EXHIBIT 99.1
ADAMS RESOURCES ANNOUNCES FIRST QUARTER EARNINGS
Houston (May 14, 2003)--Adams Resources & Energy, Inc. (AMEX-AE)
announced first quarter 2003 unaudited net earnings of $348,000 or $.08 per
common share on revenues of $473,290,000. This compares to unaudited first
quarter 2002 net earnings of $595,000 or $.14 per common share. Net cash flow
provided by operating activities for the first three months of 2003 totaled
$3,255,000.
Chairman and President, K.S. "Bud" Adams, Jr., said earnings fell short
of expectation due to losses sustained by the Company's New England area retail
natural gas business. Severe cold weather coupled with elevated natural gas
prices produced a $2,053,000 after tax loss within the New England operations.
The Company is presently taking steps to discontinue its New England operation
and with the end of the winter heating season, additional significant losses are
not anticipated.
Mr. Adams indicated the Company's other operating units are performing
moderately well. Most notably, oil and gas operating earnings improved to
$861,000 during the first quarter of 2003 compared to $30,000 in the 2002 first
quarter. A summary of operating results is as follows:
First Quarter
---------------------------------
2003 2002
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Operating Earnings
Marketing......................................... $ 3,977,000 $ 5,014,000
Transportation.................................... 499,000 475,000
Oil and gas....................................... 861,000 30,000
General & administrative expenses.................... (1,441,000) (2,189,000)
Interest, net........................................ 122,000 37,000
Income tax provision................................. (1,525,000) (1,262,000)
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Earnings from continuing operations.................. 2,493,000 2,105,000
Loss from discontinued operations, net of tax........ (2,053,000) (1,510,000)
Cumulative effect of accounting change,
net of taxes...................................... (92,000) -
-------------- --------------
Net earnings............................................ $ 348,000 $ 595,000
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Adams Resources & Energy, Inc. is engaged in the business of marketing
crude oil, natural gas, and petroleum products, 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. A number of factors could cause actual results or events to
differ materially from those anticipated. Such factors include, among others,
(a) general economic conditions, (b) fluctuations in hydrocarbon
prices and margins, (c) variations between crude oil and natural gas contract
volumes and actual delivery volumes, (d) unanticipated environmental liabilities
or regulatory changes, (e) counterparty credit default, (f) inability to obtain
bank and/or trade credit support, (g) availability and cost of insurance, (h)
changes in tax laws, and (i) the availability of capital, among others (j)
changes in regulations, (k) results of current items of litigation, (l)
uninsured items of litigation or losses, (m) uncertainty in reserve estimates
and cash flows, (n) ability to replace oil and gas reserves, (o) security issues
related to drivers and terminal facilities and (p) commodity price volatility.
These and other risks are described in the Company's reports that are on file
with the Securities and Exchange Commission.
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except per share data)
Three Months Ended
March 31,
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2003 2002
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Revenues............................................ $ 473,290 $ 378,635
Costs, expenses and other........................... (469,272) (375,268)
Income tax provision................................ (1,525) (1,262)
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Earnings from continuing operations................. 2,493 2,105
Loss for discontinued operations, net of tax........ (2,053) (1,510)
Cumulative effect of accounting change,
net of tax..................................... (92) -
------------ ----------
Net earnings........................................ $ 348 $ 595
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Earnings (loss) per share:
From continuing operations...................... $ .59 $ .50
From discontinued operations.................... (.49) (.36)
Cumulative effect of accounting change.......... (.02) -
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Basic and diluted...................................
net earnings per common share.................... $ .08 $ .14
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Dividends per common share.......................... $ - $ -
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UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands)
March 31 December 31
2003 2002
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ASSETS
Cash.............................................. $ 28,756 $ 27,262
Other current assets.............................. 204,211 152,138
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Total current assets......................... 232,967 179,400
Net property & equipment.......................... 23,438 22,304
Other assets...................................... 416 416
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$ 256,821 $ 202,120
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LIABILITIES AND EQUITY
Total current liabilities......................... $ 201,757 $ 148,084
Long-term debt.................................... 11,475 11,475
Deferred taxes and other ......................... 3,141 2,461
Shareholders' equity.............................. 40,448 40,100
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$ 256,821 $ 202,120
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