ESP Resources, Inc. (OTCBB:ESPI) (the "Company" or "ESP
Resources"), an oil and gas services company offering analytical
services and essential custom-blended oil and gas well chemicals
which improve production yields and overall efficiencies, announced
unaudited financial results for the three and six months ended June
30, 2011.
For the three months ended June 30, 2011, sales were $2,295,065,
compared to $1,303,070 for the same period in 2010, an increase of
$991,995, or 76.1%. For the six months ended June 30, 2011, sales
were $4,110,221, compared to $2,318,646 for the same period in
2010, an increase of $1,791,575, or 77.3%. The increase was
due to several factors including the expanded customer base from
increased sales coverage in the Southern Louisiana, South Texas,
Southeast Texas and Arkansas regions. The addition of field
service technicians in the South Texas and Arkansas regions in
previous quarters and their sales contacts resulted in a direct
increase in sales volumes from these regions. In addition,
sales volume increased from petrochemical sales and services to
customers engaged in the hydraulic fracturing of oil and gas
wells.
Gross profit was $1,405,066 for the three months ended June 30,
2011, compared to $894,022 for the same period in 2010. Gross
profit was $2,192,231 for the six months ended June 30, 2011,
compared to $1,356,605 for the same period in 2010.
Modified Earnings before interest, taxes, depreciation
amortization and stock-based compensation ("Modified EBITDA") are a
non-GAAP financial measure. Modified EBITDA for the three
months ended June 30, 2011 was $9,712, compared to ($160,108) for
the same period in 2010. Modified EBITDA for the six months
ended June 30, 2011 was $(416,951) compared to ($243,753) for the
same period in 2010.
The Company's quarter-to-quarter revenue growth was
approximately $480,000, or 26%, for the three months ended June 30,
2011, compared to the three months ended March 31, 2011.
Commenting on the results, Mr. David Dugas, CEO of ESP
Resources, Inc., stated, "June was a record month in our history
with sales of over $1,000,000. In addition, this second
quarter marks the first quarter in the company's history where we
have topped $2,000,000 in sales. Our continued sales growth
continues to highlight our performance to new and existing
customers and the unique aspects of the product and services we
offer, especially with the added impact of our petrochemical
products and services to our customers in the fracking
business. Furthermore, our overseas opportunities continue to
develop dramatically and we are confident that this, coupled with
the growth of our existing business, will continue to show these
levels of sales increases in the coming quarters as well," Dugas
stated further.
The Company uses Modified EBITDA as an unaudited supplemental
financial measure to assess the financial performance of its assets
without regard to financing methods, capital structures, taxes or
historical cost basis; the Company's liquidity and operating
performance over time in relation to other companies that own
similar assets and that the Company believes calculate Modified
EBITDA in a similar manner; and the ability of the Company's assets
to generate cash sufficient to pay potential interest
costs. The Company also understands that such data are used by
investors to assess its performance. However, the term
Modified EBITDA is not defined under generally accepted accounting
principles and Modified EBITDA is not a measure of operating
income, operating performance or liquidity presented in accordance
with generally accepted accounting principles. When assessing
the Company's operating performance or liquidity, investors should
not consider this data in isolation or as a substitute for net
income, cash flow from operating activities, or other cash flow
data calculated in accordance with generally accepted accounting
principles.
About ESP Resources,
Inc.:
ESP Resources, Inc. is a publicly-traded (OTCBB:ESPI) oil and
gas services company offering analytical services and essential
custom-blended oil and gas well chemicals which improve production
yields and overall efficiencies. Through its wholly owned
subsidiary, ESP Petrochemicals, Inc., the Company distributes its
product line throughout the oil and gas producing regions of
Louisiana, Texas, Mississippi, Alabama, Arkansas and
Oklahoma. The Company also distributes internationally though
oil and gas service companies in other prolific oil and gas well
regions throughout the world. 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 www.espchem.com.
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