SIGNIFICANT CUSTOMERS AND CONCENTRATION OF CREDIT RISK:
Sales to the Company’s five largest customers represented 57.8%, 61.0% and 41.7% of the Company’s sales for the years ended February 28, 2013, February 29, 2012, and February 28, 2011, respectively. Sales to the Company’s five largest customers are expected to continue to represent a significant portion of the Company’s revenues. In addition, sales to individual customers which amount to 10% or more of the Company's sales and associated amounts receivable from these customers as a percentage of the Company’s accounts receivable, net, are as follows:
|
| | | | | | | | |
| For the Years Ended |
| February 28, 2013 | | February 29, 2012 | | February 28, 2011 |
Southern Wine and Spirits | | | | | |
Sales | 30.0 | % | | 32.4 | % | | 19.5 | % |
Accounts receivable, net | 34.5 | % | | 39.4 | % | | 35.7 | % |
| | | | | |
Republic National Distributing Company | | | | | |
Sales | 15.6 | % | | 17.5 | % | | 9.8 | % |
Accounts receivable, net | 18.7 | % | | 17.2 | % | | 20.1 | % |
Sales for the above customers are all reported within the Constellation Wines and Spirits segment. The Company’s arrangements with certain of its customers may, generally, be terminated by either party with prior notice. The Company performs ongoing credit evaluations of its customers’ financial position, and management of the Company is of the opinion that any risk of significant loss is reduced due to the diversity of customers and geographic sales area.
