Drinks Americas Holdings Ltd. develops, owns, markets and nationally distributes alcoholic and non-alcoholic premium beverages associated with renowned icon celebrities. Some of their beverages include Trump Super Premium Vodka and Willie Nelson’s Old Whiskey River Bourbon. The company today announced results for the fiscal third quarter ended January 31, 2010.
In the third quarter, the company shipped and sold approximately $397,000 in new product. This revenue exceeded Drinks Americas’ previous forecast. As reported previously by the company, its second fiscal quarter had only generated $15,000 in shipments and revenues. This low figure was due to severe working capital restraints.
The company reduced selling, general and administrative expenses by 60 percent in the fiscal third quarter as compared to the fiscal second quarter. As a result of the reconfiguration of the company’s business model, Drinks Americas’ annual overhead will continue to be reduced from a historical run rate of more than $4.8 million annually to approximately $1.2 million annually.
As a result of various negotiations, Drinks Americas has reduced its third quarter payables and short-term debt by $383,000 from the last fiscal quarter. In addition, the company has paid down $200,000 of its long-term debt. Drinks Americas also recently announced a venture with Mexcor International Wine and Spirits to accelerate the company’s growth.
Drinks Americas’ CEO, J. Patrick Kenny, stated. “We believe that our third quarter results reflect the improvements in operations that we have implemented over the past six months. We have stabilized our operations, allowing us to again focus on growing revenue through both existing and new distribution channels. We have strengthened our balance sheet…which should allow us to become profitable as Mexcor increases distribution of our products.”