Blue Star Foods Reports First Quarter 2022 Financial Results Highlighted by 114% Revenue Growth to $5.3 Million
May 16 2022 - 9:54AM
Blue Star Foods Corp., (“Blue Star,” the “Company,” “we,” “our” or
“us”) (NASDAQ: BSFC), an integrated Environmental, Social, and
Governance (ESG) sustainable seafood company with a focus on
Recirculatory Aquaculture Systems (RAS), today announced financial
and operational results for the three months ended March 31, 2022.
Key Financial Highlights for
the Three Months
Ended March 31,
2022, Compared to
the Prior Year Period
- Revenue increased 114% to $5.3 million
- Gross profit increased 62% to $0.5 million
- Net loss increased 120% to $1.0 million - included a total of
$0.7 million in non-cash or one-time non-recurring expenses
- Adjusted EBITDA loss increased 122% to $0.4 million
- Positive EBITDA from the three operating subsidiaries of
$27,967
- Totals assets increased 28% to $20.4 million
Business Highlights for the Three
Months Ended March 31,
2022
- Acquired assets of Beaufort, South Carolina-based Gault
Seafood, LLC, a RAS company with unique technology focused on
harvesting the Atlantic Blue Crab during its off-season
- Commenced operations of soft-shell crab RAS division in South
Carolina
- Received $5 million investment from Lind Global Fund II LP
Subsequent Events
(Since
March 31,
2022)
- Appointed Miozotis Ponce as Chief Operating Officer
- Appointed Silvia Alana and Juan Carlos Dalto to Board of
Directors
Management Commentary
John Keeler, Chairman and CEO of Blue Star,
commented, “We made tremendous progress in the first quarter of
2022, returning to pre-Covid-19 pandemic levels and further
expansion in Recirculatory Aquaculture Systems (RAS) with our Gault
Seafood asset acquisition. Our revenue growth of 114% to $5.3
million even surpassed our previously issued guidance which had
called for $5.0 million revenue.”
Keeler continued, “We are executing on plan by
shifting toward indoor fish farming utilizing new innovative
technologies coupled with our sustainable resource management
model. We believe macro seafood trends are in our favor with
seafood demand forecasted to greatly outweigh supply over the next
few decades and a movement for environmental safety to combat
overfishing, ocean pollution and microplastics. Our land-based RAS
model and diversification of marine protein species is a major
differentiator for us.”
Keeler concluded, “We are really excited about
the remainder of 2022 and as we look into 2023 with our legacy and
distribution business providing us a strong and growing platform
and our carefully conceived expansion plans for RAS-based
soft-shell crab and steelhead salmon. We have well thought-out
plans in both South Carolina and British Columbia, Canada with a
keen eye on building shareholder value as we expand our RAS
business. We look forward to updating the market and our
shareholders with our progress on both internal growth initiatives
and potential strategic acquisitions.”
Financial Results for the Three
Months Ended March
31, 2022
- Revenue for the three months ended
March 31, 2022, increased 114.2% to $5.3 million as compared to
$2.5 million for the three months ended March 31, 2021, as a result
of higher market prices of our product together with sales of our
new Taste of BC Aquafarms (TOBC) and soft-shell crab
operations.
- Gross profit for the three months
ended March 31, 2022 increased 62% to $0.5 million as compared to
$0.3 million in the three months ended March 31, 2021. This
increase is attributable to higher market prices of our product
together with sales of our new TOBC and soft-shell crab
operations.
- Gross margin for the three months
ended March 31, 2022, decreased to 9.2% as compared to 12.2% for
the three months ended March 31, 2021. This decrease is
attributable to cost of goods inflation and rapid LTL freight fuel
surcharges. Over time, we hope to pass this on through higher
wholesale prices, but it’s difficult in the short-term
month-to-month.
- Operating loss for the three months
ended March 31, 2022, increased by $0.6 million, or 120%, to $1.0
million, compared to $0.4 million for the three months ended March
31, 2021. The increase in operating expenses for the three months
ended March 31, 2022 was attributable to increases in salaries for
existing and new employees, acquisition costs, startup costs for
our softshell pilot facility and offering costs associated with the
Lind Global Fund capital raise. Of note, operating loss for the
three months ended March 31, 2022, included non-cash or one-time
non-recurring operating expenses totaling $0.7 million, comprised
of non-cash items of $0.3 million in depreciation and amortization
and $0.3 million in stock compensation and one-time non-recurring
operating expenses totaling $0.1 million associated with legal and
professional fees in the Gault Seafood asset acquisition.
- Net loss for the three months ended
March 31, 2022, increased by $0.6 million, to $1.1 million,
compared to $0.5 million for the three months ended March 31, 2021.
The increase in net loss is primarily attributable to increases in
salaries and wages and other expenses in connection with the
acquisition and startup of the soft-shell crab operation. The
resulting EPS loss for the three months ended March 31, 2022, was
($0.04), as compared to an EPS loss of ($0.03) for the three months
ended March 31, 2021.
- Adjusted EBITDA loss for the three
months ended March 31, 2022, increased by $0.2 million, to $0.4
million, compared to $0.2 million for the three months ended March
31, 2021.
- As of March 31, 2022, Blue Star had
approximately $3.0 million in cash, compared to $1.2 million on
December 31, 2021.
About Blue Star Foods Corp. (NASDAQ: BSFC)
Blue Star Foods Corp. is an integrated ESG
sustainable seafood company that processes, packages and sells
high-value seafood products. The Company believes it utilizes
best-in-class technology, in both resource sustainability
management and traceability, and ecological packaging. The Company
also owns and operates the oldest continuously operating
Recirculating Aquaculture System (RAS) full grow-out salmon farm in
North America. The Company is based in Miami, Florida, and its
corporate website is: https://bluestarfoods.com
Forward-Looking Statements:
The foregoing material may contain
“forward-looking statements” within the meaning of Section 27A of
the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934, each as amended. Forward-looking statements
include all statements that do not relate solely to historical or
current facts, including without limitation statements regarding
the Company’s product development and business prospects, and can
be identified by the use of words such as “may,” “will,” “expect,”
“project,” “estimate,” “anticipate,” “plan,” “believe,”
“potential,” “should,” “continue” or the negative versions of those
words or other comparable words. Forward-looking statements are not
guarantees of future actions or performance. These forward-looking
statements are based on information currently available to the
Company and its current plans or expectations and are subject to a
number of risks and uncertainties that could significantly affect
current plans. Risks concerning the Company’s business are
described in detail in the Company’s Annual Report on Form 10-K for
the year ended December 31, 2021, and other periodic and current
reports filed with the Securities and Exchange Commission. The
Company is under no obligation to, and expressly disclaims any such
obligation to, update or alter its forward-looking statements,
whether as a result of new information, future events or
otherwise.
Investor Contacts:IR@bluestarfoods.com
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