SCOTT, La., Nov. 7, 2011 (GLOBE NEWSWIRE) -- 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 nine months ended September 30, 2011.
For the three months ended September 30, 2011, sales were $3,383,217, compared to $1,309,326 for the same period in 2010, an increase of $2,073,891, or 158%. For the nine months ended September 30, 2011, sales were $7,493,438, compared to $3,627,972 for the same period in 2010, an increase of $3,865,466, or 107%. The increase was due to several factors including the expanded customer base from increased sales coverage in the Southern Louisiana, South Texas, Southeastern Texas and Arkansas regions and sales volume increased from petrochemical sales and services to customers engaged in the hydraulic fracturing of oil and gas wells. 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.
Gross profit was $1,956,527 for the three months ended September 30, 2011, or 58%, compared to $587,338 for the same period in 2010, or 45%. Gross profit was $4,148,758 for the nine months ended June 30, 2011, or 55%, compared to $1,943,943 for the same period in 2010, or 54%. The increase of 13% in gross profit for the three month period in 2011 is the result of decrease in costs as a percentage of sales for certain petrochemical components used to service the Company's customers engaged in the hydraulic fracturing of oil and gas wells, compared to 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 September 30, 2011 was $113,618, compared to $73,746 for the same period in 2010. Modified EBITDA for the nine months ended September 30, 2011 was $(303,329) compared to $(170,007) for the same period in 2010.
The Company's quarter-to-quarter revenue growth was approximately $1,088,152, or 47%, for the three months ended September 30, 2011, compared to the three months ended June 30, 2011.
Commenting on the results, Mr. David Dugas, CEO of ESP Resources, Inc., stated, "We continue to break monthly and quarterly sales records. Just this past second quarter, we marked the first quarter in the company's history where we have topped $2,000,000 in sales. Now, in this third quarter, we approached $3,500,000 in quarterly sales. As previously stated, our continued sales growth highlights 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."
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 www.espchem.com/">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. Any reference herein to "ESP Resources", the "Company", "we", "our" or "us" is intended to mean ESP Resources, Inc., including the wholly-owned subsidiary indicated above, unless otherwise indicated. 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. 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.