false Q2 0000949870 --12-26 us-gaap:AccountingStandardsUpdate201912Member us-gaap:AccountingStandardsUpdate201912Member P15Y P5Y11M4D P5Y25D P5Y10M20D 0000949870 2020-12-27 2021-06-26 xbrli:shares 0000949870 us-gaap:CommonClassAMember 2021-07-16 0000949870 us-gaap:CommonClassBMember 2021-07-16 iso4217:USD 0000949870 2021-06-26 0000949870 2020-12-26 0000949870 us-gaap:CommonClassAMember 2021-06-26 0000949870 us-gaap:CommonClassAMember 2020-12-26 0000949870 us-gaap:CommonClassBMember 2021-06-26 0000949870 us-gaap:CommonClassBMember 2020-12-26 iso4217:USD xbrli:shares 0000949870 2021-03-28 2021-06-26 0000949870 2020-03-29 2020-06-27 0000949870 2019-12-29 2020-06-27 0000949870 2019-12-28 0000949870 2020-06-27 0000949870 us-gaap:CommonStockMember us-gaap:CommonClassAMember 2020-12-26 0000949870 us-gaap:CommonStockMember us-gaap:CommonClassBMember 2020-12-26 0000949870 us-gaap:AdditionalPaidInCapitalMember 2020-12-26 0000949870 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-12-26 0000949870 us-gaap:RetainedEarningsMember 2020-12-26 0000949870 us-gaap:RetainedEarningsMember 2020-12-27 2021-03-27 0000949870 2020-12-27 2021-03-27 0000949870 us-gaap:CommonStockMember us-gaap:CommonClassAMember 2020-12-27 2021-03-27 0000949870 us-gaap:AdditionalPaidInCapitalMember 2020-12-27 2021-03-27 0000949870 srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember us-gaap:RetainedEarningsMember 2020-12-26 0000949870 srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember 2020-12-26 0000949870 srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember us-gaap:RetainedEarningsMember 2020-12-27 2021-03-27 0000949870 srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember 2020-12-27 2021-03-27 0000949870 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-12-27 2021-03-27 0000949870 us-gaap:CommonStockMember us-gaap:CommonClassAMember 2021-03-27 0000949870 us-gaap:CommonStockMember us-gaap:CommonClassBMember 2021-03-27 0000949870 us-gaap:AdditionalPaidInCapitalMember 2021-03-27 0000949870 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-03-27 0000949870 us-gaap:RetainedEarningsMember 2021-03-27 0000949870 2021-03-27 0000949870 us-gaap:RetainedEarningsMember 2021-03-28 2021-06-26 0000949870 us-gaap:CommonStockMember us-gaap:CommonClassAMember 2021-03-28 2021-06-26 0000949870 us-gaap:AdditionalPaidInCapitalMember 2021-03-28 2021-06-26 0000949870 us-gaap:CommonStockMember us-gaap:CommonClassBMember 2021-03-28 2021-06-26 0000949870 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-03-28 2021-06-26 0000949870 us-gaap:CommonStockMember us-gaap:CommonClassAMember 2021-06-26 0000949870 us-gaap:CommonStockMember us-gaap:CommonClassBMember 2021-06-26 0000949870 us-gaap:AdditionalPaidInCapitalMember 2021-06-26 0000949870 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-06-26 0000949870 us-gaap:RetainedEarningsMember 2021-06-26 0000949870 us-gaap:CommonStockMember us-gaap:CommonClassAMember 2019-12-28 0000949870 us-gaap:CommonStockMember us-gaap:CommonClassBMember 2019-12-28 0000949870 us-gaap:AdditionalPaidInCapitalMember 2019-12-28 0000949870 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-12-28 0000949870 us-gaap:RetainedEarningsMember 2019-12-28 0000949870 us-gaap:RetainedEarningsMember 2019-12-29 2020-03-28 0000949870 2019-12-29 2020-03-28 0000949870 us-gaap:CommonStockMember us-gaap:CommonClassAMember 2019-12-29 2020-03-28 0000949870 us-gaap:AdditionalPaidInCapitalMember 2019-12-29 2020-03-28 0000949870 us-gaap:CommonStockMember us-gaap:CommonClassBMember 2019-12-29 2020-03-28 0000949870 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-12-29 2020-03-28 0000949870 us-gaap:CommonStockMember us-gaap:CommonClassAMember 2020-03-28 0000949870 us-gaap:CommonStockMember us-gaap:CommonClassBMember 2020-03-28 0000949870 us-gaap:AdditionalPaidInCapitalMember 2020-03-28 0000949870 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-03-28 0000949870 us-gaap:RetainedEarningsMember 2020-03-28 0000949870 2020-03-28 0000949870 us-gaap:RetainedEarningsMember 2020-03-29 2020-06-27 0000949870 us-gaap:CommonStockMember us-gaap:CommonClassAMember 2020-03-29 2020-06-27 0000949870 us-gaap:AdditionalPaidInCapitalMember 2020-03-29 2020-06-27 0000949870 us-gaap:CommonStockMember us-gaap:CommonClassBMember 2020-03-29 2020-06-27 0000949870 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-03-29 2020-06-27 0000949870 us-gaap:CommonStockMember us-gaap:CommonClassAMember 2020-06-27 0000949870 us-gaap:CommonStockMember us-gaap:CommonClassBMember 2020-06-27 0000949870 us-gaap:AdditionalPaidInCapitalMember 2020-06-27 0000949870 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-06-27 0000949870 us-gaap:RetainedEarningsMember 2020-06-27 0000949870 sam:CovidNineteenPandemicMember 2019-12-29 2020-06-27 0000949870 sam:CovidNineteenPandemicMember 2019-12-29 2020-03-28 0000949870 sam:CovidNineteenPandemicMember 2020-03-29 2020-06-27 0000949870 us-gaap:CustomerRelationshipsMember 2020-12-27 2021-06-26 0000949870 us-gaap:CustomerRelationshipsMember 2021-06-26 0000949870 us-gaap:TradeNamesMember 2021-06-26 0000949870 us-gaap:CustomerRelationshipsMember 2020-12-26 0000949870 us-gaap:TradeNamesMember 2020-12-26 0000949870 us-gaap:TradeNamesMember sam:DogfishHeadBreweryMember 2019-12-28 0000949870 us-gaap:CustomerRelationshipsMember 2019-12-28 0000949870 srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember us-gaap:AccountingStandardsUpdate201912Member 2021-03-27 xbrli:pure 0000949870 sam:CustomersMember 2021-03-28 2021-06-26 0000949870 sam:CustomersMember 2020-12-27 2021-06-26 0000949870 sam:CustomersMember 2020-03-29 2020-06-27 0000949870 sam:CustomersMember 2019-12-29 2020-06-27 0000949870 sam:DistributorsMember 2021-03-28 2021-06-26 0000949870 sam:DistributorsMember 2020-12-27 2021-06-26 0000949870 sam:DistributorsMember 2020-03-29 2020-06-27 0000949870 sam:DistributorsMember 2019-12-29 2020-06-27 0000949870 2021-03-26 2021-03-27 0000949870 sam:VoluntaryEquityInvestmentProgramMember srt:MinimumMember 2020-12-27 2021-06-26 0000949870 sam:VoluntaryEquityInvestmentProgramMember srt:MaximumMember 2020-12-27 2021-06-26 0000949870 sam:VoluntaryEquityInvestmentProgramMember 2020-12-27 2021-06-26 0000949870 us-gaap:RestrictedStockMember 2020-03-01 2020-03-01 0000949870 us-gaap:RestrictedStockMember 2019-03-01 2019-03-01 0000949870 us-gaap:RestrictedStockMember 2019-01-01 2019-01-01 0000949870 us-gaap:CommonClassAMember 2021-03-28 2021-06-26 0000949870 us-gaap:CommonClassAMember 2020-03-29 2020-06-27 0000949870 us-gaap:CommonClassAMember 2020-12-27 2021-06-26 0000949870 us-gaap:CommonClassAMember 2019-12-29 2020-06-27 0000949870 us-gaap:CommonClassBMember 2021-03-28 2021-06-26 0000949870 us-gaap:CommonClassBMember 2020-03-29 2020-06-27 0000949870 us-gaap:CommonClassBMember 2020-12-27 2021-06-26 0000949870 us-gaap:CommonClassBMember 2019-12-29 2020-06-27 0000949870 sam:UnvestedSharesMember 2021-03-28 2021-06-26 0000949870 sam:UnvestedSharesMember 2020-03-29 2020-06-27 0000949870 sam:UnvestedSharesMember 2020-12-27 2021-06-26 0000949870 sam:UnvestedSharesMember 2019-12-29 2020-06-27 0000949870 2020-11-03 2020-11-03 0000949870 2021-05-14 2021-05-14 0000949870 sam:PerformanceBasedAwardsMember us-gaap:CommonClassAMember 2020-12-27 2021-06-26 0000949870 sam:IngredientsExcludingHopsAndMaltMember 2021-06-26 0000949870 sam:BrandSupportMember 2021-06-26 0000949870 us-gaap:MachineryAndEquipmentMember 2021-06-26 0000949870 sam:HopsAndMaltMember 2021-06-26 0000949870 sam:OtherPurchaseCommitmentMember 2021-06-26 0000949870 us-gaap:StateAndLocalJurisdictionMember 2020-12-27 2021-06-26 0000949870 us-gaap:StateAndLocalJurisdictionMember srt:MinimumMember 2020-12-27 2021-06-26 0000949870 us-gaap:StateAndLocalJurisdictionMember srt:MaximumMember 2020-12-27 2021-06-26 0000949870 us-gaap:AccountingStandardsUpdate201609Member 2021-03-28 2021-06-26 0000949870 us-gaap:AccountingStandardsUpdate201609Member 2020-03-29 2020-06-27 0000949870 us-gaap:AccountingStandardsUpdate201609Member 2020-12-27 2021-06-26 0000949870 us-gaap:AccountingStandardsUpdate201609Member 2019-12-29 2020-06-27 0000949870 us-gaap:RevolvingCreditFacilityMember 2018-03-31 0000949870 us-gaap:RevolvingCreditFacilityMember 2018-03-01 2018-03-31 0000949870 us-gaap:RevolvingCreditFacilityMember 2021-06-26 0000949870 sam:PerformanceBasedAwardsMember 2021-06-26 0000949870 sam:PerformanceBasedAwardsMember us-gaap:StockCompensationPlanMember sam:SeniorManagementMember 2021-03-01 2021-03-01 0000949870 sam:ServiceBasedStockOptionsMember us-gaap:StockCompensationPlanMember srt:ChiefExecutiveOfficerMember 2021-03-01 2021-03-01 0000949870 sam:NonEmployeeDirectorStockOptionMember 2021-05-19 2021-05-19 sam:Time 0000949870 us-gaap:RestrictedStockMember 2021-03-01 2021-03-01 0000949870 us-gaap:RestrictedStockMember srt:ChiefExecutiveOfficerMember 2020-03-01 2020-03-01 0000949870 us-gaap:StockCompensationPlanMember sam:VoluntaryEquityInvestmentProgramMember 2021-03-01 2021-03-01 0000949870 us-gaap:SellingAndMarketingExpenseMember 2021-03-28 2021-06-26 0000949870 us-gaap:SellingAndMarketingExpenseMember 2020-03-29 2020-06-27 0000949870 us-gaap:SellingAndMarketingExpenseMember 2020-12-27 2021-06-26 0000949870 us-gaap:SellingAndMarketingExpenseMember 2019-12-29 2020-06-27 0000949870 us-gaap:GeneralAndAdministrativeExpenseMember 2021-03-28 2021-06-26 0000949870 us-gaap:GeneralAndAdministrativeExpenseMember 2020-03-29 2020-06-27 0000949870 us-gaap:GeneralAndAdministrativeExpenseMember 2020-12-27 2021-06-26 0000949870 us-gaap:GeneralAndAdministrativeExpenseMember 2019-12-29 2020-06-27 0000949870 sam:DogfishHeadBreweryMember 2021-06-26 0000949870 sam:DogfishHeadBreweryMember 2020-12-27 2021-06-26 0000949870 sam:DogfishHeadBreweryMember 2021-03-28 2021-06-26

Table of Contents

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

 

FORM 10-Q

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES AND EXCHANGE ACT OF 1934

 

For the quarterly period ended June 26, 2021

 

OR

 

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)

 

 

MASSACHUSETTS

 

04-3284048

(State or other jurisdiction of

incorporation or organization)

 

(State or other jurisdiction of

incorporation Identification No.)

One Design Center Place,
Suite 850
, Boston, Massachusetts

 

02210

(Address of principal executive offices)

 

(Zip Code)

 

(617) 368-5000

(Registrant’s telephone number, including area code)

 

Securities registered pursuant to Section 12(b) of the Act.

 

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange on which registered

 

 

 

 

 

Class A Common Stock $0.01 per value

 

SAM

 

New York Stock Exchange

 

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      No  

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted 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 such files).     Yes      No  

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.  See the definition of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.  

 

Large accelerated filer

 

  

Accelerated filer

 

 

 

 

 

Non-accelerated filer

 

  

Smaller reporting company

 

 

 

 

 

 

 

 

Emerging growth company

 

 

 

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ____

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act.)     Yes      No  

 

Number of shares outstanding of each of the issuer’s classes of common stock, as of July 16, 2021:

 

Class A Common Stock, $.01 par value

 

10,203,795

Class B Common Stock, $.01 par value

 

2,078,000

(Title of each class)

 

(Number of shares)

 

 

 

 


Table of Contents

 

 

THE BOSTON BEER COMPANY, INC.

FORM 10-Q

June 26, 2021

TABLE OF CONTENTS

 

PART I.

 

FINANCIAL INFORMATION

 

PAGE

 

 

 

 

 

 

 

 

Item 1.

Condensed Consolidated Financial Statements (Unaudited)

 

3

 

 

 

Condensed Consolidated Balance Sheets as of June 26, 2021 and December 26, 2020

 

3

 

 

 

Condensed Consolidated Statements of Comprehensive Income for the thirteen and twenty-six weeks ended June 26, 2021 and June 27, 2020

 

4

 

 

 

Condensed Consolidated Statements of Cash Flows for the twenty-six weeks ended June 26, 2021 and June 27, 2020

 

5

 

 

 

Condensed Consolidated Statements of Stockholders’ Equity for the thirteen and twenty-six weeks ended June 26, 2021 and June 27, 2020

 

6

 

 

 

Notes to Condensed Consolidated Financial Statements

 

7-16

 

 

 

 

 

 

 

 

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

17-22

 

 

Item 3.

Quantitative and Qualitative Disclosures about Market Risk

 

22

 

 

Item 4.

Controls and Procedures

 

22

 

 

 

 

 

 

PART II.

 

OTHER INFORMATION

 

 

 

 

 

 

 

 

 

 

Item 1.

Legal Proceedings

 

23

 

 

Item 1A.

Risk Factors

 

23

 

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

 

24

 

 

Item 3.

Defaults Upon Senior Securities

 

24

 

 

Item 4.

Mine Safety Disclosures

 

24

 

 

Item 5.

Other Information

 

24

 

 

Item 6.

Exhibits

 

25

 

 

 

 

 

 

SIGNATURES

 

26

 

EX-31.1 Section 302 CEO Certification

EX-31.2 Section 302 CFO Certification

EX-32.1 Section 906 CEO Certification

EX-32.2 Section 906 CFO Certification

 

 

 

2


Table of Contents

 

 

PART I. FINANCIAL INFORMATION

 

Item 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

 

THE BOSTON BEER COMPANY, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except per share data)

(unaudited)

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

 

 

June 26,

2021

 

 

December 26,

2020

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

102,953

 

 

$

163,282

 

Accounts receivable

 

 

113,458

 

 

 

78,358

 

Inventories

 

 

247,550

 

 

 

130,910

 

Prepaid expenses and other current assets

 

 

38,240

 

 

 

30,230

 

Income tax receivable

 

 

12,896

 

 

 

10,393

 

Total current assets

 

 

515,097

 

 

 

413,173

 

Property, plant and equipment, net

 

 

664,200

 

 

 

623,083

 

Operating right-of-use assets

 

 

56,490

 

 

 

58,483

 

Goodwill

 

 

112,529

 

 

 

112,529

 

Intangible assets

 

 

103,804

 

 

 

103,930

 

Third-party production prepayments

 

 

88,683

 

 

 

56,843

 

Other assets

 

 

20,149

 

 

 

10,784

 

Total assets

 

$

1,560,952

 

 

$

1,378,825

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

201,043

 

 

$

121,647

 

Accrued expenses and other current liabilities

 

 

108,036

 

 

 

129,544

 

Current operating lease liabilities

 

 

8,272

 

 

 

8,232

 

Total current liabilities

 

 

317,351

 

 

 

259,423

 

Deferred income taxes, net

 

 

92,681

 

 

 

92,665

 

Non-current operating lease liabilities

 

 

57,040

 

 

 

59,171

 

Other liabilities

 

 

9,745

 

 

 

10,599

 

Total liabilities

 

 

476,817

 

 

 

421,858

 

Commitments and Contingencies (See Note J)

 

 

 

 

 

 

 

 

Stockholders' Equity:

 

 

 

 

 

 

 

 

Class A Common Stock, $.01 par value; 22,700,000 shares authorized; 10,165,649

   and 10,004,681 issued and outstanding as of  June 26, 2021 and

   December 26, 2020, respectively

 

 

102

 

 

 

100

 

Class B Common Stock, $.01 par value; 4,200,000 shares authorized; 2,078,000

   and 2,177,983 issued and outstanding as of June 26, 2021 and

   December 26, 2020, respectively

 

 

21

 

 

 

22

 

Additional paid-in capital

 

 

602,163

 

 

 

599,737

 

Accumulated other comprehensive loss

 

 

(217

)

 

 

(252

)

Retained earnings

 

 

482,066

 

 

 

357,360

 

Total stockholders' equity

 

 

1,084,135

 

 

 

956,967

 

Total liabilities and stockholders' equity

 

$

1,560,952

 

 

$

1,378,825

 

 

 

3


Table of Contents

 

 

THE BOSTON BEER COMPANY, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS INCOME AND COMPREHENSIVE INCOME

(in thousands, except per share data)

(unaudited)

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

 

 

Thirteen weeks ended

 

 

Twenty-six weeks ended

 

 

 

June 26,

2021

 

 

June 27,

2020

 

 

June 26,

2021

 

 

June 27,

2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

641,314

 

 

$

481,089

 

 

$

1,223,023

 

 

$

833,314

 

Less excise taxes

 

 

38,509

 

 

 

28,951

 

 

 

75,138

 

 

 

50,611

 

Net revenue

 

 

602,805

 

 

 

452,138

 

 

 

1,147,885

 

 

 

782,703

 

Cost of goods sold

 

 

327,116

 

 

 

242,514

 

 

 

622,566

 

 

 

425,106

 

Gross profit

 

 

275,689

 

 

 

209,624

 

 

 

525,319

 

 

 

357,597

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advertising, promotional and selling expenses

 

 

161,620

 

 

 

100,336

 

 

 

302,479

 

 

 

198,227

 

General and administrative expenses

 

 

32,960

 

 

 

29,685

 

 

 

64,906

 

 

 

56,714

 

Impairment of assets

 

 

1,004

 

 

 

834

 

 

 

1,231

 

 

 

2,355

 

Total operating expenses

 

 

195,584

 

 

 

130,855

 

 

 

368,616

 

 

 

257,296

 

Operating income

 

 

80,105

 

 

 

78,769

 

 

 

156,703

 

 

 

100,301

 

Other expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(29

)

 

 

(212

)

 

 

(58

)

 

 

(149

)

Other income (expense), net

 

 

8

 

 

 

(52

)

 

 

2

 

 

 

(412

)

Total other expense, net

 

 

(21

)

 

 

(264

)

 

 

(56

)

 

 

(561

)

Income before income tax provision

 

 

80,084

 

 

 

78,505

 

 

 

156,647

 

 

 

99,740

 

Income tax provision

 

 

20,889

 

 

 

18,364

 

 

 

31,887

 

 

 

21,365

 

Net income

 

$

59,195

 

 

$

60,141

 

 

$

124,760

 

 

$

78,375

 

Net income per common share - basic

 

$

4.82

 

 

$

4.93

 

 

$

10.16

 

 

$

6.44

 

Net income per common share - diluted

 

$

4.75

 

 

$

4.88

 

 

$

10.01

 

 

$

6.37

 

Weighted-average number of common shares - basic

 

 

12,283

 

 

 

12,196

 

 

 

12,277

 

 

 

12,177

 

Weighted-average number of common shares - diluted

 

 

12,465

 

 

 

12,258

 

 

 

12,461

 

 

 

12,221

 

Net income

 

$

59,195

 

 

$

60,141

 

 

$

124,760

 

 

$

78,375

 

Other comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustment

 

 

15

 

 

 

(13

)

 

 

35

 

 

 

(71

)

Comprehensive income

 

$

59,210

 

 

$

60,128

 

 

$

124,795

 

 

$

78,304

 

 

4


Table of Contents

 

 

THE BOSTON BEER COMPANY, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

 

 

Twenty-six weeks ended

 

 

 

June 26,

2021

 

 

June 27,

2020

 

Cash flows provided by operating activities:

 

 

 

 

 

 

 

 

Net income

 

$

124,760

 

 

$

78,375

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

34,174

 

 

 

32,584

 

Impairment of assets

 

 

1,231

 

 

 

2,355

 

(Gain) loss on disposal of property, plant and equipment

 

 

(150

)

 

 

39

 

Change in right-of-use assets

 

 

3,954

 

 

 

3,649

 

Other non-cash (income) expense

 

 

(98

)

 

 

375

 

Stock-based compensation expense

 

 

10,291

 

 

 

7,103

 

Deferred income taxes

 

 

(39

)

 

 

12,407

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

(35,075

)

 

 

(45,326

)

Inventories

 

 

(120,675

)

 

 

(12,795

)

Prepaid expenses, income tax receivable and other current assets

 

 

(25,329

)

 

 

(3,347

)

Third-party production prepayments

 

 

(17,024

)

 

 

(11,415

)

Other assets

 

 

(5,475

)

 

 

(253

)

Accounts payable

 

 

78,801

 

 

 

19,560

 

Accrued expenses and other current liabilities

 

 

(14,427

)

 

 

20,803

 

Change in operating lease liabilities

 

 

(4,052

)

 

 

(80

)

Other liabilities

 

 

120

 

 

 

(23

)

Net cash provided by operating activities

 

 

30,987

 

 

 

104,011

 

Cash flows used in investing activities:

 

 

 

 

 

 

 

 

Purchases of property, plant and equipment

 

 

(83,521

)

 

 

(60,072

)

Proceeds from disposal of property, plant and equipment

 

 

420

 

 

 

45

 

Other investing activities

 

 

145

 

 

 

260

 

Net cash used in investing activities

 

 

(82,956

)

 

 

(59,767

)

Cash flows (used in) provided by financing activities:

 

 

 

 

 

 

 

 

Proceeds from exercise of stock options and sale of investment shares

 

 

7,944

 

 

 

8,010

 

Net cash paid on note payable and finance leases

 

 

(795

)

 

 

(649

)

Cash borrowed on line of credit

 

 

 

 

 

100,000

 

Cash paid on line of credit

 

 

 

 

 

(100,000

)

Payment of tax withholding on stock-based payment awards and investment shares

 

 

(15,509

)

 

 

(1,559

)

Net cash (used in) provided by financing activities

 

 

(8,360

)

 

 

5,802

 

Change in cash and cash equivalents

 

 

(60,329

)

 

 

50,046

 

Cash and cash equivalents at beginning of year

 

 

163,282

 

 

 

36,670

 

Cash and cash equivalents at end of period

 

$

102,953

 

 

$

86,716

 

Supplemental disclosure of cash flow information:

 

 

 

 

 

 

 

 

Income taxes paid

 

$

34,395

 

 

$

2,929

 

Cash paid for amounts included in measurement of lease liabilities

 

 

 

 

 

 

 

 

Operating cash flows from operating leases

 

$

5,212

 

 

$

4,532

 

Operating cash flows from finance leases

 

$

66

 

 

$

75

 

Financing cash flows from finance leases

 

$

724

 

 

$

581

 

Right-of-use-assets obtained in exchange for operating lease obligations

 

$

1,961

 

 

$

11,311

 

Right-of-use-assets obtained in exchange for finance lease obligations

 

$

-

 

 

$

3,856

 

Change in purchase of property, plant and equipment in accounts payable and

   accrued expenses

 

$

(6,928

)

 

$

4,920

 

 

5


Table of Contents

 

 

THE BOSTON BEER COMPANY, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

For the thirteen and twenty-six weeks ended June 26, 2021 and June 27, 2020

(in thousands)

(unaudited)

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

 

 

 

 

 

 

Class A

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

Class A

 

 

Common

 

 

Class B

 

 

Class B

 

 

Additional

 

 

Other

 

 

 

 

 

 

Total

 

 

 

Common

 

 

Stock,

 

 

Common

 

 

Common

 

 

Paid-in

 

 

Comprehensive

 

 

Retained

 

 

Stockholders’

 

 

 

Shares

 

 

Par

 

 

Shares

 

 

Stock, Par

 

 

Capital

 

 

Loss

 

 

Earnings

 

 

Equity

 

Balance at December 26, 2020

 

 

10,005

 

 

$

100

 

 

 

2,178

 

 

$

22

 

 

$

599,737

 

 

$

(252

)

 

$

357,360

 

 

$

956,967

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

65,565

 

 

 

65,565

 

Stock options exercised and restricted

   shares activities

 

 

48

 

 

 

1

 

 

 

 

 

 

 

 

 

 

 

1,268

 

 

 

 

 

 

 

 

 

 

 

1,269

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4,957

 

 

 

 

 

 

 

 

 

 

 

4,957

 

Adoption of ASU 2019-12, Simplifying the accounting for income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(54

)

 

 

(54

)

Foreign currency translation adjustment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

20

 

 

 

 

 

 

 

20

 

Balance at March 27, 2021

 

 

10,053

 

 

$

101

 

 

 

2,178

 

 

$

22

 

 

$

605,962

 

 

$

(232

)

 

$

422,871

 

 

$

1,028,724

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

59,195

 

 

 

59,195

 

Stock options exercised and restricted

   shares activities

 

 

13

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(9,133

)

 

 

 

 

 

 

 

 

 

 

(9,133

)

Stock-based compensation expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5,334

 

 

 

 

 

 

 

 

 

 

 

5,334

 

Conversion from Class B to Class A

 

 

100

 

 

 

1

 

 

 

(100

)

 

 

(1

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

15

 

 

 

 

 

 

 

15

 

Balance at June 26, 2021

 

 

10,166

 

 

$

102

 

 

 

2,078

 

 

$

21

 

 

$

602,163

 

 

$

(217

)

 

$

482,066

 

 

$

1,084,135

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Class A

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

Class A

 

 

Common

 

 

Class B

 

 

Class B

 

 

Additional

 

 

Other

 

 

 

 

 

 

Total

 

 

 

Common

 

 

Stock,

 

 

Common

 

 

Common

 

 

Paid-in

 

 

Comprehensive

 

 

Retained

 

 

Stockholders’

 

 

 

Shares

 

 

Par

 

 

Shares

 

 

Stock, Par

 

 

Capital

 

 

Loss

 

 

Earnings

 

 

Equity

 

Balance at December 28, 2019

 

 

9,371

 

 

$

94

 

 

 

2,673

 

 

$

27

 

 

$

571,784

 

 

$

(1,669

)

 

$

165,400

 

 

$

735,636

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

18,234

 

 

 

18,234

 

Stock options exercised and restricted

   shares activities

 

 

38