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Constellation Brands Annual Report, Year Ended Feb 28, 2001

Filing Date
Filed May 29, 2001
Period End
February 28, 2001
Security
STZ
In the record · 2016–202610-K1110-Q338-K237

STZ filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 237 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Jul ’17Jul ’17
  2. Material agreement8-K · Dec ’19Dec ’19
  3. Leadership change8-K · Jan ’22Jan ’22
  4. Leadership change8-K · Oct ’25Oct ’25

01—Abstract

Summary

Summary of the 10-K filed May 29, 2001. Cited figures are marked; the original filing is the authoritative source.

Constellation Brands, Inc. (filed as Canandaigua Brands, Inc. during the period covered; the name change to Constellation Brands took effect in Fiscal 2001) reported net sales of $2,396.7 milliona for the fiscal year ended February 28, 2001, up $56.2 million, or 2.4%, from $2,340.5 million in Fiscal 2000.

Operating income rose to $270.9 millionb from $235.0 million, an increase of 15.2%, and net income increased to $97.3 million, or $2.60 per diluted share, from $77.4 million ($2.09 per diluted share) in the prior year. Growth was driven by Barton (net sales up 12.8% to $945.1 million, led by Mexican beer) and Franciscan (up 49.9% to $93.1 million), while Canandaigua Wine declined 3.3% and Matthew Clark declined 5.3%, the latter largely due to an adverse foreign currency impact of $58.8 million. Total debt was $1,365.8 million at February 28, 2001, and the ratio of total debt to total capitalization decreased to 68.9% from 71.7%.

The company completed a $289.7 millionc acquisition of the Turner Road Vintners Assets and a $52.0 million acquisition of the Corus Assets in early 2001, and agreed to acquire Ravenswood Winery for approximately $148 million in cash, expected to close in late June or early July 2001. The Board also approved a two-for-one stock split, distributed May 14, 2001. The company states it intends to retain earnings and has not paid cash dividends since its 1973 initial public offering.

02—Key points

Key Highlights

  1. Net sales of $2,396.7 million for Fiscal 2001, up 2.4% from $2,340.5 million in Fiscal 2000.
  2. Operating income of $270.9 million, up 15.2% from $235.0 million; EBITDA of $341.3 million, up $41.5 million.
  3. Net income of $97.3 million, or $2.60 per diluted share, compared with $77.4 million, or $2.09 per diluted share, in Fiscal 2000.
  4. Barton net sales rose 12.8% to $945.1 million on Mexican beer volume growth and price increases; Franciscan net sales rose 49.9% to $93.1 million.
  5. Matthew Clark net sales fell 5.3% to $691.1 million, including an adverse foreign currency impact of $58.8 million.
  6. Total debt of $1,365.8 million at February 28, 2001; total debt to total capitalization improved to 68.9% from 71.7%.
  7. Pending acquisition of Ravenswood Winery for about $148 million in cash, expected to close in late June or early July 2001, subject to customary conditions and no guarantee of completion.

03—Questions

Frequently Asked Questions

  1. How did the company's core segments perform in Fiscal 2001?

    Barton, the beer and distilled spirits segment, grew net sales 12.8% to $945.1 million and operating income 17.3% to $167.7 million. Canandaigua Wine net sales declined 3.3% to $688.4 million, while Matthew Clark net sales declined 5.3% to $691.1 million, largely due to foreign currency effects.

  2. What acquisitions did the company complete and announce?

    In March 2001 the company acquired the Turner Road Vintners Assets for $289.7 million including assumed indebtedness, and the Corus Assets for $52.0 million plus an earn-out over six years. It also agreed on April 10, 2001 to acquire Ravenswood Winery, Inc. for $29.50 per share in cash, or approximately $148 million, plus assumed net debt.

  3. How is the company financing its debt and recent acquisitions?

    Fiscal 2001 included $319.4 million of long-term debt proceeds, including $200.0 million tied to the Turner Road Vintners acquisition and a 120.0 million pound sterling-denominated note. In February 2001 the company issued $200.0 million of 8% Senior Notes due 2008, and in March 2001 it completed a public offering of 4,370,000 Class A shares with net proceeds of $139.4 million, used to repay revolving loans.

  4. Does the company pay dividends, and what is the stock split?

    The company has not paid cash dividends since its 1973 initial public offering and states that its policy is to retain earnings to finance growth; its debt agreements also restrict dividend payments. The Board approved a two-for-one split of Class A and Class B common stock on April 10, 2001, distributed as a stock dividend on May 14, 2001.

04—Continue

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