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CANANDAIGUA WINE COMPANY, INC. ANNOUNCES RECORD FIRST QUARTER EARNINGS AND SALES

 CANANDAIGUA, N.Y., Jan. 13 /PRNewswire/ -- Canandaigua Wine Company, Inc. (NASDAQ: WINE) announced today record first quarter 1993 results. These results reflect the successful implementation of the company's acquisition strategy including the favorable impact of its acquisition of Guild Wineries and Distilleries ("Guild") and the internal growth of its brands, including "Cook's" sparkling and varietal table wines, "Manischewitz" kosher table wines, "Marcus James" varietals, "Cribari" table wines, "Mateus" Portuguese table wines, "Dunnewood" varietals, and "Widmer" wines.
 The company's net income increased 49.6 percent to $3,604,000 or $.31 of primary earnings per share for the first quarter 1993, up from $2,410,000 or $.26 of primary earnings per share for the first quarter 1992. The company's net sales increased 11.8 percent to $71,109,000 for first quarter 1993, up from $63,580,000 for first quarter 1992.
 The 49.6 percent increase in net income for first quarter 1993 as compared to first quarter 1992 resulted from higher net sales and higher gross profit margins. Gross profit margins improved as a result of higher selling prices of certain brands and cost savings with respect to the production of product lines acquired from Guild, and as a result of a favorable change in product mix. In this regard, sales of higher gross profit margin brands, including "Cooks," "Manischewitz" and "Marcus James" increased as a percentage of the company's net sales.
 The 11.8 percent increase in net sales for first quarter 1993 as compared with first quarter 1992 principally resulted from two factors: 1) the inclusion during first quarter 1993 of an additional month of sales of product lines acquired from Guild and 2) to higher sales of products under brands acquired from Guild. During October and November 1992 as compared to October and November 1991, net sales and unit volume of products under brands acquired from Guild increased 26.5 percent and 7.7 percent, respectively. First quarter 1992 had no sales of product lines acquired from Guild for the month of September 1991 because the acquisition of the assets of Guild closed on Oct. 1, 1991.
 Net sales of the company in first quarter 1993, exclusive of sales of product lines acquired from Guild for the month of September 1992, increased 4.3 percent when compared to first quarter 1992. This increase resulted from an increase in net sales of the company's branded wine products of .6 percent and an increase in sales of the company's other products. The increase of .6 percent in net sales of the company's branded wine products occurred, despite an overall decline in unit volume, as a result of higher prices of certain brands and a favorable change in product mix. In this regard, sales of higher priced brands, including "Cook's," "Manischewitz" and "Marcus James" increased as a percentage of the company's net sales. Unit volume of the company's branded wine products, exclusive of September 1992 sales of products under brands acquired from Guild, declined 8.8 percent principally as a result of lower dessert wine sales. The company believes that its lower dessert wine sales may be attributable to several factors including price increases.
 Marvin Sands, chairman of the board, said, "We are very pleased with our record results and shall continue to focus on internal growth while pursuing appropriate acquisition opportunities as they become available."
 Canandaigua Wine Company, Inc. is the third largest wine producer in the United States. The company owns and operates 11 wineries in New York, California and South Carolina. Its principal brands include "Wild Irish Rose," "Cook's," "Cisco," "Manischewitz," "J. Roget," "Cribari," "Marcus James," "Widmer," "Mateus" and "Dunnewood."
 CONDENSED CONSOLIDATED STATEMENT OF INCOME
 THREE MONTHS ENDED NOVEMBER 30
 1992 1991
 Unaudited Unaudited
 NET SALES 71,108,757 63,580,026
 COST OF PRODUCT SOLD (49,571,752) (45,745,731)
 GROSS PROFIT MARGIN 21,537,005 17,834,295
 SELLING, GENERAL &
 ADMINISTRATIVE EXPENSES (14,321,643) (12,349,519)
 Operating income 7,215,362 5,484,776
 NET INTEREST EXPENSE (1,402,958) (1,659,960)
 Income before provision
 for income taxes 5,812,404 3,824,816
 PROVISION FOR FEDERAL AND STATE
 INCOME TAXES (2,208,700) (1,415,200)
 NET INCOME $3,603,704 $2,409,616
 PRIMARY NET INCOME PER SHARE $.31 $.26(A)
 FULLY DILUTED EARNINGS PER SHARE(B) $.28 $.25
 (A) -- The company previously reported basic net income per share for this period of $.27, as adjusted to give effect to a three-for-two stock split of both classes of common stock which became effective on July 20, 1992. The effect of considering common stock equivalents was not significant, therefore, basic net income per share was used.
 (B) -- Fully diluted earnings per share take into account the effect of the assumed conversion of the company's convertible debentures and other common stock equivalents.
 CANANDAIGUA WINE COMPANY, INC. AND SUBSIDIARIES
 CONDENSED CONSOLIDATED BALANCE SHEETS
 NOVEMBER 30, AUGUST 31,
 1992 1992
 (UNAUDITED) (AUDITED)
 ASSETS
 Cash and Short Term Investments $1,232,059 $2,193,543
 Accounts Receivable 44,575,621 33,768,893
 Inventories 109,006,179 92,694,401
 Prepaid Expenses and Other
 Current Assets 3,125,036 5,427,052
 Total Current Assets $157,938,895 $134,083,889
 Net Property, Plant and Equipment 72,503,521 72,569,542
 Other Assets 11,136,366 11,181,799
 Total Assets $241,578,782 $217,835,230
 LIABILITIES AND STOCKHOLDERS' EQUITY
 Current Portion of Long-Term Debt $265,181 $265,181
 Notes Payable - Banks 35,000,000 0
 Accounts Payable 23,547,518 40,702,691
 Accrued Liabilities 8,463,836 8,386,029
 Accrued Income Taxes 3,139,194 957,423
 Deferred Income Taxes 1,880,100 1,880,100
 Total Current Liabilities $72,295,829 $52,191,424
 Long-Term Debt 61,894,323 61,909,155
 Deferred Income Taxes 7,849,814 7,849,814
 Other Liabilities 335,783 335,783
 Stockholders' Equity 107,036,497 103,394,953
 Less-Treasury Stock 7,833,464 7,845,899
 Net Stockholders' Equity 99,203,033 95,549,054
 Total Liabilities and
 Stockholders' Equity $241,578,782 $217,835,230
 -0- 1/13/93
 /CONTACT: Lynn Fetterman, vice president of finance for Canandaigua Wine Company, Inc., 716-394-7900; or Beverly Jedynak of Martin E. Janis & Company, Inc. Public Relations, 312-943-1100, for Canandaigua Wine Company, Inc./
 (WINE)


CO: Canandaigua Wine Company, Inc. ST: New York IN: FOD SU: ERN

KK -- CL003 -- 4382 01/13/93 10:11 EST
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Date:Jan 13, 1993
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