**EXHIBIT20.1**

 

 

222 LAKEVIEW AVENUE, SUITE 1500, WEST PALM BEACH, FL 33401

 

*NEWS RELEASE*

 

**TODHUNTER INTERNATIONAL, INC.,ANNOUNCES FINANCIAL RESULTS**

**FOR FIRST QUARTER ENDED DECEMBER 31,2003**

 

WEST PALM BEACH, FLORIDA—February 12, 2004—TodhunterInternational, Inc. (AMEX: THT), a leading distiller of rum and brandy, andimporter and marketer of premium branded spirits, today reported financialresults for its first quarter ended December 31, 2003.

 

Net sales for fiscal 2004’s first quarter were $22,441,652,an increase of 7.0% over $20,964,479 in the same period last year. Gross profitwas $7,133,476, an increase of 27.7% over $5,584,238 in the same period lastyear.  First-quarter net income was$851,284, or $0.15 per diluted share, compared with a net loss of $1,492,456,or a loss of ($0.27) per diluted share, one year ago.  During the prior year’s first quarter, the Company incurred a onetime charge of approximately $0.9 million, net of income taxes, relating to theretirement of the Company’s former Chairman and Chief Executive Officer, Afteradding back this charge for the prior period, the loss per diluted share was($0.10).

 

Commenting on the results, Jay S. Maltby, Chairman and ChiefExecutive Officer said, “We are pleased with the first quarter improvementversus last year in net sales, gross profit, operating income and netincome.  Our premium brands businesscontinues to grow at double digits and our core bulk alcohol, vinegar andcooking wine businesses are stable, providing good cash flow to support ourinvestment spending on our primary growth opportunity, the award winning CruzanEstate Rums and Cruzan Flavored Rums. Despite increased competition in theflavored rum category, we expect that with our continued focus on Cruzan, andan increased marketing budget, Cruzan will once again achieve double digitgrowth in fiscal 2004.”

 

The Chairman also noted that, “Our bottling operations volumehas improved somewhat, with losses from this business declining from lastyear.  We are currently consolidatingour bottling operations to increase efficiencies and reduce overhead and expectthis business to return to profitability during the fourth quarter of fiscal2004.”

 

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Todhunter International, Inc., is a major supplier of rum,brandy and wine to the beverage alcohol industry. TheCompany also produces ultra-premium single-barrel aged rums and tropical rums,vinegar and other alcohol-related products. Todhunter produces and distributesthe Cruzan line of rums from the Virgin Islands.

 

Statements contained in this press release, other thanhistorical facts, are “forward-looking statements” within the meaning ofSection 27A of the Securities Act of 1933 and Section 21E of the SecuritiesExchange Act of 1934. Todhunter intends that such forward-looking statementsshall be subject to the safe harbors created thereby. These statements involvevarious risks and uncertainties, including without limitation those containedin the section entitled “Forward-Looking Statements” in Todhunter’s AnnualReport on Form 10-K for the fiscal year ended September 30, 2003. As a result,future results may differ materially from the expected results represented bythe forward-looking statements contained in this press release.

 
| Contact:  Ezra Shashoua, Executive Vice President and Chief Financial Officer |
|-------------------------------------------------------------------------------|
|                                                                          | William J.  Viggiano, Controller |
|                                                                          | (561)  655-8977 |

 

*—Financial Results Follow—*

 

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TODHUNTER INTERNATIONAL, INC.

Statements of Income

 
|                                       |   |             |   |             |   | **Statement of Income  as a % of Net Sales** |   |
|--------------------------------------------|--------|------------------|--------|------------------|--------|----------------------------------------------|--------|
| **Periods ended**                          |   | **Three Months** |   | **Three Months** |   |
| **December 31,**                           |   | **2003**         |   | **2002**         |   | **2003**                                     |   | **2002** |   |
|                                       |   |             |   |             |   |                                         |   |   |   |
| Net  sales                                 |   | 22,441,652       |   | 20,964,479       |   | 100.0                                        | %      | 100.0 | % |
| Cost  of sales                             |   | 15,308,176       |   | 15,380,241       |   | 68.2                                         | %      | 73.4 | % |
|                                       |   |             |   |             |   |                                         |   |   |   |
| Gross  profit                              |   | 7,133,476        |   | 5,584,238        |   | 31.8                                         | %      | 26.6 | % |
| Selling,  general and Administrative       |   | 6,248,054        |   | 5,508,973        |   | 27.8                                         | %      | 26.3 | % |
|                                       |   |             |   |             |   |                                         |   |   |   |
| Operating  income                          |   | 885,422          |   | 75,265           |   | 3.9                                          | %      | 0.4 | % |
| Interest  expense                          |   | (696,983         | )      | (724,903         | )      | -3.1                                         | %      | -3.5 | % |
| Other  income (expense), net               |   | 615,250          |   | (1,171,081       | )      | 2.7                                          | %      | -5.6 | % |
|                                       |   |             |   |             |   |                                         |   |   |   |
| Income  (loss) before income taxes         |   | 803,689          |   | (1,820,719       | )      | 3.6                                          | %      | -8.7 | % |
| Income  tax benefit                        |   | 47,595           |   | 328,263          |   | 0.2                                          | %      | 1.6 | % |
|                                       |   |             |   |             |   |                                         |   |   |   |
| Net  income (loss)                         |   | 851,284          |   | (1,492,456       | )      | 3.8                                          | %      | -7.1 | % |
|                                       |   |             |   |             |   |                                         |   |   |   |
| Earnings  (loss) per common share:         |   |             |   |             |   |                                         |   |   |   |
| Basic                                      |   | $                | 0.15   |             | $      | (0.27                                        | )      |   |   |   |   |
| Diluted                                    |   | $                | 0.15   |             | $      | (0.27                                        | )      |   |   |   |   |
|                                       |   |             |   |             |   |                                         |   |   |   |
| Common  shares and equivalents outstanding |   |             |   |             |   |                                         |   |   |   |
| Basic                                      |   | 5,596,174        |   | 5,571,125        |   |                                         |   |   |   |
| Diluted                                    |   | 5,679,016        |   | 5,571,125        |   |                                         |   |   |   |
| Shares  outstanding at end of period       |   | 5,604,734        |   | 5,570,234        |   |                                         |   |   |   |

 

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TODHUNTER INTERNATIONAL, INC.

Condensed Consolidated Balance Sheets

 
|                                             |   |                 |   |                  |   | **Balance Sheet  as a % of Total Assets** |   |
|--------------------------------------------------|--------|----------------------|--------|-----------------------|--------|-------------------------------------------|--------|
|                                             |   | **December 31,2003** |   | **September 30,2003** |   | **December 31,2003**                      |   | **September 30,2003** |   |
| ASSETS                                           |   |                 |   |                  |   |                                      |   |   |   |
| CURRENT  ASSETS                                  |   |                 |   |                  |   |                                      |   |   |   |
| Cash  and short-term investments                 |   | 20,717,630           |   | 16,737,621            |   | 14.83                                     | %      | 12.02 | % |
| Receivables                                      |   | 15,311,748           |   | 18,746,413            |   | 10.96                                     | %      | 13.46 | % |
| Inventories                                      |   | 28,556,598           |   | 28,664,895            |   | 20.44                                     | %      | 20.58 | % |
| Other  current assets                            |   | 7,185,273            |   | 6,767,759             |   | 5.14                                      | %      | 4.86 | % |
| Total  current assets                            |   | 71,771,249           |   | 70,916,688            |   | 51.37                                     | %      | 50.91 | % |
|                                             |   |                 |   |                  |   |                                      |   |   |   |
| PROPERTY  AND EQUIPMENT, net                     |   | 39,531,172           |   | 40,056,612            |   | 28.29                                     | %      | 28.76 | % |
| OTHER  ASSETS                                    |   | 28,421,468           |   | 28,325,773            |   | 20.34                                     | %      | 20.33 | % |
| Total  assets                                    |   | 139,723,889          |   | 139,299,073           |   | 100.00                                    | %      | 100.00 | % |
|                                             |   |                 |   |                  |   |                                      |   |   |   |
|                                             |   |                 |   |                  |   |                                      |   |   |   |
| LIABILITIES  AND STOCKHOLDERS’ EQUITY       |   |                 |   |                  |   |                                      |   |   |   |
| CURRENT LIABILITIES                              |   |                 |   |                  |   |                                      |   |   |   |
| Current  maturities of long-term debt            |   | 22,300,000           |   | 4,000,000             |   | 15.96                                     | %      | 2.87 | % |
| Accounts  payable                                |   | 9,168,453            |   | 6,288,431             |   | 6.56                                      | %      | 4.51 | % |
| Other  accrued expenses                          |   | 2,462,961            |   | 3,837,745             |   | 1.76                                      | %      | 2.76 | % |
| Total  current liabilities                       |   | 33,931,414           |   | 14,126,176            |   | 24.28                                     | %      | 10.14 | % |
|                                             |   |                 |   |                  |   |                                      |   |   |   |
| LONG-TERM  DEBT, less current maturities         |   | 27,288,750           |   | 47,315,617            |   | 19.53                                     | %      | 33.97 | % |
|                                             |   |                 |   |                  |   |                                      |   |   |   |
| DEFERRED  INCOME TAXES                           |   | 5,240,000            |   | 5,243,000             |   | 3.75                                      | %      | 3.76 | % |
|                                             |   |                 |   |                  |   |                                      |   |   |   |
| OTHER  LIABILITIES                               |   | 1,676,847            |   | 2,002,761             |   | 1.20                                      | %      | 1.44 | % |
|                                             |   |                 |   |                  |   |                                      |   |   |   |
| STOCKHOLDERS’  EQUITY                       |   | 71,586,878           |   | 70,611,519            |   | 51.23                                     | %      | 50.69 | % |
| Total  liabilities and stockholders’ equity |   | 139,723,889          |   | 139,299,073           |   | 100.00                                    | %      | 100.00 | % |

 

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