EXHIBIT 99.1
FOR IMMEDIATE RELEASE
CONTACT: Ken Morris
707-254-4263
THE CHALONE WINE GROUP REPORTS 2002 RESULTS
Napa, California, March x, 2003 --- The Chalone Wine Group, Ltd. (Nasdaq: CHLN)
announced today an 11 percent increase in net income for 2002, compared to 2001.
Diluted earnings per share for the same period were $.19.
Despite a weak economy and intense competition from both imported and domestic
wines, Chalone Wine Group posted a 28 percent increase in total cases sales and
a 23 percent increase in net revenues compared to the prior year. A portion of
this increase is the result of the sale of the Carmenet brand in the third
quarter. Wine sales in 2001 were slowed by the events of September 11th, which
also accounts for some of the growth the company posted in 2002.
"Because of the sluggish economy and excess wine in the market, the fine wine
industry in general had a very challenging year in 2002," said President & CEO
Tom Selfridge. "Looking ahead, we anticipate 2003 to be even more challenging.
The economy does not appear to be improving soon and there is a growing supply
of wines domestically and from overseas. We have added sales positions to
increase market share while tightly controlling our inventory and expenditures
in keeping with our long-term strategy. The wine industry is very cyclical and
we are positioning ourselves for continued growth when the economy and the
industry eventually rebound."
Chalone Wine Group, Ltd. is a Napa-based company specializing in premium red and
white varietal wines. In California, the Company owns and operates Acacia(R)
Vineyard in the Carneros District of Napa County, and Provenance(TM) Vineyards,
Hewitt Vineyard and Jade Mountain(R) in Napa County; Chalone Vineyard(R) in
Monterey County; and Moon Mountain(R) Vineyard and Dynamite(TM) Vineyards in
Sonoma County; In conjunction with its 50 percent joint-venture partner, Paragon
Vineyard Co., the Company also owns and operates Edna Valley Vineyard(R) in San
Luis Obispo County. Additionally, the Company produces and markets wines under
the brand name Echelon Vineyards. In Washington State, the Company owns and
operates Sagelands(R) Vineyard and Canoe Ridge(R) Vineyard. In the Bordeaux
region of France, the Company owns 23.5 percent of the fourth-growth estate of
Chateau Duhart-Milon, in partnership with Domaines Barons de Rothschild
(Lafite), which owns the other 76.5 percent.
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of the
federal securities laws, including statements regarding Chalone Wine Group's
performance in the marketplace and operational success, future events and
management's plans and expectations. These statements involve risks and
uncertainties that could cause actual results and events to differ materially,
including variations in market taste as well as demand, changes in worldwide
supply and demand of grapes and wine. A detailed discussion of other risks and
uncertainties that could cause actual results and events to differ materially
from such forward-looking statements is included in Chalone Wine Group's
periodic filings with the Securities and Exchange Commission, including the
Company's quarterly report on Form 10-Q for the quarter ended March 31, 2002.
The Company undertakes no obligation to update forward-looking statements to
reflect events or uncertainties occurring after the date of this press release.
CHALONE Wine Group
Earnings Release for the
Quarter Ended December 31, 2002
The financial position and results below are in thousands of US dollars:
December 31
_________________________
2002 2001
________ ________
Current assets $ 98,454 $ 90,456
Total assets 200,194 184,469
Current liabilities 41,013 38,736
Shareholders' equity 94,793 91,315
Working capital 57,441 51,720
Three months ended Twelve months ended
December 31 December 31
_______________________________________________________
2002 2001 2002 2001
________ ________ ________ ________
Gross revenues $ 20,800 $ 17,184 $ 69,001 $ 56,220
Excise taxes (640) (440) (1,996) (1,559)
________ ________ ________ ________
Net revenues 20,160 16,744 67,005 54,661
Cost of wines sold (14,497) (9,975) (44,877) (34,922)
________ ________ ________ ________
Gross profit 5,663 6,769 22,128 19,739
Other operating revenue, net 242 166 (448) 248
SG&A expenses (3,754) (4,600) (13,700) (12,256)
________ ________ ________ ________
Operating income 2,151 2,335 7,980 7,731
Interest expense, net (1,612) (1,159) (4,549) (4,155)
Other income 388 6 (43) 29
Equity in net income of Chateau Duhart-Milon 46 127 842 556
Minority interest (206) (214) (748) (572)
________ ________ ________ ________
Income before income taxes 767 1,095 3,482 3,589
Income taxes (73) (442) (1,186) (1,523)
________ ________ ________ ________
Net income $ 694 $ 653 $ 2,296 $ 2,066
======== ======== ======== ========
Diluted earnings per share $ 0.06 $ 0.06 $ 0.19 $ 0.15
Average number of shares outstanding - diluted 12,079 12,068 12,091 12,068