SCOTT, La., May 17, 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 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.
CONTACT: David Dugas, President ESP Resources, Inc. firstname.lastname@example.org (337) 706-7056