USA: Boston Beer Announces Second Quarter 2000 Results
Gross profit was 56.8% of net sales for the second quarter 2000 vs. 56.5% in the same period of 1999. Earnings for the quarter ended June 24, 2000 were $.19 per share compared to $.18 per share for the quarter ended June 26, 1999.
For the second quarter wholesaler depletions grew by 5.1%, with Samuel Adams Boston Lager and Samuel Adams Seasonals growing by 4.0%, as compared to the same period of 1999. Total depletions for the first six months of 2000 increased 5.9%, versus 1999, while Samuel Adams Boston Lager and Samuel Adams Seasonals had combined depletions growth of 5.8%.
Orders in hand for the July/August period of 2000 indicate that total shipments will be 4.3% above those in July/August 1999 (including shipments of BoDean's Twisted Tea). Samuel Adams Boston Lager and Samuel Adams Seasonals have a projected growth of 5.2%. Actual shipments for July/August 2000 may differ, however, and no inferences should be drawn with respect to shipments in future periods.
For the six months ended June 24, 2000, barrels sold increased 8.1% to 626,000 from 579,000 in the same period of 1999. Net sales increased to $95.7 million in the first half of 2000 from $88.0 million in the first half of 1999. The Company posted a 56.3% gross profit margin for the six month period versus 56.2% in 1999 and increased its combined advertising promotion and selling expense by over $2.00 per barrel, to 38.4% of net sales. Earnings for the first six months of 2000 were $.38 per share compared to $.33 per share for the six months ended June 26, 1999.
During the second quarter of 2000 the Company repurchased 312,800 shares of its Class A Common Stock for an aggregate purchase price of $2,500,000. Since November 1999, the Company has repurchased a total of 2,408,700 shares of its Class A Common Stock for an aggregate purchase price of $18,100,000. Effective April 14, 2000, the Board of Directors approved an increase of $5,000,000 from $20,000,000 to $25,000,000 for the repurchase of its Class A Common Stock. The Company's financial position continues to be strong. Cash and short-term unrestricted investments are $40.7 million for the period ended June 24, 2000. The Company continues to generate significant positive cash flows.
The Boston Beer Company was founded by Jim Koch in 1984 and Samuel Adams Boston Lager was introduced in April 1985. Today, The Boston Beer Company, winner of 22 medals at The Great American Beer Festival, is the leading American high-end brewer. For more information about The Boston Beer Company, visit our website at www.samadams.com or www.bostonbeer.com for financial information.
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 statement. 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 25, 1999 and for December 26, 1998. Copies of these documents may be obtained by contacting the Company or the SEC.
THE BOSTON BEER COMPANY, INC.
(In thousands, except per share data)
3 Months Ended 6 Months Ended
June 24, June 26, June 24, June 26,
2000 1999 2000 1999
Barrels sold 336 311 626 579
Gross sales $57,246 $52,575 $106,522 $98,107
Less excise taxes 5,807 5,387 10,826 10,068
Net sales 51,439 47,188 95,696 88,039
Cost of goods sold 22,216 20,508 41,831 38,585
Gross profit 29,223 26,680 53,865 49,454
& selling expenses 20,595 17,990 36,735 32,758
General & administrative
expenses 3,048 2,968 6,030 5,877
expenses 23,643 20,958 42,765 38,635
Operating income 5,580 5,722 11,100 10,819
Other income (expenses),
net 527 512 1,169 952
Income before income
taxes 6,107 6,234 12,269 11,771
Income taxes 2,565 2,618 5,153 4,926
Net income $3,542 $3,616 $7,116 $6,845
Earnings per share -
basic $0.19 $0.18 $0.38 $0.33
Earnings per share -
diluted $0.19 $0.18 $0.38 $0.33
shares - basic 18,264 20,523 18,561 20,518
shares - diluted 18,327 20,570 18,614 20,569
EBITDA $7,113 $7,116 $14,077 $13,586
Copies of The Boston Beer Company's press releases, including quarterly financial results, are available by fax (free of charge) by calling Company News On Call @ 1-800-758-5804 (Ext. 108764) or on the Internet at www.samadams.com.
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