Crystal Rock Holdings, Inc., a single source supplier of water, coffee and office supplies for businesses and homes, announced its financial results for its fiscal year that ended Oct. 31, 2011.
Total sales for fiscal 2011 increased $3.8 million, or 6 percent, to $71.6 million from $67.8 million for fiscal 2010. Excluding the sales increases that were due to acquisitions, sales increased 4 percent in fiscal year 2011 compared to the same period in 2010. Gross profit increased $259,000, or 1 percent, for the year ended Oct. 31, 2011 to $37.2 million from $37 million in the year earlier. Gross profit as a percentage of sales decreased to 52 percent in 2011 from 55 percent in 2010.
Operating income in fiscal 2011 was $4.5 million, a $1.6 million decrease from fiscal 2010. Other income benefited in fiscal 2010 from a one-time increase in non-operating income of $3.5 million which did not recur in 2011. Total pre-tax income in fiscal 2011 was $2.3 million compared to $7.2 million in fiscal 2010.
Net income for the most recent fiscal year decreased to $1.5 million from $4.3 million in the previous fiscal year. Consequently, earnings per share decreased to $.07 per share in 2011 from $.20 per share in 2010.
"2011 has been a year of transformation for us. While we increased sales through expansion and acquisition, our margins decreased due to higher commodity costs and the change in our product mix and administrative expenses increased," said Peter Baker, CEO of Crystal Rock Holdings, Inc. in a prepared statement. "We have been focused on a plan to invest in a personnel and information technology infrastructure to support our broad range of products and to deliver a premiere customer experience. We expect this to result in future sales growth and, although the incremental sales will yield a lower margin, increased profitability. We expect this transformation to continue into 2012," he concluded.