GEOHEDRAL LLC COMPLETING $2.5 MILLION EQUITY RAISE TO FUND
EXPLORATION ACTIVITIES OKLAHOMA CITY, Nov. 23
/PRNewswire-FirstCall/ -- The Beard Company (OTC Bulletin Board:
BRCO) today reported net earnings of $3,713,000, or $0.18 per
diluted share, for the nine months ended September 30, 2009,
compared with net earnings of $2,072,000, or $0.10 per diluted
share, in the corresponding period of the previous year. Revenues
decreased 62% to $429,000 in the first nine months of 2009, versus
$1,127,000 in the year-earlier period, reflecting the disposition
of the Company's interest in the McElmo Dome CO2 Field. For the
three months ended September 30, 2009, the Company reported a net
loss of $1,137,000, or $0.06 per share, versus a net loss of
$466,000, or $0.03 per share, in the third quarter of 2008. The
per-share amounts have been adjusted to reflect a 2-for-1 stock
split that was effective November 2, 2009. Revenues decreased 79%
to $79,000 in the most recent quarter, versus $376,000 in the
prior-year period, again reflecting the McElmo Dome sale. Operating
results for the first nine months of 2009 benefited from pre-tax
gains of (i) $4,888,000 attributable to the sale of the Company's
remaining interest in the McElmo Dome CO2 Unit and (ii) $832,000
from the settlement of the Visa litigation. The first nine months
of 2008 included a pre-tax gain of $3,338,000 from the sale of 35%
of the Company's interest in McElmo Dome. Minor losses on the sale
of assets of $10,000 and $1,000 were recorded in the third quarters
of 2009 and 2008, respectively. Operating results for the third
quarter of 2009 were significantly impacted by (i) a $508,000 loss
reflected in losses from unconsolidated affiliates, whereas the
third quarter of 2008 quarter included only a $54,000 loss from
unconsolidated affiliates; and (ii) a $149,000 impairment of
investments and other assets. Included in the losses from
unconsolidated affiliates were (i) losses of $21,000 from the
Company's investment in Beard Dilworth, LLC, an oil and gas venture
in Oklahoma; (ii) losses of $498,000 from the Company's investment
in Geohedral LLC, a mining project in Alaska; and (iii) $11,000 in
earnings from the Company's investment in another partnership. The
$149,000 impairment reduced the Company's investment in Geohedral
to its share of the underlying equity in the partnership as of
September 30, 2009. Herb Mee, Jr., Beard's President, stated, "Our
investment in Geohedral LLC increased the Company's third quarter
loss by $647,000 due to SEC regulations governing mining operations
that required the writedown of our investment in this subsidiary.
In connection with Geohedral's current $2.5 million equity
offering, the Company invested $590,000 to maintain its 23.16%
interest in Geohedral, and another $441,000 to increase its
interest in the partnership to 25.68%. Proceeds of the equity
offering were used to fund the staking and filing of Geohedral's
new mining claims in the Tanis Mesa area in southeastern Alaska
that we announced on September 21 of this year. The funds were also
utilized to defray the costs of drilling the holes, and sampling
and assaying the results described in our September 21, 2009 news
release." "Based on the value of investment interests sold by
Geohedral in the equity offering that will be completed in early
December, the Company's 25.68% interest in Geohedral currently has
an indicated fair market value of $4,499,000, versus a book value
of $384,000 on our balance sheet at September 30, 2009. The current
fair market value does not, in our opinion, adequately reflect the
potential value of Beard's 25.68% share of Geohedral's mineral
reserves, which we and Geohedral believe substantially exceeds the
indicated fair market value of $4.5 million." "While our reported
earnings and revenues have been sharply reduced as a result of the
McElmo Dome sale, it is important to remember that our current
results do not reflect the Company's anticipated share of operating
profits from the Dilworth Field, where water injection is slated to
commence next month, and which is expected to make a significant
contribution to our revenues and earnings beginning in the first
quarter of 2010." About The Beard Company The Beard Company has
shifted its focus to three areas, all involving natural resources,
that management believes have high growth and/or above-average
profit potential. The Company is involved in oil and gas
activities; coal reclamation activities; and minerals exploration
and development through its Geohedral investment. The Company is
headquartered in Oklahoma City and its common stock trades on the
OTC Bulletin Board under the symbol "BRCO". Forward-Looking
Statements This document may include statements that constitute
"forward-looking" statements, usually containing the words
"believe", "estimate", "project", "expect", "anticipate", or
similar expressions. Forward-looking statements inherently involve
risks and uncertainties that could cause actual results to differ
materially from the forward-looking statements. Factors that could
cause or contribute to such differences include, but are not
limited to, the Company's lack of profitability in recent years;
the ability to service outstanding debt and secure capital to fund
operations; the ability to negotiate and execute contracts in
connection with the Company's coal reclamation activities; future
trends in commodities prices; financial, potential geological or
mechanical difficulties affecting Geohedral's or Beard Dilworth's
planned activities; uncertainties surrounding estimates of
mineralized material; and other risks associated with the Company's
business. By making these forward-looking statements, Beard
undertakes no obligation to update these statements for revisions
or changes in the future. For Additional Information, Please
Contact: Herb Mee, Jr., President, at (405) 842-2333 or via email
at or RJ Falkner & Company, Inc., Investor Relations Counsel,
at (800) 377-9893 or via email at THE BEARD COMPANY AND
SUBSIDIARIES Balance Sheets September 30, 2009 (Unaudited) and
December 31, 2008 September 30, December 31, Assets 2009 2008
------ ------------- ------------ Current assets: Cash and cash
equivalents $1,276,000 $182,000 Accounts receivable, less allowance
for doubtful receivables of $42,000 in 2009 and $31,000 in 2008
162,000 185,000 Prepaid expenses and other assets 37,000 5,000
Assets of discontinued operations held for resale 20,000 26,000
---------- ---------- Total current assets 1,495,000 398,000
---------- ---------- Restricted certificate of deposit 50,000
50,000 Investments and other assets 1,168,000 87,000 Property,
plant and equipment, at cost 2,074,000 2,561,000 Less accumulated
depreciation, depletion and amortization 1,100,000 1,340,000
---------- ---------- Net property, plant and equipment 974,000
1,221,000 ---------- ---------- Intangible assets, at cost 75,000
75,000 Less accumulated amortization 70,000 66,000 ----------
---------- Net intangible assets 5,000 9,000 ---------- ----------
$3,692,000 $1,765,000 ========== ========== Liabilities and
Shareholders' Equity (Deficiency)
------------------------------------ Current liabilities: Trade
accounts payable $90,000 $97,000 Accrued expenses 192,000 431,000
Short-term debt - related entities - 57,000 Current maturities of
long-term debt 45,000 895,000 Current maturities of long-term debt
- related entities - 390,000 Liabilities of discontinued operations
held for resale 51,000 65,000 ---------- ---------- Total current
liabilities 378,000 1,935,000 ---------- ---------- Long-term debt
less current maturities 397,000 420,000 Long-term debt - related
entities 2,002,000 2,250,000 Other long-term liabilities 171,000
172,000 Shareholders' equity (deficiency): Convertible preferred
stock of $100 stated value; 5,000,000 shares authorized; 27,838
shares issued and outstanding 889,000 889,000 Common stock of
$.00033325 par value per share; 30,000,000 authorized; 19,856,038
and 19,661,172 shares issued and outstanding in 2009 and 2008,
respectively 7,000 7,000 Capital in excess of par value 42,698,000
42,655,000 Accumulated deficit (40,265,000) (43,978,000)
Accumulated other comprehensive income 24,000 25,000 ----------
---------- Total shareholders' equity (deficiency) attributable to
The Beard Company 3,353,000 (402,000) ---------- ----------
Noncontrolling interests (2,609,000) (2,610,000) ----------
---------- Total shareholders' equity (deficiency) 744,000
(3,012,000) ---------- ---------- Commitments and contingencies
$3,692,000 $1,765,000 ========== ========== THE BEARD COMPANY
Results of Operations (Unaudited) For the Three Months For the Nine
Months Ended September 30, Ended September 30,
------------------------ -------------------------- 2009 2008 2009
2008 ----------- ---------- ---------- ---------- Revenues $79,000
$376,000 $429,000 $1,127,000 Expenses 557,000 532,000 1,522,000
1,457,000 ----------- ---------- ---------- ---------- Operating
loss (478,000) (156,000) (1,093,000) (330,000) Other income
(expense) (712,000) (222,000) 4,841,000 2,720,000 -----------
---------- ---------- ---------- Earnings (loss) from continuing
operations before income taxes (1,190,000) (378,000) 3,748,000
2,390,000 Income tax benefit (expense) 53,000 - (27,000) (25,000)
----------- ---------- ---------- ---------- Earnings (loss) from
continuing operations (1,137,000) (378,000) 3,721,000 2,365,000
Loss from discontinued operations - (232,000) - (723,000)
----------- ---------- ---------- ---------- Net earnings (loss)
(1,137,000) (610,000) 3,721,000 1,642,000 Amounts attributable to
noncontrolling interests (Income) loss from continuing operations -
- (8,000) 1,000 Loss from discontinued operations - 144,000 -
429,000 ----------- ---------- ---------- ---------- Net earnings
(loss) attributable to The Beard Company common shareholders
$(1,137,000) $(466,000) $3,713,000 $2,072,000 ===========
========== ========== ========== Net earnings (loss) per average
common share outstanding(1): Basic: Earnings (loss) from continuing
operations $(0.06) $(0.02) $0.19 $0.18 Loss from discontinued
operations $- $(0.01) $- $(0.02) ----------- ---------- ----------
---------- Net earnings (loss) $(0.06) $(0.03) $0.19 $0.16
=========== ========== ========== ========== Net earnings (loss)
per average common share outstanding(1): Diluted: Earnings (loss)
from continuing operations $(0.06) $(0.02) $0.18 $0.11 Loss from
discontinued operations $- $(0.01) $- $(0.01) -----------
---------- ---------- ---------- Net earnings (loss) $(0.06)
$(0.03) $0.18 $0.10 =========== ========== ========== ==========
Weighted average common shares outstanding(1): Basic 19,827,000
14,039,000 19,817,000 13,068,000 =========== ========== ==========
========== Diluted 19,827,000 14,039,000 21,028,000 20,884,000
=========== ========== ========== ========== (1) All per share and
common share amounts adjusted to reflect the 2-for-1 stock split
effected November 2, 2009. DATASOURCE: The Beard Company CONTACT:
Herb Mee, Jr., President of The Beard Company, +1-405-842-2333, ;
or RJ Falkner & Company, Inc., Investor Relations Counsel,
1-800-377-9893,
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