EXHIBIT 99.1
ADAMS RESOURCES ANNOUNCES SECOND QUARTER EARNINGS
Houston (August 13, 2003)--Adams Resources & Energy, Inc. (AMEX-AE)
announced second quarter 2003 unaudited net earnings of $1,430,000 or $.34 per
common share on revenues of $426,967,000. This compares to unaudited second
quarter 2002 net earnings of $555,000 or $.13 per common share. Net cash flow
provided by operating activities for the first six months of 2003 totaled
$10,554,000.
Chairman and President, K.S. "Bud" Adams, Jr., attributed the earnings
increase to higher commodity prices and increased production volumes within the
Company's oil and gas exploration segment. Most notably, recent drilling results
caused natural gas production volumes to increase by 51 percent to 343,000 mmbtu
for the quarter. In addition, average natural gas sales price realizations
increase to $6.03 per mmbtu during the current quarter, up from a $2.72 per unit
average in the second quarter of 2002. The Company's in-house petroleum
engineers estimated crude oil and natural gas reserve additions, resulting from
2003's exploration efforts to date. Indicated reserve additions total 93,000
barrels of crude oil and 1,302,000 mcf of natural gas. With Company production
for all of last year being 55,000 barrels of oil and 1,047,000 mcf of gas,
these reserve additions represent more than a complete replacement of 2002's
production.
A summary of operating results is as follows:
Second Quarter
-------------------------
2003 2002
----------- -----------
Operating earnings
Marketing ............................ $ 3,284,000 $ 2,004,000
Transportation ....................... 631,000 812,000
Oil and gas .......................... 984,000 (1,000)
General & administrative ................... (1,566,000) (1,965,000)
Interest, net .............................. 86,000 27,000
Income tax provision ....................... (1,334,000) (321,000)
----------- -----------
Earnings from continuing operation ......... 2,085,000 556,000
Loss from discontinued operation, net of tax (655,000) (1,000)
----------- -----------
Net earnings ......................... $ 1,430,000 $ 555,000
=========== ===========
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) counter party 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 CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except per share data)
Six Months Ended Three Months Ended
June 30, June 30,
------------------- -------------------
2003 2002 2003 2002
-------- -------- -------- --------
Revenues ...................................... $900,257 $871,624 $426,967 $492,989
Costs, expenses and other ..................... 892,820 867,380 423,548 492,112
Income tax provision .......................... 2,859 1,583 1,334 321
-------- -------- -------- --------
Earnings from continuing operations ........... 4,578 2,661 2,085 556
Loss for discontinued operation, net of tax ... (2,708) (1,511) (655) (1)
Cumulative effect of accounting change,
net of tax ................................. (92) -- -- --
-------- -------- -------- --------
Net earnings .................................. $ 1,778 $ 1,150 $ 1,430 $ 555
======== ======== ======== ========
Earnings (loss) per share
From continuing operations ................. $ 1.08 $ .63 $ .49 $ .13
From discontinued operation ................ (.64) (.36) (.15) --
Cumulative effect of accounting change ..... (.02) -- -- --
-------- -------- -------- --------
Basic and diluted net earnings per
common share ............................. $ .42 $ .27 $ .34 $ .13
======== ======== ======== ========
Dividends per common share .................... $ -- $ -- $ -- $ --
======== ======== ======== ========
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UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands)
June 30, December 31,
-------- ------------
2003 2002
-------- --------
ASSETS
Cash ....................................... $ 33,890 $ 27,262
Other current assets ....................... 160,842 152,138
-------- --------
Total current assets .................. 194,732 179,400
Net property & equipment ................... 23,816 22,304
Other assets ............................... 416 416
-------- --------
$218,964 $202,120
======== ========
LIABILITIES AND EQUITY
Total current liabilities ................. $162,467 $148,084
Long-term debt ............................. 11,475 11,475
Deferred taxes and other ................... 3,144 2,461
Shareholders' equity ....................... 41,878 40,100
-------- --------
$218,964 $202,120
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