HOUSTON – Adams Assets & Vitality, Inc. (NYSE AMERICAN: AE) disclosed a internet lack of $2.2 million for the second quarter ended June 30, 2024, a decline from the revenue reported in the identical interval final 12 months. Regardless of the setback, the corporate introduced a maintained quarterly money dividend of $0.24 per frequent share.
The vitality firm, which specializes within the advertising, transportation, and logistics of and different merchandise, reported complete revenues of $718.5 million for the quarter, marking a big improve from the earlier 12 months. Nevertheless, the web lack of $2.2 million, or $0.87 per share, contrasts with a internet revenue of $827,000 within the second quarter of 2023.
“Our second quarter outcomes mirror the extended weak point throughout the specialty chemical compounds market via a mix of decrease demand, extra capability, and continued inflationary pressures throughout our enterprise in addition to a further $0.8 million of self-insurance retention expense,” stated Kevin Roycraft, President and CEO of the Firm.
Earnings earlier than curiosity, taxes, depreciation, and amortization (EBITDA) stood at $3.7 million, with adjusted EBITDA, which excludes stock valuation losses, at $4.2 million. The corporate highlighted the impression of a difficult specialty chemical compounds market, characterised by decrease demand and inflationary pressures, as a key issue within the quarter’s efficiency.
Operational highlights included a lower in crude oil advertising volumes by GulfMark Vitality, certainly one of Adams’ subsidiaries, and a 23% sequential progress in throughput and terminalling volumes on the Victoria Specific pipeline. The corporate additionally reported a stable place with 244,871 barrels of crude oil stock by the top of the quarter.
Capital investments through the quarter totaled $2.4 million, primarily for the acquisition of transportation gear and ongoing development on the Dayton facility. Regardless of the web loss, Adams emphasised its sturdy monetary place, which incorporates money and money equivalents of $38.5 million and liquidity of $88.5 million.
In different current information, Adams Assets & Vitality, Inc. has made vital adjustments to its present credit score settlement. The amendments, known as Modification No. 2, modify the monetary covenants, particularly the Mounted Cost Protection Ratio and the Consolidated Mounted Prices definitions. These alterations are designed to supply extra correct monetary covenant calculations and can be efficient from the interval ending June 30, 2024.
InvestingPro Insights
Adams Assets & Vitality, Inc. (NYSE AMERICAN: AE) has lately confronted a difficult market atmosphere, as mirrored within the firm’s monetary efficiency. In accordance with real-time information from InvestingPro, AE’s income for the final twelve months as of Q1 2024 stood at $2.76 billion, experiencing a decline of 15.01% in comparison with the identical interval final 12 months. This contraction in income aligns with the corporate’s reported internet loss for the second quarter of 2024.
Whereas income progress for Q1 2024 confirmed a marginal improve of 1.67%, it is essential to notice that AE’s gross revenue margins stay below stress, with a low margin of 1.7% for a similar interval. This aligns with one of many InvestingPro Ideas, which factors out the corporate’s wrestle with weak gross revenue margins. Moreover, the corporate’s working revenue margin was simply 0.09%, indicating that profitability challenges persist.
Regardless of these monetary headwinds, AE has demonstrated a dedication to shareholder returns, sustaining dividend funds for 31 consecutive years, with a dividend yield of three.92% as of mid-2024. This can be a vital side for traders, particularly these in search of income-generating investments. Moreover, the corporate has been worthwhile over the past twelve months, with a fundamental EPS from persevering with operations at $0.67.
Buyers searching for a deeper evaluation can discover extra InvestingPro Recommendations on AE, which give insights into the corporate’s efficiency and expectations. As an illustration, whereas analysts don’t anticipate the corporate can be worthwhile this 12 months, AE operates with a reasonable degree of debt, suggesting a balanced strategy to monetary administration. In complete, there are seven InvestingPro Ideas accessible for AE, which could be discovered at https://www.investing.com/professional/AE, providing a complete outlook for knowledgeable funding selections.
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