SAN DIEGO, November 18, 2011 /PRNewswire/ --
Umami Sustainable Seafood Inc. (OTCBB:UMAM) ("Umami" or the
"Company"), a holding company of fish farms supplying sashimi-grade
Northern Bluefin Tuna to the global market, announces operating
results for the three months ended September
30, 2011.
Sales were $14.4 million for the
three months ended September 30,
2011. There were no sales in the three months ended
September 30, 2010. The
increase is primarily due to sales related to the Baja operations, and management's decision to
meet current liquidity needs by harvesting some of the Company's
stock earlier in the yearly cycle.
Gross profit for the three months ended September 30, 2011 was $6.4 million, or 44% of sales, compared to
$0 for the corresponding period in
2010. Included in our cost of goods sold for the quarter is a
$1.3 million fair value adjustment
related to the Baja
acquisition. Excluding this adjustment to cost of goods sold,
Umami's gross margin for the three months ended September 30, 2011 would have been approximately
53%.
Net loss attributable to Umami stockholders for the three months
ended September 30, 2011 was
$0.7 million, as compared to a net
loss of $1.5 million for the same
period in 2010. Estimated non-GAAP net income attributable to
Umami shareholders using estimated catch and farming costs was
$0.6 for the three months ended
September 30, 2011.
Combined inventory (livestock) at September 30, 2011 was 4,358 metric tons,
compared to 2,027 metric tons at September
30, 2010. The increase during this quarter was
attributable to organic growth of livestock and the acquisition of
the Baja operations. The net
increase in biomass for the quarter ending September 30, 2011 was 1,583 metric tons,
representing a 416% increase over the 307 metric tons of increased
biomass in the quarter ending September 30,
2010.
In announcing these results, Oli Steindorsson, Chairman and CEO
of Umami, commented: "The Company concluded its first quarter
with marked strengthening of our financial position as result of
our ongoing improvements in operations and our deliberate decision
to begin our harvest during the first quarter of the reporting
year. We wanted to use the cash from those sales to even out
our cash flow for the year and to fund our operations moving
forward instead of taking on any additional debt. We also
reported a dramatic increase in our biomass at all of our
facilities for the three months ending in September of this year as
compared to the same quarter in 2010. We are working very
hard to build out and improve the capacity of operations at all of
our facilities in anticipation of the strong sales growth we expect
to see for the remainder of the fiscal year and into the
future."
We present non-GAAP gross profit measures and non-GAAP net
income attributable to Umami shareholders in the following tables.
Management believes these non-GAAP measures help indicate our
performance before the fair value purchase price adjustments to the
Baja inventory that are considered
by management to be representative of our on- going operating
results. Once the adjustments related to the fair value of
the Baja inventory due to the
purchase price adjustment have been fully recognized in cost of
sales in the future, these non-GAAP adjustments to cost of sales,
and the resulting non-GAAP measures, will no longer be
applicable.
The following non-GAAP table is a summary of our costs and margins
showing our gross margin and the effect of the purchase price adjustment
for the three months ended September 30, 2011 ($000):
Net Revenue $14,432
Cost of Goods Sold $(8,067)
Gross Profit $6,365
Gross Profit % 44%
Add back: Estimated Cost of Goods Sold in excess of catch
and farming costs $1,301
Estimated non-GAAP gross profit based on catch and farming
costs $7,666
Estimated non-GAAP gross profit % based on catch and farming costs 53%
The following table is a summary of non-GAAP net income attributable
to Umami shareholders adjusted for the effect the purchase price
adjustment had on the net income attributable to Umami shareholders
for the three months ended September 30, 2011 ($000):
Net loss attributable to Umami Shareholders $(747)
Plus estimated cost of goods sold in excess of catch and
farming costs $1,301
Estimated non-GAAP net income attributable to Umami shareholders using
estimated catch and farming costs $554
About Umami Sustainable Seafood Inc.
The Company owns and operates Kali Tuna, which is an established
Croatian based aquaculture operation raising Northern Bluefin Tuna
in the Croatian part of the Adriatic Sea and, as of November 30, 2010, Baja Aqua Farms, which is an
established Mexico based
aquaculture operation raising Northern Bluefin Tuna in the Pacific.
The Company intends to become the leader in aquaculture for
northern Bluefin tuna by acquisition and internal growth. The
growth of the Company will be founded on the sustainable management
of resources and economically sound practices, seeking
opportunities resulting from market consolidation and scientific
progress in the industry. We also intend to continue our research
into closed cycle farming technology for Bluefin tuna which has
produced encouraging results. For more information, please visit
http://www.umamiseafood.com.
Notice Regarding Forward Looking Statements
This press release contains projections and forward-looking
statements, as that term is defined in Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Statements in this
press release, which are not purely historical, are forward-looking
statements and can include, without limitation, statements based on
current expectations involving a number of risks and uncertainties
and which are not guarantees of future performance of the Company.
There are numerous risks and uncertainties that could cause actual
results and the Company's plans and objectives to differ materially
from those expressed in the forward-looking information, including
(i) adverse market conditions; (ii) any adverse occurrence with
respect to the farmed seafood industry generally or the businesses
of Kali Tuna and Baja
specifically; and (iii) changes in the regulatory environment.
Actual results and future events could differ materially from those
anticipated in such information. These and all subsequent written
and oral forward-looking information are based on estimates and
opinions of management on the dates they are made and are expressly
qualified in their entirety by this notice. Although the Company
believes that the beliefs, plans, expectations and intentions
contained in this press release are reasonable, there can be no
assurance those beliefs, plans, expectations or intentions will
prove to be accurate. Investors should consult all of the
information set forth herein and should also refer to the risk
factors set forth in the Company's Annual Report on Form 10-K filed
on November 14, 2011, and other
reports filed or to be filed from time-to-time with the Securities
and Exchange Commission.
SOURCE Umami Sustainable Seafood Inc.
