We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Craft Brew Alliance Inc | NASDAQ:BREW | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 16.51 | 16.55 | 16.51 | 0 | 01:00:00 |
Building on strong year-to-date financial performance, CBA tightens guidance and updates SG&A spend
Craft Brew Alliance, Inc. (“CBA”) (Nasdaq: BREW), a leading craft brewing company, today announced financial results for the third quarter and year-to-date ended September 30, 2018. Third quarter results include 9% depletions growth for Kona, as well as continued progress leveraging our improved business fundamentals to develop a strong portfolio for tomorrow as evidenced by the recently announced acquisitions of our three regional partner brands, Appalachian Mountain Brewery, Cisco Brewers, and Wynwood Brewing Co.
As a result of strong year-to-date financial performance in line with management’s expectations, including accelerated depletions growth for Kona, a 200-basis-point expansion in gross margin, and a $0.15 increase in EPS, we are tightening full-year guidance and updating our selling, general & administrative (SG&A) expense and income tax rate. We now anticipate higher SG&A spend to reflect incremental marketing programs to fuel Kona’s momentum and ongoing innovation initiatives, as well as costs related to our partner acquisitions.
Accelerating Kona’s Growth in the Third Quarter
Kona delivered robust 9% depletions growth in the third quarter, after growing 7% in the second quarter and 3% in the first quarter, improving the year-to-date trend to a 7% increase in depletions. Kona’s momentum was driven by flagship Big Wave Golden Ale, which grew total depletions by 30% in the third quarter, and is particularly remarkable amidst increased headwinds in today’s fast-changing market. Successful testing of incremental marketing programming in key mainland markets, including Florida, also drove Kona’s accelerated performance in the third quarter.
Reshaping our Portfolio for Tomorrow
As part of our Kona Plus strategy to support Kona with strong regional brands in key markets, we took steps to round out our portfolio, culminating with the October 10, 2018 announcement that we are acquiring our three partner brands, Appalachian Mountain Brewery, Cisco Brewers, and Wynwood Brewing Co. Year-to-date, these brands have achieved a combined 18% increase in depletions over the same period last year. Looking forward, we plan to increase investment behind these brands to further bolster their contribution and overall value to CBA.
Unlocking Kona’s Potential in Brazil with Local Production and Marketing
Building on a successful 18-month ecommerce pilot with Ambev in Brazil, we committed to a comprehensive business plan to grow Kona in the world’s third largest beer market with an initial focus in Rio de Janeiro. The plan includes dedicated local commercial resources and increased marketing, as well as local production of Kona to ensure reliability of supply, freshness of beer, and improved sustainability throughout the value chain. With this plan, Rio will become the lead market in Brazil, serving as a template for future international markets.
Investing in the Future through Innovation
In the third quarter, we continued to invest in exploring new opportunities for future topline growth through our ongoing consumer research projects with the Yale Center for Consumer Insights and global consultancy Prophet, as well as our test-and-learn beverage initiative called the pH Experiment. While the research projects are ongoing, our initial learnings continue to broaden our view of today’s changing consumer landscape and inform potential evolution of our business model and portfolio in 2019 and beyond.
Third quarter and year-to-date 2018 financial highlights:
“We accomplished a lot in the third quarter – from continuing to accelerate Kona, to bringing our partner acquisitions to the finish line, to maintaining close control of our operations – and I’m proud of our team for their continued focus on achieving these milestones,” said Andy Thomas, chief executive officer, CBA. “While our third quarter results were largely in line with our expectations, they nevertheless reflect the increasing costs and challenges of competing in today’s crowded market.”
Tightened Year-End Financial Guidance
Based on our solid year-to-date performance, we are updating and tightening our guidance as follows:
Forward-Looking Statements
Statements made in this press release that state the Company’s or management’s intentions, hopes, beliefs, expectations or predictions for the future, including depletions, shipments and sales growth, price increases, and gross margin rate improvement, the level and effect of SG&A expense and business development, anticipated capital spending, our effective income tax rate, and the benefits or improvements to be realized from strategic initiatives and capital projects, 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, 2017. Copies of these documents may be found on the Company’s website, www.craftbrew.com, or obtained by contacting the Company or the SEC.
About Craft Brew Alliance
CBA is an independent craft brewing company that brews, brands, and brings to market world-class American craft beers.
Our distinctive portfolio combines the power of Kona Brewing Company, a dynamic, fast-growing national craft beer brand, with strong regional breweries and innovative lifestyle brands Appalachian Mountain Brewery, Cisco Brewers, Omission Brewing Co., Redhook Brewery, Square Mile Cider Co., Widmer Brothers Brewing, and Wynwood Brewing Co. CBA nurtures the growth and development of its brands in today’s increasingly competitive beer market through our state-of-the-art brewing and distribution capability, integrated sales and marketing infrastructure, and strong focus on partnerships, local community and sustainability.
Formed in 2008, CBA is headquartered in Portland, Oregon and operates breweries and brewpubs across the U.S. CBA beers are available in all 50 U.S. states and 30 different countries around the world. For more information about CBA and our brands, please visit www.craftbrew.com.
Craft Brew Alliance, Inc. Condensed Consolidated Statements of Operations (Dollars and shares in thousands, except per share amounts) (Unaudited)Three Months EndedSeptember 30,
Nine Months EndedSeptember 30,
2018 2017 2018 2017 Sales $ 55,639 $ 60,040 $ 170,977 $ 171,010 Less excise taxes 2,750 3,402 8,778 9,520 Net sales 52,889 56,638 162,199 161,490 Cost of sales 36,190 37,254 108,302 111,108 Gross profit 16,699 19,384 53,897 50,382 As percentage of net sales 31.6 % 34.2 % 33.2 % 31.2 % Selling, general and administrative expenses 16,712 16,328 47,317 47,357 Operating income (loss) (13 ) 3,056 6,580 3,025 Interest expense (107 ) (179 ) (348 ) (533 ) Other income (expense), net (13 ) (59 ) 42 (46 ) Income (loss) before income taxes (133 ) 2,818 6,274 2,446 Income tax provision (benefit) (194 ) 1,067 1,600 758 Net income $ 61 $ 1,751 $ 4,674 $ 1,688 Basic and diluted net income per share: $ — $ 0.09 $ 0.24 $ 0.09 Weighted average shares outstanding: Basic 19,370 19,296 19,338 19,278 Diluted 19,545 19,443 19,525 19,401 Total shipments (in barrels): Core Brands 186,800 205,200 566,100 572,600 Contract Brewing 9,000 2,700 21,300 13,700 Total shipments 195,800 207,900 587,400 586,300 Change in depletions (1) -1 % -2 % -2 % -1 % (1) Change in depletions reflects the period-over-period change in barrel volume sales of beer by wholesalers to retailers. Craft Brew Alliance, Inc. Condensed Consolidated Balance Sheets (In thousands) (Unaudited) September 30, 2018 2017 Current assets: Cash, cash equivalents and restricted cash $ 12,156 $ 405 Accounts receivable, net 28,460 28,894 Inventory, net 17,271 17,659 Assets held for sale - 23,462 Other current assets 1,275 1,372 Total current assets 59,162 71,792 Property, equipment and leasehold improvements, net 104,225 106,380 Goodwill 12,917 12,917 Intangible, equity method investment and other assets, net 20,244 20,925 Total assets $ 196,548 $ 212,014 Current liabilities: Accounts payable $ 18,899 $ 25,088 Accrued salaries, wages and payroll taxes 4,749 6,170 Refundable deposits 4,029 5,477 Deferred revenue 5,335 2,985 Other accrued expenses 2,415 4,602 Current portion of long-term debt and capital lease obligations 816 1,731 Total current liabilities 36,243 46,053 Long-term debt and capital lease obligations, net of current portion 9,763 23,527 Other long-term liabilities 13,910 19,996 Total common shareholders' equity 136,632 122,438 Total liabilities and common shareholders' equity $ 196,548 $ 212,014 Craft Brew Alliance, Inc. Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited)Nine Months EndedSeptember 30,
2018 2017 Cash Flows From operating activities: Net income $ 4,674 $ 1,688 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 7,985 7,904 (Gain) loss on sale or disposal of Property, equipment and leasehold improvements (549 ) 164 Deferred income taxes (673 ) (168 ) Other, including stock-based compensation and impairment of assets held for sale 1,264 1,851 Changes in operating assets and liabilities: Accounts receivable, net (676 ) (4,886 ) Inventories (2,905 ) 1,371 Other current assets 2,360 1,124 Accounts payable and other accrued expenses 6,872 13,096 Accrued salaries, wages and payroll taxes (1,128 ) 1,203 Refundable deposits (560 ) (884 ) Net cash provided by operating activities 16,664 22,463 Cash Flows from investing activities: Expenditures for Property, equipment and leasehold improvements (6,216 ) (16,170 ) Proceeds from sale of Property, equipment and leasehold improvements 22,998 95 Investment in Wynwood - (2,101 ) Restricted cash from sale of Property, equipment and leasehold improvements 515 - Net cash provided by (used in) investing activities 17,297 (18,176 ) Cash Flows from financing activities: Principal payments on debt and capital lease obligations (520 ) (483 ) Net repayments under revolving line of credit (22,199 ) (3,922 ) Proceeds from issuances of common stock 427 98 Tax payments related to stock-based awards (92 ) (17 ) Net cash used in financing activities (22,384 ) (4,324 ) Increase (decrease) in Cash, cash equivalents and restricted cash 11,577 (37 ) Cash, cash equivalents and restricted cash, beginning of period 579 442 Cash, cash equivalents and restricted cash, end of period $ 12,156 $ 405 Craft Brew Alliance, Inc. Select Financial Information on a Trailing Twelve Month Basis (Dollars in thousands, except per share amounts) (Unaudited)Twelve Months EndedSeptember 30,
2018 2017 Change % Change Net sales $ 208,165 $ 207,294 $ 871 0.4 % Gross profit $ 68,773 $ 63,792 $ 4,981 7.8 % As percentage of net sales 33.0 % 30.8 % 220 bps Selling, general and administrative expenses 60,423 60,233 190 0.3 % Operating income $ 8,350 $ 3,559 $ 4,791 134.6 % Net income $ 12,509 $ 1,764 $ 10,745 609.1 % Income per share: Basic $ 0.65 $ 0.09 $ 0.56 622.2 % Diluted $ 0.64 $ 0.09 $ 0.55 611.1 % Total shipments (in barrels): Core Brands 724,100 738,000 (13,900 ) (1.9 )% Contract Brewing 25,300 19,900 5,400 27.1 % Total shipments 749,400 757,900 (8,500 ) (1.1 )% Change in depletions (1) -2 % -2 % (1) Change in depletions reflects the period-over-period change in barrel volume sales of beer by wholesalers to retailers.Supplemental Disclosures Regarding Non-GAAP Financial Information
Craft Brew Alliance, Inc. Reconciliation of Adjusted EBITDA to Net Income (In thousands) (Unaudited)Three Months EndedSeptember 30,
Nine Months EndedSeptember 30,
2018 2017 2018 2017 Net income $ 61 $ 1,751 $ 4,674 $ 1,688 Interest expense 107 179 348 533 Income tax provision (benefit) (194 ) 1,067 1,600 758 Depreciation expense 2,521 2,371 7,713 7,709 Amortization expense 77 65 272 195 Stock-based compensation 371 391 1,058 945 (Gain) loss on disposal of assets (55 ) 18 (549 ) 164 Adjusted EBITDA $ 2,888 $ 5,842 $ 15,116 $ 11,992 CBA has presented Adjusted Earnings before Interest, Taxes, Depreciation and Amortization (“Adjusted EBITDA”) in these tables to provide investors with additional information to evaluate our operating performance on an ongoing basis using criteria that are used by management. We define Adjusted EBITDA as net income (loss) before interest, income taxes, depreciation and amortization, stock-based compensation and other non-cash charges, including net gain or loss on disposal of property, equipment and leasehold improvements. We use Adjusted EBITDA, among other measures, to evaluate operating performance, to plan and forecast future periods’ operating performance, and as an incentive compensation target for certain management personnel. As Adjusted EBITDA is not a measure of operating performance or liquidity calculated in accordance with generally accepted accounting principles in the United States of America (“GAAP”), this measure should not be considered in isolation of, or as a substitute for, net income (loss) as an indicator of operating performance, or net cash provided by (used in) operating activities as an indicator of liquidity. The use of Adjusted EBITDA instead of net income (loss) has limitations as an analytical tool, including the inability to determine profitability; the exclusion of interest expense and associated cash requirements, given the level of our indebtedness; and the exclusion of depreciation and amortization which represent significant and unavoidable operating costs, given the capital expenditures needed to maintain our operations. We compensate for these limitations by relying on GAAP results. Our computation of Adjusted EBITDA may differ from similarly titled measures used by other companies. As Adjusted EBITDA excludes certain financial information compared with net income (loss) and net cash provided by (used in) operating activities, the most directly comparable GAAP financial measures, users of this financial information should consider the types of events and transactions which are excluded. The table above shows a reconciliation of Adjusted EBITDA to net income (loss).
View source version on businesswire.com: https://www.businesswire.com/news/home/20181107005878/en/
Craft Brew AllianceJenny McLean, 503-331-7248Director of Communicationsjenny.mclean@craftbrew.com
1 Year Craft Brew Alliance Chart |
1 Month Craft Brew Alliance Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions