Adams Resources & Energy Inc. (AE) News

HOUSTON, March 31 /PRNewswire-FirstCall/ -- Adams Resources & Energy, Inc., (Amex: AE), announced unaudited fourth quarter 2005 net earnings of $7,607,000 or $1.80 per common share on revenues totaling $657,988,000. This compares to unaudited fourth quarter 2004 net earnings of $2,200,000 or $.52 per share on revenues of $562,146,000. Net earnings for 2005 totaled $17,641,000 or $4.18 per share. Revenues for 2005 totaled $2,364,833,000.

    A summary of operating results follows:



                                                         Fourth Quarter
                                                      2005            2004
    Operating earnings
        Marketing                                 $10,462,000      $3,868,000
        Transportation                              1,489,000       1,971,000
        Oil and gas                                 2,174,000         193,000
    General & administrative                       (3,174,000)     (2,293,000)
    Interest, net                                      24,000          (6,000)
    Income tax (provision)                         (3,961,000)     (1,553,000)

    Earnings from continuing operations             7,014,000       2,180,000

    Income from discontinued operations               593,000          20,000

        Net earnings                               $7,607,000      $2,200,000

Chairman K.S. 'Bud' Adams, Jr., attributed a substantial portion of the fourth quarter 2005 earnings increase to certain non-recurring items within the Company's marketing segment. During the current quarter, the Company reduced expenses by an after tax amount totaling $2,210,000 from the reversal of previously recorded accrual items following the final 'true-up' of the accounting for such items. Further, the Company collected and recognized as a reduction in after-tax expenses some $1,011,000 of previously disputed and fully reserved items. In addition, income from discontinued operations included a net after tax gain of $601,000 following the sale of certain oil and gas properties. The Company does not anticipate the recurrence of similar such items in 2006. The Company also benefited from improved earnings in its oil and gas segment during the fourth quarter of 2005 due to increased prices for crude oil and natural gas.

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 STATEMENTS OF OPERATIONS
                    (In thousands, except per share data)

                                      Year Ended          Three Months Ended
                                     December 31,             December 31,
                                   2005         2004        2005       2004

    Revenues                    $2,364,833   $2,069,087   $657,988   $562,146

    Costs, expenses and other   (2,339,481)  (2,055,353)  (647,013)  (558,413)
    Income tax (provision)          (8,583)      (4,996)    (3,961)    (1,553)
    Earnings from continuing
     operations                     16,769        8,738      7,014      2,180
    Income (loss) from
     discontinued operations,
     net of tax                        872         (130)       593         20

    Net earnings                   $17,641       $8,608     $7,607     $2,200


    Earnings (loss) per share
       From continuing operations    $3.97        $2.07      $1.66       $.51
       From discontinued operations    .21         (.03)       .14        .01

       Basic and diluted net
        earnings per Common share    $4.18        $2.04      $1.80       $.52

    Dividends per common share        $.37         $.30       $.37       $.30



                 UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
                                  (In thousands)

                                            December 31,    December 31,
                                                2005            2004
    ASSETS
      Cash                                   $ 18,817        $ 19,942
      Other current assets                    251,633         189,397
        Total current assets                  270,450         209,339

      Net property & equipment                 39,896          29,076
      Other assets                              2,316             439
                                             $312,662        $238,854
    LIABILITIES AND EQUITY
      Total current liabilities              $231,129        $173,550
      Long-term debt                           11,475          11,475
      Deferred taxes and other                  4,402           4,254
      Shareholders' equity                     65,656          49,575
                                             $312,662        $238,854

     Rick Abshire
     (713) 881-3609

SOURCE Adams Resources & Energy, Inc.