The Beard Company Reports Second Quarter and First Half 2011 Operating Results
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 [email protected]
(Financial Highlights Follow)
The Beard Company and Subsidiaries |
|||||||||
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 |
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SOURCE The Beard Company
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