The Limestone Boat Company Announces Fourth Quarter and Fiscal Year 2021 Financial Results

With continued growth in unit sales, revenue, and margins, Limestone expects 2022 to be a transformative year given its order backlog and market demand.

Collingwood, Ontario- May 2, 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 fourth quarter and fiscal year ended December 31, 2021, (“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 fourth quarter and twelve months ended December 31, 2021 are available at or on the Company’s website at 

“2021 was a challenging year for Limestone.  Initially launched as a virtual company, using contract manufacturing, the Company had to pivot and acquire its contract manufacturer, Ebbtide, in order to improve the quantity and quality of the boat production.  We have invested significant time and money into turning the plant around in an extremely challenging manufacturing environment.  We are now starting to see the results of our efforts with continued growth in unit sales up over 50% in Q1 2022 vs. Q4 2021, revenue up 22% in Q1 2022 vs. Q4 2021, and margins improving significantly, Limestone expects 2022 to be a transformative year given its order backlog, market demand, and product quality,” said Limestone CEO, Scott Hanson. “Additionally, continued strategic investments in facilities, R&D, technology, equipment, labor, new product introductions, and doubling the capacity of our higher margin models, is all part of the Company’s plan to execute on its sustainable, long-term growth strategy that will allow us to deliver more product to a growing number of customers and dealers in 2022.”

“Control over our own production and manufacturing has enabled us to remain resilient and agile, providing a critical advantage in the face of the ongoing supply chain challenges and labor disruption due to COVID.  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 and shipped as we moved into 2022. 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 ongoing supply chain and labor disruptions.”

Mr. Hanson concluded, “Although the industry continues to experience headwinds, I am proud of how the management team and employees have executed on our strategic plan and I’m confident that steps taken since the acquisition of Ebbtide in May 2021 with respect to human capital, leadership, finance, procurement, process and quality assurance will continue to drive improved revenue, margins, and earning as 2022 unfolds.”

Fourth Quarter and Fiscal Year 2021 Financial Highlights:

  • The Company generated revenues of $2.7m and $6.5m, respectively, for the three months and year ended December 31, 2021, from continuing unit sales, production and expansion of operations.  
  • The Company incurred operating expenses of $3.6m and $12.5m, respectively, during the three months and year ended December 31, 2021 in its operations. Included in operating expenses were the following Non-cash and Non-recurring costs:
    • Non-cash items: 
      • Amortization and Depreciation of $282k
      • Initial Public Listing expenses of $1.6m
      • Accretion expense related to convertible debentures of $539k 
      • Amortization of financing fees of $160k
      • Stock based compensation of $427k
    • Non-recurring items:
      • Professional fees associated with the reverse takeover transaction (the “RTO”) and the mandatory Business Acquisition Report filing with respect to the acquisition of Ebbtide Holdings.
  • The Company incurred an operating loss of and $4.4m and $14.0m respectively, during the three months and year ended December 31, 2021 in its operations.
  • As of December 31, 2021, the Company had outstanding 118,450,940 common shares, 10,671,955 common share purchase warrants and 7,615,000 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 Q4 and FY 2021 (the “MD&A”) available on the Company’s profile on or on the Company’s website at

Ryan Lupton, CFO of Limestone (Interim) commented, “While the Company continued to recognize a continued improvement and expansion of its unit sales, revenue and margins, it did incur some significant non-cash and one-time costs over the fiscal year, primarily related to its RTO listing, Ebbtide acquisition and stock-based compensation. Limestone’s fourth 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.”

2021- Business Highlights:

  • 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, produced 31 units in Q4 and 71 total units over the 7 months following its acquisition in May 2021. The Company’s unit growth increased over 50% in Q1 2022 vs. Q4 2021 with revenue up approximately 20% in Q1 2022 compared to Q4 2021. As the Company looks to fiscal 2022 and its first full calendar year of production, management expects to continue to increase production output by half a boat per week per month subject to available working capital, supply chain, and labor, with the objective of exiting 2022 calendar year producing an estimated 9 boats a week. Unit production of the Company’s higher margin, highly sought after Coastal and Bay Boat models will also be doubled in the 2023 Model Year.
  • Increase in Order Book Backlog
    Limestone’s current order book backlog for both Aquasport and Limestone models exceeds its projected capacity for both the 2022 and 2023 Model Year.  Orders in hand and allocations to the Company’s Dealers through the 2022 Model Year, ending May 31st 2022, exceed projected proforma capacity and stand at 82 units. Dealer orders in hand and allocations for the 2023 Model Year are at 604 units to date, which exceeds the Company’s 2023 Model Year Proforma Capacity by over 20%. The Model Year commences in June of each year and concludes in May of the following year.
  • Efficient Management of Supply Chain Constraints
    Throughout 2021, management has focussed its efforts on supply chain management, process efficiency, and labor development and deployment, along with controlling its ability to pivot weekly production as needed to align with any potential supply chain and labor adjustments as required. By maximizing production cycle times, its supply chain, and continuing to invest in technology and process innovation, the Company feels confident that it will achieve improved labor efficiency, and depth in model lineup to further optimize its operations, ensuring improved predictability of production, quality throughput, and achievement of revenue targets and margin goals.
  • Continued Expansion of Distribution and Dealer Partnerships
    In addition to the boat order backlog, seventeen new dealers have expressed considerable interest in taking on the Limestone® Boats and/or the Aquasport Boats lines when production becomes readily available in the 2023 Model Year. These new dealers would open up additional market representation in North America, further supporting the growth plan for the Company. The Company currently distributes product through 51 dealer locations, spanning the Great Lakes, East Coast from Maine to Florida, and the Gulf Region.
  • Electric Boat Partnership with Vision Marine
    Vision Marine is currently outfitting the Company’s first Test Boats with Vision’s electric outboard E-motion 180 and anticipates conducting Sea Trials in May of 2022 in Florida to ensure that the boats provide the performance that the Company’s customers, seeking big water performance and an environmentally friendly technology that delivers the run times, cruising speeds and the smooth, deep-V hull design ride they expect from the 35-year old heritage boat company.
  • Debut of New Flagship Models and Upgraded Model Offerings
    The Company continues to develop and revamp the entire Limestone® and Aquasport lineup.  We introduced and launched two all-new models to the market since July 2021, the Limestone® L-200CC centre console and L-200R closed deck runabout. The Company delivered its first production model, the L-200CC in July 2021, followed by launching the L200R this past winter at a series of Boat shows, with its first customer sold L200R expected to ship in early May 2022.  In addition, in September 2021, the Company unveiled the all-new dual console Limestone® L-290DC model, which is expected to go into production in Q3 2022.  Production and shipments of the revitalised Limestone Cuddy’s; L250R, L270 Cuddy and L290 Cuddy lineup are scheduled for introduction throughout 2023 along with the revamped Aquasport 3000.
  • Additions to Corporate and Manufacturing Leadership Teams
    In addition to the Company’s investments in manufacturing processes and product, Limestone continues to bolster its plant workforce in key areas ensuring it can execute on its sustainable, strategic growth plan. Of note are important addition to the plant floor leadership team to improve process flow and operational efficiencies, in preparation for the integration of new technologies and processes in lamination and specifically the integration of Light RTM and Vacuum Infusion that will lead to, improving workplace hygiene, increased output, a reduction in turnover, a reduction in material wastage, and ultimately a more efficient, higher quality, cleaner process.

About The 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.  

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 or forwardlooking statements (collectively, “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. Forward-looking information includes, without limitation: the Company’s continued expansion of distribution and dealer partnerships, the implications of the Company’s electric boat partnership with Vision Marine, future changes to the Company’s boat lineup, and the Offering.

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. The forward-looking information in this news release are made as of the date hereof and the Company disclaims any intent or obligation to update publicly any such forward looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable securities laws. 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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