Beringer Wine Estates Announces Third Quarter Fiscal 1999 Earnings.ST. HELENA, Calif.--(BUSINESS WIRE)--April 27, 1999-- Beringer Wine Estates Holdings, Inc. (Nasdaq: BERW) today announced operating and financial results for its third quarter and nine months ended March 31, 1999. Third Quarter Ended March 31, 1999 Third quarter adjusted net income increased 12% to $9.9 million, or $0.49 per share. This compares with adjusted net income of $8.8 million, or $0.44 per share for the third quarter last year. Net revenues for the quarter increased by 21% to $93.2 million, generated primarily by a 16% growth in volume. The Company shipped nearly 1.7 million nine-liter cases with average unit net revenue of $55.31 per case, an increase of 4%. "Third quarter revenue growth of 21% was led by 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. We continue to be encouraged by the strength of these key brands," said Walt Klenz, Chairman and Chief Executive Officer. "The Beringer brand continued to grow with shipments up 16% while our Meridian brand experienced strong shipment growth, up 24% for the quarter," said Klenz. Adjusted gross margins averaged 51.3% for the quarter, while 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. increased 15% to $21.2 million. Adjusted net income of $9.9 million increased 12% from $8.8 million in the comparable quarter last year. On an as-reported basis, including the impact of non-cash acquisition-related charges, the Company reported net income of $7.6 million as compared with $5.2 million in the third quarter last year. Nine Months Ended March 31, 1999 For the nine months, adjusted net income available to common stockholders increased 40% to $29.1 million or $1.43 per share. This result compares with adjusted net income to common stockholders of $20.8 million, or $1.19 per share for the nine months last year. Net revenues for the nine months were $280.8 million, an increase of over 18% versus the prior year. Volume of nine-liter case shipments increased by 13% to 5.1 million cases while average unit net revenue increased by over 4% to $55.21 per case. Adjusted operating income for the nine months increased 17% to $61.1 million. The Company's adjusted operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: of 21.7% is relatively unchanged from the comparable nine months last year. On an as-reported bhe comparable period 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 aactual results to differ materially from those will continue to expand and whether the company most recent Form 10-Q Form 10-Q See 10-Q. dated February 16, 1999 and Annual Report for the fiscal 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 HoldinReported 1999 1998 1999 1998 Net revenue (2) 47,772 40,453 43,952 33,759 Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. 26,605 22,030 26,605 22,030 Operating income (2) 21,167 18,423 17,347 11,729 Interest and other expense (net) 5,228 4,273 5,228 4,273 Pre-tax income (2) 15,939 14,150 12,119 7,456 lied to the acquisition of Beringer Wine Eep-up 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 as the inventory on hand at the acquisition date ive consolidated financial data adjusted fere fere n. Archaic 1. A companion. 2. A spouse. [Middle English, from Old English gef effectively increased in the adjusted incomeadjusted income taxes have been computed on pre-tax income adjusted for the 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. charuarter last year. Adjusted (1) As Repo,213 Interest and other expense (net) 14,085 16,067 14,085 16,067 Pre-tax income (2) 46,975 35,912 31,743 13,146 Income taxes (3) 17,888 13,183 11,745 3,847 Net income be -- -- 2,476 Net income available to common stockholders before extraordinary items 1.43 $ 1.19 $ 0.99 $ 0.09 (1) Ininventory 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 nine months ended March 31, 1999 and 1998 reflect the comparative consolidated financial data adjusted for the inventory step-up charges as well as the one-time expenses referred to in notes (4) and (5). (2) For the nine months ended March 31, 1999 and 1998, cost of goods sold was reduced and gross profit, operating income and income before taxes were effectively increased in the adjusted income statements by $15.2 million and $22.8 million, respectively, as a result of the adjustment for inventory step-up charges. (3) For the nine months ended March 31, 1999 and 1998, adjusted income taxes have been computed on pre-tax income adjusted for the inventory step-up charges. An adjusted tax rate of 38.1% has been applied for the period with a tax rate of 36.7% applied last year. (4) The early redemption of the Series A 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. resulted in a one-time $2.5 million reduction of net income available to common stockholders, which represents the difference on the redemption date Redemption date The date on which a bond matures or is redeemed. redemption date The date on which a debt security is scheduled to be redeemed by the issuer. The redemption date is the scheduled maturity date or, if applicable, a call date. between the carrying amount and the redemption amount of the Series A Preferred Stock. (5) Proceeds from the October, 1997 initial public offering allowed the company to retire all of the outstanding subordinated notes. The prepayment penalty Prepayment penalty A fee a borrower pays a lender when the borrower repays a loan before its scheduled time of maturity. and write-off of the remaining original issue discount resulted in an extraordinary tax-effected charge of $3.3 million. Beringer Wine Estates Selected Balance Sheet Information (in millions) March 31, 1999 March 31, 1998 Current Assets Current Assets Appearing on a company's balance sheet, it represents cash, accounts receivable, inventory, marketable securities, prepaid expenses, and other assets that can be converted to cash within one year. $354.0 $289.8 Current Liabilities Current Liabilities Usually appearing on a company's balance sheet, it represents the amount owed for interest, accounts payable, short-term loans, expenses incurred but unpaid, and other debts due within one year. $70.3 $42.5 Total Liabilities $425.4 $349.2 Stockholders' Equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. $208.2 $179.1 Working Capital $283.7 $247.3 Total Debt $331.4 $275.6 |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion