**EXHIBIT 20.1**

 

 

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

 

*NEWS RELEASE*

 

**TODHUNTER INTERNATIONAL, INC., ANNOUNCES FINANCIAL RESULTSFOR FISCAL 2004 SECOND QUARTER AND SIX MONTHS ENDEDMARCH 31, 2004**

 

WEST PALM BEACH, FLORIDA—May 14, 2004—TodhunterInternational, Inc. (AMEX: THT), producer and distributor of the Cruzan line ofrums from the Virgin Islands and a leading distiller of rum, brandy, andimporter and marketer of premium branded spirits, today reported financialresults for its second quarter and six months ended March 31, 2004.

 

Net sales for 2004’s six-month period were $44,481,495, anincrease of 4.0% over $42,789,224 in the same period last year. Gross profitwas $14,979,841, an increase of 11.9% over $13,388,377 in the same period lastyear.  Six-month period net income was$1,969,814, or $0.35 per diluted share, compared with a net loss of $64,390, ora loss of $0.01 per diluted share, one year ago.  During the prior fiscal year’s first quarter, the Companyincurred a one-time charge of approximately $947,000, net of income taxes,relating to the retirement of the Company’s former Chairman and Chief ExecutiveOfficer.  After adding back this charge,the earnings per diluted share were $0.16 in the six-month period ended March 31,2003.

 

Net sales for fiscal 2004’s second quarter were $22,039,843,an increase of 1.0% over $21,824,745 in the same period last year. Gross profitwas $7,846,365, an increase of 0.5% over $7,804,139 in the same period lastyear.  Second-quarter net income was$1,118,530, or $0.20 per diluted share, compared with net income of $1,428,066,or $0.25 per diluted share, one year ago.

 

Commenting on the results, Jay S. Maltby, Chairman and ChiefExecutive Officer said, “Our premium brands business continues its stronggrowth, with net sales increasing by 32 percent, and despite increasingcompetition in the flavored rum category, sales of our award winning CruzanFlavored Rums continue to grow at double digits.  We are spending substantially more dollars than in previousperiods to promote Cruzan, and while this is having a near term negative effecton earnings, it will, in the medium to long-term, provide consistent earningsgrowth.”  The

 

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Chairman also noted, “Our core bulk alcohol, vinegar andcooking wine businesses are providing steady earnings and good cash flow tosupport our increased investment spending on Cruzan.  Although we continue to consolidate our bottling operations andreduce overhead, bottling operations volume has not met expectations, whichcaused a loss in bottling operations. We are placing a renewed emphasis on the sales effort in this segment ofour business and believe we will see improvement in future quarters.”

 

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.

 

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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TODHUNTERINTERNATIONAL, INC.

Statements ofIncome

 
|                                      |   |              |       |              |   | **Statement  of Income  as a % of Net Sales** |   |
|-------------------------------------------|--------|-------------------|------------|-------------------|--------|-----------------------------------------------|--------|
|                                      |   | **Three  Months** |       | **Three  Months** |   |
| **Periods ended March 31,**               |   | **2004**          |       | **2003**          |   | **2004**                                      |   | **2003** |   |
|                                      |   |              |       |              |   |                                          |   |   |   |
| Net sales                                 |   | $                 | 22,039,843 |              | $      | 21,824,745                                    |   | 100.0 | % | 100.0 | % |
| Cost of sales                             |   | 14,193,478        |       | 14,020,606        |   | 64.4                                          | %      | 64.2 | % |
|                                      |   |              |       |              |   |                                          |   |   |   |
| Gross profit                              |   | 7,846,365         |       | 7,804,139         |   | 35.6                                          | %      | 35.8 | % |
| Selling, general and Administrative       |   | 6,456,239         |       | 5,578,249         |   | 29.3                                          | %      | 25.6 | % |
|                                      |   |              |       |              |   |                                          |   |   |   |
| Operating income                          |   | 1,390,126         |       | 2,225,890         |   | 6.3                                           | %      | 10.2 | % |
| Interest expense                          |   | (709,435          | )          | (873,530          | )      | -3.2                                          | %      | -4.0 | % |
| Other income, net                         |   | 388,175           |       | 304,585           |   | 1.8                                           | %      | 1.4 | % |
|                                      |   |              |       |              |   |                                          |   |   |   |
| Income before income taxes                |   | 1,068,866         |       | 1,656,945         |   | 4.8                                           | %      | 7.6 | % |
| Income tax (expense) benefit              |   | 49,664            |       | (228,879          | )      | 0.2                                           | %      | -1.0 | % |
|                                      |   |              |       |              |   |                                          |   |   |   |
| Net income                                |   | $                 | 1,118,530  |              | $      | 1,428,066                                     |   | 5.1 | % | 6.5 | % |
|                                      |   |              |       |              |   |                                          |   |   |   |
| Earnings per common share:                |   |              |       |              |   |                                          |   |   |   |
| Basic                                     |   | $                 | 0.20       |              | $      | 0.26                                          |   |   |   |   |   |
| Diluted                                   |   | $                 | 0.20       |              | $      | 0.25                                          |   |   |   |   |   |
|                                      |   |              |       |              |   |                                          |   |   |   |
| Common shares and equivalents outstanding |   |              |       |              |   |                                          |   |   |   |
| Basic                                     |   | 5,617,591         |       | 5,572,367         |   |                                          |   |   |   |
| Diluted                                   |   | 5,722,369         |       | 5,607,374         |   |                                          |   |   |   |
| Shares outstanding at end of period       |   | 5,624,234         |       | 5,574,234         |   |                                          |   |   |   |

 

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TODHUNTER  INTERNATIONAL, INC.

Statements ofIncome

 
|                                      |   |           |       |           |   | **Statement  of Income  as a % of Net Sales** |   |
|-------------------------------------------|--------|----------------|------------|----------------|--------|-----------------------------------------------|--------|
|                                      |   | **Six Months** |       | **Six Months** |   |
| **Periods ended March 31,**               |   | **2004**       |       | **2003**       |   | **2004**                                      |   | **2003** |   |
|                                      |   |           |       |           |   |                                          |   |   |   |
|                                      |   |           |       |           |   |                                          |   |   |   |
| Net sales                                 |   | $              | 44,481,495 |           | $      | 42,789,224                                    |   | 100.0 | % | 100.0 | % |
| Cost of sales                             |   | 29,501,654     |       | 29,400,847     |   | 66.3                                          | %      | 68.7 | % |
|                                      |   |           |       |           |   |                                          |   |   |   |
| Gross profit                              |   | 14,979,841     |       | 13,388,377     |   | 33.7                                          | %      | 31.3 | % |
| Selling, general and administrative       |   | 12,704,293     |       | 11,087,222     |   | 28.6                                          | %      | 25.9 | % |
|                                      |   |           |       |           |   |                                          |   |   |   |
| Operating income                          |   | 2,275,548      |       | 2,301,155      |   | 5.1                                           | %      | 5.4 | % |
| Interest expense                          |   | (1,406,418     | )          | (1,598,433     | )      | -3.2                                          | %      | -3.7 | % |
| Other income (expense), net               |   | 1,003,425      |       | (866,496       | )      | 2.3                                           | %      | -2.0 | % |
|                                      |   |           |       |           |   |                                          |   |   |   |
| Income (loss) before income taxes         |   | 1,872,555      |       | (163,774       | )      | 4.2                                           | %      | -0.4 | % |
| Income tax benefit                        |   | 97,259         |       | 99,384         |   | 0.2                                           | %      | 0.2 | % |
|                                      |   |           |       |           |   |                                          |   |   |   |
| Net income (loss)                         |   | $              | 1,969,814  |           | $      | (64,390                                       | )      | 4.4 | % | -0.2 | % |
|                                      |   |           |       |           |   |                                          |   |   |   |
| Earnings(loss) per common share:          |   |           |       |           |   |                                          |   |   |   |
| Basic                                     |   | $              | 0.35       |           | $      | (0.01                                         | )      |   |   |   |   |
| Diluted                                   |   | $              | 0.35       |           | $      | (0.01                                         | )      |   |   |   |   |
|                                      |   |           |       |           |   |                                          |   |   |   |
| Common shares and equivalents outstanding |   |           |       |           |   |                                          |   |   |   |
| Basic                                     |   | 5,598,122      |       | 5,571,750      |   |                                          |   |   |   |
| Diluted                                   |   | 5,696,128      |       | 5,571,750      |   |                                          |   |   |   |
|                                      |   |           |       |           |   |                                          |   |   |   |
| Shares outstanding at end of period       |   | 5,624,234      |       | 5,574,234      |   |                                          |   |   |   |

 

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TODHUNTER  INTERNATIONAL, INC.

CondensedConsolidated Balance Sheets

 
|                                            |   |                |        |                     |   | **Balance  Sheet  as a % of Total Assets** |   |
|-------------------------------------------------|--------|---------------------|-------------|--------------------------|--------|--------------------------------------------|--------|
|                                            |   | **March 31,  2004** |        | **September  30,  2003** |   | **March 31,  2004**                        |   | **September  30,  2003** |   |
|                                            |   |                |        |                     |   |                                       |   |   |   |
| ASSETS                                          |   |                |        |                     |   |                                       |   |   |   |
| CURRENT ASSETS                                  |   |                |        |                     |   |                                       |   |   |   |
| Cash and short-term investments                 |   | $                   | 1,937,045   |                     | $      | 16,737,621                                 |   | 1.53 | % | 12.02 | % |
| Receivables                                     |   | 18,466,695          |        | 18,746,413               |   | 14.55                                      | %      | 13.46 | % |
| Inventories                                     |   | 32,449,462          |        | 28,664,895               |   | 25.57                                      | %      | 20.58 | % |
| Other current assets                            |   | 5,870,958           |        | 6,767,759                |   | 4.63                                       | %      | 4.86 | % |
| Total current assets                            |   | 58,724,160          |        | 70,916,688               |   | 46.28                                      | %      | 50.91 | % |
|                                            |   |                |        |                     |   |                                       |   |   |   |
| PROPERTY AND EQUIPMENT, net                     |   | 39,708,311          |        | 40,056,612               |   | 31.29                                      | %      | 28.76 | % |
| OTHER ASSETS                                    |   | 28,467,555          |        | 28,325,773               |   | 22.43                                      | %      | 20.33 | % |
| Total assets                                    |   | $                   | 126,900,026 |                     | $      | 139,299,073                                |   | 100.00 | % | 100.00 | % |
|                                            |   |                |        |                     |   |                                       |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ EQUITY       |   |                |        |                     |   |                                       |   |   |   |
| CURRENT LIABILITIES                             |   |                |        |                     |   |                                       |   |   |   |
| Current maturities of long-term debt            |   | $                   | 10,000,000  |                     | $      | 4,000,000                                  |   | 7.88 | % | 2.87 | % |
| Accounts payable                                |   | 9,687,222           |        | 6,288,431                |   | 7.63                                       | %      | 4.51 | % |
| Other accrued expenses                          |   | 1,943,560           |        | 3,837,745                |   | 1.53                                       | %      | 2.76 | % |
| Total current liabilities                       |   | 21,630,782          |        | 14,126,176               |   | 17.05                                      | %      | 10.14 | % |
|                                            |   |                |        |                     |   |                                       |   |   |   |
| LONG-TERM DEBT, less current maturities         |   | 26,210,390          |        | 47,315,617               |   | 20.65                                      | %      | 33.97 | % |
|                                            |   |                |        |                     |   |                                       |   |   |   |
| DEFERRED INCOME TAXES                           |   | 5,279,500           |        | 5,243,000                |   | 4.16                                       | %      | 3.76 | % |
|                                            |   |                |        |                     |   |                                       |   |   |   |
| OTHER LIABILITIES                               |   | 902,346             |        | 2,002,761                |   | 0.71                                       | %      | 1.44 | % |
|                                            |   |                |        |                     |   |                                       |   |   |   |
| STOCKHOLDERS’ EQUITY                       |   | 72,877,008          |        | 70,611,519               |   | 57.43                                      | %      | 50.69 | % |
| Total liabilities and stockholders’ equity |   | $                   | 126,900,026 |                     | $      | 139,299,073                                |   | 100.00 | % | 100.00 | % |

 

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