Le Lézard
Classified in: Oil industry, Business
Subjects: ERN, ERP

ADAMS RESOURCES & ENERGY, INC. ANNOUNCES RESULTS FOR SECOND QUARTER 2022 AND DECLARES QUARTERLY DIVIDEND


HOUSTON, Aug. 11, 2022 /PRNewswire/ -- Adams Resources & Energy, Inc. (NYSE AMERICAN: AE) ("Adams" or the "Company") today announces operational and financial results for the three months ended June 30, 2022 and declares a quarterly cash dividend of $0.24 per common share. 

Q2 2022 Financial Highlights

Adjusted net earnings (losses), adjusted earnings (losses) per diluted common share and adjusted cash flow are non-generally accepted accounting principle ("non-GAAP") financial measures that are defined and reconciled in the financial tables later in this release. 

Additional Q2 2022 Highlights

Kevin J. Roycraft, Adams' Chief Executive Officer, said, "We are delighted to report continued momentum through the second quarter, resulting in a strong first half of 2022 both operationally and financially.  All three of our segments made important progress on their strategic initiatives designed to sustain profitability and grow their respective businesses for the long-term benefit of our shareholders.  I want to thank all of our team members for their steadfast dedication to providing our customers with a safe, efficient and best-in-class service offering." 

Capital Investments and Dividends

During the second quarter of 2022, the Company spent capital of $1.1 million for tractors, trailers and other field equipment.  In addition, Adams paid dividends of $1.1 million, or $0.24 per common share.    

As part of Adams' on-going capital allocation strategy, the Board of Directors has declared a quarterly cash dividend for the second quarter of 2022 of $0.24 per common share, payable on September 23, 2022, to shareholders of record as of September 9, 2022.  Adams' has consistently paid a dividend since 1994.    

Outlook

Mr. Roycraft concluded, "We look forward to further executing our strategic plan to drive increased efficiencies across the entire organization.  We continue to have a strong financial position, which includes a liquidity position of more than $102 million at the end of this year's second quarter.  As in the past, we will continue to leverage our significant operational expertise and financial flexibility to execute on opportunities designed to prudently grow our business.  We remain laser focused on providing significant long-term value for our shareholders, demonstrated by the regular return on capital through our consistent payment of quarterly cash dividends."

Use of Non-GAAP Financial Measures

This press release and accompanying schedules includes the non-GAAP financial measures of adjusted cash flow, adjusted net earnings (losses) and adjusted earnings (losses) per common share.  The accompanying schedules provide definitions of these non-GAAP financial measures and reconciliations to their most directly comparable financial measures calculated and presented in accordance with GAAP.  Company management believes these measures are useful indicators of the financial performance of our business and uses these measurements as aids 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.  Our non-GAAP financial measures should not be considered as alternatives to GAAP measures such as net income, operating income, net cash flow provided by operating activities, earnings per share or any other measure of financial performance calculated and presented in accordance with GAAP.  Adams' non-GAAP financial measures 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.  The non-GAAP financial measures are defined and reconciled in the financial tables below. 

About Adams Resources & Energy, Inc.

Adams Resources & Energy, Inc. is engaged in crude oil marketing, transportation, terminalling and storage and tank truck transportation of liquid chemicals and dry bulk through its subsidiaries, GulfMark Energy, Inc., Service Transport Company, Victoria Express Pipeline, LLC and GulfMark Terminals, LLC.  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, and other aspects of our operations or operating results. 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, 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
Gary Guyton or Steven Hooser
Three Part Advisors
(214) 442-0016

 

ADAMS RESOURCES & ENERGY, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)




Three Months Ended


Six Months Ended



June 30,


June 30,



2022


2021


2022


2021

Revenues:









Marketing


$       962,516


$       463,092


$    1,710,071


$       767,115

Transportation


29,534


23,497


56,224


44,732

Pipeline and storage


?


155


?


388

Total revenues


992,050


486,744


1,766,295


812,235










Costs and expenses:









Marketing


955,511


453,081


1,691,158


748,288

Transportation


23,674


19,078


44,539


36,538

Pipeline and storage


606


488


1,160


1,032

General and administrative


4,211


2,961


8,229


6,337

Depreciation and amortization


5,088


4,801


10,101


9,854

Total costs and expenses


989,090


480,409


1,755,187


802,049










Operating earnings


2,960


6,335


11,108


10,186










Other income (expense):









Interest and other income


303


62


327


196

Interest expense


(136)


(204)


(250)


(424)

Total other (expense) income, net


167


(142)


77


(228)










Earnings before income taxes


3,127


6,193


11,185


9,958

Income tax provision


(651)


(1,484)


(2,619)


(2,441)










Net earnings


$           2,476


$           4,709


$           8,566


$           7,517










Earnings per share:









Basic net earnings per common share


$              0.57


$              1.11


$              1.96


$              1.77

Diluted net earnings per common share


$              0.56


$              1.10


$              1.95


$              1.76










Dividends per common share


$              0.24


$              0.24


$              0.48


$              0.48










 

ADAMS RESOURCES & ENERGY, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)




June 30,


December 31,



2022


2021

ASSETS





Current assets:





Cash and cash equivalents


$           67,728


$           97,825

Restricted cash


7,853


9,492

Accounts receivable, net of allowance for doubtful accounts


267,634


137,789

Accounts receivable ? related party


2


2

Inventory


61,281


18,942

Derivative assets


1,501


347

Income tax receivable


?


6,424

Prepayments and other current assets


2,007


2,389

Total current assets


408,006


273,210






Property and equipment, net


84,528


88,036

Operating lease right-of-use assets, net


6,437


7,113

Intangible assets, net


2,938


3,317

Other assets


2,714


3,027

Total assets


$         504,623


$         374,703






LIABILITIES AND SHAREHOLDERS' EQUITY





Current liabilities:





Accounts payable


$         289,381


$         168,224

Derivative liabilities


848


324

Current portion of finance lease obligations


4,308


3,663

Current portion of operating lease liabilities


2,228


2,178

Other current liabilities


14,207


11,622

Total current liabilities


310,972


186,011

Other long-term liabilities:





Asset retirement obligations


2,406


2,376

Finance lease obligations


8,609


9,672

Operating lease liabilities


4,205


4,938

Deferred taxes and other liabilities


10,979


11,320

Total liabilities


337,171


214,317






Commitments and contingencies










Shareholders' equity


167,452


160,386

Total liabilities and shareholders' equity


$         504,623


$         374,703

 

ADAMS RESOURCES & ENERGY, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)




Six Months Ended



June 30,



2022


2021

Operating activities:





Net earnings


$              8,566


$              7,517

Adjustments to reconcile net earnings to net cash





(used in) provided by operating activities:





Depreciation and amortization


10,101


9,854

Gains on sales of property


(938)


(265)

Provision for doubtful accounts


(8)


(2)

Stock-based compensation expense


458


417

Deferred income taxes


(332)


(1,636)

Net change in fair value contracts


(630)


(25)

Changes in assets and liabilities:





Accounts receivable


(129,837)


(26,109)

Accounts receivable/payable, affiliates


?


(4)

Inventories


(42,339)


(10,376)

Income tax receivable


6,424


7,442

Prepayments and other current assets


382


842

Accounts payable


121,144


63,831

Accrued liabilities


2,614


1,235

Other


217


(614)

Net cash (used in) provided by operating activities


(24,178)


52,107






Investing activities:





Property and equipment additions


(4,783)


(3,602)

Proceeds from property sales


1,374


1,316

Net cash used in provided by investing activities


(3,409)


(2,286)






Financing activities:





Borrowings under Credit Agreement


30,000


8,000

Repayments under Credit Agreement


(30,000)


?

Principal repayments of finance lease obligations


(2,306)


(2,123)

Payment for financed portion of VEX acquisition


?


(10,000)

Net proceeds from sale of equity


283


?

Dividends paid on common stock


(2,126)


(2,062)

Net cash used in financing activities


(4,149)


(6,185)






(Decrease) Increase in cash and cash equivalents, including restricted cash


(31,736)


43,636

Cash and cash equivalents, including restricted cash, at beginning of period


107,317


52,065

Cash and cash equivalents, including restricted cash, at end of period


$            75,581


$            95,701

 

ADAMS RESOURCES & ENERGY, INC. AND SUBSIDIARIES

NON-GAAP RECONCILIATIONS

(In thousands, except per share data)




Three Months Ended


Six Months Ended



June 30,


June 30,



2022


2021


2022


2021

Reconciliation of Adjusted Cash Flow to Net
Earnings:









Net earnings


$           2,476


$           4,709


$           8,566


$           7,517

Add (subtract):









Income tax provision


651


1,484


2,619


2,441

Depreciation and amortization


5,088


4,801


10,101


9,854

Gains on sales of property


(447)


(182)


(938)


(265)

Stock-based compensation expense


263


232


458


417

Inventory liquidation gains


?


(3,650)


(7,184)


(10,593)

Inventory valuation losses


1,533


?


?


?

Net change in fair value contracts


(610)


(4)


(630)


(25)

Adjusted cash flow


$           8,954


$           7,390


$         12,992


$           9,346

 



Three Months Ended


Six Months Ended



June 30,


June 30,



2022


2021


2022


2021

Adjusted net earnings (losses) and earnings









(losses) per common share (Non-GAAP):









Net earnings


$           2,476


$           4,709


$           8,566


$           7,517

Add (subtract):









Gains on sales of property


(447)


(182)


(938)


(265)

Stock-based compensation expense


263


232


458


417

Net change in fair value contracts


(610)


(4)


(630)


(25)

Inventory liquidation gains


?


(3,650)


(7,184)


(10,593)

Inventory valuation losses


1,533


?


?


?

Tax effect of adjustments to earnings (losses)


(155)


757


1,742


2,197

Adjusted net earnings (losses)


$           3,060


$           1,862


$           2,014


$             (752)










Adjusted earnings (losses) per common share


$              0.69


$              0.44


$              0.46


$            (0.19)

 

ADAMS RESOURCES & ENERGY, INC. AND SUBSIDIARIES

NON-GAAP RECONCILIATIONS

(In thousands)




Three Months Ended


Six Months Ended



June 30,


June 30,



2022


2021


2022


2021

Reconciliation of Adjusted Cash Flow to Net Cash

   (Used in) Provided by Operating Activities:







Net cash (used in) provided by operating activities


$        (30,051)


$         29,106


$        (24,178)


$         52,107

Add (subtract):









Income tax provision


651


1,484


2,619


2,441

Deferred income taxes


893


807


332


1,636

Provision for doubtful accounts


3


1


8


2

Inventory liquidation gains


?


(3,650)


(7,184)


(10,593)

Inventory valuation losses


1,533


?


?


?

Changes in assets and liabilities


35,925


(20,358)


41,395


(36,247)

Adjusted cash flow


$           8,954


$           7,390


$         12,992


$           9,346

 

SOURCE Adams Resources & Energy, Inc.


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