The Limestone Boat Company Announces Third Quarter 2022 Results


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COLLINGWOOD, Ontario, Nov. 29, 2022 (GLOBE NEWSWIRE) — The Limestone Boat Company Limited (the “Company”) (TSXV: BOAT | OTCQB: LMSBF) – 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, 2022 (“Q3 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 and nine months ended September 30, 2022 are available at or on the Company’s website at

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Limestone has started to see the effects of management decisions taken in Q2 2022 concerning wholesale pricing and labour realignment with improvements in margin. These are attributable, in large part, to price increases implemented in April (10.3%) and a further increase in August (+/-10%) of this year. These price increases are consistent with the Company’s peers and ensure that the Company’s product remains competitive while also affording its dealers respectable margins. With the 2023 Model Year price increase that took effect August 1st, the Company expects to see steady improvement in average revenue per unit and margin upon the resumption of manufacturing operations at TN Composites. This would be compounded by the Company’s emphasis on a curtailed model mix of higher margin, higher demand product given its order backlog, thus yielding margins expected to be more in-line with industry norms.

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Unit production, however, decreased due to ongoing supply chain delays and financial constraints with 27 units shipped in Q3 2022 vs. 38 in Q2 2022, revenues decreased 33% from $4,366,888 in Q2 2022 to $2,913,667 in Q3 2022. Additionally, average gross revenue per unit increased by 14% in Q3 vs. Q2 2022. Stated gross margins continued to improve from a gross margin of +4.4% in Q2 2022 to a gross margin of +4.7% in Q3 2022, with the Company generating a modest gross profit for the third consecutive period since acquiring Ebbtide in May of 2021. The Company plans to continue to focus production of a limited range of higher margin models as it works towards profitability in Fiscal 2023 upon resumption of manufacturing in its TN Composites manufacturing facility.

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Further to the Company’s Press Release on November 1, 2022, wherein the Company announced the withdrawal of the proposed financings of August 11, 2022 and October 21, 2022, the Company continues to pursue alternative liquidity financing proposals and remains committed to continuing its long-term operations. While the Company continues to pursue alternative liquidity financing proposals and strategic alternatives, the Company has temporarily suspended manufacturing operations at its facility in White Bluff, Tennessee and is maintaining its leadership team as it looks to resume operations as soon as possible.

Q3 2022 Financial Highlights:

  • The Company generated revenues of $2,913,677 and $11,045,153 for the three and nine months ended September 30, 2022, from continuing unit sales, production and expansion of operations.  
  • The Company generated gross margin of 4.7% and 4.3%, resulting in a gross profit of $139,550 and $475,697 for the three and nine months ended September 30, 2022.
  • The Company incurred operating expenses of $3,147,528 and $8,429,822, during the three and nine months ended September 30, 2022 in its operations.
  • Included in operating expenses were non-cash costs in the amount of $(474,300) and $470,796 for the three and nine months ended September 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 $3,007,978 and $7,954,125 for the three and nine months ended September 30, 2022.
  • The Company incurred a Comprehensive Loss of $2,529,599 and $7,011,831 for the three and nine months ended September 30, 2022 which includes foreign exchange loss, deferred tax recovery and currency translation adjustment.
  • As of September 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 suspension of manufacturing operations in its White Bluff, Tennessee facility November 1st 2022 pending completion of a financing. Additional risks are more fully described in the Company’s Management Discussion and Analysis for Q3 2022 available on the Company’s profile on or on the Company’s website at

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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 and on the U.S.-based OTCQB® under the symbol LMSBF. They are headquartered in Collingwood, Ontario with a 145,000 sq. ft. manufacturing facility in White Bluff, Tennessee. The company is backed by 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.

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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, the expectation of resumed operation at the Company’s facility in Tennessee, 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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