Adams Resources & Energy, Inc. (AE) saw its loss widen to $2.15 million, or $0.51 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $0.31 million, or $0.07 a share.
Revenue during the quarter plunged 41.60 percent to $256.88 million from $439.89 million in the previous year period.
Thomas S. Smith, president and chief executive officer, attributed the 2016 earnings decline to an investment impairment provision recorded in the third quarter 2016, as well as, reduced volumes and unit margins within the Company's crude oil marketing business. The current commodity price for crude has suppressed drilling and production in the Company's area of interest and competition has stiffened for the fewer barrels available. Additionally, the Company's common carrier chemical transportation business has been negatively impacted by a rate environment that deteriorated markedly versus the prior year quarter and by lower volume with certain dedicated customers. Mr. Smith added the Company's present emphasis involves aggressive sales efforts and cost control pending a rebound in the market conditions for the Company's products and services.
Working capital increases marginally
Adams Resources & Energy, Inc. has recorded an increase in the working capital over the last year. It stood at $103.60 million as at Sep. 30, 2016, up 3.94 percent or $3.93 million from $99.66 million on Sep. 30, 2015. Current ratio was at 2.45 as on Sep. 30, 2016, up from 1.88 on Sep. 30, 2015.
Days sales outstanding were almost stable at 26 days for the quarter, when compared with the last year period.
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