HOUSTON, Nov. 13 /PRNewswire-FirstCall/ -- Adams Resources & Energy, Inc., (AMEX:AE), announced third quarter 2007 unaudited net earnings of $2,855,000 or $.68 per common share. Revenues for the quarter totaled $700,295,000. Current earnings compare to unaudited third quarter 2006 net earnings of $1,677,000 or $.40 per common share. For the nine-months ended September 30, 2007, net earnings were $15,053,000 or $3.57 per common share.
Chairman K. S. "Bud" Adams, Jr. attributed the third quarter 2007 earnings improvement to increased commodity prices for crude oil. During the third quarter of 2007 the Company recognized a $1.5 million pre-tax inventory liquidation gain on the sale of crude oil quantities held in inventory. In contrast, during the third quarter of 2006, the Company recognized a $1.5 million pre-tax valuation loss on crude oil inventories due to declining prices during the period. This favorable current year event within the Company's marketing operation was offset by third quarter 2007 dry hole and exploration expenses totaling $1,930,000 compared to only $262,000 of such expenses in the third quarter of 2006.
A summary of operating results is as follows: Third Quarter 2007 2006 Operating Earnings Marketing $5,095,000 $1,890,000 Transportation 1,536,000 1,327,000 Oil and gas (511,000) 1,161,000 General & administrative expenses (2,307,000) (2,110,000) 3,813,000 2,268,000 Interest, net 431,000 198,000 Income tax provision (1,389,000) (789,000) Net earnings $2,855,000 $1,677,000
The Company also announced its Board of Directors has declared an annual cash dividend in the amount of $.47 per common share, payable on December 17, 2007 to shareholders of record as of December 3, 2007. The amount of the dividend is increased by 12 percent, or $.05 per share, over last year. Chairman K. S. "Bud" Adams, Jr., said the Company's continued strength led to the dividend increase.
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 (q) demand for chemical based trucking operations and (r) 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) Nine Months Ended Three Months Ended September September 2007 2006 2007 2006 Revenues $1,756,409 $1,708,026 $700,295 $624,998 Costs, expenses and other (1,732,983) (1,694,070) (696,051) (622,532) Income tax provision (8,373) (4,597) (1,389) (789) Net earnings $15,053 $9,359 $2,855 $1,677 Earnings per share Basic and diluted net earnings per common share $3.57 $2.22 $.68 $.40 Dividends per common share $- $- $- $- UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET (In thousands) September 30, December 31, 2007 2006 ASSETS Cash $25,076 $20,668 Other current assets 232,498 221,122 Total current assets 257,574 241,790 Net property & equipment 42,321 43,316 Other assets 4,802 4,181 $304,697 $289,287 LIABILITIES AND EQUITY Total current liabilities $209,239 $206,582 Long-term debt - 3,000 Deferred taxes and other 6,037 5,337 Shareholders' equity 89,421 74,368 $304,697 $289,287 Contact: Rick Abshire (713) 881-3609
Source: Adams Resources & Energy, Inc.