NEW YORK, June 14, 2016 /PRNewswire/ -- Castle Brands Inc. (NYSE-MKT: ROX), a developer and international marketer of premium and super-premium branded spirits, today reported financial results for the quarter and year ended March 31, 2016.

Operating highlights for the fiscal year ended March 31, 2016:


    --  Net sales increased 25.7% to $72.2 million for fiscal 2016, as compared
        to $57.5 million in the prior fiscal year.
    --  Total gross profit increased 32.4% to $28.6 million, as compared to
        $21.6 million for the prior fiscal year.
    --  EBITDA, as adjusted, improved by 215.3% to $3.6 million, as compared to
        $1.1 million in fiscal 2015.
    --  Whiskey revenues increased 35.8% from the prior year due to continued
        strong performance of Jefferson's bourbons and Knappogue and Clontarf
        Irish whiskeys.
    --  Goslings Rum revenue increased 10.9% from the prior year due to strong
        sales in both the U.S. and international markets.
    --  Goslings Stormy Ginger Beer case sales increased 55.9% to approximately
        1,115,000 cases from approximately 715,000 in the prior year.
    --  The Company increased its reserves of aged bourbon and entered into two
        long-term new-fill agreements to augment its supplies of aged bourbon
        for its Jefferson's brand.
    --  The Company introduced new, upgraded packaging for its Goslings rums and
        Knappogue Castle Irish whiskeys.

"This was an outstanding year for Castle Brands. Continued strong growth of our more profitable brands, such as Jefferson's Bourbon, Goslings Rum and our Irish Whiskeys, resulted in substantial revenue growth and even greater growth in gross profit. It also drove improved margins, decreased G&A as a percent of revenue, significantly reduced net loss and increased EBITDA, as adjusted. We expect that these growth trends and improving financial performance will continue," stated Richard J. Lampen, President and Chief Executive Officer of Castle Brands.

"Jefferson's is now one of the top five selling premium small batch bourbons, Goslings Black Seal is now one of the top ten selling premium imported rums and Goslings Stormy Ginger Beer is now the largest selling premium ginger beer in the U.S.," Mr. Lampen added.

"We used our aged bourbon reserves to support increased sales of Jefferson's and its brand extensions, such as Jefferson's Ocean Aged at Sea. We also continue to add innovative expressions to increase sales and enhance the Jefferson's brand. Our whiskey portfolio has also benefitted from additions to our Irish whiskey offerings and the initiation of a barrel program for Knappogue Castle Whiskey. We expect strong growth in whiskey sales to continue. Goslings' sponsorship of the 35(th) America's Cup Challenge continues to drive the visibility of Goslings rum and ginger beer," said John Glover, Chief Operating Officer of Castle Brands.

In the fourth quarter of fiscal 2016, the Company had net sales of $20.0 million, a 23.6% increase from net sales of $16.2 million in the comparable prior-year period. Net income attributable to common shareholders was $0.4 million, or $0.00 per basic and diluted share, in the fourth quarter of fiscal 2016, as compared to a loss of ($0.6) million, or ($0.00) per basic and diluted share, in the prior-year period.

EBITDA, as adjusted, for the fourth quarter of fiscal 2016 improved to $1.4 million as compared to $0.4 million for the comparable prior-year period.

The Company had net sales of $72.2 million for fiscal 2016, an increase of 25.7% from net sales of $57.5 million in fiscal 2015. This sales growth was driven by the overall growth of Jefferson's and Jefferson's Reserve, Clontarf Irish whiskey and Goslings Stormy Ginger Beer. Net loss attributable to common shareholders was ($2.5) million, or ($0.02) per basic and diluted share, in fiscal 2016. This compares to a net loss attributable to common shareholders of ($3.8) million, or ($0.02) per basic and diluted share, in fiscal 2015.

EBITDA, as adjusted, for fiscal 2016 improved to $3.6 million as compared to $1.1 million for the prior-year.

Non-GAAP Financial Measures

Within the information above, Castle Brands provides information regarding EBITDA, as adjusted, which is not a recognized term under GAAP (Generally Accepted Accounting Principles) and does not purport to be an alternative to income (loss) from operations or net income (loss) as a measure of operating performance. Earnings before interest, taxes, depreciation and amortization, or EBITDA, adjusted for allowances for doubtful accounts and obsolete inventory, stock-based compensation expense, other (income) expense, net, loss from equity investment in non-consolidated affiliate, foreign exchange (gain) loss, net change in fair value of warrant liability, net income attributable to noncontrolling interests and dividend to preferred shareholders is a key metric the Company uses in evaluating its financial performance on a consistent basis across various periods. EBITDA, as adjusted, is considered a non-GAAP financial measure as defined by Regulation G promulgated by the SEC under the Securities Act of 1933, as amended. Due to the significance of non-cash and non-recurring items, EBITDA, as adjusted, enables the Company's Board of Directors and management to monitor and evaluate the business on a consistent basis. The Company uses EBITDA, as adjusted, as a primary measure, among others, to analyze and evaluate financial and strategic planning decisions regarding future operating investments and allocation of capital resources. The Company believes that EBITDA, as adjusted, eliminates items that are not indicative of its core operating performance or are based on management's estimates, such as allowance accounts, are due to changes in valuation, such as the effects of changes in foreign exchange or fair value of warrant liability, or do not involve a cash outlay, such as stock-based compensation expense. EBITDA, as adjusted, should be considered in addition to, rather than as a substitute for, income from operations, net income and cash flows from operating activities. A reconciliation of net loss attributable to common shareholders to EBITDA, as adjusted, is presented below.

About Castle Brands

Castle Brands is a developer and international marketer of premium and super-premium beverage alcohol brands including: Jefferson's(®), Jefferson's Presidential Select(TM), Jefferson's Reserve(®) and Ocean Aged at Sea Bourbon , Jefferson's Wine Finish Collection and Jefferson's Wood Expiriments, Goslings Rum(®), Knappogue Castle Whiskey(®), Clontarf(®) Irish Whiskey, Pallini(®) Limoncello, Boru(®) Vodka and Brady's(®) Irish Cream. Additional information concerning the Company is available on the Company's website, www.castlebrandsinc.com.

Forward Looking Statements

This press release includes statements of our expectations, intentions, plans and beliefs that constitute "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 and are intended to come within the safe harbor protection provided by those sections. These statements, which involve risks and uncertainties, relate to the discussion of our business strategies and our expectations concerning future operations, margins, sales, new products and brands, potential joint ventures, potential acquisitions, expenses, profitability, liquidity and capital resources and to analyses and other information that are based on forecasts of future results and estimates of amounts not yet determinable. You can identify these and other forward-looking statements by the use of such words as "may," "will," "should," "expects," "intends," "plans," "anticipates," "believes," "thinks," "estimates," "seeks," "predicts," "could," "projects," "potential" and other similar terms and phrases, including references to assumptions. These forward looking statements are made based on expectations and beliefs concerning future events affecting us and are subject to uncertainties, risks and factors relating to our operations and business environments, all of which are difficult to predict and many of which are beyond our control, that could cause our actual results to differ materially from those matters expressed or implied by these forward looking statements. These risks include our history of losses and expectation of further losses, our ability to expand our operations in both new and existing markets, our ability to develop or acquire new brands, our relationships with distributors, the success of our marketing activities, the effect of competition in our industry and economic and political conditions generally, including the current economic environment and markets. More information about these and other factors are described under the caption "Risk Factors" in Castle Brands' Annual Report on Form 10-K for the year ended March 31, 2016 and other reports we file with the Securities and Exchange Commission. When considering these forward looking statements, you should keep in mind the cautionary statements in this press release and the reports we file with the Securities and Exchange Commission. New risks and uncertainties arise from time to time, and we cannot predict those events or how they may affect us. We assume no obligation to update any forward looking statements after the date of this press release as a result of new information, future events or developments, except as required by the federal securities laws.


                                   CASTLE BRANDS INC. AND SUBSIDIARIES

                             Condensed Consolidated Statements of Operations


                                                              Three Months Ended March           Twelve Months Ended March
                                                                  31, (unaudited)                          31,

                                                                   2016             2015             2016             2015
                                                                                    ----                             ----

    Sales, net*                                             $19,963,408      $16,157,004      $72,220,368      $57,457,421

    Cost of sales*                                           11,795,649       10,009,402       43,666,798       35,884,632
                                                             ----------       ----------       ----------       ----------


    Gross profit                                              8,167,759        6,147,602       28,553,570       21,572,789
                                                              ---------        ---------       ----------       ----------


    Selling expense                                           5,310,887        4,388,705       19,222,659       15,254,818

    General and administrative expense                        1,877,059        1,944,023        7,385,851        6,488,336

    Depreciation and amortization                               242,938          237,917          939,513          907,540
                                                                -------          -------          -------          -------


    Income (loss) from operations                               736,875        (423,043)       1,005,547      (1,077,905)
                                                                -------         --------        ---------       ----------


    Other (expense) income, net                                   (445)           (196)           (666)          16,602

    Income from equity investment in
     non-consolidated affiliate                                   9,654               --          18,667               --

    Foreign exchange (loss) gain                               (59,654)         203,015        (190,867)         (4,564)

    Interest expense, net                                     (302,062)       (284,731)     (1,088,539)     (1,129,047)
                                                               --------         --------       ----------       ----------


    Income (loss) before provision for
     income taxes                                               384,368        (504,955)       (255,858)     (2,194,914)

    Income tax benefit (expense), net                            37,038        (597,113)     (1,450,848)     (1,278,999)
                                                                 ------         --------       ----------       ----------


    Net income (loss)                                           421,406      (1,102,068)     (1,706,706)     (3,473,913)

    Net (loss) income attributable to
     noncontrolling interests                                     4,862          469,666        (809,662)       (325,829)
                                                                  -----          -------         --------         --------


    Net income (loss) attributable to
     common shareholders                                       $426,268       $(632,402)    $(2,516,368)    $(3,799,742)
                                                               --------        ---------      -----------      -----------


    Net income (loss) per common share,
     basic, common shareholders                                    0.00           (0.00)          (0.02)          (0.02)
                                                                   ====            =====            =====            =====



    Net income (loss) per common share,
     diluted, common shareholders                                  0.00           (0.00)          (0.02)          (0.02)
                                                                   ====            =====            =====            =====


    Weighted average shares used in
     computation, basic, attributable
     to common shareholders                                 160,167,121      156,882,587      159,380,223      155,456,341
                                                            ===========      ===========      ===========      ===========


    Weighted average shares used in
     computation, diluted, attributable
     to common shareholders                                 167,331,808      156,882,587      159,380,223      155,456,341
                                                            ===========      ===========      ===========      ===========



    *Sales, net and Cost of sales include excise taxes of $7,451,569 and $6,754,453 for the years ended March 31, 2016 and 2015, respectively.



                            CASTLE BRANDS INC. AND SUBSIDIARIES

    Reconciliation of net loss attributable to common shareholders to EBITDA, as adjusted

                                        (Unaudited)


                                                    Three months ended            Twelve months ended

                                                        March 31,                      March 31,
                                                      ---------                   ---------

                                                        2016          2015            2016            2015
                                                        ----          ----            ----            ----

    Net
     income
     (loss)
     attributable
     to
     common
     shareholders                                   $426,271    $(632,402)   $(2,516,368)   $(3,799,742)
                                                    --------     ---------     -----------     -----------

    Adjustments:

     Interest
     expense,
     net                                             302,062       284,731       1,088,539       1,129,047

    Income
     tax
     (benefit)
     expense,
     net                                            (37,038)      597,113       1,450,848       1,278,999

     Depreciation
     and
     amortization                                    242,938       237,917         939,513         907,540
                                                     -------       -------         -------         -------

    EBITDA
     income
     (loss)                                          934,233       487,359         962,532       (484,156)
                                                     -------       -------         -------        --------

     Allowance
     for
     doubtful
     accounts                                          9,000       159,000          61,000         236,000

     Allowance
     for
     obsolete
     inventory                                       100,000       281,000         200,000         281,000

    Stock-
     based
     compensation
     expense                                         334,143       180,893       1,370,556         787,710

    Other
     expense
     (income),
     net                                                 445           196             666        (16,602)

    Income
     from
     equity
     investment
     in
     non-
     consolidated
     affiliate                                       (9,654)           --       (18,667)             --

     Foreign
     exchange
     loss
     (gain)                                           59,650     (203,015)        190,867           4,564

    Net
     (loss)
     income
     attributable
     to
     noncontrolling
     interests                                       (4,862)    (469,666)        809,662         325,829
                                                                               -------         -------

     EBITDA,
     as
     adjusted                                     $1,422,955      $435,767      $3,576,616      $1,134,345
                                                  ==========      ========      ==========      ==========

Castle Brands Inc.
Investor Relations, 646-356-0200
info@castlebrandsinc.com
www.castlebrandsinc.com

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SOURCE Castle Brands Inc.