Castle Brands (ROX) Reports a Q4 Loss

June 30, 2008 4:30 PM EDT

Castle Brands Inc. (AMEX: ROX) reports a Q4 loss of $0.83 vs. consensus for $0.39 loss. For the fourth quarter fiscal year 2008, Castle Brands reported net sales of $6.4 million vs. $6.75 million consensus. (NOTE - only 1 analyst, EPS may not be comparable to consensus)

(In connection with the annual impairment tests for goodwill and intangible assets under SFAS 142, the fair value of each of our reporting units was determined at March 31, 2008 by weighting a combination of the present value of the Company's discounted anticipated future operating cash flows and values based on market multiples of revenue and earnings before interest, taxes, depreciation and amortization (''EBITDA'') of comparable companies. The valuations resulted in a goodwill impairment loss of approximately $8.8 million for the year ended March 31, 2008. Weighted average shares outstanding were 3.5 million shares greater in fourth quarter 2008 as compared to the same period in the prior year as a result of a private placement of the Company's common stock in May 2007)

Castle Brands Inc. is a developer and global marketer of branded spirits within four categories : vodka, rum, whiskey and liqueurs. [SM]

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