Castle Brands Inc. (NYSE Amex: ROX), a developer and international marketer of premium and super-premium branded spirits and wine, today reported financial results for the three months ended June 30, 2010.
In the fiscal 2011 first quarter, the Company had net sales of $6.1 million, a 4.4% increase from the prior year period. Net loss from operations was $1.7 million for the three months ended June 30, 2010, an improvement of 11.3% from $2.0 million for the comparable fiscal 2010 period. The Company had a net loss attributable to common shareholders of $1.7 million, or $(0.02) per basic and diluted share, in the fiscal 2011 first quarter, compared to a net loss attributable to common stockholders of $0.6 million or $(0.01) per basic and diluted share, in the comparable fiscal 2010 period. The fiscal 2011 first quarter results included a foreign exchange gain of $58,000 due to a stronger U.S. dollar as compared to a gain of $1.0 million in the prior year period. The fiscal 2010 first quarter results included a pre-tax, non-cash gain of $270,000 from the exchange of an outstanding 3% note payable for common shares.
U.S. case sales were 45,842 nine liter cases in the fiscal 2011 first quarter as compared to 47,878 cases in the prior year period. International case sales were 12,968 cases in the fiscal 2011 first quarter as compared to 13,791 cases in the prior year period. Total case sales for the fiscal 2011 first quarter were 58,810 cases as compared to 61,669 cases in the prior year period. First quarter 2011 case sales included sales of the Company's Jefferson's Reserve Presidential Select Bourbon (launched August 2009) and Betts & Scholl wines (acquired September 2009).
Richard J. Lampen, President and Chief Executive Officer of Castle Brands, said, "We remain focused on growing our premium brands and supporting our agency relationships while controlling costs, and I am pleased with the progress we are making, Our June 2010 repurchase of approximately 3.8 million shares of Castle Brands common stock and our new 2.5 million share stock repurchase program demonstrate our confidence in the Company’s future."