Crystal Rock Holdings, Inc. announced its financial results for three months ended Jan. 31, 2011, the first quarter of its fiscal year, and that it has filed these results on Form 10-Q with the Securities and Exchange Commission.
Total sales for the three months increased 6 percent to $17.1 million from $16.2 million for the comparable period a year ago. Without including sales from acquisitions, total sales increased by 3 percent in the first quarter of 2011 compared to the same period in 2010. Gross profit increased 3 percent for the first quarter of 2011 to $8.8 million from $8.5 million in the same quarter a year earlier. Gross profit, as a percentage of sales, decreased to 51 percent in the first three months of 2011 from 53 percent for the comparable period a year ago. Net income decreased to $120 in the first three months of 2011 from $177,551 for the same period a year ago.
"We successfully increased sales in the first quarter despite the most adverse winter weather conditions in our market area in recent memory," said Peter Baker, CEO of Crystal Rock Holdings, Inc. in a prepared statement. "The weather decreased our available sales and distribution opportunities for our traditional products and increased operating costs. In addition, some of the sales increase was attributable to the success of our new office products line which yield lower margins. As a result, we experienced lower margins and profitability for the quarter than in the prior year. We remain committed to leveraging our distribution system and building our brands to be more profitable in the future."
Crystal Rock Holdings, Inc. - operating through its subsidiary Crystal Rock LLC - markets and distributes water, coffee, office supplies and other home and office refreshment products throughout the Northeast. The company is the largest independent home and office distributor of its kind in the U.S. It bottles and distributes natural spring water under the Vermont Pure® brand, purified water with minerals added under the Crystal Rock® waters label and roasts and packages coffee under its Cool Beans® brand. The majority of its sales are derived from a route distribution system that delivers water in 3- to 5-gallon reusable, recyclable bottles, and coffee in fractional packs or pods. More information is available at crystalrock.com.