Craft Brew Alliance Announces Updated Guidance for Full-Year 2019
September 05 2019 - 9:00AM
Business Wire
Craft Brew Alliance, Inc. (“CBA”) (Nasdaq: BREW) today announced
it is maintaining full-year 2019 guidance with the exception of
shipments and depletions. While shipments for portfolio anchor Kona
Brewing Co. were up 10% in the first half of the year, significant
retailer out-of-stock issues in key markets negatively impacted
second quarter depletions and go-forward shipments. Additionally,
lower-than-planned contract brewing shipments are continuing to
dampen volume growth. As a result of these impacts, CBA is
adjusting its shipments and depletions range downward to between
flat and an increase of 3%. CBA will discuss its 2019 guidance and
management’s reaction to the August 23, 2019 announcement during an
investor conference call later this morning at 11:00 a.m. ET.
Commenting on the updated guidance, Christine Perich, chief
financial and strategy officer, said, “Since identifying the
out-of-stock issue in early June, we’ve been actively focused on
addressing the situation with positive results; however, barrels
lost during that critical selling period cannot be recouped. That
impact, coupled with increasing pressure from the expanding hard
seltzer category, led us to lower our shipments and depletions
range for the full year. Looking forward, we remain buoyed by
Kona’s continued momentum, our resilient gross margin, and the
settlement costs of the Kona class action lawsuit being in line
with the expenses we accrued in the first quarter.”
Reconfirmed and adjusted financial highlights for 2019
include:
- Updating depletions and shipments to a range of flat to an
increase of 3%.
- Maintaining average price increases of 1% to 2%.
- Maintaining gross margin rate of 34.5% to 36.5%.
- Maintaining SG&A range between $75 million and $79 million,
which reflects a $4.7 million one-time expense related to the Kona
class action lawsuit settlement.
- Maintaining capital expenditures range between $13 million and
$17 million.
- Maintaining effective tax rate of 25%.
The public is invited to listen to a live webcast of today’s
conference call on the Investors section of CBA’s website at
www.craftbrew.com. Approximately two hours following the conference
call, an archived webcast will be available at the same site and
will remain available until the next earnings call.
Interested parties may participate in the live conference via
telephone by dialing (877) 797-0723 if calling from within
the United States, or (615) 247-0220 from outside the United
States, and entering the access code 7956 435. An audio
replay of the conference call will be available approximately two
hours after the conclusion of the call. The audio replay will
remain available for seven days and is accessible by dialing (855)
859-2056 or (404) 537-3406 and entering the code: 7956
435.
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, including depletions and shipments,
including the effect of out-of-stock issues and lower contract
brewing shipments, price increases, gross margin rate improvement,
the level and effect of SG&A expense, the effect of the class
action settlement, effective tax rate, and the benefits or
improvements to be realized from marketing campaigns, portfolio
expansion, capital projects, and other strategic initiatives, are
forward-looking statements. It is important to note that the
Company’s actual results may differ materially from those projected
in such forward-looking statements. Additional information
concerning factors that could cause actual results to differ
materially from those in the forward-looking statements is
contained from time to time in the Company’s SEC filings,
including, but not limited to, the Company’s report on Form 10-K
for the year ended December 31, 2018. Copies of these documents may
be found on the Company’s website, www.craftbrew.com, or obtained
by contacting the Company or the SEC.
About Craft Brew
Alliance
Craft Brew Alliance (CBA) is a leading craft brewing company
that brews, brands, and brings to market world-class American craft
beers.
Our distinctive portfolio combines the power of Kona Brewing
Company, a dynamic, fast-growing national craft beer brand, with
strong regional breweries and innovative lifestyle brands:
Appalachian Mountain Brewery, Cisco Brewers, Omission Brewing Co.,
Redhook Brewery, Square Mile Cider Co., Widmer Brothers Brewing,
and Wynwood Brewing Co. CBA nurtures the growth and development of
its brands in today’s increasingly competitive beer market through
our state-of-the-art brewing and distribution capability,
integrated sales and marketing infrastructure, and strong focus on
partnerships, local community and sustainability.
Formed in 2008, CBA is headquartered in Portland, Oregon and
operates breweries and brewpubs across the U.S. CBA beers are
available in all 50 U.S. states and 30 different countries around
the world. For more information about CBA and our brands, please
visit www.craftbrew.com.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190905005277/en/
Jenny McLean, Director of Communications, (503) 331-7248,
jenny.mclean@craftbrew.com
Craft Brew Alliance (NASDAQ:BREW)
Historical Stock Chart
From Mar 2024 to Apr 2024
Craft Brew Alliance (NASDAQ:BREW)
Historical Stock Chart
From Apr 2023 to Apr 2024