Blue Star Foods Reports $3.5 Million Revenue for First Half 2023 Ended June 30, 2023

Rhea-AI Summary

Blue Star Foods Corp. reports decrease in operating loss and improvement in balance sheet

Positive

• Reduction in operating expenses led to decrease in operating loss
• Strengthened balance sheet by paying off $5 million asset based line of credit to zero

Negative

• Revenue decreased by 44% to $1.7 million for the three months ended June 30, 2023
• Net loss increased by 1% to $1.5 million for the three months ended June 30, 2023

Reduction in Operating Expenses Led to Decrease in Operating Loss

Miami, FL, Aug. 22, 2023 (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 Systems (“RAS”), announced unaudited financial and operational results for the three and six months ended June 30, 2023.

Key Financial Highlights for the Three Months Ended June 30, 2023

• Revenue of $1.7 million
• RAS revenues increased to $0.5 million
• Gross profit of $0.1 million
• Operating loss of $1.1 million
• Net loss of $1.5 million (included $0.4 million of non-cash loss on settlement of stock, amortization of debt note and one-time non-recurring expenses)
• Adjusted EBITDA loss of $0.7 million
• Inventory and RAS biomass of $3.2 million at June 30, 2023
  

Key Financial Highlights for the Six Months Ended June 30, 2023

• Revenue of $3.6 million
• RAS revenues increased to $1.1 million
• Gross profit of $0.4 million
• Operating loss of $2.0 million
• Net loss of $3.4 million (included $1.5 million of non-cash loss on settlement of stock, amortization of debt note and one-time non-recurring expenses)
• Adjusted EBITDA loss of $0.5 million

Business Highlights for the Three Months Ended June 30, 2023

• Regained compliance with NASDAQ minimum bid price requirement
• Granted option to purchase land for RAS expansion in South Carolina
• Strengthened balance sheet by paying off $5 million asset based line of credit to zero
• Entered into a supply agreement for $1 million annually with Bloomin’ Brands
• Included in two most prominent sustainability reporting standards
• Ramped shipments to Just Food For Dogs under its supply agreement for up to $4 million annually

Management Commentary

John Keeler, Chairman and CEO of Blue Star, commented, “While our first half of 2023 revenue performance was not as high as expected, we have taken necessary steps to reduce our cash burn and improve the liabilities portion of our balance sheet. We are pleased to report progress on the RAS side of our business, highlighted by our option to purchase land in South Carolina for our expansion. New business from prominent national retail brands such as Bloomin’ Brands and Just Food For Dogs are gaining traction as we seek to recover our decline in revenue over the next twelve months. We look forward to the remainder of 2023 and look forward to providing updates on our progress.”

Financial Results for the Three Months Ended June 30, 2023

• Revenue for the three months ended June 30, 2023, decreased by $1.3 million, or 44%, to $1.7 million compared to $3.0 million for the three months ended June 30, 2022. The decrease in revenue was primarily due to a decrease in poundage sold during the three months ended June 30, 2023.
  
• Gross profit for the three months ended June 30, 2023, decreased by $0.3 million, or 76%, to $0.1 million compared to $0.3 million for the three months ended June 30, 2022. This decrease is attributable to a decrease in revenue. The resulting gross margin was 4.9%, compared with 11.4% for the three months ended June 30, 2022.
  
• Operating loss for the three months ended June 30, 2023, decreased by $0.1 million, or 5%, to $1.1 million, compared to $1.1 million for the three months ended June 30, 2022. Operating loss for the three months ended June 30, 2023 included non-cash or one-time non-recurring operating expenses of $0.4 million, comprised of non-cash items of $0.03 million in depreciation and amortization, $0.3 million of loss on settlement of stock, $0.2 million accrued portion of convertible debt and $0.03 million in non-cash stock compensation.
  
• Net loss for the three months June 30, 2023, increased by $0.0 million, or 1%, to $1.5 million, compared to $1.4 million for the three months ended June 30, 2022. The increase in net loss is primarily attributable to increases of loss on settlement of debt.
  
• Adjusted EBITDA loss for the three months ended June 30, 2023, decreased by $0.3 million, or 30% to $0.7 million, compared to $1.0 million for the three months ended June 30, 2022.
  

Financial Results for the Six Months Ended June 30, 2023

• Revenue for the six months ended June 30, 2023, decreased by $4.7 million, or 57%, to $3.6 million compared to $8.3 million for the six months ended June 30, 2022. The decrease in revenue was primarily due to a decrease in poundage sold during the six months ended June 30, 2023.
  
• Gross profit for the six months ended June 30, 2023, decreased by $0.5 million, or 56%, to $0.4 million compared to $0.8 million for the six months ended June 30, 2022. This decrease is attributable to a decrease in revenue. The resulting gross margin was 10.3%, compared with 10.0% for the six months ended June 30, 2022.
  
• Operating loss for the six months ended June 30, 2023, increased by $0.0 million, or 2%, to $2.0 million, compared to $2.0 million for the six months ended June 30, 2022. Operating loss for the six months ended June 30, 2023 included non-cash or one-time non-recurring operating expenses of $1.5 million, comprised of non-cash items of $0.03 million in depreciation and amortization, $0.83 million of loss on settlement of stock, $0.5 million accrued portion of convertible debt and $0.08 million in non-cash stock compensation.
  
• Net loss for the six months June 30, 2023, increased by $0.9 million, or 37%, to $3.4 million, compared to $2.5 million for the six months ended June 30, 2022. The increase in net loss is primarily attributable to increases of loss on settlement of debt and interest expense related to Lind notes amortization.
  
• Adjusted EBITDA loss for the six months ended June 30, 2023, decreased by $0.8 million, or 62% to $0.5 million, compared to $1.3 million for the six months ended June 30, 2022.
  

About Blue Star Foods Corp. (NASDAQ: BSFC)
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 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, 2022, and other periodic and current reports filed with the Securities and Exchange Commission. The Company is under no obligation, 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 Contact:
Investors@bluestarfoods.com