Gourmet Ocean Products Inc.
TSX VENTURE : GOP

Gourmet Ocean Products Inc.

January 29, 2016 16:31 ET

Gourmet Ocean Products Announces Financial Results for the Fiscal Year Ending September 30th, 2015

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jan. 29, 2016) - Gourmet Ocean Products Inc. ("Gourmet" or the "Company") (TSX VENTURE:GOP) announces its annual Financial Statements and Management Discussion and Analysis for the year ended September 30, 2015.

Highlights

  • Gourmet recorded sales of $4,282,879 for the year ended September 30, 2015 compared to $4,476,649 for the fifteen months ended September 30, 2014. The sales for the year ended September 30, 2015 was attributable to sales of harvested sea cucumber, which replaced $3 million in sales of scallop seed experienced in the corresponding period of 2014.

  • Adjusted EBITDA for the year ended September 30, 2015 was negative $1,287,144 versus $688,401 during the fifteen months ended September 30, 2014.

  • Gross margin during the year ended September 30, 2015 was 22.9% compared with 73.5% in the fifteen months period ended September 30, 2014. This decrease was due to decreased sales of scallop seeds, which have minimum direct costs of production.

  • Net loss for the year ended September 30, 2015 was $1,819,273, compared to a net loss of $1,300,838 in fifteen months period ended September 30, 2014.

Financial performance has been impacted by the deteriorating economic conditions in China. However, "We are pleased to report an increase in harvested sea cucumber sales in 2015 and the increase in the new oyster seeds sales this year," stated Mr. Peter Hughes, President and CEO of Gourmet Ocean Products.

SUMMARY OF FINANICAL RESULTS

Three-Month Period Ended
(Unaudited)
Year Ended
(Audited)
Fifteen-Month
Period Ended
(Audited)
09/30/2015 09/30/2014 09/30/2015 09/30/2014
Sales 88,808 (49,534 ) 4,282,879 4,476,649
Gross profit 103,465 204,985 982,771 3,288,164
Income (loss) from operations (322,631 ) (797,119 ) (1,819,273 ) 137,721
Income taxes (recovery) - (6,708 ) - -
Net income (loss) (321,111 ) (1,112,678 ) (1,819,273 ) (1,300,838 )
EBITDA (230,926 ) (1,075,497 ) (1,507,099 ) (1,262,410 )
Earnings per share Diluted
(0.01
)
(0.01
)
(0.01
)
(0.01
)
Weighted average number of shares Basic
125,068,733

107,343,889

124,979,308

107,343,889

LIQUIDITY AND CAPITAL RESOURCES

At September 30, 2015 the Company had 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 compared to cash on deposit in the amount of $2,189,183, accounts and other receivables of $272,690, prepaid expenses of $403,093 and inventory of $2,573,129 at September 30, 2014.

The working capital position of the Company at September 30, 2015 declined to $3,609,027 compared to a working capital position of $5,051,110 at September 30, 2014.

Net assets declined to $4,680,089 at September 30, 2015 compared to $6,255,407 at September 30, 2014. At September 30, 2015 the Company had a short-term debenture of $853,580 at an interest rate of 12% per annum. The debentures are unsecured, non-convertible and have a renewed maturity date of April 30, 2016.

On December 1, 2015, the Company entered into a new short-term debenture agreement with a related party to borrow $600,000 at an interest rate of 12% per annum. The debenture is unsecured, non-convertible and has a maturity date of April 30, 2016.

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, oysters and goeduck 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 will collect the $3,619,984 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'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.

Contact Information

  • Gourmet Ocean Products Inc.
    Peter Hughes
    President, Chief Executive Officer
    604.802.7372
    petehughes@me.com