Q4 2023 Vintage Wine Estates Inc Earnings Call
Speaker 1: financial results for the fourth quarter in fiscal year 2023. We also issued a press release announcing that we had closed on an amendment to our lending agreement. We also issued a press release announcing that we had closed on an amendment to our
Operator: Financial Results for the fourth quarter in fiscal year 2023.
In fiscal year 2023, we also issued a press release announcing that we had closed on amendments to our lending agreement.
Operator: We also issued a press release announcing that we had close on amendment to our lending agreement. The amendment can be found in the 8k that was filed on Friday as well. In addition, we filed our restated interim period 10 cues for fiscal 2023 as well as the fiscal 2023 10k.
Speaker 1: The amendment can be found in the 8K that was filed on Friday as well.
The amendment can be found in the 8-K that was filed on Friday as well.
Speaker 1: In addition, we filed our restated interim period 10Qs for fiscal 2023, as well as the fiscal 2023 10K.
In addition, we filed our restated interim period 10, Qs for fiscal 2023 as well as the fiscal 2023 10-K.
Speaker 1: We recognize that it's unusual to file this kind of information on a Friday aftermarket, so let me give you some background.
Operator: We recognize that it's unusual to file this kind of information on a Friday after market, so let me give you some background. Our extended SEC filing deadline was last Friday, and there were several dependencies that needed to be achieved in order to meet that deadline. The 10k, which also includes immaterial revisions to numbers for fiscal 2022, was dependent upon the restatement of the three quarters and the related changes for 2022's quarters.
We recognize that it's unusual to find file this kind of information on a Friday after market. So let me give you some background.
Our extended SEC filing deadline was last Friday, and there were several dependencies that needed to be achieved in order to meet that deadline.
Speaker 1: Our extended SEC filing deadline was last Friday, and there were several dependencies that needed to be achieved in order to meet that deadline.
Operator: And the amended credit agreement was dependent upon the final financials. Given that, we did not want to miss the filing deadline. For this team and all of our partners, including our auditors, tax accountants, BIMO, who is the administrator of our lending agreement, and the nine other lenders in our loan syndicate, as well as our legal advisors worked tirelessly to make the Friday deadline.
Speaker 1: The 10K, which also includes immaterial revisions to numbers for fiscal 2022, was dependent upon the restatement of the three quarters and the related changes for 2022's quarters.
The 10-K, which also includes immaterial revisions to numbers for fiscal 2022 was dependent upon the restatement of the three quarters and the related changes for 2020 twos quarters.
Speaker 1: and the amended credit agreement was dependent upon the final financials. Given that, we did not
And the amended credit agreement was dependent upon the final financials.
Given that we did not want to miss the filing deadline.
Speaker 1: Fritz's team and all of our partners, including our auditors, tax accountants, BMO, who is the administrator of our lending agreement, and the nine other lenders in our loan syndicate, as well as our legal advisors, worked tirelessly to make the Friday debt.
Christmas team and all of our partners, including our auditors tax Accountants, BMO, who is the administrator for our lending agreement and the nine other lenders in our loan syndicate as well as our legal advisers worked tirelessly to make the Friday deadline.
Operator: While we understand that being in a situation itself created a bind, I think recognizing how far the organization has come in 2023 should not be overlooked.
Speaker 1: While we understand that being in a situation itself created the bind, I think recognizing how far the organization has come in 2023 should not be overlooked.
While we understand that being in a situation. It's all created a buying I think recognizing how far the organization has come in 2023 should not be overlooked.
Speaker 1: We scheduled a call this morning both to give folks time to digest all the information.
Operator: We scheduled a call this morning, both to give folks time to digest all the information, but also because I really didn't think anyone would appreciate a Friday evening teleconference.
Reschedule the call. This morning, both to give folks time to digest all the information.
Speaker 1: but also because I really didn't think anyone would appreciate a Friday evening telecon.
But also because I really didn't think anyone would appreciate a Friday evening teleconference.
So John is going to begin with an overview of his objectives as interim CEO and the progress. The company has made in the last eight months since he was appointed in that position.
Speaker 1: So John is going to begin with an overview of his objectives as interim CEO and the progress the company has made in the last eight months since he was appointed in that position.
Deborah Pawlowski: So, John is going to begin with an overview of his objectives as interim CEO, and the progress the company has made in the last eight months since he was appointed in that position.
Speaker 1: Chris will review financial results, and then John will wrap it up. We will then.
Deborah Pawlowski: Chris will review financial results, and then John will wrap it up. We will then open the call for questions. On slide two and three of the quarter deck, you will find discussion on forward-looking statements, non-get measures, and key performance indicators. As you know, we will make forward-looking statements during this presentation and during the Q&A session. These statements apply to future events that are subject to risks and uncertainties, as well as other factors that could cause actual results to differ materially from what is stated here today.
This will review financial results and then John will wrap it up.
We will then open the call for questions.
Speaker 1: On slide two and three of the quarter deck, you will find discussion on forward-looking statements, non-GAAP measures, and key performance and...
On slide two and three of the quarter deck, you will find discussion on forward looking statements non-GAAP measures and key performance indicators as you know we will make forward looking statements. During this presentation and during the Q&A session. These statements apply to future events that are subject to risks and uncertainties as well as the.
Speaker 1: As you know, we will make forward-looking statements during this presentation and during the Q&A session.
Speaker 1: These statements apply to future events that are subject to risks and uncertainties, as well as other factors that could cause actual results to differ materially from what is stated here today.
Other factors that could cause actual results to differ materially from what is stated here today.
Speaker 1: These risks and uncertainties and other factors were provided in our SEC filings that you can find on our website or at SEC.gov.
Deborah Pawlowski: These risks and uncertainties and other factors were provided in our SEC filings that you can find on our website for at sec.gov. I will also point out that during today's call, we will discuss some non-gap financial measures, as well as key performance indicators, which we believe are useful in evaluating our performance. You should not consider the presentation of this non-gap information in isolation, or as a substitute for results prepared in courts with gaps.
These risks and uncertainties and other factors were provided in our SEC filings that you can find on our website or at SEC Gov.
Speaker 1: I will also point out that during today's call, we will discuss some non-GAAP financial measures.
I will also point out that during today's call, we will discuss some non-GAAP financial measures.
Speaker 1: as well as key performance indicators which we believe are useful in evaluating our performance. You should not consider the presentation of this non-GAAP information in isolation.
As well as key performance indicators, which we believe are useful in evaluating our performance.
You should not consider the presentation of this non-GAAP information in isolation or as a substitute for results prepared in accordance with GAAP.
Speaker 1: or as a substitute for results prepared in courts with gaps.
Speaker 1: We have provided reconciliation of comparable GAP with non- GAAP measures in the tables that accompany today's slides and release. In addition, we use case volume as a key performance indicator to gauge performance and inform our strategy and tactics.
Deborah Pawlowski: We have provided reconciliation of comparable gap with non-gap measures in the tables that accompany today's slides and release. In addition, we use case volume as a key performance indicator to gauge performance and inform our strategy and tactics.
We have provided reconciliations of comparable GAAP with non-GAAP measures in the tables that accompany today's slides and release.
In addition, we use case volume is a key performance indicator to gauge performance and inform our strategy and tactics.
Speaker 1: With that, if you turn to slide 4, I will turn it over to John to begin the discussion. John ?
Deborah Pawlowski: With that, if you turn to slide four, I will turn it over to John to begin the discussion.
With that if you turn to slide four I will turn it over to John to begin the discussion John .
John: John? Thank you, Deb.
Thank you Deb and good morning, everyone.
John: Good morning, everyone. The last eight months, once I was appointed to the interim CEO, you've been extremely busy. My objective during this time has been to strengthen the foundation of the business and provide a more focused enterprise for Seth Kaufman, our new CEO, who will be joining us in just a couple of weeks.
Speaker 2: These last eight months since I was appointed as interim CEO , you've been extremely busy.
These last eight months I'm, sorry was appointed interim CEO have been extremely busy.
Speaker 2: My objective during this time has been to strengthen the foundation of the business and provide a more focused enterprise for Seth Kaufman, our new CEO , who will be joining us in just a couple of weeks.
My objective. During this time has been to strengthen the foundation of the business and provide a more focused enterprise for soft Kaufman.
Who will be joining us in just a couple of weeks.
John: This has been a turnaround for the organization, and let us be creating the five point plan to communicate both internally as well as externally our operating plans and priorities. You have seen this before, so I won't go through it in detail, but will it confirm that the plan does keep top of mind for everyone as VWE, what is important for our success? Turning to slide five, we highlight the miserable progress the team has accomplished since I came on board, that we expect to contribute to our margin improvement as we advance through fiscal 24 and beyond.
Speaker 2: This has been a turnaround for the organization and led us to creating the five-point plan to communicate both internally as well as externally our operating plans and priorities.
This has been a turnaround for the organization and modest creating a five point plan to communicate both internally as well.
Externally, our operating plans and priorities.
Speaker 2: You have seen this before, so I won't go through it in detail. But will it confirm that the plan does keep top of mind for everyone at VWE, what is important for our success?
You have seen this before.
I won't go through it in detail.
I wanted to confirm that the plan does keep top of mind for everyone and VW, we what is important for our success.
Turning to slide five.
Speaker 2: Turning to slide five, we highlight the miserable progress the team has accomplished since they came on board that we expect to contribute to our margin improvement as we advance through fiscal 24 and beyond.
The measurable progress the team has accomplished since I came on board.
That we expect to contribute to our margin improvement as we advance through fiscal 'twenty four and beyond.
To drive margin improvement.
John: To drive margin improvement, we have streamlined the organization on many fronts from personnel to skews. There is still work to be done on skews, but the heavy lifting has already created efficiencies and taken out costs. Understanding margins has been critical to our thinking in this process. Skew reduction was very selective and prioritized on lower margin product. In addition to reducing skews, we are being more strategic regarding product to improve margins such as optimizing blend.
Speaker 2: To drive margin improvement, we have streamlined the organization on many fronts from personnel to companies that can be
Streamlining the organization on many fronts from personnel the Skus.
Speaker 2: There is still work to be done on SKUs, but the heavy lifting has already created efficiencies and taken out costs. Understanding margins have been critical to ensure the accuracy of
Still work to be done on Skus, but the heavy lifting has already created efficiencies and taken out costs.
I understand the margins have been critical to our thinking on this process.
SKU reduction was very selective and prioritized on lower margin product.
Speaker 2: Skew reduction was very selective and prioritized on lower margin products.
Speaker 2: In addition to reducing skews, we are being more strategic regarding product to improve margins such as optimizing blends.
In addition to reducing Skus, we are being more strategic regarding product to improve margin such as optimizing blend.
Speaker 2: I should point out that we'll get some tailwinds as well as we deplete the higher cost 2020 Last 2 full minutes
John: I should point out that we will get some tailwinds as well as we deplete the higher cost 2020 vintage. From a productivity perspective, our warehousing operations are running much more efficiently and throughput through our hoplin bodily facility is materially increased. In addition to improved productivity, we have taken out costs by lightweighting glass and rationalizing our bottle molds. The plan is driven to different mindset as well and as a result we are much better at recovering shipping costs. Analytics with market data is informed our pricing strategies and as a result we have been able to capture an average about 2.8% with price.
I should point out that we'll get some tailwind as well as we deplete the higher cost 2020 minutes.
Speaker 2: From a productivity perspective, our warehousing operations are running much more efficiently and throughput through our Hopland bottling facility is miserably increasing.
From a productivity perspective, our warehousing operations are running much more efficiently and throughput through our Auckland bottling facility is measurably increased.
Speaker 2: In addition to improved productivity, we have taken out costs by lightweighting glass and rationalizing our bottle.
In addition to improved productivity, we have taken out costs by light weighting glass and rationalizing our bottleneck.
The plan has driven a different mindset as well and as a result, we are much better recovery and shipping costs.
Speaker 2: The plan has driven a different mindset as well, and as a result, we are much better at recovering shipping costs.
Speaker 2: Analytics with market data has informed our pricing strategies and as a result we have been able to capture on average about 2.8% with price.
Analytics was market data has informed our pricing strategies and as a result, we have been able to capture on average about two 8% with price.
Speaker 2: As part of the five-point plan to monetize assets, we are initiating processes to sell certain properties.
John: As part of the five point plan to monetize assets, we are initiating processes to sell certain properties. Our amended credit agreement includes the strategy for us to achieve our goal to reduce debt using properties that are underlying collateral to the lending agreement.
As part of our five point plan to monetize assets, where initially the lean processes to sell certain properties.
Speaker 2: Our amended credit agreement includes the strategy for us to achieve our goal to reduce debt using properties that are underlying collateral to the lending agreement.
Our amended credit agreement includes the strategy for us to achieve our goal to reduce debt using properties that are underlying collateral to the lending agreement.
John: In July, we restructured the leadership team to improve internal communications and drive collaboration. This new structure empowers the team to rethink how things have been done historically and be creative in our efforts to collectively achieve our plan objectives. Sets will likely bring a fresh perspective to further evolve how we operate. In addition to our human resources, we refocused our marketing sales spend to key core brands. This applies at wholesale as well as direct to consumer channel. The diversification strategy with A-Sider and leveraging international accounts and distributor relationships are proving effective as we gain points of distribution and expand market reach.
In July we restructured the leadership team to improve internal communications to drive collaboration.
Speaker 2: In July , we restructured the leadership team to improve internal communications and drive collaboration.
Speaker 2: This new structure empowers the team to rethink how things have been done historically and be creative in our efforts to collectively achieve our plan objectives.
This new structure empower the team to rethink how things have been done historically and be creative in our efforts to collectively achieve our plan objectives.
Speaker 2: Seth will likely bring a fresh perspective to further evolve how we operate.
Seth will likely bring a fresh perspective to further evolve how we operate.
In addition to our human resources, we've refocused our marketing and sales spend the key core brands.
Speaker 2: In addition to our human resources, we refocused our marketing and sales spend to key core brands. This applies at wholesale as well as direct...
<unk> at wholesale as well as direct to consumer channel.
The diversification strategy with <unk> cider and leveraging international accounts and distributor relationships are.
Speaker 2: The diversification strategy with ACIDR and leveraging international accounts and distributor relationships are proving effective as we gain points of distribution and expand market reach.
Proving effective as we gain points of distribution and expand mark good reach.
Speaker 2: With that, let me pass it over to Chris to review the financial.
Chris: With that, let me pass it over to Chris to review the financials. Thanks, Sean. I will begin my review on slide six. Revenue for the quarter declined 12.2 million or about 16%. For the year, revenue was down 9.6 million or approximately 3%. Let me review for you the impacts in the quarter by segment first. Wholesale was down 10% in the quarter as growth at A-Sider as well as improvements in brands not marketed by us helped to offset lower sales in our wholesale channel.
With that let me pass it over to Chris to review the financials.
Speaker 3: Thanks, John . I will begin my review on slide six.
Thanks, John I will begin my review on slide six.
Speaker 3: Revenue for the quarter declined 12.2 million or about 16%. For the year, revenue was down 9.6 million or approximately 3%.
Revenue for the quarter declined $12 2 million or about 16% for the year revenue was down $9 6 million or approximately 3%.
Speaker 3: Let me review for you the impacts in the quarter by segment first.
Let me review for you the impacts in the quarter by segment first.
Speaker 3: Wholesale was down 10% in the quarter as growth at Ace Cider, as well as improvements in brands not marketed by us, helped to offset lower sales in our wholesale channel. Looking sequentially, product mix was the primary reason for lower revenue on higher case volume and was directly attributable to Ace Cider, which drove the higher volume but has a lower per unit pricing versus the traditional wine category.
Wholesale was down 10% in the quarter as growth in <unk> as well as improvements in brands not marketed by US helped to offset lower sales in our wholesale channel.
Chris: Looking sequentially, product mix was the primary reason for lower revenue on higher cates volume and was directly attributable to A-Sider which drove the higher volume but had the lower per unit pricing versus the traditional wine category. The $7 million decline in B2B revenue, compared with last year's fourth quarter, was primarily the result of a $3.4 million decline related to the lower margin private label programs we eliminated, and a $2.1 million decline in high margin bulk whiskey sales. DTC was down about 12% or $2.6 million in the quarter, mostly from lower e-commerce and wine club sales. Tasting rooms were down a modest 2%.
Sequentially product mix was the primary reason for lower revenue and higher case volume and was directly attributable to a cider, which drove the higher volume, but has a lower per unit pricing versus the traditional wine category.
Speaker 3: The 7 million decline in B2B revenue compared with last year's 4th quarter was primarily the result of a 3.4 million decline related to the lower margin private label programs we eliminated. And a 2.1 million decline in high margin bulk whiskey sales.
The $7 million decline in <unk> revenue compared with last year's fourth quarter was primarily the result of a $3 4 million decline related to the lower margin private label programs, we eliminated and a $2 1 million decline in high margin bulk whiskey sales.
DTC was down about 12% or $2 6 million in the quarter, mostly from lower E Commerce and wine club sales pace.
Speaker 3: DTC was down about 12% or 2.6 million in the quarter, mostly from lower e-commerce and wine club sales. Tasting rooms were down a-
Tasting rooms were down a modest 2%.
Speaker 3: Incurrigenely, they were up over 30% sequentially, even as traffic in the region has been softer as we compete with consumers choosing to go to Europe over coming back to their annual line tour.
Encouragingly they were up over 30% sequentially, even as traffic in the region has been softer as we compete with consumers choosing to go to Europe overcoming back to their annual line tour.
Chris: Encouragingly, they were up over 30% sequentially, even as traffic in the region has been softer as we compete with consumers choosing to go to Europe over coming back to their annual wine tour. For the year, wholesale was up almost 3 million or slightly over 3%. The improvement was the result of both acquired revenue and organic growth related to a cider. This more than offset declines in distributor sales, which have been impacted by our skewer reductions and shifting brand priorities.
Speaker 3: For the year wholesale was up almost 3 million or slightly over 3%.
For the year wholesale was up almost $3 million or slightly over 3%.
Speaker 3: The improvement was the result of both acquired revenue and organic growth related to ACIDR.
The improvement was the result of both the acquired revenue and organic growth related to a cider.
Speaker 3: This more than offset declines in distributor sales, which have been impacted by our SKU reductions and shifting brand priorities.
This more than offset declines in distributor sales, which had been impacted by our SKU reductions and shifting brand priorities.
DTC for the year faced many challenges and declined almost 10%.
Chris: DTC for the year faced many challenges and declined almost 10%. The largest declines were in e-commerce sales and lower sales to major television retailer, which was redirecting programming to address changing consumer spending patterns as interest rates ramped. Together, these channels were responsible for almost 90% of the total DTC decline year over year. Tasting rooms were also down, but not to the degree of the others.
Speaker 3: CTC for the year faced many challenges and declined almost 10%.
Speaker 3: The largest declines were in e-commerce sales and lower sales to a major television retailer, which has...
The largest declines were in ecommerce sales and lower sales to a major television retailer which has.
Speaker 3: which was redirecting programming to address changing consumer spending patterns as interest rates ramped. Together, these channels were responsible for almost 90% of the total DPC decline year over year.
Which was redirecting programming to address changing consumer spending patterns as interest rates rent together. These channels were responsible for almost 90% of the total DTC declined year over year.
Speaker 3: Tasting rooms were also down, but not to the degree of the others.
Tasting rooms were also down but not to the degree of the others.
B to B fared the best for the year with the addition, and growth of Myers and strong custom production sales, which helped to offset the $13 $9 million decline related to the eliminated private label program for a major big box retailer as well as $4 2 million less in bulk whiskey sales.
Chris: B2B spared the best for the year with the addition and growth of Myers and strong custom production sales, which helped to offset the 13.9 million decline related to the eliminated private label program for a major big box retailer, as well as 4.2 million less in bulk whiskey sales.
Speaker 3: C2B spared the best for the year with the addition and growth of mires and strong custom production sales which helped to offset the 13.9 million decline related to the eliminated private label program for a major big-box retailer as well as 4.2 million less in bulk whiskey sales.
Chris: Let's turn to slide 7. Gross profit and margin improved in the fourth quarter.
Let's turn to slide seven.
Speaker 3: Gross profit and margin improved in the fourth quarter. I should point out that last year's fourth quarter was negatively impacted by approximately $19 million of other non-cash adjustments, so the comparative is tough to analyze.
Gross profit and margin improved in the fourth quarter.
Chris: I should point out that last year's fourth quarter was negatively impacted by approximately 19 million of other noncash adjustments, so the comparative is tough to analyze. For the year, the improvements being driven through the organization are helping to offset higher input costs and the approximate 200 basis point headwind of lower bulk whiskey sales. We believe we still have a lot of room to improve revenue and expand margins and that we have implemented the plans to deliver step change margin expansion in fiscal 24.
I should point out that last year's fourth quarter was negatively impacted by approximately $19 million of other non cash adjustments. So the comparative it's tough to analyze.
Speaker 3: For the year, the improvements being driven through the organization are helping to offset higher input costs and the approximate 200 basis point headwind of lower bulk whiskey sales.
For the year, the improvements being driven through the organization are helping to offset higher input costs and the approximate 200 basis point headwind of lower bulk whiskey sales.
We believe we still have a lot of room to improve revenue and expand margins.
Speaker 3: We believe we still have a lot of room to improve revenue and expand margins, and that we have implemented the plans to deliver step change margin expansion in fiscal 24.
And that we have implemented the plans to deliver step change margin expansion in fiscal 'twenty four.
Chris: Turning to slide 8, there were a number of unusual impacts to FGNA in the quarter and the year as highlighted on the slide. We will expect in the first quarter of fiscal 24 that legal professional fees and audit fees will remain elevated given all that was required to close on the credit agreement amendment and restate the quarters for the year.
Turning to slide eight.
Speaker 3: Turning to slide 8, there were a number of unusual impacts to SG&A in the quarter and the year as highlighted on the slide.
There were a number of unusual impacts to SG&A in the quarter and the year as highlighted on the slide.
We will expect in the first quarter of fiscal 'twenty for that legal professional fees and audit fees will remain elevated given all that was required to close on the credit agreement Amendment and restate the quarters for the year.
Speaker 3: we will expect in the first quarter of fiscal 24 that legal, professional fees, and audit fees will remain elevated given all that was required to close on the credit agreement amendment and restate the quarters for the year.
Speaker 3: On slide 9, you can see operating and net loss for the fourth quarter end year.
On slide nine you can see operating and net loss for the fourth quarter and year.
Chris: On slide 9, you can see operating and net loss for the fourth quarter and year.
Speaker 3: This was a challenging year, but we believe we have implemented with our five-point plan the changes needed to strengthen our foundation and meaningfully improve our business.
Chris: This was a challenging year, but we believe we have implemented with our five-point plan the changes needed to strengthen our foundation and meaningfully improve our business. I should point out that rising interest rates also impacted interest expense, which was up 2 million or 65% in the quarter and up 4.5 million or 32% for the year. Turning to slide 10, our adjusted EBITDA loss was 10.5 million in the quarter and 11.4 million in the year.
This was a challenging year, but we believe we have implemented with our five point plan the changes needed to strengthen our foundation and meaningfully improve our business.
Speaker 3: I should point out that rising interest rates also impacted interest expense, which was up 2 million or 65% in the quarter and up 4.5 million or 32% for the year.
I should point out that rising interest rates also impacted interest expense, which was up $2 million or 65% in the quarter and up $4 5 million or 32% for the year.
Turning to slide 10.
Speaker 3: Turning to slide 10, our adjusted EBITDA loss was $10.5 million in the quarter and $11.4 million in the year.
Our adjusted EBITDA loss was $10 5 million in the quarter and $11 4 million in the year.
Speaker 3: While fiscal 24 will be a transition year, we expect EBITDA to be positive and to outperform fiscal 22.
Chris: While fiscal 24 will be a transition year, we expect EBITDA to be positive and to outperform fiscal 22.
While fiscal 'twenty four it will be a transition year, we expect EBITDA to be positive and to outperform fiscal 'twenty two.
Chris: Let me address our capitalization and the amended credit agreement on slide 11. Our amended credit agreement provides us greater flexibility in regards to covenants and it includes a cash sweep so cash balances will remain below 20 million. We do have incremental principal payment requirements, which if not met will result in higher interest rates.
Let me address our capitalization and the amended credit agreement on slide 11.
Speaker 3: Let me address our capitalization and the amended credit agreement on slide 11. Our amended credit agreement provides us greater flexibility in regards to covenants, and it includes a cash sweep. So cash balances will remain below 20 million.
Our amended credit agreement provides us greater flexibility in regards to covenants and it includes our cash sweep so cash balances will remain below $20 million.
Speaker 3: We do have incremental principal payment requirements, which if not met will result in higher interest rates. We expect, however, with the monetization of certain assets, we will meet those prepayment requirements and reduce our debt.
We do have incremental principal payment requirements, which if not met will result in higher interest rates. We expect however, with the monetization of certain assets, we will meet those prepayment requirements and reduce our debt.
Chris: We expect, however, with the monetization of certain assets, we will meet those prepayment requirements and reduce our debt. Capital expenditures for the year are planned to be 12 million but we will be carefully managing that and looking for opportunities to reduce that spend.
Capital expenditures for the year are planned to be $12 million, but we will be carefully managing that and looking for opportunities to reduce that spend.
Speaker 3: Capital expenditures for the year are planned to be 12 million, but we will be carefully managing that and looking for opportunities to reduce that spend.
Speaker 3: Their investments we are looking to make to add efficiencies and that are required for us to remain fully compliant with an ever evolving regulatory environment.
Chris: There are investments we are looking to make to add efficiencies and that are required for us to remain fully compliant with an ever evolving regulatory environment.
There are investments we are looking to make to add efficiencies and that are required for us to remain fully compliant with an ever evolving regulatory environment.
Speaker 3: On slide 20, we want to visually demonstrate our expected liquidity for fiscal 24, which can practically be derived with publicly available information.
Chris: On slide 20, we want to visually demonstrate our expected liquidity for fiscal 24, which can practically be derived with publicly available information. We have itemized some of the major assumptions that we use in creating the bridge. While liquidity remains relatively unchanged by year end, we expect that the lower debt balances should reduce future interest costs which we have not depicted in this graphic.
On slide 20, we want to visually demonstrate our expected liquidity for fiscal 'twenty four.
Which can practically be derived with publicly available information.
Speaker 3: We have itemized some of the major assumptions that we use in creating the bridge.
We have itemized some of the major assumptions that we used in creating the bridge.
Speaker 3: While liquidity remains relatively unchanged by year end, we expect that the lower debt balances should reduce future interest costs, which we have not depicted in this graphic.
While liquidity remains relatively unchanged by year end, we expect that the lower debt balances should reduce future interest costs, which we have not depicted in this graphic.
Chris: Our liquidity estimates are sufficient to execute our operational plans for fiscal 24. Our focus is on driving better cash generation as we advance through this transition year and set us up for stronger performance in fiscal 25 and beyond. Many of the elements of our five point plan that we continue to execute on, we expect will deliver expanded margins in the future. This includes continued productivity enhancements, pricing strategies, blend optimizations and cost takeouts.
Our liquidity estimates are sufficient to execute our operational plans for fiscal 'twenty four.
Speaker 3: Our liquidity estimates are sufficient to execute our operational plans for fiscal 24.
Speaker 3: Our focus is on driving better cash generation as we advance through this transition year and set us up for stronger performance in fiscal 25 and beyond.
Our focus is on driving better cash generation as we advance through this transition year and set us up for stronger performance in fiscal 'twenty five and beyond.
Speaker 3: Many of the elements of our five-point plan that we continue to execute on, we expect we'll deliver expanded margins in the future.
Many of the elements of our five point plan that we continue to execute on we expect will deliver expanded margins in the future.
Speaker 3: This includes continued productivity enhancements, pricing strategies, blend optimizations, and cost takeouts.
This includes continued productivity enhancements pricing strategies blend optimization and cost takeouts.
Chris: Turning to slide 13, we have refined our guidance for fiscal 24. We expect that revenue will be in the range of 260 to 270 million and that we can achieve a 38 percent growth margin on that revenue. As GNA will decline to 98 million excluding restructuring costs of about 5 to 6 million.
Speaker 3: Turning to slide 13. We have refined our guidance for fiscal 24. We expect that revenue will be in the range of 260 to 270 million, and that we can achieve a 38% growth margin on that revenue.
Turning to slide 13, we have refined our guidance for fiscal 'twenty. Four we expect that revenue will be in the range of $260 million to $270 million and.
And that we can achieve a 38% gross margin on that revenue.
Speaker 3: S-GNA will decline to 98 million, excluding restructuring costs of about five to six million. I'll remind you, as I mentioned earlier, we do expect professional service fees to be elevated in the first quarter.
G&A will decline to 98 million, excluding restructuring costs of about $5 million to $6 million.
Chris: I'll remind you, as I mentioned earlier, we do expect professional service fees to be elevated in the first quarter. Appreciation expense is estimated to be 16 million and non-cash amortization will be approximately 6 million.
I'll remind you as I mentioned earlier, we do expect professional service fees to be elevated in the first quarter.
Speaker 3: Depreciation expense is estimated to be 16 million and non-cache amortization will be approximately 6 million. With that, let me-
Depreciation expense is estimated to be $16 million and noncash amortization will be approximately $6 million.
With that let me turn it back to John .
John: With that, let me turn it back to John. Thanks, Chris.
Yeah.
Speaker 2: Thanks, Chris. Just to wrap up, I would like to believe that as I have prepared him the reins over to Seth, that I am providing him a better business with a solid foundation both operationally and financially, from which he can drive further improvements and grow revenue.
Thanks, Chris just to wrap up I would like to believe that as I prepare to hand, the reins over to sell that I'm, providing them a better business with a solid foundation, both operationally and financially.
John: Just to wrap up, I would like to believe that as I have prepared him the reins over to Seth that I am providing him a better business with a solid foundation both operationally and financially from which he can drive further improvements and grow revenue. He will be gaining a focus and energize team that is excited to take VWE to the next level.
From which you can drive further improvements and grow revenue.
Speaker 2: He will be gaining the focus and energize team that is excited to take VWE to the next level. With that car...
He will be gaining a focused.
<unk> team is excited to take VW, we get to the next level.
Operator: With that, Carla, we can open the lines for questions. Thank you.
With that Carla we can open the lines for questions.
Speaker 4: Thank you. If you'd like to ask a question, you may do so by pressing star, followed by one on your telephone t-pad.
Thank you if you'd like to ask a question you may do so by pressing star one by one on your telephone keypads.
Operator: If you'd like to ask a question, you may do so by pressing star followed by one on your telephone t-pad. To revoke your question, please press start followed by two, and when preparing for your question, please ensure your phone is unmuted locally. We can pause here briefly whilst questions are registered. As a reminder to ask your question, please press start followed by one.
Yeah.
Speaker 4: To revoke your question, please press start followed by two. And when preparing for your question, please ensure your phone is unmuted locally. We can pause.
To revert to your question. Please press star followed by T. I went to paying for your question. Please ensure your phone is on mute locally.
We can pull to briefly whilst questions registered.
Speaker 4: As a reminder to ask a question, please press start followed by one.
As a reminder to ask a question. Please press star followed by one.
Speaker 4: We have no questions registered at this time, so we'll hand back to Deborah Palowski for final remarks.
Deborah Pawlowski: We have no questions registered at this time, so we'll hand back to Deborah Pawlowski for final remarks. Deb, you're unmuted. I have to figure out what's muted.
We have no questions registered at this time, so I'll hand back to Deborah Pawlowski for final remarks.
Deb you on mute.
I have to figure out whats muted. Thank you. Thanks.
Speaker 1: I have to figure out what's muted. Thank you. Thanks, Carla. And thanks, everyone, for joining us today. We certainly appreciate your interest in Helios in vintage-wide estate. And look forward to updating all of you on our first quarter fiscal 2024 in November .
Deborah Pawlowski: Thank you. Thanks, Carla, and thanks everyone for joining us today. We certainly appreciate your interest in Helios in vintage wine estate, and look forward to updating all of you on our first quarter fiscal 2024 in November.
Thanks Carla.
And thanks, everyone for joining us today, we certainly appreciate your interest in Helios.
Vintage widest state and look forward to updating all of you on our first quarter fiscal 2024 in November .
Deborah Pawlowski: Please feel free to reach out to me with any follow-up questions that you may have and have a great day.
Speaker 1: Please feel free to reach out to me with any follow up questions that you may have and have a great day.
Please feel free to reach out to me with any follow up questions that you may have and have a great day.
Okay.
Speaker 5: This concludes today's poll. Thank you for your participation. You may now disconnect your lines.
Operator: This concludes today's poll. Thank you for your participation.
This concludes today's call. Thank you for your participation you may now disconnect your lines.
Operator: You may now disconnect your lines. This concludes today's poll.
Okay.
Okay.
This concludes today's call.