Adams Resources & Energy, Inc. Announces Fourth Quarter 2017 Results

HOUSTON, March 12, 2018 /PRNewswire/ -- Adams Resources & Energy, Inc. (NYSE MKT: AE) ("Adams" or the "Company") today announced its financial results for the three months and year ended December 31, 2017.

The Company reported net earnings of $3.7 million, or $0.88 per common share, on revenues of $408.5 million for the fourth quarter of 2017, compared to a net loss of $0.2 million, or ($0.04) per common share, on revenues of $299.0 million for the fourth quarter of 2016.  On an adjusted basis, net earnings were $1.3 million, or $0.31 per common share, for the fourth quarter of 2017, compared to a net loss of $1.6 million, or ($0.38) per common share, for the fourth quarter of 2016.  For the full year 2017, the Company had a net loss of $0.5 million, or ($0.11) per common share, on revenues of $1.3 billion, compared to net earnings of $2.5 million, or $0.60 per common share, on revenues of $1.1 billion for the full year 2016.  On an adjusted basis, net earnings were $1.3 million, or $0.31 per common share for the full year 2017, compared to a net loss of $3.0 million, or ($0.70) per common share for the full year 2016.   

Adjusted net (losses) earnings, adjusted (losses) earnings per common share and adjusted cash flow are non-generally accepted accounting principle ("non-GAAP") financial measures that are defined and reconciled in the financial tables below.

Fourth Quarter 2017 Highlights:

• Gross revenues of approximately $408.5 million for the fourth quarter of 2017 compared to $299.0 million for the fourth quarter of 2016, and gross revenues of approximately $1.3 billion for the full year 2017 compared to $1.1 billion for the full year 2016
• Our crude oil marketing subsidiary, GulfMark Energy, Inc., marketed approximately 72,387 barrels per day ("bpd") of crude oil during the fourth quarter of 2017, compared to 66,469 bpd of crude oil during the fourth quarter of 2016
• Cash and cash equivalents increased 25 percent from December 31, 2016 levels of $87 million to over $109 million at December 31, 2017
• $167 million of liquidity ($109.4 million of cash and cash equivalents and $57.8 million of undrawn letter of credit facility) at December 31, 2017
• Generated positive adjusted cash flow of $3.2 million for the fourth quarter of 2017 compared to positive adjusted cash flow of $2.3 million for the fourth quarter of 2016
• Approximately 198,011 barrels of crude oil inventory at December 31, 2017
• Dividend of $0.22 per share for the fourth quarter of 2017
• No short or long term debt at December 31, 2017

"During the fourth quarter of 2017, we generated positive financial and operating results from our marketing segment as our average daily barrels marketed and transported increased approximately nine percent from levels in the fourth quarter of 2016 to 72,387 barrels per day," said Townes Pressler, Executive Chairman.  "Volumes increased as our customers' completion crews converted drilled but uncompleted wells to production primarily in the Gulf Coast region.  Service Transport began to gain positive momentum as our revenue per mile increased 15 percent from the fourth quarter of 2016 to the fourth quarter of 2017.  As demand remains robust, we are making good progress in improving trucking rates with our customers at Service Transport.  During 2018, we plan to remain focused on enhancing margins, with disciplined investing and upgrading our fleet of tractors with the latest technologically advanced safety equipment, as well as actively pursuing development opportunities that complement our two primary business segments," continued Pressler.

Capital Investments and Dividends

During the fourth quarter of 2017, the Company recorded approximately $0.2 million of capital spending and paid dividends of $0.9 million ($0.22 per share).  For the full year 2017, the Company recorded approximately $4.5 million of capital and paid dividends of $3.7 million ($0.88 per share).  Of the $4.5 million of capital recorded during 2017, $1.8 million was associated with capital leases of tractors for our marketing segment and $1.8 million was associated with drilling and completions activity associated with our upstream subsidiary.  The Company exited the upstream business through a chapter 11 bankruptcy sale process in which substantially all of the assets were sold during 2017.  The upstream subsidiary obtained a confirmed plan from the Delaware bankruptcy court in December 2017.

Use of Non-GAAP Financial Measures
This press release and accompanying schedules includes the non-GAAP financial measures of adjusted cash flow, adjusted net (losses) earnings and adjusted (losses) earnings per common share.  The accompanying schedules provide definitions of these non-GAAP financial measures and reconciliations to their most directly comparable financial measures calculated and presented in accordance with GAAP.  Company management uses these measurements as aids in monitoring the Company's ongoing financial performance from quarter to quarter and year to year on a regular basis and for benchmarking against peer companies.  Our non-GAAP financial measures should not be considered as alternatives to GAAP measures such as net income, operating income, net cash flow provided by operating activities or any other measure of financial performance calculated and presented in accordance with GAAP.  Our non-GAAP financial measures may not be comparable to similarly-titled measures of other companies because they may not calculate such measures in the same manner as we do.

Adams Resources & Energy, Inc. is engaged in the business of crude oil marketing, transportation and storage, tank truck transportation of liquid chemicals and dry bulk and ISO tank container storage and transportation.  For more information, visit www.adamsresources.com.

Cautionary Statement Regarding Forward-Looking Statements
This news release contains forward-looking statements. Forward-looking statements relate to future events and anticipated results of operations, business strategies, and other aspects of our operations or operating results. In many cases you can identify forward-looking statements by terminology such as "anticipate," "intend," "plan," "project," "estimate," "continue," "potential," "should," "could," "may," "will," "objective," "guidance," "outlook," "effort," "expect," "believe," "predict," "budget," "projection," "goal," "forecast," "target" or similar words. Statements may be forward looking even in the absence of these particular words. Where, in any forward-looking statement, the Company expresses an expectation or belief as to future results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, there can be no assurance that such expectation or belief will result or be achieved. Unless legally required, Adams undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Contact:  Josh C. Anders
EVP, Chief Financial Officer
[email protected]
(281) 974-9442

SOURCE Adams Resources & Energy, Inc.