Exhibit 99.1
| News Release |
THE BEARD COMPANY | |
Harvey Parkway | |
301 N.W. 63rd Street, Suite 400 | |
Oklahoma City, Oklahoma 73116 | |
For Immediate Release | |
THE BEARD COMPANY
ANNOUNCES 2008 RESULTS
OKLAHOMA CITY, Oklahoma -- April 16, 2009 -- The Beard Company (OTCBB: BRCO) today announced its financial results for 2008.
For the twelve months ended December 31, 2008, the Company reported net earnings from continuing operations of $3,311,000, or $0.32 per diluted share, compared with a net loss from continuing operations of ($953,000), or ($0.16) per share, in the year ended December 31, 2007. Total net income, including losses from discontinued operations, improved to $2,364,000, or $0.23 per diluted share, in 2008, versus a net loss of ($2,026,000), or ($0.34) per share, in 2007. Revenues increased to $1,505,000 in 2008, compared with $1,467,000 in the previous year.
“The improvement in our net earnings during 2008 was primarily attributable to (1) a $1,671,000 gain on the disposition of our controlling interest in two subsidiaries that conducted fertilizer manufacturing and sales operations in China and (2) a $3,329,000 gain on the disposition of assets, primarily related to the sale of 35% of our interest in the McElmo Dome CO2 Production Unit,” noted Herb Mee, Jr., President of The Beard Company. “In 2007 there were no comparable dispositions, and we reported a gain of only $216,000 from the sale of assets.”
“We believe that our Company is in the early stages of a major turnaround. As the result of the disposition of our China Segment, the conversion of more than $3,650,000 of convertible notes into common stock, and the sale of 35% of our CO2 production, we added $6,173,000 to shareholders’ equity and reduced our total debt by more than $5,200,000 in 2008. We are shifting our focus primarily to coal reclamation, oil and gas development, and minerals exploration and development. We expect to have a major long-term project underway in our Coal Segment within the next few months and also anticipate that we will be successful in raising the financing to undertake a major enhanced oil recovery project in northern Oklahoma within the next 90 days,” Mee concluded.
About The Beard Company
The Beard Company creates, acquires, and/or invests in businesses that management believes have high growth and/or above-average profit potential and can enhance shareholder value. The Company is currently involved in carbon dioxide (CO2) gas production; oil and gas activities; coal reclamation activities; e-commerce activities conducted through its starpay™ subsidiary; and minerals exploration and development through its Geohedral investment.
The Company is headquartered in Oklahoma City and its common stock trades on the OTC Bulletin Board 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 lack of profitability in recent years; the ability to service outstanding debt and secure capital to fund operations; the ability to negotiate and execute contracts in connection with the Company’s coal reclamation activities; the outcome of a lawsuit against Visa; future trends in commodities prices; financial, geological or mechanical difficulties affecting Geohedral’s planned geological work programs; uncertainties surrounding estimates of mineralized material; and other risks detailed in Beard’s filings with the U.S. Securities and Exchange Commission. By making these forward-looking statements, Beard undertakes 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
or
RJ Falkner & Company, Inc., Investor Relations Counsel, at (800) 377-9893 or via email at info@rjfalkner.com
(Financial Highlights Follow)
THE BEARD COMPANY |
| | | |
Results of Operations | | | |
| For the Three Months | | For the Year |
| Ended December 31, | | Ended December 31, |
| (Unaudited) | | (Audited) |
| 2008 | | 2007 | | 2008 | 2007 |
| | | | | | |
Revenues | $ 378,000 | | $ 465,000 | | $ 1,505,000 | $ 1,467,000 |
Expenses | 582,000 | | 507,000 | | 2,039,000 | 1,845,000 |
| | | | | | |
Operating loss | (204,000) | | (42,000) | | (534,000) | (378,000) |
Other income (expense) | 1,150,000 | | (46,000) | | 3,870,000 | (576,000) |
| | | | | | |
Earnings (loss) before income taxes | 946,000 | | (88,000) | | 3,336,000 | (954,000) |
Income tax benefit (expense) | - | | - | | (25,000) | 1,000 |
| | | | | | |
Earnings (loss) from continuing operations | 946,000 | | (88,000) | | 3,311,000 | (953,000) |
| | | | | | |
Loss from discontinued operations | (224,000) | | (308,000) | | (947,000) | (1,073,000) |
| | | | | | |
Net earnings (loss) | $ 722,000 | | $ (396,000) | | $ 2,364,000 | $ (2,026,000) |
| | | | | | |
Net earnings (loss) per average common share outstanding: | | | | | | |
Basic: | | | | | | |
Earnings (loss) from continuing operations. | $ 0.10 | | $ (0.01) | | $ 0.46 | $ (0.16) |
Loss from discontinued operations | $ (0.02) | | $ (0.05) | | $ (0.13) | $ (0.18) |
Net earnings (loss) | $ 0.08 | | $ (0.06) | | $ 0.33 | $ (0.34) |
| | | | | | |
Diluted: | | | | | | |
Earnings (loss) from continuing operations. | $ 0.09 | | $ (0.01) | | $ 0.32 | $ (0.16) |
Loss from discontinued operations | $ (0.02) | | $ (0.05) | | $ (0.09) | $ (0.18) |
Net earnings (loss) | $ 0.07 | | $ (0.06) | | $ 0.23 | $ (0.34) |
| | | | | | |
Weighted average common shares outstanding: | | | | | | |
Basic | 9,418,000 | | 5,977,000 | | 7,259,000 | 5,896,000 |
| | | | | | |
Diluted | 10,466,000 | | 5,977,000 | | 10,453,000 | 5,896,000 |
_________ | | | | | | |
| | | | | | | | | | |
THE BEARD COMPANY AND SUBSIDIARIES |
Balance Sheets |
| | | | | |
| | | December 31, | | December 31, |
| | Assets | 2008 | | 2007 |
Current assets: | | | |
| Cash and cash equivalents | $ 182,000 | | $ 61,000 |
| Accounts receivable, less allowance for doubtful | | |
| receivables of $31,000 in 2008 and 2007 | 185,000 | | 630,000 |
| Prepaid expenses and other assets | 5,000 | | 7,000 |
| Current maturities of notes receivable | - | | 35,000 |
| Assets of discontinued operations held for resale | 26,000 | | 487,000 |
| | Total current assets | 398,000 | | 1,220,000 |
| | | | | |
Restricted certificate of deposit | 50,000 | | 50,000 |
| | | | | |
Investments and other assets | 87,000 | | 66,000 |
| | | | | |
Property, plant and equipment, at cost | 2,561,000 | | 2,306,000 |
| Less accumulated depreciation, depletion and amortization | 1,340,000 | | 1,445,000 |
| | Net property, plant and equipment | 1,221,000 | | 861,000 |
| | | | | |
Intangible assets, at cost | 75,000 | | 518,000 |
| Less accumulated amortization | 66,000 | | 381,000 |
| | Net intangible assets | 9,000 | | 137,000 |
| | | | | |
| | | $ 1,765,000 | | $ 2,334,000 |
| | | | | |
| | Liabilities and Shareholders' Equity (Deficiency) | | |
| | | | | |
Current liabilities: | | | |
| Trade accounts payable | $ 97,000 | | $ 53,000 |
| Accrued expenses | 431,000 | | 440,000 |
| Short-term debt | - | | 45,000 |
| Short-term debt - related entities | 57,000 | | 158,000 |
| Current maturities of long-term debt | 895,000 | | 1,672,000 |
| Current maturities of long-term debt - related entities | 390,000 | | 360,000 |
| Liabilities of discontinued operations held for resale | 65,000 | | 1,651,000 |
| | Total current liabilities | 1,935,000 | | 4,379,000 |
| | | | | |
Long-term debt less current maturities | 420,000 | | 977,000 |
| | | | | |
Long-term debt - related entities | 2,250,000 | | 6,012,000 |
| | | | | |
Other long-term liabilities | 172,000 | | 151,000 |
| | | | | |
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 $.0006665 par value per share; | | |
| 15,000,000 authorized; 9,830,586 and 5,657,715 shares | | |
| issued and outstanding in 2008 and 2007, respectively | 7,000 | | 4,000 |
| Capital in excess of par value | 42,655,000 | | 38,823,000 |
| Accumulated deficit | (46,590,000) | | (48,954,000) |
| Accumulated other comprehensive loss | 27,000 | | 53,000 |
| | Total shareholders' equity (deficiency) | (3,012,000) | | (9,185,000) |
| | | | | |
Commitments and contingencies | | | |
| | | $ 1,765,000 | | $ 2,334,000 |
