Arabian American Releases First Quarter 2014 Results - NEWS10 ABC: Albany, New York News, Weather, Sports

Arabian American Releases First Quarter 2014 Results

Information contained on this page is provided by an independent third-party content provider. WorldNow and this Station make no warranties or representations in connection therewith. If you have any questions or comments about this page please contact pressreleases@worldnow.com.

SOURCE Arabian American Development Co.

- Revenue up 21.5% to $64.1 million

- Volume increased 27.9% to 18.8 million gallons

- Earnings Call to be Held Today at 4:30 pm EDT

SUGAR LAND, Texas, May 8, 2014 /PRNewswire/ -- Arabian American Development Co. (NYSE: ARSD), a leading provider of high purity, specialty chemicals and minority owner of Al Masane Al Kobra Mining Co. ("AMAK"), released their financial results for the quarter ended March 31, 2014.

"We are pleased to have the higher volumes from 2013 carry over into the first quarter, and we feel this will continue throughout the year," said Nick Carter, President and Chief Executive Officer of ARSD.  "Our petrochemical business continues to produce strong results.  First quarters are normally seasonally weak, but this year we set records for both revenue and volume.  Unfortunately, with AMAK having sold the majority of their inventory at the end of the year; and therefore, having little revenue in the first quarter, their results affected our bottom line. Overall, we are pleased with how our business is performing, and we're excited about the outlook for the future."

Financial Results

Revenue for the first quarter was $64.1 million, a 21.5% increase from the $52.7 million in the first quarter of 2013.

Volume for the quarter was 18.8 million gallons, a 27.9% increase from 14.7 million gallons for the first quarter of 2013.

Gross profit for the quarter was $8.7 million compared to $6.7 million in the same quarter last year. The gross profit margin for the quarter was 13.6% compared to 12.7% for the first quarter 2013.

Net income attributable to Arabian American in the first quarter 2014 was $2.6 million, or $0.10 per diluted share compared to a $4.8 million or $0.19 per diluted share in the first quarter of 2013. AMAK had no shipments in the first quarter of 2014 which caused a decrease in our share of AMAK's earnings and therefore, a decrease in net income.

EBITDA for the first quarter was $5.0 million compared to $6.9 million for first quarter of 2013. Adjusted EBITDA, which removes the effects of AMAK for comparative purposes, for the first quarter of 2014 was $5.4 million compared to $4.0 million in 2013.

Cash at the end of the quarter was $5.7 million compared to $7.6 million as of December 31, 2013.  Cash provided by operations was $2.1 million, cash used by investing activities was $1.7 million and cash used by financing was $2.3 million during the first three months of 2014.  During the quarter we paid $2.0 million in principal on our line of credit and made a standard payment of $350,000 on our term loan.

Earnings Call

The conference call and presentation slides will be simulcast live on the Internet and can be accessed by going to the investor relations section of the Company's website at http://arabianamericandev.com/investors or by using this link: http://public.viavid.com/index.php?id=108759.  A replay of the call will also be available through the same link. The webcast replay will be available for one month after the call.

To participate via telephone, callers should dial in five to ten minutes prior to the 4:30 pm Eastern start time; domestic callers (U.S. and Canada) should call 1-877-941-2069 or 1-480-629-9713 if calling internationally. Playback will be available until midnight Eastern Time, May 15, 2014. To listen to the playback, please call 1-877-870-5176 if calling within the United States or 1-858-384-5517 if calling internationally. Use pin number 4679735 for the replay.

About Arabian American Development Company (ARSD)

ARSD owns and operates a petrochemical facility located in southeast Texas, just north of Beaumont, which specializes in high purity petrochemical solvents and other solvent type manufacturing. The Company is also the original developer and a 35% owner of Al Masane Al Kobra Mining Co., a Saudi Arabian joint stock company.

Use of Non-GAAP Measures

The Company reports its financial results in accordance with U.S. generally accepted accounting principles ("GAAP").  This press release contains the non-GAAP measures: EBITDA and Adjusted EBITDA.  Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP.

Forward-Looking Statements

Statements in this press release that are not historical facts are forward looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward looking statements are based upon our belief, as well as, assumptions made by and information currently available to us. Because such statements are based upon expectations as to future economic performance and are not statements of fact, actual results may differ from those projected. These risks, as well as others, are discussed in greater detail in Arabian American's filings with the Securities and Exchange Commission, including Arabian American's Annual Report on Form 10-K for the year ended December 31, 2013, and the Company's subsequent Quarterly Reports on Form 10-Q.  All forward-looking statements included in this press release are based upon information available to the Company as of the date of this press release. 

Company Contact:
Nick Carter, President and Chief Executive Officer
(409) 385-8300
ncarter@arabianamericandev.com

Matthew Selinger, Principal
Genesis Select
(303) 415-0200
mselinger@genesisselect.com

-Tables follow-

 

 

ARABIAN AMERICAN DEVELOPMENT COMPANY AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS



MARCH 31,

2014

(unaudited)

DECEMBER 31,

2013

ASSETS

(thousands of dollars)

 Current Assets



  Cash and cash equivalents

$  5,693

$  7,608

  Trade receivables, net

24,449

22,069

  Advance to AMAK

536

536

  Inventories

11,977

12,063

  Prepaid expenses and other assets

1,625

2,075

  Contractual based intangible assets, net

42

104

  Taxes receivable

292

571

  Deferred income taxes

1,167

1,324

          Total current assets

45,781

46,350




  Plant, pipeline and equipment, net

42,229

41,925




  Investment in AMAK

53,745

54,095

  Mineral properties in the United States

588

588

  Other assets

648

709




     TOTAL ASSETS

$ 142,991

$ 143,667

LIABILITIES



  Current Liabilities



    Accounts payable

$  7,369

$  7,362

    Accrued interest

93

102

    Current portion of derivative instruments

229

292

    Accrued liabilities

2,498

3,060

    Accrued liabilities in Saudi Arabia

140

140

    Current portion of post-retirement benefit

280

278

    Current portion of long-term debt

1,400

1,400

    Current portion of other liabilities

1,654

1,654

          Total current liabilities

13,663

14,288




  Long-term debt, net of current portion

9,489

11,839

  Post-retirement benefit, net of current portion

649

649

  Derivative instruments, net of current portion

266

319

  Other liabilities, net of current portion

958

1,369

  Deferred income taxes

11,588

11,984

     Total liabilities

36,613

40,448




EQUITY



  Common stock-authorized 40 million shares of $.10 par value; issued and

     outstanding  23.9 million and 23.8 million shares in 2014 and 2013, respectively

2,386

2,383

  Additional paid-in capital

46,577

46,064

  Accumulated other comprehensive loss

(322)

(366)

  Retained earnings

57,448

54,849

  Total Arabian American Development Company Stockholders' Equity

106,089

102,930

  Noncontrolling Interest

289

289

   Total equity

106,378

103,219




     TOTAL LIABILITIES AND EQUITY

$ 142,991

$ 143,667

 

 

ARABIAN AMERICAN DEVELOPMENT COMPANY AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)



THREE MONTHS ENDED


MARCH 31,


2014

2013

REVENUES

(thousands of dollars)




  Petrochemical Product Sales

$ 62,392

$ 51,620

  Processing Fees

1,708

1,125


64,100

52,745




OPERATING COSTS AND EXPENSES



  Cost of  Sales and Processing



    (including depreciation of  $865 and $825, respectively)

55,386

46,066




   GROSS PROFIT

8,714

6,679




GENERAL AND ADMINISTRATIVE EXPENSES



  General and Administrative

4,189

3,505

  Depreciation

139

129


4,328

3,634




OPERATING INCOME

4,386

3,045




OTHER INCOME (EXPENSE)



  Interest Income

9

1

  Interest Expense

(110)

(117)

  Losses on Cash Flow Hedge Reclassified from OCI

(67)

(78)

  Equity in earnings (losses) of AMAK

(350)

2,964

  Miscellaneous Expense

(45)

(18)


(563)

2,752




  INCOME BEFORE INCOME TAXES

3,823

5,797




  INCOME TAXES

1,224

1,011




  NET INCOME

2,599

4,786




 NET LOSS ATTRIBUTABLE TO NONCONTROLLING INTEREST

--

--




 NET INCOME ATTRIBUTABLE TO ARABIAN AMERICAN

  DEVELOPMENT COMPANY

$ 2,599

$ 4,786




Basic Earnings per Common Share



  Net Income Attributable to Arabian American Development Company (dollars)

$ 0.11

$ 0.20




  Basic Weighted Average Number of Common Shares Outstanding

24,151

24,105




Diluted Earnings per Common Share



  Net Income Attributable to Arabian American Development Company (dollars)

$ 0.10

$ 0.19




  Diluted Weighted Average Number of Common Shares Outstanding

24,918

24,658

 

 

ARABIAN AMERICAN DEVELOPMENT COMPANY AND SUBSIDIARIES RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES(1)



THREE MONTHS ENDED


31-Mar


2014

2013




NET INCOME

$    2,599

$    4,786




Add back:



  Interest

177

195

  Taxes

1,224

1,011

  Depreciation

1,004

954




EBITDA

$    5,004

$    6,946




 Equity in (Earnings) Losses in AMAK

350

(2,964)




Adjusted EBITDA

$    5,354

$   3,982


(1)This press release includes non-GAAP measures.  Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP.

©2012 PR Newswire. All Rights Reserved.

Powered by WorldNow

341 Northern Blvd., Albany, NY 12204

Telephone: 518.436.4822
Fax: 518.426.4792
Email: news@news10.com

Can’t find something?
Powered by WorldNow
All content © Copyright 2000 - 2014 Young Broadcasting of Albany, Inc. A Media General Company.