The Boston Beer Company, Inc., reported net income for the fourth quarter of $17.8 million, or $1.33 per diluted share, an increase of $5.6 million, or $0.46 per diluted share, from the fourth quarter of 2010. This increase was primarily due to increased core shipment volume and the favorable impact of a state income tax settlement in the fourth quarter, partially offset by increased advertising, promotional and selling expenses. Net revenue for the fourth quarter of 2011 was $142.1 million, an increase of $26.3 million, or 23%, over the fourth quarter last year, mainly due to core shipment volume gains with minor improvement in pricing. For the twelve months ended December 31, 2011, net revenue increased by 11% to $513.0 million and the Company's earnings per diluted share, inclusive of the recall settlement, were $4.81, an increase of $1.29 per diluted share compared to 2010.
Highlights of this release include:
- Earnings per diluted share of $1.17 for the quarter and $3.73 year to date, excluding the favorable impact of $0.16 per diluted share from a state income tax settlement in the fourth quarter and the favorable impact of $0.92 per diluted share of the recall settlement received in the second quarter.
- Depletions growth of 4% for the fourth quarter and 7% for the full year, with one less selling day in the fourth quarter and equal selling days for the full year.
- Shipments growth of 19% for the 14 week fiscal fourth quarter as compared to the prior year fourth quarter that included only 13 weeks and shipment growth of 9% for the 53 week fiscal year compared to the prior fiscal year which included only 52 weeks.
- On a calendar year basis our shipments growth and depletion growth were equivalent at approximately 7% for the full year.
- Gross margin of 56% for the fourth quarter and 55% for the full year.
- Advertising, promotional and selling expense increase of $5.0 million, or 14%, for the fourth quarter and $21.5 million, or 16% for the year, primarily due to planned increased investments behind our brands.
- During the year, approximately 760,000 shares of Class A Common Stock were repurchased at a cost of approximately $62.8 million.
- Estimated 2012 depletion growth of between 6% and 9% and full year 2012 earnings per diluted share of $3.80 to $4.20.
Jim Koch, Chairman and Founder of the Company, commented, "I am pleased that in 2011 The Boston Beer Company continued to lead the craft beer industry both in innovation and variety. We brewed and sold more than 50 distinct styles of Samuel Adams beers including Tasman Red, Griffin's Bow and Thirteenth Hour to name just three. Many of our new styles really push the boundaries of brewing. Looking to 2012, we continue to innovate and are excited about the introduction of our new spring seasonal, Samuel Adams Alpine Spring, an unfiltered lager that showcases Tettnang Noble Hops, as well as our Single Batch Series, a series of small batch limited-edition beers and other innovative beers like our new Whitewater IPA. These new beers have been well received by drinkers, retailers and wholesalers. While it is too early to judge repeat purchase, we believe they will help us start 2012 strong and our challenge will be maintaining this momentum. We continue to explore ways to improve our sales execution, our brand strength and our position within the craft category and remain positive about the future of craft beer and our potential for future growth. I am delighted that we have partnered with my friend Alan Newman to explore opportunities in craft beer beyond our Samuel Adams initiatives and I look forward to the innovations this will generate."
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