e10vq
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
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þ |
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES AND EXCHANGE ACT OF 1934 |
For the quarterly period ended June 25, 2011
OR
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o |
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES AND EXCHANGE ACT OF 1934 |
For the transition period from to
Commission file number: 1-14092
THE BOSTON BEER COMPANY, INC.
(Exact name of registrant as specified in its charter)
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MASSACHUSETTS
(State or other jurisdiction of incorporation
or organization)
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04-3284048
(I.R.S. Employer
Identification No.) |
One Design Center Place, Suite 850, Boston, Massachusetts
(Address of principal executive offices)
02210
(Zip Code)
(617) 368-5000
(Registrants telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by
Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for
such shorter period that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days.
Yes þ No o
Indicate by check mark whether the registrant has submitted electronically and posted on its
corporate Web site, if any, every Interactive Data File required to be submitted and posted
pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period
that the registrant was required to submit and post such files).
Yes þ No o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a
non-accelerated filer or a smaller reporting company. See definitions of large accelerated
filer, accelerated filer and small reporting company in Rule 12b-2 of the Exchange Act.
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Large accelerated filer o
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Accelerated filer þ
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Non-accelerated filer o
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Smaller reporting company o |
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(Do not check if a smaller reporting company) |
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Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act.)
Yes o No þ
Number of shares outstanding of each of the issuers classes of common stock, as of July 29, 2011:
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Class A Common Stock, $.01 par value
Class B Common Stock, $.01 par value
(Title of each class)
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9,007,952
4,107,355
(Number of shares) |
THE BOSTON BEER COMPANY, INC.
FORM 10-Q
QUARTERLY REPORT
JUNE 25, 2011
TABLE OF CONTENTS
2
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PART I. Item 1. |
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FINANCIAL INFORMATION |
THE BOSTON BEER COMPANY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
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June 25, |
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December 25, |
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2011 |
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2010 |
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(unaudited) |
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Assets |
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Current Assets: |
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Cash and cash equivalents |
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$ |
66,315 |
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$ |
48,969 |
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Accounts receivable, net of allowance for doubtful accounts of $61 and $121 as of June 25, 2011 and December 25, 2010, respectively |
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26,503 |
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20,017 |
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Inventories |
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31,828 |
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26,614 |
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Prepaid expenses and other assets |
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13,906 |
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12,756 |
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Deferred income taxes |
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3,648 |
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3,648 |
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Total current assets |
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142,200 |
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112,004 |
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Property, plant and equipment, net |
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139,844 |
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142,889 |
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Other assets |
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1,836 |
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2,260 |
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Goodwill |
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1,377 |
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1,377 |
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Total assets |
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$ |
285,257 |
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$ |
258,530 |
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Liabilities and Stockholders Equity |
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Current Liabilities: |
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Accounts payable |
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$ |
24,960 |
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$ |
19,423 |
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Accrued expenses and other current liabilities |
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57,621 |
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52,776 |
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Total current liabilities |
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82,581 |
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72,199 |
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Deferred income taxes |
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17,387 |
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17,087 |
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Other liabilities |
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3,296 |
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3,656 |
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Total liabilities |
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103,264 |
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92,942 |
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Commitments and Contingencies |
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Stockholders Equity: |
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Class A Common Stock, $.01 par value; 22,700,000 shares authorized; 9,089,779 and 9,288,015 shares issued and outstanding as of
June 25, 2011 and December 25, 2010, respectively |
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91 |
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93 |
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Class B Common Stock, $.01 par value; 4,200,000 shares authorized; 4,107,355 shares issued and outstanding |
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41 |
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41 |
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Additional paid-in capital |
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129,069 |
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122,016 |
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Accumulated other comprehensive loss, net of tax |
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(438 |
) |
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(438 |
) |
Retained earnings |
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53,230 |
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43,876 |
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Total stockholders equity |
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181,993 |
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165,588 |
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Total liabilities and stockholders equity |
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$ |
285,257 |
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$ |
258,530 |
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The accompanying notes are an integral part of these consolidated financial statements.
3
THE BOSTON BEER COMPANY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
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Three months ended |
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Six months ended |
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June 25, |
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June 26, |
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June 25, |
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June 26, |
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2011 |
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2010 |
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2011 |
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2010 |
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Revenue |
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$ |
146,014 |
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$ |
141,158 |
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$ |
257,423 |
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$ |
243,628 |
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Less excise taxes |
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12,057 |
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11,595 |
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21,290 |
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20,035 |
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Net revenue |
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133,957 |
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129,563 |
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236,133 |
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223,593 |
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Cost of goods sold |
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57,884 |
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57,291 |
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107,686 |
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103,427 |
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Gross profit |
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76,073 |
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72,272 |
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128,447 |
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120,166 |
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Operating expenses: |
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Advertising, promotional and selling expenses |
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40,518 |
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35,091 |
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76,030 |
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64,228 |
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General and administrative expenses |
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11,132 |
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10,547 |
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21,405 |
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19,000 |
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Settlement proceeds |
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(20,500 |
) |
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(20,500 |
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Total operating expenses |
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31,150 |
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45,638 |
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76,935 |
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83,228 |
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Operating income |
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44,923 |
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26,634 |
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51,512 |
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36,938 |
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Other income, net: |
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Interest income |
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2 |
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6 |
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3 |
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8 |
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Other income, net |
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21 |
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4 |
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29 |
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3 |
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Total other income, net |
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23 |
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10 |
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32 |
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11 |
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Income before provision for income taxes |
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44,946 |
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26,644 |
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51,544 |
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36,949 |
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Provision for income taxes |
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16,927 |
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10,374 |
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19,566 |
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14,419 |
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Net income |
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$ |
28,019 |
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$ |
16,270 |
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$ |
31,978 |
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$ |
22,530 |
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Net income per common share basic |
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$ |
2.12 |
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$ |
1.18 |
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$ |
2.41 |
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$ |
1.62 |
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Net income per common share diluted |
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$ |
2.01 |
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$ |
1.13 |
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$ |
2.29 |
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$ |
1.57 |
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Weighted-average number of common shares basic |
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13,223 |
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13,838 |
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13,249 |
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13,899 |
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Weighted-average number of common shares diluted |
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13,947 |
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14,390 |
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13,977 |
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14,381 |
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The accompanying notes are an integral part of these consolidated financial statements.
4
THE BOSTON BEER COMPANY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
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Six months ended |
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June 25, |
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June 26, |
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2011 |
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2010 |
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Cash flows provided by operating activities: |
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Net income |
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$ |
31,978 |
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$ |
22,530 |
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Adjustments to reconcile net income to net cash provided by operating activities: |
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Depreciation and amortization |
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8,965 |
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8,459 |
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Impairment of long-lived assets |
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22 |
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Loss (gain) on disposal of property, plant and equipment |
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117 |
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(5 |
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Bad debt (recovery) expense |
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(60 |
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20 |
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Stock-based compensation expense |
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3,522 |
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1,635 |
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Excess tax benefit from stock-based compensation arrangements |
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(2,167 |
) |
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(2,112 |
) |
Deferred income taxes |
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300 |
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Changes in operating assets and liabilities: |
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Accounts receivable |
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(6,426 |
) |
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(8,965 |
) |
Inventories |
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(5,214 |
) |
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221 |
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Prepaid expenses and other assets |
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(833 |
) |
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(537 |
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Accounts payable |
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5,537 |
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(2,717 |
) |
Accrued expenses and other current liabilities |
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7,053 |
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7,482 |
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Other liabilities |
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(360 |
) |
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1,149 |
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Net cash provided by operating activities |
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42,434 |
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27,160 |
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Cash flows used in investing activities: |
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Purchases of property, plant and equipment |
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(6,022 |
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(4,214 |
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Proceeds from disposal of property, plant and equipment |
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20 |
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Net cash used in investing activities |
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(6,022 |
) |
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(4,194 |
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Cash flows used in financing activities: |
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Repurchase of Class A Common Stock |
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(22,627 |
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(30,219 |
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Proceeds from exercise of stock options |
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1,036 |
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2,770 |
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Excess tax benefit from stock-based compensation arrangements |
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2,167 |
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2,112 |
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Net proceeds from sale of investment shares |
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358 |
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569 |
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Net cash used in financing activities |
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(19,066 |
) |
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(24,768 |
) |
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Change in cash and cash equivalents |
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17,346 |
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(1,802 |
) |
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Cash and cash equivalents at beginning of period |
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48,969 |
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55,481 |
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Cash and cash equivalents at end of period |
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$ |
66,315 |
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$ |
53,679 |
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Supplemental disclosure of cash flow information: |
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Income taxes paid |
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$ |
10,344 |
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$ |
7,805 |
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The accompanying notes are an integral part of these consolidated financial statements.
5
THE BOSTON BEER COMPANY, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
A. Organization and Basis of Presentation
The Boston Beer Company, Inc. and its subsidiaries (the Company) are engaged in the business of
selling alcohol beverages throughout the United States and in selected international markets, under
the trade names, The Boston Beer Company, Twisted Tea Brewing Company and HardCore Cider
Company. The Companys Samuel Adams® beer and Sam Adams Light® are produced and sold under the
trade name, The Boston Beer Company. The accompanying consolidated balance sheet as of June 25,
2011 and the consolidated statements of operations and consolidated statements of cash flows for
the interim periods ended June 25, 2011 and June 26, 2010 have been prepared by the Company,
without audit, in accordance with U.S. generally accepted accounting principles for interim
financial information and pursuant to the rules and regulations of the Securities and Exchange
Commission. Accordingly, they do not include all of the information and footnotes required for
complete financial statements by generally accepted accounting principles and should be read in
conjunction with the audited financial statements included in the Companys Annual Report on Form
10-K for the year ended December 25, 2010.
Managements Opinion
In the opinion of the Companys management, the Companys unaudited consolidated balance sheet as
of June 25, 2011 and the results of its consolidated operations and consolidated cash flows for the
interim periods ended June 25, 2011 and June 26, 2010, reflect all adjustments (consisting only of
normal and recurring adjustments) necessary to present fairly the results of the interim periods
presented. The operating results for the interim periods presented are not necessarily indicative
of the results expected for the full year.
B. Inventories
Inventories consist of raw materials, work in process and finished goods. Raw materials, which
principally consist of hops, other brewing materials and packaging, are stated at the lower of
cost, determined on the first-in, first-out basis, or market. The cost elements of work in process
and finished goods inventory consist of raw materials, direct labor and manufacturing overhead.
Inventories consist of the following:
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June 25, |
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December 25, |
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2011 |
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2010 |
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(in thousands) |
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Raw materials |
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$ |
20,416 |
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$ |
15,986 |
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Work in process |
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5,297 |
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|
5,048 |
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Finished goods |
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6,115 |
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|
5,580 |
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$ |
31,828 |
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$ |
26,614 |
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6
C. Net Income per Share
The following table sets forth the computation of basic and diluted net income per share:
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Three months ended |
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Six months ended |
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|
June 25, |
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June 26, |
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June 25, |
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June 26, |
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|
2011 |
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2010 |
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|
2011 |
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2010 |
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(in thousands, except per share data) |
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Net income |
|
$ |
28,019 |
|
|
$ |
16,270 |
|
|
$ |
31,978 |
|
|
$ |
22,530 |
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Weighted average shares of Class A Common Stock |
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9,116 |
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|
|
9,731 |
|
|
|
9,142 |
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|
|
9,792 |
|
Weighted average shares of Class B Common Stock |
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|
4,107 |
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|
|
4,107 |
|
|
|
4,107 |
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|
|
4,107 |
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|
|
|
|
|
|
|
|
|
|
|
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|
Shares used in net income per common share basic |
|
|
13,223 |
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|
|
13,838 |
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|
|
13,249 |
|
|
|
13,899 |
|
Effect of dilutive securities: |
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|
|
|
|
|
|
|
|
|
|
|
|
|
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|
Stock options |
|
|
676 |
|
|
|
502 |
|
|
|
680 |
|
|
|
443 |
|
Non-vested investment shares and restricted stock |
|
|
48 |
|
|
|
50 |
|
|
|
48 |
|
|
|
39 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dilutive potential common shares |
|
|
724 |
|
|
|
552 |
|
|
|
728 |
|
|
|
482 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in net income per common share diluted |
|
|
13,947 |
|
|
|
14,390 |
|
|
|
13,977 |
|
|
|
14,381 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common share basic |
|
$ |
2.12 |
|
|
$ |
1.18 |
|
|
$ |
2.41 |
|
|
$ |
1.62 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common share diluted |
|
$ |
2.01 |
|
|
$ |
1.13 |
|
|
$ |
2.29 |
|
|
$ |
1.57 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income per common share for each share of Class A Common Stock and Class B Common Stock
is $2.12 and $1.18 for the three months ended June 25, 2011 and June 26, 2010, respectively, and
$2.41 and $1.62 for the six months ended June 25, 2011 and June 26, 2010, respectively, as each
share of Class A and Class B participates equally in earnings. Shares of Class B are convertible
at any time into shares of Class A on a one-for-one basis at the option of the stockholder.
During the three and six-months ended June 25, 2011, weighted-average options to purchase
approximately 243,600 and
210,200 shares, respectively, of Class A Common Stock were outstanding but not included in
computing diluted income per share because their effects were anti-dilutive. During the three and
six-months ended June 26, 2010, weighted-average options to purchase approximately 65,700 and
60,300 shares, respectively, of Class A Common Stock were outstanding but not included in computing
diluted income per share because their effects were anti-dilutive. Additionally, performance-based
stock options to purchase 67,850 and 115,000 shares of Class A Common Stock were outstanding as of
June 25, 2011 and June 26, 2010, respectively, but not included in computing diluted income per
share because the performance criteria of these stock options were not expected to be met as of the
respective dates. Furthermore, performance-based stock options to purchase 229,700 shares of Class
A Common Stock were not included in computing diluted income per share because the performance
criteria of these stock options were not met and the options were cancelled during the six months
ended June 26, 2010.
D. Comprehensive Income or Loss
Comprehensive income or loss represents net income or loss, plus defined benefit plans liability
adjustment, net of tax effect. The defined benefit plans liability adjustments for the interim
periods ended June 25, 2011 and June 26, 2010 were not material.
E. Commitments and Contingencies
Purchase Commitments
The Company had outstanding non-cancelable purchase commitments related to advertising contracts
of approximately $6.5 million at June 25, 2011.
The Company has entered into contracts for the supply of a portion of its hops requirements.
These purchase contracts extend through crop year 2015 and specify both the quantities and prices,
mostly denominated in Euros, to which the Company is committed. Hops purchase commitments
outstanding at June 25, 2011 totaled $38.6 million, based on the exchange rates on that date.
7
Currently, the Company has entered into contracts for barley with one major supplier. The
contracts include crop years 2010 and 2011 and cover the Companys barley requirements for 2011
and a portion of 2012. Barley purchase commitments outstanding at June 25, 2011 totaled $14.2
million.
The Company sources glass bottles pursuant to a Glass Bottle Supply Agreement with Anchor Glass
Container Corporation (Anchor) under which Anchor is the exclusive supplier of certain glass
bottles for the Companys breweries in Cincinnati, Ohio (the Cincinnati Brewery) and
Breinigsville, Pennsylvania (the Pennsylvania Brewery). This agreement also establishes the
terms on which Anchor may supply glass bottles to other breweries where the Company brews its
beers. Under the agreement with Anchor, the Company has minimum and maximum purchase commitments
that are based on Company-provided production estimates, which, under normal business conditions,
are expected to be fulfilled.
Currently, the Company brews more than 95% of its volume at Company owned breweries. In the normal
course of its business, the Company has historically entered into various production arrangements
with other brewing companies. Pursuant to these arrangements, the Company purchases the liquid
produced by those brewing companies, including the raw materials that are used in the liquid, at
the time such liquid goes into fermentation. The Company is required to repurchase all unused raw
materials purchased by the brewing company specifically for the Companys beers at the brewing
companys cost upon termination of the production arrangement. The Company is also obligated to
meet annual volume requirements in conjunction with certain production arrangements, which are not
material to the Companys operations.
The Company had various other non-cancelable purchase commitments at June 25, 2011, which amounted
to $3.6 million.
Litigation
In May 2011, the Company and its former glass bottle supplier entered into an agreement to settle
all claims regarding the recall implemented by the Company in 2008. Pursuant to the settlement
agreement, the Company received a cash payment of $20.5 million and all parties released each other
of any claims as they relate to this matter. The Company recorded the settlement as an offset to
operating expenses.
In 2009, the Company was informed that ownership of the High Falls brewery located in
Rochester, New York (the Rochester Brewery) changed and that the new owners would not assume the
Companys existing contract for brewing services at the Rochester Brewery. Brewing of the
Companys products at the Rochester Brewery subsequently ceased in April 2009. In February 2010,
the Company filed a Demand for Arbitration with the American Arbitration Association (the
arbitration) which, as amended, asserted a breach of contract claim against the previous owner of
the Rochester Brewery. In March 2010, the new and previous owners of the Rochester Brewery filed a
complaint in federal court seeking a declaratory judgment and injunction to require certain of the
Companys claims to proceed in court, rather than in the arbitration. In April 2010, the Company
filed an answer to that complaint and asserted certain counterclaims, including a claim against the
new owners of the Rochester Brewery for interference with contract. The court denied the new and
previous owners motion for a preliminary injunction in June 2010. A hearing in the arbitration
was held in October 2010. In January 2011, the arbitrator issued an award of approximately $1.3
million in damages and expenses to be paid by High Falls Brewery Company, LLC to the Company,
although the likelihood of collection of such award is in doubt. A hearing was held on a pre-trial
motion in the federal court action in April 2011, but no ruling has yet been received. The Company
does not believe that its inability to avail itself of production capacity at the Rochester Brewery
will, in the near future, have a material impact on its ability to meet demand for its products.
In February 2011, the Company filed a complaint with the International Trade Commission (ITC)
against a brewery and a glass manufacturer/importer asserting that the glass design used by the
brewery to promote its products infringed on the Companys patented glass design. The matter was
resolved by settlement agreement in May 2011 under which the brewery and glass
manufacturer/importer agreed to discontinue all sale, use and promotion of the glass. A consent
order has been issued by the ITC prohibiting them from engaging in any importation, distribution,
or sale of their glass design or any glass having a design substantially similar to the Companys
patented glass design.
The Company is not a party to any pending or threatened litigation, the outcome of which would
be expected to have a material adverse effect upon its financial condition or the results of its
operations. In general, while the Company believes it conducts its business appropriately in
accordance with laws, regulations and industry guidelines, claims, whether or not meritorious,
could be asserted against the Company that might adversely impact the Companys results.
8
F. Income Taxes
As of June 25, 2011 and December 25, 2010, the Company had approximately $7.2 million and $7.1
million, respectively, of unrecognized income tax benefits. An increase of $97,000 in unrecognized
tax benefits was recorded for the six months ended June 25, 2011.
The Companys practice is to classify interest and penalties related to income tax matters in
income tax expense. As of June 25, 2011 and December 25, 2010, the Company had $4.0 million and
$3.7 million, respectively, accrued for interest and penalties.
The Companys state income tax returns remain subject to examination for three or four years
depending on the states statute of limitations. In addition, the Company is generally obligated to
report changes in taxable income arising from federal income tax audits.
In August 2008, the Massachusetts Department of Revenue (MA DOR) commenced an examination of the
Companys 2004, 2005 and 2006 corporate income tax returns. In addition, in October 2009, the MA
DOR expanded the original examination to include the 2007 and 2008 corporate income tax returns. At
June 25, 2011, the examination was completed and the Company is in the process of appealing the
results of the audit. The Company continues to believe that the reserves related to this audit were
adequate as of June 25, 2011. The Company is also being audited by two other states as of June 25,
2011.
It is reasonably possible that the Companys unrecognized tax benefits may increase or decrease in
2011 if there is a commencement or completion of federal income tax audits or certain state income
tax audits; however, the Company cannot estimate the range of such possible changes. The Company
does not expect that any potential changes would have a material impact on the Companys financial
position, results of operations, or cash flows.
G. Product Recall
In April 2008, the Company announced a voluntary product recall of certain glass bottles of its
Samuel Adams® products. The recall was a precautionary step and resulted from routine quality
control inspections at the Cincinnati Brewery, which detected glass inclusions in certain bottles
of beer. The recall process was substantially completed during the fourth quarter of 2008.
The following table summarizes the Companys reserves and reserve activities for the product recall
for the six months ended June 25, 2011 (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reserves at |
|
|
|
|
|
|
|
|
|
|
Reserves at |
|
|
|
December 25, |
|
|
Changes in |
|
|
Reserves |
|
|
June 25, |
|
|
|
2010 |
|
|
Estimates |
|
|
Used |
|
|
2011 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Excise tax credit |
|
$ |
(158 |
) |
|
$ |
|
|
|
$ |
|
|
|
$ |
(158 |
) |
Recall-related costs |
|
|
255 |
|
|
|
|
|
|
|
|
|
|
|
255 |
|
Inventory reserves |
|
|
2,796 |
|
|
|
25 |
|
|
|
(469 |
) |
|
|
2,352 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
2,893 |
|
|
$ |
25 |
|
|
$ |
(469 |
) |
|
$ |
2,449 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
During the second quarter of 2011, the Company and its former glass bottle supplier entered into an
agreement to settle all claims regarding the recall. The Company received a cash payment of $20.5
million, which was recorded as an offset to operating expenses, and all parties have released each
other on any claims as they relate to this matter. In addition, the Company reversed approximately
$0.6 million in reserves against invoices due to the supplier, which was recorded as an offset to
cost of goods sold.
Although the Company is not aware of any additional quality or safety issues that are likely to
result in material recalls or withdrawals, there can be no assurance that additional issues will
not be identified in the future.
9
H. Line of Credit
The Company has a credit facility in place that provides for a $50.0 million revolving line of
credit which expires on March 31, 2013. As of June 25, 2011, there were no borrowings outstanding
and the line of credit was fully available to the Company for borrowing. The Company was not in
violation of any of its covenants to the lender under the credit facility.
I. Fair Value of Financial Instruments
The Company determines the fair value of its financial assets and liabilities in accordance with
ASC Topic 820. The Company believes that the carrying amount of its cash, accounts receivable,
accounts payable and accrued expenses approximates fair value due to the short-term nature of these
assets and liabilities. The Company is not exposed to significant interest, currency or credit
risks arising from these financial assets and liabilities.
J. Stock-Based Option Grants
On January 1, 2011, the Company granted options to purchase an aggregate of 188,200 shares of the
Companys Class A Common Stock with a weighted average fair value of $44.80 per share, of which
175,000 shares were special long-term retention stock options to certain members of management.
All of the special long-term retention stock options are service-based options with 75% of the
shares vesting on January 1, 2016 and the remaining shares vesting annually in equal tranches over
the following four years.
On March 11, 2011, the Company granted an additional option to purchase 40,000 shares of the
Companys Class A Common Stock with a weighted average fair value of $40.39 per share. The option
is a service-based stock option and vests annually at approximately 33% per year starting on the
third anniversary of the grant date.
On May 25, 2011, the Company granted options to purchase an aggregate of 30,000 shares of the
Companys Class A Common Stock to the Companys non-employee Directors. These options have a
weighted average fair value of $35.81 per share. All of the options vested immediately on the date
of grant.
K. Subsequent Events
On July 26, 2011, the Board of Directors approved an increase of $25.0 million to the previously
approved $225.0 million share buyback expenditure limit, for a new limit of $250.0 million.
The Company evaluated subsequent events occurring after the balance sheet date, June 25, 2011, and
concluded that there were no other events of which management was aware that occurred after the
balance sheet date that would require any adjustment to the accompanying consolidated financial
statements.
10
|
|
|
PART I. Item 2. |
|
MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS |
The following is a discussion of the significant factors affecting the consolidated operating
results, financial condition and liquidity and cash flows of The Boston Beer Company, Inc. (the
Company or Boston Beer) for the three and six-month periods ended June 25, 2011, as compared to
the three and six-month periods ended June 26, 2010. This discussion should be read in conjunction
with the Managements Discussion and Analysis of Financial Condition and Results of Operations, and
the Consolidated Financial Statements of the Company and Notes thereto included in the Companys
Annual Report on Form 10-K for the fiscal year ended December 25, 2010.
RESULTS OF OPERATIONS
Boston Beers flagship product is Samuel Adams Boston Lager®. For purposes of this discussion,
Boston Beers core brands or core products include all products sold under the Samuel Adams®,
Sam Adams®, Twisted Tea® and HardCore® trademarks. Core products do not include the products
brewed or packaged at the Companys breweries in Cincinnati, Ohio (the Cincinnati Brewery) and
Breinigsville, Pennsylvania (the Pennsylvania Brewery) under contract arrangements for third
parties that are not significant to the Companys total sales in 2011 and 2010.
Three Months Ended June 25, 2011 compared to Three Months Ended June 26, 2010
Net revenue. Net revenue increased by $4.4 million, or 3.4%, to $134.0 million for the three
months ended June 25, 2011, as compared to $129.6 million for the three months ended June 26, 2010,
due primarily to increased shipments and pricing improvements.
Volume. Total shipment volume increased by 3.0% to 651,000 barrels for the three months ended June
25, 2011, as compared to 632,000 barrels for the three months ended June 26, 2010, due to core
shipments volume gains. Shipment volume for the core brands increased by 3.0% to 646,000 barrels,
due primarily to increases in shipments of Twisted Tea®, Samuel Adams®
Seasonals and the Samuel Adams® Brewmasters Collection, partially offset by decreases in
shipments of Samuel Adams Boston Lager® and Sam Adams Light®.
Depletions, or sales by wholesalers to retailers, of the Companys core products for the second
quarter of 2011 increased by approximately 6.8% versus the same
period in 2010, primarily due to increases in Twisted
Tea®,
Samuel Adams Boston
Lager®,
the Samuel
Adams®
Brewmasters Collection and Samuel
Adams®
Seasonals, partially offset by declines in Sam Adams Light®.
Year-to-date
depletions through July 2011 are estimated by the Company to be up
approximately 6% from the same period in 2010. Year-to-date shipments
through July 2011 are up approximately 6% compared to the same period
in 2010. The Company no longer provides information on orders in-hand
due to changes to the ordering process for Freshest Beer Program
wholesalers. The Company believes that inventory levels at
wholesalers at the end of the second quarter are similar to the
levels in previous years, except for those wholesalers participating in the Freshest Beer Program
whose inventories were approximately 190,000 cases lower than would otherwise be anticipated.
Net Selling Price. The net selling price per core product barrel increased by 0.5% to $206.90 per
barrel for the three months ended June 25, 2011, as compared to $205.97 per barrel for the same
period last year, due primarily to price increases, partially offset by product mix changes.
Gross profit. Gross profit for core products was $117.66 per barrel for the three months ended
June 25, 2011, as compared to $114.96 per barrel for the three months ended June 26, 2010. Gross
margin for core products was 56.9% for the three months ended June 25, 2011, as compared to 55.8%
for the three months ended June 26, 2010. The increase in gross profit per barrel of $2.70 and
gross margin of 1.1 percentage points is primarily due to the increase in net selling price per
barrel and a decrease in cost of goods sold per barrel.
Cost of goods sold for core brands was $89.23 per barrel for the three months ended June 25, 2011,
as compared to $91.01 per barrel for the three months ended June 26, 2010. The 2011 decrease in
cost of goods sold of $1.78 per core product barrel is due to decreased ingredient costs partially
offset by an unfavorable package mix and increased brewery processing costs.
The Company includes freight charges related to the movement of finished goods from its
manufacturing locations to wholesaler locations in its advertising, promotional and selling expense
line item. As such, the Companys gross margins may not be comparable to other entities that
classify costs related to distribution differently.
Advertising, promotional and selling. Advertising, promotional and selling expenses increased by
$5.4 million, or 15.4%, to $40.5 million for the three months ended June 25, 2011, as compared to
$35.1 million for the three months ended June 26, 2010. The increase is primarily a result of
planned increased investments in local marketing and advertising activities, higher costs for
additional sales personnel and increased costs of freight to wholesalers.
11
Such expenses for core brands were 30.3% of net revenue, or $62.72 per barrel, for the three months
ended June 25, 2011, as compared to 27.2% of net revenue, or $55.97 per barrel, for the three
months ended June 26, 2010. The increases in advertising, promotional and selling expenses per
barrel and as a percentage of net revenue reflect the fact that advertising, promotional and
selling expenses are increasing at a higher rate than core shipment volume. The Company will
invest in advertising and promotional campaigns that it believes are effective, but there is no
guarantee that such investment will generate sales growth.
The Company conducts certain advertising and promotional activities in its wholesalers markets,
and the wholesalers make contributions to the Company for such efforts. These amounts are included
in the Companys statement of operations as reductions to advertising, promotional and selling
expenses. Historically, contributions from wholesalers for advertising and promotional activities
have amounted to between 2% and 4% of net sales. The Company may adjust its promotional efforts in
the wholesalers markets if changes occur in these promotional contribution arrangements, depending
on industry and market conditions.
General and administrative. General and administrative expenses increased by $0.6 million, or
5.7%, to $11.1 million for the three months ended June 25, 2011, as compared to $10.5 million for
the same period last year. The increase primarily resulted from increases in stock compensation
expense and salary and benefit costs.
Settlement proceeds. As noted in Footnote G Product Recall, the Company received proceeds of
$20.5 million during the second quarter of 2011, pursuant to an agreement to settle all claims
regarding the 2008 product recall.
Provision for income taxes. The Company recorded an income tax provision of $16.9 million for the
three months ended June 25, 2011, compared to $10.4 million for the three months ended June 26,
2010. The Companys effective tax rate for the second quarter of 2011 decreased to 38% from the
second quarter 2010 rate of 39%, as a result of higher pretax income but with no corresponding
increase in nondeductible expenses.
Six Months Ended June 25, 2011 compared to Six Months Ended June 26, 2010
Net revenue. Net revenue increased by $12.5 million, or 5.6%, to $236.1 million for the six months
ended June 25, 2011, from $223.6 million for the six months ended June 26, 2010, primarily due to
an increase in core brand shipment volume and minor pricing gains, partially offset by an increased
allowance for stale beer returns.
Volume. Total shipment volume increased by 5.9% to 1,153,000 barrels for the six months ended June
25, 2011, as compared to 1,089,000 barrels for the six months ended June 26, 2010, due to core
shipment volume gains. Shipment volume for the core brands increased by 5.8%, or 63,000 barrels,
due to increases in shipments of Twisted Tea®, Samuel Adams® Seasonals, the
Samuel Adams® Brewmasters Collection and Samuel Adams Boston Lager®,
partially offset by decreases in shipments of Sam Adams Light®.
Net Selling Price. The net selling price per barrel for core brands decreased by approximately
0.1% to $205.90 per barrel for the six months ended June 25, 2011 as compared to the prior year.
This decrease in net selling price per barrel is primarily due to increased stale beer returns and
product mix changes, partially offset by price increases.
Gross profit. Gross profit for core brands was $112.18 per barrel for the six months ended June
25, 2011, as compared to $110.86 for the six months ended June 26, 2010. Gross margin for core
products was 54.5% for the first six months of 2011, as compared to 53.8% for the same period in
2010. These increases are primarily due to a decrease in cost of goods sold per core barrel,
partially offset by a decrease in the net selling price per core barrel.
Cost of goods sold for core products decreased to $93.72 per barrel for the six months ended June
25, 2011, as compared to $95.33 per barrel for the same period last year. The decrease in cost of
goods sold of $1.61 per barrel resulted primarily from decreased ingredient costs partially offset
by an unfavorable package mix and increased brewery processing costs.
Advertising, promotional and selling. Advertising, promotional and selling expenses increased by
$11.8 million, or 18.4%, to $76.0 million for the six months ended June 25, 2011, as compared to
$64.2 million for the six months ended June 26, 2010. The increase is primarily a result of
planned increased investments in point of sale materials, local marketing and advertising
activities, higher costs for additional sales personnel and increased costs of freight to
wholesalers. Advertising, promotional and selling expenses for core brands were 32.3% of net
revenue, or $66.46 per barrel, for the six months ended June 25, 2011, as compared to 28.8% of net
revenue, or $59.42 per barrel, for the same period last year.
12
General and administrative. General and administrative expenses increased by 12.6%, or $2.4
million, to $21.4 million for the six months ended June 25, 2011 as compared to the same period
last year. The increase is largely driven by increases in stock compensation expense, salary and
benefit costs and consulting fees.
Settlement proceeds. As noted in Footnote G Product Recall, the Company received proceeds of
$20.5 million during the second quarter of 2011, pursuant to an agreement to settle all claims
regarding the 2008 product recall.
Provision for income taxes. The Companys effective tax rate for the first half of 2011 decreased
to 38% from the first half 2010 rate of 39%, as a result of higher pretax income but with no
corresponding increase in nondeductible expenses. The Company expects its full year tax rate to be
approximately 39%.
LIQUIDITY AND CAPITAL RESOURCES
Cash increased to $66.3 million as of June 25, 2011 from $49.0 million as of December 25, 2010,
primarily due to cash provided by operating activities, partially offset by cash used in financing
activities and cash used in investing activities.
Cash provided by operating activities consist of net income, adjusted for certain non-cash items,
such as depreciation and amortization, stock-based compensation expense and related excess tax
benefit, and other non-cash items included in operating results. Also affecting cash provided by
operating activities are changes in operating assets and liabilities, such as accounts receivable,
inventory, accounts payable and accrued expenses.
Cash provided by operating activities for the six months ended June 25, 2011 was $42.4 million
and primarily consisted of net income of $32.0 million, which includes the $20.5 million cash
payment noted in Footnote G Product Recall, and non-cash items of $10.7 million, partially
offset by a net increase in operating assets and liabilities of $0.3 million. Cash provided by
operating activities for the six months ended June 26, 2010 was $27.2 million and primarily
consisted of net income of $22.5 million and non-cash items of $8.0 million, partially offset by a
net increase in operating assets and liabilities of $3.4 million.
The Company used $6.0 million in investing activities during the six months ended June 25, 2011,
as compared to $4.2 million during the six months ended June 26, 2010. Investing activities
primarily consisted of equipment purchases to upgrade the Company-owned breweries.
Cash used in financing activities was $19.1 million during the six months ended June 25, 2011, as
compared to $24.8 million during the six months ended June 26, 2010. The $5.7 million change in
financing cash flow is primarily due to a decrease in stock repurchases under the Companys Stock
Repurchase Program.
During the six months ended June 25, 2011, the Company repurchased approximately 266,400 shares of
its Class A Common Stock for an aggregate purchase price of $22.6 million. On July 26, 2011, the
Board of Directors approved an increase of $25.0 million to the previously approved $225.0 million
share buyback expenditure limit, for a new limit of
$250.0 million. From June 26, 2011 through July 29,
2011, the Company repurchased an additional 91,800 shares of
its Class A Common Stock for a total cost of $8.2 million. Through July 29, 2011, the Company has
repurchased a cumulative total of approximately 10.1 million shares of its Class A Common Stock for
an aggregate purchase price of $219.9 million, and had approximately
$30.1 million remaining on the $250.0 million share buyback expenditure limit set by the Board of Directors.
The Company expects that its cash balance as of June 25, 2011 of $66.3 million, along with future
operating cash flow and the Companys unused line of credit of $50.0 million, will be sufficient to
fund future cash requirements. The Companys $50.0 million credit facility has a term not
scheduled to expire until March 31, 2013. The Company was not in violation of any of its covenants
to the lender under the credit facility and there were no amounts outstanding under the credit
facility as of the date of this filing.
2011 Outlook
Excluding the impact of the recall settlement of $0.92 per diluted share, and as a result of the
reduction in expectations for full year depletions and increased energy costs, the Company is
reducing its full year 2011 earnings per diluted share projection to between $3.20 and $3.60 from
the previous range of $3.45 and $3.95. This projection includes the estimated negative earnings
per share impact of between $0.10 and $0.20 due to reduced shipments related to the implementation
of the Freshest Beer Program. The Companys actual 2011 earnings per diluted share could vary
significantly from the current projection.
13
The competitive pricing environment continues to be challenging. The Company is exploring
opportunities for price increases in the second half of 2011 or early 2012 as it expects
significant barley cost pressures from the 2011 crop. Revenue per barrel for the full year is
currently expected to increase approximately 1% excluding any benefit of further 2011 price
movements. If the Company successfully executes the Freshest Beer Program for 50% of its volume in
2011, the Company would expect shipment growth of between 6% and 7%. The Company will continue to
focus on efficiencies at its breweries and is not currently anticipating any significant increases
in the costs of packaging and ingredients for 2011 beyond the anticipated increases in energy and
freight costs. Further increases in energy costs will have a material impact on 2011 costs.
Full-year 2011 gross margins are currently expected to be between 54% and 56%, after taking into
consideration the current known impact of implementing the Freshest Beer Program. The Company
intends to increase brand support investments by between $12.0 million and $18.0 million for the
full year 2011, which amount does not include any increases in freight costs for the shipment of
beer products to wholesalers. Approximately $10.0 million of
this increase has been incurred in the six months ending
June 25, 2011. The Company will increase its investments in brand support
commensurate with the opportunities for growth that it sees, but there is no guarantee such
increased investments will result in increased volumes.
Based on information currently available, the Company estimates full year capital expenditures of
between $15.0 million and $25.0 million, most of which relate to continued investments in the
Company-owned breweries and additional keg purchases. The actual amounts spent may nonetheless
differ significantly from these estimates. The Company believes that its capacity requirements for
2011 can be met by the Company-owned breweries and existing contracted capacity at third party
brewers.
THE POTENTIAL IMPACT OF KNOWN FACTS, COMMITMENTS, EVENTS AND UNCERTAINTIES
Off-balance Sheet Arrangements
At June 25, 2011, the Company did not have off-balance sheet arrangements as defined in
03(a)(4)(ii) of Regulation S-K.
Contractual Obligations
There were no material changes outside of the ordinary course of the Companys business to
contractual obligations during the six month period ended June 25, 2011.
Critical Accounting Policies
There were no material changes to the Companys critical accounting policies during the six month
period ended June 25, 2011.
Recent Accounting Pronouncements
None.
FORWARD-LOOKING STATEMENTS
In this Quarterly Report on Form 10-Q and in other documents incorporated herein, as well as in
oral statements made by the Company, statements that are prefaced with the words may, will,
expect, anticipate, continue, estimate, project, intend, designed and similar
expressions, are intended to identify forward-looking statements regarding events, conditions, and
financial trends that may affect the Companys future plans of operations, business strategy,
results of operations and financial position. These statements are based on the Companys current
expectations and estimates as to prospective events and circumstances about which the Company can
give no firm assurance. Further, any forward-looking statement speaks only as of the date on which
such statement is made, and the Company undertakes no obligation to update any forward-looking
statement to reflect subsequent events or circumstances. Forward-looking statements should not be
relied upon as a prediction of actual future financial condition or results. These forward-looking
statements, like any forward-looking statements, involve risks and uncertainties that could cause
actual results to differ materially from those projected or anticipated. Such risks and
uncertainties include the factors set forth below in addition to the other information set forth
in this Quarterly Report on Form 10-Q and in the section titled Other Risks and Uncertainties in
the Companys Annual Report on Form 10-K for the year ended December 25, 2010.
14
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Item 3. |
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QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
Since December 25, 2010, there have been no significant changes in the Companys exposures to
interest rate or foreign currency rate fluctuations. The Company currently does not enter into
derivatives or other market risk sensitive instruments for the purpose of hedging or for trading
purposes.
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Item 4. |
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CONTROLS AND PROCEDURES |
As of June 25, 2011, the Company conducted an evaluation under the supervision and with the
participation of the Companys management, including the Companys Chief Executive Officer and
Chief Financial Officer (its principal executive officer and principal financial officer,
respectively) regarding the effectiveness of the design and operation of the Companys disclosure
controls and procedures as defined in Rule 13a-15(e) and 15d-15(e) of the Securities Exchange Act
of 1934 (the Exchange Act). Based upon that evaluation, the Chief Executive Officer and Chief
Financial Officer concluded that the Companys disclosure controls and procedures (as defined in
Exchange Act Rules 13a-15(e) and 15d-15(e)) were effective to ensure that information required to
be disclosed by the Company in reports that it files or submits under the Exchange Act is recorded,
processed, summarized and reported within the requisite time periods and that such disclosure
controls and procedures were effective to ensure that information required to be disclosed by the
Company in the reports that it files or submits under the Exchange Act is accumulated and
communicated to its management, including its principal executive and principal financial officers,
or persons performing similar functions, as appropriate to allow timely decisions regarding
required disclosure.
There was no change in the Companys internal control over financial reporting that occurred
during the quarter ended June 25, 2011 that has materially affected, or is reasonably likely to
materially affect, the Companys internal control over financial reporting.
PART II. OTHER INFORMATION
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Item 1. |
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LEGAL PROCEEDINGS |
In May 2011, the Company and its former glass bottle supplier entered into an agreement to settle
all claims regarding the recall implemented by the Company in 2008. Under the agreement the
Company received payment of $20.5 million and all parties released each other of any claims as they
relate to this matter. The Company recorded the settlement as an offset to operating expenses.
In 2009, the Company was informed that ownership of the High Falls brewery located in
Rochester, New York (the Rochester Brewery) changed and that the new owners would not assume the
Companys existing contract for brewing services at the Rochester Brewery. Brewing of the
Companys products at the Rochester Brewery subsequently ceased in April 2009. In February 2010,
the Company filed a Demand for Arbitration with the American Arbitration Association (the
arbitration) which, as amended, asserted a breach of contract claim against the previous owner of
the Rochester Brewery. In March 2010, the new and previous owners of the Rochester Brewery filed a
complaint in federal court seeking a declaratory judgment and injunction to require certain of the
Companys claims to proceed in court, rather than in the arbitration. In April 2010, the Company
filed an answer to that complaint and asserted certain counterclaims, including a claim against the
new owners of the Rochester Brewery for interference with contract. The court denied the new and
previous owners motion for a preliminary injunction in June 2010. A hearing in the arbitration
was held in October 2010. In January 2011, the arbitrator issued an award of approximately $1.3
million in damages and expenses to be paid by High Falls Brewery Company, LLC to the Company,
although the likelihood of collection of such award is in doubt. A hearing was held on a pre-trial
motion in the federal court action in April 2011, but no ruling has yet been received. The Company
does not believe that its inability to avail itself of production capacity at the Rochester Brewery
will, in the near future, have a material impact on its ability to meet demand for its products.
In February 2011, the Company filed a complaint with the International Trade Commission (ITC)
against a brewery and a glass manufacturer/importer asserting that the glass design used by the
brewery to promote its products infringed on the Companys patented glass design. The matter was
resolved by settlement agreement in May 2011 under which the brewery and glass
manufacturer/importer agreed to discontinue all sale, use and promotion of the glass. A consent
order has been issued by the ITC prohibiting them from engaging in any importation, distribution,
or sale of their glass design or any glass having a design substantially similar to the Companys
patented glass design.
15
The Company is currently not a party to any pending or threatened litigation, the outcome of which
would be expected to have a material adverse effect on its financial condition or the results of
its operations.
In addition to the other information set forth in this report, careful consideration should be
given to the factors discussed in Part I, Item 1A. Risk Factors in the Companys Annual Report on
Form 10-K for the year ended December 25, 2010, which could materially affect the Companys
business, financial condition or future results. The risks described in the Companys Annual
Report on Form 10-K are not the only risks facing the Company. Additional risks and uncertainties
not currently known to the Company or that it currently deems to be immaterial also may materially
adversely affect its business, financial condition and/or operating results.
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Item 2. |
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UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS |
As of
July 29, 2011, the Company has repurchased a cumulative total of
approximately 10.1 million shares of its Class A Common Stock
for an aggregate purchase price of $219.9 million and had $30.1
million remaining on the $250.0 million share buyback expenditure limit.
During the six months ended June 25, 2011, the Company repurchased 267,761 shares of its Class A
Common Stock as illustrated in the table below:
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Total Number of |
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Approximate Dollar |
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Total |
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Shares Purchased as |
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Value of Shares that |
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Number of |
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Average |
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Part of Publicly |
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May Yet be Purchased |
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Shares |
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Price Paid |
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Announced Plans or |
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Under the Plans or |
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Period |
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Purchased |
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per Share |
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Programs |
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Programs |
|
December 26, 2010 to January 29, 2011 |
|
|
7,394 |
|
|
$ |
90.01 |
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|
7,394 |
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$ |
35,262,537 |
|
January 30, 2011 to February 26, 2011 |
|
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7,894 |
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82.54 |
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7,000 |
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34,636,058 |
|
February 27, 2011 to March 26, 2011 |
|
|
2,733 |
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|
87.23 |
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2,600 |
|
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34,402,006 |
|
March 27, 2011 to April 30, 2011 |
|
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29,744 |
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|
89.80 |
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29,744 |
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31,731,129 |
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May 1, 2011 to May 28, 2011 |
|
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40,237 |
|
|
|
80.94 |
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|
40,000 |
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28,484,687 |
|
May 29, 2011 to June 25, 2011 |
|
|
179,759 |
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|
|
84.49 |
|
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|
179,674 |
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13,301,180 |
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|
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|
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Total |
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|
267,761 |
|
|
$ |
84.67 |
|
|
|
266,412 |
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|
$ |
13,301,180 |
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During the six months ended June 25, 2011, the Company repurchased 1,349 shares of unvested
investment shares issued under the Investment Share Program of the Companys Employee Equity
Incentive Plan.
As of
July 29, 2011, the Company had 9.0 million shares of Class A Common Stock outstanding and 4.1
million shares of Class B Common Stock outstanding.
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Item 3. |
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DEFAULTS UPON SENIOR SECURITIES |
Not Applicable
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Item 4. |
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REMOVED AND RESERVED |
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Item 5. |
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OTHER INFORMATION |
Not Applicable
16
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Exhibit No. |
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Title |
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11.1 |
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The information required by Exhibit 11 has been included in Note C
of the notes to the consolidated financial statements. |
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*31.1 |
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Certification of the President and Chief Executive Officer
pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as adopted
pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
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*31.2 |
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Certification of the Chief Financial Officer pursuant to Rule
13a-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to
Section 302 of the Sarbanes-Oxley Act of 2002 |
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*32.1 |
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Certification of the President and Chief Executive Officer
pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002 |
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*32.2 |
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Certification of the Chief Financial Officer pursuant to 18 U.S.C.
Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of
2002 |
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**101.INS
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XBRL Instance Document |
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**101.SCH
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XBRL Taxonomy Extension Schema Document |
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**101.CAL
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XBRL Taxonomy Calculation Linkbase Document |
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**101.LAB
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XBRL Taxonomy Labels Linkbase Document |
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**101.PRE
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XBRL Taxonomy Presentation Linkbase Document |
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**101.DEF
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XBRL
Definition Linkbase Document |
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* |
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Filed with this report |
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** |
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Attached as Exhibit 101 to this report are the following financial statements from
the Companys Quarterly Report on Form 10-Q for the quarter ended June 25, 2011
formatted in XBRL (eXtensible Business Reporting Language): (i) the Consolidated
Balance Sheets, (ii) the Consolidated Statements of Operations, (iii) the Consolidated
Statements of Cash Flows, and (iv) related notes to these financial statements tagged
as blocks of text. The XBRL-related information in Exhibit 101 to this Quarterly
Report on Form 10-Q shall not be deemed filed or a part of a registration statement
or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as
amended (Securities Act) and is not filed for purposes of Section 18 of the
Securities Exchange Act of 1934, as amended (Exchange Act), or otherwise subject to
the liabilities of those sections. |
17
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused
this Form 10-Q to be signed on its behalf by the undersigned thereunto duly authorized.
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THE BOSTON BEER COMPANY, INC.
(Registrant) |
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Date: August 2, 2011 |
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/s/ Martin F. Roper |
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Martin F. Roper
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President and Chief Executive Officer |
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(principal executive officer) |
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Date: August 2, 2011 |
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/s/ William F. Urich |
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William F. Urich
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Chief Financial Officer |
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(principal accounting and financial officer) |
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18