Constellation Brands Inc A STZ
Q4 2013 Earnings Call Transcript

Transcript Call Date 04/10/2013

Operator: Good morning. My name is Lorie, and I will be your conference operator. At this time, I would like to welcome everyone to the Constellation Brands' Fourth Quarter 2013 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session.

Thank you. I would now like to turn the conference over to Patty Yahn-Urlaub, Vice President of Investor Relations. Please go ahead.

Patty Yahn-Urlaub - VP, IR: Thank you, Lorie. Good morning, everyone and welcome to Constellation's fourth quarter and fiscal year end 2013 conference call. I'm here this morning with Rob Sands, our President and Chief Executive Officer; and Bob Ryder, our Chief Financial Officer. This call complements our news release which has also been furnished to the SEC.

During this call, we may discuss financial information on a GAAP comparable, organic, and constant currency basis. However, discussions will generally focus on comparable financial results. Reconciliations between the most directly comparable GAAP measure and these and other non-GAAP financial measures are included in the news release or otherwise available on the Company's website at

Please also be aware that we may make forward-looking statements during this call. While those statements represent our best estimates and expectations, actual results could differ materially from our estimates and expectations. For a detailed list of risk factors that may impact the Company's estimates, please refer to the news release and Constellation's SEC filings.

Now, I'd like to turn the call over to Rob.

Robert Sands - President and CEO: Thank you, Patty, and good morning and welcome to our call. Before we begin our year-end review of fiscal 2013, I would like to mention that I am very excited about the fact that we have reached an agreement in principle with the U.S. Department of Justice, the finalization of which will allow Constellation to proceed with the acquisition of the remaining 50% interest in Crown Imports as well as the Piedras Negras brewery in Mexico and the perpetual brand rights for the Modelo portfolio in the U.S.

Earlier this week, we received unanimous approval from the Mexican Antitrust Commission, which further paves the way to completion of the revised deal between ABI and Constellation. This transaction represents a significant milestone for Constellation as it is the most transformational acquisition in the history of our Company. It will solidify our place in the U.S. beer market for the long-term as the perpetual brand owner and producer of the iconic Modelo beer portfolio, which includes Corona Extra, the bestselling imported beer, Corona Light, the leading imported light beer and Modelo Especial, the third largest and one of the fastest growing major imported beer brands.

Overall, this deal will allow us to nearly double the sales of our Company, diversify our profit stream, significantly enhance our earnings and free cash flow and provide new avenues for growth. It will also reestablish Constellation's position as the largest multi-category supplier for beer, wine and spirits. We will not only be the third largest total beverage alcohol Company in the U.S. but the number three brewer (supplier) of beer for the U.S. market.

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