The Limestone Boat Company Announces Second Quarter 2022 Results

Limestone continues to grow revenues and improve margins as it refines production and scales to meet market demand and orders from its Dealer Base

Collingwood, Ontario – August 29, 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 and six months ended June 30, 2022 (“Q2” FY 2022). All dollar amounts are in Canadian dollars unless otherwise noted.

The Company’s complete Financial Statements and Management’s Discussion and Analysis for the three and six months ended June 30, 2022 are available at or on the Company’s website at

The Limestone Boat Company has achieved improved Quarter over Quarter results in Q2 2022 in terms of revenues, margins, and reduced losses as a result of continued investments towards improving manufacturing tools and processes as well as hiring of key plant personnel. Although unit production decreased slightly due to ongoing supply chain delays with 38 units shipped in Q2 2022 vs. 39 in Q1 2022, revenues increased 16% from $3,764,588 in Q1 2022 to $4,366,888 in Q2 2022. This increase can be attributed to: higher loose engine sales ($277,000), inflationary price increase on all boats effective April 1st, 2022 ($180,000), an increase in the exchange rate from USD to CAD, plus a focus on the production of higher revenue boat models.

Stated gross margins continued to improve from +3.8% in Q1 2022 to a gross margin of +4.4% in Q2 2022, with the Company generating a modest gross profit for the second consecutive period since acquiring Ebbtide. The Company has also improved its labour productivity per boat as a result of stabilizing and high grading its manufacturing labour force. Management expects this positive trend to continue given improved process, and materials and direct labor efficiencies across its model lineup as the Company realizes the full impact of its double-digit inflationary price increase in April 2022 and further 10.2% average increase at Model Year change in August when it reports Q3 and Q4 2022 Results.

The Company expects to continue its focus on production of a limited, higher margin, range of models as the Company transitions to profitability through the balance of Fiscal 2022 and monetizes its Order Book backlog through model year. As production continues to increase, the Company believes that fixed overhead such as depreciation and utilities will continue to become a lower proportionate component in stated gross margins and expects our quarterly results to continue improving. It’s also important to point out that the price increases put through by the Company in Q2 and Q3 of this year were consistent with its peers ensuring that the Company’s product remains competitive while also affording its dealers respectable margins.

The recent announcement of the Company’s proposed Credit Financing is also expected to allow the Company to bolster its inventory levels and reduce supply chain disruptions on manufacturing, and

commence the phased transformation of the Company’s manufacturing capabilities through the expansion and reconfiguration of select production spaces, integration of additional technology, expansion of large boat production capacity, and enhanced manufacturing process flow. It will also strengthen the Company’s balance sheet and further reinforce the foundation that’s been built since acquiring Ebbtide Holdings LLC just 14 months ago. Continued investments in procurement, the facilities, technologies, and processes are also expected to expand the Company’s throughput capacity and increase production scale ultimately allowing it to accelerate the pace at which the Company chews through its order backlog. 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. For these reasons Limestone expects 2022/23 to be transformative as the Company executes on its near-term growth strategy allowing it to deliver more product to a growing number of dealers and their customers.

Two NEW Aquasport Dealers:

The Company is also pleased to announce the following Two NEW Aquasport Dealers that have joined the ranks, bolstering the Company’s support for its smaller Coastal and Bay Boat offerings as well as expanding the Company’s geographic footprint: Captiva Boat Sales and Service, Cincinnati, Ohio and Boaters Marine of Munroe, Monroe, North Carolina.

Q2 2022 Financial Highlights:

  • The Company generated revenues of $4,366,888 and $8,131,476 for the three and six months ended June 30, 2022, from continuing unit sales, production and expansion of operations.
  • The Company generated gross margin of 4.4% and 4.1%, resulting in a gross profit of $192,878 and $336,147 for the three and six months ended June 30, 2022.
  • The Company incurred operating expenses of $2,574,387 and $5,282,294, during the three and six months ended June 30, 2022 in its operations.
  • Included in operating expenses were Non-cash costs in the amount of $59,299 and $942,096 for the three and six months ended June 30, 2022 relating to amortization and depreciation, accrued interest expense, accretion expense and deferred tax recovery related to convertible debentures, unrealized foreign exchange gain and stock based compensation.
  • The Company incurred an operating loss of $2,381,509 and $4,946,147 for the three and six months ended June 30, 2022.
  • The Company incurred a Comprehensive Loss of $1,945,829 and $4,482,232 for the three and months ended June 30, 2022 which includes foreign exchange loss, deferred tax recovery and a currency translation adjustment.
  • As of June 30, 2022, the Company had outstanding 119,565,940 common shares, 10,816,867 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 Q2 2022 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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