The Limestone Boat Company Announces First Quarter 2022 Results

 Limestone continues to grow unit production, revenues, and gross margins as it scales production to meet unprecedented market demand from its growing Dealer Base 

Collingwood, Ontario – May 30, 2022 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 months ended March 31, 2022 (“Q1” FY 2022). All dollar amounts are in Canadian dollars unless otherwise noted. 

The Company’s complete Financial Statements and Management Discussion and Analysis for the three months ended March 31, 2022 are available at or on the Company’s website at

The Limestone Boat Company has achieved significantly improved Quarter over Quarter results in Q1 2022 in unit production, revenues, gross margins, and reduced loss. Specifically, unit production was up over 42% in Q1 2022 (44 units shipped) vs. Q4 2021 (31 units shipped), revenues increased 38% from $2,726,083, in Q4 2021 to $3,764,588 in Q1 2022. Stated gross margins also improved significantly from a gross margin of -27.1% in Q4 2021 to a gross margin of +3.8% in Q1 2022, with the Company generating a modest gross profit for the first time since acquiring Ebbtide. Management is expecting this positive trend to continue with gross margins, based on materials and direct labor, ranging from 23% to 30% across our model lineup. The Company is focusing production on a more limited higher margin range of boats as the Company transitions to profitability. As production continues to increase, the Company believes that overhead such as tooling, plant and utilities will become a lower proportionate component in stated gross margins and our quarterly results are expected to continue to improve. Management also expects gross profit to continue to improve, in part due to price increases. An inflationary price increase of 10.3% was put through in early April, which will impact Q2. A further price increase is expected to be put through when 2023 Model Year pricing is announced. 

Investments made in late 2021 towards improving manufacturing tools and processes as well as hiring of key plant personnel are starting to pay off, but the Company recognizes there remains significant additional efficiency to be attained which will contribute to the positive trends moving forward given the Company’s order backlog, market demand, and product quality. 

Additionally, with continued strategic investments in inventory management, facilities, technology, equipment, labor, R&D, new product introductions, and doubling the capacity of our higher margin models, Limestone expects 2022/23 to be transformative as the Company executes on its long-term growth strategy allowing it to deliver more product to a growing number of dealers and their customers. 

Q1 2022 Financial Highlights: 

  • The Company generated revenues of $3,764,588 for the three months ended March 31, 2022, from continuing unit sales, production and expansion of operations. 
  • The Company generated gross margin of 3.8%, resulting in a gross profit of $143,269 
  • The Company incurred operating expenses of $2,707,906, during the three months ended March 31, 2022 in its operations. 
  • Included in operating expenses were Non-cash costs in the amount of $990,373 relating to amortization and depreciation, accrued interest, accretion expense and deferred tax recovery related to convertible debentures, unrealized foreign exchange loss, interest expense and stock based compensation. 
  • The Company incurred an operating loss of $2,564,637 for the three months ended March 31, 2022. 
  • The Company incurred a Comprehensive Loss of $2,536,402 for the three months ended March 31, 2022 which includes foreign exchange loss, deferred tax recovery and a currency translation adjustment. 
  • As of March 31, 2022, the Company had outstanding 119,565,940 common shares, 10,671,955 common share purchase warrants and 6,400,000 stock options. 
  • 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 Q1 2022 (the “MD&A”) available on the Company’s profile on or on the Company’s website at

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. 

For more information, contact: 
Bill Mitoulas | Investor Relations 

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. Forward-looking statements in this press release include 

statements regarding positive trends in the gross margins of the Company, increased overhead efficiencies, and improved gross profits 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. 

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