EXHIBIT 99.1
Rick Abshire
(713) 881-3609
FOR IMMEDIATE RELEASE
ADAMS RESOURCES ANNOUNCES FIRST QUARTER 2014 EARNINGS AND DIVIDEND
Houston (May 9, 2014) -- Adams Resources & Energy, Inc., (NYSE MKT - AE), announced first quarter 2014 unaudited net earnings of $5,363,000 or $1.27 per common share on revenues of $949,189,000. This compares to unaudited first quarter 2013 net earnings of $8,015,000 or $1.90 per common share. Net cash provided by operating activities totaled $35,411,000 for the three-month period ended March 31, 2014.
Frank T. “Chip” Webster, President and Chief Executive Officer, attributed the earnings reduction to narrowed unit margins within the Company’s crude oil marketing business. During 2013, the Company benefitted from underdeveloped infrastructure in the South Texas supply region caused by the establishment of new field production from the Eagle Ford trend. In 2014, the supply-demand balance stabilized causing unit margins to revert to more historically typical levels.
A summary of operating results follows:
| | | | |
| | | | | | | |
| Operating Earnings (Expense) | | | | | | |
| Crude oil marketing | | $ | 9,370,000 | | | $ | 13,434,000 | |
| Transportation | | | 1,175,000 | | | | 1,398,000 | |
| Oil and gas | | | 121,000 | | | | (131,000 | ) |
| Administrative expenses | | | (2,254,000 | ) | | | (2,032,000 | ) |
| | | | 8,412,000 | | | | 12,669,000 | |
| Interest income (expense), net | | | 42,000 | | | | 36,000 | |
| Income tax (provision) benefit | | | (3,091,000 | ) | | | (4,632,000 | ) |
| Discontinued operation earnings (loss) | | | - | | | | (58,000 | ) |
| Net earnings | | $ | 5,363,000 | | | $ | 8,015,000 | |
The Company also announced that its Board of Directors declared a quarterly cash dividend in the amount of $.22 (twenty-two cents) per common share, payable on June 17, 2014 to shareholders of record as of June 3, 2014.
The Company’s quarterly report on Form 10-Q for the period ended March 31, 2014 will be filed with the Securities and Exchange Commission on May 12, 2014 and will be available on the Company’s website at “adamsresources.com”.
……………………………………………….
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 EARNINGS | |
(In thousands, except per share data) | |
| | | | |
| | | March 31, | | | March 31, | |
| | | | | | | |
| | | | | | | |
| Revenues | | $ | 949,189 | | | $ | 952,435 | |
| | | | | | | | | |
| Costs, expenses and other | | | (940,735 | ) | | | (939,730 | ) |
| Income tax (provision) | | | (3,091 | ) | | | (4,632 | ) |
| | | | | | | | | |
| Earnings from continuing operations | | | 5,363 | | | | 8,073 | |
| Earnings (loss) from discontinued operations | | | - | | | | (58 | ) |
| Net earnings | | $ | 5,363 | | | $ | 8,015 | |
| | | | | | | | | |
| Earnings (loss) per share: | | | | | | | | |
| From continuing operations | | $ | 1.27 | | | $ | 1.91 | |
| From discontinued operations | | | - | | | | (.01 | ) |
| Basic and diluted net earnings per common share | | | 1.27 | | | | 1.90 | |
| | | | | | | | | |
| Dividends per common share | | $ | .22 | | | $ | - | |
| UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET | |
(In thousands) | |
| | | March 31, | | | December 31, | |
| | | | | | | |
| | | | | | | |
| ASSETS | | | | | | |
| Cash and marketable securities | | $ | 87,379 | | | $ | 60,733 | |
| Other current assets | | | 280,563 | | | | 290,997 | |
| Total current assets | | | 367,942 | | | | 351,730 | |
| | | | | | | | | |
| Net property & equipment | | | 91,908 | | | | 91,865 | |
| Deposits and other assets | | | 4,762 | | | | 4,487 | |
| | | $ | 464,612 | | | $ | 448,082 | |
| | | | | | | | | |
| LIABILITIES AND EQUITY | | | | | | | | |
| Total current liabilities | | $ | 284,829 | | | $ | 272,169 | |
| Deferred tax and other liabilities | | | 20,663 | | | | 21,228 | |
| Shareholders’ equity | | | 159,120 | | | | 154,685 | |
| | | $ | 464,612 | | | $ | 448,082 | |
