HOUSTON, Aug. 13 /PRNewswire-FirstCall/ -- Adams Resources & Energy, Inc. (Amex: AE) announced second quarter 2008 unaudited net earnings of $4,825,000 or $1.15 per common share. Revenues for the quarter totaled $1,280,352,000. Current earnings compare to unaudited second quarter 2007 net earnings of $11,286,000 or $2.67 per common share. For the six months ended June 30, 2008, net earnings were $7,036,000 or $1.67 per common share.
Chairman and Chief Executive Officer, K.S. "Bud" Adams, Jr., attributed the comparative current year earnings decline to the non-recurrence of a $7.2 million second quarter 2007 after-tax gain from the sale of certain producing oil and gas properties. The comparative effect of last year's gain was partially offset by $2.5 million in current period after-tax inventory liquidation gains, as the company sold crude oil inventories into a rising market.
A summary of operating results is as follows: Second Quarter 2008 2007 Operating Earnings (Expense) Marketing $ 7,172,000 $ 5,216,000 Transportation 1,371,000 2,433,000 Oil and gas 1,093,000 12,528,000 General &administrative expenses (2,503,000) (2,582,000) 7,133,000 17,595,000 Interest, net 175,000 424,000 Income tax provision (2,483,000) (6,733,000) Net earnings $ 4,825,000 $ 11,286,000
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, 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.
Rick Abshire (713) 881-3609 UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (In thousands, except per share data) Six Months Ended Three Months Ended June 30, June 30, 2008 2007 2008 2007 Revenues $ 2,246,340 $ 1,056,114 $ 1,280,352 $ 569,748 Costs, expenses and other (2,235,680) (1,036,932) (1,273,044) (551,729) Income tax provision (3,624) (6,984) (2,483) (6,733) Net earnings $7,036 $12,198 $4,825 $11,286 Earnings per share Basic and diluted net earnings per common share $ 1.67 $ 2.89 $ 1.15 $ 2.67 Dividends per common share $ - $ - $ - $ - UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET (In thousands) June 30, December 31, 2008 2007 ASSETS Cash $22,676 $23,697 Other current assets 425,192 288,196 Total current assets 447,868 311,893 Net property & equipment 41,645 39,698 Other assets 7,733 5,484 $497,246 $357,075 LIABILITIES AND EQUITY Total current liabilities $392,336 $261,321 Deferred taxes and other 8,432 6,312 Shareholders' equity 96,478 89,442 $497,246 $357,075
SOURCE Adams Resources & Energy, Inc.