-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, T99aQaDtbkccG+IpbiSk6vyXsr/ybDeOW8/SEvFJ2QnKa9T6EKxnmp96g5j6kxOy tyMVoJF55Xfz3SdV7ti8Ow== 0000950129-96-000857.txt : 19960802 0000950129-96-000857.hdr.sgml : 19960802 ACCESSION NUMBER: 0000950129-96-000857 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960331 FILED AS OF DATE: 19960515 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: 96564897 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. - FORM 10-Q-3/31/96 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, 1996 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.) 5 Post Oak Park, Suite 2700, Houston, Texas 77027 --------------------------------------------------- (Address of principal executive office & Zip Code) Registrant's telephone number, including area code (713) 881-3600 ----------------- 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 13, 1996 was 4,198,098. 2 ADAMS RESOURCES & ENERGY, INC. AND SUBSIDIARIES UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS (In thousands, except per share data)
Three Months Ended ------------------------- March 31, ------------------------- 1996 1995 ---------- ---------- Revenues: Marketing ..................................... $ 278,203 $ 154,779 Transportation ................................ 5,215 5,510 Oil and gas ................................... 1,483 1,612 ---------- ---------- 284,901 161,901 ---------- ---------- Costs and expenses: Operating Marketing ................................... 276,480 154,083 Transportation .............................. 4,508 4,839 Oil and gas ................................. 384 380 Corporate general and administrative .......... 693 571 Depreciation, depletion and amortization ...... 1,245 892 ---------- ---------- 283,310 160,765 ---------- ---------- Operating earnings .............................. 1,591 1,136 Other income (expense): Property sales and other ..................... 159 -- Interest ..................................... (182) (88) ---------- ---------- (23) (88) ---------- ---------- Earnings before income taxes .................... 1,568 1,048 Income tax provision Current ....................................... 83 39 Deferred ...................................... 450 350 ---------- ---------- 533 389 ---------- ---------- Net earnings .................................... $ 1,035 $ 659 ========== ========== Net earnings per common share ................... $ .25 $ .16 ========== ========== 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 $123,424,000, or 80%, in the comparative current period as a result of (a) increased overall world crude oil prices and (b) increased volumes of crude oil purchased at the wellhead, and (c) a more active crude oil trading effort. Average crude oil prices increased approximately $2 per barrel for the comparative period while average wellhead purchases increased to 55,000 barrels per day in 1996 versus 45,000 per day in 1995. Marketing division operating margins before depreciation for the first three months of 1996 were $1,723,000 versus $696,000 in the similar 1995 period as a result of the combination of factors discussed above. - Transportation Transportation revenues and earnings showed little variation between the comparative periods as market place conditions remained consistent. - Oil and Gas Oil and gas revenues and operating earnings decreased for the comparative current first quarter by approximately 10% to $1,483,000 and $1,099,000 respectively, as a result of reduced oil and gas production volumes. Volumes and prices compare as follows:
First Quarter First Quarter 1996 1995 ------------- ------------- Crude oil Volume 19,900 Bbls. 27,500 Bbls. Average price $ 17.61/Bbl. $ 15.20/Bbl. Natural gas Volume 620,000 Mcf 700,000 Mcf Average price, includes value of associated gas liquids $ 1.79 Mcf $ 1.70 Mcf
3 4 - Other income (expense) 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. Property sales and other earnings of $159,000 result from a gain realized on the sale of seven tank trailers. Interest expense increased because the company increased its level of debt to finance drilling activity. Liquidity and Capital Resources During the first three months of 1996, the Company invested $1,988,000 in property equipment additions with $700,000 of such investment being for the purchase of a refined products warehouse and $681,000 going towards oil and gas drilling efforts. Funding for these investments was derived from the Company generating $2,730,000 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 $742,000 of excess cash flow generated was utilized primarily to reduce 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, 1995 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, 1996 1995 ------------ ------------ (Unaudited) ASSETS Current assets: Cash and cash equivalents ................................... $ 3,608 $ 4,037 Accounts receivable, net .................................... 62,829 50,484 Inventories ................................................. 3,895 3,177 Prepaid and other ........................................... 1,259 1,020 ------------ ------------ Total current assets ........................... 71,591 58,718 ------------ ------------ Property and equipment ........................................ 41,643 40,011 Less - accumulated depreciation, depletion and amortization ........................ (22,036) (21,067) ------------ 19,607 18,944 ------------ ------------ Deferred income taxes ......................................... 1,615 2,065 Other assets .................................................. 1,020 705 ------------ ------------ $ 93,833 $ 80,432 ============ ============ LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable ............................................ $ 62,360 $ 49,537 Accrued and other liabilities ............................... 2,394 2,416 Current maturities of long-term debt ........................ 1,735 1,650 ------------ ------------ Total current liabilities ...................... 66,489 53,603 Long-term debt, less current maturities ....................... 10,077 10,589 Other liabilities ............................................. 554 562 ------------ ------------ 77,120 64,754 ------------ ------------ Shareholders' equity: Preferred stock - $1.00 par value, 1,000,000 shares authorized, none outstanding .......................... -- -- Common stock - $.10 par value, 7,500,000 shares authorized, 4,198,098 and 4,197,598 shares outstanding respectively .............................. 420 420 Contributed capital ......................................... 9,895 9,895 Retained earnings since December 31, 1992 ................... 6,398 5,363 ------------ ------------ Total shareholders' equity .................... 16,713 15,678 ------------ ------------ $ 93,833 $ 80,432 ============ ============
5 6 ADAMS RESOURCES & ENERGY, INC. AND SUBSIDIARIES UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS (In thousands)
Three Months Ended March 31, ------------------------- 1996 1995 ---------- ---------- CASH PROVIDED (USED) BY OPERATIONS: Net earnings ......................................... $ 1,035 $ 659 Items of income not requiring (providing) cash - Depreciation, depletion and amortization ........... 1,245 892 Deferred income tax provision ...................... 450 350 Gain on sale of properties ......................... (159) -- Other, net ......................................... (323) 20 Decrease (increase) in accounts receivable ........... (12,345) (5,126) Decrease (increase) in inventories ................... (718) (1,504) Decrease (increase) in prepaid and other ............. (239) (239) Increase (decrease) in accounts payable .............. 12,823 5,851 Increase (decrease) in accrued liabilities ........... (22) (1,595) ---------- ---------- Net cash provided (required) by operating activities ..................................... 1,747 (692) ---------- ---------- INVESTING ACTIVITIES: Property and equipment additions ..................... (1,988) (3,358) Proceeds from property sales ......................... 239 -- ---------- ---------- Net cash provided used in investing activities .... (1,749) (3,358) ---------- ---------- FINANCING ACTIVITIES: Borrowings from bank ................................. -- 3,188 Repayment of debt .................................... (427) (26) Sales of stock ....................................... -- 6 ---------- ---------- Net cash provided by (used in) financing activities ....................................... (427) 3,168 ---------- ---------- Increase (decrease) in cash and cash equivalents ....... (429) (882) Cash at beginning of period ............................ 4,037 2,695 ---------- ---------- Cash at end of period .................................. $ 3,608 $ 1,813 ========== ========== Supplemental disclosure of cash flow information: Interest paid during the period .................... $ 182 $ 202 ========== ========== 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, 1996 and December 31, 1995 and results of operations and cash flows for the three months ended March 31, 1996 and 1995. 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 ADAMS RESOURCES & ENERGY, INC. AND SUBSIDIARIES PART II. OTHER INFORMATION Item 1. - None Item 2. - None Item 3. - None Item 4. - Submission of Matters to a Vote of Security Holders The 1996 Annual Meeting of Stockholders (the "Meeting") of the Company was held on April 24, 1996. At the Meeting, holders of common stock, $ .10 par value, of the Company ("Common Stock"), elected nine members of the Company's Board of Directors. Out of the 4,198,098 shares of Common Stock entitled to vote at the Meeting, there were 3,638,081 shares of Common Stock voted for the election of the nominees for Directors listed in the proxy statement. Item 6. Exhibits and Reports on Form 8K a. Exhibits - None. 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 13, 1996 By: K. S. ADAMS, JR. ------------------------------ --------------------- K. S. Adams, Jr. Chief Executive Officer RICHARD B. ABSHIRE ------------------------ Richard B. Abshire Chief Financial Officer 9 10 INDEX TO EXHIBITS 27 -- Financial Data Schedule EX-27 2 FINANCIAL DATA SCHEDULE
5 3-MOS DEC-31-1996 MAR-31-1996 3,608 0 63,014 (185) 3,895 71,591 41,643 (22,036) 98,833 66,489 10,077 420 0 0 16,293 93,833 284,901 284,901 281,372 283,310 0 0 182 1,568 533 1,035 0 0 0 1,035 .25 .25
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