Arabian American Releases Fourth Quarter and Full Year 2012 Results

     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 ncarter@arabianamericandev.com  Investor Relations Contact: Kim Rogers-Carrete, Principal Genesis Select (303) 415-0200 krogersc@genesisselect.com  Or  Matthew Selinger, Principal Genesis Select (303) 415-0200 mselinger@genesisselect.com    - 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  
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