Press Release
Castle Brands Announces Fiscal 2016 Second Quarter Results
Operating highlights for the quarter ended
- Net sales increased 38.5% to
$18.5 million for the second quarter of fiscal 2016, as compared to$13.4 million for the comparable prior-year period. - Total gross profit increased 44.5% to
$7.1 million , as compared to$4.9 million for the comparable prior-year period. - EBITDA, as adjusted, improved to
$0.9 million , as compared to$0.1 million for the comparable prior-year period. - Continued strong growth of
Jefferson's bourbons and the Irish whiskies led to a 73.4% increase in whiskey revenues from the comparable prior-year period. - Goslings Stormy Ginger Beer case sales increased 69.2% to approximately 325,000 cases from approximately 192,000 in the comparable prior-year period.
- Goslings Rum case sales increased 7.3% to 47,000 cases from 43,700 cases in the comparable prior-year period.
- Loss before provision for income taxes improved to
($0.1) million as compared to($0.6) million in the comparable prior-year period. - The Company's revolving credit facility capacity was increased from
$12 million to$19 million to permit the Company to acquire additional aged whiskey inventory. - The Company increased its reserves of aged bourbon and entered into two long-term new fill agreements to augment these supplies of aged bourbon for its Jefferson's brand.
"This was another outstanding quarter for
"In the quarter, additional purchases of aged bourbon reserves coupled with initiation of two long-term new fill programs put us in a solid position to support increased sales of our
"The growing popularity of the trademarked "Dark 'n Stormy"® cocktail has been an important driver of Goslings growth. Recognizing that, we have focused on increasing sales of Goslings "Stormy
For the Three and Six Months Ended
In the second quarter of fiscal 2016, the Company had net sales of
EBITDA, as adjusted, for the second quarter of fiscal 2016 improved to
For the six months ended
EBITDA, as adjusted, for the first six months of fiscal 2016 improved to
Non-GAAP Financial Measures
Within the information above,
About
Forward Looking Statements
This press release includes statements of our expectations, intentions, plans and beliefs that constitute "forward looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and are intended to come within the safe harbor protection provided by those sections. These statements, which involve risks and uncertainties, relate to the discussion of our business strategies and our expectations concerning future operations, margins, sales, new products and brands, potential joint ventures, potential acquisitions, expenses, profitability, liquidity and capital resources and to analyses and other information that are based on forecasts of future results and estimates of amounts not yet determinable. You can identify these and other forward-looking statements by the use of such words as "may," "will," "should,"
"expects," "intends," "plans," "anticipates," "believes," "thinks," "estimates," "seeks," "predicts," "could," "projects," "potential" and other similar terms and phrases, including references to assumptions. These forward looking statements are made based on expectations and beliefs concerning future events affecting us and are subject to uncertainties, risks and factors relating to our operations and business environments, all of which are difficult to predict and many of which are beyond our control, that could cause our actual results to differ materially from those matters expressed or implied by these forward looking statements. These risks include our history of losses and expectation of further losses, our ability to expand our operations in both new and existing markets, our ability to develop or acquire new brands, our relationships with distributors, the success of our
marketing activities, the effect of competition in our industry and economic and political conditions generally, including the current economic environment and markets. More information about these and other factors are described under the caption "Risk Factors" in
| ||||||||||||||||
Condensed Consolidated Statements of Operations | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three months ended September 30, |
Six months ended September 30, |
|||||||||||||||
2015 |
2014 |
2015 |
2014 |
|||||||||||||
Sales, net* |
$ |
18,536,509 |
$ |
13,381,704 |
$ |
35,049,588 |
$ |
25,363,903 |
||||||||
Cost of sales* |
11,480,107 |
8,498,031 |
21,365,872 |
15,933,576 |
||||||||||||
Gross profit |
7,056,402 |
4,883,673 |
13,683,716 |
9,430,327 |
||||||||||||
Selling expense |
4,941,213 |
3,591,823 |
9,293,158 |
6,831,149 |
||||||||||||
General and administrative expense |
1,691,332 |
1,368,317 |
3,757,423 |
2,978,933 |
||||||||||||
Depreciation and amortization |
233,069 |
215,873 |
461,325 |
431,971 |
||||||||||||
Income (loss) from operations |
190,788 |
(292,340) |
171,810 |
(811,726) |
||||||||||||
Other income (expense), net |
600 |
64 |
(221) |
17,006 |
||||||||||||
Foreign exchange loss |
(40,360) |
(29,011) |
(89,579) |
(265,458) |
||||||||||||
Interest expense, net |
(257,636) |
(288,215) |
(514,800) |
(576,857) |
||||||||||||
Income from equity investment in non- |
4,513 |
-- |
4,513 |
-- |
||||||||||||
Loss before provision for income taxes |
(102,095) |
(609,502) |
(428,277) |
(1,637,035) |
||||||||||||
Income tax expense, net |
(579,962) |
(259,962) |
(1,103,924) |
(422,924) |
||||||||||||
Net loss |
(652,057) |
(869,464) |
(1,502,201) |
(2,059,959) |
||||||||||||
Net income attributable to |
(329,214) |
(211,049) |
(602,732) |
(516,385) |
||||||||||||
Net loss attributable to common shareholders |
$ |
(1,011,271) |
$ |
(1,080,513) |
$ |
(2,134,933) |
$ |
(2,576,344) |
||||||||
Net loss per common share, basic and |
$ |
(0.01) |
$ |
(0.01) |
$ |
(0.01) |
$ |
(0.02) |
||||||||
Weighted average shares used in |
159,774,811 |
155,189,679 |
158,661,309 |
154,562,875 |
||||||||||||
* Sales, net and Cost of sales include excise taxes of |
| ||||||||||||||||
Reconciliation of net loss to EBITDA, as adjusted | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three months ended |
Six months ended |
|||||||||||||||
|
|
|||||||||||||||
2015 |
2014 |
2015 |
2014 |
|||||||||||||
Net loss attributable to common shareholders |
$ |
(1,011,271) |
$ |
(1,080,513) |
$ |
(2,134,933) |
$ |
(2,576,344) |
||||||||
Adjustments: |
||||||||||||||||
Interest expense, net |
257,636 |
288,215 |
514,800 |
576,857 |
||||||||||||
Income tax expense, net |
579,962 |
259,962 |
1,103,924 |
422,924 |
||||||||||||
Depreciation and amortization |
233,069 |
215,873 |
461,325 |
431,971 |
||||||||||||
EBITDA (loss) |
59,396 |
(316,463) |
(54,884) |
(1,144,592) |
||||||||||||
Allowance for doubtful accounts |
9,000 |
9,000 |
43,000 |
68,000 |
||||||||||||
Allowance for obsolete inventory |
-- |
-- |
100,000 |
-- |
||||||||||||
Stock-based compensation expense |
458,450 |
208,808 |
698,390 |
400,264 |
||||||||||||
Other (income) expense, net |
(600) |
(64) |
221 |
(17,006) |
||||||||||||
Income from equity investments in non-consolidated affiliate |
(4,513) |
-- |
(4,513) |
-- |
||||||||||||
Foreign exchange loss |
40,360 |
29,011 |
89,579 |
265,458 |
||||||||||||
Net income attributable to noncontrolling interests |
329,214 |
211,049 |
602,732 |
516,385 |
||||||||||||
EBITDA, as adjusted |
891,307 |
141,341 |
1,474,525 |
88,509 |
Investor Relations, 646-356-0200
info@castlebrandsinc.com
www.castlebrandsinc.com
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