Delaware | 1-7908 | 74-1753147 | ||||||
(State or other jurisdiction of | (Commission File Number) | (IRS Employer | ||||||
incorporation) | Identification No.) |
17 South Briar Hollow Lane, Suite 100, Houston, Texas | 77027 | ||||
(Address of principal executive offices) | (Zip Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | ||||
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | ||||
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | ||||
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR§230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). | ||||||||
Emerging growth company o | ||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ |
ADAMS RESOURCES & ENERGY, INC. | |||||||||||
Date: | November 7, 2018 | By: | /s/ Tracy E. Ohmart | ||||||||
Tracy E. Ohmart | |||||||||||
Chief Financial Officer | |||||||||||
(Principal Financial Officer and | |||||||||||
Principal Accounting Officer) |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Marketing | $ | 453,626 | $ | 282,229 | $ | 1,266,055 | $ | 872,020 | |||||||||||||||
Transportation | 14,265 | 13,082 | 41,509 | 40,153 | |||||||||||||||||||
Oil and natural gas | — | — | — | 1,427 | |||||||||||||||||||
Total revenues | 467,891 | 295,311 | 1,307,564 | 913,600 | |||||||||||||||||||
Costs and expenses: | |||||||||||||||||||||||
Marketing | 449,367 | 277,906 | 1,250,233 | 860,567 | |||||||||||||||||||
Transportation | 12,412 | 12,668 | 36,603 | 36,681 | |||||||||||||||||||
Oil and natural gas | — | — | — | 951 | |||||||||||||||||||
General and administrative | 1,533 | 2,787 | 6,100 | 6,884 | |||||||||||||||||||
Depreciation, depletion and amortization | 2,340 | 3,240 | 7,014 | 10,772 | |||||||||||||||||||
Total costs and expenses | 465,652 | 296,601 | 1,299,950 | 915,855 | |||||||||||||||||||
Operating earnings (losses) | 2,239 | (1,290) | 7,614 | (2,255) | |||||||||||||||||||
Other income (expense): | |||||||||||||||||||||||
Loss on deconsolidation of subsidiary | — | (1,870) | — | (3,505) | |||||||||||||||||||
Impairment of investment in unconsolidated affiliate | — | (2,500) | — | (2,500) | |||||||||||||||||||
Interest income | 601 | 370 | 1,486 | 789 | |||||||||||||||||||
Interest expense | (26) | (8) | (60) | (10) | |||||||||||||||||||
Total other income (expense), net | 575 | (4,008) | 1,426 | (5,226) | |||||||||||||||||||
(Losses) earnings before income taxes | 2,814 | (5,298) | 9,040 | (7,481) | |||||||||||||||||||
Income tax benefit (provision) | (779) | 2,265 | (2,247) | 3,306 | |||||||||||||||||||
Net (losses) earnings | $ | 2,035 | $ | (3,033) | $ | 6,793 | $ | (4,175) | |||||||||||||||
Earnings (losses) per share: | |||||||||||||||||||||||
Basic net (losses) earnings per common share | $ | 0.48 | $ | (0.72) | $ | 1.61 | $ | (0.99) | |||||||||||||||
Diluted net (losses) earnings per common share | $ | 0.48 | $ | (0.72) | $ | 1.61 | $ | (0.99) | |||||||||||||||
Dividends per common share | $ | 0.22 | $ | 0.22 | $ | 0.66 | $ | 0.66 | |||||||||||||||
September 30, | December 31, | ||||||||||
2018 | 2017 | ||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 130,774 | $ | 109,393 | |||||||
Accounts receivable, net of allowance for doubtful accounts | 108,662 | 121,353 | |||||||||
Inventory | 34,760 | 12,192 | |||||||||
Derivative assets | 263 | 166 | |||||||||
Income tax receivable | — | 1,317 | |||||||||
Prepayments and other current assets | 1,271 | 1,264 | |||||||||
Total current assets | 275,730 | 245,685 | |||||||||
Property and equipment, net | 30,918 | 29,362 | |||||||||
Investment in unconsolidated affiliate | 425 | 425 | |||||||||
Cash deposits and other | 6,239 | 7,232 | |||||||||
Total assets | $ | 313,312 | $ | 282,704 | |||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 146,895 | $ | 124,706 | |||||||
Accounts payable – related party | 6 | 5 | |||||||||
Derivative liabilities | 247 | 145 | |||||||||
Current portion of capital lease obligations | 568 | 338 | |||||||||
Other current liabilities | 8,219 | 4,404 | |||||||||
Total current liabilities | 155,935 | 129,598 | |||||||||
Other long-term liabilities: | |||||||||||
Asset retirement obligations | 1,414 | 1,273 | |||||||||
Capital lease obligations | 2,041 | 1,351 | |||||||||
Deferred taxes and other liabilities | 2,655 | 3,363 | |||||||||
Total liabilities | 162,045 | 135,585 | |||||||||
Commitments and contingencies | |||||||||||
Shareholders’ equity | 151,267 | 147,119 | |||||||||
Total liabilities and shareholders’ equity | $ | 313,312 | $ | 282,704 |
Nine Months Ended | |||||||||||
September 30, | |||||||||||
2018 | 2017 | ||||||||||
Operating activities: | |||||||||||
Net (losses) earnings | $ | 6,793 | $ | (4,175) | |||||||
Adjustments to reconcile net (losses) earnings to net cash | |||||||||||
provided by operating activities: | |||||||||||
Depreciation, depletion and amortization | 7,014 | 10,772 | |||||||||
Gains on sales of property | (890) | (347) | |||||||||
Impairment of oil and natural gas properties | — | 3 | |||||||||
Provision for doubtful accounts | (95) | (9) | |||||||||
Stock-based compensation expense | 144 | — | |||||||||
Deferred income taxes | (685) | (1,198) | |||||||||
Net change in fair value contracts | 5 | 48 | |||||||||
Impairment of investment in unconsolidated affiliate | — | 2,500 | |||||||||
Loss on deconsolidation of subsidiary | — | 3,505 | |||||||||
Changes in assets and liabilities: | |||||||||||
Accounts receivable | 12,830 | 5,228 | |||||||||
Accounts receivable/payable, affiliates | 1 | 266 | |||||||||
Inventories | (22,568) | (9,328) | |||||||||
Income tax receivable | 1,317 | (1,412) | |||||||||
Prepayments and other current assets | (7) | 927 | |||||||||
Accounts payable | 22,254 | 9,482 | |||||||||
Accrued liabilities | 3,815 | 465 | |||||||||
Other | (103) | (240) | |||||||||
Net cash provided by operating activities | 29,825 | 16,487 | |||||||||
Investing activities: | |||||||||||
Property and equipment additions | (7,756) | (2,465) | |||||||||
Proceeds from property sales | 1,314 | 430 | |||||||||
Insurance and state collateral refunds | 1,070 | 439 | |||||||||
Net cash used in investing activities | (5,372) | (1,596) | |||||||||
Financing activities: | |||||||||||
Principal repayments of capital lease obligations | (288) | — | |||||||||
Dividends paid on common stock | (2,784) | (2,784) | |||||||||
Net cash used in financing activities | (3,072) | (2,784) | |||||||||
Increase in cash and cash equivalents | 21,381 | 12,107 | |||||||||
Cash and cash equivalents at beginning of period | 109,393 | 87,342 | |||||||||
Cash and cash equivalents at end of period | $ | 130,774 | $ | 99,449 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||||||||||
Reconciliation of Adjusted Cash Flow to Net (Losses) Earnings: | |||||||||||||||||||||||
Net (losses) earnings | $ | 2,035 | $ | (3,033) | $ | 6,793 | $ | (4,175) | |||||||||||||||
Income tax benefit (provision) | 779 | (2,265) | 2,247 | (3,306) | |||||||||||||||||||
Depreciation, depletion and amortization | 2,340 | 3,240 | 7,014 | 10,772 | |||||||||||||||||||
Gains on sales of property | (444) | (218) | (890) | (347) | |||||||||||||||||||
Impairment of oil and natural gas properties | — | — | — | 3 | |||||||||||||||||||
Loss on deconsolidation of subsidiary | — | 1,870 | — | 3,505 | |||||||||||||||||||
Stock-based compensation expense | 141 | — | 144 | — | |||||||||||||||||||
Impairment of investment in unconsolidated affiliate | — | 2,500 | — | 2,500 | |||||||||||||||||||
Inventory liquidation gains | (60) | (1,954) | (2,535) | — | |||||||||||||||||||
Inventory valuation losses | — | — | — | 109 | |||||||||||||||||||
Net change in fair value contracts | 8 | 748 | 5 | 48 | |||||||||||||||||||
Costs of voluntary early retirement program | — | 1,435 | — | 1,435 | |||||||||||||||||||
Insurance proceeds for Hurricane Harvey claims | (610) | — | (610) | — | |||||||||||||||||||
Legal and other accrual reversals | — | — | — | (840) | |||||||||||||||||||
Adjusted cash flow | $ | 4,189 | $ | 2,323 | $ | 12,168 | $ | 9,704 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||||||||||
Adjusted net (losses) earnings and (losses) earnings per common share (Non-GAAP): | |||||||||||||||||||||||
Net (losses) earnings | $ | 2,035 | $ | (3,033) | $ | 6,793 | $ | (4,175) | |||||||||||||||
Add (subtract): | |||||||||||||||||||||||
Loss on deconsolidation of subsidiary | — | 1,870 | — | 3,505 | |||||||||||||||||||
Impairment of investment in unconsolidated affiliate | — | 2,500 | — | 2,500 | |||||||||||||||||||
Gains on sales of property | (444) | (218) | (890) | (347) | |||||||||||||||||||
Impairment of oil and natural gas properties | — | — | — | 3 | |||||||||||||||||||
Stock-based compensation expense | 141 | — | 144 | — | |||||||||||||||||||
Costs of voluntary early retirement program | — | 1,435 | — | 1,435 | |||||||||||||||||||
Net change in fair value of contracts | 8 | 748 | 5 | 48 | |||||||||||||||||||
Inventory liquidation gains | (60) | (1,954) | (2,535) | — | |||||||||||||||||||
Inventory valuation losses | — | — | — | 109 | |||||||||||||||||||
Legal and other accrual reversals | — | — | — | (840) | |||||||||||||||||||
Insurance proceeds for Hurricane Harvey claims | (610) | — | (610) | — | |||||||||||||||||||
Tax effect of adjustments to (losses) earnings | 203 | (1,533) | 817 | (2,245) | |||||||||||||||||||
Adjusted net (losses) earnings | $ | 1,273 | $ | (185) | $ | 3,724 | $ | (7) | |||||||||||||||
Adjusted (losses) earnings per common share | $ | 0.30 | $ | (0.04) | $ | 0.88 | $ | — |
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