Miami, Florida, Aug. 17, 2020 (GLOBE NEWSWIRE) -- August 17th, 2020 – Blue Star Foods Corp. (OTC:BSFC), (“Blue Star”), a sustainable seafood company, announced last Wednesday, August 12th, its financial results for the quarter ended June 30th, 2020 (“Q2-2020”).
Results of Operations – (Three months ended June 30, 2020 and 2019)
| • | Revenue Impacted by COVID-19. Revenue for the three months ended June 30, 2020 decreased 62.0% to $2,865,103 as compared to $7,532,474 for the three months ended June 30, 2019. | |
| Primarily this was a result of a decrease in poundage sold due to the impact of the COVID-19 pandemic, specifically in the food service sector and the cruise line industry that Blue Star serves. | ||
| • | Net Cash Loss: The Net Cash Loss for Q2-2020 was $733,121. The Company had a net loss of $3,490,933 for the three months ended June 30, 2020 as compared to a net loss of $952,796 for the three months ended June 30, 2019. | |
| The increase in net loss is primarily attributable to a non-cash expense related to a recapitalization fee of $2,655,292 during the three months ending June 30, 2020. This recapitalization of existing debt issues equity to a debt holder of the Company, making them a long-term equity holder of Blue Star. An additional $102,520 worth of equity was issued for various professional expenses and equity dividends. |
Other Strategic & Operating Highlights (Three months ended June 30, 2020 and 2019)
| • | Reduction in Operating Expenses. Other operating expenses decreased by 53.1% from $665,206 for the three months ended June 30, 2019 to $311,944 for the three months ended June 30, 2020. | |
| The decrease of $353,262 is attributable the Company’s efforts to reduce all fixed expenses related to its operations, including negotiating less expensive freight rates, a reduction in business travel and marketing costs. | ||
| • | Sustainability Initiatives. In our ongoing pursuit to be a leader in the sustainable seafood space, Blue Star began the process of integrating onto the EcoVadis platform in Q2-2020. EcoVadis is a ratings platform that assesses and audits a corporation’s social responsibility and sustainable procurement. Blue Star believes that like-minded companies will choose to do business with one another to support the sustainability business model and expects to be on the EcoVadis platform by the middle of Q3 2020. |
The Company’s Chairman and CEO, John Keeler stated, “While the last few months have been a difficult operating environment for the seafood industry, our focus remains the safety of our employees and being a stable and reliable partner to our suppliers and customers. Obviously, our revenues have been impacted by the uncertainty that many of our customers in the foodservice and cruise line industry face. We had the severe shutdown since late March, followed by a cautious return to normalcy in late May with limited service, take-out and curbside operations, followed by another wave of state-wide closings.” He further added. “We have taken some measures to cut costs where necessary and we believe we’ll emerge from this period stronger than ever.”
About Blue Star Foods Corp.
Blue Star Foods Corp. is a sustainable seafood company that processes, packages and sells refrigerated pasteurized Blue Crab meat, and other premium seafood products. The Company believes it utilizes best-in-class technology, in both resource sustainability management and traceability, and ecological packaging. Its products are currently sold in the United States, Mexico, Canada, the Caribbean, the United Kingdom, France, the Middle East, Singapore and Hong Kong. The company headquarters is in Miami, Florida (United States), and its corporate website is: http://www.bluestarfoods.com.
Contacts
Constantino Gutierrez | Newbridge Securities Corporation
cgutierrez@newbridgesecurities.com | Office: (480) 207-1824