | | | (510,720 | ) |
Income tax (provision) | | | (1,751 | ) | | | (2,572 | ) | | | (990 | ) | | | (1,616 | ) |
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Net earnings | | $ | 3,479 | | | $ | 4,604 | | | $ | 1,685 | | | $ | 2,734 | |
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| Basic and diluted net earnings | | | | | | | | | | | | | | | | |
per common share | | $ | .82 | | | $ | 1.09 | | | $ | .39 | | | $ | .65 | |
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Dividends per common share | | $ | - | | | $ | - | | | $ | - | | | $ | - | |
| UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET | |
| (In thousands) | |
| | | June 30, | | | December 31, | |
| | | | | | | |
| | | | | | | |
| ASSETS | | | | | | |
| Cash | | $ | 38,180 | | | $ | 16,806 | |
| Other current assets | | | 164,886 | | | | 185,757 | |
| Total current assets | | | 203,066 | | | | 202,563 | |
| | | | | | | | | |
| Net property & equipment | | | 43,776 | | | | 42,305 | |
| Deposits and other assets | | | 4,350 | | | | 4,533 | |
| | | $ | 251,192 | | | $ | 249,401 | |
| | | | | | | | | |
| LIABILITIES AND EQUITY | | | | | | | | |
| Total current liabilities | | $ | 162,470 | | | $ | 164,191 | |
| Other long-term liabilities | | | 1,442 | | | | 1,409 | |
| Shareholders’ equity | | | 87,280 | | | | 83,801 | |
| | | $ | 251,192 | | | $ | 249,401 | |
