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STZ · Constellation Brands

50 filings

10-Q

STZ 10-Q Quarterly Reports

Constellation Brands - 50 quarterly reports

Filing 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
  1. 2027-Q2

    Constellation Brands Quarterly Report for Q2 Ended Aug 31, 2026

    Constellation Brands, Inc. reported net sales of $2.63 billion for the three months ended August 31, 2026, up from $2.48 billion a year earlier, driven by shipment volume growth of 5.5% in the Beer segment and 15.4% in the Wine and Spirits segment. Operating income for the quarter was $805.0 million, compared with $874.0 million a year ago, reflecting asset impairment and related expenses of $49.8 million tied to the planned divestiture of the Nelson's Green Brier business, higher marketing spend, and unfavorable short-term incentive accruals. Net income attributable to CBI rose to $565.8 million from $466.0 million, primarily because of a lower provision for income taxes; the quarterly effective tax rate was 20.2% versus 37.9% a year earlier. For the six months, net income attributable to CBI was $1.22 billion and diluted EPS was $7.11. The balance sheet shows total debt of $10.32 billion as of August 31, 2026, down from February 28, 2026, with cash and cash equivalents of $98.5 million. Operating cash flow for the six months was $1.48 billion, and the company repurchased $454.7 million of treasury stock. Management now expects its reported effective tax rate for Fiscal 2027 to be in the range of 11% to 13%, including an expected income tax benefit of approximately $100 million to $150 million in the three months ending November 30, 2026, tied to foreign tax reform enacted in September 2026. Subsequent events include the October 2026 acquisition of the SpikedAde spirit-based RTD brand for an initial $75 million, with up to $278 million of contingent consideration over five years, and the September 2026 redemption of $600.0 million of 4.35% senior notes. The company also declared a quarterly dividend of $1.03 per Class A share.

    Oct 7, 2026
  2. 2027-Q1

    Constellation Brands Quarterly Report for Q1 Ended May 31, 2026

    Constellation Brands, Inc. reported first quarter fiscal 2027 results for the three months ended May 31, 2026, with net sales of $2,432.7 million, down from $2,515.0 million a year earlier, primarily reflecting the 2025 Wine Divestitures, partially offset by higher Beer net sales driven by shipment volume growth and pricing. Operating income rose to $845.3 million from $713.8 million, largely due to favorable Comparable Adjustments, including net gains on undesignated commodity derivative contracts versus losses a year ago, and efficiency initiatives including the 2025 Restructuring Initiative. Net income attributable to CBI was $653.8 million, or $3.79 per diluted share, compared with $516.1 million, or $2.90 per diluted share, in the prior-year quarter. Beer segment net sales increased to $2,283.5 million, with shipments of 113.3 million case equivalents, up 1.8%, while Wine and Spirits net sales fell to $149.2 million, reflecting $142.0 million from divested brands. Cash flow from operations was $661.8 million, and the company repurchased 1,465,295 shares for $223.8 million during the quarter. Total long-term debt including current maturities was $10,197.5 million at May 31, 2026, after issuing $500.0 million of 4.85% senior notes due 2031 and redeeming $600.0 million of 3.70% notes. The company also expects its reported effective tax rate for Fiscal 2027 to be in the range of 16% to 18%, and disclosed a New Zealand Wine Divestitures transaction completed in June 2026. The filing also discloses pending securities litigation (the Meza class action, with oral argument on a motion to dismiss scheduled for July 22, 2026) and related derivative suits, and states that a $0.6 million restructuring cost was recognized in the quarter against $122.5 million cumulative costs under an initiative expected to yield over $200 million in net annualized cost savings by Fiscal 2028.

    Jul 1, 2026
  3. 2026-Q3

    Constellation Brands Quarterly Report for Q3 Ended Nov 30, 2025

    Constellation Brands, Inc. reported a nine-month net sales decline of 10%, to $7,218.8 million from $8,044.5 million, driven mainly by the loss of sales from the Wine and Spirits Divestitures, lower Beer net sales from shipment volume declines, and a decline in organic Wine and Spirits net sales. Beer net sales fell 4% to $6,589.2 million, with shipments down 5.0% and depletions down 2.7%. Despite lower sales, operating income rose to $2,279.8 million from $505.2 million, largely because the prior-year period included a $2,250.0 million goodwill impairment. Net income attributable to CBI increased to $1,484.9 million, or $8.43 per diluted share, from $293.9 million, or $1.61 per diluted share. For the third quarter alone, net sales fell 10% and operating income fell 13%, reflecting restructuring costs, tariffs on aluminum, and lower Beer gross profit. Cash flow and capital allocation were central to the period. Operating cash flow was $2,106.2 million versus $2,557.5 million, and purchases of property, plant, and equipment were $656.1 million versus $931.5 million. The company repurchased $824.1 million of Class A Stock in the nine months, leaving $3,175.9 million under its $4.0 billion 2025 Authorization. Total debt was $10,663.8 million, a decrease of $833.9 million, or 7%, from February 28, 2025, after the company used proceeds from the 2025 Wine Divestitures, which totaled $845.9 million, to repay debt. Management expects to return $4.0 billion through share repurchases from Fiscal 2026 through Fiscal 2028. Looking ahead, the 2025 Restructuring Initiative is now estimated to result in $110 million to $130 million of cumulative pre-tax costs, with over $200 million in net annualized cost savings expected by Fiscal 2028. Management expects Beer tariffs of approximately $70 million and Wine and Spirits tariffs of approximately $13 million for Fiscal 2026, and expects the reported effective tax rate for Fiscal 2026 to be in the range of 17% to 19%. The company also noted that the OB3 Act is expected to negatively affect its Fiscal 2026 effective tax rate.

    Jan 8, 2026
  4. 2026-Q2

    Constellation Brands Quarterly Report for Q2 Ended Aug 31, 2025

    Constellation Brands, Inc. reported a sharp swing back to profitability for the second quarter and six months ended August 31, 2025, largely because the prior year included a $2.25 billion goodwill impairment on its Wine and Spirits reporting unit. For the three months ended August 31, 2025, net sales fell to $2,481.0 million from $2,918.9 million, with Beer net sales at $2,345.0 million and Wine and Spirits at $136.0 million. Operating income was $874.0 million versus a loss of $1,229.4 million a year earlier, and net income attributable to CBI was $466.0 million compared with a loss of $1,199.0 million. For the six months, net income attributable to CBI was $982.1 million versus a loss of $322.0 million, and diluted EPS was $5.55 versus a loss of $1.77. The top-line decline reflects the June 2025 sale of a portion of the wine and spirits business (2025 Wine Divestitures, $846.5 million in consideration) and the January 2025 SVEDKA divestiture, along with lower Beer shipment volume partially offset by pricing. Management cited tariffs on aluminum cans and fixed-cost absorption as headwinds to Beer gross profit. The company also initiated a 2025 Restructuring Initiative, with $21.6 million of pre-tax costs in the six months and cumulative costs of $71.3 million, and expects over $200 million in net annualized cost savings by Fiscal 2028. On the balance sheet, total debt outstanding was $10,544.9 million, down $952.8 million from February 28, 2025, after debt repayments funded partly by the wine divestiture proceeds. The company repurchased $604.0 million of stock during the six months under a $4.0 billion authorization, with $3,396.0 million remaining, and expects to return $4.0 billion through share repurchases from Fiscal 2026 through Fiscal 2028. Operating cash flow was $1,489.3 million for the six months, and the company's revolving credit facility had $1,986.0 million of remaining borrowing capacity at August 31, 2025.

    Oct 7, 2025
  5. 2026-Q1

    Constellation Brands Quarterly Report for Q1 Ended May 31, 2025

    Constellation Brands, Inc. reported a weaker first quarter of fiscal 2026 (three months ended May 31, 2025). Net sales declined to $2,515.0 million from $2,661.8 million, with Beer net sales of $2,234.5 million (down $38.3 million, or 2%) and Wine and Spirits net sales of $280.5 million (down $108.5 million, or 28%). Operating income fell 24% to $713.8 million, driven by $52.1 million of assets held for sale impairment and related expenses tied to the 2025 Wine Divestitures, unfavorable Comparable Adjustments including losses on undesignated commodity derivatives, and lower segment net sales. Net income attributable to CBI decreased 41% to $516.1 million, and diluted EPS fell to $2.90 from $4.78. Management attributes the sales decline to weaker consumer demand, lower Wine and Spirits shipment volume, and retailer destocking, partially offset by Beer pricing. Cash flow from operations was $637.2 million, versus $690.5 million a year earlier. Capital expenditures dropped to $192.8 million from $375.3 million, and the company returned cash through $306.1 million of share repurchases and $182.2 million of dividends paid. Total debt rose to $11,567.0 million, with a new $500.0 million 4.80% senior notes issuance in May 2025. Subsequent to quarter end, the company closed the 2025 Wine Divestitures for $857.6 million in net cash proceeds, used to repay debt, including the $500.0 million 5.00% February 2023 Senior Notes on June 12, 2025, and the $400.0 million 4.75% December 2015 Senior Notes on July 2, 2025. The company also continues its 2025 Restructuring Initiative, which has incurred $63.0 million of cumulative pre-tax costs against an estimated $80 million to $100 million total, with net annualized cost savings expected to exceed $200 million by Fiscal 2028. Management expects Fiscal 2026 effective tax rate of 14% to 16% and plans to return $4.0 billion in share repurchases over the next three fiscal years, with $3,618.9 million remaining under the 2025 Authorization as of July 2, 2025.

    Jul 2, 2025
  6. 2025-Q3

    Constellation Brands Quarterly Report for Q3 Ended Nov 30, 2024

    Constellation Brands, Inc. reported results for the three and nine months ended November 30, 2024 (Third Quarter and Nine Months 2025). Net sales for the nine months rose to $8.04 billion from $7.82 billion, driven by Beer growth, partly offset by lower Wine and Spirits sales. However, the company recorded a $2.25 billion goodwill impairment on its Wine and Spirits reporting unit in the nine-month period, which cut operating income to $505.2 million from $2.54 billion and reduced net income attributable to CBI to $293.9 million from $1.34 billion. Diluted earnings per share for the nine months were $1.61 versus $7.25 a year earlier. In the third quarter alone, net sales were essentially flat at $2.46 billion, Beer net sales grew 3% on pricing and shipment volume, and Wine and Spirits net sales fell 14%. Net income attributable to CBI increased 21% to $615.9 million, largely due to a lower income tax provision. The company also recorded a $38.6 million impairment on its Exchangeable Shares in Canopy, and the balance sheet shows total assets down to $22.81 billion from $25.69 billion, mainly reflecting the goodwill write-down and lower goodwill balances. Subsequent to quarter end, on January 6, 2025, the company sold the SVEDKA brand for $409.2 million in cash proceeds and expects a gain of $250 million to $275 million. The company repurchased $668.1 million of treasury stock during the nine months, fully utilized its 2021 repurchase authorization, and now plans fiscal 2025 capital expenditures of $1.3 billion, including $1.0 billion for Beer, primarily for the Mexico Beer Projects.

    Jan 10, 2025
  7. 2025-Q2

    Constellation Brands Quarterly Report for Q2 Ended Aug 31, 2024

    Constellation Brands, Inc. reported a sharply weaker second quarter and six months of Fiscal 2025 for the period ended August 31, 2024, driven primarily by a $2.25 billion goodwill impairment in its Wine and Spirits reporting unit. Net sales for the three months rose to $2,918.9 million from $2,836.8 million, with Beer net sales up to $2,530.2 million on 4.6% shipment volume growth, while Wine and Spirits net sales fell 12% to $388.7 million. The company reported a net loss attributable to CBI of $1,199.0 million for the quarter and a net loss of $322.0 million for the six months, compared with net income of $690.0 million and $825.9 million a year earlier. Management attributes the impairment to negative trends in the U.S. wholesale wine market, including declines in the overall wine market and in its mainstream and premium wine brands. Beer remained the stronger segment: six-month Beer operating income rose to $2,000.7 million from $1,751.7 million, supported by shipment volume growth, pricing and cost savings initiatives. Operating cash flow for the six months increased to $1,872.3 million from $1,622.0 million, while cash and cash equivalents fell to $64.6 million and total stockholders' equity declined to $8,155.9 million from $10,064.6 million. Goodwill fell to $5,715.4 million from $7,980.3 million following the impairment and the June 2024 Sea Smoke acquisition, which cost $170.0 million. On the Canopy investment, the company converted its Canopy common shares and a promissory note into Exchangeable Shares in April 2024, recognizing an $83.3 million net gain for the six months. The company repurchased $449.2 million of stock during the six months and declared a quarterly dividend of $1.01 per Class A share on October 1, 2024. Management reported an effective tax rate expectation of 8% to 10% for Fiscal 2025.

    Oct 3, 2024
  8. 2025-Q1

    Constellation Brands Quarterly Report for Q1 Ended May 31, 2024

    Constellation Brands, Inc. reported net sales of $2,661.8 million for the three months ended May 31, 2024, up from $2,514.9 million in the prior-year quarter, with Beer net sales of $2,272.8 million driven by shipment volume growth and favorable pricing, while Wine and Spirits net sales declined to $389.0 million. Operating income rose to $941.6 million from $764.7 million, and net income attributable to CBI increased to $877.0 million from $135.9 million, helped substantially by an $83.3 million net gain on the conversion and exchange of its Canopy investment into Exchangeable Shares and by the absence of the prior-year $123.5 million Canopy impairment. The effective tax rate was 3.0% versus 39.6% a year earlier, reflecting a net income tax benefit from the resolution of prior-period tax examinations. Cash flow from operations was $690.5 million, with capital expenditures of $375.3 million, largely related to the Mexico Beer Projects. The company paid $185.3 million in dividends and repurchased $200.0 million of Class A Stock during the quarter, leaving $2,366.7 million available under its repurchase authorizations as of July 3, 2024. Total long-term debt including current maturities was $11,089.1 million at May 31, 2024, and cash and cash equivalents declined to $73.8 million, with short-term borrowings rising to $793.2 million in commercial paper. Subsequent to the quarter, the company acquired the Sea Smoke business in June 2024 for $170.0 million, closed the sale of remaining assets at the canceled Mexicali Brewery in July 2024, and declared a quarterly dividend of $1.01 per Class A share.

    Jul 3, 2024
  9. 2024-Q3

    Constellation Brands Quarterly Report for Q3 Ended Nov 30, 2023

    Constellation Brands, Inc. reported results for the three and nine months ended November 30, 2023. For the nine months, net sales were $7,822.6 million versus $7,454.8 million a year earlier, operating income was $2,540.3 million versus $2,376.2 million, and net income attributable to CBI was $1,335.0 million versus a loss of $(294.0) million. The filing attributes the swing largely to lower impairment and other losses on the Canopy investment, which totaled $(477.4) million in losses from unconsolidated investments for the nine months versus $(1,944.2) million a year earlier, and to Beer segment growth, with Beer net sales up 9% for the nine months driven by 6.6% shipment volume growth and favorable pricing. The Wine and Spirits segment declined, with net sales down 11% for the nine months, reflecting lower branded shipment volume and the 2022 Wine Divestiture. Cash flow from operations was $2,346.8 million for the nine months, while capital expenditures were $911.9 million, largely tied to the Mexico Beer Projects. Total debt outstanding was $11,698.5 million at November 30, 2023, down $762.8 million from February 28, 2023. The company repurchased $249.7 million of Class A Stock under the 2021 Authorization during the nine months, and a new $2.0 billion 2023 Authorization was approved in November 2023. The Board also declared a quarterly dividend of $0.89 per Class A share payable February 22, 2024. The filing notes ongoing risks including the Canopy investment, whose carrying value was reduced to $73.6 million, a pending appeal in the Corona Hard Seltzer and Modelo Ranch Water trademark litigation, and the company's expectation that inflationary pressures and supply chain disruptions could continue to affect results through the remainder of Fiscal 2024.

    Jan 5, 2024
  10. 2024-Q2

    Constellation Brands Quarterly Report for Q2 Ended Aug 31, 2023

    Constellation Brands, Inc. reported net sales of $2,836.8 million for the three months ended August 31, 2023, and $5,351.7 million for the six months, with net sales increasing 7% for both periods, largely due to higher Beer net sales driven by shipment volume growth and favorable pricing. Operating income rose 20% to $978.7 million in the quarter and 7% to $1,743.4 million for the six months. Net income attributable to CBI was $690.0 million for the quarter and $825.9 million for the six months, compared with net losses of $(1,151.2) million and $(761.7) million in the prior-year periods, which were driven mainly by impairments of the Canopy Equity Method Investment. Equity method impairments and Canopy-related losses were much smaller in the current year, with a $135.8 million impairment of equity method investments in the six months, and the Canopy Equity Method Investment carrying value fell to $134.8 million from $485.8 million at February 28, 2023. Beer segment net sales were $2,392.7 million for the quarter, up 12%, with Mexican beer shipment volume growth of $188.2 million and pricing contributing $59.3 million. Wine and Spirits net sales declined 14% in the quarter to $444.1 million, reflecting lower branded shipment volume, primarily in lower-end brands, and the Wine Divestiture. Cash provided by operating activities was $1,622.0 million for the six months, versus $1,654.3 million a year earlier, while capital expenditures rose to $582.0 million from $435.0 million, largely related to the Mexico Beer Projects. Total debt was $11,706.5 million at August 31, 2023, down $754.8 million from February 28, 2023, and the company declared a quarterly dividend of $0.89 per Class A share on October 4, 2023. The filing also highlights pending risks, including a Canopy Transaction that would change the company's Canopy stake and accounting, a trademark appeal by Cervecería Modelo de México in the Second Circuit following a March 2023 jury verdict in the company's favor, and a possible sale of the remaining assets at the canceled Mexicali Brewery, with no assurance of success. The company expects its Fiscal 2024 effective tax rate to be in the range of 19% to 21%, excluding future Canopy equity in earnings or losses.

    Oct 5, 2023
  11. 2024-Q1

    Constellation Brands Quarterly Report for Q1 Ended May 31, 2023

    Constellation Brands, Inc. reported net sales of $2,514.9 million for the three months ended May 31, 2023 (First Quarter 2024), up from $2,363.2 million a year earlier, driven primarily by Beer segment growth. Beer net sales rose to $2,098.6 million from $1,898.2 million on shipment volume growth within the Mexican beer portfolio and favorable pricing, while Wine and Spirits net sales declined to $416.3 million from $465.0 million. Operating income was $764.7 million versus $816.4 million in the prior-year quarter. Net income attributable to CBI fell to $135.9 million from $389.5 million, primarily due to a $123.5 million impairment of the Canopy Equity Method Investment, larger equity losses from Canopy ($219.8 million), and a $71.8 million unrealized loss on securities measured at fair value. Income (loss) from unconsolidated investments was $(415.4) million, compared with $(187.9) million a year earlier. Interest expense rose to $118.2 million from $88.5 million, and the effective tax rate was 39.6% versus 23.9%. Diluted EPS for Class A Stock was $0.74 compared with $2.06. Balance sheet and cash flow: cash and cash equivalents were $192.5 million at May 31, 2023. Net cash provided by operating activities was $665.4 million, and capital expenditures were $277.0 million. The company issued $750.0 million of 4.90% senior notes due 2033 in May 2023, and total debt outstanding was $12,357.0 million. The company completed the Craft Beer Divestitures in June 2023 and removed Canopy as a reportable segment effective May 31, 2023.

    Jun 30, 2023
  12. 2023-Q3

    Constellation Brands Quarterly Report for Q3 Ended Nov 30, 2022

    Constellation Brands, Inc. reported net sales of $2,436.5 million for the three months ended November 30, 2022, up 5%, and operating income of $746.7 million, down 11%. Net income attributable to CBI was $467.7 million, compared with $470.8 million a year earlier. For the nine months, net sales rose 11% to $7,454.8 million and operating income rose 44% to $2,376.2 million, led by the Beer segment, where net sales grew 14% on shipment volume growth and pricing. The company still posted a nine-month net loss attributable to CBI of $294.0 million, narrowed from $435.8 million, because of a $1,060.3 million impairment of its Canopy Equity Method Investment and equity losses from Canopy's results. The quarter included the completion of the Reclassification in November 2022, which eliminated the Class B Stock and required a $1,500.0 million cash payment to Class B holders at $64.64 per share. The company funded this with its $1.0 billion August 2022 term loan and commercial paper borrowings, which contributed to total debt of $12,172.3 million, up $1,755.8 million from February 28, 2022. Cash and cash equivalents were $185.0 million at November 30, 2022. Operating cash flow for the nine months was $2,280.6 million, compared with $2,444.1 million a year earlier. The filing also details the proposed Canopy Transaction, which would lead the company to convert its Canopy common shares into non-voting Exchangeable Shares and to stop applying the equity method, with the investment instead carried at fair value. The company also reported an effective tax rate of 305.7% for the nine months, and it expects a fiscal 2023 effective tax rate in the range of 73% to 75%. A trademark lawsuit by Cervecería Modelo de México over the Corona Hard Seltzer and Modelo Ranch Water brand names remains pending, with the court considering a trial starting in March 2023.

    Jan 5, 2023
  13. 2023-Q2

    Constellation Brands Quarterly Report for Q2 Ended Aug 31, 2022

    Constellation Brands, Inc. reported net sales of $2,655.1 million for the second quarter ended August 31, 2022, up 12% from $2,371.1 million, driven primarily by Beer shipment volume growth and favorable pricing. Operating income rose 10% to $813.1 million, largely due to improvements in the Beer segment, including a decrease in inventory obsolescence. For the six months, net sales were $5,018.3 million, up 14%, and operating income was $1,629.5 million, up 100% from $814.3 million, partly because the prior-year period included a $665.9 million impairment of brewery construction in progress. Net loss attributable to CBI widened sharply in the quarter to $(1,151.2) million, compared with net income of $1.5 million a year earlier. The filing attributes this mainly to a $1,060.3 million other-than-temporary impairment of the Canopy Equity Method Investment, which was written down to an estimated fair value of $634.8 million, and to equity losses from Canopy of $(650.7) million for the quarter, including a $460.8 million goodwill impairment at Canopy. For the six months, the net loss attributable to CBI was $(761.7) million, narrowed from $(906.6) million. The company is also pursuing the Reclassification, under which each share of Class B Stock would convert into one share of Class A Stock plus $64.64 in cash. Management expects an aggregate cash payment of $1.5 billion to Class B holders, to be funded partly by a $1.0 billion August 2022 term loan and up to $500 million of short-term debt. Subsequent to quarter end, on October 6, 2022, the company sold certain mainstream and premium wine brands and related inventory, with net proceeds expected primarily to reduce outstanding borrowings.

    Oct 6, 2022
  14. 2023-Q1

    Constellation Brands Quarterly Report for Q1 Ended May 31, 2022

    Constellation Brands, Inc. reported net sales of $2,363.2 million for the three months ended May 31, 2022, up from $2,026.5 million a year earlier, an increase the MD&A states as 17%. The increase was driven mainly by the Beer segment, where net sales rose to $1,898.2 million (up 21%) on shipment volume growth within the Mexican beer portfolio and favorable pricing. Operating income was $816.4 million, compared with $75.1 million in the prior-year quarter, which included a $665.9 million impairment of Mexicali Brewery construction in progress. Net income attributable to CBI was $389.5 million, or $2.06 per diluted Class A share, compared with a net loss of $(908.1) million, or $(4.74) per share. The results were also affected by a $(187.9) million loss from unconsolidated investments, largely from the Canopy equity method investment, and Canopy segment net sales of $88.2 million, down 25%. Cash flow from operations was $758.2 million, compared with $716.0 million. The company repurchased $1,007.6 million of treasury stock in the quarter and fully utilized its 2018 repurchase authorization. In May 2022 it issued $1,850.0 million of senior notes and used proceeds to tender for and later redeem its 3.20% February 2018 and 4.25% May 2013 senior notes. Total debt outstanding was $10,977.3 million at May 31, 2022, and the company had $2,114.0 million of remaining revolving credit capacity. A subsequent event is the announced Reclassification, under which each Class B share would convert into one Class A share plus $64.64 in cash, with the company expecting an aggregate cash payment of $1.5 billion to Class B holders at the Effective Time. Completion is subject to stockholder approvals, an effective Form S-4 registration statement and NYSE listing approval. The company also states that the exercise of the November 2018 Canopy Warrants would require a cash outflow of approximately $5.9 billion based on the warrant terms, and that the exercise price exceeded Canopy's stock price as of May 31, 2022.

    Jun 30, 2022
  15. 2022-Q3

    Constellation Brands Quarterly Report for Q3 Ended Nov 30, 2021

    Constellation Brands, Inc. reported a quarterly 10-Q covering the three and nine months ended November 30, 2021. For the nine months, net sales rose to $6.72 billion from $6.66 billion, but the company posted a net loss attributable to CBI of $435.8 million, compared with net income of $1.62 billion a year earlier. The swing was driven largely by an $1.53 billion unrealized net loss on securities measured at fair value (primarily the Canopy warrants and Canopy Debt Securities) and a $665.9 million impairment of brewery construction in progress at the suspended Mexicali Brewery. Operating income fell to $1.65 billion from $2.23 billion, reflecting that impairment, lower Wine and Spirits net sales following recent divestitures, and higher Beer operating costs, partially offset by Beer shipment volume growth and pricing. For the third quarter, net sales decreased to $2.32 billion from $2.44 billion, while Beer net sales rose to $1.75 billion from $1.68 billion. Net income attributable to CBI was $470.8 million, down from $1,280.9 million, largely because of the Canopy fair value loss versus a gain in the prior-year quarter. Operating income increased to $839.9 million from $783.1 million. Cash flow from operations was $2.44 billion for the nine months, up from $2.36 billion. The company repurchased $1.39 billion of Class A Common Stock under the 2018 Authorization, and cash and cash equivalents ended the period at $361.3 million. Total debt outstanding was $10,332.5 million, and the company stated it was in compliance with its covenants. Fiscal 2022 capital expenditures are planned at $1.0 billion to $1.1 billion.

    Jan 6, 2022
  16. 2022-Q2

    Constellation Brands Quarterly Report for Q2 Ended Aug 31, 2021

    Constellation Brands, Inc. reported a six-month net loss attributable to CBI of $906.6 million for the period ended August 31, 2021, compared with net income of $334.2 million a year earlier. The swing was driven largely by an unrealized net loss on securities measured at fair value of $1,335.1 million, tied to its Canopy Growth investment, and a $665.9 million impairment of brewery construction in progress at the Mexicali Brewery. Excluding these items, the filing shows the Beer segment carrying the business: Beer net sales rose to $3,433.3 million for the six months from $3,020.0 million, driven by $344.7 million of Mexican beer volume growth, while Wine and Spirits net sales fell to $964.3 million from $1,203.8 million due largely to recent divestitures. Consolidated net sales increased to $4,397.6 million from $4,223.8 million. For the three months ended August 31, 2021, net income attributable to CBI was $1.5 million, down from $512.1 million, as the Canopy fair value loss of $590.0 million and an increase in Beer obsolescence weighed on results. Operating income for the six months fell to $814.3 million from $1,448.7 million. Cash and cash equivalents declined to $103.4 million, while operating cash flow was $1,525.9 million. The company repurchased $1,305.0 million of Class A stock during the six months and continued dividend payments of $289.3 million. Balance sheet highlights include total debt of $10,573.5 million, with the company issuing $1,000.0 million of 2.25% senior notes due 2031 in July 2021 and using the proceeds, together with cash on hand, to redeem the 2.70% May 2017 and 2.65% November 2017 senior notes. Commercial paper outstanding was $486.0 million, and the company reported $1,501.8 million of remaining borrowing capacity under its revolving credit facility as of August 31, 2021.

    Oct 6, 2021
  17. 2022-Q1

    Constellation Brands Quarterly Report for Q1 Ended May 31, 2021

    Constellation Brands, Inc. reported a net loss attributable to CBI of $(908.1) million for the three months ended May 31, 2021, compared with $(177.9) million a year earlier, as net sales rose to $2,026.5 million from $1,963.4 million. The filing attributes the larger loss mainly to a $665.9 million impairment of brewery construction in progress tied to the Mexicali Brewery, which the Board authorized management to sell or abandon in April 2021, and to a $745.1 million unrealized net loss on securities measured at fair value, primarily Canopy warrants. Operating income fell to $75.1 million from $610.0 million. Beer net sales grew 14% to $1,572.0 million on volume growth in the Mexican beer portfolio, while Wine and Spirits net sales declined 22% to $454.5 million largely due to recent divestitures. Cash flow and balance sheet items were mixed. Net cash provided by operating activities was $716.0 million, versus $686.5 million a year earlier. Cash and cash equivalents rose to $503.8 million, and total debt was $10,444.2 million, essentially unchanged from February 28, 2021. The company repurchased 1,696,722 Class A shares for $400.8 million and paid dividends of $146.7 million. Subsequent to quarter-end, it entered into a $500.0 million accelerated share repurchase agreement on June 30, 2021, and declared a quarterly dividend of $0.76 per Class A share. The company expects its fiscal 2022 effective tax rate to fall in a range of 36% to 38%, excluding future changes in the fair value of its Canopy investment and future equity in Canopy's earnings or losses. As of May 31, 2021, exercising all Canopy warrants held would have required a cash outflow of approximately $6.5 billion. The filing also notes that the company suspended all Mexicali Brewery construction activities following a negative result from a public consultation in Mexico.

    Jun 30, 2021
  18. 2021-Q3

    Constellation Brands Quarterly Report for Q3 Ended Nov 30, 2020

    Constellation Brands, Inc. filed this Form 10-Q for the third quarter of fiscal 2021, ended November 30, 2020. For the nine months, net sales were $6.66 billion, up from $6.44 billion, and net income attributable to CBI was $1.62 billion, compared with a loss of $410.2 million in the prior-year period. The swing was driven mainly by an unrealized gain on Canopy-related securities of $524.7 million versus a $2.20 billion loss a year earlier, along with lower impairments of assets held for sale ($24.0 million versus $417.0 million). Operating income rose to $2.23 billion from $1.61 billion, led by Beer segment operating income of $1.99 billion. The company completed the Further Revised Wine and Spirits Transaction and the Nobilo Wine sale in January 2021, receiving cash proceeds of $559.5 million and $129.1 million respectively, with up to $250 million of contingent consideration possible. The Paul Masson sale is expected to bring about $265 million in the fourth quarter of fiscal 2021. Proceeds are earmarked for repaying the 3.75% May 2013 Senior Notes and general corporate purposes. Total debt was $10.98 billion at November 30, 2020, and the Board authorized a new $2.0 billion share repurchase program in January 2021. Key risks include the Canopy investment, which carried a fair value of $4,083.5 million for the equity method stake, the Mexicali Brewery, where approximately $710 million of capitalized fixed assets remain and construction is paused after a negative public consultation, and COVID-19 effects on on-premise depletion volumes.

    Jan 7, 2021
  19. 2021-Q2

    Constellation Brands Quarterly Report for Q2 Ended Aug 31, 2020

    Constellation Brands, Inc. reported net sales of $2,260.4 million for the second quarter of fiscal 2021, down 4% from $2,344.0 million a year earlier, and $4,223.8 million for the six months, down 5%. The decline was driven by Wine and Spirits volume from brands to be divested and by COVID-19 containment measures that reduced on-premise sales and Mexican brewery production in June 2020, partly offset by favorable pricing and product mix. Operating income rose 17% to $838.7 million in the quarter and 8% to $1,448.7 million for the six months, largely because the prior-year quarter included business transformation charges, including an impairment of assets held for sale. Net income attributable to CBI was $512.1 million for the quarter, compared with a loss of $(525.2) million a year earlier, and the filing attributes the $1,037.3 million improvement largely to a smaller loss from unconsolidated investments, mainly its Canopy Growth investments. The Canopy investments remain the dominant balance sheet and earnings variable. The Canopy equity method investment had a carrying value of $2,713.1 million, against a fair value of $2,345.3 million at August 31, 2020, which the company says indicates an impairment of $367.9 million; management concluded it was not other-than-temporary. The company's Canopy warrants would require a cash outflow of approximately $5.9 billion if fully exercised. Liquidity appears adequate: cash and cash equivalents were $204.6 million, total debt was $11,600.6 million (down $584.0 million from February 29, 2020), and remaining revolving credit capacity was $1,988.2 million. Operating cash flow was $1,444.9 million for the six months, versus $1,419.4 million a year earlier. The business transformation remains in progress. Pending sales of Wine and Spirits brands and the Concentrate business are expected to close by the end of the third quarter of fiscal 2021 and are subject to FTC review, with proceeds intended to reduce borrowings. Expansion of the Mexicali brewery has been paused after a negative public consultation, with about $720 million of construction in progress capitalized and an estimated additional $200 million of commitments, which could lead to future impairments. The company also expects unfavorable fixed cost absorption from West Coast wildfires of $25 million to $35 million in the third quarter and $10 million to $15 million in the fourth quarter of fiscal 2021.

    Oct 1, 2020
  20. 2021-Q1

    Constellation Brands Quarterly Report for Q1 Ended May 31, 2020

    Constellation Brands, Inc. reported net sales of $1,963.4 million for the three months ended May 31, 2020, down from $2,097.2 million a year earlier, and the filing states net sales decreased 6%. Management attributes the decline mainly to Beer volume loss from COVID-19 containment measures, including reduced production at its Mexican breweries and fewer on-premise sales, and to Wine and Spirits branded volume declines, partly offset by favorable pricing. Operating income was $610.0 million versus $622.7 million, a 2% decrease as stated in the filing. The bottom line remained a net loss attributable to CBI of $(177.9) million, improved from $(245.4) million. The improvement reflects a smaller loss from unconsolidated investments of $(571.2) million, compared with $(930.6) million, which includes a $(377.6) million equity loss from Canopy Growth and a $(197.3) million unrealized loss on securities measured at fair value. The quarter also carried a $25.0 million impairment of assets held for sale and a tax provision of $(104.4) million. Operating cash flow rose to $686.5 million from $593.1 million, and the company repaid $959.5 million of long-term debt principal while issuing $1,194.6 million of new long-term debt. The company continues a portfolio transformation. It has agreed to sell portions of its Wine and Spirits business under the Further Revised Wine and Spirits Transaction, with an adjusted price of approximately $783 million plus up to $250 million of contingent consideration, along with the Nobilo Wine brand for $130 million, Paul Masson for approximately $255 million, and a concentrates business, all subject to FTC review. It also acquired Empathy Wines in June 2020 and raised its Canopy ownership to 38.6% in May 2020 by exercising warrants for $173.9 million.

    Jul 1, 2020
  21. 2020-Q3

    Constellation Brands Quarterly Report for Q3 Ended Nov 30, 2019

    Constellation Brands, Inc. reported a sharply weaker third quarter and nine months ended November 30, 2019, driven mainly by its Canopy Growth investments and impairments tied to its planned wine and spirits divestitures. Net sales for Third Quarter 2020 were $1,999.4 million, up 1% from $1,972.6 million, led by Beer growth. Operating income fell 52% to $267.2 million, largely due to a $390.0 million impairment of assets held for sale. For the nine months, the company reported a net loss attributable to CBI of $(410.2) million, compared with net income of $2,196.4 million a year earlier, mainly because of a $(2,200.9) million unrealized net loss on securities measured at fair value and $(409.0) million equity loss tied to the June 2019 Canopy warrant modification, partially offset by a $1,176.0 million unrealized gain from that modification. The Beer segment remained the main earnings driver, with Nine Months 2020 net sales of $4,428.4 million, up 8%, and operating income of $1,780.8 million, up from $1,601.5 million. Wine and Spirits net sales declined 9% for the nine months, reflecting branded volume declines in brands slated for divestiture. Management is pursuing sales of a portion of the wine and spirits business (revised to an adjusted transaction price of approximately $843 million plus up to $250 million of contingent consideration), the Nobilo Wine brand for $130 million, and the Ballast Point craft beer business. Net proceeds are expected to primarily reduce outstanding borrowings. Total debt was $12,356.0 million at November 30, 2019, down $1,260.5 million from February 28, 2019. The company's effective tax rate for the nine months was a 73.0% tax benefit, reflecting a $547.4 million net income tax benefit from Swiss tax reform remeasurement. Management expects the Fiscal 2020 effective tax rate to be in the range of 97% to 99%, and the company noted that the Canopy investments are expected to remain volatile.

    Jan 8, 2020
  22. 2020-Q2

    Constellation Brands Quarterly Report for Q2 Ended Aug 31, 2019

    Constellation Brands, Inc. reported its second quarter of Fiscal 2020 (quarter ended August 31, 2019) with net sales of $2,344.0 million, up 2% from $2,299.1 million a year earlier, and operating income of $719.5 million, down 6% from $765.0 million. Results were driven by Beer, where net sales rose 7% to $1,640.4 million on volume growth and favorable Mexican beer pricing. Wine and Spirits net sales fell 9% to $703.6 million on branded volume decline, and the segment carried restructuring and strategic business development costs. The bottom line was dominated by Canopy Growth investments. Income (loss) from unconsolidated investments was $(1,324.7) million for the quarter, and net loss attributable to CBI was $(525.2) million, versus net income of $1,149.5 million a year earlier. Diluted loss per Class A share was $(2.77), compared with $5.87 of diluted earnings in the prior-year quarter. The results include a $1,176.0 million unrealized gain from the June 2019 Canopy warrant modification, offset by $2,015.1 million of unrealized losses on securities measured at fair value and $484.4 million of equity losses from Canopy, including a $409.0 million warrant modification loss. The company agreed to sell a portion of its wine and spirits business for approximately $1.7 billion and Black Velvet Canadian Whisky for approximately $266 million, with proceeds expected to reduce borrowings. Management now expects an additional loss of approximately $300 million on the write-down of held-for-sale assets in the quarter ending November 30, 2019, and a one-time deferred tax asset benefit of approximately $500 million to $550 million. Total debt was $12,946.8 million at August 31, 2019, down $669.7 million from February 28, 2019.

    Oct 3, 2019
  23. 2020-Q1

    Constellation Brands Quarterly Report for Q1 Ended May 31, 2019

    Constellation Brands, Inc. reported a net loss attributable to CBI of $(245.4) million for the three months ended May 31, 2019, compared with net income attributable to CBI of $743.8 million in the prior-year quarter. The decline is driven largely by an unrealized net loss of $827.5 million on securities measured at fair value (Canopy investments) and $(106.0) million of equity losses from Canopy, recorded within income (loss) from unconsolidated investments of $(930.6) million. Operating income was essentially flat at $622.7 million versus $625.4 million, as Beer segment operating income rose to $580.6 million from $520.0 million, offset by restructuring and strategic costs in Wine and Spirits and a $(75.0) million net Comparable Adjustments impact on operating income. Consolidated net sales increased 2% to $2,097.2 million, led by Beer net sales of $1,477.4 million, up 7%, while Wine and Spirits net sales declined 8% to $619.8 million. Interest expense rose to $114.6 million from $87.8 million, and diluted loss per Class A share was $(1.30) versus $3.77 a year earlier. Cash flow from operations was $593.1 million, and total debt outstanding was $13,397.6 million at May 31, 2019. The company disclosed an agreement signed in April 2019 to sell a portion of its wine and spirits business, including approximately 30 brands, for approximately $1.7 billion, with net assets of $1,560.4 million classified as held for sale. Management also disclosed that a June 2019 modification of Canopy warrants is expected to produce a material gain in the second fiscal quarter of 2020, and that the fair value of Canopy-related investments is expected to remain volatile.

    Jun 28, 2019
  24. 2019-Q3

    Constellation Brands Quarterly Report for Q3 Ended Nov 30, 2018

    Constellation Brands, Inc. filed this Form 10-Q for the quarter ended November 30, 2018 (Fiscal 2019, third quarter). Net sales for the nine months rose to $6.32 billion from $5.82 billion, driven primarily by Beer, where net sales were $4.11 billion, up from $3.66 billion, on Mexican beer volume growth and pricing. Wine and Spirits net sales were $2.21 billion for the nine months. Operating income increased to $1.95 billion from $1.77 billion, while net income attributable to CBI rose to $2.20 billion from $1.39 billion, largely because of a $786.5 million unrealized gain on securities measured at fair value and a $99.8 million gain on the sale of the Accolade Wine Investment. The balance sheet changed significantly during the period. Equity method investments rose to $3.58 billion from $121.5 million, reflecting the November 2018 Canopy Transaction, which the filing says cost C$5,078.7 million, or $3.87 billion, and increased the Company's ownership in Canopy Growth Corporation to 36.6%. Total debt reached $13.57 billion, up $3.38 billion from February 28, 2018, after the issuance of $2.15 billion of senior notes and $1.5 billion of term loans. The filing also states that the Company expects to return to its targeted leverage ratio within 24 months after the transaction closed. For the quarter, net sales increased to $1.97 billion from $1.80 billion and net income attributable to CBI decreased to $303.1 million from $492.8 million, primarily because of an unrealized net loss of $163.9 million on Canopy-related investments. The filing states that Fiscal 2019 effective tax rate expectations are 16% to 17%, and that Wine and Spirits net sales are now expected to decrease by a low-single-digit percentage for Fiscal 2019.

    Jan 9, 2019
  25. 2019-Q2

    Constellation Brands Quarterly Report for Q2 Ended Aug 31, 2018

    Constellation Brands, Inc. (STZ) reported results for the three and six months ended August 31, 2018 (Second Quarter 2019 and Six Months 2019 in the filing's terminology). Net sales for the quarter rose 10% to $2,299.1 million, driven by Beer net sales growth of 11%, largely from volume growth in the Mexican beer portfolio, and Wine and Spirits net sales growth of 9%. Operating income increased 7% to $765.0 million. For the six months, net sales were $4,346.2 million, up 8%, and operating income was $1,390.4 million, up 9%. The largest driver of reported earnings was non-operating. Income from unconsolidated investments was $1,052.8 million for the six months, mainly from an unrealized gain of $950.4 million on the Canopy Growth investments and a $99.8 million net gain on the sale of the Accolade Wine Investment. Net income attributable to CBI rose to $1,893.3 million for the six months, versus $900.1 million a year earlier. Diluted Class A EPS was $9.64 for the six months and $5.87 for the quarter. The filing states these Canopy gains are expected to be volatile in future periods. The filing also describes a pending Canopy Transaction to acquire additional Canopy shares and warrants for approximately C$5.1 billion, or about $4 billion, expected to close on or about October 31, 2018, giving an expected approximate 37% ownership interest. Financing includes $1.5 billion of delayed draw term loans and a C$3.143 billion (about $2.4 billion) bridge agreement, which the company does not expect to draw. After closing, the company expects to limit share repurchases and certain acquisitions until it returns to its targeted leverage ratio, which it is targeting within 24 months. The company repurchased $504.3 million of stock in the six months, with $2,004.1 million remaining under the $3.0 billion authorization as of August 31, 2018.

    Oct 4, 2018
  26. 2019-Q1

    Constellation Brands Quarterly Report for Q1 Ended May 31, 2018

    Constellation Brands, Inc. reported its first quarter of fiscal 2019 (the three months ended May 31, 2018) with net sales of $2,047.1 million, up from $1,928.5 million a year earlier, and operating income of $625.4 million compared with $561.1 million. Net income attributable to CBI was $743.8 million versus $398.5 million, boosted by a $258.3 million unrealized gain on its Canopy Growth Corporation investment and a $101.4 million net gain on the sale of its Accolade Wine Investment, both recorded in income from unconsolidated investments of $364.4 million. Diluted net income per Class A share was $3.77 compared with $1.98 in the prior-year quarter. Beer segment net sales rose 11% to $1,375.1 million, driven by volume growth in the Mexican beer portfolio and favorable pricing in select markets, while Wine and Spirits net sales declined 3% to $672.0 million due largely to unfavorable shipment volumes. SG&A expenses decreased slightly to $423.2 million, and the effective tax rate was 17.3% versus 15.1% a year earlier. Cash provided by operating activities was $504.0 million, compared with $381.6 million in the prior-year period. Balance sheet and capital allocation items include total debt of $10.1 billion, a $100.0 million share repurchase in the quarter under a $3.0 billion authorization, and a quarterly dividend of $0.74 per Class A share declared on June 28, 2018. The company also acquired $153.0 million of Canopy convertible debt securities in June 2018 as a subsequent event.

    Jun 29, 2018
  27. 2018-Q3

    Constellation Brands Quarterly Report for Q3 Ended Nov 30, 2017

    Constellation Brands, Inc. filed this Form 10-Q for the quarter ended November 30, 2017 (third quarter of Fiscal 2018). Net sales were $1,799.1 million for the quarter, down 1% from $1,810.5 million, as a decrease in Wine and Spirits net sales tied largely to the Canadian Divestiture was partially offset by Beer growth driven by the Mexican beer portfolio. Operating income fell 9% to $486.8 million, largely due to a $59.0 million loss on early termination of a beer glass supply contract. Net income attributable to CBI rose 21% to $491.1 million, helped by a $216.9 million pretax unrealized gain on the Canopy Growth Corporation investment and warrants. For the nine months, net sales rose 2% to $5,819.1 million and net income attributable to CBI rose 29% to $1,393.4 million, with Beer operating income up $263.5 million to $1,459.2 million. Balance sheet and liquidity: total assets were $20,107.1 million and total debt was $9,350.2 million at November 30, 2017, up $112.1 million from February 28, 2017. Operating cash flow for the nine months was $1,468.4 million, against $1,038.3 million used in investing activities, including $705.6 million of capital expenditures. The company repaid $6,522.8 million of long-term debt and issued $6,017.9 million, funded largely by $1,500.0 million of May 2017 senior notes and $2,000.0 million of November 2017 senior notes. Shareholders' capital returns included $301.1 million in dividends and $239.2 million in share repurchases. In January 2018, the board authorized a new $3.0 billion repurchase program. The filing also notes an $86.8 million impairment of the craft beer (Ballast Point) trademark recorded in the first quarter of fiscal 2018, and that enactment of the Tax Cuts and Jobs Act is expected to reduce net deferred tax liabilities by $300 million to $400 million, to be recorded in the fourth quarter of fiscal 2018.

    Jan 5, 2018
  28. 2018-Q2

    Constellation Brands Quarterly Report for Q2 Ended Aug 31, 2017

    Constellation Brands, Inc. filed this Form 10-Q for the quarter ended August 31, 2017 (second quarter of Fiscal 2018). Net sales rose 3% to $2,084.5 million for the three months and to $4,020.0 million for the six months. Operating income increased 17% for the quarter to $713.9 million and 10% for the six months to $1,282.0 million, driven mainly by Beer segment growth, particularly the Mexican beer portfolio. Net income attributable to CBI increased 39% for the quarter to $499.5 million and 33% for the six months to $902.3 million, helped by a lower effective tax rate of 20.4% for the quarter and 18.3% for the six months. The company recorded an $86.8 million impairment of its craft beer trademark (Ballast Point) in the first quarter of Fiscal 2018, which is included in selling, general and administrative expenses. Wine and Spirits net sales fell 12% in the quarter, largely due to the Canadian Divestiture, which closed in December 2016. Cash provided by operating activities was $1,102.9 million for the six months, versus $1,044.9 million a year earlier. Debt totaled $8,947.4 million at August 31, 2017, down $290.7 million from February 28, 2017. The company issued $1.5 billion of senior notes in May 2017 and entered a restated $4.0 billion credit agreement in July 2017. It repurchased 73,129 Class A shares in the quarter under its $1.0 billion authorization, with $532.6 million remaining.

    Oct 5, 2017
  29. 2018-Q1

    Constellation Brands Quarterly Report for Q1 Ended May 31, 2017

    Constellation Brands, Inc. reported its first quarter of fiscal 2018 (three months ended May 31, 2017) with consolidated net sales of $1,935.5 million, up from $1,871.8 million, and operating income of $568.1 million, up from $552.7 million. Net income attributable to CBI was $402.8 million, compared with $318.3 million a year earlier, and diluted net income per Class A share was $2.00 versus $1.55. The filing states that the increase in net income was driven largely by Beer segment operating income growth, organic growth in Wine and Spirits, and a lower effective tax rate of 15.5% versus 31.9%, partly offset by a $111.4 million unfavorable change in Comparable Adjustments. Beer net sales rose to $1,242.3 million on Mexican beer volume growth, while Wine and Spirits net sales fell to $693.2 million largely due to the Canadian Divestiture. The quarter included an $86.8 million impairment of the craft beer trademark (Ballast Point) within SG&A, after the company cited negative craft beer trends and a disruption in its distribution transition plan. Selling, general and administrative expenses rose to $427.2 million from $328.6 million. The filing also notes that the company issued $1.5 billion of senior notes in May 2017 and used the proceeds, together with revolver borrowings, to repay the January 2008 Senior Notes and the U.S. Term A loan. Total debt was $9,211.5 million at May 31, 2017, down $26.6 million from February 28, 2017, and net cash provided by operating activities was $381.6 million. Investors should note that the reported quarterly results include the tax benefit from the adoption of the amended share-based compensation guidance and the write-down of the craft beer trademark, both of which affect comparability. The company also declared a quarterly dividend of $0.52 per Class A share and $0.47 per Class B share payable August 23, 2017, and it reported $1,000.0 million authorized for share repurchases, of which $453.1 million had been used as of May 31, 2017.

    Jun 29, 2017
  30. 2017-Q3

    Constellation Brands Quarterly Report for Q3 Ended Nov 30, 2016

    Constellation Brands, Inc.'s Form 10-Q for the third quarter ended November 30, 2016 (Fiscal 2017) reports net sales of $1,810.5 million for the three months, up 10%, and $5,703.5 million for the nine months, up 14%. Operating income rose 19% in the quarter to $534.0 million and 25% for the nine months to $1,697.6 million. Net income attributable to CBI increased 50% for the quarter to $405.9 million, driven largely by a change in the company's assertion regarding indefinite reinvestment of certain foreign earnings, which lowered the effective tax rate to 16.3%. The filing attributes growth primarily to strong demand for the Mexican beer portfolio and to acquisitions including Ballast Point, Meiomi, Prisoner, High West and Charles Smith. The company reported nine-month net cash provided by operating activities of $1,415.7 million, against $1,091.6 million a year earlier, while capital expenditures were $591.6 million and acquisitions totaled $542.2 million. Total debt stood at $8,631.6 million at November 30, 2016, up $550.4 million from February 29, 2016, after the issuance of $600.0 million of 3.70% Senior Notes due 2026 in December 2016. The company repurchased $372.6 million of stock under the 2013 Authorization during the nine months and completed that authorization after the quarter end, and a new $1.0 billion 2017 Authorization was approved in November 2016. Subsequent to the quarter, the company sold its Canadian wine business on December 17, 2016 for a transaction value of C$1.04 billion ($776.2 million), with a preliminary net gain estimated at approximately $255 million expected in the fourth quarter of Fiscal 2017. It also acquired the Obregon Brewery from Grupo Modelo for $583.4 million in December 2016, and the company expects capital expenditures of $825 million to $925 million for Fiscal 2017.

    Jan 5, 2017
  31. 2017-Q2

    Constellation Brands Quarterly Report for Q2 Ended Aug 31, 2016

    Constellation Brands, Inc. reported results for the second quarter and six months ended August 31, 2016 (fiscal 2017). For the quarter, net sales rose 17% to $2,021.2 million, operating income increased 27% to $610.9 million, and net income attributable to CBI increased 19% to $358.9 million, with diluted EPS up 17% to $1.75. For the six months, net sales increased 16% to $3,893.0 million, operating income increased 28% to $1,163.6 million, and net income attributable to CBI rose 25% to $677.2 million. The filing attributes growth primarily to strong demand for the Mexican beer portfolio, organic branded wine and spirits volume growth, and contributions from the acquired Ballast Point, Meiomi and Prisoner brands. Cash generation was strong, with net cash provided by operating activities of $1,044.9 million for the six months versus $803.1 million a year earlier. Capital spending rose to $368.6 million, driven by the Nava Brewery and glass plant expansions and Mexicali Brewery construction, and fiscal 2017 capital expenditure guidance was revised to $1.125 billion to $1.225 billion. Total debt was $8,029.0 million at August 31, 2016, down $52.2 million from February 29, 2016, after repayment of $700.0 million of 7.25% Senior Notes due 2016 and a new $700.0 million European Term A-1 loan facility under the 2016 Credit Agreement. The filing also discloses a pending High West acquisition for approximately $160 million, expected to close by the end of October 2016, and a possible initial public offering of a portion of the Canadian wine business that management expects to decide on during calendar 2016. The company's quarterly dividend was declared at $0.40 per Class A share on October 4, 2016, and it repurchased 133,311 Class A shares for $21.9 million after August 31, 2016 under a Rule 10b5-1 plan.

    Oct 5, 2016
  32. 2017-Q1

    Constellation Brands Quarterly Report for Q1 Ended May 31, 2016

    Constellation Brands, Inc. reported strong results for the first quarter of fiscal 2017 (three months ended May 31, 2016). Net sales rose 15% to $1,871.8 million from $1,631.3 million, driven mainly by strong consumer demand for the Mexican beer portfolio and by net sales from the acquired Ballast Point and Meiomi brands. Operating income increased 29% to $552.7 million from $427.3 million, and net income attributable to CBI increased 33% to $318.3 million from $238.6 million. Diluted net income per Class A share was $1.55, compared with $1.18 a year earlier. Gross profit as a percent of net sales increased to 47.1% from 45.2%, and selling, general and administrative expenses as a percent of net sales decreased to 17.6% from 19.0%. Cash flow and balance sheet activity were significant in the quarter. Net cash provided by operating activities was $345.9 million, compared with $205.7 million, and the company paid $284.9 million to acquire The Prisoner Wine Company business in April 2016. Total debt outstanding was $8,308.2 million at May 31, 2016, up $227.0 million from February 29, 2016, largely due to $700.0 million of European Term A-1 loan borrowings under the 2016 Credit Agreement. The company had $668.5 million available for share repurchases under its 2013 Authorization, and its Board declared a quarterly cash dividend of $0.40 per Class A share on June 29, 2016. The filing also notes that management is evaluating a potential initial public offering for a portion of the Canadian wine business, with a decision expected during calendar 2016. Separately, the company completed the expansion of its Nava Brewery to 20 million hectoliters in June 2016 and continues construction of the Mexicali Brewery. The Ninth Circuit denied rehearing on June 1, 2016, in an antitrust action related to the Anheuser-Busch InBev and Modelo transaction, and management believes the claim is baseless and without merit.

    Jun 30, 2016
  33. 2016-Q3

    Constellation Brands Quarterly Report for Q3 Ended Nov 30, 2015

    Constellation Brands, Inc. reported results for the third quarter and nine months ended November 30, 2015, with growth led by its Mexican beer portfolio. Net sales for the nine months were $5,005.2 million, up 7%, and operating income was $1,354.0 million, up 18%. Net income attributable to CBI rose 30% to $811.5 million, and diluted net income per Class A share was $3.99 versus $3.11. Beer net sales increased 11% to $2,816.6 million on volume growth in the Mexican beer portfolio, while Wine and Spirits net sales increased 2% to $2,188.6 million, aided by the Meiomi acquisition. Net cash provided by operating activities was $1,091.6 million for the nine months, compared with $750.1 million a year earlier. The company cited higher cash from Beer, lower Wine and Spirits inventory build, and lower income tax payments. Cash and cash equivalents were $491.3 million at November 30, 2015, and total debt was $7,403.0 million, up $55.0 million from February 28, 2015. In December 2015, the company issued $400.0 million of 4.75% Senior Notes due 2025 and acquired Ballast Point for approximately $1.0 billion. The company expects fiscal 2016 capital expenditures of $875 million to $925 million, primarily for the Nava Brewery expansion and the new Mexicali Brewery. It declared a quarterly dividend of $0.31 per Class A share on January 6, 2016, and had $703.3 million available under its share repurchase authorization.

    Jan 7, 2016
  34. 2016-Q2

    Constellation Brands Quarterly Report for Q2 Ended Aug 31, 2015

    Constellation Brands, Inc. reported its quarterly results for the three and six months ended August 31, 2015 (the second quarter and first half of fiscal 2016). Net sales for the quarter rose to $1,733.4 million from $1,604.1 million, and operating income increased to $479.4 million from $378.7 million. Net income attributable to CBI was $302.4 million for the quarter, compared with $195.8 million a year earlier. The filing attributes the growth primarily to strong consumer demand for the Mexican beer portfolio, with Beer segment operating income of $355.9 million for the quarter versus $271.0 million in the prior-year period. For the six months, net sales were $3,364.7 million and net income attributable to CBI was $541.0 million, compared with $402.5 million. Cash provided by operating activities was $803.1 million, up from $668.1 million. Cash used in investing activities of $609.0 million included $317.9 million for the purchase of business, primarily the August 2015 acquisition of the Meiomi wine brand. Total debt was $7,423.6 million at August 31, 2015, up $75.6 million from February 28, 2015. The company amended its senior credit facility in July 2015, extending maturities and increasing the revolving credit facility by $300.0 million to $1.15 billion. The company declared a quarterly cash dividend of $0.31 per Class A share on October 6, 2015, and had $703.3 million available for share repurchases under its 2013 authorization. The filing also notes that a 2014 product recall of Corona Extra affected net sales in the prior-year quarter, and that the Brewery in Nava, Coahuila is being expanded from 10 to 20 million hectoliters of capacity.

    Oct 7, 2015
  35. 2016-Q1

    Constellation Brands Quarterly Report for Q1 Ended May 31, 2015

    Constellation Brands, Inc. reported results for the three months ended May 31, 2015, in this Form 10-Q. Net sales rose 7% to $1,631.3 million from $1,526.0 million, driven mainly by strong consumer demand for the Mexican beer portfolio. Beer net sales increased 11% to $965.8 million, while Wine and Spirits net sales rose 1% to $665.5 million. Operating income increased 9% to $427.3 million, and net income attributable to CBI increased 15% to $238.6 million. Diluted net income per Class A share was $1.18, compared with $1.03 a year earlier. Interest expense fell 10% to $77.5 million, reflecting lower average interest rates, partly offset by higher average borrowings. Cash flow and balance sheet items were mixed. Net cash provided by operating activities was $205.7 million, down from $232.3 million, mainly due to higher income tax and interest payments. Total debt was $7,317.6 million at May 31, 2015, a $30.4 million decrease from February 28, 2015. The company had $834.7 million of remaining revolving credit capacity and $703.3 million available under its 2013 share repurchase authorization. The Board declared a quarterly dividend of $0.31 per Class A share, payable August 25, 2015. The company also disclosed a definitive agreement, signed in June 2015, to acquire the Meiomi wine brand for approximately $315 million, with closing expected around the beginning of August. In the quarter, it recorded $13.0 million of restructuring and related charges under a plan begun in May 2015. The IRS has proposed tax assessments for the 2010 and 2011 tax years, which the company disputes and intends to protest.

    Jul 9, 2015
  36. 2015-Q3

    Constellation Brands Quarterly Report for Q3 Ended Nov 30, 2014

    Constellation Brands, Inc. filed this Form 10-Q for the quarter ended November 30, 2014 (third quarter of fiscal 2015, per the filing's own labeling). Results for the nine months were driven largely by the Beer Business Acquisition, completed June 7, 2013 for an aggregate purchase price of $5,226.4 million. Net sales for the nine months rose to $4,671.8 million from $3,576.5 million, an increase the filing attributes primarily to $941.1 million of net sales from acquired products. Net income fell to $624.7 million from $1,785.9 million, mainly because the prior-year period included a $1,642.0 million nontaxable gain on remeasurement of the preexisting 50% Crown Imports interest and a $300.9 million impairment of goodwill and intangible assets. For the three months ended November 30, 2014, net sales were $1,541.7 million versus $1,443.3 million, and operating income was $375.6 million versus $363.8 million. The filing attributes the quarterly sales increase primarily to Beer volume growth in the Mexican beer portfolio. Unusual Items weighed on results, including a product recall of Corona Extra bottles with nine-month charges of $11.8 million net. Total debt was $7,318.8 million at November 30, 2014, up $298.3 million from February 28, 2014, largely due to $800.0 million of November 2014 Senior Notes issued to redeem the $500.0 million December 2007 Senior Notes. Capital expenditures for the nine months were $541.3 million, mainly for the Brewery expansion, and the company expects fiscal 2015 capital expenditures of $725 million to $775 million. The filing also describes a December 2014 joint venture with Owens-Illinois and purchase of a glass production plant in Nava, Mexico for approximately $300 million, and a Brewery expansion requirement to reach at least 20 million hectoliters by December 31, 2016.

    Jan 8, 2015
  37. 2015-Q2

    Constellation Brands Quarterly Report for Q2 Ended Aug 31, 2014

    Constellation Brands, Inc. reported results for its second quarter and six months ended August 31, 2014 (fiscal 2015). Net sales for the quarter rose to $1,604.1 million from $1,459.8 million, an increase of $144.3 million, or 10%, driven primarily by $73.4 million of net sales from the Beer Business Acquisition and organic beer growth of $55.6 million. Operating income fell sharply to $378.7 million from $1,674.0 million, mainly because the prior-year quarter included a $1,642.0 million nontaxable gain on remeasurement of the preexisting 50% Crown Imports interest. Quarterly net income declined to $195.8 million from $1,522.0 million, and diluted Class A EPS was $0.98 versus $7.74. For the six months, net sales increased 47% to $3,130.1 million, with the Beer Business Acquisition contributing $941.1 million of net sales. Net income was $402.5 million versus $1,574.9 million a year earlier, and operating cash flow was $668.1 million compared with $489.0 million. Capital expenditures rose to $308.2 million from $49.2 million, reflecting Brewery expansion spending. Total debt stood at $7,191.9 million at August 31, 2014, up $171.4 million from February 28, 2014, and the company paid $543.3 million in delayed purchase price tied to the Final EBITDA Amount. The filing also discloses an August 2014 voluntary recall of certain 12-ounce Corona Extra bottles, with an estimated $9.2 million net reduction to operating income recorded to date. Subsequent to quarter end, the company agreed to acquire a glass production plant in Nava, Mexico for approximately $300 million and to form an equally-owned joint venture with Owens-Illinois, and it planned fiscal 2015 capital expenditures of $725 million to $775 million. A pending antitrust appeal relating to the Modelo transaction is described as baseless by management.

    Oct 9, 2014
  38. 2015-Q1

    Constellation Brands Quarterly Report for Q1 Ended May 31, 2014

    Constellation Brands, Inc. reported its first quarter of fiscal 2015 (three months ended May 31, 2014) with net sales of $1,526.0 million, up from $673.4 million a year earlier, an increase of $852.6 million, or 127%. The filing attributes the increase primarily to $867.7 million of net sales from the Beer Business Acquisition, which closed on June 7, 2013. Operating income rose to $392.2 million from $70.5 million, and net income increased to $206.7 million from $52.9 million. Diluted Class A earnings per share were $1.03 versus $0.27 a year earlier. Interest expense, net, rose to $86.4 million from $54.8 million, driven largely by financing for the acquisition. The balance sheet expanded materially. Total assets were $14,842.4 million at May 31, 2014, compared with $14,302.1 million at February 28, 2014. Total debt outstanding was $7,195.2 million, an increase of $174.7 million from February 28, 2014. Cash and cash investments rose to $378.0 million from $63.9 million. Cash provided by operating activities was $232.3 million, and capital expenditures were $131.4 million, primarily for the Brewery expansion in Mexico, which the company must complete to at least 20 million hectoliters by December 31, 2016. The filing also notes that the Final EBITDA Amount payment of $558.0 million related to the acquisition was made after quarter end, funded by $150.0 million of revolver borrowings, $100.0 million of receivables securitization proceeds, and $308.0 million of cash on hand. Wine and Spirits net sales declined 2% to $658.3 million, reflecting lower volumes, largely from a planned inventory reduction by one exclusive distributor.

    Jul 10, 2014
  39. 2014-Q3

    Constellation Brands Quarterly Report for Q3 Ended Nov 30, 2013

    Constellation Brands, Inc. filed this Form 10-Q for the quarter ended November 30, 2013 (Third Quarter 2014 and Nine Months 2014). The dominant event is the Beer Business Acquisition, closed June 7, 2013, which gave the company the remaining 50% of Crown Imports and the Mexican brewery in Nava, Coahuila. The estimated aggregate purchase price was $5,226.4 million, and the company remeasured its preexisting 50% stake to $1,845.0 million, recognizing a gain of $1,642.0 million. Net sales for the nine months rose to $3,576.5 million from $2,100.2 million, and net income rose to $1,785.9 million from $306.1 million. Excluding the non-recurring gain, the results still reflect the consolidation of the beer business, with Beer segment net sales of $2,237.8 million for the nine months. The quarter also included a $300.9 million impairment of goodwill and intangible assets in the Wine and Spirits Canadian reporting unit, recorded in the second quarter. Interest expense, net rose to $234.7 million for the nine months, and total debt reached $7,134.6 million, up $3,829.2 million from February 28, 2013. The company must expand the Mexican brewery to at least 20.0 million hectoliters by December 31, 2016, and owes a $558.0 million payment due no later than June 7, 2014. The purchase accounting remains open pending final valuations.

    Jan 9, 2014
  40. 2014-Q2

    Constellation Brands Quarterly Report for Q2 Ended Aug 31, 2013

    Constellation Brands, Inc. reported results for the three and six months ended August 31, 2013 (Second Quarter 2014 and Six Months 2014). Net sales for the quarter rose to $1,459.8 million from $698.5 million, an increase of 109%, driven primarily by the June 7, 2013 Beer Business Acquisition, which contributed $762.8 million of net sales. Net income for the quarter was $1,522.0 million versus $124.6 million a year earlier, but this was driven largely by a nontaxable $1,642.0 million gain on remeasuring the company's preexisting 50% stake in Crown Imports to fair value, partially offset by $300.9 million of impairments of goodwill and trademarks in the Canadian Wine and Spirits reporting unit. For the six months, net income was $1,574.9 million versus $196.6 million, and net sales were $2,133.2 million versus $1,333.3 million. The acquisition was financed largely with debt. Total debt at August 31, 2013 was $7,300.5 million, up $3,995.1 million from February 28, 2013, reflecting $1,550.0 million of May 2013 Senior Notes and $2,175.0 million of term loan borrowings under the 2013 Credit Agreement. Total assets rose to $14,122.8 million from $7,638.1 million. The aggregate estimated purchase price was $5,226.4 million, and an additional estimated payment of $588.2 million is expected within 12 months of closing, subject to a 2012 EBITDA adjustment with potential exposure of up to $558.0 million. Net cash from operating activities was $489.0 million for the six months, and cash and cash investments fell to $116.8 million. The company also disclosed that the purchase accounting has not been finalized and that it is required to expand the Mexican brewery to at least 20.0 million hectoliters by December 31, 2016. Wine and Spirits results were mixed: segment net sales were roughly flat for the quarter at $697.0 million, with wine up 2% and spirits down 18%, while the segment's operating income declined 4% for the quarter. The company's effective tax rate for the six months was 5.7%, and it expects an effective rate of about 11% for fiscal 2014 and about 32% for each of the following three fiscal years.

    Oct 10, 2013
  41. 2014-Q1

    Constellation Brands Quarterly Report for Q1 Ended May 31, 2013

    Constellation Brands, Inc. reported its first quarter of fiscal 2014 (three months ended May 31, 2013), with net sales of $673.4 million, up 6% from $634.8 million a year earlier, driven primarily by base branded wine volume growth and the Mark West acquisition, partially offset by higher promotional spend. Operating income fell 34% to $70.5 million, reflecting $33.1 million of restructuring charges and unusual items, including $27.5 million of transaction costs tied to the Beer Business Acquisition. Net income decreased 27% to $52.9 million, compared with $72.0 million in the prior-year quarter, while diluted EPS for Class A stock was $0.27 versus $0.38. The balance sheet changed significantly during the quarter because of financing for the pending beer acquisition. Total debt rose to $5,072.0 million from February 28, 2013, mainly due to $1,550.0 million of May 2013 Senior Notes, with the proceeds held as $1,550.0 million of restricted cash. Net cash provided by operating activities was only $3.3 million, compared with $96.4 million a year earlier. Cash and cash investments were $609.3 million at quarter end. Subsequent to quarter end, on June 7, 2013, the Company completed the Beer Business Acquisition, acquiring the remaining 50% of Crown Imports and the Modelo brewery in Nava, Mexico, for an estimated aggregate purchase price of $5,209.7 million. The Company expects to recognize an estimated non-taxable gain of $1,641.0 million in the second quarter of fiscal 2014 from remeasuring its prior 50% stake, and expects its fiscal 2014 effective tax rate to fall to 10% to 15%. The filing also describes a Department of Justice settlement requiring the Company to expand the Mexican brewery to at least 20 million hectoliters annually by December 31, 2016, and a pending private antitrust suit seeking injunctive relief and damages.

    Jul 10, 2013
  42. 2013-Q3

    Constellation Brands Quarterly Report for Q3 Ended Nov 30, 2012

    Constellation Brands, Inc. reported its Form 10-Q for the quarter ended November 30, 2012 (Third Quarter 2013). Net sales for the nine months rose to $2,100.2 million from $2,026.2 million, and net income declined to $306.1 million from $342.0 million. For the three months, net sales were $766.9 million versus $700.7 million, and net income was $109.5 million versus $104.8 million. The Constellation Wines and Spirits segment drove growth through base branded wine and spirits volume, acquired Mark West and Ruffino brands, and favorable product mix, partially offset by higher promotional spend. Interest expense, net increased to $166.7 million for the nine months from $133.1 million, reflecting higher borrowings from the April and August 2012 Senior Notes. The pending Crown Acquisition, a remaining 50% equity interest in Crown Imports LLC for approximately $1.85 billion, is the most significant item in the filing. The company expects to complete it in the first quarter of calendar 2013, subject to regulatory approvals and certain transactions between Anheuser-Busch InBev and Modelo. The filing states the company cannot guarantee completion. Total debt outstanding was $3,995.4 million at November 30, 2012, up $865.9 million from February 29, 2012. The company also repurchased 14,023,985 Class A shares for $296.7 million under its 2013 Authorization during the nine months. The filing states that the Crown Acquisition is expected to have a material impact on future results of operations, financial position and cash flows. Restructuring charges and unusual items rose to $27.6 million for the nine months from $9.8 million, largely due to $17.6 million of transaction costs tied to pending and completed acquisitions.

    Jan 9, 2013
  43. 2013-Q2

    Constellation Brands Quarterly Report for Q2 Ended Aug 31, 2012

    Constellation Brands, Inc. reported results for its 10-Q quarter ended August 31, 2012 (Second Quarter 2013). Net sales rose 1% to $698.5 million for the three months, while operating income fell 10% to $130.6 million and net income fell 23% to $124.6 million, driven by higher promotional spend, increased selling, general and administrative expenses, and higher interest expense. For the six months, net sales were $1,333.3 million (up 1%), operating income was $236.7 million (down 4%), and net income was $196.6 million (down 17%). Cash flow from operations for the six months was $368.5 million. The balance sheet expanded materially during the period. Total assets rose to $8,040.5 million from $7,109.9 million, and long-term debt increased to $3,928.7 million from $2,421.4 million, largely reflecting $650.0 million of restricted cash and new senior notes. Total debt outstanding was $3,987.7 million, up $858.2 million from February 29, 2012. The company repurchased $383.0 million of treasury stock during the six months and completed the $500.0 million 2012 Authorization, with $1.0 billion authorized under the 2013 Authorization. The most significant pending item is the Crown Acquisition: the company agreed in June 2012 to acquire the remaining 50% equity interest in Crown Imports LLC for approximately $1.85 billion, with completion expected in the first quarter of calendar 2013, subject to closing conditions. The filing states the acquisition is expected to have a material impact on future results, financial position and cash flows, and that the company cannot guarantee completion on the agreed terms.

    Oct 10, 2012
  44. 2013-Q1

    Constellation Brands Quarterly Report for Q1 Ended May 31, 2012

    Constellation Brands, Inc. reported its first quarter of fiscal 2013 (three months ended May 31, 2012). Net sales were essentially flat at $634.8 million versus $635.3 million a year earlier, as lower branded wine volume and higher promotional spend offset favorable product mix and spirits volume growth. Operating income rose 4% to $106.1 million, mainly due to lower restructuring charges and unusual items ($3.5 million versus $13.8 million). Net income declined 3% to $72.0 million from $74.5 million, reflecting higher interest expense, net, of $50.7 million versus $44.3 million. Diluted Class A EPS was $0.38 versus $0.35 in the prior year quarter, reflecting the reduced share count after repurchases. Net cash provided by operating activities was $96.4 million, compared with $241.3 million a year earlier. The balance sheet reflects significant financing activity. Total debt rose to $3,421.0 million, an increase of $291.5 million from February 29, 2012. The company issued $600.0 million of 6% Senior Notes due 2022 in April 2012 and entered a new $1,650.0 million 2012 Credit Agreement in May 2012. Company repurchased 14,023,985 Class A shares for $296.7 million under its $1.0 billion 2013 Authorization, and management has since suspended further repurchases under that program for the remainder of fiscal 2013. Total stockholders' equity fell to $2,299.8 million from $2,676.0 million. The most significant post-period event is the June 2012 agreement to acquire the remaining 50% equity interest in Crown Imports LLC, the joint venture that imports Modelo's Mexican beer portfolio, for approximately $1.85 billion. The company has a fully committed bridge financing of $1.875 billion in place and expects the transaction to close in the first quarter of calendar 2013, though completion is not guaranteed. The company also agreed to acquire the Mark West wine brand for approximately $160 million, expected to close in July 2012.

    Jul 10, 2012
  45. 2012-Q3

    Constellation Brands Quarterly Report for Q3 Ended Nov 30, 2011

    Constellation Brands, Inc. filed this Form 10-Q for the quarter ended November 30, 2011 (Third Quarter 2012 and Nine Months 2012). Net sales for the nine months were $2,026.2 million, down from $2,616.7 million, primarily due to the CWAE Divestiture of the Australian and U.K. business completed in January 2011. Operating income rose to $407.1 million from $399.6 million, and net income increased to $342.0 million from $279.7 million, helped by a lower effective tax rate of 24.6% versus 37.0%, which reflected a $60.2 million decrease in uncertain tax positions. For the three months ended November 30, 2011, net sales were $700.7 million versus $966.4 million, operating income was $160.3 million versus $170.1 million, and net income was $104.8 million versus $139.3 million. Management attributed the quarterly operating income decline primarily to lower volumes in the U.S. base branded wine portfolio. Cash flow from operations for the nine months was $640.8 million. The company repurchased 14,968,488 Class A shares for $281.3 million during the period, and total debt outstanding was $3,104.6 million, a decrease of $131.7 million from February 28, 2011. The company also acquired the remaining 50.1% equity interest in Ruffino for $68.6 million on October 5, 2011, financed with revolver borrowings. The filing also discloses a $5.0 million-scale restructuring program (Fiscal 2012 Initiative) expected to reduce the global workforce by approximately two to three percent, with all costs and cash expenditures expected to be completed by February 28, 2013, and it notes ongoing implementation of Project Fusion, an ERP system update expected to be complete during fiscal 2013.

    Jan 9, 2012
  46. 2012-Q2

    Constellation Brands Quarterly Report for Q2 Ended Aug 31, 2011

    Constellation Brands, Inc. reported net sales of $690.2 million for the three months ended August 31, 2011, down from $862.8 million a year earlier, primarily due to the CWAE Divestiture (the January 2011 sale of 80.1% of its Australian and U.K. business). Operating income rose to $145.1 million from $133.2 million, and net income increased to $162.7 million from $91.3 million, aided by a lower effective tax rate of 2.3% versus 38.8%. For the six months, net sales were $1,325.5 million versus $1,650.3 million, while net income rose to $237.2 million from $140.4 million. Within continuing operations, CWNA net sales grew 5% in the quarter, and Crown Imports, the equity method joint venture importing Modelo's beers, grew net sales 7%. Cash generation was strong, with net cash provided by operating activities of $517.4 million for the six months. Total debt fell to $2,946.4 million from February 28, 2011, and the company repurchased 9,766,888 Class A shares for $187.5 million during the six months under a $500.0 million authorization. Subsequent to August 31, 2011, through October 11, 2011, it repurchased another 4,751,600 shares for $85.7 million. The filing also discloses a subsequent event: on October 5, 2011, the company acquired the 50.1% shareholder's interest in Ruffino S.r.l. for €50.3 million ($68.6 million), assuming €54.7 million ($73.0 million) of Ruffino indebtedness, financed with revolver borrowings. The company expects U.S. net sales and operating income to decline in the third quarter of fiscal 2012 as pre-holiday shipments shift to the fourth quarter.

    Oct 11, 2011
  47. 2011-Q3-A

    Constellation Brands Quarterly Report (Amendment) for Q3 Ended Nov 30, 2010

    Constellation Brands, Inc. (Commission File Number 001-08495) filed this Amendment No. 1 on Form 10-Q/A on August 10, 2011, to amend its Quarterly Report on Form 10-Q for the quarterly period ended November 30, 2010, originally filed with the SEC on January 10, 2011. The amendment was filed solely to re-file Exhibit 10.1, the Agreement Regarding Products dated October 28, 2010, between Extrade II, S.A. de C.V., Crown Imports LLC and Marcas Modelo, S.A. de C.V., with less information redacted following correspondence with the SEC regarding the company's confidential treatment request. The company also included new Rule 13a-14(a) certifications from its chief executive officer and chief financial officer. The filing states that no financial statements are included in this amendment, and that it does not modify or update the financial position, results of operations, cash flows, or other disclosures in the Original Form 10-Q. It speaks as of the original filing date and should be read together with the Original Form 10-Q and the company's other SEC filings. Accordingly, it contains no new operating or financial results. As of December 31, 2010, the filing reports 185,832,829 shares of Class A Common Stock and 23,625,158 shares of Class B Common Stock outstanding, with no Class 1 Common Stock outstanding. The registrant is a large accelerated filer, and the signing officer is Robert Ryder, Executive Vice President and Chief Financial Officer.

    Aug 10, 2011
  48. 2012-Q1

    Constellation Brands Quarterly Report for Q1 Ended May 31, 2011

    Constellation Brands, Inc. reported its Form 10-Q for the first quarter ended May 31, 2011 (referred to in the filing as "First Quarter 2012", its fiscal 2012 first quarter). Net sales decreased 19% to $635.3 million from $787.5 million, primarily due to the January 2011 divestiture of 80.1% of its Australian and U.K. business (the "CWAE Divestiture"), which had a transaction value of $266.9 million. Operating income rose 6% to $101.7 million, and net income increased 52% to $74.5 million, aided by a lower tax provision (effective tax rate of 37.7% versus 52.0% a year earlier), higher equity in earnings of equity method investees (chiefly Crown Imports), and lower interest expense. Cash flow from operations was $241.3 million, helped by a $85.5 million income tax refund received in the quarter. The company reduced total debt by $243.9 million to $2,992.4 million, including a $400.0 million prepayment of tranche B term loans, and total stockholders' equity rose to $2,715.1 million. In April 2011 the Board authorized repurchases of up to $500.0 million of Class A and Class B common stock, though no shares had been repurchased under that authorization as of July 8, 2011. The filing also discloses a Fiscal 2012 Initiative, announced in June 2011, to streamline operations after the CWAE Divestiture, with $11.1 million of restructuring charges recorded in the quarter and $12.4 million of restructuring and integration costs expected for the fiscal year. Management also flagged a possible loss of up to $57 million on an early-terminated agreement with an equity method investee, and a Ruffino put-option settlement that produced a $60.0 million loss in fiscal 2011.

    Jul 11, 2011
  49. 2011-Q3

    Constellation Brands Quarterly Report for Q3 Ended Nov 30, 2010

    Constellation Brands, Inc. filed this Form 10-Q for the quarter ended November 30, 2010, reporting nine-month net sales of $2,616.7 million (down from $2,656.1 million) and net income of $279.7 million (up from $150.3 million). Operating income rose to $399.6 million from $360.9 million, mainly because restructuring charges and unusual items fell to $30.4 million from $124.8 million. Interest expense, net decreased to $147.9 million from $202.0 million, and the effective tax rate was 37.0% versus 54.4% a year earlier, which includes a $30.1 million U.K. deferred tax valuation allowance. Operating cash flow was $369.0 million, and total debt was $3,726.6 million, down $108.9 million from February 28, 2010. The company repurchased 17,223,404 Class A shares for $300.0 million under an accelerated stock buyback. On December 23, 2010, the company agreed to sell its Australian and U.K. business for approximately AUD$290 million (U.S.$290 million), with cash proceeds of about AUD$230 million (U.S.$230 million) and a retained approximate 20 percent interest. The company expects to use the proceeds to reduce net borrowings under its 2006 Credit Agreement and expects the transaction to close by the end of January 2011. The filing also discloses a possible put-option obligation for the remaining 50.1% of Ruffino, estimated as much as €55 million ($71 million), for which no liability has been recorded because a loss is not deemed probable. The Crown Imports joint venture, which imports Modelo beers, continued to contribute: its net sales rose to $1,912.5 million for the nine months, and the company received $186.0 million of cash distributions from it. Management expects the calendar 2010 U.S. grape harvest to be lower than 2009, while the Australian and U.K. sale and restructuring plans remain the key items to monitor.

    Jan 10, 2011
  50. 2011-Q2

    Constellation Brands Quarterly Report for Q2 Ended Aug 31, 2010

    Constellation Brands, Inc. reported its quarterly results for the three and six months ended August 31, 2010 in this Form 10-Q. For the six months, net sales were $1,650.3 million versus $1,668.4 million a year earlier, operating income rose to $229.5 million from $224.8 million, and net income increased to $140.4 million from $106.2 million. For the three months, net sales were $862.8 million versus $876.8 million, operating income was $133.2 million versus $140.1 million, and net income was $91.3 million versus $99.7 million. The filing attributes the sales decline mainly to the divestiture of the U.K. cider business, partly offset by favorable foreign currency translation and U.S. branded wine growth. Cash flow from operations for the six months was $305.7 million. The company repurchased $300.0 million of Class A Common Stock through a collared accelerated stock buyback, funded with revolver borrowings. Total debt was $3,783.4 million at August 31, 2010, down $52.1 million from February 28, 2010. Stockholders' equity was $2,429.9 million. The filing also records a $30.1 million U.K. deferred tax valuation allowance that raised the six-month effective tax rate to 44.2%. The filing notes that restructuring charges of $18.6 million for the six months and ongoing plans, including the Global Initiative and the Australian Initiative, are expected to continue through fiscal 2011, and that economic conditions and competition in the U.K. and Australia remain challenging.

    Oct 12, 2010