The Limestone Boat Company Announces Third Quarter 2022 Results
The Limestone Boat Company Limited (OTCQB: LMSBF) reported its Q3 FY 2022 financial results, indicating a revenue decrease of 33% from Q2 2022, totaling $2,913,677. Despite a 14% increase in average gross revenue per unit, unit production fell from 38 to 27 due to supply chain issues. The gross margin improved slightly to 4.7%, yielding a gross profit of $139,550. The company incurred an operating loss of $3,007,978 and comprehensive loss of $2,529,599. Manufacturing operations are temporarily suspended in Tennessee, pending financing solutions as the company seeks to maintain operations and pursue alternative liquidity options.
- Gross margin improved from 4.4% in Q2 2022 to 4.7% in Q3 2022.
- Average gross revenue per unit increased by 14% in Q3 2022 compared to Q2 2022.
- Management's adjustments to pricing are expected to yield higher average revenue per unit moving forward.
- Revenue decreased by 33% from $4,366,888 in Q2 2022 to $2,913,677 in Q3 2022.
- Unit production dropped from 38 units in Q2 2022 to 27 units in Q3 2022 due to supply chain delays.
- Operating loss of $3,007,978 recorded for Q3 2022.
COLLINGWOOD, Ontario, Nov. 29, 2022 (GLOBE NEWSWIRE) -- The Limestone Boat Company Limited (the “Company”) (TSXV: BOAT | OTCQB: LMSBF) – owner and builder of Aquasport Boats, Limestone® Boats and Boca Bay Boats – today reports its financial results for the three and nine months ended September 30, 2022 (“Q3 FY 2022"). All dollar amounts are in Canadian dollars unless otherwise noted.
The Company’s complete Financial Statements and Management Discussion and Analysis for the three and nine months ended September 30, 2022 are available at www.sedar.com or on the Company’s website at www.limestoneboatcompany.com.
Limestone has started to see the effects of management decisions taken in Q2 2022 concerning wholesale pricing and labour realignment with improvements in margin. These are attributable, in large part, to price increases implemented in April (
Unit production, however, decreased due to ongoing supply chain delays and financial constraints with 27 units shipped in Q3 2022 vs. 38 in Q2 2022, revenues decreased
Further to the Company’s Press Release on November 1, 2022, wherein the Company announced the withdrawal of the proposed financings of August 11, 2022 and October 21, 2022, the Company continues to pursue alternative liquidity financing proposals and remains committed to continuing its long-term operations. While the Company continues to pursue alternative liquidity financing proposals and strategic alternatives, the Company has temporarily suspended manufacturing operations at its facility in White Bluff, Tennessee and is maintaining its leadership team as it looks to resume operations as soon as possible.
Q3 2022 Financial Highlights:
- The Company generated revenues of
$2,913,677 and$11,045,153 for the three and nine months ended September 30, 2022, from continuing unit sales, production and expansion of operations. - The Company generated gross margin of
4.7% and4.3% , resulting in a gross profit of$139,550 and$475,697 for the three and nine months ended September 30, 2022. - The Company incurred operating expenses of
$3,147,528 and$8,429,822 , during the three and nine months ended September 30, 2022 in its operations. - Included in operating expenses were non-cash costs in the amount of
$(474,300) and$470,796 for the three and nine months ended September 30, 2022 relating to amortization and depreciation, accrued interest expense, accretion expense and deferred tax recovery related to convertible debentures, unrealized foreign exchange gain and stock based compensation. - The Company incurred an operating loss of
$3,007,978 and$7,954,125 for the three and nine months ended September 30, 2022. - The Company incurred a Comprehensive Loss of
$2,529,599 and$7,011,831 for the three and nine months ended September 30, 2022 which includes foreign exchange loss, deferred tax recovery and currency translation adjustment. - As of September 30, 2022, the Company had outstanding 119,565,940 common shares, 10,816,867 common share purchase warrants and 6,400,000 stock options.
- There are several risk factors facing the Company including but not limited to the suspension of manufacturing operations in its White Bluff, Tennessee facility November 1st 2022 pending completion of a financing. Additional risks are more fully described in the Company's Management Discussion and Analysis for Q3 2022 available on the Company's profile on www.sedar.com or on the Company’s website at www.limestoneboatcompany.com.
ABOUT THE LIMESTONE BOAT COMPANY LIMITED
The Limestone Boat Company – owner and builder of Aquasport Boats, Limestone® Boats and Boca Bay Boats - is publicly traded on the Toronto Venture Exchange under the ticker symbol BOAT and on the U.S.-based OTCQB® under the symbol LMSBF. They are headquartered in Collingwood, Ontario with a 145,000 sq. ft. manufacturing facility in White Bluff, Tennessee. The company is backed by dealer partners throughout the United States and the Canadian Great Lakes Region.
For more information, contact:
Bill Mitoulas | Investor Relations
800-720-2395
bill@limestoneboats.com
www.limestoneboatcompany.com
Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this news release.
Cautionary Note Regarding Forward-Looking Statements
Certain statements contained in this press release constitute forward-looking information. These statements relate to future events or future performance. The use of any of the words “anticipate”, “believe”, “could” “should”, “would”, “estimate”, “expect”, “forecast”, “indicate”, “intend”, “likely, “may”, “plan”, “potential”, “project”, “outlook”, “seek”, “target”, “trend” or “will” and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the parties’ current belief or assumptions as to the outcome and timing of such future events. Forward-looking statements in this press release include statements regarding positive trends in the gross margins of the Company, the expectation of resumed operation at the Company's facility in Tennessee, and improved gross profits. The forward- looking information contained in this release is made as of the date hereof and the parties are not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward-looking information. The foregoing statements expressly qualify any forward- looking information contained herein. Many factors could cause actual results, level of activity, performance or achievements or future events or developments to differ materially from those expressed or implied by the forward- looking statements.
All the forward-looking statements made in this press release are qualified by these cautionary statements and other cautionary statements or factors in this press release. There can be no assurance that the actual results or developments will be realized or, even if substantially realized, will have the expected consequences to, or effects on, the Company. Unless required by applicable securities law, the Company does not intend and does not assume any obligation to update these forward-looking statements.
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