Adams Express Company(R)
Annual Report
2000
building for the future
with solid investments(R)
2000 at a Glance
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The Company
. a closed-end equity investment company
. objectives: preservation of capital
reasonable income
opportunity for capital gain
. internally-managed
. low expense ratio
. low turnover
Stock Data
NYSE Symbol.................................................... ADX
Market Price as of 12/31/00.................................... $ 21.00
Discount....................................................... 11.5%
52-Week Range.................................................. $ 27.04-$20.25*
Shares Outstanding............................................. 82,292,262
Summary Financial Information
Year Ended December 31
2000 1999
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Net asset value per share $ 23.72 $ 26.85*
Total net assets 1,951,562,978 2,170,801,875
Unrealized appreciation 1,047,469,344 1,298,662,686
Net investment income 20,941,465 19,143,783
Total realized gain 128,091,337 106,820,166
Total return (based on market value) 1.7% 36.1%
Total return (based on net asset value) (4.3%) 33.6%
Expense ratio 0.24% 0.32%
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2000 Dividends and Distributions
Amount
Paid (per share)* Type
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March 1, 2000 $0.05 Long-term capital gain
March 1, 2000 0.03 Investment income
June 1, 2000 0.08 Investment income
September 1, 2000 0.08 Investment income
December 27, 2000 1.58 Long-term capital gain
December 27, 2000 0.03 Investment income
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$1.85
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*Adjusted to reflect the 3-for-2 stock split effected in October, 2000.
2001 Annual Meeting of Stockholders
Location: The Radisson Hotel at Cross Keys, Baltimore, Maryland
Date: March 27, 2001
Time: 11:00 a.m.
Holders of Record: February 16, 2001
Portfolio Review
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Ten Largest Portfolio Holdings (12/31/00)
Market Value % of Net Assets
------------ ---------------
General Electric Co. $ 88,924,063 4.6
Nokia Corp. ADR 80,040,000 4.1
American International Group, Inc. 74,845,900 3.8
Cisco Systems, Inc. 70,188,750 3.6
Solectron Corp. 67,800,000 3.5
Corning Inc. 61,790,625 3.2
Investor Financial Services Corp. 56,760,000 2.9
Petroleum & Resources Corporation* 52,269,584 2.7
Nortel Networks Corp. 47,773,125 2.4
Enron Corp. 41,562,500 2.1
------------ ----
Total $641,954,547 32.9%
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*Non-controlled affiliate
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Sector Weightings (12/31/00)
Basic Materials 1.8%
Capital Goods 9.1%
Communication Services 10.8%
Consumer 5.0%
Energy 9.4%
Financial 17.7%
Health Care 12.2%
Technology 26.6%
Transportation 0.7%
Utilities 4.5%
Cash & Equivalent 2.4%
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1
Letter to Stockholders
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In this annual report, you will find our financial statements for the year 2000,
the report of independent accountants, our year-end portfolio holdings, and
summary financial information for the Company.
The Year in Review
Once investors concluded that the "Y2K Bug" had not wreaked havoc with the
economy, the markets moved up at an accelerated pace from that of 1999. The
principal drivers remained the technology and telecommunications stocks traded
on the NASDAQ, as "Old Economy" stocks and the Dow Jones Industrial Average
declined. In mid-March, with the NASDAQ Composite Index at an all-time high and
the Dow below 10,000, investors began to question the valuations of many of the
so-called dot.com stocks and others carried along by Internet hype. With minimal
revenues and no earnings expected for years, the companies were ripe for
revaluation and the market did so with a vengeance. By the end of March, the
NASDAQ was off nearly 10% from its high of fourteen days earlier. The Dow, on
the other hand, rose 11.5% from its March low and the Standard & Poor's 500
Stock Index was up over 12% from its late-February low.
Despite the report of the first quarter's economic growth statistics and
prospects for even higher growth in the second quarter, investor pessimism grew.
The efforts of the Federal Reserve Bank to slow down the engine through a series
of interest rate increases were apparently not having any success and a brief
March rally was followed by deterioration in all segments of the market. The Fed
acted again at the end of May, a full year after the first move, with a fifty
basis point increase in the Federal Funds rate. Although there was exceptional
economic growth in the second quarter, leading indicators signaled slower growth
ahead and the stock market began a fairly broad-based recovery which was to last
through August. The principal exceptions were those stocks directly associated
with the Internet, in which investors had seemingly lost all interest.
In early September, a number of companies announced that sales in the prior two
months had been quite sluggish and Wall Street earnings expectations for the
quarter were too high. Notable among these were personal computer manufacturers
and their suppliers, including Intel and Microsoft. The fact that the sales and
earnings of these technology stalwarts were being impacted by the economic cycle
was not easily accepted by investors. Once again, revaluation was the order of
the day and there was no discrimination between companies with long-term
histories and those which had never experienced a slowdown. Individual investors
who had been lured into the Internet investing fad and gotten their fingers
scorched had had enough and sold everything. With the exception of brief
rallies, both the NASDAQ and the S&P 500 declined through the end of the year
while the Dow Industrials, the bellwether of the "Old Economy," recovered a
portion of their losses in the final months of 2000.
The Company's portfolio was not immune to the changes in valuation which took
place during the year. Our holdings in technology and telecommunications, led by
Cisco, Solectron, and Nokia, fell substantially with their performance only
partially offset by that of American International Group, Corning, and stocks in
the utility and financial sectors. Our selections in the health care and energy
sectors performed particularly well, while the capital goods and consumer
cyclical areas did poorly until November.
For the year ended December 31, 2000, the return on net assets of the Company,
including income and capital gains, was (4.3%), compared to a return of (4.8%)
for the Dow Jones Industrials and (9.0%) for the Standard & Poor's 500. The
NASDAQ or over-the-counter market, reflecting mostly technology stocks, recorded
its worst performance in history, with a (39.3%) return. With the narrowing of
the discount of the Adams Express Company's stock price from its net asset value
per share, its return based on market prices was 1.7%.
Investment Results
At the end of 2000 our net assets were $1,951,562,978 or $23.72 per share on
82,292,262 shares outstanding as compared with $2,170,801,875 or $26.85 per
share on 80,842,241 shares outstanding a year earlier.
Net investment income for 2000 was $20,941,465 compared to $19,143,783 for 1999.
These earnings are equal to $0.26 and $0.25 per share, respectively, on the
average number of shares outstanding throughout the year. It has been
increasingly difficult to generate income in the portfolio as both the
percentage of stocks paying dividends and the percentage of dividend increases
have declined markedly in the past several years. Through the use of convertible
securities and other actions, we continue to seek ways to generate additional
income without impacting performance. In 2000, our 0.24% expense ratio (expenses
to net assets) was once again at a very low level compared to the industry.
Net realized gains amounted to $128,091,337 during the year, while the
unrealized appreciation on investments decreased from $1,298,662,686 at December
31, 1999 to $1,047,469,344 at year end.
Dividends and Distributions
The total dividends and distributions paid in 2000 were $1.85 per share compared
to $1.63 in 1999. As announced on November 9, 2000, a year-end distribu-
2
tion consisting of investment income of $0.03 and capital gains of $1.58 was
made on December 27, 2000, both realized and taxable in 2000. On January 11,
2001, an additional distribution of $0.08 per share was declared payable March
1, 2001 representing the balance of undistributed capital gains earned during
2000 and an initial distribution from 2001 net investment income, all taxable to
shareholders in 2001.
In September 2000, your Board of Directors declared a 3-for-2 stock split that
was paid to shareholders on October 19, 2000. All per share amounts in this
report have been adjusted to reflect the stock split.
Outlook for 2001
As has historically been the case, about a year after the Federal Reserve began
restricting credit the U.S. economy began to slow down from the torrid pace of
the prior two years. On January 3, 2001, sensing that it may have tightened too
much, the Fed lowered the key Federal Funds rate by fifty basis points and
indicated that it would take further action if necessary to head off a
recession. There is at this time little evidence of accelerating inflation, so
further rate cuts could be made without much risk. Our belief is that there may
be a decline in real gross domestic product (G.D.P.) in the first quarter, but a
resumption of modest growth in the remainder of the year without higher
inflation. The basis for this is that there have been great strides in
productivity over the past several years due to investments in technology and
they should continue to be realized for some time despite a slowdown in
spending. The risk to our assumption is that the rate increases of 2000 will
continue to be reflected in slower economic activity and any easing of rates
will not have an effect until nine to twelve months later.
Though the U.S. economy seems to be slowing, the rest of the world (excluding
Japan) appears to still be growing at about a 4% rate overall. The economies of
Europe are slowly adapting to the common currency and internal barriers to
growth are being broken down. The emerging countries in Latin America and Asia
are recovering from their currency crises of 1998 and appear to be stabilizing.
Thus there is a possibility that the rest of the world could pull the U.S. out
of its slowdown in a reversal of the roles of the past cycle. The alternative,
of course, is that the U.S. drags the rest of the world down with it, which we
believe is less likely.
With the realization by investors in 2000 that the valuations of some stocks had
grown out of proportion to their prospects, most measures of value
(price/earnings, price/book value, P/E to growth, etc.) have fallen
considerably. The S&P 500 is still trading at a price/trailing earnings level of
28.7 compared to its long-term average of 22.8, so it is not unreasonable to
expect the market to decline further, especially if corporate profits come in
lower than those of 2000. While we do not subscribe to the forecasts of lower
profits, we do not believe they will grow by more than 5% or so in 2001. It is
therefore anticipated that the market will drift lower until the latter part of
the year, when the prospects of better earnings in 2002 are factored into
valuations.
We expect that the companies represented by the stocks in the portfolio will
generate solid earnings during the current slowdown and enjoy good growth as the
economy recovers. Their financial condition remains strong despite the
difficulties of some of their customers and will enable them to take market
share from their weaker competitors. We are confident that over time the
portfolio will provide an excellent return on your investment.
Share Repurchase Program
On December 14, 2000, the Board of Directors authorized the repurchase by
management of an additional 5% of the outstanding shares of the Company over the
ensuing year. The repurchase program is subject to the same restriction as in
the past, namely that shares can only be repurchased as long as the discount of
the market price of the shares from the net asset value is greater than 10%. The
repurchase program initiated in 1999 appears to have served its intended purpose
by increasing liquidity and reducing dilution caused by the issuance of shares
in lieu of cash for the year-end capital gain distribution. Furthermore, there
was a narrowing of the discount during the year, which may indirectly be
attributed to the share repurchase program.
As of January 11, 2001, a total of 1,455,400 shares have been repurchased at a
total cost of $50,561,430 and a weighted average discount from net asset value
of 13.5%.
The proxy statement for the Annual Meeting of Stockholders to be held in
Baltimore, Maryland on March 27, 2001, will be mailed on or about February 19,
2001 to holders of record on February 16, 2001.
By order of the Board of Directors,
/s/ Douglas G. Ober, /s/ Joseph M. Truta,
Douglas G. Ober, Joseph M. Truta,
Chairman and Chief President
Executive Officer
January 19, 2001
3
Statement of Assets and Liabilities
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December 31, 2000
Assets
Investments* at value:
Common stocks and convertible securities
(cost $836,139,305) $1,857,743,803
Non-controlled affiliate, Petroleum & Resources Corporation
(cost $26,585,260) 52,269,584
Short-term investments (cost $46,250,878) 46,250,878 $1,956,264,265
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Cash 84,645
Securities lending collateral 458,631,629
Receivables:
Investment securities sold 166,281
Dividends and interest 1,636,468
Prepaid expenses and other assets 6,619,887
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Total Assets 2,423,403,175
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Liabilities
Investment securities purchased 583,725
Open written option contracts at value (proceeds $444,272) 263,750
Obligations to return securities lending collateral 458,631,629
Accrued expenses and other liabilities 5,382,891
Distributions payable 6,978,202
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Total Liabilities 471,840,197
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Net Assets $1,951,562,978
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Net Assets
Common Stock at par value $1.00 per share, authorized 150,000,000 shares;
issued and outstanding 82,292,262 shares $ 82,292,262
Additional capital surplus 814,232,071
Undistributed net investment income 3,767,539
Undistributed net realized gain on investments 3,801,762
Unrealized appreciation on investments 1,047,469,344
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Net Assets Applicable to Common Stock $1,951,562,978
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Net Asset Value Per Share of Common Stock $23.72
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*See schedule of investments on pages 12 through 15.
The accompanying notes are an integral part of the financial statements.
4
Statement of Operations
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Year Ended December 31, 2000
Investment Income
Income:
Dividends:
From unaffiliated issuers $ 19,001,174
From non-controlled affiliate 750,252
Interest 5,386,988
Securities lending 1,027,913
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Total income 26,166,327
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Expenses:
Investment research 2,199,048
Administration and operations 1,037,657
Directors' fees 188,250
Reports and stockholder communications 386,916
Transfer agent, registrar and custodian expenses 585,637
Auditing and accounting services 113,737
Legal services 92,774
Occupancy and other office expenses 255,726
Travel, telephone and postage 130,062
Other 235,055
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Total expenses 5,224,862
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Net Investment Income 20,941,465
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Realized Gain and Change in Unrealized Appreciation on Investments
Net realized gain on security transactions 125,665,117
Net realized gain distributed by regulated investment company
(non-controlled affiliate) 2,426,220
Change in unrealized appreciation on investments (251,193,342)
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Net Loss on Investments (123,102,005)
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Change in Net Assets Resulting From Operations $ (102,160,540)
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The accompanying notes are an integral part of the financial statements.
5
Statements of Changes in Net Assets
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For the Year Ended
--------------------------------
Dec. 31, 2000 Dec. 31, 1999
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From Operations:
Net investment income $ 20,941,465 $ 19,143,783
Net realized gain on investments 128,091,337 106,820,166
Change in unrealized appreciation on investments (251,193,342) 419,522,952
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Change in net assets resulting from operations (102,160,540) 545,486,901
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Distributions to Stockholders From:
Net investment income (17,702,862) (20,231,884)
Net realized gain from investment transactions (128,205,341) (106,865,901)
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Decrease in net assets from distributions (145,908,203) (127,097,785)
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From Capital Share Transactions:
Value of shares issued in payment of exercised options and distributions 77,508,318 65,780,453
Cash in lieu of fractional shares issued in payment of 3-for-2 stock split (123,043) --
Cost of shares purchased (note 4) (48,555,429) (1,448,030)
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Change in net assets from capital share transactions 28,829,846 64,332,423
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Total Increase (Decrease) in Net Assets (219,238,897) 482,721,539
Net Assets:
Beginning of year 2,170,801,875 1,688,080,336
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End of year (including undistributed net investment
income of $3,767,539 and $502,423, respectively) $1,951,562,978 $2,170,801,875
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The accompanying notes are an integral part of the financial statements.
6
Notes To Financial Statements
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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's
investment objectives as well as the nature and risk of its investment
transactions are set forth in the Company's registration statement.
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 are valued at
amortized cost. Written options are valued at the last quoted asked price.
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 shareholders are recognized on the ex-dividend date, and interest income is
recognized on the accrual basis.
2. Federal Income Taxes
The Company's policy is to distribute all of its taxable income to its
shareholders 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, including options, at December 31, 2000 was $908,752,028, and net
unrealized appreciation aggregated $1,047,956,509, of which the related gross
unrealized appreciation and depreciation were $1,148,681,932 and $100,725,423,
respectively.
Distributions are determined in accordance with income tax regulations which may
differ from generally accepted accounting principles. Accordingly, periodic
reclassifications are made within the Company's capital accounts to reflect
income and gains available for distribution under income tax regulations.
3. Investment Transactions
Purchases and sales of portfolio securities, other than options and short-term
investments, during the year ended December 31, 2000 were $327,974,611 and
$267,558,207, respectively. The Company, as writer of an option, bears the
market risk of an unfavorable change in the price of the security underlying the
written option. Option transactions comprised an insignificant portion of
operations during the year ended December 31, 2000. All investment decisions are
made by a committee, and no one person is primarily responsible for making
recommendations to that committee.
4. Capital Stock
On March 28, 2000, stockholders approved an increase in the number of authorized
shares of Common Stock from 75,000,000 to 150,000,000. The Company has
10,000,000 authorized and unissued preferred shares without par value.
On October 19, 2000 the Company effected a 3-for-2 stock split. All references
to the number of outstanding shares and per share amounts have been adjusted
retroactively to reflect the stock split.
On December 27, 2000, the Company issued 2,083,494 shares of its stock and
reissued 1,434,300 shares of its Common Stock, that were previously repurchased
by the Company, at a price of $22.00 per share (the market price on December 11,
2000) to stockholders of record November 20, 2000 who elected to take stock in
payment of the distribution from 2000 capital gain and investment income.
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. Transactions in
Common Stock for 2000 and 1999 were as follows:
Shares Amount
----------------------- --------------------------
2000 1999 2000 1999
---- ---- ---- ----
Shares issued in payment
of dividends 3,517,794 2,061,676 $ 77,391,468 $65,780,453
Shares issued in payment
of stock option exercise 3,068 116,850
Shares issued for 3-for-2
stock split 26,262,073 --
Cash in lieu of fractional
shares issued in payment
of 3-for-2 stock split (123,043)
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Total increase 29,782,935 2,061,676 77,385,275 65,780,453
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Shares purchased (at a
weighted average
discount from net asset
value of 13.7% and
16.2%, respectively) (1,385,500) (43,500) (48,555,429) (1,448,030)
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Total decrease (1,385,500) (43,500) (48,555,429) (1,448,030)
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Net change 28,397,435 2,018,176 $ 28,829,846 $64,332,423
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7
Notes To Financial Statements (continued)
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The Company has an employee incentive stock option and stock appreciation rights
plan which provides for the issuance of options and stock appreciation rights
for the purchase of up to 2,610,146 shares of the Company's common stock at 100%
of the fair market value at date of grant. Options are exercisable beginning not
less than one year after the date of grant and extend and vest over ten years
from the date of grant. Stock appreciation rights are exercisable beginning not
less than two years after the date of grant and extend over the period during
which the option is exercisable. The stock appreciation rights allow the
optionees to surrender their rights to exercise their options and receive cash
or shares in an amount equal to the difference between the option price and the
fair market value of the common stock at the date of surrender. Under the plan,
the exercise price of the options and related stock appreciation rights is
reduced by the per share amount of capital gain paid by the Company during
subsequent years. At the beginning of 2000, 379,575 options were outstanding
with a weighted average exercise price of $8.3917 per share. During 2000, the
Company granted options, including stock appreciation rights, for 33,758 shares
of common stock with an exercise price of $22.2083 per share. During the year
stock options or stock appreciation rights relating to 69,429 stock option
shares were exercised at a weighted average market price of $23.9339 per share
and the stock options relating to these rights which had a weighted average
exercise price of $7.5744 per share were cancelled. Stock options and stock
appreciation rights relating to 4,501 shares were cancelled during the year
ended December 31, 2000. At December 31, 2000, there were outstanding
exercisable options to purchase 99,408 common shares at $3.7433-$14.5417 per
share (weighted average price of $5.6630), and unexercisable options to purchase
239,995 common shares at $3.7433-$20.5817 per share (weighted average price of
$9.1334). The weighted average remaining contractual life of outstanding
exercisable and unexercisable options was 3.9207 years and 5.7664 years,
respectively. Total compensation expense recognized in 2000 related to the stock
option and stock appreciation rights plan was $628,213. At December 31, 2000,
there were 1,310,585 shares available for future option grants.
5. Retirement Plans
The Company provides retirement benefits for its employees under a non-
contributory qualified defined benefit pension plan. The benefits are based on
years of service and compensation during the last 36 months of employment. The
Company's current funding policy is to contribute annually to the plan only
those amounts that can be deducted for federal income tax purposes. The plan
assets consist primarily of investments in individual stocks, bonds, and mutual
funds.
The actuarially computed net pension cost credit for the year ended December 31,
2000 was $566,845, and consisted of service expense of $179,667, interest
expense of $338,021, expected return on plan assets of $893,321, and net
amortization credit of $191,212.
In determining the actuarial present value of the projected benefit obligation,
the interest rate used for the weighted average discount rate was 8.0%, the
expected rate of annual salary increases was 7.0%, and the expected long-term
rate of return on plan assets was 8.0%.
On January 1, 2000, the projected benefit obligation for service rendered to
date was $4,322,841. During 2000, the projected benefit obligation increased due
to service cost and interest cost of $179,667 and $338,021 respectively, and
decreased due to benefits paid in the amount of $195,144. The projected benefit
obligation at December 31, 2000 was $4,645,385.
On January 1, 2000, the fair value of plan assets was $11,264,093. During 2000,
the fair value of plan assets increased due to the expected return on plan
assets of $893,321 and decreased due to benefits paid in the amount of $195,144.
At December 31, 2000, the projected fair value of plan assets amounted to
$11,962,270, which resulted in excess plan assets of $7,316,885. The remaining
components of prepaid pension cost on December 31, 2000 included $1,943,456 in
unrecognized gain, $539,934 in unrecognized prior service cost and $95,922 is
the remaining portion of the unrecognized net asset existing at January 1, 1987,
which is being amortized over 15 years. Prepaid pension cost included in other
assets at December 31, 2000 was $5,817,441.
In addition, the Company has a nonqualified benefit plan which provides
employees with defined retirement benefits to supplement the qualified plan. The
Company does not provide postretirement medical benefits.
8
Notes To Financial Statements (continued)
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6. Expenses
The cumulative amount of accrued expenses at December 31, 2000 for employees and
former employees of the Company was $5,119,474. Aggregate remuneration paid or
accrued during the year ended December 31, 2000 to officers and directors
amounted to $3,139,581.
Research, accounting and other office services provided to and reimbursed by the
Company's non-controlled affiliate, Petroleum & Resources Corporation, amounted
to $125,083 for the year ended December 31, 2000.
7. 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 by collateral of at
least 102%, at all times, 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 December 31, 2000, the Company had securities on loan of $432,376,068 and
held cash collateral of $458,631,629.
_____________________
Forward-Looking Statements
This report contains "forward-looking statements" within the meaning of the
Securities Act of 1933 and the Securities and Exchange Act of 1934. By their
nature, all forward-looking statements involve risks and uncertainties, and
actual results could differ materially from those contemplated by the forward-
looking statements. Several factors that could materially affect the Company's
actual results are the performance of the portfolio of stocks held by the
Company, the conditions in the U.S. and international financial markets, the
price at which shares of the Company will trade in the public markets, and other
factors discussed in the Company's periodic filings with the Securities and
Exchange Commission.
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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.
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9
The Adams Express Company
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Calendar Market Cumulative Cumulative Total Total net
Years value market value market value market asset
of of capital of income value value
original gains dividends
shares distributions taken in
taken in shares
shares
---------------------------------------------------------------------
1986 $ 9,588 $ 1,967 $ 328 $11,883 $12,125
1987 7,457 3,176 622 11,255 12,046
1988 7,395 4,127 947 12,469 13,618
1989 7,833 5,539 1,555 14,927 17,526
1990 7,395 6,224 2,026 15,645 17,840
1991 9,525 9,230 3,170 21,925 23,317
1992 10,027 11,057 3,850 24,934 25,532
1993 8,961 11,338 3,904 24,203 26,782
1994 7,833 11,392 3,994 23,219 26,726
1995 9,272 15,197 5,493 29,962 34,603
1996 9,901 18,214 6,684 34,799 41,786
1997 12,126 25,019 9,086 46,231 54,502
1998 13,348 30,844 10,833 55,025 67,239
1999 16,826 43,427 14,524 74,777 89,733
2000 18,236 52,567 16,400 87,203 93,496
Illustration of an assumed 15 year
investment of $10,000 (unaudited)
Investment income dividends and capital gains distributions are taken in
additional shares. This chart covers the years 1986-2000. These results should
not be considered representative of the dividend income or capital gain or loss
which may be realized in the future. No adjustment has been made for any income
taxes payable by stockholders on income dividends or on capital gains
distributions.
GRAPH
E B C D
10,297 10,000 10,000 10,000
86 12,125 9,588 11,555 11,883
87 12,046 7,457 10,633 11,255
88 13,618 7,395 11,522 12,469
89 17,526 7,833 13,372 14,927
90 17,840 7,395 13,619 15,645
91 23,317 9,525 18,755 21,925
92 25,532 10,027 21,084 24,934
93 26,782 8,961 20,299 24,203
94 26,726 7,833 19,225 23,219
95 34,603 9,272 24,469 29,962
96 41,786 9,901 28,115 34,799
97 54,502 12,126 37,145 46,231
98 67,239 13,348 44,192 55,025
99 89,733 16,826 60,253 74,777
00 93,496 18,236 70,803 87,203
Net Asset Value of Total Shares $93,496
Total Market Value $87,203
Initial Net Asset Value $10,297
10
Financial Highlights
--------------------------------------------------------------------------------
Year Ended December 31
----------------------------------------------------------------
2000 1999 1998 1997 1996
------------------------------------------------------------------------------------------------------------------------
Per Share Operating Performance*
Net asset value, beginning of year $ 26.85 $ 21.69 $ 19.01 $ 15.80 $ 14.24
------------------------------------------------------------------------------------------------------------------------
Net investment income 0.26 0.25 0.30 0.29 0.35
Net realized gains and change
in unrealized appreciation and
other changes (1.63) 6.54 3.78 4.22 2.36
------------------------------------------------------------------------------------------------------------------------
Total from investment operations 1.37 6.79 4.08 4.51 2.71
------------------------------------------------------------------------------------------------------------------------
Capital share repurchases 0.09 -- -- -- --
------------------------------------------------------------------------------------------------------------------------
Less distributions
Dividends from net investment income (0.22) (0.26) (0.30) (0.29) (0.35)
Distributions from net realized gains (1.63) (1.37) (1.10) (1.01) (0.80)
------------------------------------------------------------------------------------------------------------------------
Total distributions (1.85) (1.63) (1.40) (1.30) (1.15)
------------------------------------------------------------------------------------------------------------------------
Net asset value, end of year $ 23.72 $ 26.85 $ 21.69 $ 19.01 $ 15.80
========================================================================================================================
Per share market price, end of year $ 21.00 $ 22.38 $ 17.75 $ 16.13 $ 13.17
------------------------------------------------------------------------------------------------------------------------
Total Investment Return
Based on market price 1.7% 36.1% 19.3% 33.1% 16.4%
Based on net asset value (4.3%) 33.6% 23.7% 30.7% 21.0%
Ratios/Supplemental Data
Net assets, end of year (in 000's) $1,951,563 $2,170,802 $1,688,080 $1,424,170 $1,138,760
Ratio of expenses to average net assets 0.24% 0.32% 0.22% 0.39% 0.34%
Ratio of net investment income to
average net assets 0.97% 1.06% 1.48% 1.61% 2.30%
Portfolio turnover 12.74% 15.94% 22.65% 17.36% 19.60%
Number of shares outstanding at
end of year (in 000's)* 82,292 80,842 77,815 74,924 72,055
-----------------------------------------------------------------------------------------------------------------------
*Adjusted to reflect the 3-for-2 stock split effected in October, 2000.
11
Schedule of Investments
--------------------------------------------------------------------------------
December 31, 2000
Prin. Amt.
or Shares Value (A)
--------------------------------------------------------------------------------------------------------------------
Stocks and Convertible Securities -- 97.8%
Basic Materials -- 1.8%
Cabot Corp............................................................................. 470,000 $ 12,396,250
Engelhard Corp......................................................................... 530,000 10,798,750
Mead Corp.............................................................................. 400,000 12,550,000
------------
35,745,000
------------
Capital Goods -- 9.1%
Black & Decker Corp.................................................................... 300,000 11,775,000
Dover Corp............................................................................. 260,000 10,546,250
General Electric Co.................................................................... 1,855,000 88,924,063
Minnesota Mining & Manufacturing Co.................................................... 285,000 34,342,500
Pall Corp.............................................................................. 600,000 12,787,500
United Technologies Corp............................................................... 255,000 20,049,375
------------
178,424,688
------------
Communication Services -- 10.8%
Telecommunications -- Cellular and Wireless -- 2.6%
MediaOne Group, Inc. 6.25% PIES due 2001............................................... 85,000 6,906,250
Nextel Communications Inc. 5.25% Conv. Notes due 2010.................................. $10,000,000 7,337,580
Nextel Communications Inc. (B)......................................................... 1,040,000 25,740,000
Vodafone Group plc ADS................................................................. 287,500 10,296,094
------------
50,279,844
------------
Telecommunications -- Long Distance -- 2.7%
Qwest Communications International, Inc. 5.75% TRENDS Pfd. due 2003 (C)................ 125,000 8,562,500
Qwest Communications International, Inc. (B)........................................... 760,000 31,160,000
Williams Communications Group, Inc. (B)................................................ 500,000 5,875,000
WorldCom, Inc. (B)..................................................................... 550,000 7,700,000
------------
53,297,500
------------
Telephone -- 5.5%
American Tower Corp. 5.00% Conv. Notes due 2010........................................ $10,000,000 9,150,000
BellSouth Corp......................................................................... 440,000 18,012,500
Global Crossing Ltd. 6.75% Conv. Pfd. due 2012......................................... 40,000 5,865,000
Global Crossing Ltd. (B)............................................................... 644,000 9,217,250
RCN Corp. (B).......................................................................... 280,000 1,767,500
SBC Communications, Inc................................................................ 787,960 37,625,090
Time Warner Telecom Inc. (B)........................................................... 404,500 25,660,469
------------
107,297,809
------------
Consumer -- 5.0%
Consumer Cyclical -- 0.8%
Delphi Automotive, Inc................................................................. 370,000 4,162,500
Tiffany & Co........................................................................... 350,000 11,068,750
------------
15,231,250
------------
Consumer Staples -- 4.2%
Coca-Cola Co........................................................................... 170,000 10,359,375
Dean Foods Co.......................................................................... 300,000 9,206,250
Ivex Packaging Corp. (B)............................................................... 928,000 10,150,000
McDonald's Corp........................................................................ 560,000 19,040,000
PepsiCo, Inc........................................................................... 295,000 14,620,938
Proctor & Gamble Co.................................................................... 130,000 10,196,875
Time Warner Inc........................................................................ 148,752 7,770,804
------------
81,344,242
------------
12
Schedule of Investments (continued)
--------------------------------------------------------------------------------
December 31, 2000
Prin. Amt.
or Shares Value (A)
-------------------------------------------------------------------------------
Energy -- 9.4%
BP Amoco plc ADR................................... 270,000 $ 12,926,251
Calpine Capital Trust 5.75% Conv. Pfd HIGHTIDES.... 202,500 32,121,563
Calpine Corp. (B).................................. 100,000 4,506,250
Enron Corp......................................... 500,000 41,562,500
Exxon Mobil Corp................................... 158,418 13,772,465
Petroleum & Resources Corporation (D).............. 1,913,761 52,269,584
Schlumberger Ltd................................... 88,400 7,066,475
Williams Companies, Inc............................ 500,000 19,968,750
------------
184,193,838
------------
Financial -- 17.7%
Banking -- 11.0%
BankNorth Group, Inc............................... 474,000 9,450,375
Citigroup Inc...................................... 401,023 20,477,243
Federal Home Loan Mortgage Corp.................... 345,000 23,761,875
Greenpoint Financial Corp.......................... 435,000 17,807,812
Investors Financial Services Corp.................. 660,000 56,760,000
Mellon Financial Corp.............................. 420,000 20,658,750
National City Corp................................. 160,000 4,600,000
Provident Bankshares Corp.......................... 319,068 6,660,544
Wachovia Corp...................................... 190,000 11,043,750
Wells Fargo & Co................................... 550,000 30,628,125
Wilmington Trust Corp.............................. 210,000 13,033,125
------------
214,881,599
------------
Insurance -- 6.7%
AMBAC Financial Group, Inc......................... 569,400 33,203,137
American International Group, Inc.................. 759,375 74,845,900
Annuity & Life Re (Holdings), Ltd.................. 700,000 22,356,250
------------
130,405,287
------------
Health Care -- 12.2%
Abbott Laboratories................................ 255,000 12,351,563
ALZA Corp. (B)..................................... 480,000 20,400,000
American Home Products Corp........................ 300,000 19,065,000
Baxter International............................... 255,000 22,519,687
Chiron Corp. (B)................................... 550,000 24,475,000
Elan Corp., plc ADR (B)............................ 550,000 25,746,875
GlaxoSmithKline plc ADR............................ 250,360 14,020,160
Johnson & Johnson.................................. 180,000 18,911,250
Lilly (Eli) & Co................................... 190,000 17,681,875
Merck & Co., Inc................................... 250,000 23,406,250
Pharmacia Corp..................................... 368,900 22,502,900
Vertex Pharmaceuticals Inc......................... 248,016 17,733,144
------------
238,813,704
------------
13
Schedule of Investments (continued)
--------------------------------------------------------------------------------
December 31, 2000
Prin. Amt.
or Shares Value (A)
-------------------------------------------------------------------------------------------
Technology -- 26.6%
Communication Equipment -- 12.4%
Corning Inc.................................................... 1,170,000 $ 61,790,625
Ericsson (L.M.) Telephone Co. ADR.............................. 3,133,333 35,054,163
Lucent Technologies Inc........................................ 508,920 6,870,420
Motorola, Inc.................................................. 485,622 10,036,346
Nokia Corp. ADR................................................ 1,840,000 80,040,000
Nortel Networks Corp........................................... 1,490,000 47,773,125
-------------
241,564,679
-------------
Computer Related -- 9.7%
BMC Software Inc. (B).......................................... 310,000 4,340,000
Cisco Systems, Inc. (B)........................................ 1,835,000 70,188,750
Diamondcluster International Inc. (B).......................... 300,000 9,150,000
First Data Corp................................................ 343,980 18,123,446
Hewlett-Packard Co............................................. 400,000 12,625,000
Oracle Corp. (B)............................................... 1,180,000 34,293,750
QRS Corp. (B).................................................. 585,000 7,495,313
Sapient Corp. (B).............................................. 1,150,000 13,728,125
Sun Microsystems, Inc. (B)..................................... 400,000 11,150,000
Symantec Corp. (B)............................................. 222,500 7,425,937
-------------
188,520,321
-------------
Electronics -- 4.5%
Intel Corp..................................................... 690,000 20,872,500
Solectron Corp. (B)............................................ 2,000,000 67,800,000
-------------
88,672,500
-------------
Transportation -- 0.7%
Canadian National Railway Co. 5.25% Conv. Pfd. QUIDS due 2029.. 15,000 679,688
Canadian National Railway Co................................... 60,000 1,781,250
United Parcel Service, Inc..................................... 175,000 10,292,188
-------------
12,753,126
-------------
Utilities -- 4.5%
Black Hills Corp............................................... 555,000 24,836,250
CINergy Corp................................................... 300,000 10,537,500
Duke Energy Corp............................................... 262,000 22,335,500
Northwestern Corp.............................................. 500,000 11,562,500
Orion Power Holdings, Inc...................................... 390,000 9,603,750
TECO Energy, Inc............................................... 300,000 9,712,500
-------------
88,588,000
-------------
Total Stocks and Convertible Securities
(Cost $862,724,565) (E)........................................ 1,910,013,387
-------------
14
Schedule of Investments (continued)
--------------------------------------------------------------------------------
December 31, 2000
Prin. Amt.
or Shares Value (A)
-----------------------------------------------------------------------------------------------------
Short-Term Investments -- 2.4%
U.S. Government Obligations -- 0.8%
U.S. Treasury Bills, 6.18%, due 2/22/01............................. $15,000,000 $ 14,866,187
--------------
Commercial Paper -- 1.6%
Chevron USA, 6.47%, due 1/8/01...................................... 15,000,000 14,981,129
Ford Motor Credit Corp., 6.51-6.53%, due 1/4/01- 1/18/01............ 6,670,000 6,659,135
General Electric Capital Corp., 6.50%, due 1/9/01................... 8,545,000 8,532,657
Texaco Inc., 6.38%, due 1/16/01..................................... 1,215,000 1,211,770
--------------
31,384,691
--------------
Total Short-Term Investments
(Cost $46,250,878).................................................. 46,250,878
-------------
Total Investments
(Cost $908,975,443)................................................. 1,956,264,265
Cash, receivables and other assets, less liabilities............... (4,701,287)
--------------
Net Assets -- 100.0%................................................. $1,951,562,978
===================================================================================================
Notes:
(A) See note 1 to financial statements. Securities are listed on the New York
Stock Exchange, the American Stock Exchange, or the NASDAQ, except
restricted securities.
(B) Presently non-dividend paying.
(C) Restricted security Qwest Communications International, Inc. 5.75% TRENDS
Pfd. due 2003, acquired 12/4/98, cost $5,218,750).
(D) Non-controlled affiliate and is a registered investment company.
(E) The aggregate market value of stocks held in escrow at December 31, 2000
covering open call option contracts written was $3,839,063. In addition, the
required aggregate market value of securities segregated by the custodian to
collateralize open put option contracts written was $9,625,000.
15
Principal Changes in Portfolio Securities
--------------------------------------------------------------------------------
During the Three Months Ended December 31, 2000
(unaudited)
Shares
------------------------------------------------------
Held
Additions Reductions Dec. 31, 2000
------------------------------------------------------
ALZA Corp............................... 240,000/(1)/ 480,000
AMBAC Financial Group, Inc.............. 189,800/(1)/ 569,400
Cabot Microelectronics Corp............. 131,822/(2)/ 131,822 --
Calpine Corp............................ 50,000/(1)/ 100,000
Citigroup Inc........................... 401,023/(3)/ 401,023
Corning, Inc............................ 780,000/(1)/ 1,170,000
Diamondcluster International, Inc....... 300,000/(4)/ 300,000
Diamond Technology Partners Inc......... 252,000 300,000/(4)/ --
GlaxoSmithKline plc ADR................. 250,360/(5)/ 250,360
Hewlett-Packard Co...................... 200,000/(1)/ 400,000
Oracle Corp............................. 590,000/(1)/ 1,180,000
Petroleum & Resources Corporation....... 703,676/(6)/ 1,913,761
Proctor & Gamble Co..................... 130,000 130,000
Sun Microsystems, Inc................... 295,000/(1)/ 400,000
Symantec Corp........................... 222,500/(7)/ 222,500
United Parcel Service, Inc.............. 175,000 175,000
United Technologies Corp................ 255,000 255,000
Associates First Capital Corp. Ser A.... 546,800/(3)/ --
Axent Technologies Inc.................. 445,000/(7)/ --
Bank One Corp........................... 330,000 --
Delphi Automotive, Inc.................. 320,000 370,000
ENDESA, S.A. ADR........................ 170,000 --
Fort James Corp......................... 446,000 --
General Electric Co..................... 45,000 1,855,000
Honeywell Int'l Co...................... 360,000 --
Interstate Bakeries Corp................ 138,000 --
Investors Financial Services Corp....... 40,000 660,000
Ryder System, Inc....................... 445,000 --
Smithkline Beecham plc ADR.............. 220,000/(5)/ --
______________
(1) By stock split.
(2) Received .28047 shares Cabot Microelectronics Corp. for each share of Cabot
Corp. held.
(3) Received .7334 shares Citigroup Inc. for each share of Associates First
Capital Corp. Ser A held.
(4) Received one share of Diamondcluster International, Inc. for each share of
Diamond Technology Partners, Inc.
(5) Received 1.138 shares GlaxoSmithKline plc ADR for each share of Smithkline
Beecham plc ADR held.
(6) Received 98,633 shares through dividend reinvestment and a 3-for-2 stock
split on 1,210,085 shares held.
(7) Received .5 shares Symantec Corp. for each share of Axent Technologies Inc.
held.
16
Report of Independent Accountants
--------------------------------------------------------------------------------
To the Board of Directors and Stockholders of The Adams Express Company:
In our opinion, the accompanying statement of assets and liabilities, including
the schedule of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of The Adams Express Company
(hereafter referred to as the "Company") at December 31, 2000, and the results
of its operations, the changes in its net assets and the financial highlights
for each of the fiscal periods presented, in conformity with accounting
principles generally accepted in the United States of America. These financial
statements and financial highlights (hereafter referred to as "financial
statements") are the responsibility of the Company's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with auditing standards generally accepted in the United States of America,
which require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which included
confirmation of securities at December 31, 2000 by correspondence with the
custodian, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Baltimore, Maryland
January 9, 2001
_________________
Common Stock
Listed on the New York Stock Exchange
and the Pacific Exchange
The Adams Express Company
Seven St. Paul Street, Suite 1140, Baltimore, MD 21202
Website: www.adamsexpress.com
E-mail: contact@adamsexpress.com
Telephone: (410) 752-5900 or (800) 638-2479
Counsel: Chadbourne & Parke L.L.P.
Independent Accountants: PricewaterhouseCoopers LLP
Transfer Agent, Registrar & Custodian of Securities
The Bank of New York
101 Barclay Street
New York, NY 10007
The Bank's Shareholder Relations Department: (800) 432-8224
E-mail: Shareowner-svcs@bankofny.com
17
Shareholder Information and Services
--------------------------------------------------------------------------------
WE ARE OFTEN ASKED --
How do I invest in Adams Express?
Adams Express Common Stock is listed on the New York Stock Exchange and the
Pacific Exchange. The stock's ticker symbol is "ADX" and may be bought and sold
through registered investment security dealers. Your broker will be able to
assist you in this regard. In addition, stock may be purchased through the Bank
of New York's BuyDIRECT Purchase and Sale Plan (see page 19).
Where do I get information on the stock's price, trading and/or net asset value?
The daily net asset value (NAV) per share and closing market price may be
obtained from our website at www.adamsexpress.com. The daily NAV is also
available on the NASDAQ Mutual Fund Quotation System under the symbol XADEX. The
week-ending NAV is published on Saturdays in various newspapers and on Mondays
in The Wall Street Journal in a table titled "Closed-End Funds." The table
compares the net asset value at the close of the week's last business day to the
market price of the shares, and shows the amount of the discount or premium.
Adams' daily trading is shown in the stock tables of most daily newspapers,
usually with the abbreviated form "AdaEx." Local newspapers determine, usually
by volume of traded shares, which securities to list. If your paper does not
carry our listing, please telephone the Company at (800) 638-2479 or visit our
website.
How do I replace a lost certificate(s) or how do Icorrect a spelling error on my
certificate?
Your Adams Express stock certificates are valuable documents and should be kept
in a safe place. For tax purposes, keep a record of each certificate, including
the cost or market value of the shares it covers at the time acquired. If a
certificate is lost, destroyed or stolen, notify the Transfer Agent immediately
so a "stop transfer" order can be placed on the records to prevent an
unauthorized transfer of your certificate. The necessary forms and requirements
to permit the issuance of a replacement certificate will then be sent to you. A
certificate can be replaced only after the receipt of an affidavit regarding the
loss accompanied by an open penalty bond, for which a small premium is paid by
the stockholder.
In the event a certificate is issued with the holder's name incorrectly spelled,
a correction can only be made if the certificate is returned to the Transfer
Agent with instructions for correcting the error. Transferring shares to another
name also requires that the certificate be forwarded to the Transfer Agent with
the appropriate assignment forms completed and the signature of the registered
owner Medallion guaranteed by a bank or member firm of The New York Stock
Exchange, Inc.
Can you send my dividend checks directly to my bank?
Yes, provide the Transfer Agent with your bank's name, your branch's mailing
address and your account number at your bank. (Sorry, electronic transfer of
funds is not offered at this time.)
Who do Inotify of a change of address?
The Transfer Agent.
We go to Florida (Arizona) every winter. How do we get our mail from Adams
Express?
The Transfer Agent can program a seasonal address into its system; simply send
the temporary address and the dates you plan to be there to The Bank of New
York.
I want to give shares to my children, grandchildren, etc. as a gift. How do I go
about it?
Giving shares of Adams Express is simple and is handled through our Transfer
Agent. The stock transfer rules, designed to protect you, the investor, are
clear and precise for most forms of transfer. They will vary slightly depending
on each transfer, so write to the Transfer Agent stating the exact intent of
your gift plans and the Agent will send you the instructions and forms necessary
to effect your transfer.
18
Shareholder Information and Services (continued)
--------------------------------------------------------------------------------
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.
BuyDIRECT(SM)*
BuyDIRECT is a direct purchase and sale plan, as well as a dividend reinvestment
plan, sponsored and administered by our transfer agent, The Bank of New York.
The Plan provides registered stockholders and interested first time investors an
affordable alternative for buying, selling, and reinvesting in Adams Express
shares. Direct purchase plans are growing in popularity and Adams Express is
pleased to participate in such a plan.
The costs to participants in administrative service fees and brokerage
commissions for each type of transaction are listed below. Please note that the
fees for the reinvestment of dividends as well as the $0.05 per share commission
for each share purchased under the Plan have not increased since 1973.
Initial Enrollment $7.50
A one-time fee for new accounts who are not currently registered holders.
Optional Cash Investments
Service Fee $2.50 per investment
Brokerage Commission $0.05 per share
Reinvestment of Dividends**
Service Fee 10% 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 Included
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
(monthly minimum) $ 50.00
Maximum per transaction $25,000.00
Maximum per year NONE
A brochure which further details the benefits and features of BuyDIRECT as well
as an enrollment form may be obtained by contacting The Bank of New York.
For Non-registered Shareholders
For shareholders whose stock is held by a broker in "street" name, The Bank of
New York's Dividend Reinvestment 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 this Plan or contact The Bank of New York about the BuyDIRECT
Plan.
________________
The Company The Transfer Agent
The Adams Express Company The Bank of New York
Lawrence L. Hooper, Jr., Shareholder Relations
Vice President, Secretary and Dept.-8W
General Counsel P.O. Box 11258
Seven St. Paul Street, Church Street Station
Suite 1140 New York, NY 10286
Baltimore, MD 21202 (800) 432-8224
(800) 638-2479 Website:
Website: http://stock.bankofny.com
www.adamsexpress.com E-mail:
E-mail: Shareowner-svcs@bankofny.com
contact@adamsexpress.com
* BuyDIRECT is a service mark of The Bank of New York.
** The year-end dividend and capital gain distribution may be made in newly
issued shares of common stock in which event there would be no fees or
commissions in connection with this dividend and capital gain distribution.
19
Historical Financial Statistics
---------------------------------------------------------------------------------------------------
Dividends Distributions
From Net From Net
Net Asset Investment Realized
Value Of Shares Value Income Gains
Dec. 31 Net Assets Outstanding* Per Share* Per Share* Per Share*
---------------------------------------------------------------------------------------------------
1986 $ 468,344,507 36,007,323 $13.01 $.47 $2.49
1987 427,225,965 40,250,997 10.61 .52 1.77
1988 455,825,580 42,443,262 10.74 .33 .88
1989 550,091,129 44,974,408 12.23 .47 .91
1990 529,482,769 47,219,010 11.21 .44 .71
1991 661,895,779 49,121,246 13.47 .36 .73
1992 696,924,779 51,039,938 13.65 .31 .77
1993 840,610,252 63,746,498 13.19 .30 .79
1994 798,297,600 66,584,985 11.99 .33 .73
1995 986,230,914 69,248,276 14.24 .35 .76
1996 1,138,760,396 72,054,792 15.80 .35 .80
1997 1,424,170,425 74,923,859 19.01 .29 1.01
1998 1,688,080,336 77,814,977 21.69 .30 1.10
1999 2,170,801,875 80,842,241 26.85 .26 1.37
2000 1,951,562,978 82,292,262 23.72 .22 1.63
____________
*Adjusted to reflect the 3-for-2 stock split effected in October, 2000.
------------
Stock Data
------------
Price (12/31/00) $21.00
Net Asset Value (12/31/00) $23.72
Discount: 11.5%
New York Stock Exchange and Pacific Exchange ticker symbol: ADX
NASDAQ Mutual Fund Quotation Symbol: XADEX
Newspaper stock listings are generally under the abbreviation: AdaEx
20
The Adams Express Company
--------------------------------------------------------------------------------
Board Of Directors (with their principal affiliations)
Enrique R. Arzac/1/,/4/
Professor of Finance
and Economics
Columbia University
Daniel E. Emerson/2/,/4/
Retired Executive Vice President
NYNEX Corporation
Thomas H. Lenagh/2/,/3/
Financial Advisor
W.D. MacCallan/1/,/3/
Retired Chairman of the Company and Petroleum & Resources Corporation
W. Perry Neff/1/,/2/
Retired Executive Vice President
Chase Bank
Douglas G. Ober/1/
Chairman of the Company
Landon Peters/2/,/4/
Private Investor
John J. Roberts/1/,/4/
Senior Advisor, American
International Group, Inc.
Susan C. Schwab/1/,/3/
Dean of the School of
Public Affairs
University of Maryland
Robert J.M. Wilson/3/,/4/
Retired President of the Company and Petroleum & Resources Corporation
Officers
Douglas G. Ober
Chairman and
Chief Executive Officer
Joseph M. Truta
President
Richard F. Koloski
Executive Vice President
Richard B. Tumolo
Vice President -- Research
Lawrence L. Hooper, Jr.
Vice President, Secretary and General Counsel
Maureen A. Jones
Vice President and Treasurer
Christine M. Sloan
Assistant Treasurer
Geraldine H. Stegner
Assistant Secretary
1. Member of Executive Committee
2. Member of Audit Committee
3. Member of Compensation Committee
4. Member of Retirement Benefits Committee
The Adams Express Company
Seven St. Paul Street, Suite 1140
Baltimore, MD 21202
(410) 752-5900 or (800) 638-2479
Contact us on the Web at:
www.adamsexpress.com
[LOGO OF ADX]