Cyanotech: Fiscal 2022 Third Quarter Investor Call Script_as_recorded
Cyanotech Corporation (NASDAQ: CYAN)
Release of Third Quarter Fiscal 2022 Results
February 11, 2022; 8:00 p.m. EDT
Gerry Cysewski – President and CEO
Felicia Ladin – Chief Financial Officer
Aloha from Kona, Hawaii. Thank you all for joining us today. I’m Gerry Cysewski, president and CEO of Cyanotech. Joining me today is Felicia Ladin, our CFO. I am pleased to report Cyanotech’s third quarter fiscal 2022 results. I will turn the call over to Felicia to provide our forward-looking statement.
Thanks Gerry. Our discussion today may include forward-looking statements. We undertake no obligation to update forward-looking statements 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 could cause different results are listed in our publicly filed documents. For more information, we encourage you to review our 10Q report and 2021 10K fiscal year filed with the Securities and Exchange Commission.
Coming back to Gerry for comments on the quarter, Gerry:
Financial results for the third quarter of fiscal 2022 continued the positive results of the last two quarters of fiscal 2022. Although we face supply chain constraints similar to most production and manufacturing companies , we have been able to minimize them so far. Demand remains strong as we benefit from increased interest in high-value, naturally-derived nutritional products for human health and well-being.
During the third quarter, we repaid the outstanding line of credit balance of $350,000. This provides us with additional liquidity and access to the full $2,000,000 on the line of credit.
Now I would like to pass the call to Felicia to discuss the third trimester. Felicia, please?
Thank you Gerry and good evening to all.
Net sales for the third quarter of Fiscal 2022 were $9,459,000 compared to $6,985,000 for the third quarter of Fiscal 2021, an increase of $2,500,000 or 35% mainly attributable to a increase in bulk sales.
Gross profit for the third quarter of fiscal 2022 was $3,238,000, with a gross profit margin of 34.2%, compared to gross profit of $2,071,000 and gross profit margin of 29.6 % in the third quarter of fiscal 2021. Gross profit as a percentage of net income sales increased by 4.6 percentage points compared to the same period last year, explained by lower costs of spirulina and astaxanthin.
Operating profit for the third quarter was $508,000 compared to an operating loss of $441,000 last year, reflecting higher sales and lower cost of spirulina and astaxanthin.
Net earnings for the current quarter were $386,000, or $0.06 per diluted share, compared to net earnings of $827,000, or $0.13 per diluted share the prior year. Prior year net income included paycheck protection program loan forgiveness of $1,389,000.
The company had cash of $2.3 million and working capital of $11.2 million, compared to $3.8 million and $9.3 million, respectively, as of March 31, 2021 .
I’m going to turn the call over to Gerry for closing comments, Gerry:
We had no questions. Thank you for participating in the call.
Please stay safe and healthy. Aloha