06/23/2021 | Press release | Distributed by Public on 06/23/2021 19:02
June 23, 2021; 8:00PM EDT
Executives:
Gerry Cysewski - Chief Executive Officer
Felicia Ladin - Chief Financial Officer
Gerry Cysewski:
Aloha from Kona, Hawaii. Thank you all for joining us today to report Cyanotech's fourth quarter and full year 2021 earnings results. I am Gerry Cysewski, Chief Executive Officer of Cyanotech. Joining me on the call today is Felicia Ladin, our Chief Financial Officer. I will turn the call over to Felicia to provide our forward looking statement.
Felicia:
Thanks Gerry. 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 for fiscal year 2021 filed with the Securities and Exchange Commission.
I will turn it back to Gerry for comments on the quarter.
Gerry:
For fiscal year 2021 we deleveraged the balance sheet by $1.7 million, generated cash flow from operations of $2.4 million and invested in capital for the business. Our cash balance improved by $1.4 million from $2.4 million in fiscal year 2020 to $3.8 million in fiscal year 2021.
During the fourth quarter, we launched new labels for both our BioAstin® Hawaiian Astaxanthin® and Hawaiian Spirulina products. The new labels were well received in the marketplace.
The company's fourth quarter net sales of $9.4 million increased $804,000 or 9% over fiscal year 2020. The product mix changed with higher bulk and contract services sales of $1.4 million offset by lower sales of Nutrex products of $549,000. Our gross margin for the fourth quarter was lower than the same quarter, prior year, due to product mix. Bulk sales have a lower gross margin. In addition, the current quarter, was also impacted by higher current year spirulina costs per kilo driven by lower production.
Turning over to Felicia to discuss the financial results.
Felicia:
Thanks Gerry, Key financial results for the fourth quarter and full year:
I will hand the call back to Gerry for concluding comments.
Gerry:
We had one question which we will now address.
Are there any efforts underway at Cyanotech to explore the use of Spirulina microalgae for biofuel applications?
No, we have never considered Spirulina for use in biofuel applications. The production cost of Spirulina is at least two orders of magnitude too high to be practical for biofuel application.
Thank you all for attending the call. Please stay safe and healthy.
Aloha