Adams Resources & Energy Inc. (AE) News

HOUSTON, Nov. 14 /PRNewswire-FirstCall/ -- Adams Resources & Energy, Inc., (Amex: AE), announced third quarter 2006 unaudited net earnings of $1,677,000 or $.40 per common share. Revenues for the quarter totaled $624,998,000. Current earnings compare to unaudited third quarter 2005 net earnings of $5,297,000 or $1.26 per common share. For the nine-months ended September 30, 2006, net earnings were $9,359,000 or $2.22 per common share. Net cash flow provided by operating activities totaled $23,774,000 for the nine months ended September 30, 2006.

Chairman K. S. 'Bud' Adams, Jr. attributed the third quarter 2006 earnings decline to reduced commodity prices for crude oil and natural gas. One of the more significant results of fluctuating crude oil prices was that during the third quarter of 2006, the Company recognized a $1.5 million pre-tax valuation loss on the quantity of crude oil held in inventory. In contrast, during the third quarter of 2005, the Company realized pre-tax gains totaling $1.4 million as the Company liquidated relatively lower priced crude oil inventories into a high priced market.

    A summary of operating results is as follows:



                                                            Third Quarter
                                                         2006           2005

    Operating Earnings
      Marketing                                    $1,890,000     $5,914,000
      Transportation                                1,327,000      1,231,000
      Oil and gas                                   1,161,000      1,883,000
      General & administrative expenses            (2,110,000)    (1,959,000)
                                                    2,268,000      7,069,000
    Interest, net                                     198,000         29,000
    Income tax provision                             (789,000)    (2,102,000)
    Earnings from continuing operations             1,677,000      4,996,000
    Earnings from discontinued operation                  ---        301,000

    Net earnings                                   $1,677,000     $5,297,000

The Company also announced its Board of Directors has declared an annual cash dividend in the amount of $.42 per common share, payable on December 15, 2006 to shareholders of record as of December 1, 2006. The amount of the dividend is increased by 13.5 percent, or $.05 per share, over last year. Chairman K. S. 'Bud' Adams, Jr., said the Company's continued strength led to the dividend increase.

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 (q) demand for chemical based trucking operations and (r) 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             September
                                    2006        2005       2006       2005

    Revenues                     $1,708,026  $1,706,845  $624,998   $637,007


    Costs, expenses and other    (1,694,070) (1,692,468) (622,532)  (629,909)
    Income tax provision             (4,597)     (4,622)     (789)    (2,102)

    Earnings from continuing
     operations                       9,359       9,755     1,677      4,996

    Earnings from discontinued
     operation                          ---         279       ---        301

    Net earnings                     $9,359     $10,034    $1,677     $5,297

    Earnings per share
      From continuing operations      $2.22       $2.31      $.40      $1.19
      From discontinued operation       ---         .07       ---        .07
      Basic and diluted net earnings
       per common share               $2.22       $2.38      $.40      $1.26

    Dividends per common share        $ ---      $ ---      $ ---      $ ---



                  UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET
                                  (In thousands)

                                               September 30,      December 31,
                                                   2006               2005

    ASSETS
      Cash                                        $22,312            $18,817
      Other current assets                        208,661            251,633
        Total current assets                      230,973            270,450

      Net property & equipment                     43,495             39,896
      Other assets                                  2,928              2,316
                                                 $277,396           $312,662

    LIABILITIES AND EQUITY
      Total current liabilities                  $193,048           $231,129
      Long-term debt                                3,000             11,475
      Deferred taxes and other                      6,333              4,402
      Shareholders' equity                         75,015             65,656
                                                 $277,396           $312,662

     Contact:
     Rick Abshire (713) 881-3609

SOURCE Adams Resources & Energy, Inc.