Summary of Important Points from Constellation Brands Earnings Call

Overview of Q1 2014 Results: • Diluted EPS for Q1 landed at $0.38, in line with expectations • Total net sales for the quarter increased 6 percent; driven by the acquisition of Mark West • Consolidated gross margin was 38.3 percent versus 39.6 percent same quarter last year • US wine and spirits business reported strong consumer takeaway growth of 9 percent versus category growth of 3 percent in IRI channels • Wine and spirits segment operating income decreased $5 million to $128 million • Sales growth offset by the impact of higher grape and SG&A cost • Corporate costs increased less than $1 million for the quarter • Equity earnings for Crown landed at $66 million compare to $61 million last year • Crown generated net sales of $762 million, an increase of 5 percent; operating income increased 9 percent; primarily driven by volume growth of Modelo Especial • Interest expense was $55 million, and increase of 8 percent year over year; driven by higher average debt balances • Total debt was just over $5 million, a $1.8 million increase from end of fiscal 2013 • Finished May with $609 million in cash on the balance sheet and $1.5 billion of restricted cash Comparable base effective tax rate landed at 36.2 percent for the quarter • For the quarter, $19 million of free cash flow was used compared to $77 million used same quarter last year • Q2 Guidance • Expect shipment benefit to reverse and depletion growth to be higher • Interest expense for the year expected to be in the range of $325 million to $335 million • Full year 2014, diluted EPS expected to be in the range of $2.60 to $2.90 per share, an increase of 5 percent from previous guidance • Forecasted free cash flow in the range of $475 million to $575 million • Tax rate expected to be 37 percent in weighted average • Second quarter EBIT performance for wine and spirits expected to fall behind first quarter's performance Constellium CSTM is trading at $15.81 at the time of publication.