Limestone
continues to execute on its sustainable, long-term growth plan to
meet the unprecedented market demand for boats
COLLINGWOOD, ON, Nov. 29, 2021 /CNW/ - The Limestone Boat
Company Limited ("Limestone" or the "Company") (TSXV:
BOAT) – owner and builder of Aquasport Boats, Limestone® Boats and Boca Bay Boats
– today reports its financial results for the three and nine months
ended September 30, 2021 ("Q3" FY
2021). All dollar amounts are in Canadian dollars unless otherwise
noted.
The Company's complete Financial Statements and Management
Discussion and Analysis for the three and nine months ended
September 30, 2021 are available at
www.sedar.com or on the Company's website at
www.limestoneboatcompany.com .
"Limestone remains well
positioned in a marketplace that is still demanding as many boats
as we can supply, despite ongoing global supply chain constraints,"
stated Limestone CEO, Scott Hanson.
"Our recently announced private placement will provide us with the
necessary capital required to further execute on our sustainable,
long-term growth plan and allow us to deliver that product to a
growing number of customers and dealers."
"Management's vertical integration strategy and subsequent
acquisition of Ebbtide Holdings has certainly proven prescient.
Control over our own production and manufacturing has enabled us to
remain resilient and agile, providing a critical competitive
advantage in the face of a tightening supply chain. Furthermore,
strategic investments in our facilities, labor force, and R&D
have provided a solid operational foundation, translating to an
increased number of weekly units started. Work in progress
continues to escalate, and we are recognizing improved efficiencies
through the identification and removal of process bottlenecks,
monetizing WIP backlogs in assembly, and managing any
aforementioned supply chain disruptions."
Mr. Hanson concluded, "We are proud of how we have executed on
our strategic initiatives and are confident that we will start to
see the benefits in unit production, revenues and EBITDA in Q1 2022
given the steps taken since the acquisition with respect to human
capital, leadership, finance, procurement, process and quality
assurance."
Q3 2021 Fiscal Year Financial Highlights:
- Reported a net loss of $8,731,165
for the nine months ended September 30,
2021, which included approximately $2.3 million of non-cash expenses, compared to a
loss of $738,061 for the nine months
ended September 30, 2020.
- Reported a net loss of $3,196,226
for the three months ended September 30,
2021, which included approximately $356,000 of non-cash expenses, compared to a loss
of $479,261 for the three months
ended September 30, 2020.
- The Company ended the quarter with cash of $740,545 compared to $130,181 for the year ended December 31, 2020.
- Subsequent to the end of the third quarter, on November 23rd, 2021, The Company
completed the first tranche of a Brokered Private Placement of
units for $2.6 million in
proceeds.
- There are several risk factors facing the Company including but
not limited to the impact of Covid-19 on the operations and ongoing
supply chain disruption as more fully described in the Company's
Management Discussion and Analysis for Q3 FY2021 (the "MD&A")
available on the Company's profile on www.sedar.com or on the
Company's website at www.limestoneboats.com.
Summary of Financial Information and Overall
Performance:
Review of Statements of Comprehensive Income:
The Company's complete Financial Statements and Management
Discussion and Analysis for the quarter ended September 30, 2021 are available at www.sedar.com
or on the Company's website at
www.limestoneboatcompany.com .
Peter Pigott, CFO of Limestone commented, "Limestone's third quarter results reflect a
continued emphasis on building confidence with supply chain
partners and establishing a foundation for scaled growth in both
our production capabilities and a focus on building
inventory. These investments will yield efficiencies in
margins as we scale production in 2022 and beyond."
Q3 2021- Business Highlights:
- Debut of New Brand Flagship Models
The Company
continues to develop and revamp the entire Limestone® and Aquasport lineup,
having introduced and launched two all-new models to the market
since July 2021. In September, the
company unveiled the all-new dual console L-290DC model under the
Limestone® banner. In
August, the company debuted its new center console Aquasport
3000CC, the flagship model for Aquasport, with orders and shipments
commencing in Q4 of 2022. In July, Limestone delivered its first production
model, the L-200CC center console, and has been making bi-weekly
shipments. Production and shipments of the revitalized L-290CD,
L-250R and L-200R have been scheduled to commence throughout Q1
2022, with the L-270CD following in late Q1 2022.
- Increase in Order Book Backlog
Demand for
Limestone and Aquasport models
exceeds the Company's projected capacity for both the 2022 and 2023
Model Year based on its current order book backlog. Orders in hand
and expressed through the 2022 Model Year stand at 478 units, with
a 2022 Model Year Proforma Capacity of approximately 279 units.
Expressed Orders for the 2023 Model Year are at 676 units to date,
with 2023 Model Year Proforma Capacity of approximately 650 units.
The Model Year commences in June of the preceding year and
concludes in May of that year.
- Improved Manufacturing and Production
Output
Limestone's
White Bluff, Tennessee-based
boatbuilding headquarters, TN Composites, which produces both the
Aquasport Boats and Limestone® Boats product lines for the parent
company, is currently producing four boats per week. The
Company is projecting to complete approximately 75 total units
through the end of this 2021 calendar year since its acquisition of
the Ebbtide facility. As the Company looks towards 2022 and
its first full calendar year of production (post May 2021 acquisition), the management team is
planning to increase production output incrementally each month, at
the rate of an additional one half boat per week, commencing in
January 2022 as a result of facility
and process improvements, additional leadership, and current supply
chain cadence. Management expects to increase weekly production by
December 2022 to approximately 12
boats per week, with the objective of increasing full calendar year
2022 production to approximately 425 units.
- Efficient Management of Supply Chain Constraints
In
the third quarter, management focussed its efforts on plant
expansion and integration, along with controlling its ability to
pivot weekly production as needed to align with any potential
supply chain adjustments required. By maximizing production cycle
times and its supply chain, the Company is ensuring that it will
achieve the necessary depth in brand lineup for its network of
dealers. The Company continues to optimize its product offering in
the face of ongoing supply chain challenges to ensure
predictability of production, quality throughput, and achieving
revenue targets and margin goals.
- Continued Expansion of Distribution and Dealer
Partnerships
In conjunction with the boat order backlog in
the third quarter, Limestone is
also saw a growing number of dealers who have expressed
considerable interest in representing the Limestone® Boats and Aquasport
Boats lines when production becomes readily available for the 2022
and 2023 Model Years. These new dealers will open up additional
markets, further supporting the growth plan for the Company. The
Company currently distributes product through 31 dealers,
representing 44 locations throughout the Northeastern United States, the US Gulf Coast,
and the North American Great Lakes Region.
- Electric Boat Partnership with Vision
Marine
Limestone continues
to progress with its first-mover partner for the future of boating
innovation, Vision Marine Technologies. In the third quarter,
Vision Marine commenced outfitting the Company's first two Test
Boats with Vision's electric outboard E-motion 180. Sea Trials are
anticipated to begin in early January in Tennessee. Pending successful results from the
Sea Trials, Limestone intends to
debut EV outboard power options during the Company's winter boat
show tour as consumer demand for zero emission, high-performance
boats continues to gain momentum.
- Additions to Corporate and Manufacturing Leadership
Teams
Besides the Company's investment in its manufacturing
facility, Limestone has
successfully built a talented workforce, a crucial component of the
Company's ability to execute its sustainable, long-lasting
strategic growth plan. Limestone
has made important additions to its Corporate and Manufacturing
Leadership Teams, hiring Director of Marketing Keith McDevitt, who brings a strong history of
managing luxury brands and dealer networks in the consumer durables
space, and talented, field-experienced individuals to fill critical
new positions at its White Bluff
boatbuilding headquarters, including a controller, procurement
manager, human resources (HR) manager, and production manager.
Subsequent Events to Q3 2021:
- The Limestone Boat Company Completes First Tranche of
Brokered Private Placement of Units (November 25, 2021)
The Company announced that it had completed the first tranche of
its previously announced brokered private placement (the
"Placement") of 10,851,334 units (the "Units") of the Company at a
price of $0.24 per Unit (the "Issue
Price") for gross proceeds of approximately $2.6 million. The Placement was led by Beacon
Securities Limited, acting as agent (the "Agent").
(Read Full News Release)
- The Limestone Boat Company Adds Four National Dealers to Its
Respective Brand Rosters (November 18,
2021)
The Company continued to build out its dealer network across
the United States, announcing it
had added four National Dealers to its respective brand roster,
with new dealers added in Jacksonville,
FL, Tavernier, FL,
East Haven, CT, and Sagamore Beach, MA. Limestone Boat Company's
distribution network now totals 31 dealers, representing 44
locations throughout the US and Canada.
(Read Full News Release)
- Limestone Announces Brokered Private Placement of up to
$4 Million of Units (November 11, 2021)
The Company announced a
brokered private placement, led by Beacon Securities Limited of up
to 16.67 million units (the "Units") at a price of $0.24 per Unit, to raise gross proceeds of up to
$4.0 million. Each Unit will consist
of one common share of the Company and one half of one Common Share
purchase warrant, entitling the holder to purchase one additional
Common Share at a price of $0.32 per
Common Share for a period of 24 months following the closing of the
Offering.
(Read Full News Release)
- The Limestone Boat Company Provides Corporate and
Operational Update (October 21,
2021)
The Company provided a detailed update on its
recent corporate activities and operational initiatives, adding
further insight on a number of critical manufacturing, production,
distribution and brand milestones, all essential in ensuring a
strong corporate, operational, and financial foundation for
Limestone and its future.
(Read Full News Release)
ABOUT LIMESTONE BOAT COMPANY
LIMITED
The Limestone Boat Company – owner and builder of Aquasport
Boats, Limestone® Boats
and Boca Bay Boats - is publicly traded on the Toronto Venture
Exchange under the ticker symbol BOAT. They are headquartered in
Collingwood, Ontario with a
145,000 sq. ft. manufacturing facility in White Bluff, Tennessee. The company is backed
by a large, skilled labor force and dealer partners throughout
the United States and the Canadian
Great Lakes Region.
Neither the TSX Venture Exchange nor its Regulation Services
Provider accepts responsibility for the adequacy or accuracy of
this news release.
Cautionary Note Regarding Forward-Looking
Statements
Certain statements contained in this press release constitute
forward-looking information. These statements relate to future
events or future performance. The use of any of the words
"anticipate", "believe", "could" "should", "would", "estimate",
"expect", "forecast", "indicate", "intend", "likely, "may", "plan",
"potential", "project", "outlook", "seek", "target", "trend" or
"will" and similar expressions and statements relating to matters
that are not historical facts are intended to identify
forward-looking information and are based on the parties' current
belief or assumptions as to the outcome and timing of such future
events. Actual future results may differ materially. The Company is
subject to a number of risks relating to integration and
go-forward operations, certain of which are more particularly
described in the Company's public filings available on SEDAR
including, without limitation, the filing statement filed by the
Company on February 23, 2021, and the
MD&A. The forward-looking information contained in this release
is made as of the date hereof and the parties are not obligated to
update or revise any forward-looking information, whether as a
result of new information, future events or otherwise, except as
required by applicable securities laws. Because of the risks,
uncertainties and assumptions contained herein, investors should
not place undue reliance on forward looking information. The
foregoing statements expressly qualify any forward-looking
information contained herein.
Many factors could cause actual results, level of activity,
performance or achievements or future events or developments to
differ materially from those expressed or implied by the
forward-looking statements. All the forward-looking statements made
in this press release are qualified by these cautionary statements
and other cautionary statements or factors in this press release.
There can be no assurance that the actual results or developments
will be realized or, even if substantially realized, will have the
expected consequences to, or effects on, the Company. Unless
required by applicable securities law, the Company does not intend
and does not assume any obligation to update these forward-looking
statements.
SOURCE The Limestone Boat Company