ESP Resources, an oil and gas company operating through its wholly owned subsidiary ESP Petrochemicals, offers analytical services and custom-blended oil and gas well chemicals to improve production yields and overall efficiencies. The company today announced its financial results for the full year and fourth quarter ended December 31, 2011.
"2011 was marked by an expansion in our sales coverage and a significant increase in our sales growth, coupled with continued focus on improving margins and building out our infrastructure to accommodate our current and future customers. We effectively doubled our sales volume for both the full year and fourth quarter of 2011 as well as modestly increased margins, as compared to 2010 periods. We saw increased demand for our beneficial and cost-saving petrochemical products and services and anticipate that demand will continue to grow," David Dugas, president of ESP Resources stated in the press release.
Fourth-quarter revenue increased 94 percent to $3.5 million, as compared to $1.8 million reported for the fourth quarter of 2010. Full-year 2011 revenue was $11.1 million, representing a 103 percent increase compared to full-year 2010 revenues of $5.4 million.
Gross profit as a percentage of revenue, or gross margin, increased 6 percent to 52 percent, as compared to gross profit of 46 percent reported for the comparable quarter of 2010. Full-year 2011 gross profit as a percentage of revenue, or gross margin, was 52 percent, as compared to 51 percent for the comparable 12 months in 2010, representing an increase of 1 percent.
ESP Resources reported a fourth-quarter net loss at $1.5 million, an increase compared to a net loss of $534,407 reported for the fourth quarter of 2010. Full-year 2011 net loss increased to $4.3 million, as compared to a net loss of $2.2 million reported in full-year 2010. The company noted that on modified earnings before interest, taxes, depreciation, amortization, and stock-based compensation (modified EBITDA) are a non-GAAP financial measure, according to which the company's loss was $381,901, as compared to a loss of $440,696 for the respective period in 2010.
The company did not provide detailed guidance for 2012, but Dugas said the company is looking forward to improvement.
"While we are not providing financial guidance at this time, we are confident that we will continue to grow sales, reduce cost, improve efficiencies and overall, bring a greater value to our shareholders. We look forward to updating the investment community on our progress throughout 2012," Dugas stated.
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