We could not find any results for:
Make sure your spelling is correct or try broadening your search.
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 | |
---|---|---|---|---|---|---|---|---|
-1.84 | -0.66% | 276.57 | 280.62 | 276.00 | 277.99 | 286,140 | 00:46:57 |
☒
|
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.
0
1 par value
|
SAM
|
New York Stock Exchange
|
||
Class B Common Stock, $0.
0
1 par value
|
Not applicable
|
Unregistered
|
Large accelerated filer
|
☒
|
Accelerated filer
|
☐
|
|||
Non-accelerated
filer
|
☐
|
Small
er
reporting company
|
☐
|
|||
Emerging growth company
|
☐
|
|
|
Class A Common Stock, $.01 par value
|
9,216,022
|
|
||
Class B Common Stock, $.01 par value
|
2,817,983
|
|
||
(Title of each class)
|
|
|
(Number of shares
|
)
|
PART I.
|
|
FINANCIAL INFORMATION
|
|
PAGE
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Item 1.
|
|
|
|
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7-
19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Item 2.
|
|
|
|
|
20-
26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Item 3.
|
|
|
|
|
26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Item 4.
|
|
|
|
|
27
|
|
|
|
|
|
|
|
|
|||||
PART II.
|
|
OTHER INFORMATION
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Item 1.
|
|
|
|
|
27
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Item 1A.
|
|
|
|
|
27
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Item 2.
|
|
|
|
|
28
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Item 3.
|
|
|
|
|
28
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Item 4.
|
|
|
|
|
28
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Item 5.
|
|
|
|
|
28
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Item 6.
|
|
|
|
|
29
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
30
|
|
|
September 28,
|
|
December 29,
|
|
||||
|
2019
|
|
2018
|
|
||||
Assets
|
|
|
|
|
|
|
||
Current Assets:
|
|
|
||||||
Cash and cash equivalents
|
$ |
27,128
|
$ |
108,399
|
||||
Accounts receivable
|
68,687
|
34,073
|
||||||
Inventories
|
92,632
|
70,249
|
||||||
Prepaid expenses and other current assets
|
14,965
|
13,136
|
||||||
Income tax receivable
|
5,980
|
5,714
|
||||||
Total current assets
|
209,392
|
231,571
|
||||||
Property, plant and equipment, net
|
521,316
|
389,789
|
||||||
Operating
right-of-use
assets
|
38,943
|
—
|
||||||
Goodwill
|
112,529
|
3,683
|
||||||
Intangible assets
|
104,335
|
2,099
|
||||||
Other assets
|
29,661
|
12,709
|
||||||
Total assets
|
$ |
1,016,176
|
$ |
639,851
|
||||
Liabilities and Stockholders’ Equity
|
|
|
|
|
|
|
||
Current Liabilities:
|
|
|
||||||
Accounts payable
|
$ |
71,035
|
$ |
47,102
|
||||
Accrued expenses and other current liabilities
|
92,850
|
73,412
|
||||||
Current operating lease liabilities
|
2,599
|
—
|
||||||
Total current liabilities
|
166,484
|
120,514
|
||||||
Deferred income taxes, net
|
81,653
|
49,169
|
||||||
Non-current
operating lease liabilities
|
41,215
|
—
|
||||||
Other liabilities
|
7,844
|
9,851
|
||||||
Total liabilities
|
297,196
|
179,534
|
||||||
Commitments and Contingencies (See Note
J
)
|
|
|
||||||
Stockholders’ Equity:
|
|
|
||||||
Class A Common Stock, $.01 par value; 22,700,000 shares authorized; 9,216,022 and 8,580,593 issued and outstanding as of September 28, 2019 and December 29, 2018, respectively
|
92
|
86
|
||||||
Class B Common Stock, $.01 par value; 4,200,000 shares authorized; 2,817,983 and 2,917,983 issued and outstanding as of September 28, 2019 and December 29, 2018, respectively
|
28
|
29
|
||||||
Additional
paid-in
capital
|
568,047
|
405,711
|
||||||
Accumulated other comprehensive loss, net of tax
|
(1,154
|
) |
(1,197
|
) | ||||
Retained earnings
|
151,967
|
55,688
|
||||||
Total stockholders’ equity
|
718,980
|
460,317
|
||||||
Total liabilities and stockholders’ equity
|
$ |
1,016,176
|
$ |
639,851
|
||||
|
Thirteen weeks ended
|
Thirty-nine weeks ended
|
||||||||||||||
|
September 28,
|
|
September 29,
|
|
September 28,
|
|
September 29,
|
|
||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
||||||||
Revenue
|
$ |
402,691
|
$ |
326,852
|
$ |
1,008,893
|
$ |
818,257
|
||||||||
Less excise taxes
|
24,225
|
19,982
|
60,369
|
47,830
|
||||||||||||
Net revenue
|
378,466
|
306,870
|
948,524
|
770,427
|
||||||||||||
Cost of goods sold
|
190,631
|
149,643
|
477,147
|
375,133
|
||||||||||||
Gross profit
|
187,835
|
157,227
|
471,377
|
395,294
|
||||||||||||
Operating expenses:
|
|
|
|
|
||||||||||||
Advertising, promotional and selling expenses
|
96,570
|
87,765
|
262,372
|
241,796
|
||||||||||||
General and administrative expenses
|
31,429
|
22,734
|
81,552
|
65,951
|
||||||||||||
Impairment of assets
|
—
|
—
|
243
|
517
|
||||||||||||
Total operating expenses
|
127,999
|
110,499
|
344,167
|
308,264
|
||||||||||||
Operating income
|
59,836
|
46,728
|
127,210
|
87,030
|
||||||||||||
Other income (expense), net:
|
|
|
|
|
||||||||||||
Interest (expense) income, net
|
(138
|
) |
343
|
472
|
821
|
|||||||||||
Other income (expense), net
|
(764
|
) |
(51
|
) |
(818
|
) |
(539
|
) | ||||||||
Total other income (expense), net
|
(902
|
) |
292
|
(346
|
) |
282
|
||||||||||
Income before income tax provision
|
58,934
|
47,020
|
126,864
|
87,312
|
||||||||||||
Income tax provision
|
14,205
|
9,013
|
30,585
|
16,460
|
||||||||||||
Net income
|
$ |
44,729
|
$ |
38,007
|
$ |
96,279
|
$ |
70,852
|
||||||||
Net income per common share
—
basic
|
$ |
3.70
|
$ |
3.25
|
$ |
8.16
|
$ |
6.02
|
||||||||
Net income per common share
—
diluted
|
$ |
3.65
|
$ |
3.21
|
$ |
8.07
|
$ |
5.96
|
||||||||
Weighted-average number of common shares
—
Class A basic
|
9,136
|
8,557
|
8,797
|
8,646
|
||||||||||||
Weighted-average number of common shares
—
Class B basic
|
2,862
|
3,018
|
2,899
|
3,018
|
||||||||||||
Weighted-average number of common shares
—
diluted
|
12,150
|
11,702
|
11,823
|
11,773
|
||||||||||||
Net income
|
$ |
44,729
|
$ |
38,007
|
$ |
96,279
|
$ |
70,852
|
||||||||
Other comprehensive income:
|
|
|
|
|
||||||||||||
Foreign currency translation adjustment
|
1
|
(13
|
) |
43
|
4
|
|||||||||||
Comprehensive income
|
$ |
44,730
|
$ |
37,994
|
$ |
96,322
|
$ |
70,856
|
||||||||
|
|
Class A
Common Shares |
|
|
Class A
Common Stock, Par |
|
|
Class B
Common Shares |
|
|
Class B
Common Stock, Par |
|
|
Additional
Paid-in
Capital |
|
|
Accumulated
Other Comprehensive Loss, net of tax |
|
|
Retained
Earnings |
|
|
Total
Stockholders’ 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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
44,729
|
|
|
|
44,729
|
|
Stock options exercised and restricted shares activities
|
|
|
31
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
3,473
|
|
|
|
|
|
|
|
|
|
|
|
3,473
|
|
Stock-based compensation expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,233
|
|
|
|
|
|
|
|
|
|
|
|
3,233
|
|
Shares issued in connection with Dogfish Head merger
|
|
|
430
|
|
|
|
4
|
|
|
|
|
|
|
|
|
|
|
|
144,739
|
|
|
|
|
|
|
|
|
|
|
|
144,743
|
|
Conversion from Class B to Class A
|
|
|
100
|
|
|
|
1
|
|
|
|
(100
|
)
|
|
|
(1
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
Currency translation adjustment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
|
|
|
|
|
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at September 28, 2019
|
|
|
9,216
|
|
|
$
|
92
|
|
|
|
2,818
|
|
|
$
|
28
|
|
|
$
|
568,047
|
|
|
$
|
(1,154
|
)
|
|
$
|
151,967
|
|
|
$
|
718,980
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Class A
Common Shares |
|
|
Class A
Common Stock, Par |
|
|
Class B
Common Shares |
|
|
Class B
Common Stock, Par |
|
|
Additional
Paid-in
Capital |
|
|
Accumulated
Other Comprehensive Loss, net of tax |
|
|
Retained
Earnings |
|
|
Total
Stockholders’ 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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
38,007
|
|
|
|
38,007
|
|
Stock options exercised and restricted shares activities
|
|
|
2
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
15
|
|
|
|
|
|
|
|
|
|
|
|
15
|
|
Stock-based compensation expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,425
|
|
|
|
|
|
|
|
|
|
|
|
2,425
|
|
Repurchase of Class A Common Stock
|
|
|
(162
|
)
|
|
|
(1
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(48,585
|
)
|
|
|
(48,586
|
)
|
Currency translation adjustment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13
|
|
|
|
|
|
|
|
13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at September 29, 2018
|
|
|
8,475
|
|
|
$
|
85
|
|
|
|
3,018
|
|
|
$
|
30
|
|
|
$
|
402,056
|
|
|
$
|
(1,503
|
)
|
|
$
|
33,878
|
|
|
$
|
434,546
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A.
|
Organization and Basis of Presentation
|
B.
|
Dogfish Head Brewery Transaction
|
|
Total (In Thousands)
|
|
||
Cash and cash equivalents
|
$ |
7,476
|
||
Accounts receivable
|
8,081
|
|||
Inventories
|
9,286
|
|||
Prepaid expenses and other current assets
|
847
|
|||
Property, plant and equipment
|
106,964
|
|||
Goodwill
|
108,846
|
|||
Brand
|
98,500
|
|||
Other intangible assets
|
3,800
|
|||
Other assets
|
378
|
|||
Total assets acquired
|
344,178
|
|||
Accounts payable
|
3,861
|
|||
Accrued expenses and other current liabilities
|
4,085
|
|||
Deferred income taxes
|
18,437
|
|||
Other liabilities
|
59
|
|||
Total liabilities assumed
|
26,442
|
|||
Net assets acquired
|
$ |
317,736
|
||
Cash consideration
|
$ |
172,993
|
||
Nominal value of equity issued
|
162,999
|
|||
Fair Value reduction due to liquidity
|
(18,256
|
) | ||
Estimated total purchase price
|
$ |
317,736
|
||
|
(i)
|
Depreciation and amortization expenses were updated to reflect the fair value adjustments to Dogfish Head property, plant and equipment and intangible assets beginning December 31, 2017.
|
|
(ii)
|
Transaction costs incurred in the thirteen and thirty-nine weeks ended September 28, 2019 have been
re-assigned
|
|
(iii)
|
Interest expense has been included at a rate of approximately 3% which is consistent with the borrowing rate on the Company’s current line of credit.
|
|
(iv)
|
The tax effects of the pro forma adjustments at an estimated statutory rate of 25.6%.
|
|
(v)
|
Earnings per share amounts are calculated using the Company’s historical weighted average shares outstanding plus the 429,291 shares issued in the merger.
|
|
|
Thirteen weeks ended
|
|
|
Thirty-nine weeks ended
|
|
||||||||||
|
|
September 28,
2019 |
|
|
September 29,
2018 |
|
|
September 28,
2019 |
|
|
September 29,
2018 |
|
||||
Net revenue
|
|
$
|
379,205
|
|
|
$
|
335,954
|
|
|
$
|
1,002,939
|
|
|
$
|
852,611
|
|
Net income
|
|
$
|
46,445
|
|
|
$
|
42,638
|
|
|
$
|
103,105
|
|
|
$
|
77,541
|
|
Basic earnings per share
|
|
$
|
3.84
|
|
|
$
|
3.51
|
|
|
$
|
8.74
|
|
|
$
|
6.36
|
|
Diluted earnings per share
|
|
$
|
3.79
|
|
|
$
|
3.48
|
|
|
$
|
8.64
|
|
|
$
|
6.30
|
|
C.
|
Goodwill and Intangible Assets
|
|
|
Thirty-nine weeks ended
|
|
|||||
|
|
September 28,
|
|
|
September 29,
|
|
||
|
|
2019
|
|
|
2018
|
|
||
Goodwill as of beginning of period
|
|
$
|
3,683
|
|
|
$
|
3,683
|
|
Acquired goodwill
|
|
|
108,846
|
|
|
|
—
|
|
Impairment of goodwill
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
Goodwill as of end of period
|
|
$
|
112,529
|
|
|
$
|
3,683
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of September 28, 2019
|
|
|
As of December 29, 2018
|
|
|||||||||||||||||||
|
|
Estimated Useful
|
|
|
Gross Carrying
|
|
|
Accumulated
|
|
|
Net Book
|
|
|
Gross Carrying
|
|
|
Accumulated
|
|
|
Net Book
|
|
|||||||
|
|
Life (Years)
|
|
|
Value
|
|
|
Amortization
|
|
|
Value
|
|
|
Value
|
|
|
Amortization
|
|
|
Value
|
|
|||||||
Custmer Relationships
|
|
|
15
|
|
|
$
|
3,800
|
|
|
$
|
(64
|
)
|
|
$
|
3,736
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Trade Names
|
|
|
Indefinite
|
|
|
|
100,599
|
|
|
|
—
|
|
|
|
100,599
|
|
|
|
2,099
|
|
|
|
—
|
|
|
|
2,099
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total intangible assets
|
|
|
|
|
|
$
|
104,399
|
|
|
$
|
(64
|
)
|
|
$
|
104,335
|
|
|
$
|
2,099
|
|
|
$
|
—
|
|
|
$
|
2,099
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year
|
|
Amount
|
|
|
Remainder of 2019
|
|
$
|
63
|
|
2020
|
|
|
253
|
|
2021
|
|
|
253
|
|
2022
|
|
|
253
|
|
2023
|
|
|
253
|
|
2024
|
|
|
253
|
|
D.
|
Recent Accounting Pronouncements
|
E.
|
Revenue Recognition
|
F.
|
Inventories
|
|
September 28,
2019 |
|
December 29,
2018 |
|
||||
|
(in thousands)
|
|||||||
Current inventory:
|
|
|
||||||
Raw materials
|
$ |
51,322
|
$ |
44,655
|
||||
Work in process
|
13,270
|
8,252
|
||||||
Finished goods
|
28,040
|
17,342
|
||||||
Total current inventory
|
92,632
|
70,249
|
||||||
Long term inventory
|
15,369
|
11,619
|
||||||
Total inventory
|
$ |
108,001
|
$ |
81,868
|
||||
G.
|
Leases
|
|
Classification
|
Leases
|
|
|||
Right-of-use
assets
|
|
(in thousands)
|
|
|||
Operating lease assets
|
Operating
right-of-use
assets
|
$ |
38,943
|
|||
Capital lease assets
|
Property, plant and equipment, net
|
2,663
|
||||
Lease Liabilities
|
|
|
|
|
||
Current
|
|
|
||||
Operating lease liabilities
|
Current operating lease liabilities
|
2,599
|
||||
Capital lease liabilities
|
Accrued expenses and other current
l
iabilities
|
541
|
||||
Non-current
|
|
|
||||
Operating lease liabilities
|
Non-current
operating lease liabilities
|
41,215
|
||||
Capital lease liabilities
|
Other liabilities
|
2,178
|
|
Operating
|
|
Capital
|
|
Weighted-Average
Remaining Term in Years
|
|||||||||||
|
Leases
|
|
Leases
|
|
Operating Leases
|
|
Capital Leases
|
|
||||||||
|
(in thousands)
|
|
|
|
|
|||||||||||
2019
|
$ |
1,466
|
$ |
155
|
|
|
||||||||||
2020
|
2,642
|
626
|
|
|
||||||||||||
2021
|
5,754
|
626
|
|
|
||||||||||||
2022
|
5,453
|
626
|
|
|
||||||||||||
2023
|
5,313
|
626
|
|
|
||||||||||||
After 2023
|
32,191
|
288
|
|
|
||||||||||||
Total lease payments
|
52,819
|
2,947
|
|
|
||||||||||||
Less imputed interest (based on 3.5% weighted-average discount rate)
|
(9,005
|
) |
(228
|
) |
|
|
||||||||||
Present value of lease liability
|
$ |
43,814
|
$ |
2,719
|
4.7
|
9.9
|
|
Leases
|
|
||
|
(in thousands)
|
|
||
2019
|
$ |
4,446
|
||
2020
|
4,530
|
|||
2021
|
4,370
|
|||
2022
|
3,559
|
|||
2023
|
1,672
|
|||
Thereafter
|
7,582
|
|||
Total
|
$ |
26,159
|
||
H.
|
Net Income per Share
|
|
Thirteen weeks ended
|
Thirty-nine weeks ended
|
||||||||||||||
|
September 28,
2019 |
|
September 29,
2018 |
|
September 28,
2019 |
|
September 29,
2018 |
|
||||||||
|
(in thousands, except per share data)
|
(in thousands, except per share data)
|
||||||||||||||
Net income
|
$ |
44,729
|
$ |
38,007
|
$ |
96,279
|
$ |
70,852
|
||||||||
Allocation of net income for basic:
|
|
|
|
|
||||||||||||
Class A Common Stock
|
$ |
33,776
|
$ |
27,786
|
$ |
71,761
|
$ |
52,051
|
||||||||
Class B Common Stock
|
10,581
|
9,800
|
23,652
|
18,169
|
||||||||||||
Unvested participating shares
|
372
|
421
|
866
|
632
|
||||||||||||
|
$ |
44,729
|
$ |
38,007
|
$ |
96,279
|
$ |
70,852
|
||||||||
Weighted average number of shares for basic:
|
|
|
|
|
||||||||||||
Class A Common Stock
|
9,136
|
8,557
|
8,797
|
8,646
|
||||||||||||
Class B Common Stock*
|
2,862
|
3,018
|
2,899
|
3,018
|
||||||||||||
Unvested participating shares
|
101
|
130
|
106
|
105
|
||||||||||||
|
12,099
|
11,705
|
11,802
|
11,769
|
||||||||||||
Net income per share for basic:
|
|
|
|
|
||||||||||||
Class A Common Stock
|
$ |
3.70
|
$ |
3.25
|
$ |
8.16
|
$ |
6.02
|
||||||||
Class B Common Stock
|
$ |
3.70
|
$ |
3.25
|
$ |
8.16
|
$ |
6.02
|
||||||||
* |
Change in Class B Common Stock resulted from the conversion of
100,000
shares to Class A Common Stock on November 1, 2018 and
100,000
shares to Class A Common stock on August 8, 2019 with the ending number of shares reflecting the weighted average for the period.
|
|
Thirteen weeks ended
|
|||||||||||||||||||||||
|
September 28, 2019
|
September 29, 2018
|
||||||||||||||||||||||
|
Earnings to
Common Shareholders |
|
Common Shares
|
|
EPS
|
|
Earnings to
Common Shareholders |
|
Common Shares
|
|
EPS
|
|
||||||||||||
|
(in thousands, except per share data)
|
|||||||||||||||||||||||
As reported
—
basic
|
$ |
33,776
|
9,136
|
$
|
3.70
|
$ |
27,786
|
8,557
|
$
|
3.25
|
||||||||||||||
Add: effect of dilutive potential common shares
|
|
|
|
|
|
|
||||||||||||||||||
Share-based awards
|
—
|
152
|
|
—
|
127
|
|
||||||||||||||||||
Class B Common Stock
|
10,581
|
2,862
|
|
9,800
|
3,018
|
|
||||||||||||||||||
Net effect of unvested participating shares
|
4
|
—
|
|
5
|
—
|
|
||||||||||||||||||
Net income per common share
—
diluted
|
$ |
44,361
|
12,150
|
$ |
3.65
|
$ |
37,591
|
11,702
|
$ |
3.21
|
||||||||||||||
|
Thirty-nine weeks ended
|
|||||||||||||||||||||||
|
September 28, 2019
|
September 29, 2018
|
||||||||||||||||||||||
|
Earnings to
Common Shareholders |
|
Common Shares
|
|
EPS
|
|
Earnings to
Common Shareholders |
|
Common Shares
|
|
EPS
|
|
||||||||||||
|
(in thousands, except per share data)
|
|||||||||||||||||||||||
As reported
—
basic
|
$ |
71,761
|
8,797
|
$ |
8.16
|
$ |
52,051
|
8,646
|
$ |
6.02
|
||||||||||||||
Add: effect of dilutive potential common shares
|
|
|
|
|
|
|
||||||||||||||||||
Share-based awards
|
—
|
127
|
|
—
|
109
|
|
||||||||||||||||||
Class B Common Stock
|
23,652
|
2,899
|
|
18,169
|
3,018
|
|
||||||||||||||||||
Net effect of unvested participating shares
|
8
|
—
|
|
5
|
—
|
|
||||||||||||||||||
Net income per common share
—
diluted
|
$ |
95,421
|
11,823
|
$ |
8.07
|
$ |
70,225
|
11,773
|
$ |
5.96
|
I.
|
Comprehensive Income or Loss
|
J.
|
Commitments and Contingencies
|
K.
|
Income Taxes
|
|
Thirteen weeks ended
|
|||||||
|
September 28,
|
|
September 29,
|
|
||||
|
2019
|
|
2018
|
|
||||
|
(in thousands)
|
|||||||
Summary of income tax provision
|
|
|
||||||
Tax provision based on net income
|
$ |
16,047
|
$ |
13,671
|
||||
Accounting Method Changes
|
—
|
(4,529
|
) | |||||
Benefit of ASU
2016-09
|
(1,842
|
) |
(129
|
) | ||||
Total income tax provision
|
$ |
14,205
|
$ |
9,013
|
||||
|
Thirty-nine weeks ended
|
|||||||
|
September 28,
|
|
September 29,
|
|
||||
|
2019
|
|
2018
|
|
||||
|
(in thousands)
|
|||||||
Summary of income tax provision
|
|
|
||||||
Tax provision based on net income
|
$ |
34,455
|
$ |
24,969
|
||||
Accounting Method Changes
|
—
|
(4,529
|
) | |||||
Benefit of ASU
2016-09
|
(3,870
|
) |
(3,980
|
) | ||||
Total income tax provision
|
$ |
30,585
|
$ |
16,460
|
L.
|
Revolving Line of Credit
|
M.
|
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.
|
N.
|
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
|
(72,937
|
) |
104.47
|
|
|
|||||||||||
Outstanding at September 28,
2019 |
325,178
|
$ |
182.44
|
5.83
|
$ |
55,196
|
||||||||||
Exercisable at September 28, 2019
|
102,613
|
$ |
139.16
|
3.96
|
$ |
21,859
|
||||||||||
Vested and expected to vest at September 28, 2019
|
300,886
|
$ |
180.81
|
5.76
|
$ |
51,563
|
||||||||||
|
Number of Shares
|
|
Weighted Average Fair Value
|
|
||||
Non-vested
at December 29, 2018
|
126,720
|
$ |
192.74
|
|||||
Granted
|
30,410
|
$ |
269.91
|
|||||
Vested
|
(33,201
|
) | $ |
188.63
|
||||
Forfeited
|
(1,550
|
) | $ |
142.00
|
||||
Non-vested
at September 28, 2019
|
122,379
|
$ |
213.67
|
|||||
O.
|
Employee Retirement Plans
|
P.
|
Related Party Transactions
|
Q.
|
Subsequent Events
|
Item 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
|
Thirteen Weeks Ended
(in thousands, except per barrel)
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
|
September 28,
2019
|
September 29,
2018
|
Amount
change |
|
% change
|
|
Per barrel
change |
|
||||||||||||||||||||||||||||
Barrels sold
|
|
1,594
|
|
|
1,338
|
|
255
|
19.1
|
% |
|
||||||||||||||||||||||||||
|
|
|
Per barrel
|
|
% of net
revenue |
|
|
|
Per barrel
|
|
% of net
revenue |
|
|
|
|
|
|
|
||||||||||||||||||
Net revenue
|
$ |
378,466
|
$ |
237.46
|
100.0
|
% | $ |
306,870
|
$ |
229.27
|
100.0
|
% | $ |
71,596
|
23.3
|
% | $ |
8.19
|
||||||||||||||||||
Cost of goods
|
190,631
|
119.61
|
50.4
|
% |
149,643
|
111.80
|
48.8
|
% |
40,988
|
27.4
|
% |
7.81
|
||||||||||||||||||||||||
Gross profit
|
187,835
|
117.85
|
49.6
|
% |
157,227
|
117.47
|
51.2
|
% |
30,608
|
19.5
|
% |
0.38
|
||||||||||||||||||||||||
Advertising, promotional and selling expenses
|
96,570
|
60.59
|
25.5
|
% |
87,765
|
65.57
|
28.6
|
% |
8,805
|
10.0
|
% |
(4.98
|
) | |||||||||||||||||||||||
General and administrative expenses
|
31,429
|
19.72
|
8.3
|
% |
22,734
|
16.99
|
7.4
|
% |
8,695
|
38.2
|
% |
2.73
|
||||||||||||||||||||||||
Total operating expenses
|
127,999
|
80.31
|
33.8
|
% |
110,499
|
82.56
|
36.0
|
% |
17,500
|
15.8
|
% |
(2.25
|
) | |||||||||||||||||||||||
Operating income
|
59,836
|
37.54
|
15.8
|
% |
46,728
|
34.91
|
15.2
|
% |
13,108
|
28.1
|
% |
2.63
|
||||||||||||||||||||||||
Other (expense) income
|
(902
|
) |
(0.57
|
) |
-0.2
|
% |
292
|
0.22
|
0.1
|
% |
(1,194
|
) |
-408.9
|
% |
(0.79
|
) | ||||||||||||||||||||
Income before income tax expense
|
58,934
|
36.98
|
15.6
|
% |
47,020
|
35.13
|
15.3
|
% |
11,914
|
25.3
|
% |
1.85
|
||||||||||||||||||||||||
Income tax expense
|
14,205
|
8.91
|
3.8
|
% |
9,013
|
6.73
|
2.9
|
% |
5,192
|
57.6
|
% |
2.18
|
||||||||||||||||||||||||
Net income
|
$ |
44,729
|
$ |
28.06
|
11.8
|
% | $ |
38,007
|
$ |
28.40
|
12.4
|
% | $ |
6,722
|
17.7
|
% | $ |
(0.34
|
) | |||||||||||||||||
|
Thirty-nine Weeks Ended
(in thousands, except per barrel)
|
Amount
change |
|
%
change |
|
Per
barrel change |
|
|||||||||||||||||||||||||||||
|
September 28,
2019
|
September 29,
2018
|
||||||||||||||||||||||||||||||||||
Barrels sold
|
|
4,045
|
|
|
3,328
|
|
717
|
21.5
|
% |
|
||||||||||||||||||||||||||
|
|
|
Per barrel
|
|
% of net
revenue |
|
|
|
Per barrel
|
|
% of net
revenue |
|
|
|
|
|
|
|
||||||||||||||||||
Net revenue
|
$ |
948,524
|
$ |
234.51
|
100.0
|
% | $ |
770,427
|
$ |
231.51
|
100.0
|
% | $ |
178,097
|
23.1
|
% | $ |
3.00
|
||||||||||||||||||
Cost of goods
|
477,147
|
117.97
|
50.3
|
% |
375,133
|
112.73
|
48.7
|
% |
102,014
|
27.2
|
% |
5.24
|
||||||||||||||||||||||||
Gross profit
|
471,377
|
116.54
|
49.7
|
% |
395,294
|
118.79
|
51.3
|
% |
76,083
|
19.2
|
% |
(2.25
|
) | |||||||||||||||||||||||
Advertising, promotional and selling expenses
|
262,372
|
64.87
|
27.7
|
% |
241,796
|
72.66
|
31.4
|
% |
20,576
|
8.5
|
% |
(7.79
|
) | |||||||||||||||||||||||
General and administrative expenses
|
81,552
|
20.16
|
8.6
|
% |
65,951
|
19.82
|
8.6
|
% |
15,601
|
23.7
|
% |
0.34
|
||||||||||||||||||||||||
Impairment of assets
|
243
|
0.06
|
0.0
|
% |
517
|
0.16
|
0.1
|
% |
(274
|
) |
-53.0
|
% |
(0.10
|
) | ||||||||||||||||||||||
Total operating expenses
|
344,167
|
85.09
|
36.3
|
% |
308,264
|
92.63
|
40.0
|
% |
35,903
|
11.6
|
% |
(7.54
|
) | |||||||||||||||||||||||
Operating income
|
127,210
|
31.45
|
13.4
|
% |
87,030
|
26.15
|
11.3
|
% |
40,180
|
46.2
|
% |
5.30
|
||||||||||||||||||||||||
Other (expense) income, net
|
(346
|
) |
(0.09
|
) |
0.0
|
% |
282
|
0.08
|
0.0
|
% |
(628
|
) |
-222.7
|
% |
(0.17
|
) | ||||||||||||||||||||
Income before income tax expense
|
126,864
|
31.37
|
13.4
|
% |
87,312
|
26.24
|
11.3
|
% |
39,552
|
45.3
|
% |
5.13
|
||||||||||||||||||||||||
Income tax expense
|
30,585
|
7.56
|
3.2
|
% |
16,460
|
4.95
|
2.1
|
% |
14,125
|
85.8
|
% |
2.61
|
||||||||||||||||||||||||
Net income
|
$ |
96,279
|
$ |
23.80
|
10.2
|
% | $ |
70,852
|
$ |
21.29
|
9.2
|
% | $ |
25,427
|
35.9
|
% | $ |
2.51
|
||||||||||||||||||
Item 3.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
Item 4.
|
CONTROLS AND PROCEDURES
|
PART II.
|
OTHER INFORMATION
|
Item 1.
|
LEGAL PROCEEDINGS
|
Item 1A.
|
RISK FACTORS
|
• | diversion of management’s attention to integrate Dogfish Head’s operations; |
• | disruption to the Company’s existing operations and plans or inability to effectively manage its expanded operations; |
• | failure, difficulties or delays in securing, integrating and assimilating information, financial systems, internal controls, operations, production processes and products, or the distribution channel for Dogfish Head’s businesses and product lines; |
• | potential loss of key Dogfish Head founders and employees, suppliers, distributors and drinkers or other adverse effects on existing business relationships with suppliers, distributors and drinkers; |
• | adverse impact on overall profitability if the Company’s expanded operations do not achieve the growth prospects, net revenues, earnings, cost or revenue synergies, or other financial results projected in the Company’s valuation models, or delays in the realization thereof; |
• | reallocation of amounts of capital from the Company’s other strategic initiatives; |
• | inaccurate assessment of undisclosed, contingent or other liabilities of the acquired operations, unanticipated costs associated with the Transaction, and an inability to recover or manage such liabilities and costs; and |
• |
impacts as a result of purchase accounting adjustments, incorrect estimates made in the accounting for the Transaction or the potential future
write-off
of significant amounts of goodwill, intangible assets and/or other tangible assets if the Dogfish Head business does not perform in the future as expected, or other potential financial accounting or reporting impacts
|
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
|
||||||||||||
June 30, 2019 to August 3, 2019
|
73
|
114.14
|
—
|
90,335
|
||||||||||||
August 4, 2019 to August 31, 2019
|
261
|
135.26
|
—
|
90,335
|
||||||||||||
September 1, 2019 to September 28, 2019
|
—
|
—
|
—
|
90,335
|
||||||||||||
Total
|
900
|
$ |
139.47
|
—
|
90,335
|
|||||||||||
Item 3.
|
DEFAULTS UPON SENIOR SECURITIES
|
Item 4.
|
MINE SAFETY DISCLOSURES
|
Item 5.
|
OTHER INFORMATION
|
Item 6.
|
EXHIBITS
|
Exhibit No.
|
|
Title
|
||
**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
|
|||
*104
|
The cover page from this Quarterly Report on Form 10-Q for the quarter ended September 28, 2019, formatted in Inline XBRL (formatted as Inline XBRL and contained in Exhibit 101).
|
* | Filed with this report |
** | Designates management contract or compensatory plan or arrangement |
|
THE BOSTON BEER COMPANY, INC.
(Registrant)
|
|||||
Date: October 29, 2019
|
|
/s/ David A. Burwick
|
||||
|
|
David A. Burwick
|
||||
|
|
President and Chief Executive Officer
|
||||
|
|
(principal executive officer)
|
Date: October 29, 2019
|
|
/s/ Frank H. Smalla
|
||||
|
|
Frank H. Smalla
|
||||
|
|
Chief Financial Officer
|
||||
|
|
(principal financial officer)
|
1 Year Boston Beer Chart |
1 Month Boston Beer 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