Recent Events
The Company is pleased to confirm that its popular Peller Estates wines remained the top-selling brand in Provincial liquor stores across Canada. In addition, the Company's Trius portfolio stands as one of the top-three Vintner's Quality Alliance (VQA) brands in the country, and its new Crush brand was among the top new VQA product launches at the Liquor Control Board of Ontario (LCBO).
The Company's strong export business will be augmented by new revenues supplying all of Sunwing Vacations' flights to southern holiday destinations from Canada. The Company estimates that approximately 1.4 million glasses of Peller Estates wines will be served on all Sunwing Vacation flights equaling approximately 284,000 bottles of wine served this season. The Canadian charter airline operates daily flights to over 12 favourite sun destinations including; Florida, Jamaica and Cuba.
In addition, the Company is pleased to announce that its Peller Estates Icewines have received a number of prestigious awards at international competitions, including Gold at the Icewine du Monde 2012 competition and Gold at the Decanter World Wine Awards held in London, England. Judged by a panel of over 200 wine experts including wine merchants, sommeliers, journalists, Masters of Wine and Master Sommeliers, Peller Estates Vidal Icewine 2010 received these awards in competition against wines from 54 countries. In addition, at the Japan Wine Challenge, Peller Estates Vidal Icewine 2010 was awarded the coveted distinction of Best Sweet Wine in the competition from more than 1,300 wines entered representing 27 countries.
"These prestigious awards are a testament to the quality of our ice wines, and we expect this recognition will enhance our presence both in Canada and in our export markets around the world," Mr. Peller stated.
During fiscal 2013 the Company launched its new Verano wines imported from Spain, as well as skinnygrape, Canada's first low calorie wine. Thirty Bench's award-winning Riesling has been included in the "Vintages Essentials Collection" at the LCBO, while the Company's Red Rooster wines are now fully distributed and available in all British Columbia markets. In addition, the Company is now approaching the capability to harvest a full crop from its 300 acre vineyard that was recently planted in BC's Okanagan Valley, increasing the Company's VQA grape production by 50% in the Province.
Financial Highlights (Unaudited)
(Complete condensed consolidated financial statements to follow)
----------------------------------------------------------------------------(in $000 except as otherwise stated) Three Months Nine MonthsFor the Period Ended December 31, 2012 2011 2012 2011----------------------------------------------------------------------------Sales 79,813 76,595 225,557 215,992Gross margin 30,812 30,719 87,141 85,304Gross margin (% of sales) 38.6% 40.1% 38.6% 39.5%Selling and administrative expenses 18,942 18,861 56,697 55,159EBITA 11,870 11,858 30,444 30,145Unrealized (gain) loss on financial instruments (683) (117) (1,079) 296Other (income) expenses 214 44 (213) 700Net earnings 6,632 6,309 15,634 13,605Earnings per share - Class A $ 0.47 $ 0.46 $ 1.12 $ 0.98Earnings per share - Class B $ 0.42 $ 0.39 $ 0.98 $ 0.85Dividend per share - Class A (annual) $ 0.360 $ 0.360Dividend per share - Class B (annual) $ 0.314 $ 0.314Cash provided by operations (after changes in non-cash working capital items) (5,067) (9,460) 6,655 695Working capital 45,000 39,654Shareholders' equity per share $ 9.16 $ 8.56----------------------------------------------------------------------------
