RUM Todhunter Intl

Fourth graph, sixth line, dated Aug. 15, 2005 should read: ... with net sales increasing 29.8% and 30.2% over last... (sted ...with net sales increasing 32.7% and 30.6% over last...). The corrected release reads: CRUZAN INTERNATIONAL, INC. ANNOUNCES FINANCIAL RESULTS FOR THIRD QUARTER AND NINE MONTHS ENDED JUNE 30, 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." 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. -0- *T CRUZAN INTERNATIONAL, INC. Statements of Income Statement of Income as a % of Three Months Net Sales ------------------------- ------------- Periods ended 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 6,740,718 5,791,734 ============ ============ Shares outstanding at end of period 6,747,306 6,338,519 ============ ============ *T -0- *T CRUZAN INTERNATIONAL, INC. Statements of Income Statement of Income as a % of Nine Months Net Sales ----------------------- ------------- Periods ended 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 6,543,898 5,737,336 Shares outstanding at end of period 6,747,306 6,338,519 *T -0- *T CRUZAN INTERNATIONAL, INC. Condensed Consolidated Balance Sheets Balance Sheet as a % of Total Assets --------------- June 30, Sept. 30, June 30, Sept. 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% ============ =========== ====== ====== *T