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Net Sales Increase 14% on Strong Case Sales Growth
Operating Highlights for quarter ended
"We continue to execute upon our strategy and increase net sales
year-over-year, bringing us closer to profitability. The positive
momentum we are experiencing in our business reflects the strength of
our global portfolio of premium brands, such as Gosling's rum,
Jefferson's Bourbons and Pallini Limoncello," stated
"One of the great successes that we have had in our strategy to lower
costs is the dramatic improvements made to our supply chains and cost
structures. These enhancements include effectively streamlining our
international distribution operations and making certain inventory and
personnel reductions. We anticipate the benefits from these changes to
continue to have a positive effect on our business and play a major role
in our ability to achieve profitability," stated
In the fiscal 2012 second quarter, the Company had net sales of
EBITDA, as adjusted, for the second quarter of fiscal 2012 improved to a
loss of
In the first six months of fiscal 2012, the Company had net sales of
EBITDA, as adjusted, for the first six months of fiscal 2012 improved to
a loss of
Non-GAAP Financial Measures
EBITDA, as adjusted
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,
related 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," "expects," "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 and our cost reduction efforts, the
effect of competition in our industry and economic and political
conditions generally, including the current recessionary economic
environment and concurrent market instability. More information about
these and other factors are described under the caption "Risk Factors"
in
|
Condensed Consolidated Statements of Operations (Unaudited) |
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|
Three months ended |
Six months ended September 30, | |||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
| Sales, net* | $ | 9,399,954 | $ | 8,218,574 | $ | 16,792,338 | $ | 14,329,069 | ||||||||
| Cost of sales* | 6,107,115 | 5,194,853 | 10,753,210 | 9,079,404 | ||||||||||||
| Reversal of provision for obsolete inventory | — | — | — | (24,589 | ) | |||||||||||
| Gross profit | 3,292,839 | 3,023,721 | 6,039,128 | 5,274,254 | ||||||||||||
| Selling expense | 2,656,399 | 2,806,555 | 5,263,180 | 5,318,008 | ||||||||||||
| General and administrative expense | 1,185,713 | 1,343,037 | 2,454,113 | 2,588,036 | ||||||||||||
| Depreciation and amortization | 225,811 | 229,745 | 453,956 | 465,476 | ||||||||||||
| Loss from operations | (775,084 | ) | (1,355,616 | ) | (2,132,121 | ) | (3,097,266 | ) | ||||||||
| Other income | — | — | — | 957 | ||||||||||||
| Other expense | — | (300 | ) | — | (300 | ) | ||||||||||
| Gain (loss) from equity investment in non-consolidated affiliate | 108 | — | (17,349 | ) | — | |||||||||||
| Foreign exchange loss | (116,387 | ) | (111,761 | ) | (238,462 | ) | (54,246 | ) | ||||||||
| Interest expense, net | (176,731 | ) | (71,697 | ) | (354,272 | ) | (97,240 | ) | ||||||||
| Net change in fair value of warrant liability | 209,899 | — | 185,025 | — | ||||||||||||
| Income tax benefit | 37,038 | 37,038 | 74,076 | 74,076 | ||||||||||||
| Net loss | (821,157 | ) | (1,502,336 | ) | (2,483,103 | ) | (3,174,019 | ) | ||||||||
| Net income attributable to noncontrolling interests | (99,514 | ) | (134,851 | ) | (204,578 | ) | (185,976 | ) | ||||||||
| Net loss attributable to controlling interests | (920,671 | ) | (1,637,187 | ) | (2,687,681 | ) | (3,359,995 | ) | ||||||||
| Dividend to preferred shareholders | (49,927 | ) | — | (379,387 | ) | — | ||||||||||
| Net loss attributable to common shareholders | $ | (970,598 | ) | $ | (1,637,187 | ) | $ | (3,067,069 | ) | $ | (3,359,995 | ) | ||||
| Net loss per common share, basic and diluted, attributable to common shareholders | $ | (0.01 | ) | $ | (0.02 | ) | $ | (0.03 | ) | $ | (0.03 | ) | ||||
| Weighted average shares used in computation, basic and diluted, attributable to common shareholders | 107,452,007 | 107,202,145 | 107,327,758 | 107,650,369 | ||||||||||||
* Sales, net and Cost of sales include excise taxes of
See accompanying notes to the unaudited condensed consolidated financial statements.
|
Reconciliation of Net Loss to EBITDA, as adjusted |
||||||||||||||||||
| Three months ended | Six months ended | |||||||||||||||||
|
|
September 30, | |||||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||||
| Net loss attributable to common shareholders | $ | (970,598 | ) | $ | (1,637,187 | ) | $ | (3,067,069 | ) | $ | (3,359,995 | ) | ||||||
| Adjustments: | ||||||||||||||||||
| Interest expense, net | 176,731 | 71,697 | 354,272 | 97,240 | ||||||||||||||
| Income tax benefit | (37,038 | ) | (37,038 | ) | (74,076 | ) | (74,076 | ) | ||||||||||
| Depreciation and amortization | 225,811 | 229,745 | 453,956 | 465,476 | ||||||||||||||
| EBITDA (loss) | (605,094 | ) | (1,372,783 | ) | (2,332,917 | ) | (2,871,355 | ) | ||||||||||
| Allowance for doubtful accounts | 11,123 | 14,864 | 18,034 | 29,664 | ||||||||||||||
| Allowance for obsolete inventory | — | — | — | (24,589 | ) | |||||||||||||
| Stock-based compensation expense | 52,737 | 48,404 | 84,513 | 84,693 | ||||||||||||||
| Other income | — | — | — | (957 | ) | |||||||||||||
| Other expense | — | 300 | — | 300 | ||||||||||||||
| Gain (loss) from equity investment in non-consolidated affiliate | (108 | ) | — | 17,349 | — | |||||||||||||
| Foreign exchange loss | 116,386 | 111,761 | 238,463 | 54,246 | ||||||||||||||
| Net change in fair value of warrant liability | (209,899 | ) | — | (185,025 | ) | — | ||||||||||||
| Net income attributable to noncontrolling interests | 99,515 | 134,851 | 204,578 | 185,976 | ||||||||||||||
| Dividend to preferred shareholders | 49,927 | — | 379,387 | — | ||||||||||||||
| EBITDA, as adjusted | (485,413 | ) | (1,062,603 | ) | (1,575,618 | ) | (2,542,022 | ) | ||||||||||
INVESTOR CONTACTS:
212-896-1215 / 212-896-1250
tfromer@kcsa.com
/ grussell@kcsa.com
www.kcsa.com
Source:
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