Blue Star Foods Reports First Quarter 2022 Financial Results Highlighted by 114% Revenue Growth to $5.3 Million

Miami, FL, May 16, 2022 (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), today announced financial and operational results for the three months ended March 31, 2022.

Key Financial Highlights for the Three Months Ended March 31, 2022, Compared to the Prior Year Period

• Revenue increased 114% to $5.3 million
• Gross profit increased 62% to $0.5 million
• Net loss increased 120% to $1.0 million – included a total of $0.7 million in non-cash or one-time non-recurring expenses
• Adjusted EBITDA loss increased 122% to $0.4 million
• Positive EBITDA from the three operating subsidiaries of $27,967
• Totals assets increased 28% to $20.4 million

Business Highlights for the Three Months Ended March 31, 2022

• Acquired assets of Beaufort, South Carolina-based Gault Seafood, LLC, a RAS company with unique technology focused on harvesting the Atlantic Blue Crab during its off-season
• Commenced operations of soft-shell crab RAS division in South Carolina
• Received $5 million investment from Lind Global Fund II LP

Subsequent Events (Since March 31, 2022)

• Appointed Miozotis Ponce as Chief Operating Officer
• Appointed Silvia Alana and Juan Carlos Dalto to Board of Directors

Management Commentary

John Keeler, Chairman and CEO of Blue Star, commented, “We made tremendous progress in the first quarter of 2022, returning to pre-Covid-19 pandemic levels and further expansion in Recirculatory Aquaculture Systems (RAS) with our Gault Seafood asset acquisition. Our revenue growth of 114% to $5.3 million even surpassed our previously issued guidance which had called for $5.0 million revenue.”

Keeler continued, “We are executing on plan by shifting toward indoor fish farming utilizing new innovative technologies coupled with our sustainable resource management model. We believe macro seafood trends are in our favor with seafood demand forecasted to greatly outweigh supply over the next few decades and a movement for environmental safety to combat overfishing, ocean pollution and microplastics. Our land-based RAS model and diversification of marine protein species is a major differentiator for us.”

Keeler concluded, “We are really excited about the remainder of 2022 and as we look into 2023 with our legacy and distribution business providing us a strong and growing platform and our carefully conceived expansion plans for RAS-based soft-shell crab and steelhead salmon. We have well thought-out plans in both South Carolina and British Columbia, Canada with a keen eye on building shareholder value as we expand our RAS business. We look forward to updating the market and our shareholders with our progress on both internal growth initiatives and potential strategic acquisitions.”

Financial Results for the Three Months Ended March 31, 2022

• Revenue for the three months ended March 31, 2022, increased 114.2% to $5.3 million as compared to $2.5 million for the three months ended March 31, 2021, as a result of higher market prices of our product together with sales of our new Taste of BC Aquafarms (TOBC) and soft-shell crab operations.

• Gross profit for the three months ended March 31, 2022 increased 62% to $0.5 million as compared to $0.3 million in the three months ended March 31, 2021. This increase is attributable to higher market prices of our product together with sales of our new TOBC and soft-shell crab operations.

• Gross margin for the three months ended March 31, 2022, decreased to 9.2% as compared to 12.2% for the three months ended March 31, 2021. This decrease is attributable to cost of goods inflation and rapid LTL freight fuel surcharges. Over time, we hope to pass this on through higher wholesale prices, but it’s difficult in the short-term month-to-month.

• Operating loss for the three months ended March 31, 2022, increased by $0.6 million, or 120%, to $1.0 million, compared to $0.4 million for the three months ended March 31, 2021. The increase in operating expenses for the three months ended March 31, 2022 was attributable to increases in salaries for existing and new employees, acquisition costs, startup costs for our softshell pilot facility and offering costs associated with the Lind Global Fund capital raise. Of note, operating loss for the three months ended March 31, 2022, included non-cash or one-time non-recurring operating expenses totaling $0.7 million, comprised of non-cash items of $0.3 million in depreciation and amortization and $0.3 million in stock compensation and one-time non-recurring operating expenses totaling $0.1 million associated with legal and professional fees in the Gault Seafood asset acquisition.

• Net loss for the three months ended March 31, 2022, increased by $0.6 million, to $1.1 million, compared to $0.5 million for the three months ended March 31, 2021. The increase in net loss is primarily attributable to increases in salaries and wages and other expenses in connection with the acquisition and startup of the soft-shell crab operation. The resulting EPS loss for the three months ended March 31, 2022, was ($0.04), as compared to an EPS loss of ($0.03) for the three months ended March 31, 2021.

• Adjusted EBITDA loss for the three months ended March 31, 2022, increased by $0.2 million, to $0.4 million, compared to $0.2 million for the three months ended March 31, 2021.

• As of March 31, 2022, Blue Star had approximately $3.0 million in cash, compared to $1.2 million on December 31, 2021.

About Blue Star Foods Corp. (NASDAQ: BSFC)

Blue Star Foods Corp. is an integrated ESG sustainable 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: 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, 2021, and other periodic and current reports filed with the Securities and Exchange Commission. The Company is under no obligation to, 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 Contacts:
IR@bluestarfoods.com