Constellation Brands Reports Q2 Fiscal 2011 Results
(Thomson Reuters ONE) -
* Achieves comparable basis diluted EPS of $0.52 and reported basis diluted
EPS of $0.43
* Solid underlying organic performance driven by execution of U.S. go-to-
market strategy
* Strong free cash flow results drive upward revision to annual guidance; new
target range set at record $375-$425 million
* Utilizes free cash flow to further reduce debt
* Reaffirms fiscal 2011 comparable basis diluted EPS guidance; updates
reported basis diluted EPS guidance
VICTOR, N.Y., Oct. 6, 2010 - Constellation Brands, Inc. (NYSE: STZ, ASX: CBR),
the world's leading wine company, reported today its second quarter fiscal 2011
results.
+------------------------------------------------------------------------------+
|Second Quarter 2011 Financial Highlights* |
|(in millions, except per share data) |
| |
| |
| |
| Comparable % Change Reported % Change|
| |
|Consolidated net sales $863 -2% $863 -2%|
| |
| |
| |
|Operating income $151 -11% $133 -5%|
| |
| |
| |
|Operating margin 17.4% -190 bps 15.4% -60 bps|
| |
| |
| |
|Equity in earnings of equity method $67 -9% $66 -9%|
|investees** |
| |
| |
| |
|Earnings before interest and taxes $217 -10% NA NA|
|(EBIT) |
| |
| |
| |
|Net income $109 -9% $91 -8%|
| |
| |
| |
|Diluted earnings per share $0.52 -4% $0.43 -4%|
| |
| |
+------------------------------------------------------------------------------+
"Our second quarter results demonstrate that we are gaining momentum from the
successful execution of our U.S. distributor strategy," said Rob Sands,
president and chief executive officer, Constellation Brands. "During the
quarter, we experienced improving U.S. wine depletion trends and retail
execution despite an uncertain consumer and competitive environment. Our brand
investments and promotional activities are helping to fuel growth in the
marketplace for our core brands including Robert Mondavi, Kim Crawford, Clos du
Bois and Blackstone, just to name a few."
+------------------------------------------------------------------------------+
|Second Quarter 2011 Net Sales Highlights* |
|(in millions) |
| |
| Reported Organic |
| | |
| Constant| Constant Currency|
| Net Currency| Net Change|
| Sales % Change Change|Sales % Change |
| | |
|Consolidated $863 -2% -2%| $863 3% 2%|
| | |
|Wine $808 -1% -1%| $808 4% 4%|
| | |
|North America Wine $601 5% 4%| $601 5% 4%|
| | |
|Australia and Europe $207 -14% -12%| $207 1% 4%|
|Wine | |
| | |
|Spirits $55 -15% -15%| $55 -15% -15%|
+---------------------------------------------+--------------------------------+
*Definitions of reported, comparable, organic and constant currency, as well as
reconciliations of non-GAAP financial measures, are contained elsewhere in this
news release.
** Hereafter referred to as "equity earnings."
NA=Not applicable
Net Sales Commentary
Reported consolidated net sales decreased two percent due primarily to the
divestiture of the U.K. cider business. Organic net sales on a constant currency
basis increased two percent.
Consolidated wine organic net sales on a constant currency basis increased four
percent. North America wine net sales on a constant currency basis increased
four percent primarily reflecting favorable product mix and an increase in
volume, partially offset by higher promotion costs. The increase in shipments
resulted in higher distributor inventory levels. "However, Constellation's
underlying retail takeaway as measured by SymphonyIRI was strong during the
quarter with value growth of seven percent versus five percent for the industry
in the 12-week period ending Sept. 5, 2010," said Sands.
Australia and Europe wine net sales on an organic constant currency basis
increased four percent versus the prior year second quarter.
Total spirits organic net sales decreased 15 percent for the quarter. "Our
second quarter spirits net sales results do not reflect the robust underlying
market performance for SVEDKA Vodka with depletions growing double digits
through the first half of the year," said Sands. "Last year's second quarter
SVEDKA net sales increased approximately 90 percent driven by U.S. distributor
transition activities, which created a difficult comparison."
Operating Income and Net Income Commentary
The consolidated comparable basis operating income decline was primarily driven
by an increase in corporate expense and a decrease in the Australia and Europe
wine segment due in part to the divestiture of the cider business.
Constellation's equity earnings from its 50 percent interest in the Crown
Imports joint venture totaled $65 million, a decrease of 10 percent from the
prior year second quarter. For second quarter 2011, Crown generated net sales
of $679 million, a decrease of 2 percent, and operating income of $131 million,
a decrease of 9 percent. Net sales for Crown were impacted primarily by lower
volume, higher promotions and unfavorable mix. Operating income for Crown
decreased primarily due to promotional investments, a contractual product cost
increase and lower volume.
"Throughout the summer selling season, Crown's sales volumes lagged depletions
due to temporary wholesaler inventory reductions resulting from disruption
related to a brewery strike in Mexico and Hurricane Alex," said Sands. "However,
consumer demand for Crown's products remained solid for the second consecutive
quarter driven by the 'Win the Beach' and World Cup Soccer promotional
initiatives. Crown is targeting to build on this consumer momentum with new
advertising programs during the NFL season."
For second quarter 2011, pre-tax restructuring charges and unusual items totaled
$17 million compared to $29 million for the prior year second quarter.
Interest expense totaled $50 million, a decrease of 26 percent. The decrease was
primarily due to lower average interest rates and borrowings during the quarter.
The comparable basis effective tax rate for the quarter was 35 percent compared
to 31 percent for the prior year second quarter. The company continues to
anticipate a full year comparable basis effective tax rate of 35 percent.
Common Stock Repurchase
On April 16, 2010, the company entered into a $300 million accelerated stock
buyback (ASB) transaction. During the first quarter, the company received 13.8
million shares of Class A Common Stock, representing the minimum number of
shares that will be received under the ASB transaction. The company did not
receive any additional shares in connection with this transaction during the
second quarter. The final number of shares to be received under the ASB
transaction will be determined at the close of the transaction, which is
scheduled to end no later than Nov. 24, 2010.
"The company has increased its fiscal 2011 free cash flow target to a record
level in the range of $375-$425 million," said Bob Ryder, chief financial
officer, Constellation Brands. "Our strong free cash flow generation for the
first half of fiscal 2011 reflects our increasing focus on improving the
conversion of EBITDA to free cash flow. Our plan for the remainder of the year
is to utilize our free cash flow to pay down debt."
Summary
"While some uncertainty remains in global markets, we are focused on building a
stronger business for the future," said Sands. "We have demonstrated this during
the second quarter by generating strong free cash flow, paying down debt and
driving profitable organic growth."
Outlook
The table below sets forth management's current diluted EPS expectations for
fiscal year 2011 compared to fiscal year 2010 actual results, both on a reported
basis and a comparable basis.
Constellation Brands Fiscal Year 2011
Diluted Earnings Per Share Outlook
+--------------------------+-----------------------+-------------------------+
| | Reported Basis | Comparable Basis |
| +-----------+-----------+-------------+-----------+
| | FY11 |FY10 Actual|FY11 Estimate|FY10 Actual|
| | Estimate | | | |
+--------------------------+-----------+-----------+-------------+-----------+
|Fiscal Year Ending Feb. 28| | | | |
| |$1.36-$1.51| $0.45 |$1.63 - $1.78| $1.69 |
+--------------------------+-----------+-----------+-------------+-----------+
Full-year fiscal 2011 guidance includes the following current assumptions:
* Interest expense: approximately $200 - $210 million
* Tax rate: approximately 40 percent on a reported basis, as compared to 35
percent on a comparable basis, primarily due to a provision of five
percentage points associated with the recognition in first quarter 2011 of a
valuation allowance against deferred tax assets in the U.K.
* Weighted average diluted shares outstanding: approximately 213 million
* Free cash flow: $375-$425 million
Conference Call
A conference call to discuss second quarter fiscal 2011 results and outlook will
be hosted by President and Chief Executive Officer Rob Sands and Executive Vice
President and Chief Financial Officer Bob Ryder on Wed. Oct. 6, 2010 at 10:30
a.m. (eastern). The conference call can be accessed by dialing +973-935-8505
beginning 10 minutes prior to the start of the call. A live listen-only webcast
of the conference call, together with a copy of this news release (including the
attachments) and other financial information that may be discussed in the call
will be available on the Internet at Constellation's Web site: www.cbrands.com
under "Investors," prior to the call.
Explanations
Reported basis ("reported") operating income, net income and diluted EPS are as
reported under generally accepted accounting principles. Operating income, net
income and diluted EPS on a comparable basis ("comparable"), exclude
restructuring charges and unusual items. The company's measure of segment
profitability excludes restructuring charges and unusual items, which is
consistent with the measure used by management to evaluate results.
The company discusses additional non-GAAP measures in this news release,
including constant currency net sales, organic net sales, comparable basis EBIT
and free cash flow.
Tables reconciling non-GAAP measures, together with definitions of these
measures and the reasons management uses these measures, are included in this
news release.
About Constellation Brands
Constellation Brands is the world's leading wine company that achieves success
through
an unmatched knowledge of wine consumers, storied brands that suit varied lives
and tastes, and
talented employees worldwide. With a broad portfolio of widely admired premium
products across the wine, beer and spirits categories, Constellation's brand
portfolio includes Robert Mondavi, Hardys, Clos du Bois, Blackstone, Arbor Mist,
Estancia, Ravenswood, Jackson-Triggs, Kim Crawford, Corona Extra, Black Velvet
Canadian Whisky and SVEDKA Vodka.
Constellation Brands (NYSE: STZ and STZ.B; ASX: CBR) is an S&P 500 Index and
Fortune 1000® company with more than 100 brands in our portfolio, sales in about
150 countries and operations at more than 40 facilities. The company believes
that industry leadership involves a commitment to our brands, to the trade, to
the land, to investors and to different people around the world who turn to our
products when celebrating big moments or enjoying quiet ones. We express this
commitment through our vision: to elevate life with every glass raised. To learn
more about Constellation, visit the company's web site at www.cbrands.com.
Forward-Looking Statements
The statements made under the heading Outlook, and all statements other than
statements of historical facts set forth in this news release regarding
Constellation's business strategy, future operations, financial position,
estimated revenues, projected costs, prospects, plans and objectives of
management, as well as information concerning expected actions of third parties,
are forward-looking statements (collectively, the "Projections") that involve
risks and uncertainties that could cause actual results to differ materially
from those set forth in or implied by the Projections.
During the current quarter, Constellation may reiterate the Projections. Prior
to the start of the company's quiet period, which will begin at the close of
business on Nov. 30, 2010, the public can continue to rely on the Projections as
still being Constellation's current expectations on the matters covered, unless
Constellation publishes a notice stating otherwise. During Constellation's
"quiet period," the Projections should not be considered to constitute the
company's expectations and should be considered historical, speaking as of prior
to the quiet period only and not subject to update by the company.
The Projections are based on management's current expectations and, unless
otherwise noted, do not take into account the impact of any future acquisition,
merger or any other business combination, divestiture, restructuring or other
strategic business realignments, financing or share repurchase that may be
completed after the date of this release. The Projections should not be
construed in any manner as a guarantee that such results will in fact occur.
In addition to the risks and uncertainties of ordinary business operations, the
Projections of the company contained in this news release are subject to a
number of risks and uncertainties, including:
* completion of various portfolio actions; implementation of consolidation
activities and actual U.S. distributor transition experience;
* fluctuations in the volume weighted average price of the Company's Class A
Common Stock during the remainder of the calculation period under the ASB
transaction;
* actual date of the termination of the calculation period under the ASB
transaction;
* final number of shares of Class A Common Stock received as a result of the
ASB transaction;
* achievement of all expected cost savings from the company's various
restructuring plans and realization of expected asset sale proceeds from the
sale of inventory and other assets;
* accuracy of the bases for forecasts relating to joint ventures and
associated costs, losses and capital investment requirements;
* restructuring charges, acquisition-related integration costs and other one-
time costs associated with integration and restructuring plans may vary
materially from management's current estimates due to variations in one or
more of anticipated headcount reductions, contract terminations, costs or
timing of plan implementation;
* raw material supply, production or shipment difficulties could adversely
affect the company's ability to supply its customers;
* increased competitive activities in the form of pricing, advertising and
promotions could adversely impact consumer demand for the company's products
and/or result in lower than expected sales or higher than expected expenses;
* general economic, geo-political and regulatory conditions, prolonged
downturn in the economic markets in the U.S. and in the company's major
markets outside of the U.S., continuing instability in world financial
markets, or unanticipated environmental liabilities and costs;
* changes to accounting rules and tax laws, and other factors which could
impact the company's reported financial position or effective tax rate;
* changes in interest rates and the inherent unpredictability of currency
fluctuations, commodity prices and raw material costs; and
* other factors and uncertainties disclosed in the company's filings with the
Securities and Exchange Commission, including its Annual Report on Form 10-K
for the fiscal year ended Feb. 28, 2010, which could cause actual future
performance to differ from current expectations.
CONTACTS
Media
Angie Blackwell - 585-678-7141
Cheryl Gossin - 585-678-7191
Investor Relations
Patty Yahn-Urlaub - 585-678-7483
Bob Czudak - 585-678-7170
Constellation Brands, Inc. and Subsidiaries
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions)
August 31, February 28,
2010 2010
Assets
Current Assets:
Cash and cash investments $ 13.9 $ 43.5
Accounts receivable, net 720.7 514.7
Inventories 1,722.4 1,879.9
Prepaid expenses and other 103.0 151.0
Total current assets 2,560.0 2,589.1
Property, plant and equipment, net 1,529.0 1,567.2
Goodwill 2,566.1 2,570.6
Intangible assets, net 920.1 925.0
Other assets, net 301.9 442.4
Total assets $ 7,877.1 $ 8,094.3
Liabilities and Stockholders' Equity
Current Liabilities:
Notes payable to banks $ 347.0 $ 371.2
Current maturities of long-term debt 308.7 187.2
Accounts payable 253.5 268.8
Accrued excise taxes 57.7 43.8
Other accrued expenses and liabilities 482.8 501.6
Total current liabilities 1,449.7 1,372.6
Long-term debt, less current maturities 3,127.7 3,277.1
Deferred income taxes 544.0 536.2
Other liabilities 325.8 332.1
Total liabilities 5,447.2 5,518.0
Total stockholders' equity 2,429.9 2,576.3
Total liabilities and stockholders'
equity $ 7,877.1 $ 8,094.3
Constellation Brands, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per share data)
Three Months Ended Six Months Ended
August 31, August 31, August 31, August 31,
2010 2009 2010 2009
Sales $ 1,056.9 $ 1,090.7 $ 2,033.1 $ 2,094.5
Excise taxes (194.1) (213.9) (382.8) (426.1)
Net sales 862.8 876.8 1,650.3 1,668.4
Cost of product
sold (548.6) (567.2) (1,066.1) (1,090.1)
Gross profit 314.2 309.6 584.2 578.3
Selling, general
and administrative
expenses (167.3) (166.3) (336.1) (331.4)
Restructuring
charges (13.7) (3.2) (18.6) (22.1)
Operating income 133.2 140.1 229.5 224.8
Equity in earnings
of equity method
investees 66.4 73.2 120.9 136.0
Interest expense,
net (50.3) (68.1) (98.8) (136.5)
Income before
income taxes 149.3 145.2 251.6 224.3
Provision for
income taxes (58.0) (45.5) (111.2) (118.1)
$ $
Net income 91.3 99.7 $ 140.4 $ 106.2
Earnings Per
Common Share:
Basic - Class A $ $
Common Stock 0.44 0.46 $ 0.67 $ 0.49
Basic - Class B
Convertible Common $ $
Stock 0.40 0.42 $ 0.61 $ 0.44
Diluted - Class $ $
A Common Stock 0.43 0.45 $ 0.65 $ 0.48
Diluted - Class
B Convertible $ $
Common Stock 0.40 0.41 $ 0.60 $ 0.44
Weighted Average
Common Shares
Outstanding:
Basic - Class A
Common Stock 185.455 195.910 189.084 195.571
Basic - Class B
Convertible Common
Stock 23.712 23.736 23.719 23.740
Diluted - Class
A Common Stock 211.149 220.714 215.136 220.274
Diluted - Class
B Convertible
Common Stock 23.712 23.736 23.719 23.740
Constellation Brands, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
Six Months Ended
August 31, August 31,
2010 2009
Cash Flows From Operating Activities
Net income $ 140.4 $ 106.2
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation of property, plant
and equipment 61.0 77.1
Deferred tax provision (benefit) 50.6 (28.7)
Equity in earnings of equity
method investees, net of distributed
earnings 36.5 (12.3)
Stock-based compensation expense 25.7 25.4
Amortization of intangible and
other assets 7.3 6.0
Loss (gain) on disposal or
impairment of long-lived assets, net 4.8 (1.4)
Loss on business sold - 0.8
Change in operating assets and
liabilities, net of effects
from purchases and sales of
businesses:
Accounts receivable, net (204.5) (204.5)
Inventories 157.2 91.3
Prepaid expenses and other
current assets 5.3 1.0
Accounts payable (10.7) (11.5)
Accrued excise taxes 13.2 17.6
Other accrued expenses and
liabilities 39.7 8.8
Other, net (20.8) 21.6
Total adjustments 165.3 (8.8)
Net cash provided by
operating activities 305.7 97.4
Cash Flows From Investing Activities
Purchases of property, plant and
equipment (43.2) (65.1)
Investment in equity method investee (29.7) (0.5)
(Repayments related to) proceeds
from sale of business (1.6) 276.4
Proceeds from note receivable 60.0 -
Proceeds from sales of assets 3.1 14.5
Other investing activities 0.5 1.2
Net cash (used in) provided
by investing activities (10.9) 226.5
Cash Flows From Financing Activities
Purchases of treasury stock (300.0) -
Principal payments of long-term debt (24.5) (271.4)
Net repayment of notes payable (24.1) (60.2)
Payment of financing costs of long-
term debt (0.2) -
Exercise of employee stock options 18.0 9.0
Excess tax benefits from stock-based
payment awards 4.7 2.2
Proceeds from employee stock
purchases 2.1 2.3
Net cash used in financing
activities (324.0) (318.1)
Effect of exchange rate changes on
cash and cash investments (0.4) 0.8
Net (decrease) increase in cash and
cash investments (29.6) 6.6
Cash and cash investments, beginning
of period 43.5 13.1
Cash and cash investments, end of
period $ 13.9 $ 19.7
Constellation Brands, Inc. and
Subsidiaries
SUMMARIZED SEGMENT AND EQUITY EARNINGS INFORMATION
(in millions)
Three Months Ended
August 31, August 31,
2010 2009 Percent Change
Constellation Wines North
America (1)
Wine net sales $ 600.6 $ 570.2 5%
Spirits net sales 55.0 64.7 (15%)
Segment net sales $ 655.6 $ 634.9 3%
Segment operating
income $ 181.2 $ 183.8 (1%)
% Net sales 27.6% 28.9%
Equity in losses of $ $
equity method investees (0.3) (0.1) NM
Constellation Wines
Australia and Europe (1)
Wine net sales $ 207.2 $ 241.9 (14%)
Segment net sales $ 207.2 $ 241.9 (14%)
Segment operating $ $
(loss) income (3.2) 4.1 NM
% Net sales (1.5%) 1.7%
Equity in earnings of $
equity method investees $ 1.5 1.1 36%
Corporate Operations and
Other segment operating
loss $ (27.5) $ (18.9) 46%
Equity in earnings of
Crown Imports (2) $ 65.3 $ 72.2 (10%)
Reportable Segment
Operating Income (A) $ 150.5 $ 169.0
Restructuring Charges
and Unusual Items (17.3) (28.9)
Consolidated Operating
Income (GAAP) $ 133.2 $ 140.1
Reportable Segment Equity
in Earnings of Equity
Method Investees (B) $ 66.5 $ 73.2
Restructuring Charges
and Unusual Items (0.1) -
Consolidated Equity in
Earnings of Equity Method
Investees (GAAP) $ 66.4 $ 73.2
Consolidated Earnings
Before Interest and Taxes
(Non-GAAP) (A+B) $ 217.0 $ 242.2
Six Months Ended
August 31, August 31,
2010 2009 Percent Change
Constellation Wines North
America (1)
Wine net sales $ 1,132.3 $ 1,094.4 3%
Spirits net sales 113.2 124.8 (9%)
Segment net sales $ 1,245.5 $ 1,219.2 2%
Segment operating
income $ 313.7 $ 331.3 (5%)
% Net sales 25.2% 27.2%
Equity in losses of $ $
equity method investees (0.2) (1.3) NM
Constellation Wines
Australia and Europe (1)
Wine net sales $ 404.8 $ 449.2 (10%)
Segment net sales $ 404.8 $ 449.2 (10%)
Segment operating $ $
(loss) income (6.0) 4.2 NM
% Net sales (1.5%) 0.9%
Equity in earnings of $
equity method investees $ 2.1 2.2 (5%)
Corporate Operations and
Other segment operating
loss $ (54.0) $ (41.6) 30%
Equity in earnings of
Crown Imports (2) $ 119.6 $ 135.1 (11%)
Reportable Segment
Operating Income (A) $ 253.7 $ 293.9
Restructuring Charges
and Unusual Items (24.2) (69.1)
Consolidated Operating
Income (GAAP) $ 229.5 $ 224.8
Reportable Segment Equity
in Earnings of Equity
Method Investees (B) $ 121.5 $ 136.0
Restructuring Charges
and Unusual Items (0.6) -
Consolidated Equity in
Earnings of Equity Method
Investees (GAAP) $ 120.9 $ 136.0
Consolidated Earnings
Before Interest and Taxes
(Non-GAAP) (A+B) $ 375.2 $ 429.9
NM Not Meaningful
(1) In connection with the Company's change in its internal management structure
for its U.K. and Australia businesses and the revised strategy within these
markets, the Company changed its internal management financial reporting on
May 1, 2010, to consist of five operating segments: Constellation Wines
North America, Constellation Wines Australia and Europe, Constellation Wines
New Zealand, Crown Imports and Corporate Operations and Other. For
reporting purposes, the Constellation Wines New Zealand operating segment is
aggregated with the Constellation Wines North America operating segment due
to, among other factors, the vast majority of the wine produced by the
Constellation Wines New Zealand operating segment is sold in the U.S. and
Canada. Prior period results have been restated to conform with the new
segment presentation.
(2) Crown Imports Joint
Venture Summarized
Financial Information
Three Months Ended
August 31, August 31,
2010 2009 Percent Change
Net sales $ 679.4 $ 696.4 (2%)
Operating income $ 131.2 $ 144.7 (9%)
% Net sales 19.3% 20.8%
Six Months Ended
August 31, August 31,
2010 2009 Percent Change
Net sales $ 1,300.9 $ 1,335.5 (3%)
Operating income $ 240.1 $ 270.7 (11%)
% Net sales 18.5% 20.3%
Constellation Brands, Inc. and Subsidiaries
RECONCILIATION OF REPORTED, ORGANIC AND CONSTANT CURRENCY NET SALES
(in millions)
As the company sold certain spirits value brands and contract production
services on March 24, 2009, and sold its U.K. cider business on January
15, 2010, organic net sales for the respective periods are defined by the
company as reported net sales less net sales of certain spirits value brands and
contract production services and/or net sales of cider, as appropriate. Organic
net sales and percentage increase (decrease) in constant currency net sales
(which excludes the impact of year over year currency exchange rate
fluctuations) are provided because management uses this information in
monitoring and evaluating the underlying business trends of the continuing
operations of the company. In addition, the company believes this information
provides investors better insight on underlying business trends and results in
order to evaluate year over year financial performance.
Constant
Three Months Ended Currency
August 31, August 31, Percent Currency Percent
2010 2009 Change Impact Change (1)
Consolidated Net
Sales
$ $
Wine 807.8 812.1 (1%) - (1%)
Spirits 55.0 64.7 (15%) - (15%)
Consolidated
reported net
sales 862.8 876.8 (2%) - (2%)
Less: Spirits
net sales (2) - -
Less: Cider net
sales (3) - (37.1)
Consolidated $ $
organic net sales 862.8 839.7 3% - 2%
Consolidated Wine Net
Sales
$ $
Wine 807.8 812.1 (1%) - (1%)
Less: Cider net
sales (3) - (37.1)
Consolidated
wine organic net $ $
sales 807.8 775.0 4% - 4%
Constellation Wines
North America Net
Sales
Wine reported net $ $
sales 600.6 570.2 5% 1% 4%
Spirits reported $ $
net sales 55.0 64.7 (15%) - (15%)
Less: Spirits
net sales (2) - -
Spirits organic $ $
net sales 55.0 64.7 (15%) - (15%)
Constellation Wines
Australia and Europe
Net Sales
Wine reported net $ $
sales 207.2 241.9 (14%) (2%) (12%)
Less: Cider net
sales (3) - (37.1)
Wine organic $ $
net sales 207.2 204.8 1% (2%) 4%
Constant
Six Months Ended Currency
August 31, August 31, Percent Currency Percent
2010 2009 Change Impact Change (1)
Consolidated Net
Sales
$ $
Wine 1,537.1 1,543.6 - 2% (3%)
Spirits 113.2 124.8 (9%) - (9%)
Consolidated
reported net
sales 1,650.3 1,668.4 (1%) 2% (3%)
Less: Spirits
net sales (2) - (14.8)
Less: Cider net
sales (3) - (64.8)
Consolidated $ $
organic net sales 1,650.3 1,588.8 4% 2% 1%
Consolidated Wine Net
Sales
$ $
Wine 1,537.1 1,543.6 - 2% (3%)
Less: Cider net
sales (3) - (64.8)
Consolidated
wine organic net $ $
sales 1,537.1 1,478.8 4% 3% 1%
Constellation Wines
North America Net
Sales
Wine reported net $ $
sales 1,132.3 1,094.4 3% 2% 1%
Spirits reported $ $
net sales 113.2 124.8 (9%) - (9%)
Less: Spirits
net sales (2) - (14.8)
Spirits organic $ $
net sales 113.2 110.0 3% - 3%
Constellation Wines
Australia and Europe
Net Sales
Wine reported net $ $
sales 404.8 449.2 (10%) 3% (12%)
Less: Cider net
sales (3) - (64.8)
Wine organic $ $
net sales 404.8 384.4 5% 3% 2%
(1) May not sum due to rounding as each item is computed independently.
(2) For the period March 1, 2009, through March 24, 2009, included in the six
months ended August 31, 2009.
(3) For the period June 1, 2009, through August 31, 2009, included in the three
months ended August 31, 2009, and the period March 1, 2009, through August
31, 2009, included in the six months ended August 31, 2009.
Constellation Brands, Inc. and Subsidiaries
RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES (1)
(in millions, except per share data)
+------------------------------------------------------------+
| Three Months Ended August 31, 2010 |
+-----------+-----------------------------------+------------+
| | Strategic | |
| Reported | Business | Comparable |
| Basis | Inventory Realignment Other | Basis |
| (GAAP) | Step-up (2) (3) | (Non-GAAP) |
+-----------+-----------------------------------+------------+
| | | $ |
Net Sales | $ 862.8| | 862.8|
| | | |
Cost of product| | | |
sold | (548.6)| 0.6 0.1 | (547.9)|
+-----------+-----------------------------------+------------+
| | | |
| | | |
Gross Profit | 314.2| 0.6 0.1 -| 314.9|
| | | |
Selling, | | | |
general and | | | |
administrative | | | |
expenses ("SG&A") | (167.3)| 2.9 | (164.4)|
| | | |
Restructuring | | | |
charges | (13.7)| 13.7 | -|
+-----------+-----------------------------------+------------+
| | | |
| | | |
Operating Income | 133.2| 0.6 16.7 -| 150.5|
| | | |
Equity in | | | |
earnings of equity| | | |
method investees | 66.4| 0.1| 66.5|
| | +------------+
| | | |
EBIT | | | 217.0|
| | | |
Interest | | | |
expense, net | (50.3)| | (50.3)|
+-----------+-----------------------------------+------------+
Income Before | | | |
Income Taxes | 149.3| 0.6 16.7 0.1| 166.7|
| | | |
(Provision for)| | | |
benefit from | | | |
income taxes | (58.0)| (0.3) (1.3) 2.0| (57.6)|
+-----------+-----------------------------------+------------+
| $ | $ $ $ | $ |
Net Income | 91.3| 0.3 15.4 2.1| 109.1|
| | | |
Diluted Earnings | $ | $ $ $ | $ |
Per Common Share | 0.43| - 0.07 0.01| 0.52|
| | | |
Weighted Average | | | |
Common Shares | | | |
Outstanding -| | | |
Diluted | 211.149| 211.149 211.149 211.149| 211.149|
| | | |
Gross Margin | 36.4%| | 36.5%|
| | | |
SG&A as a percent| | | |
of net sales | 19.4%| | 19.1%|
| | | |
Operating Margin | 15.4%| | 17.4%|
| | | |
Effective Tax | | | |
Rate | 38.8%| | 34.6%|
+-----------+-----------------------------------+------------+
+------------------------------------------------------------+
| Three Months Ended August 31, 2009 |
+-----------+-----------------------------------+------------+
| | Strategic | |
| Reported | Business | Comparable |
| Basis | Inventory Realignment | Basis |
| (GAAP) | Step-up (2) Other | (Non-GAAP) |
+-----------+-----------------------------------+------------+
| | | $ |
Net Sales | $ 876.8| | 876.8|
| | | |
Cost of product| | | |
sold | (567.2)| 2.5 13.0 | (551.7)|
+-----------+-----------------------------------+------------+
| | | |
| | | |
Gross Profit | 309.6| 2.5 13.0 -| 325.1|
| | | |
Selling, | | | |
general and | | | |
administrative | | | |
expenses | (166.3)| 10.2 | (156.1)|
| | | |
Restructuring | | | |
charges | (3.2)| 3.2 | -|
+-----------+-----------------------------------+------------+
| | | |
| | | |
Operating Income | 140.1| 2.5 26.4 -| 169.0|
| | | |
Equity in | | | |
earnings of equity| | | |
method investees | 73.2| | 73.2|
| | +------------+
| | | |
EBIT | | | 242.2|
| | | |
Interest | | | |
expense, net | (68.1)| | (68.1)|
+-----------+-----------------------------------+------------+
| | | |
Income Before | | | |
Income Taxes | 145.2| 2.5 26.4 -| 174.1|
| | | |
(Provision for)| | | |
benefit from | | | |
income taxes | (45.5)| (0.9) (7.7) -| (54.1)|
+-----------+-----------------------------------+------------+
| $ | $ $ $ | $ |
Net Income | 99.7| 1.6 18.7 -| 120.0|
| | | |
Diluted Earnings | $ | $ $ $ | $ |
Per Common Share | 0.45| 0.01 0.08 -| 0.54|
| | | |
Weighted Average | | | |
Common Shares | | | |
Outstanding -| | | |
Diluted | 220.714| 220.714 220.714 220.714| 220.714|
| | | |
Gross Margin | 35.3%| | 37.1%|
| | | |
SG&A as a percent| | | |
of net sales | 19.0%| | 17.8%|
| | | |
Operating Margin | 16.0%| | 19.3%|
| | | |
Effective Tax | | | |
Rate | 31.3%| | 31.1%|
+-----------+-----------------------------------+------------+
+-----------+------------+
| Percent | Percent |
| Change - | Change - |
| Reported | Comparable |
| Basis | Basis |
| (GAAP) | (Non-GAAP) |
+-----------+------------+
| | |
Net Sales | (2%)| (2%)|
| | |
Cost of product| | |
sold | (3%)| (1%)|
| | |
| | |
Gross Profit | 1%| (3%)|
| | |
Selling, | | |
general and | | |
administrative | | |
expenses ("SG&A") | 1%| 5%|
| | |
Restructuring | | |
charges | NM| N/A|
| | |
| | |
Operating Income | (5%)| (11%)|
| | |
Equity in | | |
earnings of equity| | |
method investees | (9%)| (9%)|
| | |
| | |
EBIT | N/A| (10%)|
| | |
Interest | | |
expense, net | (26%)| (26%)|
| | |
Income Before | | |
Income Taxes | 3%| (4%)|
| | |
(Provision for)| | |
benefit from | | |
income taxes | 27%| 6%|
| | |
| | |
Net Income | (8%)| (9%)|
| | |
Diluted Earnings | | |
Per Common Share | (4%)| (4%)|
+-----------+------------+
Constellation Brands, Inc. and Subsidiaries
RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES (1)
(in millions, except per share data)
+------------------------------------------------------------+
| Six Months Ended August 31, 2010 |
+------------+----------------------------------+------------+
| | Strategic | |
| | Business | Comparable |
| Reported | Inventory Realignment Other | Basis |
|Basis (GAAP)| Step-up (4) (5) | (Non-GAAP) |
+------------+----------------------------------+------------+
| | | $ |
Net Sales | $ 1,650.3| | 1,650.3|
| | | |
Cost of product| | | |
sold | (1,066.1)| 1.6 1.1 | (1,063.4)|
+------------+----------------------------------+------------+
| | | |
| | -| |
Gross Profit | 584.2| 1.6 1.1 | 586.9|
| | | |
Selling, | | | |
general and | | | |
administrative | | | |
expenses | (336.1)| 2.9 | (333.2)|
| | | |
Restructuring | | | |
charges | (18.6)| 18.6 | - |
+------------+----------------------------------+------------+
| | | |
| | -| |
Operating Income | 229.5| 1.6 22.6 | 253.7|
| | | |
Equity in | | | |
earnings of equity| | | |
method investees | 120.9| 0.6| 121.5|
| | +------------+
| | | |
EBIT | | | 375.2|
| | | |
Interest | |
Unternehmensinformation / Kurzprofil:
Datum: 06.10.2010 - 13:37 Uhr
Sprache: Deutsch
News-ID 44346
Anzahl Zeichen: 0
contact information:
Town:
Fairport
Kategorie:
Business News
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