EXHIBIT 99.1
JIM SMITH
(713) 881-3662
FOR IMMEDIATE RELEASE
ADAMS RESOURCES ANNOUNCES FOURTH QUARTER EARNINGS
Houston (March 18, 2004) -- Adams Resources & Energy, Inc., (AMEX-AE),
announced fourth quarter 2003 unaudited net earnings of $651,000 or $.16 per
common share on revenues of $422,429,000. This compares to a fourth quarter 2002
net earnings of $113,000 or $.02 per common share. Net earnings for 2003 totaled
$3,102,000 or $.74 per common share on revenues of $1,721,929,000. Net cash flow
generated from operating activities totaled $9,093,000 during 2003.
Chairman and President, K. S. "Bud" Adams, Jr. attributed the
comparative fourth quarter earnings increase to two primary factors. First,
there were reduced losses within the Company's discontinued New England natural
gas business as that operation winds down. Second, there was additional
available statutory percentage depletion for 2003, which served to reduce the
Company's overall effective tax rate. During 2003, revenues from oil and gas
production increased by 77 percent to $8,395,000, thus qualifying the Company
for the additional tax deductions. Mr. Adams added that results of oil and gas
exploration efforts in 2003 yielded twenty-four productive wells out of
thirty-six wells drilled during the year. Because of the favorable drilling
results, oil and gas reserve additions replaced 2003 production by 221 percent
on an equivalent barrel basis.
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. See website at
adamsresources.com.
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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, (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)
Year Ended Three Months Ended
December 31, December 31,
-------------------------- --------------------------
2003 2002 2003 2002
----------- ----------- ----------- -----------
Revenues ....................................... $ 1,721,929 $ 1,767,350 $ 422,429 $ 393,006
Costs, expenses and other ...................... (1,712,447) (1,762,230) (421,604) (392,268)
Income tax provision ........................... (3,056) (1,751) 196 (135)
----------- ----------- ----------- -----------
Earnings from continuing operations ............ 6,426 3,369 1,021 603
Income (loss) for discontinued operation,
net of tax ................................. (3,232) (1,917) (370) (490)
Cumulative effect of accounting change,
net of tax ................................. (92) -- -- --
----------- ----------- ----------- -----------
Net earnings ................................... $ 3,102 $ 1,452 $ 651 $ 113
=========== =========== =========== ===========
Earnings (loss) per share
From continuing operations ................. $ 1.53 $ .79 $ .24 $ .14
From discontinued operation ................ (.77) (.45) (.08) (.12)
Cumulative effect of accounting change ..... (.02) -- --
----------- ----------- ----------- -----------
Basic and diluted net earnings per
common share ........................... $ .74 $ .34 $ .16 .02
=========== =========== =========== ===========
Dividends per common share ..................... $ .23 $ .13 $ .23 $ .13
=========== =========== =========== ===========
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands)
December 31, December 31,
2003 2002
------------ ------------
ASSETS
Cash ........................................... $ 28,342 $ 27,262
Other current assets ........................... 157,309 152,138
-------- --------
Total current assets ...................... 185,651 179,400
Net property & equipment ....................... 24,407 22,304
Other assets ................................... 203 416
-------- --------
$210,261 $202,120
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LIABILITIES AND EQUITY
Total current liabilities ...................... $152,665 $148,084
Long-term debt ................................. 11,475 11,475
Deferred taxes and other ....................... 3,889 2,461
Shareholders' equity ........................... 42,232 40,100
-------- --------
$210,261 $202,120
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