Umami Sustainable Seafood Inc. Announces Second Quarter Results

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Feb 28, 2011, 08:59 ET

SAN DIEGO, California, February 28, 2011 /PRNewswire-FirstCall/ -- Umami Sustainable Seafood Inc. (OTCBB:UMAM) (the "Umami" or the "Company") today announced net income attributable to Umami stockholders for the three months ended December 31, 2010 of $1.4 million on revenue of $14.4 million.

On November 30, 2010 Umami completed the acquisition of Baja Aqua Farms (Baja) and, accordingly, the results of operations include one month (December 2010) with the financial results of Baja Aqua Farms fully consolidated into the Company's financial statements. For the period during which Umami owned 33% of Baja (July 20, 2010 to November 30, 2010) Umami's equity proportion of net income of Baja was shown as income from investment in unconsolidated affiliates. Baja will be included in Umami's consolidated results going forward.

Our gross profit for the three months ended December 31, 2010 was $3.2 million compared with $1.2 million for the three months ended December 31, 2009. Sales increased from $4.8 million to $14.4 million as a result of increased sales at Kali and the addition of the Baja operation in December 2010. In addition to the consolidated sales, Baja had sales of $10.7 million from October 1, 2010 through the date of the completion of the acquisition (November 30, 2010). Total harvested biomass for from both operations was approximately 1,200 metric tons for the three months ended December 31, 2010.

The Company expects to harvest approximately 2,000 metric tons of bluefin tuna, representing approximately $40 million in sales, at its two operations in the quarter ending March 31, 2011, in addition to the 1,200 tons already harvested to fulfill existing sales contracts. The Company expects to end the harvest season in March 2011 with approximately 3,300 tons of live biomass remaining in its facilities in Croatia and Mexico combined.

In announcing these results, Oli Steindorsson, Chairman and CEO commented: "The completion of the Baja acquisition on November 30, 2010 more than doubled the size of our farming operations, gave us geographic diversity and added three unique farming locations to our operations. We are very pleased with the progress of assimilating the two operations. We expect that harvesting will be completed by the end of March 2011, with the result of 3,200 tons harvested as planned, at which time we will be focused on growing our remaining biomass, updating and strengthening our infrastructure and readying ourselves for the coming fishing seasons in both operations."

Mr. Steindorsson added: "In addition to the profitable operating results we have increased the total stockholder's equity of the Company from $16.2 million at June 30, 2010 to $33.1 million at December 31, 2010. The equity raises and other financing activities allowed us to increase our book value of inventory to $62.9 million at December 31, 2010 from $19.8 at June 30, 2010."

"The sum of the harvested biomass of the Company (including Baja for the period prior to our acquisition of it) and the live biomass left in our facilities will constitute 6,500 tons for our fiscal year ending June 30, 2011." Mr. Steindorsson concluded.

About the Company

The Company owns and operates Kali Tuna which is an established Croatian based aquaculture operation raising Northern Bluefin Tuna in the Croatian part of the Adriatic Sea and, as of November 30, 2010, Baja Aqua Farms, which is an established Mexico based aquaculture operation raising Northern Bluefin Tuna in the Pacific. The Company intends to become the leader in the Northern Bluefin Tuna by acquisition and internal growth. The growth of the Company will be founded on the sustainable management of resources and economically sound practices, seeking opportunities resulting from market consolidation and scientific progress in the industry. We also intend to continue our research into closed cycle farming technology for Bluefin Tuna which has produced encouraging results.

Notice Regarding Forward Looking Statements

This press release contains projections and forward-looking statements, as that term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements in this press release, which are not purely historical, are forward-looking statements and can include, without limitation, statements based on current expectations involving a number of risks and uncertainties and which are not guarantees of future performance of the Company. There are numerous risks and uncertainties that could cause actual results and the Company's plans and objectives to differ materially from those expressed in the forward-looking information, including (i) adverse market conditions; (ii) any adverse occurrence with respect to the farmed seafood industry generally or the business of Kali Tuna specifically; and (iii) changes in the regulatory environment. Actual results and future events could differ materially from those anticipated in such information. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Although the Company believes that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance those beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors set forth in the Company's Annual Report on Form 10-K filed on October 22, 2010, and other reports filed or to be filed from time-to-time with the Securities and Exchange Commission.

SOURCE Umami Sustainable Seafood Inc.