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