EXHIBIT 99.1
SHARON COPELAND
(713) 881-3611
FOR IMMEDIATE RELEASE
ADAMS RESOURCES ANNOUNCES FOURTH QUARTER EARNINGS
Houston (March 27, 2003) -- Adams Resources & Energy, Inc., (AMEX-AE),
announced fourth quarter 2002 unaudited net earnings of $113,000 or $.02 per
common share on revenues of $515,138,000. This compares to a fourth quarter 2001
net loss of $3,689,000 or $.87 per common share. Net earnings for 2002 totaled
$1,452,000 or $.34 per common share on revenues of $2,323,317,000. Net cash flow
generated from operating activities totaled $18,694,000 during 2002.
Chairman and President, K. S. "Bud" Adams, Jr. said the apparent fourth
quarter turnaround resulted when losses sustained in 2001 did not recur. Prior
year price declines had caused a combined $4.9 million write-down of crude oil
and natural gas inventories and oil and gas reserve values during the fourth
quarter of 2001. While this situation did not occur in 2002, the Company did
incur $892,000 of dry hole and other oil and gas exploration expenses during the
current fourth quarter when the Company made investments to increase its oil and
gas reserve base.
Mr. Adams added that 2002's exploration efforts are yielding promising
results for 2003 as the Company has successfully completed nine wells since
December 2002. Four of the wells are currently producing with three wells tested
and currently awaiting installation of production facilities. The remaining two
wells, presently in the completion stage, are development wells and available
information indicates they will be commercially productive. A pipeline
connecting these wells to market will be completed and operational by May 2003.
The Company's net working interest in this initial production should approximate
80 barrels of crude oil per day and 1200 mcf of natural gas per day. These
additions represent an approximate 50 percent increase to the Company's average
daily production of crude oil and natural gas during 2002. The company continues
to drill its lowest risk areas and plans to participate in drilling twenty-nine
additional wells in 2003.
Adams Resources & Energy, Inc. is in the business of crude oil, natural
gas, and petroleum products marketing, as well as tank truck transportation of
liquid chemicals, and oil and gas exploration and production.
.....................................................
The information in this release includes certain forward-looking
statements that are based on assumptions that in the future may prove not to
have been accurate. The Company's business is subject to a number of risks,
including general economic conditions, volatility of oil and gas prices, the
need to develop and replace reserves, the availability of capital to fund
operations, availability of bank and trade credit, counterparty credit risk,
environmental risks, variations between contracted and actual delivery volumes,
drilling and operating risks, uncertainties about estimates of reserves,
competition, government regulation, availability and cost of insurance, and the
ability of the Company to implement its business strategy. These and other risks
are described in the Company's reports that are on file with the Securities and
Exchange Commission.
UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except per share data)
Three Months Ended
Year Ended December 31, December 31,
-------------------------- ------------------------
2002 2001 2002 2001
---------- ---------- --------- ---------
Revenues .......................... $2,323,317 $4,717,242 $ 515,138 $ 866,432
Costs and expenses ................ 2,321,101 4,724,249 515,003 872,032
Income tax provision (benefit) .... 764 (2,438) 22 (1,911)
---------- ---------- --------- ---------
Net earnings (Loss) ............... $ 1,452 $ (4,569) $ 113 $ (3,689)
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Basic and diluted net earnings
(loss) per common share ......... $ .34 $ (1.08) $ .02 $ (.87)
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Dividends per common share ........ $ .13 $ .13 $ .13 $ .13
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UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands)
December 31, December 31,
2002 2001
------------ ------------
ASSETS
Cash ..................................... $ 27,262 $ 14,177
Other current assets ..................... 151,792 185,128
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Total current assets .............. 179,054 199,305
Net property & equipment ................. 22,304 23,899
Other assets ............................. 762 3,823
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Total Assets ...................... $202,120 $227,027
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LIABILITIES AND EQUITY
Total current liabilities ................ $147,762 $168,971
Long-term debt ........................... 11,475 11,475
Deferred taxes and other ................. 2,783 7,385
Shareholders' equity ..................... 40,100 39,196
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Total Liabilities and Equity ..... $202,120 $227,027
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