Get Started for Free Contexxia identifies hard-to-find pieces of information in SEC filings. No more highlighters, no more redlining, no more poring over huge documents. Crimson Wine Group, Ltd (1562151) 10-Q published on Aug 08, 2019 at 6:24 pm
Reporting Period: Jun 29, 2019
In July 2019, the Company authorized plans to list for sale a vineyard consisting of 181.1 acres, of which 92.8 acres are planted to wine grapes, in Klickitat County, Washington. As part of the process in determining the sale price of the property, the Company engaged an appraisal of the property in the second quarter of 2019. As a result, the Company recorded an impairment loss of $1.2 million to write-down the carrying value of the vineyard to the appraised fair value less cost to sell as of June 30, 2019. This impairment was recorded to (loss) income from operations in the unaudited interim condensed consolidated statement of operations. The Company expects to list the property for sale during the third quarter of 2019.
In July 2019, the Company authorized a share repurchase program (the "2019 Summer Repurchase Program") that provided for the repurchase of up to $2.0 million of outstanding common stock. Under the 2019 Summer Repurchase Program, any repurchased shares are constructively retired. Through August 7, 2019, there were no shares repurchased under the plan.
Consolidated income tax expenses for the three and six months ended June 30, 2019 and 2018 were determined based upon applying the Company’s estimated consolidated effective income tax rates for the years ending December 31, 2019 and 2018, respectively to cumulative profit before taxes adjusted for discrete items which are fully recognized in the period they occur.
Wholesale net sales decreased $1.9 million, or 19%, in the current quarter as compared to the same quarter in 2018. The decrease was primarily driven by a decrease in domestic wine sales and increased price support compared to the same quarter in 2018. The decrease in domestic wine sales was primarily driven by in market price adjustments in the same quarter in 2018.
Interest expense, net decreased $0.1 million, or 29%, in the current six month period compared to the same period in 2018. The decrease was primarily driven by a higher patronage dividend received and the timing of capitalized interest on vineyard development projects in the current six month period.