Trade Resources Industry Views Castle's Net Sales Increased 14.8% to $13.4 Million

Castle's Net Sales Increased 14.8% to $13.4 Million

Castle Brands, a developer and international marketer of premium and super-premium branded spirits, today reported financial results for the three and six month periods ended 30 September 2014.

Operating highlights for the quarter ended September 30, 2014:

* Net sales increased 14.8% to $13.4 million as compared to $11.7 million for the comparable prior-year period.

* Continued strong growth of Jefferson's bourbons and Irish whiskey led to a 36.8% increase in whiskey revenues from the comparable prior-year period.

* Gosling's Stormy Ginger Beer case sales increased 72% to approximately 192,000 cases from approximately 112,000 from the comparable prior-year period.

* Net loss improved to ($0.9) million as compared to ($4.1) million in the comparable prior-year period.

* EBITDA, as adjusted, improved by 11.1% to $141,000 compared to a $127,000 in the comparable prior-year period.

* The Company's revolving credit facility capacity was increased from $8 million to $12 million, the maturity date was extended and the interest rate was reduced.

* Additional aged bourbon was purchased to support increased growth of Jefferson's

"In addition to strong continued organic growth, we improved our margins, decreased G&A as a percent of revenue, significantly reduced net loss and showed positive EBITDA, as adjusted. We expect these trends of substantial growth and improving financial performance to continue over the balance of the fiscal year. We also improved our capital structure by repaying all $1,250,000 of our Junior Notes (11% interest) with cash generated by the exercise of warrants and increased availability under our revolving credit facility (6.25% interest)," stated Richard J. Lampen, President and Chief Executive Officer of Castle Brands.

"In the second quarter, we used recently purchased aged bourbon reserves to support increased sales of Jefferson's and Jefferson's Reserve, expand our Jefferson's barrel program, accelerate our Jefferson's Ocean Aged at Sea program and position us to re-issue Jefferson's Chef's Collaboration. Just as we are expanding our offerings under the Jefferson's umbrella, we are also expanding our Irish whiskey offerings. We have initiated a Knappogue barrel program and plan to add additional offerings under our Knappogue and Clontarf labels. These initiatives, both with Jefferson and our Irish whiskeys, should provide additional growth for our whiskey sales," said John Glover, Chief Operating Officer of Castle Brands.

"Sales of Gosling's Stormy Ginger Beer increased 72% to 192,000 cases in the second quarter of fiscal 2015, an indication of the success of the Dark 'n Stormy cocktail, an important driver of Gosling's sales. Trailing twelve month sales of Stormy Ginger Beer were approximately 570,000 cases, which equates to over 13 million cans each prominently displaying the Gosling's logo. These ginger beer sales help build Gosling's visibility and prominence as a brand," Mr. Glover added.

In the second quarter of fiscal 2015, the Company had net sales of $13.4 million, a 14.8% increase from net sales of $11.7 million in the comparable prior-year period. Net loss was ($0.9) million in the second quarter of fiscal 2015 compared to a net loss of ($4.1) million in the comparable prior-year period. Net loss attributable to common shareholders was ($1.1) million, or ($0.01) per basic and diluted share, in the second quarter of fiscal 2015, as compared to ($4.6) million, or ($0.04) per basic and diluted share, in the prior-year period.

EBITDA, as adjusted, for the second quarter of fiscal 2015 improved to $141,000 as compared to $127,000 for the comparable prior-year period.

For the six months ended September 30, 2014, the Company had net sales of $25.4 million, a 14.9% increase from net sales of $22.1 million in the comparable prior-year period. Net loss was ($2.1) million for the six months ended September 30, 2014, as compared to a net loss of ($5.2) million in the comparable prior-year period. Net loss attributable to common shareholders was ($2.6) million, or ($0.02) per basic and diluted share, for the six months ended September 30, 2014, as compared to ($6.1) million, or ($0.06) per basic and diluted share, in the prior-year period.

EBITDA, as adjusted, for the first six months of fiscal 2015 improved to $89,000 as compared to a loss of ($32,000) for the comparable prior-year period.

Source: http://www.drinks-business-review.com/news/castle-brands-announces-fiscal-2015-second-quarter-results-181114-4442450
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Castle Brands Announces Fiscal 2015 Second Quarter Results