SUGAR LAND, Texas, March 7, 2013 /PRNewswire/ -- Arabian American Development Co. (NYSE:ARSD) released their financial results for the fourth quarter and full year ended December 31, 2012.

"We are happy to report record revenue and volume for 2012 and delighted with the progress made during the year by the Al Masane Al Kobra Mining Co. ("AMAK") mine which achieved important shipping and production milestones after years of development," said Nick Carter, President and Chief Executive Officer of Arabian American.  "While we exited 2012 waiting on customer orders, we are now seeing orders resume on pace to maximize the utilization of our capacity this calendar year. Combined with ongoing AMAK shipments of copper and zinc concentrate, we believe that we have good momentum moving into 2013."  

Mr. Carter continued, "There is a change to be noted in these financial statements that is important to the clarity of our information.  As we had mentioned in previous communications, based upon the receipt of accurate financial information for our investment in AMAK as of and for the years ended December 31, 2012, 2011 and 2010 and also our ability to significantly influence the operation of the company, we concluded in the fourth quarter of 2012 that our investment in AMAK should be presented using the equity method of accounting.  The investment had previously been presented using the cost method as of and for the years ended December 31, 2011 and 2010.  The 2011 financial statements, as set forth herein, have been adjusted to apply the change in accounting method retroactively.  We believe that now and going forward, this will present a more accurate picture of the value and performance of this investment"

Fourth Quarter and Full Year 2012 Highlights
Revenue for the quarter was $49.9 million, a 18.8% decrease from the fourth quarter of 2011, and an 8% sequential decrease as compared to the third quarter of 2012. Revenue for the full year was a record $223 million, a 11.7% increase from $200 million in 2011.

Volume for the quarter was 14.1 million gallons versus 16.9 million gallons for the same period of 2011, a decrease of 16.8%.  Full year volume was a record 63.6 million for 2012 compared to 54.3 million in 2011, a 17.1% increase. 

Gross profit for the quarter was $6.9 million compared to $10.2 million in 2011, a 32.0% decrease.  Gross profit for full year 2012 was $30.8 million compared to $25.9 million, an 18.7% increase.

Adjusted EBITDA for the fourth quarter was $3.7 million compared to $7.2 million for fourth quarter 2011.  Adjusted EBITDA for the full year 2012 was $20.9 million compared to $16.9 million for the full year 2011. 

Net income for the fourth quarter including our equity in AMAK was $2.9 million or $0.12 per share as compared to net income of $3.8 million or $0.16 per share in the fourth quarter of 2011. Net income including our equity in earnings from AMAK for the full year was $11.4 million or $0.46 per diluted share as compared to net income of $13.9 million or $0.57 per diluted share in the prior year.  The change in accounting method for AMAK increased diluted 2011 EPS by approximately $.22 from what was originally reported.

We completed the year with $9.5 million in cash compared to $6.7 million as of December 31, 2011.  We had $29.2 million in working capital compared to $29.7 million at 2011 year end and a current ratio of 3.4 to 1.

Earnings Call
Arabian American will host a conference call and live webcast at 4:30 p.m. Eastern Time, today. All parties interested in participating should call 1-877-941-4774 if calling within the United States or 1-480-629-9760 if calling internationally. An audio playback will be available until March 14, 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 4601831 for the audio replay.

A link to the simultaneous webcast of today's call will be available at http://www.arabianamericandev.com under the investor relations tab and is available through Windows Media Player or RealPlayer. A webcast replay of the call will also be available on the Company's website under the investor relations tab for one year after the call date.

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 of EBITDA.  We have also included "adjusted EBITDA" which excludes the effect of equity in earnings (loss) from AMAK. 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 –

SOURCE Arabian American Development Co.