Castle Brands Inc. (NYSEMKT:ROX), a developer and international marketer of premium and super-premium branded spirits, today reported financial results for the three and six month periods ended September 30, 2016.
Operating highlights for the quarter ended September 30, 2016:
| • | Net sales increased 5.9% to $19.6 million for the second quarter of fiscal 2017, as compared to $18.5 million for the comparable prior-year period. |
| • | Total gross profit increased 9.5% to $7.7 million, as compared to $7.1 million for the comparable prior-year period. |
| • | Continued strong growth of Jefferson’s bourbons and the Irish whiskies led to a 19.2% increase in whiskey revenues from the comparable prior-year period. |
| • | In addition to continuing its new fill programs, the Company purchased an additional 1,800 barrels of aged bourbon to support the continued growth of Jefferson’s. |
| • | Goslings Stormy Ginger Beer case sales increased 10.8% to approximately 360,000 cases from approximately 325,000 in the comparable prior-year period. |
“Continued strong growth of our more profitable brands, such as Jefferson’s and our Irish whiskeys, resulted in solid revenue growth and even greater growth in gross profit. This allowed us to increase income from operations, reduce net loss and increase EBITDA, as adjusted. We expect these trends of increasing sales and improving financial performance to continue over the balance of the fiscal year and beyond,” stated Richard J. Lampen, President and Chief Executive Officer of Castle Brands.
“In the quarter, our additional purchases of aged bourbon reserves, coupled with the continuation of our two long-term new fill programs, put us in a solid position to support continued sales growth of our Jefferson’s bourbon portfolio. We plan to expand our wine finishes program and introduce several other new Jefferson’s expressions over the balance of the fiscal year. We also increased our Irish whiskey offerings and expanded our barrel program for Knappogue Castle Whiskey,” said John Glover, Chief Operating Officer of Castle Brands.
“The growing popularity of ginger beer cocktails, including Goslings’ trademarked “Dark ‘n Stormy”® cocktail, has been an important growth driver of Goslings “Stormy Ginger Beer.” Ginger beer sales for the 12 months ended September 30, 2016 exceeded 1.2 million cases, making “Stormy Ginger Beer” the best-selling premium ginger beer in America. We are also increasing the prominence of the Goslings brand through our sponsorship of the 35th America’s Cup. The America’s Cup has become an extreme sport and millions of viewers are following this very high-profile event. Europe and the United States hosted races in 2015 and 2016 and AC35 will culminate with the Challenger Playoffs and Finals in Bermuda in 2017. Goslings will have far more visibility and global reach than ever before with an enormous audience that goes well beyond the demographics of the sailing world,” Mr. Glover added.
For the Three and Six Months Ended September 30, 2016
In the second quarter of fiscal 2017, the Company had net sales of $19.6 million, a 5.9% increase from net sales of $18.5 million in the comparable prior-year period. This sales growth was primarily driven by the U.S. sales growth of Jefferson’s bourbons and Goslings Stormy Ginger Beer. Net loss was ($0.5) million in the second quarter of fiscal 2017 compared to a net loss of ($0.7) million in the comparable prior-year period. Net loss attributable to common shareholders was ($0.7) million, or ($0.00) per basic and diluted share, in the second quarter of fiscal 2017, as compared to ($1.0) million, or ($0.01) per basic and diluted share, in the prior-year period.
EBITDA, as adjusted, for the second quarter of fiscal 2017 improved to $1.0 million as compared to $0.9 million for the comparable prior-year period.
For the six months ended September 30, 2016, the Company had net sales of $36.4 million, a 3.8% increase from net sales of $35.0 million in the comparable prior-year period. Net loss was ($1.1) million for the six months ended September 30, 2016, as compared to a net loss of ($1.5) million in the comparable prior-year period. Net loss attributable to common shareholders was ($1.5) million, or ($0.01) per basic and diluted share, for the six months ended September 30, 2016, as compared to ($2.1) million, or ($0.01) per basic and diluted share, in the prior-year period.
EBITDA, as adjusted, for the six months ended September 30, 2016 was $1.5 million and $1.5 million for the comparable prior-year period.
About Castle Brands
Castle Brands is a developer and international marketer of premium and super-premium beverage alcohol brands including: Jefferson’s®, Jefferson’s Presidential SelectTM, Jefferson’s Reserve®, Jefferson’s Ocean Aged at Sea Bourbon, Jefferson’s Wine Finish Collection and Jefferson’s Wood Experiments, Goslings® Rums, Knappogue Castle Whiskey®, Clontarf® Irish Whiskey, Pallini® Limoncello, Boru®Vodka and Brady’s® Irish Cream. Additional information concerning the Company is available on the Company’s website, www.castlebrandsinc.com.
