2014

Arabian American Releases Fourth Quarter and Full Year 2013 Results Record Volume and Revenue for Fourth Quarter and Full Year

Fully Diluted EPS for 2013 of $0.79 versus $0.42

Earnings Call to be Held Today at 4:30 pm EDT

SUGAR LAND, Texas, March 6, 2014 /PRNewswire/ -- Arabian American Development Co. (NYSE: ARSD), a leading provider of high purity specialty chemicals and minority owner of Al Masane Al Kobra Mining Company ("AMAK"), released their financial results for the fourth quarter and full year ended December 31, 2013.

"We ended the year with record quarterly and annual results as a result of the growth in our international business, and improved terms on our contract tolling business, as well as the ability to put more volume through our systems thanks to the successful de-bottle necking efforts at the South Hampton plant," said Nick Carter, President and Chief Executive Officer of ARSD.  "Our petrochemical business is running on all cylinders.  Our successful de-bottlenecking has allowed us to absorb higher than anticipated orders and fulfill the record volumes that we received for the quarter and year," continued Mr. Carter.  "For the coming year we will continue to focus on our margins, growing our international markets and expanding our tolling business." 

"Additionally, the AMAK mine continues to move into a more stable operating mode.  The mill produced the budgeted product tonnage in 2013 which was 36,000 tons of zinc concentrate and 36, 000 tons of copper concentrate.  In-fill drilling of the ore bodies is continuing and the two modifications to the process, the talc removal improvements and the precious metal circuit remodeling, should be complete later in the year."

Financial Results

Revenue for the fourth quarter was $66.6 million up 33% from the $49.9 million a year ago and up 9% sequentially from third quarter of 2013.  Revenues for the year were $236 million up 6% from the $223 million in 2012.    

Volume for the quarter was 19.7 million gallons versus 14.1 million gallons for the same period in 2012, an increase of 40%.  Full year volume was 67.1 million gallons up 5.5% from the 63.6 million gallons in 2012. 

Total gross profit for Q4 2013 was $9.8 million as compared to $6.9 million in the same period last year. The gross profit margin for the quarter was 14.7% compared to 13.8% in the year-ago period.  Gross profit for the full year 2013 was $35.2 million, up 14.3% compared to $30.8 in 2012.  Gross profit margin for the year was 14.9% compared to 13.8% in 2012. 

Equity in loss for AMAK in Q4 2013 was $0.3 million as compared to equity in earnings of $0.8 million in the same period last year. Equity in earnings including the gain from equity issuance for AMAK for the full year 2013 was $8.7 million compared to equity in loss of $0.2 million in 2012.

EBITDA for the fourth quarter of 2013 was $6.2 million compared to $4.5 million last year.  EBITDA for the full year was $32.5 million compared to $20.7 million in 2012.  Adjusted EBITDA which removes the effects of AMAK for comparative purposes for the fourth quarter of 2013 was $6.5 million compared to $3.7 million in 2012. Adjusted EBITDA for the full year was $23.8 million compared to $20.9 million.

Net income attributable to Arabian American in the fourth quarter 2013 was $3.2 million, or $0.13 per diluted share compared to a $1.9 million, or $0.08 per diluted share in Q42012.  Net income for the full year was $19.5 million or $0.79 per diluted share compared to $10.3 million or $0.42 per diluted share in 2012.    

Cash at the end of 2013 was $7.6 million compared to $9.5 million as of December 31, 2012.  Cash provided by operations was $13.2 million for 2013 offset by cash used in investing activities of $12.7 million and cash used in financing of $2.4 million.

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 web site at http://arabianamericandev.com/investors or by using this link: http://public.viavid.com/index.php?id=108063.  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 1-877-941-8416 or 1-480-629-9808 if calling internationally. Playback will be available until midnight Eastern Time, March 13, 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 4670971 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 measures: EBITDA and Adjusted 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/A 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, 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,


2013

2012


(thousands of dollars)

ASSETS



CURRENT ASSETS



  Cash and cash equivalents

$   7,608

$   9,508

  Trade receivables, net

22,069

15,802

  Advance to AMAK

536

2,162

  Prepaid expenses and other assets

2,075

1,561

  Contractual based intangible assets

104

250

  Inventories

12,063

9,840

  Deferred income taxes

1,324

1,054

  Taxes receivable

571

1,182




          Total current assets

46,350

41,359




  PLANT, PIPELINE, AND EQUIPMENT – AT COST

75,128

68,482

    LESS ACCUMULATED DEPRECIATION

(33,203)

(28,062)




  PLANT, PIPELINE, AND EQUIPMENT, NET

41,925

40,420




  INVESTMENT IN AMAK

54,095

37,894

  MINERAL PROPERTIES IN THE UNITED STATES

588

588

 

CONTRACTUAL BASED INTANGIBLE ASSETS, net of current portion

-

104

  OTHER ASSETS

709

11




TOTAL ASSETS

$ 143,667

$ 120,376

 


ARABIAN AMERICAN DEVELOPMENT COMPANY AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS




December 31,


2013

2012


(thousands of dollars)

LIABILITIES



  CURRENT LIABILITIES



    Accounts payable

$  7,362

$  6,306

    Accrued interest

102

96

    Current portion of derivative instruments

292

301

    Accrued liabilities

3,048

2,687

    Accrued liabilities in Saudi Arabia

140

140

    Notes payable

12

12

    Current portion of post-retirement benefit

278

269

    Current portion of long-term debt

1,400

1,500

    Current portion of other liabilities

1,654

880




          Total current liabilities

14,288

12,191




  LONG-TERM DEBT, net of current portion

11,839

14,239

  POST- RETIREMENT BENEFIT, net of current portion

649

649




  DERIVATIVE INSTRUMENTS, net of current portion  

319

592

  OTHER LIABILITIES, net of current portion

1,369

379

  DEFERRED INCOME TAXES

11,984

10,094




          Total liabilities

40,448

38,144




COMMITMENTS AND CONTINGENCIES






EQUITY



  Common Stock ‑ authorized 40 million shares of $.10 par value;

      issued and outstanding, 23.8 million and 23.8 million shares

      in 2013 and 2012, respectively

2,383

2,381

  Additional Paid-in Capital

46,064

44,791

  Accumulated Other Comprehensive Loss

(366)

(580)

  Retained Earnings

54,849

35,351

 Total Arabian American Development Company Stockholders'

    Equity

102,930

81,943

 Noncontrolling interest

289

289

       Total equity

103,219

82,232




     TOTAL LIABILITIES AND EQUITY

$ 143,667

$ 120,376

 


ARABIAN AMERICAN DEVELOPMENT COMPANY AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME









2013

2012

2011


(thousands of dollars)

Revenues




  Petrochemical product sales

$ 230,643

$ 218,512

$ 194,620

  Processing

5,584

4,346

4,897


236,227

222,858

199,517

Operating costs and expenses




  Cost of petrochemical product sales and

    Processing (including depreciation of 

    $3,518, $3,053, and $2,744, respectively)

201,064

192,100

173,600

   Gross Profit

35,163

30,758

25,917





General and Administrative Expenses




  General and administrative

14,672

12,782

11,778

  Depreciation

521

520

476


15,193

13,302

12,254





Operating income

19,970

17,456

13,663





Other income (expense)




  Interest income

15

3

4

  Interest expense

(520)

(547)

(699)

  Losses on cash flow hedge reclassified from OCI

(301)

(359)

(414)

  Equity in earnings (loss) of AMAK

4,703

(211)

(1,018)

  Gain from additional equity issuance by AMAK   

3,997

--

8,850

  Miscellaneous income (expense)

(219)

(117)

3


7,675

(1,231)

6,726

 Income before income tax expense

27,645

16,225

20,389





Income tax expense

8,147

5,904

6,505





   Net income

19,498

10,321

13,884





Net loss attributable to Noncontrolling Interest

--

--

--





Net income attributable to Arabian

  American Development Company

$ 19,498

$ 10,321

$ 13,884





Net income per common share




    Basic earnings per share (dollars)        

$ 0.81

$ 0.43

$ 0.58

    Diluted earnings per share (dollars)

$ 0.79

$ 0.42

$ 0.57





Weighted average number of common




  shares outstanding




     Basic

24,115

24,081

23,993

     Diluted

24,745

24,745

24,267

 


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





THREE MONTHS ENDED

TWELVE MONTHS ENDED


31-Dec

31-Dec


2013

2012

2013

2012


(thousands of dollars)

(thousands of dollars)






NET INCOME

$   3,182

$   1,850

$   19,498

$   10,321






Add back:





  Interest

211

196

821

906

  Taxes

1,628

1,496

8,147

5,904

  Depreciation

132

145

521

520

  Depreciation in Cost of sales

1,021

817

3,518

3,053






EBITDA

$ 6,174

$ 4,504

$ 32,505

$  20,704

Less:





Equity in (earnings) loss of AMAK

298

(832)

(8,700)

211

Adjusted EBITDA

$  6,472

$  3,672

$  23,805

$  20,915

(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.



RELATED LINKS
http://arabianamericandev.com

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