UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF
REGISTERED MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number: 811-00248
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THE ADAMS EXPRESS COMPANY
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(Exact name of registrant as specified in charter)
7 Saint Paul Street, Suite 1140, Baltimore, Maryland 21202
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(Address of principal executive offices) (Zip code)
Lawrence L. Hooper, Jr.
The Adams Express Company
7 Saint Paul Street
Suite 1140
Baltimore, Maryland 21202
Registrant's telephone number, including area code: 410-752-5900
Date of fiscal year end: December 31, 2005
Date of reporting period: March 31, 2005
Item 1: SCHEDULE OF INVESTMENTS.
SCHEDULE OF INVESTMENTS
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March 31, 2005
(unaudited)
Prin. Amt.
or Shares Value (A)
- ---------- ------------
Stocks and Convertible Securities -- 97.7%
Consumer -- 16.2%
Consumer Discretionary -- 7.5%
BJ's Wholesale Club, Inc. (B) 500,000 $ 15,530,000
Brinker International Inc. (B) 400,000 14,488,000
Clear Channel Communications
Inc. 325,000 11,202,750
Comcast Corp. (B) 325,000 10,978,500
Gannett Co., Inc. 87,500 6,919,500
Newell Rubbermaid Inc. 515,000 11,299,100
Ryland Group Inc. 20,000 1,240,400
Target Corp. 460,000 23,009,200
------------
94,667,450
------------
Consumer Staples -- 8.7%
Bunge Ltd. 170,000 9,159,600
Coca-Cola Co. 200,000 8,334,000
Dean Foods Co. (B) 506,600 17,376,380
Del Monte Foods Co. (B) 1,035,000 11,229,750
PepsiCo, Inc. 440,000 23,333,200
Procter & Gamble Co. 340,000 18,020,000
Safeway, Inc. (B) 423,000 7,838,190
Unilever plc ADR 345,000 13,800,000
------------
109,091,120
------------
Energy -- 10.5%
BP plc ADR 270,000 16,848,000
ConocoPhillips 190,000 20,489,600
Exxon Mobil Corp. 130,000 7,748,000
Murphy Oil Corp. 160,300 15,826,419
Petroleum & Resources
Corporation (D) 1,985,996 57,256,265
Schlumberger Ltd. (C) 190,000 13,391,200
------------
131,559,484
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Financials -- 16.4%
Banking -- 11.7%
Bank of America Corp. 500,000 22,050,000
BankAtlantic Bancorp Inc. 220,000 3,828,000
Compass Bancshares Inc. 300,000 13,620,000
Fifth Third Bancorp 200,000 8,596,000
Investors Financial Services
Corp. 380,000 18,585,800
North Fork Bancorporation, Inc. 450,000 12,483,000
Provident Bankshares Corp. 335,021 11,042,292
Wachovia Corp. 370,000 18,836,700
Wells Fargo & Co. 400,000 23,920,000
Wilmington Trust Corp. 420,000 14,742,000
------------
147,703,792
------------
Insurance -- 4.7%
AMBAC Financial Group, Inc. 380,000 28,405,000
American International Group,
Inc. 550,000 30,475,500
------------
58,880,500
------------
Prin. Amt.
or Shares Value (A)
- ---------- ------------
Health Care -- 12.9%
Abbott Laboratories 350,000 $ 16,317,000
Bristol-Myers Squibb Co. 345,000 8,783,700
Enzon Pharmaceuticals, Inc.
(B) 67,088 683,627
Genentech, Inc. (B) 250,000 14,152,500
HCA Inc. 345,000 18,481,650
Johnson & Johnson 265,000 17,797,400
Laboratory Corp. of America
Holdings (B) 240,000 11,568,000
MedImmune, Inc. (B) 225,000 5,357,250
Medtronic Inc. 310,000 15,794,500
Pfizer Inc. 1,120,000 29,422,400
Wyeth Co. 325,000 13,708,500
Zimmer Holdings Inc. (B) 125,000 9,726,250
------------
161,792,777
------------
Industrials -- 11.8%
Canadian National Railway
Co. 135,000 8,546,850
Cintas Corp. 300,000 12,393,000
Donnelley (R.R.) & Sons Co. 300,000 9,486,000
Emerson Electric Co. 200,000 12,986,000
General Electric Co. 1,487,700 53,646,462
Illinois Tool Works Inc. 125,000 11,191,250
3M Co. 160,000 13,710,400
United Parcel Service, Inc. 145,000 10,547,300
United Technologies Corp. 155,000 15,757,300
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148,264,562
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8
SCHEDULE OF INVESTMENTS (CONTINUED)
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March 31, 2005
(unaudited)
Prin. Amt.
or Shares Value (A)
---------- ------------
Information Technology -- 13.5%
Communication Equipment -- 2.2%
Avaya Inc. (B) 600,000 $ 7,008,000
Corning Inc. (B) 1,170,000 13,022,100
Lucent Technologies Inc. (B) 2,900,000 7,975,000
------------
28,005,100
------------
Computer Related -- 9.4%
Automatic Data Processing Inc. 225,000 10,113,750
BEA Systems Inc. (B) 800,000 6,376,000
Cisco Systems, Inc. (B) 1,200,000 21,468,000
Dell Inc. (B) 400,000 15,368,000
DiamondCluster International
Inc. (B) 497,500 8,009,750
Microsoft Corp. 800,000 19,336,000
Oracle Corp. (B) 880,000 10,982,400
Sapient Corp. (B) 1,150,000 8,446,750
Siebel Systems Inc. (B) 800,000 7,304,000
Sun Microsystems Inc. (B) 410,000 1,656,400
Symantec Corp. (B) 400,000 8,532,000
------------
117,593,050
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Electronics -- 1.9%
Cree, Inc. (B) 500,000 10,875,000
Intel Corp. 310,000 7,201,300
Solectron Corp. (B) 1,850,000 6,419,500
------------
24,495,800
------------
Prin. Amt.
or Shares Value (A)
- ---------- --------------
Materials -- 5.9%
Air Products and Chemicals, Inc. 250,000 $ 15,822,500
du Pont (E.I.) de Nemours and Co. 400,000 20,496,000
Martin Marietta Materials, Inc. 141,600 7,918,272
Rohm & Haas Co. 400,000 19,200,000
Smurfit-Stone Container
Corp. (B) 650,000 10,055,500
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73,492,272
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Telecom Services -- 4.1%
Alltel Corp. 350,000 19,197,500
BellSouth Corp. 200,000 5,258,000
SBC Communications Inc. 595,000 14,095,550
Vodafone Group plc
ADS 492,613 13,083,801
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51,634,851
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Utilities -- 6.4%
Aqua America, Inc. 900,000 21,915,000
Black Hills Corp. 245,000 8,102,150
CINergy Corp. 300,000 12,156,000
Duke Energy Corp. 611,560 17,129,796
Keyspan Corp. 140,000 5,455,800
MDU Resources Group, Inc. 575,000 15,881,500
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80,640,246
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Total Stocks and Convertible Securities
(Cost $929,775,150) (D) $1,227,821,004
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9
SCHEDULE OF INVESTMENTS (CONTINUED)
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March 31, 2005
(unaudited)
Prin. Amt. Value (A)
----------- -----------
Short-Term Investments -- 1.8%
U.S. Government Obligations -- 1.4%
U.S. Treasury Bills,
2.50%, due 5/19/05 $17,500,000 $17,441,667
-----------
Commercial Paper -- 0.4%
AIG Funding Inc.,
2.77%, due 4/7/05 2,000,000 1,999,076
General Electric Capital Corp.,
2.73%, due 4/5/05 2,525,000 2,524,234
-----------
4,523,310
-----------
Total Short-Term Investments
(Cost $21,964,977) $21,964,977
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Value (A)
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Total Investments -- 99.5%
(Cost $951,740,127) $1,249,785,981
Cash, receivables and other
assets, less liabilities -- 0.5% 6,635,349
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Net Assets -- 100.0% $1,256,421,330
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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) Presently non-dividend paying.
(C) Non-controlled affiliate, a closed-end sector fund, registered as an
investment company under the Investment Company Act of 1940.
(D) The aggregate market value of stocks held in escrow at March 31, 2005
covering open call option contracts written was $21,492,530. In addition,
the aggregate market value of securities segregated by the Company's
custodian required to collateralize open put option contracts written was
$15,845,000.
10
SCHEDULE OF OUTSTANDING OPTION CONTRACTS
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March 31, 2005
(unaudited)
Contracts
(100 Contract
shares Strike Expiration Appreciation/
each) Security Price Date (Depreciation)
--------- ------------------------------------ ------ ---------- --------------
COVERED CALLS
100 AMBAC Financial Group, Inc. $ 90 May 05 $ 7,325
100 AMBAC Financial Group, Inc. 85 Aug 05 3,200
100 AMBAC Financial Group, Inc. 90 Aug 05 10,045
200 American International Group, Inc. 70 May 05 23,199
150 Brinker International Inc. 40 Jul 05 7,049
100 Brinker International Inc. 40 Oct 05 3,699
100 Canadian National Railway Co. 60 Apr 05 (27,050)
30 Canadian National Railway Co. 85 Jul 05 (3,190)
100 ConocoPhillips 130 Aug 05 (1,250)
100 Genentech, Inc. 70 Sep 05 (3,801)
100 HCA Inc. 47.5 May 05 (55,655)
100 HCA Inc. 50 May 05 (35,300)
150 HCA Inc. 47.5 Aug 05 (97,201)
250 HCA Inc. 50 Aug 05 (108,126)
100 Illinois Tool Works Inc. 100 Jun 05 9,199
100 Illinois Tool Works Inc. 105 Sep 05 4,200
100 Investors Financial Services Corp. 55 Jul 05 1,350
100 Investors Financial Services Corp. 60 Jul 05 6,200
100 Johnson & Johnson 65 Apr 05 (14,800)
150 Laboratory Corp. of America Holdings 55 Aug 05 7,799
100 Ryland Group Inc. 60 Apr 05 (12,301)
300 Symantec Corp. 32.5 Apr 05 15,919
250 Target Corp. 55 Apr 05 30,249
150 Target Corp. 60 Oct 05 8,399
100 3M Co. 90 Jul 05 (5,300)
100 United Technologies Corp. 110 May 05 9,700
100 United Technologies Corp. 110 Aug 05 (6,051)
100 United Technologies Corp. 115 Aug 05 1,970
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3,530 (220,523)
----- ---------
COLLATERALIZED PUTS
150 Automatic Data Processing Inc. 42.5 Apr 05 10,050
250 Automatic Data Processing Inc. 40 Aug 05 10,499
100 Bank of America Corp. 45 Aug 05 (8,301)
250 Bunge Ltd. 50 Apr 05 19,249
250 Bunge Ltd. 45 Jul 05 5,499
150 Bunge Ltd. 50 Jul 05 3,299
250 Cintas Corp. 40 May 05 6,009
200 Cree, Inc. 25 Jun 05 (61,851)
100 Exxon Mobil Corp. 55 Jul 05 (2,800)
250 Fifth Third Bancorp 45 May 05 (27,001)
100 Gannett Co., Inc. 75 Jul 05 200
150 Gannett Co., Inc. 70 Oct 05 (1,951)
85 Martin Marietta Materials, Inc. 45 Apr 05 6,120
200 Martin Marietta Materials, Inc. 45 Jul 05 14,772
10 Martin Marietta Materials, Inc. 50 Jul 05 420
100 Murphy Oil Corp. 70 Jul 05 10,418
100 United Parcel Service, Inc. 70 May 05 (800)
100 United Parcel Service, Inc. 70 Jul 05 (4,800)
100 United Parcel Service, Inc. 65 Oct 05 (1,300)
200 Zimmer Holdings Inc. 70 Jun 05 (601)
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3,095 (22,870)
----- ---------
$(243,393)
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11
CHANGES IN PORTFOLIO SECURITIES
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During the Three Months Ended March 31, 2005
(unaudited)
Shares
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Held
Additions Reductions March 31, 2005
--------- ---------- --------------
Automatic Data Processing Inc....... 225,000 225,000
Bank of America Corp................ 60,000 500,000
BankAtlantic Bancorp Inc............ 220,000 220,000
Bunge Ltd........................... 170,000 170,000
Cintas Corp......................... 300,000 300,000
Clear Channel Communications Inc.... 25,000 325,000
Comcast Corp........................ 325,000 325,000
Del Monte Foods Co.................. 1,035,000 1,035,000
Lucent Technologies Inc............. 80,000 2,900,000
Martin Marietta Materials, Inc...... 8,000 141,600
Murphy Oil Corp..................... 5,000 160,300
United Parcel Service, Inc.......... 65,000 145,000
American International Group Inc.... 188,675 550,000
BMC Software Inc.................... 70,000 --
Canadian National Railway Co........ 120,000 135,000
ConocoPhillips...................... 10,000 190,000
HCA Inc............................. 105,000 345,000
Investors Financial Services Corp... 20,000 380,000
Keyspan Corp........................ 196,100 140,000
Laboratory Corp. of America Holdings 10,000 240,000
Mattel, Inc......................... 575,000 --
Parker-Hannifin Corp................ 55,000 --
Ryland Group Inc.................... 200,000 20,000
Sun Microsystems Inc................ 105,000 410,000
United Technologies Corp............ 45,000 155,000
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12
(SELECTED) NOTES TO FINANCIAL STATEMENTS (Unaudited)
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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 (excluding purchased options) are valued at
amortized cost. Purchased and written options are valued at
the last quoted asked price.
Item 2. CONTROLS AND PROCEDURES.
Conclusions of principal officers concerning controls and
procedures:
(a) As of May 25, 2005, an evaluation was performed under
the supervision and with the participation of the officers
of The Adams Express Company (the "Company"), including the
principal executive officer ("PEO") and principal financial
officer ("PFO"), of the effectiveness of the Company's
disclosure controls and procedures. Based on that
evaluation, the Company's officers, including the PEO and
PFO, concluded that, as of May 25, 2005, the Company's
disclosure controls and procedures were reasonably designed
so as to ensure: (1) that information required to be
disclosed by the Company on Form N-Q is recorded, processed,
summarized and reported within the time periods specified by
the rules and forms of the Securities and Exchange
Commission; and (2) that material information relating to
the Company is made known to the PEO and PFO as appropriate
to allow timely decisions regarding required disclosure.
(b) There have been no significant changes in the Company's
internal control over financial reporting (as defined in
Rule 30 a-3(d) under the Investment Company Act of 1940 (17
CFR 270.30a-3(d)) that occurred during the Company's last
fiscal quarter that has materially affected, or is
reasonably likely to materially affect, the Company's
internal control over financial reporting.
Item 3. EXHIBITS.
The certifications of the principal executive officer and
principal financial officer pursuant to Rule 30a-2(a) under
the Investment Company Act of 1940 are attached hereto as
Form N-Q Certifications.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1934 and the Investment Company Act of 1940, the
registrant has duly caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.
THE ADAMS EXPRESS COMPANY
BY: /s/ Douglas G. Ober
-----------------------
Douglas G. Ober
Chief Executive Officer
Date: May 25, 2005
Pursuant to the requirements of the Securities Exchange Act
of 1934 and the Investment Company Act of 1940, this report
has been signed below by the following persons on behalf of
the registrant and in the capacities and on the dates
indicated.
BY: /s/ Douglas G. Ober
-----------------------
Douglas G. Ober
Chief Executive Officer
(Principal Executive Officer)
Date: May 25, 2005
BY: /s/ Maureen A. Jones
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Maureen A. Jones
Vice President, Chief Financial Officer and Treasurer
(Principal Financial Officer)
Date: May 25, 2005