Arabian American Releases First Quarter 2013 Results

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
[email protected]

Investor Relations Contact:
Kim Rogers-Carrete, Principal
Genesis Select
(303) 415-0200
[email protected] 
Or
Matthew Selinger, Principal
Genesis Select
(303) 415-0200
[email protected]

-Tables follow-

SOURCE Arabian American Development Co.