Question-and-Answer Session
Operator
(Operator instructions) Your first question comes from the line of Andrew Kieley with Deutsche Bank, please proceed.
Andrew Kieley – Deutsche Bank
Hi, good afternoon everyone.
Martin Roper
Hi, Andrew.
Andrew Kieley – Deutsche Bank
Just to start on the recall, I was wondering if you could give us the timing, I guess, what's between the first quarter and the second quarter. Are we going to see revenue adjustments in the second quarter as this goes into second quarter? Or was it all contained in first-quarter numbers in?
Martin Roper
Hey Andrew, it's Martin. Obviously, the recall was announced in the second quarter, and we took the charges in the first quarter because they became – we became aware of the potential for them. Those charges are estimates based on currently known information, we think they're pretty good estimates, but they are subject to change, and as such, if those estimates were to change, any adjustments would need to be posted or occur in the second quarter.
Andrew Kieley – Deutsche Bank
Okay. And, I mean, the May, April shipment outlook you are giving is pretty strong, so does that imply you are not seeing a consumer reaction to the recall? Or can you talk about the consumer reaction?
Martin Roper
I think, generally the consumers have been very positive in the feedback to the company for how we treated the situation. It's probably too early to draw any conclusions as to how that is going to affect depletions and demand, but I think our orders year-to-date through end of May, which we reported, I think – I don't have the piece of paper in front of me, but up 12 which net of the credits for the recall suggest that the business trends and wholesaler belief in our business remains positive.
Andrew Kieley – Deutsche Bank
And can you recover these costs from the supplier, or how does that work? Is there any chance to recovery some of these costs?
Martin Roper
I'd rather not talk about the specifics of what our recovery options we may seek as though are likely to be the subject of claims or litigation, and I don't think it's appropriate to discuss those in this forum.
Andrew Kieley – Deutsche Bank
Okay. Just one more question. I wanted to ask about the on-premise channel, how was that trending against last year? Are you still seeing weakness in the restaurant channel and what sort of mix shift does that imply if we continue to see weak on-premise trends?
- To read the full transcript on Seeking Alpha, click here »
