November 13, 2008 at 11:01 AM EST
Adams Resources Announces a 6% Dividend Increase and Third Quarter 2008 Results of Operations

HOUSTON, Nov. 13 /PRNewswire-FirstCall/ -- Adams Resources & Energy, Inc., (Amex: AE), announced today its annual cash dividend in the amount of $.50 per common share, payable on December 16, 2008 to shareholders of record as of December 2, 2008. The amount of the dividend is increased by 6 percent over last year. Chairman K. S. "Bud" Adams, Jr., said the Company's strong liquidity and future outlook led to the dividend increase. The Company has been in a position to increase its annual dividend in each of the past six years.

The Company also announced a third quarter 2008 unaudited net loss of $6,276,000 or $1.49 per common share. Revenues for the quarter totaled $1,288,322,000. Current results compare to unaudited third quarter 2007 net earnings of $2,855,000 or $.68 per common share. For the nine months ended September 30, 2008 net earnings were $760,000 or $.18 per share on revenues totaling $3,534,662,000. Net cash provided by operating activities was $28,799,000 for the nine-month period ended September 30, 2008.

Chairman K. S. "Bud" Adams, Jr. attributed the third quarter 2008 earnings decline to the falling commodity price for crude oil. During the third quarter of 2008 the Company recognized an $11.6 million pre-tax inventory liquidation and valuation loss on the market value of crude oil quantities held in inventory. The inventory related loss for the quarter reflected a non-cash charge to earnings and did not impact net cash provided by operating activities. Mr. Adams added that the diversified nature of the Company's lines of business and its avoidance of bank debt provide a degree of stability during uncertain periods.

    A summary of operating results is as follows:



                                                         Third Quarter
                                                      2008           2007

    Operating Earnings (Loss)
      Marketing                                  $(10,179,000)    $5,095,000
      Transportation                                1,615,000      1,536,000
      Oil and gas                                     558,000       (511,000)
      Administrative expenses                      (2,038,000)    (2,307,000)
                                                  (10,044,000)     3,813,000
    Interest income, net                              217,000        431,000
    Income tax  benefit (provision)                 3,551,000     (1,389,000)

    Net earnings (loss)                           $(6,276,000)    $2,855,000

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 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.

     CONTACT:
     Rick Abshire (713) 881-3609

           UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
                    (In thousands, except per share data)

                                   Nine Months Ended     Three Months Ended
                                        September             September
                                    2008       2007       2008        2007

    Revenues                     $3,534,662 $1,756,409 $1,288,322   $700,295

    Costs, expenses and other    (3,533,829)(1,732,983)(1,298,149)  (696,051)
    Income tax  benefit
     (provision)                        (73)    (8,373)     3,551     (1,389)

    Net earnings (loss)                $760    $15,053    $(6,276)    $2,855

    Earnings per share
      Basic and diluted net
      earnings (loss) per
      common share                     $.18      $3.57     $(1.49)      $.68

    Dividends per common share           $-         $-         $-         $-



                  UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET
                                  (In thousands)

                                               September 30,      December 31,
                                                    2008               2007

    ASSETS
      Cash                                        $39,045            $23,697
      Other current assets                        263,450            288,196
        Total current assets                      302,495            311,893

      Net property & equipment                     40,878             39,698
      Other assets                                  4,083              5,484
                                                 $347,456           $357,075

    LIABILITIES AND EQUITY
      Total current liabilities                  $253,496           $261,321
      Deferred taxes and other                      3,758              6,312
      Shareholders' equity                         90,202             89,442
                                                 $347,456           $357,075

SOURCE Adams Resources & Energy, Inc.

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