ESP Resources Reports 2012 Annual and Fourth Quarter Results

ESP Resources Reports 2012 Annual and Fourth Quarter Results 
Revenue Tops $18M for the Year; Company Provides Update on Outlook
for 2013 
THE WOODLANDS, TX -- (Marketwire) -- 04/01/13 --  ESP Resources, Inc.
(OTCBB: ESPI), an oil and gas services company, announced the
Company's audited financial results for the twelve and three months
ended December 31, 2012. 
Revenue for the year-ended December 31, 2012 was $18,086,765,
compared to $11,132,243 for the same period in 2011, an increase of
$6,954,522, or 62%. The increase was due to several factors including
an expanded customer base in the Southern Louisiana, Southeastern
Texas and Arkansas regions and an increase in sales volume as a
result of increased demand for petrochemical sales and services to
customers engaged in the hydraulic fracturing of oil and gas wells.
In addition, the Company increased revenue to several of its existing
customers through sales of additional production petrochemical
products at its existing customers' well-sites. 
The Company's gross profit, as a percentage of revenue for the year,
was 44% compared to 52% for the same period in 2011, a decrease of
8%. The decrease in gross margin was a result of a significant
increase in sales of completion petrochemicals that have a lower
gross profit margin compared to production petrochemicals. 
General and administrative expenses, net of amortization and
depreciation, impairment of certain intangible assets and a gain on
de-recognition of contingent liability increased by $2,390,445, or
27% for the year, compared to the same period in 2011. The increase
in expenses for the year is primarily due to the expansion of the
Company's operating personnel from 43 to 52 employees and the cost of
international business development of $828,000 that the Company spent
on evaluating and developing certain international opportunities
compared to $377,000 in the prior year. The Company also incurred
approximately $690,000 in legal fees in 2012 as a result of certain
litigation, namely the trade secret infringement lawsuit that the
Company initiated in March 2012 to protect its trade secrets and
$352,000 in development of environmental markets. There were no
comparable amounts in the prior fiscal year. The stock based
compensation included in the general and administrative expenses was
$2,482,678 and $2,960,428 for the years ended December 31, 2012 and
2011, respectively. 
Net loss for the year ended December 31, 2012 was $5,081,732, an
increase of $756,218 compared to a loss of $4,325,514 for the same
period in 2011. The primary reason for the increase in net loss was
an increase in derivative liability of $293,843 and, as noted above,
the investment in international and environmental development during
the year ended December 31, 2012. 
Mr. David Dugas, President of ESP Resources, Inc., commented, "Our
significant increase in revenues for 2012 highlights our unique
product and service offerings to our new and existing customers. We
will continue to strive for significant revenue increases, but we now
also recognize that it is incumbent upon us to reach profitability in
this next phase of our growth." 
Mr. Dugas continued, "We have already begun to implement a reduction
in our operating costs without sacrificing our ability to take
advantage of both domestic and international business opportunities.
International business development expenses, legal fees and
stock-based compensation are three areas that we can reduce expenses
since much of these costs were one-time expenses that will not be
realized in 2013." 
Mr. Dugas concluded by saying, "We believe that 2013 will be the year
that we will begin to see significant business from our international
business partners. We appreciate the support from all our
shareholders and are committed to our continued growth in 2013." 
Three Months Ended December 31, 2012 
Revenue for the quarter-ended December 31, 2012 was $3,734,494,
compared to $3,596,504 for the same period in 2011, an increase of
$137,990, or 4%. These increases were due to expanded sales coverage
in each of the Company's districts as well as increased sales volume
from the addition of completion petrochemical sales and services to
customers engaged in the hydraulic fracturing of oil and gas wells.
In addition, the Company increased revenue to several of its existing
customers through the supply of additional production petrochemical
products at its existing customers' well-sites. 
About ESP Resources, Inc.: 
ESP Resources, Inc. is a publicly traded oil and gas services company
(OTCBB: ESPI) headquartered in The Woodlands, Texas. Through its
subsidiaries, the Company manufactures, blends, distributes and
markets specialty chemicals and analytical services to the oil and
gas industry and also provides services for the upstream, midstream
and downstream sectors of the energy industry, including new
construction, major modifications to operational support for onshore
and offshore production, gathering, refining facilities and pipelines
designed to optimize performance and increase operators' return on
investment. The Company's senior management has over 100 years of
combined operating experience in the oil and gas services 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 
 
 
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