Blue Star Foods Corp. Reports Third Quarter 2020 Financial Results

Blue Star Foods Corp. Reports Third Quarter 2020 Financial Results




Blue Star Foods Corp. Reports Third Quarter 2020 Financial Results

Company Sales are Up 38.9% from Q2-2020 and Returns To Profitability

Miami, Florida, Nov. 16, 2020 (GLOBE NEWSWIRE) — Blue Star Foods Corp. (OTC:BSFC), (“Blue Star”), a sustainable seafood company, announced today its financial results for the quarter ended September 30th, 2020 (“Q3-2020”).

Results of Operations – (Three months ended September 30, 2020 vs. June 30, 2020)

  Increase In Sales. Revenue for the three months ended September 30, 2020 increased 38.9% to $3,980,151 as compared to $2,865,103 for the three months ended June 30, 2020.
     
    This is a result of an increase in poundage sold due to more focused sales into the retail food sector, and in particular, the market response to our patented Blue Star Brand “Eco-Fresh” pouches.
     
    The Eco-Fresh pouches have a QR code traceability feature affixed to them which means the supply chain can be verified by retail customers that appreciate the ethical packaging that consumes less energy, emits lower amounts of greenhouse gases and requires less waste management than cans or cups, which are the current industry packaging standards for pasteurized crab meat.
     
  Return To Profitability: The Adjusted Cash Net Income(*) for the three months ended September 30, 2020 was $63,298 vs. an Adjusted Cash Net Income Loss of $782,197 in the three months ended June 30, 2020.
     
    The return to profitability was directly due to an increase in sales to the retail food sector and improved operational efficiencies.

Other Strategic and Operating Highlights

  Significant Decrease in Year-Over-Year Outstanding Short-Term Debt. Total Current Liabilities as of September 30th, 2020 were $9,056,835 as compared to $12,722,490 as of September 30th, 2019, a reduction of $3,665,655.
     
    Throughout the last 12 months, the Company has been focused on improving its day sales inventory ratio and its cash conversion cycle which has allowed the Company to effectively lower its leverage.

The Company’s Chairman and CEO, John Keeler stated, “Almost all of our financial performance metrics improved in Q3-2020, including sales growth, a return to profitability on a cash basis, and the strengthening of our balance sheet. We believe our performance contrasts with other participants in the pasteurized crab meat space, who don’t have the retail market differentiator like we do. I am proud of my team’s resilience in the face of what are still challenging COVID-19 market conditions. As always, our focus is to continue to make improvements in the business, keep our team members safe, and to be a reliable partner to our growing retail base.” He further added, “While we continue to make improvements to our platform business, we have not stopped actively look for potential acquisition candidates that make sense in terms of both having operational synergies, and that have our core values such as improving the health of the oceans. We are determined to make some progress in this direction over the next several months.”

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.

  (*) The Adjusted Cash Net Income is a Non-GAAP Financial Measures 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 believe it enhances our investors’ overall understanding of the financial performance of our business. The Cash Adjusted Net Income of $63,298 includes an addback of an equity dividend paid of $28,260, and stock paid to consultants of $34,500.

Contacts

Constantino Gutierrez | Newbridge Securities Corporation
cgutierrez@newbridgesecurities.com | Office: (480) 207-1824