Castle Brands Announces Fiscal 2017 Third Quarter Results
Gross Profit Increased 14.4% on Net Sales Increase of 6.4%
Driven by Continued Strong Growth of Jefferson's, Goslings, and Irish whiskey portfolios
NEW YORK, Feb. 9, 2017 /PRNewswire/ -- 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 months ended December 31, 2016.
Operating highlights for the quarter ended December 31, 2016:
Net sales increased 6.4% to $18.3 million for the third quarter of fiscal 2017, as compared to $17.2 million for the comparable prior-year period.
Total gross profit increased 14.4% to $7.7 million, as compared to $6.7 million for the comparable prior-year period.
Net income attributable to common shareholders of $0.4 million versus a loss of ($0.8) million for the comparable prior-year period.
EBITDA, as adjusted, improved by 132.1% to $1.6 million, as compared to $0.7 million in fiscal 2016.
Continued strong growth of Jefferson's bourbons and the Irish whiskies led to a 14.5% increase in whiskey revenues from the comparable prior-year period.
Goslings Stormy Ginger Beer case sales increased 42.9% to approximately 339,000 cases from approximately 237,000 in the comparable prior-year period.
In addition to continuing its new fill programs, the Company purchased an additional 1,000 barrels of aged bourbon to support the continued growth of Jefferson's.
The Company entered into five-year exclusive distribution agreement for The Arran Malt Single Malt Scotch Whisky and Robert Burns Single Malt Whisky and Blended Scotch Whisky in the US market.
"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, report net income 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.
"The combination of our new fill whiskey program, coupled with opportunistic purchases of aged whiskies, enables us to build our substantial reserves of aged bourbon to support continued strong growth of our Jefferson's brand. The third quarter saw the launch of the Ninth Voyage of our Jefferson's Ocean Aged at Sea® Bourbon, as well as the introduction of Jefferson's Reserve Old Rum Cask Finish and Jefferson's Reserve Pritchard Hill® Cabernet Cask Finish. We plan to expand our wine finishes program and introduce several other new Jefferson's expressions in the coming quarters. We also increased our Irish whiskey offerings and expanded our barrel program for Knappogue Castle Whiskey. We see the Isle of Arran Distillers' award-winning, premium brands as a good complement to our existing whiskies portfolio. We expect to continue to drive strong sales increases for our whiskey portfolio," stated John Glover, Chief Operating Officer of Castle Brands.
Goslings Stormy Ginger Beer sales for the 12 months ended December 31, 2016 exceeded 1.2 million cases, making Goslings Stormy Ginger Beer the best-selling premium ginger beer in America. The growing popularity of ginger beer cocktails, including Goslings' trademarked "Dark 'n Stormy"® cocktail, has been an important growth driver for the brand. 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 Nine Months Ended December 31, 2016
For the three months ended December 31, 2016, the Company had net sales of $18.3 million, a 6.4% increase from net sales of $17.2 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 income was $0.9 million for the three months ended December 31, 2016as compared to a net loss of ($0.6) million in the comparable prior-year period. Net income attributable to common shareholders was $0.4 million, or $0.00 per basic and diluted share, million for the three months ended December 31, 2016, as compared to ($0.8) million, or ($0.01) per basic and diluted share, in the prior-year period.
EBITDA, as adjusted, for the for the three months ended December 31, 2016 improved to $1.6 million as compared to $0.7 million for the comparable prior-year period.
For the nine months ended December 31, 2016, the Company had net sales of $54.7 million, a 4.7% increase from net sales of $52.3 million in the comparable prior-year period. Net loss was ($0.2) million for the nine months ended December 31, 2016, as compared to a net loss of ($2.1) million in the comparable prior-year period. Net loss attributable to common shareholders was ($1.0) million, or ($0.01) per basic and diluted share, for the nine months ended December 31, 2016, as compared to ($2.9) million, or ($0.02) per basic and diluted share, in the prior-year period.
EBITDA, as adjusted, for the nine months ended December 31, 2016 was $3.1 million and $2.2 million for the comparable prior-year period.
