NEW YORK: Castle Brands Inc. (NYSE American: ROX), a developer and international marketer of premium and super-premium drinks brands, today reported financial results for the quarter and fiscal year ended March 31, 2019.
Net income attributable to common shareholders was $5.7 million for fiscal 2019, as compared to a net loss attributable to common shareholders of ($0.8) million for the prior fiscal year. While this is largely the result of an adjustment to deferred tax assets, it marks an important turning point for the company.
Continued growth of Jefferson's bourbons led to a 20.6% increase in case sales for fiscal 2019 over the prior fiscal year.
By making opportunistic purchases of aged bourbon and continuing its new fill programs, Castle Brands purchased an additional $14.3 million of bourbon in fiscal 2019 to support the continued growth of Jefferson's.
Goslings Stormy Ginger Beer, the best-selling premium ginger beer in America, case sales surpassed 2,000,000 cases in fiscal 2019, a 6.4% increase over the prior fiscal year.
"This was an outstanding year for Castle Brands. Continued growth of our more profitable brands, such as Jefferson's, Goslings and Knappogue Irish whiskey, resulted in continued growth in revenue and gross profit. Importantly, we reported positive net income per share for the fiscal year for the first time in the Company's history and had a record level of EBITDA, as adjusted. We have approximately $49.5 million in available net loss carryforwards. In the past, accounting practices did not ascribe any value to these NOLs because it was not clear that they would be used. Increasing profitability of our 80.1% owned Gosling Castle Partners subsidiary and revised forecasts for the Company's overall financial performance caused the NOLs to be valued at approximately $9.6 million, which resulted in a commensurate increase in net income. We expect the strong growth in Jefferson's to continue to drive our long-term trends of increasing sales and improving financial performance," stated Richard J. Lampen, President and Chief Executive Officer of Castle Brands.
"Jefferson's is a key brand for us and we are very excited about our current bourbon inventories. The combination of our new fill programs and opportunistic purchases of aged whiskey resulted in our having over 30,000 barrels at the end of the fiscal year, enough to make approximately 750,000 cases (9L) of Jefferson's. We used our aged bourbon reserves to support...