NEW YORK, May 19, 2016 /PRNewswire/ -- Castle Brands Inc.
(NYSE MKT: ROX), a developer and international marketer of premium
and super-premium branded spirits, today announced, after an
initial review of its financial performance for fiscal 2016,
preliminary, unaudited financial results for the fiscal year ended
March 31, 2016. All fiscal 2016
figures in this release are approximate due to the preliminary
nature of the announcement. Actual results may differ materially
from these estimates once the financial closing procedures and
final adjustments for fiscal 2016 are completed. Castle Brands
anticipates releasing its complete financial results in
June 2016.
Preliminary operating highlights for the fiscal year ended
March 31, 2016:
- Castle Brands had strong growth, with net sales of
approximately $72.2 million in fiscal
2016, an increase of approximately 25% over net sales of
$57.5 million in fiscal 2015.
- Total spirits case sales of approximately 426,000 in fiscal
2016 represented an increase of 8.4% from total spirits case sales
of approximately 393,000 in fiscal 2015, driven primarily by
increased whiskey and rum sales.
- Shipments of Jefferson's
Bourbon increased 45% to approximately 61,000 cases in fiscal 2016,
as compared to approximately 42,000 cases in fiscal 2015.
- Shipments of Goslings Rums in the U.S. increased 8% to
approximately 135,000 cases in fiscal 2016, as compared to
approximately 125,000 cases in fiscal 2015.
- Shipments of Goslings Stormy Ginger Beer increased 56% to
approximately 1,115,000 cases in fiscal 2016, as compared to
approximately 715,000 cases in fiscal 2015.
- Based on the preliminary revenues, Castle Brands currently
expects EBITDA, as adjusted, for fiscal 2016 to be in the range of
$3.3 to $3.6 million, as compared to
EBITDA, as adjusted, of $1.1 million
in fiscal 2015.
"Fiscal 2016 was a strong year for Castle Brands with record net
revenues and case sales led by substantial growth of Jefferson's Bourbons, Goslings Rums and
Goslings Stormy Ginger Beer. This allowed us to decrease net loss
and significantly increase EBITDA, as adjusted for fiscal 2016,"
stated Richard J. Lampen, President
and Chief Executive Officer of Castle Brands.
Table 1 below sets forth preliminary, unaudited case sales by
category.
Non-GAAP Financial Measures
Within the information above, Castle Brands provides information
regarding EBITDA, as adjusted, which is not a recognized term under
GAAP (Generally Accepted Accounting Principles) and does not
purport to be an alternative to income (loss) from operations or
net income (loss) as a measure of operating performance. Earnings
before interest, taxes, depreciation and amortization, or EBITDA,
adjusted for allowances for doubtful accounts and obsolete
inventory, stock-based compensation expense, other (income)
expense, net, income from equity investment in
non-consolidated affiliate, foreign exchange loss and net income
attributable to noncontrolling interests is a key metric the
Company uses in evaluating its financial performance on a
consistent basis across various periods. EBITDA, as adjusted, is
considered a non-GAAP financial measure as defined by Regulation G
promulgated by the SEC under the Securities Act of 1933, as
amended. Due to the significance of non-cash and non-recurring
items, EBITDA, as adjusted, enables the Company's Board of
Directors and management to monitor and evaluate the business on a
consistent basis. The Company uses EBITDA, as adjusted, as a
primary measure, among others, to analyze and evaluate financial
and strategic planning decisions regarding future operating
investments and allocation of capital resources. The Company
believes that EBITDA, as adjusted, eliminates items that are not
indicative of its core operating performance or are based on
management's estimates, such as allowance accounts, are due to
changes in valuation, such as the effects of changes in foreign
exchange, or do not involve a cash outlay, such as stock-based
compensation expense. EBITDA, as adjusted, should be considered in
addition to, rather than as a substitute for, income from
operations, net income, income before provision for income taxes
and cash flows from operating activities. A reconciliation of
preliminary, unaudited income before provision for income taxes to
EBITDA, as adjusted, is presented below in Table 2.
About Castle Brands
Castle Brands is a developer and international marketer of
premium and super-premium branded spirits including: Goslings
Rum®, Jefferson's®, Jefferson's Presidential SelectTM,
Jefferson's Reserve®
and Jefferson's Ocean Aged at
Sea® Bourbon, Jefferson's Chef's Collaboration and
Jefferson's The Manhattan: Barrel Finished Cocktail,
Jefferson's® Rye
Whiskey, Knappogue Castle Whiskey®, Knappogue Twin Wood,
Knappogue Castle 1951, 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.
Forward Looking Statements
The preliminary financial information included in this press
release, which constitute forward looking statements, may differ
from actual results. Actual results remain subject to the
completion of management's and the audit committee's final review,
as well as the year-end audit by the Company's independent
registered public accountants. During the course of the preparation
of the financial statements and related notes and the Company's
year-end audit, additional items that would require material
adjustments to the preliminary financial information included in
this press release may be identified. This preliminary information
reflects management's estimates based solely upon information
available as of the date hereof and is not a comprehensive
statement of the Company's financial results for the 2016 fiscal
year. The information presented herein should not be considered a
substitute for the full audited financial statements for the fiscal
year ended March 31,
2016.
This press release includes statements of the Company's
expectations, intentions, plans and beliefs that constitute
"forward looking statements" within the meaning of Section 27A of
the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934 and are intended to come within the safe
harbor protection provided by those sections. These statements,
which involve risks and uncertainties, relate to the discussion of
the Company's business strategies and the Company's expectations
concerning future operations, margins, sales, new products and
brands, potential joint ventures, potential acquisitions, expenses,
profitability, liquidity and capital resources and to analyses and
other information that are based on forecasts of future results and
estimates of amounts not yet determinable. You can identify these
and other forward-looking statements by the use of such words as
"may," "will," "should," "expects," "intends," "plans,"
"anticipates," "believes," "thinks," "estimates," "seeks,"
"predicts," "could," "projects," "preliminary," "potential" and
other similar terms and phrases, including references to
assumptions. These forward looking statements are made based on
expectations and beliefs concerning future events affecting the
Company and are subject to uncertainties, risks and factors
relating to the Company's operations and business environments, all
of which are difficult to predict and many of which are beyond the
Company's control, that could cause the Company's actual results to
differ materially from those matters expressed or implied by these
forward looking statements. These risks include the Company's
history of losses and expectation of further losses, the Company's
ability to expand the Company's operations in both new and existing
markets, the Company's ability to develop or acquire new brands,
the Company's relationships with distributors, the success of the
Company's marketing activities, the effect of competition in the
Company's industry and economic and political conditions generally,
including the current economic environment and markets. More
information about these and other factors are described under the
caption "Risk Factors" in Castle Brands' Annual Report on Form 10-K
for the year ended March 31, 2015, as
amended, and other reports the Company files with the Securities
and Exchange Commission. When considering these forward
looking statements, you should keep in mind the cautionary
statements in this press release and the reports the Company files
with the Securities and Exchange Commission. New risks and
uncertainties arise from time to time, and the Company cannot
predict those events or how they may affect the Company. The
Company assumes no obligation to update any forward looking
statements after the date of this press release as a result of new
information, future events or developments, except as required by
the federal securities laws.
Castle Brands Inc.
Investor Relations, 646-356-0200
info@castlebrandsinc.com
www.castlebrandsinc.com
TABLE
1
|
|
The following table
provides preliminary and unaudited information regarding the
Company's spirits case sales for the periods presented based on
nine-liter equivalent cases, which is a standard spirits industry
metric (table excludes related non-alcoholic beverage
products):
|
|
|
|
Year ended March
31,
|
|
|
|
2016
|
|
|
2015
|
|
Cases
|
|
|
|
|
|
|
|
|
United
States
|
|
|
340,782
|
|
|
|
310,106
|
|
International
|
|
|
85,558
|
|
|
|
82,632
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
426,340
|
|
|
|
392,738
|
|
|
|
|
|
|
|
|
|
|
Rum
|
|
|
180,698
|
|
|
|
171,189
|
|
Whiskey
|
|
|
109,990
|
|
|
|
84,713
|
|
Liqueur
|
|
|
91,010
|
|
|
|
89,369
|
|
Vodka
|
|
|
43,608
|
|
|
|
46,347
|
|
Tequila
|
|
|
1,034
|
|
|
|
1,106
|
|
Other
spirits
|
|
|
—
|
|
|
|
14
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
426,340
|
|
|
|
392,738
|
|
|
|
|
|
|
|
|
|
|
Percentage of
Cases
|
|
|
|
|
|
|
|
|
United
States
|
|
|
79.9
|
%
|
|
|
79.0
|
%
|
International
|
|
|
20.1
|
%
|
|
|
21.0
|
%
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
100.0
|
%
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
Rum
|
|
|
42.4
|
%
|
|
|
43.6
|
%
|
Whiskey
|
|
|
25.8
|
%
|
|
|
21.6
|
%
|
Liqueur
|
|
|
21.4
|
%
|
|
|
22.7
|
%
|
Vodka
|
|
|
10.2
|
%
|
|
|
11.8
|
%
|
Tequila
|
|
|
0.2
|
%
|
|
|
0.3
|
%
|
Other
spirits
|
|
|
—
|
%
|
|
|
0.0
|
%
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
100.0
|
%
|
|
|
100.0
|
%
|
|
|
The following table
provides preliminary and unaudited information regarding the
Company's case sales of related non-alcoholic beverage products,
which primarily consists of Gosling's Stormy Ginger Beer, for the
periods presented:
|
|
|
|
Year ended March
31,
|
|
|
|
2016
|
|
|
2015
|
|
Cases
|
|
|
|
|
|
|
|
|
United
States
|
|
|
1,070,173
|
|
|
|
682,190
|
|
International
|
|
|
45,101
|
|
|
|
33,232
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
1,115,274
|
|
|
|
715,422
|
|
|
|
|
|
|
|
|
|
|
United
States
|
|
|
96.0
|
%
|
|
|
95.4
|
%
|
International
|
|
|
4.0
|
%
|
|
|
4.6
|
%
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
100.0
|
%
|
|
|
100.0
|
%
|
TABLE
2
|
|
|
|
|
|
CASTLE BRANDS INC.
AND SUBSIDIARIES
|
|
|
Reconciliation of
preliminary loss before provision for income taxes to EBITDA, as
adjusted
(in
thousands)
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
Year
ended
|
|
|
|
|
March
31,
|
|
|
|
|
2016
|
|
|
2015
|
|
|
Loss before provision
for income taxes
|
|
$
|
(250) –
(550)
|
|
|
$
|
(2,195)
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
|
1,089
|
|
|
|
1,129
|
|
|
Depreciation and
amortization
|
|
|
940
|
|
|
|
908
|
|
|
Allowance for doubtful
accounts
|
|
|
61
|
|
|
|
236
|
|
|
Allowance for obsolete
inventory
|
|
|
200
|
|
|
|
281
|
|
|
Stock-based
compensation expense
|
|
|
1,371
|
|
|
|
788
|
|
|
Other expense
(income), net
|
|
|
1
|
|
|
|
(17)
|
|
|
Income from equity
investments in non-consolidated affiliate
|
|
|
(19)
|
|
|
|
--
|
|
|
Foreign exchange
loss
|
|
|
191
|
|
|
|
4
|
|
|
EBITDA, as
adjusted
|
|
$
|
3,584 –
3,284
|
|
|
$
|
1,134
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/castle-brands-announces-preliminary-fiscal-2016-results-300271390.html
SOURCE Castle Brands Inc.