Boston Beer Announces First Quarter 2001 Results Reports Q1 EPS Growth of 11%

Apr 17, 2001, 01:00 ET from Boston Beer Company

    BOSTON, April 17 /PRNewswire/ -- The Boston Beer Company, Inc.
 (NYSE:   SAM), brewer of Samuel Adams Boston Lager(R), announced its results for
 the quarter ended March 31, 2001.  During the first quarter of 2001, barrels
 sold and net sales were 270,000 and $41.7 million, respectively, compared to
 290,000 and $44.3 million during the same period in 2000.  Earnings for the
 quarter ended March 31, 2001 were $.21 per share compared to $.19 per share
 for the quarter ended March 25, 2000.
     The Company's gross profit margin for the quarter improved to 58.2%, up
 from 55.7% in 2000 due to increased pricing, some business mix changes and the
 Company not incurring any additional hop cancellation charges during the
 quarter.  Total advertising, promotional and selling expenditures decreased 6%
 during the first quarter of 2001 compared to 2000 due to a delay in media
 spending while the Company developed new creative.  The Company continues to
 focus the majority of its sales and marketing resources on its flagship
 product, Samuel Adams Boston Lager(R).  Operating income was $5.3 million for
 the first quarter of 2001 compared to $5.5 million in the prior year quarter.
 Net income was $3.5 million for the first quarter of 2001 compared to $3.6
 million for the first quarter of 2000.
     Depletions of Samuel Adams Boston Lager and Samuel Adams Seasonals were
 flat as compared to the prior year quarter.  Declines in depletions of certain
 other year-round styles account for the 4.4% decrease in total depletions of
 core brands for the quarter.  Orders in hand suggest that core business
 shipments for April/May 2001 will be down 17% compared to April/May 2000.
 April/May 2000 was a period of significant inventory build at wholesale.
 Orders in hand for April/May 2001 are approximately equal to April/May 2000
 depletions. Actual shipments for April/May 2001 may differ, however, and no
 inferences should be drawn with respect to shipments in future periods.
     During the first quarter of 2001 the Company repurchased 227,000 shares of
 its Class A Common Stock for an aggregate purchase price of $2.0 million.
 Through April 10, 2001 the Company has repurchased a total of approximately
 4.1 million shares of its Class A Common Stock for an aggregate purchase price
 of $33.1 million with $1.9 million remaining on board authorization.  The
 Company continues to generate significant positive cash flows.
     "In many markets, during the first quarter we were able to implement a
 price increase expected to average 3% nationally" said Jim Koch, Chairman.
 "While this may have resulted in some short term volume losses, we believe
 that this sets us up to compete more effectively in the future, and supports
 our strategy of selling World Class Beer."
     During the first quarter, the Company did not cancel or sell any excess
 hop inventories or contracts, as the hop markets continued to be depressed
 with excess supply of hops and low hop prices. As a result, the Company did
 not recognize any hop cancellation charges in 2001, which helped produce an
 improvement in Gross Margin relative to 2000. "We continue to explore ways to
 sell our excess hop inventory and contracts, but market conditions prevented
 us from executing transactions at acceptable penalties to us. We will continue
 to address this problem as market conditions permit", said Martin Roper,
 President and CEO.
     Jim Koch founded The Boston Beer Company in 1984 to brew the Company's
 flagship beer, Samuel Adams Boston Lager.  Today, The Boston Beer Company,
 winner of more than 170 international awards, is America's leading brewer of
 world-class beer.  For more information, visit the web site at
 www.samadams.com or www.bostonbeer.com for financial information.
     Statements made in this press release that state the Company's or
 management's intentions, hopes, beliefs, expectations or predictions of the
 future are forward-looking statements.  It is important to note that the
 Company's actual results could differ materially from those projected in such
 forward-looking statements.  Additional information concerning factors that
 could cause actual results to differ materially from those in the forward-
 looking statements is contained from time to time in the Company's SEC
 filings, including but not limited to the Company's report on Form 10-K for
 the year ended December 30, 2000 and for December 25, 1999.  Copies of these
 documents may be obtained by contacting the Company or the SEC.
 
                           THE BOSTON BEER COMPANY, INC.
                                 Financial Results
                       (In thousands, except per share data)
 
     Operating Results:                                     (Unaudited)
                                                           Quarter Ended
                                                    March 31,         March 25,
                                                      2001               2000
 
       Barrels sold                                     270                290
 
       Gross sales                                  $46,218            $49,276
       Less excise taxes                              4,542              5,019
       Net sales                                     41,676             44,257
       Cost of goods sold                            17,437             19,615
       Gross profit                                  24,239             24,642
       Advertising, promotional & selling
        expenses                                     15,207             16,140
       General & administrative expenses              3,727              2,983
       Total operating expenses                      18,934             19,123
       Operating income                               5,305              5,519
       Other income (expenses), net                     564                642
       Income before provision for income
        taxes                                         5,869              6,161
       Provision for Income taxes                     2,420              2,588
       Net income                                    $3,449             $3,573
 
       Earnings per share - basic                     $0.21              $0.19
       Earnings per share - diluted                   $0.21              $0.19
 
       Weighted average shares - basic               16,485             18,859
       Weighted average shares - diluted             16,579             18,905
 
       Supplemental information:
       EBITDA                                        $7,013             $7,124
       Capital Expenditures                            $952             $1,515
       Depreciation and Amortization                 $1,621             $1,477
 
 
     Copies of The Boston Beer Company's press releases, including quarterly
 financial results, are available by fax (free of charge) by calling Company
 News On Call @ 1-800-758-5804 (Ext. 108764) or on the Internet at
 www.samadams.com
     Live, April 17, 2001 at 4pm, listen-only broadcast of conference call at
 www.bostonbeer.com.
     Instant Replay available after the conference call at 1-402-998-0764.
 
 

SOURCE Boston Beer Company
    BOSTON, April 17 /PRNewswire/ -- The Boston Beer Company, Inc.
 (NYSE:   SAM), brewer of Samuel Adams Boston Lager(R), announced its results for
 the quarter ended March 31, 2001.  During the first quarter of 2001, barrels
 sold and net sales were 270,000 and $41.7 million, respectively, compared to
 290,000 and $44.3 million during the same period in 2000.  Earnings for the
 quarter ended March 31, 2001 were $.21 per share compared to $.19 per share
 for the quarter ended March 25, 2000.
     The Company's gross profit margin for the quarter improved to 58.2%, up
 from 55.7% in 2000 due to increased pricing, some business mix changes and the
 Company not incurring any additional hop cancellation charges during the
 quarter.  Total advertising, promotional and selling expenditures decreased 6%
 during the first quarter of 2001 compared to 2000 due to a delay in media
 spending while the Company developed new creative.  The Company continues to
 focus the majority of its sales and marketing resources on its flagship
 product, Samuel Adams Boston Lager(R).  Operating income was $5.3 million for
 the first quarter of 2001 compared to $5.5 million in the prior year quarter.
 Net income was $3.5 million for the first quarter of 2001 compared to $3.6
 million for the first quarter of 2000.
     Depletions of Samuel Adams Boston Lager and Samuel Adams Seasonals were
 flat as compared to the prior year quarter.  Declines in depletions of certain
 other year-round styles account for the 4.4% decrease in total depletions of
 core brands for the quarter.  Orders in hand suggest that core business
 shipments for April/May 2001 will be down 17% compared to April/May 2000.
 April/May 2000 was a period of significant inventory build at wholesale.
 Orders in hand for April/May 2001 are approximately equal to April/May 2000
 depletions. Actual shipments for April/May 2001 may differ, however, and no
 inferences should be drawn with respect to shipments in future periods.
     During the first quarter of 2001 the Company repurchased 227,000 shares of
 its Class A Common Stock for an aggregate purchase price of $2.0 million.
 Through April 10, 2001 the Company has repurchased a total of approximately
 4.1 million shares of its Class A Common Stock for an aggregate purchase price
 of $33.1 million with $1.9 million remaining on board authorization.  The
 Company continues to generate significant positive cash flows.
     "In many markets, during the first quarter we were able to implement a
 price increase expected to average 3% nationally" said Jim Koch, Chairman.
 "While this may have resulted in some short term volume losses, we believe
 that this sets us up to compete more effectively in the future, and supports
 our strategy of selling World Class Beer."
     During the first quarter, the Company did not cancel or sell any excess
 hop inventories or contracts, as the hop markets continued to be depressed
 with excess supply of hops and low hop prices. As a result, the Company did
 not recognize any hop cancellation charges in 2001, which helped produce an
 improvement in Gross Margin relative to 2000. "We continue to explore ways to
 sell our excess hop inventory and contracts, but market conditions prevented
 us from executing transactions at acceptable penalties to us. We will continue
 to address this problem as market conditions permit", said Martin Roper,
 President and CEO.
     Jim Koch founded The Boston Beer Company in 1984 to brew the Company's
 flagship beer, Samuel Adams Boston Lager.  Today, The Boston Beer Company,
 winner of more than 170 international awards, is America's leading brewer of
 world-class beer.  For more information, visit the web site at
 www.samadams.com or www.bostonbeer.com for financial information.
     Statements made in this press release that state the Company's or
 management's intentions, hopes, beliefs, expectations or predictions of the
 future are forward-looking statements.  It is important to note that the
 Company's actual results could differ materially from those projected in such
 forward-looking statements.  Additional information concerning factors that
 could cause actual results to differ materially from those in the forward-
 looking statements is contained from time to time in the Company's SEC
 filings, including but not limited to the Company's report on Form 10-K for
 the year ended December 30, 2000 and for December 25, 1999.  Copies of these
 documents may be obtained by contacting the Company or the SEC.
 
                           THE BOSTON BEER COMPANY, INC.
                                 Financial Results
                       (In thousands, except per share data)
 
     Operating Results:                                     (Unaudited)
                                                           Quarter Ended
                                                    March 31,         March 25,
                                                      2001               2000
 
       Barrels sold                                     270                290
 
       Gross sales                                  $46,218            $49,276
       Less excise taxes                              4,542              5,019
       Net sales                                     41,676             44,257
       Cost of goods sold                            17,437             19,615
       Gross profit                                  24,239             24,642
       Advertising, promotional & selling
        expenses                                     15,207             16,140
       General & administrative expenses              3,727              2,983
       Total operating expenses                      18,934             19,123
       Operating income                               5,305              5,519
       Other income (expenses), net                     564                642
       Income before provision for income
        taxes                                         5,869              6,161
       Provision for Income taxes                     2,420              2,588
       Net income                                    $3,449             $3,573
 
       Earnings per share - basic                     $0.21              $0.19
       Earnings per share - diluted                   $0.21              $0.19
 
       Weighted average shares - basic               16,485             18,859
       Weighted average shares - diluted             16,579             18,905
 
       Supplemental information:
       EBITDA                                        $7,013             $7,124
       Capital Expenditures                            $952             $1,515
       Depreciation and Amortization                 $1,621             $1,477
 
 
     Copies of The Boston Beer Company's press releases, including quarterly
 financial results, are available by fax (free of charge) by calling Company
 News On Call @ 1-800-758-5804 (Ext. 108764) or on the Internet at
 www.samadams.com
     Live, April 17, 2001 at 4pm, listen-only broadcast of conference call at
 www.bostonbeer.com.
     Instant Replay available after the conference call at 1-402-998-0764.
 
 SOURCE  Boston Beer Company

RELATED LINKS

http://www.samadams.com