EX-99.1 CHARTER 2 ex99_1.htm EXHIBIT 99.1 Exhibit 99.1
Exhibit 99.1
FOR IMMEDIATE RELEASE
Rick Abshire (713) 881-3609

ADAMS RESOURCES ANNOUNCES THIRD QUARTER EARNINGS
AND A 13.5% DIVIDEND INCREASE

Houston (November 14, 2006) -- Adams Resources & Energy, Inc., (AMEX-AE), announced third quarter 2006 unaudited net earnings of $1,677,000 or $.40 per common share. Revenues for the quarter totaled $624,998,000. Current earnings compare to unaudited third quarter 2005 net earnings of $5,297,000 or $1.26 per common share. For the nine-months ended September 30, 2006, net earnings were $9,359,000 or $2.22 per common share. Net cash flow provided by operating activities totaled $23,774,000 for the nine months ended September 30, 2006.

Chairman K. S. “Bud” Adams, Jr. attributed the third quarter 2006 earnings decline to reduced commodity prices for crude oil and natural gas. One of the more significant results of fluctuating crude oil prices was that during the third quarter of 2006, the Company recognized a $1.5 million pre-tax valuation loss on the quantity of crude oil held in inventory. In contrast, during the third quarter of 2005, the Company realized pre-tax gains totaling $1.4 million as the Company liquidated relatively lower priced crude oil inventories into a high priced market.

A summary of operating results is as follows:
 
   
Third Quarter
  
   
2006
  
2005
  
           
Operating Earnings
              
Marketing 
  
$
1,890,000
  
$
5,914,000
  
Transportation 
    
1,327,000
    
1,231,000
  
Oil and gas 
    
1,161,000
    
1,883,000
  
General & administrative expenses 
    
(2,110,000
)
  
(1,959,000
)
     
2,268,000
    
7,069,000
  
Interest, net 
    
198,000
    
29,000
  
Income tax provision 
    
(789,000
)
  
(2,102,000
)
Earnings from continuing operations 
    
1,677,000
    
4,996,000
  
Earnings from discontinued operation 
    
-
    
301,000
  
               
Net earnings 
  
$
1,677,000
  
$
5,297,000
  

The Company also announced its Board of Directors has declared an annual cash dividend in the amount of $.42 per common share, payable on December 15, 2006 to shareholders of record as of December 1, 2006. The amount of the dividend is increased by 13.5 percent, or $.05 per share, over last year. Chairman K. S. “Bud” Adams, Jr., said the Company’s continued strength led to the dividend increase.

……………………………………………….

The information in this release includes certain forward-looking statements that are based on assumptions that in the future may prove not to have been accurate. A number of factors could cause actual results or events to differ materially from those anticipated. Such factors include, among others, (a) general economic conditions, (b) fluctuations in hydrocarbon prices and margins, (c) variations between crude oil and natural gas contract volumes and actual delivery volumes, (d) unanticipated environmental liabilities or regulatory changes, (e) counterparty credit default, (f) inability to obtain bank and/or trade credit support, (g) availability and cost of insurance, (h) changes in tax laws, and (i) the availability of capital, (j) changes in regulations, (k) results of current items of litigation, (l) uninsured items of litigation or losses, (m) uncertainty in reserve estimates and cash flows, (n) ability to replace oil and gas reserves, (o) security issues related to drivers and terminal facilities, (p) commodity price volatility (q) demand for chemical based trucking operations and (r) successful completion of drilling activity. These and other risks are described in the Company’s reports that are on file with the Securities and Exchange Commission.

 
 
 


UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
  
(In thousands, except per share data) 
  
   
   
Nine Months Ended
  
Three Months Ended
  
   
September
  
September
  
   
2006
  
2005
  
2006
  
2005
  
                   
Revenues 
  
$
1,708,026
  
$
1,706,845
  
$
624,998
  
$
637,007
  
                           
Costs, expenses and other 
    
(1,694,070
)
  
(1,692,468
)
  
(622,532
)
  
(629,909
)
Income tax provision 
    
(4,597
)
  
(4,622
)
  
(789
)
  
(2,102
)
                           
Earnings from continuing operation
    
9,359
    
9,755
    
1,677
    
4,996
  
                           
Earnings from discontinued operation
    
-
    
279
    
-
    
301
  
                           
Net earnings 
  
$
9,359
  
$
10,034
  
$
1,677
  
$
5,297
  
                           
Earnings per share
                          
From continuing operations 
  
$
2.22
  
$
2.31
  
$
.40
  
$
1.19
  
From discontinued operation 
    
-
    
.07
    
-
    
.07
  
Basic and diluted net earnings per
                          
common share 
  
$
2.22
  
$
2.38
  
$
.40
  
$
1.26
  
                           
Dividends per common share 
  
$
-
  
$
-
  
$
-
  
$
-
  



UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET
  
(In thousands)
  
   
   
September 30,
  
December 31,
  
   
2006
  
2005
  
           
ASSETS
              
Cash 
  
$
22,312
  
$
18,817
  
Other current assets 
    
208,661
    
251,633
  
Total current assets 
    
230,973
    
270,450
  
               
Net property & equipment 
    
43,495
    
39,896
  
Other assets 
    
2,928
    
2,316
  
   
$
277,396
  
$
312,662
  
               
LIABILITIES AND EQUITY
              
Total current liabilities 
  
$
193,048
  
$
231,129
  
Long-term debt 
    
3,000
    
11,475
  
Deferred taxes and other 
    
6,333
    
4,402
  
Shareholders’ equity 
    
75,015
    
65,656
  
   
$
277,396
  
$
312,662