SOURCE: The Beard Company

April 18, 2006 15:42 ET

/ CORRECTION - The Beard Company Announces 2005 Results

OKLAHOMA CITY, OK -- (MARKET WIRE) -- April 18, 2006 -- In the news release, "The Beard Company Announces 2005 Results," issued earlier today by The Beard Company (OTC BB: BRCO), please be advised that the headers in the financial table only included partial information. Complete corrected text with full table headers follows.

The Beard Company Announces 2005 Results

OKLAHOMA CITY, OK -- 04/18/2006 -- The Beard Company (OTC BB: BRCO) today announced its financial results for 2005. The Company reported a net loss of $2,160,000, or $0.37 per share, on revenues of $1,379,000 in 2005, compared with net earnings of $937,000, or $0.18 per share, on revenues of $972,000, in 2004. On a diluted basis, 2005 reflected a net loss of $0.37 per common share versus net earnings of $0.14 per share in 2004.

Herb Mee, Jr., President, stated: "The results for the current year are somewhat of an anomaly. 2005 reflected an operating loss of $1,717,000, virtually flat when compared with the 2004 operating loss of $1,700,000. The loss from continuing operations in 2005 totaled $2,302,000 versus earnings from continuing operations of $937,000 in 2004. A $2,943,000 gain on the McElmo Dome Settlement in 2004 accounted for most of the $3,239,000 difference. Increased interest expense of $305,000 in 2005 accounted for the rest of the difference."

"Our 2005 results reflect the delay in getting our Pinnacle coal project started and a slower buildup of sales at our China fertilizer plant than originally projected," Mee continued. "Construction of the Pinnacle Project is moving ahead rapidly, and pictures of the site can now be viewed on our web site. We expect to have initial coal sales in June and anticipate that the China plant will become profitable in the 2006 third quarter. In short, we believe there are better days ahead."(A)

Our common stock is traded on the OTC Bulletin Board under the symbol: BRCO. Our operations consist principally of coal reclamation activities, carbon dioxide (CO2) gas production, the construction and operation of fertilizer plants in China, and our e-commerce activities aimed at developing business opportunities to leverage starpay™'s intellectual property portfolio of Internet payment methods and security technologies.

                        THE BEARD COMPANY
                      Results of Operations

                      For the Three Months             For the Year
                        Ended December 31,           Ended December 31,
                           (Unaudited)                  (Audited)
                    ------------------------------------------------------
                        2005          2004          2005          2004
                    ------------  ------------  ------------  ------------

Revenues            $    465,000  $    350,000  $  1,379,000  $    972,000
Expenses               1,073,000       849,000     3,096,000     2,672,000
                    ------------  ------------  ------------  ------------

Operating loss          (608,000)     (499,000)   (1,717,000)   (1,700,000)
Other income
 (expense)              (225,000)      (66,000)     (550,000)    2,755,000
                    ------------  ------------  ------------  ------------

Earnings (loss)
 before income
 taxes                  (833,000)     (565,000)   (2,267,000)    1,055,000
Income tax benefit
 (expense)                (1,000)       18,000       (35,000)     (118,000)
                    ------------  ------------  ------------  ------------

Earnings (loss)
 from continuing
 operations             (834,000)     (547,000)   (2,302,000)      937,000

Earnings (loss)
 from discontinued
 operations               (2,000)       (4,000)      142,000             -
                    ------------  ------------  ------------  ------------

Net earnings (loss) ($   836,000) ($   551,000) ($ 2,160,000) $    937,000
                    ============  ============  ============  ============

Net earnings (loss)
 per average common
 share outstanding:
    Basic (B):
    Earnings (loss)
     from
     continuing
     operations     $      (0.14) $      (0.10) $      (0.39) $       0.18
    Earnings (loss)
     from
     discontinued
     operations     $      (0.00) $      (0.00) $       0.02  $          -
                    ------------  ------------  ------------  ------------
    Net earnings
     (loss)         $      (0.14) $      (0.10) $      (0.37) $       0.18
                    ============  ============  ============  ============

    Diluted (B):
    Earnings (loss)
     from
     continuing
     operations     $      (0.14) $      (0.10) $      (0.39) $       0.14
    Earnings from
     discontinued
     operations     $      (0.00) $      (0.00) $       0.02  $          -
                    ------------  ------------  ------------  ------------
    Net earnings
     (loss)         $      (0.14) $      (0.10) $      (0.37) $       0.14
                    ============  ============  ============  ============

Weighted average
 common shares
 outstanding:
     Basic             5,757,000     5,498,000     5,888,000     5,215,000
                    ============  ============  ============  ============
     Diluted           5,757,000     5,498,000     5,888,000     6,478,000
                    ============  ============  ============  ============

(A) Statements regarding future profitability and operations, including
 the timing of those activities, are "forward-looking statements" within
 the meaning of the Private Securities Litigation Reform Act. The
 statements involve risks that could significantly impact The Beard
 Company. These risks include, but are not limited to, adverse general
 economic conditions, unexpected costs or delays or other unexpected
 events, as well as other risks discussed in detail in our filings with
 the Securities and Exchange Commission. We assume no duty to update or
 revise our forward-looking statements based on changes in internal
 estimates or otherwise.
(B) Basic earnings (loss) per share are computed by dividing earnings
 (loss) attributable to common shareholders by the weighted average number
 of common shares outstanding for the period. Diluted earnings (loss) per
 common share reflect the potential dilution that could occur if our
 outstanding stock options and warrants were exercised (calculated using
 the treasury stock method) and if our preferred stock was converted to
 common stock.

Contact Information

  • FOR FURTHER INFORMATION CONTACT:

    Herb Mee, Jr.
    President
    THE BEARD COMPANY
    e-mail: hmee@beardco.com
    Telephone: (405) 842-2333
    Fax: (405) 842-9901