Description
Wineries and Vineyards
Market Monitor
Spring 2016
MOSS ADAMS CAPITAL LLC
. Contents
Page
Industry Update
3
Public Stock Performance & Valuations
5
M&A Activity & Valuations
8
Moss Adams Overview
12
Contact Information
17
Wineries & Vineyards
2
MOSS ADAMS CAPITAL LLC
. Lower Yield Harvest Than Previous Years, Quality Remains High
Premium Wines Benefit From the Drought; Value-Priced Wine
Producers Hurt by Lower Yields and Competition.
Annual California Wine Harvest
4,500
•
•
3,500
2015 saw a number of noteworthy transactions, including Constellation Brands’
acquisition of Meiomi, and the acquisition of Diageo’s wine portfolio by Treasury
Wine Estates.
3,894
3,704
3,347
2,500
2,000
1,500
1,000
500
2011
The December 2015 acquisition of the Ranch Winery facility by Gallo Winery means
that ultimately the short to mid-term supply of custom crush services will be
constrained, heightening the need for additional custom winemaking
capacity/facilities in an already tightly constrained market.
Direct-to-Consumer wine sales are growing strongly, increasing 66% since 2010.
During 2015 4.3M cases ($2B in sales) were purchased online. Online sales still
represent a small fraction (approx. 6%) of the $32B in total wine sales, however the
4,246
3,000
Drought conditions in California have helped numerous growers produce fewer, but
higher quality grapes, particularly high-end producers in Napa and Sonoma.
DTC channel is expected to continue to grow as state and local laws relax and wine
purchases shift to younger, more tech savvy oenophiles.
•
Thousands of Tons
4,000
2012
2013
2014
2015
Annual Washington Wine Harvest
250
210
Thousands of Tons
•
The 2015 California wine grape harvest was one of the earliest on record, with overall
grape yields for both red and white grapes each 5% lower than in 2014. However
yields varied widely between regions.
The Central Valley yields spanning the Merced, Fresno, Tulare districts came in 9-12% over 2014, while the coastal regions came in sharply below the prior year with both Napa and Sonoma districts yields 29% below 2014, Monterey 38% below and San Luis Obispo/Santa Barbara 30% below 2014 yields. This has spurred grape buyers looking to secure their grape supply sources for 2016 and beyond into an early and active grape contracting mode. • 4,018 222 2014 2015 188 200 150 227 142 100 50 2011 2012 2013 Sources: Moss Adams Capital., Silicon Valley Bank, USDA, ShipCompliant, Beverage Information Grp, Wines & Vines Magazine, Wineries & Vineyards 3 MOSS ADAMS CAPITAL LLC . Demographic Trends - The Year of the Millennials Millennials Surpass Baby Boomers as the Largest WineDrinking Demographic • 2015 witnessed the youngest of the Millennials (21-38 years old) reach legal drinking age. Millennials have now eclipsed Baby Boomers (51-69 years old) as the largest segment of the U.S. winedrinking population, at 36%, compared to 34% for Baby Boomers. • • Millennials consumed 159.6M cases or 42% of all wine consumed in the U.S. Moreover, younger drinkers appear to be thirstier than their older counterparts, drinking 3.1 glasses of wine per sitting versus 2.4 glasses for Generation X drinkers, and 1.9 glasses for Baby Boomers. 9% 42% 30% Millenials (21-38) Generation X (39-50) Baby Boomers (51-69) Matures (70+) 20% Across all age groups, women drank more wine than men, accounting for 57% of all wine consumption in the U.S.
in 2015. Women are more likely than men to buy a wine they have never tried before based on the label or on a recommendation. • Consumption By Age Demographic Compared to other age groups, Millennials are more agnostic when deciding between wine, beer or spirits. As drink preference and brand loyalty wane, the need for companies to have a diverse portfolio of assets will continue to drive strong demand for should help continue to drive industry consolidation.. Consumption By Gender 57% 43% Sources: Moss Adams Capital, Silicon Valley Bank, Nielson, The Wine Market Council,. Wineries & Vineyards 4 MOSS ADAMS CAPITAL LLC . Mid and Large Cap Wine Index Continues to Outperform S&P500 • The Mid/Large Cap Wine Producer Index performance has outperformed the S&P 500 Index since Q3 2015 as the broader market experienced increased volatility and market corrections. • The Small Cap Wine Producer Index continues to underperform the S&P 500 Index, with declines primarily due to persistent global economic uncertainty. Public Equity Performance : Wineries vs. S&P 500 50.0% Mid/Large Cap Wine Producers 38.0% 40.0% 30.0% S&P 500 31.3% 20.0% 10.0% 0.0% Small Cap Wine Producers -11.8% -10.0% -20.0% -30.0% Note: The MAC Wineries and Vineyards index is composed of the public companies included on page 7. Source: CapitalIQ. Wineries & Vineyards 5 MOSS ADAMS CAPITAL LLC . Outlook for Larger Wineries More Bullish than for Smaller Producers • Despite recent volatility in the equity markets, EV/EBITDA valuation multiples for publicly traded Middle and Large Cap Wine Producers are approaching highs last seen in mid 2014 (and also in late 2013). • • Small Cap Wine Producers, who are mostly located outside of the U.S., have seen EV/EBITDA valuations increase by 18.9% since the 12-month low in April 2015. The outlook for Winery and Vineyard companies is positive, with sales and EBITDA projected to increase 12.4% and 15.4%, respectively, over the next 12 months. • By comparison, those companies comprising the S&P 500 are projected to experience sales and EBITDA growth of 1.7% and 6.5%, respectively. Public Market Valuations Next 12 Months: Estimated Growth 19.0x 17.0x 16.0% 14.0% 15.0x 13.0x 11.0x Wineries and Vineyards 15.4% 18.0% Mid/Large Cap Wine Producers 17.4x Wineries and Vineyards 12.4% 12.0% Small Cap Wine Producers 12.7x 10.0% S&P 500 6.5% 8.0% S&P 500 10.6x 6.0% 9.0x 4.0% 7.0x 2.0% 5.0x S&P 500 1.7% 0.0% Sales Growth EBITDA Growth Note: The MAC Wineries and Vineyards index is composed of the public companies included on page 7, that follows. Source: CapitalIQ. Wineries & Vineyards 6 MOSS ADAMS CAPITAL LLC . Wineries and Vineyards Companies: Valuations $ in millions, except per share data 3/3/16 Company Name Country Ticker Share Price TTM Data 52 week High/Low Market Enterprise Cap Value Sales NTM Est. Growth EBITDA EBITDA Margin Sales EBITDA EV Multiple TTM Sales TTM EBITDA NTM Sales NTM EBITDA Small Cap Wine Producers AdVini S.A. France $115 $228 $265 $16 5.9% NA NA 0.9 x 14.5 x NA NA Australian Vintage Limited. Australia ASX:AVG ENXTPA:ADVI $33.39 $38.11 / $31.42 0.38 0.38 / 0.23 87 141 174 15 8.6% NA NA 0.8 x 9.4 x NA NA Crimson Wine Group, Ltd. U.S. OTCPK:CWGL 8.40 9.80 / 8.66 205 192 60 15 25.5% NA NA 3.2 x 12.5 x NA NA Schlumberger AG Austria WBAG:SLBS 24.25 26.86 / 22.40 51 91 226 6 2.8% NA NA 0.4 x 14.3 x NA NA Truett-Hurst, Inc. U.S. THST 1.37 6.00 / 2.05 6 23 31 0 1.0% NA NA 0.7 x NM NA NA Willamette Valley Vineyards Inc. U.S. NasdaqCM:WVVI 6.80 7.23 / 5.15 34 40 17 4 23.6% NA NA 2.3 x 9.8 x NA NA 9 11 11.2% 7.3% NA NA NA NA 1.4 x 0.8 x 12.1 x 12.5 x NA NA NA NA Average $ Median $ 119 $ 116 $ 129 $ 117 $ Mid/Large Cap Wine Producers Andrew Peller Limited Canada TSX:ADW.A $18.66 $14.91 / $11.08 $267 $282 $237 $30 12.7% NA NA 1.2 x 9.4 x NA NA Constellation Brands Inc. U.S. NYSE:STZ 144.45 122.13 / 80.70 28,780 33,902 6,361 2,014 31.7% 10.2% 15.7% NM 16.8 x 4.8 x 14.6 x Davide Campari - Milano SpA Italy CPR 8.37 8.28 / 5.47 4,799 5,906 1,818 403 22.1% NA NA 3.2 x 14.7 x NA NA Groupe Laurent-Perrier France ENXTPA:LPE 84.18 96.26 / 66.60 496 843 267 53 19.8% NA NA 3.2 x 15.9 x NA NA Rémy Cointreau SA France ENXTPA:RCO 68.97 83.94 / 56.43 3,349 3,871 1,109 202 18.2% NA NA 3.5 x 19.2 x NA NA Treasury Wine Estates Limited Australia ASX:TWE 6.91 4.56 / 3.16 5,097 3,558 1,576 190 12.0% NA NA 2.3 x 18.7 x NA NA Vina Concha y Toro S.A. Chile 1.67 2.05 / 1.58 1,251 1,643 891 136 15.2% 14.7% 15.1% 1.8 x 12.1 x 1.6 x 10.5 x SNSE:conchatoro Average $ Median $ All Companies Combined 7,144 $ 1,751 $ 3,558 $ 1,109 $ 432 190 18.8% 18.2% 12.4% 12.4% 15.4% 15.4% 2.5 x 2.7 x 15.3 x 15.9 x 3.2 x 3.2 x 12.5 x 12.5 x Average $ Median $ 3,901 $ 1,003 $ 282 $ 265 $ 237 30 15.3% 15.2% 12.4% 12.4% 15.4% 15.4% 2.0 x 2.1 x 14.0 x 14.4 x 3.2 x 3.2 x 12.5 x 12.5 x Note: Not meaningful (NM) if EV/Sales is greater than 5x, or EV/EBITDA is greater than 20x. NA if denominator is 0, for percentages and multiples, or if estimates are not available. NTM figures are based on the median estimate of Wall St.
analysts. Source: Moss Adams Capital research, Capital IQ and public company filings. Wineries & Vineyards 7 MOSS ADAMS CAPITAL LLC . Middle Market M&A Volume Declines in Q4, after Historic Q1-Q3 2015 • Overall, 2015 was a record year for M&A with transaction values totaling $4.7T, according to Thomson Reuters • EBITDA multiples in middle market transactions in Q4 2015 finished the quarter at 8.3x EBITDA, equal to the 5 year average for this metric, and up from Q2 and Q3 2015 • However, in Q4 2015, U.S. middle market M&A deal volumes declined 15% from Q3 2015, and declined 26% from Q4 2015 • U.S. middle market M&A activity in Q4 2015, measured by deal values, increased slightly compared to prior Q1–Q3 at $94B • Q4 2015 EBITDA margins of reportable transactions decreased slightly from Q3 but remained consistent with the 5 year average --- Reported EBITDA margins in Q4 2015 were 9%, while the 5 year average is 8% U.S. Middle Market M&A 1 U.S.
Middle Market M&A Valuations 2 1) Middle market M&A includes transactions with undisclosed values, and disclosed values where EV < $500 million 2) Middle market M&A includes transactions with disclosed EBITDA, where EV < $500 million and EV/EBITDA between 3.0x and 15.0x. Note: transactions with disclosed EBITDA represent <5% of all transactions. Source: CapitalIQ Wineries & Vineyards 8 MOSS ADAMS CAPITAL LLC .
Recent U.S. Wineries and Vineyards Transactions $ millions Date 02/18/16 02/08/16 02/02/16 01/27/16 01/22/16 01/20/16 12/16/15 10/20/15 10/19/15 09/21/15 09/21/15 09/01/15 09/01/15 07/20/15 07/20/15 07/20/15 07/01/15 06/08/15 03/24/15 01/05/15 09/18/14 09/09/14 06/05/14 05/27/14 04/30/14 04/24/14 04/24/14 03/31/14 03/20/14 Acquirer/Investor Private Investor Foley Family Wines, Inc. Peju Province Corporation Double Canyon Vineyards, LLC Landmark Vineyards Realm Cellars E. & J. Gallo Winery, Inc. Chanel, Inc. Maxima Group Inc.
(OTCPK:MXMG) Treasury Wine Estates Limited (ASX:TWE) Private Investor Vintage Wine Estates, Inc. E. & J. Gallo Winery, Inc. E.
& J. Gallo Winery, Inc. Medican Enterprises, Inc. (OTCPK:MDCN) Qinghai Huzhu Barley Wine Co., Ltd. Constellation Brands, Inc.
(NYSE:STZ) The Wine Group LLC E. & J. Gallo Winery, Inc. J.W.
Childs Associates, L.P. S.A.S. Meo Camuzet Frere Et Soeurs Wyandotte Winery LLC Kieu Hoang Winery, LLC Vintage Wine Estates, Inc. Union Wine Company Gallo Vineyards, Inc. Pernod Ricard USA, LLC Foley Family Wines, Inc. Winery Exchange Inc. Target Dancing Hares Vineyard, LLC Chalone Estate Vineyard Acacia Winery, Inc. Seven Hills Winery LLC Hop Kiln Vineyards located in Sonoma's Russian River Valley Estate Vineyards Hartwell Rutherford Wine Studios, LLC (The Ranch Winery) St. Supéry Estate Vineyards & Winery City Vines, LLC Diageo Chateau & Estate Wines Jamieson Ranch Vineyards Swanson Vineyards and Winery LLC Talbott Vineyards Asti Winery Encanto Vineyards, LLC Napa Chiles Valley Winery (nka:Maxville Lake Winery, Inc.) Copper Cane Wines & Provisions, Meiomi Wine Brand Benziger Family Winery LLC J Vineyards & Winery LLC KB Wines, LLC Bishop Creek Vineyard Rockside Vineyards LLC Michael Mondavi Family Estate, Carneros Winery Canopy Management Wine Company Amity Vineyards, Inc. Ledgewood Creek Winery LLC Kenwood Vineyards, Inc. The Four Graces Chronic Cellars Winery Inc. Target State CA CA CA WA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA OH CA CA OR CA CA OR CA Deal Size $5.8 $1.2 $600.0 $315.0 Comments 6K cases 100K cases 100K cases 21K cases 5K cases 3K cases 340K cases 120K cases 18K cases 1.6MM cases 80K cases 25K cases 100K cases 250K cases 1K cases 500 cases 550K cases 170K cases 150K cases 14K cases 500 cases 13 acres 300K cases 10K cases 230 acres 600K cases 22K cases 13K cases Source: Moss Adams Capital research, CapitalIQ, news releases. Wineries & Vineyards 9 MOSS ADAMS CAPITAL LLC .
Recent U.S. Wineries and Vineyards Transactions $ millions Date 01/03/14 12/20/13 12/20/13 12/18/13 11/30/13 11/15/13 11/06/13 04/30/13 10/10/13 10/03/13 08/19/13 08/19/13 07/26/13 08/07/13 07/25/13 05/23/13 05/16/13 05/15/13 05/15/13 05/14/13 05/10/13 04/30/13 04/30/13 03/31/13 03/15/13 03/12/13 01/28/13 01/22/13 01/01/13 Acquirer/Investor Private Investor Private Investor Jackson Family Wines, Inc. Premium Beverage Group, Inc. (OTCPK:PBEV) Koko Nor Corporation Private Investor Bingham Family Cellars, LLC Glenora Wine Cellars, Inc. Terroir Selections Vintage Wine Estates, Inc. Maison Louis Jadot S.A. Jackson Family Wines, Inc. FCC North American Investment LLC Duckhorn Wine Company, Inc. Artémis Group, Owners of Château Latour Guarachi Family Wines Golden Equity Investments Panache Distillery, LLC Bacchus Capital Management Precept Wine Jackson Family Wines, Inc. Sinegal-Inglewood LLC NW Wine Company, LLC Francis Ford Coppola Presents, LLC Jackson Family Wines, Inc. Private Investor Laird Family Estate LLC Private Investor Winery Exchange Inc. Source: CapitalIQ, news releases, Moss Adams Capital research. Wineries & Vineyards Target Alderbrook Winery, LLC Alma Rosa Winery & Vineyards, LLC Terra Valentine, Yverdon Vineyard and Winery Premium Wine Group and Lieb Cellars Sundown Ranch LLC., US Winery Assets Elkin Winery Pheasant Ridge Winery and 61 Acres of Vineyard Chateau LaFayette Reneau Qupe Wine Cellars Viansa Winery and Marketplace Resonance Vineyard Solena Estate Cleavage Creek Winery, Brand and Vineyards in Napa County Winery Facility Hopland Araujo Estate Wines Sun Chase Vineyard Goosecross Cellars Empire Wineries, LLC Panther Creek Cellars LLC Yamhela Vineyard in Yamhill Additional Willamette Valley Property Inglewood Estate Two Willamette Valley Vineyards Geyser Peak Winery Facility And 32 Acres Of Vineyards Oregon Vineyard Properties With Nearly 400 Acres The Evening Land & Vineyards, LLC, Central Coast Properties Winery Silverado Hill Lost Creek Vineyards & Winery Nevada County Wine Guild, Portfolio of Private Wine Brands 10 Target State CA CA CA NY Deal Size $0.5 $15.0 NC TX NY CA CA OR OR CA CA CA CA CA FL OR OR OR CA OR CA OR CA CA VA CA $0.7 $5.0 $19.3 $4.2 $20.0 $3.9 $3.4 $2.3 Comments 200K cases 10K cases 8K cases 80K cases 3K cases 15K cases 40K cases 50K cases 32 acres 12K cases 7K cases 15 acres 12K cases 248 acres 11 acres 374 acres 41 acres 397 acres 32 acres 400 acres 40 acres 25 acres - MOSS ADAMS CAPITAL LLC . Overview of Selected Transactions acquires (February 2016) • In February 2016, Foley Family Wines announced the acquisition of Chalone Vineyards from Diageo Plc. Terms of the deal were undisclosed. • Chalone Vineyards is located in Monterey County, CA and is well known for its Chardonnay and Pinot Noir varietals. The transaction included the winery, the Chalone Estate Vineyard as well as Gavilan brands and 1,000 acres of property, including 240 acres of vines. • The sale of Chalone Vineyards is the most recent move by Diageo Plc to retreat from the wine business. Diageo purchased Chalone Vineyards in 2004 for $260 million.
In October 2015, Diageo sold most of it U.S. and U.K. wine assets to Treasury Wine Estates for $600 million. • “Chalone Estate Vineyard, with its great wines and incredible history, gives our consumers and guests world class wine options along the entire coast.” – Bill Foley, Proprietor of Foley Family Wines • The Chalone Vineyard has a storied history; in 1976 its Chardonnay ranked third in a blind taste test of six California and four French white wines.
The taste test which came to be known as the 1976 Judgment of Paris and changed the world’s view of California wines forever. acquires (December 2015) • In December 2015, E&J Gallo Winery agreed to acquire The Ranch Winery, a custom-crush winery located in St. Helena, CA. Terms of the deal were not disclosed. • The acquisition of the Ranch facility by Gallo Winery means that eventually existing custom winemaking clients will ultimately need to find alternative custom winemaking locations.
This has heightened the demand and need for additional custom winemaking capacity/facilities in an already tightly constrained market. • The Ranch Winery is a full service winery with a grape-crush capacity of 30,000 tons, 8M gallons of storage space and 4.6M case bottling capacity. The Ranch is one of the largest facilities of its kind in Napa Valley. • The acquisition of The Ranch Winery effectively triples E&J Gallo’s capacity in Napa Valley from 15,000 tons to 45,000 tons. This deal brings the total number of California and Washington wineries in Gallo’s portfolio to 15. • “This is really a once-in-a-lifetime opportunity.
To have a property in the Napa Valley with 30,000 tons of crushing capacity come on the market is extremely rare.” - Roger Nabedian, senior vice president and general manager of E.&J. Gallo’s premium wine division Source: Company press releases, CapitalIQ. Wineries & Vineyards 11 MOSS ADAMS CAPITAL LLC . Moss Adams at a Glance: Leadership through Experience and Results Moss Adams Capital LLC Moss Adams LLP • • 100+ years old – Founded in 1913 • Largest accounting firm headquartered in the western U.S. • 2,400 employees in 28 locations • Fully integrated accounting, tax, and business advisory firm • Middle-market specialists • The Moss Adams Advantage: Discrete, highly leverageable transaction resources and services Full-service investment banking and strategic advisor services • Dedicated industry specialists • Focus on privately owned and family-held companies • Mergers and acquisitions • Private debt & equity placements • Mezzanine capital • Due Diligence preparation & advisory International Presence • Wineries & Vineyards Major market affiliates throughout the U.S. and more than 100 countries around world 12 MOSS ADAMS CAPITAL LLC . Expert Teams INDUSTRY KNOWLEDGE MATCHED WITH AN EXPERIENCED TEAM • Senior Level Attention • Commitment to our Clients • Professional Excellence • Objective & Independent Advice • Creating Value for Owners • Global Presence & Capabilities Premier accounting and financial services advice for middle market winery and vineyard companies. Wineries & Vineyards 13 MOSS ADAMS CAPITAL LLC . Moss Adams Capital Overview Full Service Mid Market Investment Bank Corporate Finance Comprehensive Industry Coverage  Capital Placement – Equity and Debt, Aerospace, Defense & Government Services Food, Beverage & Agriculture Healthcare Services & Products Infrastructure & Construction Paper, Plastics, & Packaging Real Estate, Lodging & Leisure  Exclusive sales and divestitures, Business & Marketing Services Industrials / Niche Manufacturing  Strategic alternatives assessment, Automotive & Dealer Services Consumer, Retail & Apparel  Merger and acquisition advisory, Technology, Communications, & Media Transportation & Logistics  Strategic planning,  Management buy-outs,  Recapitalizations,  Fairness opinions,  Restructuring and special situations advisory. Highlights and Accomplishments  Completed over 250 transactions.  Access to key decision-makers among institutional investor universe.  Coverage of relevant strategic partners.  Average of 20 years of investment banking experience among senior leaders. Wineries & Vineyards 14 MOSS ADAMS CAPITAL LLC . Global Reach A founding member of Praxity, AISBL, a global alliance of independent accounting firms, Moss Adams gives you access to trusted expertise in over 100 countries and territories around the world. Europe Austria, Azerbaijan, Belgium, Bosnia-Herzgovina, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Jersey, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Russia, Serbia, Slovakia, Slovenia, Spain, Sweden, Switzerland, Turkey, United Kingdom, Ukraine North America Canada, United States Asia Bangladesh, China, Indonesia, Japan, South Korea, Malaysia, Singapore, Taiwan, Thailand, Vietnam Middle East and Indian Subcontinent Latin America and Caribbean Argentina, Bermuda, Brazil, Cayman Islands, Chile, Colombia, Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, Jamaica, Mexico, Nicaragua, Panama, Peru, Puerto Rico, Uruguay, Venezuela Wineries & Vineyards Africa Angola, Benin, Botswana, Cameroon, Cape Verde, Djibouti, Egypt, Ghana, Ivory Coast, Kenya, Lesotho, Madagascar, Mauritius, Morocco, Namibia, Nigeria, Senegal, South Africa, Tunisia 15 Bahrain, India, Israel, Jordan, Kuwait, Lebanon, Oman, Pakistan, Palestinian territories, Qatar, Saudi Arabia, Sri Lanka, Tajikistan, United Arab Emirates Australasia Australia, New Caledonia, New Zealand MOSS ADAMS CAPITAL LLC . Global M&A Reach Through Local Relationships Local, National and Global Reach Our affiliation with CFxB consists of 150+ Corporate Finance Professionals across the U.S. and in over 25 countries. more than 25 countries Mazars Europe 140 offices Mazars M&A 20 offices MNP Corporate Finance 10 offices MNP LLP 70 offices Mazars Asia 25 offices Moss Adams Capital 3 offices Moss Adams LLP 28 offices Weiser Mazars 6 offices William Buck CAA 6 offices Mazars Middle East 15 offices BKD Corporate Finance 4 offices BKD LLP 33 offices Mazars South America 20 offices Wineries & Vineyards Mazars Africa 40 offices 16 MOSS ADAMS CAPITAL LLC . Contact Us Contributing Authors: Richard Anderson Managing Director (949) 221-4006 rich.anderson@mossadams.com Wiley Kitchell Managing Director (206) 302-6780 wiley.kitchell@mossadams.com Bradley Erhart William Vyenielo – Moss Adams LLP Associate (949) 517-9452 bradley.erhart@mossadams.com Senior Manager – Wineries & Vineyards (707) 508-3821 william.vyenielo@mossadams.com Moss Adams Capital LLC 2040 Main Street Suite 900 Irvine, CA 92614 Harman Wales 999 Third Avenue Suite 2800 Seattle, WA 98104 Andrew Suen Robert Miranda Managing Director (206) 302-6770 jet.wales@mossadams.com Vice President (949) 221-4021 robert.miranda@mossadams.com Vice president (949) 517-9428 andrew.suen@mossadams.com Brandon Clewett Scott Porter James Parr Director (949) 512-9470 brandon.clewett@mossadams.com Vice President (206) 306-6326 scott.porter@mossadams.com Analyst (949) 221- 4099 james.parr@mossadams.com Tyler Dale James Rothenberger Daniel Seubert Vice President (949) 221-4030 tyler.dale@mossadams.com Wineries & Vineyards Vice President (206) 302-6777 james.rothenberger@mossadams.com 17 Analyst (206) 302-6775 daniel.seubert@mossadams.com MOSS ADAMS CAPITAL LLC .
The Central Valley yields spanning the Merced, Fresno, Tulare districts came in 9-12% over 2014, while the coastal regions came in sharply below the prior year with both Napa and Sonoma districts yields 29% below 2014, Monterey 38% below and San Luis Obispo/Santa Barbara 30% below 2014 yields. This has spurred grape buyers looking to secure their grape supply sources for 2016 and beyond into an early and active grape contracting mode. • 4,018 222 2014 2015 188 200 150 227 142 100 50 2011 2012 2013 Sources: Moss Adams Capital., Silicon Valley Bank, USDA, ShipCompliant, Beverage Information Grp, Wines & Vines Magazine, Wineries & Vineyards 3 MOSS ADAMS CAPITAL LLC . Demographic Trends - The Year of the Millennials Millennials Surpass Baby Boomers as the Largest WineDrinking Demographic • 2015 witnessed the youngest of the Millennials (21-38 years old) reach legal drinking age. Millennials have now eclipsed Baby Boomers (51-69 years old) as the largest segment of the U.S. winedrinking population, at 36%, compared to 34% for Baby Boomers. • • Millennials consumed 159.6M cases or 42% of all wine consumed in the U.S. Moreover, younger drinkers appear to be thirstier than their older counterparts, drinking 3.1 glasses of wine per sitting versus 2.4 glasses for Generation X drinkers, and 1.9 glasses for Baby Boomers. 9% 42% 30% Millenials (21-38) Generation X (39-50) Baby Boomers (51-69) Matures (70+) 20% Across all age groups, women drank more wine than men, accounting for 57% of all wine consumption in the U.S.
in 2015. Women are more likely than men to buy a wine they have never tried before based on the label or on a recommendation. • Consumption By Age Demographic Compared to other age groups, Millennials are more agnostic when deciding between wine, beer or spirits. As drink preference and brand loyalty wane, the need for companies to have a diverse portfolio of assets will continue to drive strong demand for should help continue to drive industry consolidation.. Consumption By Gender 57% 43% Sources: Moss Adams Capital, Silicon Valley Bank, Nielson, The Wine Market Council,. Wineries & Vineyards 4 MOSS ADAMS CAPITAL LLC . Mid and Large Cap Wine Index Continues to Outperform S&P500 • The Mid/Large Cap Wine Producer Index performance has outperformed the S&P 500 Index since Q3 2015 as the broader market experienced increased volatility and market corrections. • The Small Cap Wine Producer Index continues to underperform the S&P 500 Index, with declines primarily due to persistent global economic uncertainty. Public Equity Performance : Wineries vs. S&P 500 50.0% Mid/Large Cap Wine Producers 38.0% 40.0% 30.0% S&P 500 31.3% 20.0% 10.0% 0.0% Small Cap Wine Producers -11.8% -10.0% -20.0% -30.0% Note: The MAC Wineries and Vineyards index is composed of the public companies included on page 7. Source: CapitalIQ. Wineries & Vineyards 5 MOSS ADAMS CAPITAL LLC . Outlook for Larger Wineries More Bullish than for Smaller Producers • Despite recent volatility in the equity markets, EV/EBITDA valuation multiples for publicly traded Middle and Large Cap Wine Producers are approaching highs last seen in mid 2014 (and also in late 2013). • • Small Cap Wine Producers, who are mostly located outside of the U.S., have seen EV/EBITDA valuations increase by 18.9% since the 12-month low in April 2015. The outlook for Winery and Vineyard companies is positive, with sales and EBITDA projected to increase 12.4% and 15.4%, respectively, over the next 12 months. • By comparison, those companies comprising the S&P 500 are projected to experience sales and EBITDA growth of 1.7% and 6.5%, respectively. Public Market Valuations Next 12 Months: Estimated Growth 19.0x 17.0x 16.0% 14.0% 15.0x 13.0x 11.0x Wineries and Vineyards 15.4% 18.0% Mid/Large Cap Wine Producers 17.4x Wineries and Vineyards 12.4% 12.0% Small Cap Wine Producers 12.7x 10.0% S&P 500 6.5% 8.0% S&P 500 10.6x 6.0% 9.0x 4.0% 7.0x 2.0% 5.0x S&P 500 1.7% 0.0% Sales Growth EBITDA Growth Note: The MAC Wineries and Vineyards index is composed of the public companies included on page 7, that follows. Source: CapitalIQ. Wineries & Vineyards 6 MOSS ADAMS CAPITAL LLC . Wineries and Vineyards Companies: Valuations $ in millions, except per share data 3/3/16 Company Name Country Ticker Share Price TTM Data 52 week High/Low Market Enterprise Cap Value Sales NTM Est. Growth EBITDA EBITDA Margin Sales EBITDA EV Multiple TTM Sales TTM EBITDA NTM Sales NTM EBITDA Small Cap Wine Producers AdVini S.A. France $115 $228 $265 $16 5.9% NA NA 0.9 x 14.5 x NA NA Australian Vintage Limited. Australia ASX:AVG ENXTPA:ADVI $33.39 $38.11 / $31.42 0.38 0.38 / 0.23 87 141 174 15 8.6% NA NA 0.8 x 9.4 x NA NA Crimson Wine Group, Ltd. U.S. OTCPK:CWGL 8.40 9.80 / 8.66 205 192 60 15 25.5% NA NA 3.2 x 12.5 x NA NA Schlumberger AG Austria WBAG:SLBS 24.25 26.86 / 22.40 51 91 226 6 2.8% NA NA 0.4 x 14.3 x NA NA Truett-Hurst, Inc. U.S. THST 1.37 6.00 / 2.05 6 23 31 0 1.0% NA NA 0.7 x NM NA NA Willamette Valley Vineyards Inc. U.S. NasdaqCM:WVVI 6.80 7.23 / 5.15 34 40 17 4 23.6% NA NA 2.3 x 9.8 x NA NA 9 11 11.2% 7.3% NA NA NA NA 1.4 x 0.8 x 12.1 x 12.5 x NA NA NA NA Average $ Median $ 119 $ 116 $ 129 $ 117 $ Mid/Large Cap Wine Producers Andrew Peller Limited Canada TSX:ADW.A $18.66 $14.91 / $11.08 $267 $282 $237 $30 12.7% NA NA 1.2 x 9.4 x NA NA Constellation Brands Inc. U.S. NYSE:STZ 144.45 122.13 / 80.70 28,780 33,902 6,361 2,014 31.7% 10.2% 15.7% NM 16.8 x 4.8 x 14.6 x Davide Campari - Milano SpA Italy CPR 8.37 8.28 / 5.47 4,799 5,906 1,818 403 22.1% NA NA 3.2 x 14.7 x NA NA Groupe Laurent-Perrier France ENXTPA:LPE 84.18 96.26 / 66.60 496 843 267 53 19.8% NA NA 3.2 x 15.9 x NA NA Rémy Cointreau SA France ENXTPA:RCO 68.97 83.94 / 56.43 3,349 3,871 1,109 202 18.2% NA NA 3.5 x 19.2 x NA NA Treasury Wine Estates Limited Australia ASX:TWE 6.91 4.56 / 3.16 5,097 3,558 1,576 190 12.0% NA NA 2.3 x 18.7 x NA NA Vina Concha y Toro S.A. Chile 1.67 2.05 / 1.58 1,251 1,643 891 136 15.2% 14.7% 15.1% 1.8 x 12.1 x 1.6 x 10.5 x SNSE:conchatoro Average $ Median $ All Companies Combined 7,144 $ 1,751 $ 3,558 $ 1,109 $ 432 190 18.8% 18.2% 12.4% 12.4% 15.4% 15.4% 2.5 x 2.7 x 15.3 x 15.9 x 3.2 x 3.2 x 12.5 x 12.5 x Average $ Median $ 3,901 $ 1,003 $ 282 $ 265 $ 237 30 15.3% 15.2% 12.4% 12.4% 15.4% 15.4% 2.0 x 2.1 x 14.0 x 14.4 x 3.2 x 3.2 x 12.5 x 12.5 x Note: Not meaningful (NM) if EV/Sales is greater than 5x, or EV/EBITDA is greater than 20x. NA if denominator is 0, for percentages and multiples, or if estimates are not available. NTM figures are based on the median estimate of Wall St.
analysts. Source: Moss Adams Capital research, Capital IQ and public company filings. Wineries & Vineyards 7 MOSS ADAMS CAPITAL LLC . Middle Market M&A Volume Declines in Q4, after Historic Q1-Q3 2015 • Overall, 2015 was a record year for M&A with transaction values totaling $4.7T, according to Thomson Reuters • EBITDA multiples in middle market transactions in Q4 2015 finished the quarter at 8.3x EBITDA, equal to the 5 year average for this metric, and up from Q2 and Q3 2015 • However, in Q4 2015, U.S. middle market M&A deal volumes declined 15% from Q3 2015, and declined 26% from Q4 2015 • U.S. middle market M&A activity in Q4 2015, measured by deal values, increased slightly compared to prior Q1–Q3 at $94B • Q4 2015 EBITDA margins of reportable transactions decreased slightly from Q3 but remained consistent with the 5 year average --- Reported EBITDA margins in Q4 2015 were 9%, while the 5 year average is 8% U.S. Middle Market M&A 1 U.S.
Middle Market M&A Valuations 2 1) Middle market M&A includes transactions with undisclosed values, and disclosed values where EV < $500 million 2) Middle market M&A includes transactions with disclosed EBITDA, where EV < $500 million and EV/EBITDA between 3.0x and 15.0x. Note: transactions with disclosed EBITDA represent <5% of all transactions. Source: CapitalIQ Wineries & Vineyards 8 MOSS ADAMS CAPITAL LLC .
Recent U.S. Wineries and Vineyards Transactions $ millions Date 02/18/16 02/08/16 02/02/16 01/27/16 01/22/16 01/20/16 12/16/15 10/20/15 10/19/15 09/21/15 09/21/15 09/01/15 09/01/15 07/20/15 07/20/15 07/20/15 07/01/15 06/08/15 03/24/15 01/05/15 09/18/14 09/09/14 06/05/14 05/27/14 04/30/14 04/24/14 04/24/14 03/31/14 03/20/14 Acquirer/Investor Private Investor Foley Family Wines, Inc. Peju Province Corporation Double Canyon Vineyards, LLC Landmark Vineyards Realm Cellars E. & J. Gallo Winery, Inc. Chanel, Inc. Maxima Group Inc.
(OTCPK:MXMG) Treasury Wine Estates Limited (ASX:TWE) Private Investor Vintage Wine Estates, Inc. E. & J. Gallo Winery, Inc. E.
& J. Gallo Winery, Inc. Medican Enterprises, Inc. (OTCPK:MDCN) Qinghai Huzhu Barley Wine Co., Ltd. Constellation Brands, Inc.
(NYSE:STZ) The Wine Group LLC E. & J. Gallo Winery, Inc. J.W.
Childs Associates, L.P. S.A.S. Meo Camuzet Frere Et Soeurs Wyandotte Winery LLC Kieu Hoang Winery, LLC Vintage Wine Estates, Inc. Union Wine Company Gallo Vineyards, Inc. Pernod Ricard USA, LLC Foley Family Wines, Inc. Winery Exchange Inc. Target Dancing Hares Vineyard, LLC Chalone Estate Vineyard Acacia Winery, Inc. Seven Hills Winery LLC Hop Kiln Vineyards located in Sonoma's Russian River Valley Estate Vineyards Hartwell Rutherford Wine Studios, LLC (The Ranch Winery) St. Supéry Estate Vineyards & Winery City Vines, LLC Diageo Chateau & Estate Wines Jamieson Ranch Vineyards Swanson Vineyards and Winery LLC Talbott Vineyards Asti Winery Encanto Vineyards, LLC Napa Chiles Valley Winery (nka:Maxville Lake Winery, Inc.) Copper Cane Wines & Provisions, Meiomi Wine Brand Benziger Family Winery LLC J Vineyards & Winery LLC KB Wines, LLC Bishop Creek Vineyard Rockside Vineyards LLC Michael Mondavi Family Estate, Carneros Winery Canopy Management Wine Company Amity Vineyards, Inc. Ledgewood Creek Winery LLC Kenwood Vineyards, Inc. The Four Graces Chronic Cellars Winery Inc. Target State CA CA CA WA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA OH CA CA OR CA CA OR CA Deal Size $5.8 $1.2 $600.0 $315.0 Comments 6K cases 100K cases 100K cases 21K cases 5K cases 3K cases 340K cases 120K cases 18K cases 1.6MM cases 80K cases 25K cases 100K cases 250K cases 1K cases 500 cases 550K cases 170K cases 150K cases 14K cases 500 cases 13 acres 300K cases 10K cases 230 acres 600K cases 22K cases 13K cases Source: Moss Adams Capital research, CapitalIQ, news releases. Wineries & Vineyards 9 MOSS ADAMS CAPITAL LLC .
Recent U.S. Wineries and Vineyards Transactions $ millions Date 01/03/14 12/20/13 12/20/13 12/18/13 11/30/13 11/15/13 11/06/13 04/30/13 10/10/13 10/03/13 08/19/13 08/19/13 07/26/13 08/07/13 07/25/13 05/23/13 05/16/13 05/15/13 05/15/13 05/14/13 05/10/13 04/30/13 04/30/13 03/31/13 03/15/13 03/12/13 01/28/13 01/22/13 01/01/13 Acquirer/Investor Private Investor Private Investor Jackson Family Wines, Inc. Premium Beverage Group, Inc. (OTCPK:PBEV) Koko Nor Corporation Private Investor Bingham Family Cellars, LLC Glenora Wine Cellars, Inc. Terroir Selections Vintage Wine Estates, Inc. Maison Louis Jadot S.A. Jackson Family Wines, Inc. FCC North American Investment LLC Duckhorn Wine Company, Inc. Artémis Group, Owners of Château Latour Guarachi Family Wines Golden Equity Investments Panache Distillery, LLC Bacchus Capital Management Precept Wine Jackson Family Wines, Inc. Sinegal-Inglewood LLC NW Wine Company, LLC Francis Ford Coppola Presents, LLC Jackson Family Wines, Inc. Private Investor Laird Family Estate LLC Private Investor Winery Exchange Inc. Source: CapitalIQ, news releases, Moss Adams Capital research. Wineries & Vineyards Target Alderbrook Winery, LLC Alma Rosa Winery & Vineyards, LLC Terra Valentine, Yverdon Vineyard and Winery Premium Wine Group and Lieb Cellars Sundown Ranch LLC., US Winery Assets Elkin Winery Pheasant Ridge Winery and 61 Acres of Vineyard Chateau LaFayette Reneau Qupe Wine Cellars Viansa Winery and Marketplace Resonance Vineyard Solena Estate Cleavage Creek Winery, Brand and Vineyards in Napa County Winery Facility Hopland Araujo Estate Wines Sun Chase Vineyard Goosecross Cellars Empire Wineries, LLC Panther Creek Cellars LLC Yamhela Vineyard in Yamhill Additional Willamette Valley Property Inglewood Estate Two Willamette Valley Vineyards Geyser Peak Winery Facility And 32 Acres Of Vineyards Oregon Vineyard Properties With Nearly 400 Acres The Evening Land & Vineyards, LLC, Central Coast Properties Winery Silverado Hill Lost Creek Vineyards & Winery Nevada County Wine Guild, Portfolio of Private Wine Brands 10 Target State CA CA CA NY Deal Size $0.5 $15.0 NC TX NY CA CA OR OR CA CA CA CA CA FL OR OR OR CA OR CA OR CA CA VA CA $0.7 $5.0 $19.3 $4.2 $20.0 $3.9 $3.4 $2.3 Comments 200K cases 10K cases 8K cases 80K cases 3K cases 15K cases 40K cases 50K cases 32 acres 12K cases 7K cases 15 acres 12K cases 248 acres 11 acres 374 acres 41 acres 397 acres 32 acres 400 acres 40 acres 25 acres - MOSS ADAMS CAPITAL LLC . Overview of Selected Transactions acquires (February 2016) • In February 2016, Foley Family Wines announced the acquisition of Chalone Vineyards from Diageo Plc. Terms of the deal were undisclosed. • Chalone Vineyards is located in Monterey County, CA and is well known for its Chardonnay and Pinot Noir varietals. The transaction included the winery, the Chalone Estate Vineyard as well as Gavilan brands and 1,000 acres of property, including 240 acres of vines. • The sale of Chalone Vineyards is the most recent move by Diageo Plc to retreat from the wine business. Diageo purchased Chalone Vineyards in 2004 for $260 million.
In October 2015, Diageo sold most of it U.S. and U.K. wine assets to Treasury Wine Estates for $600 million. • “Chalone Estate Vineyard, with its great wines and incredible history, gives our consumers and guests world class wine options along the entire coast.” – Bill Foley, Proprietor of Foley Family Wines • The Chalone Vineyard has a storied history; in 1976 its Chardonnay ranked third in a blind taste test of six California and four French white wines.
The taste test which came to be known as the 1976 Judgment of Paris and changed the world’s view of California wines forever. acquires (December 2015) • In December 2015, E&J Gallo Winery agreed to acquire The Ranch Winery, a custom-crush winery located in St. Helena, CA. Terms of the deal were not disclosed. • The acquisition of the Ranch facility by Gallo Winery means that eventually existing custom winemaking clients will ultimately need to find alternative custom winemaking locations.
This has heightened the demand and need for additional custom winemaking capacity/facilities in an already tightly constrained market. • The Ranch Winery is a full service winery with a grape-crush capacity of 30,000 tons, 8M gallons of storage space and 4.6M case bottling capacity. The Ranch is one of the largest facilities of its kind in Napa Valley. • The acquisition of The Ranch Winery effectively triples E&J Gallo’s capacity in Napa Valley from 15,000 tons to 45,000 tons. This deal brings the total number of California and Washington wineries in Gallo’s portfolio to 15. • “This is really a once-in-a-lifetime opportunity.
To have a property in the Napa Valley with 30,000 tons of crushing capacity come on the market is extremely rare.” - Roger Nabedian, senior vice president and general manager of E.&J. Gallo’s premium wine division Source: Company press releases, CapitalIQ. Wineries & Vineyards 11 MOSS ADAMS CAPITAL LLC . Moss Adams at a Glance: Leadership through Experience and Results Moss Adams Capital LLC Moss Adams LLP • • 100+ years old – Founded in 1913 • Largest accounting firm headquartered in the western U.S. • 2,400 employees in 28 locations • Fully integrated accounting, tax, and business advisory firm • Middle-market specialists • The Moss Adams Advantage: Discrete, highly leverageable transaction resources and services Full-service investment banking and strategic advisor services • Dedicated industry specialists • Focus on privately owned and family-held companies • Mergers and acquisitions • Private debt & equity placements • Mezzanine capital • Due Diligence preparation & advisory International Presence • Wineries & Vineyards Major market affiliates throughout the U.S. and more than 100 countries around world 12 MOSS ADAMS CAPITAL LLC . Expert Teams INDUSTRY KNOWLEDGE MATCHED WITH AN EXPERIENCED TEAM • Senior Level Attention • Commitment to our Clients • Professional Excellence • Objective & Independent Advice • Creating Value for Owners • Global Presence & Capabilities Premier accounting and financial services advice for middle market winery and vineyard companies. Wineries & Vineyards 13 MOSS ADAMS CAPITAL LLC . Moss Adams Capital Overview Full Service Mid Market Investment Bank Corporate Finance Comprehensive Industry Coverage  Capital Placement – Equity and Debt, Aerospace, Defense & Government Services Food, Beverage & Agriculture Healthcare Services & Products Infrastructure & Construction Paper, Plastics, & Packaging Real Estate, Lodging & Leisure  Exclusive sales and divestitures, Business & Marketing Services Industrials / Niche Manufacturing  Strategic alternatives assessment, Automotive & Dealer Services Consumer, Retail & Apparel  Merger and acquisition advisory, Technology, Communications, & Media Transportation & Logistics  Strategic planning,  Management buy-outs,  Recapitalizations,  Fairness opinions,  Restructuring and special situations advisory. Highlights and Accomplishments  Completed over 250 transactions.  Access to key decision-makers among institutional investor universe.  Coverage of relevant strategic partners.  Average of 20 years of investment banking experience among senior leaders. Wineries & Vineyards 14 MOSS ADAMS CAPITAL LLC . Global Reach A founding member of Praxity, AISBL, a global alliance of independent accounting firms, Moss Adams gives you access to trusted expertise in over 100 countries and territories around the world. Europe Austria, Azerbaijan, Belgium, Bosnia-Herzgovina, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Jersey, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Russia, Serbia, Slovakia, Slovenia, Spain, Sweden, Switzerland, Turkey, United Kingdom, Ukraine North America Canada, United States Asia Bangladesh, China, Indonesia, Japan, South Korea, Malaysia, Singapore, Taiwan, Thailand, Vietnam Middle East and Indian Subcontinent Latin America and Caribbean Argentina, Bermuda, Brazil, Cayman Islands, Chile, Colombia, Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, Jamaica, Mexico, Nicaragua, Panama, Peru, Puerto Rico, Uruguay, Venezuela Wineries & Vineyards Africa Angola, Benin, Botswana, Cameroon, Cape Verde, Djibouti, Egypt, Ghana, Ivory Coast, Kenya, Lesotho, Madagascar, Mauritius, Morocco, Namibia, Nigeria, Senegal, South Africa, Tunisia 15 Bahrain, India, Israel, Jordan, Kuwait, Lebanon, Oman, Pakistan, Palestinian territories, Qatar, Saudi Arabia, Sri Lanka, Tajikistan, United Arab Emirates Australasia Australia, New Caledonia, New Zealand MOSS ADAMS CAPITAL LLC . Global M&A Reach Through Local Relationships Local, National and Global Reach Our affiliation with CFxB consists of 150+ Corporate Finance Professionals across the U.S. and in over 25 countries. more than 25 countries Mazars Europe 140 offices Mazars M&A 20 offices MNP Corporate Finance 10 offices MNP LLP 70 offices Mazars Asia 25 offices Moss Adams Capital 3 offices Moss Adams LLP 28 offices Weiser Mazars 6 offices William Buck CAA 6 offices Mazars Middle East 15 offices BKD Corporate Finance 4 offices BKD LLP 33 offices Mazars South America 20 offices Wineries & Vineyards Mazars Africa 40 offices 16 MOSS ADAMS CAPITAL LLC . Contact Us Contributing Authors: Richard Anderson Managing Director (949) 221-4006 rich.anderson@mossadams.com Wiley Kitchell Managing Director (206) 302-6780 wiley.kitchell@mossadams.com Bradley Erhart William Vyenielo – Moss Adams LLP Associate (949) 517-9452 bradley.erhart@mossadams.com Senior Manager – Wineries & Vineyards (707) 508-3821 william.vyenielo@mossadams.com Moss Adams Capital LLC 2040 Main Street Suite 900 Irvine, CA 92614 Harman Wales 999 Third Avenue Suite 2800 Seattle, WA 98104 Andrew Suen Robert Miranda Managing Director (206) 302-6770 jet.wales@mossadams.com Vice President (949) 221-4021 robert.miranda@mossadams.com Vice president (949) 517-9428 andrew.suen@mossadams.com Brandon Clewett Scott Porter James Parr Director (949) 512-9470 brandon.clewett@mossadams.com Vice President (206) 306-6326 scott.porter@mossadams.com Analyst (949) 221- 4099 james.parr@mossadams.com Tyler Dale James Rothenberger Daniel Seubert Vice President (949) 221-4030 tyler.dale@mossadams.com Wineries & Vineyards Vice President (206) 302-6777 james.rothenberger@mossadams.com 17 Analyst (206) 302-6775 daniel.seubert@mossadams.com MOSS ADAMS CAPITAL LLC .
