RUM Todhunter Intl

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 first quarter ended December 31, 2005. Net sales for fiscal 2006's first quarter were $28,446,504, compared with $24,192,193 reported for fiscal 2005's first quarter. Gross profit was $6,700,306, compared to $8,074,992 in the same period last year, and first quarter net loss was $3,162,442, or $0.47 per diluted share, compared with net income of $149,090 or $0.02 per diluted share, one year ago. Commenting on the results, Jay S. Maltby, Chief Executive Officer and President said, "In 2005 we had a change in majority ownership and are in the process of a merger transaction with affiliates of V&S Vin & Sprit AB (publ), the owners of Absolut Vodka." Mr. Maltby continued, "Sales of Cruzan Rum in our premium branded spirits segment were up only 1.9% due to one competitive supplier's aggressive wholesaler incentive program during the quarter and a reduction of our inventories at the wholesaler level. The premium branded spirits segment sustained larger operating losses than last year due to increased marketing spending. Operating income in our bulk alcohol segment declined approximately $1.8 million due to increased citrus alcohol raw material costs as a result of the effects of hurricanes on the Florida citrus crop in 2004 and 2005. The performance in our bottling segment improved due to the acquisition of a large new bottling contract and profits in our vinegar and cooking wine segment decreased slightly as a result of decreased sales." 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, 2005. 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 Operations Statement of Operations as a % of Three Months Net Sales -------------------------------------- Periods ended December 31, 2005 2004 2005 2004 -------------------------------------- Net sales $28,446,504 $24,192,193 100.0% 100.0% Cost of sales 21,746,198 16,117,201 76.4% 66.6% -------------------------------------- Gross profit 6,700,306 8,074,992 23.6% 33.4% Selling, general and administrative 10,281,002 8,306,010 36.1% 34.3% -------------------------------------- Operating loss (3,580,696) (231,018) -12.6% -1.0% Interest expense (853,728) (592,668) -3.0% -2.4% Other income, net 118,680 209,417 0.4% 0.9% -------------------------------------- Loss before income taxes (4,315,744) (614,269) -15.2% -2.5% Income tax benefit 1,153,302 763,359 4.1% 3.2% -------------------------------------- Net Income (loss) ($3,162,442) $149,090 -11.1% 0.6% ====================================== Earnings (loss) per common share: Basic ($0.47) $0.02 =================== Diluted ($0.47) $0.02 =================== Common shares and equivalents outstanding Basic 6,748,717 6,338,519 Diluted 6,748,717 6,458,198 Shares outstanding at end of period 6,748,056 6,338,519 *T -0- *T CRUZAN INTERNATIONAL, INC. Condensed Consolidated Balance Sheets Balance Sheet as a % of Total Assets ------------------- Dec. 31, Sept. 30, Dec. 31, Sept. 30, 2005 2005 2005 2005 ---------------------------------------------- ASSETS CURRENT ASSETS Cash and short-term investments $5,031,175 $3,785,276 3.7% 2.8% Receivables 23,993,162 25,616,285 17.8% 19.2% Inventories 32,659,122 31,282,808 24.3% 23.4% Other current assets 5,149,746 4,885,161 3.8% 3.7% ---------------------------------------------- Total current assets 66,833,205 65,569,530 49.6% 49.0% ---------------------------------------------- PROPERTY AND EQUIPMENT, net 37,054,628 38,283,133 27.5% 28.6% OTHER ASSETS 30,734,222 29,896,465 22.8% 22.4% ---------------------------------------------- Total assets $134,622,055 $133,749,128 100.00% 100.0% ============================================== LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Current maturities of long-term debt $38,000,000 - 28.20% - Accounts payable 9,081,715 12,946,544 6.7% 9.7% Other accrued expenses 5,350,847 7,217,927 4.0% 5.4% ---------------------------------------------- Total current liabilities 52,432,562 20,164,471 38.9% 15.1% ---------------------------------------------- LONG-TERM DEBT, less current maturities - 28,600,000 - 21.4% DEFERRED INCOME TAXES - - - - OTHER LIABILITIES 1,577,026 1,332,379 1.2% 1.0% STOCKHOLDERS' EQUITY 80,612,467 83,652,278 59.9% 62.5% ---------------------------------------------- Total liabilities and stockholders' equity $134,622,055 $133,749,128 100.0% 100.0% ============================================== *T