Castle Brands Inc. (AMEX: ROX), an emerging developer and international marketer of premium branded spirits, today reported financial results for the three and twelve months ended March 31, 2010.
Full Year Fiscal 2010
For fiscal 2010, the Company had net sales of $28.5 million, an increase of 9.1% from net sales of $26.1 million in the prior year period, as the Company continued to focus on its more profitable brands and markets and its pricing strategy.
U.S. case sales increased 5.5% to 217,938 nine liter cases in fiscal 2010. International case sales decreased to 68,248 cases in fiscal 2010 as compared to 83,806 cases in fiscal 2009. Total case sales for fiscal 2010 were 286,186 cases as compared to 290,338 cases in fiscal 2009.Selling expense decreased 28.7% to $9.6 million in fiscal 2010 from $13.4 million in fiscal 2009 due to cost containment efforts, including a decrease in advertising and promotional expense. The Company had a net loss of $2.9 million in fiscal 2010, or ($.03) per basic and diluted share, compared to a net loss of $21.7 million, or ($.68) in the prior year. Net loss per common share basic and diluted for fiscal 2010 was positively impacted by the increase in common stock outstanding in 2010 resulting from the October 2008 and May 2009 conversions of outstanding senior notes to common stock. The Company's annual goodwill and intangible assets impairment testing did not result in an impairment charge in fiscal 2010 as compared to a $4.8 million charge in fiscal 2009. Fiscal 2010 results included a foreign exchange gain of $2.1 million as compared to a loss of $4.1 million in fiscal 2009 due to a weaker U.S. dollar. Results for fiscal 2010 included a gain of $405,900 from the sale of the Sam Houston bourbon brand and inventory. Fiscal 2010 results also include a gain on exchange of notes payable of $270,275 as compared to a $4.2 million gain on exchange of notes payable in fiscal 2009.