HOUSTON, May 8, 2024
/PRNewswire/ -- Adams Resources & Energy, Inc. (NYSE
AMERICAN: AE) ("Adams" or the "Company"), a company engaged in
marketing, transportation, logistics and repurposing of crude oil,
refined products and dry bulk materials, today announced
operational and financial results for the quarter ended
March 31, 2024. The Company also declared a quarterly
cash dividend of $0.24 per common
share.
First Quarter 2024 Financial Summary
- Total revenue of $661.1 million,
versus $650.2 million for the first
quarter of 2023.
- Net loss for the quarter improved $1.5
million year over year to ($0.5)
million, or ($0.19) per common
share.
- EBITDA for the quarter improved $1.6
million year over year to $6.0
million, versus $4.4 million
for the first quarter of 2023. Both net loss and EBITDA include
$1.8 million of inventory liquidation
gains for the first quarter of 2024 versus $1.0 million of inventory valuation losses for
the first quarter of 2023.
- Cash and cash equivalents were $36.6
million as of March 31, 2024,
versus $33.3 million at December 31, 2023.
- Liquidity of $83.6 million at
March 31, 2024, versus $80.3 million at December
31, 2023.
- Paid dividends of $0.24 per
share.
EBITDA (Earnings Before Interest, Taxes, Depreciation and
Amortization) is a non-generally accepted accounting principle
("non-GAAP") financial measure that is defined and reconciled to
net (losses) earnings in the financial tables later in this
release.
"We are encouraged by the multiple signs of progress experienced
across our business this quarter, especially on the margin side, as
we continue to respond to the ongoing macroeconomic headwinds,"
said Kevin Roycraft, President &
CEO of Adams. "We increased volumes and strengthened our
margins within our oil segments and are optimistic these trends can
continue throughout the year. We are also beginning to see signs of
recovery in the chemical transport markets which could lead to a
reversal of rate decreases from last year. We believe we are
well-positioned to benefit when the economy improves, and confident
in our ability to deliver long-term value to our shareholders."
Additional Operational Highlights
- In the first quarter, Adams' crude oil marketing subsidiary,
GulfMark Energy, Inc. ("GulfMark"), marketed 64,634 barrels per day
("bpd") of crude oil during the first quarter of 2024, compared to
94,030 bpd during the first quarter of 2023 and 73,381 bpd during
the fourth quarter of 2023. The decrease in volumes was largely
driven by GulfMark's exit from the Red River trucking operations in
the fourth quarter of 2023.
- The collective fleet of Service Transport Company ("Service
Transport"), Adams' liquid chemicals, pressurized gases, asphalt
and dry bulk transportation subsidiary, traveled 6.29 million miles
during the first quarter of 2024, versus 6.55 million miles during
the first quarter of 2023 and 6.13 million miles during the fourth
quarter of 2023.
- Adams' crude oil pipeline and storage segment, which includes
the Victoria Express Pipeline System, throughput was 11,256 bpd for
the first quarter of 2024, compared to 10,088 bpd for the first
quarter of 2023 and 9,377 bpd for the fourth quarter of 2023, and
terminalling volumes were 11,544 bpd for the first quarter of 2024,
compared to 10,395 bpd in the first quarter of 2023, and 9,589 bpd
for the fourth quarter of 2023.
- Adams' remained solidly positioned with 329,287 barrels of
crude oil inventory at March 31,
2024, compared to 267,731 barrels at December 31, 2023.
Capital Investments and Dividends
During the first quarter of 2024, the Company had capital
expenditures of $6.2 million
primarily for the purchase of seventeen tractors, thirteen trailers
and other various equipment. In addition, Adams paid
dividends of $0.7 million, or
$0.24 per common
share.
As part of Adams' on-going capital allocation strategy, the
Board of Directors declared a quarterly cash dividend for the first
quarter of 2024 of $0.24 per common
share, payable on June 28, 2024, to
shareholders of record as of June 14,
2024.
Use of Non-GAAP Financial Measures
To supplement the Company's financial statements presented in
accordance with generally accepted accounting principles in
the United States ("GAAP"), this
press release and accompanying schedules include the non-GAAP
financial measure of earnings before interest, taxes, depreciation
and amortization (EBITDA). The accompanying schedules provide
a reconciliation of EBITDA to net earnings (losses), its most
directly comparable financial measure calculated and presented in
accordance with GAAP. The Company defines EBITDA as net
earnings (or losses) before interest income or expense, income tax
and depreciation and amortization expense. Company management
believes this measure is a useful indicator of the financial
performance of our business and uses this measurement as an aid in
monitoring the Company's ongoing financial performance from quarter
to quarter and year to year on a regular basis and for benchmarking
against peer companies. Management also believes that EBITDA
is useful to investors as it is a measure commonly used by other
companies in our industry and provides a comparison for investors
for the Company's performance relative to its competitors.
Our non-GAAP financial measure should not be considered as an
alternative to net income or any other measure of financial
performance calculated and presented in accordance with GAAP.
Adams' non-GAAP financial measure may not be comparable to
similarly titled measures of other companies because they may not
calculate such measures in the same manner as Adams
does.
Conference Call
The Company will host a conference call to discuss its first
quarter results on Thursday, May 9,
2024 at 9:00 a.m. ET
(8:00 a.m. CT). To participate in the
live conference call, dial 1-844-413-3976 (Toll-Free) within the
U.S., or 1-412-317-1802 (Toll-Required) outside the U.S., or log
into the webcast, available on Adams' investor relations website at
adamsresources.com/investor-relations. A replay will also be
available on the Company's website or by dialing 1-877-344-7529
(Toll-Free) within the U.S., or 1-412-317-0088 (Toll-Required)
outside the U.S. and entering code 2340534.
About Adams Resources & Energy, Inc.
Adams Resources & Energy, Inc. is engaged in crude oil
marketing, transportation, terminalling and storage, tank truck
transportation of liquid chemicals and dry bulk, interstate bulk
transportation logistics of crude oil, condensate, fuels, oils and
other petroleum products and recycling and repurposing of
off-specification fuels, lubricants, crude oil and other chemicals
through its subsidiaries, GulfMark Energy, Inc., Service Transport
Company, Victoria Express Pipeline, LLC, GulfMark Terminals, LLC,
Firebird Bulk Carriers, Inc. and Phoenix Oil, Inc. For more
information, visit www.adamsresources.com.
Cautionary Statement Regarding Forward-Looking
Statements
This news release contains forward-looking statements.
Forward-looking statements relate to future events and anticipated
results of operations, business strategies, capital deployment
plans and other aspects of our operations or operating results as
well as future industry developments and economic conditions. In
many cases you can identify forward-looking statements by
terminology such as "anticipate," "intend," "plan," "project,"
"estimate," "continue," "potential," "should," "could," "may,"
"will," "objective," "guidance," "outlook," "effort," "expect,"
"believe," "predict," "budget," "projection," "goal," "forecast,"
"target" or similar words. Statements may be forward looking even
in the absence of these particular words. Where, in any
forward-looking statement, the Company expresses an expectation or
belief as to future results or conditions, such expectation or
belief is expressed in good faith and believed to have a reasonable
basis. Forward-looking statements are subject to risks and
uncertainties that could cause actual results to differ materially
from those expressed or implied in the forward-looking statements,
and any other risk factors included in Adams' reports filed with
the Securities and Exchange Commission. However, there can be
no assurance that such expectation or belief will result or be
achieved. Unless legally required, Adams undertakes no obligation
to update publicly any forward-looking statements, whether as a
result of new information, future events or otherwise.
Company Contact
Tracy E. Ohmart
EVP, Chief Financial Officer
tohmart@adamsresources.com
(713) 881-3609
Investor Relations Contact
John Beisler or Steven Hooser
Three Part Advisors
(817) 310-8776
ADAMS RESOURCES
& ENERGY, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands,
except per share data)
|
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
|
2024
|
|
2023
|
Revenues:
|
|
|
|
|
Marketing
|
|
$
623,824
|
|
$
608,476
|
Transportation
|
|
23,231
|
|
26,445
|
Pipeline and
storage
|
|
4
|
|
—
|
Logistics and
repurposing
|
|
13,991
|
|
15,241
|
Total
revenues
|
|
661,050
|
|
650,162
|
|
|
|
|
|
Costs and
expenses:
|
|
|
|
|
Marketing
|
|
615,591
|
|
604,494
|
Transportation
|
|
20,150
|
|
22,413
|
Pipeline and
storage
|
|
697
|
|
938
|
Logistics and
repurposing
|
|
13,837
|
|
13,125
|
General and
administrative
|
|
4,781
|
|
4,772
|
Depreciation and
amortization
|
|
6,355
|
|
7,050
|
Total costs and
expenses
|
|
661,411
|
|
652,792
|
|
|
|
|
|
Operating
losses
|
|
(361)
|
|
(2,630)
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
Interest and other
income
|
|
561
|
|
204
|
Interest
expense
|
|
(793)
|
|
(696)
|
Total other
income (expense), net
|
|
(232)
|
|
(492)
|
|
|
|
|
|
Losses before income
taxes
|
|
(593)
|
|
(3,122)
|
Income tax
benefit
|
|
95
|
|
1,123
|
|
|
|
|
|
Net
losses
|
|
$
(498)
|
|
$
(1,999)
|
|
|
|
|
|
Losses per
share:
|
|
|
|
|
Basic net losses per
common share
|
|
$
(0.19)
|
|
$
(0.79)
|
Diluted net losses per
common share
|
|
$
(0.19)
|
|
$
(0.79)
|
|
|
|
|
|
Dividends per common
share
|
|
$
0.24
|
|
$
0.24
|
ADAMS RESOURCES
& ENERGY, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS
(In
thousands)
|
|
|
|
March
31,
|
|
December
31,
|
|
|
2024
|
|
2023
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
36,603
|
|
$
33,256
|
Restricted
cash
|
|
11,664
|
|
11,990
|
Accounts receivable,
net of allowance for credit losses
|
|
185,296
|
|
164,295
|
Inventory
|
|
27,326
|
|
19,827
|
Prepayments and other
current assets
|
|
2,538
|
|
3,103
|
Total current
assets
|
|
263,427
|
|
232,471
|
|
|
|
|
|
Property and equipment,
net
|
|
104,659
|
|
105,065
|
Operating lease
right-of-use assets, net
|
|
5,385
|
|
5,832
|
Intangible assets,
net
|
|
7,563
|
|
7,985
|
Goodwill
|
|
6,673
|
|
6,673
|
Other assets
|
|
3,124
|
|
3,308
|
Total
assets
|
|
$
390,831
|
|
$
361,334
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
|
$
219,421
|
|
$
183,102
|
Current portion of
finance lease obligations
|
|
6,251
|
|
6,206
|
Current portion of
operating lease liabilities
|
|
2,508
|
|
2,829
|
Current portion of
long-term debt
|
|
2,500
|
|
2,500
|
Other current
liabilities
|
|
15,492
|
|
16,150
|
Total current
liabilities
|
|
246,172
|
|
210,787
|
Other long-term
liabilities:
|
|
|
|
|
Long-term
debt
|
|
16,750
|
|
19,375
|
Asset retirement
obligations
|
|
2,529
|
|
2,514
|
Finance lease
obligations
|
|
18,087
|
|
19,685
|
Operating lease
liabilities
|
|
2,883
|
|
3,006
|
Deferred taxes and
other liabilities
|
|
12,756
|
|
13,251
|
Total
liabilities
|
|
299,177
|
|
268,618
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
91,654
|
|
92,716
|
Total liabilities and
shareholders' equity
|
|
$
390,831
|
|
$
361,334
|
ADAMS RESOURCES
& ENERGY, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In
thousands)
|
|
|
Three Months
Ended
|
|
March
31,
|
|
2024
|
|
2023
|
Operating
activities:
|
|
|
|
Net losses
|
$
(498)
|
|
$
(1,999)
|
Adjustments to
reconcile net losses to net cash
|
|
|
|
provided by operating
activities:
|
|
|
|
Depreciation and
amortization
|
6,355
|
|
7,050
|
Gains on sales
of property
|
(337)
|
|
(31)
|
Provision for
credit losses
|
(23)
|
|
(3)
|
Stock-based
compensation expense
|
307
|
|
283
|
Deferred income
taxes
|
(504)
|
|
(1,424)
|
Net change in
fair value contracts
|
—
|
|
(487)
|
Changes in assets
and liabilities:
|
|
|
|
Accounts
receivable
|
(20,978)
|
|
30,916
|
Accounts
receivable/payable, affiliates
|
—
|
|
(31)
|
Inventories
|
(7,499)
|
|
4,644
|
Prepayments and
other current assets
|
565
|
|
90
|
Accounts
payable
|
36,291
|
|
(12,653)
|
Accrued
liabilities
|
(599)
|
|
(2,514)
|
Other
|
(17)
|
|
(134)
|
Net cash provided by
operating activities
|
13,063
|
|
23,707
|
|
|
|
|
Investing
activities:
|
|
|
|
Property and equipment
additions
|
(6,152)
|
|
(1,900)
|
Proceeds from property
sales
|
962
|
|
441
|
Net cash used in
investing activities
|
(5,190)
|
|
(1,459)
|
|
|
|
|
Financing
activities:
|
|
|
|
Borrowings under Credit
Agreement
|
—
|
|
18,000
|
Repayments under Credit
Agreement
|
(2,625)
|
|
(18,625)
|
Principal repayments of
finance lease obligations
|
(1,553)
|
|
(1,576)
|
Net proceeds from sale
of equity
|
—
|
|
549
|
Dividends paid on
common stock
|
(674)
|
|
(681)
|
Net cash used in
financing activities
|
(4,852)
|
|
(2,333)
|
|
|
|
|
Increase in cash and
cash equivalents, including
restricted cash
|
3,021
|
|
19,915
|
Cash and cash
equivalents, including restricted cash,
at
beginning of period
|
45,246
|
|
31,067
|
Cash and cash
equivalents, including restricted cash,
at end
of period
|
$
48,267
|
|
$
50,982
|
ADAMS RESOURCES
& ENERGY, INC. AND SUBSIDIARIES
NON-GAAP
RECONCILIATION
(In
thousands)
|
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
|
2024
|
|
2023
|
Reconciliation of
EBITDA to Net (Losses) Earnings:
|
|
|
|
|
Net losses
|
|
$
(498)
|
|
$
(1,999)
|
Add
(subtract):
|
|
|
|
|
Interest
income
|
|
(561)
|
|
(204)
|
Interest
expense
|
|
793
|
|
696
|
Income tax
benefit
|
|
(95)
|
|
(1,123)
|
Depreciation and
amortization
|
|
6,355
|
|
7,050
|
EBITDA
|
|
$
5,994
|
|
$
4,420
|
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SOURCE Adams Resources & Energy, Inc.