BEARD CO. (THE) 
By OKLAHOMA CITY, Nov. 23 /PRNewswire-FirstCall/ -- The Beard Company (OTC Bulletin Board: BRCO) today reported net earnings of $3,713,000, or $0.18 per diluted share, for the nine months ended September 30, 2009, compared with net earnings of $2,072,000, or $0.10 per diluted share, in the corresponding period of the previous year. Revenues decreased 62% to $429,000 in the first nine months of 2009, versus $1,127,000 in the year-earlier period, reflecting the disposition of the Company's interest in the McElmo Dome CO2 Field.
For the three months ended September 30, 2009, the Company reported a net loss of $1,137,000, or $0.06 per share, versus a net loss of $466,000, or $0.03 per share, in the third quarter of 2008. The per-share amounts have been adjusted to reflect a 2-for-1 stock split that was effective November 2, 2009. Revenues decreased 79% to $79,000 in the most recent quarter, versus $376,000 in the prior-year period, again reflecting the McElmo Dome sale.
Operating results for the first nine months of 2009 benefited from pre-tax gains of (i) $4,888,000 attributable to the sale of the Company's remaining interest in the McElmo Dome CO2 Unit and (ii) $832,000 from the settlement of the Visa litigation. The first nine months of 2008 included a pre-tax gain of $3,338,000 from the sale of 35% of the Company's interest in McElmo Dome. Minor losses on the sale of assets of $10,000 and $1,000 were recorded in the third quarters of 2009 and 2008, respectively. Operating results for the third quarter of 2009 were significantly impacted by (i) a $508,000 loss reflected in losses from unconsolidated affiliates, whereas the third quarter of 2008 quarter included only a $54,000 loss from unconsolidated affiliates; and (ii) a $149,000 impairment of investments and other assets. Included in the losses from unconsolidated affiliates were (i) losses of $21,000 from the Company's investment in Beard Dilworth, LLC, an oil and gas venture in Oklahoma; (ii) losses of $498,000 from the Company's investment in Geohedral LLC, a mining project in Alaska; and (iii) $11,000 in earnings from the Company's investment in another partnership. The $149,000 impairment reduced the Company's investment in Geohedral to its share of the underlying equity in the partnership as of September 30, 2009.
Herb Mee, Jr., Beard's President, stated, "Our investment in Geohedral LLC increased the Company's third quarter loss by $647,000 due to SEC regulations governing mining operations that required the writedown of our investment in this subsidiary. In connection with Geohedral's current $2.5 million equity offering, the Company invested $590,000 to maintain its 23.16% interest in Geohedral, and another $441,000 to increase its interest in the partnership to 25.68%. Proceeds of the equity offering were used to fund the staking and filing of Geohedral's new mining claims in the Tanis Mesa area in southeastern Alaska that we announced on September 21 of this year. The funds were also utilized to defray the costs of drilling the holes, and sampling and assaying the results described in our September 21, 2009 news release."
"Based on the value of investment interests sold by Geohedral in the equity offering that will be completed in early December, the Company's 25.68% interest in Geohedral currently has an indicated fair market value of $4,499,000, versus a book value of $384,000 on our balance sheet at September 30, 2009. The current fair market value does not, in our opinion, adequately reflect the potential value of Beard's 25.68% share of Geohedral's mineral reserves, which we and Geohedral believe substantially exceeds the indicated fair market value of $4.5 million."
"While our reported earnings and revenues have been sharply reduced as a result of the McElmo Dome sale, it is important to remember that our current results do not reflect the Company's anticipated share of operating profits from the Dilworth Field, where water injection is slated to commence next month, and which is expected to make a significant contribution to our revenues and earnings beginning in the first quarter of 2010."
About The Beard Company
The Beard Company has shifted its focus to three areas, all involving natural resources, that management believes have high growth and/or above-average profit potential. The Company is involved in oil and gas activities; coal reclamation activities; 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; future trends in commodities prices; financial, potential geological or mechanical difficulties affecting Geohedral's or Beard Dilworth's planned activities; 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
Balance Sheets
September 30, 2009 (Unaudited) and December 31, 2008
September 30, December 31,
Assets 2009 2008
------ ------------- ------------
Current assets:
Cash and cash equivalents $1,276,000 $182,000
Accounts receivable, less allowance
for doubtful receivables of $42,000
in 2009 and $31,000 in 2008 162,000 185,000
Prepaid expenses and other assets 37,000 5,000
Assets of discontinued operations
held for resale 20,000 26,000
---------- ----------
Total current assets 1,495,000 398,000
---------- ----------
Restricted certificate of deposit 50,000 50,000
Investments and other assets 1,168,000 87,000
Property, plant and equipment, at cost 2,074,000 2,561,000
Less accumulated depreciation,
depletion and amortization 1,100,000 1,340,000
---------- ----------
Net property, plant and equipment 974,000 1,221,000
---------- ----------
Intangible assets, at cost 75,000 75,000
Less accumulated amortization 70,000 66,000
---------- ----------
Net intangible assets 5,000 9,000
---------- ----------
$3,692,000 $1,765,000
========== ==========
Liabilities and Shareholders' Equity
(Deficiency)
------------------------------------
Current liabilities:
Trade accounts payable $90,000 $97,000
Accrued expenses 192,000 431,000
Short-term debt - related entities - 57,000
Current maturities of long-term debt 45,000 895,000
Current maturities of long-term
debt - related entities - 390,000
Liabilities of discontinued
operations held for resale 51,000 65,000
---------- ----------
Total current liabilities 378,000 1,935,000
---------- ----------
Long-term debt less current maturities 397,000 420,000
Long-term debt - related entities 2,002,000 2,250,000
Other long-term liabilities 171,000 172,000
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 $.00033325 par value
per share; 30,000,000 authorized;
19,856,038 and 19,661,172 shares
issued and outstanding in 2009 and
2008, respectively 7,000 7,000
Capital in excess of par value 42,698,000 42,655,000
Accumulated deficit (40,265,000) (43,978,000)
Accumulated other comprehensive
income 24,000 25,000
---------- ----------
Total shareholders' equity
(deficiency) attributable to The
Beard Company 3,353,000 (402,000)
---------- ----------
Noncontrolling interests (2,609,000) (2,610,000)
---------- ----------
Total shareholders' equity
(deficiency) 744,000 (3,012,000)
---------- ----------
Commitments and contingencies
$3,692,000 $1,765,000
========== ==========
THE BEARD COMPANY
Results of Operations
(Unaudited)
For the Three Months For the Nine Months
Ended September 30, Ended September 30,
------------------------ --------------------------
2009 2008 2009 2008
----------- ---------- ---------- ----------
Revenues $79,000 $376,000 $429,000 $1,127,000
Expenses 557,000 532,000 1,522,000 1,457,000
----------- ---------- ---------- ----------
Operating loss (478,000) (156,000) (1,093,000) (330,000)
Other income
(expense) (712,000) (222,000) 4,841,000 2,720,000
----------- ---------- ---------- ----------
Earnings (loss)
from continuing
operations before
income taxes (1,190,000) (378,000) 3,748,000 2,390,000
Income tax benefit
(expense) 53,000 - (27,000) (25,000)
----------- ---------- ---------- ----------
Earnings (loss)
from continuing
operations (1,137,000) (378,000) 3,721,000 2,365,000
Loss from
discontinued
operations - (232,000) - (723,000)
----------- ---------- ---------- ----------
Net earnings
(loss) (1,137,000) (610,000) 3,721,000 1,642,000
Amounts attributable
to noncontrolling
interests
(Income) loss
from continuing
operations - - (8,000) 1,000
Loss from
discontinued
operations - 144,000 - 429,000
----------- ---------- ---------- ----------
Net earnings (loss)
attributable to
The Beard Company
common
shareholders $(1,137,000) $(466,000) $3,713,000 $2,072,000
=========== ========== ========== ==========
Net earnings
(loss) per
average common
share
outstanding(1):
Basic:
Earnings (loss)
from
continuing
operations $(0.06) $(0.02) $0.19 $0.18
Loss from
discontinued
operations $- $(0.01) $- $(0.02)
----------- ---------- ---------- ----------
Net earnings
(loss) $(0.06) $(0.03) $0.19 $0.16
=========== ========== ========== ==========
Net earnings (loss) per
average common
share outstanding(1):
Diluted:
Earnings (loss)
from
continuing
operations $(0.06) $(0.02) $0.18 $0.11
Loss from
discontinued
operations $- $(0.01) $- $(0.01)
----------- ---------- ---------- ----------
Net earnings
(loss) $(0.06) $(0.03) $0.18 $0.10
=========== ========== ========== ==========
Weighted average
common shares
outstanding(1):
Basic 19,827,000 14,039,000 19,817,000 13,068,000
=========== ========== ========== ==========
Diluted 19,827,000 14,039,000 21,028,000 20,884,000
=========== ========== ========== ==========
(1) All per share and common share amounts adjusted to reflect the
2-for-1 stock split effected November 2, 2009.
SOURCE The Beard Company
