This news release contains forward-looking information that is based upon
assumptions and is subject to risks and uncertainties as indicated in the
cautionary note contained elsewhere in this news release.
Andrew Peller Limited (TSX:ADW.A)(TSX:ADW.B) (the "Company") announced today its
results for the three months and fiscal year ended March 31, 2011 ("fiscal
2011").
FISCAL 2011 HIGHLIGHTS:
-- Common share dividend to increase 9% on annualized basis
-- Company purchases and cancels 594,412 Class A Non-Voting Shares for
approximately $5.2 million
-- Sales up on solid growth through liquor boards and estate wineries
-- Strong Canadian dollar and increased sales of high margin products
generate improved profitability
-- Gross profit margin improves to 39.1% of sales from 36.6% last year
-- EBITA rises to $32.0 million from $27.4 million in prior year
-- Cash flow from operating activities increases to $23.0 million from
$17.6 million in fiscal 2010
"Our successful sales and marketing initiatives, combined with the increasing
global recognition of the quality of our premium and ultra-premium wines,
generated increased sales through the majority of our trade channels in fiscal
2011 and a solid improvement in profitability," commented John Peller, President
and CEO. "Looking ahead, we are confident we will continue this trend of
positive growth."
"We are very proud to be celebrating the Company's 50th Anniversary this year.
Our growth and achievements over the last half-century are considerable, a
testament to the hard work and dedication of all our people. We look forward to
continued progress in the years ahead," Mr. Peller added.
For fiscal 2011, sales rose to $265.4 million, up from $263.2 million in fiscal
2010. Ongoing initiatives to grow sales of the Company's blended varietal table
and premium wines through provincial liquor boards and the introduction of new
products and improved performance at the Company's estate wineries were
partially offset by a discriminatory levy introduced by the Province of Ontario
on July 1, 2010 on sales of blended wines sold through the Company's retail
stores. The annual impact on sales and EBITA of this levy amounts to
approximately $3.0 million. Sales of personal winemaking products declined over
the past year. Sales for the fourth quarter of fiscal 2011 were $56.9 million
compared to $59.3 million in the prior year period. The decline is due primarily
to the above-mentioned special levy in Ontario and the timing of sales in the
key Easter selling season.
For fiscal 2011, gross profit rose to 39.1% of sales from 36.6% in the prior
fiscal year, and to 38.9% of sales for the three months ended March 31, 2011
from 37.6% in the same period last year. The increase in gross profit in fiscal
2011 was due to the lower cost to the Company of purchasing United States
dollars and Euros, increased sales volumes of higher margin products, and the
Company's successful cost control initiatives which served to reduce operating
and packaging expenses. Gross profit was negatively impacted by the
above-mentioned special levy in the Province of Ontario. Management remains
focused on efforts to enhance production efficiency and productivity to further
improve overall profitability.
Selling and administrative expenses rose in the fourth quarter and year ended
March 31, 2011 due primarily to increased sales and marketing expenses compared
with the prior year. Management expects the level of sales and administrative
expenses will increase slightly in fiscal 2012.
Interest expense in fiscal 2011 declined compared to last year due primarily to
the reduction in debt from regularly scheduled long-term debt repayments,
proceeds from the sale of certain non-core vineyards during the first quarter of
fiscal 2011, and to lower interest rates on both short and long-term debt.
The Company incurred a non-cash gain in fiscal 2011 related to the
mark-to-market adjustments on an interest rate swap and foreign exchange
contracts aggregating approximately $0.1 million compared to a gain of $3.2
million in the prior year. The Company has elected not to apply hedge accounting
and these financial instruments are reflected in the Company's financial
statements at fair value each reporting period. These instruments are considered
to be effective economic hedges and have enabled management to mitigate the
volatility of changing costs and interest rates during the year.
Other expenses incurred in fiscal 2011 relate to a net $1.3 million write-down,
after proceeds from an insurance claim, in the value of a BC vineyard where
vines were damaged by an early and severe frost in the fall of 2009, as well as
carrying costs in the amount of $0.2 million related to the Company's Port Moody
facility which was closed effective December 31, 2005. These costs were
partially offset by other income of $0.3 million related to a gain on the sale
of a portion of an Okanagan vineyard. The damage to the BC vineyard was realized
when the vines were not able to support the growth of grapes during hot weather
that occurred during August 2010. Other expenses incurred in fiscal 2010
primarily related to impairment charges on certain investments made by the
Company.
Earnings before interest, taxes, amortization and gains on the above mentioned
derivative financial instruments ("EBITA") were $32.0 million and $4.0 million
for the year and three months ended March 31, 2011 respectively compared to
$27.4 million and $4.1 million in the respective prior year periods.
Net and comprehensive earnings from continuing operations, excluding gains on
derivative financial instruments and other expenses for the year ended March 31,
2011, were $11.5 million compared to $8.4 million for the prior year. Net and
comprehensive earnings were $11.0 million or $0.76 per Class A share in fiscal
2011 compared to $21.7 million or $1.49 per Class A share in fiscal 2010. The
results for fiscal 2010 included an after-tax gain of approximately $11.9
million related to the sale of the Company's beer business.
Strong Financial Position
On March 10, 2011 the Company announced that it had filed a Notice of Intention
to make a normal course issuer bid to purchase for cancellation up to a maximum
of 594,412 of its Class A Non-Voting Shares ("Class A Shares") through the
facilities of the Toronto Stock Exchange representing 5% of the Company's issued
and outstanding Class A shares. The normal course issuer bid was to remain in
effect until the earlier of March 13, 2012 or the date on which the Company has
purchased the maximum number of Class A shares permitted. As of March 31, 2011,
the Company had acquired 594,412 Class A common Shares for total consideration
of approximately $5.2 million, or an average price of $8.75 per Class A Share.
Working capital as at March 31, 2011 was $28.3 million compared to $29.4 million
at March 31, 2010. The decline at March 31, 2011 was due primarily to the use of
funds for the Company's normal course issuer bid, higher levels of capital
spending, and cash flow from operating activities used to reduce bank
indebtedness.
The Company's debt to equity ratio declined to 0.84:1 at March 31, 2011 compared
to 0.90:1 at the end of fiscal 2010. Shareholders' equity as at March 31, 2011
rose to $114.7 million or $8.02 per common share compared to $113.7 million or
$7.63 per common share as at March 31, 2010. The increase in shareholders'
equity is primarily due to higher net earnings from continuing operations,
partially offset by the decrease in Capital Stock arising from the cancellation
of 594,412 Class A Shares resulting from the Company's normal course issuer bid.
During fiscal 2011, the Company generated cash flow from operating activities,
after changes in non-cash working capital items, of $23.0 million compared to
$17.6 million in the prior year. Cash flow from operating activities increased
primarily due to stronger earnings performance.
Common Share Dividend Increase
As a result of the Company's continued strong performance, the Board of
Directors is pleased to announce today a 9% increase in common share dividends
for shareholders of record on June 30, 2011 payable on July 8, 2011. The annual
dividend on Class A shares will be increased to $0.360 per share from $0.330 per
share and the Class B shares increased to $.0314 per share from $0.288 per
share.
"We are very pleased to be implementing our fourth increase in commons share
dividends over the last six years," Mr. Peller commented. "With our record
performance this year, and our positive outlook for the future, we are proud to
be enhancing value for our shareholders."
Conference Call
A conference call hosted by the Company will be held Thursday June 9, 2011 at
10:00 a.m. (ET). The call-in numbers for participants are local /international
(416) 340-2216 or North American Toll-Free at (866) 226-1792. Please connect
with the conference call at least five minutes before the start time. An audio
replay of the call will be available after the live call by dialing (416)
695-5800 or (800) 408-3053 and entering access code 4802885#
Financial Highlights (Unaudited)
(Complete consolidated financial statements to follow)
----------------------------------------------------------------------------
(in $000 except as otherwise
stated) Three Months Year
----------------------------------------------------------------------------
For the Period Ended March 31, 2011 2010 2011 2010
----------------------------------------------------------------------------
Sales 56,940 59,295 265,420 263,151
Gross profit 22,165 22,281 103,662 96,324
-------------------------------------------
Gross profit (% of sales) 38.9% 37.6% 39.1% 36.6%
-------------------------------------------
Selling general and
administrative expenses 18,196 18,152 71,703 68,970
Earnings before interest, taxes,
amortization, unrealized loss
(gain) and
other expenses 3,969 4,129 31,959 27,354
Unrealized gain on derivative
financial instruments (291) (781) (117) (3,224)
Other expenses (155) 380 921 1,627
Net and comprehensive earnings
from continuing operations 339 838 10,989 9,526
Net and comprehensive earnings
from a discontinued operation - (200) - 12,135
-------------------------------------------
Net and comprehensive earnings 339 638 10,989 21,661
-------------------------------------------
Earnings per share from
continuing operations - Class A $ 0.03 $ 0.06 $ 0.76 $ 0.66
Earnings per share - basic and
diluted - Class A $ 0.03 $ 0.04 $ 0.76 $ 1.49
Dividend per share - Class A
(annual) $ 0.330 $ 0.330 $ 0.330 $ 0.330
Dividend per share - Class B
(annual) $ 0.288 $ 0.288 $ 0.288 $ 0.288
-------------------------------------------
Class A Common Shares
outstanding (000 shares) 11,294 11,888 11,294 11,888
-------------------------------------------
Cash provided by operations
(after changes in non-cash
working capital items) 12,181 10,411 23,019 17,615
-------------------------------------------
Working capital 28,277 29,357
Shareholders' equity per share $ 8.02 $ 7.63
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Andrew Peller Limited ('APL' or the 'Company') is a leading producer and
marketer of quality wines in Canada. With wineries in British Columbia, Ontario
and Nova Scotia, the Company markets wines produced from grapes grown in
Ontario's Niagara Peninsula, British Columbia's Okanagan and Similkameen Valleys
and from vineyards around the world. The Company's award-winning premium and
ultra-premium VQA brands include Peller Estates, Trius, Hillebrand, Thirty
Bench, Crush, Sandhill, Calona Vineyards Artist Series and Red Rooster.
Complementing these premium brands are a number of popularly priced varietal
wine brands including Peller Estates French Cross in the East, Peller Estates
Proprietors Reserve in the West, Copper Moon, XOXO and Croc Crossing. Hochtaler,
Domaine D'Or, Schloss Laderheim, Royal and Sommet are our key value priced wine
blends. The Company imports wines from major wine regions around the world to
blend with domestic wine to craft these popularly priced and value priced wine
brands. With a focus on serving the needs of all wine consumers, the Company
produces and markets premium personal winemaking products through its
wholly-owned subsidiary, Global Vintners Inc., the recognized world leader in
personal winemaking products. Global Vintners distributes products through over
250 Winexpert and Wine Kitz authorized retailers and franchisees and more than
600 independent retailers across Canada, United States, United Kingdom, New
Zealand and Australia. Global Vintners award-winning premium and ultra-premium
winemaking brands include Selection, Vintners Reserve, Island Mist, Kenridge,
Cheeky Monkey, Ultimate Estate Reserve, Traditional Vintage and Artful
Winemaker. The Company owns and operates more than 100 well-positioned
independent retail locations in Ontario under the Vineyards Estate Wines, Aisle
43 and WineCountry Vintners store names. The Company also owns Grady Wine
Marketing Inc. based in Vancouver, and The Small Winemaker's Collection Inc.
based in Ontario; both of these wine agencies are importers of premium wines
from around the world and are marketing agents for these fine wines. The
Company's products are sold predominantly in Canada with a focus on export sales
for our icewine products.
Net earnings from continuing operations before other expenses is defined as net
earnings before the net unrealized gain on financial instruments, other expenses
and net earnings from a discontinued operation, all adjusted by income tax rates
as calculated below:
(in $000) Three Months Year
----------------------------------------------------------------------------
Period ended March 31, 2011 2010 2011 2010
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net and comprehensive earnings 339 638 10,989 21,661
----------------------------------------------------------------------------
Unrealized gain on financial
instruments (291) (781) (117) (3,224)
----------------------------------------------------------------------------
Other expenses (155) 380 921 1,627
----------------------------------------------------------------------------
Income tax effect on the above 138 120 (249) 479
----------------------------------------------------------------------------
Net (earnings) loss from a discontinued
operation - 200 - (12,135)
----------------------------------------------------------------------------
Net earnings from continuing operations
before other expenses 31 557 11,544 8,408
----------------------------------------------------------------------------
The Company utilizes EBITA (defined as earnings before interest, amortization,
unrealized derivative (gain) loss, other expenses, income taxes and net earnings
from a discontinued operation). EBITA is not a recognized measure under GAAP.
Management believes that EBITA is a useful supplemental measure to net earnings,
as it provides readers with an indication of cash available for investment prior
to debt service, capital expenditures and income taxes. Readers are cautioned
that EBITA should not be construed as an alternative to net earnings determined
in accordance with GAAP as an indicator of the Company's performance or to cash
flows from operating, investing and financing activities as a measure of
liquidity and cash flows. In addition, the Company's method of calculating EBITA
may differ from the methods used by other companies and, accordingly, may not be
comparable to measures used by other companies.
Andrew Peller Limited common shares trade on the Toronto Stock Exchange (symbols
ADW.A and ADW.B).
FORWARD-LOOKING INFORMATION
Certain statements in this news release may contain "forward-looking statements"
within the meaning of applicable securities laws, including the "safe harbour
provision" of the Securities Act (Ontario) with respect to Andrew Peller Limited
( the "Company") and its subsidiaries. Such statements include, but are not
limited to, statements about the growth of the business in light of the
Company's recent acquisitions; its launch of new premium wines; sales trends in
foreign markets; its supply of domestically grown grapes; and current economic
conditions. These statements are subject to certain risks, assumptions and
uncertainties that could cause actual results to differ materially from those
included in the forward-looking statements. The words "believe", "plan",
"intend", "estimate", "expect" or "anticipate" and similar expressions, as well
as future or conditional verbs such as "will", "should", "would" and "could"
often identify forward-looking statements. We have based these forward-looking
statements on our current views with respect to future events and financial
performance. With respect to forward-looking statements contained in this news
release, the Company has made assumptions and applied certain factors regarding,
among other things: future grape, glass bottle and wine prices; its ability to
obtain grapes, imported wine, glass and its ability to obtain other raw
materials; fluctuations in the U.S./Canadian dollar exchange rates; its ability
to market products successfully to its anticipated customers; the trade balance
within the domestic Canadian wine market; market trends; reliance on key
personnel; protection of its intellectual property rights; the economic
environment; the regulatory requirements regarding producing, marketing,
advertising and labelling its products; the regulation of liquor distribution
and retailing in Ontario; and the impact of increasing competition.
These forward-looking statements are also subject to the risks and uncertainties
discussed in this news release, in the "Risk Factors" section and elsewhere in
the Company's MD&A and other risks detailed from time to time in the publicly
filed disclosure documents of Andrew Peller Limited which are available at
www.sedar.com. Forward-looking statements are not guarantees of future
performance and involve risks, uncertainties and assumptions which could cause
actual results to differ materially from those conclusions, forecasts or
projections anticipated in these forward-looking statements. Because of these
risks, uncertainties and assumptions, you should not place undue reliance on
these forward-looking statements. The Company's forward-looking statements are
made only as of the date of this news release, and except as required by
applicable law, the Company undertakes no obligation to update or revise these
forward-looking statements to reflect new information, future events or
circumstances or otherwise.
ANDREW PELLER LIMITED
CONSOLIDATED BALANCE SHEETS
As at March 31, 2011 and 2010
----------------------------------------------------------------------------
----------------------------------------------------------------------------
2011 2010
$ $
----------------------------------------------------------------------------
Assets
Current Assets
Accounts receivable 23,390 22,902
Inventories 96,085 89,693
Prepaid expenses and other assets 818 1,818
Income taxes recoverable - 1,327
-------------------
120,293 115,740
Property, plant and equipment 94,154 95,728
Intangibles and other assets 14,170 14,775
Goodwill 38,073 37,473
-------------------
266,690 263,716
-------------------
-------------------
Liabilities
Current Liabilities
Bank indebtedness 48,758 48,877
Accounts payable and accrued liabilities 33,883 28,229
Dividends payable 1,148 1,197
Income taxes payable 1,000 -
Current portion of derivative financial instruments 1,894 1,922
Current portion of long-term debt 5,333 6,158
-------------------
92,016 86,383
Long-term debt 42,720 47,633
Long-term derivative financial instruments 1,578 1,667
Employee future benefits 3,803 4,530
Future income taxes 11,906 9,838
-------------------
152,023 150,051
-------------------
Shareholders' Equity
Capital Stock 7,026 7,375
Retained Earnings 107,641 106,290
-------------------
114,667 113,665
-------------------
266,690 263,716
-------------------
-------------------
The accompanying notes are an integral part of these consolidated financial
statements
ANDREW PELLER LIMITED
Consolidated Statements of Earnings, Comprehensive Earnings and Retained
Earnings
For the Three For the Twelve
Months Ended Months Ended
March 31 March 31
2011 2010 2011 2010
$ $ $ $
-------------------------------------------------------- -------------------
Sales 56,940 59,295 265,420 263,151
Cost of goods sold, excluding
amortization 34,775 37,014 161,758 166,827
--------- --------- --------- ---------
Gross profit 22,165 22,281 103,662 96,324
Selling and administration 18,196 18,152 71,703 68,970
--------- --------- --------- ---------
Earnings before interest and
amortization 3,969 4,129 31,959 27,354
Interest 1,241 1,926 6,673 7,873
Amortization of plant, equipment and
intangible assets 2,098 1,817 8,202 7,991
--------- --------- --------- ---------
Earnings before other items 630 386 17,084 11,490
Net unrealized gains on derivative
financial instruments (291) (781) (117) (3,224)
Other expenses (155) 380 921 1,627
--------- --------- --------- ---------
Earnings before income taxes 1,076 787 16,280 13,087
--------- --------- --------- ---------
Provision for (recovery of) income
taxes
Current (1,748) 172 3,223 3,503
Future 2,485 (223) 2,068 58
--------- --------- --------- ---------
737 (51) 5,291 3,561
--------- --------- --------- ---------
Net and comprehensive earnings for
the year from continuing operations 339 838 10,989 9,526
Net and comprehensive earnings for
the year from a discontinued
operation - (200) - 12,135
--------- --------- --------- ---------
Net and comprehensive earnings for
the year 339 638 10,989 21,661
Retained earnings- Beginning of year 113,349 106,848 106,290 89,416
Purchase and cancellation of Class A
shares (4,900) - (4,900) -
Dividends:
Class A and Class B (1,147) (1,196) (4,738) (4,787)
--------- --------- --------- ---------
Retained earnings - End of year 107,641 106,290 107,641 106,290
--------- --------- --------- ---------
--------- --------- --------- ---------
Net earnings per share from
continuing operations
Basic and diluted
Class A shares 0.03 0.06 0.76 0.66
--------- --------- --------- ---------
--------- --------- --------- ---------
Class B shares 0.02 0.05 0.66 0.57
--------- --------- --------- ---------
--------- --------- --------- ---------
Net earnings (loss) per share from
discontinued operation
Basic and diluted
Class A shares 0.00 (0.02) 0.00 0.83
--------- --------- --------- ---------
--------- --------- --------- ---------
Class B shares 0.00 (0.01) 0.00 0.73
--------- --------- --------- ---------
--------- --------- --------- ---------
Net earnings per share
Basic and diluted
Class A shares 0.03 0.04 0.76 1.49
--------- --------- --------- ---------
--------- --------- --------- ---------
Class B shares 0.02 0.04 0.66 1.30
--------- --------- --------- ---------
--------- --------- --------- ---------
The accompanying notes are an integral part of these consolidated financial
statements
ANDREW PELLER LIMITED
Consolidated Statements of Cash Flows
For the three months ended March 31, 2011 and 2010
For the three For the twelve
months ended months ended
March 31 March 31
2011 2010 2011 2010
$ $ $ $
---------------------------------------------- ------------------- ---------
Cash provided by (used in)
Operating activities
Net earnings for the period 339 838 10,989 9,526
Items not affecting cash:
Loss on disposal of property,
plant and equipment 187 175 865 175
Amortization of plant, equipment
and intangible assets 2,098 1,817 8,202 7,991
Employee future benefits (189) (300) (727) (866)
Net unrealized gains on derivative
financial instruments (291) (781) (117) (3,224)
Future income taxes 2,485 (223) 2,068 58
Amortization of deferred financing
costs 16 294 420 371
Write-off of deferred financing
costs - 267 - 267
Impairment charges - 0 - 1,247
--------- --------- --------- ---------
4,645 2,087 21,700 15,545
Changes in non-cash working capital
items related to operations 7,536 8,324 1,319 2,070
--------- --------- --------- ---------
12,181 10,411 23,019 17,615
--------- --------- --------- ---------
Investing activities
Purchase of other assets (101) (165) (101) (165)
Proceeds from disposal of property,
plant and equipment 722 34 1,488 34
Purchase of property, plant and
equipment (3,424) (613) (8,093) (5,047)
Acquisition of businesses - - (825) (825)
--------- --------- --------- ---------
(2,803) (744) (7,531) (6,003)
--------- --------- --------- ---------
Financing activities
Repurchase of Class A shares (5,249) - (5,249) -
Increase in deferred financing costs - (68) - (979)
Decrease in bank indebtedness (1,600) (7,726) (119) (3,315)
Payment to partially unwind a
derivative financial instrument - - - (1,600)
Repayment of long-term debt (1,333) (1,333) (5,333) (22,750)
Dividends paid (1,196) (1,196) (4,787) (4,787)
--------- --------- --------- ---------
(9,378) (10,323) (15,488) (33,431)
--------- --------- --------- ---------
Cash used in continuing operations - (656) - (21,819)
Cash provided from discontinued
operation - 656 - 21,819
--------- --------- --------- ---------
Cash at beginning and end of year - - - -
--------- --------- --------- ---------
--------- --------- --------- ---------
Supplemental disclosure of cash flow
information
Cash paid (received) during the year
from continuing operations for
Interest 1,175 1,747 6,601 7,819
Income taxes (2,009) 3,557 896 38
Cash paid (received) during the year
from discontinued operation for
Income taxes - (155) - 602
Cash paid (received) during the year
for
Interest 1,175 1,747 6,601 7,819
Income taxes (2,009) 3,402 896 640
The accompanying notes are an integral part of these consolidated financial
statements
Grafico Azioni Andrew Peller (TSX:ADW.B)
Storico
Da Mag 2024 a Giu 2024
Grafico Azioni Andrew Peller (TSX:ADW.B)
Storico
Da Giu 2023 a Giu 2024
