0000002178-16-000100.txt : 20161108 0000002178-16-000100.hdr.sgml : 20161108 20161108163942 ACCESSION NUMBER: 0000002178-16-000100 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20161104 ITEM INFORMATION: Results of Operations and Financial Condition FILED AS OF DATE: 20161108 DATE AS OF CHANGE: 20161108 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: 0926 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-07908 FILM NUMBER: 161981738 BUSINESS ADDRESS: STREET 1: 17 S. BRIAR HOLLOW LN. CITY: HOUSTON STATE: TX ZIP: 77027 BUSINESS PHONE: 7138813600 MAIL ADDRESS: STREET 1: P O BOX 844 CITY: HOUSTON STATE: TX ZIP: 77001 FORMER COMPANY: FORMER CONFORMED NAME: ADAMS RESOURCES & ENERGY INC DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: ADA RESOURCES INC DATE OF NAME CHANGE: 19790620 8-K 1 form8-k.htm ADAMS RESOURCES 3RD QT 2016 NEWS RELEASE
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549


FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):  November 8, 2016


ADAMS RESOURCES & ENERGY, INC.
(Exact name of registrant as specified in its charter)


Delaware
1-7908
74-1753147
(State of other jurisdiction
(Commission file number)
(IRS employer
of incorporation
  
Identification no.)


17 South Briar Hollow Lane, Suite 100
  
Houston, Texas
77027
(Address of principal executive offices)
(Zip code)

(713) 881-3600
(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[  ]  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[  ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[  ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act
 (17 CFR 40.14d-2(b))

[  ]  Pre-commencement communications pursuant to Rule 13e-4© under the Exchange Act
(17 CFR 240.13e-4c))







Item 2.02.
Results of Operations and Financal Condition.

On November 8, 2016, Adams Resources & Energy, Inc., a Delaware corporation, issued a press release announcing financial results for the third quarter ended September 30, 2016.  A copy of the news release is furnished as Exhibit 99.1 to this report and is incorporated herein by reference.  The information in the Current Report on Form 8-K, including the exhibit, shall not be deemed ‟filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, (the ‟Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

SIGNATURE

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 hereunto duly authorized.





 
ADAMS RESOURCES & ENERGY. INC.
   
   
   
November 8, 2016
BY:  /s/ Sharon C. Davis
 
Sharon C. Davis
 
Interim Chief Financial Officer
EX-99.1 CHARTER 2 exhibit99-1.htm EXHIBIT 99.1 NEWS RELEASE
Exhibit 99.1
FOR IMMEDIATE RELEASE
John Riney (713) 881-3662

ADAMS RESOURCES ANNOUNCES DIVIDEND AND
THIRD QUARTER 2016 EARNINGS

Houston (November 8, 2016)--Adams Resources & Energy, Inc. (NYSE MKT:AE) announced a third quarter 2016 unaudited net loss of $2,153,000 or $.51 per common share. Revenues for the quarter totaled $256,877,000. The current period net loss compares to an unaudited third quarter 2015 net loss of $308,000 or $.07 per common share.  For the nine months ended September 30, 2016, net earnings were $2,681,000 or $.64 per common share.

Thomas S. Smith, President and Chief Executive Officer, attributed the 2016 earnings decline to an investment impairment provision recorded in the third quarter 2016, as well as, reduced volumes and unit margins within the Company’s crude oil marketing business.  The current commodity price for crude has suppressed drilling and production in the Company’s area of interest and competition has stiffened for the fewer barrels available.  Additionally, the Company’s common carrier chemical transportation business has been negatively impacted by a rate environment that deteriorated markedly versus the prior year quarter and by lower volume with certain dedicated customers.  Mr. Smith added the Company’s present emphasis involves aggressive sales efforts and cost control pending a rebound in the market conditions for the Company’s products and services.  By preserving liquidity and operating as a low-cost provider, the Company will be well positioned when the general economic conditions improve.

Based on recent evaluations, the Company elected to fully impair its investment in Bencap LLC.  Given lower than projected revenue growth and operating losses, the Company is unlikely to loan any additional funds under the terms of the agreement causing forfeiture of the investment.  The Company recognized a net loss of $1,430,000 from its investment in Bencap for the nine months ended September 30, 2016.  This loss included a pre-tax impairment charge of $1,732,000 and pre-tax losses from the investment of $468,000.

A summary of operating results is as follows:

   
Third Quarter
  
   
2016
    
2015
  
             
Operating Earnings (Expense)
            
Marketing          
  
$
1,265,000
    
$
3,715,000
  
Transportation
    
(430,000
)
    
918,000
  
Oil and natural gas          
    
(543,000
)
    
(2,909,000
)
Administrative expenses          
    
(2,114,000
)
    
(2,101,000
)
     
(1,822,000
)
    
(377,000
)
Interest income, net          
    
245,000
      
63,000
  
Equity investment, net of tax          
    
(1,170,000
)
    
-
  
Income tax benefit          
    
594,000
      
6,000
  
                 
Net loss          
  
$
(2,153,000
)
  
$
(308,000
)

The Company’s Board of Directors also declared a quarterly cash dividend in the amount of $.22 (twenty-two cents) per common share, payable on December 19, 2016 to shareholders of record as of December 5, 2016.

The Company’s quarterly report on Form 10-Q for the period ended September 30, 2016 will be filed with the Securities and Exchange Commission on November 9, 2016 and will be available on the Company’s website at adamsresources.com.
……………………………………………….

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 and potential adverse world economic conditions, (b) fluctuations in hydrocarbon commodity 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 and cost of capital, (j) results of current items of litigation, (k) uninsured items of litigation or losses, (l) uncertainty in reserve estimates and cash flows, (n) successful drilling activity and the ability to replace oil and gas reserves, (m) security issues related to drivers and terminal facilities, (o) demand for chemical based trucking operations, (p) financial soundness of customers and suppliers.  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 30,
    
September 30,
  
   
2016
    
2015
    
2016
    
2015
  
                         
Revenues          
  
$
800,571
    
$
1,596,024
    
$
256,877
    
$
439,893
  
                                 
Costs, expenses and other          
    
(795,439
)
    
(1,584,331
)
    
(259,624
)
    
(440,207
)
Income tax (provision) benefit          
    
(2,451
)
    
(4,564
)
    
594
      
6
  
                                 
Net earnings (loss)          
  
$
2,681
    
$
7,129
    
$
(2,153
)
  
$
(308
)
                                 
                                 
Earnings (loss) per common share:
                                
    Basic and diluted net earnings (loss)
                                
per common share          
  
$
.64
    
$
1.69
    
$
(.51
)
  
$
(.07
)
                                 
Dividends per common share          
  
$
.66
    
$
.66
    
$
.22
    
$
.22
  




UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET
  
(In thousands)
  
   
September 30,
    
December 31,
  
   
2016
    
2015
  
             
ASSETS
            
Cash          
  
$
78,485
    
$
91,877
  
Other current assets          
    
96,413
      
84,660
  
Total current assets          
    
174,898
      
176,537
  
                 
Net property & equipment          
    
49,516
      
59,715
  
Deposits and other assets          
    
8,497
      
6,963
  
   
$
232,911
    
$
243,215
  
                 
LIABILITIES AND EQUITY
                
Total current liabilities          
  
$
71,303
    
$
80,197
  
Other long-term liabilities          
    
9,201
      
10,508
  
Shareholders’ equity          
    
152,407
      
152,510
  
   
$
232,911
    
$
243,215