EX-99.1 CHARTER 2 exhibit_99.htm EXHIBIT 99.1 2ND QT 8-K exhibit_99.htm
 
 
 

EXHIBIT 99.1                                                  FOR IMMEDIATE RELEASE
                             Rick Abshire
                             (713) 881-3609

ADAMS RESOURCES ANNOUNCES SECOND QUARTER EARNINGS

Houston (August 12, 2010)--Adams Resources & Energy, Inc. (NYSE Amex-AE) announced second quarter 2010 unaudited net earnings of $ 1,685,000 or $.39 per common share.  Revenues for the quarter totaled $547,141,000. Current earnings compare to unaudited second quarter 2009 net earnings of $2,734,000 or $.65 per common share.  For the six months ended June 30, 2010, net earnings were $3,479,000 or $.82 per common share.

Chairman and Chief Executive Officer, K.S. "Bud" Adams, Jr., attributed the 2010 earnings decline to inventory liquidation losses as average crude oil prices fell during the current period.  For the three months ended June 30, 2010, crude oil prices fell from the $81 per barrel level to approximately $75 per barrel resulting in a $1.2 million pre-tax charge during the quarter.  In contrast, during last year’s second quarter, crude oil prices were increasing which produced $2.7 million of pre-tax inventory liquidation gains.  Partially offsetting the adverse impact of the crude oil price change was significant demand improvement within the Company’s transportation segment.   Relative to the second quarter of 2009, transportation revenues improved by 33 percent which in turn caused a 250 percent increase in transportation operating results.

A summary of operating results is as follows:

   
Second Quarter
  
   
2010
    
2009
  
             
Operating Earnings (Expense)
            
Marketing
   $ 2,405,000     $ 6,799,000  
Transportation
     2,153,000       612,000  
Oil and gas
     236,000       (699,000 )
Administrative expenses
     (2,138,000 )     (2,384,000 )
      2,656,000       4,328,000  
Interest income, net
     19,000       22,000  
Income tax (provision)
     (990,000 )     (1,616,000 )
                 
Net earnings
   $ 1,685,000     $ 2,734,000  
……………………………………………….

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 commodity 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, (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, (r) successful completion of drilling activity, (s) financial soundness of customers and suppliers and (t) adverse world economic conditions.  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)
  
   
   
Six Months Ended
    
Three Months Ended
  
   
June 30,
    
June 30,
  
   
2010
    
2009
    
2010
    
2009
  
                         
Revenues
   $ 1,080,926     $ 855,211     $ 547,141     $ 515,070  
                                 
Costs, expenses and other
     (1,075,696 )     (848,035 )     (544,466 )     (510,720 )
Income tax (provision)
     (1,751 )     (2,572 )     (990 )     (1,616 )
                                 
Net earnings
   $ 3,479     $ 4,604     $ 1,685     $ 2,734  
                                 
Basic and diluted net earnings
                                
per common share
   $ .82     $ 1.09     $ .39     $ .65  
                                 
Dividends per common share
   $ -     $ -     $ -     $ -  




UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET
  
(In thousands)
  
   
June 30,
    
December 31,
  
   
2010
    
2009
  
             
ASSETS
            
Cash                                                                                        
   $ 38,180     $ 16,806  
Other current assets                                                                                        
     164,886       185,757  
Total current assets                                                                                
     203,066       202,563  
                 
Net property & equipment                                                                                             
     43,776       42,305  
Deposits and other assets                                                                                             
     4,350       4,533  
    $ 251,192     $ 249,401  
                 
LIABILITIES AND EQUITY
                
Total current liabilities                                                                                        
   $ 162,470     $ 164,191  
Other long-term liabilities                                                                                        
     1,442       1,409  
Shareholders’ equity                                                                                        
     87,280       83,801  
    $ 251,192     $ 249,401