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 and nine month periods ended December 31, 2011.
Operating highlights for the quarter ended December 31, 2011:
- Gross profit increased 17.8% to $3.2 million in the third quarter, compared to $2.7 million for the third quarter of 2011
- Loss from operations decreased 34.8% to ($0.8) million, compared to a loss of ($1.2) million for the third quarter of 2011
- EBITDA, as adjusted, improved by 49.2% to a loss of ($0.5) million, compared to a loss of ($1.0) million for the third quarter of 2011
- Rum sales increased 14.8% from the third quarter of 2011 to $2.6 million; led by the continued growth of Gosling’s rums
- Excluding wine sales, third quarter revenue increased 6.7% to $8.6 million compared to $8.0 million for the third quarter of 2011.
“Castle Brands continued to deliver on the key elements of our plan. Case sales and revenues from our spirits brands were up strongly for the quarter and the year-to-date, well ahead of industry average. Cost containment continued to cause our operating margins to improve. As a result, cash consumed by operations, as measured by EBITDA, as adjusted, declined significantly,” stated Richard J. Lampen, President and Chief Executive Officer of Castle Brands. “Given these important trends, we feel that the equity we raised in 2011 and the working capital facility we put in place position us well for future growth."
“This is an exciting time for Castle Brands. We are particularly pleased with the increased penetration that Gosling’s Rums and Jefferson’s Bourbons continue to gain in key U.S. markets and we plan to boost the marketing programs, event sponsorships and promotions for these brands throughout the year. Furthermore, during the last nine months, Pallini Limoncello, Boru Vodka and our Irish whiskeys all achieved double digit year-on-year growth,” stated John Glover, Chief Operating Officer of Castle Brands. “During the current quarter, we introduced the Dark ‘n Stormy pre-mixed cocktail. We expect that this product will add even more momentum to the Gosling’s brand.”
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