Andres Wines Announces First Quarter Results.GRIMSBY, Ontario Grimsby (2001 population 21,297) is a town on Lake Ontario in the Niagara Region, Ontario, Canada. The majority of residents reside in the area bounded by Lake Ontario and the Niagara escarpment. -- Acquisitions of Premium Wineries to Enhance Growth Profile Andres Andres may refer to:
TSX Transfer from Stack Pointer to Index TSX True Space Extension :ADW See Key:Enterprise. .NV.A)(TSX:ADW.B) announced today its results for the three months ended June June: see month. 30, 2005. Sales for the first quarter of fiscal 2006 rose 16.3% to $46.8 million from $40.3 million last year. The increase is due primarily to the Company's successful initiatives to grow sales of its premium and ultra-premium wines and the contribution of Cascadia The name Cascadia, which is derived from the name of the Cascade Range, can refer to: Cities:
The vintage 1998 Benchmark Blend won second place in a field of 16 wines at the St. , both acquired in May 2005. The sales increase resulted in an 8.2% rise in net income to $2.0 million or $0.42 per Class A share from $1.9 million or $0.39 per Class A share last year. "The acquisitions of Cascadia Brands and Thirty Bench Winery have enhanced our presence in the Canadian wine While most of Canada is too cold for grape growing, Canadian wine is produced in Southern Ontario and southern British Columbia. The two largest wine producing regions are the Niagara Peninsula in Ontario and the Okanagan in British Columbia. industry and will result in solid contributions to our growth in the coming quarters," commented John Peller, President and Chief Executive Officer. Cascadia is one of Canada's largest producers of premium brand wines, craft beer and spirits with production facilities in Kelowna Kelowna (kĭlō`nə), city (1991 pop. 75,950), S British Columbia, Canada, on Okanagan Lake. Kelowna is a tourist resort and serves as a trade center for a fruit-growing and lumbering area. and Vancouver Vancouver, city, Canada Vancouver, city (1991 pop. 471,844), SW British Columbia, Canada, on Burrard Inlet of the Strait of Georgia, opposite Vancouver Island and just N of the Wash. border. , British Columbia British Columbia, province (2001 pop. 3,907,738), 366,255 sq mi (948,600 sq km), including 6,976 sq mi (18,068 sq km) of water surface, W Canada. Geography . The purchase significantly enhances the Company's presence in the strong Western Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. market, and provides the Company with opportunities to capture production and overhead synergies in its B.C. operations. Thirty Bench is an ultra-premium wine producer located in the heart of the Beamsville Bench in Ontario's Niagara Niagara, river, United States and Canada Niagara (nīăg`rə), river, 34 mi (55 km) long, issuing from Lake Erie between Buffalo, N.Y., and Fort Erie, Ont., Canada. wine producing region. The acquisition of the winery win·er·y n. pl. win·er·ies An establishment at which wine is made. Noun 1. winery - distillery where wine is made wine maker , its brands, and 70 acres of vineyards provides Andres a solid presence in one of Canada's most sought after viticulture areas, and adds to the Company's premium estate wineries in near-by Niagara-on-the-Lake Niagara-on-the-Lake or Niagara, town (1991 pop. 12,945), S Ont., Canada, on Lake Ontario at the mouth of the Niagara River. It was settled (1784) by American Loyalists and in 1792 Lieutenant Governor Simcoe made the town the capital of Upper . Earnings before interest, taxes and amortization (EBITA EBITA Earnings Before Interest Taxes Amortization ) for the three months ended June 30, 2005 increased 19.8% to $5.7 million from $4.7 million last year, primarily due to the higher sales. Selling and administration expenses rose in the current period due to the acquisitions. As a percentage of sales, selling and administrative expenses improved to 29.6% in the quarter from 30.9% last year. The changes to the Company's balance sheet compared to the end of fiscal 2005 are primarily due to the acquisitions completed in the first quarter of fiscal 2006. Working capital was $39.9 million at June 30, 2005 compared to $29.8 million at March 31, 2005. The increase in bank indebtedness INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. and long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. at the end of the first quarter of fiscal 2006 compared to the prior year-end was due to the two acquisitions completed in the period. Shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. at June 30, 2005 rose to $88.4 million or $17.84 per share from $87.2 million or $17.59 per share as at March 31, 2005. Cash from operating activities, after changes in non-cash working capital items, was $2.2 million compared to $2.8 million in the first quarter of fiscal 2005. The change is due principally to a decrease in accounts payable due to the timing of payments on purchases of bulk wine. Andres continues to pay an annual dividend of $0.644 per Class A share and $0.560 per Class B share. "We were pleased with our results in the first quarter, and anticipate a strong performance through the balance of the year," commented John Peller, President and Chief Executive Officer.
Financial Highlights (complete statements follow)
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Three Months
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Period Ended June 30, 2005 2004
(in $,000 except per share amounts)
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Sales 46,831 40,256
EBITA 5,679 4,741
Net Earnings 2,012 1,859
Net Earnings per Share (Basic per Class A share) $0.42 $0.39
Cash from Operations (after changes in non-cash
working capital items) 2,230 2,768
Working Capital 39,877 30,856
Shareholders' Equity per Share $17.84 $16.71
Weighted Average Shares Outstanding 4,956,074 4,931,395
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Andres Wines Ltd. is a leading producer and marketer of quality wines in Canada. With wineries in British Columbia, Ontario and Nova Scotia Nova Scotia (nō`və skō`shə) [Lat.,=new Scotland], province (2001 pop. 908,007), 21,425 sq mi (55,491 sq km), E Canada. Geography , the Company markets wines produced from grapes Grapes - A Modula-like system description language. E-mail: <peter@cadlab.cadlab.de>. ["GRAPES Language Description. Syntax, Semantics and Grammar of GRAPES-86", Siemens Nixdorf Inform, Berlin 1991, ISBN 3-8009-4112-0]. grown in Ontario's Niagara Peninsula The Niagara Peninsula is the portion of Ontario, Canada lying on the south shore of Lake Ontario. It stretches from the Niagara River in the east to Hamilton, Ontario in the west. Lake Ontario lies to the north and Lake Erie to the south. , British Columbia's Okanagan Valley and vineyards around the world. The Company's award-winning premium and ultra-premium brands include Peller Estates, Trius, Hillebrand Estates, Thirty Bench and Sandhill A sandhill is an ecological community type found in many parts of the world. Sandhills in the coastal plain of North America This xeric fire-maintained ecosystem features very short fire return intervals, one to five years. , Copper Moon and Calona Vineyards Artist Series VQA VQA Vintners Quality Alliance (Canadian wine makers standards organization) VQA Voice Quality Assurance (Ditech Communications) VQA Volunteer Quality Alert (US IRS) wines. Complementing these premium brands are a number of popular priced products including Hochtaler, Domaine D'Or, Schloss Laderheim, Royal and Sommet. With the acquisition of Cascadia Brands Inc, the Company also markets craft beer under the Granville Island brand and spirits under International Potters Distillers. With a focus on serving the needs of all wine consumers, the Company produces and markets consumer-made wine kit products through Winexpert Inc. and Vineco International. In addition, the Company owns and operates Vineyards Estate Wines and WineCountry Vintners, an independent wine retailer in Ontario with more than 100 well-positioned retail locations. Andres common shares trade on the Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. (symbols ADW.NV.A and ADW.B). The Company utilizes EBITA (defined as earnings before interest, incomes taxes, depreciation and amortization) to measure its financial performance. EBITA is not a recognized measure under GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). . Management believes that EBITA is a supplemental measure to net earnings (loss), as it provides readers with an indication of cash available for investment prior to debt service, capital expenditures and income taxes. Readers are cautioned that EBITA should not be construed as an alternative to net earnings (loss) determined in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with GAAP as an indicator of the Company's performance or to cash flows from operating, investing and financing activities as a measure of liquidity and cash flows. In addition, the Company's method of calculating EBITA may differ from the methods used by other companies and, accordingly, may not be comparable to measures used by other companies.
ANDRES WINES LTD.
CONSOLIDATED BALANCE SHEETS
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Unaudited Audited
June 30, 2005 March 31, 2005
$ $
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Assets
Current Assets
Accounts receivable 19,829 14,132
Inventories 78,751 62,045
Prepaid expenses 2,981 2,531
Income taxes recoverable - 693
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101,561 79,401
Property, plant and equipment 78,896 55,897
Goodwill 30,657 23,759
Intangibles and other assets 14,239 3,762
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225,353 162,819
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Liabilities
Current Liabilities
Bank indebtedness 32,328 31,756
Accounts payable and accrued liabilities 22,533 14,795
Dividends payable 777 777
Income taxes payable 796 -
Current portion of long - term debt 5,250 2,250
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61,684 49,578
Long-term debt 63,750 17,313
Future income taxes 11,516 8,760
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136,950 75,651
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Shareholders' Equity
Capital Stock 7,244 7,244
Retained Earnings 81,159 79,924
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88,403 87,168
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225,353 162,819
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ANDRES WINES LTD.
Consolidated Statements of Earnings and Retained Earnings
For the three months ended June 30, 2005 and 2004
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These financial statements have not been 2005 2004
reviewed by our auditors (UNAUDITED) $ $
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Sales 46,831 40,256
Cost of goods sold 27,296 23,072
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Gross profit 19,535 17,184
Selling and administration 13,856 12,443
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Earnings before interest and amortization 5,679 4,741
Interest 864 505
Amortization 1,569 1,272
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Earnings before income taxes 3,246 2,964
Provision for income taxes
Current 1,166 1,047
Future 68 58
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1,234 1,105
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Net earnings for the period 2,012 1,859
Retained earnings- Beginning of period 79,924 74,494
Dividends:
Class A and Class B 777 777
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Retained earnings- End of period 81,159 75,576
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Net earnings per share
Basic and Diluted
Class A shares 0.42 0.39
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Class B shares 0.36 0.34
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Andres Wines Ltd. (TSX:ADW.NV.A) (TSX:ADW.B) |
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