Net sales for the quarter advanced nine percent to $23,721,773 compared with the $21,856,034 reported for 1999's third quarter. Gross margin was up 460 basis points to 33.6 from 29.0 percent for the year-ago period, resulting in a 26-percent increase in gross profit to $7,975,503 from $6,343,723. Earnings before interest, taxes, depreciation and amortization (EBITDA) improved 28 percent to $4,724,405 from $3,681,468 last year. Net income for the quarter advanced 14 percent to $1,319,451 from $1,155,132 a year ago; earnings per diluted share, reflecting an increase of approximately 14 percent in shares outstanding, were unchanged from last year's $0.24.
For the nine-month period, net sales improved to $67,641,235 versus $57,428,039 in the comparable period last year, an increase of 18 percent. Gross profit for the nine-month period advanced 22 percent to $21,758,890 from $17,806,417 for the year-ago period, as the gross profit margin increased by 120 basis points from 31.0 percent to 32.2 percent. EBITDA improved 22 percent to $13,060,748 versus $10,680,859 for the comparable period last year. During the period, the company recorded a one-time, special charge of $0.21 per share, net of income taxes, in connection with the refinancing of long-term debt. Excluding this extraordinary item, net income rose 17 percent to $3,939,538 from the $3,371,259 reported for last year's nine-month period. Earnings per share, despite the larger share base, rose to $0.71 per diluted share versus $0.69 a year ago.
The company reported that its premium branded spirits business is experiencing substantial growth. Sales for the segment increased 34 percent to $11,265,930 from $8,425,716 for last year's comparable nine-month period. Leading the segment were sales of the company's proprietary Cruzan Flavored Rums and Porfidio Tequila, which the company imports. These brands posted revenue increases of 39 percent and 45 percent, respectively, for the period.
A. Kenneth Pincourt Jr., chairman and chief executive officer of Todhunter, said: "We are especially pleased with the results of our premium brands, which are gaining acceptance in the marketplace. Additionally, our core brandy, rum, wine and vinegar businesses continue to perform well."
Todhunter International, Inc. is a major distiller and supplier of brandy and rum to the beverage alcohol industry. The company also produces wine, vinegar and other alcohol-related products, and a portfolio of handcrafted spirits ranging from the world's first ultra-premium single-barrel aged rums and tropical rums to the finest artisan tequilas. Todhunter produces and distributes the Cruzan line of rums from the Virgin Islands and is the importer of Porfidio tequila.
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 Exchange Act of 1934. Todhunter 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 "Forward-Looking Statements" in Todhunter's Annual Report on Form 10-K for the fiscal year ended September 30, 1999. As a result, future results may differ materially from the expected results represented by the forward-looking statements contained in this press release.
--Financial results follow--
TODHUNTER INTERNATIONAL
Statements of Income Statement of income
as a % of
Three months Net Sales
Periods ended
June 30, 2000 1999 2000 1999
Net sales $23,721,773 $21,856,034 100.0% 100.0%
Cost of sales 15,746,270 15,512,311 66.4% 71.0%
Gross profit 7,975,503 6,343,723 33.6% 29.0%
Selling, general
and administrative 4,927,597 3,939,081 20.8% 18.0%
Operating income 3,047,906 2,404,642 12.8% 11.0%
Interest expense (1,409,449) (914,507) -5.9% -4.2%
Other income, net 174,502 136,982 0.7% 0.6%
Income before
income taxes 1,812,959 1,627,117 7.6% 7.4%
Income tax expense (493,508) (471,985) -2.1% -2.2%
Net income $1,319,451 $1,155,132 5.6% 5.3%
Earnings per
common share:
Basic $0.24 $0.24
Diluted $0.24 $0.24
Common shares
and equivalents
outstanding
Basic 5,513,734 4,850,739
Diluted 5,547,280 4,866,699
Shares outstanding
at end of period 5,513,734 4,850,514
TODHUNTER INTERNATIONAL
Statements of Income Statement of Income
as a % of
Nine Months
Net Sales
Periods ended
June 30, 2000 1999 2000 1999
Net sales $67,641,235 $57,428,039 100.0% 100.0%
Cost of sales 45,882,345 39,621,622 67.8% 69.0%
Gross profit 21,758,890 17,806,417 32.2% 31.0%
Selling,
general and
administrative 13,670,306 11,285,112 20.2% 19.7%
Operating income 8,088,584 6,521,305 12.0% 11.4%
Interest expense (3,632,789) (2,773,531) -5.4% -4.8%
Other income, net 758,091 793,990 1.1% 1.4%
Income before
income taxes and
extraordinary
item 5,213,886 4,541,764 7.7% 7.9%
Income tax expense (1,274,348) (1,170,505) -1.9% -2.0%
Income before
extraordinary item 3,939,538 3,371,259 5.8% 5.9%
Extraordinary
item - early
extinguishment of
debt, net of
income taxes
of $382,075 (1,168,790) --- -1.7% ---
Net income $2,770,748 $3,371,259 4.1% 5.9%
Earnings per
common share
- basic:
Income before
extraordinary item $0.71 $0.69
Extraordinary item (0.21) ---
Net Income $0.50 $0.69
Earnings per
common share
- diluted:
Income before
extraordinary item $0.71 $0.69
Extraordinary item (0.21) ---
Net Income $0.50 $0.69
Common shares
and equivalents
outstanding
Basic 5,513,734 4,883,598
Diluted 5,559,602 4,898,384
Shares outstanding
at end of period 5,513,734 4,850,514
TODHUNTER INTERNATIONAL, INC.
Condensed Consolidated Balance Sheets
Balance Sheet
as a % of
Total Assets
June 30, September 30, June 30, September 30
2000 1999 2000 1999
(Unaudited)
ASSETS
CURRENT ASSETS
Cash and short-term
investments $9,326,764 $7,812,683 7.27% 8.04%
Receivables 17,360,383 14,477,799 13.54% 14.90%
Inventories 26,228,831 23,011,883 20.45% 23.68%
Other current
assets 5,566,529 4,268,468 4.34% 4.39%
Total current
assets 58,482,507 49,570,833 45.61% 51.02%
PROPERTY AND
EQUIPMENT, net 40,251,002 39,774,028 31.39% 40.93%
OTHER ASSETS 29,500,890 7,822,385 23.01% 8.05%
Total assets $128,234,399 $97,167,246 100.00% 100.00%
LIABILITIES AND
STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Current maturities
of long-term debt $8,000,000 $6,000,000 6.24% 6.17%
Accounts payable 6,240,379 4,417,313 4.87% 4.55%
Other accrued
expenses 1,874,100 2,908,004 1.46% 2.99%
Total current
liabilities 16,114,479 13,325,317 12.57% 13.71%
LONG-TERM DEBT,
less current
maturities 52,836,470 28,000,000 41.20% 28.82%
DEFERRED INCOME
TAXES 4,132,750 4,345,000 3.22% 4.47%
OTHER LIABILITIES 1,186,858 303,835 0.93% 0.31%
STOCKHOLDERS'
EQUITY 53,963,842 51,193,094 42.08% 52.69%
Total liabilities
and stockholders'
equity $128,234,399 $97,167,246 100.00% 100.00%
