EXHIBIT 99.1
JIM SMITH
(713) 881-3662
FOR IMMEDIATE RELEASE
ADAMS RESOURCES ANNOUNCES FIRST QUARTER EARNINGS
Houston (May 12, 2004)--Adams Resources & Energy, Inc. (AMEX-AE) announced
first quarter 2004 unaudited net earnings of $938,000 or $.22 per common share
on revenues of $461,315,000. This compares to unaudited first quarter 2003 net
earnings of $348,000 or $.08 per common share. Net cash flow provided by
operating activities for the first three months of 2004 totaled $3,011,000.
Chairman and President, K.S. "Bud" Adams, Jr., said the earnings
improvement resulted because the level of losses sustained during 2003 within
the Company's New England region natural gas operation did not recur. During
last year's first quarter, the New England business sustained a $2,053,000 after
tax loss, which prompted the Company to commence an orderly shutdown of the
operation. Efforts to discontinue the New England business continued during 2003
with such efforts substantially complete as of March 31, 2004. For the first
quarter of 2004, the net after tax loss stemming from remaining shutdown efforts
was reduced to $253,000. Partially offsetting the net cost savings from the
shutdown was $940,000 of oil and gas exploration expense during the first
quarter of 2004 versus only $11,000 of exploration expense during the first
quarter of 2003. Exploration costs for 2004 primarily consisted of geological
and geophysical evaluations of unproved oil and gas properties in order to
develop future drillable prospects. Results of recent exploration efforts were
generally successful with Company production of crude oil and natural gas
improving by 25 percent on an equivalent barrel basis for the comparative
current quarter.
A summary of operating results is as follows:
<Table>
<Caption>
First Quarter
------------------------------
2004 2003
------------ ------------
Operating Earnings
Marketing .................................. $ 2,544,000 $ 3,977,000
Transportation ............................. 415,000 499,000
Oil and gas ................................ 487,000 861,000
General & administrative expenses ................ (1,603,000) (1,441,000)
Interest, net .................................... (24,000) 122,000
Income tax provision ............................. (628,000) (1,525,000)
------------ ------------
Earnings from continuing operations .............. 1,191,000 2,493,000
Loss from discontinued operations, net of tax .... (253,000) (2,053,000)
Cumulative effect of accounting change,
net of tax ................................. -- (92,000)
------------ ------------
Net earnings ..................................... $ 938,000 $ 348,000
============ ============
</Table>
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, (p) commodity price volatility and
(q) successful completion of drilling activity. 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)
<Table>
<Caption>
Three Months Ended
March 31,
------------------------------
2004 2003
------------ ------------
Revenues .................................... $ 461,315 $ 473,290
Costs, expenses and other ................... (459,496) (469,272)
Income tax provision ........................ (628) (1,525)
------------ ------------
Earnings from continuing operations ......... 1,191 2,493
Loss for discontinued operations,
net of tax ............................. (253) (2,053)
Cumulative effect of accounting change,
net of tax ............................. -- (92)
------------ ------------
Net earnings ................................ $ 938 $ 348
============ ============
Earnings (loss) per share:
From continuing operations ............... $ .28 $ .59
From discontinued operations ............. (.06) (.49)
Cumulative effect of accounting
change .............................. -- (.02)
------------ ------------
Basic and diluted
net earnings per common share ............ $ .22 $ .08
============ ============
Dividends per common share .................. $ -- $ --
============ ============
</Table>
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands)
<Table>
<Caption>
March 31 December 31
2004 2003
------------ ------------
ASSETS
Cash ............................ $ 29,163 $ 28,342
Other current assets ............ 159,656 157,309
------------ ------------
Total current assets ....... 188,819 185,651
Net property & equipment ........ 25,017 24,407
Other assets .................... 184 203
------------ ------------
$ 214,020 $ 210,261
============ ============
LIABILITIES AND EQUITY
Total current liabilities ....... $ 155,472 $ 152,665
Long-term debt .................. 11,475 11,475
Deferred taxes and other ........ 3,903 3,889
Shareholders' equity ............ 43,170 42,232
------------ ------------
$ 214,020 $ 210,261
============ ============
</Table>