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Duckhorn Portfolio Inc (NAPA)

The Duckhorn Portfolio is the premier producer of luxury wines in North America. The acclaimed Duckhorn Portfolio includes Duckhorn Vineyards, Decoy, Paraduxx, Goldeneye, Migration, Canvasback, Calera and Kosta Browne, each with its own dedicated winemaker.

Company profile

Ticker
NAPA
Exchange
Employees
Incorporated
Location
Fiscal year end
Industry (SIC)
Former names
Mallard Intermediate, Inc.
SEC CIK
Subsidiaries
Bootlegger’s Hill, LLC • Canvasback Wine, LLC • Chenoweth Graham, LLC • Domaine M.B., LLC • Duckhorn Wine Company • Heritage Vineyard, LLC • Heritage Wine, LLC • KB Wines Corporation • Mallard Buyer Corporation • Selway Wine Company ...

NAPA stock data

Analyst ratings and price targets

Last 3 months

Calendar

28 Sep 22
1 Oct 22
31 Jul 23
Quarter (USD) Jul 22 Apr 22 Jan 22 Oct 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Jul 22 Jul 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 3.17M 3.17M 3.17M 3.17M 3.17M 3.17M
Cash burn (monthly) 1.83M 89.75K (no burn) (no burn) (no burn) (no burn)
Cash used (since last report) 3.71M 181.84K n/a n/a n/a n/a
Cash remaining -538.65K 2.99M n/a n/a n/a n/a
Runway (months of cash) -0.3 33.3 n/a n/a n/a n/a

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
11 Jul 22 Mallard Holdco Common Stock Other Dispose J No No 0 1,003,040 0 68,147,261
11 Jul 22 Mallard Holdco Common Stock Sell Dispose S No No 19.25 5,000,000 96.25M 69,150,301
11 Jul 22 James L. O'Hara Common Stock Other Acquire J No No 0 144,527 0 144,527
1 Jul 22 Zach Rasmuson Common Stock Sell Dispose S Yes Yes 20.1819 25,000 504.55K 422,685
3 Jun 22 Lori Beaudoin Common Stock Sell Dispose S Yes Yes 22.0513 4,900 108.05K 844,695
3 Jun 22 Alex Ryan Common Stock Sell Dispose S Yes Yes 22.2144 1,800 39.99K 1,568,901
3 Jun 22 Alex Ryan Common Stock Sell Dispose S Yes Yes 21.8522 24,142 527.56K 1,570,701
13F holders Current Prev Q Change
Total holders 120 123 -2.4%
Opened positions 20 23 -13.0%
Closed positions 23 10 +130.0%
Increased positions 49 39 +25.6%
Reduced positions 29 41 -29.3%
13F shares Current Prev Q Change
Total value 4.13B 3.75B +10.4%
Total shares 188.27M 184.89M +1.8%
Total puts 50.1K 43.4K +15.4%
Total calls 83.4K 87.9K -5.1%
Total put/call ratio 0.6 0.5 +21.7%
Largest owners Shares Value Change
Mallard Holdco 74.15M $1.73B 0.0%
TSG Consumer Partners 74.15M $1.56B 0.0%
Select Equity 6.97M $146.83M +6.2%
Wasatch Advisors 4.76M $100.16M +7.5%
Vanguard 3.54M $74.55M +2.3%
Driehaus Capital Management 2.42M $50.89M +11.1%
BLK Blackrock 2.28M $47.96M -0.5%
FHI Federated Hermes 2.24M $47.12M -1.8%
WHG Westwood 1.39M $29.28M -19.3%
Lord, Abbett & Co. 1.33M $27.97M +33.6%
Largest transactions Shares Bought/sold Change
American Century Companies 1.1M +1.1M NEW
Allspring Global Investments 557.82K +552.64K +10674.9%
BAC Bank Of America 927.16K +515.16K +125.0%
FIL 687.4K -480.5K -41.1%
Massachusetts Financial Services 1.32M -447.22K -25.3%
Select Equity 6.97M +404.87K +6.2%
Ubs Global Asset Management Americas 408.42K +376.62K +1184.3%
Lord, Abbett & Co. 1.33M +333.89K +33.6%
WHG Westwood 1.39M -333.44K -19.3%
Wasatch Advisors 4.76M +331.45K +7.5%

Financial report summary

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Risks
  • Risks related to our competitive position and winery brands
  • The success of our business depends heavily on the strength of our winery brands.
  • We face significant competition with an increasing number of products and market participants that could materially and adversely affect our business, results of operations and financial results.
  • Consolidation of the distributors of our wines, as well as the consolidation of retailers, may increase competition in an already crowded space and may have a material adverse effect on our business, results of operations and financial results.
  • A reduction in consumer demand for wine, which may result from a variety of factors, including demographic shifts, desirable substitutes and decreases in discretionary spending, could materially and adversely affect our business, results of operations and financial results.
  • The consumer reception of the launch and expansion of our product offerings is inherently uncertain. New producers may present new and unknown risks and challenges in production and marketing that we may fail to manage optimally and could have a materially adverse effect on our business, results of operations and financial results.
  • Due to the three-tier alcohol beverage distribution system in the United States, we are heavily reliant on our distributors and government agencies that resell alcoholic beverages in all states except California, where we self-distribute our wines to retail accounts. A significant reduction in distributor demand for our wines would materially and adversely affect our sales and profitability.
  • Our marketing strategy involves continued expansion of our DTC channel, which may present risks and challenges that we have not yet experienced or contemplated, or for which we are not adequately prepared. These risks and challenges, including changes to the judicial, legal or regulatory framework applicable to our DTC business, could negatively affect our sales in these channels and our profitability.
  • Our advertising and promotional investments may affect our financial results but not be effective.
  • A decrease in wine score ratings by important rating organizations could have a negative impact on our ability to create demand for and sell our wines. Sustained negative scores could reduce the prominence of our winery brands and carry negative association across our portfolio which could materially and adversely affect our sales and profitability.
  • Risks related to our production of wine and the occurrence of natural disasters
  • If we are unable to obtain adequate supplies of premium grapes and bulk wine from third-party grape growers and bulk wine suppliers, the quantity or quality of our annual production of wine could be adversely affected, causing a negative impact on our business, results of operations and financial condition.
  • Natural disasters, including fires, floods and earthquakes, some of which may be exacerbated by climate change, could destroy, damage or limit access to our wineries and vineyards, and the locations at which we store our inventory, which could materially and adversely affect our business, results of operations and financial results.
  • A failure to adequately prepare for adverse events that could cause disruption to elements of our business, including our grape harvesting, blending, inventory aging or distribution of our wines could materially and adversely affect our business, results of operations and financial results.
  • Inclement weather, drought, pests, plant diseases and other factors could reduce the amount or quality of the grapes available to produce our wines, which could materially and adversely affect our business, results of operations and financial results.
  • If we are unable to identify and obtain adequate supplies of quality agricultural, raw and processed materials, including corks, glass bottles, barrels, winemaking additives and agents, water and other supplies, or if there is an increase in the cost of the commodities or products, as a result of inflation or scarcity, our profitability, production and distribution capabilities could be negatively impacted, which would materially and adversely affect our business, results of operations and financial condition.
  • Risks related to COVID-19
  • The COVID-19 pandemic continues to affect our customers, suppliers and business operations, and the scope and duration of any future health epidemic or pandemic may materially and adversely impact our business, results of operations and financial results.
  • Risks related to our business
  • The impact of U.S. and worldwide economic trends and financial market conditions could materially and adversely affect our business, liquidity, financial condition and results of operations.
  • Increases in labor costs, labor shortages, and any difficulties in attracting, motivating, and retaining well-qualified employees could have an adverse effect on our ability to successfully manage our business, maintain our reputation within the industry and execute our strategic objectives, which could materially and adversely affect our operating efficiency and financial condition.
  • Our financial performance is subject to significant seasonality and variability.
  • If we are unable to secure and protect our intellectual property in domestic and foreign markets, including trademarks for our winery brands, vineyards and wines, the value of our winery brands and intellectual property could decline, which could have a material and adverse effect on our business, results of operations and financial results.
  • From time to time, we may become subject to litigation specifically directed at the alcoholic beverage industry, as well as litigation arising in the ordinary course of business.
  • Our failure to adequately manage the risks associated with acquisitions or divestitures, or the failure of an entity in which we have an equity or membership interest, could have a material adverse effect on our business, liquidity, financial condition or results of operations.
  • A failure of one or more of our key IT systems, networks, processes, associated sites or service providers could have a material adverse impact on business operations, and if the failure is prolonged, our financial condition.
  • Our failure to adequately maintain and protect or otherwise process personal information of our customers or our employees in compliance with evolving legal requirements could have a material adverse effect on our business.
  • Risks related to regulation
  • As a producer of alcoholic beverages, we are regularly the subject of regulatory reviews, proceedings and audits by governmental entities, any of which could result in an adverse ruling or conclusion, and which could have a material adverse effect on our business, financial condition, results of operations and future prospects.
  • New and changing environmental requirements, and new market pressures related to climate change, could materially and adversely affect our business, results of operations and financial results.
  • Changes in foreign and domestic laws and government regulations to which we are currently subject, including changes to the method or approach of enforcement of these government rules and regulations, may increase our costs or limit our ability to sell our wines into certain markets, which could materially and adversely affect our business, results of operations and financial condition.
  • We are subject to health, safety and labor laws. Regulatory reviews, proceedings and audits by governmental entities could result in an adverse ruling or conclusion, which may have a material adverse effect on our business. Changes to the enforcement or approach of these rules and regulations, may increase our costs or limit our ability to operate, which could materially and adversely affect our business, results of operations and financial condition.
  • Risks related to our indebtedness
  • We have incurred substantial indebtedness and we may not generate sufficient cash flow from operations to meet our debt service requirements, continue our operations and pursue our growth strategy and we may be unable to raise capital when needed or on acceptable terms.
  • We utilize derivative financial instruments to manage our exposure to interest rate fluctuations associated
  • with our variable rate indebtedness. We may be exposed to interest rate risk based on our ability to hedge effectively, as well as risk related to nonperformance based on the creditworthiness of counterparties to these financial instruments.
  • We may be adversely affected by the phase-out of, or changes in the method of determining, the LIBOR, or the replacement of LIBOR with different reference rates.
  • Risks related to our common stock
  • We have incurred and will continue to incur increased costs by being a public company, including costs to maintain adequate internal control over our financial and management systems.
  • As a result of being a public company, we are obligated to develop and maintain proper and effective internal control over financial reporting and any failure to maintain the adequacy of these internal controls may negatively impact investor confidence in our Company and, as a result, the value of our common stock.
  • Certain of our directors have relationships with TSG, which may cause conflicts of interest with respect to our business.
  • We are considered a "controlled company" under the New York Stock Exchange rules and, as a result, qualify for, and rely on, exemptions from certain corporate governance requirements; you will not have the same protections afforded to stockholders of companies that are subject to such requirements.
  • Provisions of our corporate governance documents could make an acquisition of our Company more difficult and may prevent attempts by our stockholders to replace or remove our current management, even if beneficial to our stockholders.
  • Your percentage ownership in us may be diluted by future issuances of capital stock, which could reduce your influence over matters on which stockholders vote.
  • We are subject to additional laws, regulations and stock exchange listing standards, which impose additional costs on us and may strain our resources and divert our management’s attention.
  • A significant portion of our total outstanding shares may be sold into the market at any time. This could cause the market price of our common stock to drop significantly, even if our business is performing well.
  • We have no current plans to pay regular cash dividends on our common stock as such, you may not receive any return on investment unless you sell your common stock for a price greater than that which you paid for it.
  • If securities or industry analysts do not continue to publish research or reports about our business, if they adversely change their recommendations regarding our shares or if our results of operations do not meet their expectations, our share price and trading volume could decline.
  • Our certificate of incorporation designates courts in the State of Delaware as the sole and exclusive forum for certain types of actions and proceedings that may be initiated by our stockholders, and also provide that the federal district courts will be the exclusive forum for resolving any complaint asserting a cause of action arising under the Securities Act, each of which could limit our stockholders’ ability to choose the judicial forum for disputes with us or our directors, officers, stockholders or employees.
  • Our operating results and share price may be volatile, and the market price of our common stock may drop below the price you pay.
  • We may require additional debt and equity capital to pursue our business objectives and respond to business opportunities, challenges or unforeseen circumstances. If such capital is not available to us, our business, financial condition and results of operations may be materially and adversely affected.
  • Changes in tax law may adversely affect our business and financial results.
  • International operations, worldwide and domestic economic trends and financial market conditions, geopolitical uncertainty or changes to international trade agreements and tariffs, import and excise duties, other taxes or other governmental rules and regulations could have a material adverse effect on our business, liquidity, financial condition and results of operations.
  • Changes to U.S. and foreign trade policies and tariffs may adversely impact our operating results.
Management Discussion
  • Item 7. Management’s discussion and analysis of financial condition and results of operations
  • The Duckhorn Portfolio is the premier scaled producer of luxury wines in North America. We sell our wines in all 50 states and in over 50 countries at prices ranging from $20 to $200 per bottle under a world-class luxury portfolio of winery brands, including Duckhorn Vineyards, Decoy, Goldeneye, Paraduxx, Migration, Canvasback, Calera, Kosta Browne, Greenwing and Postmark.
  • We sell our wines to distributors outside California and directly to trade accounts in California, which together comprise our wholesale channel. We also sell directly to consumers through our DTC channel. Our powerful omni-channel sales model drives strong margins by leveraging long-standing relationships. We believe our iconic winery brands together with our scaled, quality-focused production, omni-channel distribution and dedicated employees, set the standard for North American luxury wine.

Content analysis

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Legalese
Litigous
Readability
H.S. sophomore Good