SOURCE: The Beard Company

August 20, 2007 17:04 ET

The Beard Company Announces Results for Second Quarter and Six Months of 2007

OKLAHOMA CITY, OK--(Marketwire - August 20, 2007) - The Beard Company (OTCBB: BRCO) today reported a net loss of $611,000, or $0.10 per share, for the second quarter of 2007 compared with a net loss of $665,000, or $0.12 per share, in the comparable 2006 quarter. Revenues decreased 18% to $417,000 in the current quarter versus $509,000 a year ago.

For the six months ended June 30, 2007, we reported a net loss of $1,184,000 versus a net loss of $1,298,000 in the 2006 period. Our loss per common share for the 2007 six months was $0.20 per share versus a loss of $0.23 per share for the 2006 period. Revenues decreased 23% to $764,000 for the current six months versus $991,000 for the comparable 2006 period.

Carbon dioxide (CO2) revenues were down 13% to $606,000 in the 2007 six months versus $696,000 in the 2006 period, almost entirely due to decreased prices. Operating profit in the CO2 Segment decreased $169,000, or 29%, to $412,000 in the current six months compared to $581,000 in the comparable 2006 period.

Herb Mee, Jr., President, stated: "Despite the losses, we are working on several things which we anticipate will have a positive impact on the bottom line in the coming months. We have signed a new sales contract for approximately 30% of our CO2 production at higher pricing and expect to see a reversal of the recent pricing trend in this segment beginning this month. In China we are exploring the possibility of manufacturing product for a competitor, which would make this segment profitable for the first time if the outcome is successful. And, we have a number of projects under development in our Coal Segment which would put this segment on the road to profitability if our efforts achieve success."(A)

Our common stock is traded on the OTC Bulletin Board under the symbol: BRCO. Our operations consist principally of coal reclamation activities, 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
                                 (Unaudited)

                         For the Three Months       For the Six Months
                            Ended June 30,            Ended June 30,
                        ----------------------  --------------------------
                           2007        2006         2007          2006
                        ----------  ----------  ------------  ------------

Revenues                $  417,000  $  509,000  $    764,000  $    991,000
Expenses                   801,000     932,000     1,521,000     1,836,000
                        ----------  ----------  ------------  ------------

Operating loss            (384,000)   (423,000)     (757,000)     (845,000)
Other income (expense)    (226,000)   (244,000)     (425,000)     (427,000)
                        ----------  ----------  ------------  ------------

Loss from continuing
 operations before
 income taxes             (610,000)   (667,000)   (1,182,000)   (1,272,000)
Income tax expense               -           -             -             -
                        ----------  ----------  ------------  ------------

Loss from continuing
 operations               (610,000)   (667,000)   (1,182,000)   (1,272,000)

Earnings (loss) from
 discontinued operations    (1,000)      2,000        (2,000)      (26,000)
                        ----------  ----------  ------------  ------------
Net loss                $ (611,000) $ (665,000) $ (1,184,000) $ (1,298,000)
                        ==========  ==========  ============  ============

Net earnings (loss) per
 average common share
 outstanding(B):
  Basic and diluted:
   Loss from continuing
    operations          $    (0.10) $    (0.12) $      (0.20) $      (0.23)
   Earnings (loss)from
    discontinued
    operations          $        -  $        -  $          -  $          -
                        ----------  ----------  ------------  ------------
   Net loss             $    (0.10) $    (0.12) $      (0.20) $      (0.23)
                        ==========  ==========  ============  ============

Weighted average common
 shares outstanding:
  Basic and diluted      5,862,000   5,638,000     5,839,000     5,619,000
                        ==========  ==========  ============  ============

(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, convertible notes and deferred stock compensation units were
    converted to common stock.  Diluted loss per share from continuing
    operations exclude potential common shares issuable upon conversion
    of preferred stock, convertible notes, termination of our deferred
    stock compensation plans, or exercise of stock options and warrants
    as a result of losses in 2006 and 2007 as the effect would be
    anti-dilutive.

Contact Information

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

    The Beard Company
    Enterprise Plaza, Suite 320
    5600 North May Avenue
    Oklahoma City, Oklahoma 73112
    (405) 842-2333