SOURCE: The Beard Company

April 17, 2007 16:45 ET

The Beard Company Announces 2006 Results

OKLAHOMA CITY, OK -- (MARKET WIRE) -- April 17, 2007 -- The Beard Company (OTCBB: BRCO) today announced its financial results for 2006. The Company reported a net loss of $1,554,000, or $0.27 per share, on revenues of $2,085,000 in 2006, compared with a net loss of $2,160,000, or $0.37 per share, on revenues of $1,379,000 in 2005.

Herb Mee, Jr., President, stated: "We recorded net earnings of $119,000, or $0.03 per share, on revenues of $523,000 in the fourth quarter of 2006, versus a loss of $836,000, or $0.14 per share, on revenues of $465,000 in the comparable quarter of 2005. The current quarter benefited from a $287,000 gain on sale of assets whereas the 2005 quarter reflected no gain on such sales. The 2006 fourth quarter also included a $383,000 gain on the disposition of our controlling interest in the Pinnacle coal project in West Virginia. The balance of the improvement was primarily attributable to improved operating margins in the 2006 quarter, which reflected an operating loss of $301,000 versus an operating loss of $608,000 in the 2005 quarter. The Coal Segment recorded reduced expenses of $173,000 in the current quarter, which led to a $170,000 improvement. The CO2 Segment reflected an $83,000 improvement in operating profit during the 2006 quarter, with revenues increasing $55,000 and expenses decreasing $28,000. The operating loss at the corporate level decreased $53,000, primarily due to a decrease in amortization of intangibles.

"The improved results in the fourth quarter of 2006 are not indicative of the results we anticipate during the next quarter or two," Mee continued. "Cost over-runs at the Pinnacle Project and delays and problems encountered during the ramp-up of the project have led to disappointing results. The China fertilizer plant has also been disappointing as it has failed to achieve its targeted marketing plans to date. We need to obtain better results from both plants, and are currently exploring alternatives that will hopefully achieve improved results."(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, operation of a fertilizer plant in China, oil and gas production, 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)
                    --------------------------  --------------------------
                        2006          2005          2006          2005
                    ------------  ------------  ------------  ------------

Revenues            $    523,000  $    465,000  $  2,085,000  $  1,379,000
Expenses                 824,000     1,073,000     3,367,000     3,096,000
                    ------------  ------------  ------------  ------------

Operating loss          (301,000)     (608,000)   (1,282,000)   (1,717,000)
Other income (expense)   425,000      (225,000)     (257,000)     (550,000)
                    ------------  ------------  ------------  ------------

Earnings (loss)
 before income taxes     124,000      (833,000)   (1,539,000)   (2,267,000)
Income tax benefit
 (expense)                     -        (1,000)       17,000       (35,000)
                    ------------  ------------  ------------  ------------

Earnings (loss)
 from continuing
 operations              124,000      (834,000)   (1,522,000)   (2,302,000)

Earnings (loss)
 from discontinued
 operations               (5,000)       (2,000)      (32,000)      142,000
                    ------------  ------------  ------------  ------------

Net earnings (loss) $    119,000  ($   836,000) ($ 1,554,000) ($ 2,160,000)
                    ============  ============  ============  ============

Net earnings (loss)
 per average common
 share outstanding:
  Basic(B):
  Earnings (loss)
   from continuing
   operations       $       0.03  $      (0.14) $      (0.27) $      (0.39)
  Earnings (loss)
   from discontinued
   operations       $          -  $          -  $          -  $       0.02
                    ------------  ------------  ------------  ------------
  Net earnings
   (loss)           $       0.03  $      (0.14) $      (0.27) $      (0.37)
                    ============  ============  ============  ============

  Diluted(B):
  Earnings (loss)
   from continuing
   operations       $       0.03  $      (0.14) $      (0.27) $      (0.39)
  Earnings from
   discontinued
   operations       $          -  $          -  $          -  $       0.02
                    ------------  ------------  ------------  ------------
  Net earnings
   (loss)           $       0.03  $      (0.14) $      (0.27) $      (0.37)
                    ============  ============  ============  ============

Weighted average
 common shares
 outstanding:
  Basic                5,709,000     5,757,000     5,655,000     5,888,000
                    ============  ============  ============  ============
  Diluted              5,709,000     5,757,000     5,655,000     5,888,000
                    ============  ============  ============  ============

(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

  • Contact:
    Herb Mee, Jr.
    President
    (405) 842-2333
    Fax Number: (405) 842-9901
    Email: Email Contact

    The Beard Company
    Enterprise Plaza, Suite 320
    5600 North May Avenue
    Oklahoma City, Oklahoma 73112