THE ADAMS EXPRESS COMPANY
Board of Directors
Enrique R. Arzac 2,4 |
Roger W. Gale 1,3,5 | |
Phyllis O. Bonanno 1,4,5 |
Thomas H. Lenagh 2,3 | |
Kenneth J. Dale 3,4 |
Kathleen T. McGahran 1,4,5 | |
Daniel E. Emerson 1,3,5 |
Douglas G. Ober 1 | |
Frederic A. Escherich 2,3 |
Craig R. Smith 2,4 |
1. | Member of Executive Committee |
2. | Member of Audit Committee |
3. | Member of Compensation Committee |
4. | Member of Retirement Benefits Committee |
5. | Member of Nominating and Governance Committee |
Officers
Douglas G. Ober |
Chairman and Chief Executive Officer | |
Joseph M. Truta |
President | |
David D. Weaver |
Executive Vice President | |
Lawrence L. Hooper, Jr. |
Vice President, General Counsel and Secretary | |
Maureen A. Jones |
Vice President, Chief Financial Officer and Treasurer | |
David R. Schiminger |
Vice PresidentResearch | |
D. Cotton Swindell |
Vice PresidentResearch | |
Christine M. Sloan |
Assistant Treasurer | |
Geraldine H. Paré |
Assistant Secretary |
Stock Data
Market Price (3/31/08) |
$12.51 | |
Net Asset Value (3/31/08) |
$14.49 | |
Discount: |
13.7% |
New York Stock Exchange ticker symbol: ADX
NASDAQ Mutual Fund Quotation Symbol: XADEX
Newspaper stock listings are generally under the abbreviation: AdaEx
Distributions in 2008
From Investment Income (paid or declared) |
$ | 0.08 | |
From Net Realized Gains |
0.02 | ||
Total |
$ | 0.10 | |
2008 Dividend Payment Dates
March 1, 2008
June 1, 2008
September 1, 2008*
December 27, 2008*
*Anticipated
LETTER TO STOCKHOLDERS
We submit herewith the financial statements of The Adams Express Company (the Company) for the three months ended March 31, 2008. Also provided are a schedule of investments and other financial information.
Net assets of the Company at March 31, 2008 were $14.49 per share on 87,133,182 shares outstanding, compared with $15.72 per share at December 31, 2007 on 87,668,847 shares outstanding. On March 1, 2008, a distribution of $0.05 per share was paid, consisting of $0.02 from 2007 investment income, $0.01 from 2007 short-term capital gain, $0.01 from 2007 long-term capital gain, and $0.01 from 2008 investment income, all taxable in 2008. On April 10, 2008 an investment income dividend of $0.05 per share was declared to stockholders of record May 15, 2008, payable June 1, 2008.
Net investment income for the three months ended March 31, 2008 amounted to $5,702,605, compared with $5,658,809 for the same three month period in 2007. These earnings are equal to $0.07 per share in each period.
Net capital gain realized on investments for the three months ended March 31, 2008 amounted to $8,819,191, or $0.10 per share.
For the three months ended March 31, 2008, the total return on the net asset value (with dividends and capital gains reinvested) of the Companys shares was (7.5)%. The total return on the market value of the Companys shares for the period was (11.1)%. These compare to a (9.4)% total return for the Standard & Poors 500 Composite Stock Index and a (10.2)% total return for the Lipper Large Cap Core Mutual Fund Average over the same time period.
For the twelve months ended March 31, 2008, the Companys total return on net asset value was (3.3)% and on market value was (4.1)%. Comparable figures for the S&P 500 and the Lipper Large Cap Core Mutual Fund Average were (5.1)% and (5.6)%, respectively.
The Annual Meeting was held on March 13, 2008 in Baltimore, Maryland. The results of the voting at the Annual Meeting are shown on page 14.
Effective April 1, 2008, the Board of Directors promoted David D. Weaver to the position of Executive Vice President. He becomes a member of the Investment Committee and an integral part of the portfolio management team. Mr. Weaver joined the Company in 2004 as a research analyst covering the industrials and consumer-discretionary sectors.
Current and potential stockholders can find information about the Company, including the daily net asset value (NAV) per share, the market price, and the discount/premium to the NAV, on our website at www.adamsexpress.com. Also available on the website are a history of the Company, historical financial information, and other useful content. Further information regarding stockholder services is located on page 15 of this report.
By order of the Board of Directors,
Douglas G. Ober,
Chairman and
Chief Executive Officer
Joseph M. Truta,
President
April 11, 2008
STATEMENT OF ASSETS AND LIABILITIES
March 31, 2008
(unaudited)
Assets |
|||||||
Investments* at value: |
|||||||
Common stocks and convertible securities |
$ | 1,118,983,342 | |||||
Non-controlled affiliate, Petroleum & Resources Corporation |
79,664,177 | ||||||
Short-term investments (cost $61,589,754) |
61,589,754 | ||||||
Securities lending collateral (cost $55,479,892) |
55,479,892 | $ | 1,315,717,165 | ||||
Cash |
349,759 | ||||||
Receivables: |
|||||||
Investment securities sold |
51,379 | ||||||
Dividends and interest |
1,322,360 | ||||||
Prepaid pension cost |
3,093,318 | ||||||
Prepaid expenses and other assets |
2,472,331 | ||||||
Total Assets |
1,323,006,312 | ||||||
Liabilities |
|||||||
Investment securities purchased |
1,331,287 | ||||||
Open written option contracts at value (proceeds $674,431) |
545,700 | ||||||
Obligations to return securities lending collateral |
55,479,892 | ||||||
Accrued expenses |
3,351,768 | ||||||
Total Liabilities |
60,708,647 | ||||||
Net Assets |
$ | 1,262,297,665 | |||||
Net Assets |
|||||||
Common Stock at par value $0.001 per share, authorized 150,000,000 shares; issued and outstanding 87,133,182 shares (includes 107,470 restricted shares, 7,500 restricted stock units, and 5,799 deferred stock units) (Note 6) |
$ | 87,133 | |||||
Additional capital surplus |
958,722,175 | ||||||
Accumulated other comprehensive income (Note 5) |
(1,764,093 | ) | |||||
Undistributed net investment income |
6,113,620 | ||||||
Undistributed net realized gain on investments |
8,155,651 | ||||||
Unrealized appreciation on investments |
290,983,179 | ||||||
Net Assets Applicable to Common Stock |
$ | 1,262,297,665 | |||||
Net Asset Value Per Share of Common Stock |
$14.49 |
* See Schedule of Investments on pages 9 and 10.
The accompanying notes are an integral part of the financial statements.
2
STATEMENT OF OPERATIONS
Three Months Ended March 31, 2008
(unaudited)
Investment Income |
||||
Income: |
||||
Dividends: |
||||
From unaffiliated issuers |
$ | 6,341,916 | ||
From non-controlled affiliate |
174,942 | |||
Interest and other income |
690,980 | |||
Total income |
7,207,838 | |||
Expenses: |
||||
Investment research |
577,484 | |||
Administration and operations |
328,154 | |||
Insurance |
99,492 | |||
Transfer agent, registrar and custodian expenses |
98,635 | |||
Directors fees |
89,523 | |||
Reports and stockholder communications |
70,448 | |||
Investment research services |
52,419 | |||
Occupancy and other office expenses |
45,701 | |||
Auditing and accounting services |
34,588 | |||
Travel, telephone and postage |
24,443 | |||
Legal services |
18,016 | |||
Other |
66,330 | |||
Total expenses |
1,505,233 | |||
Net Investment Income |
5,702,605 | |||
Other Comprehensive Income (Note 5) |
216,070 | |||
Realized Gain and Change in Unrealized Appreciation on Investments |
||||
Net realized gain on security transactions |
8,709,852 | |||
Net realized gain distributed by regulated investment company (non-controlled affiliate) |
109,339 | |||
Change in unrealized appreciation on investments |
(119,471,791 | ) | ||
Net Loss on Investments |
(110,652,600 | ) | ||
Change in Net Assets Resulting from Operations |
$ | (104,733,925 | ) |
The accompanying notes are an integral part of the financial statements.
3
STATEMENTS OF CHANGES IN NET ASSETS
Three Months Ended March 31, 2008 |
Year Ended December 31, 2007 |
|||||||
(unaudited) | ||||||||
From Operations: |
||||||||
Net investment income |
$ | 5,702,605 | $ | 25,884,799 | ||||
Net realized gain on investments |
8,819,191 | 60,426,376 | ||||||
Change in unrealized appreciation on investments |
(119,471,791 | ) | (8,301,286 | ) | ||||
Other comprehensive income (Note 5) |
216,070 | (156,058 | ) | |||||
Change in net assets resulting from operations |
(104,733,925 | ) | 77,853,831 | |||||
Distributions to Stockholders from: |
||||||||
Net investment income |
(2,622,695 | ) | (27,409,018 | ) | ||||
Net realized gain from investment transactions |
(1,749,608 | ) | (60,607,292 | ) | ||||
Decrease in net assets from distributions |
(4,372,303 | ) | (88,016,310 | ) | ||||
From Capital Share Transactions: |
||||||||
Value of shares issued in payment of distributions |
2,471 | 33,223,573 | ||||||
Cost of shares purchased (Note 4) |
(7,242,206 | ) | (22,516,525 | ) | ||||
Deferred compensation (Notes 4,6) |
164,101 | 516,648 | ||||||
Change in net assets from capital share transactions |
(7,075,634 | ) | 11,223,696 | |||||
Total Change in Net Assets |
(116,181,862 | ) | 1,061,217 | |||||
Net Assets: |
||||||||
Beginning of period |
1,378,479,527 | 1,377,418,310 | ||||||
End of period (including undistributed net investment |
$ | 1,262,297,665 | $ | 1,378,479,527 |
The accompanying notes are an integral part of the financial statements.
4
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. Significant Accounting Policies
The Adams Express Company (the Company) is registered under the Investment Company Act of 1940 as a diversified investment company. The Company is an internally-managed fund whose investment objectives are preservation of capital, the attainment of reasonable income from investments, and an opportunity for capital appreciation.
Affiliated Companies Investments in companies 5% or more of whose outstanding voting securities are held by the Company are defined as Affiliated Companies in Section 2(a)(3) of the Investment Company Act of 1940.
Security Transactions and Investment Income Investment transactions are accounted for on the trade date. Gain or loss on sales of securities and options is determined on the basis of identified cost. Dividend income and distributions to stockholders are recognized on the ex-dividend date, and interest income is recognized on the accrual basis.
Security Valuation Investments in securities traded on a national security exchange are valued at the last reported sale price on the day of valuation. Over-the-counter and listed securities for which a sale price is not available are valued at the last quoted bid price. Short-term investments (excluding purchased options) are valued at amortized cost which approximates fair value. Purchased and written options are valued at the last quoted asked price.
The Company adopted Financial Accounting Standard Board Statement of Financial Accounting Standards No. 157, Fair Value Measurements (FAS 157), effective January 1, 2008. There was no impact on the fair value of assets individually or in aggregate upon adoption. In accordance with FAS 157, fair value is defined as the price that the Company would receive upon selling an investment in an orderly transaction to an independent buyer. FAS 157 established a three-tier hierarchy to establish classification of fair value measurements, summarized as follows:
| Level 1 fair value is determined based on market data obtained from independent sources; for example, quoted prices in active markets for identical investments, |
| Level 2 fair value is determined using other assumptions obtained from independent sources; for example, quoted prices for similar investments, |
| Level 3 fair value is determined using the Companys own assumptions, developed based on the best information available in the circumstances. |
The Companys investments at March 31, 2008 as classified as follows:
Investment in securities |
Written options | ||||||
Level 1 |
$ | 1,198,647,519 | $545,700 | ||||
Level 2 |
117,069,646 | * | | ||||
Level 3 |
| | |||||
Total |
$ | 1,315,717,165 | $ | 545,700 |
* | Comprised of short-term investments and securities lending collateral. |
2. Federal Income Taxes
The Companys policy is to distribute all of its taxable income to its stockholders in compliance with the requirements of the Internal Revenue Code applicable to regulated investment companies. Therefore, no federal income tax provision is required. For federal income tax purposes, the identified cost of securities at March 31, 2008 was $1,024,375,466 and net unrealized appreciation aggregated $291,341,699, of which the related gross unrealized appreciation and depreciation were $409,885,717 and $118,544,018, respectively.
Distributions are determined in accordance with income tax regulations which may differ from generally accepted accounting principles. Accordingly, annual reclassifications are made within the Companys capital accounts to reflect income and gains available for distribution under income tax regulations. Any income tax-related interest or penalties would be classified as income tax expense.
3. Investment Transactions
The Companys investment decisions are made by a committee of management, and recommendations to that committee are made by the research staff.
Purchases and sales of portfolio securities, other than options and short-term investments, during the three months ended March 31, 2008 were $37,780,177 and $12,680,053, respectively. Options may be written (sold) or purchased by the Company. The Company, as writer of an option, bears the risks of possible illiquidity of the option markets and from movements in security values. The risk associated with purchasing an option is limited to the premium originally paid. A schedule of outstanding option contracts as of March 31, 2008 can be found on page 12.
Transactions in written covered call and collateralized put options during the three months ended March 31, 2008 were as follows:
Covered Calls | Collateralized Puts | |||||||||||||
Contracts | Premiums | Contracts | Premiums | |||||||||||
Options outstanding, |
1,757 | $ | 197,788 | 1,726 | $ | 194,530 | ||||||||
Options written |
3,600 | 427,488 | 2,150 | 268,867 | ||||||||||
Options terminated in closing purchase transactions |
| | | | ||||||||||
Options expired |
(1,957 | ) | (206,180 | ) | (1,150 | ) | (127,998 | ) | ||||||
Options exercised |
| | (726 | ) | (80,064 | ) | ||||||||
Options outstanding, |
3,400 | $ | 419,096 | 2,000 | $ | 255,335 |
4. Capital Stock
The Company has 10,000,000 authorized and unissued preferred shares, $0.001 par value.
On December 27, 2007, the Company issued 2,381,872 shares of its Common Stock at a price of $13.945 per share (the average market price on December 10, 2007) to stockholders of record on November 21, 2007 who elected to take stock in payment of the year-end distribution from 2007 capital gain and investment income. In addition, 597 shares were issued at a weighted average price of $14.00 per share as dividend equivalents to holders of deferred stock units and restricted stock units under the 2005 Equity Incentive Compensation Plan.
During 2008, the Company has issued 368 shares of its Common Stock at a weighted average price of $12.98 per share as dividend equivalents to holders of deferred stock units and restricted stock units under the 2005 Equity Incentive Compensation Plan.
The Company may purchase shares of its Common Stock from time to time at such prices and amounts as the Board of Directors may deem advisable.
5
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Transactions in Common Stock for 2008 and 2007 were as follows:
Shares | Amount | |||||||||||||
Three months ended March 31, 2008 |
Year ended December 31, 2007 |
Three months ended March 31, 2008 |
Year ended December 31, 2007 |
|||||||||||
Shares issued in payment of distributions |
368 | 2,382,469 | $ | 2,471 | $ | 33,223,573 | ||||||||
Shares purchased (at a weighted average discount from net asset value of 13.0% and 13.2%, respectively) |
(575,308 | ) | (1,585,773 | ) | (7,242,206 | ) | (22,516,525 | ) | ||||||
Net activity under the Equity-Based Compensation Plans |
39,275 | 33,928 | 164,101 | 516,648 | ||||||||||
Net change |
(535,665 | ) | 830,624 | $ | (7,075,634 | ) | $ | 11,223,696 |
5. Retirement Plans
The Companys non-contributory qualified defined benefit pension plan (qualified plan) covers all employees with at least one year of service. In addition, the Company has a non-contributory nonqualified defined benefit plan which provides eligible employees with retirement benefits to supplement the qualified plan. Benefits are based on length of service and compensation during the last five years of employment.
The funded status of the plans is recognized as an asset (overfunded plan) or a liability (underfunded plan) in the Statement of Assets and Liabilities. Changes in the prior service costs and accumulated actuarial gains and losses are recognized as accumulated other comprehensive income, a component of net assets, in the year in which the changes occur.
The Companys policy is to contribute annually to the plans those amounts that can be deducted for federal income tax purposes, plus additional amounts as the Company deems appropriate in order to provide assets sufficient to meet benefits to be paid to plan participants. During the three months ended March 31, 2008, the Company did not contribute to the plans. The Company does not anticipate making any contribution to the overfunded qualified plan in 2008.
The following table aggregates the components of the plans net periodic pension cost:
Three months ended March 31, 2008 |
Year ended December 31, 2007 |
|||||||
Service cost |
$ | 84,411 | $ | 487,315 | ||||
Interest cost |
112,280 | 568,495 | ||||||
Expected return on plan assets |
(172,935 | ) | (855,553 | ) | ||||
Amortization of prior service cost |
23,965 | 94,508 | ||||||
Amortization of net loss |
29,725 | 162,625 | ||||||
Net periodic pension cost |
$ | 77,446 | $ | 457,390 |
The Company also sponsors a defined contribution plan that covers substantially all employees. For the three months ended March 31, 2008, the Company expensed contributions of $42,103. The Company does not provide postretirement medical benefits.
6. Equity-Based Compensation
Although the Stock Option Plan of 1985 (1985 Plan) has been discontinued and no further grants will be made under this plan, unexercised grants of stock options and stock appreciation rights granted in 2004 and prior years remain outstanding. The exercise price of the unexercised options and related stock appreciation rights is the fair market value on date of grant, reduced by the per share amount of capital gains paid by the Company during subsequent years. All options and related stock appreciation rights terminate 10 years from date of grant, if not exercised.
A summary of option activity under the 1985 Plan as of March 31, 2008, and changes during the three month period then ended, is presented below:
Options | Weighted- Average Exercise Price |
Weighted- Average Remaining Life (Years) | ||||||
Outstanding at December 31, 2007 |
146,804 | $ | 11.63 | 3.47 | ||||
Exercised |
(9,246 | ) | $ | 8.63 | | |||
Outstanding at March 31, 2008 |
137,558 | $ | 11.82 | 3.41 | ||||
Exercisable at March 31, 2008 |
89,258 | $ | 11.59 | 3.18 |
The options outstanding as of March 31, 2008 are set forth below:
Exercise Price |
Options Outstanding |
Weighted Average Exercise Price |
Weighted Average Remaining Life (Years) | ||||
$7.00-$9.24 |
18,222 | $ | 7.67 | 4.75 | |||
$9.25-$11.49 |
68,188 | 10.12 | 3.86 | ||||
$11.50-$13.74 |
| | | ||||
$13.75-$16.00 |
51,148 | 15.56 | 2.34 | ||||
Outstanding at March 31, 2008 |
137,558 | $ | 11.82 | 3.41 |
Compensation cost resulting from stock options and stock appreciation rights granted under the 1985 Plan is based on the intrinsic value of the award, recognized over the awards vesting period, and remeasured at each reporting date through the date of settlement. The total compensation cost/(credit) recognized for the three months ended March 31, 2008 was $(111,960).
The 2005 Equity Incentive Compensation Plan (2005 Plan), adopted at the 2005 Annual Meeting, permits the grant of stock options, restricted stock awards and other stock incentives to key employees and all non-employee directors. The 2005 Plan provides for the issuance of up to 3,413,131 shares of the Companys Common Stock, including both performance and nonperformance-based restricted stock. Performance-based restricted stock awards vest at the end of a specified three year period, with the ultimate number of shares earned contingent on achievement of certain performance targets. If performance targets are not achieved, all or a portion of the performance-based awards are forfeited and become available for future grants. Nonperformance-based restricted stock awards vest ratably over a three year period and nonperformance-based restricted stock units (granted to non-employee directors) vest over a one year period. It is the current intention that employee grants will be performance-based. The 2005 Plan provides for accelerated vesting in the event of death or retirement. Non-
6
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
employee directors also may elect to defer a portion of their cash compensation, with such deferred amount to be paid by delivery of deferred stock units. Outstanding awards are granted at fair market value on grant date. The number of shares of Common Stock which remains available for future grants under the 2005 Plan at March 31, 2008 is 3,259,202 shares.
A summary of the status of the Companys awards granted under the 2005 Plan as of March 31, 2008, and changes during the three month period then ended, is presented below:
Awards |
Shares/ Units |
Weighted Average Grant-Date Fair Value | ||||
Balance at December 31, 2007 |
87,471 | $ | 13.29 | |||
Granted: |
||||||
Restricted stock |
31,306 | 13.18 | ||||
Restricted stock units |
7,500 | 12.49 | ||||
Deferred stock units |
492 | 13.79 | ||||
Vested |
(6,000 | ) | 14.07 | |||
Forfeited |
| | ||||
Balance at March 31, 2008 (includes 4,116 performance-based awards and 116,653 nonperformance-based awards) |
120,769 | $ | 13.02 |
Compensation costs resulting from awards granted under the 2005 Plan are based on the fair value of the award on grant date (determined by the average of the high and low price on grant date) and recognized on a straight-line basis over the requisite service period. For those awards with performance conditions, compensation costs are based on the most probable outcome and, if such goals are not met, compensation cost is not recognized and any previously recognized compensation cost is reversed. The total compensation costs for restricted stock granted to employees for the period ending March 31, 2008 were $126,799. The total compensation costs for restricted stock units granted to non- employee directors for the period ended March 31, 2008 were $30,556. As of March 31, 2008, there were total unrecognized compensation costs of $834,850, a component of additional capital surplus, related to nonvested equity-based compensation arrangements granted under the 2005 Plan. Those costs are expected to be recognized over a weighted average period of 2.03 years. The total fair value of shares vested during the period ended March 31, 2008 was $75,900.
7. Officer and Director Compensation
The aggregate remuneration paid during the three months ended March 31, 2008 to officers and directors amounted to $1,204,917, of which $105,281 was paid as fees and compensation to directors who were not officers. These amounts represent the taxable income to the Companys officers and directors and therefore differ from the amounts reported in the accompanying Statement of Operations that are recorded and expensed in accordance with generally accepted accounting principles.
8. Portfolio Securities Loaned
The Company makes loans of securities to brokers, secured by cash deposits, U.S. Government securities, or bank letters of credit. The Company accounts for securities lending transactions as secured financing and receives compensation in the form of fees or retains a portion of interest on the investment of any cash received as collateral. The Company also continues to receive interest or dividends on the securities loaned. The loans are secured at all times by collateral of at least 102% of the fair value of the securities loaned plus accrued interest. Gain or loss in the fair value of the securities loaned that may occur during the term of the loan will be for the account of the Company. At March 31, 2008, the Company had securities on loan of $54,040,100 and held collateral of $55,479,892, consisting of an investment trust fund which may invest in money market instruments, commercial paper, repurchase agreements, U.S. Treasury Bills, and U.S. agency obligations.
This report, including the financial statements herein, is transmitted to the stockholders of The Adams Express Company for their information. It is not a
prospectus, circular or representation intended for use in the purchase or sale of shares of the Company or of any securities mentioned in the report. The rates of return will vary and the principal value of an investment will fluctuate. Shares,
if sold, may be worth more or less than their original cost. Past performance is not indicative of future
investment results.
7
FINANCIAL HIGHLIGHTS
Three Months Ended | |||||||||||||||||
(unaudited) | Year Ended December 31 | ||||||||||||||||
March 31, 2008 |
March 31, 2007 |
2007 | 2006 | 2005 | 2004 | 2003 | |||||||||||
Per Share Operating Performance |
|||||||||||||||||
Net asset value, beginning of period |
$15.72 | $15.86 | $15.86 | $14.71 | $15.04 | $14.36 | $12.12 | ||||||||||
Net investment income |
0.07 | 0.07 | 0.30* | 0.23 | 0.22 | 0.23** | 0.19 | ||||||||||
Net realized gains and increase (decrease) in unrealized appreciation |
(1.26) | 0.20 | 0.61 | 1.86 | 0.32 | 1.39 | 2.85 | ||||||||||
Change in accumulated other comprehensive income (note 5) |
0.00 | 0.00 | 0.00 | (0.02) | | | | ||||||||||
Total from investment operations |
(1.19) | 0.27 | 0.91 | 2.07 | 0.54 | 1.62 | 3.04 | ||||||||||
Less distributions |
|||||||||||||||||
Dividends from net investment |
(0.03) | (0.04) | (0.32) | (0.23) | (0.22) | (0.24) | (0.17) | ||||||||||
Distributions from net realized |
(0.02) | (0.01) | (0.71) | (0.67) | (0.64) | (0.66) | (0.61) | ||||||||||
Total distributions |
(0.05) | (0.05) | (1.03) | (0.90) | (0.86) | (0.90) | (0.78) | ||||||||||
Capital share repurchases |
0.01 | 0.02 | 0.04 | 0.04 | 0.05 | 0.02 | 0.04 | ||||||||||
Reinvestment of distributions |
| | (0.06) | (0.06) | (0.06) | (0.06) | (0.06) | ||||||||||
Total capital share transactions |
0.01 | 0.02 | 0.02 | (0.02) | (0.01) | (0.04) | (0.02) | ||||||||||
Net asset value, end of period |
$14.49 | $16.10 | $15.72 | $15.86 | $14.71 | $15.04 | $14.36 | ||||||||||
Per share market price, end |
$12.51 | $14.02 | $14.12 | $13.87 | $12.55 | $13.12 | $12.41 | ||||||||||
Total Investment Return |
|||||||||||||||||
Based on market price |
(11.1)% | 1.5% | 9.4% | 17.9% | 2.2% | 13.2% | 25.2% | ||||||||||
Based on net asset value |
(7.5)% | 1.9% | 6.5% | 15.0% | 4.5% | 12.1% | 26.3% | ||||||||||
Ratios/Supplemental Data |
|||||||||||||||||
Net assets, end of period |
$1,262,298 | $1,386,292 | $1,378,480 | $1,377,418 | $1,266,729 | $1,295,549 | $1,218,862 | ||||||||||
Ratio of expenses to average |
0.46% | | 0.49% | | 0.44% | 0.50% | 0.45% | 0.43% | 0.47% | ||||||||
Ratio of net investment income |
1.75% | | 1.64% | | 1.82% | 1.50% | 1.44% | 1.54% | 1.45% | ||||||||
Portfolio turnover |
4.14% | | 10.04% | | 10.46% | 10.87% | 12.96% | 13.43% | 12.74% | ||||||||
Number of shares outstanding at |
87,133 | 86,079 | 87,669 | 86,838 | 86,100 | 86,135 | 84,886 |
* | In 2007 the Company received $5,100,000, or $0.06 per share, in a special cash dividend from Dean Foods Co., of which $2,295,000, or $0.03 per share, was considered a taxable dividend. |
** | In 2004 the Company received $2,400,000, or $0.03 per share, in an extraordinary dividend from Microsoft Corp. |
| Ratios presented on an annualized basis. |
8
SCHEDULE OF INVESTMENTS
March 31, 2008
(unaudited)
Shares | Value (A) | ||||
Stocks and Convertible Securities 94.9% |
|||||
Consumer 18.0% |
|||||
Consumer Discretionary 5.3% |
|||||
Comcast Corp. |
525,000 | $ | 10,153,500 | ||
Gannett Co., Inc. (B) |
112,500 | 3,268,125 | |||
Harley-Davidson, Inc. |
130,000 | 4,875,000 | |||
Lowes Companies, Inc. |
600,000 | 13,764,000 | |||
Newell Rubbermaid Inc. |
400,000 | 9,148,000 | |||
Ryland Group Inc. (B) |
343,500 | 11,297,715 | |||
Target Corp. |
290,000 | 14,697,200 | |||
67,203,540 | |||||
Consumer Staples 12.7% |
|||||
Avon Products, Inc. |
402,400 | 15,910,896 | |||
BJs Wholesale Club, Inc. (C) |
400,000 | 14,276,000 | |||
Bunge Ltd. |
100,000 | 8,688,000 | |||
Coca-Cola Co. |
200,000 | 12,174,000 | |||
CVS/Caremark Corp. |
250,000 | 10,127,500 | |||
Dean Foods Co. |
340,000 | 6,830,600 | |||
Del Monte Foods Co. |
1,300,000 | 12,389,000 | |||
PepsiCo, Inc. |
360,000 | 25,992,000 | |||
Procter & Gamble Co. |
340,000 | 23,823,800 | |||
Safeway Inc. |
390,000 | 11,446,500 | |||
Unilever plc ADR |
550,000 | 18,546,000 | |||
160,204,296 | |||||
Energy 14.3% |
|||||
ConocoPhillips |
295,000 | 22,481,950 | |||
ENSCO International, Inc. |
209,150 | 13,096,973 | |||
Exxon Mobil Corp. |
215,000 | 18,184,700 | |||
Marathon Oil Co. |
240,000 | 10,944,000 | |||
Petroleum & Resources |
2,186,774 | 79,664,177 | |||
Schlumberger Ltd. |
380,000 | 33,060,000 | |||
Transocean Inc. (C) |
20,000 | 2,704,000 | |||
180,135,800 | |||||
Financials 14.4% |
|||||
Banking 11.7% |
|||||
Bank of America Corp. |
730,000 | 27,674,300 | |||
Bank of New York Mellon Corp. |
403,775 | 16,849,531 | |||
Fifth Third Bancorp |
280,000 | 5,857,600 | |||
Morgan Stanley |
200,000 | 9,140,000 | |||
PNC Financial Services Group, Inc. (The) |
200,000 | 13,114,000 | |||
Prosperity Bancshares, Inc. |
250,000 | 7,165,000 | |||
State Street Corp. |
260,000 | 20,540,000 | |||
Visa Inc. (C) |
20,000 | 1,247,200 | |||
Wachovia Corp. (B) |
570,000 | 15,390,000 | |||
Wells Fargo & Co. |
665,000 | 19,351,500 | |||
Wilmington Trust Corp. |
363,000 | 11,289,300 | |||
147,618,431 | |||||
Shares | Value (A) | ||||
Insurance 2.7% |
|||||
American International Group, Inc. |
500,000 | $ | 21,625,000 | ||
Prudential Financial, Inc. |
170,000 | 13,302,500 | |||
34,927,500 | |||||
Health Care 11.5% |
|||||
Abbott Laboratories |
320,000 | 17,648,000 | |||
Bristol-Myers Squibb Co. |
345,000 | 7,348,500 | |||
Genentech, Inc. (C) |
220,000 | 17,859,600 | |||
Johnson & Johnson |
255,000 | 16,541,850 | |||
Medtronic, Inc. |
310,000 | 14,994,700 | |||
Pfizer Inc. |
1,120,000 | 23,441,600 | |||
Senomyx, Inc. (B)(C) |
984,400 | 5,807,960 | |||
Teva Pharmaceutical Industries Ltd. ADR |
370,000 | 17,090,300 | |||
Wyeth Co. |
325,000 | 13,572,000 | |||
Zimmer Holdings, Inc. (C) |
140,000 | 10,900,400 | |||
145,204,910 | |||||
Industrials 15.4% |
|||||
Cintas Corp. |
300,000 | 8,562,000 | |||
Curtiss-Wright Corp. |
360,000 | 14,932,800 | |||
Emerson Electric Co. |
400,000 | 20,584,000 | |||
General Electric Co. |
1,388,000 | 51,369,880 | |||
Illinois Tool Works Inc. |
250,000 | 12,057,500 | |||
Masco Corp. (B) |
450,000 | 8,923,500 | |||
Oshkosh Corp. (B) |
295,000 | 10,702,600 | |||
3M Co. |
160,000 | 12,664,000 | |||
Spirit AeroSystems Holdings, Inc. (C) |
525,000 | 11,644,500 | |||
Tata Motors Ltd. ADR |
750,000 | 11,715,000 | |||
United Parcel Service, Inc. |
155,000 | 11,318,100 | |||
United Technologies Corp. |
300,000 | 20,646,000 | |||
195,119,880 | |||||
Information Technology 10.6% |
|||||
Communication Equipment 1.0% |
|||||
Corning Inc. |
500,000 | 12,020,000 | |||
Computer Related 7.9% |
|||||
Automatic Data Processing Inc. |
300,000 | 12,717,000 | |||
Cisco Systems, Inc. (C) |
850,000 | 20,476,500 | |||
Dell Inc. (C) |
585,000 | 11,653,200 | |||
Microsoft Corp. |
1,180,000 | 33,488,400 | |||
Oracle Corp. (C) |
1,100,000 | 21,516,000 | |||
99,851,100 | |||||
Electronics 1.7% |
|||||
Broadcom Corp. (C) |
400,000 | 7,708,000 | |||
Intel Corp. |
640,000 | 13,555,200 | |||
21,263,200 | |||||
9
SCHEDULE OF INVESTMENTS (CONTINUED)
March 31, 2008
(unaudited)
Shares/ Prin. Amt |
Value (A) | |||||
Materials 5.3% |
||||||
Air Products and Chemicals, Inc. |
230,000 | $ | 21,160,000 | |||
du Pont (E.I.) de Nemours and Co. |
360,000 | 16,833,600 | ||||
Lubrizol Corp |
220,000 | 12,212,200 | ||||
Rohm & Haas Co. |
300,000 | 16,224,000 | ||||
66,429,800 | ||||||
Telecom Services 1.5% |
||||||
AT&T Corp. |
400,000 | 15,320,000 | ||||
Windstream Corp. |
310,178 | 3,706,627 | ||||
19,026,627 | ||||||
Utilities 3.9% |
||||||
Aqua America, Inc. (B) |
499,000 | 9,371,220 | ||||
Duke Energy Corp. |
611,560 | 10,916,346 | ||||
MDU Resources Group, Inc. |
562,500 | 13,809,375 | ||||
Northeast Utilities |
350,000 | 8,589,000 | ||||
Spectra Energy Corp. |
305,780 | 6,956,494 | ||||
49,642,435 | ||||||
Total Stocks and Convertible Securities |
1,198,647,519 | |||||
Short-Term Investments 4.9% |
||||||
U.S. Government Obligations 1.6% |
||||||
U.S. Treasury Bills, 2.18%, due 5/15/08 |
$ | 20,000,000 | 19,946,711 | |||
Time Deposit 0.0% |
||||||
Wachovia Bank, |
565,897 | |||||
Commercial Paper 3.3% |
||||||
AIG Funding, Inc., |
$3,600,000 | 3,594,015 |
Prin. Amt. | Value (A) | ||||||
Chevron Funding Corp., |
$ | 7,500,000 | $ | 7,499,063 | |||
General Electric Capital Corp., |
15,000,000 | 14,992,604 | |||||
Toyota Motor Credit Corp., 1.84-2.44%, |
15,000,000 | 14,991,464 | |||||
41,077,146 | |||||||
Total Short-Term Investments |
61,589,754 | ||||||
Total Securities Lending Collateral 4.4% |
|||||||
Brown Brothers Investment |
55,479,892 | ||||||
Total Investments 104.2% |
1,315,717,165 | ||||||
Cash, receivables, prepaid pension cost, prepaid expenses and other assets, less liabilities (4.2)% |
(53,419,500 | ) | |||||
Net Assets 100% |
$ | 1,262,297,665 | |||||
Notes:
(A) | See note 1 to financial statements. Securities are listed on the New York Stock Exchange, the American Stock Exchange or the NASDAQ. |
(B) | Some of the shares of this company are on loan. See note 8 to financial statements. |
(C) | Presently non-dividend paying. |
(D) | Non-controlled affiliate, a closed-end sector fund, registered as an investment company under the Investment Company Act of 1940. |
(E) | The aggregate market value of stocks held in escrow at March 31, 2008 covering open call option contracts written was $17,931,100. In addition, the aggregate market value of securities segregated by the Companys custodian required to collateralize open put option contracts written was $13,112,500. |
10
PORTFOLIO SUMMARY
March 31, 2008
(unaudited)
Ten Largest Portfolio Holdings
Market Value | % of Net Assets | |||||
Petroleum & Resources Corporation* |
$ | 79,664,177 | 6.3 | |||
General Electric Co. |
51,369,880 | 4.1 | ||||
Microsoft Corp. |
33,488,400 | 2.6 | ||||
Schlumberger Ltd. |
33,060,000 | 2.6 | ||||
Bank of America Corp. |
27,674,300 | 2.2 | ||||
PepsiCo, Inc. |
25,992,000 | 2.0 | ||||
Procter & Gamble Co. |
23,823,800 | 1.9 | ||||
Pfizer Inc. |
23,441,600 | 1.9 | ||||
ConocoPhillips |
22,481,950 | 1.8 | ||||
American International Group, Inc. |
21,625,000 | 1.7 | ||||
Total |
$ | 342,621,107 | 27.1 | % |
*Non-controlled affiliate
Sector Weightings
11
SCHEDULE OF OUTSTANDING OPTION CONTRACTS
March 31, 2008
(unaudited)
Contracts (100 shares each) |
Security | Strike Price |
Contract Expiration Date |
Appreciation/ (Depreciation) |
||||||||
COVERED CALLS | ||||||||||||
200 | Air Products and Chemicals, Inc. |
$ 115 | Sep | 08 | $ | (3,600 | ) | |||||
200 | American International Group, Inc. |
60 | Aug | 08 | 13,499 | |||||||
150 | Avon Products, Inc. |
45 | Jul | 08 | 3,675 | |||||||
250 | BJs Wholesale Club, Inc. |
40 | Jun | 08 | (4,410 | ) | ||||||
200 | BJs Wholesale Club, Inc. |
45 | Sep | 08 | (1,700 | ) | ||||||
100 | ENSCO International, Inc. |
65 | Apr | 08 | (5,290 | ) | ||||||
100 | Genentech, Inc. |
100 | Sep | 08 | 1,200 | |||||||
100 | Marathon Oil Co. |
55 | Apr | 08 | 19,780 | |||||||
100 | Marathon Oil Co. |
60 | Apr | 08 | 9,200 | |||||||
250 | PepsiCo, Inc. |
75 | Jul | 08 | (17,625 | ) | ||||||
200 | Rohm & Haas Co. |
55 | Apr | 08 | (3,600 | ) | ||||||
200 | Rohm & Haas Co. |
60 | Apr | 08 | 24,399 | |||||||
250 | Ryland Group Inc. |
50 | Jul | 08 | 8,220 | |||||||
200 | Ryland Group Inc. |
50 | Oct | 08 | (3,600 | ) | ||||||
100 | State Street Corp. |
90 | Apr | 08 | 5,700 | |||||||
100 | State Street Corp. |
95 | Apr | 08 | 11,450 | |||||||
150 | State Street Corp. |
105 | Aug | 08 | (2,700 | ) | ||||||
200 | Target Corp. |
65 | Jul | 08 | 12,199 | |||||||
200 | Target Corp. |
67.50 | Jul | 08 | 11,200 | |||||||
150 | Wells Fargo & Co. |
35 | Apr | 08 | 13,049 | |||||||
3,400 | 91,046 | |||||||||||
COLLATERALIZED PUTS | ||||||||||||
50 | Bunge Ltd. |
75 | Apr | 08 | (1,900 | ) | ||||||
100 | Bunge Ltd. |
80 | Apr | 08 | (12,800 | ) | ||||||
100 | Bunge Ltd. |
65 | May | 08 | (6,300 | ) | ||||||
100 | Oshkosh Corp. |
35 | Apr | 08 | 2,344 | |||||||
100 | Oshkosh Corp. |
40 | Apr | 08 | (21,300 | ) | ||||||
150 | Procter & Gamble Co. |
57.50 | Jul | 08 | 8,550 | |||||||
100 | Prudential Financial, Inc. |
60 | Apr | 08 | 7,700 | |||||||
100 | Prudential Financial, Inc. |
65 | Apr | 08 | 7,700 | |||||||
250 | Prudential Financial, Inc. |
55 | Jun | 08 | 5,499 | |||||||
250 | Spirit AeroSystems Holdings, Inc. |
20 | Jul | 08 | (3,250 | ) | ||||||
200 | Target Corp. |
40 | Apr | 08 | 14,374 | |||||||
100 | Transocean Inc. |
115 | Apr | 08 | 8,269 | |||||||
200 | Transocean Inc. |
120 | Apr | 08 | 19,399 | |||||||
100 | Transocean Inc. |
105 | May | 08 | 6,700 | |||||||
100 | Transocean Inc. |
115 | May | 08 | 2,700 | |||||||
2,000 | 37,685 | |||||||||||
$ | 128,731 | |||||||||||
Common Stock
Listed on the New York Stock Exchange
The Adams Express Company
Seven St. Paul Street, Suite 1140, Baltimore, MD 21202
(410) 752-5900 or (800) 638-2479
Website: www.adamsexpress.com
E-mail: contact@adamsexpress.com
Counsel: Chadbourne & Parke L.L.P.
Independent Registered Public Accounting Firm: PricewaterhouseCoopers LLP
Transfer Agent & Registrar: American Stock Transfer & Trust Co.
Custodian of Securities: Brown Brothers Harriman & Co.
12
CHANGES IN PORTFOLIO SECURITIES
During the Three Months Ended March 31, 2008
(unaudited)
Shares | ||||||
Additions | Reductions | Held March 31, 2008 | ||||
CVS/Caremark Corp. |
41,250 | 250,000 | ||||
Morgan Stanley |
10,000 | 200,000 | ||||
Northeast Utilities |
151,000 | 350,000 | ||||
Oshkosh Corp. |
15,000 | 295,000 | ||||
Prosperity Bancshares, Inc. |
50,000 | 250,000 | ||||
Prudential Financial Inc. |
170,000 | 170,000 | ||||
Spirit AeroSystems Holdings, Inc. |
100,000 | 525,000 | ||||
Tata Motors Ltd. ADR |
465,000 | 750,000 | ||||
Transocean Inc. |
20,000 | 20,000 | ||||
Visa Inc. |
20,000 | 20,000 | ||||
Wachovia Corp. |
25,000 | 570,000 | ||||
Wells Fargo & Co. |
15,000 | 665,000 | ||||
Zimmer Holdings, Inc. |
7,600 | 140,000 | ||||
PepsiCo, Inc. |
40,000 | 360,000 | ||||
Rohm & Haas Co. |
90,000 | 300,000 | ||||
State Street Corp. |
63,895 | 260,000 |
HISTORICAL FINANCIAL STATISTICS
(unaudited)
Dec. 31 |
Value Of |
Shares Outstanding* |
Net Asset Value Per Share* |
Market Value Per Share* |
Dividends From Investment Income Per Share* |
Distributions From Net Realized Gains Per Share* |
Total Dividends and Distributions Per Share* |
Annual Rate of Distribution** |
|||||||||||||||||||
1998 |
$ | 1,688,080,336 | $ | 77,814,977 | $ | 21.69 | $ | 17.75 | $ | .30 | $ | 1.10 | $ | 1.40 | 8.17 | % | |||||||||||
1999 |
2,170,801,875 | 80,842,241 | 26.85 | 22.38 | .26 | 1.37 | 1.63 | 8.53 | |||||||||||||||||||
2000 |
1,951,562,978 | 82,292,262 | 23.72 | 21.00 | .22 | 1.63 | 1.85 | 7.76 | |||||||||||||||||||
2001 |
1,368,366,316 | 85,233,262 | 16.05 | 14.22 | .26 | 1.39 | 1.65 | 9.44 | |||||||||||||||||||
2002 |
1,024,810,092 | 84,536,250 | 12.12 | 10.57 | .19 | .57 | .76 | 6.14 | |||||||||||||||||||
2003 |
1,218,862,456 | 84,886,412 | 14.36 | 12.41 | .17 | .61 | .78 | 6.80 | |||||||||||||||||||
2004 |
1,295,548,900 | 86,135,292 | 15.04 | 13.12 | .24 | .66 | .90 | 7.05 | |||||||||||||||||||
2005 |
1,266,728,652 | 86,099,607 | 14.71 | 12.55 | .22 | .64 | .86 | 6.65 | |||||||||||||||||||
2006 |
1,377,418,310 | 86,838,223 | 15.86 | 13.87 | .23 | .67 | .90 | 6.80 | |||||||||||||||||||
2007 |
1,378,479,527 | 87,668,847 | 15.72 | 14.12 | .32 | .71 | 1.03 | 7.15 | |||||||||||||||||||
March 31, 2008 |
1,262,297,665 | 87,133,182 | 14.49 | 12.51 | .08 | | .02 | | .10 | | |
* | Adjusted to reflect the 3-for-2 stock split effected in October 2000. |
** | The annual rate of distribution is the total dividends and capital gain distributions during the year divided by the average daily market price of the Companys Common Stock. |
| Paid or declared. |
13
ANNUAL MEETING OF STOCKHOLDERS
The Annual Meeting of Stockholders was held on March 13, 2008. The following votes were cast for directors:
votes for | votes withheld | |||
Enrique R. Arzac: |
69,994,781 | 3,504,910 | ||
Phyllis O. Bonanno: |
70,891,835 | 2,607,856 | ||
Kenneth J. Dale: |
70,777,371 | 2,722,320 | ||
Daniel E. Emerson: |
69,604,018 | 3,895,673 | ||
Frederic A. Escherich: |
71,002,571 | 2,497,120 | ||
Roger W. Gale: |
70,952,935 | 2,546,756 | ||
Thomas H. Lenagh: |
69,517,337 | 3,982,353 | ||
Kathleen T. McGahran: |
70,970,650 | 2,529,040 | ||
Douglas G. Ober: |
70,013,482 | 3,486,208 | ||
Craig R. Smith: |
70,946,912 | 2,552,779 |
A proposal to approve and ratify the selection of PricewaterhouseCoopers LLP as the independent registered public accounting firm for the Company for 2008 was approved with 71,380,166 votes for, 1,619,817 votes against, and 499,327 shares abstaining.
OTHER INFORMATION
Statement on Quarterly Filing of Complete Portfolio Schedule
In addition to publishing its complete schedule of portfolio holdings in the First and Third Quarter Reports to stockholders, the Company files its complete schedule of portfolio holdings with the Securities and Exchange Commission for the first and third quarters of each fiscal year on Form N-Q. The Companys Forms N-Q are available on the Commissions website at www.sec.gov. The Companys Forms N-Q may be reviewed and copied at the Commissions Public Reference Room, and information on the operation of the Public Reference Room may be obtained by calling (800) SEC-0330. The Company also posts its Forms N-Q on its website at www.adamsexpress.com under the heading Financial Reports.
Proxy Voting Policies and Record
A description of the policies and procedures that the Company uses to determine how to vote proxies relating to portfolio securities owned by the Company and information as to how the Company voted proxies relating to portfolio securities during the 12 month period ended June 30, 2007 are available (i) without charge, upon request, by calling the Companys toll free number at (800) 638-2479; (ii) on the Companys website by clicking on Corporate Information heading on the website; and (iii) on the Securities and Exchange Commissions website at http//www.sec.gov.
Privacy Policy
In order to conduct its business, The Adams Express Company, through its transfer agent, currently American Stock Transfer & Trust Company, collects and maintains certain nonpublic personal information about our stockholders of record with respect to their transactions in shares of our securities. This information includes the stockholders address, tax identification or Social Security number, share balances, and dividend elections. We do not collect or maintain personal information about stockholders whose shares of our securities are held in street name by a financial institution such as a bank or broker.
We do not disclose any nonpublic personal information about you, our other stockholders or our former stockholders to third parties unless necessary to process a transaction, service an account or as otherwise permitted by law.
To protect your personal information internally, we restrict access to nonpublic personal information about our stockholders to those employees who need to know that information to provide services to our stockholders. We also maintain certain other safeguards to protect your nonpublic personal information.
14
STOCKHOLDER INFORMATION AND SERVICES
DIVIDEND PAYMENT SCHEDULE
The Company presently pays dividends four times a year, as follows: (a) three interim distributions on or about March 1, June 1, and September 1, and (b) a year-end distribution, payable in late December, consisting of the estimated balance of the net investment income for the year and the net realized capital gain earned through October 31. Stockholders may elect to receive the year-end distribution in stock or cash. In connection with this distribution, all stockholders of record are sent a dividend announcement notice and an election card in mid-November.
Stockholders holding shares in street or brokerage accounts may make their election by notifying their brokerage house representative.
INVESTORS CHOICE
INVESTORS CHOICE is a direct stock purchase and sale plan, as well as a dividend reinvestment plan, sponsored and administered by our transfer agent, American Stock Transfer & Trust Company (AST). The Plan provides registered stockholders and interested first time investors an affordable alternative for buying, selling, and reinvesting in Adams Express shares.
The costs to participants in administrative service fees and brokerage commissions for each type of transaction are listed below.
Initial Enrollment and Optional Cash Investments |
||
Service Fee |
$2.50 per investment | |
Brokerage Commission |
$0.05 per share | |
Reinvestment of Dividends* |
||
Service Fee |
2% of amount invested | |
(maximum of $2.50 per investment) | ||
Brokerage Commission |
$0.05 per share | |
Sale of Shares |
||
Service Fee |
$10.00 | |
Brokerage Commission |
$0.05 per share | |
Deposit of Certificates for safekeeping $7.50 | ||
Book to Book Transfers |
Included |
To transfer shares to another participant or to a new participant
Fees are subject to change at any time.
Minimum and Maximum Cash Investments
Initial minimum investment (non-holders) |
$500.00 | |
Minimum optional investment (existing holders) |
$50.00 | |
Electronic Funds Transfer |
$50.00 | |
Maximum per transaction |
$25,000.00 | |
Maximum per year |
NONE |
A brochure which further details the benefits and features of INVESTORS CHOICE as well as an enrollment form may be obtained by contacting AST.
For Non-Registered Stockholders
For stockholders whose stock is held by a broker in street name, the AST INVESTORS CHOICE Direct Stock Purchase and Sale Plan remains available through many registered investment security dealers. If your shares are currently held in a street name or brokerage account, please contact your broker for details about how you can participate in ASTs Plan or contact AST.
The Company
The Adams Express Company
Lawrence L. Hooper, Jr.
Vice President, General Counsel and Secretary
Seven St. Paul Street, Suite 1140, Baltimore, MD 21202
(800) 638-2479
Website: www.adamsexpress.com
E-mail: contact@adamsexpress.com
The Transfer Agent
American Stock Transfer & Trust Company
Address Stockholder Inquiries to:
Stockholder Relations Department
59 Maiden Lane
New York, NY 10038
(877) 260-8188
Website: www.amstock.com
E-mail: info@amstock.com
Investors Choice Mailing Address:
Attention: Dividend Reinvestment
P.O. Box 922
Wall Street Station
New York, NY 10269-0560
Website: www.amstock.com
E-mail: info@amstock.com
*The year-end dividend and capital gain distribution will usually be made in newly issued shares of common stock. There are no fees or commissions in connection with this dividend and capital gain distribution when made in newly issued shares.
15