ADAMS RESOURCES & ENERGY, INC. HOUSTON, Aug. 8, 2016 /PRNewswire/ -- Adams Resources & Energy, Inc. (NYSE MKT:AE) announced second quarter 2016 unaudited net earnings of $3,404,000 or $.81 per common share. Revenues for the quarter totaled $293,163,000. Current period net earnings compare to unaudited second quarter 2015 net earnings of $4,340,000 or $1.03 per common share.
Thomas S. Smith, President and Chief Executive Officer, attributed the 2016 earnings decline to reduced volumes and unit margins within the Company's crude oil marketing business. The current commodity price for crude has suppressed drilling and production in the Company's area of interest and competition has stiffened for the fewer barrels available.
A summary of operating results is as follows:
Second Quarter
--------------
2016 2015
---- ----
Operating Earnings (Expense)
Marketing $7,235,000 $9,842,000
701,000 1,169,000
Oil and natural gas (397,000) (1,772,000)
Administrative expenses (1,938,000) (2,318,000)
---------- ----------
5,601,000 6,921,000
Interest income, net 96,000 95,000
Equity investment, net of tax (136,000) -
Income tax (provision) (2,157,000) (2,676,000)
---------- ----------
Net earnings $3,404,000 $4,340,000
========== ==========
The Company's Board of Directors also declared a quarterly cash dividend in the amount of $.22 (twenty-two cents) per common share, payable on September 19, 2016 to shareholders of record as of September 6, 2016.
The Company's quarterly report on Form 10-Q for the period ended June 30, 2016 will be filed with the Securities and Exchange Commission on August 9, 2016 and will be available on the Company's website at adamsresources.com.
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 and potential adverse world economic conditions, (b) fluctuations in hydrocarbon commodity prices and margins, (c) variations between commodity 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 and cost of capital, (j) results of current items of litigation, (k) uninsured items of litigation or losses, (l) uncertainty in reserve estimates and cash flows, (n) successful drilling activity and the ability to replace oil and gas reserves, (m) security issues related to drivers and terminal facilities, (o) demand for chemical based trucking operations, (p) financial soundness of customers and suppliers. 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,
-------- --------
2016 2015 2016 2015
---- ---- ---- ----
Revenues $543,694 $1,156,131 $293,163 $600,558
Costs,
expenses
and
other (535,815) (1,144,124) (287,602) (593,542)
Income
tax
(provision) (3,045) (4,570) (2,157) (2,676)
------ ------ ------ ------
Net
earnings $4,834 $7,437 $3,404 $4,340
====== ====== ====== ======
Earnings
per
common
share:
Basic
and
diluted
net
earnings
per
common
share
$1.15 $1.76 $.81 $1.03
===== ===== ==== =====
Dividends
per
common
share $.44 $.44 $.22 $.22
==== ==== ==== ====
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands)
June 30, December 31,
2016
2015
----
ASSETS
Cash $90,771 $91,877
Other current assets 99,148 84,660
------ ------
Total current assets 189,919 176,537
Net property & equipment 51,617 59,715
Deposits and other assets 9,990 6,963
----- -----
$251,526 $243,215
======== ========
LIABILITIES AND EQUITY
Total current liabilities $87,540 $80,197
Other long-term liabilities 8,498 10,508
Shareholders' equity 155,488 152,510
------- -------
$251,526 $243,215
======== ========
Rick Abshire (713) 881-3609
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SOURCE Adams Resources & Energy, Inc.
