Sacramento Bee: Boston Beer Reports First Quarter 2012 Results
From The Sacramento Bee:
The Boston Beer Company, Inc. (NYSE: SAM) reported first quarter 2012 net revenue of $113.3 million, an increase of $11.1 million or 11%, over the same period last year, mainly due to core shipment growth of 8%. Net income for the first quarter was $7.5 million, or $0.56 per diluted share, an increase of $3.5 million, or $0.28 per diluted share, from the first quarter of 2011. This increase was primarily due to net revenue increases partially offset by increased investments in advertising, promotional and selling expenses.
Highlights of this release include:
- Depletions for the 13 week period ending March 31, 2012 grew by 10% from the comparable 13 week period in the prior year ending April 2, 2011.
- The Company achieved its 2012 planned price increases of approximately 3% during the quarter.
- First quarter gross margin was 55%; the Company maintains its full year gross margin target of between 53% and 55%.
- Advertising, promotional and selling expense increased by $2.9 million or 8% for the quarter, primarily due to planned increased investments behind the Company's brands.
- Estimated full year 2012 depletion growth of between 6% and 9% and full year 2012 earnings per diluted share of $3.80 to $4.20 remain unchanged
- Estimated 2012 Capital spending of $40 million to $60 million remains unchanged
Jim Koch, Chairman and Founder of the Company, commented, "I am proud that we continue to lead the craft industry in both innovation and variety. In the first quarter, we introduced our new spring seasonal, Samuel Adams Alpine Spring, an unfiltered lager that showcases Tettnang Noble Hops. We have been brewing with Tettnang Noble Hops for more than 28 years and I am particularly pleased with how well Alpine Spring was received by drinkers, retailers and wholesalers. Late in the first quarter, we had a smooth transition from Alpine Spring to our Summer Seasonal, Samuel Adams Summer Ale, now in its seventeenth year and still one of my favorites. We have also been introducing some exciting new small batch brews, most recently Samuel AdamsDark Depths and Samuel Adams Cinder Bock which have quickly found their niche among craft aficionados. We are still seeing expanded distribution of domestic specialty brands and craft brands, but even so, we grew the Samuel Adams brand during the quarter. We are happy with the health of our brand portfolio and remain positive about the future of craft beer."
For the full article, visit www.sacbee.com.