SCOTT, La., Nov. 16, 2010 (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 financial results for the three and nine months ended September 30, 2010.
Sales for the three and nine months ended September 30, 2010 were $1,309,326 and $3,627,972, compared to $760,504 and $2,010,882, respectively, for the same periods last year. This represents a 72.2% increase, or $548,822, for the three months and an 80.4% increase, or $1,617,090, for the nine months ended September 30, 2010. The increase was due to the expansion of the Company's customer base due to increased 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 was $587,338, or 44.9% of sales, and $1,943,943, or 53.6% of sales, for the three and nine months ended September 30, 2010, respectively. This represents a 14.5 percentage point increase and a 17.2 percentage point increase for each respective period. 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 a 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 experienced an increase in sales of higher gross margin chemical blends primarily in its South and East Texas regions.
Net loss decreased to ($776,474) and ($1,737,373) for the three months and nine months ended September 30, 2010, respectively, compared to a loss of ($2,000,374) and ($3,536,397) for the same periods in 2009. On an EBITDA basis, after adding back interest, depreciation, amortization and stock-based compensation, for the three months and nine months ended September 30, 2010, the Company's earnings were $7,493 compared to a loss of ($940,893) for the three months and a loss of ($290,739) compared to a loss of ($1,743,980) for the nine months ended September 30, 2010 and 2009, respectively.
Commenting on the results, Mr. David Dugas, President of ESP Resources, Inc., stated, "While our sales growth continues to highlight our performance to new and existing customers and the unique aspects of the product and services we offer, we are especially pleased with our greatly improved operating margins. We have maintained our position over the past few quarters that our focus on costing efficiencies, at the product and service levels, will pave the way for profitable operations in the future. This quarter's operating results demonstrate that position," Mr. Dugas stated further.
About www.espchem.com/">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 and Alabama, 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.