Crystal Rock Holdings, Inc. announced its financial results for three and six months ended April 30, 2011 and that it has filed these results on Form 10-Q with the Securities and Exchange Commission.
Total sales for the three months ending April 30, 2011, the company's second fiscal quarter, were $17,658,000 compared to $17,159,000 for the corresponding period in 2010, an increase of $499,000, or 3 percent. Excluding sales from acquisitions, total sales increased by 1 percent in the second quarter of 2011 compared to the same period in 2010. Gross profit for the second quarter of 2011 decreased $166,000, or 2 percent, to $9,087,000 from $9,253,000 for the comparable period in 2010. As a percentage of sales, gross profit decreased to 51 percent in the second quarter of 2011 from 54 percent in the second quarter of 2010. Net income decreased to $365,000 in the second quarter of 2011 from $452,000 for the same period a year ago.
Total sales for the six months ending April 30, 2011 were $34,788,000 compared to $33,344,000 for the corresponding period in 2010, an increase of $1,444,000, or 4 percent. Net of the acquisition related sales, total sales increased 2 percent, in the first six months of fiscal year 2011 from the same period a year ago. For the six months ended April 30, 2011, gross profit increased $103,000, or 1 percent, to $17,874,000 from $17,771,000 for the comparable period in 2010. As a percentage of sales, gross profit decreased to 51 percent in the first half of 2011 from 53 percent in the first half of 2010. Net income decreased 42 percent for the six months ended April 30, 2011 to $366,000 from $630,000 for the comparable period last year.
"We continue to increase sales through the strength of our Cool Beans coffee and office products initiative, however, as a result of challenging economic conditions and a competitive market place, our gross margin declined slightly," said Peter Baker, CEO of Crystal Rock Holdings, Inc. in a prepared statement. "With lower margins and strategic investments in our infrastructure, increased sales have not translated to an increased bottom line, yet. We expect that by continuing to execute our growth plan, diversifying our sales base and controlling our costs, we'll be in better position to support our goal of increasing profitability."
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. With a new identity and the tagline, "Little Things Matter(SM)," Crystal Rock continues to set high standards in the home and office refreshment industry through technical innovation, a commitment to the environment, and the integration of its family roots into relationships with employees and customers. More information is available at crystalrock.com.