<PAGE> 1
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U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________________________________________
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the Quarterly Period Ended March 31, 1996
--------------------------------------------
or
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from ________________________ to________________
Commission File Number: 33-61516
---------------------------------------------------
THE ROBERT MONDAVI CORPORATION
Incorporated under the laws I.R.S. Employer Identification:
of the State of California 94-2765451
Principal Executive Offices:
7801 St. Helena Highway
Oakville, CA 94562
Telephone: (707) 259-9463
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Yes X No
------ ------
As of April 30, 1996 there were issued and outstanding 7,155,512 shares of the
issuer's Class A Common Stock and 7,676,012 shares of the issuer's Class B
Common Stock.
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<PAGE> 2
ITEM 1. FINANCIAL STATEMENTS.
THE ROBERT MONDAVI CORPORATION
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT SHARE DATA)
ASSETS
<TABLE>
<CAPTION>
MARCH 31, JUNE 30,
1996 1995
-------- --------
<S> <C> <C>
Current assets:
Cash $ - $ 900
Accounts receivable--trade, net 34,994 32,601
Advances to joint ventures 41 116
Inventories 148,606 113,375
Prepaid expenses and other current assets 2,171 770
--------- ---------
Total current assets 185,812 147,762
Property, plant and equipment, net 149,318 120,934
Investments in joint ventures 16,198 11,792
Other assets 1,712 1,826
--------- ---------
Total assets $ 353,040 $ 282,314
========== =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Book overdraft $ 6,761 $ -
Notes payable to banks 2,000 -
Accounts payable--trade 10,264 9,411
Accrued payroll, bonuses and benefits 7,929 9,247
Other accrued expenses 2,659 1,986
Current portion of long-term debt 22,567 6,071
Income taxes payable - 1,160
Deferred revenue 2,518 1,493
Deferred income taxes 1,280 1,495
--------- ---------
Total current liabilities 55,978 30,863
Long-term debt, less current portion 102,754 113,017
Deferred income taxes 7,950 7,368
Deferred executive compensation 5,674 5,839
Other liabilities 1,131 665
--------- ---------
Total liabilities 173,487 157,752
---------- ---------
Commitments and contingencies
Shareholders' equity:
Preferred Stock:
Authorized--5,000,000 shares
Issued and outstanding--no shares - -
Class A Common Stock, without par value:
Authorized--25,000,000 shares
Issued and outstanding--7,155,512 and 4,448,853 shares 71,975 34,441
Class B Common Stock, without par value:
Authorized--12,000,000 shares
Issued and outstanding--7,676,012 and 8,325,781 shares 12,324 13,364
Retained earnings 95,254 76,757
--------- ---------
179,553 124,562
--------- ---------
Total liabilities and shareholders' equity $ 353,040 $ 282,314
========= =========
</TABLE>
See Notes to Consolidated Financial Statements.
2
<PAGE> 3
THE ROBERT MONDAVI CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED, IN THOUSANDS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
MARCH 31, MARCH 31,
----------------- -----------------
1996 1995 1996 1995
---- ---- ---- ----
<S> <C> <C> <C> <C>
Gross revenues $ 61,537 $ 55,560 $ 184,187 $153,082
Less excise taxes 3,148 2,823 9,451 7,800
-------- --------- -------- --------
Net revenues 58,389 52,737 174,736 145,282
Cost of goods sold 30,085 24,929 90,197 72,509
-------- --------- -------- --------
Gross profit 28,304 27,808 84,539 72,773
Selling, general and administrative expenses 16,761 16,177 50,557 46,441
-------- --------- -------- --------
Operating income 11,543 11,631 33,982 26,332
Other income (expense):
Interest (2,275) (2,443) (6,328) (6,198)
Equity in net income (loss) of joint ventures (130) (37) 2,120 1,868
Other 598 79 849 (742)
-------- --------- -------- -------
Income before income taxes 9,736 9,230 30,623 21,260
Provision for income taxes 3,855 3,538 12,126 8,425
-------- --------- -------- --------
Net income $ 5,881 $ 5,692 $ 18,497 $ 12,835
======== ========= ======== ========
Earnings per share $ .38 $ .44 $ 1.22 $ 1.00
======== ========= ======== ========
Weighted average number of common shares
and equivalents outstanding 15,431 12,846 15,124 12,791
======== ========= ======== ========
</TABLE>
See Notes to Consolidated Financial Statements.
3
<PAGE> 4
THE ROBERT MONDAVI CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED, IN THOUSANDS)
<TABLE>
<CAPTION>
NINE MONTHS ENDED
MARCH 31,
-------------------
1996 1995
---- ----
<S> <C> <C>
Cash flows from operating activities:
Net income $ 18,497 $ 12,835
Adjustments to reconcile net income to net cash
provided by (used in) operating activities:
Deferred income taxes 367 1,299
Depreciation and amortization 7,557 6,427
Equity in net income of joint ventures (2,120) (1,868)
Other 91 630
Changes in assets and liabilities:
Accounts receivable--trade (2,393) 1,989
Inventories (35,231) (21,227)
Other assets (1,401) (487)
Accounts payable--trade and accrued expenses 208 3,732
Income taxes payable (1,160) 638
Deferred revenue 1,025 129
Deferred executive compensation (165) 125
Other liabilities 466 (42)
--------- --------
Net cash provided by (used in) operating activities (14,259) 4,180
-------- ---------
Cash flows from investing activities:
Acquisitions of property, plant and equipment (35,852) (21,984)
Distributions from joint ventures 4,102 422
Contributions to joint ventures (6,388) ( 308)
--------- --------
Net cash used in investing activities (38,138) (21,870)
-------- --------
Cash flows from financing activities:
Book overdraft 6,761 10,281
Net additions (repayments) under short-term unsecured credit lines 2,000 (24,000)
Proceeds from issuance of long-term debt 42,168 42,978
Principal repayments of long-term debt (35,935) (12,282)
Proceeds from issuance of Class A Common Stock 35,401 107
Exercise of Class A Common Stock options 1,093 - -
Other 9 213
--------- ---------
Net cash provided by financing activities 51,497 17,297
--------- ---------
Net decrease in cash (900) (393)
Cash at the beginning of the period 900 393
--------- ---------
Cash at the end of the period $ - - $ - -
========= =========
</TABLE>
See Notes to Consolidated Financial Statements.
4
<PAGE> 5
THE ROBERT MONDAVI CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1--BASIS OF PRESENTATION:
In the opinion of management, the accompanying unaudited consolidated
financial statements contain all adjustments (which include only normal
recurring adjustments) necessary to present fairly the Company's financial
position at March 31, 1996, its results of operations for the three and nine
month periods ended March 31, 1996 and 1995 and its cash flows for the nine
month periods ended March 31, 1996 and 1995. Certain information and footnote
disclosures normally included in financial statements prepared in accordance
with generally accepted accounting principles have been condensed or omitted
from the accompanying consolidated financial statements. For further
information, reference should be made to the consolidated financial statements
and notes thereto included in the Company's Annual Report on Form 10-K (the
10-K) for the fiscal year ended June 30, 1995 on file at the Securities and
Exchange Commission.
NOTE 2--MAJOR CUSTOMERS:
The Company sells the majority of its wines through distributors in
the United States and through brokers and agents in export markets. There is a
common ownership in several distributorships in different states that, when
considered to be one entity, represented 30% and 25%, respectively, of gross
revenues for the three months ended March 31, 1996 and 1995 and 28% of gross
revenues for the nine months ended March 31, 1996 and 1995. Trade accounts
receivable from these distributors at March 31, 1996 and June 30, 1995 totaled
$12,047,000 and $9,657,000, respectively.
NOTE 3--INVENTORIES:
Inventories consist of the following (in thousands):
<TABLE>
<CAPTION>
MARCH 31, JUNE 30,
--------- --------
1996 1995
---- ----
<S> <C> <C>
Wine in production $ 111,027 $ 84,652
Bottled wine 41,703 32,460
Crop costs and supplies 8,818 9,333
--------- ---------
Inventories stated at FIFO cost 161,548 126,445
Reserve for LIFO valuation method (12,942) (13,070)
--------- ---------
$ 148,606 $ 113,375
========= =========
</TABLE>
Information related to the FIFO method may be useful in comparing
operating results to those of companies not on LIFO. If inventories valued at
LIFO cost had been valued at FIFO cost, net income would have increased by
approximately $353,000 for the three months ended March 31, 1996, decreased by
approximately $1,995,000 for the three months ended March 31, 1995, and
decreased by approximately $77,000 and $3,402,000, respectively, for the nine
months ended March 31, 1996 and 1995.
5
<PAGE> 6
NOTE 4--PROPERTY, PLANT AND EQUIPMENT:
The cost and accumulated depreciation of property, plant and equipment
consist of the following (in thousands):
<TABLE>
<CAPTION>
MARCH 31, JUNE 30,
--------- --------
1996 1995
---- ----
<S> <C> <C>
Land $ 35,618 $ 28,742
Vineyards 27,561 26,514
Machinery and equipment 89,557 81,096
Buildings 29,992 29,581
Vineyards under development 5,634 4,126
Construction in progress 29,540 12,928
--------- ---------
217,902 182,987
Less--accumulated depreciation (68,584) (62,053)
-------- --------
$ 149,318 $ 120,934
========== =========
</TABLE>
Included in fixed assets are $200,000 and $112,000, respectively, of
interest capitalized for the three months ended March 31, 1996 and 1995 and
$431,000 and $578,000, respectively, of interest capitalized for the nine
months ended March 31, 1996 and 1995.
NOTE 5--INVESTMENTS IN JOINT VENTURES
During March 1996, the Company and vina Errasuriz S.A., Santiago,
Chile, completed the formation of Vina Caliterra S.A., a 50/50 joint venture
entered to produce and market premium, superpremium and ultrapremium Chilean
wines. As of March 31, 1996, the Company had contributed $5,300,000 to this
joint venture.
As of March 31, 1996, the Company had made contributions and advances
totaling $1,396,000 to a 50/50 joint venture between the Company and Marchesi
De Frescobaldi S.P.A., Florence, Italy, to produce and market superpremium and
ultrapremium Italian wines.
NOTE 6--LONG-TERM DEBT:
Long-term debt consists of the following (in thousands):
<TABLE>
<CAPTION>
MARCH 31, JUNE 30,
--------- --------
1996 1995
---- ----
<S> <C> <C>
Long-term unsecured credit lines $ 40,000 $ 28,150
Fixed rate secured term loans 42,928 50,009
Fixed rate unsecured term loans 40,000 40,000
Capitalized lease obligations 2,231 736
Other 162 193
--------- ---------
125,321 119,088
Less--current portion (22,567) (6,071)
--------- ---------
$ 102,754 $ 113,017
========== =========
</TABLE>
NOTE 7--SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest, net of amounts capitalized, was $5,490,000 and
$6,219,000 for the nine months ended March 31, 1996 and 1995, respectively.
Cash paid for income taxes was $12,919,000 and $6,488,000 for the nine months
ended March 31, 1996 and 1995, respectively.
6
<PAGE> 7
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS.
THREE MONTHS ENDED MARCH 31, 1996.
GROSS REVENUES. Gross revenues increased by 10.6% to $61.5 million in the
third quarter of fiscal 1996 from $55.6 million in the third quarter of fiscal
1995. The increase in gross revenues was primarily attributable to a 12.7%
increase in sales volume to 1,352,000 cases in the third quarter of fiscal 1996
from 1,200,000 cases in the third quarter of fiscal 1995. Limited wine
supplies constrained the Company's third quarter sales volume growth and these
limited supplies will constrain sales volume growth in the fourth quarter of
fiscal 1996.
EXCISE TAXES. The Company's federal and state excise taxes increased by 10.7%
to $3.1 million in the third quarter of fiscal 1996 from $2.8 million in the
third quarter of fiscal 1995. The dollar increase in excise taxes correlates
to the increase in sales volume, since the excise tax is assessed on a per
gallon basis and the excise tax rate is unchanged from the prior year.
NET REVENUES. As a result of the above factors, net revenues increased by
10.8% to $58.4 million in the third quarter of fiscal 1996 from $52.7 million
in the third quarter of fiscal 1995. Net revenues per case decreased by 2.6%
in the third quarter of fiscal 1996 compared to the third quarter of fiscal
1995, primarily reflecting a shift in sales mix to the Woodbridge brand.
COST OF GOODS SOLD. Cost of goods sold increased by 20.9% to $30.1 million in
the third quarter of fiscal 1996 from $24.9 million in the third quarter of
fiscal 1995, primarily reflecting an increase in sales volume and average cost
per case. During the third quarter of fiscal 1996, the Company revised its
inventory projections for the fiscal year, resulting in an unfavorable LIFO
adjustment. During the third quarter of fiscal 1995, the Company's inventory
projections resulted in a favorable LIFO adjustment. If inventories valued at
LIFO cost had been valued at FIFO cost, then cost of goods sold would have been
$585,000 lower and $3.3 million higher, respectively, in the third quarter of
fiscal 1996 and 1995.
GROSS PROFIT. Gross profit increased by 1.8% to $28.3 million in the third
quarter of fiscal 1996 from $27.8 million in the third quarter of fiscal 1995,
primarily reflecting increased sales volume that was partially offset by the
increase in average cost per case discussed above. The Company's gross profit
percentages for the third quarter of fiscal 1996 and 1995 were 48.5% and 52.7%,
respectively.
OPERATING EXPENSES. Operating expenses increased by 3.7% to $16.8 million in
the third quarter of fiscal 1996 from $16.2 million in the third quarter of
fiscal 1995. The ratio of operating expenses to net revenues was 28.7% in the
third quarter of fiscal 1996 and 30.7% in the third quarter of fiscal 1995.
The improved operating expense ratio was due to economies of scale in personnel
and overhead costs achieved as a result of increased net revenues and a
decrease in the average promotional dollars spent per case.
OPERATING INCOME. As a result of the factors discussed above, operating
income was consistent with the prior year at $11.5 million in the third quarter
of fiscal 1996 and $11.6 million in the third quarter of fiscal 1995.
INTEREST. Interest expense decreased by 4.2% to $2.3 million in the third
quarter of fiscal 1996 from $2.4 million in the third quarter of fiscal 1995,
primarily reflecting a decrease in the Company's average interest rate and an
increase in the amount of interest capitalized, which were partially offset by
an increase in the Company's average borrowings.
EQUITY IN NET INCOME OF JOINT VENTURES. Equity in net income of joint
ventures was $(130,000) in the third quarter of fiscal 1996 compared to
$(37,000) in the third quarter of fiscal 1995.
OTHER. "Other" primarily consists of miscellaneous non-operating income and
expense items. In the third quarter of fiscal 1996, "Other" was $598,000
compared to $79,000 in the third quarter of fiscal 1995.
7
<PAGE> 8
INCOME BEFORE INCOME TAXES. As a result of the factors discussed above,
income before income taxes increased by 5.4% to $9.7 million in the third
quarter of fiscal 1996 from $9.2 million in the third quarter of fiscal 1995.
PROVISION FOR INCOME TAXES. The provision for income taxes was $3.9 million
in the third quarter of fiscal 1996 compared to $3.5 million in the third
quarter of fiscal 1995. The Company's effective tax rate was 39.6% and 38.3%,
respectively, in the third quarter of fiscal 1996 and 1995. During the third
quarter of fiscal 1995, the Company's provision for income taxes was favorably
adjusted to reflect higher than expected levels of investment tax credits.
NET INCOME AND EARNINGS PER SHARE. As a result of the above factors, net
income increased by 3.5% to $5.9 million in the third quarter of fiscal 1996
from $5.7 million in the third quarter of fiscal 1995. Earnings per share
decreased to $.38 in the third quarter of fiscal 1996 from $.44 in the third
quarter of fiscal 1995, reflecting the increase in weighted average shares
outstanding resulting from the Company's second public offering of stock in
August 1995.
NINE MONTHS ENDED MARCH 31, 1996.
GROSS REVENUES. Gross revenues increased by 20.3% to $184.2 million in first
nine months of fiscal 1996 from $153.1 million in the first nine months of
fiscal 1995. The increase in gross revenues was primarily attributable to a
23.4% increase in sales volume to 4,030,000 cases in the first nine months of
fiscal 1996 from 3,266,000 cases in the first nine months of fiscal 1995. Due
to the limited supply of the Company's wines, sales volume growth is not
expected to continue at this level for the remainder of the fiscal year.
EXCISE TAXES. The Company's federal and state excise taxes increased by 21.8%
to $9.5 million in the first nine months of fiscal 1996 from $7.8 million in
the first nine months of fiscal 1995. The dollar increase in excise taxes
correlates to the increase in sales volume, since the excise tax is assessed on
a per gallon basis and the excise tax rate is unchanged from the prior year.
NET REVENUES. As a result of the above factors, net revenues increased by
20.2% to $174.7 million in the first nine months of fiscal 1996 from $145.3
million in the first nine months of fiscal 1995. Net revenues per case
decreased by 2.6% in the first nine months of fiscal 1996 compared to the first
nine months of fiscal 1995, primarily reflecting a shift in sales mix to the
Woodbridge brand.
COST OF GOODS SOLD. Cost of goods sold increased by 24.4% to $90.2 million in
the first nine months of fiscal 1996 from $72.5 million in the first nine
months of fiscal 1995, primarily reflecting the increase in sales volume. If
inventories valued at LIFO cost had been valued at FIFO cost, then cost of
goods sold would have been $128,000 and $5.6 million higher, respectively, in
the first nine months of fiscal 1996 and 1995.
GROSS PROFIT. Gross profit increased by 16.1% to $84.5 million in the first
nine months of fiscal 1996 from $72.8 million in the first nine months of
fiscal 1995, primarily reflecting increased sales volume. The Company's gross
profit percentage for the first nine months of fiscal 1996 decreased to 48.4%
from 50.1% for the first nine months of fiscal 1995, reflecting lower grape
yields on the Company's vineyards and increasing bulk wine prices.
OPERATING EXPENSES. Operating expenses increased by 9.1% to $50.6 million in
the first nine months of fiscal 1996 from $46.4 million in the first nine
months of fiscal 1995. The ratio of operating expenses to net revenues was
28.9% in the first nine months of fiscal 1996 and 32.0% in the first nine
months of fiscal 1995. The dollar increase in operating expenses was primarily
attributable to an increase in sales and marketing expenses and employee
compensation associated with increased sales volume and improved profitability.
The improved operating expense ratio was due to economies of scale in personnel
and overhead costs achieved as a result of increased net revenues and a
decrease in the average promotional dollars spent per case.
8
<PAGE> 9
OPERATING INCOME. As a result of the factors discussed above, operating
income increased by 29.3% to $34.0 million in the first nine months of fiscal
1996 from $26.3 million in the first nine months of fiscal 1995.
INTEREST. Interest expense increased by 1.6% to $6.3 million in the first
nine months of fiscal 1996 from $6.2 million in the first nine months of fiscal
1995. This increase was primarily attributable an increase in the Company's
average interest rate, which was partially offset by a decrease in the
Company's average borrowings.
EQUITY IN NET INCOME OF JOINT VENTURES. Equity in net income of joint
ventures was $2.1 million in the first nine months of fiscal 1996 compared to
$1.9 million in the first nine months of fiscal 1995. This increase was
primarily attributable to improved income from the Opus One joint venture
during the period.
OTHER. "Other" primarily consists of miscellaneous non-operating income and
expense items. In the first nine months of fiscal 1996, "Other" was $849,000
compared to $(742,000) in the first nine months of fiscal 1995. The
improvement in "Other" was due mainly to tax refunds and a decrease in vineyard
write-downs.
INCOME BEFORE INCOME TAXES. As a result of the factors discussed above,
income before income taxes increased by 43.7% to $30.6 million in the first
nine months of fiscal 1996 from $21.3 million in the first nine months of
fiscal 1995.
PROVISION FOR INCOME TAXES. The provision for income taxes was $12.1 million
in the first nine months of fiscal 1996 and $8.4 million in the first nine
months of fiscal 1995. The Company's effective tax rate was 39.6% for the
first nine months of fiscal 1996 and 1995.
NET INCOME AND EARNINGS PER SHARE. As a result of the above factors, net
income increased to $18.5 million in the first nine months of fiscal 1996 from
$12.8 million in the first nine months of fiscal 1995. Earnings per share
increased to $1.22 in the first nine months of fiscal 1996 from $1.00 in the
first nine months of fiscal 1995. Earnings per share for the first nine months
of fiscal 1996 reflects the increase in weighted average number of shares
outstanding resulting from the Company's second public offering of stock in
August 1995.
LIQUIDITY AND CAPITAL RESOURCES.
Working capital as of March 31, 1996, was $129.8 million compared to
$116.9 million at June 30, 1995. The $12.9 million increase in working capital
was primarily attributable to a $35.2 million increase in inventories, which
was partially offset by a shift in debt from long- term to short-term. The
Company had a $6.8 million book overdraft at March 31, 1996, reflecting the
float on outstanding checks, principally for payments to growers for the 1995
harvest, which were due on April 1, 1996. The Company had a cash balance of
$900,000 at June 30, 1995.
The Company has historically financed its growth through increases in
borrowings and cash flows from operations. In addition, the Company received
$32.3 million in net proceeds from its initial public offering of stock in June
1993 and an additional $35.3 million in net proceeds from its second public
offering of stock in August 1995. During the first nine months of fiscal 1996,
the Company's primary uses of capital have been to finance the following: a
$35.9 million increase in property, plant and equipment (including vineyard
land acquisitions, expansion of the Woodbridge and Byron wineries, purchases of
new oak barrels and vineyard development), a $35.2 million increase in
inventory, $7.8 million in repayments of term debt and $6.4 million in
contributions and advances to the Company's new Chilean and Italian joint
ventures. In addition to the net proceeds from the Company's August 1995
public offering of stock, the primary sources of funds during the first nine
months of fiscal 1996 were from the following: $18.5 million in net income, as
well as the non-cash impact on pre-tax income of $7.6 million in depreciation
and amortization, $11.9 million in net additions under the Company's long-term
credit lines and $4.1 million in distributions from joint ventures.
9
<PAGE> 10
The Company's capital spending requirements have increased due to
vineyard acquisitions and developments to improve the Company's long-term grape
supply and support expected future sales volume growth. During the first nine
months of fiscal 1996, the Company spent approximately $11.0 million for
vineyard land acquisitions. The Company also entered into commitments totaling
approximately $4.3 million for additional vineyard acquisitions that are
expected to be funded during the fourth quarter of fiscal 1996. The Company
anticipates that the increased capital spending requirements will be met by
funds generated through additional borrowings or financings.
PART II
ITEM 1. LEGAL PROCEEDINGS.
The Company is subject to litigation in the ordinary course of its
business. In the opinion of management, the ultimate outcome of existing
litigation will not have a material adverse effect on the Company's
consolidated financial condition or the results of its operations.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.
1) Exhibits:
Exhibit 11 Statement re Computation of Per
Share Earnings.
2) Form 8-K:
No reports on Form 8-K were filed during the quarter
ended March 31, 1996.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
THE ROBERT MONDAVI CORPORATION
Dated: May 14, 1996 By /s/ GREGORY M. EVANS
--------------------------------
Gregory M. Evans,
Senior Vice President and
Chief Financial Officer
10
<PAGE> 11
EXHIBIT INDEX
Exhibit 11 Computation of Primary Earnings Per Share
Exhibit 27 Financial Data Sheet
<PAGE> 1
THE ROBERT MONDAVI CORPORATION
STATEMENT REGARDING COMPUTATION OF PER SHARE EARNINGS
EXHIBIT 11
COMPUTATION OF PRIMARY EARNINGS PER SHARE
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
MARCH 31, MARCH 31,
--------- ---------
1996 1995 1996 1995
---- ---- ---- ----
<S> <C> <C> <C> <C>
Weighted average number of
common shares outstanding
during the period 14,810,598 12,751,490 14,529,620 12,746,454
Common Stock equivalents
considered to be outstanding
for periods presented:
Options 620,513 94,476 593,893 44,224
------------ ------------ ------------ -----------
15,431,111 12,845,966 15,123,513 12,790,678
============ ============ ============ ===========
Net income $ 5,881,000 $ 5,692,000 $ 18,497,000 $12,835,000
============ ============ ============ ===========
Primary earnings per share $ .38 $ .44 $ 1.22 $ 1.00
============ ============ ============ ===========
</TABLE>
COMPUTATION OF FULLY DILUTED EARNINGS PER SHARE
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
MARCH 31, MARCH 31,
--------- ---------
1996 1995 1996 1995
---- ---- ---- ----
<S> <C> <C> <C> <C>
Weighted average number of
common shares outstanding
during the period 14,810,598 12,751,490 14,529,620 12,746,454
Common Stock equivalents
considered to be outstanding
for periods presented:
Options 620,810 90,389 596,398 69,458
------------ ------------ ------------ -----------
15,431,408 12,842,479 15,126,018 12,815,912
============ ============ ============ ===========
Net income $ 5,881,000 $ 5,692,000 $ 18,497,000 $12,835,000
============ ============ ============ ===========
Fully diluted earnings per share $ .38 $ .44 $ 1.22 $ 1.00
============ ============ ============ ===========
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1000
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> JUN-30-1996
<PERIOD-START> JUL-01-1995
<PERIOD-END> MAR-31-1996
<EXCHANGE-RATE> 1
<CASH> 0
<SECURITIES> 0
<RECEIVABLES> 34,994
<ALLOWANCES> 0
<INVENTORY> 148,606
<CURRENT-ASSETS> 185,812
<PP&E> 217,902
<DEPRECIATION> 68,584
<TOTAL-ASSETS> 353,040
<CURRENT-LIABILITIES> 55,978
<BONDS> 102,754
0
0
<COMMON> 84,299
<OTHER-SE> 95,254
<TOTAL-LIABILITY-AND-EQUITY> 353,040
<SALES> 174,736
<TOTAL-REVENUES> 174,736
<CGS> 90,197
<TOTAL-COSTS> 90,197
<OTHER-EXPENSES> 50,557
<LOSS-PROVISION> 0
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<INCOME-TAX> 12,126
<INCOME-CONTINUING> 18,497
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<NET-INCOME> 18,497
<EPS-PRIMARY> 1.22
<EPS-DILUTED> 1.22
</TABLE>
