Castle Brands Inc. (NYSE MKT: ROX), a developer and international marketer of premium and super-premium branded spirits and wine, today reported financial results for the quarter and year ended March 31, 2012.
Operating highlights for the fiscal year ended March 31, 2012:
- Net sales increased 10.9% to $35.5 million for the year ended March 31, 2012, as compared to $32.0 million for the comparable prior-year period
- U.S. beverage alcohol case volume increased 10% to 272,610 cases for the year ended March 31, 2012, as compared to 247,610 cases for the comparable prior-year period, primarily due to organic growth
- Rum sales increased 18.7% to $12.8 million for the year ended March 31, 2012, as compared to $10.8 million for the comparable prior-year period; due to the continued growth of Gosling’s rums
- Loss from operations improved 28.6% to ($3.9) million for the year ended March 31, 2012 from ($5.4) million for the comparable prior-year period
- EBITDA, as adjusted, improved 40% to a loss of ($2.4) million for the year ended March 31, 2012, as compared to a loss of ($4.0) million for the comparable prior-year period, primarily as a result of increased gross margin and lower selling expense.
“We are excited by the traction many of our brands are gaining in the U.S. market as a result of our targeted marketing efforts, especially Jefferson’s bourbons and Gosling’s rums. We have focused our efforts on these more profitable brands in 2012, which has allowed us to increase our gross margins and significantly improve our operating loss in 2012,” stated Richard J. Lampen, President and Chief Executive Officer of Castle Brands. “We are pleased to have entered into a term sheet to increase availability under our working capital facility from $5 million to $7 million, which will provide us with additional working capital as we move toward profitability. Castle Brands expects continued increased U.S. and international case sales through organic growth, product line extensions, potential acquisitions and distribution agreements. We intend to support this growth with our existing infrastructure, and anticipate our general and administrative expenses to remain relatively flat during this period."