EX-20.1 2 a05-9388_1ex20d1.htm EX-20.1

EXHIBIT 20.1

 

222 Lakeview Avenue, Suite 1500, West Palm Beach, FL  33401

 

NEWS RELEASE

 

CRUZAN INTERNATIONAL, INC. ANNOUNCES FINANCIAL RESULTS

FOR SECOND QUARTER AND SIX MONTHS ENDED MARCH 31, 2005

 

WEST PALM BEACH, FLORIDA – May 18, 2005 – Cruzan International, Inc. (AMEX: RUM), producer and distributor of the Cruzan line of rums from the Virgin Islands and a leading distiller of rum and brandy, and importer and marketer of premium branded spirits, today reported financial results for its second quarter and six months ended March 31, 2005.

 

Net sales for fiscal 2005’s six-month period were $49,703,827, compared with $44,481,495 reported for fiscal 2004’s second quarter.  Gross profit was $16,930,617, compared to $15,905,993 in the same period last year, and six-month net income was $78,306, or $0.01 per diluted share, compared with net income of $1,969,814 or $0.35 per diluted share, one year ago.

 

Net sales for fiscal 2005’s second quarter were $25,511,634, compared with $22,039,843 reported for fiscal 2004’s second quarter.  Gross profit was $8,855,625, compared to $8,329,364 in the same period last year, and second quarter net loss was $70,784, or $0.01 per diluted share, compared with net income of $1,118,530 or $0.20 per diluted share, one year ago.

 

Commenting on the results, Jay S. Maltby, Chairman and Chief Executive Officer said, “Once again, I am pleased to announce another period of double digit growth for our Cruzan brand, with net sales increasing 34.7% and 30.5% over last year’s second quarter and six-month period, respectively.  We continue to see excellent sales growth due to our continuing investment in building the Cruzan brand.”

 

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Mr. Maltby continued, “Sales in our bulk alcohol and vinegar and cooking wine segments have improved, although we are experiencing pressure on margins as we continue to realize increased energy and raw material costs and resistance to price increases from customers in these business segments.  We have completed the most recent round of cost reductions in our bottling operations during the second quarter and, while sales in this segment have declined again, we expect to see improvement in the bottom line of our bottling operations in future quarters.”

 

Cruzan International, Inc. is a major supplier of rum, brandy and wine to the beverage alcohol industry.  The Company also produces ultra-premium single-barrel aged rums and tropical rums, vinegar and other alcohol-related products.

 

Statements contained in this press release, other than historical facts, are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934.  Cruzan intends that such forward-looking statements shall be subject to the safe harbors created thereby.  These statements involve various risks and uncertainties, including without limitation those contained in the section entitled “Risks that May Affect Future Results” in Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Cruzan’s Annual Report on Form 10-K for the fiscal year ended September 30, 2004.  As a result, future results may differ materially from the expected results represented by the forward looking-statements contained in this press release.

 

Contact:

Ezra Shashoua, Executive Vice President & Chief Financial Officer

 

William Viggiano, Vice President & Controller

 

561-655-8977

 

 

—Financial Results Follow—

 

2


 

CRUZAN INTERNATIONAL, INC.

Statements of Income

 

Periods ended
March 31,

 

Three Months

 

Statement of Income
as a % of
Net Sales

 

2005

 

2004

 

2005

 

2004

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

25,511,634

 

$

22,039,843

 

100.0

%

100.0

%

Cost of sales

 

16,656,009

 

13,710,479

 

65.3

%

62.2

%

 

 

 

 

 

 

 

 

 

 

Gross profit

 

8,855,625

 

8,329,364

 

34.7

%

37.8

%

Selling, general and administrative

 

8,852,881

 

6,939,238

 

34.7

%

31.5

%

 

 

 

 

 

 

 

 

 

 

Operating income

 

2,744

 

1,390,126

 

0.0

%

6.3

%

Interest expense

 

(771,673

)

(709,435

)

(3.0

)%

(3.2

)%

Other income, net

 

205,172

 

388,175

 

0.8

%

1.8

%

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

(563,757

)

1,068,866

 

(2.2

)%

4.8

%

Income tax benefit

 

492,973

 

49,664

 

1.9

%

0.2

%

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

(70,784

)

$

1,118,530

 

(0.3

)%

5.1

%

 

 

 

 

 

 

 

 

 

 

Earnings (loss) per common share:

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.01

)

$

0.20

 

 

 

 

 

Diluted

 

$

(0.01

)

$

0.20

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common shares and equivalents outstanding

 

 

 

 

 

 

 

 

 

Basic

 

6,338,519

 

5,617,591

 

 

 

 

 

Diluted

 

6,338,519

 

5,722,369

 

 

 

 

 

Shares outstanding at end of period

 

6,338,519

 

5,624,234

 

 

 

 

 

 

3


 

Periods ended
March 31,

 

Six Months

 

Statement of Income
as a % of
Net Sales

 

2005

 

2004

 

2005

 

2004

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

49,703,827

 

$

44,481,495

 

100.0

%

100.0

%

Cost of sales

 

32,773,210

 

28,575,502

 

65.9

%

64.2

%

 

 

 

 

 

 

 

 

 

 

Gross profit

 

16,930,617

 

15,905,993

 

34.1

%

35.8

%

Selling, general and Administrative

 

17,158,891

 

13,630,445

 

34.5

%

30.6

%

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

(228,274

)

2,275,548

 

(0.4

)%

5.1

%

Interest expense

 

(1,364,341

)

(1,406,418

)

(2.7

)%

(3.2

)%

Other income, net

 

414,589

 

1,003,425

 

0.8

%

2.3

%

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

(1,178,026

)

1,872,555

 

(2.3

)%

4.2

%

Income tax benefit

 

$

1,256,332

 

97,259

 

2.5

%

0.2

%

 

 

 

 

 

 

 

 

 

 

Net income

 

$

78,306

 

$

1,969,814

 

0.2

%

4.4

%

 

 

 

 

 

 

 

 

 

 

Earnings per common share:

 

 

 

 

 

 

 

 

 

Basic

 

$

0.01

 

$

0.35

 

 

 

 

 

Diluted

 

$

0.01

 

$

0.35

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common shares and equivalents outstanding

 

 

 

 

 

 

 

 

 

Basic

 

6,338,519

 

5,598,122

 

 

 

 

 

Diluted

 

6,465,182

 

5,696,128

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares outstanding at end of period

 

6,338,519

 

5,624,234

 

 

 

 

 

 

4


 

CRUZAN INTERNATIONAL, INC.

Condensed Consolidated Balance Sheets

 

 

 

 

 

 

 

Balance Sheet
as a % of
Total Assets

 

 

 

March 31,

 

September 30,

 

March 31,

 

September 30,

 

 

 

2005

 

2004

 

2005

 

2004

 

 

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

 

 

 

 

Cash and short-term investments

 

$

4,478,911

 

$

3,833,828

 

3.4

%

3.0

%

Receivables

 

18,643,633

 

20,418,736

 

14.3

%

16.0

%

Inventories

 

32,660,181

 

29,162,496

 

25.0

%

22.8

%

Other current assets

 

7,988,709

 

7,736,190

 

6.1

%

6.1

%

Total current assets

 

63,771,434

 

61,151,250

 

48.9

%

47.8

%

 

 

 

 

 

 

 

 

 

 

PROPERTY AND EQUIPMENT, net

 

39,104,757

 

39,949,850

 

30.0

%

31.3

%

OTHER ASSETS

 

27,593,130

 

26,731,526

 

21.1

%

20.9

%

Total assets

 

$

130,469,321

 

$

127,832,626

 

100.00

%

100.0

%

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

 

 

 

 

Current maturities of long-term debt

 

$

34,500,000

 

$

4,000,000

 

26.4

%

3.1

%

Accounts payable

 

12,160,954

 

11,868,947

 

9.3

%

9.3

%

Other accrued expenses

 

2,601,494

 

4,726,253

 

2.0

%

3.7

%

Total current liabilities

 

49,262,448

 

20,595,200

 

37.8

%

16.1

%

 

 

 

 

 

 

 

 

 

 

LONG-TERM DEBT, less current maturities

 

93,312

 

25,674,240

 

0.1

%

20.1

%

 

 

 

 

 

 

 

 

 

 

DEFERRED INCOME TAXES

 

—

 

648,000

 

—

 

0.5

%

 

 

 

 

 

 

 

 

 

 

OTHER LIABILITIES

 

1,211,317

 

1,091,248

 

0.9

%

0.9

%

 

 

 

 

 

 

 

 

 

 

STOCKHOLDERS’ EQUITY

 

79,902,244

 

79,823,938

 

61.2

%

62.4

%

Total liabilities and stockholders’ equity

 

$

130,469,321

 

$

127,832,626

 

100.00

%

100.0

%

 

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