The Beard Company Reports First Quarter 2011 Operating Results
OKLAHOMA CITY, July 21, 2011 /PRNewswire/ -- The Beard Company (Pink Sheets: BRCO) ("Beard" or the "Company") today announced a loss from continuing operations of $422,000, or $0.02 per diluted share, for the 2011 first quarter compared with a loss from continuing operations of $666,000, or $0.03 per diluted share, in the comparable 2010 period. The net loss attributable to common shareholders, after losses attributable to discontinued operations, totaled $437,000, or $0.02 per diluted share, for the first quarter of 2011, compared with a net loss attributable to common shareholders of $804,000, or $0.04 per share, in the quarter ended March 31, 2010. Revenues in the first quarter of 2011 increased 89% to $264,000 from $140,000 a year earlier. Oil and gas revenues increased 94% to $258,000 in 2011, compared with $133,000 in the year earlier period.
"As a result of the 2011 first quarter loss, our shareholders' deficiency increased from ($2,743,000) at year-end 2010 to ($3,082,000) at March 31, 2011," stated Herb Mee, Jr., Beard's President. "Our working capital also decreased, going from ($2,511,000) at year-end 2010 to ($2,888,000) at March 31, 2011. Neither our 2010 financials nor our financials for the 2011 first quarter were audited. If they had been audited, our auditors would undoubtedly have included a 'going concern' qualification in their opinion."
"On the bright side, we are pleased that the Restructuring Plan the Company implemented in December of 2010 is already reflecting real results. Operations in the first quarter of 2011 reflected positive improvement over the comparable 2010 quarter. This marks the second consecutive quarter where our operating loss has decreased and results from continuing operations have improved."
"We encountered a number of operational problems in the Dilworth Field during the first four months of 2011. During March and April of 2011 we finalized $3,000,000 of new financings that enabled us to lower the lease operating expenses in the Field significantly. We took advantage of the delays by repairing and replacing various electrical infrastructure components and drilling a replacement salt water disposal well. We believe we have now resolved the primary issues responsible for our runtime inconsistencies. We feel this has, for the first time, positioned us to aggressively reduce bottom-hole pressures, which should allow us to achieve our ultimate goal of matrix production," Mee concluded.
About The Beard Company
The Beard Company creates, acquires, and/or invests in businesses, primarily related to natural resources, that management believes have high growth and/or above-average profit potential and can enhance shareholder value. The Company is involved in oil and gas activities and in minerals exploration and development through its Geohedral investment.
The Company is headquartered in Oklahoma City and its common stock trades under the symbol "BRCO".
Forward-Looking Statements
This document may include statements that constitute "forward-looking" statements, usually containing the words "believe", "estimate", "project", "expect", "anticipate", or similar expressions. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, the Company's ability to secure capital to fund current operations; future trends in commodities prices; financial, geological or mechanical difficulties affecting the Company's or Geohedral's planned geological work programs; uncertainties surrounding estimates of mineralized material; and other risks associated with our business. By making these forward-looking statements, we undertake no obligation to update these statements for revisions or changes in the future.
For Additional Information, Please Contact:
Herb Mee, Jr., President, at (405) 842-2333 or via email at [email protected]
(Financial Highlights Follow)
THE BEARD COMPANY AND SUBSIDIARIES |
|||||
Statements of Operating Results |
|||||
(Unaudited) |
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For the Three Months Ended |
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March 31, |
March 31, |
||||
2011 |
2010 |
||||
Revenues: |
|||||
Oil & gas |
258,000 |
133,000 |
|||
Other |
6,000 |
7,000 |
|||
264,000 |
140,000 |
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Expenses: |
|||||
Oil & gas |
302,000 |
166,000 |
|||
Other |
4,000 |
4,000 |
|||
Selling, general and administrative |
298,000 |
477,000 |
|||
Depreciation, depletion and amortization |
22,000 |
16,000 |
|||
626,000 |
663,000 |
||||
Operating profit (loss): |
|||||
Oil & gas |
(59,000) |
(43,000) |
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Other, primarily corporate |
(303,000) |
(480,000) |
|||
(362,000) |
(523,000) |
||||
Other income (expense): |
|||||
Interest income |
44,000 |
7,000 |
|||
Interest expense |
(99,000) |
(58,000) |
|||
Equity in net earnings of unconsolidated affiliates |
(5,000) |
(64,000) |
|||
Loss from continuing operations before income taxes |
(422,000) |
(638,000) |
|||
Income tax benefit (expense) |
- |
(28,000) |
|||
Loss from continuing operations |
(422,000) |
(666,000) |
|||
Loss from discontinued operations |
(15,000) |
(138,000) |
|||
Net loss |
(437,000) |
(804,000) |
|||
Less: Gain attributable to noncontrolling interests |
- |
- |
|||
Net loss attributable to |
|||||
The Beard Company common shareholders |
$ (437,000) |
$ (804,000) |
|||
Net loss per average common share outstanding: |
|||||
Basic and Diluted |
|||||
Loss from continuing operations |
$ (0.02) |
$ (0.03) |
|||
Loss from discontinued operations |
(0.00) |
(0.01) |
|||
Net loss |
$ (0.02) |
$ (0.04) |
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Weighted average common shares outstanding: |
|||||
Basic |
20,106,000 |
20,104,000 |
|||
Diluted |
20,106,000 |
20,104,000 |
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THE BEARD COMPANY AND SUBSIDIARIES |
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Balance Sheets |
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March 31, 2011 (Unaudited) and December 31, 2010 (Unaudited) |
||||||
March 31, |
December 31, |
|||||
Assets |
2011 |
2010 |
||||
Current assets: |
||||||
Cash and cash equivalents |
$ 813,000 |
$ 98,000 |
||||
Accounts receivable, less allowance for doubtful |
||||||
receivables of $68,000 in 2011 and 2010 |
4,658,000 |
1,400,000 |
||||
Inventories |
87,000 |
63,000 |
||||
Prepaid expenses and other assets |
509,000 |
78,000 |
||||
Assets to be disposed |
709,000 |
750,000 |
||||
Total current assets |
6,776,000 |
2,389,000 |
||||
Restricted certificate of deposit |
50,000 |
50,000 |
||||
Note and other long-term receivables |
208,000 |
225,000 |
||||
Investments and other assets |
89,000 |
89,000 |
||||
Property, plant and equipment, at cost, based on the successful |
||||||
efforts method of accounting for oil and gas properties |
2,527,000 |
2,423,000 |
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Less accumulated depreciation, depletion and amortization |
438,000 |
425,000 |
||||
Net property, plant and equipment |
2,089,000 |
1,998,000 |
||||
Intangible assets, at cost |
38,000 |
38,000 |
||||
Less accumulated amortization |
36,000 |
32,000 |
||||
Net intangible assets |
2,000 |
6,000 |
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$ 9,214,000 |
$ 4,757,000 |
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Liabilities and Shareholders' Equity (Deficiency) |
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Current liabilities: |
||||||
Trade accounts payable |
$ 1,675,000 |
$ 2,624,000 |
||||
Accrued expenses |
3,157,000 |
184,000 |
||||
Short-term debt |
3,700,000 |
1,075,000 |
||||
Short-term debt - related parties |
405,000 |
272,000 |
||||
Current maturities of long-term debt |
82,000 |
81,000 |
||||
Liabilities to be disposed |
645,000 |
664,000 |
||||
Total current liabilities |
9,664,000 |
4,900,000 |
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Long-term debt less current maturities |
215,000 |
236,000 |
||||
Long-term debt - related entities |
2,104,000 |
2,054,000 |
||||
Other long-term liabilities |
313,000 |
310,000 |
||||
Shareholders' equity (deficiency): |
||||||
Convertible preferred stock of $100 stated value; |
||||||
5,000,000 shares authorized; 27,838 shares issued |
||||||
and outstanding |
889,000 |
889,000 |
||||
Common stock of $.00033325 par value per share; |
||||||
30,000,000 authorized; 20,407,089 and 20,103,889 |
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issued and outstanding in 2011 and 2010, respectively |
7,000 |
7,000 |
||||
Capital in excess of par value |
42,999,000 |
42,901,000 |
||||
Accumulated deficit |
(44,350,000) |
(43,913,000) |
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Accumulated other comprehensive income |
24,000 |
24,000 |
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Total shareholders' equity (deficiency) attributable to The Beard Company |
(431,000) |
(92,000) |
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Noncontrolling interests |
(2,651,000) |
(2,651,000) |
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Total shareholders' equity (deficiency) |
(3,082,000) |
(2,743,000) |
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Commitments and contingencies |
||||||
$ 9,214,000 |
$ 4,757,000 |
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SOURCE The Beard Company
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