A summary of operating results follows:
Fourth Quarter
--------------
2008 2007
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Operating Earnings (Loss)
Marketing $(3,899,000) $6,618,000
Transportation 499,000 809,000
Oil and gas (5,955,000) (2,272,000)
Administrative expenses (2,209,000) (3,483,000)
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(11,564,000) 1,672,000
Interest income, net 173,000 416,000
Income tax benefit (provision) 5,059,000 (85,000)
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Net earnings (loss) $(6,332,000) $2,003,000
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Chairman, K. S. 'Bud' Adams, Jr., attributed the 2008 fourth quarter loss to an approximate 50 percent decline in crude oil prices during the period. Such declines lead to approximately
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 demand for chemical based trucking services, (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 and future 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) successful completion of drilling activity, (r) financial soundness of customers and suppliers, and (s) 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.
Rick Abshire
(713) 881-3609
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Year Ended Three Months Ended
December 31, December 31,
------------ ------------
2008 2007 2008 2007
---- ---- ---- ----
Revenues $4,159,672 $2,636,222 $625,010 $879,813
Costs, expenses and
other (4,170,230) (2,610,708) (636,401) (877,725)
Income tax benefit
(provision) 4,986 (8,458) 5,059 (85)
----- ----- ----- ---
Net earnings (loss) $(5,572) $17,056 $(6,332) $2,003
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Basic and diluted net
earnings (loss)
per common share $(1.32) $4.04 $(1.50) $.47
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Dividends per common share $.50 $.47 $.50 $.47
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UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
December 31, December 31,
2008 2007
---- ----
ASSETS
Cash $18,208 $23,697
Other current assets 151,158 288,196
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Total current assets 169,366 311,893
Net property & equipment 35,586 39,698
Deposits and other assets 5,974 5,484
----- -----
$210,926 $357,075
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LIABILITIES AND EQUITY
Total current liabilities $127,807 $261,321
Long-term debt - -
Deferred taxes and other 1,358 6,312
Shareholders' equity 81,761 89,442
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$210,926 $357,075
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SOURCE Adams Resources & Energy, Inc.
