SCOTT, La., March 2, 2011 (GLOBE NEWSWIRE) -- ESP Resources, Inc. (OTCBB:ESPI) (the "Company" or "ESP Resources"), a manufacturer, blender, distributor, and marketer of specialty chemicals and analytical services to the oil and gas industry, announced unaudited financial results for the year and fourth quarter ended December 31, 2010.
Year-Ended December 31, 2010
Revenue for the year-ended December 31, 2010 was $5,477,359, compared to $2,738,266 for the same period in 2009, an increase of $2,739,093, or 100%. The increase was due to the continued expansion of the Company's customer base and service coverage in the Southern Louisiana, South Texas and East Texas regions. In addition, the Company increased revenue to several of its existing customers through supply of additional petrochemical products at its existing customer well-sites.
The Company's gross profit as a percentage of revenue for the year was 56.8%, compared to 45% for the same period in 2009, an increase of 11.8%. This increase is the result of better costing economics from increased purchases of raw materials on a per unit basis used in the Company's operations and greater efficiency in the delivery of these raw materials resulting in an overall reduction in the Company's service delivery cost. In addition, the Company increased sales of higher gross margin chemical blends primarily in its South and East Texas regions.
Operating expenses as a percentage of revenue, net of amortization and depreciation, increased 12.4% for the year, compared to the same period in 2009 due to the expansion in the Company's operating personnel from 14 to 22 employees. In addition, the Company opened two new district operating offices in Longview, TX and Guy, AR. Net loss decreased 56.7% to ($2,075,131) for 2010 as compared to ($4,790,267) for 2009. On an adjusted EBITDA basis, after adding back interest, depreciation, amortization and stock-based compensation, net loss decreased 84.4% to ($342,836) as compared to ($2,202,716) for the respective period.
Three Months Ended December 31, 2010
Revenue for three months ended December 31, 2010 was $1,849,387, compared to $727,384 for the same period in 2009, an increase of $1,122,003, or 154.3%. The increase is attributed to the expansion of the Company's customer base and increased service coverage in the Northern Louisiana and Texas regions with the hiring of additional field service personnel in the Longview, TX region. In addition, the Company increased revenue to several of its customers through supply of additional petrochemical products at its existing customer well-sites.
The Company's gross profit as a percentage of revenue for the period was 63.1%, compared to 68.6%, for the same period in 2009, a decrease of 5.5%. The slight decrease for the quarter is due to varying differences in raw materials on a project basis used in any particular quarter.
Operating expenses as a percentage of revenue, net of amortization and depreciation, decreased slightly at less than 1% for the period, compared to the same period in 2009. Net loss decreased 73.1% to ($337,758) for the period, compared to ($1,253,870) for the same period in 2009. On an adjusted EBITDA basis, after adding back interest, depreciation, amortization and stock-based compensation, net loss decreased 79.9% to ($92,097) as compared to ($458,736) for the respective period.
The Company's quarter-to-quarter revenue growth was approximately $540,000, or 41.3%, for the three months ended December 31, 2010 compared to the three months ended September 30, 2010.
Commenting on the results, Mr. David Dugas, President of ESP Resources, Inc., stated, "Our sales growth continues to highlight our performance to new and existing customers and the unique aspects of the product and services we offer. In addition, as we expand, our costing efficiencies continue to increase as evidenced by our improving operating margins. This will continue to pave the way for profitable operations in the future," Mr. Dugas stated further.
About .:
ESP Resources, Inc. is a publicly-traded petrochemical company (OTCBB:ESPI) headquartered in Scott, LA. Through its wholly owned subsidiary, ESP Petrochemicals, Inc., the Company manufactures, blends, distributes and markets specialty chemicals and analytical services to the oil and gas industry. ESP Resources supplies retail and wholesale specialty chemicals for a variety of oil field applications including production, drilling, waste remediation, cleaning, and waste water treatment. From its blending and distribution facilities, the Company distributes its product line throughout the oil and gas producing regions of Louisiana, Texas, Mississippi, Alabama, Arkansas and Oklahoma, both onshore and offshore. The wholesale division of the Company supplies specialty chemicals to several retailers operating in West Africa. The Company's senior management has over 100 years of combined operating experience in the petrochemical industry. More information is available on the Company's Website at .
Legal Notice Regarding Forward-Looking Statements:
This press release contains "forward looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements in this news release that are not historical facts are forward-looking statements that are subject to risks and uncertainties. Forward-looking statements are based on current facts and analyses and other information that are based on forecasts of future results, estimates of amounts not yet determined and assumptions of management. Forward looking statements are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "aims", "potential", "goal", "objective", "prospective", and similar expressions or that events or conditions "will", "would", "may", "can", "could" or "should" occur. Information concerning oil or natural gas reserve estimates may also be deemed to be forward looking statements, as it constitutes a prediction of what might be found to be present when and if a project is actually developed. Actual results may differ materially from those currently anticipated due to a number of factors beyond the reasonable control of the Company. It is important to note that actual outcomes and actual results could differ materially from those in such forward-looking statements.
Readers are cautioned not to place undue reliance on the forward-looking statements made in this press release. In evaluating these statements, you should consider the risks discussed, from time to time, in the reports we file with the U.S. Securities & Exchange Commission. For a discussion of some of the risks and important factors that could affect the Company's future results and financial condition, see the Company's Form 10-Ks and 10-Qs on file with the U.S. Securities & Exchange Commission.
CONTACT: David Dugas, President ESP Resources, Inc. david.dugas@espchem.com (337) 706-7056