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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Boston Beer Company Inc | NYSE:SAM | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.69 | 0.25% | 282.29 | 284.38 | 280.65 | 282.68 | 142,702 | 21:00:02 |
☒
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES AND EXCHANGE ACT OF 1934
|
☐ |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES AND EXCHANGE ACT OF 1934
|
MASSACHUSETTS
|
04-3284048
|
|
(State or other jurisdiction of
incorporation or organization)
|
(I.R.S. Employer
Identification No.)
|
Title of each class
|
Trading
Symbol(s)
|
Name of each exchange
on which registered
|
||
Class A Common Stock. $0.1 par value
|
SAM
|
New York Stock Exchange
|
||
Class B Common Stock, $0.1 par value
|
Not applicable
|
Unregistered
|
Large accelerated filer
|
☒
|
Accelerated filer
|
☐
|
|||
Non-accelerated
filer
|
☐
|
Small reporting company
|
☐
|
|||
Emerging growth company
|
☐
|
|
|
|
|
|
PAGE
|
|||||
PART I.
|
|
|||||||
|
Item 1.
|
3
|
||||||
|
|
4
|
||||||
|
|
5
|
||||||
|
|
6
|
||||||
|
|
7
|
||||||
|
|
8-17
|
||||||
|
Item 2.
|
18
|
||||||
|
Item 3.
|
23
|
||||||
|
Item 4.
|
23
|
||||||
PART II.
|
|
|||||||
|
Item 1.
|
23
|
||||||
|
Item 1A.
|
23
|
||||||
|
Item 2.
|
24
|
||||||
|
Item 3.
|
24
|
||||||
|
Item 4.
|
24
|
||||||
|
Item 5.
|
24
|
||||||
|
Item 6.
|
25
|
||||||
26
|
||||||||
EX-31.1 Section 302 CEO Certification
|
|
|||||||
EX-31.2 Section 302 CFO Certification
|
|
|||||||
EX-32.1 Section 906 CEO Certification
|
|
|||||||
EX-32.2 Section 906 CFO Certification
|
|
|
|
June 29,
|
|
|
December 29,
|
|
||
|
2019
|
2018
|
||||||
Assets
|
|
|
||||||
Current Assets:
|
|
|
||||||
Cash and cash equivalents
|
$ |
3,017
|
$ |
108,399
|
||||
Accounts receivable
|
69,420
|
34,073
|
||||||
Inventories
|
80,361
|
70,249
|
||||||
Prepaid expenses and other current assets
|
16,329
|
13,136
|
||||||
Income tax receivable
|
9,629
|
5,714
|
||||||
Total current assets
|
178,756
|
231,571
|
||||||
Property, plant and equipment, net
|
412,064
|
389,789
|
||||||
Operating right-of-use assets
|
36,779
|
—
|
||||||
Merger consideration
|
|
|
158,402
|
|
|
|
—
|
|
Other assets
|
23,646
|
14,808
|
||||||
Goodwill
|
3,683
|
3,683
|
||||||
Total assets
|
$ |
813,330
|
$ |
639,851
|
||||
Liabilities and Stockholders’ Equity
|
|
|
||||||
Current Liabilities:
|
|
|
||||||
Accounts payable
|
$ |
74,906
|
$ |
47,102
|
||||
Accrued expenses and other current liabilities
|
73,545
|
73,412
|
||||||
Line of credit
|
|
|
37,500
|
|
|
|
—
|
|
Current operating lease liabilities
|
2,315
|
—
|
||||||
Total current liabilities
|
188,266
|
120,514
|
||||||
|
|
|
|
|
|
|
|
|
Deferred income taxes, net
|
55,452
|
49,169
|
||||||
Non-current operating lease liabilities
|
39,239
|
—
|
||||||
Other liabilities
|
7,572
|
9,851
|
||||||
Total liabilities
|
290,529
|
179,534
|
||||||
Commitments and Contingencies (See Note I)
|
||||||||
Stockholders’ Equity:
|
|
|
||||||
Class A Common Stock, $
.01
par value;
22,700,000
shares authorized;
8,655,955 and
8,580,593
issued and outstanding as of June 29, 2019 and December 29, 2018, respectively
|
87
|
86
|
||||||
Class B Common Stock, $
.01
par value;
4,200,000
shares authorized;
2,917,983
and
2,917,983
issued and outstanding as of June 29, 2019 and December 29, 2018, respectively
|
29
|
29
|
||||||
Additional paid-in capital
|
416,602
|
405,711
|
||||||
Accumulated other comprehensive loss, net of tax
|
(1,155
|
) |
(1,197
|
) | ||||
Retained earnings
|
107,238
|
55,688
|
||||||
Total stockholders’ equity
|
522,801
|
460,317
|
||||||
Total liabilities and stockholders’ equity
|
$ |
813,330
|
$ |
639,851
|
||||
|
Thirteen weeks ended
|
Twenty-six weeks ended
|
||||||||||||||
|
|
June 29,
|
|
|
June 30,
|
|
|
June 29,
|
|
|
June 30,
|
|
||||
|
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
||||
Revenue
|
$ |
338,643
|
$ |
289,574
|
$ |
606,202
|
$ |
491,405
|
||||||||
Less excise taxes
|
20,236
|
16,474
|
36,144
|
27,848
|
||||||||||||
Net revenue
|
318,407
|
273,100
|
570,058
|
463,557
|
||||||||||||
Cost of goods sold
|
159,405
|
131,130
|
286,516
|
225,490
|
||||||||||||
Gross profit
|
159,002
|
141,970
|
283,542
|
238,067
|
||||||||||||
Operating expenses:
|
|
|
|
|
||||||||||||
Advertising, promotional and selling expenses
|
94,079
|
86,510
|
165,802
|
154,031
|
||||||||||||
General and administrative expenses
|
26,748
|
23,879
|
50,122
|
43,217
|
||||||||||||
Impairment of assets
|
|
|
243
|
|
|
|
517
|
|
|
|
243
|
|
|
|
517
|
|
Total operating expenses
|
121,070
|
110,906
|
216,167
|
197,765
|
||||||||||||
Operating income
|
37,932
|
31,064
|
67,375
|
40,302
|
||||||||||||
Other income (expense), net:
|
|
|
|
|
||||||||||||
Interest (expense) income, net
|
(27
|
) |
273
|
610
|
478
|
|||||||||||
Other income (expense), net
|
197
|
(203
|
) |
(55
|
) |
(488
|
) | |||||||||
Total other income (expense), net
|
170
|
70
|
555
|
(10
|
) | |||||||||||
Income before income tax provision
|
38,102
|
31,134
|
67,930
|
40,292
|
||||||||||||
Income tax provision
|
10,246
|
7,599
|
16,380
|
7,447
|
||||||||||||
Net income
|
|
$
|
27,856
|
|
|
$
|
23,535
|
|
|
$
|
51,550
|
|
|
$
|
32,845
|
|
Net income per common share - basic
|
$ |
2.39
|
$ |
1.99
|
$ |
4.42
|
$ |
2.78
|
||||||||
Net income per common share - diluted
|
$ |
2.36
|
$ |
1.98
|
$ |
4.38
|
$ |
2.76
|
||||||||
Weighted-average number of common shares - Class A basic
|
8,648
|
8,667
|
8,627
|
8,690
|
||||||||||||
Weighted-average number of common shares - Class B basic
|
2,918
|
3,018
|
2,918
|
3,018
|
||||||||||||
Weighted-average number of common shares - diluted
|
11,684
|
11,787
|
11,660
|
11,809
|
||||||||||||
Net income
|
$ |
27,856
|
$ |
23,535
|
$ |
51,550
|
$ |
32,845
|
||||||||
Other comprehensive income:
|
|
|
|
|
||||||||||||
Foreign currency translation adjustment
|
5
|
7
|
42
|
18
|
||||||||||||
Comprehensive income
|
$ |
27,861
|
$ |
23,542
|
$ |
51,592
|
$ |
32,863
|
||||||||
|
|
Class A
|
|
|
Class A
Common |
|
|
Class B
|
|
|
Class B
|
|
|
Additional
|
|
|
Accumulated
Other |
|
|
|
|
|
Total
|
|
||||||||
|
|
Common
|
|
|
Stock,
|
|
|
Common
|
|
|
Common
|
|
|
Paid-in
|
|
|
Comprehensive
|
|
|
Retained
|
|
|
Stockholders’
|
|
||||||||
|
|
Shares
|
|
|
Par
|
|
|
Shares
|
|
|
Stock, Par
|
|
|
Capital
|
|
|
Loss, net of tax
|
|
|
Earnings
|
|
|
Equity
|
|
||||||||
Balance at December 29, 2018
|
8,580
|
$ |
86
|
2,918
|
$ |
29
|
$ |
405,711
|
$ |
(1,197
|
) | $ |
55,688
|
$ |
460,317
|
|||||||||||||||||
Net income
|
|
|
|
|
|
|
23,694
|
23,694
|
||||||||||||||||||||||||
Stock options exercised and restricted shares activities
|
|
|
54
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
3,704
|
|
|
|
|
|
|
|
|
|
|
|
3,704 |
|
|
Stock-based compensation expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,066
|
|
|
|
|
|
|
|
|
|
|
|
2,066
|
|
Currency translation adjustment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
37
|
|
|
|
|
|
|
|
37
|
|
Balance at March 30, 2019
|
|
|
8,634
|
|
|
$
|
86
|
|
|
|
2,918
|
|
|
$ | 29 |
|
|
$ | 411,481 |
|
|
$ | (1,160 |
)
|
|
$ | 79,382 |
|
|
$
|
489,818 |
|
Net income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
27,856
|
|
|
|
27,856
|
|
Stock options exercised and restricted shares activities
|
21
|
1
|
|
|
1,377
|
|
|
1,378
|
||||||||||||||||||||||||
Stock-based compensation expense
|
|
|
|
|
3,744 |
|
|
3,744
|
||||||||||||||||||||||||
Currency translation adjustment
|
|
|
|
|
|
5
|
|
5
|
||||||||||||||||||||||||
Balance at June 29, 2019
|
8,655
|
$ |
87
|
2,918
|
$ |
29
|
$ |
416,602
|
$ |
(1,155
|
) | $ |
107,238
|
$ |
522,801
|
|||||||||||||||||
|
|
|
|
|
Class A
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated
|
|
|
|
|
|
|
|
||||||||
|
|
Class A
|
|
|
Common
|
|
|
Class B
|
|
|
Class B
|
|
|
Additional
|
|
|
Other
|
|
|
|
|
|
Total
|
|
||||||||
|
|
Common
|
|
|
Stock,
|
|
|
Common
|
|
|
Common
|
|
|
Paid-in
|
|
|
Comprehensive
|
|
|
Retained
|
|
|
Stockholders’
|
|
||||||||
|
|
Shares
|
|
|
Par
|
|
|
Shares
|
|
|
Stock, Par
|
|
|
Capital
|
|
|
Loss, net of tax
|
|
|
Earnings
|
|
|
Equity
|
|
||||||||
Balance at December 30, 2017
|
8,603
|
$ |
86
|
3,018
|
$ |
30
|
$ |
372,590
|
$ |
(1,288
|
) | $ |
52,105
|
$ |
423,523
|
|||||||||||||||||
Net income
|
|
|
|
|
|
|
9,310
|
9,310
|
||||||||||||||||||||||||
Stock options exercised and restricted shares activities
|
188
|
2
|
|
|
20,232
|
|
|
20,234
|
||||||||||||||||||||||||
Stock-based compensation expense
|
|
|
|
|
1,491
|
|
|
1,491
|
||||||||||||||||||||||||
Repurchase of Class A Common Stock
|
(91
|
) |
(1
|
) |
|
|
|
|
(16,638
|
) |
(16,639
|
) | ||||||||||||||||||||
Currency translation adjustment
|
|
|
|
|
|
(11
|
) |
|
(11
|
) | ||||||||||||||||||||||
One time effect of adoption of ASU 2014-09, Revenue from Contracts with Customers, net of tax of $
329
|
|
|
|
|
|
|
(982
|
) |
(982
|
) | ||||||||||||||||||||||
One time effect of adoption of ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income
|
|
|
|
|
|
(210
|
) |
210
|
—
|
|||||||||||||||||||||||
Balance at March 31, 2018
|
|
|
8,700
|
|
|
$
|
87
|
|
|
|
3,018
|
|
|
$
|
30
|
|
|
$
|
394,313
|
|
|
$
|
(1,509
|
)
|
|
$
|
44,005
|
|
|
$
|
436,926
|
|
Net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
23,535
|
|
|
|
23,535
|
|
Stock options exercised and restricted shares activities |
|
|
32
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
2,224
|
|
|
|
|
|
|
|
|
|
|
|
2,224
|
|
Stock-based compensation expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,079
|
|
|
|
|
|
|
|
|
|
|
|
3,079
|
|
Repurchase of Class A Common Stock |
|
|
(97
|
)
|
|
|
(1
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(23,084
|
)
|
|
|
(23,085
|
)
|
Currency translation adjustment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(7
|
)
|
|
|
|
|
|
|
(7
|
)
|
Balance at June 30, 2018
|
8,635
|
$ |
86
|
3,018
|
$ |
30
|
$ |
399,616
|
$ |
(1,516
|
) | $ |
44,456
|
$ |
442,672
|
|||||||||||||||||
|
Twenty-six weeks ended
|
|||||||
|
June 29,
2019
|
June 30,
2018
|
||||||
Cash flows provided by operating activities:
|
|
|
||||||
Net income
|
$ |
51,550
|
$ |
32,845
|
||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
||||||
Depreciation and amortization
|
26,089
|
26,011
|
||||||
Impairment of assets
|
|
|
243
|
|
|
|
517 |
|
Loss on disposal of property, plant and equipment
|
104
|
26
|
||||||
Lease expense
|
1,789
|
—
|
||||||
Bad debt (recovery) expense
|
(1
|
) |
27
|
|||||
Stock-based compensation expense
|
5,810
|
4,570
|
||||||
Deferred income taxes
|
6,283
|
775
|
||||||
Changes in operating assets and liabilities:
|
|
|
||||||
Accounts receivable
|
(35,346
|
) |
(21,651
|
) | ||||
Inventories
|
(14,942
|
) |
(18,636
|
) | ||||
Prepaid expenses, income tax receivable and other assets
|
(10,962
|
) |
217
|
|||||
Accounts payable
|
26,320
|
20,563
|
||||||
Accrued expenses and other current liabilities
|
(101
|
) |
8,721
|
|||||
Net lease liabilities
|
(1,391
|
) |
—
|
|||||
Other liabilities
|
85
|
(244
|
) | |||||
Net cash provided by operating activities
|
55,530
|
53,741
|
||||||
Cash flows used in investing activities:
|
|
|
||||||
Purchases of property, plant and equipment
|
(44,578
|
) |
(25,470
|
) | ||||
Proceeds from disposal of property, plant and equipment
|
179
|
2
|
||||||
Cash paid for merger
|
|
|
(158,402)
|
|
|
|
—
|
|
Change in restricted cash
|
(188
|
) |
98
|
|||||
Net cash used in investing activities
|
(202,989
|
) |
(25,370
|
) | ||||
Cash flows provided by (used in) financing activities:
|
|
|
||||||
Repurchase of Class A Common Stock
|
—
|
(39,725
|
) | |||||
Proceeds from exercise of stock options
|
4,146
|
21,529
|
||||||
Net cash paid on note payable and capital lease
|
(115
|
) |
(78
|
) | ||||
Cash borrowed on line of credit
|
|
|
86,000
|
|
|
|
—
|
|
Cash paid on line of credit
|
|
|
(48,500 | ) |
|
|
—
|
|
Net proceeds from sale of investment shares
|
546
|
445
|
||||||
Net cash provided (used in) by financing activities
|
42,077
|
(17,829
|
) | |||||
Change in cash and cash equivalents
|
(105,382
|
) |
10,542
|
|||||
Cash and cash equivalents at beginning of year
|
108,399
|
65,637
|
||||||
Cash and cash equivalents at end of period
|
$ |
3,017
|
$ |
76,179
|
||||
Supplemental disclosure of cash flow information:
|
|
|
||||||
Income taxes paid
|
$
|
13,697
|
$
|
3,355
|
||||
Cash paid for amounts included in measurement of lease liabilities
|
$
|
1,976
|
$
|
—
|
||||
Right-of-use assets obtained in exchange for operating lease obligations
|
|
$
|
38,524
|
|
|
$ |
—
|
|
Right-of-use
assets obtained in exchange for capital lease obligations
|
$
|
2,837
|
$ |
—
|
||||
Decrease in accounts receivable for ASU
2014-09
adoption
|
$
|
—
|
$
|
(1,310
|
)
|
|||
Increase in accounts payable for purchase of property, plant and equipment
|
$ |
1,484
|
$ |
774
|
A.
|
Organization and Basis of Presentation
|
B.
|
Dogfish Head Brewery Merger
|
C.
|
Recent Accounting Pronouncements
|
D.
|
Revenue Recognition
|
E.
|
Inventories
|
|
|
June 29,
|
|
|
December 29,
|
|
||
|
2019
|
2018
|
||||||
|
(in thousands)
|
|||||||
Current inventory:
|
|
|
||||||
Raw materials
|
$ |
46,194
|
$ |
44,655
|
||||
Work in process
|
10,191
|
8,252
|
||||||
Finished goods
|
23,976
|
17,342
|
||||||
Total current inventory
|
80,361
|
70,249
|
||||||
Long term inventory
|
16,449
|
11,619
|
||||||
Total inventory
|
$ |
96,810
|
$ |
81,868
|
||||
F.
|
Leases
|
|
Classification
|
Leases
|
||||
|
|
(in thousands)
|
||||
Right-of-use assets
|
|
|
||||
Operating lease assets
|
Operating right-of-use assets
|
$ |
36,779
|
|||
Capital lease assets
|
Property, plant and equipment, net
|
2,794
|
||||
Lease Liabilities
|
|
|
||||
Current
|
|
|
||||
Operating lease liabilities
|
Current operating lease liabilities
|
2,315
|
||||
Capital lease liabilities
|
Accrued expenses and other current liabilities
|
537
|
||||
Non-current
|
|
|
||||
Operating lease liabilities
|
Non-current operating lease liabilities
|
39,239
|
||||
Capital lease liabilities
|
Other liabilities
|
2,313
|
|
Operating
Leases |
Capital
Leases |
Weighted-Average Remaining Term in Years
|
|||||||||||||
|
Operating Leases
|
Capital Leases
|
||||||||||||||
|
(in thousands)
|
|
|
|||||||||||||
2019
|
$ |
2,557
|
$ |
309
|
|
|
||||||||||
2020
|
2,268
|
626
|
|
|
||||||||||||
2021
|
5,379
|
626
|
|
|
||||||||||||
2022
|
5,083
|
627
|
|
|
||||||||||||
2023
|
4,965
|
627
|
|
|
||||||||||||
After 2023
|
30,100
|
288
|
|
|
||||||||||||
Total lease payments
|
50,352
|
3,103
|
|
|
||||||||||||
Less imputed interest (based on 3.5% weighted-
average discount rate) |
(8,798
|
) |
(253
|
) |
|
|
||||||||||
Present value of lease liability
|
$ |
41,554
|
$ |
2,850
|
10.1
|
4.97
|
||||||||||
|
Leases
|
|||
|
(in thousands)
|
|||
2019
|
$ |
4,446
|
||
2020
|
4,530
|
|||
2021
|
4,370
|
|||
2022
|
3,559
|
|||
2023
|
1,672
|
|||
Thereafter
|
7,582
|
|||
Total
|
$ |
26,159
|
||
G.
|
Net Income per Share
|
|
Thirteen weeks ended
|
Twenty-six weeks ended
|
||||||||||||||
|
June 29,
2019
|
June 30,
2018
|
June 29,
2019
|
June 30,
2018
|
||||||||||||
|
(in thousands, except per share data)
|
(in thousands, except per share data)
|
||||||||||||||
Net income
|
$ |
27,856
|
$ |
23,535
|
$ |
51,550
|
$ |
32,845
|
||||||||
Allocation of net income for basic:
|
|
|
|
|
||||||||||||
Class A Common Stock
|
$ |
20,639
|
$ |
17,290
|
$ |
38,161
|
$ |
24,187
|
||||||||
Class B Common Stock
|
6,964
|
6,020
|
12,908
|
8,400
|
||||||||||||
Unvested participating shares
|
253
|
225
|
481
|
258
|
||||||||||||
|
$ |
27,856
|
$ |
23,535
|
$ |
51,550
|
$ |
32,845
|
||||||||
Weighted average number of shares for basic:
|
|
|
|
|
||||||||||||
Class A Common Stock
|
8,648
|
8,667
|
8,627
|
8,690
|
||||||||||||
Class B Common Stock*
|
2,918
|
3,018
|
2,918
|
3,018
|
||||||||||||
Unvested participating shares
|
106
|
112
|
109
|
93
|
||||||||||||
|
11,672
|
11,797
|
11,654
|
11,801
|
||||||||||||
Net income per share for basic:
|
|
|
|
|
||||||||||||
Class A Common Stock
|
$ |
2.39
|
$ |
1.99
|
$ |
4.42
|
$ |
2.78
|
||||||||
Class B Common Stock
|
$ |
2.39
|
$ |
1.99
|
$ |
4.42
|
$ |
2.78
|
* | Change in Class B Common Stock resulted from the conversion of 100,000 shares to Class A Common Stock on November 1, 2018 with the ending number of shares reflecting the weighted average for the period. |
|
Thirteen weeks ended
|
|||||||||||||||||||||||
|
June 29, 2019
|
June 30, 2018
|
||||||||||||||||||||||
|
Earnings to
Common Shareholders |
Common Shares
|
EPS
|
Earnings to
Common Shareholders |
Common Shares
|
EPS
|
||||||||||||||||||
|
(in thousands, except per share data)
|
|||||||||||||||||||||||
As reported - basic
|
$ |
20,639
|
8,648
|
$ |
2.39
|
$ |
17,290
|
8,667
|
$ |
1.99
|
||||||||||||||
Add: effect of dilutive potential common shares
|
|
|
|
|
|
|
||||||||||||||||||
Share-based awards
|
—
|
118
|
|
—
|
102
|
|
||||||||||||||||||
Class B Common Stock
|
6,964
|
2,918
|
|
6,020
|
3,018
|
|
||||||||||||||||||
Net effect of unvested participating shares
|
2
|
—
|
|
2
|
—
|
|
||||||||||||||||||
Net income per common share - diluted
|
$ |
27,605
|
11,684
|
$ |
2.36
|
$ |
23,312
|
11,787
|
$ |
1.98
|
||||||||||||||
|
Twenty-six weeks ended
|
|||||||||||||||||||||||
|
June 29, 2019
|
June 30, 2018
|
||||||||||||||||||||||
|
Earnings to Common Shareholders
|
Common Shares
|
EPS
|
Earnings to Common Shareholders
|
Common Shares
|
EPS
|
||||||||||||||||||
|
(in thousands, except per share data)
|
|||||||||||||||||||||||
As reported - basic
|
$ |
38,161
|
8,627
|
$ |
4.42
|
$ |
24,187
|
8,690
|
$ |
2.78
|
||||||||||||||
Add: effect of dilutive potential common shares
|
|
|
|
|
|
|
||||||||||||||||||
Share-based awards
|
—
|
115
|
|
—
|
101
|
|
||||||||||||||||||
Class B Common Stock
|
12,908
|
2,918
|
|
8,400
|
3,018
|
|
||||||||||||||||||
Net effect of unvested participating shares
|
5
|
—
|
|
2
|
—
|
|
||||||||||||||||||
Net income per common share - diluted
|
$ |
51,074
|
11,660
|
$ |
4.38
|
$ |
32,589
|
11,809
|
$ |
2.76
|
||||||||||||||
H.
|
Comprehensive Income or Loss
|
I.
|
Commitments and Contingencies
|
J.
|
Income Taxes
|
|
Thirteen weeks ended
|
|||||||
|
June 29,
2019
|
June 30,
2018
|
||||||
|
(in thousands)
|
|||||||
Summary of income tax provision
|
|
|
||||||
Tax provision based on net income
|
$ |
10,499
|
$ |
8,727
|
||||
Benefit of ASU 2016-09
|
(253
|
) |
(1,128
|
) | ||||
Total income tax provision
|
$ |
10,246
|
$ |
7,599
|
||||
|
Twenty-six weeks ended
|
|||||||
|
June 29,
2019
|
June 30,
2018
|
||||||
|
(in thousands)
|
|||||||
Summary of income tax provision
|
|
|
||||||
Tax provision based on net income
|
$
|
18,408
|
$
|
11,298
|
||||
Benefit of ASU 2016-09
|
(2,028
|
)
|
(3,851
|
)
|
||||
Total income tax provision
|
$
|
16,380
|
$
|
7,447
|
K.
|
Revolving Line of Credit
|
L.
|
Fair Value Measures
|
• | Level 1 — Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. |
• | Level 2 — Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. If the asset or liability has a specified (contractual) term, a Level 2 input must be observable for substantially the full term of the asset or liability. |
• | Level 3 — Level 3 inputs are unobservable inputs for the asset or liability in which there is little, if any, market activity for the asset or liability at the measurement date. |
M.
|
Common Stock and Stock-Based Compensation
|
|
Shares
|
Weighted-Average
Exercise Price |
Weighted-Average
Remaining
Contractual Term in Years |
Aggregate Intrinsic Value
(in thousands)
|
||||||||||||
Outstanding at December 29, 2018
|
366,829
|
$ |
155.75
|
|
|
|||||||||||
Granted
|
31,286
|
313.56
|
|
|
||||||||||||
Forfeited
|
—
|
—
|
|
|||||||||||||
Expired
|
—
|
—
|
|
|||||||||||||
Exercised
|
(43,866
|
) |
94.50
|
|
|
|||||||||||
Outstanding at June 29, 2019
|
354,249
|
$ |
177.28
|
5.64
|
$ |
71,021
|
||||||||||
Exercisable at June 29, 2019
|
131,684
|
$ |
134.82
|
3.42
|
$ |
31,991
|
||||||||||
Vested and expected to vest at June 29, 2019
|
325,498
|
$ |
175.05
|
5.53
|
$ |
65,983
|
||||||||||
|
Number of Shares
|
Weighted Average Fair Value
|
||||||
Non-vested at December 29, 2018
|
126,720
|
$ |
192.74
|
|||||
Granted
|
29,504
|
$ |
266.54
|
|||||
Vested
|
(31,496
|
) | $ |
187.25
|
||||
Forfeited
|
(1,110
|
) | $ |
144.92
|
||||
Non-vested at June 29, 2019
|
123,618
|
$ |
212.18
|
N.
|
Employee Retirement Plans
|
O.
|
Subsequent Events
|
|
Thirteen Weeks Ended
(in thousands)
|
|
|
|
||||||||||||||||||||||||||||||||
|
June 29,
2019
|
June 30,
2018
|
Amount
change |
% change
|
Per barrel
change |
|||||||||||||||||||||||||||||||
Barrels sold
|
1,374
|
1,177
|
198
|
16.8
|
% |
|
||||||||||||||||||||||||||||||
|
|
Per barrel
|
% of net
revenue |
|
Per barrel
|
% of net
revenue |
|
|
|
|||||||||||||||||||||||||||
Net revenue
|
$ |
318,407
|
$ |
231.68
|
100.0
|
% | $ |
273,100
|
$ |
232.09
|
100.0
|
% | $ |
45,307
|
16.6
|
% | $ |
(0.41
|
) | |||||||||||||||||
Cost of goods
|
159,405
|
115.99
|
50.1
|
% |
131,130
|
111.44
|
48.0
|
% |
28,275
|
21.6
|
% |
4.55
|
||||||||||||||||||||||||
Gross profit
|
159,002
|
115.69
|
49.9
|
% |
141,970
|
120.65
|
52.0
|
% |
17,032
|
12.0
|
% |
(4.96
|
) | |||||||||||||||||||||||
Advertising, promotional and selling expenses
|
94,079
|
68.45
|
29.5
|
% |
86,510
|
73.52
|
31.7
|
% |
7,569
|
8.7
|
% |
(5.07
|
) | |||||||||||||||||||||||
General and administrative expenses
|
26,748
|
19.46
|
8.4
|
% |
23,879
|
20.29
|
8.7
|
% |
2,869
|
12.0
|
% |
(0.83
|
) | |||||||||||||||||||||||
Impairment of assets
|
243
|
0.18
|
0.1
|
% |
517
|
0.44
|
0.2
|
% |
(274
|
) |
0.0
|
% |
(0.26
|
) | ||||||||||||||||||||||
Total operating expenses
|
121,070
|
88.09
|
38.0
|
% |
110,906
|
94.25
|
40.6
|
% |
10,164
|
9.2
|
% |
(6.16
|
) | |||||||||||||||||||||||
Operating income
|
37,932
|
27.60
|
11.9
|
% |
31,064
|
26.40
|
11.4
|
% |
6,868
|
22.1
|
% |
1.20
|
||||||||||||||||||||||||
Other income
|
170
|
0.12
|
0.1
|
% |
70
|
0.06
|
0.0
|
% |
100
|
142.9
|
% |
0.06
|
||||||||||||||||||||||||
Income before income tax expense
|
38,102
|
27.72
|
12.0
|
% |
31,134
|
26.46
|
11.4
|
% |
6,968
|
22.4
|
% |
1.26
|
||||||||||||||||||||||||
Income tax expense
|
10,246
|
7.46
|
3.2
|
% |
7,599
|
6.46
|
2.8
|
% |
2,647
|
34.8
|
% |
1.00
|
||||||||||||||||||||||||
Net income
|
$ |
27,856
|
$ |
20.27
|
8.7
|
% | $ |
23,535
|
$ |
20.00
|
8.6
|
% | $ |
4,321
|
18.4
|
% | $ |
0.27
|
||||||||||||||||||
|
Twenty-six
Weeks Ended
(in thousands)
|
|
|
|
||||||||||||||||||||||||||||||||
|
June 29,
2019
|
June 30,
2018
|
Amount
change |
% change
|
Per barrel
change |
|||||||||||||||||||||||||||||||
Barrels sold
|
2,451
|
1,989
|
462
|
23.2
|
% |
|
||||||||||||||||||||||||||||||
|
|
Per barrel
|
% of net
revenue |
|
Per barrel
|
% of net
revenue |
|
|
|
|||||||||||||||||||||||||||
Net revenue
|
$ |
570,058
|
$ |
232.60
|
100.0
|
% | $ |
463,557
|
$ |
233.02
|
100.0
|
% | $ |
106,501
|
23.0
|
% | $ |
(0.42)
|
||||||||||||||||||
Cost of goods
|
286,516
|
116.90
|
50.3
|
% |
225,490
|
113.35
|
48.6
|
% |
61,026
|
27.1
|
% |
3.55
|
||||||||||||||||||||||||
Gross profit
|
283,542
|
115.69
|
49.7
|
% |
238,067
|
119.67
|
51.4
|
% |
45,475
|
19.1
|
% |
(3.98)
|
||||||||||||||||||||||||
Advertising, promotional and selling expenses
|
165,802
|
67.65
|
29.1
|
% |
154,031
|
77.43
|
33.2
|
% |
11,771
|
7.6
|
% |
(9.78)
|
||||||||||||||||||||||||
General and administrative expenses
|
50,122
|
20.45
|
8.8
|
% |
43,217
|
21.72
|
9.3
|
% |
6,905
|
16.0
|
% |
(1.27)
|
||||||||||||||||||||||||
Impairment of assets
|
243
|
0.10
|
0.0
|
% |
517
|
0.26
|
0.1
|
% |
(274)
|
-53.0
|
% |
(0.16)
|
||||||||||||||||||||||||
Total operating expenses
|
216,167
|
88.20
|
37.9
|
% |
197,765
|
99.41
|
42.7
|
% |
18,402
|
9.3
|
% |
(11.21)
|
||||||||||||||||||||||||
Operating income
|
67,375
|
27.49
|
11.8
|
% |
40,302
|
20.26
|
8.7
|
% |
27,073
|
67.2
|
% |
7.23
|
||||||||||||||||||||||||
Other income (expense), net
|
555
|
0.23
|
0.1
|
% |
(10)
|
(0.01)
|
0.0
|
% |
565
|
-5650.0
|
% |
0.24
|
||||||||||||||||||||||||
Income before income tax expense
|
67,930
|
27.72
|
11.9
|
% |
40,292
|
20.25
|
8.7
|
% |
27,638
|
68.6
|
% |
7.47
|
||||||||||||||||||||||||
Income tax expense
|
16,380
|
6.68
|
2.9
|
% |
7,447
|
3.74
|
1.6
|
% |
8,933
|
120.0
|
% |
2.94
|
||||||||||||||||||||||||
Net income
|
$ |
51,550
|
$ |
21.03
|
9.0
|
% | $ |
32,845
|
$ |
16.51
|
7.1
|
% | $ |
18,705
|
56.9
|
% | $ |
4.52
|
||||||||||||||||||
LIQUIDITY
|
AND CAPITAL RESOURCES
|
Item 3.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
Item 4.
|
CONTROLS AND PROCEDURES
|
Item 1.
|
LEGAL PROCEEDINGS
|
Item 1A.
|
RISK FACTORS
|
Item 2.
|
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
|
Period
|
Total Number of Shares
Purchased |
Average
Price Paid per Share |
Total Number of Shares Purchased
as Part of Publicly
Announced Plans or Programs
|
Approximate Dollar Value of Shares that
May Yet be Purchased
Under the Plans or Programs
|
||||||||||||
December 30, 2018 to February 2, 2019
|
116
|
$ |
127.05
|
—
|
$ |
90,335
|
||||||||||
February 3, 2019 to March 2, 2019
|
219
|
115.78
|
—
|
90,335
|
||||||||||||
March 3, 2019 to March 30, 2019
|
13
|
187.54
|
—
|
90,335
|
||||||||||||
March 31, 2019 to May 4, 2019
|
107
|
182.03
|
—
|
90,335
|
||||||||||||
May 5, 2019 to June 1, 2019
|
79
|
175.67
|
—
|
90,335
|
||||||||||||
June 2, 2019 to June 29, 2019
|
32
|
187.54
|
—
|
90,335
|
||||||||||||
Total
|
566
|
$ |
144.68
|
—
|
90,335
|
|||||||||||
Item 3.
|
DEFAULTS UPON SENIOR SECURITIES
|
Not | Applicable |
Item 4.
|
MINE SAFETY DISCLOSURES
|
Not | Applicable |
Item 5.
|
OTHER INFORMATION
|
Not | Applicable |
Item 6.
|
EXHIBITS
|
Exhibit No.
|
Title
|
|||
11.1
|
The information required by Exhibit 11 has been included in Note G of the notes to the consolidated financial statements.
|
|||
*10.1
|
||||
*10.2
|
||||
*10.3
|
||||
*10.4
|
||||
*10.5
|
||||
*31.1
|
||||
*31.2
|
||||
*32.1
|
||||
*32.2
|
||||
*101.INS
|
XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
|
|||
*101.SCH
|
XBRL Taxonomy Extension Schema Document
|
|||
*101.CAL
|
XBRL Taxonomy Calculation Linkbase Document
|
|||
*101.LAB
|
XBRL Taxonomy Label Linkbase Document
|
|||
*101.PRE
|
XBRL Taxonomy Presentation Linkbase Document
|
|||
*101.DEF
|
XBRL Definition Linkbase Document
|
* | Filed with this report |
|
|
THE BOSTON BEER COMPANY, INC.
|
||
|
|
(Registrant)
|
||
Date: July 25, 2019
|
|
/s/ David A. Burwick
|
||
|
|
David A. Burwick
|
||
|
|
President and Chief Executive Officer
|
||
|
|
(principal executive officer)
|
||
Date: July 25, 2019
|
|
/s/ Frank H. Smalla
|
||
|
|
Frank H. Smalla
|
||
|
|
Chief Financial Officer
|
||
|
|
(principal financial officer)
|
If to the Company: |
The Boston Beer Company, Inc.
One Design Center Place, Suite 850
Boston, MA 02210
Attention: Tara L. Heath, Vice President, Legal and Deputy General Counsel
E-mail:
Tara.Heath@bostonbeer.com
|
|
with a copy to (which shall
not constitute notice):
|
Nixon Peabody LLP
Exchange Place
53 State Street
Boston, MA 02109
Attention: Frederick H. Grein, Jr.
E-mail:
fgrein@nixonpeabody.com
|
|
If to the Holders: |
To the Holder Representative
c/o Sageworth
1861 Santa Barbara Drive
Lancaster, Pennsylvania 17601
Attention: Kyle Groft
E-mail:
kgroft@sageworth.com
|
with a copy to (which shall
not constitute notice):
|
McDermott Will & Emery LLP
500 North Capitol Street, N.W.
Washington, D.C. 20001
Attention: Marc Sorini and Thomas P. Conaghan
E-mail:
msorini@mwe.com; tconaghan@mwe.com
|
By: |
/s/ Samuel A. Calagione, Jr.
|
|||
Name: | Samuel A. Calagione, Jr. | |||
Title: |
Co-Trustee
|
|||
THE CALAGIONE DYNASTY TRUST DATED
|
||||
NOVEMBER 12, 2018
|
||||
By: |
/s/ David K. Kruft
|
|||
Name: | David K. Kruft | |||
Title: | Vice President | |||
THE CALAGIONE FAMILY TRUST DATED
|
||||
DECEMBER 14, 2016
|
||||
By: |
/s/ David K. Kruft
|
|||
Name: | David K. Kruft | |||
Title: | Vice President | |||
By: |
/s/ Samuel A. Calagione, III
|
|||
Name: | Samuel A. Calagione, III | |||
Title: |
Co-Trustee
|
|||
AMENDMENT NUMBER ONE AND
|
||||
RESTATEMENT OF REVOCABLE TRUST
|
||||
OF SAMUEL A. CALAGIONE III DATED
|
||||
NOVEMBER 12, 2018
|
||||
By: |
/s/ Samuel A. Calagione, III
|
|||
Name: | Samuel A. Calagione, III | |||
Title: | Trustee | |||
The Holder Representative:
|
SAMUEL A. CALAGIONE, III
|
|||
/s/ Samuel A. Calagione, III
|
HOLDER’S NAME
|
HOLDER’S ADDRESS
|
TOTAL NUMBER OF REGISTRABLE
SECURITIES HELD BY HOLDER |
||
SCIV Irrevocable Trust U/A/D 12/23/07
a/k/a Samuel A Calagione III and Mariah Calagione Irrevocable Trust f/b/o Samuel A Calagione IV dated December 23, 2007
|
c/o Sageworth
1861 Santa Barbara Drive
Lancaster, Pennsylvania 17601
Attention: Kyle Groft
|
35,719 | ||
GCC Irrevocable Trust U/A/D 12/23/07
a/k/a Samuel A Calagione III and Mariah Calagione Irrevocable Trust f/b/o Grier C Calagione dated December 23, 2007
|
c/o Sageworth
1861 Santa Barbara Drive
Lancaster, Pennsylvania 17601
Attention: Kyle Groft
|
35,719 | ||
The Calagione Dynasty Trust dated November 12, 2018 |
c/o Sageworth
1861 Santa Barbara Drive
Lancaster, Pennsylvania 17601
Attention: Kyle Groft
|
150,417 | ||
The Calagione Family Trust dated December 14, 2016 |
c/o Sageworth
1861 Santa Barbara Drive
Lancaster, Pennsylvania 17601
Attention: Kyle Groft
|
204,266 | ||
Amendment Number One and Restatement of Revocable Trust of Samuel A. Calagione III dated November 12, 2018 |
c/o Sageworth
1861 Santa Barbara Drive
Lancaster, Pennsylvania 17601
Attention: Kyle Groft
|
943 |
The Founders: | ||||
/s/ Samuel Calagione III
|
||||
Samuel A. Calagione III | ||||
/s/ Mariah D. Calagione
|
||||
Mariah D. Calagione | ||||
Boston Beer: |
THE BOSTON BEER COMPANY, INC.
|
|||
By: |
/s/ David A. Burwick
|
|||
Name: | David A. Burwick | |||
Title: | President & Chief Executive Officer |
By: | /s/ David A. Burwick | X | /s/ Samuel A. Calagione | |||||
David A. Burwick, President & CEO
|
Signature of Mr. Calagione
|
|||||||
July 3, 2019 | Sam Calagione | |||||||
Date
|
Print Name of Mr. Calagione
|
|||||||
July 3, 2019 | ||||||||
Date
|
||||||||
For purposes of Section 2(b) only: | /s/ Jim Koch | |||||||
Signature of Mr. Koch
|
||||||||
July 3, 2019 | ||||||||
Date
|
• |
Project Extreme Brewing
|
• |
Off-Centered
Leadership
|
• |
He Said Beer, She Said Wine
|
• |
Extreme Brewing: An Introduction to Brewing Craft Beer at Home
|
• |
Brewing Up a Business
|
By:
|
/s/ David A. Burwick
|
X
|
/s/ George J. Pastrana
|
|||||
David A. Burwick, President & CEO
|
|
Signature of Coworker
|
||||||
July 16, 2019
|
George J. Pastrana
|
|||||||
Date
|
Print Name of Coworker
|
|||||||
July 16, 2019 | ||||||||
Date
|
• |
50% on the third anniversary of the Grant Date;
|
• |
25% on the fourth anniversary of the Grant Date;
|
• |
25% on the fifth anniversary of the Grant Date
|
(a) |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b) |
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c) |
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d) |
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
(a) |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b) |
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
/s/ David A. Burwick
|
David A. Burwick
|
President and Chief Executive Officer
|
[Principal Executive Officer]
|
(a) |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b) |
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c) |
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d) |
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
(a) |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b) |
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
/s/ Frank H. Smalla
|
Frank H. Smalla
|
Chief Financial Officer
|
[Principal Financial Officer]
|
/s/ David A. Burwick
|
David A. Burwick |
President and Chief Executive Officer |
/s/ Frank H. Smalla
|
Frank H. Smalla |
Chief Financial Officer |
1 Year Boston Beer Chart |
1 Month Boston Beer Chart |
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