☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES AND EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES AND EXCHANGE ACT OF 1934 |
04-3284048 | ||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||
Class A Common Stock. | SAM | New York Stock Exchange | ||||
Large accelerated filer | ☒ | Accelerated filer | ☐ | |||||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | |||||
Emerging growth company | ☐ | |||||||
Class A Common Stock, $.01 par value | 9,901,752 | |||||
Class B Common Stock, $.01 par value | 2,307,983 | |||||
(Title of each class) | (Number of | ) |
PART I. | PAGE | ||||||||||||||
Item 1. | 3 | ||||||||||||||
3 | |||||||||||||||
4 | |||||||||||||||
5 | |||||||||||||||
6 | |||||||||||||||
7-19 | |||||||||||||||
Item 2. | 19-24 | ||||||||||||||
Item 3. | 24 | ||||||||||||||
Item 4. | 24 | ||||||||||||||
PART II. | |||||||||||||||
Item 1. | 25 | ||||||||||||||
Item 1A. | 25 | ||||||||||||||
Item 2. | |||||||||||||||
26 | |||||||||||||||
Item 3. | 26 | ||||||||||||||
Item 4. | 26 | ||||||||||||||
Item 5. | 26 | ||||||||||||||
Item | 6. | ||||||||||||||
27 | |||||||||||||||
28 | |||||||||||||||
Item 1. | CONSOLIDATED FINANCIAL STATEMENTS |
June 29, | December 29, | |||||||
2019 | 2018 | |||||||
Assets | ||||||||
Current Assets: | ||||||||
Cash and cash equivalents | $ | 3,017 | $ | 108,399 | ||||
Accounts receivable | 69,420 | 34,073 | ||||||
Inventories | 80,361 | 70,249 | ||||||
Prepaid expenses and other current assets | 16,329 | 13,136 | ||||||
Income tax receivable | 9,629 | 5,714 | ||||||
Total current assets | 178,756 | 231,571 | ||||||
Property, plant and equipment, net | 412,064 | 389,789 | ||||||
Operating right-of-use assets | 36,779 | — | ||||||
Merger consideration | 158,402 | — | ||||||
Other assets | 23,646 | 14,808 | ||||||
Goodwill | 3,683 | 3,683 | ||||||
Total assets | $ | 813,330 | $ | 639,851 | ||||
Liabilities and Stockholders’ Equity | ||||||||
Current Liabilities: | ||||||||
Accounts payable | $ | 74,906 | $ | 47,102 | ||||
Accrued expenses and other current liabilities | 73,545 | 73,412 | ||||||
Line of credit | 37,500 | — | ||||||
Current operating lease liabilities | 2,315 | — | ||||||
Total current liabilities | 188,266 | 120,514 | ||||||
Deferred income taxes, net | 55,452 | 49,169 | ||||||
Non-current operating lease liabilities | 39,239 | — | ||||||
Other liabilities | 7,572 | 9,851 | ||||||
Total liabilities | 290,529 | 179,534 | ||||||
Commitments and Contingencies (See Note I) | ||||||||
Stockholders’ Equity: | ||||||||
Class A Common Stock, $.01 par value; 22,700,000 shares authorized;8,655,955 and 8,580,593 issued and outstanding as of June 29, 2019 and December 29, 2018, respectively | 87 | 86 | ||||||
Class B Common Stock, $.01 par value; 4,200,000 shares authorized;2,917,983 and2,917,983 issued and outstanding as of June 29, 2019 and December 29, 2018, respectively | 29 | 29 | ||||||
Additional paid-in capital | 416,602 | 405,711 | ||||||
Accumulated other comprehensive loss, net of tax | (1,155 | ) | (1,197 | ) | ||||
Retained earnings | 107,238 | 55,688 | ||||||
Total stockholders’ equity | 522,801 | 460,317 | ||||||
Total liabilities and stockholders’ equity | $ | 813,330 | $ | 639,851 | ||||
June 27, 2020 | December 28, 2019 | |||||||
Assets | ||||||||
Current Assets: | ||||||||
Cash and cash equivalents | $ | 86,716 | $ | 36,670 | ||||
Accounts receivable | 99,320 | 54,404 | ||||||
Inventories | 108,523 | 106,038 | ||||||
Prepaid expenses and other current assets | 22,693 | 12,077 | ||||||
Income tax receivable | 3,435 | 9,459 | ||||||
Total current assets | 320,687 | 218,648 | ||||||
Property, plant and equipment, net | 565,265 | 541,068 | ||||||
Operating right-of-use assets | 61,420 | 53,758 | ||||||
Goodwill | 112,529 | 112,529 | ||||||
Intangible assets | 104,096 | 104,272 | ||||||
Other assets | 44,255 | 23,782 | ||||||
Total assets | $ | 1,208,252 | $ | 1,054,057 | ||||
Liabilities and Stockholders’ Equity | ||||||||
Current Liabilities: | ||||||||
Accounts payable | $ | 93,576 | $ | 76,374 | ||||
Accrued expenses and other current liabilities | 118,788 | 99,107 | ||||||
Current operating lease liabilities | 7,444 | 5,168 | ||||||
Total current liabilities | 219,808 | 180,649 | ||||||
Deferred income taxes, net | 87,417 | 75,010 | ||||||
Non-current operating lease liabilities | 62,896 | 53,940 | ||||||
Other liabilities | 10,648 | 8,822 | ||||||
Total liabilities | 380,769 | 318,421 | ||||||
Commitments and Contingencies (See Note K) | ||||||||
Stockholders’ Equity: | ||||||||
Class A Common Stock, $.01 par value; 22,700,000 shares authorized; 9,834,473 and 9,370,526 issued and outstanding as of June 27, 2020 and December 28, 2019, respectively | 98 | 94 | ||||||
Class B Common Stock, $.01 par value; 4,200,000 shares authorized; 2,307,983 and 2,672,983 issued and outstanding as of June 27, 2020 and December 28, 2019, respectively | 23 | 27 | ||||||
Additional paid-in capital | 585,327 | 571,784 | ||||||
Accumulated other comprehensive loss, net of tax | (1,740 | ) | (1,669 | ) | ||||
Retained earnings | 243,775 | 165,400 | ||||||
Total stockholders’ equity | 827,483 | 735,636 | ||||||
Total liabilities and stockholders’ equity | $ | 1,208,252 | $ | 1,054,057 |
Thirteen weeks ended | Twenty-six weeks ended | |||||||||||||||
June 29, | June 30, | June 29, | June 30, | |||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Revenue | $ | 338,643 | $ | 289,574 | $ | 606,202 | $ | 491,405 | ||||||||
Less excise taxes | 20,236 | 16,474 | 36,144 | 27,848 | ||||||||||||
Net revenue | 318,407 | 273,100 | 570,058 | 463,557 | ||||||||||||
Cost of goods sold | 159,405 | 131,130 | 286,516 | 225,490 | ||||||||||||
Gross profit | 159,002 | 141,970 | 283,542 | 238,067 | ||||||||||||
Operating expenses: | ||||||||||||||||
Advertising, promotional and selling expenses | 94,079 | 86,510 | 165,802 | 154,031 | ||||||||||||
General and administrative expenses | 26,748 | 23,879 | 50,122 | 43,217 | ||||||||||||
Impairment of assets | 243 | 517 | 243 | 517 | ||||||||||||
Total operating expenses | 121,070 | 110,906 | 216,167 | 197,765 | ||||||||||||
Operating income | 37,932 | 31,064 | 67,375 | 40,302 | ||||||||||||
Other income (expense), net: | ||||||||||||||||
Interest (expense) income, net | (27 | ) | 273 | 610 | 478 | |||||||||||
Other income (expense), net | 197 | (203 | ) | (55 | ) | (488 | ) | |||||||||
Total other income (expense), net | 170 | 70 | 555 | (10 | ) | |||||||||||
Income before income tax provision | 38,102 | 31,134 | 67,930 | 40,292 | ||||||||||||
Income tax provision | 10,246 | 7,599 | 16,380 | 7,447 | ||||||||||||
Net income | $ | 27,856 | $ | 23,535 | $ | 51,550 | $ | 32,845 | ||||||||
Net income per common share - basic | $ | 2.39 | $ | 1.99 | $ | 4.42 | $ | 2.78 | ||||||||
Net income per common share - diluted | $ | 2.36 | $ | 1.98 | $ | 4.38 | $ | 2.76 | ||||||||
Weighted-average number of common shares - Class A basic | 8,648 | 8,667 | 8,627 | 8,690 | ||||||||||||
Weighted-average number of common shares - Class B basic | 2,918 | 3,018 | 2,918 | 3,018 | ||||||||||||
Weighted-average number of common shares - diluted | 11,684 | 11,787 | 11,660 | 11,809 | ||||||||||||
Net income | $ | 27,856 | $ | 23,535 | $ | 51,550 | $ | 32,845 | ||||||||
Other comprehensive income: | ||||||||||||||||
Foreign currency translation adjustment | 5 | 7 | 42 | 18 | ||||||||||||
Comprehensive income | $ | 27,861 | $ | 23,542 | $ | 51,592 | $ | 32,863 | ||||||||
Thirteen weeks ended | Twenty-six weeks ended | |||||||||||||||
June 27, 2020 | June 29, 2019 | June 27, 2020 | June 29, 2019 | |||||||||||||
Revenue | $ | 481,089 | $ | 338,643 | $ | 833,314 | $ | 606,202 | ||||||||
Less excise taxes | 28,951 | 20,236 | 50,611 | 36,144 | ||||||||||||
Net revenue | 452,138 | 318,407 | 782,703 | 570,058 | ||||||||||||
Cost of goods sold | 242,514 | 159,405 | 425,106 | 286,516 | ||||||||||||
Gross profit | 209,624 | 159,002 | 357,597 | 283,542 | ||||||||||||
Operating expenses: | ||||||||||||||||
Advertising, promotional and selling expenses | 100,336 | 94,079 | 198,227 | 165,802 | ||||||||||||
General and administrative expenses | 29,685 | 26,748 | 56,714 | 50,122 | ||||||||||||
Impairment of assets | 834 | 243 | 2,355 | 243 | ||||||||||||
Total operating expenses | 130,855 | 121,070 | 257,296 | 216,167 | ||||||||||||
Operating income | 78,769 | 37,932 | 100,301 | 67,375 | ||||||||||||
Other (expense) income, net: | ||||||||||||||||
Interest (expense) income, net | (212 | ) | (27 | ) | (149 | ) | 610 | |||||||||
Other (expense) income, net | (52 | ) | 197 | (412 | ) | (55 | ) | |||||||||
Total other (expense) income, net | (264 | ) | 170 | (561 | ) | 555 | ||||||||||
Income before income tax provision | 78,505 | 38,102 | 99,740 | 67,930 | ||||||||||||
Income tax provision | 18,364 | 10,246 | 21,365 | 16,380 | ||||||||||||
Net income | $ | 60,141 | $ | 27,856 | $ | 78,375 | $ | 51,550 | ||||||||
Net income per common share - basic | $ | 4.93 | $ | 2.39 | $ | 6.44 | $ | 4.42 | ||||||||
Net income per common share - diluted | $ | 4.88 | $ | 2.36 | $ | 6.37 | $ | 4.38 | ||||||||
Weighted-average number of common shares - Class A basic | 9,720 | 8,648 | 9,572 | 8,627 | ||||||||||||
Weighted-average number of common shares - Class B basic | 2,400 | 2,918 | 2,523 | 2,918 | ||||||||||||
Weighted-average number of common shares - diluted | 12,258 | 11,684 | 12,221 | 11,660 | ||||||||||||
Net income | $ | 60,141 | $ | 27,856 | $ | 78,375 | $ | 51,550 | ||||||||
Other comprehensive income: | ||||||||||||||||
Foreign currency translation adjustment | (13 | ) | 5 | (71 | ) | 42 | ||||||||||
Comprehensive income | $ | 60,128 | $ | 27,861 | $ | 78,304 | $ | 51,592 | ||||||||
Class A | Class A Common | Class B | Class B | Additional | Accumulated Other | Total | ||||||||||||||||||||||||||
Common | Stock, | Common | Common | Paid-in | Comprehensive | Retained | Stockholders’ | |||||||||||||||||||||||||
Shares | Par | Shares | Stock, Par | Capital | Loss, net of tax | Earnings | Equity | |||||||||||||||||||||||||
Balance at December 29, 2018 | 8,580 | $ | 86 | 2,918 | $ | 29 | $ | 405,711 | $ | (1,197 | ) | $ | 55,688 | $ | 460,317 | |||||||||||||||||
Net income | 23,694 | 23,694 | ||||||||||||||||||||||||||||||
Stock options exercised and restricted shares activities | 54 | — | 3,704 | 3,704 | ||||||||||||||||||||||||||||
Stock-based compensation expense | 2,066 | 2,066 | ||||||||||||||||||||||||||||||
Currency translation adjustment | 37 | 37 | ||||||||||||||||||||||||||||||
Balance at March 30, 2019 | 8,634 | $ | 86 | 2,918 | $ | 29 | $ | 411,481 | $ | (1,160 | ) | $ | 79,382 | $ | 489,818 | |||||||||||||||||
Net income | 27,856 | 27,856 | ||||||||||||||||||||||||||||||
Stock options exercised and restricted shares activities | 21 | 1 | 1,377 | 1,378 | ||||||||||||||||||||||||||||
Stock-based compensation expense | 3,744 | 3,744 | ||||||||||||||||||||||||||||||
Currency translation adjustment | 5 | 5 | ||||||||||||||||||||||||||||||
Balance at June 29, 2019 | 8,655 | $ | 87 | 2,918 | $ | 29 | $ | 416,602 | $ | (1,155 | ) | $ | 107,238 | $ | 522,801 | |||||||||||||||||
Class A | Accumulated | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A | Common | Class B | Class B | Additional | Other | Total | Class A Common Shares | Class A Common Stock, Par | Class B Common Shares | Class B Common Stock, | Additional Paid-in Capital | Accumulated Other Comprehensive Loss, net of tax | Retained Earnings | Total Stockholders’ Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 28, 2019 | 9,371 | $ | 94 | 2,673 | $ | 27 | $ | 571,784 | $ | (1,669 | ) | $ | 165,400 | $ | 735,636 | |||||||||||||||||||||||||||||||||||||||||||||||||
Common | Stock, | Common | Common | Paid-in | Comprehensive | Retained | Stockholders’ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Par | Shares | Stock, Par | Capital | Loss, net of tax | Earnings | Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 30, 2017 | 8,603 | $ | 86 | 3,018 | $ | 30 | $ | 372,590 | $ | (1,288 | ) | $ | 52,105 | $ | 423,523 | |||||||||||||||||||||||||||||||||||||||||||||||||
Net income | 9,310 | 9,310 | 18,234 | 18,234 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock options exercised and restricted shares activities | 188 | 2 | 20,232 | 20,234 | 38 | — | 1,858 | 1,858 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | 1,491 | 1,491 | 2,566 | 2,566 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of Class A Common Stock | (91 | ) | (1 | ) | (16,638 | ) | (16,639 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion from Class B to Class A | 150 | 2 | (150 | ) | (2 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Currency translation adjustment | (11 | ) | (11 | ) | (58 | ) | (58 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
One time effect of adoption of ASU 2014-09, Revenue from Contracts with Customers, net of tax of $ 329 | (982 | ) | (982 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
One time effect of adoption of ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income | (210 | ) | 210 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2018 | 8,700 | $ | 87 | 3,018 | $ | 30 | $ | 394,313 | $ | (1,509 | ) | $ | 44,005 | $ | 436,926 | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 28, 2020 | 9,559 | $ | 96 | 2,523 | $ | 25 | $ | 576,208 | $ | (1,727 | ) | $ | 183,634 | $ | 758,236 | |||||||||||||||||||||||||||||||||||||||||||||||||
Net income | 23,535 | 23,535 | 60,141 | 60,141 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock options exercised and restricted shares activities | 32 | — | 2,224 | 2,224 | 61 | — | 4,582 | 4,582 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | 3,079 | 3,079 | 4,537 | 4,537 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of Class A Common Stock | (97 | ) | (1 | ) | (23,084 | ) | (23,085 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion from Class B to Class A | 215 | 2 | (215 | ) | (2 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Currency translation adjustment | (7 | ) | (7 | ) | (13 | ) | (13 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2018 | 8,635 | $ | 86 | 3,018 | $ | 30 | $ | 399,616 | $ | (1,516 | ) | $ | 44,456 | $ | 442,672 | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 27, 2020 | 9,835 | $ | 98 | 2,308 | $ | 23 | $ | 585,327 | $ | (1,740 | ) | $ | 243,775 | $ | 827,483 | |||||||||||||||||||||||||||||||||||||||||||||||||
Class A Common Shares | Class A Common Stock, Par | Class B Common Shares | Class B Common Stock, | Additional Paid-in Capital | Accumulated Other Comprehensive Loss, net of tax | Retained Earnings | Total Stockholders’ Equity | |||||||||||||||||||||||||
Balance at December 29, 2018 | 8,580 | $ | 86 | 2,918 | $ | 29 | $ | 405,711 | $ | (1,197 | ) | $ | 55,688 | $ | 460,317 | |||||||||||||||||
Net income | 23,694 | 23,694 | ||||||||||||||||||||||||||||||
Stock options exercised and restricted shares activities | 54 | — | 3,704 | 3,704 | ||||||||||||||||||||||||||||
Stock-based compensation expense | 2,066 | 2,066 | ||||||||||||||||||||||||||||||
Currency translation adjustment | 37 | 37 | ||||||||||||||||||||||||||||||
Balance at March 30, 2019 | 8,634 | $ | 86 | 2,918 | $ | 29 | $ | 411,481 | $ | (1,160 | ) | $ | 79,382 | $ | 489,818 | |||||||||||||||||
Net income | 27,856 | 27,856 | ||||||||||||||||||||||||||||||
Stock options exercised and restricted shares activities | 21 | 1 | 1,377 | 1,378 | ||||||||||||||||||||||||||||
Stock-based compensation expense | 3,744 | 3,744 | ||||||||||||||||||||||||||||||
Currency translation adjustment | 5 | 5 | ||||||||||||||||||||||||||||||
Balance at June 29, 2019 | 8,655 | $ | 87 | 2,918 | $ | 29 | $ | 416,602 | $ | (1,155 | ) | $ | 107,238 | $ | 522,801 |
Twenty-six weeks ended | ||||||||
June 29, 2019 | June 30, 2018 | |||||||
Cash flows provided by operating activities: | ||||||||
Net income | $ | 51,550 | $ | 32,845 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 26,089 | 26,011 | ||||||
Impairment of assets | 243 | 517 | ||||||
Loss on disposal of property, plant and equipment | 104 | 26 | ||||||
Lease expense | 1,789 | — | ||||||
Bad debt (recovery) expense | (1 | ) | 27 | |||||
Stock-based compensation expense | 5,810 | 4,570 | ||||||
Deferred income taxes | 6,283 | 775 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | (35,346 | ) | (21,651 | ) | ||||
Inventories | (14,942 | ) | (18,636 | ) | ||||
Prepaid expenses, income tax receivable and other assets | (10,962 | ) | 217 | |||||
Accounts payable | 26,320 | 20,563 | ||||||
Accrued expenses and other current liabilities | (101 | ) | 8,721 | |||||
Net lease liabilities | (1,391 | ) | — | |||||
Other liabilities | 85 | (244 | ) | |||||
Net cash provided by operating activities | 55,530 | 53,741 | ||||||
Cash flows used in investing activities: | ||||||||
Purchases of property, plant and equipment | (44,578 | ) | (25,470 | ) | ||||
Proceeds from disposal of property, plant and equipment | 179 | 2 | ||||||
Cash paid for merger | (158,402) | — | ||||||
Change in restricted cash | (188 | ) | 98 | |||||
Net cash used in investing activities | (202,989 | ) | (25,370 | ) | ||||
Cash flows provided by (used in) financing activities: | ||||||||
Repurchase of Class A Common Stock | — | (39,725 | ) | |||||
Proceeds from exercise of stock options | 4,146 | 21,529 | ||||||
Net cash paid on note payable and capital lease | (115 | ) | (78 | ) | ||||
Cash borrowed on line of credit | 86,000 | — | ||||||
Cash paid on line of credit | (48,500 | ) | — | |||||
Net proceeds from sale of investment shares | 546 | 445 | ||||||
Net cash provided (used in) by financing activities | 42,077 | (17,829 | ) | |||||
Change in cash and cash equivalents | (105,382 | ) | 10,542 | |||||
Cash and cash equivalents at beginning of year | 108,399 | 65,637 | ||||||
Cash and cash equivalents at end of period | $ | 3,017 | $ | 76,179 | ||||
Supplemental disclosure of cash flow information: | ||||||||
Income taxes paid | $ | 13,697 | $ | 3,355 | ||||
Cash paid for amounts included in measurement of lease liabilities | $ | 1,976 | $ | — | ||||
Right-of-use assets obtained in exchange for operating lease obligations | $ | 38,524 | $ | — | ||||
Right-of-use assets obtained in exchange for capital lease obligations | $ | 2,837 | $ | — | ||||
Decrease in accounts receivable for ASU 2014-09 adoption | $ | — | $ | (1,310 | ) | |||
Increase in accounts payable for purchase of property, plant and equipment | $ | 1,484 | $ | 774 |
Twenty-six weeks ended | ||||||||
June 27, 2020 | June 29, 2019 | |||||||
Cash flows provided by operating activities: | ||||||||
Net income | $ | 78,375 | $ | 51,550 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 32,584 | 26,089 | ||||||
Impairment of assets | 2,355 | 243 | ||||||
Loss on disposal of property, plant and equipment | 39 | 104 | ||||||
Change in ROU assets | 3,649 | 1,789 | ||||||
Credit loss expense | 375 | (1 | ) | |||||
Stock-based compensation expense | 7,103 | 5,810 | ||||||
Deferred income taxes | 12,407 | 6,283 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | (45,326 | ) | (35,346 | ) | ||||
Inventories | (12,795 | ) | (14,942 | ) | ||||
Prepaid expenses, income tax receivable and other current assets | (4,784 | ) | (6,855 | ) | ||||
Other assets | (10,231 | ) | (4,107 | ) | ||||
Accounts payable | 19,560 | 26,320 | ||||||
Accrued expenses and other current liabilities | 20,803 | (101 | ) | |||||
Change in operating lease liability | (80 | ) | (1,391 | ) | ||||
Other liabilities | (23 | ) | 85 | |||||
Net cash provided by operating activities | 104,011 | 55,530 | ||||||
Cash flows used in investing activities: | ||||||||
Purchases of property, plant and equipment | (60,072 | ) | (44,578 | ) | ||||
Proceeds from disposal of property, plant and equipment | 45 | 179 | ||||||
Investment in Dogfish Head, net of cash acquired | — | (158,402 | ) | |||||
Other investing activities | 260 | (188 | ) | |||||
Net cash used in investing activities | (59,767 | ) | (202,989 | ) | ||||
Cash flows provided by financing activities: | ||||||||
Proceeds from exercise of stock options and sale of investment shares | 8,010 | 4,692 | ||||||
Net cash paid on note payable and finance leases | (649 | ) | (115 | ) | ||||
Cash borrowed on line of credit | 100,000 | 86,000 | ||||||
Cash paid on line of credit | (100,000 | ) | (48,500 | ) | ||||
Payment of tax withholdings on stock-based payment awards and investment shares | (1,559 | ) | — | |||||
Net cash provided by financing activities | 5,802 | 42,077 | ||||||
Change in cash and cash equivalents | 50,046 | (105,382 | ) | |||||
Cash and cash equivalents at beginning of year | 36,670 | 108,399 | ||||||
Cash and cash equivalents at end of period | $ | 86,716 | $ | 3,017 | ||||
Supplemental disclosure of cash flow information: | ||||||||
Income taxes paid | $ | 2,929 | $ | 207 | ||||
Cash paid for amounts included in measurement of lease liabilities | ||||||||
Operating cash flows from operating leases | $ | 4,532 | $ | 1,916 | ||||
Operating cash flows from finance leases | $ | 75 | $ | 52 | ||||
Financing cash flows from finance leases | $ | 581 | $ | 7 | ||||
Right-of-use | $ | 11,311 | $ | 38,524 | ||||
Right-of-use | $ | 3,856 | $ | 2,837 | ||||
Change in purchase of property, plant and equipment in accounts payable and accrued expenses | $ | 4,920 | $ | 1,484 | ||||
A. | Organization and Basis of Presentation |
B. | COVID-19 Pandemic |
C. | Dogfish Head Brewery |
Total (In Thousands) | ||||
Cash and cash equivalents | $ | 7,476 | ||
Accounts receivable | 8,081 | |||
Inventories | 9,286 | |||
Prepaid expenses and other current assets | 847 | |||
Property, plant and equipment | 106,964 | |||
Goodwill | 108,846 | |||
Brand | 98,500 | |||
Other intangible assets | 3,800 | |||
Other assets | 378 | |||
Total assets acquired | 344,178 | |||
Accounts payable | 3,861 | |||
Accrued expenses and other current liabilities | 4,085 | |||
Deferred income taxes | 18,437 | |||
Other liabilities | 59 | |||
Total liabilities assumed | 26,442 | |||
Net assets acquired | $ | 317,736 | ||
Cash consideration | $ | 172,993 | ||
Nominal value of equity issued | 162,999 | |||
Fair Value reduction due to liquidity | (18,256 | ) | ||
Estimated total purchase price | $ | 317,736 | ||
Depreciation and amortization expenses were updated to reflect the fair value adjustments to Dogfish Head property, plant and equipment and intangible assets beginning December 30, 2018. |
(ii) | Interest expense has been included at a rate of approximately 3% which is consistent with the borrowing rate on the Company’s current line of credit. |
(i ii ) | The tax effects of the pro forma adjustments at an estimated statutory rate of 25.6%. |
( i v) | Earnings per share amounts are calculated using the Company’s historical weighted average shares outstanding plus the 429,291 shares issued in the merger. |
Thirteen weeks ended | Twenty-six weeks ended | |||||||||||||||
June 27, | June 29, | June 27, | June 29, | |||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
(in thousands) | (in thousands) | |||||||||||||||
Net revenue | $ | 452,138 | $ | 347,015 | $ | 782,703 | $ | 623,755 | ||||||||
Net income | $ | 60,141 | $ | 30,359 | $ | 78,375 | $ | 55,022 | ||||||||
Basic earnings per share | $ | 4.93 | $ | 2.51 | $ | 6.44 | $ | 4.55 | ||||||||
Diluted earnings per share | $ | 4.88 | $ | 2.46 | $ | 6.37 | $ | 4.48 |
D. | Goodwill and Intangible Assets |
As of June 27, 2020 | As of December 28, 2019 | |||||||||||||||||||||||||||
Estimated Useful Life (Years) | Gross Carrying Value | Accumulated Amortization | Net Book Value | Gross Carrying Value | Accumulated Amortization | Net Book Value | ||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||
Custmer Relationships | 15 | $ | 3,800 | $ | (253 | ) | $ | 3,547 | $ | 3,800 | $ | (127 | ) | $ | 3,673 | |||||||||||||
Trade Names | Indefinite | 100,549 | — | 100,549 | 100,599 | — | 100,599 | |||||||||||||||||||||
Total intangible assets | $ | 104,349 | $ | (253 | ) | $ | 104,096 | $ | 104,399 | $ | (127 | ) | $ | 104,272 | ||||||||||||||
Fiscal Year | Amount (in thousands) | |||
Remainder of 2020 | $ | 127 | ||
2021 | 253 | |||
2022 | 253 | |||
2023 | 253 | |||
2024 | 253 | |||
2025 | 253 |
E. | Recent Accounting Pronouncements |
Revenue Recognition |
Inventories |
June 29, | December 29, | |||||||
2019 | 2018 | |||||||
(in thousands) | ||||||||
Current inventory: | ||||||||
Raw materials | $ | 46,194 | $ | 44,655 | ||||
Work in process | 10,191 | 8,252 | ||||||
Finished goods | 23,976 | 17,342 | ||||||
Total current inventory | 80,361 | 70,249 | ||||||
Long term inventory | 16,449 | 11,619 | ||||||
Total inventory | $ | 96,810 | $ | 81,868 | ||||
June 27, 2020 | December 28, 2019 | |||||||
(in thousands) | ||||||||
Current inventory: | ||||||||
Raw materials | $ | 62,475 | $ | 61,522 | ||||
Work in process | 15,161 | 12,631 | ||||||
Finished goods | 30,887 | 31,885 | ||||||
Total current inventory | 108,523 | 106,038 | ||||||
Long term inventory | 20,358 | 10,048 | ||||||
Total inventory | $ | 128,881 | $ | 116,086 |
Leases |
Classification | Leases | |||||||||
June 27, 2020 | December 28, 2019 | |||||||||
(in thousands) | ||||||||||
Right- of-use assets | ||||||||||
Operating lease assets | Operating right-of-use assets | $ | 61,420 | $ | 53,758 | |||||
Finance lease assets | Property, plant and equipment, net | 5,814 | 2,531 | |||||||
Lease Liabilities | ||||||||||
Current | ||||||||||
Operating lease liabilities | Current operating lease liabilities | 7,444 | 5,168 | |||||||
Finance lease liabilities | Accrued expenses and other current liabilities | 1,807 | 546 | |||||||
Non-current | ||||||||||
Operating lease liabilities | Non-current operating lease liabilities | 62,896 | 53,940 | |||||||
Finance lease liabilities | Other liabilities | 4,056 | 2,042 |
Finance Leases | ||||||||
June 27, 2020 | December 28, 2019 | |||||||
(in thousands) | ||||||||
Gross value | $ | 6,694 | $ | 2,837 | ||||
Accumulated amortization | (880 | ) | (306 | ) | ||||
Carrying value | $ | 5,814 | $ | 2,531 | ||||
Lease Cost | ||||||||||||||||
Thirteen weeks ended | Twenty-six weeks ended | |||||||||||||||
June 27, | June 29, | June 27, | June 29, | |||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
(in thousands) | (in thousands) | |||||||||||||||
Operating lease cost | $ | 2,437 | $ | 1,177 | $ | 4,852 | $ | 2,305 | ||||||||
Variable lease costs not included in liability | 487 | 273 | 972 | 472 | ||||||||||||
Finance lease cost: | ||||||||||||||||
Amortization of right-of-use asset | 440 | 43 | 573 | 43 | ||||||||||||
Interest on lease liabilities | 53 | 52 | 75 | 52 | ||||||||||||
Total finance lease cost | $ | 493 | $ | 95 | $ | 648 | $ | 95 |
Operating Leases | Capital Leases | Weighted-Average Remaining Term in Years | ||||||||||||||
Operating Leases | Capital Leases | |||||||||||||||
(in thousands) | ||||||||||||||||
2019 | $ | 2,557 | $ | 309 | ||||||||||||
2020 | 2,268 | 626 | ||||||||||||||
2021 | 5,379 | 626 | ||||||||||||||
2022 | 5,083 | 627 | ||||||||||||||
2023 | 4,965 | 627 | ||||||||||||||
After 2023 | 30,100 | 288 | ||||||||||||||
Total lease payments | 50,352 | 3,103 | ||||||||||||||
Less imputed interest (based on 3.5% weighted- average discount rate) | (8,798 | ) | (253 | ) | ||||||||||||
Present value of lease liability | $ | 41,554 | $ | 2,850 | 10.1 | 4.97 | ||||||||||
Leases | ||||
(in thousands) | ||||
2019 | $ | 4,446 | ||
2020 | 4,530 | |||
2021 | 4,370 | |||
2022 | 3,559 | |||
2023 | 1,672 | |||
Thereafter | 7,582 | |||
Total | $ | 26,159 | ||
Operating Leases | Finance Leases | Weighted-Average Remaining Term | ||||||||||||||
Operating Leases | Finance Leases | |||||||||||||||
(in thousands) | ||||||||||||||||
2020 | $ | 4,843 | $ | 987 | ||||||||||||
2021 | 9,903 | 1,982 | ||||||||||||||
2022 | 9,761 | 1,982 | ||||||||||||||
2023 | 9,709 | 965 | ||||||||||||||
2024 | 9,470 | 265 | ||||||||||||||
Thereafter | 39,523 | 23 | ||||||||||||||
Total lease payments | 83,209 | 6,204 | ||||||||||||||
Less imputed interest (based on 3.5% weighted-average discount rate) | (12,869 | ) | (341 | ) | ||||||||||||
Present value of lease liability | $ | 70,340 | $ | 5,863 | 9.3 | 3.2 |
Net Income per Share |
Thirteen weeks ended | Twenty-six weeks ended | Thirteen weeks ended | Twenty-six weeks ended | |||||||||||||||||||||||||||||
June 29, 2019 | June 30, 2018 | June 29, 2019 | June 30, 2018 | June 27, 2020 | June 29, 2019 | June 27, 2020 | June 29, 2019 | |||||||||||||||||||||||||
(in thousands, except per share data) | (in thousands, except per share data) | (in thousands, except per share data) | (in thousands, except per share data) | |||||||||||||||||||||||||||||
Net income | $ | 27,856 | $ | 23,535 | $ | 51,550 | $ | 32,845 | $ | 60,141 | $ | 27,856 | $ | 78,375 | $ | 51,550 | ||||||||||||||||
Allocation of net income for basic: | ||||||||||||||||||||||||||||||||
Class A Common Stock | $ | 20,639 | $ | 17,290 | $ | 38,161 | $ | 24,187 | $ | 47,930 | $ | 20,639 | $ | 61,612 | $ | 38,161 | ||||||||||||||||
Class B Common Stock | 6,964 | 6,020 | 12,908 | 8,400 | 11,836 | 6,964 | 16,237 | 12,908 | ||||||||||||||||||||||||
Unvested participating shares | 253 | 225 | 481 | 258 | 375 | 253 | 526 | 481 | ||||||||||||||||||||||||
$ | 27,856 | $ | 23,535 | $ | 51,550 | $ | 32,845 | |||||||||||||||||||||||||
$ | 60,141 | $ | 27,856 | $ | 78,375 | $ | 51,550 | |||||||||||||||||||||||||
Weighted average number of shares for basic: | ||||||||||||||||||||||||||||||||
Class A Common Stock | 8,648 | 8,667 | 8,627 | 8,690 | 9,720 | 8,648 | 9,572 | 8,627 | ||||||||||||||||||||||||
Class B Common Stock* | 2,918 | 3,018 | 2,918 | 3,018 | 2,400 | 2,918 | 2,523 | 2,918 | ||||||||||||||||||||||||
Unvested participating shares | 106 | 112 | 109 | 93 | 76 | 106 | 82 | 109 | ||||||||||||||||||||||||
11,672 | 11,797 | 11,654 | 11,801 | |||||||||||||||||||||||||||||
12,196 | 11,672 | 12,177 | 11,654 | |||||||||||||||||||||||||||||
Net income per share for basic: | ||||||||||||||||||||||||||||||||
Class A Common Stock | $ | 2.39 | $ | 1.99 | $ | 4.42 | $ | 2.78 | $ | 4.93 | $ | 2.39 | $ | 6.44 | $ | 4.42 | ||||||||||||||||
Class B Common Stock | $ | 2.39 | $ | 1.99 | $ | 4.42 | $ | 2.78 | $ | 4.93 | $ | 2.39 | $ | 6.44 | $ | 4.42 | ||||||||||||||||
* | Change in Class B Common Stock resulted from the conversion of 100,000 shares to Class A Common Stock on |
Thirteen weeks ended | ||||||||||||||||||||||||
June 29, 2019 | June 30, 2018 | |||||||||||||||||||||||
Earnings to Common Shareholders | Common Shares | EPS | Earnings to Common Shareholders | Common Shares | EPS | |||||||||||||||||||
(in thousands, except per share data) | ||||||||||||||||||||||||
As reported - basic | $ | 20,639 | 8,648 | $ | 2.39 | $ | 17,290 | 8,667 | $ | 1.99 | ||||||||||||||
Add: effect of dilutive potential common shares | ||||||||||||||||||||||||
Share-based awards | — | 118 | — | 102 | ||||||||||||||||||||
Class B Common Stock | 6,964 | 2,918 | 6,020 | 3,018 | ||||||||||||||||||||
Net effect of unvested participating shares | 2 | — | 2 | — | ||||||||||||||||||||
Net income per common share - diluted | $ | 27,605 | 11,684 | $ | 2.36 | $ | 23,312 | 11,787 | $ | 1.98 | ||||||||||||||
Twenty-six weeks ended | ||||||||||||||||||||||||
June 29, 2019 | June 30, 2018 | |||||||||||||||||||||||
Earnings to Common Shareholders | Common Shares | EPS | Earnings to Common Shareholders | Common Shares | EPS | |||||||||||||||||||
(in thousands, except per share data) | ||||||||||||||||||||||||
As reported - basic | $ | 38,161 | 8,627 | $ | 4.42 | $ | 24,187 | 8,690 | $ | 2.78 | ||||||||||||||
Add: effect of dilutive potential common shares | ||||||||||||||||||||||||
Share-based awards | — | 115 | — | 101 | ||||||||||||||||||||
Class B Common Stock | 12,908 | 2,918 | 8,400 | 3,018 | ||||||||||||||||||||
Net effect of unvested participating shares | 5 | — | 2 | — | ||||||||||||||||||||
Net income per common share - diluted | $ | 51,074 | 11,660 | $ | 4.38 | $ | 32,589 | 11,809 | $ | 2.76 | ||||||||||||||
Thirteen weeks ended | ||||||||||||||||||||||||
June 27, 2020 | June 29, 20 19 | |||||||||||||||||||||||
Earnings to Common Shareholders | Common Shares | EPS | Earnings to Common Shareholders | Common Shares | EPS | |||||||||||||||||||
(in thousands, except per share data) | ||||||||||||||||||||||||
As reported - basic | $ | 47,930 | 9,720 | $ | 4.93 | $ | 20,639 | 8,648 | $ | 2.39 | ||||||||||||||
Add: effect of dilutive potential common shares | ||||||||||||||||||||||||
Share-based awards | — | 138 | — | 118 | ||||||||||||||||||||
Class B Common Stock | 11,836 | 2,400 | 6,964 | 2,918 | ||||||||||||||||||||
Net effect of unvested participating shares | 4 | — | 2 | — | ||||||||||||||||||||
Net income per common share - diluted | $ | 59,770 | 12,258 | $ | 4.88 | $ | 27,605 | 11,684 | $ | 2.36 | ||||||||||||||
Twenty-six weeks ended | ||||||||||||||||||||||||
June 27, 2020 | June 29, 20 19 | |||||||||||||||||||||||
Earnings to Common Shareholders | Common Shares | EPS | Earnings to Common Shareholders | Common Shares | EPS | |||||||||||||||||||
(in thousands, except per share data) | ||||||||||||||||||||||||
As reported - basic | $ | 61,612 | 9,572 | $ | 6.44 | $ | 38,161 | 8,627 | $ | 4.42 | ||||||||||||||
Add: effect of dilutive potential common shares | ||||||||||||||||||||||||
Share-based awards | — | 126 | — | 115 | ||||||||||||||||||||
Class B Common Stock | 16,237 | 2,523 | 12,908 | 2,918 | ||||||||||||||||||||
Net effect of unvested participating shares | 5 | — | 5 | — | ||||||||||||||||||||
Net income per common share - diluted | $ | 77,854 | 12,221 | $ | 6.37 | $ | 51,074 | 11,660 | $ | 4.38 | ||||||||||||||
Comprehensive Income or Loss |
Commitments and Contingencies |
Income Taxes |
Thirteen weeks ended | ||||||||
June 29, 2019 | June 30, 2018 | |||||||
(in thousands) | ||||||||
Summary of income tax provision | ||||||||
Tax provision based on net income | $ | 10,499 | $ | 8,727 | ||||
Benefit of ASU 2016-09 | (253 | ) | (1,128 | ) | ||||
Total income tax provision | $ | 10,246 | $ | 7,599 | ||||
Twenty-six weeks ended | ||||||||
June 29, 2019 | June 30, 2018 | |||||||
(in thousands) | ||||||||
Summary of income tax provision | ||||||||
Tax provision based on net income | $ | 18,408 | $ | 11,298 | ||||
Benefit of ASU 2016-09 | (2,028 | ) | (3,851 | ) | ||||
Total income tax provision | $ | 16,380 | $ | 7,447 |
Thirteen weeks ended | ||||||||
June 27, 2020 | June 29 , 2019 | |||||||
(in thousands) | ||||||||
Summary of income tax provision | ||||||||
Tax provision based on net income | $ | 20,699 | $ | 10,499 | ||||
Benefit of ASU 2016-09 | (2,335 | ) | (253 | ) | ||||
Total income tax provision | $ | 18,364 | $ | 10,246 | ||||
Twenty-six weeks ended | ||||||||
June 27, 2020 | June 29 , 2019 | |||||||
(in thousands) | ||||||||
Summary of income tax provision | ||||||||
Tax provision based on net income | $ | 25,704 | $ | 18,408 | ||||
Benefit of ASU 2016-09 | (4,339 | ) | (2,028 | ) | ||||
Total income tax provision | $ | 21,365 | $ | 16,380 |
Revolving Line of Credit |
Fair Value Measures |
• | Level 1 — Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. |
• | Level 2 — Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. If the asset or liability has a specified (contractual) term, a Level 2 input must be observable for substantially the full term of the asset or liability. |
• | Level 3 — Level 3 inputs are unobservable inputs for the asset or liability in which there is little, if any, market activity for the asset or liability at the measurement date. |
Common Stock and Stock-Based Compensation |
Shares | Weighted-Average Exercise Price | Weighted-Average RemainingContractual Term in Years | Aggregate Intrinsic Value (in thousands) | Shares | Weighted-Average Exercise Price | Weighted-Average Remaining Contractual Term in Years | Aggregate Intrinsic Value (in thousands) | |||||||||||||||||||||||||
Outstanding at December 29, 2018 | 366,829 | $ | 155.75 | |||||||||||||||||||||||||||||
Outstanding at December 28, 2019 | 315,678 | $ | 186.53 | |||||||||||||||||||||||||||||
Granted | 31,286 | 313.56 | 25,870 | 383.22 | ||||||||||||||||||||||||||||
Forfeited | — | — | (2,595 | ) | 241.84 | |||||||||||||||||||||||||||
Expired | — | — | — | — | ||||||||||||||||||||||||||||
Exercised | (43,866 | ) | 94.50 | (57,926 | ) | 120.81 | ||||||||||||||||||||||||||
Outstanding at June 29, 2019 | 354,249 | $ | 177.28 | 5.64 | $ | 71,021 | ||||||||||||||||||||||||||
Exercisable at June 29, 2019 | 131,684 | $ | 134.82 | 3.42 | $ | 31,991 | ||||||||||||||||||||||||||
Vested and expected to vest at June 29, 2019 | 325,498 | $ | 175.05 | 5.53 | $ | 65,983 | ||||||||||||||||||||||||||
Outstanding at June 27, 2020 | 281,027 | $ | 217.67 | 6.14 | $ | 97,280 | ||||||||||||||||||||||||||
Exercisable at June 27, 2020 | 92,818 | $ | 185.56 | 5.11 | $ | 35,110 | ||||||||||||||||||||||||||
Vested and expected to vest at June 27, 2020 | 256,784 | $ | 216.12 | 6.09 | $ | 89,287 |
2020 | ||||
Expected Volatility | 32.6 | % | ||
Risk-free interest rate | 1.09 | % | ||
Expected Dividends | 0.0 | % | ||
Exercise factor | 2.12 times | |||
Discount for post-vesting restrictions | 0.0 | % |
Number of Shares | Weighted Average Fair Value | |||||||
Non-vested at December 29, 2018 | 126,720 | $ | 192.74 | |||||
Granted | 29,504 | $ | 266.54 | |||||
Vested | (31,496 | ) | $ | 187.25 | ||||
Forfeited | (1,110 | ) | $ | 144.92 | ||||
Non-vested at June 29, 2019 | 123,618 | $ | 212.18 |
Number of Shares | Weighted Average Fair Value | |||||||
Non-vested at December 28, 2019 | 122,142 | $ | 213.52 | |||||
Granted | 40,316 | 325.12 | ||||||
Vested | (45,169 | ) | 213.12 | |||||
Forfeited | (3,318 | ) | 241.05 | |||||
Non-vested at June 27, 2020 | 113,971 | $ | 252.36 |
Thirteen weeks ended | Twenty-six weeks ended | |||||||||||||||
June 27, 2020 | June 29, 2019 | June 27, 2020 | June 29, 2019 | |||||||||||||
(in thousands) | (in thousands) | |||||||||||||||
Amounts included in advertising, promotional and selling expenses | $ | 1,147 | $ | 1,121 | $ | 1,852 | $ | 1,598 | ||||||||
Amounts included in general and administrative expenses | 3,390 | 2,624 | 5,251 | 4,212 | ||||||||||||
Total stock-based compensation expense | $ | 4,537 | $ | 3,745 | $ | 7,103 | $ | 5,810 | ||||||||
Employee Retirement Plans |
Related Party Transactions |
R. | Subsequent Events |
Item 2. |
Thirteen Weeks Ended (in thousands) | ||||||||||||||||||||||||||||||||||||
June 29, 2019 | June 30, 2018 | Amount change | % change | Per barrel change | ||||||||||||||||||||||||||||||||
Barrels sold | 1,374 | 1,177 | 198 | 16.8 | % | |||||||||||||||||||||||||||||||
Per barrel | % of net revenue | Per barrel | % of net revenue | |||||||||||||||||||||||||||||||||
Net revenue | $ | 318,407 | $ | 231.68 | 100.0 | % | $ | 273,100 | $ | 232.09 | 100.0 | % | $ | 45,307 | 16.6 | % | $ | (0.41 | ) | |||||||||||||||||
Cost of goods | 159,405 | 115.99 | 50.1 | % | 131,130 | 111.44 | 48.0 | % | 28,275 | 21.6 | % | 4.55 | ||||||||||||||||||||||||
Gross profit | 159,002 | 115.69 | 49.9 | % | 141,970 | 120.65 | 52.0 | % | 17,032 | 12.0 | % | (4.96 | ) | |||||||||||||||||||||||
Advertising, promotional and selling expenses | 94,079 | 68.45 | 29.5 | % | 86,510 | 73.52 | 31.7 | % | 7,569 | 8.7 | % | (5.07 | ) | |||||||||||||||||||||||
General and administrative expenses | 26,748 | 19.46 | 8.4 | % | 23,879 | 20.29 | 8.7 | % | 2,869 | 12.0 | % | (0.83 | ) | |||||||||||||||||||||||
Impairment of assets | 243 | 0.18 | 0.1 | % | 517 | 0.44 | 0.2 | % | (274 | ) | 0.0 | % | (0.26 | ) | ||||||||||||||||||||||
�� | ||||||||||||||||||||||||||||||||||||
Total operating expenses | 121,070 | 88.09 | 38.0 | % | 110,906 | 94.25 | 40.6 | % | 10,164 | 9.2 | % | (6.16 | ) | |||||||||||||||||||||||
Operating income | 37,932 | 27.60 | 11.9 | % | 31,064 | 26.40 | 11.4 | % | 6,868 | 22.1 | % | 1.20 | ||||||||||||||||||||||||
Other income | 170 | 0.12 | 0.1 | % | 70 | 0.06 | 0.0 | % | 100 | 142.9 | % | 0.06 | ||||||||||||||||||||||||
Income before income tax expense | 38,102 | 27.72 | 12.0 | % | 31,134 | 26.46 | 11.4 | % | 6,968 | 22.4 | % | 1.26 | ||||||||||||||||||||||||
Income tax expense | 10,246 | 7.46 | 3.2 | % | 7,599 | 6.46 | 2.8 | % | 2,647 | 34.8 | % | 1.00 | ||||||||||||||||||||||||
Net income | $ | 27,856 | $ | 20.27 | 8.7 | % | $ | 23,535 | $ | 20.00 | 8.6 | % | $ | 4,321 | 18.4 | % | $ | 0.27 | ||||||||||||||||||
Thirteen Weeks Ended | ||||||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||
June 27, | June 29, | Amount | Per barrel | |||||||||||||||||||||||||||||||||
2020 | 2019 | change | % change | change | ||||||||||||||||||||||||||||||||
Barrels sold | 1,921 | 1,374 | 547 | 39.8 | % | |||||||||||||||||||||||||||||||
% of net | % of net | |||||||||||||||||||||||||||||||||||
Per barrel | revenue | Per barrel | revenue | |||||||||||||||||||||||||||||||||
Net revenue | $ | 452,138 | $ | 235.34 | 100.0 | % | $ | 318,407 | $ | 231.68 | 100.0 | % | $ | 133,731 | 42.0 | % | $ | 3.66 | ||||||||||||||||||
Cost of goods | 242,514 | 126.23 | 53.6 | % | 159,405 | 115.99 | 50.1 | % | 83,109 | 52.1 | % | 10.24 | ||||||||||||||||||||||||
Gross profit | 209,624 | 109.11 | 46.4 | % | 159,002 | 115.69 | 49.9 | % | 50,622 | 31.8 | % | (6.58 | ) | |||||||||||||||||||||||
Advertising, promotional and selling expenses | 100,336 | 52.23 | 22.2 | % | 94,079 | 68.45 | 29.5 | % | 6,257 | 6.7 | % | (16.22 | ) | |||||||||||||||||||||||
General and administrative expenses | 29,685 | 15.45 | 6.6 | % | 26,748 | 19.46 | 8.4 | % | 2,937 | 11.0 | % | (4.01 | ) | |||||||||||||||||||||||
Impairment of assets | 834 | 0.43 | 0.2 | % | 243 | 0.18 | 0.1 | % | 591 | 0.0 | % | 0.25 | ||||||||||||||||||||||||
Total operating expenses | 130,855 | 68.11 | 28.9 | % | 121,070 | 88.09 | 38.0 | % | 9,785 | 8.1 | % | (19.98 | ) | |||||||||||||||||||||||
Operating income | 78,769 | 41.00 | 17.4 | % | 37,932 | 27.60 | 11.9 | % | 40,837 | 107.7 | % | 13.40 | ||||||||||||||||||||||||
Other (expense) income, net | (264 | ) | (0.14 | ) | -0.1 | % | 170 | 0.12 | 0.1 | % | (434 | ) | -255.3 | % | (0.26 | ) | ||||||||||||||||||||
Income before income tax expense | 78,505 | 40.86 | 17.4 | % | 38,102 | 27.72 | 12.0 | % | 40,403 | 106.0 | % | 13.14 | ||||||||||||||||||||||||
Income tax expense | 18,364 | 9.56 | 4.1 | % | 10,246 | 7.46 | 3.2 | % | 8,118 | 79.2 | % | 2.10 | ||||||||||||||||||||||||
Net income | $ | 60,141 | $ | 31.30 | 13.3 | % | $ | 27,856 | $ | 20.27 | 8.7 | % | $ | 32,285 | 115.9 | % | $ | 11.03 | ||||||||||||||||||
Twenty-six Weeks Ended(in thousands) | ||||||||||||||||||||||||||||||||||||
June 29, 2019 | June 30, 2018 | Amount change | % change | Per barrel change | ||||||||||||||||||||||||||||||||
Barrels sold | 2,451 | 1,989 | 462 | 23.2 | % | |||||||||||||||||||||||||||||||
Per barrel | % of net revenue | Per barrel | % of net revenue | |||||||||||||||||||||||||||||||||
Net revenue | $ | 570,058 | $ | 232.60 | 100.0 | % | $ | 463,557 | $ | 233.02 | 100.0 | % | $ | 106,501 | 23.0 | % | $ | (0.42) | ||||||||||||||||||
Cost of goods | 286,516 | 116.90 | 50.3 | % | 225,490 | 113.35 | 48.6 | % | 61,026 | 27.1 | % | 3.55 | ||||||||||||||||||||||||
Gross profit | 283,542 | 115.69 | 49.7 | % | 238,067 | 119.67 | 51.4 | % | 45,475 | 19.1 | % | (3.98) | ||||||||||||||||||||||||
Advertising, promotional and selling expenses | 165,802 | 67.65 | 29.1 | % | 154,031 | 77.43 | 33.2 | % | 11,771 | 7.6 | % | (9.78) | ||||||||||||||||||||||||
General and administrative expenses | 50,122 | 20.45 | 8.8 | % | 43,217 | 21.72 | 9.3 | % | 6,905 | 16.0 | % | (1.27) | ||||||||||||||||||||||||
Impairment of assets | 243 | 0.10 | 0.0 | % | 517 | 0.26 | 0.1 | % | (274) | -53.0 | % | (0.16) | ||||||||||||||||||||||||
Total operating expenses | 216,167 | 88.20 | 37.9 | % | 197,765 | 99.41 | 42.7 | % | 18,402 | 9.3 | % | (11.21) | ||||||||||||||||||||||||
Operating income | 67,375 | 27.49 | 11.8 | % | 40,302 | 20.26 | 8.7 | % | 27,073 | 67.2 | % | 7.23 | ||||||||||||||||||||||||
Other income (expense), net | 555 | 0.23 | 0.1 | % | (10) | (0.01) | 0.0 | % | 565 | -5650.0 | % | 0.24 | ||||||||||||||||||||||||
Income before income tax expense | 67,930 | 27.72 | 11.9 | % | 40,292 | 20.25 | 8.7 | % | 27,638 | 68.6 | % | 7.47 | ||||||||||||||||||||||||
Income tax expense | 16,380 | 6.68 | 2.9 | % | 7,447 | 3.74 | 1.6 | % | 8,933 | 120.0 | % | 2.94 | ||||||||||||||||||||||||
Net income | $ | 51,550 | $ | 21.03 | 9.0 | % | $ | 32,845 | $ | 16.51 | 7.1 | % | $ | 18,705 | 56.9 | % | $ | 4.52 | ||||||||||||||||||
Twenty-Six Weeks Ended | ||||||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||
June 27, | June 29, | Amount | Per barrel | |||||||||||||||||||||||||||||||||
2020 | 2019 | change | % change | change | ||||||||||||||||||||||||||||||||
Barrels sold | 3,345 | 2,451 | 894 | 36.5 | % | |||||||||||||||||||||||||||||||
% of net | % of net | |||||||||||||||||||||||||||||||||||
Per barrel | revenue | Per barrel | revenue | |||||||||||||||||||||||||||||||||
Net revenue | $ | 782,703 | $ | 234.02 | 100.0 | % | $ | 570,058 | $ | 232.60 | 100.0 | % | $ | 212,645 | 37.3 | % | $ | 1.42 | ||||||||||||||||||
Cost of goods | 425,106 | 127.10 | 54.3 | % | 286,516 | 116.90 | 50.3 | % | 138,590 | 48.4 | % | 10.20 | ||||||||||||||||||||||||
Gross profit | 357,597 | 106.92 | 45.7 | % | 283,542 | 115.69 | 49.7 | % | 74,055 | 26.1 | % | (8.77 | ) | |||||||||||||||||||||||
Advertising, promotional and selling expenses | 198,227 | 59.27 | 25.3 | % | 165,802 | 67.65 | 29.1 | % | 32,425 | 19.6 | % | (8.38 | ) | |||||||||||||||||||||||
General and administrative expenses | 56,714 | 16.96 | 7.2 | % | 50,122 | 20.45 | 8.8 | % | 6,592 | 13.2 | % | (3.49 | ) | |||||||||||||||||||||||
Impairment of assets | 2,355 | 0.70 | 0.3 | % | 243 | 0.10 | 0.0 | % | 2,112 | 869.1 | % | 0.60 | ||||||||||||||||||||||||
Total operating expenses | 257,296 | 76.93 | 32.9 | % | 216,167 | 88.20 | 37.9 | % | 41,129 | 19.0 | % | (11.27 | ) | |||||||||||||||||||||||
Operating income | 100,301 | 29.99 | 12.8 | % | 67,375 | 27.49 | 11.8 | % | 32,926 | 48.9 | % | 2.50 | ||||||||||||||||||||||||
Other (expense) income, net | (561 | ) | (0.17 | ) | -0.1 | % | 555 | 0.23 | 0.1 | % | (1,116 | ) | -201.1 | % | (0.40 | ) | ||||||||||||||||||||
Income before income tax expense | 99,740 | 29.82 | 12.7 | % | 67,930 | 27.72 | 11.9 | % | 31,810 | 46.8 | % | 2.10 | ||||||||||||||||||||||||
Income tax expense | 21,365 | 6.39 | 2.7 | % | 16,380 | 6.68 | 2.9 | % | 4,985 | 30.4 | % | (0.29 | ) | |||||||||||||||||||||||
Net income | $ | 78,375 | $ | 23.43 | 10.0 | % | $ | 51,550 | $ | 21.03 | 9.0 | % | $ | 26,825 | 52.0 | % | $ | 2.40 | ||||||||||||||||||
Item 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
Item 4. | CONTROLS AND PROCEDURES |
Item 1. | LEGAL PROCEEDINGS |
Item 1A. | RISK FACTORS |
Item 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS |
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Approximate Dollar Value of Shares that May Yet be Purchased Under the Plans or Programs | ||||||||||||
December 30, 2018 to February 2, 2019 | 116 | $ | 127.05 | — | $ | 90,335 | ||||||||||
February 3, 2019 to March 2, 2019 | 219 | 115.78 | — | 90,335 | ||||||||||||
March 3, 2019 to March 30, 2019 | 13 | 187.54 | — | 90,335 | ||||||||||||
March 31, 2019 to May 4, 2019 | 107 | 182.03 | — | 90,335 | ||||||||||||
May 5, 2019 to June 1, 2019 | 79 | 175.67 | — | 90,335 | ||||||||||||
June 2, 2019 to June 29, 2019 | 32 | 187.54 | — | 90,335 | ||||||||||||
Total | 566 | $ | 144.68 | — | 90,335 | |||||||||||
Average | ||||||||||||||||
Total Number of Shares | Price Paid | Total Number of Shares Purchased as Part of | Approximate Dollar Value of Shares that May Yet be | |||||||||||||
Period | Purchased | per Share | Publicly Announced Plans or Programs | Purchased Under the Plans or Programs | ||||||||||||
December 29, 2020 to February 1, 2020 | 167 | $ | 132.37 | — | $ | 90,335 | ||||||||||
February 2, 2020 to February 29, 2020 | — | — | — | 90,335 | ||||||||||||
March 1, 2020 to March 28, 2020 | 58 | 105.56 | — | 90,335 | ||||||||||||
March 29, 2020 to May 2, 2020 | 59 | 145.01 | — | 90,335 | ||||||||||||
May 3, 2020 to May 30, 2020 | — | — | — | 90,335 | ||||||||||||
May 31, 2020 to June 27, 2020 | 31 | 187.54 | — | 90,335 | ||||||||||||
Total | 315 | $ | 135.23 | — | 90,335 | |||||||||||
Item 3. | DEFAULTS UPON SENIOR SECURITIES |
Item 4. | MINE SAFETY DISCLOSURES |
Item 5. | OTHER INFORMATION |
Item 6. | EXHIBITS |
Exhibit | No. | Title | ||
**10.1 | ||||
**10.2 | ||||
**10.3 | ||||
**10.4 | ||||
**10.5 | ||||
**10.6 | Offer Letter to Carolyn O’Boyle, Chief People Officer, dated February 7, 2020. | |||
*31.1 | ||||
*31.2 | ||||
*32.1 | ||||
*32.2 | ||||
*101.INS | ||||
XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | ||||
*101.SCH | ||||
XBRL Taxonomy Extension Schema Document | ||||
*101.CAL | ||||
XBRL Taxonomy Calculation Linkbase Document | ||||
*101.LAB | ||||
XBRL Taxonomy Label Linkbase Document | ||||
*101.PRE | ||||
XBRL Taxonomy Presentation Linkbase Document | ||||
*101.DEF | ||||
XBRL Definition Linkbase Document | ||||
*104 | The cover page from this Quarterly Report on Form 10-Q for the quarter ended June 27, 2020, formatted in Inline XBRL (formatted as Inline XBRL and contained in Exhibit 101). |
* | Filed with this report |
** | Designates management contract or compensatory plan or arrangement |
THE BOSTON BEER COMPANY, INC. | |||||||
(Registrant) | |||||||
Date: July | /s/ David A. Burwick | ||||||
David A. Burwick | |||||||
President and Chief Executive Officer | |||||||
(principal executive officer) | |||||||
Date: July | /s/ Frank H. Smalla | ||||||
Frank H. Smalla | |||||||
Chief Financial Officer | |||||||
(principal financial officer) |
SECURITIES HELD BY HOLDER | ||||