8-K 1 form8k.htm ADAMS RESOURCES & ENERGY, INC. 8-K 9-30-2007 form8k.htm

SECURITIES AND EXCHANGE COMMISSION


Washington, D.C. 20549


     



FORM 8-K

CURRENT REPORT


Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):  November 13, 2007

 
ADAMS RESOURCES & ENERGY, INC.
  
 
(Exact name of registrant as specified in its charter)
  
     
     
Delaware
  
1-7908
  
74-1753147
(State or other jurisdiction of incorporation)
  
(Commission file number)
  
(IRS employer
identification no.)
     
     
4400 Post Oak Pkwy, Suite 2700, Houston, Texas
  
77027
(Address of principal executive offices)
  
(Zip code)
     
   
(713) 881-3600
    
   
(Registrant’s telephone number, including area code)
    



 Item 2.02.  Results of Operations and Financial Condition.

On November 13, 2007, Adams Resources & Energy, Inc., a Delaware corporation, issued a press release announcing its financial results for the third quarter ended September 30, 2007.  A copy of the earnings release is furnished as Exhibit 99.1 to this report and is incorporated herein by reference.  The information in this Current Report on Form 8-K, including the exhibit, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


 
ADAMS RESOURCES & ENERGY, INC.
   
   
   
Date:  November 13, 2007
By:/s/ Richard B. Abshire
 
Richard B. Abshire
 
Chief Financial Officer



                                        Exhibit 99.1
FOR IMMEDIATE RELEASE
Rick Abshire  (713) 881-3609

ADAMS RESOURCES ANNOUNCES THIRD QUARTER EARNINGS
AND A 12% DIVIDEND INCREASE

Houston (November 13, 2007) -- 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