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Exhibit 99
FOR IMMEDIATE RELEASE
BROWN-FORMAN REPORTS RECORD THIRD QUARTER EARNINGS
LOUISVILLE, KY, February 15, 2001 - Brown-Forman Corporation reported
record results for the quarter ended January 31, 2001, as net earnings rose 3%
to $56.3 million, or $.82 per share. Operating income increased 4% over last
year's third quarter, when sales were lifted by activity surrounding the 2000
millennium celebration. Quarterly results were adversely affected by expenses
associated with the company's participation in the Seagram auction and
continuing unfavorable exchange rates.
Brown-Forman's year-to-date performance also reached record levels, as
earnings for the nine months improved 8% on a 6% gain in gross profit.
WINES & SPIRITS
Beverage operating income grew 5% for the quarter, with segment
earnings up 7% for the nine months ended January. Gross profit during the
quarter improved 3%, while sales were even against last year's comparable
period, which benefited from strong millennial business. Comparative results
were diminished by a challenging December trading environment as well as
unfavorable exchange rates. Brown-Forman's sales of used barrels to Scotch
whisky distillers are also down substantially this year, reflecting a recent
industry decline in the production of Scotch.
Long-term measures for most of the company's premium brands remain
healthy. Jack Daniel's continues to grow on a worldwide basis, but at a more
moderate pace in the U.S. than last year. Year-to-date depletions (shipments
from wholesalers to retailers) are also positive for Southern Comfort, Finlandia
and Bolla.
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CONSUMER DURABLES
Operating income for Brown-Forman's Consumer Durables segment improved
2% for the third quarter and was up 14% for the nine months ended January. Lenox
Collections reported vibrant sales and profit growth for the quarter, while
results for other consumer durable divisions generally trailed last year's
performance. The outlook for full-year segment earnings growth has moderated to
a range of 7% to 9%, largely due to lower expectations for Hartmann Luggage.
OUTLOOK
Brown-Forman's prospects for long-term growth remain positive, based
upon favorable demographic trends and benefits from sustained brand investments.
Signs of a slowing U.S. economy, Hartmann's recent weak performance and a
continued movement toward lower beverage trade inventories suggest that the
company's earnings growth rate will moderate for the balance of the fiscal year.
Brown-Forman has also tempered its outlook for fiscal 2002 earnings growth to a
rate in the high single-digit range.
CONFERENCE CALL
Brown-Forman will host a conference call to discuss its third quarter
results at 10:00 a.m. EST on Thursday, February 15. All interested parties in
the U.S. are invited to join the conference by dialing 888-624-9285 and asking
for the Brown-Forman call. International callers should dial 706-679-3410 and
ask for the Brown-Forman call. No password is required. The company suggests
that participants dial in approximately ten minutes in advance of the 10:00 a.m.
start of the conference call.
A live audio broadcast of the conference call will also be available
via Brown-Forman's Internet web site, www.brown-forman.com. Click on "Investor
Information" to access the conference call. For those unable to participate in
the live call, an audio recording of the conference call will be available on
the web page approximately one hour later.
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Brown-Forman Corporation is a diversified producer and marketer of fine
quality consumer products, including Jack Daniel's, Canadian Mist, Southern
Comfort, Fetzer and Bolla wines, Korbel California Champagnes, Lenox, Dansk,
Gorham tableware and giftware, and Hartmann Luggage.
NOTE ON FORWARD-LOOKING STATEMENTS: This press release contains forward-looking
statements that Brown-Forman is making in good faith, but which should not be
interpreted as a guarantee that Brown-Forman will actually achieve the results
indicated. In this connection, please refer to the risk factors identified in
Part I, Item 2, on pages 9 and 10 of the company's Quarterly Report on Form 10-Q
for the period ended October 31, 2000.
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BROWN-FORMAN CORPORATION
LOUISVILLE, KENTUCKY
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in millions, except per share amounts)
THREE MONTHS ENDED
JANUARY 31,
2000 2001 CHANGE
Net Sales $ 557.3 $ 559.4 -%
Wine & Spirits 393.0 394.0 -%
Consumer Durables 164.3 165.4 1%
Gross Profit $ 283.8 $ 290.3 2%
Wine & Spirits 203.1 209.0 3%
Consumer Durables 80.7 81.3 1%
Operating Income $ 87.1 $ 90.8 4%
Wine & Spirits 74.0 77.5 5%
Consumer Durables 13.1 13.3 2%
Interest Expense, net 0.8 2.3
Income Before Income Taxes $ 86.3 $ 88.5 2%
Taxes on Income 31.5 32.2
Net Income $ 54.8 $ 56.3 3%
Earnings Per Share
- - Basic and Diluted $ 0.80 $ 0.82 3%
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BROWN-FORMAN CORPORATION
LOUISVILLE, KENTUCKY
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in millions, except per share amounts)
NINE MONTHS ENDED
JANUARY 31,
2000 2001 CHANGE
Net Sales $ 1,635.9 $ 1,672.2 2%
Wine & Spirits 1,175.3 1,188.5 1%
Consumer Durables 460.6 483.7 5%
Gross Profit $ 836.6 $ 885.3 6%
Wine & Spirits 607.9 641.2 5%
Consumer Durables 228.7 244.1 7%
Operating Income $ 265.8 $ 287.4 8%
Wine & Spirits 225.7 241.7 7%
Consumer Durables 40.1 45.7 14%
Interest Expense, net 4.2 6.1
Income Before Income Taxes $ 261.6 $ 281.3 8%
Taxes on Income 95.5 102.4
Net Income $ 166.1 $ 178.9 8%
Earnings Per Share
- Basic and Diluted $ 2.42 $ 2.61 8%
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BROWN-FORMAN CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Dollars in millions)
THREE MONTHS ENDED NINE MONTHS
ENDED
JANUARY 31, JANUARY 31,
2000 2001 2000 2001
Net sales $ 557.3 $ 559.4 $1,635.9 $1,672.2
Excise taxes 62.9 64.1 191.6 192.3
Cost of sales 210.6 205.0 607.7 594.6
Gross profit 283.8 290.3 836.6 885.3
Advertising expenses 75.4 74.5 217.7 229.0
Selling, general, and
administrative expenses 121.3 125.0 353.1 368.9
Operating income 87.1 90.8 265.8 287.4
Interest income 2.6 2.0 7.3 6.8
Interest expense 3.4 4.3 11.5 12.9
Income before
income taxes 86.3 88.5 261.6 281.3
Taxes on income 31.5 32.2 95.5 102.4
Net income 54.8 56.3 166.1 178.9
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BROWN-FORMAN CORPORATION
SUPPLEMENTAL INFORMATION
(Dollars in millions)
THREE MONTHS NINE MONTHS
ENDED ENDED
JANUARY 31, JANUARY 31,
2000 2001 2000 2001
EBITDA $ 101.6 $ 106.8 $ 310.6 $ 335.9
Depreciation and $ 14.5 $ 16.1 $ 44.8 48.5
Amortization
Capital Expenditures $ 18.5 $ 24.0 $ 48.9 $ 74.1
Effective Tax Rate 36.5% 36.4% 36.5% 36.4%
Shares (in thousands) used
in the calculation of
earnings per share
- Basic 68,510 68,460 68,509 68,482
- Diluted 68,573 68,599 68,585 68,563
These figures have been prepared in accordance
with the company's customary accounting practices.
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