AE Adams Resources and Energy Inc

Adams Resources Announces Fourth Quarter 2004 Earnings HOUSTON, March 17 /PRNewswire-FirstCall/ -- Adams Resources & Energy, Inc., (AMEX:AE), announced unaudited fourth quarter 2004 net earnings of $2,200,000 or $.52 per common share on revenues totaling $562,294,000. This compares to unaudited fourth quarter 2003 net earnings of $651,000 or $.16 per share on revenues of $422,429,000. Net earnings for 2004 totaled $8,608,000 or $2.04 per share on revenues of $2,069,788,000. A summary of operating results follows: Fourth Quarter 2004 2003 Operating earnings (loss) Marketing $ 3,899,000 $ 2,539,000 Transportation 1,971,000 306,000 Oil and gas 193,000 (395,000) General & administrative (2,293,000) (1,652,000) Interest, net (6,000) 27,000 Income tax (provision) benefit (1,564,000) 196,000 Earnings from continuing operations 2,200,000 1,021,000 Loss from discontinued operation --- (370,000) Net earnings $ 2,200,000 $ 651,000 Chairman K.S. "Bud" Adams, Jr., attributed the earnings increase to improved demand within the Company's petrochemical trucking operation. An improving United States economy and a weakened U.S. dollar exchange rate has stimulated demand for the Company's trucking services leading to increased transportation earnings. Also during the current quarter, the Company sold its claim on the bankrupt estate of Enron Corp to a third party, recognizing a $470,000 gain on the transaction. Mr. Adams also reported the results of 2004's oil and gas exploration efforts. Such efforts yielded estimated oil and gas reserve additions totaling 121,000 barrels of crude oil and 3,166,000 mcf of natural gas. Estimated reserve additions for 2004 represent a 224 percent replacement of 2004's production on an equivalent barrel basis. 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, (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 CONSOLIDATED STATEMENT OF OPERATIONS (In thousands, except per share data) Year Ended Three Months Ended 2004 2003 2004 2003 Revenues $2,069,788 $1,721,929 $ 562,294 $ 422,429 Costs, expenses and other (2,055,868) (1,712,447) (558,530) (421,604) Income tax (provision) benefit (5,059) (3,056) (1,564) 196 Earnings from continuing operations 8,861 6,426 2,200 1,021 Loss from discontinued operation, net of tax (253) (3,232) --- (370) Cumulative effect of accounting change, net of tax --- (92) --- --- Net earnings $ 8,608 $ 3,102 $ 2,200 $ 651 Earnings (loss) per share From continuing operations $ 2.10 $ 1.53 $ .52 $ .24 From discontinued operation (.06) (.77) --- (.08) Cumulative effect of accounting change --- (.02) --- --- Basic and diluted net earnings per Common share $ 2.04 $ .74 $ .52 $ .16 Dividends per common share $ .30 $ .23 $ .30 $ .23 UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET (In thousands) December 31, December 31, 2004 2003 ASSETS Cash $ 19,942 $ 28,342 Other current assets 189,397 157,081 Total current assets 209,339 185,423 Net property & equipment 29,076 24,846 Other assets 439 338 $ 238,854 $ 210,607 LIABILITIES AND EQUITY Total current liabilities $ 173,550 $ 152,665 Long-term debt 11,475 11,475 Deferred taxes and other 4,254 4,235 Shareholders' equity 49,575 42,232 $ 238,854 $ 210,607 Rick Abshire (713) 881-3609 DATASOURCE: Adams Resources & Energy, Inc. CONTACT: Rick Abshire of Adams Resources & Energy, Inc., +1-713-881-3609

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