Q4 and Fiscal Year 2023 Earnings Broadcast
Executives:
Matthew Custer – President and Chief Executive Officer
Felicia Ladin – Chief Financial Officer
Matt Custer:
Aloha from Kona, Hawaii. Thank you all for joining us today. I am Matt Custer, President and Chief Executive Officer of Cyanotech. Joining me on the call today is Felicia Ladin, our Chief Financial Officer. I am pleased to report Cyanotech’s fourth quarter and fiscal year 2023 earnings results. I will turn the call over to Felicia to provide our forward-looking statement.
Felicia Ladin:
Thanks Matt. Our discussion today may include forward-looking statements. We do not undertake any obligation to update forward-looking statements either as a result of new information, future events or otherwise. Our actual results may differ materially from what is described in these forward-looking statements. Some of the factors that may cause results to differ are listed in our publicly filed documents. For additional information, we encourage you to review our 10K fiscal year 2023 report filed with the Securities and Exchange Commission.
I will turn it back to Matt, Matt:
Thank you, Felicia.
Matt Custer
Fiscal year 2023 was a challenging year as a result of a number of macroeconomic events and timing of sales. Consumers shifted their spend from goods to experiences and services, lower sales in the bulk business due in part to inventory adjustments after the global supply chain issues eased and lower sales in the e-commerce business that were driven by a difference in strategy implemented by our third-party distributor.
Our manufacturing operations produced consistent and high-quality algae, however, the cost per kilo for spirulina in particular was a drag on the gross margin as we reduced production volume to align with demand resulting in a higher cost per kilo.
In the fourth quarter of fiscal year 2023, the Company generated cash flow of $583,000 from operations as a result of the cash saving initiatives that we implemented in the second quarter, including slowing production and reducing headcount.
Despite the disappointing sales figures, I am hopeful for the future. We are well positioned to meet customer needs in the growing market for naturally derived high value nutritional products.
Now I would like to turn over the call to Felicia to discuss the financials. Felicia, please?
Felicia Ladin
- In the fourth quarter this fiscal year, net sales were $5.4 million as compared to $8.1 million last year, a decrease of $2.7 million or 33.7%. Total sales for the fiscal year were $23.2 million as compared to $36.0 million last year, a decline of $12.8 million or 35.6%. The declines where most pronounced in the bulk sales with a decline of 57% based on the items Matt discussed.
- Gross profit for the fourth quarter of fiscal 2023 was $1.4 million with a gross profit margin of 25.7%, compared to a gross profit of $2.9 million and gross profit margin of 35.6% in the fourth quarter of fiscal 2022. Total gross profit for the fiscal year was $7.3 million with a gross profit margin of 31.3%, as compared to $13.6 million with a gross profit margin of 37.7%, last year. The 6.4 percentage point decrease was previously discussed.
- Fourth quarter operating loss was $1.3 million compared to operating income of $364,000 in the fourth quarter fiscal year 2022. For the full year, operating loss was $2.9 million compared to operating income of $2.6 million in the prior fiscal year.
- Net loss for the fourth quarter was $1.4 million, or $0.23 loss per share, compared to a net income of $277,000, or $0.04 earnings per share in the prior year. Net loss for the full year was $3.4 million or $0.55 loss per share, compared to net income of $2.2 million or $0.35 earnings per share in the prior year.
- The company ended the current fiscal year with cash of $974,000 and working capital of $5.3 million as compared to $2.6 million and $11.4 million, respectively, as of March 31, 2022.
I will hand the call back to Matt for concluding comments, Matt:
Matt Custer
We have not had any questions. Thank you for attending the call.
Please stay safe and healthy. Aloha
