EXHIBIT 99.1
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CONSTELLATION
NEWS RELEASE CONTACTS:
Investor Relations:
Mark Maring - 585-218-3668
Media:
Philippa Dworkin - 585-218-3733
Ginny Clark - 585-218-3669
CONSTELLATION REAFFIRMS THIRD QUARTER
AND FULL YEAR GUIDANCE
FAIRPORT, N.Y., November 04, 2003 - Constellation Brands, Inc. (NYSE: STZ), a
leading international producer and marketer of beverage alcohol brands, today
reaffirmed its guidance for diluted earnings per share both on a comparable
basis and a reported (GAAP) basis for the third quarter ending November 30, 2003
and fiscal year ending February 29, 2004. The table below reflects management's
current diluted earnings per share expectations both on a comparable basis and a
reported basis, together with a reconciliation.
Range for the Quarter Range for the Year
Ending November 30, 2003 Ending February 29, 2004
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Forecasted reported diluted earnings per share $ 0.65 $ 0.69 $ 1.89 $ 1.96
Inventory step-up 0.02 0.02 0.12 0.12
Concentrate inventory write-down - - 0.10 0.10
Financing costs - - 0.05 0.05
Restructuring charges 0.09 0.09 0.28 0.28
Imputed interest charge - - 0.01 0.01
Gain on derivative instruments - - (0.01) (0.01)
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Forecasted comparable diluted earnings per share $ 0.76 $ 0.80 $ 2.44 $ 2.51
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The Company expects additional imported beer sales ahead of the recently
announced Mexican price increase to benefit modestly earnings per share in its
third quarter ending November 30, 2003. Notwithstanding the benefit to the
third quarter from additional imported beer sales, the Company has maintained
its EPS guidance which takes into account the potential impact on shipments
caused by California retail strikes and fires. The impact of the beer price
increase on the fourth quarter ending February 29, 2004 is expected to be
neutral to EPS, with additional sales in the early part of the quarter, offset
by initial re-balancing of inventories toward the end of the quarter. Finally,
it is anticipated that the benefit to Constellation's full year EPS ending
February 29, 2004 from additional imported beer sales ahead of the price
increase will be offset by further re-balancing of inventories in the early part
of fiscal year 2005. The Company will be informing its distributors on the
timing and the amount of the price increase towards late November.
Constellation Brands, Inc. is a leading international producer and marketer
of beverage alcohol brands with a broad portfolio across the wine, spirits and
imported beer categories. Well-known brands in Constellation's portfolio
include: Corona Extra, Pacifico, St. Pauli Girl, Black Velvet, Fleischmann's,
Mr. Boston, Estancia, Simi, Ravenswood, Blackstone, Banrock Station, Hardys,
Nobilo, Alice White, Vendange, Almaden, Arbor Mist, Stowells and Blackthorn.
FORWARD-LOOKING STATEMENTS
The statements regarding management's current diluted earnings per share
guidance, as well as all other statements set forth in this press release which
are not historical facts, are forward-looking statements that involve risks and
uncertainties that could cause actual results to differ materially from those
set forth in or implied by the forward-looking statements. The Company's
forward-looking statements are based on management's current expectations and,
unless otherwise noted, do not take into account the impact of any future
acquisition, merger or any other business combination, divestiture or financing
that may be completed after the date of this release. Any projections of future
results of operations, and in particular, (i) the Company's estimated
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diluted earnings per share on a comparable basis for the third quarter ending
November 30, 2003 and fiscal year ending February 29, 2004, and (ii) the
Company's estimated diluted earnings per share on a reported (GAAP) basis for
the third quarter ending November 30, 2003 and fiscal year ending February 29,
2004, should not be construed in any manner as a guarantee that such results
will in fact occur. In addition to the risks and uncertainties of ordinary
business operations, the forward-looking statements of the Company contained in
this press release are also subject to the following risks and uncertainties:
the on-going assimilation of the Hardy business; final management determinations
and independent appraisals vary materially from current management estimates and
preliminary independent appraisals of the fair value of the assets acquired and
the liabilities assumed in the Hardy acquisition; the Company achieving certain
sales projections and meeting certain cost targets; wholesalers and retailers
may give higher priority to products of the Company's competitors; raw material
supply, production or shipment difficulties could adversely affect the Company's
ability to supply its customers; increased competitive activities in the form of
pricing, advertising and promotions could adversely impact consumer demand for
the Company's products and/or result in higher than expected selling, general
and administrative expenses; a general decline in alcohol consumption; increases
in excise and other taxes on beverage alcohol products; and changes in foreign
exchange rates. For additional information about risks and uncertainties that
could adversely affect the Company's forward-looking statements, please refer to
the Company's filings with the Securities and Exchange Commission, including its
Annual Report on Form 10-K for the fiscal year ended February 28, 2003.