AE - Earnings call transcript Q3 2017 | Adams Resources & Energy, Inc.

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Operator

Good morning, ladies and gentlemen and welcome to the Adams Resources & Energy Third Quarter 2017 Earnings Call.

During today’s presentation, all parties will be in a listen-only mode. This is a pre-recorded conference call and if you have further questions, please feel free to contact Josh Anders, Chief Financial Officer of Adams at janders@adamsresources.com or 281-974-9442. I would now like to turn the call over to Josh Anders, Chief Financial Officer. Please go ahead.

Josh Anders

operator. you, Thank and Adams everyone our call conference Good & welcome Energy’s discuss Resources results. third to morning, to quarter XXXX joined today call of Energy. on Griffith, am President GulfMark our by the subsidiary, I Geoff the would Commission. on call statements comments as We may by the as be this to that that remind we like Securities make construed defined could forward-looking everyone and Exchange our numerous are many of of subject outside to contingencies, control. results Future are which information set Any XX, risk at other on forward-looking website recent www.adamsresources.com. Energy’s statements factors for with XX-K available qualified make XXXX filed Resources SEC the most December in the by forth the we are our Form ended Form XX-Q & Adams and our and year and

reasonable, will no that Although reflected that to management prove believes expectations can are such assurance we expectations in correct. statements be forward-looking give such

We facilitate help GAAP. used be financial maybe companies. measures, non-GAAP may and measures will performance comparisons peers. financial alternatives by These non-GAAP used operating therefore along across calculated by by to refer Non-GAAP as financial considered to, titled measures with not company to, similar as be but the from the measures and prescribed which with, other some differently comparable should periods not

reconciliation For earnings be corresponding found non-GAAP release website. to in available we any use, GAAP measures a our nearest the measure can on our

get let’s Now, started.

to and on after modes Geoff our expand experienced demand we longer to Company, a Hurricane rail water Harvey Hurricane subsidiary seen disruption will Gulf his Service related reestablished operations times XXXX, need like downtime increase the have Harvey. third major quarter that we transportation in owned lead of During across our comments. as get wholly Coast an Transport during At

to and segment are results Transport activity Service this on of financial taking Coast forward place in In is refining located quarters. the along looking we to addition, the Gulf the improving the strategically that is capitalize coming

cost Corporation, reflect program. most call our of $X proceeding expected of The we of positions program subsidiary, including during the we voluntary early is challenges and wrap save backfilling. to a several company our of the retirement retirement early as the are We we upstream the secondly, the XX a are voluntary including write-down to the XXXX; VestaCare; several end Chapter the we are faced lastly, President Energy. of quarter. of but up third all, one-time Griffith, impairment our recent quarter, what of the had impact encouraged Resources that charge process medical during by over approximately bankruptcy to charges the in upstream Exploration early I seeing from first XXXX, to of turn GulfMark XXXX, investment, During million now quarter fourth we all-in Geoff the by will expect Adams the

Geoff Griffith

the unusually high Colorado Inter were supplies caused and an to in Results in of We three different normal Hurricane Harvey. the shut-ins producer inventory third refinery deliver of were and locations from issues punctuated levels quarter. faced followed the crude with unloading by closure barge at inability River. at of by stranded the This due quarter to Waterway end sites the Coastal west resulted a left to shut-ins,

wells day and mileage producers associated bring with cleared before our before the to and operation be the a cost expected that producer and $XXX,XXX of in are excess XX,XXX that waterway XXXX in drilling to pushed drilled, the comments. normal. end from end but of of September, Josh further returned increased on resumed projects not financial I Anders improve was barrels and quarter. to volumes of the will debris the quarter. end remarketing excess As cover to will closing in over to the call been next the the believe cost this at year. sales schedules We we are few to results have third with of months complete significantly four over the turn Gulf and reduced believe as in expected completed delivery that Volumes improve company October number Coast volumes, And the that, the

Josh Anders

$X.X Geoff. of increased as loss per downtime loss related you, is We Thank of to common for $X.XX or Hurricane Harvey per XXXX approximately our a primarily per and loss $X.XX quarter. for $X.X third due a the net quarter $X net reported million net common compared $X.X common $X.XX per million quarter as for third one-time third several charges a the or loss $X.XX of of or basis, XXXX. of for to the XXXX. of to share net share of during The million, the share third On was quarter million XXXX to adjusted or loss common an the share quarter compared

additional the have includes charge our upstream to million industry. updated in of VestaCare as start and the it slower estimates the much The related a on as have This our subsidiary making medical to cost our off of of Chapter on third XXXX sheet impairment quarter $X.X no investment investments the a than currently balance intentions of is XX total in our $X.X includes we we marks last investment medical-related finishing also The a process. we million anticipated. held quarter

in XXXX. September XXXX. have for program charge retired retirement court plan third majority early Corporation to voluntary a of Resources took The XXXX. the Delaware quarter $X.X Adams company Exploration for program The a million during the XX, expect participants end early We effective voluntary the a of by confirmed retirement of

As year result $X a initiative. this per starting savings of mentioned million approximately as company XXXX of earlier, in expects the

new and $XXX,XXX. we our XX on a capital paid for of $X.X We was approximately tractors $X.X million quarter division. $X.XX share, XXXX, dividends of capital the new During GulfMark. of third recorded for during the capital for related our majority quarter tractors entered or to of per GulfMark lease million The into

operational equipment to will as are We competitive. rates continue lease long as

million the million $XXX of no credit and our letter credit of XXXX end was third million of cash liquidity consisting quarter outstanding of the facility. $XX at $XX of approximately of on letters Our

no have short-term to continue which options debt as a with provides us opportunities. lot of to continue long-term analyze we We or

balance crude cash XX in like retiring but October down of this joining approximately $XXX rise Service dedication inventory has for in the Roycraft million, to He from Company. XXX,XXX Hurricane was be the up at we storage Harvey oil was barrels will end our quarter level Geoff XXXX. XX, million was In XX% XXXX’s XXX,XXX would inventory announced and December. that of earlier. his from to discussed that recognize due of second Transport Service disruptions $X closing, the quarter been years Transport XXXX, of is thank Our approximately as This On the barrels to President of Company. second our Brown organization approximately for I Jim us and Kevin with to

the us. Coast. our ahead advantage activity work of Geoff do to low lot the we advantage of a is major Service place a With have United attractive in as take operating Transport in core poised prices years and forward We States well-positioned thanks of are GulfMark Service to discussed, coming basins natural take and in of to to levels Transport’s look position that increased across gas refining to taking that the and very marketplace investments quarters Gulf

Q&A front, and [No Thank to and on will opportunities to past from the a but employees development great the session our continue Hurricane event] this over your as for have will remained disciplined. weekend. you several your we business We Harvey. today We drivers weeks appreciate recovered analyze resolve time for

Operator

you joining And Resources & this quarter us for conference today. Thank concludes Adams Energy’s call. third

Adams Resources & Energy (AE) 11 Nov 172017 Q3 Earnings call transcript