Boston Beer Reports Second Quarter 2013 Results – Full Year Estimates Up

From Boston Beer Co:

BOSTON, July 31, 2013 /PRNewswire/mbb — The Boston Beer  Company, Inc. (NYSE: SAM) reported second quarter 2013 net revenue of $181.3 million, an increase of $33.8 million or 23%, over the same period last year, mainly due to core shipment growth of 21%. Net income for the second quarter was $19.7 million, or $1.45 per diluted share, an increase of $5.4 million or$0.39 per diluted share from the second quarter of 2012.  This increase was primarily due to shipment increases, partially offset by increased investments in advertising, promotional and selling expenses. 

• Depletions grew 24% and 21% from the comparable 13 and 26 week periods in the prior year.
• Second quarter gross margin was 54%; the Company has reduced its full year gross margin target to between 52% and 54% from between 53% and 55% primarily due to increases in ingredient costs and product mix.
• Advertising, promotional and selling expense and customer program and incentive costs increased by a combined $9.1 million or 21% in the quarter, primarily due to planned increased investments behind the Company’s brands.
• Advertising, promotional and selling expenses exclude $3.0 million of customer program and incentive costs that were classified as reductions in revenue in the second quarter of 2013. Customer program and incentive costs were reported in advertising, promotional and selling expense in the second quarter of 2012.
• Full year 2013 depletions growth is now estimated to be between 17% and 22%, an increase from the previously communicated estimate of 10% to 15%.
• Full year 2013 earnings per diluted share are now estimated to range from $5.10 to $5.40, an increase from the previously communicated estimate of $4.70 to $5.10.
• Full year 2013 capital spending is now estimated to be between $100 million to $140 million, an increase from the previously communicated estimate of $85 million to $105 million.

Jim Koch, Chairman and Founder of the Company, commented, "We achieved depletions growth of 24% and record total depletions in the second quarter.  Depletions growth in the second quarter improved from our first quarter results of 16%, primarily due to the improved growth of our Samuel Adams Seasonal program and our Samuel Adams Boston Lager. We believe that our depletions growth is attributable to strong sales execution and support from our wholesalers and retailers as well as our great quality beers and strong brands.  We were also delighted to learn, that for the fifth year in a row, our wholesalers ranked us the number one beer supplier in the industry, in the annual poll of beer wholesalers conducted by Tamarron Consulting, a consulting firm specializing in the alcohol beverage distribution industry.  This is a testament to the efforts of all Boston Beer employees to service and support our wholesalers’ business and to the relationships we have built with them. We continue to innovate and during the quarter we released Samuel Adams Boston Lager and Samuel Adams Summer Ale packaged in our new unique can which has been well received by wholesalers and drinkers and is generally in line with our expectations from a volume perspective."

Full report here
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