August 12, 2010 at 12:44 PM EDT
Adams Resources Announces Second Quarter Earnings

HOUSTON, Aug. 12 /PRNewswire-FirstCall/ -- Adams Resources & Energy, Inc. (NYSE Amex: AE) announced second quarter 2010 unaudited net earnings of $1,685,000 or $.39 per common share.  Revenues for the quarter totaled $547,141,000. Current earnings compare to unaudited second quarter 2009 net earnings of $2,734,000 or $.65 per common share.  For the six months ended June 30, 2010, net earnings were $3,479,000 or $.82 per common share.

Chairman and Chief Executive Officer, K.S. "Bud" Adams, Jr., attributed the 2010 earnings decline to inventory liquidation losses as average crude oil prices fell during the current period.  For the three months ended June 30, 2010, crude oil prices fell from the $81 per barrel level to approximately $75 per barrel resulting in a $1.2 million pre-tax charge during the quarter.  In contrast, during last year's second quarter, crude oil prices were increasing which produced $2.7 million of pre-tax inventory liquidation gains.  Partially offsetting the adverse impact of the crude oil price change was significant demand improvement within the Company's transportation segment.  Relative to the second quarter of 2009, transportation revenues improved by 33 percent which in turn caused a 250 percent increase in transportation operating results.  

A summary of operating results is as follows:


Second Quarter


2010

2009




Operating Earnings (Expense)



Marketing

$  2,405,000

$  6,799,000

Transportation

2,153,000

612,000

Oil and gas

236,000

(699,000)

Administrative expenses

(2,138,000)

(2,384,000)


2,656,000

4,328,000

Interest income, net

19,000

22,000

Income tax (provision)

(990,000)

(1,616,000)




Net earnings

$  1,685,000

$  2,734,000




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 commodity 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, (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, (q) demand for chemical based trucking operations, (r) successful completion of drilling activity, (s) financial soundness of customers and suppliers and (t) adverse world economic conditions.  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,


2010

2009

2010

2009






Revenues

$  1,080,926

$  855,211

$  547,141

$  515,070






Costs, expenses and other

(1,075,696)

(848,035)

(544,466)

(510,720)

Income tax (provision)

(1,751)

(2,572)

(990)

(1,616)






Net earnings

$  3,479

$  4,604

$  1,685

$  2,734






Basic and diluted net earnings





per common share

$  .82

$  1.09

$  .39

$  .65






Dividends per common share

$  -

$  -

$  -

$  -





UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET

(In thousands)


June 30,

December 31,


2010

2009




ASSETS



Cash

$  38,180

$  16,806

Other current assets

164,886

185,757

Total current assets

203,066

202,563




Net property & equipment

43,776

42,305

Deposits and other assets

4,350

4,533


$  251,192

$  249,401




LIABILITIES AND EQUITY



Total current liabilities

$  162,470

$  164,191

Other long-term liabilities

1,442

1,409

Shareholders' equity

87,280

83,801


$  251,192

$  249,401




Rick Abshire (713) 881-3609

SOURCE Adams Resources & Energy, Inc.

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