Robert Mondavi Reports Record Third Quarter Earnings
Apr 19, 2001, 01:00 ET from Robert Mondavi Corporation
OAKVILLE, Calif., April 19 /PRNewswire/ --
The Robert Mondavi Corporation (Nasdaq: MOND) today announced results for its
third quarter ended March 31, 2001.
Adjusted net income for the quarter grew 17 percent to $10.0 million, or
$0.61 per diluted share, compared to $8.5 million, or $0.53 per diluted share,
a year ago. Net revenues for the quarter increased by 19 percent over the
same period last year to $118.0 million, driven by a 10 percent increase in
sales volume and an 8 percent increase in net revenues per case. The pricing
improvement was due partly to price increases taken on the company's
Woodbridge brand in January.
Adjusted net income for the first nine months of the fiscal year increased
18 percent to $36.6 million, or $2.24 per diluted share, from $30.9 million,
or $1.93 per diluted share, a year ago. Net revenues for the first
nine months of the fiscal year increased 20 percent over the same period last
year to $363.6 million, reflecting a 16 percent increase in sales volume and a
3 percent increase in net revenues per case.
Adjusted net income excludes inventory step-up associated with purchase
accounting, resulting from the company's acquisition of Arrowood Vineyards and
Winery and of a minority investment in Ornellaia. For a further explanation
of inventory step-up see footnote (1). Adjusted net income also excludes a
net gain, primarily related to the sale of vineyards in fiscal 2000.
"We are pleased with the progress we made during the quarter on improving
the margins of our core brands while growing shipments by 10 percent,"
reported R. Michael Mondavi, President and CEO. Case sales in U.S. food
stores of all of the company's brands combined for the 13 weeks ended
March 17, 2001 increased 9 percent over the same period last year, according
to ACNielsen/Adams Business Research. Subsequent to the Nielsen reporting
period, the company resumed national television advertising for its Woodbridge
brand based on strong consumer response to a similar advertising campaign that
ran during the fall 2000.
R. Michael Mondavi will host a conference call to discuss the quarter's
results on Thursday, April 19, 2001 at 7:30 a.m. PDT. A live listen-only
webcast of the conference call will be available at www.robertmondavi.com
under "Investor Relations." On July 26, 2001, a conference call and live
webcast are scheduled to discuss the company's fiscal 2001 fourth quarter and
fiscal year earnings.
Robert Mondavi produces and markets fine wines under the following labels:
Robert Mondavi Winery, Robert Mondavi Coastal, La Famiglia di Robert Mondavi
and Colmera, Woodbridge Winery, Byron Vineyards & Winery, Io, Arrowood
Vineyards & Winery and Vichon Mediterranean. The company also produces Opus
One, in partnership with the Baroness Philippine de Rothschild of Chateau
Mouton Rothschild of Bordeaux, France; Luce, Lucente and Danzante in
partnership with the Marchesi de' Frescobaldi of Tuscany, Italy; and Sena,
Arboleda and Caliterra, in partnership with the Eduardo Chadwick family of
Vina Errazuriz in Chile. The company has a minority interest in Tenuta
dell'Ornellaia, a famous estate in the Bolgheri appellation of Tuscany,
producer of Ornellaia and Masseto. Robert Mondavi recently signed a letter of
intent to form a 50/50 joint venture company with Rosemount Estates Pty. Ltd.
of Australia to produce and market new Australian and California wines
worldwide.
(1) Under purchase accounting, the purchase price is allocated to the
assets and liabilities of the acquired company based on their estimated fair
market values at the time of the transaction. When the inventory acquired is
sold in the normal course of business, costs of the inventory are charged to
cost of goods sold, including the amount of the inventory step-up (the
difference between the original book value of the inventory and the fair
market value of the inventory upon acquisition). The inventory step-up
adjustment reduces the company's reported net income.
ROBERT MONDAVI
FINANCIAL HIGHLIGHTS
(In thousands, except per share data)
Three Months Ended March 31,
Adjusted (A) As Reported
2001 2000 2001 2000
Cases sold 2,275 2,074 2,275 2,074
Net revenues $117,989 $99,409 $117,989 $99,409
Cost of goods sold 59,771 53,391 60,571 53,391
Gross profit 58,218 46,018 57,418 46,018
Gross profit % 49.3% 46.3% 48.7% 46.3%
Operating expenses 37,074 28,701 37,074 28,701
Operating income 21,144 17,317 20,344 17,317
Other income (expense):
Interest (6,187) (4,577) (6,187) (4,577)
Other 1,317 1,115 300 770
Income before income
taxes 16,274 13,855 14,457 13,510
Provision for income
taxes 6,265 5,334 5,566 5,201
Net income 10,009 8,521 8,891 8,309
Weighted average number
of shares outstanding
Diluted - 16,428 16,039 16,428 16,039
Earnings per share
Diluted - $ .61 $ .53 $ .54 $ .52
EBIT $ 22,461 $18,432 $ 20,644 $ 18,087
EBIT % 19.0% 18.5% 17.5% 18.2%
Nine Months Ended March 31,
Adjusted (A) As Reported
2001 2000 2001 2000
Cases sold 7,196 6,192 7,196 6,192
Net revenues $ 363,649 $ 302,471 $ 363,649 $ 302,471
Cost of goods sold 190,117 161,896 193,417 161,896
Gross profit 173,532 140,575 170,232 140,575
Gross profit % 47.7% 46.5% 46.8% 46.5%
Operating expenses 107,822 85,600 107,822 85,600
Operating income 65,710 54,975 62,410 54,975
Other income (expense):
Interest (15,425) (11,248) (15,425) ( 11,248)
Other 9,167 6,450 6,480 8,626
Income before income
taxes 59,452 50,177 53,465 52,353
Provision for income
taxes 22,888 19,317 20,584 20,156
Net income 36,564 30,860 32,881 32,197
Weighted average number
of shares outstanding
Diluted - 16,288 15,998 16,288 15,998
Earnings per share
Diluted - $ 2.24 $ 1.93 $ 2.02 $ 2.01
EBIT $74,877 $61,425 $68,890 $63,601
EBIT % 20.6% 20.3% 18.9% 21.0%
FINANCIAL HIGHLIGHTS
March 31, 2001
(In thousands)
At 03/31/01 At 6/30/00
Current assets $491,894 $383,482
Total assets 873,388 734,943
Current liabilities 120,155 75,410
Total liabilities 482,139 386,775
Shareholders' equity 391,249 348,168
Working capital 371,739 308,072
Total debt 391,524 310,592
(A) Adjusted figures exclude inventory step-up associated with purchase
accounting, as well as a net gain primarily related to the sale of vineyards
recorded last fiscal year.
Forward-looking Statements
This announcement and other information provided from time to time by the
Company contain historical information as well as forward-looking statements
about the Company, the premium wine industry and general business and economic
conditions. Such forward-looking statements include, for example, projections
or predictions about the Company's future growth, consumer demand for its
wines, including new brands and brand extensions, margin trends, the premium
wine grape market, the Company's anticipated future investment in vineyards
and other capital projects. Actual results may differ materially from the
Company's present expectations. Among other things, reduced consumer spending
or a change in consumer preferences could reduce demand for the Company's
wines. Similarly, competition from numerous domestic and foreign vintners
could affect the Company's ability to sustain volume and revenue growth. The
price of grapes, the Company's single largest product cost, is beyond the
Company's control and higher grape costs may put more pressure on the
Company's gross profit margin than is currently forecast. Interest rates and
other business and economic conditions could increase significantly the cost
and risks of projected capital spending. For additional cautionary statements
identifying important factors that could cause actual results to differ
materially from such forward-looking information, please refer to Item 7,
"Management's Discussion and Analysis of Financial Condition and Results of
Operations," in the Company's Annual Report on Form 10-K for the fiscal year
ended June 30, 2000, on file with the Securities and Exchange Commission. For
these and other reasons, no forward-looking statement by the Company can nor
should be taken as a guarantee of what will happen in the future.
SOURCE Robert Mondavi Corporation
OAKVILLE, Calif., April 19 /PRNewswire/ --
The Robert Mondavi Corporation (Nasdaq: MOND) today announced results for its
third quarter ended March 31, 2001.
Adjusted net income for the quarter grew 17 percent to $10.0 million, or
$0.61 per diluted share, compared to $8.5 million, or $0.53 per diluted share,
a year ago. Net revenues for the quarter increased by 19 percent over the
same period last year to $118.0 million, driven by a 10 percent increase in
sales volume and an 8 percent increase in net revenues per case. The pricing
improvement was due partly to price increases taken on the company's
Woodbridge brand in January.
Adjusted net income for the first nine months of the fiscal year increased
18 percent to $36.6 million, or $2.24 per diluted share, from $30.9 million,
or $1.93 per diluted share, a year ago. Net revenues for the first
nine months of the fiscal year increased 20 percent over the same period last
year to $363.6 million, reflecting a 16 percent increase in sales volume and a
3 percent increase in net revenues per case.
Adjusted net income excludes inventory step-up associated with purchase
accounting, resulting from the company's acquisition of Arrowood Vineyards and
Winery and of a minority investment in Ornellaia. For a further explanation
of inventory step-up see footnote (1). Adjusted net income also excludes a
net gain, primarily related to the sale of vineyards in fiscal 2000.
"We are pleased with the progress we made during the quarter on improving
the margins of our core brands while growing shipments by 10 percent,"
reported R. Michael Mondavi, President and CEO. Case sales in U.S. food
stores of all of the company's brands combined for the 13 weeks ended
March 17, 2001 increased 9 percent over the same period last year, according
to ACNielsen/Adams Business Research. Subsequent to the Nielsen reporting
period, the company resumed national television advertising for its Woodbridge
brand based on strong consumer response to a similar advertising campaign that
ran during the fall 2000.
R. Michael Mondavi will host a conference call to discuss the quarter's
results on Thursday, April 19, 2001 at 7:30 a.m. PDT. A live listen-only
webcast of the conference call will be available at www.robertmondavi.com
under "Investor Relations." On July 26, 2001, a conference call and live
webcast are scheduled to discuss the company's fiscal 2001 fourth quarter and
fiscal year earnings.
Robert Mondavi produces and markets fine wines under the following labels:
Robert Mondavi Winery, Robert Mondavi Coastal, La Famiglia di Robert Mondavi
and Colmera, Woodbridge Winery, Byron Vineyards & Winery, Io, Arrowood
Vineyards & Winery and Vichon Mediterranean. The company also produces Opus
One, in partnership with the Baroness Philippine de Rothschild of Chateau
Mouton Rothschild of Bordeaux, France; Luce, Lucente and Danzante in
partnership with the Marchesi de' Frescobaldi of Tuscany, Italy; and Sena,
Arboleda and Caliterra, in partnership with the Eduardo Chadwick family of
Vina Errazuriz in Chile. The company has a minority interest in Tenuta
dell'Ornellaia, a famous estate in the Bolgheri appellation of Tuscany,
producer of Ornellaia and Masseto. Robert Mondavi recently signed a letter of
intent to form a 50/50 joint venture company with Rosemount Estates Pty. Ltd.
of Australia to produce and market new Australian and California wines
worldwide.
(1) Under purchase accounting, the purchase price is allocated to the
assets and liabilities of the acquired company based on their estimated fair
market values at the time of the transaction. When the inventory acquired is
sold in the normal course of business, costs of the inventory are charged to
cost of goods sold, including the amount of the inventory step-up (the
difference between the original book value of the inventory and the fair
market value of the inventory upon acquisition). The inventory step-up
adjustment reduces the company's reported net income.
ROBERT MONDAVI
FINANCIAL HIGHLIGHTS
(In thousands, except per share data)
Three Months Ended March 31,
Adjusted (A) As Reported
2001 2000 2001 2000
Cases sold 2,275 2,074 2,275 2,074
Net revenues $117,989 $99,409 $117,989 $99,409
Cost of goods sold 59,771 53,391 60,571 53,391
Gross profit 58,218 46,018 57,418 46,018
Gross profit % 49.3% 46.3% 48.7% 46.3%
Operating expenses 37,074 28,701 37,074 28,701
Operating income 21,144 17,317 20,344 17,317
Other income (expense):
Interest (6,187) (4,577) (6,187) (4,577)
Other 1,317 1,115 300 770
Income before income
taxes 16,274 13,855 14,457 13,510
Provision for income
taxes 6,265 5,334 5,566 5,201
Net income 10,009 8,521 8,891 8,309
Weighted average number
of shares outstanding
Diluted - 16,428 16,039 16,428 16,039
Earnings per share
Diluted - $ .61 $ .53 $ .54 $ .52
EBIT $ 22,461 $18,432 $ 20,644 $ 18,087
EBIT % 19.0% 18.5% 17.5% 18.2%
Nine Months Ended March 31,
Adjusted (A) As Reported
2001 2000 2001 2000
Cases sold 7,196 6,192 7,196 6,192
Net revenues $ 363,649 $ 302,471 $ 363,649 $ 302,471
Cost of goods sold 190,117 161,896 193,417 161,896
Gross profit 173,532 140,575 170,232 140,575
Gross profit % 47.7% 46.5% 46.8% 46.5%
Operating expenses 107,822 85,600 107,822 85,600
Operating income 65,710 54,975 62,410 54,975
Other income (expense):
Interest (15,425) (11,248) (15,425) ( 11,248)
Other 9,167 6,450 6,480 8,626
Income before income
taxes 59,452 50,177 53,465 52,353
Provision for income
taxes 22,888 19,317 20,584 20,156
Net income 36,564 30,860 32,881 32,197
Weighted average number
of shares outstanding
Diluted - 16,288 15,998 16,288 15,998
Earnings per share
Diluted - $ 2.24 $ 1.93 $ 2.02 $ 2.01
EBIT $74,877 $61,425 $68,890 $63,601
EBIT % 20.6% 20.3% 18.9% 21.0%
FINANCIAL HIGHLIGHTS
March 31, 2001
(In thousands)
At 03/31/01 At 6/30/00
Current assets $491,894 $383,482
Total assets 873,388 734,943
Current liabilities 120,155 75,410
Total liabilities 482,139 386,775
Shareholders' equity 391,249 348,168
Working capital 371,739 308,072
Total debt 391,524 310,592
(A) Adjusted figures exclude inventory step-up associated with purchase
accounting, as well as a net gain primarily related to the sale of vineyards
recorded last fiscal year.
Forward-looking Statements
This announcement and other information provided from time to time by the
Company contain historical information as well as forward-looking statements
about the Company, the premium wine industry and general business and economic
conditions. Such forward-looking statements include, for example, projections
or predictions about the Company's future growth, consumer demand for its
wines, including new brands and brand extensions, margin trends, the premium
wine grape market, the Company's anticipated future investment in vineyards
and other capital projects. Actual results may differ materially from the
Company's present expectations. Among other things, reduced consumer spending
or a change in consumer preferences could reduce demand for the Company's
wines. Similarly, competition from numerous domestic and foreign vintners
could affect the Company's ability to sustain volume and revenue growth. The
price of grapes, the Company's single largest product cost, is beyond the
Company's control and higher grape costs may put more pressure on the
Company's gross profit margin than is currently forecast. Interest rates and
other business and economic conditions could increase significantly the cost
and risks of projected capital spending. For additional cautionary statements
identifying important factors that could cause actual results to differ
materially from such forward-looking information, please refer to Item 7,
"Management's Discussion and Analysis of Financial Condition and Results of
Operations," in the Company's Annual Report on Form 10-K for the fiscal year
ended June 30, 2000, on file with the Securities and Exchange Commission. For
these and other reasons, no forward-looking statement by the Company can nor
should be taken as a guarantee of what will happen in the future.
SOURCE Robert Mondavi Corporation
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