Cyanotech Reports Financial Results for the Fourth Quarter and Fiscal Year 2022

Cyanotech Corporation (Nasdaq Capital Market: CYAN), a world leader in microalgae-based, high-value nutrition and health dietary supplement products, announced financial results for the fourth quarter and fiscal year 2022, ended March 31, 2022.

Commenting on the fiscal year results (changes shown vs. fiscal 2021), Cyanotech's Chief Executive Officer Emeritus and Chief Scientific Officer, Gerald R. Cysewski, Ph.D., said:

"Net sales increased to $36.0 million in the fiscal year, 11.2% over the prior year, with an improved gross profit as a result of lower cost of spirulina due to higher production volumes and astaxanthin as a result of production efficiencies. We generated $2.4 million in cash from operations, deleveraged the Balance Sheet by $1.7 million and invested over $1.0 million in capital expenditures."

"Two new solar power systems were installed in our facility continuing Cyanotech's commitment to renewable energy. In addition to the 791 metric tons of carbon dioxide (CO2) emissions we currently offset annually with our existing solar power system, the two new systems further reduce CO2 emissions by 163 metric tons per year."

"After 39 years with Cyanotech, I have stepped down from my position at Cyanotech as Chief Executive Officer and as a member of the Board of Directors ('Board') effective June 16, 2022, to have more personal time in my latter years. My time at Cyanotech has been both challenging and very rewarding. I will assume the position of CEO Emeritus and remain as Chief Scientific Officer. I will be available for consultation on business strategy on an as needed basis. I want to sincerely thank shareholders and employees for their support throughout the years."

"Matt Custer has been appointed as President and Chief Executive Officer and as a member of the Board effective June 16, 2022. Matt has been the President of the Company since May 2021. He is a very talented and insightful leader, and I am confident the company is in good hands."

"I am honored and humbled to lead the organization and thank Gerry for creating a legacy for all of us to continue to uphold," commented Matt Custer, President and Chief Executive Officer.

Fiscal Year 2022

Cyanotech reported net sales of $35,968,000 for fiscal 2022 compared to $32,345,000 in fiscal 2021, an increase of 11.2%. Gross profit was $13,566,000, with gross profit margin of 37.7%, compared to gross profit of $11,117,000 and gross profit margin of 34.4%. Operating income was $2,574,000 compared to operating income of $84,000.

Net income was $2,154,000 or $0.35 per diluted share, compared to net income of $920,000 or $0.15 per diluted share. Net income in fiscal 2021 includes $1,389,000, including accrued interest of $8,000 for the forgiveness of the loan under the Paycheck Protection Program.

Fourth Quarter Fiscal 2022

Cyanotech reported net sales of $8,126,000 for the fourth quarter of fiscal year 2022 compared to $9,438,000 in the fourth quarter of fiscal 2021, a decrease of 13.9%. Gross profit was $2,894,000 with gross profit margin of 35.6%, compared to gross profit of $2,771,000 and gross profit margin of 29.4% in the fourth quarter of fiscal 2021. Operating income was $364,000 compared to operating loss of $24,000 in the fourth quarter of fiscal 2021. Net income was $277,000, or $0.04 per diluted share, compared to net loss of $200,000, or ($0.03) per diluted share in the fourth quarter of fiscal 2021.

Please review the Company's Form 10-K for the period ended March 31, 2022 for more detailed information.

— Cyanotech will host a broadcast at 8:00 PM EDT on Thursday, June 23, 2022 to respond to questions about its operating results and other topics of interest. Interested parties are asked to submit questions to questions@cyanotech.com before 12 p.m. EDT on Thursday, June 23, 2022. The Company will respond only to relevant questions relating to the Company's fourth quarter and fiscal 2022 financial performance and will not be accepting any questions or comments during the broadcast.

To join the broadcast, please browse http://cyanotech.com/meet approximately five minutes prior to the start time.

About Cyanotech Cyanotech Corporation, a world leader in microalgae technology for more than 30 years, produces BioAstin® Hawaiian Astaxanthin® and Hawaiian Spirulina Pacifica®. These all-natural, dietary ingredients and supplements leverage our experience and reputation for quality, building nutritional brands which promote health and well-being. The Company's mission is to fulfill the promise of whole health through Hawaiian microalgae. Cyanotech's BioAstin® offers superior antioxidant activity which supports skin, eye and joint health, as well as recovery from exercise*. Cyanotech's Spirulina products offer nutrition that supports cardiovascular health and immunity*. All Cyanotech products are produced from microalgae grown at our 96-acre facility in Kona, Hawaii using patented and proprietary technology and are Generally Recognized as Safe ("GRAS") for use in food products. Cyanotech sells its products direct to consumers at retail locations in the United States and online at www.nutrex-hawaii.com and also distributes to dietary supplement, nutraceutical and cosmeceutical manufacturers and marketers. The Company is regulated by the Food and Drug Administration. Visit www.cyanotech.com for more information.

*These statements have not been evaluated by the Food and Drug Administration. This product is not intended to diagnose, treat, cure or prevent any disease.

"Safe Harbor" Statement under the U.S. Private Securities Litigation Reform Act of 1995: Besides statements of present fact and historical fact, this press release may contain forward-looking statements. Forward-looking statements relate to the future and are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Our actual results may differ materially from those contemplated by forward-looking statements. We caution against relying on forward-looking statements. Important factors that could change actual, future results include: changes in sales levels to our largest customers, weather patterns in Hawaii, production problems, risks associated with new products, foreign exchange fluctuations, and availability of financing, as well as national and global political, economic, business, competitive, market and regulatory conditions. Other factors are more fully detailed in the Company's annual Form 10-K filings with the Securities and Exchange Commission.

Financial Tables Follow: The following tables do not contain footnotes or other information contained in the Company's Form 10-K for the fiscal year ended March 31, 2022, which can be found on the Cyanotech website (www.cyanotech.com) under Investors>Investor Filings upon filing. As such the following Financial Tables are provided only as a guide and other factors are more fully detailed in the Company's annual Form 10-K filings with the Securities and Exchange Commission.

CYANOTECH CORPORATION

CONSOLIDATED BALANCE SHEETS

 

March 31,

 

 

 

 

 

 

 

 

 

 

 

2022

 

 

2021

 

 

 

(in thousands, except
share data)

 

ASSETS

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash

 

$

2,589

 

 

$

3,767

 

Accounts receivable, net of allowance for doubtful accounts of $67 in 2022 and $32 in 2021

 

 

3,664

 

 

 

2,436

 

Inventories

 

 

9,466

 

 

 

8,415

 

Prepaid expenses and other current assets

 

 

545

 

 

 

488

 

Total current assets

 

 

16,264

 

 

 

15,106

 

Equipment and leasehold improvements, net

 

 

11,885

 

 

 

12,136

 

Operating lease right-of-use assets, net

 

 

3,787

 

 

 

3,517

 

Other assets

 

 

109

 

 

 

120

 

Total assets

 

$

32,045

 

 

$

30,879

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

2,362

 

 

$

2,287

 

Accrued expenses

 

 

1,412

 

 

 

844

 

Customer deposits

 

 

164

 

 

 

124

 

Operating lease obligations, current portion

 

 

393

 

 

 

343

 

Line of credit

 

 

 

 

 

1,000

 

Current maturities of long-term debt

 

 

490

 

 

 

1,210

 

Total current liabilities

 

 

4,821

 

 

 

5,808

 

 

 

 

 

 

 

 

 

 

Long-term debt, less current maturities

 

 

4,336

 

 

 

4,823

 

Long-term operating lease obligations

 

 

3,386

 

 

 

3,175

 

Other long-term liabilities

 

 

15

 

 

 

32

 

Total liabilities

 

 

12,558

 

 

 

13,838

 

 

 

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders' equity:

 

 

 

 

 

 

 

 

Preferred stock of $0.01 par value, authorized 10,000,000 shares; no shares issued and outstanding

 

 

 

 

 

 

Common stock of $0.02 par value, authorized 50,000,000 shares; issued and outstanding 6,202,223 shares at March 31, 2022 and 6,116,073 shares at March 31, 2021

 

 

124

 

 

 

122

 

Additional paid-in capital

 

 

33,557

 

 

 

33,267

 

Accumulated deficit

 

 

(14,194

)

 

 

(16,348

)

Total stockholders' equity

 

 

19,487

 

 

 

17,041

 

Total liabilities and stockholders' equity

 

$

32,045

 

 

$

30,879

 

CYANOTECH CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

 

Years ended March 31,

 

 

 

 

 

 

 

 

 

 

 

 

2022

 

 

2021

 

 

2020

 

 

 

(in thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

35,968

 

 

$

32,345

 

 

$

31,899

 

Cost of sales

 

 

22,402

 

 

 

21,228

 

 

 

19,199

 

Gross profit

 

 

13,566

 

 

 

11,117

 

 

 

12,700

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative

 

 

5,367

 

 

 

4,876

 

 

 

5,281

 

Sales and marketing

 

 

4,913

 

 

 

5,518

 

 

 

5,758

 

Research and development

 

 

712

 

 

 

639

 

 

 

608

 

Total operating expense

 

 

10,992

 

 

 

11,033

 

 

 

11,647

 

Income from operations

 

 

2,574

 

 

 

84

 

 

 

1,053

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

(392

)

 

 

(550

)

 

 

(657

)

Gain on extinguishment of debt

 

 

 

 

 

1,389

 

 

 

 

Total other income (expense), net

 

 

(392

)

 

 

839

 

 

(657

)

Income before income taxes

 

 

2,182

 

 

 

923

 

 

 

396

Income tax expense

 

 

(28

)

 

 

(3

)

 

 

(9

)

Net income

 

$

2,154

 

 

$

920

 

 

$

387

Net income per share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.35

 

 

$

0.15

 

 

$

0.06

Diluted

 

$

0.35

 

 

$

0.15

 

 

$

0.06

Shares used in calculation of net income per share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

6,157

 

 

 

6,070

 

 

 

5,956

 

Diluted

 

 

6,168

 

 

 

6,079

 

 

 

5,959

 

Posted In: Press Releases

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