Boston Beer Reports First Quarter 2009 Results
BOSTON,
Key highlights of the first quarter were:
-- Depletions declined 5%, adjusted for comparable selling days.
-- Shipments of core products declined 13%, exclusive of the impact of
the product recall in the first quarter of 2008.
-- Net pricing increases of approximately 3% were realized.
-- Brewing of the Company's beers at the Pennsylvania Brewery continued
to ramp up, with operations at the brewery beginning to benefit from
investments made and to show improvements in the efficiencies,
capacity and costs at the brewery.
-- Current estimate of earnings per diluted share for 2009 continues to
be between $1.40 and $1.70 .
Mr. Roper continued, "Our Pennsylvania Brewery continues to brew superior
quality beer and we have been able to transition production from our contract
brewers and continue to supply our drinkers without disruption. Our brewing
there has not yet reached its full potential as the Packaging Services
Agreement with
1st Quarter Results
Core shipment volume for the three months ended
The Company's net income of
The Company expects that its cash balances as of
Other matters
Year-to-date depletions reported to the Company through
Shipments and orders in-hand suggest that core shipments year-to-date
through
Consistent with the Company's earnings release on
The Company continues to evaluate 2009 capital expenditures and now
expects them to be between
The Company did not repurchase any shares of its Class A Common Stock
during the three months ended
The
Today, the Company brews more than 21 styles of beer. The Company uses
the traditional four vessel brewing process and often takes extra steps like
dry-hopping and a secondary fermentation known as krausening. It passionately
pursues the development of new styles and the perfection of its classic beers
by constantly searching for the world's finest ingredients. While resurrecting
traditional brewing methods, the Company has earned a reputation as a pioneer
in another revolution, the "extreme beer" movement, where it seeks to
challenge drinkers' perceptions of what beer can be. The
Statements made in this press release that state the Company's or
management's intentions, hopes, beliefs, expectations or predictions of the
future are forward-looking statements. It is important to note that the
Company's actual results could differ materially from those projected in such
forward-looking statements. Additional information concerning factors that
could cause actual results to differ materially from those in the
forward-looking statements is contained from time to time in the Company's SEC
filings, including, but not limited to, the Company's report on Form 10-K for
the years ended
Wednesday, May 6, 2009
THE BOSTON BEER COMPANY, INC.
Financial Results
(In thousands, except per share data)
Operating Results:
(unaudited)
Three Months Ended
------------------
March 28, March 29,
2009 2008
---- ----
Barrels sold 514 404
Revenue, net of product recall returns of $9,080
for the three months ended March 29, 2008 $88,331 $84,278
Less excise taxes 7,258 8,155
----- -----
Net revenue 81,073 76,123
Cost of goods sold 43,071 38,542
(Recovery) costs associated with product recall (43) 5,931
--- -----
Gross profit 38,045 31,650
Operating expenses:
Advertising, promotional and selling expenses 25,893 31,501
General and administrative expenses 9,360 7,511
----- -----
Total operating expenses 35,253 39,012
------ ------
Operating income (loss) 2,792 (7,362)
Other (expense) income, net:
Interest income 15 760
Other (expense) income, net (21) 110
--- ---
Total other (expense) income, net (6) 870
-- ---
Income (loss) before income taxes 2,786 (6,492)
Income tax provision (benefit) 1,420 (2,753)
----- ------
Net income (loss) $1,366 $(3,739)
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Net income (loss) per common share - basic $0.10 $(0.27)
===== ======
Net income (loss) per common share - diluted $0.10 $(0.27)
===== ======
Weighted-average number of common shares - basic 14,078 13,853
====== ======
Weighted-average number of common shares - diluted 14,305 13,853
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Consolidated Balance Sheets:
(in thousands, except share data) (unaudited)
March 28, December 27,
2009 2008
---- ----
Assets
Current Assets:
Cash and cash equivalents $4,145 $9,074
Short-term investments - -
Accounts receivable, net of allowance
for doubtful accounts of $284 and
$255 as of March 28, 2009 and
December 27, 2008, respectively 16,958 18,057
Inventories 27,429 22,708
Prepaid expenses and other assets 14,090 16,281
Deferred income taxes 2,734 2,734
----- -----
Total current assets 65,356 68,854
Property, plant and equipment, net 148,384 147,920
Other assets 1,569 1,606
Goodwill 1,377 1,377
----- -----
Total assets $216,686 $219,757
======== ========
Liabilities and Stockholders' Equity
Current Liabilities:
Accounts payable $22,336 $20,203
Accrued expenses 39,242 46,854
------ ------
Total current liabilities 61,578 67,057
Deferred income taxes 9,617 9,617
Other liabilities 2,893 3,055
----- -----
Total liabilities 74,088 79,729
Commitments and Contingencies
Stockholders' Equity:
Class A Common Stock, $.01 par value;
22,700,000 shares authorized;
10,150,762 and 10,068,486 issued and
outstanding as of March 28, 2009 and
December 27, 2008, respectively 102 101
Class B Common Stock, $.01 par value;
4,200,000 shares authorized;
4,107,355 issued and outstanding 41 41
Additional paid-in capital 103,856 102,653
Accumulated other comprehensive loss,
net of tax (431) (431)
Retained earnings 39,030 37,664
------ ------
Total stockholders' equity 142,598 140,028
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Total liabilities and
stockholders' equity $216,686 $219,757
======== ========
Consolidated Statements of Cash Flows:
(in thousands) (unaudited)
Three Months Ended
------------------
March 28, March 29,
2009 2008
---- ----
Cash flows provided by operating activities:
Net income (loss) $1,366 $(3,739)
Adjustments to reconcile net income (loss)
to net cash provided by operating activities:
Depreciation and amortization 4,197 1,979
Impairment of long-lived assets 553 -
Bad debt expense 37 106
Stock-based compensation expense 696 893
Excess tax deficit (benefit) from
stock-based compensation arrangements 33 (1,426)
Proceeds from sale of trading securities - 16,200
Changes in operating assets and liabilities:
Accounts receivable 1,062 (2,298)
Inventories (4,721) (6,844)
Prepaid expenses and other assets 2,575 (892)
Accounts payable 2,133 (596)
Accrued expenses (7,645) 6,780
Other liabilities (162) (147)
---- ----
Net cash provided by operating
activities 124 10,016
--- ------
Cash flows used in investing activities:
Purchases of property, plant and equipment (5,177) (6,271)
Acquisition of brewery assets - (47)
--- ---
Net cash used in investing
activities (5,177) (6,318)
------ ------
Cash flows provided by (used in) financing activities:
Repurchase of Class A Common Stock - (15,324)
Proceeds from exercise of stock options 43 1,961
Excess tax (deficit) benefit from
stock-based compensation arrangements (33) 1,426
Net proceeds from sale of investment shares 114 112
--- ---
Net cash provided by (used in)
financing activities 124 (11,825)
--- -------
Change in cash and cash equivalents (4,929) (8,127)
Cash and cash equivalents at beginning of period 9,074 79,289
----- ------
Cash and cash equivalents at end of period $4,145 $71,162
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Supplemental disclosure of cash flow information:
Income taxes paid $19 $3,177
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Copies of The Boston Beer Company's press releases, including quarterly
financial results, are available on the Internet at www.bostonbeer.com
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SOURCE
CONTACT:
+1-617-368-5165
/Web Site: http://www.bostonbeer.com