ADAMS RESOURCES & ENERGY, INC. AND SUBSIDIARIES
2022 ANNUAL REPORT
ADAMS RESOURCES & ENERGY, INC. IS ENGAGED IN CRUDE OIL MARKETING, TRANSPORTATION, TERMINALLING AND STORAGE, TANK TRUCK TRANSPORTATION OF LIQUID CHEMICALS AND DRY BULK, INTERSTATE BULK TRANSPORTATION LOGISTICS OF CRUDE OIL, CONDENSATE, FUELS, OILS AND OTHER PETROLEUM PRODUCTS AND RECYCLING AND REPURPOSING OF OFF-SPECIFICATION FUELS, LUBRICANTS, CRUDE OIL AND OTHER CHEMICALS THROUGH ITS SUBSIDIARIES, GULFMARK ENERGY, INC., SERVICE TRANSPORT COMPANY, VICTORIA EXPRESS PIPELINE, LLC, GULFMARK TERMINALS, LLC, FIREBIRD BULK CARRIERS, INC. AND PHOENIX OIL, INC.
CONTENTS
Financial Highlights | 2 |
Letter to Shareholders | 3 |
Operations Summary | 7 |
Managements' Discussion & Analysis of Financial | |
Condition & Results of Operations | 17 |
Consolidated Financial Statements | 35 |
Notes to Consolidated Financial Statements | 40 |
Report of Independent Registered Public | |
Accounting Firm | 79 |
Corporate Information | 83 |
Executive Officers & Directors | 83 |
ADAMS RESOURCES & ENERGY, INC. AND SUBSIDIARIES | 1 |
FINANCIAL HIGHLIGHTS
Year Ended December 31
2022
2021
2020
(In thousands, except per share data) | |||
Revenues | $3,366,917 | $2,025,204 | $1,022,422 |
Net Earnings | 3,487 | 11,888 | 995 |
Cash & Cash Equivalents | 20,532 | 97,825 | 39,293 |
Working Capital | 19,083 | 87,199 | 72,965 |
Total Assets | 384,159 | 374,703 | 296,187 |
Long Term Debt | 24,375 | - | - |
Financial Lease Obligations | 16,467 | 13,335 | 15,619 |
Earnings Per Common Share | $ 0.85 | $2.75 | $0.23 |
Dividends Per Common Share | $ 0.96 | $0.96 | $0.96 |
2 ADAMS RESOURCES & ENERGY, INC. AND SUBSIDIARIES
TO OUR SHAREHOLDERS
Dear Shareholders:
Adams had an extraordinary year during 2022 as we continued to execute on our long term vision of growth for the Company. Year-over-year adjusted cash flows grew by +15 percent, adjusted earnings by +10 percent and adjusted earnings per share by +16 percent. These results were achieved despite the inflationary headwinds and the market uncertainties that were prevalent in 2022. In addition, the Company continued its history of returning value to shareholders by paying a dividend for the 29th consecutiveyear.WearethankfultotheentireAdams'teamthatisalwaysfocusedonbeingsafe,efficient,andshareholderfocused.
The Company generated net earnings of $3.5 million, or $0.85 per diluted common share, on revenues of $3.37 billion for 2022, compared to net earnings of $11.9 million, or $2.75 per diluted common share, on revenues of $2.03 billion for 2021. On an adjusted basis, net earnings were $4.2 million, or $1.02 per diluted common share, for 2022, compared to $3.8 million, or $0.88 per diluted common share, for 2021. Adjusted net earnings, adjusted earnings per common share and adjusted cash flow are non-generally accepted accounting principle ("non-GAAP") financial measures that are defined and reconciled in the financial tables below.
The Company had an exciting year in 2022 in which we added another important acquisition, developed a vastly improved banking relationship, modernized our IT infrastructure, and capitalized on our strong cash position to take advantage of an unforeseen opportunity to acquire 44 percent our outstanding shares. These events placed Adams in a strong position for 2023 and beyond.
Summary of Financial Results (in thousands)
Year Ended December 31
2022
Operating Earnings (losses):
2021
2020
Marketing | $15,874 | $25,243 | $2,974 |
Transportation | 10,891 | 7,104 | 1,873 |
Pipeline & Storage | (3,579) | (2,487) | (310) |
Logistics & Repurposing | 303 | - | - |
General & Administrative | (17,718) | (13,701) | (10,284) |
Operating Earnings (losses) | 5,771 | 16,159 | (5,747) |
Other Income (expense): | |||
Interest Income | 921 | 243 | 656 |
Interest Expense | (1,287) | (746) | (444) |
Earnings (losses) Before Income Taxes | 5,405 | 15,656 | (5,535) |
Income Tax (provision) Benefit | (1,918) | (3,768) | 6,530 |
Net Earnings | $ 3,487 | $11,888 | $995 |
ADAMS RESOURCES & ENERGY, INC. AND SUBSIDIARIES | 3 |
TO OUR SHAREHOLDERS
Year Ended December 31
2022
2021
2020
Reconciliation of Adjusted Cash Flow to Net Earnings: | |||
Net Earnings | $3,487 | $11,888 | $995 |
Add (subtract): | |||
Income Tax Provision (benefit) | 1,918 | 3,768 | (6,530) |
Depreciation & Amortization | 22,707 | 19,797 | 18,573 |
Gains on Sales of Property | (2,512) | (733) | (1,859) |
Stock-Based Compensation Expense | 1,022 | 854 | 643 |
Inventory Liquidation Gains | - | (10,344) | - |
Inventory Valuation Losses | 2,008 | - | 14,967 |
Net Change in Fair Value Contracts | 353 | (14) | (9) |
Costs of Voluntary Early Retirement Program | - | - | 431 |
Adjusted Cash Flow | $ 28,983 | $25,216 | $27,211 |
Year Ended December 31
2022
2021
2020
Reconciliation of Adjusted Cash Flow to Net Cash Provided by (Used in) Operating Activities:
Net Cash Provided by (used in) Operating Activities | $13,777 | $81,026 | $(43,999) |
Add (subtract) | |||
Income Tax Provision (benefit) | 1,918 | 3,768 | (6,530) |
Deferred Income Taxes | 2,136 | 1,401 | (6,389) |
Provision for Doubtful Accounts | 20 | 6 | 27 |
Inventory Liquidation Gains | - | (10,344) | - |
Inventory Valuation Losses | 2,008 | - | 14,967 |
Costs of Voluntary Early Retirement Program | - | - | 431 |
Changes in Assets & Liabilities | 9,124 | (50,641) | 68,704 |
Adjusted Cash Flow | $ 28,983 | $25,216 | $27,211 |
4 ADAMS RESOURCES & ENERGY, INC. AND SUBSIDIARIES
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Adams Resources & Energy Inc. published this content on 20 March 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 March 2023 21:00:08 UTC.