01—Abstract
Summary
Summary of the 10-K/A filed May 28, 2010. Cited figures are marked; the original filing is the authoritative source.
This filing by Constellation Brands, Inc. consists of Part IV exhibit materials, a signature page dated May 28, 2010 signed by Robert Ryder, Executive Vice President and Chief Financial Officer, and a revised index to exhibits.
Its principal new content is the audited consolidated financial statements of Matthew Clark (Holdings) Limited for the year ended February 28, 2010, a 50 percent owned joint venture with Punch Taverns plc. The filing states that Constellation's own financial statements for the fiscal years ended February 28, 2010, 2009 and February 29, 2008 were previously submitted with its Annual Report on Form 10-K, and that Crown Imports LLC, its 50 percent owned joint venture, had its financial statements previously included under Rule 3-09 of Regulation S-X. The Matthew Clark joint venture is a wholesale wine and spirits merchant serving the UK on-trade.
For fiscal 2010 it reported turnover of 637.8 million, gross profit of 83.0 million, operating profit of 10.3 million and profit for the financial year of 5.1 million, compared with a loss of 27.3 million in fiscal 2009. The fiscal 2009 loss reflected a goodwill impairment of 29.6 million under UK GAAP. The filing states that gross profit growth of 3.8%a was offset by higher distribution and selling expenses, and that the group repaid 15 million of debt over the year.
Under US GAAP reconciliation, net income for fiscal 2010 is 6.6 million and shareholders' equity is 41.8 million. The filing also details the joint venture's pension arrangement, under which Matthew Clark Wholesale Limited and Forth Wines Limited pay 1.25 million per year for 10 years to the Constellation Europe Group Pension Plan Trustees, with Hertford Cellars Limited, a Constellation subsidiary, bearing any excess amounts requested by the trustees.
02—Key points
Key Highlights
- Matthew Clark (Holdings) Limited, a 50:50 UK joint venture between Constellation's subsidiary Hertford Cellars Limited and Punch Taverns plc, is a wholesale wine and spirits merchant serving the UK on-trade.
- Fiscal 2010 turnover was 637.8 million, up from 580.8 million in fiscal 2009, with gross profit of 83.0 million compared with 80.0 million.
- Operating profit was 10.3 million in fiscal 2010, compared with an operating loss of 21.0 million in fiscal 2009.
- Profit for the financial year was 5.1 million, compared with a loss of 27.3 million in fiscal 2009, which included a 29.6 million goodwill impairment under UK GAAP.
- The filing states that gross profit growth of 3.8% was offset by higher distribution and selling expenses, and that the group repaid 15 million of debt during the year.
- Under US GAAP, fiscal 2010 net income was 6.6 million and shareholders' equity was 41.8 million, compared with a net loss of 35.3 million in fiscal 2009.
- The joint venture's fixed annual pension commitment of 1.25 million for 10 years is funded by Matthew Clark's subsidiaries, with excess trustee requests refunded by Hertford Cellars Limited.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2010, Constellation Brands kept $0.02.
- Revenue$4.21B100.0%
- Cost of revenue−$3.07B72.8%
- Gross profit$1.14B27.2%
- Operating costs−$833.3M19.8%
- Operating income$311.5M7.4%
- Interest, other & tax−$212.2M5.0%
- Net income$99.3M2.4%
Where FY2010 revenue went
$4.21B- Cost of revenue: $2.22B, 53% of revenue
- Other operating costs: $999.0M, 24% of revenue
- SG&A: $682.5M, 16% of revenue
- Net income: $99.3M, 2.4% of revenue
- Interest, other & tax: $212.2M, 5.0% of revenue
Kept 2.4% as net incomeNet income $99.3M · 2.4%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-K/AFY2010filed May 28, 2010Financial Statements
FY2010 against FY2009
| Line item | FY2010FY2009 | Change |
|---|---|---|
| Revenue | $4.21B$4.72B | −10.8% |
| Cost of Revenue | $2.22B$2.42B | −8.4% |
| Gross Profit | $1.14B$1.23B | −6.9% |
| SG&A Expenses | $682.50M$832.00M | −18.0% |
| Operating Income | $311.50M$29.60M | +952.4% |
| Interest Expense | $265.10M$323.00M | −17.9% |
| Net Income | $99.30M-$301.40M | +132.9% |
05—Questions
Frequently Asked Questions
What new financial information does this filing provide?
The filing presents the consolidated financial statements of Matthew Clark (Holdings) Limited for the year ended February 28, 2010, Constellation's 50 percent owned joint venture. It also includes the signature page, the revised index to exhibits, and the Item 15 listing of financial statements. The filing states that Constellation's own financial statements were previously submitted with its Annual Report on Form 10-K.
What is Matthew Clark's business?
According to the filing, Matthew Clark (Holdings) Limited is a wholesale wine and spirits merchant operating solely in the UK. It supplies beverages, both alcoholic and non-alcoholic, to pubs, bars, hotels, restaurants and leisure outlets, and employs a 200-strong sales force offering next-day delivery.
How did the joint venture perform in fiscal 2010 compared with fiscal 2009?
Turnover rose to 637.8 million from 580.8 million, and gross profit increased to 83.0 million from 80.0 million. Operating profit was 10.3 million, compared with an operating loss of 21.0 million in fiscal 2009, which included a goodwill impairment. Profit for the financial year was 5.1 million, compared with a loss of 27.3 million the prior year.
What debt and pension obligations does the joint venture carry?
The filing states that the group repaid 15 million of debt over the year. Its secured bank loan runs until April 2012 subject to covenants. Matthew Clark Wholesale Limited and Forth Wines Limited must pay 1.25 million per year for 10 years to the Constellation Europe Group Pension Plan Trustees, a fixed group-level amount.
06—Continue