-----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, HW5vth+Lgbbsy02Cg6+VbjHfOHFFhtYCjQVd99psYWEJiMJLdD3i27UwXOqKMEyu LYJ5RRjk2Wf5GI554zlbbw== 0000950129-97-001911.txt : 19970513 0000950129-97-001911.hdr.sgml : 19970513 ACCESSION NUMBER: 0000950129-97-001911 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970331 FILED AS OF DATE: 19970512 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: 97600315 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. - 03/31/97 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, 1997 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, 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 12, 1997 was 4,213,596. 2 ADAMS RESOURCES & ENERGY, INC. AND SUBSIDIARIES UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS (IN THOUSANDS, EXCEPT PER SHARE DATA)
Three Months Ended March 31, ------------------------ 1997 1996 ---------- --------- Revenues: Marketing ...................................... $ 484,612 $ 278,203 Transportation ................................. 6,690 5,215 Oil and Gas .................................... 2,843 1,483 --------- --------- 494,145 284,901 --------- --------- Costs and expenses: Operating Marketing ..................................... 483,547 276,480 Transportation ................................ 5,293 4,508 Oil and gas ................................... 435 384 Corporate general and administrative ........... 536 693 Depreciation, depletion and amortization ....... 1,613 1,245 --------- --------- 491,424 283,310 --------- --------- Operating earnings ............................... 2,721 1,591 Other income (expense) Property sales and other ....................... 354 159 Interest ....................................... (87) (182) --------- --------- Earnings before income taxes ..................... 2,988 1,568 Income tax provision Current ........................................ 131 83 Deferred ....................................... 975 450 --------- --------- 1,106 533 --------- --------- Net earnings ..................................... $ 1,882 $ 1,035 ========= ========= Net earnings per common share .................... $ .45 $ .25 ========= ========= 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 $206,409,000 or 74%, in the comparative current period as a result of (a) increased average crude oil prices, (b) increased volumes of crude oil purchased at the wellhead, and (c) more active crude oil trading effort. Compared to last year's first quarter, average crude oil sales prices were increased by approximately 25% in 1997. Average wellhead purchases were 60,000 barrels per day in 1997 versus 55,000 barrels per day in 1996. Marketing division operating margins before depreciation for the first three months of 1997 were reduced to $1,065,000 versus $1,723,000 in the similar 1996 period. This result was because of a reversal of the unusually favorable market demand conditions that existed in 1996. During the first quarter of last year, there were a number of spot market shortages of crude oil that served to temporarily increase the Company's margins. - Transportation Transportation revenues and operating earnings before depreciation increased as follows:
First Quarter First Quarter Percentage 1997 1996 Increase ------------- ------------- ----------- Revenues $6,690,000 $5,215,000 28% Operating earnings before depreciation $1,397,000 $ 707,000 98%
The revenue increase resulted from generally strong customer demand during the current quarter. Operating earnings improved as a direct result of the increased demand. Because of the fixed cost component of the company's transportation operation, on a percentage basis, operating earnings will improve at a faster rate than revenues. - Oil and Gas Oil and gas revenues and operating earnings increased for the comparative current first quarter primarily as a result of increased natural gas prices and volumes. Production volumes increased as a direct result of the Company's drilling efforts during 1996. Volumes and prices compare as follows: -3- 4
First Quarter First Quarter 1997 1996 ------------- ------------- Crude oil Volume 20,000 Bbls. 19,900 Bbls. Average price $ 23.03/Bbl. $ 17.61/Bbl. Natural gas Volume 920,000 Mcf 620,000 Mcf Average price, includes value of associated gas liquids $ 3.13 Mcf $ 1.79 Mcf
- 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. Gains on property sales of $354,000 and $159,000 respectively, were realized on the sale of twenty-one truck tractors in 1997 and seven tank trailers in 1996. Interest expense is reduced in 1997 because the Company has used its excess cash flow to reduce its level of long term debt. Liquidity and Capital Resources During the first three months of 1997, the Company invested $1,001,000 in property equipment additions with $411,000 going towards oil and gas drilling efforts and the remainder for various marketing and transportation equipment items. Funding for these investments was derived from the Company generating $4,068,000 of working capital funds. The $3,165,000 of excess cash flow generated was utilized 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, 1996 for additional discussion of the Company's bank relationships, tax carryforwards and other matters. -4- 5 ADAMS RESOURCES & ENERGY, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET (IN THOUSANDS)
March 31, December 31, 1997 1996 --------- ------------ (Unaudited) ASSETS Current assets: Cash and cash equivalents ....................... $ 4,292 $ 3,782 Accounts receivable, net ........................ 69,630 80,238 Inventories ..................................... 4,583 4,867 Prepaid and other ............................... 905 1,116 Deferred income taxes ........................... 500 1,475 --------- --------- Total current assets .............. 79,910 91,478 --------- --------- Property and equipment ............................ 44,449 43,607 Less - accumulated depreciation, depletion and amortization ............... (26,965) (25,440) --------- --------- 17,484 18,167 --------- --------- Other assets ...................................... 1,222 1,237 --------- --------- $ 98,616 $ 110,882 ========= ========= LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable ................................ $ 67,592 $ 77,449 Accrued and other liabilities ................... 2,391 3,481 Current maturities of long-term debt ............ 64 64 --------- --------- Total current liabilities ................ 70,047 80,994 Long-term debt, less current maturities ........... 2,990 6,171 Other liabilities ................................. 894 957 --------- --------- 73,931 88,122 Shareholders' equity: Preferred stock - $1.00 par value, 960,000 shares authorized, none outstanding ................ -- -- Common stock - $.10 par value, 7,500,000 shares authorized, 4,213,596 and 4,203,346 shares outstanding respectively ............. 421 420 Contributed capital ............................. 11,670 11,628 Retained earnings since December 31, 1992 ....... 12,594 10,712 --------- --------- Total shareholders' equity ............... 24,685 22,760 --------- --------- $ 98,616 $ 110,882 ========= =========
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, -------------------- 1997 1996 -------- -------- CASH PROVIDED (USED) BY OPERATIONS: Net earnings ............................................. $ 1,882 $ 1,035 Items of income not requiring (providing) cash - Depreciation, depletion and amortization ............... 1,613 1,245 Deferred income tax provision .......................... 975 450 Gain on sale of properties ............................. (354) (159) Other, net ............................................. (48) (323) Decrease (increase) in accounts receivable ............... 10,608 (12,345) Decrease (increase) in inventories ....................... 284 (718) Decrease (increase) in prepaid and other ................. 211 (239) Increase (decrease) in accounts payable .................. (9,857) 12,823 Increase (decrease) in accrued liabilities ............... (1,090) (22) -------- -------- Net cash provided (required) by operating activities ... 4,224 1,747 -------- -------- INVESTING ACTIVITIES: Property and equipment additions ......................... (1,001) (1,988) Proceeds from property sales ............................. 425 239 -------- -------- Net cash provided by (used in) investing activities .... (576) (1,749) -------- -------- FINANCING ACTIVITIES: Repayment of debt ........................................ (3,181) (427) Sales of stock ........................................... 43 -- -------- -------- Net cash provided by (used in) financing activities .... (3,138) (427) -------- -------- Increase (decrease) in cash and cash equivalents ........... 510 (429) Cash at beginning of period ................................ 3,782 4,037 -------- -------- Cash at end of period ...................................... $ 4,292 $ 3,608 ======== ======== Supplemental disclosure of cash flow information: Interest paid during the period .......................... $ 87 $ 182 ======== ======== Income taxes paid during the period ...................... $ 10 $ -- ======== ========
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, 1997 and December 31, 1996 and results of operations and cash flows for the three months ended March 31, 1997 and 1996. 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 1997 Annual Meeting of Stockholders (the "Meeting") of the Company was held on April 23, 1997. 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 4,213,596 shares of Common Stock entitled to vote at the Meeting, there were 3,875,682 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 12, 1997 By: /s/ K. S. Adams, Jr. ------------------------------- K. S. Adams, Jr. Chief Executive Officer /s/ Richard B. Abshire ------------------------------- Richard B. Abshire Chief Financial Officer -9- 10 EXHIBIT INDEX
EXHIBIT NUMBER DESCRIPTION ------- ----------- 27 Adams Resources & Energy, Inc. Financial Data Schedule
EX-27 2 FINANCIAL DATA SCHEDULE
5 3-MOS DEC-31-1997 MAR-31-1997 4,292 0 69,737 (107) 4,583 79,910 44,449 (26,965) 98,616 70,047 2,990 0 0 421 24,264 98,616 494,145 494,145 489,275 491,424 0 0 87 2,988 1,106 1,882 0 0 0 1,882 .45 .45
-----END PRIVACY-ENHANCED MESSAGE-----