Exhibit 99.1
FOR IMMEDIATE RELEASE
CONTACT: Ken Morris
707-254-4263
THE CHALONE WINE GROUP REPORTS FIRST QUARTER 2003 RESULTS
Napa, California, May 9, 2003 --- The Chalone Wine Group, Ltd. (Nasdaq: CHLN)
announced today net income of $64,000 for the first quarter of 2003, compared to
$478,000 for the same period in 2002. Total case sales reported were 138,228
compared to 152,158 for the same period in 2002. Selling, General and
Administrative expenses were $3,120,000, versus $3,178,000 for the same period
in 2002. Diluted earnings per share for the first quarter of 2003 were $.01.
"As we had anticipated, 2003 is starting off as a very challenging year," said
President and CEO Tom Selfridge. "In 2002, even with the lackluster economy and
over supply of wine, we consistently posted gains but the slump in consumer
confidence caused by the continuing sluggish economy and the war in Iraq had a
chilling effect this quarter."
"While we did not have as good a quarter this year as we did in 2002, we are on
track to meet our sales goals for 2003," Selfridge said. "We have reduced
expenses and we are keeping a tight control on wine inventory levels."
Selfridge added, "While we predict 2003 will continue to be a demanding year, we
expect continued sales growth this year as a result of increases in our sales
force, a solid long-term marketing plan and our investment in top-quality
vineyards."
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(TM) 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 March 31, 2003
The financial position and results below are in thousands of US dollars:
March 31
_________________________
2003 2002
____ ____
Current assets $ 90,554 $ 85,517
Total assets 191,911 179,528
Current liabilities 33,120 33,539
Shareholders' equity 95,241 91,761
Working capital 57,434 51,978
Three months ended
March 31
_________________________
2003 2002
____ ____
Gross revenues $ 13,925 $ 15,960
Excise taxes (417) (460)
__________ _________
Net revenues 13,508 15,500
Cost of wines sold (8,913) (10,150)
__________ _________
Gross profit 4,595 5,350
Other operating revenue, net (5) (407)
SG&A expenses (3,120) (3,178)
__________ _________
Operating income 1,470 1,765
Interest expense, net (1,375) (908)
Other income 53 20
Equity in net income of Chateau Duhart-Milon - 148
Minority interest (39) (206)
__________ _________
Income before income taxes 109 819
Income taxes (45) (341)
__________ _________
Net income $ 64 $ 478
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Diluted earnings per share $ 0.01 $ 0.04
Average number of shares outstanding - diluted 12,079 12,111