Adjusted EBITDA Loss Decreased 22% to $0.8 Million

KNOXVILLE, TN / ACCESSWIRE / June 5, 2023 / Blue Earth Resources, Inc. (the "Company," "we," "our," or "us") (OTC:BERI) and its wholly-owned subsidiaries, Fuel Trader Supply and Fuel Trader Resource Management, is pleased to announce its audited financial and operational results for the fiscal year ended February 28, 2023. Blue Earth Resources filed its Annual Report on OTC Markets on May 28, 2023.

Key Financial Highlights for Fiscal Year Ended February 28, 2023 Compared to Prior Year Period

• Revenue increased 298% to $85.5 million
• Gross profit increased 1,220% to $2.8 million
• Gross margin on delivered fuel increased 248 basis points to 3.28%
• Operating loss increased 19% to $1.5 million
• Net loss increased 389% to $5.0 million (including $3.4 million of interest expense)
• Adjusted EBITDA loss decreased 22% to $0.8 million

Business Highlights for the Fiscal Year Ended February 28, 2023

• Acquired Fuel Trader Supply and Fuel Trader Resource Management
• Entered Branded Jobber Contract with BP Amoco
• Launched BluePetro Branded Fuel Offering for Southeast U.S. Convenience Stores

Management Commentary

Scott M. Boruff, Chief Executive Officer of Blue Earth Resources, commented, "We are thrilled with our finish to the calendar year 2022, which has carried through so far in 2023. Our team did a tremendous job successfully integrating our acquisitions of Fuel Trader Supply and Fuel Trader Resource Management, which closed in September. All of our data points are trending positively, highlighted by growth in our volumes and customers, both leading to an increase in revenue."

Boruff, continued, "We continue to focus on utilizing technology and high customer service as differentiators from the larger markets players in our industry. As our financial results indicate, our nimbleness and efficiencies are paying off, and we will maintain our focus on accelerating revenue growth with an eye on achieving profitability by the end of calendar 2023. We continue to explore and identify additional strategic opportunities, including acquisitions of other assets or entities that are synergistic to our business, which we believe will increase shareholder value. Additionally, we are in discussions with lenders to replace the high interest debt used for the Fuel Trader acquisitions to significantly reduce our interest expense. We look forward to updating our shareholders with our progress over the coming months."

Financial Results for Fiscal Year Ended February 28, 2023

• Revenue for the fiscal year ended February 28, 2023 increased by $56.8 million, or 298%, to $85.5 million, compared to $28.7 million for the fiscal year ended February 28, 2022. This increase was primarily due to increases in fuels sales - delivered, rack, bulk and renewables and the acquisitions of Fuel Trader Supply and Fuel Trader Resource Management;
• Gross profit for the fiscal year ended February 28, 2023 increased by $2.6 million, or 17%, to $2.8 million, compared to $0.2 million for the fiscal year ended February 28, 2022. The corresponding gross margin for the fiscal year ended February 28, 2023 increased by 248 basis points to 3.28%, compared to 0.80% for the fiscal year ended February 28, 2022;
• Operating expenses for the fiscal year ended February 28, 2023 increased by $2.8 million, or 287% to $4.3 million, compared to $1.5 million for the fiscal year ended February 28, 2022;
• Loss from operations for the fiscal year ended February 28, 2023 increased by $0.2 million, or 19%, to $1.5 million, compared to $1.3 million for the fiscal year ended February 28, 2022;
• Net loss for the fiscal year ended February 28, 2023 increased by $3.7 million, or 389%, to $5.0 million for ($0.06) per share, compared to $1.3 million for ($0.02) per share for the fiscal year ended February 28, 2022. The increase in net loss was primarily due to $3.4 million of interest expense;
• Adjusted EBITDA for the fiscal year ended February 28, 2023 decreased by $0.2 million, or 22%, to $0.8 million, compared to $1.0 million the fiscal year ended February 28, 2022. Adjusted EBITDA calculations back-out non-cash expenses, such as depreciation and amortization, amortization of debt issue costs, stock-based compensation and shares issued for services;
• Cash and cash equivalents totaled $1.6 million at February 28, 2023, an increase of $1.5 million compared to $0.1 million at February 28, 2022; and
• The Company had $12.0 million in short-term borrowings at February 28, 2023.

Non-GAAP Financial Measures

The Company has provided in this release certain non-GAAP financial measures, including Adjusted EBITDA, to supplement the consolidated financial statements, which are prepared in accordance with generally accepted accounting principles in the United States ("GAAP"). The Company Adjusted EBITDA is defined as net income (loss) adjusted to exclude interest expense (income), net, provision for income taxes, gain on extinguishment of term debt, depreciation and amortization expense, other expense, net and stock-based compensation expense.

Management uses these financial metrics internally in analyzing the Company's financial results to assess operational performance and to determine the Company's future capital requirements. The presentation of this financial information is not intended to be considered in isolation or as a substitute for the financial information prepared in accordance with GAAP. The Company believes that both management and investors benefit from referring to these financial metrics in assessing our performance and when planning, forecasting and analyzing future periods. The Company believes these financial metrics are useful to investors and others to understand and evaluate the Company's operating results and it allows for a more meaningful comparison between the Company's performance and that of competitors. Our use of Adjusted EBITDA has limitations as an analytical tool, and you should not consider this performance measure in isolation from or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are that Adjusted EBITDA does not reflect: cash capital expenditures for assets underlying depreciation and amortization expense that may need to be replaced or for new capital expenditures; interest income (expense), net; other income, net; the potentially dilutive impact of stock-based compensation; gain on the extinguishment of term debt; and the provision for income taxes. Other companies, including companies in our industry, may calculate Adjusted EBITDA differently, which reduces its usefulness as a comparative measure.

Because of these limitations, you should consider these financial metrics along with other financial performance measures, including total revenues, subscription revenue, deferred revenue, net income (loss), cash and cash equivalents, restricted cash, net cash used in operating activities and our financial results presented in accordance with GAAP.

About Blue Earth Resources, Inc. (OTC:BERI)

Blue Earth Resources, Inc. procures refined fuels from refineries and wholesalers and distributes it to both large retailers and single site operators. Our solution represents lower risk and more stable pricing to our vendors and customers. In addition, our custom branding services include imaging, design and consultation services to assist with custom branding. Blue Earth Resources, Inc. is headquartered in Knoxville, Tennessee.

For additional information, please visit: https://berifuels.com

Forward-looking Statements:

Certain statements contained herein are forward-looking statements including, but not limited to, statements that are predictions of or indicate future events, trends, plans, or objectives. Undue reliance should not be placed on such statements because, by their nature, they are subject to known and unknown risks and uncertainties. Forward-looking statements are not a guarantee of future activities and are subject to many risks and uncertainties. Due to such risks and uncertainties, actual events may differ materially from those reflected or contemplated in such forward-looking statements. Forward-looking statements can be identified by the use of the future tense or other forward-looking words such as "believe," "expect," "anticipate," "intend," "plan," "should," "may," "will," "continue," "strategy," "position," "opportunity," statements regarding the "flexibility" of the Company or the negative of any of those terms or other variations of them or by comparable terminology.

Investor Contacts:

Scott M. Boruff, CEO
investorrelations@berifuels.com
888-462-2374

ClearThink IR
nyc@clearthink.capital

SOURCE: Blue Earth Resources, Inc.