-----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, A5YS7J/H9ITQFBRnZLULMdTVN8FviBoWr7tXRzWDnXPM/QR4yWCajwMp1p6lntIs juetBDPM4NSt7/+2H0JxjA== 0000950129-96-001826.txt : 19960814 0000950129-96-001826.hdr.sgml : 19960814 ACCESSION NUMBER: 0000950129-96-001826 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960630 FILED AS OF DATE: 19960813 SROS: AMEX FILER: COMPANY DATA: COMPANY CONFORMED NAME: ADAMS RESOURCES & ENERGY INC CENTRAL INDEX KEY: 0000002178 STANDARD INDUSTRIAL CLASSIFICATION: WHOLESALE-PETROLEUM & PETROLEUM PRODUCTS (NO BULK STATIONS) [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: 96610780 BUSINESS ADDRESS: STREET 1: 6603 KIRBYVILLE STREET 2: P O BOX 844 CITY: HOUSTON STATE: TX ZIP: 77033 BUSINESS PHONE: 7136400100 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 6/30/96 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 June 30, 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 July 31, 1996 was 4,198,098. - 1 - 2 ADAMS RESOURCES & ENERGY, INC. AND SUBSIDIARIES UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS (IN THOUSANDS, EXCEPT PER SHARE DATA)
SIX MONTHS ENDED THREE MONTHS ENDED JUNE 30, JUNE 30, ----------------------------------- ---------------------------------- 1996 1995 1996 1995 --------------- --------------- -------------- -------------- REVENUE: Marketing $ 654,661 $ 339,242 $ 376,458 $ 184,463 Transportation 10,489 11,003 5,274 5,493 Oil and gas 3,768 3,676 2,285 2,064 -------------- -------------- ------------- ------------- 668,918 353,921 384,017 192,020 -------------- -------------- ------------- ------------- COSTS AND EXPENSES: Operating Marketing 648,915 337,798 372,435 183,715 Transportation 9,029 9,578 4,521 4,739 Oil and gas 777 764 393 384 Corporate general and administrative 1,303 1,054 610 483 Depreciation, depletion and amortization 4,389 2,720 3,144 1,828 -------------- -------------- ------------- ------------- 664,413 351,914 381,103 191,149 -------------- -------------- ------------- ------------- Operating earnings 4,505 2,007 2,914 871 OTHER INCOME (EXPENSE): Property sales and other 166 - 7 - Interest (372) (216) (190) (128) -------------- -------------- ------------- ------------- (206) (216) (183) (128) -------------- -------------- ------------- ------------- Earnings before income taxes 4,299 1,791 2,731 743 Income tax provision Current 207 79 124 40 Deferred 1,350 600 900 250 -------------- -------------- ------------- ------------- 1,557 679 1,024 290 -------------- -------------- ------------- ------------- NET EARNINGS $ 2,742 $ 1,112 $ 1,707 $ 453 ============== ============== ============= ============= EARNINGS PER COMMON SHARE $ .65 $ .27 $ .40 $ .11 ============== ============== ============= ============= 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 Six Months Comparison - Marketing Gross revenues for the Company's Marketing operations increased by $315,419,000, or 93%, in the comparative current period as a result of (i) increased overall world crude oil prices, (ii) increased volumes of crude purchased at the wellhead, and (iii) a more active crude oil trading effort. Average crude oil prices increased approximately $2.65 per barrel for the comparative period while average wellhead purchases increased to 55,000 barrels per day in 1996 versus 45,000 barrels per day in 1995. Marketing division operating margins before depreciation for the first six months of 1996 were $5,746,000 versus $1,444,000 in the similar 1995 period, partially as a result of the combination of events discussed above. The most significant factor affecting 1996 operating margins, however, was a severe crude oil shortage situation that existed in the mid-continent region of the United States. As a supplier of crude oil to the region, this demand condition served to temporarily improve the Company's margins. As the crude oil market place returns to a more normal balance between supply and demand, the Company's level of Marketing earnings are expected to return to its historic pattern. - Transportation Transportation revenues and earnings experienced little variation between the comparative periods as market place conditions remained consistent. - Oil and Gas Oil and gas revenues and operating earnings before depreciation experienced little variation between the comparative periods. Volumes and prices compare as follows:
SIX MONTHS ENDED THREE MONTHS ENDED ------------------------------------ ------------------------------------ 1996 1995 1996 1995 ----------------- ---------------- ---------------- ---------------- Crude Oil Volume 44,400 Bbls. 58,500 Bbls. 24,500 Bbls. 31,000 Bbls. Average price $18.77/Bbl. $16.15/Bbl. $19.72/Bbl. $16.99/Bbl. Natural gas Volume 1,520,000 Mcf's 1,700,000 Mcf's 900,000 Mcf's 1,100,000 Mcf's Average price, includes value of associated gas liquids $1.91/Mcf $1.54/Mcf $2.00/Mcf $1.40/Mcf
- 3 - 4 - Other The provision for depreciation, depletion and amortization is increased in the current period with increased capitalized costs associated with the Company's recent oil and gas drilling activity. In addition, during the second quarter of 1996, the Company recognized a $1,167,000 asset impairment on certain refined product marketing facilities and equipment. The impairment was recorded because of continued operating and cash flow losses associated with these assets. Property sales and other earnings of $166,000 resulted from a gain realized on the sale of seven tank trailers. Three Month Comparison Variations for the comparative three month period ended June 30, 1996, are consistent with the discussion above. Liquidity and Capital Resources During the first six months of 1996, the Company invested $3,370,000 in property equipment additions with $1,674,000 of such investments going towards oil and gas drilling efforts. Funding for these investments was derived from the Company generating $8,315,000 of working capital, defined as the sum of net cash 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 $4,945,000 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)
June 30, December 31, 1996 1995 ------------------ ------------------ ASSETS (unaudited) CURRENT ASSETS Cash and cash equivalents $ 2,506 $ 4,037 Accounts receivable, net 68,789 50,484 Inventories 3,453 3,177 Prepaid and other 1,003 1,020 ---------------- ---------------- Total Current Assets 75,751 58,718 ---------------- ---------------- Property and equipment 41,158 40,011 Less - accumulated depreciation, depletion and amortization (23,788) (21,067) ---------------- ---------------- 17,370 18,944 ---------------- ---------------- Deferred income taxes 715 2,065 Other assets 1,292 705 ---------------- ---------------- $ 95,128 $ 80,432 ---------------- ---------------- LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable $ 66,793 $ 49,537 Accrued and other liabilities 1,882 2,416 Current maturities of long-term debt 2,421 1,650 ---------------- ---------------- Total current liabilities 71,096 53,603 Long-term debt, less current maturities 5,073 10,589 Other liabilities 538 562 ---------------- ---------------- 76,707 64,754 ---------------- ---------------- SHAREHOLDERS' EQUITY 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, after eliminating $13,931,000 of accumulated deficit on December 31, 1992 8,106 5,363 ---------------- ---------------- Total shareholders' equity 18,421 15,678 ---------------- ---------------- $ 95,128 $ 80,432 ================ ================
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)
SIX MONTHS ENDED JUNE 30, ---------------------------------- 1996 1995 -------------- ------------- CASH PROVIDED BY OPERATIONS Net earnings $ 2,742 $ 1,112 Items of income not requiring (providing) cash - Depreciation, depletion and amortization 4,389 2,720 Deferred income tax provision 1,350 600 Gain on sale of properties (166) - Other, net (478) (91) Decrease (increase) in accounts receivable (18,305) (6,907) Decrease (increase) in inventories (276) (914) Decrease (increase) in prepaid and other 17 (281) Increase (decrease) in accounts payable 17,256 7,585 Increase (decrease) in accrued liabilities (534) (1,213) ------------ ------------- Net cash provided by operating activities 5,995 2,611 ------------ ------------- INVESTING ACTIVITIES Property and equipment additions (3,370) (4,935) Proceeds from property sales 589 - ------------ ------------- Net cash (required) by investing activities (2,781) (4,935) ------------ ------------- FINANCING ACTIVITIES Borrowings from bank - 2,065 Repayment of debt (4,745) (358) Sales of stock - 10 ------------ ------------- Net cash provided by (used in) financing activities (4,745) 1,717 ------------ ------------- Increase (decrease) in cash (1,531) (607) Cash at beginning of period 4,037 2,695 ------------ ------------- Cash at end of period $ 2,506 $ 2,088 ============ ============= SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION Interest paid during the period $ 388 $ 486 ============ ============= Income taxes paid during the period $ 132 $ 136 ============ =============
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 June 30, 1996 and December 31, 1995 and results of operations and cash flows for the six months ended June 30, 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 that 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. - None Item 5. - None Item 6. - Exhibits and Reports on Form 8K a. Exhibits - Article 5. b. Reports on Form 8-K - None. - 8 - 9 SIGNATURES 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: August 5, 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 6-MOS DEC-31-1996 JAN-01-1996 JUN-30-1996 2,506 0 68,979 (190) 3,453 75,751 41,158 (23,788) 95,128 71,096 5,073 420 0 0 18,001 95,128 668,918 669,084 658,721 664,413 0 0 372 4,299 1,557 2,742 0 0 0 2,742 .65 .65
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