Gourmet Ocean Products Inc.
TSX VENTURE : GOP

Gourmet Ocean Products Inc.

February 03, 2015 09:00 ET

Gourmet Ocean Products Announces Financial Results for the Fifteen Months Ending September 30th, 2014

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb. 3, 2015) - Gourmet Ocean Products Inc. ("Gourmet" or the "Company") (TSX VENTURE:GOP) reports that it has released its annual Financial Statements and Management Discussion and Analysis covering the fifteen months ended September 30, 2014 and the year ended June 30, 2013.

HIGHLIGHTS OF FIFTEEN MONTHS ENDED SEPT 30, 2014

The Company recorded sales of $4,476,649 for the fifteen months ended September 30, 2014 compared to $296,642 during the year ended June 30, 2013. Gross margin as a percentage of sales was 73.5% for fifteen months ending September 30, 2014 compared to 2.3% for the period ended June 30, 2013. This improvement was primarily due to increased sales of high margin scallop seeds. The improvement was also due to there being fifteen months of sales for 2014 compared to twelve-month sales for 2013.

Adjusted EBITDA for the fifteen months ended September 30, 2014 was $688,401 versus negative $972,616 during the year ended June 30, 2013.

Higher sales and gross margin were offset by a $1.45 million, non-recurring listing expense. As a result, the Company recorded a net loss of $1,300,838 for the fifteen months ended September 30, 2014 compared to a net loss of $1,134,597 for the period ended June 30, 2013.

As at September 30, 2014 the Company's cash balance was $2,189,183, accounts receivable was $174,612, inventory was $2,573,129, and property and equipment was $1,204,297. The Company had total liabilities of $392,985 as of September 30, 2014.

The working capital position of the Company at September 30, 2014 was $5,051,110 representing an increase of $4,240,384 compared with $810,726 as of June 30, 2013. This increase was primarily attributable to the $1,052,029 increase in cash and $2,393,380 increase in inventory.

For additional financial information please see Gourmet's unaudited condensed interim consolidated financial statements and MD&A filed on SEDAR at www.sedar.com.

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 goeducks with distribution to customers worldwide.

The Company is experiencing its initial ramp up in revenues and we expect continued growth in revenues resulting from contracts with aquaculture farmers and distributors.

Gourmet's goal is to become a global leader in aquaculture.

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.

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 will collect the $174,612 in accounts receivable, (b) the Company has adequate capital to grow its business and execute on its business plan, (c) continued growth in revenues is expected from contracts with aquaculture farmers and distributors and (d) Gourmet 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.

Contact Information

  • Gourmet Ocean Products Inc.
    Peter Hughes
    President, Chief Executive Officer
    778-328-8898
    petehughes@me.com