Thursday July 24 2:29 PM EDT
Company Press Release
Source: The Boston Beer Company, Inc.
Boston Beer Announces Second Quarter 1997 Results
BOSTON, July 24 /PRNewswire/ -- The Boston Beer Company, Inc. (NYSE:SAM), brewer of Samuel Adams Boston
Lager(R), announced its results for the quarter ended June 28, 1997. During the second quarter of 1997, barrels sold, net sales,
and EPS, were 387,000, $49.8 million, and $0.07, respectively, as compared with 341,000, $54.1 million, and $0.12, during the
second quarter of 1996. Results for 1997 include operations at the Cincinnati brewery since acquisition on March 1, 1997.
Jim Koch, President and Founder of Boston Beer, commented, ``Boston Beer continues to execute its strategy of category
leadership by increasing brand support. The television campaign showed favorable results in test markets and has been rolled out to
larger markets including Boston, Denver and San Diego. The salesforce has been combined into a single 200 person organization.
Price increases have been implemented in key markets. We remain confident that the Company's brand and financial strength will
enable us to continue implementing a comprehensive brand-support strategy.''
For the second quarter ended June 28, 1997, barrels sold increased 13% to 387,000 in 1997 from 341,000 in 1996. Net sales for
the quarter decreased to $49.8 million from $54.1 million in 1996. The Company's gross profit margin for the period was 50.5%.
Operating income decreased to $2.2 million from $3.8 million. Net income decreased to $1.4 million or $0.07 per share for the
1997 period compared with $2.4 million or $0.12 per share for the second quarter of 1996.
For the six months ended June 28, 1997, barrels sold increased 8% to 668,000 from 617,000 in the same period of 1996, when a
large increase in customer inventories resulted in a 40% increase in shipments versus the same period in 1995. Operating income
decreased to $4.7 million from $8.1 million. Net income decreased to $3.0 million or $0.15 per share for the 1997 period
compared with $5.0 million or $0.25 per share for the first six months of 1996.
Excluding sales of the newly-acquired brewery in Cincinnati, Boston Beer sold 8% fewer barrels in the second quarter of 1997
than in the second quarter of 1996. Excluding results of operations of the Cincinnati brewery, which has lower overall margins than
the Company's core business, the Company's gross profit margin for the period was 51.3%. For the core business, depletions for
1997's second quarter are 3% below those for the same period in 1996. Orders, in hand, suggest that shipments for July/August
1997 will be 9% above those for July/August 1996. Final shipments for July/August 1997 may differ, and no inferences should be
drawn with respect to shipments in future periods.
The Company's financial position continues to be very strong. Including cash short-term unrestricted investments and available
credit facilities, Boston Beer now has in excess of $50 million at its disposal. On July 15, 1997, the Company called its 11.5%
bond issued in 1987 by the Massachusetts Industrial Finance Agency.
The Boston Beer Company was founded by Jim Koch in 1984. The Company's flagship product, Samuel Adams Boston Lager,
was introduced in April 1985. Today, Boston Beer Company is America's leading craft brewer and the country's seventh largest
brewer, with three distinct product lines and more than two dozen styles of beer. |
