Blue Earth Resources Inc (PK)【BERI】株式ニュース

Blue Earth Resources Reports 8% Growth to $23.3 Million Revenue for its First Quarter Ended May 31, 2023
Increases in Rack and Bulk Fuel Sales Improved Margins

KNOXVILLE, TN / ACCESSWIRE / July 18, 2023 / Blue Earth Resources, Inc. (the "Company," "we," "our," or "us") (OTC PINK:BERI) and its wholly-owned subsidiaries, Fuel Trader Supply and Fuel Trader Resource Management, is pleased to announce its financial and operational results for its first quarter ended May 31, 2023. Blue Earth Resources filed its Quarterly Report on OTC Markets on July 16, 2023.

Key Financial Highlights First Quarter Ended May 31, 2023 Compared to Prior Year Period

Revenue increased 8% to $23.3 million
Gross profit increased 196% to $0.5 million
Gross margin increased 150 basis points to 2.35%
Operating loss increased 180% to $0.8 million
Net loss increased to $3.2 million (including $2.4 million of interest expense)
Adjusted EBITDA loss increased 53% to $0.3 million
Management Commentary

Scott M. Boruff, Chief Executive Officer of Blue Earth Resources, commented, "We are very pleased with our start to our fiscal year 2024. We shifted toward slightly higher margin business, which resulted in revenue growth of 8% and much improved gross profit by nearly 200% to $0.5 million. This is important as we will continue to focus on improving margin and believe profitability is well within our sight as we look to at least double revenue in our fiscal year 2024. We have a healthy pipeline of BP locations and our own BluePetro retail units expected to open over the coming months."

Boruff, continued, "With all of our data points are trending positively, highlighted by growth in our volumes and customers, both leading to an increase in revenue, we are looking to improve our capital market positioning over the remainder of the year. This includes becoming an SEC reporting and compliant company, plans on an uplist to a major national exchange and increasing our visibility and awareness with more proactive and effective investor communication and relations."

Financial Results for First Quarter Ended May 31, 2023

Revenue for the first quarter ended May 31, 2023 increased by $1.6 million, or 8%, to $23.3 million, compared to $21.7 million for the first quarter ended May 31, 2022. This increase was primarily due to increases in fuels sales - rack and bulk;
Gross profit for the first quarter ended May 31, 2023 increased by $0.4 million, or 196%, to $0.5 million, compared to $0.2 million for the first quarter ended May 31, 2022. The corresponding gross margin for the first quarter ended May 31, 2023 increased by 150 basis points to 2.35%, compared to 0.85% for the first quarter ended May 31, 2022;
Operating expenses for the first quarter ended May 31, 2023 increased by $0.9 million, or 187% to $1.3 million, compared to $0.5 million for the first quarter ended May 31, 2022. Of note,
Loss from operations for the first quarter ended May 31, 2023 increased by $0.5 million, or 180%, to $0.8 million, compared to $0.3 million for the first quarter ended May 31, 2022;
Net loss for the first quarter ended May 31, 2023 increased by $2.9 million to $3.2 million for ($0.03) per share, compared to $0.2 million for ($0.00) per share for the first quarter ended May 31, 2022. The increase in net loss was primarily due to $2.4 million of interest expense;
Adjusted EBITDA for the first quarter ended May 31, 2023 increased by $0.2 million, or 53%, to $0.3 million, compared to $0.2 million the first quarter ended May 31, 2022. Adjusted EBITDA calculations back-out non-cash expenses, such as depreciation and amortization, amortization of debt issue costs, stock-based compensation and shares issued for services;
Cash and cash equivalents totaled $1.1 million at May 31, 2023, a decrease of $0.5 million compared to $1.6 million at February 28, 2023; and
The Company had $13.6 million in short-term borrowings at May 31, 2023.
Non-GAAP Financial Measures

The Company has provided in this release certain non-GAAP financial measures, including Adjusted EBITDA, to supplement the consolidated financial statements, which are prepared in accordance with generally accepted accounting principles in the United States ("GAAP"). The Company Adjusted EBITDA is defined as net income (loss) adjusted to exclude interest expense (income), net, provision for income taxes, gain on extinguishment of term debt, depreciation and amortization expense, other expense, net and stock-based compensation expense.

Management uses these financial metrics internally in analyzing the Company's financial results to assess operational performance and to determine the Company's future capital requirements. The presentation of this financial information is not intended to be considered in isolation or as a substitute for the financial information prepared in accordance with GAAP. The Company believes that both management and investors benefit from referring to these financial metrics in assessing our performance and when planning, forecasting and analyzing future periods. The Company believes these financial metrics are useful to investors and others to understand and evaluate the Company's operating results and it allows for a more meaningful comparison between the Company's performance and that of competitors. Our use of Adjusted EBITDA has limitations as an analytical tool, and you should not consider this performance measure in isolation from or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are that Adjusted EBITDA does not reflect: cash capital expenditures for assets underlying depreciation and amortization expense that may need to be replaced or for new capital expenditures; interest income (expense), net; other income, net; the potentially dilutive impact of stock-based compensation; gain on the extinguishment of term debt; and the provision for income taxes. Other companies, including companies in our industry, may calculate Adjusted EBITDA differently, which reduces its usefulness as a comparative measure.

Because of these limitations, you should consider these financial metrics along with other financial performance measures, including total revenues, subscription revenue, deferred revenue, net income (loss), cash and cash equivalents, restricted cash, net cash used in operating activities and our financial results presented in accordance with GAAP.

About Blue Earth Resources, Inc. (OTC:BERI)

Blue Earth Resources, Inc. procures refined fuels from refineries and wholesalers and distributes it to both large retailers and single site operators. Our solution represents lower risk and more stable pricing to our vendors and customers. In addition, our custom branding services include imaging, design and consultation services to assist with custom branding. Blue Earth Resources, Inc. is headquartered in Knoxville, Tennessee.

For additional information, please visit: https://berifuels.com

Forward-looking Statements:

Certain statements contained herein are forward-looking statements including, but not limited to, statements that are predictions of or indicate future events, trends, plans, or objectives. Undue reliance should not be placed on such statements because, by their nature, they are subject to known and unknown risks and uncertainties. Forward-looking statements are not a guarantee of future activities and are subject to many risks and uncertainties. Due to such risks and uncertainties, actual events may differ materially from those reflected or contemplated in such forward-looking statements. Forward-looking statements can be identified by the use of the future tense or other forward-looking words such as "believe," "expect," "anticipate," "intend," "plan," "should," "may," "will," "continue," "strategy," "position," "opportunity," statements regarding the "flexibility" of the Company or the negative of any of those terms or other variations of them or by comparable terminology.

Investor Contacts:

Scott M. Boruff, CEO
investorrelations@berifuels.com
888-462-2374
ClearThink IR
nyc@clearthink.capital

SOURCE: Blue Earth Resources, Inc.

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