Beringer Wine Estates Announces Fourth Quarter and Fiscal 2000 Earnings.Business Editors ST. HELENA Helena. 1 Town (1990 pop. 7,491), seat of Phillips co., E central Ark., on the Mississippi River and at the southern end of Crowley's Ridge; inc. 1833. , Calif.--(BUSINESS WIRE)--Aug. 3, 2000 Beringer Wine Estates Holdings, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : BERW) today announced record operating and financial results for its fourth quarter and full year ended June June: see month. 30, 2000. Fourth Quarter Ended June 30, 2000 Fourth quarter adjusted net income increased 17% to $11.9 million, or $0.59 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share. This compares with adjusted net income of $10.2 million, or $0.50 per share for the fourth quarter last year. Net revenues for the quarter increased 16% to $111.0 million. The Company shipped 2.0 million nine-liter cases, up 15%, with average unit net revenue of $56.76 per case. Fourth quarter revenue growth was driven primarily by the Beringer brand. Led by the market expansion of Beringer Founders' Estates, revenue for the total Beringer brand increased 22%. "We are very pleased by the performance of the Beringer Founders' Estate line which was the fastest growing brand in the super-premium price category over the past year," said Walt Klenz, Chairman and Chief Executive Officer. Adjusted operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. for the quarter increased 14% to $25.0 million with an adjusted operating profit margin Operating profit margin The ratio of operating profit to net sales. of 22.5%. Adjusted net income margin was 10.7%, unchanged from the fourth quarter last year. On an as-reported basis, including the impact of non-cash acquisition-related charges, the Company reported net income of $11.8 million as compared with $9.6 million in the fourth quarter last year. Full Year Ended June 30, 2000 For the full year, adjusted net income increased 18% to $46.4 million or $2.29 per share. This result compares with adjusted net income of $39.3 million, or $1.94 per share last year. Net revenues for the full year were $438.8 million, an increase of 17% versus the prior year. Volume of nine-liter case shipments increased by 14% to 7.7 million cases while average unit net revenue increased nearly 3% to $56.85 per case. "Excluding the Napa Ridge ridge (rij) a linear projection or projecting structure; a crest. dental ridge any linear elevation on the crown of a tooth. dermal ridges cristae cutis. brand which was divested at mid-year, total Company volume increased 17% and revenue 20%", stated Klenz. Adjusted operating income for the full year increased 19% to $98.4 million with an adjusted operating profit margin of 22.4% compared with 22.1% last year. On an as-reported basis, including the impact of non-cash acquisition-related charges and the gain recorded from the divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). of the Napa Ridge brand, the Company reported net income of $59.1 million for the full year as compared with $29.6 million last year. Beringer Wine Estates Holdings, Inc. is a market leader in the premium wine industry. The Company consists of six award-winning Adj. 1. award-winning - having received awards; "this award-winning bridge spans a distance of five miles" California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). wineries and an import portfolio from Italy Italy (ĭt`əlē), Ital. Italia, officially Italian Republic, republic (2005 est. pop. 58,103,000), 116,303 sq mi (301,225 sq km), S Europe. , France and Chile Chile (chĭl`ē, Span. chē`lā), officially Republic of Chile, republic (2005 est. pop. 15,981,000), 292,256 sq mi (756,945 sq km), S South America, west of the continental divide of the Andes Mts. . The Company controls approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 10,300 acres of vineyard vineyard, land on which cultivation of the grape—known as viticulture—takes place. As many as 40 varieties of grape, Vitis vinifera, are known. land, all in the coastal regions of California. Note: For further details and a discussion of the risks and uncertainties, refer to Beringer's filings with the Securities and Exchange Commission, including its most recent Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and Annual Report for the fiscal year ended June 30, 1999.
Beringer Wine Estates
Income Statement
Three Months Ended June 30, 2000
(in thousands, except per share data)
Adjusted (1) As Reported
2000 1999 2000 1999
Net revenues $111,028 $ 95,357 $111,028 $ 95,357
Cost of goods sold (2) 55,760 47,024 56,567 48,240
Gross profit (2) 55,268 48,333 54,461 47,177
Operating expenses 30,278 26,413 30,278 26,413
Operating income (2) 24,990 21,920 24,183 20,704
Interest and other
expense (net) 5,397 5,343 5,397 5,343
Pre-tax income (2) 19,593 16,577 18,786 15,361
Income taxes (3) 7,658 6,338 7,011 5,774
Net income $ 11,935 $ 10,239 $ 11,775 $ 9,587
Weighted average shares
Diluted shares
outstanding 20,278 20,300 20,278 20,300
Earnings per share $ 0.59 $ .050 $ 0.58 $ 0.47
(1) In accordance with purchase accounting rules applied to the
acquisition of Beringer Wine Estates in 1996 and to the
subsequent acquisitions of Chateau St. Jean, Stags' Leap and St.
Clement, inventory of each acquired company was increased to fair
market value. This inventory step-up generates non-cash charges
to cost of goods sold as the inventory on hand at the acquisition
date is sold.
The adjusted income statements for the three months ended June
30, 2000 and 1999 reflect the comparative consolidated financial
data excluding the for inventory step-up charges.
(2) For the three months ended June 30, 2000 and 1999, cost of goods
sold was reduced and gross profit, operating income and income
before taxes were effectively increased in the adjusted income
statements by $0.8 million and $1.2 million, respectively, as a
result of the adjustment for inventory step-up charges.
(3) For the three months ended June 30, 2000 and 1999, adjusted
income taxes have been computed on pre-tax income excluding the
inventory step-up charges. An adjusted tax rate of 39.1% was
applied in the current three months as compared with a 38.2% rate
in the comparable three months last year.
Beringer Wine Estates
Income Statement
Full Year Ended June 30, 2000
(in thousands, except per share data)
Adjusted (1) As Reported
2000 1999 2000 1999
Net revenues $438,805 $376,154 $438,805 $376,154
Cost of goods sold (2) 218,878 181,582 224,565 198,030
Gross profit (2) 219,927 194,572 214,240 178,124
Operating expenses 121,550 111,592 121,550 111,592
Gain on sale of Napa Ridge
brand (3) -- -- 26,427 --
Operating income (2) 98,377 82,980 119,117 66,532
Interest and other
expense (net) 22,534 19,428 22,534 19,428
Pre-tax income (2) 75,843 63,552 96,583 47,104
Income taxes (4) 29,427 24,226 37,489 17,519
Net income $ 46,416 $ 39,326 $ 59,094 $ 29,585
Weighted average shares
Diluted shares
outstanding 20,292 20,300 20,292 20,300
Earnings per share $ 2.29 $ 1.94 $ 2.91 $ 1.46
(1) In accordance with purchase accounting rules applied to the
acquisition of Beringer Wine Estates in 1996 and to the
subsequent acquisitions of Chateau St. Jean, Stags' Leap and St.
Clement, inventory of each acquired company was increased to fair
market value. This inventory step-up generates non-cash charges
to cost of goods sold as the inventory on hand at the acquisition
date is sold.
The adjusted income statements for the twelve months ended June
30, 2000 and 1999 reflect the comparative consolidated financial
data excluding the inventory step-up charges.
Additionally, during the twelve month period ended June 30, 2000,
a pre-tax gain of $26.4 million was recorded for the gain on sale
of the Napa Ridge brand. The adjusted income statement for the
twelve months ended June 30, 2000 excludes this gain due to its
one-time nature.
(2) For the twelve months ended June 30, 2000 and 1999, cost of goods
sold was reduced and gross profit, operating income and income
before taxes were effectively increased in the adjusted income
statements by $5.7 million and $16.4 million, respectively, as a
result of the adjustment for inventory step-up charges.
(3) During January, 2000 Beringer Wine Estates finalized the
divestiture of the Napa Ridge brand and realized a one-time
pre-tax net gain of $26.4 million.
(4) For the twelve months ended June 30, 2000 and 1999, adjusted
income taxes have been computed on pre-tax income excluding the
inventory step-up charges and gain on sale of Napa Ridge. An
adjusted tax rate of 38.8% was applied in the current twelve
months as compared with a 38.1% rate in the comparable twelve
month period last year.
Beringer Wine Estates
Selected Balance Sheet Information
(in millions)
June 30, June 30,
2000 1999
Current Assets $ 415.3 $ 345.1
Current Liabilities (1) $ 62.8 $ 59.9
Total Liabilities $ 479.0 $ 426.2
Shareholder's Equity $ 280.2 $ 218.1
Working Capital (1) $ 352.5 $ 285.2
Total Debt $ 378.1 $ 328.0
(1) Excludes the line of credit balance of $145.8 and $104.8 at June
30, 2000 and 1999, respectively.
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