VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug. 25, 2016) - Gourmet Ocean Products Inc.
("Gourmet" or the "Company") (TSX VENTURE:GOP) announces its financial and operating results for the three months ended June 30,
2016.
Highlights
- During the three months ended June 30, 2016, Gourmet reported sales of $2,825, compared with $810,885 during the same
period of last year. The decrease in sales was primarily as a result of a decrease in the sales of sea cucumber in China. The
$2,825 sales were retail sales to Canadian market.
- Adjusted EBITDA for the three months ended June 30, 2016 was negative $331,538 versus negative $326,051 during the
corresponding period in 2015.
- Net loss for the three months period ended June 30, 2016 was $408,548, compared to a net loss of $442,577 in the same
period last year.
- During the three months ended June 30, 2016, the Company collected $300,000 of its outstanding accounts receivable in cash.
- At June 30, 2016, the Company had cash on deposit in the amount of $225,570.
- At June 30, 2016, the Company had a short-term debenture balance totaling $1,450,036, which includes loans carried in
CAD$1,400,000 and USD$40,000. Of these debentures, $1,080,036 loan was from one of related parties at an interest rate of 4%
and $370,000 loan ($100,000 from a related party and $270,000 from non-related parties) had an interest rate of 12% per annum.
The debentures are unsecured, non-convertible and have a maturity date of October 31, 2016.
SUMMARY OF FINANICAL RESULTS
|
|
Three-Month Period Ended (Unaudited) |
Change |
|
Nine-Month Period Ended (Unaudited) |
Change |
|
|
06/30/2016 |
06/30/2015 |
|
06/30/2016 |
06/30/2015 |
Sales |
|
2,825 |
810,885 |
-100% |
|
1,938,124 |
4,194,071 |
-54% |
Gross profit |
|
1,730 |
172,628 |
-99% |
|
737,631 |
879,306 |
-16% |
Gross margin (% of Sales) |
|
61.2% |
21.3% |
188% |
|
38.1% |
21.0% |
82% |
Net loss |
|
(408,548) |
(442,577) |
-8% |
|
(978,581) |
(1,461,057) |
-33% |
Adjusted EBITDA |
|
(331,538) |
(326,051) |
2% |
|
(723,328) |
(1,044,715) |
-31% |
Earnings per share - basic |
|
(0.003) |
(0.004) |
|
|
(0.008) |
(0.012) |
|
Weighted average number of shares |
|
|
|
|
|
|
|
|
|
- Basic |
|
125,068,733 |
125,068,733 |
|
|
125,068,733 |
124,924,733 |
|
LIQUIDITY AND CAPITAL RESOURCES
At June 30, 2016, the Company had cash on deposit in the amount of $225,570, accounts and other receivables of $397,995,
prepaid expenses of $4,467 and inventory of $4,208,774 compared to cash on deposit in the amount of $582,787, accounts and other
receivables of $259,181, prepaid expenses of $105,949 and inventory of $3,647,856 at September 30, 2015.
At June 30, 2016, 2016, the Company maintained a strong working capital position of $2,783,134. The working capital position
as of September 30, 2015 was $3,609,027.
Net assets were $3,710,632 at June 30, 2016 compared to $4,680,089 at September 30, 2015.
OUTLOOK
An economic downturn in our initial market has resulted in reduced sales and financial performance. Our strategic objective is
to "right size" our organization and carefully manage our operations during current market conditions. As part of this effort we
are reducing our overhead costs by moving our head office from downtown Vancouver to Richmond, while at the same time adding to
our facilities, allowing us to diversify our business. We continue our efforts to diversify, both in terms of offering new
products and adding new markets, particularly, North America. We are currently building a larger product platform that can
provide better financial performance for investors when markets improve. There are economic and environmental risks in our
business; however, given the experience of our team in this industry and the expected long term demand for seafood, management
remains optimistic about the longer term prospects for the Company.
About Gourmet Ocean Products Inc.
Gourmet is a B.C.-based aquaculture company specializing in the production, distribution, marketing and sale of high-quality
specialty seafood products including sea cucumbers, scallops, and oyster with distribution to customers primarily in Asia and
Canada.
ON BEHALF OF THE BOARD
Peter Hughes, President, Chief Executive Officer
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of
the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This press release is not an offer of securities for sale in the United States. Securities may not be offered or
sold in the United States absent registration or an exemption from registration. Any public offering of securities by the Company
to be made in the United States will be made by means of a prospectus, which may be obtained from the Company and will contain
detailed information about the Company and its management, as well as financial statements.
Forward-Looking Statements
Certain of the statements made and information contained in this press release constitute forward-looking information within
the meaning of applicable securities legislation. Forward-looking statements in this press release include that (a) the Company
has adequate capital to grow its business and execute on its business plan, (b) continued growth in revenues is expected from
contracts with aquaculture farmers and distributors and (c) Gourmet's will become a global leader in aquaculture. All information
and statements which are not historical fact constitute forward-looking information and, in many cases, can be identified by
words such as "proposed", "may", "will", "expect", "intend", "anticipate", "believe", "estimate", "potential", or other similar
terminology. Forward-looking statements involve risks, assumptions, uncertainties and other factors that could cause actual
results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking
statements. Factors that could cause actual results to differ materially from the forward-looking statements made in this press
release include: products that are or become available from competitors, political and economic factors, including in China and
environmental factors. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove
incorrect, actual results, performance or achievements of the Company may vary materially from those described in this press
release. Accordingly, readers are advised not to place undue reliance on forward looking information. Except as otherwise
required by law, the Company does not intend to and assumes no obligation to update or revise forward looking information,
whether as a result of new information, plans, events or otherwise.