SOURCE: The Beard Company

August 15, 2005 19:30 ET

The Beard Company Announces Results for Second Quarter and Six Months of 2005

OKLAHOMA CITY, OK -- (MARKET WIRE) -- August 15, 2005 -- The Beard Company (OTC BB: BRCO) today reported a net loss of $375,000, or $0.06 per share, for the second quarter of 2005 compared with a net loss of $303,000, or $0.06 per share in the comparable 2004 quarter. Revenues were up sharply, increasing 77% to $327,000 in the current quarter versus $185,000 a year ago.

Revenues escalated 53% to $570,000 for the current six months versus $373,000 for the comparable 2004 period. For the six months ended June 30, 2005, we reported a net loss of $750,000 compared to net earnings of $2,000,000 in the 2004 period. The basic loss per common share for the 2005 six months was $0.13 per share versus net earnings of $0.40 per share for the 2004 period. The diluted loss per common share for the 2005 six months was $0.13 versus net earnings of $0.34 per share for the year earlier period.

Herb Mee, Jr., President, stated: "We are excited about the progress we are making in all areas of our operations. We expect continuing increases in revenues and improved operating results as our initial fertilizer plant in China comes on stream and as our new gas wells in Colorado start producing income."

"The comparatively poor results for the quarter and six months are an aberration. Results for the second quarter and six months of 2004 benefited in the amount of $117,000 and $2,943,000, respectively, received from the McElmo Dome Settlement. These amounts were reflected in other income for the 2004 periods and more than accounted for the comparatively poorer results in the current periods. Operating results for the current periods actually improved, with the second quarter of 2005 generating an operating loss of $300,000 versus $419,000 in 2004, and the six months of 2005 reflecting an operating loss of $680,000 compared to $792,000 in 2004."

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 The Beard Company's filings with the Securities and Exchange Commission.


                            THE BEARD COMPANY
                          Results of Operations
                              (Unaudited)

                          For the Three Months       For the Six Months
                               Ended June 30,           Ended June 30,

                             2005      2004(A)       2005          2004(A)
                          ---------   ---------   ---------      ---------
Revenues                   $327,000    $185,000    $570,000       $373,000
Expenses                    627,000     604,000   1,250,000      1,165,000
                          ---------   ---------   ---------      ---------

Operating loss             (300,000)   (419,000)   (680,000)      (792,000)
Other income (expense)     (123,000)    124,000    (187,000)     2,894,000
                          ---------   ---------   ---------      ---------

Earnings (loss) from
  continuing operations
  before income taxes      (423,000)   (295,000)   (867,000)     2,102,000
Income tax expense          (14,000)    (12,000)    (33,000)      (109,000)
                          ---------   ---------   ---------      ---------

Earnings (loss) from
  continuing operations    (437,000)   (307,000)   (900,000)     1,993,000

Earnings from
 discontinued
 operations                  62,000       4,000     150,000          7,000
                          ---------   ---------   ---------      ---------


Net earnings (loss)      $ (375,000) $ (303,000) $ (750,000)   $ 2,000,000
                          =========   =========   =========      =========

Net earnings (loss)
 per average common
 share outstanding(A):
  Basic:
    Earnings (loss)
     from continuing
     operations             $ (0.07)    $ (0.06)    $ (0.15)        $ 0.40
    Earnings from
     discontinued
     operations             $  0.01     $  0.00     $  0.02         $ 0.00
                          ---------   ---------   ---------      ---------
    Net earnings (loss)     $ (0.06)    $ (0.06)    $ (0.13)        $ 0.40
                          =========   =========   =========      =========

  Diluted:
    Earnings (loss) from
     continuing operation   $ (0.07)    $ (0.06)    $ (0.15)        $ 0.34
    Earnings from
     discontinued
     operations             $  0.01     $  0.00     $  0.02         $ 0.00
                          ---------   ---------   ---------      ---------
    Net earnings (loss)     $ (0.06)    $ (0.06)    $ (0.13)        $ 0.34
                          =========   =========   =========      =========

Weighted average common
 shares outstanding(A):
     Basic                6,010,000   5,161,000   5,880,000      5,043,000
                          =========   =========   =========      =========
     Diluted              6,010,000   5,161,000   5,880,000      5,941,000
                          =========   =========   =========      =========


(A) Adjusted to reflect the 2-for-1 stock split effected at the close
 of business on August 6, 2004.
-------
   (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 per common share reflect the potential dilution that could
occur if the Company's outstanding options and warrants were exercised
(calculated using the treasury stock method) and if the Company's
preferred stock and convertible notes were converted to common stock.
Diluted loss per share from continuing operations for the three and
six-month periods ended June 30, 2005 and the three month period ended
June 30, 2004 exclude potential common shares issuable upon conversion
of convertible preferred  stock, convertible notes or exercise of
options and warrants as the effect would be anti-dilutive.

Contact Information

  • The Beard Company
    Enterprise Plaza, Suite 320
    5600 North May Avenue
    Herb Mee, Jr., President
    Oklahoma City, Oklahoma 73112
    (405) 842-2333
    Fax Number (405) 842-9901
    Email: hmee@beardco.com