The Limestone Boat Company announces Third Quarter 2022 Results

The Limestone Boat Company

Dec 6, 2022

On November 29, 2022, The Limestone Boat Company Limited (the “Company”) (TSXV: BOAT | OTCQB: LMSBF) – owner and builder of Aquasport Boats, Limestone® Boats and Boca Bay Boats –reported 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

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.

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.

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 .

Related Posts

Princecraft Boats upgrade their facilities with an investment of over $4 million for the addition of a powder coating line


Princecraft boats on April 17, 2024, announced to their employees, a major investment in one of their three Princeville plants, which will include the installation of high-tech powder coating capabilities. The nearly $4 million upgrade marks the largest investment in Princecraft facilities since the early 2000s and will improve operational efficiency, product quality and better poise the company for response to demand.

Read More

Need to Catch up on News This Week?

Every Tuesday we publish a fresh Digest with informative articles pertaining to the Canadian boating and marine industry. Stay up to date with the latest products, research and industry developments.

Missed an Issue of Boating Industry Canada News Week? If you’re looking for a specific issue, or simply want to catch up on previous issues, check out our Boating Industry Canada News Week Archives.

Not signed up for News Week? Subscribe here.

The Hydrobike, a key concept that embodies a vision for the future

DECATHLON, determined to erase the boundary between land and water, introduces its latest forward-thinking concept: the HydroBike. This innovation from the French sports giant aims to democratize access to nature while staying ahead in the transformation of their business model. 

The initial assessment: paddle sports are often inaccessible to less experienced individuals, assuming the acquisition of paddling skills.

Read More

ACR Electronics emergency beacons are designed with one purpose: to save lives.

Hubbell-Marine Stainless steel outlet covers

An all-encompassing and dependable set of vital resources, ACR GlobalFix V5 AIS RLS EPIRB Survival Kits ensure security and survival in waterborne emergencies. The most advanced EPIRB (Emergency Position Indicating Radio Beacon) available, the ACR GlobalFix V5 EPIRB combines 406 MHz satellite connectivity with Automatic Identification System (AIS) functionality.

Read More