-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, K4RDcLk8ZKfVB2Qkz6H73Wiq0+RrUwS/bUmZKhJ7SxT7E80oiU/xulEJZLPTtstl pB9OOgSmHw8Dmxxrq7cZXw== 0001157523-03-001293.txt : 20030424 0001157523-03-001293.hdr.sgml : 20030424 20030424080057 ACCESSION NUMBER: 0001157523-03-001293 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030424 ITEM INFORMATION: Other events FILED AS OF DATE: 20030424 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MONDAVI ROBERT CORP CENTRAL INDEX KEY: 0000902276 STANDARD INDUSTRIAL CLASSIFICATION: BEVERAGES [2080] IRS NUMBER: 942765451 STATE OF INCORPORATION: CA FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-21624 FILM NUMBER: 03661014 BUSINESS ADDRESS: STREET 1: 7801 ST HELENA HWY STREET 2: PO BOX 106 CITY: OAKVILLE STATE: CA ZIP: 94562 BUSINESS PHONE: 7072599463 MAIL ADDRESS: STREET 1: 7801 ST HELENA HWY CITY: OAKVILLE STATE: CA ZIP: 94562 8-K 1 a4382251.txt ROBERT MONDAVI 8-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): April 24, 2003 The Robert Mondavi Corporation (Exact name of registrant as specified in its charter) California 33-61516 94-2765451 - --------------------------------- ----------------------- ------------------ (State or other jurisdiction of (Commission File Number) (I.R.S. Employer incorporation or organization) Identification No.) 841 Latour Court Napa, California 94558 - --------------------------------------------- -------------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (707) 226-1395 ITEM 5. OTHER EVENTS AND REGULATION FD DISCLOSURES. On April 24, 2003 The Robert Mondavi Corporation issued the press release attached as Exhibit A to this report. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. The Robert Mondavi Corporation (Registrant) April 24, 2003 Date: By: /S/ Henry J. Salvo, Jr. ----------------------------------- Henry J. Salvo, Jr. Executive Vice President, Chief Financial Officer EX-99 3 a4382251_exa.txt ROBERT MONDAVI EXHIBIT A Exhibit A Robert Mondavi Reports Third Quarter Fiscal 2003 Results OAKVILLE, Calif.--(BUSINESS WIRE)--April 24, 2003--The Robert Mondavi Corporation (NASDAQ:MOND) today announced results for its third quarter of fiscal 2003, in line with its forecast. The company reported a net loss of $1.6 million, or $0.10 per diluted share, for the quarter ended March 31, 2003, compared to net income of $7.6 million, or $0.46 per diluted share, a year ago. The net loss for the quarter included pre-tax inventory write-downs, asset impairment charges and employee separation expenses totaling $7.6 million, $2.2 million and $1.2 million, respectively, which were partially offset by a pre-tax gain of $6.1 million on the sale of non-strategic fixed assets. Net revenues for the quarter decreased 12 percent over the same period last year to $92.2 million, reflecting a 14 percent decrease in sales volume. Net income for the first nine months of the fiscal year increased by 6 percent to $16.3 million, or $1.00 per diluted share, from $15.4 million, or $0.94 per diluted share, a year ago. Net revenues for the first nine months of the fiscal year increased by 5 percent to $331.9 million, reflecting a 5 percent increase in sales volume. "The decrease in our sales volume and revenues this quarter reflects intensifying competition in the premium wine industry resulting from a weak U.S. economy, an oversupply of grapes and increased retail buyer power at the trade level," reported Gregory M. Evans, President and CEO. "To improve our position in this fiercely competitive market, we began implementing a number of significant changes in our business during the last month. These changes included the centralization of all marketing and sales responsibilities and all California production and vineyard operations, a workforce reduction and the sale of non-strategic assets," he added. According to Evans, the company is also evaluating other potential changes in its business, which could result in additional charges of about $10 million, the majority of which would likely occur during the fourth quarter of fiscal 2003. In addition, the increased focus on improving asset utilization has allowed Robert Mondavi to decrease total debt by $63 million over the last twelve months. Industry sales continued to show slow growth during the third quarter. Domestic and imported varietal wines sold in the U.S. grew 2.9 percent in volume and declined 1.1 percent in price as measured by AC Nielsen in U.S. food, drug and liquor stores for the 13 weeks ended March 15, 2003. Third quarter wholesale depletions reported by Robert Mondavi distributors, excluding Vichon Mediterranean which was divested last year, decreased by 1 percent. Part of the weakness in both industry and company sales was likely a result of Easter being three weeks later this year than last year. Robert Mondavi produces and markets fine wines under the following labels: Robert Mondavi Winery, Robert Mondavi Private Selection, La Famiglia di Robert Mondavi, Woodbridge Winery, Byron Vineyards and Winery, Io, Arrowood Vineyards and Winery and Grand Archer by Arrowood. The company also produces Opus One, in partnership with the Baroness Philippine de Rothschild of Chateau Mouton Rothschild of Bordeaux, France; Luce, Lucente, Danzante, and the wines of Tenuta dell'Ornellaia, in partnership with the Marchesi de' Frescobaldi of Tuscany, Italy; Sena, Arboleda and Caliterra, in partnership with the Eduardo Chadwick family of Vina Errazuriz in Chile; and Kirralaa and Talomas, in partnership with Southcorp and Rosemount's Oatley family. In addition to the partnership wines, Robert Mondavi Imports represents the wines of Marchesi de' Frescobaldi, Attems and Vina Errazuriz in the United States. R. Michael Mondavi will host a conference call to discuss the quarter's results today at 7:30 a.m. PT. A live listen-only web cast and a copy of our prepared remarks of the conference call will be available at www.robertmondavi.com under "Investor Relations." On July 31, 2003, a conference call and live web cast are scheduled to discuss the company's fiscal 2003 fourth quarter and full year earnings. - -0- *T ROBERT MONDAVI FINANCIAL HIGHLIGHTS (In thousands, except per share data) Three Months Ended Nine Months Ended March 31, March 31, ------------------------------------- 2003 2002 2003 2002 -------- ------------------ --------- Cases sold 1,986 2,299 7,106 6,791 Net revenues $92,164 $104,290 $331,864 $316,304 Cost of goods(1) 62,381 57,981 200,701 178,300 Gross profit 29,783 46,309 131,163 138,004 Gross profit % 32.3% 44.4% 39.5% 43.6% Operating expenses 28,341 29,429 94,963 93,043 Special charges(2) 3,394 - - 6,504 12,240 Operating income (loss) (1,952) 16,880 29,696 32,721 Other income (expense): Interest (5,508) (5,877) (16,020) (16,440) Other(3) 4,852 1,130 12,275 8,293 Income (loss) before income taxes (2,608) 12,133 25,951 24,574 Income tax provision (benefit) (965) 4,550 9,602 9,215 Net income (loss) (1,643) 7,583 16,349 15,359 Weighted average number of shares outstanding - Diluted 16,353 16,394 16,363 16,367 Earnings (loss) per share - Diluted $(.10) $.46 $1.00 $.94 At At At 3/31/03 3/31/02 6/30/02 --------- --------- --------- Current assets $523,106 $508,141 $493,308 Total assets 867,880 878,498 855,565 Current liabilities 103,543 63,047 74,884 Total liabilities 418,475 459,080 424,286 Shareholders' equity 449,405 419,418 431,279 Working capital 419,563 445,094 418,424 Total debt 319,342 382,344 335,871 *T (1) Includes inventory write-downs totaling $7,561 for the three and nine months ended March 31, 2003. Includes inventory and fixed asset write-downs totaling $3,750 for the nine months ended March 31, 2002. (2) Includes asset impairment charges totaling $2,237 and $5,347, respectively, for the three and nine months ended March 31, 2003. Also includes employee separation expenses totaling $1,157 for the three months ended March 31, 2003. Includes $12,240 in special charges related to restructuring the company's Disney California Adventure project $12,240 for the nine months ended March 31, 2002. (3) Includes a gain on the sale of fixed assets totaling $6,144 for the three and nine months ended March 31, 2003. Forward-looking Statements This announcement and other information provided from time to time by the company contain historical information as well as forward-looking statements about the company, the premium wine industry and general business and economic conditions. Such forward-looking statements include, for example, projections or predictions about the company's future growth, consumer demand for its wines, including new brands and brand extensions, margin trends, anticipated future investment in vineyards and other capital projects, the premium wine grape market and the premium wine industry generally. Actual results may differ materially from the company's present expectations. Among other things, a soft economy, a downturn in the travel and entertainment sector, risk associated with continued conflict in the Middle East, reduced consumer spending, or changes in consumer preferences could reduce demand for the company's wines. Similarly, increased competition or changes in tourism to our California properties could affect the company's volume and revenue growth outlook. The supply and price of grapes, the company's most important raw material, is beyond the company's control. A shortage of grapes might constrict the supply of wine available for sale and cause higher grape costs that put more pressure on gross profit margins. A surplus of grapes might allow for greater sales and lower grape costs, but it might also result in more competition and pressure on selling prices or marketing spending. Interest rates and other business and economic conditions could increase significantly the cost and risks of projected capital spending. For additional cautionary statements identifying important factors that could cause actual results to differ materially from such forward-looking information, please refer to Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations," in the company's Annual Report on Form 10-K for the fiscal year ended June 30, 2002, on file with the Securities and Exchange Commission. For these and other reasons, no forward-looking statement by the company can nor should be taken as a guarantee of what will happen in the future. CONTACT: Robert Mondavi Corporation Robert Philipps, 707/251-4850 -----END PRIVACY-ENHANCED MESSAGE-----