AE Adams Resources and Energy Inc

Adams Resources Announces Second Quarter Earnings HOUSTON, Aug. 11 /PRNewswire-FirstCall/ -- 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) 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 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) 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 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 Dividends per common share $ --- $ --- $ --- $ --- UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET (In thousands) June 30, December 31, 2004 2003 ASSETS Cash $ 17,562 $ 28,342 Other current assets 173,016 157,309 Total current assets 190,578 185,651 Net property & equipment 24,943 24,407 Other assets 182 203 $ 215,703 $ 210,261 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 CONTACT: Jim Smith (713)881-3662 DATASOURCE: Adams Resources & Energy, Inc. CONTACT: Jim Smith of Adams Resources & Energy, Inc., +1-713-881-3662

Copyright