ROX Q highlights from the nitty gritty:
The O/S is 164,305,883 shares of $.01 par value common stock outstanding at August 7, 2017. The registrant had 163,122,883 shares of common stock outstanding at June 9, 2017.
The Company had 160,970,167 shares of $.01 par value common stock outstanding at February 7, 2017. ... Considering how many shares went to the Goslings family for the additional 20.1% ... and the Russell action ... my feeling on the increase is this is like nothing.
Here's the goslings deal summary:
In March 2017, the Company entered into a Stock Purchase Agreement (“Purchase Agreement”) with Gosling’s Limited (“GL”) and E. Malcolm B. Gosling (“Gosling,” and together with GL, the “Sellers”). Pursuant to the terms of the Purchase Agreement, the Company acquired an additional 201,000 shares (the “GCP Share Acquisition”) of the common stock of GCP, representing a 20.1% equity interest in GCP. GCP is a strategic global export venture between the Company and the Gosling family. As a result of the completion of the GCP Share Acquisition, the Company’s total equity interest in GCP increased to 80.1%. The consideration for the GCP Share Acquisition was (i) $20,000,000 in cash and (ii) 1,800,000 shares of common stock of the Company.
The net loss increased marginally just as ROX forecast. Increasing the inventory and expanding marketing efforts alone account for way more than the entire quarterly loss.
Those marketing efforts included being an America's Cup Sponsor and airing Goslings first ever TV commercials. Jefferson's commercials have also be shot and they're "in-the-can" already.
Selling expense. Selling expense increased 30.8% to $6.1 million for the three months ended June 30, 2017 from $4.6 million for the comparable prior-year period, primarily due to a $1.3 million increase in advertising, marketing and promotion expense related to the timing of certain sales and marketing programs, including Goslings’ sponsorship of the 35th America’s Cup, and a $0.2 million increase in shipping costs from increased sales volume. Selling expense as a percentage of net sales increased to 29.0% for the three months ended June 30, 2017 as compared to 27.6% for the comparable prior-year period due to increased expenses in support of sales growth.
Even as expenses rose, Gross profit continued to expand.
Gross profit increased 27.7% to $8.6 million for the three months ended June 30, 2017 from $6.7 million for the comparable prior-year period, while gross margin increased to 41.1% for the three months ended June 30, 2017 as compared to 40.1% for the comparable prior-year period. The increase in gross profit was primarily due to increased aggregate revenue in the current period.
Net Sales for the three months ended June 30, 2017 compared with three months ended June 30, 2016
The first mention of Arran whisky is in here too.
Net sales. Net sales increased 24.5% to $20.9 million for the three months ended June 30, 2017, as compared to $16.8 million for the comparable prior-year period, primarily due to U.S. sales growth of Jefferson’s bourbons, Clontarf Irish whiskey and Goslings Stormy Ginger Beer, partially offset by decreases in vodka sales. For the three months ended June 30, 2017, sales of our Goslings Stormy Ginger Beer increased 60.5% to $6.8 million. We anticipate continued growth of Goslings Stormy Ginger Beer in the near term due to the popularity of cocktails containing ginger beer, Goslings brand awareness and the distribution to large national and regional retailers and on-premise accounts, although there is no assurance that we will attain such results. The launch of Arran whiskies during the three months ended June 30, 2017 contributed $0.4 million in sales.
Selling expense for the Three months ended June 30, 2017 ... $6,056,199 ... 2016 ... $4,630,915
That is directly attributable to the cost of promotion in Supermarket Flyers and Walmart + Supermarket shelf space. And as noted above.
EBITDA, as adjusted for the Three months ended June 30, 2017 ... $798,849 ... 2016 ... $508,915
ROX continues to increase it's operational profitability.
Cash dropped $200K during the Q ... it's meaningless.
Accounts Receivable increased $700K
Inventory increased $.95 million to 30,758,422.
That's incredible in the face of rising sales.
In the three months ended June 30, 2017, the Company acquired $1,469,783 of aged bourbon whiskey in support of its anticipated near and mid-term needs.
That's fantastic.
This was a great Q
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