Blue Star Foods Corp. Reports Financial Results for Q2-2021

Rhea-AI Summary

Blue Star Foods Corp. (OTC: BSFC) reported Q2-2021 results with revenues of $2.129 million, down from $2.485 million in Q1-2021, primarily due to industry-wide supply chain challenges. The company announced the acquisition of Taste of BC Aquafarms and completed a $3 million private placement to strengthen its balance sheet. Operating expenses rose 12% to $843,319, driven by one-time legal fees. Adjusted cash net income improved to $31,573 from a loss, but net income remains a loss of $437,127.

Positive

• Acquisition of Taste of BC Aquafarms to enter the Food-Tech market.
• Completion of a $3 million private placement to strengthen financials.
• Signed significant vendor agreement for popular brands.

Negative

• Revenue decreased to $2.129 million, affected by supply chain challenges.
• Operating expenses increased by 12% due to one-time costs.

Miami, Florida, Aug. 16, 2021 (GLOBE NEWSWIRE) -- Blue Star Foods Corp., (OTC: BSFC) (“Blue Star” or “BSFC”), an integrated Environmental, Social, and Governance (ESG) seafood company, announced today general operating highlights and its financial results for the fiscal quarter ended June 30, 2021 (“Q2-2021”).

Q2-2021 Highlights

• M&A Activity - Blue Star Completed the acquisition of Taste of BC Aquafarms. The Company is a land-based Recirculating Aquaculture Systems (RAS) salmon farming operation, based in Nanaimo, British Columbia, Canada.
  
  
• New Orders. Blue Star signed a significant vendor agreement to supply two of its most popular trademarked brands “Blue Star” and “Pacifika”, to a leading national foodservice warehouse supplier.
  
  
• Completion of Private Placement - Blue Star raised $3 million dollars through a self-directed private placement.
  
  
• Application to the NASDAQ - The Company filed an initial application to list common shares on the NASDAQ Stock Market.
  
  

Management Commentary

“The second quarter has been a very exciting time for us, in closing our second acquisition of Taste of BC and successfully completing a $3 million Private Placement. The acquisition of Taste of BC marks our entry into a massive “Food-Tech” market and gives us an opportunity to scale this RAS technology in a modular and replicable manner. We recently signed a multi-phase engineering contract with PR Aqua and are currently in the process of site selection and applying for the necessary building permits for the next 1,500 MT facility,” said John Keeler, CEO of Blue Star Foods. “This capital we have raised strengthens our balance sheet and gives us additional working capital to finance the new orders we have been receiving. We are also continuing to work towards meeting the NASDAQ requirements so that we may uplist at the appropriate time. We expect to update shareholders on this matter in the near-future.”

Q2-2021 Financial Highlights

• Sales Continue To Be Impacted by Industry Wide Supply Chain challenges. Revenue for the three months ended June 30, 2021, was $2.129 Million as compared to $2.485 Million for the three months ended March 31, 2021. Industry wide issues such as port congestion and a shortage in reefer containers causes for the company not be able to fill all the orders it received in Q2-2021.
  
  
• Small Increase In Operating Expenses. Operating Expenses for the three months ended June 30, 2021, increased 12% to $843,319 as compared to $746,866 for the three months ended March 31, 2021. This increase was primarily attributable to one-time (mostly non-cash) legal fees for the private placement, the acquisition of Taste of BC Aquafarms and the NASDAQ application process.

Profitability. The Adjusted Cash Net Income⁽¹⁾ for the three months ended June 30, 2021, was $31,573 compared to a loss of $171,000 for the three months ended March 31, 2021. The increase in Adjusted Cash Net Income is mainly attributed to a reduction in cash expenses, and an emphasis on profitability. Net Income for the three months ended June 30, 2021, was a loss of $437,127 compared with a loss of $478,000 for the three months ended March 31, 2021.

About Blue Star Foods Corp.

Blue Star Foods Corp. is an integrated ESG 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: www.bluestarfoods.com.

      (1)   The Adjusted Cash Net Income is a Non-GAAP Financial Measure and is the Company’s Net Income adjusted for the minor issuance of stock dividends and certain professional fees. We report Adjusted Cash Net Income to measure our overall results because we believe it better reflects our net results by excluding the impact of non-cash equity-based compensation and other one-time expenses, and believe it enhances our investors’ overall understanding of the financial performance of our business. The Cash Adjusted Net Income of $31,573 for Q2-2021 includes an addback of Interest Expense (and accrued) of $139,998, Depreciation/Amortization of $55,911 and Stock Based Professional Fees of $272,791.

Safe Harbor

This press release contains statements, which may constitute “forward-looking statements”. Those statements include statements regarding the intent, belief, or current expectations of the Company and members of its management team, as well as the assumptions on which such statements are based. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Important factors currently known to management that may cause actual results to differ from those anticipated are discussed throughout the Company’s reports filed with Securities and Exchange Commission which are available at www.sec.gov as well as the Company’s web site at http://www.bluestarfoods.com. The Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.

Contacts
Brett Maas of Hayden IR
Email: brett@haydenir.com
Office: (646) 536-7331

FAQ

What were Blue Star Foods' Q2-2021 earnings results?

Blue Star Foods reported revenues of $2.129 million for Q2-2021, a decline from $2.485 million in Q1-2021.

How did Blue Star Foods perform financially in Q2-2021?

The company had an adjusted cash net income of $31,573 but reported a net loss of $437,127 in Q2-2021.

What was the impact of supply chain issues on Blue Star Foods' revenue?

Supply chain challenges significantly impacted Blue Star Foods, leading to a revenue decrease in Q2-2021.

What are the key highlights from Blue Star Foods' recent press release?

Key highlights include the acquisition of Taste of BC Aquafarms, a $3 million private placement, and a new vendor agreement.

Is Blue Star Foods applying for NASDAQ listing?

Yes, Blue Star Foods has filed an initial application to list its common shares on the NASDAQ Stock Market.