Umami Sustainable Seafood Inc. Announces Third Quarter Fiscal 2011 Results
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 and nine months ended
31, 2011
Sales were
increase of
2010
operations for the entire quarter in the current three months. Sales were
million
due to the consolidation of the
Gross profit for the three months ended
or 24%, of sales. Included in the cost of sales for
(18% of total sales) fair value adjustment representing the increase in the
carrying value of
purchased in the
cost. We expect the value of the future inventory that is caught and grown at
the
accordingly, we would expect our cost of sales as a percentage of revenue to
be approximately 60% once we have sold the inventory that was acquired.
Gross profit for the nine months ended
or 23% of sales. For the nine months ended
of total sales) fair value adjustment representing the increase in the
carrying value of
purchased in the
cost. We expect the value of the future inventory that is caught and grown at
the
accordingly, we would expect our cost of sales as a percentage of revenue to
be approximately 60% once we have sold the inventory that was acquired.
Based on our expectation of future sales prices and costs we would expect
our gross margins to be 40% or better in the future once all remaining
acquired inventory has been sold.
Net income attributable to Umami stockholders for the three months ended
was
shareholders using estimated catch and farming costs and eliminating gain on
bargain purchase on business combination was
months ended
Combined inventory (livestock) at
compared to 1,200 metric tons at
which is attributable to organic growth of livestock and the acquisition of
In announcing these results, Oli Steindorsson, Chairman and CEO of Umami,
commented: “The completion of the
than doubled the size of our farming operations, gave us geographic diversity
and added three unique farming locations to our operations. We are also
pleased to be able to show our shareholders enhanced profitability reflecting
on both strong demand for our products and the proof of our concept of long
term farming of Bluefin Tuna. Last but not least, the growth on our livestock
sets the tone for strong sales growth in next 2 years.”
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
considered by management to be representative of our on-going operating
results. Once the adjustments related to the fair value of the
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 table is a summary of our costs and
margins showing our gross margin and the effect
of the purchase price adjustment:
3 Months 9 Months
ended ended
March March
31, 2011 31, 2011
Net Revenue $42,338 $56,712
Cost of Goods Sold (32,383) (43,539)
Gross Profit $9,955 $13,173
Gross Profit % 24% 23%
Add back: Estimated Cost of Goods Sold in excess
of catch and farming costs 7,751 10,311
Estimated gross profit based on catch and farming
costs $17,706 $23,484
Estimated gross profit % based on catch and
farming costs 42% 41%
The following table is a summary of our net
income attributable to Umami shareholders and the
effect the purchase price adjustment and the
bargain purchase on business combination had on
the net income attributable to Umami
shareholders:
3 Months 9 Months
ended ended
March March
31, 2011 31, 2011
Net income attributable to Umami Shareholders $2,808 $2,717
Plus estimated cost of goods sold in excess of
catch and farming costs 7,751 10,311
Eliminate Bargain purchase on business
combination (930) (2,781)
Pro-forma estimate of net income attributable to
Umami shareholders using estimated catch and
farming costs and eliminating gain on bargain
purchase on business combination $9,629 10,247
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
is an established
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
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
with the Securities and Exchange Commission.
Contacts:
Umami Sustainable Seafood Inc.
Oli Steindorsson
Chairman and CEO
+1(619)544-9177
The Investor Relations Group
+1(212)825-3210
Investor Relations:
James Carbonara or Adam Holdsworth
Public Relations:
Laura Colontrelle or Enrique Briz
SOURCE Umami Sustainable Seafood Inc.
