Chalone Wine Group Announces Record Third Quarter Profits.Business Editors/Food &Wine Writers NAPA, Calif.--(BUSINESS WIRE)--Feb. 1, 2000 Chalone chalone /chal·one/ (kal´on) a group of tissue-specific water-soluble substances that are produced within a tissue and that inhibit mitosis of cells of that tissue and whose action is reversible. Wine Group, Ltd. (Nasdaq:CHLN) President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Thomas B. Selfridge announced record profits of $1.669 million and $3.609 million for the three-month and nine-month periods ended December 31, 1999, increases of 23 percent and 18 percent, respectively, over the same periods last year. Gross revenue increased $3.8 million and $7.4 million for the three-month and nine-month periods ended December 31, 1999, or 30 percent and 23 percent, respectively, when compared to the same periods last year. Gross profits, as a percentage of sales for the nine months ended December 31, 1999, continued to increase and represent 46.6 percent of gross revenue as compared to 45.3 percent for the same period of the prior year. For the nine-month period ended December 31, 1999, diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of increased by nine percent, from $0.35 to $0.38, over the prior nine month period, in spite of a seven percent increase in average outstanding shares, due primarily to the conversion of convertible debt in April 1999. &uot;We continue to be pleased with the growth of all our brands,&uot; said Selfridge. &uot;During the past nine-month period, we realized an average of $120 per case on sales of 335,000 cases. This is a company record high average case price for this volume.&uot; Chalone Wine Group, Ltd. (the &uot;Company&uot;) is a Napa-based company specializing in premium white and red varietal wines Noun 1. varietal wine - a wine made principally from one grape and carrying the name of that grape varietal vino, wine - fermented juice (of grapes especially) . In California, the Company owns and operates Chalone Vineyard Chalone Vineyard is located in the Chalone AVA south of San Francisco, California, United States, on an unusual geological formation called the Gavilan benchland. The soil is rich in limestone and calcium carbonate and also contains a significant amount of decomposed granite. (R) in Monterey County, Acacia acacia (əkā`shə), any plant of the large leguminous genus Acacia, often thorny shrubs and trees of the family Leguminosae (pulse family). (TM) 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 in the Carneros District of Napa County and Carmenet(R) 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. in Sonoma County. In conjunction with its 50 percent joint-venture partner, Paragon Vineyard Co., the Company also owns and operates Edna Valley Vineyard(R) in San Luis Obispo San Luis Obispo (săn l  `ĭs ōbĭs`pō), city (1990 pop. 41,958), seat of San Luis Obispo co., S Calif., near San Luis Obispo Bay; inc. 1856. County. Additionally, the Company produces and markets wines of Central
Coast appellation ap·pel·la·tion n. 1. A name, title, or designation. 2. A protected name under which a wine may be sold, indicating that the grapes used are of a specific kind from a specific district. 3. The act of naming. under the brand name Echelon Vineyards(TM). In the state of Washington, the Company owns and operates Sagelands Winery(TM) (formerly Staton Hills) and is a 50.5 percent managing partner in Canoe Ridge Vineyard(R). In the Bordeaux region of France, the Company owns 23.5 percent of the fourth-growth estate of Chateau Duhart-Milon, in partnership with Domaines Barons de Rothschild (Lafite) which owns the other 76.5 percent. Chalone Wine Group financial results below are in thousands of US dollars:
Three months ended Nine months ended
December 31, December 31,
------------------ -----------------
1999 1998 1999 1998
-------- -------- -------- --------
Gross revenues $ 16,361 $ 12,573 $ 40,366 $ 32,949
Excise taxes (424) (401) (1,013) (852)
-------- -------- -------- --------
Net revenues 15,937 12,172 39,353 32,097
Cost of wines sold (8,468) (6,565) (21,034) (17,567)
-------- -------- -------- --------
Gross profit 7,469 5,607 18,319 14,530
Other revenues from operations 9 43 62 66
Selling, general and
administrative expenses (3,826) (2,703) (10,271) (7,849)
-------- -------- -------- --------
Operating income 3,652 2,947 8,110 6,747
Interest expense (674) (439) (1,766) (1,281)
Equity in Chateau Duhart-Milon 168 187 698 718
Minority interests (338) (432) (967) (1,007)
Other, net 20 25 41 (11)
-------- -------- -------- --------
Income before income taxes 2,828 2,288 6,116 5,166
Income taxes (1,159) (936) (2,507) (2,117)
-------- -------- -------- --------
Net income $ 1,669 $ 1,352 $ 3,609 $ 3,049
======== ======== ======== ========
Diluted earnings per share $ 0.18 $ 0.16 $ 0.38 $ 0.35
Average outstanding number of
shares 9,511 8,718 9,451 8,828
From time-to-time, information provided by the Company, statements made by its employees, or information included in its filings with the Securities and Exchange Commission as well as its statements to the press (including this earnings release) may contain statements which are not historical facts, so called &uot;forward looking statements&uot; that involve risks and uncertainties. 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. are made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. The terms &uot;anticipates,&uot; &uot;expects,&uot; &uot;estimates,&uot; &uot;intends,&uot; &uot;believes,&uot; and other similar terms as they relate to the Company or its management are intended to identify such forward looking statements. Factors that may cause such differences include, but are not limited to: (i) future weather and general farming conditions affecting annual harvest quantity as well as quality; (ii) variations in market taste as well as demand; (iii) changes in the wine industry regulatory environment; (iv) changes in world-wide supply and demand of 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]. and wine. Each of the factors, and others, are discussed from time to time in the Company's filings with the Securities and Exchange Commission including the Company's annual report on 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 March 31, 1999. |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion