Arabian American Releases First Quarter 2013 Results Earnings Call to be Held Today at 4:30 pm EDT

SUGAR LAND, Texas, May 2, 2013 /PRNewswire/ -- Arabian American Development Co. (NYSE: ARSD), a leading provider of high purity specialty chemicals and minority owner of the Al Masane Al Kobra Mine, released their financial results for the quarter ended March 31, 2013.

Financial Results

Revenue for the first quarter was $52.7 million, a 7.1% decrease from the first quarter of 2012, and a 5.6% sequential increase as compared to the fourth quarter of 2012.

Volume for the quarter was 14.7 million gallons versus 16.2 million gallons for the first quarter of 2012, and 14.1 million gallons for the fourth quarter of 2012. 

Gross profit for the quarter was essentially flat at $6.68 million compared to $6.71 million in the same quarter last year. 

EBITDA for the first quarter was $4.3 million compared to $4.2 million for first quarter of 2012. 

Net income for the first quarter was $2.1 million or $0.09 per basic and diluted share as compared to net income of $2.0 million or $0.08 per basic and diluted share in the first quarter of 2012.

Cash at the end of the quarter was $3.7 million compared to $5.6 million as of March 31, 2012.  Cash used by investing activities during the first three months was approximately $9.0 million, representing an increase of approximately $7.2 million over the corresponding period of 2012.  During the quarter, the Company purchased an additional $7.5 million of stock in AMAK.

"We had a good quarter with volumes ticking up from the fourth quarter of 2012," said Nick Carter, President and Chief Executive Officer of Arabian American.  "Our cash use was up this quarter with our previously announced investment in AMAK.  We also purchased equipment for debottlenecking our Penhex Unit, expansion of our sales loading facility and various other improvements.  Not considering the AMAK transaction, we believe we will have lower cap-ex this year than previous, and still increase our output to meet demand. "

"On the mining side," Mr. Carter continued, "we are pleased that AMAK has settled into routine shipments of product and we continue to see progress in addressing the startup and development issues.  Metals prices are still expected to see an uptick toward the last half of the year, and that will be good for the joint venture results.  Unfortunately AMAK quarterly results weren't available at press time, so we will have to issue further information at a later date."

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://www.arabianamericandev.com. 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 1-877-941-2068 or 1-480-629-9712 if calling internationally. Playback will be available until midnight Eastern Time, May 9, 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 4611869 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 measure: 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, 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



MARCH 31,

2013

(unaudited)

DECEMBER 31,

2012

ASSETS

(thousands of dollars)

 Current Assets



  Cash and cash equivalents

$  3,651

$  9,508

  Trade receivables, net

20,008

15,802

  Advance to AMAK

2,162

2,162

  Inventories

12,298

9,840

  Prepaid expenses and other assets

1,561

1,561

  Contractual based intangible assets, net

250

250

  Taxes receivable

7

1,182

  Deferred income taxes

1,164

1,054

          Total current assets

41,101

41,359




  Plant, pipeline and equipment, net

40,688

40,420




  Investment in AMAK

46,769

38,971

  Mineral properties in the United States

588

588

  Contractual based intangible asset, net of current portion

42

104

  Other assets

11

11




     TOTAL ASSETS

$ 129,199

$ 121,453

LIABILITIES



  Current Liabilities



    Accounts payable

$  6,450

$  6,306

    Accrued interest

103

96

    Current portion of derivative instruments

287

301

    Accrued liabilities

2,131

2,699

    Accrued liabilities in Saudi Arabia

140

140

    Current portion of post-retirement benefit

271

269

    Current portion of long-term debt

1,500

1,500

    Current portion of other liabilities

828

880

          Total current liabilities

11,710

12,191




  Long-term debt, net of current portion

19,889

14,239

  Post-retirement benefit, net of current portion

649

649

  Derivative instruments, net of current portion

520

592

  Other liabilities, net of current portion

660

379

  Deferred income taxes

10,020

10,094

     Total liabilities

43,448

38,144




EQUITY



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

    outstanding  23.8 million shares in 2013 and 2012

2,381

2,381

  Additional paid-in capital

45,058

44,791

  Accumulated other comprehensive loss

(525)

(580)

  Retained earnings

38,548

36,428

  Total Arabian American Development Company Stockholders' Equity

85,462

83,020

  Noncontrolling Interest

289

289

   Total equity

85,751

83,309




     TOTAL LIABILITIES AND EQUITY

$ 129,199

$ 121,453

 

ARABIAN AMERICAN DEVELOPMENT COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)



THREE MONTHS ENDED


MARCH 31,


2013

2012



(Restated)

REVENUES

(thousands of dollars)




  Petrochemical Product Sales

$ 51,620

$ 55,829

  Processing Fees

1,125

966


52,745

56,795




OPERATING COSTS AND EXPENSES



  Cost of  Sales and Processing



    (including depreciation of  $825,  and $724, respectively)

46,066

50,077




   GROSS PROFIT

6,679

6,718




GENERAL AND ADMINISTRATIVE EXPENSES



  General and Administrative

3,505

2,987

  Depreciation

129

124


3,634

3,111




OPERATING INCOME

3,045

3,607




OTHER INCOME (EXPENSE)



  Interest Income

1

--

  Interest Expense

(117)

(165)

  Losses on Cash Flow Hedge Reclassified from OCI

(78)

(94)

  Equity in earnings (loss) of AMAK

298

(213)

  Miscellaneous Income (Expense)

(18)

(73)


86

(545)




  INCOME BEFORE INCOME TAXES

3,131

3,062




  INCOME TAXES

1,011

1,067




  NET INCOME

2,120

1,995




 NET LOSS ATTRIBUTABLE TO NONCONTROLLING INTEREST

--

--




 NET INCOME ATTRIBUTABLE TO ARABIAN AMERICAN

  DEVELOPMENT COMPANY

$ 2,120

$ 1,995




Basic Earnings per Common Share



  Net Income Attributable to Arabian American Development Company (dollars)

$ 0.09

$ 0.08




  Basic Weighted Average Number of Common Shares Outstanding

24,105

24,043




Diluted Earnings per Common Share



  Net Income Attributable to Arabian American Development Company (dollars)

$ 0.09

$ 0.08




  Diluted Weighted Average Number of Common Shares Outstanding

24,658

24,977

 

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



THREE MONTHS ENDED


31-Mar


2013

2012




NET INCOME

$          2,120

$          1,995




Add back:



  Interest

195

259

  Taxes

1,011

1,067

  Depreciation

129

124

  Depreciation in Cost of sales

825

724




EBITDA

$          4,280

$          4,169


(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.




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