Truett-Hurst, Inc. Reports Results for the Fiscal Year 2016 Ended June 30, 2016

Mittwoch, 21.09.2016 12:05 von

PR Newswire

HEALDSBURG, Calif., Sept. 21, 2016 /PRNewswire/ -- Truett-Hurst, Inc. (NASDAQ: THST), which operates an innovative and fast growing super-premium and ultra-premium wine sales, marketing and production company based in the acclaimed Dry Creek and Russian River Valleys of Sonoma County, California, reported results for the fiscal year 2016 which ended on June 30, 2016.

Truett-Hurst, Inc., www.truetthurstinc.com.

FY16 vs. FY15

For the fiscal year 2016, total net sales from continuing operations totaled $25.8 million, an increase of 19.1% compared to the same period in the prior year.  Consolidated gross margin from continuing operations was 32.1%, an increase of 2.3% over the prior year. 

Wholesale

  • Net Sales of $20.0 million (+19.1% or $3.2 million) (prior year impacted by $0.6 million of Paperboy related items)
  • Gross Margin of 22.8% (an increase of 2.7 margin points) (prior year impacted by $0.8 million of Paperboy related items and $0.6 million of California Winecraft related items)
  • Gross Profit of $4.6 million (+$1.2 million)

Direct to Consumer (DTC)

  • Net Sales of $5.8 million (+19.3% or $0.9 million)
  • Gross Margin of 64.6% (an increase of 1.1 margin points)
  • Gross Profit of $3.7 million (+$0.7 million)

Operating Expenses: 

Operating expenses for the fiscal year ended June 30, 2016 were $8.4 million compared to $8.3 million in the same period in the prior year.

"As we continue to focus our wholesale efforts on our top 5 private label customers, I am pleased with our overall net sales increase over the last twelve months," commented Phillip L. Hurst, Truett-Hurst, Inc.'s President and CEO.

Earnings Call

Truett-Hurst, Inc.'s management will host a conference call today, September 21, 2016, at 1:30 p.m. PT (4:30 p.m. ET) to discuss the Company's financial results.  To listen to the conference call, dial in approximately ten minutes before the scheduled call to 1.888.347.6082 or international at 1.412.902.4286 and request Truett-Hurst, Inc.'s Fiscal Year 2016 Results Call, or visit our webcast link: https://www.webcaster4.com/Webcast/Page/1132/17323.

A supporting presentation, in advance of the conference call, will be available at:

http://www.truetthurstinc.com

To listen to a replay of the call, dial US Toll Free:  1.877.344.7529 or International Toll: 1.412.317.0088 and enter the replay access code 10092867.  The call will be available one hour after the end of the conference call through September 28, 2016 at 9:00 am ET.  

About Truett-Hurst, Inc.

Truett-Hurst, Inc. (NASDAQ: THST, www.truetthurstinc.com) is a holding company and its sole asset is the controlling equity interest in H.D.D. LLC., an innovative and fast-growing super-premium, ultra-premium and luxury wine sales, marketing and production company based in the acclaimed Dry Creek and Russian River Valleys of Sonoma County, California. Truett-Hurst, Inc. is headquartered in Healdsburg, California.

Forward-Looking Statements

This press release and our earnings conference call for the fiscal year ended June 30, 2016 contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act of 1934, as amended, that are made as of the date of this press release based upon our current expectations.  All statements, other than statements of historical fact, regarding our strategy, future operations, financial position, estimated revenue, projected costs, prospects, plans, opportunities, and objectives constitute "forward-looking statements."  The words "may," "will," "expect," "intend," "plan," "anticipate," "believe," "estimate," "potential" or "continue" and similar types of expressions identify such statements, although not all forward-looking statements contain these identifying words.  Such forward-looking statements include expectations regarding revenue, income, and expenses for the periods after June 30, 2016.  These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements.  Important factors that could cause such differences include, but are not limited to, a reduction in the supply of grapes and bulk wine available to us; significant competition; any change in our relationships with retailers which could harm our business; we may not achieve or maintain profitability in the future; the loss of key employees; a reduction in our access to, or an increase in the cost of, the third-party services we use to produce our wine; credit facility restrictions on our current and future operations; failure to protect, or infringement of, trademarks and proprietary rights; these factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this report.  For additional information, see our Annual Report on Form 10-K expected to be filed on September 28, 2016, or our other reports currently on file with the Securities and Exchange Commission, which contain a more detailed discussion of risks and uncertainties that may affect future results.  We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.

 

TRUETT-HURST, INC. AND SUBSIDIARY

CONSOLIDATED BALANCE SHEETS

(In thousands, except per share data)








June 30, 2016


June 30, 2015






Assets





Current assets:





    Cash and cash equivalents

$

4,043

$

1,578

Accounts receivable


2,678


2,783

Inventories, net


19,918


22,080

Bulk wine deposits


271


345

Assets held for sale


-


173

Other current assets


125


311

Total current assets


27,035


27,270






Property and equipment, net


5,583


5,743

Intangible assets, net


496


482

Other assets, net


391


408

Total assets

$

33,505

$

33,903

Liabilities and Equity





Current liabilities:





Lines of credit

$

10,311

$

9,034

Accounts payable


1,351


2,889

Accrued expenses


795


643

Depletion allowance


610


524

Accrual for sales returns


528


524

Due to related parties


-


134

Liabilities held for sale


-


140

Current maturities of long term debt


475


368

Total current liabilities


14,070


14,256






Deferred rent liability


25


26

Long term debt, net of current maturities


3,189


3,272

Total liabilities


17,284


17,554






Equity:





Stockholders' equity:





Preferred stock, par value of $0.001 per share, 5,000,000 shares authorized, none issued and outstanding at June 30, 2016 and June 30, 2015






-


-

Class A common stock, par value of $0.001 per share, 15,000,000 authorized, 4,306,609 issued and outstanding at June 30, 2016 and 4,010,120 issued and outstanding at June 30, 2015






4


4

Class B common stock, par value of $0.001 per share, 1,000 authorized, 7 and 8 issued and outstanding at June 30, 2016 and June 30, 2015, respectively






-


-

Additional paid-in capital


15,794


14,618

Accumulated deficit


(5,600)


(5,356)

  Total Truett-Hurst, Inc. equity


10,198


9,266

  Noncontrolling interest


6,023


7,083

  Total equity


16,221


16,349

Total liabilities and equity

$

33,505

$

33,903

 

TRUETT-HURST, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)






Fiscal Year Ended



June 30,



 

2016


2015

Sales

$

26,517

$

22,396

Less excise tax


(734)


(754)

Net sales


25,783


21,642






Cost of sales


17,496


15,192






Gross profit


8,287


6,450






Operating expenses:





Sales and marketing


5,286


4,991

General and administrative


3,062


3,222

Impairment of other assets


-


112

Loss on disposal of  assets


17


12

  Total operating expenses


8,365


8,337

Net loss from operations


(78)


(1,887)

Other income (expense):





Interest expense, net


(317)


(286)

Other expense


(151)


(111)

  Total other expense, net


(468)


(397)

Net loss before income taxes


(546)


(2,284)

Income tax expense


(2)


(2)

Net loss from continuing operations


(548)


(2,286)

Income (loss) from discontinued operations, net of tax


45


(162)

Net loss attributable to Truett-Hurst, Inc. and H.D.D. LLC


(503)


(2,448)

Net loss attributable to noncontrolling interest: H.D.D. LLC


(259)


(1,087)

Net loss attributable to Truett-Hurst, Inc.

$

(244)

$

(1,361)






Net loss per share:





Basic and diluted per share

$

(0.06)

$

(0.35)






Weighted average shares used in computing net loss per share:





Basic and diluted weighted average shares


4,155,151


3,862,214

 

TRUETT-HURST, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)




Fiscal Year Ended


June 30,



2016


2015

Cash flows from operating activities:





Net loss

$

(503)

$

(2,448)

(Income) loss from discontinued operations, net of tax


(45)


162

Net loss from continuing operations


(548)


(2,286)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:





Depreciation and amortization


707


583

Stock-based compensation


375


561

Reserve for obsolesce of inventories


-


623

Impairment of other assets


-


112

Deferred rent


(1)


(22)

Loss on fair value of interest rate swap


143


46

Loss on disposal of assets


17


12






Changes in operating assets and liabilities, net





Accounts receivable


105


510

Inventories


2,162


(5,570)

Bulk wine deposits


74


1,079

Other current assets


166


(201)

Accounts payable


(1,538)


377

Accrued expenses


29


263

Depletion allowance


86


496

Accrual for sales returns


4


524

Due to related parties


(134)


11

Net cash provided by net operating assets and liabilities of discontinued operations


78


83

Net cash provided by (used in)  operating activities


1,725


(2,799)






Cash flows from investing activities:





Acquisition of property and equipment


(428)


(681)

Acquisition of intangible and other assets


(137)


(321)

Proceeds from sale of assets


4


3

Net cash used in investing activities


(561)


(999)






Cash flows from financing activities:





Net proceeds from line of credit


1,277


349

Proceeds from long term debt


500


-

Payments on long term debt


(476)


(333)

Net cash provided by financing activities


1,301


16






Net change in cash and cash equivalents


2,465


(3,782)

Cash  and cash equivalents at beginning of year


1,578


5,360

Cash and cash equivalents at end of year

$

4,043

$

1,578






Supplemental disclosure of cash flow information:





Cash paid for interest

$

324

$

258

Cash paid for income taxes

$

1

$

2







For more information, contact:                                    
Truett-Hurst, Inc.
Paul Forgue,                                                                            
Chief Financial Officer & Chief Operations Officer                      
Phone: 707.431.4423                                                                
Fax: 707.395.0289                                                                    
Email: paul@truetthurst.com           

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SOURCE Truett-Hurst, Inc.