EXHIBIT 99.1
THE CHALONE WINE GROUP REPORTS THIRD QUARTER 2003 RESULTS
Napa, California, Nov 14, 2003 --- The Chalone Wine Group, Ltd. (Nasdaq: CHLN)
announced today total case sales of 461,438 for the first nine months of 2003, a
three percent increase compared to the same period last year. Net income for the
first nine months of 2003 was $883,000, compared to $1,602,000 for the same
period in 2002. A portion of the increase in net income for 2002 was attributed
to the sale of the Carmenet brand name and inventory to Beringer Blass, which
was completed in September 2002. Diluted earnings per share for the third
quarter of 2003 were $.03.
"Given the sluggish economy, intense competition from imports and the general
wine glut, we're pleased to report our sales are up," said President and CEO Tom
Selfridge. "These results show that the tactical changes we made last year, such
as adding sales staff and competitive pricing, are paying off. However, we're
not out of the woods yet. We are entering what is traditionally the busiest
quarter of the year for the wine industry and we anticipate the marketplace to
remain extremely competitive."
Selfridge added, "We're excited to have recently opened the Provenance Vineyards
tasting room in Rutherford on Highway 29, the most traveled road in Napa Valley.
This attractive tasting room should increase visibility and sales of Provenance,
eventually adding to our bottom line." Looking ahead, Selfridge commented, "We
are just wrapping up the 2003 harvest and it appears that grape yields are down
and the quality is high. The lower yields seem to hold true throughout
California, which will help the wine industry bring supply in line with demand
in the future. "
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.
For more information about Chalone Wine Group, visit www.ChaloneWineGroup.com
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 June 30, 2003. 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 September 30, 2003
The financial position and results below are in thousands of US dollars:
September 30
_________________________
2003 2002
____ ____
Current assets $ 92,108 $ 87,560
Total assets 197,655 193,844
Current liabilities 43,097 34,533
Shareholders' equity 96,832 93,444
Working capital 49,011 53,027
Three months ended Nine months ended
September 30 September 30
________________________________________________________
2003 2002 2003 2002
____ ____ ____ ____
Gross revenues $ 16,878 $ 19,312 $ 46,792 $ 48,201
Excise taxes (492) (540) (1,394) (1,356)
_________ ________ ________ ________
Net revenues 16,386 18,772 45,398 46,845
Cost of wines sold (10,912) (11,839) (30,303) (30,380)
_________ ________ ________ ________
Gross profit 5,474 6,933 15,095 16,465
Other operating revenue, net 3 (288) 24 (690)
SG&A expenses (3,425) (4,051) (10,173) (9,946)
_________ ________ ________ ________
Operating income 2,052 2,594 4,946 5,829
Interest expense, net (1,371) (1,247) (3,875) (2,937)
Other income 62 (418) 160 (431)
Equity in net income of Chateau Duhart-Milon (35) 62 418 796
Minority interest (65) 77 (152) (542)
_________ ________ ________ ________
Income before income taxes 643 1,068 1,497 2,715
Income taxes (264) (404) (614) (1,113)
_________ ________ ________ ________
Net income $ 379 $ 664 $ 883 $ 1,602
========= ======== ======== ========
Diluted earnings per share $ 0.03 $ 0.06 $ 0.07 $ 0.13
Average number of shares outstanding - diluted 12,078 12,075 12,079 12,092
CONTACT: Ken Morris 707-254-4263, Kmorris@ChaloneWineGroup.com