| Exhibit 99.1 |
THE BEARD COMPANY | News Release |
| |
Harvey Parkway | |
301 N.W. 63rd Street, Suite 400 | |
Oklahoma City, Oklahoma 73116 | |
For Immediate Release
THE BEARD COMPANY
REPORTS FIRST QUARTER OPERATING RESULTS
OKLAHOMA CITY, Oklahoma – May 21, 2009 -- The Beard Company (OTCBB: BRCO) today announced that it recorded a net loss attributable to common shareholders of $266,000, or $0.03 per share, for the first quarter of 2009, compared with net earnings attributable to common shareholders of $2,884,000, or $0.41 per diluted share, in the quarter ended March 31, 2008. Operating results for the first quarter of 2008 included an after-tax gain of $3,290,000, or $0.47 per diluted share, attributable to the sale of 35% of the Company’s interest in the McElmo Dome CO2 Unit. No such comparable gain on sale was recorded in the first quarter of 2009.
“Our first quarter results do not begin to reflect the potential of the strategic initiatives announced by the Company in recent months,” stated Herb Mee, Jr., President of The Beard Company. “On April 20, 2009, we announced the purchase by our subsidiary, Beard Dilworth, LLC (“BDLLC”), of the Dilworth Field in northern Oklahoma. BDLLC is in the process of raising a total of $7 million from private investors to finance the purchase of, and the enhanced oil recovery program planned for, the Dilworth Field.”
“Our second quarter results will reflect an after-tax gain of more than $4.8 million from the recently completed sale of our remaining 65% interest in the McElmo Dome Unit, thereby allowing our financial results for the first half of 2009 to comfortably exceed prior-year levels. As a result of this gain and the payoff of additional debt, we will have a significantly improved balance sheet as of June 30, 2009 that will include a positive shareholders’ equity for the first time in a number of years. We also hope that two of the projects we have under development in our Coal Segment will come to fruition this year and are extremely excited about the potential of our Geohedral LLC investment. We continue to look forward to major improvements in our operating results in coming years,” 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; coal reclamation activities; minerals exploration and development through its Geohedral investment, and e-commerce activities conducted through its starpay™ subsidiary.
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 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 or Beard Dilworth’s planned geological work programs; uncertainties surrounding estimates of mineralized material; and other risks associated with the Company’s business. 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
THE BEARD COMPANY AND SUBSIDIARIES |
Results of Operations |
(Unaudited) |
| For the Three Months
Ended March 31, |
| 2009 | | 2008 |
Revenues | $ 307,000 | | $ 378,000 |
Expenses | 495,000 | | 425,000 |
| | | |
Operating loss | (188,000) | | (47,000) |
Other income (expense) | (91,000) | | 3,127,000 |
| | | |
| | | |
Earnings (loss) from continuing operations
before income taxes | (279,000) | | 3,080,000 |
Income taxes | - | | (54,000) |
| | | |
Earnings (loss) from continuing operations | (279,000) | | 3,026,000 |
| | | |
Earnings (loss) from discontinued operations | 6,000 | | (258,000) |
| | | |
Net earnings (loss) | $ (273,000) | | $2,768,000 |
| | | |
Losses attributable to noncontrolling interests: | | | |
Continuing operations | 7,000 | | 7,000 |
Discontinued operations | - | | 109,000 |
| | | |
| | |
Net earnings (loss) attributable to The Beard Company common shareholders | $ (266,000) | | $2,884,000 |
| | | |
Net earnings (loss) per average common share outstanding: | | |
Basic: | | | |
Earnings (loss) from continuing operations | $ (0.03) | | $ 0.49 |
Loss from discontinued operations | 0.00 | | (0.02) |
Net earnings (loss) | $ (0.03) | | $ 0.47 |
| | | |
Diluted: | | | |
Earnings (loss) from continuing operations | $ (0.03) | | $ 0.42 |
Loss from discontinued operations | 0.00 | | (0.02) |
Net earnings (loss) | $ (0.03) | | $ 0.41 |
| | | |
Weighted average common shares outstanding: | | | |
Basic | 9,900,000 | | 6,162,000 |
Diluted | 9,900,000 | | 6,989,000 |
_________ # # # # # |
THE BEARD COMPANY AND SUBSIDIARIES |
Balance Sheets |
March 31, 2009 (Unaudited) and December 31, 2008 |
| | | | | |
| | | March 31, | | December 31, |
| | Assets | 2009 | | 2008 |
Current assets: | | | |
| Cash and cash equivalents | $ 115,000 | | $ 182,000 |
| Accounts receivable, less allowance for doubtful | | |
| receivables of $31,000 in 2009 and 2008 | 160,000 | | 185,000 |
| Prepaid expenses and other assets | 7,000 | | 5,000 |
| Assets of discontinued operations held for resale | 21,000 | | 26,000 |
| | Total current assets | 303,000 | | 398,000 |
| | | | | |
Restricted certificate of deposit | 50,000 | | 50,000 |
| | | | | |
Investments and other assets | 94,000 | | 87,000 |
| | | | | |
Property, plant and equipment, at cost | 2,554,000 | | 2,561,000 |
| Less accumulated depreciation, depletion and
amortization | 1,336,000 | | 1,340,000 |
| | Net property, plant and equipment | 1,218,000 | | 1,221,000 |
| | | | | |
Intangible assets, at cost | 75,000 | | 75,000 |
| Less accumulated amortization | 68,000 | | 66,000 |
| | Net intangible assets | 7,000 | | 9,000 |
| | | | | |
| | | $ 1,672,000 | | $ 1,765,000 |
| | | | | |
| | Liabilities and Shareholders' Equity (Deficiency) | | |
| | | | | |
Current liabilities: | | | |
| Trade accounts payable | $ 168,000 | | $ 97,000 |
| Accrued expenses | 322,000 | | 431,000 |
| Short-term debt | 95,000 | | - |
| Short-term debt - related entities | 80,000 | | 57,000 |
| Current maturities of long-term debt | 996,000 | | 895,000 |
| Current maturities of long-term debt - related entities | 390,000 | | 390,000 |
| Liabilities of discontinued operations held for resale | 51,000 | | 65,000 |
| | Total current liabilities | 2,102,000 | | 1,935,000 |
| | | | | |
Long-term debt less current maturities | 420,000 | | 420,000 |
| | | | | |
Long-term debt - related entities | 2,250,000 | | 2,250,000 |
| | | | | |
Other long-term liabilities | 169,000 | | 172,000 |
| | | | | |
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; 9,912,457 and 9,830,586 shares | | |
| issued and outstanding in 2009 and 2008, respectively | 7,000 | | 7,000 |
| Capital in excess of par value | 42,672,000 | | 42,655,000 |
| Accumulated deficit | (44,053,000) | | (43,787,000) |
| Accumulated other comprehensive income | 24,000 | | 25,000 |
| Total The Beard Company shareholders' equity
(deficiency) | (461,000) | | (211,000) |
| Noncontrolling interests | (2,808,000) | | (2,801,000) |
| | Total shareholders’ equity (deficiency) | (3,269,000) | | (3,012,000) |
| | | | | |
| TOTAL LIABILITIES AND SHAREHOLDERS’
EQUITY | $ 1,672,000 | | $ 1,765,000 |
