SUGAR LAND, Texas, May 8, 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 Co. ("AMAK"), released their financial results for the quarter ended March 31, 2014.

"We are pleased to have the higher volumes from 2013 carry over into the first quarter, and we feel this will continue throughout the year," said Nick Carter, President and Chief Executive Officer of ARSD.  "Our petrochemical business continues to produce strong results.  First quarters are normally seasonally weak, but this year we set records for both revenue and volume.  Unfortunately, with AMAK having sold the majority of their inventory at the end of the year; and therefore, having little revenue in the first quarter, their results affected our bottom line. Overall, we are pleased with how our business is performing, and we're excited about the outlook for the future."

Financial Results

Revenue for the first quarter was $64.1 million, a 21.5% increase from the $52.7 million in the first quarter of 2013.

Volume for the quarter was 18.8 million gallons, a 27.9% increase from 14.7 million gallons for the first quarter of 2013.

Gross profit for the quarter was $8.7 million compared to $6.7 million in the same quarter last year. The gross profit margin for the quarter was 13.6% compared to 12.7% for the first quarter 2013.

Net income attributable to Arabian American in the first quarter 2014 was $2.6 million, or $0.10 per diluted share compared to a $4.8 million or $0.19 per diluted share in the first quarter of 2013. AMAK had no shipments in the first quarter of 2014 which caused a decrease in our share of AMAK's earnings and therefore, a decrease in net income.

EBITDA for the first quarter was $5.0 million compared to $6.9 million for first quarter of 2013. Adjusted EBITDA, which removes the effects of AMAK for comparative purposes, for the first quarter of 2014 was $5.4 million compared to $4.0 million in 2013.

Cash at the end of the quarter was $5.7 million compared to $7.6 million as of December 31, 2013.  Cash provided by operations was $2.1 million, cash used by investing activities was $1.7 million and cash used by financing was $2.3 million during the first three months of 2014.  During the quarter we paid $2.0 million in principal on our line of credit and made a standard payment of $350,000 on our term loan.

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://arabianamericandev.com/investors or by using this link: http://public.viavid.com/index.php?id=108759.  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 1-877-941-2069 or 1-480-629-9713 if calling internationally. Playback will be available until midnight Eastern Time, May 15, 2014. 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 4679735 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 for the year ended December 31, 2013, 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

Matthew Selinger, Principal
Genesis Select
(303) 415-0200
mselinger@genesisselect.com

-Tables follow-

SOURCE Arabian American Development Co.