Arabian American Releases Fourth Quarter and Full Year 2012 Results Record Year for Revenue and Volume Earnings Call today at 4:30pm ET PR Newswire SUGAR LAND, Texas, March 7, 2013 SUGAR LAND, Texas, March 7, 2013 /PRNewswire/ -- Arabian American Development Co. (NYSE:ARSD) released their financial results for the fourth quarter and full year ended December 31, 2012. "We are happy to report record revenue and volume for 2012 and delighted with the progress made during the year by the Al Masane Al Kobra Mining Co. ("AMAK") mine which achieved important shipping and production milestones after years of development," said Nick Carter, President and Chief Executive Officer of Arabian American. "While we exited 2012 waiting on customer orders, we are now seeing orders resume on pace to maximize the utilization of our capacity this calendar year. Combined with ongoing AMAK shipments of copper and zinc concentrate, we believe that we have good momentum moving into 2013." Mr. Carter continued, "There is a change to be noted in these financial statements that is important to the clarity of our information. As we had mentioned in previous communications, based upon the receipt of accurate financial information for our investment in AMAK as of and for the years ended December 31, 2012, 2011 and 2010 and also our ability to significantly influence the operation of the company, we concludedin the fourth quarter of 2012 that our investment in AMAK should be presented using the equity method of accounting. The investment had previously been presented using the cost method as of and for the years ended December 31, 2011 and 2010. The 2011 financial statements, as set forth herein, have been adjusted to apply the change in accounting method retroactively. We believe that now and going forward, this will present a more accurate picture of the value and performance of this investment" Fourth Quarter and Full Year 2012 Highlights Revenue for the quarter was $49.9 million, a 18.8% decrease from the fourth quarter of 2011, and an 8% sequential decrease as compared to the third quarter of 2012. Revenue for the full year was a record $223 million, a 11.7% increase from $200 million in 2011. Volume for the quarter was 14.1 million gallons versus 16.9 million gallons for the same period of 2011, a decrease of 16.8%. Full year volume was a record 63.6 million for 2012 compared to 54.3 million in 2011, a 17.1% increase. Gross profit for the quarter was $6.9 million compared to $10.2 million in 2011, a 32.0% decrease. Gross profit for full year 2012 was $30.8 million compared to $25.9 million, an 18.7% increase. Adjusted EBITDA for the fourth quarter was $3.7 million compared to $7.2 million for fourth quarter 2011. Adjusted EBITDA for the full year 2012 was $20.9 million compared to $16.9 million for the full year 2011. Net income for the fourth quarter including our equity in AMAK was $2.9 million or $0.12 per share as compared to net income of $3.8 million or $0.16 per share in the fourth quarter of 2011. Net income including our equity in earnings from AMAK for the full year was $11.4 million or $0.46 per diluted share as compared to net income of $13.9 million or $0.57 per diluted share in the prior year. The change in accounting method for AMAK increased diluted 2011 EPS by approximately $.22 from what was originally reported. We completed the year with $9.5 million in cash compared to $6.7 million as of December 31, 2011. We had $29.2 million in working capital compared to $29.7 million at 2011 year end and a current ratio of 3.4 to 1. Earnings Call Arabian American will host a conference call and live webcast at 4:30 p.m. Eastern Time, today. All parties interested in participating should call 1-877-941-4774 if calling within the United States or 1-480-629-9760 if calling internationally. An audio playback will be available until March 14, 2013. 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 4601831 for the audio replay. A link to the simultaneous webcast of today's call will be available at http://www.arabianamericandev.com under the investor relations tab and is available through Windows Media Player or RealPlayer. A webcast replay of the call will also be available on the Company's website under the investor relations tab for one year after the call date. 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 measure of EBITDA. We have also included "adjusted EBITDA" which excludes the effect of equity in earnings (loss) from AMAK. 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, 2012, 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 firstname.lastname@example.org Investor Relations Contact: Kim Rogers-Carrete, Principal Genesis Select (303) 415-0200 email@example.com Or Matthew Selinger, Principal Genesis Select (303) 415-0200 firstname.lastname@example.org - Tables follow – ARABIAN AMERICAN DEVELOPMENT COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS December 31, 2012 2011 (restated) (thousands of dollars) ASSETS CURRENT ASSETS Cash and cash equivalents $ 9,508 $ 6,674 Derivative instruments - 393 Trade receivables, net 15,802 23,198 Advance to AMAK 2,162 120 Prepaid expenses and other assets 1,561 562 Contractual based intangible assets 250 250 Inventories 9,840 9,456 Deferred income taxes 1,054 1,169 Taxes receivable 1,182 - Total current assets 41,359 41,822 PLANT, PIPELINE, AND EQUIPMENT – AT COST 68,482 60,624 LESS ACCUMULATED DEPRECIATION (28,062) (23,672) PLANT, PIPELINE, AND EQUIPMENT, NET 40,420 36,952 INVESTMENT IN AMAK 38,971 38,105 MINERAL PROPERTIES IN THE UNITED STATES 588 588 CONTRACTUAL BASED INTANGIBLE ASSETS, net of current 104 355 portion OTHER ASSETS 11 11 TOTAL ASSETS $ 121,453 $ 117,833 ARABIAN AMERICAN DEVELOPMENT COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS - Continued December 31, 2012 2011 (restated) (thousands of dollars) LIABILITIES CURRENT LIABILITIES Accounts payable $ 6,306 $ 5,857 Accrued interest 96 116 Current portion of derivative instruments 301 345 Accrued liabilities 2,687 2,944 Accrued liabilities in Saudi Arabia 140 140 Notes payable 12 12 Current portion of post-retirement benefit 269 258 Current portion of long-term debt 1,500 1,500 Current portion of other liabilities 880 937 Total current liabilities 12,191 12,109 LONG-TERM DEBT, net of current portion 14,239 22,739 POST- RETIREMENT BENEFIT, net of current portion 649 649 DERIVATIVE INSTRUMENTS, net of current portion 592 789 OTHER LIABILITIES, net of current portion 379 1,071 DEFERRED INCOME TAXES 10,094 9,394 Total liabilities 38,144 46,751 COMMITMENTS AND CONTINGENCIES EQUITY Common Stock ‑ authorized 40 million shares of $.10 par value; issued and outstanding, 23.8 million and 23.7 2,381 2,373 million shares in 2012 and 2011, respectively Additional Paid-in Capital 44,791 44,138 Accumulated Other Comprehensive Loss (580) (748) Retained Earnings 36,428 25,030 Total Arabian American Development Company Stockholders' 83,020 70,793 Equity Noncontrolling interest 289 289 Total equity 83,309 71,082 TOTAL LIABILITIES AND EQUITY $ 121,453 $ 117,833 ARABIAN AMERICAN DEVELOPMENT COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME THREE MONTHS ENDED 12 MONTHS ENDED 31-Dec 31-Dec 2012 2011 2012 2011 (restated) (restated) (thousands of dollars) REVENUES Petrochemical Product Sales $ 48,831 $ 60,183 $ 218,512 $ 194,620 Processing Fees 1,106 1,295 4,346 4,897 49,937 61,478 222,858 199,517 OPERATING COSTS AND EXPENSES Cost of Petrochemical Product Sales and Processing 43,031 51,317 192,100 173,600 GROSS PROFIT 6,906 10,161 30,758 25,917 GENERAL AND ADMINISTRATIVE EXPENSES General and Administrative 4,027 3,643 12,782 11,778 Depreciation 145 120 520 476 4,172 3,763 13,302 12,254 OPERATING INCOME 2,734 6,398 17,456 13,663 OTHER INCOME (EXPENSE) Interest Income 1 - 3 4 Interest Expense (112) (185) (547) (699) Losses on cash flow hedge (84) (98) (359) (414) reclassified from OCI Equity in earnings (loss) from 1,419 (255) 192 (1,018) AMAK Gain on additional equity issue 184 - 674 8,850 by AMAK Miscellaneous Income (Expense) (25) (12) (117) 3 1,383 (550) (154) 6,726 INCOME BEFORE INCOME TAX EXPENSE 4,117 5,848 17,302 20,389 INCOME TAXES 1,190 2,026 5,904 6,505 NET INCOME 2,927 3,822 11,398 13,884 NET LOSS ATTRIBUTABLE TO - - - - NONCONTROLLING INTEREST NET INCOME ATTRIBUTABLE TO $ 2,927 $ 3,822 $ 11,398 $ 13,884 ARABIAN AMERICAN DEVELOPMENT CO. Net income per common share Basic earnings per share $0.12 $0.16 $0.47 $0.58 Basic weighted average number 24,105 24,001 24,081 23,993 of common shares outstanding Diluted earnings per share $0.12 $0.16 $0.46 $0.57 Diluted weighted average number 24,704 24,523 24,745 24,267 of common shares outstanding ARABIAN AMERICAN DEVELOPMENT COMPANY AND SUBSIDIARIES RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES^(1) THREE MONTHS ENDED 12 MONTHS ENDED 31-Dec 31-Dec 2012 2011 2012 2011 (in thousands) NET INCOME $ $ $ $ 2,927 3,822 11,398 13,884 Add back: Interest 196 283 906 1,113 Taxes 1,190 2,026 5,904 6,505 Depreciation 145 120 520 476 Depreciation in Cost 817 695 3,053 2,744 of sales EBITDA $ $ $ $ 5,275 6,946 21,781 24,722 Equity in (earnings) (1,603) 255 (866) (7,832) losses in AMAK Adjusted EBITDA $ $ $ $ 3,672 7,201 20,915 16,890 12/31/2012 12/31/2011 (in thousands except (in thousands except ratio) ratio) Current assets $ 41,359 $ 41,822 Current liabilities $ 12,191 $ 12,109 Working capital $ 29,168 $ 29,713 (current assets less current liabilities) Current ratio 3.4 (current assets divided by current liabilities) (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. SOURCE Arabian American Development Co. Website: http://www.arabianamericandev.com
Arabian American Releases Fourth Quarter and Full Year 2012 Results
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