ADAMS RESOURCES & ENERGY, INC.
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(Exact name of registrant as specified in its charter)
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Delaware
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1-7908
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74-1753147
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(State or other jurisdiction of incorporation)
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(Commission file number)
|
(IRS employer
identification no.)
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17 South Briar Hollow Lane, Suite 100
Houston, Texas
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77027
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(Address of principal executive offices)
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(Zip code)
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(713) 881-3600
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(Registrant’s telephone number, including area code)
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ADAMS RESOURCES & ENERGY, INC.
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|
Date: March 15, 2017
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By:/s/ Josh C. Anders____
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Josh C. Anders
|
|
Chief Financial Officer
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·
|
Gross revenues of over $1 billion for the full year ended December 31, 2016
|
·
|
Adams Resources & Energy, Inc’s crude oil and transportation subsidiary, GulfMark Energy, Inc., marketed approximately 73,000 barrels of oil per day during 2016
|
·
|
2016 marked the beginning of our effort to diversify offerings at the transportation subsidiary by trucking dry bulk materials
|
·
|
Generated positive free cash flow (cash flow from operations before changes in working capital less capital expenditures) during 2016
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·
|
Dividend of $0.88 per share for the year ended December 31, 2016
|
·
|
No short or long term debt as of December 31, 2016
|
·
|
Over $147 million of liquidity ($87 million of cash and cash equivalents and $60 million of undrawn letter of credit facility) at year-end 2016
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
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||||||||||||||||
(In thousands, except per share data)
|
||||||||||||||||
Year Ended
|
Three Months Ended
|
|||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||
2016
|
2015
|
2016
|
2015
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|||||||||||||
Revenues
|
$
|
1,099,540
|
$
|
1,944,279
|
$
|
298,969
|
$
|
348,255
|
||||||||
Costs, expenses and other
|
(1,093,173
|
)
|
(1,934,556
|
)
|
(298,807
|
)
|
(351,184
|
)
|
||||||||
Impairment of oil and natural gas
|
||||||||||||||||
properties
|
(313
|
)
|
(12,082
|
)
|
(226
|
)
|
(10,891
|
)
|
||||||||
Interest income, net
|
580
|
314
|
136
|
82
|
||||||||||||
Income tax (provision) benefit
|
(2,691
|
)
|
770
|
(240
|
)
|
5,334
|
||||||||||
Earnings (loss) from continuing
|
||||||||||||||||
operations
|
3,943
|
(1,275
|
)
|
(168
|
)
|
(8,404
|
)
|
|||||||||
Loss from equity investments,
|
||||||||||||||||
net of tax
|
(1,430
|
)
|
-
|
-
|
-
|
|||||||||||
Net earnings (loss)
|
$
|
2,513
|
$
|
(1,275
|
)
|
$
|
(168
|
)
|
$
|
(8,404
|
)
|
|||||
Earnings (loss) per common share:
|
||||||||||||||||
From continuing operations
|
$
|
.94
|
$
|
(.30
|
)
|
$
|
(.04
|
)
|
$
|
(1.99
|
)
|
|||||
From equity investments
|
(.34
|
)
|
-
|
-
|
-
|
|||||||||||
Basic and diluted net earnings
|
||||||||||||||||
per common share
|
$
|
.60
|
$
|
(.30
|
)
|
$
|
(.04
|
)
|
$
|
(1.99
|
)
|
|||||
Dividends per common share
|
$
|
.88
|
$
|
.88
|
$
|
.22
|
$
|
.22
|
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET
|
||||||||
(In thousands)
|
||||||||
December 31,
|
December 31,
|
|||||||
2016
|
2015
|
|||||||
ASSETS
|
||||||||
Cash
|
$
|
87,342
|
$
|
91,877
|
||||
Other current assets
|
105,176
|
84,660
|
||||||
Total current assets
|
192,518
|
176,537
|
||||||
Net property & equipment
|
46,325
|
59,715
|
||||||
Deposits and other assets
|
8,029
|
6,963
|
||||||
$
|
246,872
|
$
|
243,215
|
|||||
LIABILITIES AND EQUITY
|
||||||||
Total current liabilities
|
$
|
86,074
|
$
|
80,197
|
||||
Other liabilities and deferred taxes
|
9,486
|
10,508
|
||||||
Shareholders’ equity
|
151,312
|
152,510
|
||||||
$
|
246,872
|
$
|
243,215
|
Year Ended
|
||||||||
2016
|
2015
|
|||||||
CASH PROVIDED BY OPERATIONS:
|
||||||||
Net earnings (loss)
|
$
|
2,513
|
$
|
(1,275
|
)
|
|||
Adjustments to reconcile net earnings to net cash
|
||||||||
from operating activities-
|
||||||||
Depreciation, depletion and amortization
|
18,792
|
23,717
|
||||||
Property sale (gains) other
|
(1,966
|
)
|
(535
|
)
|
||||
Dry hole costs incurred
|
-
|
817
|
||||||
Impairment of oil and natural gas properties
|
313
|
12,082
|
||||||
Provision for doubtful accounts
|
19
|
27
|
||||||
Deferred income taxes (includes equity investments)
|
(857
|
)
|
(4,843
|
)
|
||||
Net change in fair value contracts
|
(243
|
)
|
188
|
|||||
Equity investment (earnings) losses
|
468
|
-
|
||||||
Impairment of equity investment
|
1,732
|
-
|
||||||
Decrease (increase) in accounts receivable
|
(15,368
|
)
|
72,594
|
|||||
Decrease (increase) in inventories
|
(5,399
|
)
|
5,810
|
|||||
Decrease (increase) in income tax receivable
|
(148
|
)
|
(1,617
|
)
|
||||
Decrease (increase) in prepayments
|
492
|
8,351
|
||||||
Increase (decrease) in accounts payable
|
6,984
|
(87,404
|
)
|
|||||
Increase (decrease) in accrued and other liabilities
|
52
|
(166
|
)
|
|||||
Other changes, net
|
(440
|
)
|
(2,269
|
)
|
||||
Net cash provided by operating activities
|
6,944
|
25,477
|
||||||
INVESTING ACTIVITIES:
|
||||||||
Property and equipment additions
|
(8,484
|
)
|
(11,074
|
)
|
||||
Insurance and state collateral (deposits) refunds
|
1,710
|
283
|
||||||
Investments
|
(4,700
|
)
|
-
|
|||||
Proceeds from property sales
|
3,706
|
719
|
||||||
Net cash (used in) investing activities
|
(7,768
|
)
|
(10,072
|
)
|
||||
FINANCING ACTIVITIES:
|
||||||||
Dividend payments
|
(3,711
|
)
|
(3,712
|
)
|
||||
Net cash (used in) financing activities
|
(3,711
|
)
|
(3,712
|
)
|
||||
Increase (decrease) in cash and cash equivalents
|
(4,535
|
)
|
11,693
|
|||||
Cash and cash equivalents at beginning of year
|
91,877
|
80,184
|
||||||
Cash and cash equivalents at end of year
|
$
|
87,342
|
$
|
91,877
|
Year Ended
|
||||||||
2016
|
2015
|
|||||||
Operating Cash Flow Before Changes in Working Capital Reconciliation:
|
||||||||
Net earnings (loss)
|
$
|
2,513
|
$
|
(1,275
|
)
|
|||
Adjustments to reconcile net earnings to net cash
|
||||||||
from operating activities-
|
||||||||
Depreciation, depletion and amortization
|
18,792
|
23,717
|
||||||
Property sale (gains) other
|
(1,966
|
)
|
(535
|
)
|
||||
Dry hole costs incurred
|
-
|
817
|
||||||
Impairment of oil and natural gas properties
|
313
|
12,082
|
||||||
Provision for doubtful accounts
|
19
|
27
|
||||||
Deferred income taxes (includes equity investments)
|
(857
|
)
|
(4,843
|
)
|
||||
Net change in fair value contracts
|
(243
|
)
|
188
|
|||||
Equity investment (earnings) losses
|
468
|
-
|
||||||
Impairment of equity investment
|
1,732
|
-
|
||||||
Operating Cash Flow Before Changes in Working Capital
|
$
|
20,771
|
$
|
30,178
|