The Beard Company Reports Second Quarter and First Half 2011 Operating Results

Aug 22, 2011, 11:00 ET from The Beard Company

OKLAHOMA CITY, Aug. 22, 2011 /PRNewswire/ -- The Beard Company (Pink Sheets: BRCO) ("Beard" or the "Company") today reported its operating results for the second quarter and first half of 2011.

For the quarter ended June 30, 2011, the Company reported a net loss attributable to common shareholders of ($447,000), or ($0.02) per diluted share, for the 2011 second quarter compared with a net loss attributable to common shareholders of ($933,000), or ($0.05) per diluted share, in the second quarter of 2010.  The Company is making progress on its Restructuring Plan.  Oil and gas revenues increased to $344,000 in the most recent quarter, versus $97,000 in the prior-year period.

The Company reported a net loss attributable to common shareholders of ($884,000), or ($0.04) per share, for the six months ended June 30, 2011, compared with a net loss attributable to common shareholders of ($1,747,000), or ($0.09) per diluted share, in the corresponding period of the previous year.  Oil and gas revenues in the first half of 2011 totaled $602,000 versus $230,000 in the six months ended June 30, 2010.

Dilworth Field.  "We remain optimistic about the ability of the Dilworth Field enhanced oil recovery project in Oklahoma to have a positive impact on our operating and financial results.  June was the first month since we purchased the Field in which the Oil and Gas Segment has generated a meaningful operating profit.  Operations in the second quarter and six months reflected positive improvement over the year earlier periods," stated Herb Mee, Jr., President of The Beard Company.  

"The Company completed $3 million of financings during March and April which enabled us to purchase equipment that had previously been leased from the equipment manufacturers.  As a result, we were able to reduce lease operating expenses in the Field by approximately $204,000 per month ($36,000 per month to the Company). We continued to encounter delays caused by adverse weather conditions and equipment problems in the second quarter.  We have taken a number of steps to reduce the effect of both weather and mechanical problems on our operations, and feel that such problems will have a diminished effect on our operating results in the future."

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.

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 hmee@beardco.com

(Financial Highlights Follow)

The Beard Company and Subsidiaries Statements of Operations (Unaudited)

For the three months

Ended June 30

For the six months

Ended June 30

2011

2010

2011

2010

Revenues:

Oil & gas

$344,000

$97,000

$602,000

$230,000

Other

-

7,000

6,000

14,000

344,000

104,000

608,000

244,000

Expenses:

Oil & gas

108,000

177,000

410,000

343,000

Other

(4,000)

4,000

-

8,000

Selling, general and administrative

386,000

541,000

684,000

1,018,000

Depreciation, depletion and amortization

55,000

22,000

77,000

38,000

545,000

744,000

1,171,000

1,407,000

Operating profit (loss):

Oil & gas

236,000

(80,000)

192,000

(113,000)

Other, primarily corporate

(438,000)

(550,000)

(756,000)

(1,050,000)

(202,000)

(630,000)

(564,000)

(1,163,000)

Other income (expense):

Interest income

8,000

6,000

52,000

13,000

Interest expense

(235,000)

(84,000)

(334,000)

(142,000)

Equity in net loss of unconsolidated affiliates

5,000

(86,000)

-

(150,000)

Gain on sale of assets

9,000

-

9,000

-

Other

(32,000)

1,000

(32,000)

1,000

Loss from continuing operations

      before income taxes

(447,000)

(793,000)

(869,000)

(1,441,000)

Income tax benefit (expense)

-

-

-

(28,000)

Loss from continuing operations

(447,000)

(793,000)

(869,000)

(1,469,000)

Loss from discontinued operations

-

(140,000)

(15,000)

(278,000)

Net loss

(447,000)

(933,000)

(884,000)

(1,747,000)

Amounts attributable to noncontrolling interests

-

-

-

-

Net loss attributable to The Beard

        Company common shareholders

$   (447,000)

$    (933,000)

$    (884,000)

$    (1,747,000)

Net loss per average common share outstanding:

 Basic and Diluted:

   Loss from continuing operations

$           (0.02)

$             (0.04)

$           (0.04)

$             (0.07)

   Loss from discontinued operations

-

$             (0.01)

-

$             (0.02)

   Net loss  

$           (0.02)

$             (0.05)

$           (0.04)

$             (0.09)

Weighted average common shares outstanding:

    Basic.........

20,518,000

20,104,000

20,314,000

20,104,000

    Diluted........

20,518,000

20,104,000

20,314,000

20,104,000

_______

THE BEARD COMPANY AND SUBSIDIARIES

Balance Sheets

June 30, 2011 (Unaudited) and December 31, 2010 (Unaudited)

June 30,

December 31,

Assets

2011

2010

Current assets:

Cash and cash equivalents

$    151,000

$       98,000

Accounts receivable, less allowance for doubtful

 receivables of $39,000 in 2011 and $68,000 in 2010

2,424,000

1,400,000

Inventories

87,000

63,000

Prepaid expense and other assets

10,000

78,000

Current maturities of notes receivable

-

-

Assets of discontinued operations held for resale

180,000

750,000

Total current assets

2,852,000

2,389,000

Restricted certificate of deposit

50,000

50,000

Notes and other long-term receivables

292,000

225,000

Investments and other assets

2,669,000

89,000

Property, plant and equipment, at cost

3,105,000

2,423,000

Less accumulated depreciation, depletion and amortization

853,000

425,000

Net property, plant and equipment

2,252,000

1,998,000

Intangible assets, at cost

895,000

38,000

Less accumulated amortization

512,000

32,000

Net intangible assets

383,000

6,000

$  8,498,000

$  4,757,000

Liabilities and Shareholders' Equity (Deficiency)

Current liabilities:

Trade accounts payable

$  1,933,000

$  2,624,000

Accrued expense and other liabilities

186,000

184,000

Short-term debt - related parties

2,154,000

272,000

Short-term debt

3,993,000

1,075,000

Current maturities of long-term debt

82,000

81,000

Liabilities of discontinued operations held for resale

176,000

664,000

Total current liabilities

8,524,000

4,900,000

Long-term debt less current maturities

622,000

236,000

Long-term debt - related entities

-

2,054,000

Other long-term liabilities

2,866,000

310,000

Minority interest in consolidated subsidiaries

-

-

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

  shares authorized; 20,557,089 and 20,103,889 shares issued

  and outstanding in 2011 and 2010

7,000

7,000

Capital in excess of par value

43,040,000

42,901,000

Accumulated deficit

(44,797,000)

(43,913,000)

Accumulated other comprehensive income (loss)

24,000

24,000

Total shareholders' equity (deficiency) attributable

  to The Beard Company

(863,000)

(92,000)

Noncontrolling interests

(2,651,000)

(2,651,000)

Total shareholders' equity (deficiency)

(3,514,000)

(2,743,000)

Commitments and contingencies

-

-

$  8,498,000

$  4,757,000

SOURCE The Beard Company