SOURCE: The Beard Company

November 21, 2005 19:21 ET

The Beard Company Reports Results for the Third Quarter and Nine Months of 2005

OKLAHOMA CITY, OK -- (MARKET WIRE) -- November 21, 2005 -- The Beard Company (OTC BB: BRCO) today reported a net loss of $574,000, or $0.10 per share, for the third quarter of 2005 compared with a net loss of $512,000, or $0.09 per share in the comparable 2004 quarter. Revenues were up 38%, increasing to $344,000 in the current quarter versus $249,000 a year ago.

Revenues escalated 47% to $914,000 for the current nine months versus $622,000 for the comparable 2004 period. For the nine months ended September 30, 2005, we reported a net loss of $1,324,000 compared to net earnings of $1,488,000 in the 2004 period. The basic loss per common share for the 2005 nine months was $0.22 per share versus net earnings of $0.27 per share for the 2004 period. The diluted loss per common share for the 2005 nine months was $0.22 versus net earnings of $0.22 per share for the year earlier period.

Herb Mee, Jr., President, stated: "Our progress during the quarter was mixed. The CO2 Segment showed strong improvement, with revenues up 57% and operating profit up 66% over the previous year. We do not yet have approval from the USDA on the financing needed for our Pinnacle Project, which has postponed commencement of the project. As a result of delays in hooking up our new gas wells in Colorado, they did not start producing income until the end of the quarter. Our new fertilizer plant in China commenced production in September. However, sales have developed more slowly than originally projected, which will likely result in a loss for the segment in the fourth quarter."

"Results for the nine months of 2004 benefited from the $2,943,000 received from the McElmo Dome Settlement, whereas the 2005 period had no such benefit. Operating results for the current periods were mixed, with the third quarter of 2005 generating an operating loss of $429,000 versus $409,000 in 2004, while the nine months of 2005 actually improved, reflecting an operating loss of $1,109,000 compared to $1,201,000 in 2004," Mee concluded.

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 us. 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.


                              THE BEARD COMPANY
                            Results of Operations
                                (Unaudited)


                           For the Three Months      For the Nine Months
                            Ended September 30,       Ended September 30,
                            2005        2004(A)       2005        2004(A)
                        -----------  -----------  -----------  -----------

Revenues                $   344,000  $   249,000  $   914,000  $   622,000
Expenses                    773,000      658,000    2,023,000    1,823,000
                        -----------  -----------  -----------  -----------

Operating loss             (429,000)    (409,000)  (1,109,000)  (1,201,000)
Other income (expense)     (139,000)     (73,000)    (326,000)   2,821,000
                        -----------  -----------  -----------  -----------

Earnings (loss) from
 continuing operations
 before income taxes       (568,000)    (482,000)  (1,435,000)   1,620,000
Income taxes                      -      (27,000)     (33,000)    (136,000)
                        -----------  -----------  -----------  -----------

Earnings (loss) from
 continuing operations     (568,000)    (509,000)  (1,468,000)   1,484,000

Earnings (loss) from
 discontinued
 operations                  (6,000)      (3,000)     144,000        4,000
                        -----------  -----------  -----------  -----------

Net earnings (loss)     $  (574,000) $  (512,000) $(1,324,000) $ 1,488,000
                        ===========  ===========  ===========  ===========

Net earnings (loss) per average common share outstanding(B):
  Basic:
  Earnings (loss) from
   continuing
   operations           $     (0.10) $     (0.09) $     (0.25) $      0.27
  Earnings (loss) from
   discontinued
   operations           $     (0.00) $     (0.00) $      0.03  $      0.00
                        -----------  -----------  -----------  -----------
  Net earnings (loss)   $     (0.10) $     (0.09) $     (0.22) $      0.27
                        ===========  ===========  ===========  ===========

  Diluted:
  Earnings (loss) from
   continuing
   operations           $     (0.10) $     (0.09) $     (0.25) $      0.22
  Earnings (loss) from
   discontinued
   operations           $     (0.00) $     (0.00) $      0.03  $      0.00
                        -----------  -----------  -----------  -----------
  Net earnings (loss)   $     (0.10) $     (0.09) $     (0.22) $      0.22
                        ===========  ===========  ===========  ===========

Weighted average
 common shares
 outstanding:
     Basic                6,032,000    5,471,000    5,910,000    5,471,000
                        ===========  ===========  ===========  ===========

     Diluted              6,032,000    5,471,000    5,910,000    6,736,000
                        ===========  ===========  ===========  ===========

(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.  Included in the
    weighted average number of common shares outstanding are the shares
    issuable according to the terms of our deferred stock compensation
    plan.  Diluted earnings (loss) per common share reflect the potential
    dilution that could occur if our outstanding options and warrants were
    exercised (calculated using the treasury stock method) and if our
    preferred stock and convertible notes were converted to common stock.

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

    THE BEARD COMPANY
    Enterprise Plaza, Suite 320
    5600 North May Avenue
    Oklahoma City, Oklahoma 73112
    (405) 842-2333 OTCBB: BRCO