EX-20.1 2 a05-13205_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 THIRD QUARTER AND NINE MONTHS ENDED JUNE 30, 2005

 

WEST PALM BEACH, FLORIDA – August 15, 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 third quarter and nine months ended June 30, 2005.

 

Net sales for fiscal 2005’s third quarter were $27,792,244, compared with $25,485,359 reported for fiscal 2004’s third quarter.  Gross profit was $8,958,394, compared to $7,965,878 in the same period last year, and third quarter net loss was $256,368, or $0.04 per diluted share, compared with a net loss of $224,506 or $0.04 per diluted share, one year ago.

 

Net sales for fiscal 2005’s nine-month period were $77,496,071, compared with $69,966,854 reported for fiscal 2004’s nine-month period.  Gross profit was $25,889,011, compared to $23,871,871 in the same period last year, and nine-month net loss was $178,062, or $0.03 per diluted share, compared with net income of $1,745,308 or $0.30 per diluted share, one year ago.

 

Commenting on the results, Jay S. Maltby, Chairman and Chief Executive Officer said, “Our strong top-line sales and gross profit growth during the past nine months was primarily due to our focus on our growing premium brands business.  Once again, I am pleased to announce that sales of our award winning Cruzan Rums continue their strong growth, with net sales increasing 29.8% and 30.2% over last year’s third quarter and nine-month period, respectively.  Although operating income has declined in the nine-month period due to our continuing investment in building the Cruzan Rum brand, we saw operating income improve in the third quarter.”

 

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Mr. Maltby continued, “Sales in our bulk alcohol and vinegar and cooking wine segments have also improved, although we are still 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.  Sales in our bottling operations segment appear to have stabilized, and this, coupled with the full implementation of our bottling rationalization plan makes us believe that we will see improvement in operating income 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

 

Three Months

 

Statement of Income
as a% of
Net Sales

 

June 30,

 

2005

 

2004

 

2005

 

2004

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

27,792,244

 

$

25,485,359

 

100.0

%

100.0

%

Cost of sales

 

18,833,850

 

17,519,481

 

67.8

%

68.7

%

 

 

 

 

 

 

 

 

 

 

Gross profit

 

8,958,394

 

7,965,878

 

32.2

%

31.3

%

Selling, general and administrative

 

9,879,545

 

9,479,264

 

35.5

%

37.2

%

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

(921,151

)

(1,513,386

)

-3.3

%

-5.9

%

Interest expense

 

(645,876

)

(551,933

)

-2.3

%

-2.2

%

Other income, net

 

274,122

 

260,644

 

1.0

%

1.0

%

 

 

 

 

 

 

 

 

 

 

(Loss) before income taxes

 

(1,292,905

)

(1,804,675

)

-4.7

%

-7.1

%

Income tax benefit

 

1,036,538

 

1,580,169

 

3.7

%

6.2

%

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(256,368

)

$

(224,506

)

-0.9

%

-0.9

%

 

 

 

 

 

 

 

 

 

 

Loss per common share:

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.04

)

$

(0.04

)

 

 

 

 

Diluted

 

$

(0.04

)

$

(0.04

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common shares and equivalents outstanding

 

 

 

 

 

 

 

 

 

Basic

 

6,378,948

 

5,647,782

 

 

 

 

 

Diluted

 

6,378,948

 

5,647,782

 

 

 

 

 

Shares outstanding at end of period

 

6,747,306

 

6,338,519

 

 

 

 

 

 

3


 

Periods ended

 

Nine Months

 

Statement of Income
as a% of
Net Sales

 

June 30,

 

2005

 

2004

 

2005

 

2004

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

77,496,071

 

69,966,854

 

100.0

%

100.0

%

Cost of sales

 

51,607,060

 

46,094,983

 

66.6

%

65.9

%

 

 

 

 

 

 

 

 

 

 

Gross profit

 

25,889,011

 

23,871,871

 

33.4

%

34.1

%

Selling, general and administrative

 

27,038,436

 

23,109,709

 

34.9

%

33.0

%

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

(1,149,425

)

762,162

 

-1.5

%

1.1

%

Interest expense

 

(2,010,217

)

(1,958,351

)

-2.6

%

-2.8

%

Other income, net

 

688,711

 

1,264,069

 

0.9

%

1.8

%

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

(2,470,931

)

67,880

 

-3.2

%

0.1

%

Income tax benefit

 

2,292,870

 

1,677,428

 

3.0

%

2.4

%

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

(178,062

)

1,745,308

 

-0.2

%

2.5

%

 

 

 

 

 

 

 

 

 

 

Earnings (loss) per common share:

 

 

 

 

 

 

 

 

 

Basic

 

(0.03

)

0.31

 

 

 

 

 

Diluted

 

(0.03

)

0.30

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common shares and equivalents outstanding

 

 

 

 

 

 

 

 

 

Basic

 

6,351,995

 

5,620,427

 

 

 

 

 

Diluted

 

6,351,995

 

5,737,336

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares outstanding at end of period

 

6,747,306

 

6,338,519

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4


 

CRUZAN INTERNATIONAL, INC.

Condensed Consolidated Balance Sheets

 

 

 

 

 

 

 

Balance Sheet
as a% of
Total Assets

 

 

 

June 30,

 

September 30,

 

June 30,

 

September 30,

 

 

 

2005

 

2004

 

2005

 

2004

 

 

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

 

 

 

 

Cash and short-term investments

 

$

2,188,343

 

$

3,833,828

 

1.7

%

3.0

%

Receivables

 

25,012,866

 

20,418,736

 

19.0

%

16.0

%

Inventories

 

31,905,359

 

29,162,496

 

24.2

%

22.8

%

Other current assets

 

5,152,732

 

7,736,190

 

3.9

%

6.1

%

Total current assets

 

64,259,300

 

61,151,250

 

48.8

%

47.8

%

 

 

 

 

 

 

 

 

 

 

PROPERTY AND EQUIPMENT, net

 

38,754,727

 

39,949,850

 

29.4

%

31.3

%

OTHER ASSETS

 

28,625,774

 

26,731,526

 

21.7

%

20.9

%

Total assets

 

$

131,639,801

 

$

127,832,626

 

100.0

%

100.0

%

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

 

 

 

 

Current maturities of long-term debt

 

$

27,100,000

 

$

4,000,000

 

20.6

%

3.1

%

Accounts payable

 

14,212,839

 

11,868,947

 

10.8

%

9.3

%

Other accrued expenses

 

3,835,292

 

4,726,253

 

2.9

%

3.7

%

Total current liabilities

 

45,148,131

 

20,595,200

 

34.3

%

16.1

%

 

 

 

 

 

 

 

 

 

 

LONG-TERM DEBT, less current maturities

 

21,774

 

25,674,240

 

0.0

%

20.1

%

 

 

 

 

 

 

 

 

 

 

DEFERRED INCOME TAXES

 

—

 

648,000

 

—

 

0.5

%

 

 

 

 

 

 

 

 

 

 

OTHER LIABILITIES

 

1,285,598

 

1,091,248

 

1.0

%

0.9

%

 

 

 

 

 

 

 

 

 

 

STOCKHOLDERS’ EQUITY

 

85,184,298

 

79,823,938

 

64.7

%

62.4

%

Total liabilities and stockholders’ equity

 

$

131,639,801

 

$

127,832,626

 

100.0

%

100.0

%

 

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