CALGARY, Aug. 15 /PRNewswire-FirstCall/ -- Birch Mountain Resources Ltd. ("Birch Mountain" or the "Company") (BMD: TSX and AMEX) yesterday reported financial results for the second quarter ended June 30, 2008, and they are filed at http://www.sedar.com/ and at http://www.sec.gov/.
Sales in the second quarter of 2008 were $5.6 million, an increase of $0.8 million or ~16% compared to sales of $4.8 million reported for the second quarter of 2007. The Company reports a loss of $4.7 million for the second quarter of 2008, a decrease of $1.2 million or ~20% compared to the loss of $5.9 million reported for the second quarter of 2007. Debentures of $59.5 million are reclassified as Current Liabilities due to the breach of covenants and non-payment of the interest due June 30th, 2008.
Summarized unaudited consolidated financial statements for the six months ending June 30, 2008 are reported in the tables below. To access the notes to the summary financial statements, the Company refers readers to its complete Second Quarter 2008 Financial Report as well as other informational disclosures on SEDAR at http://www.sedar.com/ and/or EDGAR at http://www.edgar.com/.
The Company continues to operate the Muskeg Valley Quarry and is delivering limestone aggregate and reagent products to its customers in the region. As announced on July 23, 2008, the process leading to an immediate sale or recapitalization of the Company continues under the direction of the Special Committee of independent directors.
Forward-Looking Statements: This news release contains certain forward-looking statements. All statements, other than statements of historical fact, included herein, including without limitation, statements regarding resources and reserves, exploration and development plans and results, anticipated capital expenditures and financing thereof, anticipated outcomes and timing of regulatory applications and approvals and the future plans and objectives of Birch Mountain are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Certain amounts in the financial statements are based on estimates using the best currently available information and assumptions of management. Important factors that could cause actual results to differ materially from Birch Mountain's expectations are disclosed elsewhere in documents that are available to the public at http://www.sedar.com/ and http://www.sec.gov/.
Birch Mountain Resources Ltd. Consolidated Balance Sheets Canadian Dollars (000's) UNAUDITED ------------------------------------------------------------------------- June 30, December 31, As At 2008 2007 ------------------------------------------------------------------------- Assets Current Bank overdraft $ (163) $ 9,493 Accounts receivable 4,614 1,821 Inventory 4,095 4,741 Prepaids and deposits 431 224 8,977 16,279 Long-term prepaid 137 137 Restricted cash 3,000 3,000 Property, plant and equipment 21,401 21,857 Mineral properties 56,210 54,765 ------------------------------------------------------------------------- $ 89,725 $ 96,038 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Liabilities and Shareholders' Equity Current Accounts payable and accrued liabilities $ 7,523 $ 5,094 Current portion of long term debt 1,099 1,065 Deferred charges 129 129 Convertible debentures 59,522 Other current liabilities 2,374 2,389 ------------------------------------------------------------------------- 70,647 8,677 Long term debt 4,380 4,939 Asset retirement obligation 3,080 1,680 Convertible debentures 58,699 ------------------------------------------------------------------------- 78,107 73,995 ------------------------------------------------------------------------- Commitments Shareholders' equity Share capital 49,710 49,632 Contributed surplus 14,759 14,404 Deficit (52,851) (41,993) ------------------------------------------------------------------------- 11,618 22,043 ------------------------------------------------------------------------- Total Liabilities and Shareholders' Equity $ 89,725 $ 96,038 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Birch Mountain Resources Ltd. Consolidated Statements of Loss, Comprehensive Loss and Deficit For the six months ended June 30 - UNAUDITED Canadian Dollars (000's) ------------------------------------------------------------------------- 3 Months 3 Months 6 Months 6 Months Ended Ended Ended Ended June 30, June 30, June 30, June 30, 2008 2007 2008 2007 ------------------------------------------------------------------------- Revenue Sales $ 5,611 $ 4,810 $ 5,893 $ 5,669 Cost of Sales 6,931 3,742 8,299 4,491 (1,320) 1,068 (2,406) 1,178 ------------------------------------------------------------------------- Expenses Amortization, Accretion and Depletion 606 217 1,205 438 Interest on long-term debt, bank charges and foreign exch. (gain)/loss 1,511 1,047 2,885 1,991 Mineral exploration costs - 122 - 230 Office 293 192 824 313 Professional fees 287 598 802 908 Indirect quarry costs 33 3,719 566 4,396 Salaries, wages and benefits 634 509 1,767 771 Shareholder services and marketing 108 265 270 591 Stock-based compensation 28 380 355 1,195 ------------------------------------------------------------------------- 3,500 7,049 8,674 10,833 ------------------------------------------------------------------------- Loss before other income (4,820) (5,981) (11,080) (9,655) Interest and other income 129 68 222 115 ------------------------------------------------------------------------- Net loss and comprehensive loss for the period (4,691) (5,913) (10,858) (9,539) ------------------------------------------------------------------------- Deficit, beginning of period (48,160) (21,112) (41,993) (17,484) Deficit, end of period $ (52,851) $ (27,025) $ (52,851) $ (27,025) ------------------------------------------------------------------------- ------------------------------------------------------------------------- Loss per share Basic and diluted (0.06) (0.07) (0.13) (0.11) ------------------------------------------------------------------------- -------------------------------------------------------------------------
