Business Context and Reporting Period
Company: Constellation Brands, Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: June 28, 2018
Reporting Period: First fiscal quarter ended May 31, 2018.
Context: This filing announces the Company's financial condition and results of operations for the quarter and declares a quarterly cash dividend.
Key Financial Metrics
The filing text incorporates a news release (Exhibit 99.1) containing detailed financial results but does not explicitly state specific numerical values for revenue, profit, cash flow, margins, debt, or liquidity within the body of this 8-K document.
- Revenue, Profit, Cash Flow, Margins, Debt, Liquidity: Specific figures are not provided in the filing text; they are contained in the attached news release.
- Dividend Declaration:
- Class A Common Stock: $0.74 per share
- Class B Common Stock: $0.67 per share
- Class 1 Common Stock: $0.67 per share
- Payment Date: August 24, 2018
- Record Date: August 10, 2018
Material Changes and Non-GAAP Measures
The filing highlights the use of "comparable" (non-GAAP) measures to evaluate underlying business trends. The following items are excluded from these comparable results:
- Net gain/loss on mark-to-fair value of undesignated commodity derivative contracts and settlements.
- Accelerated depreciation related to restructuring and strategic business development.
- Loss on inventory write-down and flow-through of inventory step-up from acquisitions.
- Restructuring costs, impairment of intangible assets, and transaction/integration costs.
- Net costs related to the sale of the Canadian wine business.
- Unrealized gains on equity securities and gains on the sale of Australian and European business interests.
- Loss on extinguishment of debt.
- Net income tax benefit recognized in connection with the Tax Cuts and Jobs Act.
Guidance, Outlook, and Risks
Guidance and Outlook: The attached news release includes projections and guidance. Management notes that these involve risks and uncertainties, and actual results may vary materially from forecasts.
Risks and Contingencies: The filing references "Forward-Looking Statements" in the news release for details on risks. The information is furnished and not filed for purposes of Section 18 of the Securities Exchange Act of 1934, limiting liability for the forward-looking content.
Investor Verification Checklist
- Review Exhibit 99.1 (News Release dated June 29, 2018) for specific revenue, net income, and cash flow figures for the quarter ended May 31, 2018.
- Verify the reconciliation of non-GAAP "comparable" measures to GAAP measures provided in the news release.
- Confirm the impact of the Tax Cuts and Jobs Act on the Company's tax benefit as detailed in the release.
- Check the "Forward-Looking Statements" section in the news release for updated guidance and risk factors.
- Confirm dividend eligibility based on the August 10, 2018 record date.