Castle Brands Sends Annual Letter to Shareholders
Dear Fellow Shareholder,
We are pleased to announce that our fiscal year ended
For fiscal 2012, we reported total case sales (excluding ginger beer) of
333,529, a 9% increase in total case sales compared to the previous
year. Because this growth came primarily from our higher value and
higher margin brands such as Gosling's Rum, Jefferson's Bourbons and our
Irish whiskeys, revenue increased 11% to
While sales increased 11% for the year, our total SG&A expenses actually decreased 1%. We have a strong sales force and management team, which should allow us to continue to increase sales substantially without corresponding increases to costs. This ability to scale our business led to significantly stronger bottom line performance, with a 40% improvement in our EBITDA, as adjusted. We believe these trends will allow us to become solidly profitable and build substantial shareholder value.
Sales of Jefferson's Bourbons increased dramatically during the year. We
also introduced Jefferson's Rye. We believe Jefferson's growth is still
in its early stages, with significant untapped market opportunities.
During the year, we completely renegotiated our supply agreements for
our Irish whiskey brands,
Another very positive development during the year was the establishment
As we look ahead, we remain focused on maintaining this momentum in our business and on reaching our goals of becoming solidly profitable and building shareholder value.
Thank you for your ongoing support.
Richard J. Lampen President and Chief
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
When considering these forward looking statements, you should keep in
mind the cautionary statements in this press release and the reports we
file with the
News Provided by Acquire Media