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Andrew Peller Ltd T.ADW.A

Alternate Symbol(s):  ADWPF | T.ADW.B

Andrew Peller Limited is a producer and marketer of wines and craft beverage alcohol products in Canada. With wineries in British Columbia, Ontario and Nova Scotia, the Company markets wines produced from grapes grown in Ontario’s Niagara Peninsula, British Columbia’s Okanagan and Similkameen Valleys, and from vineyards around the world. Its premium and ultra-premium Vintners’ Quality Alliance brands include Peller Estates, Trius, Thirty Bench, Wayne Gretzky, Sandhill, Red Rooster, Black Hills Estate Winery, Tinhorn Creek Vineyards, Gray Monk Estate Winery, Raven Conspiracy and Conviction. It imports wines from various wine regions around the world to blend with domestic wine to craft these products. It also produces craft beverage alcohol products, including No Boats on Sunday ciders and seltzers, and various spirits and cream whisky products under the Wayne Gretzky No. 99 brand. It produces and markets premium personal winemaking products through its subsidiary, Global Vintners Inc.


TSX:ADW.A - Post by User

Comment by TheCount11on May 25, 2023 6:50am
136 Views
Post# 35463158

RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:LEADERSHIP LEAVING PELLER

RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:LEADERSHIP LEAVING PELLERHaha I have absolutely no clue what the interest rate is for this year...  Interest was $5,273 for last quarter.  This includes lease "interest".  

Note 11 Long-term debt in last years AR is vague and complicated

The Company has entered into interest rate swap agreements to fix the interest rate on a portion of the balance outstanding on the investment facility. Until September 29, 2022, the interest rate is fixed at 2.25%, plus the applicable margin. As at March 31, 2022, the applicable margin was 4.00% (2021 – 1.90%). Interest expense on long term debt during the year was $7,750 (2021 – $5,925).

The Company and its subsidiaries have provided their assets as security for these loans.

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In the end management needs to manage cashflow and executive compensation. 
They have great assets which they pledged as collateral however funding those assets with complicated short term debt seems a tad wreckless.

I think of the stock price like a call option now with many value drivers / destroyers:
Short Term Interest rates 
Additional Wine Sector Support
Executive Stock & Option Compensation to Profit (this is a silent killer without stock buybacks.  Do equity incentives encourage senior management to take outsized risks like using short term funding for long term debt?)
Pricing Power
Cost reduction (What is company bargaining power with their suppliers?  Will company reduce ad spend? If hospitality management bonuses are based cost reduction I think they will reduce servers at Wineries / Restaurants or not give raises and lose Chefs, Wine stewards, etc.  The savings show up immediately but customer perception of brand does not show up anywhere on current financial statements)


 
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