ESP Resources (OTC:ESPI) Reports Solid Revenue Growth

ESP Resources (OTC:ESPI), a manufacturer, blender, distributor, and marketer of specialty chemicals and analytical services to the oil and gas industry, announced unaudited financial results for the year and fourth quarter ended December 31, 2010. As I write, shares of ESP Resources were flat at $0.155 per share on volume of just over 50,000 shares. The company has a market cap of $11 million and a 52-week range between $0.07 and $0.20 per share.

Revenue for the year-ended December 31, 2010 was $5,477,359, compared to $2,738,266 for the same period in 2009, an increase of $2,739,093, or 100%.

The Company's gross profit as a percentage of revenue for the year was 56.8%, compared to 45% for the same period in 2009, an increase of 11.8%. Net loss decreased 56.7% to ($2,075,131) for 2010 as compared to ($4,790,267) for 2009. On an adjusted EBITDA basis, after adding back interest, depreciation, amortization and stock-based compensation, net loss decreased 84.4% to ($342,836) as compared to ($2,202,716) for the respective period.

Revenue for three months ended December 31, 2010 was $1,849,387, compared to $727,384 for the same period in 2009, an increase of $1,122,003, or 154.3%.

The Company's gross profit as a percentage of revenue for the period was 63.1%, compared to 68.6%, for the same period in 2009, a decrease of 5.5%.

Net loss decreased 73.1% to ($337,758) for the period, compared to ($1,253,870) for the same period in 2009. On an adjusted EBITDA basis, after adding back interest, depreciation, amortization and stock-based compensation, net loss decreased 79.9% to ($92,097) as compared to ($458,736) for the respective period.

The Company's quarter-to-quarter revenue growth was approximately $540,000, or 41.3%, for the three months ended December 31, 2010 compared to the three months ended September 30, 2010.

Commenting on the results, Mr. David Dugas, President of ESP Resources, Inc., stated, "Our sales growth continues to highlight our performance to new and existing customers and the unique aspects of the product and services we offer. In addition, as we expand, our costing efficiencies continue to increase as evidenced by our improving operating margins. This will continue to pave the way for profitable operations in the future," Mr. Dugas stated further.

More information is available on the Company's Website at www.espchem.com.

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