- Completes Transformational Year Setting Up for Estimated Accelerated Revenue Growth in 2022
- Positive EBITDA from the Three Operating Subsidiaries
Miami, FL, April 01, 2022 (GLOBE NEWSWIRE) -- 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 System (RAS), yesterday announced financial and operational results for the year ended December 31, 2021.
Blue Star is also pleased to pre-announce that its first quarter 2022 revenue is estimated to be at least $5.0 million, representing over 100% growth from the first quarter of 2021.
Key Financial Highlights for the Year Ended December 31, 2021, Compared to the Prior Year Period
- Revenue decreased 29% to $10.0 million
- Gross profit increased 34% to $2.0 million
- Gross margin increased to 20.0% from 10.5%
- Net loss decreased 41% to $2.6 million - included a total of $2.1 million in non-cash or one-time non-recurring expenses
- Positive EBITDA from the three operating subsidiaries of $0.5 million
Business Highlights for the Year Ended December 31, 2021
- Raised gross proceeds of $3.0 million in private placement in June 2021
- Closed $4.0 million underwritten public offering with concurrent uplist to the Nasdaq Capital Market in November 2021
- One of the Company’s subsidiaries, Taste of BC Aquafarms Inc., entered into a 30-month agreement to supply rainbow trout fingerlings for approximately $1 million
Subsequent Events (since December 31, 2021)
- 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
- Received $5 million investment from Lind Global Fund II LP
Management Commentary
John Keeler, Chairman and CEO of Blue Star, commented, “2021 represented a transformational period for Blue Star, highlighted by our uplist to Nasdaq, raising additional capital at increasing valuations, elevating our public profile and vastly improving our liquidity. We also believe that we continue to prove our M&A strategy, with now three successful acquisitions, which is to acquire new innovative technologies, or companies where we can layer in our sustainable resource management model, or that diversifies our offering of marine protein species.”
Keeler continued, “The key aspects I want to communicate to our shareholders are that 1) we believe that we have significant and growing demand for our sustainable crab meat product, and 2) we believe that we have the capital base to deliver the product to the marketplace. The fluctuations in quarter-to-quarter revenue have been related to supply-chain logistics that, we believe, everyone in our industry is dealing with. That is why we wanted to preannounce our Q1-2022 number, to show that the trend continues upward, and we believe the rest of the year will continue to build sales.”
We are really excited about the remainder of 2022, and we look forward to updating the market and our shareholders with our progress on both internal growth initiatives and potential strategic acquisitions. Over the next few months, we are participating in conferences and non-deal roadshows throughout the U.S., so please look for additional announcements regarding schedules.”
RAS Expansion Strategy
Our strategy of replicated modular expansion allows us greater flexibility in site selection in contrast to businesses that are looking to build 10,000 MT facilities or larger. We have selected our first property that meets all of our criteria for the next 1,500 MT phase of our expansion, which can potentially support up to 10,000 MT annual production. We believe we have the right formula to scale this in a significant way over the next several years, with an internal goal of 21,000 MTs by 2028.
The Blue Star Soft Shell Crab RAS Division
The Blue Star Soft Shell Crab RAS division is focused on using its recently acquired technology to harvest the Atlantic Blue Crab during its off-season. We are aiming to apply the unique technology acquired from Gault and start scaling up production in a significant way in South Carolina. We target August 2022 to be able to deliver our first off-season, fresh soft-shell crab product to consumers. In the meantime, we continue to search for the ideal property site, which will allow us to produce ten times what we will be able to produce in our pilot facility in South Carolina.
Financial Results for Year Ended December 31, 2021
- Revenue for the year ended December 31, 2021, decreased 29.3% to $9,973,264 as compared to $14,111,368 for the year ended December 31, 2020, as a result of a decrease in poundage sold due to the impact of the COVID-19 pandemic during the year ended December 31, 2021.
- Gross profit for the year ended December 31, 2021, increased to $1,993,434 as compared to gross profit of $1,487,792 for the year ended December 31, 2020. This increase is attributable to higher market prices and lower cost of goods sold in comparison to the year ended December 31, 2020.
- Gross margin for the year ended December 31, 2021, increased to 20.0% as compared to 10.5% for the year ended December 31, 2020. This increase is attributable to the price increases of our products.
- Operating loss for the year ended December 31, 2021, increased by $1 million, or 54%, to $2.8 million, compared to $1.8 million for the year ended December 31, 2020. Of note, operating loss for the year ended December 31, 2021, included non-cash or one-time non-recurring operating expenses totaling $2.1 million, comprised of non-cash items of $0.4 million in depreciation and amortization, $0.4 million in impairment loss and $1.2 million in stock compensation and one-time non-recurring operating expenses totaling $0.4 million associated with legal and professional fees in the TOBC acquisition and NASDAQ uplisting application.
- Net loss for the year ended December 31, 2021, decreased by $1.8 million, or 41%, to $2.6 million, compared to $4.4 million for the year ended December 31, 2020. The resulting EPS loss for the year ended December 31, 2021, was ($0.12), as compared to an EPS loss of ($0.25) for the year ended December 31, 2020.
- As of December 31, 2021, Blue Star had $1.2 million in cash, compared to $0.1 million on December 31, 2020.
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
