SOURCE: The Beard Company

May 23, 2006 13:22 ET

The Beard Company Reports 2006 First Quarter Results

OKLAHOMA CITY, OK -- (MARKET WIRE) -- May 23, 2006 -- The Beard Company (OTCBB: BRCO) today announced that the 2006 first quarter resulted in a net loss of $633,000, or $0.11 per share, compared with a net loss of $375,000, or $0.07 per share in the comparable 2005 first quarter.

Herb Mee, Jr., President, stated: "Revenues were up sharply, increasing 98% to $482,000 in the current quarter versus $243,000 a year ago. The increase was our eighth consecutive quarterly increase, and we expect the trend to extend for the remainder of the year.

"Results for the quarter were mixed," Mee continued. The CO2 Segment again showed strong improvement, with revenues up 54% and operating profit up 80% over the 2005 quarter. Sales at our China fertilizer plant continue to be disappointing. It now appears the plant will not reach the breakeven point until the third quarter of this year. We still do not have approval from the USDA on the financing of the Pinnacle Project. Despite the delay, construction of the project is moving ahead rapidly and we expect to be shipping coal by the end of July."

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, 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 AND SUBSIDIARIES
                          Results of Operations
                                (Unaudited)
                                                     For the Three Months
                                                        Ended March 31,
                                                    ----------  ----------
                                                       2006        2005
                                                    ----------  ----------

Revenues                                            $  482,000  $  243,000
Expenses                                               904,000     623,000
                                                    ----------  ----------

Operating loss                                        (422,000)   (380,000)
Other income (expense)                                (183,000)    (64,000)
                                                    ----------  ----------

Loss from continuing operations
 before income taxes                                  (605,000)   (444,000)
Income taxes                                                 -     (19,000)
                                                    ----------  ----------

Loss from continuing operations                       (605,000)   (463,000)
Earnings (loss) from discontinued operations           (28,000)     88,000
                                                    ----------  ----------
Net loss                                            $ (633,000) $ (375,000)
                                                    ==========  ==========

Net earnings (loss) per average common
 share outstanding:
  Basic and diluted(A):
    Loss from continuing operations                 $    (0.11) $    (0.08)
    Earnings from discontinued
                 operations                               0.00        0.01
                                                    ----------  ----------
    Net loss                                        $    (0.11) $    (0.07)
                                                    ==========  ==========

Weighted average common shares outstanding:
  Basic and diluted                                  5,592,000   5,748,000
                                                    ==========  ==========

(A)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 were converted to
common stock.  Diluted loss per share from continuing operations exclude
potential common shares issuable upon conversion of convertible preferred
stock and convertible notes, and on issuance upon exercise of stock options
and warrants as the effect would be anti-dilutive.
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.

Contact Information

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