News for 'ESPI' - (ESP Resources, Inc. Reports Financial Results for the First Quarter Ended March 31, 2011)
SCOTT, La., May 17, 2011 (GlobeNewswire via COMTEX) -- 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 quarter
ended March 31, 2011.
Revenue for three months ended March 31, 2011 was $1,815,156, compared to
$1,015,576 for the same period in 2010, an increase of $799,580, or 79%. The
increase was due to several factors including the expanded customer base from
increased sales coverage in the Southern Louisiana, South Texas, East Texas and
Arkansas regions. The Company hired additional 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 to several of the Company's existing customers through
supply of additional petrochemical products at its customer well-sites.
Gross profit as a percentage of revenue was 43% for the three months ended March
31, 2011, as compared to 46% for same period in 2010. The 3% decrease was the
result of significantly increased equipment sales at new wells for several of
the Company's customers which have a lower margin than the Company's custom
designed chemical sales.
General and administrative expenses, net of depreciation and amortization,
increased by $706,864 for the three months ended March 31, 2011, compared to the
same period last year. The increase was primarily due to the increase in staff
and additions of new facilities in the Company's Longview, Texas and Guy,
Arkansas regions. The Company's personnel level increased from nineteen (19)
employees in 2010 to twenty-seven (27) employees in 2011 to accommodate the
increase in sales.
Net loss was $839,464 for the three months ended March 31, 2011, compared to a
loss of $426,985 for the same period in 2010. The increase for the period was
due to an increase in service and operations expenses as the Company continues
to expand into new sales regions and add further infrastructure to support
higher levels of sales in future periods.
Commenting on the results, Mr. David Dugas, President of ESP Resources, Inc.,
stated, "While we are excited about our continued sales growth, we are also
pleased that we are now adequately staffed to be able to support new customers
and the growing needs of our existing customer base. Investing in personnel to
deliver consistent and superior service to our customers is of paramount
importance as we drive sales," Mr. Dugas stated further.
About ESP Resources, Inc.:
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 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.
This news release was distributed by GlobeNewswire, www.globenewswire.com
SOURCE: ESP Resources, Inc.
By Staff
CONTACT: CONTACT: David Dugas, President
ESP Resources, Inc.
david.dugas@espchem.com
(337) 706-7056
(C) Copyright 2010 GlobeNewswire, Inc. All rights reserved.
-0-
INDUSTRY KEYWORD: Business Services
SUBJECT CODE: OIL
CHEMICALS
EARNINGS
Earnings Releases and Operating Results
