-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, UuBnpYsjzjFHLSP/8EWTXQyjG2zlcz13GbeChrVXWZJQNQCrDSqV9eyUioVe4bx2 cxnpc4FLrQxkAMeJl9lDHQ== 0000950129-95-000493.txt : 19950530 0000950129-95-000493.hdr.sgml : 19950530 ACCESSION NUMBER: 0000950129-95-000493 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950331 FILED AS OF DATE: 19950515 SROS: AMEX FILER: COMPANY DATA: COMPANY CONFORMED NAME: ADAMS RESOURCES & ENERGY INC CENTRAL INDEX KEY: 0000002178 STANDARD INDUSTRIAL CLASSIFICATION: 5172 IRS NUMBER: 741753147 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-07908 FILM NUMBER: 95539574 BUSINESS ADDRESS: STREET 1: 6910 FANNIN STREET 2: P O BOX 844 CITY: HOUSTON STATE: TX ZIP: 77001 BUSINESS PHONE: 7137979966 MAIL ADDRESS: STREET 1: P O BOX 844 CITY: HOUSTON STATE: TX ZIP: 77001 FORMER COMPANY: FORMER CONFORMED NAME: ADA RESOURCES INC DATE OF NAME CHANGE: 19790620 10-Q 1 ADAMS RESOURCES & ENERGY, INC 10-Q 03/31/95 1 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) /X/ Quarterly report pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934 For the quarterly period ended March 31, 1995 or / / Transition report pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934 For the transition period from __________________to_____________________ Commission File Number 1-7908 ADAMS RESOURCES & ENERGY, INC. (Exact name of Registrant as specified in its charter) Delaware 74-1753147 - - - - - - ------------------------------- ------------------- (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 6910 Fannin, Houston, Texas 77030 Address of principal executive office & Zip Code) Registrant's telephone number, including area code (713) 797-9966 Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No ______ The number of shares of Common Stock of the Registrant, par value $.10 per share, outstanding at May 1, 1995 was 4,182,096. 2 ADAMS RESOURCES & ENERGY, INC. AND SUBSIDIARIES UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS (IN THOUSANDS, EXCEPT PER SHARE DATA)
Three Months Ended March 31, ------------------------ 1995 1994 --------- ---------- Revenues: Marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $154,779 $130,108 Transportation . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,510 4,867 Oil and gas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,612 684 --------- ---------- 161,901 135,659 --------- ---------- Costs and expenses: Operating Marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 154,083 129,490 Transportation . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,839 4,080 Oil and gas . . . . . . . . . . . . . . . . . . . . . . . . . . . . 380 174 Corporate general and administrative . . . . . . . . . . . . . . . . . 571 546 Depreciation, depletion and amortization . . . . . . . . . . . . . . . 892 415 --------- ---------- 160,765 134,705 --------- ---------- Operating earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,136 954 Other income (expense): Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (88) (20) --------- ---------- (88) (20) --------- ---------- Earnings before income taxes . . . . . . . . . . . . . . . . . . . . . . 1,048 934 Income tax provision Current . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 36 Deferred . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 350 300 --------- ---------- 389 336 --------- ---------- Net earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 659 $ 598 ========= ========== Earnings per common share . . . . . . . . . . . . . . . . . . . . . . . $ .16 $ .14 ========= ========== Dividends per common share . . . . . . . . . . . . . . . . . . . . . . . $ - $ - ========= ==========
The accompanying notes are an integral part of these financial statements. - 2 - 3 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Results of Operations Three Months Comparison - Marketing Gross revenues for the Company's Marketing operations increased by $24,671,000, or 19%, in the comparative current period as a result of generally higher overall world crude oil prices. In contrast to higher crude oil prices, the Company's purchases of crude oil at the wellhead remained consistent at approximately 45,000 barrels per day. The Company's strategy for crude oil marketing is to link purchase and sales contracts to established quotations (postings) that move with general market trends. In this manner, profitability is based on the spread between the going price paid to suppliers at the wellhead and the price received from customers at various delivery points less transportation. Thus, the Company is substantially insulated from the impact of general movements in world crude oil prices. Because of the Company's crude oil marketing strategy, higher world crude oil prices had little or no impact on current operating margins. Marketing division operating margins for the first three months of 1995 were $696,000 versus $618,000 in the similar 1994 period. - Transportation Although strong demand caused transportation revenues to increase by 13% to $5,510,000 for the first three months of 1995, operating margins decreased by 15 % to $671,000. Reduced earnings were primarily caused by a one-time $125,000 charge to write-off the Company's State of Texas operating authority following deregulation of intrastate trucking rates which went into effect on January 1, 1995. The Company had purchased the authority in the 1960's in order to obtain access to the Texas marketplace. With decontrol of rates, maintaining of such authority is no longer necessary. Excluding the effects of decontrol on the fair value of the Company's operating authority, the Company has not experienced any adverse effects from decontrol. - Oil and Gas Oil and gas revenues and operating earnings were each increased by approximately 140% to $1,612,000 and $1,232,000 respectively as a direct result of increased oil and gas production - 3 - 4 volumes stemming from the Company's recent drilling efforts. Volumes and prices compare as follows:
First Quarter First Quarter 1995 1994 ------------- ------------- Crude Oil Volume 27,500 Bbls. 17,500 Bbls. Average price $ 15.20/Bbl. $ 12.85/Bbl. Natural Gas Volume 700,000 Mcf 220,000 Mcf Average price, includes value of associated gas liquids $ 1.70/Mcf $ 2.00/Mcf
- Other The provision for depreciation depletion and amortization is increased in the current quarter with increased capital costs associated with the Company's recent oil and gas drilling activity. Interest expense is also increased because the company increased its level of debt to finance such drilling activity. Liquidity and Capital Resources During the first three months of 1995, the Company invested $3,358,000 in property and equipment additions, with the majority of the investment ($2.4 million) going towards oil and gas drilling efforts. Funding for these investments was derived, in part, from the Company generating $1,901,000 of working capital funds, defined as the sum of net earnings plus the non-cash provisions for depreciation and deferred income taxes not owing as a result of the Company's tax loss carryforward position. The additional $1,457,000 of investment was financed through increased bank debt. Refer to the "Liquidity and Capital Resources" section of the Company's Annual Report on Form 10-K for the year ended December 31, 1994 for additional discussion of the Company's bank relationships, tax loss carryforwards and other matters. - 4 - 5 ADAMS RESOURCES & ENERGY, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET (IN THOUSANDS)
MARCH 31, DECEMBER 31, 1995 1994 ---------- ----------- (UNAUDITED) ASSETS Current assets: Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . $ 1,813 $ 2,695 Accounts receivable, net . . . . . . . . . . . . . . . . . . . . . . . . . 41,078 35,952 Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,722 2,218 Prepaid and other . . . . . . . . . . . . . . . . . . . . . . . . . . . . 791 552 ---------- ----------- Total current assets . . . . . . . . . . . . . . . . . . . . . . . 47,404 41,417 ---------- ----------- Property and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . 38,514 35,230 Less - accumulated depreciation, depletion and amortization . . . . . (16,382) (15,564) ---------- ----------- 22,132 19,666 ---------- ----------- Deferred income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . 375 725 Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 322 493 ---------- ----------- $ 70,233 $ 62,301 ========== =========== LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 41,271 $ 35,420 Accrued and other liabilities . . . . . . . . . . . . . . . . . . . . . . . 792 2,387 Current maturities of long-term debt . . . . . . . . . . . . . . . . . . . 1,695 653 ---------- ----------- Total current liabilities . . . . . . . . . . . . . . . . . . . . . 43,758 38,460 Long-term debt, less current maturities . . . . . . . . . . . . . . . . . . 11,383 9,263 Other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,194 1,345 ---------- ----------- 56,335 49,068 ---------- ----------- Shareholders' equity: Preferred stock - $1.00 par value, 1,000,000 shares authorized, none outstanding . . . . . . . . . . . . . . . . . . . . . . - - Common stock - $0.10 par value, 7,500,000 shares authorized, 4,182,096 and 4,180,596 shares out- standing, respectively . . . . . . . . . . . . . . . . . . . . . . . . . 418 418 Contributed capital . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,476 8,470 Retained earnings, after eliminating $13,931,000 of accumulated deficit on December 31, 1992 . . . . . . . . . . . . . . . . 5,004 4,345 ---------- ----------- Total shareholders' equity . . . . . . . . . . . . . . . . . . . . . 13,898 13,233 ---------- ----------- $ 70,233 $ 62,301 ========== ===========
The accompanying notes are an integral part of these financial statements. - 5 - 6 ADAMS RESOURCES & ENERGY, INC. AND SUBSIDIARIES UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS (IN THOUSANDS)
THREE MONTHS ENDED MARCH 31, -------------------------- 1994 1995 ---------- --------- CASH PROVIDED (USED) BY OPERATIONS: Net earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 659 $ 598 Items of income not requiring (providing) cash - Depreciation, depletion and amortization . . . . . . . . . . . . . . . . 892 415 Deferred income tax provision . . . . . . . . . . . . . . . . . . . . . 350 300 Other, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 (43) Decrease (increase) in accounts receivable . . . . . . . . . . . . . . . . (5,126) (710) Decrease (increase) in inventories . . . . . . . . . . . . . . . . . . . . (1,504) (161) Decrease (increase) in prepaid and other . . . . . . . . . . . . . . . . . (239) (65) Increase (decrease) in accounts payable . . . . . . . . . . . . . . . . . 5,851 1,397 Increase (decrease) in accrued liabilities . . . . . . . . . . . . . . . . (1,595) (673) ---------- --------- Net cash provided by (used in) operating activities . . . . . . . . . . (692) 1,058 ---------- --------- INVESTING ACTIVITIES: Property and equipment additions . . . . . . . . . . . . . . . . . . . . . (3,358) (659) Proceeds from property sales . . . . . . . . . . . . . . . . . . . . . . . - 296 ---------- --------- Net cash provided by (used in) investing activities . . . . . . . . . . (3,358) (363) ---------- --------- FINANCING ACTIVITIES: Borrowings from bank . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,188 - Repayment of debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . (26) (444) Sales of stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 - ---------- --------- Net cash provided by (used in) financing activities . . . . . . . . . . 3,168 (444) ---------- --------- Increase (decrease) in cash . . . . . . . . . . . . . . . . . . . . . . . . . (882) 251 Cash and Cash Equivalents at beginning of period . . . . . . . . . . . . . . 2,695 3,323 ---------- --------- Cash and Cash Equivalents at end of period . . . . . . . . . . . . . . . . . $ 1,813 $ 3,574 ========== ========= Supplemental disclosure of cash flow information: Interest paid during the period . . . . . . . . . . . . . . . . . . . . . $ 202 $ 35 ========== ========= Income taxes paid during the period . . . . . . . . . . . . . . . . . . . . $ - $ - ========== =========
The accompanying notes are an integral part of these financial statements. - 6 - 7 ADAMS RESOURCES & ENERGY, INC. AND SUBSIDIARIES NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS Note 1 - Basis of Presentation The accompanying condensed financial statements are unaudited but, in the opinion of the Company's management, include all adjustments (consisting of normal recurring accruals) necessary for a fair presentation of financial position at March 31, 1995 and December 31, 1994 and results of operations and cash flows for the three months ended March 31, 1995 and 1994. Certain information and note disclosures normally included in annual financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to Securities and Exchange Commission rules and regulations, although the Company believes the disclosures made are adequate to make the information presented not misleading. It is suggested these condensed financial statements be read in conjunction with the financial statements, and the notes thereto, included in the Company's latest annual report on Form 10-K. The interim statement of operations is not necessarily indicative of results to be expected for a full year. - 7 - 8 Item 6. Exhibits and Reports on Form 8K a. Exhibits - Article 5. b. Reports on Form 8-K - None. - 8 - 9 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 thereunto duly authorized. ADAMS RESOURCES & ENERGY, INC. (Registrant) Date: May 9, 1995 By: K. S. ADAMS, JR. ------------------------- --------------------------- K. S. Adams, Jr. Chief Executive Officer RICHARD B. ABSHIRE --------------------------- Richard B. Abshire Chief Financial Officer - 9 - EX-27 2 FINANCIAL DATA SCHEDULE
5 3-MOS DEC-31-1995 JAN-01-1995 MAR-31-1995 1,813 0 41,293 (215) 3,722 47,404 38,514 (16,382) 70,233 43,758 11,383 418 0 0 13,480 70,233 161,901 161,901 159,302 160,765 0 0 88 1,048 389 659 0 0 0 659 .16 .16
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