BOSTON, Oct. 29, 2019 /PRNewswire/ -- The Boston
Beer Company, Inc. (NYSE: SAM) completed the previously reported
Dogfish Head Brewery transaction and began consolidating the
Dogfish Head financial results on July 3,
2019. The combined Company reported third quarter 2019
net revenue of $378.5 million, an
increase of $71.6 million or 23.3%
from the third quarter of 2018, mainly due to an increase in
shipments of 19.1%. Net income for the third quarter was
$44.7 million, or $3.65 per diluted share, an increase of
$6.7 million or $0.44 per diluted share from the third quarter of
2018. This increase was primarily due to increased revenue,
partially offset by lower gross margins, increases in advertising,
promotional and selling expenses, and the non-recurrence of a
$0.38 per diluted share favorable
one-time impact related to a tax accounting method change in the
third quarter of the prior year.
Earnings per diluted share for the 39-week period ended
September 28, 2019 were $8.07, an increase of $2.11 from the comparable 39-week period in
2018. Net revenue for the 39-week period ended September 28, 2019 was $948.5 million, an increase of $178.1 million, or 23.1%, from the comparable
39-week period in 2018.
In the third quarter, Dogfish Head operating income of
$6.9 million was partially offset by
non-recurring Dogfish Head transaction-related expenses of
$5.9 million. Excluding this
$1.0 million net positive impact,
operating income for the third quarter was $58.8 million, an increase of $12.1 million or 25.9% from the third quarter of
2018. Also, during the third quarter, the Company paid back
all debt incurred in connection with the Dogfish Head transaction,
including approximately $200k in
related interest expense.
In the third quarter and the 39-week period ended September 28, 2019, the earnings per diluted
share benefit from Dogfish Head's operating income net of the
dilutive impact of the transaction-related share issuance was more
than offset by the non-recurring transaction-related expenses,
resulting in a combined unfavorable impact of $0.08 per diluted share and $0.19 per diluted share, respectively.
In the third quarter and the 39-week period ended September 28, 2019, the Company recorded a tax
benefit of $0.15 per diluted share
and $0.33 per diluted share,
respectively, resulting from the Accounting Standard "Employee
Share-Based Payment Accounting" ("ASU 2016-0").
Highlights of this release include:
- Reported depletions increased 30% and 21% from the 13 and 39
week comparable periods in the prior year; excluding the addition
of the Dogfish Head brands beginning July 3,
2019, depletions increased 24% and 19%, respectively.
- Reported shipments increased 19.1% and 21.5% from the 13 and 39
week comparable periods in the prior year; excluding the addition
of the Dogfish Head brands beginning July 3,
2019, shipments increased 13.8% and 19.4%,
respectively.
- Full year 2019 shipments and depletions growth including the
addition of the Dogfish Head brands beginning July 3, 2019 is now estimated to be between 19%
and 22%, a narrowing up from the previously communicated estimate
of between 17% and 22%.
- Excluding the addition of the Dogfish Head brands beginning
July 3, 2019, full year 2019
shipments and depletions growth is now estimated to be between 15%
and 18%, a narrowing up from the previously communicated estimate
of between 13% and 18%.
- Gross margin was 49.6% for the third quarter, a decrease from
51.2% in the comparable 13-week period in 2018, and 49.7% for the
39-week period ending September 28,
2019, a decrease from 51.3% in the comparable 39-week period
in 2018. The Company's full year gross margin target continues to
be between 50% and 51%.
- Advertising, promotional and selling expense increased by
$8.8 million, or 10.0%, in the third
quarter over the comparable period in 2018 and increased
$20.6 million, or 8.5%, from the
comparable 39-week period in 2018.
- Based on current spending and investment plans, full year 2019
Non-GAAP earnings per diluted share1, which excludes the
impact of ASU 2016-09, is now estimated at between $8.70 and $9.30, a
narrowing up from the previously communicated estimate of
$8.30 and $9.30.
- Full year 2019 capital spending is now estimated to be between
$100 million and $110 million, a decrease from the previously
communicated estimate of $120 million
to $140 million.
Jim Koch, Chairman and Founder of
the Company, commented, "We completed our merger with Dogfish Head
on July 3 and are making good
progress on the integration. We have welcomed our Dogfish
Head coworkers and we continue to learn a lot from each other, as
we share our passion for brewing, creativity and maintaining a
strong culture. In our first quarter as a combined company we
reported depletions growth of 30%, of which 24% is from historic
Boston Beer brands and 6% is from the addition of Dogfish Head
brands following the closing. I am tremendously proud of the
efforts of all of our coworkers in achieving our sixth
consecutive quarter of double-digit growth, while maintaining a
focus on quality and innovation. We believe that our depletions
growth is attributable to our key innovations, quality and strong
brands, as well as sales execution and support from our
distributors. We plan to continue to invest to improve
Samuel Adams trends and remain
focused on the longer-term goal of returning the brand to
growth. We remain positive about the future of craft beer and
are happy that the strength of our diverse brand portfolio
continues to fuel double-digit growth. We are confident in
our ability to innovate and build strong brands and we are
exploring new styles to launch in 2020 that would complement our
current portfolio and help support our mission of long-term
profitable growth."
Dave Burwick, the Company's
President and CEO stated, "Our depletions growth in the third
quarter was the result of increases in our Truly Hard Seltzer and
Twisted Tea brands and the addition of the Dogfish Head brands,
partly offset by decreases in our Samuel
Adams and Angry Orchard brands. Truly continues to
generate triple-digit volume growth. During the quarter, we
launched Truly Draft nationally and continued to expand package
distribution across all channels. We announced a multiyear
U.S. partnership with the National Hockey League, which makes Truly
Hard Seltzer the "official hard seltzer of the NHL," and enables
all of our brands, including Samuel
Adams and Dogfish Head, to benefit from the NHL partnership.
We announced the launch of new formulations for all of our
Truly flavors, which we have tested with drinkers of Truly and
competing brands and we are confident that we will now have the
best-tasting hard seltzer on the market. In early 2020, we
will launch Truly Hard Seltzer Lemonade in both a variety 12-pack
and single-serve sizes. These new Truly flavors have the same
100 calories and 1 gram of sugar as other Truly flavors but have a
more robust taste. Lastly, we have announced the addition of
another new flavor, Watermelon Kiwi, available in our Truly
Tropical Variety Pack and 6-packs. We believe these
significant new flavor introductions, combined with the new NHL
partnership and our ad campaign for Truly featuring well known
actor Keegan-Michael Key, will help
further improve our position as a leader in hard seltzer and build
Truly as a meaningful and relevant brand."
Mr. Burwick continued "Twisted Tea continues to generate
consistent double-digit volume growth, even as new entrants have
been introduced and competition has increased. Angry
Orchard's volume has declined against the 2018 national roll out of
Angry Orchard Rosé. The cider category continues to be
challenged and we are working to return Angry Orchard to growth
through continued packaging, innovation, promotion and brand
communication initiatives. This fall, Angry Orchard Crisp
Unfiltered, a traditional American Cider with only 10 grams of
sugar was launched nationally across all channels and we are
encouraged by early consumer reaction. For the remainder of
2019 and into 2020, we plan to build upon our success and work to
drive our brands to their full potential, with a particular focus
on our Truly brand. We've adjusted our expectations for 2019
full-year depletions growth and our earnings guidance to reflect
our trends for the first nine months and our current view of the
remainder of the year, which is primarily driven by the
year-to-date performance of Truly. We are targeting high teens to
low twenties top-line growth in 2020 and a significant increase in
our operating income."
Mr. Burwick went on to say, "We also continue to focus on cost
savings and efficiency projects to fund the investments required to
grow our brands, to build our organization's ability to deliver
against our goals, and to improve our profitability. While we are
generally pleased with our overall performance, our accelerated
depletions growth has been challenging operationally and we have
been operating at capacity for many months. To help relieve some
capacity pressures and support our projected 2020 volume growth, we
are adding a can line in our Pennsylvania Brewery that we expect
will begin production by the end of the year and we have
significantly increased our available sleek can capacity at
third-party breweries. We are also accelerating other capacity and
efficiency improvements at our breweries, which is reflected in our
capital spend expectations for 2020. We will continue to
invest to increase capacity as appropriate to meet the needs of our
business and take full advantage of the fast-growing hard seltzer
category. However, the increased usage of third-party
breweries and an increasing percentage of variety packs in the
Company's overall product mix come at a higher incremental cost.
As a result, our gross margins and gross margin expectations
will be negatively impacted until the volume growth stabilizes.
While we are in a very competitive business, we are
optimistic for continued growth of our current brand portfolio and
innovations and we remain prepared to forsake short-term earnings
as we invest to sustain long-term profitable growth, in line with
the opportunities that we see."
3rd Quarter 2019 Summary of Results
Depletions increased 30% from the comparable 13-week period in
2018, reflecting increases in the Company's Truly Hard Seltzer and
Twisted Tea brands and the addition of the Dogfish Head brands,
partially offset by decreases in its Samuel
Adams and Angry Orchard brands.
Shipment volume was approximately 1.6 million barrels, a 19.1%
increase from the comparable 13-week period in 2018.
The Company believes distributor inventory as of September 28, 2019 averaged approximately 3 weeks
on hand and was at an appropriate level, based on supply chain
capacity constraints and inventory requirements to support the
forecasted growth. The Company expects wholesaler inventory
levels in terms of weeks on hand to remain between 2 and 4 weeks
for the remainder of the year.
Gross margin at 49.6% decreased from the 51.2% margin realized
in the third quarter of 2018, primarily as a result of higher
processing costs due to increased production at third-party
breweries and higher temporary labor requirements at Company-owned
breweries to support increased variety pack volumes, partially
offset by price increases and cost saving initiatives at
Company-owned breweries.
Advertising, promotional and selling expenses increased
$8.8 million from the comparable
13-week period in 2018, primarily due to increased investments in
local marketing, media and production and the addition of Dogfish
Head brand-related expenses beginning July
3, 2019.
General and administrative expenses increased by $8.7 million from the comparable 13-week period
in 2018, primarily due to non-recurring Dogfish Head
Transaction-related expenses of $3.6
million and the addition of Dogfish Head general and
administrative expenses beginning July 3,
2019.
The Company's effective tax rate for the 13-week period ended
September 28, 2019 increased to 24.1%
from 19.2% in the comparable 13-week period in 2018. This increase
was primarily due to the favorable impact of tax accounting method
changes reported in the prior year period.
Year to Date 2019 Summary of Results
Depletions increased 21% from the comparable 39-week period in
2018, reflecting increases in the Company's Truly Hard Seltzer and
Twisted Tea brands and the addition of the Dogfish Head brands
partially offset by decreases in its Samuel Adams and Angry
Orchard brands.
Shipment volume was approximately 4.0 million barrels, a 21.5%
increase from the comparable 39-week period in 2018.
Gross margin at 49.7% decreased from the 51.3% margin realized
in the comparable 39-week period in 2018, primarily as a result of
higher processing costs due to increased production at third-party
breweries and higher temporary labor requirements at Company-owned
breweries to support increased variety pack volumes, partially
offset by price increases and cost saving initiatives at
Company-owned breweries.
Advertising, promotional and selling expenses increased
$20.6 million from the comparable
39-week period in 2018, primarily due to increased investments in
local marketing, media and production, higher salaries and benefits
costs, increased freight to distributors due to higher volumes and
the addition of Dogfish Head brand related expenses beginning
July 3, 2019.
General and administrative expenses increased by $15.6 million from the comparable 39-week period
in 2018, primarily due to non-recurring Dogfish Head
Transaction-related expenses of $5.6
million, increases in salaries and benefits costs, and the
addition of Dogfish Head general and administrative expenses
beginning July 3, 2019.
The Company's effective tax rate for the 39-week period ended
September 28, 2019 increased to 24.1%
from 18.9% in the comparable 39-week period in 2018. This increase
was primarily due to the favorable impact of tax accounting method
changes reported in the prior year period.
The Company expects that its September
28, 2019 cash balance of $27.1
million, together with its future operating cash flows and
its $150.0 million line of credit,
will be sufficient to fund future cash requirements. The company
currently has no amounts outstanding on its line of credit.
During the 39-week period ended September
28, 2019 and the period from September 29, 2019 through October 26, 2019, the Company did not repurchase
any shares of its Class A Common Stock. As of October 26, 2019, the Company had approximately
$90.3 million remaining on the
$931.0 million share buyback
expenditure limit set by the Board of Directors.
Depletion estimates
Year-to-date depletions through the 42-week period ended
October 19, 2019 are estimated by the
Company to have increased approximately 21% from the comparable
period in 2018. Excluding the Dogfish Head impact, depletions
increased 19%.
2019 Outlook
The Company currently projects full year 2019 earnings per
diluted share to be between $8.70 and
$9.30. This projection excludes
the impact of ASU 2016-09. The Company's actual 2019 earnings
per share could vary significantly from the current
projection. Underlying the Company's current 2019 projection
are the following full-year estimates and targets:
- Depletions and shipments increase of between 19% and 22%.
- National price increases of between 1% and 3%.
- Gross margin of between 50% and 51%.
- Increased investments in advertising, promotional and selling
expenses of between $40 million and
$50 million, a change from the previously communicated
estimate of between $35 million and
$45 million primarily due to
increased Truly brand investments. 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 27%, excluding the
impact of ASU 2016-09.
- Estimated capital spending of between $100 million and $110
million, most of which relates to continued investments in
the Company's breweries and taprooms.
2020 Outlook
The Company is completing its 2020 planning process and will
provide further detailed guidance when the Company presents its
full-year 2019 results. The Company is currently using the
following preliminary assumptions and targets for its 2020 fiscal
year:
- Depletions and shipments percentage increase of high
teens to low twenties
- National price increases of between 1% and 3%.
- Gross margin of between 49% and 51%.
- Increased investments in advertising, promotional and selling
expenses of between $65 million and
$75 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 27%, excluding the
impact of ASU 2016-09.
- Estimated capital spending of between $95 million and $115
million, which could be significantly higher, if deemed
necessary to meet future growth.
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, Truly Hard Seltzer, Wild
Leaf Hard Tea and Tura Alcoholic Kombucha as well as several other
craft beer brands brewed by A&S Brewing, our craft beer
incubator. On July 3, 2019, the
Company completed its previously reported Dogfish Head Brewery
transaction. Dogfish Head has a proud history as a craft beer
pioneer with a brand that is beloved by American consumers and
highly respected by the industry. 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 29, 2018 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.
1 See "Outlook" below for additional information
regarding non-GAAP forward-looking measures used in this press
release.
THE BOSTON BEER
COMPANY, INC. AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF COMPREHENSIVE INCOME
|
(in thousands, except
per share data)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirteen weeks
ended
|
|
Thirty-nine weeks
ended
|
|
|
|
September
28,
|
|
September
29,
|
|
September
28,
|
|
September
29,
|
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
Barrels
sold
|
|
|
1,594
|
|
1,338
|
|
4,045
|
|
3,328
|
|
|
|
|
|
|
|
|
|
|
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 (expense)
income, net:
|
|
|
|
|
|
|
|
|
|
Interest (expense)
income, net
|
|
|
(138)
|
|
343
|
|
472
|
|
821
|
Other (expense)
income, net
|
|
|
(764)
|
|
(51)
|
|
(818)
|
|
(539)
|
Total other
(expense) income, 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
|
|
|
|
|
|
|
|
|
|
|
THE BOSTON BEER
COMPANY, INC. AND SUBSIDIARIES
|
CONSOLIDATED
BALANCE SHEETS
|
(in thousands, except
share data)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
28
|
|
29
|
and December 29, 2018, respectively
|
|
|
|
|
|
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
|
|
|
|
|
|
|
THE BOSTON BEER
COMPANY, INC. AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF CASHFLOWS
|
(in
thousands)
|
(unaudited)
|
|
|
|
Thirty-nine weeks
ended
|
|
|
|
September
28,
|
|
September
29,
|
|
|
|
2019
|
|
2018
|
|
|
|
|
|
|
Cash flows
provided by operating activities:
|
|
|
|
|
|
Net income
|
|
|
$
96,279
|
|
$
70,852
|
Adjustments to reconcile net
income to net cash provided by operating activities:
|
|
|
|
|
|
Depreciation and amortization
|
|
|
41,841
|
|
38,860
|
Impairment of assets
|
|
|
243
|
|
517
|
Loss on disposal of property, plant and equipment
|
|
|
449
|
|
45
|
Change in ROU assets
|
|
|
2,734
|
|
-
|
Bad debt expense
|
|
|
53
|
|
39
|
Stock-based compensation expense
|
|
|
9,043
|
|
6,995
|
Deferred income taxes
|
|
|
14,047
|
|
12,818
|
Changes in operating assets
and liabilities:
|
|
|
|
|
|
Accounts receivable
|
|
|
(26,532)
|
|
(20,412)
|
Inventories
|
|
|
(16,847)
|
|
(20,836)
|
Prepaid expenses, income tax receivable and other assets
|
|
|
(13,903)
|
|
(8,385)
|
Accounts payable
|
|
|
22,388
|
|
20,560
|
Accrued expenses and other current liabilities
|
|
|
14,949
|
|
6,309
|
Change in operating lease liability
|
|
|
(2,270)
|
|
-
|
Other liabilities
|
|
|
207
|
|
693
|
Net cash provided by operating activities
|
|
|
142,681
|
|
108,055
|
|
|
|
|
|
|
Cash flows used in
investing activities:
|
|
|
|
|
|
Purchases of property, plant
and equipment
|
|
|
(66,760)
|
|
(38,752)
|
Proceeds from disposal of
property, plant and equipment
|
|
|
144
|
|
2
|
Cash paid for acquisition of
intangible assets
|
|
|
-
|
|
5
|
Investment in Dogfish Head,
net of cash acquired
|
|
|
(165,517)
|
|
-
|
Other investing
activities
|
|
|
(10)
|
|
131
|
Net cash used in investing activities
|
|
|
(232,143)
|
|
(38,614)
|
|
|
|
|
|
|
Cash flows
provided by (used in) financing activities:
|
|
|
|
|
|
Repurchase of Class A Common
Stock
|
|
|
-
|
|
(88,311)
|
Proceeds from exercise of
stock options
|
|
|
7,619
|
|
21,528
|
Net cash paid on note
payable and capital lease
|
|
|
(246)
|
|
(78)
|
Cash borrowed on line of
credit
|
|
|
97,000
|
|
-
|
Cash paid on line of
credit
|
|
|
(97,000)
|
|
-
|
Net proceeds from sale of
investment shares
|
|
|
818
|
|
670
|
Net cash provided by (used in) financing activities
|
|
|
8,191
|
|
(66,191)
|
|
|
|
|
|
|
Change in cash and
cash equivalents
|
|
|
(81,271)
|
|
3,250
|
|
|
|
|
|
|
Cash and cash
equivalents at beginning of year
|
|
|
108,399
|
|
65,637
|
|
|
|
|
|
|
Cash and cash
equivalents at end of period
|
|
|
$
27,128
|
|
$
68,887
|
|
|
|
|
|
|
Supplemental
disclosure of cash flow information:
|
|
|
|
|
|
Non cash consideration
issued in Dogfish Head Transaction
|
|
|
$
144,743
|
|
$
-
|
Income taxes
paid
|
|
|
$
16,759
|
|
$
11,252
|
Cash paid for amounts
included in measurement of lease liabilities
|
|
|
$
3,443
|
|
$
-
|
Right-of-use assets
obtained in exchange for operating lease obligations
|
|
|
$
41,678
|
|
$
-
|
Right-of-use assets
obtained in exchange for capital lease obligations
|
|
|
$
2,837
|
|
$
-
|
Interest paid on
revolving credit facility
|
|
|
$
349
|
|
$
-
|
Decrease in accounts
receivable for ASU 2014-09 adoption
|
|
|
$
-
|
|
$
(1,310)
|
Decrease in accounts
payable for purchase of property, plant and equipment
|
|
|
$
(2,076)
|
|
$
3,346
|
|
|
|
|
|
|
|
|
|
|
|
|
Copies of The
Boston Beer Company's press releases, including quarterly financial
results,
|
are available
on the Internet at www.bostonbeer.com
|
|
|
|
|
|
|
View original
content:http://www.prnewswire.com/news-releases/boston-beer-reports-third-quarter-2019-results-300947550.html
SOURCE The Boston Beer Company, Inc.