8-K 3rd QT 2005 Earnings
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 10, 2005



 
 
ADAMS RESOURCES & ENERGY, INC.
 
  
     
 
(Exact name of registrant as specified in its charter)
 
      
             
 
 
 
Delaware
 
    
 
 
 
1-7908
 
    
 
 
 
74-1753147
 
 
(State or other jurisdiction of incorporation)
    
 
(Commission file
number)
    
 
(IRS employer
identification no.)
             
 
4400 Post Oak Pkwy, Suite 2700, Houston, Texas
 
      
 
77027
 
  
 
(Address of principal executive offices)
 
    
 
(Zip code)
 
             
     
 
(713) 881-3600
 
      
 
(Registrant’s telephone number, including area code)
 


 
 
 

Item 2.02. Results of Operations and Financial Condition. 

On November 10, 2005, Adams Resources & Energy, Inc., a Delaware corporation, issued a press release announcing its financial results for the third quarter ended September 30, 2005. A copy of the earnings release is furnished as Exhibit 99.1 to this report and is incorporated herein by reference. The information in this 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.


Date: November 10, 2005                                 By:     /s/ Richard B. Abshire 
                   Richard B. Abshire
                   Chief Financial Officer





 
 
 

                      EXHIBIT 99.1

ADAMS RESOURCES ANNOUNCES SECOND QUARTER EARNINGS

Houston (November 10, 2005) -- Adams Resources & Energy, Inc., (AMEX-AE), announced third quarter 2005 unaudited net earnings of $5,297,000 or $1.26 per common share. Revenues for the quarter totaled $794,617,000. Current earnings compared to unaudited third quarter 2004 net earnings of $4,352,000 or $1.037 per common share. For the nine-month period ended September 30, 2005, net earnings were $10,034,000 compared to $6,408,000 for the nine months of 2004.

Chairman K. S. “Bud” Adams, Jr. attributed the earnings increase to higher commodity prices for sales of the Company’s production of crude oil and natural gas. The Company also sold its interest in a crude oil gathering pipeline located in the offshore Gulf of Mexico with a $451,000 pre-tax gain recognized from the sale.

The Company also announced its Board of Directors has declared an annual cash dividend in the amount of $.37 per common share, payable on December 15, 2005 to shareholders of record as of December 2, 2005. The amount of the dividend is increased by 23 percent, or $.07 per share, over last year. Chairman K. S. “Bud” Adams, Jr., said the Company’s continued strength and the more favorable tax laws led to the dividend increase.

A summary of operating results is as follows:
   
Third Quarter
  
   
2005
  
2004
  
               
Operating Earnings
              
Marketing
  
$
5,914,000
  
$
6,070,000
  
Transportation
    
1,231,000
    
1,609,000
  
Oil and gas
    
1,883,000
    
1,021,000
  
General & administrative expenses
    
(1,959,000
)
  
(2,120,000
)
Interest, net
    
29,000
    
(5,000
)
Income tax provision
    
(2,102,000
)
  
(2,274,000
)
               
Earnings from continuing operations
  
$
4,996,000
  
$
4,301,000
  
               
Earnings from discontinued
              
Operations, net of tax
    
301,000
    
51,000
  
               
Net earnings
  
$
5,297,000
  
$
4,352,000
  

……………………………………………….

 
 
 


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 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 and (q) 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 30,
  
September 30,
  
   
2005
  
2004
  
2005
  
2004
  
                           
Revenues
  
$
1,864,455
  
$
1,506,941
  
$
794,617
  
$
550,393
  
                           
Costs, expenses and other
    
1,850,078
    
1,496,940
    
787,519
    
543,818
  
Income tax provision
    
4,622
    
3,443
    
2,102
    
2,274
  
                           
Earnings from continuing operations
    
9,755
    
6,558
    
4,996
    
4,301
  
                           
Income (loss) from discontinued operations, net of tax
   
-
    
(253
)
  
-
    
-
  
                           
Net earnings
  
$
10,034
  
$
6,408
  
$
5,297
  
$
4,352
  
                           
Earnings (loss) per share
                          
From continuing operations
  
$
2.31
  
$
1.56
  
$
1.19
  
$
1.02
  
From discontinued operation
    
.07
    
(.04
)
  
.07
    
.01
  
Basic and diluted net earnings per
                          
common share
  
$
2.38
  
$
1.52
  
$
1.26
  
$
1.03
  
                           
Dividends per common share
  
$
-
  
$
-
  
$
-
  
$
-
  


 
 
 


UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET
  
(In thousands)
  
   
   
September 30,
  
December 31,
  
   
2005
  
2004
  
               
ASSETS
              
Cash
  
$
24,610
  
$
19,942
  
Other current assets
    
251,778
    
189,397
  
Total current assets
    
276,388
    
209,339
  
               
Net property & equipment
    
31,415
    
29,076
  
Other assets
    
2,479
    
439
  
   
$
310,282
  
$
238,854
  
               
LIABILITIES AND EQUITY
              
Total current liabilities
  
$
233,818
  
$
173,550
  
Long-term debt
    
11,475
    
11,475
  
Deferred taxes and other
    
5,380
    
4,254
  
Shareholders’ equity
    
59,609
    
49,575
  
   
$
310,282
  
$
238,854