Constellation Brands Inc. (NYSE:STZ) Q3 2017 Earnings Conference Call - Final Transcript

Jan 05, 2017 • 10:30 am ET


Constellation Brands Inc. (NYSE:STZ) Q3 2017 Earnings Conference Call - Final Transcript


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Welcome to the Constellation Brands Third Quarter 2017 Earnings Conference Call.

[Operator Instructions]

I'l l now turn the call over to Patty Yahn-Urlaub, Vice President of Investor Relations. Please go ahead.

Patty Yahn-Urlaub

Thank you, Laurie. Good morning everyone Happy New Year and welcome to Constellation's third quarter fiscal 2017 conference call. I am here this morning with Rob Sands, our President and Chief Executive Officer and David Klein, 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 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.

Before turning the call over to Rob, I would like to ask that we continue our practice of limiting each Q&A session participants to two questions which will help us to end our call on schedule. Thanks in advance. And now here is Rob.

Rob Sands

Thanks, Patty, and good morning and Happy New Year. I hope you enjoyed the holiday and had the opportunity to include some of our great Constellation products in your celebrations with family and friends.

Now before we get started with our discussion of third quarter results, I would like to thank those of you who participated in our recent New York Investor Meeting. I hope one of your key takeaways from that meeting is that Constellation is better positioned today than it has ever been to generate growth and build value. Our business has never been stronger and the prospects across our beer, wine and spirits portfolio are compelling. We sell a diversified portfolio of fast growing premium brands from the U.S. as well as other parts of the world.

Our business continues to produce very impressive results. We are gaining share, improving margins and making smart investments to fuel growth. Consumer demand for our iconic brands remains very strong and we have no reason to expect this to abate. We are so confident about our future business prospects that we recently repurchased more than $800 million worth of our outstanding shares because we believe our stock is undervalued at current levels. I believe it's the changing political and legislative landscape in the U.S. that has recently impacted our stock price, particularly as it relates to potential changes to tax structure, tariffs and trade policies, but I will address this topic in a few moments.

With that said, let's focus our discussion on some of the industry leading results we delivered for