SOURCE: The Beard Company

August 18, 2008 07:00 ET

The Beard Company Announces Results for Second Quarter and Six Months of 2008

OKLAHOMA CITY, OK--(Marketwire - August 18, 2008) - The Beard Company (OTCBB: BRCO) today reported net earnings of $2,252,000, or $0.23 per share on a fully diluted basis, for the six months ended June 30, 2008, compared with a net loss of $1,184,000, or $0.20 per share on a fully diluted basis in the comparable 2007 period. Revenues increased 16% to $751,000 in the current six months versus $648,000 a year ago.

For the quarter ended June 30, 2008, we reported a net loss of $516,000, or $0.08 per share on a fully diluted basis, versus a net loss of $611,000, or $0.10 per share on a fully diluted basis, in the 2007 quarter. Revenues increased 13% to $373,000 for the current quarter versus $330,000 a year ago.

Herb Mee, Jr., President, stated: "The big improvement in the first half was primarily attributable to the sale of 35% of our interest in the McElmo Dome CO2 field effective February 1st, which generated a gain of $3,344,000. The second quarter benefited from price increases in our CO2 Segment. Despite selling a portion of McElmo Dome, the segment recorded an operating profit of $247,000 in the current quarter versus $205,000 in the 2007 period. We received an average of $1.23 per mcf sold in the current quarter versus $0.72 a year ago. CO2 pricing also contributed to six months results. The CO2 Segment reflected an operating profit of $554,000 for the current period compared with $412,000 in the year earlier period. We received an average of $1.11 per mcf sold in the current six months versus $0.65 a year ago. Despite the recent dip in oil prices, we anticipate continuing improvement in the price we receive for our CO2 during the 12 months ending June 30, 2009 as we will be participating in contracts with higher pricing than in the past. Volumes will also improve, as we will be selling a portion of the CO2 we have in storage, whereas during the last 12 months we were putting CO2 into storage in anticipation of better pricing."(A)

"The Oil & Gas Segment also reflected improved results, recording an operating profit of $25,000 for the current quarter compared to $8,000 in the year earlier quarter, and an operating profit of $43,000 in the current six months compared to $16,000 in the year earlier period," Mee concluded.

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, 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,
                         ----------------------  -------------------------
                            2008        2007         2008         2007
                         ----------  ----------  -----------  ------------

Revenues                 $  373,000  $  330,000  $   751,000  $    648,000
Expenses                    500,000     454,000      925,000       913,000
                         ----------  ----------  -----------  ------------

Operating loss             (127,000)   (124,000)    (174,000)     (265,000)
Other income (expense)     (185,000)   (209,000)   2,942,000      (391,000)
                         ----------  ----------  -----------  ------------

Earnings (loss) from
 continuing operations
 before income taxes       (312,000)   (333,000)   2,768,000      (656,000)
Income tax benefit
 (expense)                   29,000           -      (25,000)            -
                         ----------  ----------  -----------  ------------

Earnings (loss) from
 continuing operations     (283,000)   (333,000)   2,743,000      (656,000)

Loss from discontinued
 operations                (233,000)   (278,000)    (491,000)     (528,000)
                         ----------  ----------  -----------  ------------
Net earnings (loss)      $ (516,000) $ (611,000) $ 2,252,000  $ (1,184,000)
                         ==========  ==========  ===========  ============

Net earnings (loss) per
 average common share
 outstanding(B):
  Basic:
   Earnings (loss)
    from continuing
    operations           $    (0.04) $    (0.05) $      0.44  $      (0.11)
   Loss from
    discontinued
    operations           $    (0.04) $    (0.05) $     (0.08) $      (0.09)
                         ----------  ----------  -----------  ------------
    Net earnings (loss)  $    (0.08) $    (0.10) $      0.36  $      (0.20)
                         ==========  ==========  ===========  ============

Net earnings (loss) per
 average common share
 outstanding(B):
  Diluted:
   Earnings (loss)
    from continuing
    operations           $    (0.04) $    (0.05) $      0.28  $      (0.11)
   Loss from discontinued
    operations           $    (0.04) $    (0.05) $     (0.05) $      (0.09)
                         ----------  ----------  -----------  ------------
    Net earnings (loss)  $    (0.08) $    (0.10) $      0.23  $      (0.20)
                         ==========  ==========  ===========  ============

Weighted average common
 shares outstanding:
    Basic                 6,416,000   5,862,000    6,289,000     5,839,000
                         ==========  ==========  ===========  ============
    Diluted               6,416,000   5,862,000    9,655,000     5,839,000
                         ==========  ==========  ===========  ============

(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 2007 and 2008 as the effect would be anti-dilutive.

Contact Information

  • Contact:
    Herb Mee, Jr.
    President
    THE BEARD COMPANY
    e-mail: Email Contact
    Telephone: (405) 842-2333
    Fax: (405) 842-9901

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