Castle Brands Inc. (NYSE MKT: ROX), a developer and international marketer of premium and super-premium branded spirits, today reported financial results for the three and nine month periods ended December 31, 2012.
Operating highlights for the quarter ended December 31, 2012:
- Net sales increased 21.8% to $10.6 million for the quarter ended December 31, 2012, as compared to $8.7 million for the comparable prior-year period
- Total case sales of beverage alcohol products increased 19.4% to 96,599 cases compared to 80,888 cases in the prior-year period
- Strong growth of the Jefferson’s bourbons and rye lead to a 66.4% increase in whiskey revenues from the prior-year period
- Gosling’s Black Seal Rum exceeded 100,000 cases sold in the U.S. for the 12 months ended December 31, 2012
- Gosling's Stormy Ginger Beer case sales increased 79.7% to 55,074 cases compared to 30,644 cases in the prior-year period
- EBITDA, as adjusted, improved by 78.6% to a loss of ($0.1) million, compared to a loss of ($0.5) million for the three months ended December 31, 2011
“Castle Brands continued to deliver on the key elements of our plan. Case sales and revenues from our spirits brands increased 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.
“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, our Irish portfolio, including our Irish whiskeys and Brady’s Irish Cream, achieved double digit year-over-year growth,” stated John Glover, Chief Operating Officer of Castle Brands. “During our fourth quarter, we will introduce Castello Mio, our new Sambuca, strengthening our liqueur portfolio.”