Crystal Rock Holdings reports financial results for FY13

Crystal Rock Holdings, Inc (NYSE MKT: CRVP) has announced its financial results for its fiscal year that ended October 31, 2013. These results are filed on Form 10-K with the Securities and Exchange Commission.
Total sales for fiscal 2013 decreased slightly to $71.0 million compared to $71.1 million in fiscal 2012. Gross profit increased slightly for the year ended October 31, 2013 to $36.7 million from $36.6 million for the year earlier. Gross profit as a percentage was 52% for both years.
Operating income for the fiscal year ending October 31, 2013 was $2.8 million compared to an operating loss of $16.6 for the same period last year when results were significantly impacted by a write-down of goodwill, a non-cash charge of $20 million. Net income in fiscal 2013 was $571,000 compared to the net loss for fiscal year 2012 of $18.5 million. On a per share basis, the net income (loss) was $.03 per fully diluted share in fiscal 2013, compared to ($.86) per fully diluted share in fiscal 2012.
The expense recorded for impairment of goodwill is a non-cash charge in the fourth quarter of fiscal 2012. It was a result of the assessment of goodwill as of October 31, 2012. When impairment was indicated as of October 31, 2012, the Company recognized impairment in the amount by which the carrying value of goodwill exceeded the implied fair value of goodwill. As of October 31, 2013, considering qualitative factors, we concluded it is more likely than not that the fair value of the Company is greater than its carrying amount; therefore performing the two-step goodwill impairment test was not necessary.
"We have seen an immediate increase in sales resulting from the Universal Business Equipment acquisition in the fourth quarter of 2013," stated Peter Baker, CEO, Crystal Rock Holdings, Inc. "We attribute the sales performance to expertise in sales and systems that has very quickly integrated with our everyday business operations -- creating more density in our southern New England market. As we celebrate our 100th anniversary in 2014 and redefine a more connected customer experience, our executive leadership is operating in complete unison, our daily business pace has accelerated, and, we are completely committed to expanding our online presence in order to deepen the customer relationship. Our commitment to improving the quality of Crystal Rock's customer experience will strengthen our market differentiation by providing more value, not simply the lowest cost."
Crystal Rock Holdings, Inc. (NYSE MKT: CRVP), 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 United States. 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. Launched in 2010, the Crystal Rock Office’® brand features traditional office supplies, break room items, furniture and janitorial and sanitation products. 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 taglin e, "Little Things Matter’¢", Crystal Rock continues to set high standards in the home and office delivery 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.
CRYSTAL ROCK HOLDINGS, INC.
Results of Operations
Twelve Months Ended:
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October 31, October 31,
2013 2012
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(000's $)
Sales $ 70,981 $ 71,122
Income (Loss) from operations $ 2,790 $ (16,635)
Net Income (Loss) $ 571 $ (18,478)
Basic net income (loss) per share $ 0.03 $ (0.86)
Diluted net income (loss) per share $ 0.03 $ (0.86)
Basic Wgt. Avg. Shares Out. (000's) 21,372 21,384
Diluted Wgt Avg. Shares Out. (000's) 21,372 21,384
WATERTOWN, CT--(Marketwired - January 28, 2014) - Crystal Rock Holdings, Inc