HOUSTON, March 15, 2017 /PRNewswire/ — Adams Resources & Energy, Inc., (NYSE MKT: AE) (“Adams” or the “Company”) announced an unaudited fourth quarter 2016 net loss of $0.2 million or $0.04 per common share on revenues of $299.0 million. This compares to an unaudited net loss of $8.4 million or $1.99 per common share on revenues of $348.3 million for the fourth quarter of 2015. For the full year 2016, the Company had net income of $2.5 million or $0.60 per share on revenues of $1.1 billion.
2016 Highlights:
- Gross revenues of over $1 billion for the full year ended December 31, 2016
- Adams Resources & Energy, Inc’s crude oil and transportation subsidiary, GulfMark Energy, Inc., marketed approximately 73,000 barrels of oil per day during 2016
- 2016 marked the beginning of our effort to diversify offerings at the transportation subsidiary by trucking dry bulk materials
- Generated positive free cash flow (cash flow from operations before changes in working capital less capital expenditures) during 2016
- Dividend of $0.88 per share for the year ended December 31, 2016
- No short or long term debt as of December 31, 2016
- Over $147 million of liquidity ($87 million of cash and cash equivalents and $60 million of undrawn letter of credit facility) at year-end 2016
“During 2016, Adams took significant steps to broaden our service offerings including beginning to diversify into dry bulk transportation and focusing on gaining access to new areas within our crude oil marketing and transportation segment. During 2017, we plan to continue to find ways to leverage our existing businesses and focus on strategic business development efforts,” said Thomas S. Smith, President and Chief Executive Officer.
During the fourth quarter of 2016, the Company recognized a $0.2 million pre-tax, non-cash impairment charge related to non-core acreage. In the fourth quarter of 2015, as a result of a decline in natural gas and crude oil prices, the Company recognized a $10.9 million pretax non-cash impairment of oil and gas properties. The Company’s capital structure remains sound and net cash provided by operating activities before changes in working capital totaled $20.8 million for the full year 2016, down from $30.2 million for the year ended December 31, 2015 (see reconciliation table at the end of this press release). The Company continues to have no bank debt or other forms of debenture obligations and the cash balance at December 31, 2016 totaled $87.3 million, down from $91.9 million as of December 31, 2015.
Capital Investments and Dividends
During 2016 the Company invested $13.2 million of capital and paid dividends of $3.7 million ($0.88 per share). The Company invested $6.9 million in our truck transportation division, $4.7 million in medical management, $1.3 million in the crude oil marketing segment and less than $1 million in the upstream operations of Adams. A substantial portion of the $6.9 million invested in the truck transportation business was related to expansion of the Company’s Houston terminal which will allow for further strategic diversification opportunities within the segment. Adams currently has no plans to pursue further investments in medical management services.
Josh C. Anders
(281) 974-9442
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UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS |
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|
(In thousands, except per share data) |
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|
Year Ended |
Three Months Ended |
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|
December 31, |
December 31, |
|||
|
2016 |
2015 |
2016 |
2015 |
|
|
Revenues |
$ 1,099,540 |
$ 1,944,279 |
$ 298,969 |
$ 348,255 |
|
Costs, expenses and other |
(1,093,173) |
(1,934,556) |
(298,807) |
(351,184) |
|
Impairment of oil and natural gas properties |
(313) |
(12,082) |
(226) |
(10,891) |
|
Interest Income, net |
580 |
314 |
136 |
82 |
|
Income tax (provision) benefit |
(2,691) |
770 |
(240) |
5,334 |
|
Earnings (loss) from continuing operations |
3,943 |
(1,275) |
(168) |
(8,404) |
|
Loss from equity investments, net of tax |
(1,430) |
– |
– |
– |
|
Net earnings (loss) |
$ 2,513 |
$ (1,275) |
$ (168) |
$ (8,404) |
|
Earnings (loss) per common share: |
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|
From continuing operations |
$ .94 |
$ (.30) |
$ (.04) |
$ (1.99) |
|
From equity investments |
(.34) |
– |
– |
– |
|
Basic and diluted net earnings per common share |
$ 0.60 |
$ (0.30) |
$ (0.04) |
$ (1.99) |
|
Dividends per common share |
$ 0.88 |
$ 0.88 |
$ 0.22 |
$ 0.22 |
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UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET |
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|
(In thousands) |
||
|
December 31, |
December 31, |
|
|
2016 |
2015 |
|
|
ASSETS |
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|
Cash |
$ 87,342 |
$ 91,877 |
|
Other current assets |
105,176 |
84,660 |
|
Total current assets |
192,518 |
176,537 |
|
Net property & equipment |
46,325 |
59,715 |
|
Deposits and other assets |
8,029 |
6,963 |
|
$ 246,872 |
$ 243,215 |
|
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LIABILITIES AND EQUITY |
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|
Total current liabilities |
$ 86,074 |
$ 80,197 |
|
Other liabilities and deferred taxes |
9,486 |
10,508 |
|
Shareholders’ equity |
151,312 |
152,510 |
|
$ 246,872 |
$ 243,215 |
|
|
Adams Resources & Energy, Inc. and Subsidiaries |
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Unaudited Consolidated Statement of Cash Flows |
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|
(In thousands) |
||
|
Year Ended |
||
|
2016 |
2015 |
|
|
CASH PROVIDED BY OPERATIONS: |
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|
Net earnings (loss) |
$ 2,513 |
$ (1,275) |
|
Adjustments to reconcile net earnings to net cashfrom operating activities- |
||
|
Depreciation, depletion and amortization |
18,792 |
23,717 |
|
Property sale (gains) other |
(1,966) |
(535) |
|
Dry hole costs incurred |
– |
817 |
|
Impairment of oil and natural gas properties |
313 |
12,082 |
|
Provision for doubtful accounts |
19 |
27 |
|
Deferred income taxes (includes equity investments) |
(857) |
(4,843) |
|
Net change in fair value contracts |
(243) |
188 |
|
Equity investment (earnings) losses |
468 |
– |
|
Impairment of equity investment |
1,732 |
– |
|
Decrease (increase) in accounts receivable |
(15,368) |
72,594 |
|
Decrease (increase) in inventories |
(5,399) |
5,810 |
|
Decrease (increase) in income tax receivable |
(148) |
(1,617) |
|
Decrease (increase) in prepayments |
492 |
8,351 |
|
Increase (decrease) in accounts payable |
6,984 |
(87,404) |
|
Increase (decrease) in accrued and other liabilities |
52 |
(166) |
|
Other changes, net |
(440) |
(2,269) |
|
Net cash provided by operating activities |
6,944 |
25,477 |
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INVESTING ACTIVITIES: |
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|
Property and equipment additions |
(8,484) |
(11,074) |
|
Insurance and state collateral (deposits) refunds |
1,710 |
283 |
|
Investments |
(4,700) |
– |
|
Proceeds from property sales |
3,706 |
719 |
|
Net cash (used in) investing activities |
(7,768) |
(10,072) |
|
FINANCING ACTIVITIES: |
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|
Dividend payments |
(3,711) |
(3,712) |
|
Net cash (used in) financing activities |
(3,711) |
(3,712) |
|
Increase (decrease) in cash and cash equivalents |
(4,535) |
11,693 |
|
Cash and cash equivalents at beginning of year |
91,877 |
80,184 |
|
Cash and cash equivalents at end of year |
$ 87,342 |
$ 91,877 |
|
Adams Resources & Energy, Inc. and Subsidiaries |
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|
Unaudited Operating Cash Flow Before Changes in Working Capital Reconciliation |
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|
(In thousands) |
||
|
Year Ended |
||
|
2016 |
2015 |
|
|
Operating Cash Flow Before Changes in Working Capital Reconciliation: |
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|
Net earnings (loss) |
$ 2,513 |
$ (1,275) |
|
Adjustments to reconcile net earnings to net cash from operating activities- |
||
|
Depreciation, depletion and amortization |
18,792 |
23,717 |
|
Property sale (gains) other |
(1,966) |
(535) |
|
Dry hole costs incurred |
– |
817 |
|
Impairment of oil and natural gas properties |
313 |
12,082 |
|
Provision for doubtful accounts |
19 |
27 |
|
Deferred income taxes (includes equity investments) |
(857) |
(4,843) |
|
Net change in fair value contracts |
(243) |
188 |
|
Equity investment (earnings) losses |
468 |
– |
|
Impairment of equity investment |
1,732 |
– |
|
Operating Cash Flow Before Changes in Working Capital |
$ 20,771 |
$ 30,178 |
