USA: Ravenswood Winery, Inc. Reports Record Sales and Earnings for Fiscal 2000
Ravenswood reported that net sales grew by $1,958,397, or 35%, for the fourth quarter of fiscal 2000, from $5,525,112 for the fourth quarter of fiscal 1999 to $7,483,509. Net income increased by 44% to $1,242,950, or $.25 per share on a fully diluted basis, for the fourth quarter of fiscal 2000. This compares to $862,005, or $.18 per share on a fully diluted basis, for the fourth quarter of fiscal 1999. Case sales of Ravenswood wines increased 33% to 99,964 cases for the fourth quarter of fiscal 2000 from 75,160 cases in the fourth quarter of fiscal 1999.
Fiscal Year 2000 Results:
Ravenswood reported net income of $5,838,170, as compared to $3,903,466 for fiscal 1999, an increase of 50%. Diluted earnings per share for fiscal 2000 increased to $1.19 per share from $.96 per share for fiscal 1999, despite the dilutive effect of the issuance of an additional one million shares in connection with Ravenswood's IPO in April, 1999. Case sales of Ravenswood wines increased to 412,865 cases for fiscal 2000 from 270,760 cases in fiscal year 1999. Net sales increased 51%, to $33,226,137 in fiscal 2000 from $22,068,686 in fiscal 1999, driven by the increase in case sales volume.
In April 2000, Ravenswood secured approximately 32,000 square feet of warehouse space. Ravenswood is using this facility to expand its ability to ship wine to its customers, including out-of-state distributors. Most of Ravenswood's customers are now being serviced from this location. The company feels that it has grown to a size where it is not only cost efficient to operate its own warehouse, but also provides a higher level of customer service by managing their own shipping operations.
"Fiscal year 2000 was filled with excitement, and tremendous growth in sales, facilities and market development as we entered the new millennium and completed our first year as a public company," say Reed Foster, Chairman & CEO, and Joel Peterson, President and Winemaker of Ravenswood Winery, Inc. "A few of the highlights of our fiscal year 2000 saw us dedicate and move into our new quarry production facility, establish a 32,000 square- foot cased good storage facility, release the wines from the 1997 and 1998 vintages, increase sales by over 50% and implement our e-commerce strategies through our partnering with winetasting.com."
Ravenswood is hosting a conference call to further discuss their financial results for the fourth quarter and fiscal 2000 year-end on (today) Tuesday, August 15, 2000, at 2:00 P.M. PDT. To join the call, dial 888-222-2994.
Ravenswood Winery, Inc. produces, markets and sells super-premium and ultra-premium wines exclusively under the Ravenswood brand name. The majority of the wines produced and sold by Ravenswood are red wines, including Merlot, Cabernet Sauvignon and, particularly, Zinfandel. Ravenswood also produces several white wines including Chardonnay.
For further details and a discussion of the risks and uncertainties associated with Ravenswood's business, refer to Ravenswood's filings with the Securities and Exchange Commission, including its Form 10-KSB for the fiscal year ended June 30, 1999.
RAVENSWOOD WINERY, INC.
Cash and cash equivalents $ 5,769,373 $ 11,390,903
less allowance for
doubtful accounts of
$10,000 at June 30, 2000 and 1999 4,166,816 2,763,418
Inventories 20,521,284 14,581,973
Prepaid income taxes 277,500 15,850
Prepaid expenses 100,131 105,301
Current Deferred tax assets -- 162,800
Total current assets 30,854,104 29,020,245
Property, plant and equipment,
less accumulated depreciation, net 14,787,553 9,001,147
Non-Current Deferred Tax Assets 180,000 --
Notes receivable from shareholder 310,000 310,000
Other assets 60,433 186,921
LIABILITIES AND SHAREHOLDERS' EQUITY
Current portion of long-term debt $ 83,597 $ 109,722
Current portion of capital
lease obligations 617,979 368,203
Short-term borrowings 500,000 1,700,000
Accounts payable 3,217,036 3,382,118
Accrued commissions 514,379 396,358
Accrued liabilities 390,010 433,011
Total current liabilities 5,323,001 6,389,412
Long-term debt, net 6,453,407 4,525,231
Capital lease obligations, net 2,392,497 1,551,762
Convertible debentures 1,687,500 2,502,500
Total liabilities 15,856,405 14,968,905
Preferred stock, no par value;
1 million shares authorized,
none issued -- --
Common stock, no par value,
20 million shares authorized 15,054,373 14,211,018
Retained earnings 15,176,560 9,338,390
Unrealized gain on
available-for-sale securities 85,752 --
Total shareholders' equity 30,316,685 23,549,408
contingencies $46,173,090 $38,518,313
RAVENSWOOD WINERY, INC.
STATEMENT OF INCOME
Year ended June 30,
2000 1999 1998
Gross sales $35,615,207 $23,729,787 $17,016,866
Less excise taxes 1,263,567 908,446 552,499
allowances 1,125,503 752,655 573,762
Net sales 33,226,137 22,068,686 15,890,605
Cost of goods sold 15,696,651 10,259,357 7,397,362
Gross profit 17,529,486 11,809,329 8,493,243
expense -- -- 2,206,096
expenses 7,735,493 5,238,493 4,033,747
Operating income 9,793,993 6,570,836 2,253,400
Interest expense (861,992) (459,851) (523,551)
Other, net 272,269 233,481 49,211
(589,723) (226,370) (474,340)
tax provision 9,204,270 6,344,466 1,779,060
income taxes 3,366,100 2,441,000 1,592,169
Net income $5,838,170 $3,903,466 $186,891
Earnings per share:
Basic $1.24 $1.04 $0.05
Diluted $1.19 $0.96 $0.05
Weighted average number
of common shares
Basic 4,712,478 3,763,765 3,512,069
Diluted 5,010,955 4,171,245 3,814,820
- Paddy Irish whiskey - The Facts
- A-B InBev and its SABMiller divestments - Focus
- SABMiller in Cent'l & E Europe - What is for sale?
- Is the wine industry confusing its consumers?
- Where does AB InBev see the future of beer?
- Pernod Ricard to widen Our/Vodka sales reach
- Leonardo DiCaprio joins Runa drinks board
- Remy Cointreau names new Travel Retail exec
- Pernod in talks to sell Paddy whiskey to Sazerac
- US wholesalers point to Absolut decline - report
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends
- Global travel retail insights - market forecasts, product innovation and consumer trends
- Global non-Scotch whiskies insights - market forecasts, product innovation and consumer trends
- Consumer and Market Insights: Spirits Market in the US
- Carbonates in India