Beringer Wine Estates Announces Record First Fiscal Quarter Revenues and Earnings.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)--Nov. 3, 1998--Beringer Wine Estates Holdings, Inc. (Nasdaq:BERW) today announced financial results for the first quarter of its fiscal 1999 year. For the first quarter ended September September: see month. 30, 1998, adjusted net income to common shareholders increased 125% to $7.0 million, or $0.35 per share. This compares with adjusted net income of $3.1 million, or $0.22 per share for the first quarter last year. Net revenue for the quarter increased 14% over the prior year's quarter to $75.0 million. Nine-liter case shipments exceeded 1.3 million cases, and were 10% greater than the first quarter of 1998. In addition, the Company realized an improved product mix, which increased unit revenue by 4% over the prior year period. "First quarter revenue growth of 14% was generated primarily from our Beringer and Meridian Meridian (mərĭd`ēən), city (1990 pop. 41,036), seat of Lauderdale co., E Miss., near the Ala. line; settled 1831, inc. 1860. Vineyards brands which experienced quarterly sales increases of 16% and 28%, respectively," said Walt Klenz, Chairman and Chief Executive Officer. "We are pleased with the fact that these brands continue to outpace out·pace tr.v. out·paced, out·pac·ing, out·pac·es To surpass or outdo (another), as in speed, growth, or performance. outpace Verb [-pacing, the growth in the premium wine category and that this volume and revenue growth was coupled with improved operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: ," he concluded. Pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma 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 by 19% to $15.9 million. The Company's operating margin of 21.1% was about 1.0 percentage point higher than the prior year. Interest and other income/expenses (net) was $4.5 million for the quarter as compared with $6.4 million in the prior year, which reflects the Company's reduction of debt following its initial public offering in October October: see month. 1997. Adjusted net income before preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. dividends increased 56% from the prior year's first quarter. On an as-reported basis, including the impact of non-cash acquisition-related charges, the Company reported net income to common shareholders of $4.0 million as compared with a net loss of $2.0 million in the first quarter last year. Beringer Wine Estates Holdings, Inc. is a market leader in the premium wine industry. The Company consists of six award-winning 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 a growing import portfolio from Italy, France and Chile. The Company controls over 9,500 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. This press release contains forward looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in the forward looking statements, including whether the premium wine category will continue to grow, whether the Company's market position will continue to improve, and whether consumer demand for the wines of Beringer Wine Estates Holdings, Inc. will continue to expand. For further details and a discussion of the risks and uncertainties which affect and may affect the Company, refer to Beringer's filings with the Securities and Exchange Commission, including its 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. for the year ended June 30, 1998. The forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. represent the Company's judgement as of the date of this press release. Beringer Wine Estates Holdings, Inc. disclaims any intent or obligation to update their forward-looking statements. Actual results may differ materially and adversely from those anticipated, believed, estimated or otherwise indicated. -0-
Beringer Wine Estates
Income Statement
Three Months and Year-to-Date Ended September 30, 1998
(in thousands, except per share data)
Pro Forma (1) As Reported
1998 1997 1998 1997
------ ------ ------ ------
Net revenue $ 75,020 $ 65,810 $ 75,020 $ 65,810
Cost of goods sold (2) 35,703 31,314 40,642 39,166
-------- -------- -------- --------
Gross profit (2) 39,317 34,496 34,378 26,644
Operating expenses 23,456 21,195 23,456 21,195
-------- -------- -------- --------
Operating Income (2) 15,861 13,301 10,922 5,449
Interest and other
expense (net) 4,507 6,394 4,507 6,394
-------- -------- -------- --------
Pre-tax income (2) 11,354 6,907 6,415 (945)
Income taxes (3) 4,337 2,417 2,411 (272)
-------- -------- -------- --------
Net income before
extraordinary items 7,017 4,490 4,004 (673)
Preferred dividends
and discount accretion -- 1,367 -- 1,367
-------- -------- -------- --------
Net income (loss)
to common shareholders $ 7,017 $ 3,123 $ 4,004 $ (2,040)
======== ======== ======== ========
Weighted average shares
Diluted shares
outstanding 20,168 14,289 20,168 12,912
Earnings (loss) per
share $ 0.35 $ 0.22 $ 0.20 $ (0.16)
Selected Balance Sheet Information
(in millions)
September 30, 1998 September 30, 1997
------------------ ------------------
Current Assets $ 305.8 $ 293.5
Current Liabilities $ 53.4 $ 82.3
Total Liabilities $ 381.7 $ 442.0
Shareholders' Equity $ 190.3 $ 42.3
Working Capital $ 252.4 $ 211.2
Total Debt $ 297.0 $ 327.1
(1) 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 purchase accounting rules applied to the acquisition of Beringer Wine Estates in 1996 and to the subsequent acquisitions of Chateau St. Jean and Stags' Leap, inventory of each acquired company was increased to fair market value. This inventory step-up step-up A scheduled increase in the exercise or conversion price at which a warrant, an option, or a convertible security may be used to acquire shares of common stock. generates non-cash charges Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. to cost of goods sold Cost of goods sold The total cost of buying raw materials, and paying for all the factors that go into producing finished goods. cost of goods sold as the inventory on hand at the acquisition date is sold. The pro forma income statements for the three months ended September 30, 1998 and 1997 reflect the comparative consolidated financial data excluding the non-cash inventory step-up charges. (2) For the three months ended September 30, 1998 and 1997, cost of goods sold was reduced and gross profit, operating income and income before taxes were effectively increased in the pro forma income statements by $4.9 million and $7.9 million, respectively, as a result of the adjustment for inventory step-up charges. (3) For the three months ended September 30, 1998 and 1997, pro forma income taxes have been computed on pre-tax income adjusted for the inventory step-up charges. A pro forma tax rate of 38.2% was applied in the current quarter as compared with a 35.0% rate in the comparable quarter last year. |
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