Q4 2022 Cyanotech Corp Earnings Call

Curious is Suski, Chief Executive Officer Emeritus of Sayano Tech.

Joining me on the call today is Matthew Kuster, President and Chief Executive Officer, and Felicia Laden, our Chief Financial Officer.

I am pleased to report <unk> fourth quarter and fiscal year, 2000, 22022, earning results I will turn the call over to Felicia to provide some are forward looking statements.

Thanks, Sherry 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.

For additional information we encourage you to review our 10-K fiscal year 2020 to report filed with the Securities and Exchange Commission.

I will turn it back to Jerry.

Jerry.

Thank you Felicia.

After 39 years with the Sayano Tech I have stepped down from my position as <unk>, Chief Executive Officer, and as a member of the board of Directors effective June 16th 2022 to have more personal time in my later years Mike.

My time at Sinopec has been both challenging and very rewarding.

I will assume the position of CEO of Americas and remain as the Chief Scientific Officer I.

I will be available for consultation on business strategy.

On an as needed basis, and I want to sincerely, thank shareholders and employees for their support throughout the years.

Matt cluster has been appointed President and Chief Executive Officer, and as a member of the board effective June 16th 2022.

Matt has been president of the company since May 2021 prior to his role as President He served as the company's Vice President and general manager since 2019.

Mr. <unk> joined the company in 2015, as a manufacturing manager before being promoted to director of manufacturing in 2016.

He has over 20 years of management experience in the food and supplement industries with previous experience, including seven years as plant manager.

Comma cooler macadamia nut.

Company.

Mister customer currently represents the company as chairman of the board with the natural algae. After Xanthan Association. He has a very talented and insightful leader and I am confident that company is in good hands I will turn the call over to Matt for a few comments and then discuss our results for the fiscal year.

Sure.

Yes.

Thank you Jerry I'd like to thank Jerry for his contributions to the company, which are too numerous to detail. He created a legacy at the company for all of US to continue to uphold I'm honored and humbled to lead the organization I look forward to working with you I will turn the call back to Jerry for comments on the fiscal year.

The company had growth in fiscal year 2022, net sales increased to $36 million over the fiscal year, a 11, 2% over the prior year and with an improved gross profit of three three percentage points as a result of lower cost as Spiro Lena due to higher production volumes.

And <unk> 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 billion in capital expenditures, including a new enterprise reporting system.

During the year, we installed two new solar power systems at our facility continuing sayano text commitment to renewable energy and.

In addition to the 791 metric tons of carbon dioxide emissions. We currently offset annually with our existing solar system. The two new systems will further reduce cotwo by 163 metric tons per year.

Now I'd like to turn it over to Felicia to discuss the financial results.

<unk> please.

In the fourth quarter of this fiscal year net sales were $8 1 million as compared to $9 $4 million last year.

<unk> of $1 3 million or 14%.

Total sales for the fiscal year.

Were $36 million as compared to $33 million last year.

$3 6 million or 11%.

Due to an increase of bulk sales of $3 4 million or 37% and new checks out of $407000 or 2% over prior year.

<unk> services sales declined by $219000.

Gross profit for the fourth quarter of fiscal 2022, with $2 9 million with a gross profit margin of 35, 6% compared to gross profit of $2 8 million.

And the gross profit margin of 29, 4%.

Fourth quarter of fiscal 2021.

Total gross profit for the fiscal year was $13 6 million with.

Gross profit margin of 37, 7% as compared to $11 1 million with a gross profit margin of 34 are quite a 4% last year.

The 3.3 percentage point increase was previously discussed.

Fourth quarter operating income was $364000 compared to an operating loss of $24000 in the fourth quarter.

Fiscal year 2021.

For the full year operating income was $2 million $574000 compared to operating income of $84000 in the prior fiscal year.

Net income for the fourth quarter was $277000 or <unk> <unk> per diluted share compared to a net loss of $200000 or <unk> <unk> per diluted share in the prior year.

Net income for the full year with $10.154 million or <unk> 35 per diluted share compared to net income of $920000 or <unk> 15 cents per diluted share last year.

The prior prior year net income included $1.397 million of income related to the forgiveness of the loan under the Paycheck protection program.

The company ended the current fiscal year with cash of $2 6 million and working capital of $11 4 million as compared to $3 8 million and $9 3 million respectively. As of March 31 2021.

I will hand, the call back to Jerry for concluding comments Gerry.

We have not had any questions. Thank you all for attending the call. Please stay safe and healthy Aloha.

With regard.