Arabian American Development Announces First Quarter 2009 Financial Results
First Quarter Net Income Increases 195% Year over Year
Financial and Operational Highlights
- Consolidated revenue for the first quarter ended
March 31, 2009 decreased 12.3% to$27.4 million , compared to revenue of$31.2 million in the first quarter 2008. - For the quarter ended
March 31, 2009 , total gross profit margin increased approximately$4.1 million or 83.7% as compared to the same period in 2008. - Net income in the first quarter 2009 was up 195% to
$4.2 million or$0.18 per basic and diluted share compared to net income of$1.4 million , or$0.06 per basic and diluted share for first quarter 2008. - The Company is actively pursuing export opportunities with current sales in
Australia ,South America ,Europe , the Far East and theMiddle East . - Subsequent to the quarter end, the Board of Directors accepted the resignation of Dr.
Ibrahim A. Al Moneef from his position as board member and as a member of the Al Masane Al Kobra (“AMAK”) Board. Mr.Robert E. Kennedy , who is currently on the Board of Directors of Arabian American Development Company, was chosen by the Board to replace Dr. Al Moneef as the Company’s representative on the AMAK Board. - Subsequent to the quarter end,
Allen P. McKee was appointed to the Board of Directors effectiveApril 28, 2009 , and will serve on the Audit, Nominating and Compensation Committees.
First Quarter 2009 Financial Results
Consolidated revenue for the first quarter ended
During the first quarter of 2009, the cost of petrochemical sales and processing (including depreciation) decreased approximately
General and Administrative costs for the first quarter of 2009 decreased approximately 22.3% to
The Company reported net income in the first quarter 2009 of
Mr. Carter continued, “Our expanded South Hampton production facility ran at 45% of capacity per calendar day, which is approximately 3,000 barrels per day. This was a 6% increase in production volume from a year ago. We continue to increase our success with foreign exports including current sales in
Mr. Carter concluded, “At this time, we would like to thank Dr.
The Company completed the quarter with
The Company had
Teleconference
Management will conduct a conference call and live web cast at
About Arabian American Development Company (ARSD)
Arabian American owns and operates a petrochemical facility located in southeast
Safe Harbor
Statements in this 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 Management’s belief, as well as, assumptions made by and information currently available to Management. 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
Company Contact: Nick Carter, Executive Vice President and Chief
Operating Officer
(409) 385-8300
ncarter@southhamptonr.com
Investor Contact: Cameron Donahue or Brett Maas
Hayden IR
(651) 653-1854
Cameron@haydenir.com
Tables follow
ARABIAN AMERICAN DEVELOPMENT COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
MARCH 31, DECEMBER 31,
2009 2008
(unaudited)
ASSETS
Current Assets
Cash and cash equivalents $ 3,409,952 $ 2,759,236
Trade Receivables, Net of allowance
for doubtful accounts of $500,000
and $500,000, respectively 12,759,589 11,904,026
Current portion of notes receivable,
net of discount of $52,183
and $53,628,respectively 474,699 528,549
Derivative instrument deposits 200,000 3,950,000
Prepaid expenses and other assets 734,679 799,342
Inventories 3,819,247 2,446,200
Deferred income taxes 5,259,855 8,785,043
Income taxes receivable 1,561,156 429,626
Total current assets 28,219,177 31,602,022
Property, Pipeline and Equipment 47,438,255 47,184,865
Less: Accumulated Depreciation (15,470,774) (14,649,791)
Net Property, Pipeline and Equipment 31,967,481 32,535,074
Investment in AMAK 33,002,407 33,002,407
Mineral Properties in the United States 590,653 588,311
Notes Receivable, net of discount of
$583 and $16,793, respectively, net of
current portion 301,045 407,388
Other Assets 10,938 10,938
TOTAL ASSETS $ 94,091,701 $ 98,146,140
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable $6,213,099 $6,069,851
Accrued interest 97,953 147,461
Derivative instruments 2,144,505 8,673,311
Accrued liabilities 1,445,527 1,029,690
Accrued liabilities in
Saudi Arabia 1,448,533 1,429,156
Notes payable 12,000 12,000
Current portion of long-term debt 2,038,606 4,920,442
Current portion of other liabilities 838,826 544,340
Total Current Liabilities 14,239,049 22,826,251
Long-Term Debt, net of current portion 23,961,853 23,557,294
Post Retirement Benefit 823,500 823,500
Other Liabilities, net of current
portion 319,179 446,035
Deferred Income Taxes 3,278,678 3,356,968
Total liabilities 42,622,259 51,010,048
STOCKHOLDERS' EQUITY
Common Stock authorized 40,000,000
shares of $.10 par value; issued and
outstanding, 23,421,995 shares in 2009
and 2008, respectively 2,342,199 2,342,199
Additional Paid-in Capital 41,378,280 41,325,207
Accumulated Other Comprehensive Loss (1,010,735) (1,120,072)
Retained Earnings 8,472,350 4,299,535
Total Arabian American Development
Company Stockholders' Equity 51,182,094 46,846,869
Noncontrolling interest 287,348 289,223
Total equity 51,469,442 47,136,092
$94,091,701 $98,146,140
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY
ARABIAN AMERICAN DEVELOPMENT COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
THREE MONTHS ENDED
MARCH 31
2009 2008
REVENUES
Petrochemical Product Sales $23,073,837 $30,118,721
Transloading Sales 3,419,056 --
Processing Fees 904,155 1,115,336
27,397,048 31,234,057
OPERATING COSTS AND EXPENSES
Cost of Petrochemical Product
Sales and Processing
(including depreciation of
$552,563 and $234,319,
respectively) 18,434,822 26,355,934
GROSS PROFIT 8,962,226 4,878,123
GENERAL AND ADMINISTRATIVE EXPENSES
General and Administrative 2,064,336 2,657,910
Depreciation 114,589 76,185
2,178,925 2,734,095
OPERATING INCOME 6,783,301 2,144,028
OTHER INCOME (EXPENSE)
Interest Income 25,717 63,938
Interest Expense (308,676) (34,018)
Miscellaneous Income (Expense) (66,542) 25,310
(349,501) 55,230
INCOME BEFORE INCOME TAXES 6,433,800 2,199,258
INCOME TAXES 2,262,860 793,347
NET INCOME $4,170,940 $1,405,911
NET LOSS ATTRIBUTABLE TO
NONCONTROLLING INTEREST 1,875 10,006
NET INCOME ATTRIBUTABLE TO ARABIAN
AMERICAN DEVELOPMENT COMPANY $4,172,815 $1,415,917
Basic Earnings per Common Share
Net Income attributable to Arabian
American Development Company $0.18 $0.06
Basic Weighted Average Number
of Common Shares Outstanding 23,721,995 23,118,588
Diluted Earnings per Common Share
Net Income attributable to Arabian
American Development Company $0.18 $0.06
Diluted Weighted Average Number
of Common Shares Outstanding 23,721,995 23,533,142
SOURCE Arabian American Development Co.