EXHIBIT 99.1
FOR IMMEDIATE RELEASE
JIM SMITH (713) 881-3662
ADAMS RESOURCES ANNOUNCES SECOND QUARTER EARNINGS
Houston (August 11, 2004) -- Adams Resources & Energy, Inc.,
(AMEX-AE), announced second quarter 2004 unaudited net earnings of $1,118,000
or $.27 per common share. Revenues for the quarter totaled $495,616,000.
Current earnings compared to unaudited second quarter 2003 net earnings of
$1,430,000 or $.34 per common share. For the six-month period ended June 30,
2004, net earnings were $2,056,000 compared to $1,778,000 for the six-month
period in 2003.
Chairman, K. S. "Bud" Adams, Jr. attributed the reduced quarterly
earnings to weaker margins within the Company's crude oil marketing business.
Although world crude oil prices were generally increasing during the quarter,
the Company experienced the unusual situation of narrowing margins due to
adequate domestic crude oil supplies. Mr. Adams noted that reduced marketing
margins were substantially offset by strong results from the Company's
transportation sector. The Company's chemical transportation business is
presently operating at or near full capacity and this strong demand condition
is expected to continue through at least year-end.
A summary of operating results is as follows:
Second Quarter
------------------------
2004 2003
---- ----
Operating Earnings
Marketing......................................... $ 1,193,000 $ 3,284,000
Transportation.................................... 1,692,000 631,000
Oil and gas....................................... 661,000 984,000
General & administrative expenses....................... (1,851,000) (1,566,000)
Interest, net........................................... (10,000) 86,000
Income tax provision.................................... (567,000) (1,334,000)
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Earnings from continuing operations..................... 1,118,000 2,085,000
Loss from discontinued operations, net of tax........... - (655,000)
------------ ------------
Net earnings............................................ $ 1,118,000 $ 1,430,000
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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, 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)
Six Months Ended Three Months Ended
June 30, June 30,
----------------------- ----------------------
2004 2003 2004 2003
---- ---- ---- ----
Revenues............................................ $ 956,931 $ 900,257 $ 495,616 $ 426,967
Costs, expenses and other........................... (953,427) (892,820) (493,931) (423,548)
Income tax provision ............................... (1,195) (2,859) (567) (1,334)
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Earnings from continuing operations................. 2,309 4,578 1,118 2,085
Loss for discontinued operation, net of tax......... (253) (2,708) - (655)
Cumulative effect of accounting change, net of tax.. - (92) - -
------------- ------------- ------------ -------------
Net earnings........................................ $ 2,056 $ 1,778 $ 1,118 $ 1,430
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Earnings (loss) per share
From continuing operations....................... $ .55 $ 1.08 $ .27 $ .49
From discontinued operation...................... (.06) (.64) - (.15)
Cumulative effect of accounting change........... - (.02) - -
------------- ------------- ------------ -------------
Basic and diluted net earnings per
common share..................................... $ .49 $ .42 $ .27 $ .34
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Dividends per common share.......................... $ - $ - $ - $ -
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UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands)
June 30, December 31,
2004 2003
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ASSETS
Cash................................. $ 17,562 $ 28,342
Other current assets................. 173,016 157,309
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Total current assets.............. 190,578 185,651
Net property & equipment............. 24,943 24,407
Other assets......................... 182 203
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$ 215,703 $ 210,261
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LIABILITIES AND EQUITY
Total current liabilities............ $ 156,023 $ 152,665
Long-term debt....................... 11,475 11,475
Deferred taxes and other ............ 3,917 3,889
Shareholders' equity................. 44,288 42,232
----------- -------------
$ 215,703 $ 210,261
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