**EXHIBIT20.1**

 

 

222 Lakeview Avenue, Suite 1500, West PalmBeach, FL  33401

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***NEWS RELEASE***

 

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

**FOR FIRST QUARTER ENDED DECEMBER 31, 2004**

 

WEST PALM BEACH, FLORIDA –February 11, 2005 – Todhunter International, Inc. (AMEX: THT), producer anddistributor of the Cruzan line of rums from the Virgin Islands and a leadingdistiller of rum and brandy, and importer and marketer of premium brandedspirits, today reported financial results for its first quarter ended December31, 2004.

 

Net sales for fiscal 2005’sfirst quarter were $24,192,193, compared with $22,441,652 reported for fiscal2004’s first quarter.  Gross profit was$8,074,992, compared to $7,576,629 in the same period last year, and firstquarter net income was $149,090, or $0.02 per diluted share, compared with netincome of $851,284 or $0.15 per diluted share, one year ago.

 

Commenting on the results, JayS. Maltby, Chairman and Chief Executive Officer said, “I am pleased to announcethat our Cruzan brand has had another quarter of double digit growth, with netsales increasing 25.4% over last year’s first quarter.  We are continuing our strategy of investingin the premium brands segment and capitalizing on the significant momentum ofthe Cruzan brand.”

 

Mr. Maltby continued, “Our bulkalcohol and vinegar and cooking wine segments rebounded this quarter from thefourth quarter of fiscal 2004, and while we saw some improvement in ourbottling operations sales, this segment is still performing belowexpectations.  In December 2004, wecompleted a consolidation of our bottling operations, closing all but onebottling line in our Lake Alfred, Florida bottling facility.  During January 2005, we further reduced theoperations in the Lake Alfred bottling facility to one shift, in a continuingeffort to reduce overhead and curtail losses. We expect to see improvement in our bottling operations in futurequarters.”

 

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Todhunter International, Inc.is a major supplier of rum, brandy and wine to the beverage alcoholindustry.  The Company also producesultra-premium single-barrel aged rums and tropical rums, vinegar and otheralcohol-related products.

 

Statements contained in thispress release, other than historical facts, are “forward-looking statements”within the meaning of Section 27A of the Securities Act of 1933 and Section 21Eof the Securities and Exchange Act of 1934. Todhunter intends that such forward-looking statements shall be subjectto the safe harbors created thereby. These statements involve various risks and uncertainties, includingwithout limitation those contained in the section entitled “Risks that MayAffect Future Results” in Item 7, “Management’s Discussion and Analysis ofFinancial Condition and Results of Operations” in Todhunter’s Annual Report onForm 10-K for the fiscal year ended September 30, 2004.  As a result, future results may differmaterially from the expected results represented by the forwardlooking-statements contained in this press release.

 

| Contact: |   | Ezra  Shashoua, Executive Vice President & Chief Financial Officer |
|----------|--------|------------------------------------------------------------------------|
|     |   |                                                                   |
|     |   | William  Viggiano, Controller                                          |
|     |   |                                                                   |
|     |   | 561-655-8977                                                           |

 

***--Financial Results Follow--***

 

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TODHUNTER  INTERNATIONAL, INC.

Statements of Income

 
| ** **                                | ** ** | **Three Months** | ** ** | **Statement of Income  as a% of  Net Sales** | ** ** |
|-------------------------------------------|------------|------------------|------------|----------------------------------------------|------------|
| **Periods ended  December 31,**           | ** ** | **2004**         | ** ** | **2003**                                     | ** ** | **2004** | ** ** | **2003** | ** ** |
|                                      |       |             |       |                                         |       |   |   |   |   |
| Net sales                                 |       | $                | 24,192,193 |                                         | $          | 22,441,652 |   | 100.00 | % | 100.00 | % |
| Cost of sales                             |       | 16,117,201       |       | 14,865,023                                   |       | 66.60 | % | 66.20 | % |
|                                      |       |             |       |                                         |       |   |   |   |   |
| Gross profit                              |       | 8,074,992        |       | 7,576,629                                    |       | 33.40 | % | 33.80 | % |
| Selling, general and administrative       |       | 8,306,010        |       | 6,691,207                                    |       | 34.30 | % | 29.80 | % |
|                                      |       |             |       |                                         |       |   |   |   |   |
| Operating income (loss)                   |       | (231,018         | )          | 885,422                                      |       | -1.00 | % | 3.90 | % |
| Interest expense                          |       | (592,668         | )          | (696,983                                     | )          | -2.40 | % | -3.10 | % |
| Other income, net                         |       | 209,417          |       | 615,250                                      |       | 0.90 | % | 2.70 | % |
|                                      |       |             |       |                                         |       |   |   |   |   |
| Income (loss) before income taxes         |       | (614,269         | )          | 803,689                                      |       | -2.50 | % | 3.60 | % |
| Income tax benefit                        |       | 763,359          |       | 47,595                                       |       | 3.20 | % | 0.20 | % |
|                                      |       |             |       |                                         |       |   |   |   |   |
| Net income                                |       | $                | 149,090    |                                         | $          | 851,284 |   | 0.60 | % | 3.80 | % |
|                                      |       |             |       |                                         |       |   |   |   |   |
| Earnings per common share:                |       |             |       |                                         |       |   |   |   |   |
| Basic                                     |       | $                | 0.02       |                                         | $          | 0.15 |   |   |   |   |   |
| Diluted                                   |       | $                | 0.02       |                                         | $          | 0.15 |   |   |   |   |   |
|                                      |       |             |       |                                         |       |   |   |   |   |
| Common shares and equivalents outstanding |       |             |       |                                         |       |   |   |   |   |
| Basic                                     |       | 6,338,519        |       | 5,596,174                                    |       |   |   |   |   |
| Diluted                                   |       | 6,458,198        |       | 5,679,016                                    |       |   |   |   |   |
| Shares outstanding at end of period       |       | 6,338,519        |       | 5,604,734                                    |       |   |   |   |   |

 

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TODHUNTER  INTERNATIONAL, INC.

Condensed Consolidated Balance Sheets

 
| ** **                                      | ** ** | ** **             | ** **  | ** **              | ** ** | **Balance Sheet  as a% of  Total Assets** | ** ** |
|-------------------------------------------------|------------|------------------------|-------------|-------------------------|------------|-------------------------------------------|------------|
| ** **                                      | ** ** | **December 31,  2004** | ** **  | **September 30,  2004** | ** ** | **December 31,  2004**                    | ** ** | **September 30,  2004** | ** ** |
|                                            |       |                   |        |                    |       |                                      |       |   |   |
| ASSETS                                          |       |                   |        |                    |       |                                      |       |   |   |
| CURRENT ASSETS                                  |       |                   |        |                    |       |                                      |       |   |   |
| Cash and short-term investments                 |       | $                      | 3,375,248   |                    | $          | 3,833,828                                 |       | 2.70 | % | 3.00 | % |
| Receivables                                     |       | 18,581,684             |        | 20,418,736              |       | 14.70                                     | %          | 16.00 | % |
| Inventories                                     |       | 30,428,606             |        | 29,162,496              |       | 24.00                                     | %          | 22.80 | % |
| Other current assets                            |       | 7,774,194              |        | 7,736,190               |       | 6.10                                      | %          | 6.10 | % |
| Total current assets                            |       | 60,159,732             |        | 61,151,250              |       | 47.50                                     | %          | 47.80 | % |
|                                            |       |                   |        |                    |       |                                      |       |   |   |
| PROPERTY AND EQUIPMENT, net                     |       | 39,370,273             |        | 39,949,850              |       | 31.10                                     | %          | 31.30 | % |
| OTHER ASSETS                                    |       | 27,017,771             |        | 26,731,526              |       | 21.30                                     | %          | 20.90 | % |
| Total assets                                    |       | $                      | 126,547,776 |                    | $          | 127,832,626                               |       | 100.00 | % | 100.00 | % |
|                                            |       |                   |        |                    |       |                                      |       |   |   |
| LIABILITIES AND STOCKHOLDERS’ EQUITY       |       |                   |        |                    |       |                                      |       |   |   |
| CURRENT LIABILITIES                             |       |                   |        |                    |       |                                      |       |   |   |
| Current maturities of long-term debt            |       | $                      | 4,000,000   |                    | $          | 4,000,000                                 |       | 3.20 | % | 3.10 | % |
| Accounts payable                                |       | 10,331,908             |        | 11,868,947              |       | 8.20                                      | %          | 9.30 | % |
| Other accrued expenses                          |       | 2,252,294              |        | 4,726,253               |       | 1.80                                      | %          | 3.70 | % |
| Total current liabilities                       |       | 16,584,202             |        | 20,595,200              |       | 13.10                                     | %          | 16.10 | % |
|                                            |       |                   |        |                    |       |                                      |       |   |   |
| LONG-TERM DEBT, less current maturities         |       | 28,726,619             |        | 25,674,240              |       | 22.70                                     | %          | 20.10 | % |
|                                            |       |                   |        |                    |       |                                      |       |   |   |
| DEFERRED INCOME TAXES                           |       | —                 |        | 648,000                 |       | —                                    |       | 0.50 | % |
|                                            |       |                   |        |                    |       |                                      |       |   |   |
| OTHER LIABILITIES                               |       | 1,263,927              |        | 1,091,248               |       | 1.00                                      | %          | 0.90 | % |
|                                            |       |                   |        |                    |       |                                      |       |   |   |
| STOCKHOLDERS’ EQUITY                       |       | 79,973,028             |        | 79,823,938              |       | 63.20                                     | %          | 62.40 | % |
| Total liabilities and stockholders’ equity |       | $                      | 126,547,776 |                    | $          | 127,832,626                               |       | 100.00 | % | 100.00 | % |

 

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