Boston Beer Reports Second Quarter 2017 Results

Mr. Roper continued, "Our priorities for 2017 remain unchanged.  Our number one priority is returning both Samuel Adams and Angry Orchard to growth through continued packaging, innovation, promotion and brand communication initiatives, while maintaining Twisted Tea's momentum.  Our second priority is a focus on cost savings and efficiency projects to fund the investments needed to grow our brands.  We have adjusted our organization to the new volume environment, while preserving the capability to innovate and return to growth.  We believe that the results of these initiatives are starting to show in our reported gross margin improvements and in our operating expenses, and have allowed us to increase our brand investment spend during the quarter. Based on the early success of these efforts, we are maintaining our previously stated goal of increasing our gross margins by about one percentage point per year through 2019, before any mix or volume impacts, while preserving our quality and improving our service levels. Our third priority is long-term innovation, where our current focus is on ensuring that Truly Spiked & Sparkling reaches its full potential, and our long-term intent is to generate a consistent cadence of interesting brand innovations."

2nd Quarter 2017 Summary of Results

Depletions decreased 3% from the comparable 13-week period in 2016. 

Shipment volume was approximately 1.1 million barrels, flat to the comparable 13-week period in 2016.

The Company believes distributor inventory levels at July 1, 2017 were appropriate. Inventory at distributors participating in the Freshest Beer Program as of July 1, 2017 decreased slightly in terms of days of inventory on hand when compared to June 25, 2016. The Company has approximately 78% of its volume on the Freshest Beer Program.

Gross margin at 54.1% represented an increase from the 51.8% margin realized in the comparable 13-week period in 2016, primarily as a result of lower brewery processing costs per barrel due to cost savings initiatives and increases in revenue per barrel due to pricing and package mix.

Advertising, promotional and selling expenses increased $4.6 million from the comparable 13-week period in 2016, primarily as a result of higher media spending and salaries and benefits costs partially offset by efficiency driven decreases in point of sale spending and freight to distributors due to lower freight rates.

General and administrative expenses decreased by $2.4 million from the comparable 13-week period in 2016, primarily due to decreases in stock compensation, consulting and legal costs.

Impairment of long-lived assets increased $1.5 million from the comparable 13-week period in 2016, primarily due to the write-down of brewery equipment at the Company's Pennsylvania and Cincinnati Breweries.

Year-to-Date 2017 Summary of Results

Depletions decreased 7% from the comparable 26-week period in 2016, reflecting decreases in the Company's Samuel Adams, Coney Island, and Angry Orchard brands, partially offset by increases in its Twisted Tea and Truly Spiked & Sparkling brands.

Shipment volume was approximately 1.8 million barrels, a 7% decrease from the comparable 26-week period in 2016.

Gross margin at 51.4% represented an increase from the 50.4% margin realized in the comparable 26-week period in 2016, primarily as a result of increases in revenue per barrel due to pricing and package mix and lower brewery processing costs per barrel due to cost savings initiatives.

Advertising, promotional and selling expenses decreased $1.0 million from the comparable 26-week period in 2016, primarily due to efficiency driven decreases in point of sale spending and decreases in freight to distributors, as a result of lower volume and lower freight rates, which were partially offset by higher salaries and benefits costs and media spending.

General and administrative expenses decreased $4.9 million from the comparable 26-week period in 2016, primarily due to decreases in stock compensation, consulting and legal costs.

Impairment of long-lived assets increased $1.5 million from the comparable 26-week period in 2016, primarily due to the write-down of brewery equipment at the Company's Pennsylvania and Cincinnati Breweries.

The Company's effective tax rate for the 26-week period ended July 1, 2017 decreased to 29.7% from 36.1% in the comparable 26-week period in 2016. This decrease was primarily due to the tax benefit resulting from the adoption ASU 2016-09, which was effective for the Company on January 1, 2017.

The Company expects that its July 1, 2017 cash balance of $71.7 million, together with its future operating cash flows and its $150.0 million line of credit, will be sufficient to fund future cash requirements.

During the 26-week period ended July 1, 2017 and the period from July 2, 2017 through July 21, 2017, the Company repurchased approximately 608,000 shares of its Class A Common Stock for an aggregate purchase price of approximately $88.2 million.  As of July 21, 2017, the Company had approximately $85.1 million remaining on the $781.0 million share buyback expenditure limit set by the Board of Directors.

Depletion estimates

Year-to-date depletions through the 29-week period ended July 22, 2017 are estimated by the Company to have decreased approximately 7% from the comparable period in 2016.

Outlook

The Company currently projects full year 2017 Non-GAAP earnings per diluted share to be between $5.00 and $6.20, reflecting the uncertain volume outlook.  This Non-GAAP projection excludes the impact of ASU 2016-09.  The Company's actual 2017 earnings per share could vary significantly from the current projection.  The 2017 fiscal year includes 52 weeks compared to the 2016 fiscal year which included 53 weeks.  Underlying the Company's current 2017 projection are the following full-year estimates and targets:

• Depletions and shipments percentage change of between minus 7% and plus 1%.
• Increases in revenue per barrel of between 1% and 2%.
• Gross margin of between 51% and 52%.
• Increased investments in advertising, promotional and selling expenses of between $20 million and $30 million.  This does not include any changes in freight costs for the shipment of products to the Company's distributors.
• Non-GAAP effective tax rate of approximately 37%, excluding the impact of ASU 2016-09. 
• Estimated capital spending of between $35 million and $45 million, most of which relates to continued investments in the Company's breweries.  This estimate is a narrowing of the previously communicated range of $30 million to $50 million.

Non-GAAP effective tax rate and Non-GAAP earnings per diluted share are not defined terms under U.S. generally accepted accounting principles ("GAAP"). These Non-GAAP measures should not be considered in isolation or as a substitute for diluted earnings per share and effective tax rate data prepared in accordance with GAAP, and may not be comparable to calculations of similarly titled measures by other companies. The Company's projection for its Non-GAAP effective tax rate and Non-GAAP earnings per diluted share exclude the impact of ASU 2016-09, which could be significant and will depend largely upon unpredictable future events outside the Company's control, including the timing and value realized upon exercise of stock options versus the fair value of those options when granted. Therefore, because of the uncertainty and variability of the impact of ASU 2016-09, the Company is unable to provide, without unreasonable effort, a reconciliation of these Non-GAAP measures on a forward-looking basis.

About the Company

The Boston Beer Company, Inc. (NYSE: SAM) began in 1984 and today brews more than 60 styles of Samuel Adams beer.  Our portfolio of brands also includes Angry Orchard Hard Cider, Twisted Tea, and Truly Spiked & Sparkling, as well as several other craft beer brands brewed by A&S Brewing, our craft beer incubator.  For more information, please visit our investor relations website at www.bostonbeer.com, which includes links to all of our respective brand websites.

Forward-Looking Statements

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 year ended December 31, 2016 and subsequent filings made prior to or after the date hereof.  Copies of these documents may be found on the Company's website, www.bostonbeer.com, or obtained by contacting the Company or the SEC.

Thursday, July 27, 2017

THE BOSTON BEER COMPANY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(in thousands, except per share data)
(unaudited)
			Thirteen weeks ended				Twenty-six weeks ended
			July 1,		June 25,		July 1,		June 25,
			2017		2016		2017		2016
Barrels sold			1,079		1,080		1,786		1,914
Revenue			$         264,664		$         261,225		$         437,101		$         463,233
Less excise taxes			16,734		16,409		27,476		29,590
Net revenue			247,930		244,816		409,625		433,643
Cost of goods sold			113,911		117,940		199,262		215,236
Gross profit			134,019		126,876		210,363		218,407
Operating expenses:
Advertising, promotional and selling expenses			67,831		63,252		121,585		122,501
General and administrative expenses			19,395		21,799		37,957		42,844
Impairment of assets			1,505		37		1,505		37 Werbung Mehr Nachrichten zur Boston Beer A Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 10:00 - PR Newswire Moonpig Group Plc - Holding(s) in Company 09:16 - PR Newswire Redde Northgate Plc - Director/PDMR Shareholding 08:56 - PR Newswire Samson Rock Capital LLP - Form 8.3 - Gresham Technologies Plc SolarBank    Wie die Revolution der sauberen Energie eine solide Investitionsmöglichkeit bieten könnte weiterlesen» Anzeige wo-site-teaser-box-16755_site-teaser-box_2024-04-25_09%253A00%253A00_2024-04-26_09%253A00%253A59