Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2019 | Aug. 01, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 1-07908 | |
Entity Registrant Name | ADAMS RESOURCES & ENERGY, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 74-1753147 | |
Entity Address, Address Line One | 17 South Briar Hollow Lane | |
Entity Address, Address Line Two | Suite 100 | |
Entity Address, City or Town | Houston | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77027 | |
City Area Code | 713 | |
Local Phone Number | 881-3600 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | AE | |
Security Exchange Name | NYSEAMER | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 4,233,587 | |
Document Fiscal Year Focus | 2019 | |
Entity Central Index Key | 0000002178 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
UNAUDITED CONDENSED CONSOLIDATE
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 127,670 | $ 117,066 |
Restricted cash | 4,876 | 0 |
Accounts receivable, net of allowance for doubtful accounts of $117 and $153, respectively | 74,499 | 85,197 |
Accounts receivable – related party | 0 | 425 |
Inventory | 19,977 | 22,779 |
Derivative assets | 240 | 162 |
Income tax receivable | 2,217 | 2,404 |
Prepayments and other current assets | 1,828 | 1,557 |
Total current assets | 231,307 | 229,590 |
Property and equipment, net | 55,555 | 44,623 |
Operating lease right-of-use assets | 10,093 | |
Intangible assets | 1,936 | 0 |
Cash deposits and other assets | 2,873 | 4,657 |
Total assets | 301,764 | 278,870 |
Current liabilities: | ||
Accounts payable | 116,983 | 116,068 |
Accounts payable – related party | 6 | 29 |
Derivative liabilities | 236 | 139 |
Current portion of finance lease obligations | 2,116 | 883 |
Current portion of operating lease liabilities | 2,097 | |
Other current liabilities | 9,913 | 6,148 |
Total current liabilities | 131,351 | 123,267 |
Other long-term liabilities: | ||
Asset retirement obligations | 1,550 | 1,525 |
Finance lease obligations | 5,473 | 3,209 |
Operating lease liabilities | 7,999 | |
Deferred taxes and other liabilities | 5,283 | 4,271 |
Total liabilities | 151,656 | 132,272 |
Commitments and contingencies (Note 14) | ||
Shareholders’ equity: | ||
Preferred stock - $1.00 par value, 960,000 shares authorized, none outstanding | 0 | 0 |
Common stock - $0.10 par value, 7,500,000 shares authorized, 4,233,587 and 4,217,596 shares outstanding, respectively | 423 | 422 |
Contributed capital | 12,497 | 11,948 |
Retained earnings | 137,188 | 134,228 |
Total shareholders’ equity | 150,108 | 146,598 |
Total liabilities and shareholders’ equity | $ 301,764 | $ 278,870 |
UNAUDITED CONDENSED CONSOLIDA_2
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Allowance for doubtful accounts | $ 117 | $ 153 |
Shareholders’ equity: | ||
Preferred stock - par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock - shares authorized (in shares) | 960,000 | 960,000 |
Preferred stock - shares outstanding (in shares) | 0 | 0 |
Common stock - par value (in dollars per share) | $ 0.10 | $ 0.10 |
Common stock - shares authorized (in shares) | 7,500,000 | 7,500,000 |
Common stock - shares outstanding (in shares) | 4,233,587 | 4,217,596 |
UNAUDITED CONDENSED CONSOLIDA_3
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenues: | ||||
Total revenues | $ 484,433 | $ 452,417 | $ 929,601 | $ 839,673 |
Costs and expenses: | ||||
General and administrative | 2,582 | 2,284 | 5,266 | 4,567 |
Depreciation and amortization | 4,284 | 2,262 | 7,873 | 4,674 |
Total costs and expenses | 485,076 | 448,119 | 924,991 | 834,298 |
Operating (losses) earnings | (643) | 4,298 | 4,610 | 5,375 |
Other income (expense): | ||||
Gain on dissolution of investment | 75 | 0 | 573 | 0 |
Interest income | 731 | 498 | 1,387 | 885 |
Interest expense | (117) | (15) | (182) | (34) |
Total other income (expense), net | 689 | 483 | 1,778 | 851 |
Earnings before income taxes | 46 | 4,781 | 6,388 | 6,226 |
Income tax provision | (40) | (1,161) | (1,474) | (1,468) |
Net earnings | $ 6 | $ 3,620 | $ 4,914 | $ 4,758 |
Earnings per share: | ||||
Basic net earnings per common share (in dollars per share) | $ 0 | $ 0.86 | $ 1.16 | $ 1.13 |
Diluted net earnings per common share (in dollars per share) | 0 | 0.86 | 1.16 | 1.13 |
Dividends per common share (in dollars per share) | $ 0.24 | $ 0.22 | $ 0.46 | $ 0.44 |
Marketing | ||||
Revenues: | ||||
Total revenues | $ 467,040 | $ 438,791 | $ 896,801 | $ 812,429 |
Costs and expenses: | ||||
Cost of goods and services sold | 463,774 | 431,683 | 884,315 | 800,866 |
Transportation | ||||
Revenues: | ||||
Total revenues | 17,393 | 13,626 | 32,800 | 27,244 |
Costs and expenses: | ||||
Cost of goods and services sold | $ 14,436 | $ 11,890 | $ 27,537 | $ 24,191 |
UNAUDITED CONDENSED CONSOLIDA_4
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Operating activities: | ||
Net earnings | $ 4,914 | $ 4,758 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation and amortization | 7,873 | 4,674 |
Gains on sales of property | (434) | (446) |
Provision for doubtful accounts | (36) | (32) |
Stock-based compensation expense | 197 | 3 |
Deferred income taxes | 1,012 | (832) |
Net change in fair value contracts | 19 | (3) |
Gain on dissolution of AREC | (573) | 0 |
Changes in assets and liabilities: | ||
Accounts receivable | 11,812 | 2,852 |
Accounts receivable/payable, affiliates | (23) | 0 |
Inventories | 2,802 | (9,321) |
Income tax receivable | 187 | 1,317 |
Prepayments and other current assets | (271) | 67 |
Accounts payable | 1,505 | 15,634 |
Accrued liabilities | 3,765 | 2,441 |
Other | 999 | 125 |
Net cash provided by operating activities | 33,748 | 21,237 |
Investing activities: | ||
Property and equipment additions | (13,121) | (2,728) |
Asset acquisition | (5,611) | 0 |
Proceeds from property sales | 1,287 | 655 |
Proceeds from dissolution of AREC | 998 | 0 |
Insurance and state collateral (deposits) refunds | 774 | 465 |
Net cash used in investing activities | (15,673) | (1,608) |
Financing activities: | ||
Principal repayments of finance lease obligations | (651) | (167) |
Dividends paid on common stock | (1,944) | (1,856) |
Net cash used in financing activities | (2,595) | (2,023) |
Increase in cash and cash equivalents, including restricted cash | 15,480 | 17,606 |
Cash and cash equivalents, including restricted cash, at beginning of period | 117,066 | 109,393 |
Cash and cash equivalents, including restricted cash, at end of period | $ 132,546 | $ 126,999 |
UNAUDITED CONDENSED CONSOLIDA_5
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Contributed Capital | Retained Earnings |
Beginning balance at Dec. 31, 2017 | $ 147,119 | $ 422 | $ 11,693 | $ 135,004 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net earnings | 1,138 | 1,138 | ||
Dividends declared: | ||||
Common stock, $0.22/share | (928) | (928) | ||
Ending balance at Mar. 31, 2018 | 147,329 | 422 | 11,693 | 135,214 |
Beginning balance at Dec. 31, 2017 | 147,119 | 422 | 11,693 | 135,004 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net earnings | 4,758 | |||
Ending balance at Jun. 30, 2018 | 150,024 | 422 | 11,696 | 137,906 |
Beginning balance at Mar. 31, 2018 | 147,329 | 422 | 11,693 | 135,214 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net earnings | 3,620 | 3,620 | ||
Stock-based compensation expense | 3 | 3 | ||
Dividends declared: | ||||
Common stock, $0.22/share | (928) | (928) | ||
Ending balance at Jun. 30, 2018 | 150,024 | 422 | 11,696 | 137,906 |
Beginning balance at Dec. 31, 2018 | 146,598 | 422 | 11,948 | 134,228 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net earnings | 4,908 | 4,908 | ||
Stock-based compensation expense | 123 | 123 | ||
Dividends declared: | ||||
Common stock, $0.22/share | (928) | (928) | ||
Awards under LTIP, $0.22/share | (2) | (2) | ||
Ending balance at Mar. 31, 2019 | 150,699 | 422 | 12,071 | 138,206 |
Beginning balance at Dec. 31, 2018 | 146,598 | 422 | 11,948 | 134,228 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net earnings | 4,914 | |||
Ending balance at Jun. 30, 2019 | 150,108 | 423 | 12,497 | 137,188 |
Beginning balance at Mar. 31, 2019 | 150,699 | 422 | 12,071 | 138,206 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net earnings | 6 | 6 | ||
Stock-based compensation expense | 74 | 74 | ||
Issuance of common shares for acquisition | 392 | 1 | 391 | |
Cancellation of shares withheld to cover taxes upon vesting of restricted awards | (39) | (39) | ||
Dividends declared: | ||||
Common stock, $0.22/share | (1,016) | (1,016) | ||
Awards under LTIP, $0.22/share | (8) | (8) | ||
Ending balance at Jun. 30, 2019 | $ 150,108 | $ 423 | $ 12,497 | $ 137,188 |
UNAUDITED CONDENSED CONSOLIDA_6
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |
Jun. 30, 2019 | Mar. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends per common share (in dollars per share) | $ 0.24 | $ 0.22 |
Awards under LTIP (in dollars per share) | $ 0.24 | $ 0.22 |
Organization and Basis of Prese
Organization and Basis of Presentation | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Basis of Presentation | Organization and Basis of Presentation Organization Adams Resources & Energy, Inc. (“AE”) is a publicly traded Delaware corporation organized in 1973, the common shares of which are listed on the NYSE American LLC under the ticker symbol “AE”. We, through our subsidiaries, are primarily engaged in the business of crude oil marketing, transportation and storage in various crude oil and natural gas basins in the lower 48 states of the United States (“U.S.”). We also conduct tank truck transportation of liquid chemicals and dry bulk primarily in the lower 48 states of the U.S. with deliveries into Canada and Mexico, and with terminals in the Gulf Coast region of the U.S. Unless the context requires otherwise, references to “we,” “us,” “our,” the “Company” or “AE” are intended to mean the business and operations of Adams Resources & Energy, Inc. and its consolidated subsidiaries. We operate and report in two business segments: (i) crude oil marketing, transportation and storage, and (ii) tank truck transportation of liquid chemicals and dry bulk. Basis of Presentation Our results of operations for the three and six months ended June 30, 2019 are not necessarily indicative of results expected for the full year of 2019. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments consisting of normal recurring accruals necessary for fair presentation. The condensed consolidated financial statements and the accompanying notes are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial statements and the rules of the U.S. Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures required by GAAP for complete annual financial statements have been omitted and, therefore, these interim financial statements should be read in conjunction with our audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2018 (the “2018 Form 10-K”) filed with the SEC on March 8, 2019. All significant intercompany transactions and balances have been eliminated in consolidation. Use of Estimates |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Cash, Cash Equivalents and Restricted Cash Restricted cash represents an amount held in a segregated bank account by Wells Fargo as collateral for amounts outstanding under our letter of credit facility. In June 2019, the amount of outstanding letters of credit under our letter of credit facility exceeded the borrowing base as defined in the letter of credit facility agreement. As a result, we were required to deposit cash with the lender as security for the outstanding letters of credit. See “Letter of Credit Facility” within this Note 2 for further information. Our borrowing base is based on our net receivable balance, and due to customer prepayments, our borrowing base as outlined in the letter of credit facility did not fully support the outstanding letters of credit that have been issued. As a result, on July 1, 2019, we canceled the letter of credit facility, and secured the outstanding letters of credit with our restricted cash balance. The following table provides a reconciliation of cash and cash equivalents and restricted cash as reported with the unaudited condensed consolidated balance sheet that totals to the amounts shown in the unaudited condensed consolidated statements of cash flow (in thousands): June 30, 2019 Cash and cash equivalents $ 127,670 Restricted cash 4,876 Total cash, cash equivalents and restricted cash shown in the unaudited condensed consolidated statements of cash flow $ 132,546 Earnings Per Share Basic earnings (losses) per share is computed by dividing our net earnings (losses) by the weighted average number of shares of common stock outstanding during the period. Diluted earnings (losses) per share is computed by giving effect to all potential shares of common stock outstanding, including our stock related to unvested restricted stock unit awards. Unvested restricted stock unit awards granted under the Adams Resources & Energy, Inc. 2018 Long-Term Incentive Plan (“2018 LTIP”) are not considered to be participating securities as the holders of these shares do not have non-forfeitable dividend rights in the event of our declaration of a dividend for common shares (see Note 10 for further discussion). A reconciliation of the calculation of basic and diluted earnings per share is as follows (in thousands, except per share data): Three Months Ended Six Months Ended 2019 2018 2019 2018 Earnings per share — numerator: Net earnings $ 6 $ 3,620 $ 4,914 $ 4,758 Denominator: Basic weighted average number of shares 4,227 4,218 4,223 4,218 Basic earnings per share $ — $ 0.86 $ 1.16 $ 1.13 Diluted earnings per share: Diluted weighted average number of shares Common shares 4,227 4,218 4,223 4,218 Restricted stock unit awards — — 6 — Performance share unit awards (1) — — — — Total 4,227 4,218 4,229 4,218 Diluted earnings per share $ — $ 0.86 $ 1.16 $ 1.13 _______________ (1) The dilutive effect of performance share awards are included in the calculation of diluted earnings per share when the performance share award performance conditions have been achieved. The performance conditions for the performance share unit awards granted in 2018 were achieved as of December 31, 2018. For the three and six months ended June 30, 2019, the effect of the performance share awards on earning per share is anti-dilutive. Fair Value Measurements The carrying amounts reported in the unaudited condensed consolidated balance sheets for cash and cash equivalents, accounts receivable and accounts payable approximates fair value because of the immediate or short-term maturity of these financial instruments. Marketable securities are recorded at fair value based on market quotations from actively traded liquid markets. A three-tier hierarchy has been established that classifies fair value amounts recognized in the financial statements based on the observability of inputs used to estimate these fair values. The hierarchy considers fair value amounts based on observable inputs (Levels 1 and 2) to be more reliable and predictable than those based primarily on unobservable inputs (Level 3). At each balance sheet reporting date, we categorize our financial assets and liabilities using this hierarchy. Fair value contracts consist of derivative financial instruments and are recorded as either an asset or liability measured at its fair value. Changes in fair value are recognized immediately in earnings unless the derivatives qualify for, and we elect, cash flow hedge accounting. We had no contracts designated for hedge accounting during any current reporting periods (see Note 10 for further information). Income Taxes Income taxes are accounted for using the asset and liability method. Under this approach, deferred tax assets and liabilities are recognized based on anticipated future tax consequences attributable to differences between financial statement carrying amounts of these items and their respective tax basis. Letter of Credit Facility We maintained a Credit and Security Agreement with Wells Fargo Bank, National Association to provide for the issuance of up to $60.0 million in stand-by letters of credit primarily used to support crude oil purchases within our crude oil marketing segment and for other purposes. We used the letter of credit facility for letters of credit related to our insurance program. This facility was collateralized by the eligible accounts receivable within our crude oil marketing segment and expires on August 30, 2019. The issued stand-by letters of credit were canceled as the underlying purchase obligations were satisfied by cash payment when due. The letter of credit facility placed certain restrictions on GulfMark Energy, Inc., one of our wholly owned subsidiaries. These restrictions included the maintenance of positive net earnings excluding inventory valuation changes, as defined, among other restrictions. At June 30, 2019 and December 31, 2018, we had $4.6 million and $4.6 million, respectively, of letters of credit outstanding under this facility. On July 1, 2019, we canceled the letter of credit facility, and secured the outstanding letters of credit with our restricted cash balance. Property and Equipment Property and equipment is recorded at cost. Expenditures for additions, improvements and other enhancements to property and equipment are capitalized, and minor replacements, maintenance and repairs that do not extend asset life or add value are charged to expense as incurred. When property and equipment assets are retired or otherwise disposed of, the related cost and accumulated depreciation is removed from the accounts and any resulting gain or loss is included in results of operations in operating costs and expenses for the respective period. Property and equipment, except for land, is depreciated using the straight-line method over the estimated average useful lives ranging from two We review our long-lived assets for impairment whenever there is evidence that the carrying value of these assets may not be recoverable. Any impairment recognized is permanent and may not be restored. Property and equipment is reviewed at the lowest level of identifiable cash flows. For properties requiring impairment, the fair value is estimated based on an internal discounted cash flow model of future cash flows. See Note 5 for additional information regarding our property and equipment. Stock-Based Compensation We measure all share-based payments, including the issuance of restricted stock units and performance share units to employees and board members, using a fair-value based method. The cost of services received from employees and non-employee board members in exchange for awards of equity instruments is recognized in the consolidated statement of operations based on the estimated fair value of those awards on the grant date and amortized on a straight-line basis over the requisite service period. The fair value of restricted stock unit awards and performance share unit awards is based on the closing price of our common stock on the grant date. We account for forfeitures as they occur. See Note 11 for additional information regarding our 2018 LTIP. Common Shares Outstanding The following table reconciles our outstanding common stock for the periods indicated: Common shares Balance, January 1, 2019 4,217,596 Vesting of restricted stock unit awards 375 Balance, March 31, 2019 4,217,971 Issuance of shares in acquisition (see Note 6) 11,145 Vesting of restricted stock unit awards (see Note 11) 5,354 Shares withheld to cover taxes upon vesting of restricted stock unit awards (883) Balance, June 30, 2019 4,233,587 |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Revenue Disaggregation The following table disaggregates our revenue by segment and by major source for the periods indicated (in thousands): Reporting Segments Marketing Transportation Total Three Months Ended June 30, 2019 Revenues from contracts with customers $ 390,407 $ 17,393 $ 407,800 Other (1) 76,633 — 76,633 Total revenues $ 467,040 $ 17,393 $ 484,433 Timing of revenue recognition: Goods transferred at a point in time $ 390,407 $ — $ 390,407 Services transferred over time — 17,393 17,393 Total revenues from contracts with customers $ 390,407 $ 17,393 $ 407,800 Three Months Ended June 30, 2018 Revenues from contracts with customers $ 419,365 $ 13,626 $ 432,991 Other (1) 19,426 — 19,426 Total revenues $ 438,791 $ 13,626 $ 452,417 Timing of revenue recognition: Goods transferred at a point in time $ 419,365 $ — $ 419,365 Services transferred over time — 13,626 13,626 Total revenues from contracts with customers $ 419,365 $ 13,626 $ 432,991 Six Months Ended June 30, 2019 Revenues from contracts with customers $ 751,138 $ 32,800 $ 783,938 Other (1) 145,663 — 145,663 Total revenues $ 896,801 $ 32,800 $ 929,601 Timing of revenue recognition: Goods transferred at a point in time $ 751,138 $ — $ 751,138 Services transferred over time — 32,800 32,800 Total revenues from contracts with customers $ 751,138 $ 32,800 $ 783,938 Six Months Ended June 30, 2018 Revenues from contracts with customers $ 779,450 $ 27,244 $ 806,694 Other (1) 32,979 — 32,979 Total revenues $ 812,429 $ 27,244 $ 839,673 Timing of revenue recognition: Goods transferred at a point in time $ 779,450 $ — $ 779,450 Services transferred over time — 27,244 27,244 Total revenues from contracts with customers $ 779,450 $ 27,244 $ 806,694 _______________ (1) Other marketing revenues are recognized under ASC 815, Derivatives and Hedging , and ASC 845, Nonmonetary Transactions – Purchases and Sales of Inventory with the Same Counterparty . Other Marketing Revenue Certain of the commodity purchase and sale contracts utilized by our crude oil marketing business qualify as derivative instruments with certain specifically identified contracts also designated as trading activity. From the time of contract origination, these contracts are marked-to-market and recorded on a net revenue basis in the accompanying consolidated financial statements. Certain of our crude oil contracts may be with a single counterparty to provide for similar quantities of crude oil to be bought and sold at different locations. These contracts are entered into for a variety of reasons, including effecting the transportation of the commodity, to minimize credit exposure, and/or to meet the competitive demands of the customer. These buy/sell arrangements are reflected on a net revenue basis in the accompanying consolidated financial statements. Reporting these crude oil contracts on a gross revenue basis would increase our reported revenues as follows for the periods indicated (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Revenue gross-up $ 223,043 $ 56,335 $ 465,166 $ 102,026 |
Prepayments and Other Current A
Prepayments and Other Current Assets | 6 Months Ended |
Jun. 30, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepayments and Other Current Assets | Prepayments and Other Current Assets The components of prepayments and other current assets were as follows at the dates indicated (in thousands): June 30, December 31, 2019 2018 Insurance premiums $ 705 $ 677 Rents, licenses and other 1,123 880 Total $ 1,828 $ 1,557 |
Property and Equipment
Property and Equipment | 6 Months Ended |
Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment The historical costs of our property and equipment and related accumulated depreciation balances were as follows at the dates indicated (in thousands): Estimated Useful Life June 30, December 31, in Years 2019 2018 Tractors and trailers (1) 5 – 6 $ 106,046 $ 96,523 Field equipment (2) 2 – 20 24,895 20,725 Buildings 5 – 39 16,003 15,746 Office equipment 2 – 5 1,923 1,863 Land 1,790 1,790 Construction in progress 2,538 2,794 Total 153,195 139,441 Less accumulated depreciation (97,640) (94,818) Property and equipment, net $ 55,555 $ 44,623 _______________ (1) Amounts include assets held under finance leases for certain tractors in our marketing segment. Gross property and equipment associated with these assets held under finance leases were $5.5 million and $4.7 million at June 30, 2019 and December 31, 2018, respectively. Accumulated amortization associated with assets held under these finance leases were $1.2 million and $0.7 million at June 30, 2019 and December 31, 2018, respectively (see Note 13 for further information). (2) At June 30, 2019, amount includes assets held under finance leases for certain tank storage and throughput arrangements in our marketing segment. Gross property and equipment associated with these assets held under finance leases were $3.3 million. Accumulated amortization associated with these assets held under finance leases was $0.2 million (see Note 13 for further information). Components of depreciation and amortization expense were as follows for the periods indicated (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Depreciation and amortization, excluding amounts under finance leases $ 3,828 $ 2,171 $ 7,172 $ 4,493 Amortization of property and equipment under finance leases 456 91 701 181 Total depreciation and amortization $ 4,284 $ 2,262 $ 7,873 $ 4,674 |
Assets Acquisition
Assets Acquisition | 6 Months Ended |
Jun. 30, 2019 | |
Asset Acquisition [Abstract] | |
Asset Acquisition | Asset AcquisitionOn April 10, 2019, we entered into a purchase and sale agreement with EH Transport, Inc. and affiliates (collectively, “EH Transport”), a Houston, Texas based bulk carrier trucking company, for the purchase of certain transportation assets. On May 6, 2019, we closed on the asset acquisition for approximately $6.4 million, which consisted of $5.6 million in cash after post-closing adjustments related to equipment qualifications, 11,145 of our common shares valued at $0.4 million and contingent consideration valued at approximately $0.4 million. This acquisition added approximately 39 tractors and 53 trailers to our existing transportation fleet, and these assets will be included in our transportation segment. This acquisition adds new customers and new product lines to our transportation segment portfolio, which allows us to grow into new markets. In addition to general chemical products, we expect to haul liquefied petroleum gas, asphalt, bleach and crude oil for customers. We incurred approximately $0.1 million of acquisition costs in connection with this acquisition, which has been included in the allocation of the purchase price to the assets acquired. The following table summarizes the consideration paid for the EH Transport assets and the estimated fair value of the assets acquired at the acquisition date (in thousands): Consideration: Cash $ 5,611 Value of AE common shares issued 392 Contingent consideration arrangement 431 Fair value of total consideration transferred $ 6,434 Recognized amounts of identifiable assets acquired: Property and equipment — tractors and trailers $ 4,408 Shop, office and telecommunication equipment 19 Intangible assets — customer relationships 2,007 Total purchase price $ 6,434 The fair market value of the common shares issued in this transaction was determined based upon the closing share price of AE common stock on May 6, 2019 of $35.15. We assumed no liabilities in this acquisition. The estimated fair value of the acquired property and equipment was determined using the estimated market value of each type of asset. The estimated fair value of the acquired customer relationship intangible assets was determined using an income approach, specifically a discounted cash flow analysis. The income approach estimates the future benefits of the customer relationships and deducts the expenses incurred in servicing the relationships and the contributions from the other business assets to derive the future net benefits of these assets. The future net benefits are discounted back to present value using the appropriate discount rate, which results in the value of the customer relationships. A customer relationship intangible asset is the relationship between EH Transport and various customers in which we did not have a previous relationship. The customer relationships we acquired in this transaction provide us with access to those customers in which we did not have a previous relationship and allows us to enter product markets in which we had not previously participated. Because of the highly competitive and fragmented transportation market, we believe access to these customers and product lines will provide us with an entry into new markets. The discounted cash flow analysis used to estimate the fair value of the EH Transport customer relationships relied on Level 3 fair value inputs. Level 3 fair values are based on unobservable inputs. Unobservable inputs are used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset at the measurement date. With respect to the EH Transport customer relationships, the Level 3 inputs include the rate of retention of the current customers of EH Transport as of the valuation date, our transportation segment historical customer retention rate and projected future revenues associated with the customers. The EH Transport customers expected to remain with us after the transaction were included in the valuation of the customer relationships. We expect to amortize the customer relationship intangible assets over a period of seven years, using a modified straight-line approach. |
Cash Deposits and Other Assets
Cash Deposits and Other Assets | 6 Months Ended |
Jun. 30, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Cash Deposits and Other Assets | Cash Deposits and Other Assets Components of cash deposits and other assets were as follows at the dates indicated (in thousands): June 30, December 31, 2019 2018 Amounts associated with liability insurance program: Insurance collateral deposits $ 1,071 $ 1,453 Excess loss fund 821 1,916 Accumulated interest income 527 788 Other amounts: State collateral deposits 61 57 Materials and supplies 393 443 Total $ 2,873 $ 4,657 We have established certain deposits to support participation in our liability insurance program and remittance of state crude oil severance taxes and other state collateral deposits. Insurance collateral deposits are held by the insurance company to cover past or potential open claims based upon a percentage of the maximum assessment under our insurance policies. Insurance collateral deposits are invested at the discretion of our insurance carrier. Excess amounts in our loss fund represent premium payments in excess of claims incurred to date that we may be entitled to recover through settlement or commutation as claim periods are closed. Interest income is earned on the majority of amounts held by the insurance companies and will be paid to us upon settlement of policy years. |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting We operate and report in two business segments: (i) crude oil marketing, transportation and storage, and (ii) tank truck transportation of liquid chemicals and dry bulk. Information concerning our various business activities was as follows for the periods indicated (in thousands): Reporting Segments Marketing Transportation Other Total Three Months Ended June 30, 2019 Revenues $ 467,040 $ 17,393 $ — $ 484,433 Segment operating earnings (1) 962 977 — 1,939 Depreciation and amortization 2,304 1,980 — 4,284 Property and equipment additions (2) 1,348 3,422 — 4,770 Three Months Ended June 30, 2018 Revenues $ 438,791 $ 13,626 $ — $ 452,417 Segment operating earnings (1) 5,772 810 — 6,582 Depreciation and amortization 1,336 926 — 2,262 Property and equipment additions 277 1,572 — 1,849 Six Months Ended June 30, 2019 Revenues $ 896,801 $ 32,800 $ — $ 929,601 Segment operating (losses) earnings (1) 8,060 1,816 — 9,876 Depreciation, depletion and amortization 4,426 3,447 — 7,873 Property and equipment additions (2) 3,002 10,119 — 13,121 Six Months Ended June 30, 2018 Revenues $ 812,429 $ 27,244 $ — $ 839,673 Segment operating (losses) earnings (1) 8,730 1,212 — 9,942 Depreciation, depletion and amortization 2,833 1,841 — 4,674 Property and equipment additions 1,070 1,645 — 2,715 _______________ (1) Our crude oil marketing segment’s operating earnings included inventory valuation losses of $1.0 million and inventory liquidation gains of $1.9 million for the three months ended June 30, 2019 and 2018, respectively. For the six months ended June 30, 2019 and 2018, our marketing segment’s operating earnings included inventory liquidation gains of $3.5 million and $2.5 million, respectively. (2) Our crude oil marketing segment’s property and equipment additions do not include approximately $3.6 million and $4.1 million of tractors and tank storage and throughput arrangements acquired under finance leases during the three and six months ended June 30, 2019, respectively. Segment operating earnings reflect revenues net of operating costs and depreciation and amortization expense and are reconciled to earnings before income taxes, as follows for the periods indicated (in thousands): Three Months Ended Six Months Ended 2019 2018 2019 2018 Segment operating earnings $ 1,939 $ 6,582 $ 9,876 $ 9,942 General and administrative (2,582) (2,284) (5,266) (4,567) Operating earnings (643) 4,298 4,610 5,375 Gain on dissolution of investment 75 — 573 — Interest income 731 498 1,387 885 Interest expense (117) (15) (182) (34) Earnings before income taxes $ 46 $ 4,781 $ 6,388 $ 6,226 Identifiable assets by business segment were as follows at the dates indicated (in thousands): June 30, December 31, 2019 2018 Reporting segment: Marketing $ 113,554 $ 119,370 Transportation 47,688 34,112 Cash and other 140,522 125,388 Total assets $ 301,764 $ 278,870 |
Transactions with Affiliates
Transactions with Affiliates | 6 Months Ended |
Jun. 30, 2019 | |
Related Party Transactions [Abstract] | |
Transactions with Affiliates | Transactions with Affiliates We enter into certain transactions in the normal course of business with affiliated entities including direct cost reimbursement for shared phone and administrative services. In addition, we lease our corporate office space from an affiliated entity. Activities with affiliates were as follows for the periods indicated (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Affiliate billings to us $ 26 $ 25 $ 43 $ 40 Billings to affiliates 1 1 2 3 Rentals paid to affiliate 122 122 244 244 |
Derivative Instruments and Fair
Derivative Instruments and Fair Value Measurements | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Fair Value Measurements | Derivative Instruments and Fair Value Measurements Derivative Instruments In the normal course of our operations, our crude oil marketing segment purchases and sells crude oil. We seek to profit by procuring the commodity as it is produced and then delivering the material to the end users or the intermediate use marketplace. As typical for the industry, these transactions are made pursuant to the terms of forward month commodity purchase and/or sale contracts. Some of these contracts meet the definition of a derivative instrument, and therefore, we account for these contracts at fair value, unless the normal purchase and sale exception is applicable. These types of underlying contracts are standard for the industry and are the governing document for our crude oil marketing segment. None of our derivative instruments have been designated as hedging instruments. At June 30, 2019, we had in place eight commodity purchase and sale contracts, of which six of these contracts had no fair value associated with them as the contractual prices of crude oil were within the range of prices specified in the agreements. These commodity purchase and sale contracts encompassed approximately: • 322 barrels per day of crude oil during July 2019 through August 2019; • 516 barrels per day of crude oil during September 2019 through December 2019; and • 258 barrels per day of crude oil during January 2020 through February 2020. The estimated fair value of forward month commodity contracts (derivatives) reflected in the accompanying unaudited condensed consolidated balance sheet were as follows at the date indicated (in thousands): June 30, 2019 Balance Sheet Location and Amount Current Other Current Other Assets Assets Liabilities Liabilities Asset derivatives: Fair value forward hydrocarbon commodity contracts at gross valuation $ 240 $ — $ — $ — Liability derivatives: Fair value forward hydrocarbon commodity contracts at gross valuation — — 236 — Less counterparty offsets — — — — As reported fair value contracts $ 240 $ — $ 236 $ — At December 31, 2018, we had in place 10 commodity purchase and sale contracts with fair value associated with them as the contractual prices of crude oil were outside of the range of prices specified in the agreements. These commodity purchase and sale contracts encompassed approximately: • 322 barrels per day of crude oil during January 2019 through April 2019; • 258 barrels per day of crude oil during May 2019; • 322 barrels per day of crude oil during June 2019 through August 2019; and • 258 barrels per day of crude oil during September 2019 through December 2019. The estimated fair value of forward month commodity contracts (derivatives) reflected in the accompanying unaudited condensed consolidated balance sheet were as follows at the date indicated (in thousands): December 31, 2018 Balance Sheet Location and Amount Current Other Current Other Assets Assets Liabilities Liabilities Asset derivatives: Fair value forward hydrocarbon commodity contracts at gross valuation $ 162 $ — $ — $ — Liability derivatives: Fair value forward hydrocarbon commodity contracts at gross valuation — — 139 — Less counterparty offsets — — — — As reported fair value contracts $ 162 $ — $ 139 $ — We only enter into commodity contracts with creditworthy counterparties and evaluate our exposure to significant counterparties on an ongoing basis. At June 30, 2019 and December 31, 2018, we were not holding nor have we posted any collateral to support our forward month fair value derivative activity. We are not subject to any credit-risk related trigger events. We have no other financial investment arrangements that would serve to offset our derivative contracts. Forward month commodity contracts (derivatives) reflected in the accompanying unaudited condensed consolidated statements of operations were as follows for the periods indicated (in thousands): Gains (losses) Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Revenues – marketing $ — $ 1 $ (20) $ 2 Fair Value Measurements The following tables set forth, by level with the Level 1, 2 and 3 fair value hierarchy, the carrying values of our financial assets and liabilities at the dates indicated (in thousands): June 30, 2019 Fair Value Measurements Using Quoted Prices in Active Significant Markets for Other Significant Identical Assets Observable Unobservable and Liabilities Inputs Inputs Counterparty (Level 1) (Level 2) (Level 3) Offsets Total Derivatives: Current assets $ — $ 240 $ — $ — $ 240 Current liabilities — (236) — — (236) Net value $ — $ 4 $ — $ — $ 4 December 31, 2018 Fair Value Measurements Using Quoted Prices in Active Significant Markets for Other Significant Identical Assets Observable Unobservable and Liabilities Inputs Inputs Counterparty (Level 1) (Level 2) (Level 3) Offsets Total Derivatives: Current assets $ — $ 162 $ — $ — $ 162 Current liabilities — (139) — — (139) Net value $ — $ 23 $ — $ — $ 23 These assets and liabilities are measured on a recurring basis and are classified based on the lowest level of input used to estimate their fair value. Our assessment of the relative significance of these inputs requires judgments. When determining fair value measurements, we make credit valuation adjustments to reflect both our own nonperformance risk and our counterparty’s nonperformance risk. When adjusting the fair value of derivative contracts for the effect of nonperformance risk, we consider the impact of netting and any applicable credit enhancements. Credit valuation adjustments utilize Level 3 inputs, such as credit scores to evaluate the likelihood of default by us or our counterparties. At June 30, 2019 and December 31, 2018, credit valuation adjustments were not significant to the overall valuation of our fair value contracts. As a result, applicable fair value assets and liabilities are included in their entirety in the fair value hierarchy. |
Share-Based Compensation Plan
Share-Based Compensation Plan | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation Plan | Share-Based Compensation Plan We have in place a long-term incentive plan under which any employee or non-employee director who provides services to us is eligible to participate in the plan. The 2018 LTIP, which is overseen by the Compensation Committee of our Board of Directors, provides for the grant of various types of equity awards, of which restricted stock unit awards and performance-based compensation awards have been granted. The maximum number of shares authorized for issuance under the 2018 LTIP is 150,000 shares, and the 2018 LTIP is effective until May 8, 2028. After giving effect to awards granted under the 2018 LTIP and assuming the potential achievement of the maximum amounts of the performance factors through June 30, 2019, a total of 98,213 shares were available for issuance. Compensation expense recognized in connection with equity-based awards was as follows for the periods presented (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Compensation expense $ 74 $ 3 $ 197 $ 3 At June 30, 2019 and December 31, 2018, we had $15,602 and $9,533, respectively, of accrued dividend amounts for awards granted under the 2018 LTIP. Restricted Stock Unit Awards The following table presents restricted stock unit award activity for the periods indicated: Weighted- Average Grant Number of Date Fair Value Shares per Share (1) Restricted stock unit awards at January 1, 2019 13,733 $ 43.00 Granted (2) 14,376 $ 34.00 Vested (5,729) $ 43.00 Forfeited (325) $ 43.00 Restricted stock unit awards at June 30, 2019 22,055 _______________ (1) Determined by dividing the aggregate grant date fair value of awards by the number of awards issued. (2) The aggregate grant date fair value of restricted stock unit awards issued during 2019 was $0.5 million based on a grant date market price of our common shares of $34.00 per share. Unrecognized compensation cost associated with restricted stock unit awards was approximately $0.7 million at June 30, 2019. Due to the graded vesting provisions of these awards, we expect to recognize the remaining compensation cost for these awards over a weighted-average period of 1.8 years. Performance Share Unit Awards The following table presents performance share unit award activity for the periods indicated: Weighted- Average Grant Number of Date Fair Value Shares per Share (1) Performance share unit awards at January 1, 2019 3,966 $ 43.00 Granted (2) 8,094 $ 34.00 Performance factor decrease (3) (185) $ 43.00 Vested — $ — Forfeited (117) $ 43.00 Performance share unit awards at June 30, 2019 11,758 _______________ (1) Determined by dividing the aggregate grant date fair value of awards by the number of awards issued. (2) The aggregate grant date fair value of performance share unit awards issued during 2019 was $0.3 million based on a grant date market price of our common shares of $34.00 per share and assuming a performance factor of 100 percent. (3) The performance factor for awards granted during 2018 was lowered to 47.5 percent based upon a comparison of actual results for 2018 to performance goals. Unrecognized compensation cost associated with performance share unit awards was approximately $0.4 million at June 30, 2019. We expect to recognize the remaining compensation cost for these awards over a weighted-average period of 2.6 years. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 6 Months Ended |
Jun. 30, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information Supplemental cash flows and non-cash transactions were as follows for the periods indicated (in thousands): Six Months Ended June 30, 2019 2018 Cash paid for interest $ 182 $ 34 Cash paid for federal and state income taxes 233 210 Non-cash transactions: Change in accounts payable related to property and equipment additions (1,179) (44) Property and equipment acquired under finance leases 4,148 — Issuance of common shares in asset acquisition (see Note 6) 392 — |
Leases
Leases | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases Adoption of ASC 842 In February 2016, the Financial Accounting Standards Board issued Accounting Standards Codification 842, Leases (“ASC 842”), which requires lessees to recognize a right-of-use (“ROU”) asset and a corresponding lease liability for leases with terms longer than twelve months. We adopted the new standard effective January 1, 2019, using a modified retrospective transition method and applied certain optional transitional practical expedients. We elected an optional transition method that allowed application of the new standard at the adoption date and the recognition of a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption with no adjustment to previously reported results. In accordance with this approach, our consolidated financial statements for periods prior to January 1, 2019 were not revised to reflect the new lease accounting guidance. We also elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed the carry forward of historical lease classification. We did not elect the practical expedient related to hindsight. ASC 842 changes the way our operating leases are recorded, presented and disclosed in our consolidated financial statements. Upon adoption of ASC 842 on January 1, 2019, we recognized a ROU asset and a corresponding lease liability based on the present value of then existing operating lease obligations of approximately $11.4 million on our consolidated balance sheet. In addition, there are several key accounting policy elections that we made upon adoption of ASC 842 including: • We did not recognize ROU assets and lease liabilities for short-term leases and instead record them in a manner similar to operating leases under ASC 840, Leases , lease accounting guidelines. A short term lease is one with a maximum lease term of 12 months or less and does not include a purchase option or renewal option the lessee is reasonably certain to exercise. • We have also elected the non-lease component practical expedient for any asset class where lease and non-lease components are comingled and the non-lease component is determined to be insignificant when compared to the lease component. Lease Recognition We determine if an arrangement is a lease at inception. Operating leases are included in operating lease ROU assets, other current liabilities and operating lease liabilities in the condensed consolidated balance sheets. Finance leases are included in property and equipment, other current liabilities and other long-term liabilities in the condensed consolidated balance sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. We use the implicit rate when readily determinable. At adoption, the ROU asset also includes any lease payment made and excludes lease incentives and initial direct costs. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Our lease agreements do not contain any leases with variable lease payments (i.e., payments that depend on a percentage of sales of a lessee or payments that increase based upon an index such as CPI), residual value guarantees probable of being paid or material restrictive covenants. Lease agreements with lease and non-lease components are generally accounted for separately when practical. For leases where the lease and non-lease component are comingled and the non-lease component is determined to be insignificant when compared to the lease component, the lease and the non-lease components are treated as a single lease component for all asset classes. We are a lessee in noncancellable (1) operating leases for office space, equipment and lease and terminal access contracts for tank storage and dock access for our crude oil marketing business, and (2) finance leases for tractors and tank storage and throughput for our crude oil marketing business. Leases with an initial term of twelve months or less are not included on the balance sheet. Some leases include one or more options to renew, with renewal terms that can extend the lease term for generally one year with exercise of lease renewal options being at our sole discretion as lessee. The following table provides the components of lease expense for the period indicated (in thousands): Three Months Six Months Ended Ended June 30, June 30, 2019 2019 Finance lease cost: Amortization of ROU assets $ 456 $ 701 Interest on lease liabilities 81 127 Operating lease cost 717 1,579 Short-term lease cost 2,863 4,828 Total lease expense $ 4,117 $ 7,235 The following table provides supplemental cash flow and other information related to leases for the period indicated (in thousands): Six Months Ended June 30, 2019 Cash paid for amounts included in measurement of lease liabilities: Operating cash flows from operating leases (1) $ 1,274 Operating cash flows from finance leases 94 Financing cash flows from finance leases 651 ROU assets obtained in exchange for new lease liabilities: Finance leases 4,148 Operating leases 11,111 ______________ (1) Amount is included in Other operating activities on the unaudited condensed consolidated cash flow statement. The following table provides the lease term and discount rate for the period indicated: Six Months Ended June 30, 2019 Weighted-average remaining lease term (years): Finance leases 3.52 Operating leases 5.24 Weighted-average discount rate: Finance leases 4.9% Operating leases 5.0% The following table provides supplemental balance sheet information related to leases at the date indicated (in thousands): June 30, 2019 Assets Finance lease assets (1) $ 7,490 Operating lease ROU assets 10,093 Liabilities Current Finance lease liabilities 2,116 Operating lease liabilities 2,097 Noncurrent Finance lease liabilities 5,473 Operating lease liabilities 7,999 ______________ (1) Amount is included in Property and equipment, net on the unaudited condensed consolidated balance sheet. The following table provides maturities of undiscounted lease liabilities at June 30, 2019 (in thousands): Finance Operating Lease Lease Remainder of 2019 $ 1,213 $ 1,280 2020 2,426 2,498 2021 2,426 2,102 2022 1,492 1,770 2023 642 1,668 Thereafter 37 2,112 Total lease payments 8,236 11,430 Less: Interest (647) (1,334) Present value of lease liabilities 7,589 10,096 Less: Current portion of lease obligation (2,116) (2,097) Total long-term lease obligation $ 5,473 $ 7,999 The following table provides maturities of undiscounted lease liabilities at December 31, 2018 (in thousands): Finance Operating Lease Lease 2019 $ 1,052 $ 4,242 2020 1,052 2,258 2021 1,052 2,107 2022 909 1,782 2023 451 1,495 Thereafter — 1,488 Total lease payments 4,516 $ 13,372 Less: Interest (424) Present value of lease liabilities 4,092 Less: Current portion of lease obligation (883) Total long-term lease obligation $ 3,209 |
Leases | Leases Adoption of ASC 842 In February 2016, the Financial Accounting Standards Board issued Accounting Standards Codification 842, Leases (“ASC 842”), which requires lessees to recognize a right-of-use (“ROU”) asset and a corresponding lease liability for leases with terms longer than twelve months. We adopted the new standard effective January 1, 2019, using a modified retrospective transition method and applied certain optional transitional practical expedients. We elected an optional transition method that allowed application of the new standard at the adoption date and the recognition of a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption with no adjustment to previously reported results. In accordance with this approach, our consolidated financial statements for periods prior to January 1, 2019 were not revised to reflect the new lease accounting guidance. We also elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed the carry forward of historical lease classification. We did not elect the practical expedient related to hindsight. ASC 842 changes the way our operating leases are recorded, presented and disclosed in our consolidated financial statements. Upon adoption of ASC 842 on January 1, 2019, we recognized a ROU asset and a corresponding lease liability based on the present value of then existing operating lease obligations of approximately $11.4 million on our consolidated balance sheet. In addition, there are several key accounting policy elections that we made upon adoption of ASC 842 including: • We did not recognize ROU assets and lease liabilities for short-term leases and instead record them in a manner similar to operating leases under ASC 840, Leases , lease accounting guidelines. A short term lease is one with a maximum lease term of 12 months or less and does not include a purchase option or renewal option the lessee is reasonably certain to exercise. • We have also elected the non-lease component practical expedient for any asset class where lease and non-lease components are comingled and the non-lease component is determined to be insignificant when compared to the lease component. Lease Recognition We determine if an arrangement is a lease at inception. Operating leases are included in operating lease ROU assets, other current liabilities and operating lease liabilities in the condensed consolidated balance sheets. Finance leases are included in property and equipment, other current liabilities and other long-term liabilities in the condensed consolidated balance sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. We use the implicit rate when readily determinable. At adoption, the ROU asset also includes any lease payment made and excludes lease incentives and initial direct costs. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Our lease agreements do not contain any leases with variable lease payments (i.e., payments that depend on a percentage of sales of a lessee or payments that increase based upon an index such as CPI), residual value guarantees probable of being paid or material restrictive covenants. Lease agreements with lease and non-lease components are generally accounted for separately when practical. For leases where the lease and non-lease component are comingled and the non-lease component is determined to be insignificant when compared to the lease component, the lease and the non-lease components are treated as a single lease component for all asset classes. We are a lessee in noncancellable (1) operating leases for office space, equipment and lease and terminal access contracts for tank storage and dock access for our crude oil marketing business, and (2) finance leases for tractors and tank storage and throughput for our crude oil marketing business. Leases with an initial term of twelve months or less are not included on the balance sheet. Some leases include one or more options to renew, with renewal terms that can extend the lease term for generally one year with exercise of lease renewal options being at our sole discretion as lessee. The following table provides the components of lease expense for the period indicated (in thousands): Three Months Six Months Ended Ended June 30, June 30, 2019 2019 Finance lease cost: Amortization of ROU assets $ 456 $ 701 Interest on lease liabilities 81 127 Operating lease cost 717 1,579 Short-term lease cost 2,863 4,828 Total lease expense $ 4,117 $ 7,235 The following table provides supplemental cash flow and other information related to leases for the period indicated (in thousands): Six Months Ended June 30, 2019 Cash paid for amounts included in measurement of lease liabilities: Operating cash flows from operating leases (1) $ 1,274 Operating cash flows from finance leases 94 Financing cash flows from finance leases 651 ROU assets obtained in exchange for new lease liabilities: Finance leases 4,148 Operating leases 11,111 ______________ (1) Amount is included in Other operating activities on the unaudited condensed consolidated cash flow statement. The following table provides the lease term and discount rate for the period indicated: Six Months Ended June 30, 2019 Weighted-average remaining lease term (years): Finance leases 3.52 Operating leases 5.24 Weighted-average discount rate: Finance leases 4.9% Operating leases 5.0% The following table provides supplemental balance sheet information related to leases at the date indicated (in thousands): June 30, 2019 Assets Finance lease assets (1) $ 7,490 Operating lease ROU assets 10,093 Liabilities Current Finance lease liabilities 2,116 Operating lease liabilities 2,097 Noncurrent Finance lease liabilities 5,473 Operating lease liabilities 7,999 ______________ (1) Amount is included in Property and equipment, net on the unaudited condensed consolidated balance sheet. The following table provides maturities of undiscounted lease liabilities at June 30, 2019 (in thousands): Finance Operating Lease Lease Remainder of 2019 $ 1,213 $ 1,280 2020 2,426 2,498 2021 2,426 2,102 2022 1,492 1,770 2023 642 1,668 Thereafter 37 2,112 Total lease payments 8,236 11,430 Less: Interest (647) (1,334) Present value of lease liabilities 7,589 10,096 Less: Current portion of lease obligation (2,116) (2,097) Total long-term lease obligation $ 5,473 $ 7,999 The following table provides maturities of undiscounted lease liabilities at December 31, 2018 (in thousands): Finance Operating Lease Lease 2019 $ 1,052 $ 4,242 2020 1,052 2,258 2021 1,052 2,107 2022 909 1,782 2023 451 1,495 Thereafter — 1,488 Total lease payments 4,516 $ 13,372 Less: Interest (424) Present value of lease liabilities 4,092 Less: Current portion of lease obligation (883) Total long-term lease obligation $ 3,209 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Insurance Policies We establish a liability under our automobile and workers’ compensation insurance policies for expected claims incurred but not reported on a monthly basis. As claims are paid, the liability is relieved. Our accruals for automobile and workers’ compensation claims are presented in the table below. For periods prior to October 1, 2017, we pre-funded our estimated claims, and therefore, we could either receive a return of premium paid or be assessed for additional premiums up to pre-established limits. Additionally, in certain instances, the risk of insured losses was shared with a group of similarly situated entities through an insurance captive. We have appropriately recognized estimated expenses and liabilities related to these policies for losses incurred but not reported to us or our insurance carrier. The amount of pre-funded insurance premiums left to cover potential future losses are presented in the table below. If the potential insurance claims do not further develop, the pre-funded premiums will be returned to us as a premium refund. The amount of pre-funded insurance premiums left to cover potential future losses related to periods prior to October 1, 2017, and our accruals for automobile and workers’ compensation claims were as follows at the dates indicated (in thousands): June 30, December 31, 2019 2018 Pre-funded premiums for losses incurred but not reported $ 236 $ 427 Accrued automobile and workers’ compensation claims 3,007 2,246 We maintain a self-insurance program for managing employee medical claims. A liability for expected claims incurred but not reported is established on a monthly basis. As claims are paid, the liability is relieved. We also maintain third party insurance stop-loss coverage for individual medical claims exceeding a certain minimum threshold. In addition, we maintain $1.0 million of umbrella insurance coverage for annual aggregate medical claims exceeding approximately $9.6 million. Medical accrual amounts were as follows at the dates indicated (in thousands): June 30, December 31, 2019 2018 Accrued medical claims $ 1,387 $ 1,181 Litigation From time to time as incidental to our operations, we may become involved in various lawsuits and/or disputes. Primarily as an operator of an extensive trucking fleet, we are a party to motor vehicle accidents, worker compensation claims and other items of general liability as would be typical for the industry. We are presently unaware of any claims against us that are either outside the scope of insurance coverage or that may exceed the level of insurance coverage and could potentially represent a material adverse effect on our financial position or results of operations. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Organization | Organization Adams Resources & Energy, Inc. (“AE”) is a publicly traded Delaware corporation organized in 1973, the common shares of which are listed on the NYSE American LLC under the ticker symbol “AE”. We, through our subsidiaries, are primarily engaged in the business of crude oil marketing, transportation and storage in various crude oil and natural gas basins in the lower 48 states of the United States (“U.S.”). We also conduct tank truck transportation of liquid chemicals and dry bulk primarily in the lower 48 states of the U.S. with deliveries into Canada and Mexico, and with terminals in the Gulf Coast region of the U.S. Unless the context requires otherwise, references to “we,” “us,” “our,” the “Company” or “AE” are intended to mean the business and operations of Adams Resources & Energy, Inc. and its consolidated subsidiaries. |
Basis of Presentation | Basis of Presentation Our results of operations for the three and six months ended June 30, 2019 are not necessarily indicative of results expected for the full year of 2019. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments consisting of normal recurring accruals necessary for fair presentation. The condensed consolidated financial statements and the accompanying notes are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial statements and the rules of the U.S. Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures required by GAAP for complete annual financial statements have been omitted and, therefore, these interim financial statements should be read in conjunction with our audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2018 (the “2018 Form 10-K”) filed with the SEC on March 8, 2019. All significant intercompany transactions and balances have been eliminated in consolidation. |
Use of Estimates | Use of EstimatesThe preparation of our financial statements in conformity with GAAP requires management to use estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. We base our estimates and judgments on historical experience and on various other assumptions and information we believe to be reasonable under the circumstances. Estimates and assumptions about future events and their effects cannot be perceived with certainty and, accordingly, these estimates may change as new events occur, as more experience is acquired, as additional information is obtained and as the operating environment changes. While we believe the estimates and assumptions used in the preparation of these condensed consolidated financial statements are appropriate, actual results could differ from those estimates. |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash Restricted cash represents an amount held in a segregated bank account by Wells Fargo as collateral for amounts outstanding under our letter of credit facility. In June 2019, the amount of outstanding letters of credit under our letter of credit facility exceeded the borrowing base as defined in the letter of credit facility agreement. As a result, we were required to deposit cash with the lender as security for the outstanding letters of credit. See “Letter of Credit Facility” within this Note 2 for further information. Our borrowing base is based on our net receivable balance, and due to customer prepayments, our borrowing base as outlined in the letter of credit facility did not fully |
Earnings Per Share | Earnings Per ShareBasic earnings (losses) per share is computed by dividing our net earnings (losses) by the weighted average number of shares of common stock outstanding during the period. Diluted earnings (losses) per share is computed by giving effect to all potential shares of common stock outstanding, including our stock related to unvested restricted stock unit awards. Unvested restricted stock unit awards granted under the Adams Resources & Energy, Inc. 2018 Long-Term Incentive Plan (“2018 LTIP”) are not considered to be participating securities as the holders of these shares do not have non-forfeitable dividend rights in the event of our declaration of a dividend for common shares (see Note 10 for further discussion). |
Fair Value Measurements | Fair Value Measurements The carrying amounts reported in the unaudited condensed consolidated balance sheets for cash and cash equivalents, accounts receivable and accounts payable approximates fair value because of the immediate or short-term maturity of these financial instruments. Marketable securities are recorded at fair value based on market quotations from actively traded liquid markets. A three-tier hierarchy has been established that classifies fair value amounts recognized in the financial statements based on the observability of inputs used to estimate these fair values. The hierarchy considers fair value amounts based on observable inputs (Levels 1 and 2) to be more reliable and predictable than those based primarily on unobservable inputs (Level 3). At each balance sheet reporting date, we categorize our financial assets and liabilities using this hierarchy. |
Income Taxes | Income TaxesIncome taxes are accounted for using the asset and liability method. Under this approach, deferred tax assets and liabilities are recognized based on anticipated future tax consequences attributable to differences between financial statement carrying amounts of these items and their respective tax basis. |
Letter of Credit Facility | Letter of Credit Facility We maintained a Credit and Security Agreement with Wells Fargo Bank, National Association to provide for the issuance of up to $60.0 million in stand-by letters of credit primarily used to support crude oil purchases within our crude oil marketing segment and for other purposes. We used the letter of credit facility for letters of credit related to our insurance program. This facility was collateralized by the eligible accounts receivable within our crude oil marketing segment and expires on August 30, 2019. |
Property and Equipment | Property and Equipment Property and equipment is recorded at cost. Expenditures for additions, improvements and other enhancements to property and equipment are capitalized, and minor replacements, maintenance and repairs that do not extend asset life or add value are charged to expense as incurred. When property and equipment assets are retired or otherwise disposed of, the related cost and accumulated depreciation is removed from the accounts and any resulting gain or loss is included in results of operations in operating costs and expenses for the respective period. Property and equipment, except for land, is depreciated using the straight-line method over the estimated average useful lives ranging from two |
Stock-Based Compensation | Stock-Based CompensationWe measure all share-based payments, including the issuance of restricted stock units and performance share units to employees and board members, using a fair-value based method. The cost of services received from employees and non-employee board members in exchange for awards of equity instruments is recognized in the consolidated statement of operations based on the estimated fair value of those awards on the grant date and amortized on a straight-line basis over the requisite service period. The fair value of restricted stock unit awards and performance share unit awards is based on the closing price of our common stock on the grant date. We account for forfeitures as they occur. |
Other Marketing Revenue | Other Marketing Revenue Certain of the commodity purchase and sale contracts utilized by our crude oil marketing business qualify as derivative instruments with certain specifically identified contracts also designated as trading activity. From the time of contract origination, these contracts are marked-to-market and recorded on a net revenue basis in the accompanying consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of Cash and Cash Equivalents and Restricted Cash | The following table provides a reconciliation of cash and cash equivalents and restricted cash as reported with the unaudited condensed consolidated balance sheet that totals to the amounts shown in the unaudited condensed consolidated statements of cash flow (in thousands): June 30, 2019 Cash and cash equivalents $ 127,670 Restricted cash 4,876 Total cash, cash equivalents and restricted cash shown in the unaudited condensed consolidated statements of cash flow $ 132,546 |
Schedule of Earnings Per Share, Basic and Diluted | A reconciliation of the calculation of basic and diluted earnings per share is as follows (in thousands, except per share data): Three Months Ended Six Months Ended 2019 2018 2019 2018 Earnings per share — numerator: Net earnings $ 6 $ 3,620 $ 4,914 $ 4,758 Denominator: Basic weighted average number of shares 4,227 4,218 4,223 4,218 Basic earnings per share $ — $ 0.86 $ 1.16 $ 1.13 Diluted earnings per share: Diluted weighted average number of shares Common shares 4,227 4,218 4,223 4,218 Restricted stock unit awards — — 6 — Performance share unit awards (1) — — — — Total 4,227 4,218 4,229 4,218 Diluted earnings per share $ — $ 0.86 $ 1.16 $ 1.13 _______________ |
Schedule of Common Stock Outstanding | The following table reconciles our outstanding common stock for the periods indicated: Common shares Balance, January 1, 2019 4,217,596 Vesting of restricted stock unit awards 375 Balance, March 31, 2019 4,217,971 Issuance of shares in acquisition (see Note 6) 11,145 Vesting of restricted stock unit awards (see Note 11) 5,354 Shares withheld to cover taxes upon vesting of restricted stock unit awards (883) Balance, June 30, 2019 4,233,587 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table disaggregates our revenue by segment and by major source for the periods indicated (in thousands): Reporting Segments Marketing Transportation Total Three Months Ended June 30, 2019 Revenues from contracts with customers $ 390,407 $ 17,393 $ 407,800 Other (1) 76,633 — 76,633 Total revenues $ 467,040 $ 17,393 $ 484,433 Timing of revenue recognition: Goods transferred at a point in time $ 390,407 $ — $ 390,407 Services transferred over time — 17,393 17,393 Total revenues from contracts with customers $ 390,407 $ 17,393 $ 407,800 Three Months Ended June 30, 2018 Revenues from contracts with customers $ 419,365 $ 13,626 $ 432,991 Other (1) 19,426 — 19,426 Total revenues $ 438,791 $ 13,626 $ 452,417 Timing of revenue recognition: Goods transferred at a point in time $ 419,365 $ — $ 419,365 Services transferred over time — 13,626 13,626 Total revenues from contracts with customers $ 419,365 $ 13,626 $ 432,991 Six Months Ended June 30, 2019 Revenues from contracts with customers $ 751,138 $ 32,800 $ 783,938 Other (1) 145,663 — 145,663 Total revenues $ 896,801 $ 32,800 $ 929,601 Timing of revenue recognition: Goods transferred at a point in time $ 751,138 $ — $ 751,138 Services transferred over time — 32,800 32,800 Total revenues from contracts with customers $ 751,138 $ 32,800 $ 783,938 Six Months Ended June 30, 2018 Revenues from contracts with customers $ 779,450 $ 27,244 $ 806,694 Other (1) 32,979 — 32,979 Total revenues $ 812,429 $ 27,244 $ 839,673 Timing of revenue recognition: Goods transferred at a point in time $ 779,450 $ — $ 779,450 Services transferred over time — 27,244 27,244 Total revenues from contracts with customers $ 779,450 $ 27,244 $ 806,694 _______________ (1) Other marketing revenues are recognized under ASC 815, Derivatives and Hedging , and ASC 845, Nonmonetary Transactions – Purchases and Sales of Inventory with the Same Counterparty |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | Reporting these crude oil contracts on a gross revenue basis would increase our reported revenues as follows for the periods indicated (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Revenue gross-up $ 223,043 $ 56,335 $ 465,166 $ 102,026 |
Prepayments and Other Current_2
Prepayments and Other Current Assets (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Components of Prepayments and Other Current Assets | The components of prepayments and other current assets were as follows at the dates indicated (in thousands): June 30, December 31, 2019 2018 Insurance premiums $ 705 $ 677 Rents, licenses and other 1,123 880 Total $ 1,828 $ 1,557 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment | The historical costs of our property and equipment and related accumulated depreciation balances were as follows at the dates indicated (in thousands): Estimated Useful Life June 30, December 31, in Years 2019 2018 Tractors and trailers (1) 5 – 6 $ 106,046 $ 96,523 Field equipment (2) 2 – 20 24,895 20,725 Buildings 5 – 39 16,003 15,746 Office equipment 2 – 5 1,923 1,863 Land 1,790 1,790 Construction in progress 2,538 2,794 Total 153,195 139,441 Less accumulated depreciation (97,640) (94,818) Property and equipment, net $ 55,555 $ 44,623 _______________ (1) Amounts include assets held under finance leases for certain tractors in our marketing segment. Gross property and equipment associated with these assets held under finance leases were $5.5 million and $4.7 million at June 30, 2019 and December 31, 2018, respectively. Accumulated amortization associated with assets held under these finance leases were $1.2 million and $0.7 million at June 30, 2019 and December 31, 2018, respectively (see Note 13 for further information). (2) At June 30, 2019, amount includes assets held under finance leases for certain tank storage and throughput arrangements in our marketing segment. Gross property and equipment associated with these assets held under finance leases were $3.3 million. Accumulated amortization associated with these assets held under finance leases was $0.2 million (see Note 13 for further information). Components of depreciation and amortization expense were as follows for the periods indicated (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Depreciation and amortization, excluding amounts under finance leases $ 3,828 $ 2,171 $ 7,172 $ 4,493 Amortization of property and equipment under finance leases 456 91 701 181 Total depreciation and amortization $ 4,284 $ 2,262 $ 7,873 $ 4,674 |
Assets Acquisition (Tables)
Assets Acquisition (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Asset Acquisition [Abstract] | |
Schedule Of Asset Acquisition | The following table summarizes the consideration paid for the EH Transport assets and the estimated fair value of the assets acquired at the acquisition date (in thousands): Consideration: Cash $ 5,611 Value of AE common shares issued 392 Contingent consideration arrangement 431 Fair value of total consideration transferred $ 6,434 Recognized amounts of identifiable assets acquired: Property and equipment — tractors and trailers $ 4,408 Shop, office and telecommunication equipment 19 Intangible assets — customer relationships 2,007 Total purchase price $ 6,434 |
Cash Deposits and Other Assets
Cash Deposits and Other Assets (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Components of cash deposits and other assets | Components of cash deposits and other assets were as follows at the dates indicated (in thousands): June 30, December 31, 2019 2018 Amounts associated with liability insurance program: Insurance collateral deposits $ 1,071 $ 1,453 Excess loss fund 821 1,916 Accumulated interest income 527 788 Other amounts: State collateral deposits 61 57 Materials and supplies 393 443 Total $ 2,873 $ 4,657 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Information concerning business activities | Information concerning our various business activities was as follows for the periods indicated (in thousands): Reporting Segments Marketing Transportation Other Total Three Months Ended June 30, 2019 Revenues $ 467,040 $ 17,393 $ — $ 484,433 Segment operating earnings (1) 962 977 — 1,939 Depreciation and amortization 2,304 1,980 — 4,284 Property and equipment additions (2) 1,348 3,422 — 4,770 Three Months Ended June 30, 2018 Revenues $ 438,791 $ 13,626 $ — $ 452,417 Segment operating earnings (1) 5,772 810 — 6,582 Depreciation and amortization 1,336 926 — 2,262 Property and equipment additions 277 1,572 — 1,849 Six Months Ended June 30, 2019 Revenues $ 896,801 $ 32,800 $ — $ 929,601 Segment operating (losses) earnings (1) 8,060 1,816 — 9,876 Depreciation, depletion and amortization 4,426 3,447 — 7,873 Property and equipment additions (2) 3,002 10,119 — 13,121 Six Months Ended June 30, 2018 Revenues $ 812,429 $ 27,244 $ — $ 839,673 Segment operating (losses) earnings (1) 8,730 1,212 — 9,942 Depreciation, depletion and amortization 2,833 1,841 — 4,674 Property and equipment additions 1,070 1,645 — 2,715 _______________ (1) Our crude oil marketing segment’s operating earnings included inventory valuation losses of $1.0 million and inventory liquidation gains of $1.9 million for the three months ended June 30, 2019 and 2018, respectively. For the six months ended June 30, 2019 and 2018, our marketing segment’s operating earnings included inventory liquidation gains of $3.5 million and $2.5 million, respectively. |
Reconciliation of segment earnings to earnings before income taxes | Segment operating earnings reflect revenues net of operating costs and depreciation and amortization expense and are reconciled to earnings before income taxes, as follows for the periods indicated (in thousands): Three Months Ended Six Months Ended 2019 2018 2019 2018 Segment operating earnings $ 1,939 $ 6,582 $ 9,876 $ 9,942 General and administrative (2,582) (2,284) (5,266) (4,567) Operating earnings (643) 4,298 4,610 5,375 Gain on dissolution of investment 75 — 573 — Interest income 731 498 1,387 885 Interest expense (117) (15) (182) (34) Earnings before income taxes $ 46 $ 4,781 $ 6,388 $ 6,226 |
Identifiable assets by industry segment | Identifiable assets by business segment were as follows at the dates indicated (in thousands): June 30, December 31, 2019 2018 Reporting segment: Marketing $ 113,554 $ 119,370 Transportation 47,688 34,112 Cash and other 140,522 125,388 Total assets $ 301,764 $ 278,870 |
Transactions with Affiliates (T
Transactions with Affiliates (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Related Party Transactions [Abstract] | |
Activities with affiliates | Activities with affiliates were as follows for the periods indicated (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Affiliate billings to us $ 26 $ 25 $ 43 $ 40 Billings to affiliates 1 1 2 3 Rentals paid to affiliate 122 122 244 244 |
Derivative Instruments and Fa_2
Derivative Instruments and Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives reflected in the consolidated balance sheet | The estimated fair value of forward month commodity contracts (derivatives) reflected in the accompanying unaudited condensed consolidated balance sheet were as follows at the date indicated (in thousands): June 30, 2019 Balance Sheet Location and Amount Current Other Current Other Assets Assets Liabilities Liabilities Asset derivatives: Fair value forward hydrocarbon commodity contracts at gross valuation $ 240 $ — $ — $ — Liability derivatives: Fair value forward hydrocarbon commodity contracts at gross valuation — — 236 — Less counterparty offsets — — — — As reported fair value contracts $ 240 $ — $ 236 $ — At December 31, 2018, we had in place 10 commodity purchase and sale contracts with fair value associated with them as the contractual prices of crude oil were outside of the range of prices specified in the agreements. These commodity purchase and sale contracts encompassed approximately: • 322 barrels per day of crude oil during January 2019 through April 2019; • 258 barrels per day of crude oil during May 2019; • 322 barrels per day of crude oil during June 2019 through August 2019; and • 258 barrels per day of crude oil during September 2019 through December 2019. The estimated fair value of forward month commodity contracts (derivatives) reflected in the accompanying unaudited condensed consolidated balance sheet were as follows at the date indicated (in thousands): December 31, 2018 Balance Sheet Location and Amount Current Other Current Other Assets Assets Liabilities Liabilities Asset derivatives: Fair value forward hydrocarbon commodity contracts at gross valuation $ 162 $ — $ — $ — Liability derivatives: Fair value forward hydrocarbon commodity contracts at gross valuation — — 139 — Less counterparty offsets — — — — As reported fair value contracts $ 162 $ — $ 139 $ — |
Derivatives reflected in the consolidated statement of operations | Forward month commodity contracts (derivatives) reflected in the accompanying unaudited condensed consolidated statements of operations were as follows for the periods indicated (in thousands): Gains (losses) Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Revenues – marketing $ — $ 1 $ (20) $ 2 |
Fair value assets and liabilities | The following tables set forth, by level with the Level 1, 2 and 3 fair value hierarchy, the carrying values of our financial assets and liabilities at the dates indicated (in thousands): June 30, 2019 Fair Value Measurements Using Quoted Prices in Active Significant Markets for Other Significant Identical Assets Observable Unobservable and Liabilities Inputs Inputs Counterparty (Level 1) (Level 2) (Level 3) Offsets Total Derivatives: Current assets $ — $ 240 $ — $ — $ 240 Current liabilities — (236) — — (236) Net value $ — $ 4 $ — $ — $ 4 December 31, 2018 Fair Value Measurements Using Quoted Prices in Active Significant Markets for Other Significant Identical Assets Observable Unobservable and Liabilities Inputs Inputs Counterparty (Level 1) (Level 2) (Level 3) Offsets Total Derivatives: Current assets $ — $ 162 $ — $ — $ 162 Current liabilities — (139) — — (139) Net value $ — $ 23 $ — $ — $ 23 |
Share-Based Compensation Plan (
Share-Based Compensation Plan (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Share-based Payment Arrangement | Compensation expense recognized in connection with equity-based awards was as follows for the periods presented (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Compensation expense $ 74 $ 3 $ 197 $ 3 |
Share-based Compensation, Activity | The following table presents restricted stock unit award activity for the periods indicated: Weighted- Average Grant Number of Date Fair Value Shares per Share (1) Restricted stock unit awards at January 1, 2019 13,733 $ 43.00 Granted (2) 14,376 $ 34.00 Vested (5,729) $ 43.00 Forfeited (325) $ 43.00 Restricted stock unit awards at June 30, 2019 22,055 _______________ (1) Determined by dividing the aggregate grant date fair value of awards by the number of awards issued. (2) The aggregate grant date fair value of restricted stock unit awards issued during 2019 was $0.5 million based on a grant date market price of our common shares of $34.00 per share. Unrecognized compensation cost associated with restricted stock unit awards was approximately $0.7 million at June 30, 2019. Due to the graded vesting provisions of these awards, we expect to recognize the remaining compensation cost for these awards over a weighted-average period of 1.8 years. Performance Share Unit Awards The following table presents performance share unit award activity for the periods indicated: Weighted- Average Grant Number of Date Fair Value Shares per Share (1) Performance share unit awards at January 1, 2019 3,966 $ 43.00 Granted (2) 8,094 $ 34.00 Performance factor decrease (3) (185) $ 43.00 Vested — $ — Forfeited (117) $ 43.00 Performance share unit awards at June 30, 2019 11,758 _______________ (1) Determined by dividing the aggregate grant date fair value of awards by the number of awards issued. (2) The aggregate grant date fair value of performance share unit awards issued during 2019 was $0.3 million based on a grant date market price of our common shares of $34.00 per share and assuming a performance factor of 100 percent. |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Supplemental cash flows and non-cash transactions were as follows for the periods indicated (in thousands): Six Months Ended June 30, 2019 2018 Cash paid for interest $ 182 $ 34 Cash paid for federal and state income taxes 233 210 Non-cash transactions: Change in accounts payable related to property and equipment additions (1,179) (44) Property and equipment acquired under finance leases 4,148 — Issuance of common shares in asset acquisition (see Note 6) 392 — |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Lease, Cost | The following table provides the components of lease expense for the period indicated (in thousands): Three Months Six Months Ended Ended June 30, June 30, 2019 2019 Finance lease cost: Amortization of ROU assets $ 456 $ 701 Interest on lease liabilities 81 127 Operating lease cost 717 1,579 Short-term lease cost 2,863 4,828 Total lease expense $ 4,117 $ 7,235 The following table provides supplemental cash flow and other information related to leases for the period indicated (in thousands): Six Months Ended June 30, 2019 Cash paid for amounts included in measurement of lease liabilities: Operating cash flows from operating leases (1) $ 1,274 Operating cash flows from finance leases 94 Financing cash flows from finance leases 651 ROU assets obtained in exchange for new lease liabilities: Finance leases 4,148 Operating leases 11,111 ______________ (1) Amount is included in Other operating activities on the unaudited condensed consolidated cash flow statement. The following table provides the lease term and discount rate for the period indicated: Six Months Ended June 30, 2019 Weighted-average remaining lease term (years): Finance leases 3.52 Operating leases 5.24 Weighted-average discount rate: Finance leases 4.9% Operating leases 5.0% |
Assets And Liabilities, Lessee | The following table provides supplemental balance sheet information related to leases at the date indicated (in thousands): June 30, 2019 Assets Finance lease assets (1) $ 7,490 Operating lease ROU assets 10,093 Liabilities Current Finance lease liabilities 2,116 Operating lease liabilities 2,097 Noncurrent Finance lease liabilities 5,473 Operating lease liabilities 7,999 ______________ (1) Amount is included in Property and equipment, net on the unaudited condensed consolidated balance sheet. |
Lessee, Operating Lease, Liability, Maturity | The following table provides maturities of undiscounted lease liabilities at June 30, 2019 (in thousands): Finance Operating Lease Lease Remainder of 2019 $ 1,213 $ 1,280 2020 2,426 2,498 2021 2,426 2,102 2022 1,492 1,770 2023 642 1,668 Thereafter 37 2,112 Total lease payments 8,236 11,430 Less: Interest (647) (1,334) Present value of lease liabilities 7,589 10,096 Less: Current portion of lease obligation (2,116) (2,097) Total long-term lease obligation $ 5,473 $ 7,999 |
Finance Lease, Liability, Maturity | The following table provides maturities of undiscounted lease liabilities at June 30, 2019 (in thousands): Finance Operating Lease Lease Remainder of 2019 $ 1,213 $ 1,280 2020 2,426 2,498 2021 2,426 2,102 2022 1,492 1,770 2023 642 1,668 Thereafter 37 2,112 Total lease payments 8,236 11,430 Less: Interest (647) (1,334) Present value of lease liabilities 7,589 10,096 Less: Current portion of lease obligation (2,116) (2,097) Total long-term lease obligation $ 5,473 $ 7,999 |
Schedule of Principal Contractual Commitments Outstanding Under Capital Leases | The following table provides maturities of undiscounted lease liabilities at December 31, 2018 (in thousands): Finance Operating Lease Lease 2019 $ 1,052 $ 4,242 2020 1,052 2,258 2021 1,052 2,107 2022 909 1,782 2023 451 1,495 Thereafter — 1,488 Total lease payments 4,516 $ 13,372 Less: Interest (424) Present value of lease liabilities 4,092 Less: Current portion of lease obligation (883) Total long-term lease obligation $ 3,209 |
Schedule of Principal Contractual Commitments Outstanding Under Operating Leases | The following table provides maturities of undiscounted lease liabilities at December 31, 2018 (in thousands): Finance Operating Lease Lease 2019 $ 1,052 $ 4,242 2020 1,052 2,258 2021 1,052 2,107 2022 909 1,782 2023 451 1,495 Thereafter — 1,488 Total lease payments 4,516 $ 13,372 Less: Interest (424) Present value of lease liabilities 4,092 Less: Current portion of lease obligation (883) Total long-term lease obligation $ 3,209 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of expenses and losses incurred but not reported and accrued workers' compensation | The amount of pre-funded insurance premiums left to cover potential future losses related to periods prior to October 1, 2017, and our accruals for automobile and workers’ compensation claims were as follows at the dates indicated (in thousands): June 30, December 31, 2019 2018 Pre-funded premiums for losses incurred but not reported $ 236 $ 427 Accrued automobile and workers’ compensation claims 3,007 2,246 |
Schedule of accrued medical claims | Medical accrual amounts were as follows at the dates indicated (in thousands): June 30, December 31, 2019 2018 Accrued medical claims $ 1,387 $ 1,181 |
Organization and Basis of Pre_2
Organization and Basis of Presentation (Details) | 6 Months Ended |
Jun. 30, 2019segmentstate | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of states in which entity operates | state | 48 |
Number of operating segments | 2 |
Number of reportable segments | 2 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Reconciliation of Cash and Restricted Cash (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 127,670 | $ 117,066 | ||
Restricted cash | 4,876 | 0 | ||
Total cash, cash equivalents and restricted cash shown in the unaudited condensed consolidated statements of cash flows | $ 132,546 | $ 117,066 | $ 126,999 | $ 109,393 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Reconciliation of Basic and Diluted Earnings (Losses) per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Basic earnings per share: | ||||||
Net earnings | $ 6 | $ 4,908 | $ 3,620 | $ 1,138 | $ 4,914 | $ 4,758 |
Basic weighted average number of shares outstanding (in shares) | 4,227 | 4,218 | 4,223 | 4,218 | ||
Basic earnings per share (in dollars per share) | $ 0 | $ 0.86 | $ 1.16 | $ 1.13 | ||
Diluted weighted average number of shares outstanding: | ||||||
Basic weighted average number of shares outstanding (in shares) | 4,227 | 4,218 | 4,223 | 4,218 | ||
Total (in shares) | 4,227 | 4,218 | 4,229 | 4,218 | ||
Diluted earnings per share (in dollars per share) | $ 0 | $ 0.86 | $ 1.16 | $ 1.13 | ||
Restricted stock unit awards | ||||||
Diluted weighted average number of shares outstanding: | ||||||
Unit awards | 0 | 0 | 6 | 0 | ||
Performance Unit Awards | ||||||
Diluted weighted average number of shares outstanding: | ||||||
Unit awards | 0 | 0 | 0 | 0 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Letters of Credit Facility (Details) - Wells Fargo Bank - Standby Letter of Credit - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Letter of Credit Facility [Abstract] | ||
Line of credit facility, maximum borrowing capacity | $ 60,000,000 | |
Stand-by letters of credit | $ 4,600,000 | $ 4,600,000 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Property and Equipment (Details) | 6 Months Ended |
Jun. 30, 2019 | |
Minimum | |
Property, Plant and Equipment [Abstract] | |
Property and equipment, useful life | 2 years |
Maximum | |
Property, Plant and Equipment [Abstract] | |
Property and equipment, useful life | 39 years |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Common Shares Outstanding (Details) - shares | 3 Months Ended | |
Jun. 30, 2019 | Mar. 31, 2019 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance (in shares) | 4,217,971 | 4,217,596 |
Issuance of shares in acquisition (in shares) | 11,145 | |
Vesting of restricted stock unit awards (in shares) | 5,354 | 375 |
Shares withheld to cover taxes (in shares) | (883) | |
Ending balance (in shares) | 4,233,587 | 4,217,971 |
Revenue Recognition - Revenue D
Revenue Recognition - Revenue Disaggregation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | $ 407,800 | $ 432,991 | $ 783,938 | $ 806,694 |
Total revenues | 484,433 | 452,417 | 929,601 | 839,673 |
Goods transferred at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 390,407 | 419,365 | 751,138 | 779,450 |
Services transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 17,393 | 13,626 | 32,800 | 27,244 |
Revenues from contracts with customers | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 407,800 | 432,991 | 783,938 | 806,694 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 76,633 | 19,426 | 145,663 | 32,979 |
Marketing | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 390,407 | 419,365 | 751,138 | 779,450 |
Total revenues | 467,040 | 438,791 | 896,801 | 812,429 |
Marketing | Goods transferred at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 390,407 | 419,365 | 751,138 | 779,450 |
Marketing | Services transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 0 | 0 | 0 | 0 |
Marketing | Revenues from contracts with customers | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 390,407 | 419,365 | 751,138 | 779,450 |
Marketing | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 76,633 | 19,426 | 145,663 | 32,979 |
Transportation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 17,393 | 13,626 | 32,800 | 27,244 |
Total revenues | 17,393 | 13,626 | 32,800 | 27,244 |
Transportation | Goods transferred at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 0 | 0 | 0 | 0 |
Transportation | Services transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 17,393 | 13,626 | 32,800 | 27,244 |
Transportation | Revenues from contracts with customers | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 17,393 | 13,626 | 32,800 | 27,244 |
Transportation | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | $ 0 | $ 0 | $ 0 | $ 0 |
Revenue Recognition - Other Rev
Revenue Recognition - Other Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenues from contracts with customers | $ 407,800 | $ 432,991 | $ 783,938 | $ 806,694 |
Accounting Standards Update 2014-09 | Revenue gross-up | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenues from contracts with customers | $ 223,043 | $ 56,335 | $ 465,166 | $ 102,026 |
Prepayments and Other Current_3
Prepayments and Other Current Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Insurance premiums | $ 705 | $ 677 |
Rents, licenses and other | 1,123 | 880 |
Total | $ 1,828 | $ 1,557 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | $ 153,195 | $ 153,195 | $ 139,441 | ||
Less accumulated depreciation | (97,640) | (97,640) | (94,818) | ||
Property and equipment, net | 55,555 | 55,555 | 44,623 | ||
Total depreciation and amortization | 4,284 | $ 2,262 | $ 7,873 | $ 4,674 | |
Minimum | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, useful life | 2 years | ||||
Maximum | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, useful life | 39 years | ||||
Assets not held under capital leases | |||||
Property, Plant and Equipment [Line Items] | |||||
Total depreciation and amortization | 3,828 | 2,171 | $ 7,172 | 4,493 | |
Assets held under finance leases | |||||
Property, Plant and Equipment [Line Items] | |||||
Total depreciation and amortization | 456 | $ 91 | 701 | $ 181 | |
Tractors and trailers | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 106,046 | $ 106,046 | 96,523 | ||
Tractors and trailers | Minimum | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, useful life | 5 years | ||||
Tractors and trailers | Maximum | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, useful life | 6 years | ||||
Tractors and trailers | Assets held under finance leases | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 5,500 | $ 5,500 | 4,700 | ||
Less accumulated depreciation | (1,200) | (1,200) | (700) | ||
Field equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 24,895 | $ 24,895 | 20,725 | ||
Field equipment | Minimum | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, useful life | 2 years | ||||
Field equipment | Maximum | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, useful life | 20 years | ||||
Field equipment | Assets held under finance leases | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 3,300 | $ 3,300 | |||
Less accumulated depreciation | (200) | (200) | |||
Buildings | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 16,003 | $ 16,003 | 15,746 | ||
Buildings | Minimum | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, useful life | 5 years | ||||
Buildings | Maximum | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, useful life | 39 years | ||||
Office equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 1,923 | $ 1,923 | 1,863 | ||
Office equipment | Minimum | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, useful life | 2 years | ||||
Office equipment | Maximum | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, useful life | 5 years | ||||
Land | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 1,790 | $ 1,790 | 1,790 | ||
Construction in progress | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | $ 2,538 | $ 2,538 | $ 2,794 |
Assets Acquisition - Additional
Assets Acquisition - Additional Information (Details) - EH Trucking | May 06, 2019USD ($)trailertruck$ / sharesshares | Jun. 30, 2019USD ($) |
Schedule of Asset Acquisition [Line Items] | ||
Consideration transferred | $ 6,434,000 | |
Payments for asset acquisitions, cash | $ 5,611,000 | |
Number of shares (in shares) | shares | 11,145 | |
Value assigned to shares | $ 400,000 | |
Contingent consideration, liability | $ 400,000 | |
Number of tractor trailer trucks | truck | 39 | |
Number of trailers | trailer | 53 | |
Transaction sosts | $ 100,000 | |
Share price | $ / shares | $ 35.15 | |
Maximum quarterly payment | $ 146,875 | |
Range of outcomes, value, low | 0 | |
Range of outcomes, value, high | $ 587,500 | |
Customer Relationships | ||
Schedule of Asset Acquisition [Line Items] | ||
Useful life | 7 years | |
Amortization expense | $ 100,000 |
Assets Acquisition - Considerat
Assets Acquisition - Consideration Paid (Details) - EH Trucking $ in Thousands | May 06, 2019USD ($) |
Consideration: | |
Payments for asset acquisitions, cash | $ 5,611 |
Value of AE common shares issued | 392 |
Contingent consideration arrangement | 431 |
Fair value of total consideration transferred | 6,434 |
Recognized amounts of identifiable assets acquired: | |
Property and equipment — tractors and trailers | 4,408 |
Shop, office and telecommunication equipment | 19 |
Intangible assets — customer relationships | 2,007 |
Total purchase price | $ 6,434 |
Cash Deposits and Other Asset_2
Cash Deposits and Other Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Insurance collateral deposits | $ 1,071 | $ 1,453 |
Excess loss fund | 821 | 1,916 |
Accumulated interest income | 527 | 788 |
State collateral deposits | 61 | 57 |
Materials and supplies | 393 | 443 |
Total | $ 2,873 | $ 4,657 |
Segment Reporting - Information
Segment Reporting - Information Concerning Business Activities (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)segment | Jun. 30, 2018USD ($) | |
Segment Reporting [Abstract] | ||||
Number of reportable segments | segment | 2 | |||
Number of operating segments | segment | 2 | |||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 484,433 | $ 452,417 | $ 929,601 | $ 839,673 |
Segment operating earnings | (643) | 4,298 | 4,610 | 5,375 |
Depreciation and amortization | 4,284 | 2,262 | 7,873 | 4,674 |
Inventory liquidation (losses) gains | 1,000 | |||
Tractors and Tank Storage and Throughput Arrangements | ||||
Segment Reporting Information [Line Items] | ||||
Property and equipment additions | 3,600 | 4,100 | ||
Marketing | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 467,040 | 438,791 | 896,801 | 812,429 |
Inventory liquidation (losses) gains | (1,900) | (3,500) | (2,500) | |
Transportation | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 17,393 | 13,626 | 32,800 | 27,244 |
Reporting Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 484,433 | 452,417 | 929,601 | 839,673 |
Segment operating earnings | 1,939 | 6,582 | 9,876 | 9,942 |
Depreciation and amortization | 4,284 | 2,262 | 7,873 | 4,674 |
Property and equipment additions | 4,770 | 1,849 | 13,121 | 2,715 |
Reporting Segments | Marketing | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 467,040 | 438,791 | 896,801 | 812,429 |
Segment operating earnings | 962 | 5,772 | 8,060 | 8,730 |
Depreciation and amortization | 2,304 | 1,336 | 4,426 | 2,833 |
Property and equipment additions | 1,348 | 277 | 3,002 | 1,070 |
Reporting Segments | Transportation | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 17,393 | 13,626 | 32,800 | 27,244 |
Segment operating earnings | 977 | 810 | 1,816 | 1,212 |
Depreciation and amortization | 1,980 | 926 | 3,447 | 1,841 |
Property and equipment additions | 3,422 | 1,572 | 10,119 | 1,645 |
Reporting Segments | Oil and Gas | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Segment operating earnings | 0 | 0 | 0 | 0 |
Depreciation and amortization | 0 | 0 | 0 | 0 |
Property and equipment additions | $ 0 | $ 0 | $ 0 | $ 0 |
Segment Reporting - Reconciliat
Segment Reporting - Reconciliation of Segment Earnings to Earnings Before Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Abstract] | ||||
Operating earnings | $ (643) | $ 4,298 | $ 4,610 | $ 5,375 |
Gain on dissolution of investment | 75 | 0 | 573 | 0 |
Interest income | 731 | 498 | 1,387 | 885 |
Interest expense | (117) | (15) | (182) | (34) |
Earnings before income taxes | 46 | 4,781 | 6,388 | 6,226 |
Reporting Segments | ||||
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Abstract] | ||||
Operating earnings | 1,939 | 6,582 | 9,876 | 9,942 |
General and administrative | ||||
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Abstract] | ||||
Operating earnings | (2,582) | (2,284) | (5,266) | (4,567) |
Segment reconciling items | ||||
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Abstract] | ||||
Gain on dissolution of investment | 75 | 0 | 573 | 0 |
Interest income | 731 | 498 | 1,387 | 885 |
Interest expense | $ (117) | $ (15) | $ (182) | $ (34) |
Segment Reporting - Identifiabl
Segment Reporting - Identifiable Assets by Industry Segment (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Segment Reconciliation [Abstract] | ||
Total assets | $ 301,764 | $ 278,870 |
Reporting Segments | ||
Segment Reconciliation [Abstract] | ||
Total assets | 301,764 | 278,870 |
Reporting Segments | Marketing | ||
Segment Reconciliation [Abstract] | ||
Total assets | 113,554 | 119,370 |
Reporting Segments | Transportation | ||
Segment Reconciliation [Abstract] | ||
Total assets | 47,688 | 34,112 |
Cash and other | ||
Segment Reconciliation [Abstract] | ||
Total assets | $ 140,522 | $ 125,388 |
Transactions with Affiliates (D
Transactions with Affiliates (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Transactions with Affiliates [Abstract] | ||||
Billings to affiliates | $ 407,800 | $ 432,991 | $ 783,938 | $ 806,694 |
Affiliated entities | ||||
Transactions with Affiliates [Abstract] | ||||
Affiliate billings to us | 26 | 25 | 43 | 40 |
Billings to affiliates | 1 | 1 | 2 | 3 |
Rentals paid to affiliate | $ 122 | $ 122 | $ 244 | $ 244 |
Derivative Instruments and Fa_3
Derivative Instruments and Fair Value Measurements - Narrative (Details) - Commodity Contract | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019barrel_of_oil_per_daycontract | Dec. 31, 2018barrel_of_oil_per_daycontract | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Number of contracts held | contract | 8 | 10 |
July 2019 through August 2019 | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Production | 322 | |
September 2019 through December 2019 | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Production | 516 | 258 |
January 2020 through February 2020 | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Production | 258 | |
January through April 2019 | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Production | 322 | |
May 2019 | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Production | 258 | |
June 2019 through August 2019 | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Production | 322 | |
Reported Value Measurement | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Number of contracts held | contract | 6 |
Derivative Instruments and Fa_4
Derivative Instruments and Fair Value Measurements - Use of Derivative Instruments (Details) - Commodity Contract - Not Designated as Hedging Instrument - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives | $ 240 | $ 162 |
Liability derivatives | 0 | 0 |
Less counterparty offsets | 0 | 0 |
As reported fair value contracts | 240 | 162 |
Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives | 0 | 0 |
Liability derivatives | 0 | 0 |
Less counterparty offsets | 0 | 0 |
As reported fair value contracts | 0 | 0 |
Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives | 0 | 0 |
Liability derivatives | 236 | 139 |
Less counterparty offsets | 0 | 0 |
As reported fair value contracts | 236 | 139 |
Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives | 0 | 0 |
Liability derivatives | 0 | 0 |
Less counterparty offsets | 0 | 0 |
As reported fair value contracts | $ 0 | $ 0 |
Derivative Instruments and Fa_5
Derivative Instruments and Fair Value Measurements - Gain (Loss) on Derivatives (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenues – marketing | Not Designated as Hedging Instrument | Commodity Contract | ||||
Derivative [Line Items] | ||||
Gain (loss) on derivative | $ 0 | $ 1 | $ (20) | $ 2 |
Derivative Instruments and Fa_6
Derivative Instruments and Fair Value Measurements - Fair Value Measurements (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Derivatives: | ||
Current assets | $ 240 | $ 162 |
Current assets, counterparty offsets | 0 | 0 |
Current liabilities | (236) | (139) |
Current liabilities, counterparty offsets | 0 | 0 |
Net value | 4 | 23 |
Net value, counterparty offsets | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) | ||
Derivatives: | ||
Current assets | 0 | 0 |
Current liabilities | 0 | 0 |
Net value | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Derivatives: | ||
Current assets | 240 | 162 |
Current liabilities | (236) | (139) |
Net value | 4 | 23 |
Significant Unobservable Inputs (Level 3) | ||
Derivatives: | ||
Current assets | 0 | 0 |
Current liabilities | 0 | 0 |
Net value | $ 0 | $ 0 |
Share-Based Compensation Plan_2
Share-Based Compensation Plan (Details) - The 2018 LTIP - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | May 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares authorized (in shares) | 98,213 | 98,213 | 150,000 | |||
Compensation expense | $ 74,000 | $ 3,000 | $ 197,000 | $ 3,000 | ||
Accrued dividends | $ 15,602 | $ 15,602 | $ 9,533 | |||
Restricted stock unit awards | ||||||
Number of Shares | ||||||
Restricted stock unit awards at January 1, 2018 (in shares) | 13,733 | |||||
Granted (in shares) | 14,376 | |||||
Vested (in shares) | (5,729) | |||||
Forfeited (in shares) | 325 | |||||
Restricted stock unit awards at September 30, 2018 (in shares) | 22,055 | 22,055 | ||||
Weighted Average Grant Date Fair Value per Share | ||||||
Restricted stock unit awards at January 1, 2018 (in dollars per share) | $ 43 | |||||
Granted (in dollars per share) | 34 | |||||
Vested (in dollars per share) | 43 | |||||
Forfeited (in dollars per share) | $ 43 | |||||
Aggregate grant date fair value awards issues | $ 500,000 | |||||
Unrecognized compensation cost | $ 700,000 | $ 700,000 | ||||
Period for recognition for remaining compensation cost | 1 year 9 months 18 days | |||||
Performance Unit Awards | ||||||
Number of Shares | ||||||
Restricted stock unit awards at January 1, 2018 (in shares) | 3,966 | |||||
Granted (in shares) | 8,094 | |||||
Performance factor decrease (in shares) | (185) | |||||
Vested (in shares) | 0 | |||||
Forfeited (in shares) | 117 | |||||
Restricted stock unit awards at September 30, 2018 (in shares) | 11,758 | 11,758 | ||||
Weighted Average Grant Date Fair Value per Share | ||||||
Restricted stock unit awards at January 1, 2018 (in dollars per share) | $ 43 | |||||
Granted (in dollars per share) | 34 | |||||
Performance factor decrease (in dollars per share) | 43 | |||||
Vested (in dollars per share) | 0 | |||||
Forfeited (in dollars per share) | $ 43 | |||||
Aggregate grant date fair value awards issues | $ 300,000 | |||||
Performance factor | 47.50% | |||||
Unrecognized compensation cost | $ 400,000 | $ 400,000 | ||||
Period for recognition for remaining compensation cost | 2 years 7 months 6 days | |||||
Performance Unit Awards | Awards Issued During 2019 | ||||||
Weighted Average Grant Date Fair Value per Share | ||||||
Performance factor | 100000.00% |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Supplemental Cash Flow Elements [Abstract] | ||
Cash paid for interest | $ 182 | $ 34 |
Cash paid for federal and state income taxes | 233 | 210 |
Non-cash transactions: | ||
Change in accounts payable related to property and equipment additions | (1,179) | (44) |
Property and equipment acquired under finance leases | 4,148 | 0 |
Issuance of common shares in asset acquisition (see Note 6) | $ 392 | $ 0 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | |
Leases [Abstract] | ||||
Operating lease right-of-use assets | $ 10,093 | $ 10,093 | $ 11,400 | |
Finance lease liability | 7,589 | 7,589 | 11,400 | |
Lease, Cost [Abstract] | ||||
Amortization of ROU assets | 456 | 701 | ||
Interest on lease liabilities | 81 | 127 | ||
Operating lease cost | 717 | 1,579 | ||
Short-term lease cost | 2,863 | 4,828 | ||
Total lease expense | $ 4,117 | 7,235 | ||
Operating cash flows from operating leases | 1,274 | |||
Operating cash flows from finance leases | 94 | |||
Financing cash flows from finance leases | 651 | |||
ROU assets obtained in exchange for new lease liabilities, Finance leases | 4,148 | |||
ROU assets obtained in exchange for new lease liabilities, Operating leases | $ 11,111 | |||
Weighted-average remaining lease term (years), Finance leases | 3 years 6 months 7 days | 3 years 6 months 7 days | ||
Weighted-average remaining lease term (years), Operating leases | 5 years 2 months 26 days | 5 years 2 months 26 days | ||
Weighted-average discount rate, Finance leases | 4.90% | 4.90% | ||
Weighted-average discount rate, Operating leases | 5.00% | 5.00% | ||
Assets and Liabilities, Lessee [Abstract] | ||||
Finance lease assets | $ 7,490 | $ 7,490 | ||
Operating lease ROU assets | 10,093 | 10,093 | 11,400 | |
Finance lease liabilities, Current | 2,116 | 2,116 | $ 883 | |
Operating lease liabilities, Current | 2,097 | 2,097 | ||
Finance lease liabilities, Noncurrent | 5,473 | 5,473 | 3,209 | |
Operating lease liabilities, Noncurrent | 7,999 | 7,999 | ||
Finance Lease Liabilities, Payments | ||||
Remainder of 2019 | 1,213 | 1,213 | ||
2020 | 2,426 | 2,426 | ||
2021 | 2,426 | 2,426 | ||
2022 | 1,492 | 1,492 | ||
2023 | 642 | 642 | ||
Thereafter | 37 | 37 | ||
Total lease payments | 8,236 | 8,236 | ||
Less: Interest | (647) | (647) | ||
Present value of lease liabilities | 7,589 | 7,589 | $ 11,400 | |
Less: Current portion of lease obligation | (2,116) | (2,116) | (883) | |
Finance lease obligations | 5,473 | 5,473 | 3,209 | |
Operating Lease Liabilities, Payments Due | ||||
Remainder of 2019 | 1,280 | 1,280 | ||
2020 | 2,498 | 2,498 | ||
2021 | 2,102 | 2,102 | ||
2022 | 1,770 | 1,770 | ||
2023 | 1,668 | 1,668 | ||
Thereafter | 2,112 | 2,112 | ||
Total lease payments | 11,430 | 11,430 | ||
Less: Interest | (1,334) | (1,334) | ||
Present value of lease liabilities | 10,096 | 10,096 | ||
Less: Current portion of lease obligation | (2,097) | (2,097) | ||
Total long-term lease obligation | $ 7,999 | $ 7,999 | ||
Capital Lease Maturities | ||||
2019 | 1,052 | |||
2020 | 1,052 | |||
2021 | 1,052 | |||
2022 | 909 | |||
2023 | 451 | |||
Thereafter | 0 | |||
Total lease payments | 4,516 | |||
Less: Interest | (424) | |||
Present value of lease liabilities | 4,092 | |||
Less: Current portion of lease obligation | (883) | |||
Total long-term lease obligation | 3,209 | |||
Operating Lease Maturities | ||||
2019 | 4,242 | |||
2020 | 2,258 | |||
2021 | 2,107 | |||
2022 | 1,782 | |||
2023 | 1,495 | |||
Thereafter | 1,488 | |||
Total lease payments | $ 13,372 |
Commitments and Contingencies -
Commitments and Contingencies - Pre-funded Insurance (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Commitments and Contingencies Disclosure [Abstract] | ||
Pre-funded premiums for losses incurred but not reported | $ 236 | $ 427 |
Accrued automobile and workers’ compensation claims | $ 3,007 | $ 2,246 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Accrued Medical Claims (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Umbrellas insurance coverage | $ 1,000 | |
Aggregate medical claims for umbrella insurance coverage per calendar year | 9,600 | |
Accrued medical claims | $ 1,387 | $ 1,181 |