☒ | 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 . $0.01 par value | SAM | New York Stock Exchange |
Large accelerated filer | ☒ | |||||||
Accelerated filer | ||||||||
☐ | ||||||||
Non-accelerated filer | ☐ | |||||||
☐ | ||||||||
Emerging growth company | ☐ |
Class A Common Stock , $.01 par value | ||||
Class B Common Stock , $.01 par value | 2,307,983 | |||
(Title of each class) | (Number of shares) |
PART I. | FINANCIAL INFORMATION | PAGE | |||||||
Item 1. | 3 | ||||||||
Consolidated Balance Sheets as of | 3 | ||||||||
4 | |||||||||
Consolidated Statements of Stockholders’ Equity for the thirteen and thirty-nine weeks ended | 5 | ||||||||
6 | |||||||||
Notes to Consolidated Financial Statements | 7-19 | ||||||||
19-24 | |||||||||
Item 3. | 25 | ||||||||
Controls and Procedures | 25 | ||||||||
PART II. | OTHER INFORMATION | ||||||||
Legal Proceedings | 25 | ||||||||
Risk Factors | 25-26 | ||||||||
Item 2. | 26-27 | ||||||||
Item 3. | 27 | ||||||||
Mine Safety Disclosures | 27 | ||||||||
Other Information | 27 | ||||||||
Exhibits | 27-29 | ||||||||
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 |
March 28, | December 28, | |||||||
2020 | 2019 | |||||||
Assets | ||||||||
Current Assets: | ||||||||
Cash and cash equivalents | $ | 129,504 | $ | 36,670 | ||||
Accounts receivable | 58,253 | 54,404 | ||||||
Inventories | 124,529 | 106,038 | ||||||
Prepaid expenses and other current assets | 14,894 | 12,077 | ||||||
Income tax receivable | 8,823 | 9,459 | ||||||
Total current assets | 336,003 | 218,648 | ||||||
Property, plant and equipment, net | 550,030 | 541,068 | ||||||
Operating right-of-use assets | 63,039 | 53,758 | ||||||
Goodwill | 112,529 | 112,529 | ||||||
Intangible assets | 104,209 | 104,272 | ||||||
Other assets | 27,754 | 23,782 | ||||||
Total assets | $ | 1,193,564 | $ | 1,054,057 | ||||
Liabilities and Stockholders’ Equity | ||||||||
Current Liabilities: | ||||||||
Accounts payable | $ | 92,247 | $ | 76,374 | ||||
Accrued expenses and other current liabilities | 89,078 | 99,107 | ||||||
Current operating lease liabilities | 5,459 | 5,168 | ||||||
Total current liabilities | 186,784 | 180,649 | ||||||
Deferred income taxes, net | 77,389 | 75,010 | ||||||
Line of credit | 100,000 | — | ||||||
Non-current operating lease liabilities | 63,248 | 53,940 | ||||||
Other liabilities | 7,907 | 8,822 | ||||||
Total liabilities | 435,328 | 318,421 | ||||||
Commitments and Contingencies (See Note K) | ||||||||
Stockholders’ Equity: | ||||||||
Class A Common Stock, $.01 par value; 22,700,000 shares authorized; 9,559,200 and 9,370,526 issued and outstanding as of March 28, 2020 and December 28, 2019, respectively | 96 | 94 | ||||||
Class B Common Stock, $.01 par value; 4,200,000 shares authorized; 2,522,983 and 2,672,983 issued and outstanding as of March 28, 2020 and December 28, 2019, respectively | 25 | 27 | ||||||
Additional paid-in capital | 576,208 | 571,784 | ||||||
Accumulated other comprehensive loss, net of tax | (1,727 | ) | (1,669 | ) | ||||
Retained earnings | 183,634 | 165,400 | ||||||
Total stockholders’ equity | 758,236 | 735,636 | ||||||
Total liabilities and stockholders’ equity | $ | 1,193,564 | $ | 1,054,057 | ||||
September 26, 2020 | December 28, 2019 | |||||||
Assets | ||||||||
Current Assets: | ||||||||
Cash and cash equivalents | $ | 157,130 | $ | 36,670 | ||||
Accounts receivable | 93,809 | 54,404 | ||||||
Inventories | 123,831 | 106,038 | ||||||
Prepaid expenses and other current assets | 22,214 | 12,077 | ||||||
Income tax receivable | 3,041 | 9,459 | ||||||
Total current assets | 400,025 | 218,648 | ||||||
Property, plant and equipment, net | 588,977 | 541,068 | ||||||
Operating right-of-use | 59,991 | 53,758 | ||||||
Goodwill | 112,529 | 112,529 | ||||||
Intangible assets | 103,994 | 104,272 | ||||||
Other assets | 46,820 | 23,782 | ||||||
Total assets | $ | 1,312,336 | $ | 1,054,057 | ||||
Liabilities and Stockholders’ Equity | ||||||||
Current Liabilities: | ||||||||
Accounts payable | $ | 108,600 | $ | 76,374 | ||||
Accrued expenses and other current liabilities | 115,604 | 99,107 | ||||||
Current operating lease liabilities | 7,735 | 5,168 | ||||||
Total current liabilities | 231,939 | 180,649 | ||||||
Deferred income taxes, net | 89,170 | 75,010 | ||||||
Non-current operating lease liabilities | 61,184 | 53,940 | ||||||
Other liabilities | 11,513 | 8,822 | ||||||
Total liabilities | 393,806 | 318,421 | ||||||
Commitments and Contingencies (See Note K) | ||||||||
Stockholders’ Equity: | ||||||||
Class A Common Stock, $.01 par value; 22,700,000 shares authorized; 9,868,649 and 9,370,526 issued and outstanding as of September 26, 2020 and December 28, 2019, respectively | 99 | 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 September 26, 2020 and December 28, 2019, respectively | 23 | 27 | ||||||
Additional paid-in capital | 594,427 | 571,784 | ||||||
Accumulated other comprehensive loss, net of tax | (562 | ) | (1,669 | ) | ||||
Retained earnings | 324,543 | 165,400 | ||||||
Total stockholders’ equity | 918,530 | 735,636 | ||||||
Total liabilities and stockholders’ equity | $ | 1,312,336 | $ | 1,054,057 | ||||
Thirteen weeks ended | ||||||||
March 28, 2020 | March 30, 2019 | |||||||
Revenue | $ | 352,225 | $ | 267,559 | ||||
Less excise taxes | 21,660 | 15,908 | ||||||
Net revenue | 330,565 | 251,651 | ||||||
Cost of goods sold | 182,592 | 127,111 | ||||||
Gross profit | 147,973 | 124,540 | ||||||
Operating expenses: | ||||||||
Advertising, promotional and selling expenses | 97,891 | 71,723 | ||||||
General and administrative expenses | 27,029 | 23,374 | ||||||
Impairment of assets | 1,521 | — | ||||||
Total operating expenses | 126,441 | 95,097 | ||||||
Operating income | 21,532 | 29,443 | ||||||
Other (expense) income, net: | ||||||||
Interest income, net | 63 | 637 | ||||||
Other (expense) income, net | (360 | ) | (252 | ) | ||||
Total other (expense) income, net | (297 | ) | 385 | |||||
Income before income tax provision | 21,235 | 29,828 | ||||||
Income tax provision | 3,001 | 6,134 | ||||||
Net income | $ | 18,234 | $ | 23,694 | ||||
Net income per common share - basic | $ | 1.50 | $ | 2.04 | ||||
Net income per common share - diluted | $ | 1.49 | $ | 2.02 | ||||
Weighted-average number of common shares - Class A basic | 9,425 | 8,606 | ||||||
Weighted-average number of common shares - Class B basic | 2,645 | 2,918 | ||||||
Weighted-average number of common shares - | 12,186 | 11,636 | ||||||
Net income | $ | 18,234 | $ | 23,694 | ||||
Other comprehensive income: | ||||||||
Foreign currency translation adjustment | (58 | ) | 37 | |||||
Comprehensive income | $ | 18,176 | $ | 23,731 | ||||
Thirteen weeks ended | Thirty-nine weeks ended | |||||||||||||||
September 26, 2020 | September 28, 2019 | September 26, 2020 | September 28, 2019 | |||||||||||||
Revenue | $ | 525,249 | $ | 402,691 | $ | 1,358,563 | $ | 1,008,893 | ||||||||
Less excise taxes | 32,457 | 24,225 | 83,068 | 60,369 | ||||||||||||
Net revenue | 492,792 | 378,466 | 1,275,495 | 948,524 | ||||||||||||
Cost of goods sold | 252,207 | 190,631 | 677,313 | 477,147 | ||||||||||||
Gross profit | 240,585 | 187,835 | 598,182 | 471,377 | ||||||||||||
Operating expenses: | ||||||||||||||||
Advertising, promotional and selling expenses | 108,023 | 96,570 | 306,250 | 262,372 | ||||||||||||
General and administrative expenses | 30,340 | 31,429 | 87,054 | 81,552 | ||||||||||||
Impairment of assets | 441 | — | 2,796 | 243 | ||||||||||||
Total operating expenses | 138,804 | 127,999 | 396,100 | 344,167 | ||||||||||||
Operating income | 101,781 | 59,836 | 202,082 | 127,210 | ||||||||||||
Other income (expense), net: | ||||||||||||||||
Interest (expense) income, net | (20 | ) | (138 | ) | (169 | ) | 472 | |||||||||
Other income (expense), net | 190 | (764 | ) | (222 | ) | (818 | ) | |||||||||
Total other income (expense), net | 170 | (902 | ) | (391 | ) | (346 | ) | |||||||||
Income before income tax provision | 101,951 | 58,934 | 201,691 | 126,864 | ||||||||||||
Income tax provision | 21,183 | 14,205 | 42,548 | 30,585 | ||||||||||||
Net income | $ | 80,768 | $ | 44,729 | $ | 159,143 | $ | 96,279 | ||||||||
Net income per common share - basic | $ | 6.61 | $ | 3.70 | $ | 13.05 | $ | 8.16 | ||||||||
Net income per common share - diluted | $ | 6.51 | $ | 3.65 | $ | 12.90 | $ | 8.07 | ||||||||
Weighted-average number of common shares A basic- Class | 9,846 | 9,136 | 9,663 | 8,797 | ||||||||||||
Weighted-average number of common shares B basic- Class | 2,308 | 2,862 | 2,451 | 2,899 | ||||||||||||
Weighted-average number of common shares - diluted | 12,333 | 12,150 | 12,259 | 11,823 | ||||||||||||
Net income | $ | 80,768 | $ | 44,729 | $ | 159,143 | $ | 96,279 | ||||||||
Other comprehensive income, net of tax: | ||||||||||||||||
Foreign currency translation adjustment | 61 | 1 | (10 | ) | 43 | |||||||||||
Defined benefit plans liability adjustment | 1,117 | — | 1,117 | — | ||||||||||||
Total other comprehensive income, net of tax | 1,178 | 1 | 1,107 | 43 | ||||||||||||
Comprehensive income | $ | 81,946 | $ | 44,730 | $ | 160,250 | $ | 96,322 |
Class A Common Shares | Class A Common Stock, Par | Class B Common Shares | Class B Common Stock, Par | 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 | |||||||||||||||||
Net income | 18,234 | 18,234 | ||||||||||||||||||||||||||||||
Stock options exercised and restricted shares activities | 38 | — | 1,858 | 1,858 | ||||||||||||||||||||||||||||
Stock-based compensation expense | 2,566 | 2,566 | ||||||||||||||||||||||||||||||
Conversion from Class B to Class A | 150 | 2 | (150 | ) | (2 | ) | — | |||||||||||||||||||||||||
Currency translation adjustment | (58 | ) | (58 | ) | ||||||||||||||||||||||||||||
Balance at March 28 , 2020 | 9,559 | $ | 96 | 2,523 | $ | 25 | $ | 576,208 | $ | (1,727 | ) | $ | 183,634 | $ | 758,236 | |||||||||||||||||
Class A Common Shares | Class A Common Stock, Par | Class B Common Shares | Class B Common Stock, Par | 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 | |||||||||||||||||
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 | |||||||||||||||||
Net income | 18,234 | 18,234 | ||||||||||||||||||||||||||||||
Stock options exercised and restricted shares activities | 38 | — | 1,858 | 1,858 | ||||||||||||||||||||||||||||
Stock-based compensation expense | 2,566 | 2,566 | ||||||||||||||||||||||||||||||
Conversion from Class B to Class A | 150 | 2 | (150 | ) | (2 | ) | — | |||||||||||||||||||||||||
Currency translation adjustment | (58 | ) | (58 | ) | ||||||||||||||||||||||||||||
Balance at March 28, 2020 | 9,559 | $ | 96 | 2,523 | $ | 25 | $ | 576,208 | $ | (1,727 | ) | $ | 183,634 | $ | 758,236 | |||||||||||||||||
Net income | 60,141 | 60,141 | ||||||||||||||||||||||||||||||
Stock options exercised and restricted shares activities | 61 | — | 4,582 | 4,582 | ||||||||||||||||||||||||||||
Stock-based compensation expense | 4,537 | 4,537 | ||||||||||||||||||||||||||||||
Conversion from Class B to Class A | 215 | 2 | (215 | ) | (2 | ) | — | |||||||||||||||||||||||||
Currency translation adjustment | (13 | ) | (13 | ) | ||||||||||||||||||||||||||||
Balance at June 27, 2020 | 9,835 | $ | 98 | 2,308 | $ | 23 | $ | 585,327 | $ | (1,740 | ) | $ | 243,775 | $ | 827,483 | |||||||||||||||||
Net income | 80,768 | 80,768 | ||||||||||||||||||||||||||||||
Stock options exercised and restricted shares activities | 34 | 1 | 5,468 | 5,469 | ||||||||||||||||||||||||||||
Stock-based compensation expense | 3,632 | 3,632 | ||||||||||||||||||||||||||||||
Defined benefit plans liability adjustment, net of tax of $378 | 1,117 | 1,117 | ||||||||||||||||||||||||||||||
Currency translation adjustment | 61 | 61 | ||||||||||||||||||||||||||||||
Balance at September 26, 2020 | 9,869 | $ | 99 | 2,308 | $ | 23 | $ | 594,427 | $ | (562 | ) | $ | 324,543 | $ | 918,530 | |||||||||||||||||
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 | |||||||||||||||||
Net income | 44,729 | 44,729 | ||||||||||||||||||||||||||||||
Stock options exercised and restricted shares activities | 31 | — | 3,473 | 3,473 | ||||||||||||||||||||||||||||
Stock-based compensation expense | 3,233 | 3,233 | ||||||||||||||||||||||||||||||
Shares issued in connection with Dogfish Head merger | 430 | 4 | 144,739 | 144,743 | ||||||||||||||||||||||||||||
Conversion from Class B to Class A | 100 | 1 | (100 | ) | (1 | ) | — | |||||||||||||||||||||||||
Currency translation adjustment | 1 | 1 | ||||||||||||||||||||||||||||||
Balance at September 28, 2019 | 9,216 | $ | 92 | 2,818 | $ | 28 | $ | 568,047 | $ | (1,154 | ) | $ | 151,967 | $ | 718,980 | |||||||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited)
|
Thirteen weeks ended | ||||||||
March 28, | March 30, | |||||||
2020 | 2019 | |||||||
Cash flows provided by operating activities: | ||||||||
Net income | $ | 18,234 | $ | 23,694 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 15,945 | 12,863 | ||||||
Impairment of assets | 1,521 | — | ||||||
Loss on disposal of property, plant and equipment | — | 271 | ||||||
Change in ROU assets | 1,807 | 859 | ||||||
Credit loss expense | 552 | — | ||||||
Stock-based compensation expense | 2,566 | 2,066 | ||||||
Deferred income taxes | 2,379 | 1,029 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | (4,436 | ) | (20,452 | ) | ||||
Inventories | (23,856 | ) | (15,353 | ) | ||||
Prepaid expenses, income tax receivable and other assets | (884 | ) | 1,336 | |||||
Accounts payable | 14,264 | 14,400 | ||||||
Accrued expenses and other current liabilities | (7,579 | ) | (6,465 | ) | ||||
Change in operating lease liability | (1,489 | ) | (624 | ) | ||||
Other liabilities | (100 | ) | 19 | |||||
Net cash provided by operating activities | 18,924 | 13,643 | ||||||
Cash flows used in investing activities: | ||||||||
Purchases of property, plant and equipment | (27,394 | ) | (22,080 | ) | ||||
Proceeds from disposal of property, plant and equipment | 35 | 1 | ||||||
Other investing activities | 96 | 28 | ||||||
Net cash used in investing activities | (27,263 | ) | (22,051 | ) | ||||
Cash flows provided by financing activities: | ||||||||
Proceeds from exercise of stock options and sale of investment shares | 2,941 | 2,968 | ||||||
Net cash paid on note payable and finance leases | (209 | ) | (72 | ) | ||||
Payment of tax withholdings on stock-based payment awards and investment shares | (1,559 | ) | — | |||||
Cash borrowed on line of credit | 100,000 | — | ||||||
Net cash provided by financing activities | 101,173 | 2,896 | ||||||
Change in cash and cash equivalents | 92,834 | (5,512 | ) | |||||
Cash and cash equivalents at beginning of year | 36,670 | 108,399 | ||||||
Cash and cash equivalents at end of period | $ | 129,504 | $ | 102,887 | ||||
Supplemental disclosure of cash flow information: | ||||||||
Income taxes paid | $ | 5 | $ | 207 | ||||
Cash paid for amounts included in measurement of lease liabilities | ||||||||
Operating cash flows from operating leases | $ | 2,097 | $ | 885 | ||||
Operating cash flows from finance leases | $ | 22 | $ | 8 | ||||
Financing cash flows from finance leases | $ | 141 | $ | 7 | ||||
Right-of-use assets obtained in exchange for operating lease obligations | $ | 11,088 | $ | 27,034 | ||||
Right-of-use assets obtained in exchange for finance lease obligations | $ | — | $ | 3 | ||||
Change in purchase of property, plant and equipment in accounts payable and accrued expenses | $ | (1,029 | ) | $ | 118 | |||
B. | COVID-19 Pandemic |
Total (In | ||||
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 | ||
Total | ||||
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 | ||
(i) |
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. |
The tax effects of the pro forma adjustments at an estimated statutory rate of |
Thirteen weeks ended | ||||||||
March 28, | March 30, | |||||||
2020 | 2019 | |||||||
(in thousands) | ||||||||
Net revenue | $ | 330,565 | $ | 276,739 | ||||
Net income | $ | 18,234 | $ | 24,664 | ||||
Basic earnings per share | $ | 1.50 | $ | 2.04 | ||||
Diluted earnings per share | $ | 1.49 | $ | 2.02 |
Thirteen weeks ended | Thirty-nine weeks ended | |||||||
September 28, 2019 | September 28, 2019 | |||||||
(in thousands) | (in thousands) | |||||||
Net revenue | $ | 379,205 | $ | 1,002,959 | ||||
Net income | $ | 46,445 | $ | 103,105 | ||||
Basic earnings per share | $ | 3.84 | $ | 8.74 | ||||
Diluted earnings per share | $ | 3.79 | $ | 8.64 |
As of March 28, 2020 | As of December 28, 2019 | |||||||||||||||||||||||||||
Estimated Useful | Gross Carrying | Accumulated | Net Book | Gross Carrying | Accumulated | Net Book | ||||||||||||||||||||||
Life (Years) | Value | Amortization | Value | Value | Amortization | Value | ||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||
Custmer Relationships | 15 | $ | 3,800 | $ | (190 | ) | $ | 3,610 | $ | 3,800 | $ | (127 | ) | $ | 3,673 | |||||||||||||
Trade Names | Indefinite | 100,599 | — | 100,599 | 100,599 | — | 100,599 | |||||||||||||||||||||
Total intangible assets | $ | 104,399 | $ | (190 | ) | $ | 104,209 | $ | 104,399 | $ | (127 | ) | $ | 104,272 | ||||||||||||||
As of September 26, 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 | $ | (316 | ) | $ | 3,484 | $ | 3,800 | $ | (127 | ) | $ | 3,673 | |||||||||||||
Trade Names | Indefinite | 100,510 | — | 100,510 | 100,599 | — | 100,599 | |||||||||||||||||||||
Total intangible assets | $ | 104,310 | $ | (316 | ) | $ | 103,994 | $ | 104,399 | $ | (127 | ) | $ | 104,272 | ||||||||||||||
Fiscal Year | Amount (in thou sands) | |||
Remainder of 2020 | $ | 190 | ||
2021 | 253 | |||
2022 | 253 | |||
2023 | 253 | |||
2024 | 253 | |||
2025 | 253 |
E. Recent Accounting Pronouncements |
March 28, | December 28, | |||||||
2020 | 2019 | |||||||
(in thousands) | ||||||||
Current inventory: | ||||||||
Raw materials | $ | 73,267 | $ | 61,522 | ||||
Work in process | 14,775 | 12,631 | ||||||
Finished goods | 36,487 | 31,885 | ||||||
Total current inventory | 124,529 | 106,038 | ||||||
Long term inventory | 15,413 | 10,048 | ||||||
Total inventory | $ | 139,942 | $ | 116,086 | ||||
September 26, | December 28, | |||||||
2020 | 2019 | |||||||
(in thousands) | ||||||||
Current inventory: | ||||||||
Raw materials | $ | 61,705 | $ | 61,522 | ||||
Work in process | 14,287 | 12,631 | ||||||
Finished goods | 47,839 | 31,885 | ||||||
Total current inventory | 123,831 | 106,038 | ||||||
Long term inventory | 15,327 | 10,048 | ||||||
Total inventory | $ | 139,158 | $ | 116,086 | ||||
H. Leases |
Classification | Leases | |||||||||
March 28, | December 28, | |||||||||
2020 | 2019 | |||||||||
(in thousands) | ||||||||||
Right-of-use assets | ||||||||||
Operating lease assets | Operating right-of-use assets | $ | 63,039 | $ | 53,758 | |||||
Finance lease assets | Property, plant and equipment, net | 2,398 | 2,531 | |||||||
Lease Liabilities | ||||||||||
Current | ||||||||||
Operating lease liabilities | Current operating lease liabilities | 5,459 | 5,168 | |||||||
Finance lease liabilities | Accrued expenses and other current liabilities | 551 | 546 | |||||||
Non-current | ||||||||||
Operating lease liabilities | Non-current operating lease liabilities | 63,248 | 53,940 | |||||||
Finance lease liabilities | Other liabilities | 1,896 | 2,042 |
Classification | Leases | |||||||||
September 26, 2020 | December 28, 2019 | |||||||||
(in thousands) | ||||||||||
Right-of-use | ||||||||||
Operating lease assets | Operating right-of-use | $ | 59,991 | $ | 53,758 | |||||
Finance lease assets | Property, plant and equipment, net | 4,389 | 2,531 | |||||||
Lease Liabilities | ||||||||||
Current | ||||||||||
Operating lease liabilities | Current operating lease liabilities | 7,735 | 5,168 | |||||||
Finance lease liabilities | Accrued expenses and other current liabilities | 1,441 | 546 | |||||||
Non-current | ||||||||||
Operating lease liabilities | Non-current operating lease liabilities | 61,184 | 53,940 | |||||||
Finance lease liabilities | Other liabilities | 2,997 | 2,042 |
Finance Leases | ||||||||
March 28, | December 28, | |||||||
2020 | 2019 | |||||||
(in thousands) | ||||||||
Gross value | $ | 2,837 | $ | 2,837 | ||||
Accumulated amortization | (439 | ) | (306 | ) | ||||
Carrying value | $ | 2,398 | $ | 2,531 | ||||
Finance Leases | ||||||||
September 26, | December 28, | |||||||
2020 | 2019 | |||||||
(in thousands) | ||||||||
Gross value | $ | 5,525 | $ | 2,837 | ||||
Accumulated amortization | (1,136 | ) | (306 | ) | ||||
Carrying value | $ | 4,389 | $ | 2,531 | ||||
Lease Cost | ||||||||
March 28, | March 30, | |||||||
2020 | 2019 | |||||||
(in thousands) | ||||||||
Operating lease cost | $ | 2,415 | $ | 1,128 | ||||
Variable lease costs not included in liability | 485 | 199 | ||||||
Finance lease cost: | ||||||||
Amortization of right-of-use asset | 133 | — | ||||||
Interest on lease liabilities | 22 | — | ||||||
Total finance lease cost | $ | 155 | $ | — | ||||
Lease Cost | ||||||||||||||||
Thirteen weeks ended | Thirty-nine weeks ended | |||||||||||||||
September 26, | September 28, | September 26, | September 28, | |||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
(in thousands) | (in thousands) | |||||||||||||||
Operating lease cost | $ | 2,425 | $ | 1,375 | $ | 7,277 | $ | 3,680 | ||||||||
Variable lease costs not included in liability | 349 | 171 | 1,321 | 643 | ||||||||||||
Finance lease cost: | ||||||||||||||||
Amortization of right-of-use | 257 | 131 | 830 | 174 | ||||||||||||
Interest on lease liabilities | 31 | 206 | 106 | 258 | ||||||||||||
Total finance lease cost | $ | 288 | $ | 337 | $ | 936 | $ | 432 | ||||||||
Operating Leases | Capital Leases | Weighted-Average | ||||||||||||||
Operating | Capital | |||||||||||||||
(in thousands) | ||||||||||||||||
2020 | $ | 3,962 | $ | 464 | ||||||||||||
2021 | 9,816 | 626 | ||||||||||||||
2022 | 9,695 | 626 | ||||||||||||||
2023 | 9,694 | 626 | ||||||||||||||
2024 | 9,470 | 265 | ||||||||||||||
Thereafter | 39,524 | 23 | ||||||||||||||
Total lease payments | 82,161 | 2,630 | ||||||||||||||
Less imputed interest (based on 3.5% weighted-average discount rate) | (13,454 | ) | (183 | ) | ||||||||||||
Present value of lease liability | $ | 68,707 | $ | 2,447 | 9.4 | 4.5 | ||||||||||
Operating Leases | Finance Leases | Weighted-Average Remaining Term in Years | ||||||||||||||
Operating Leases | Finance Leases | |||||||||||||||
(in thousands) | ||||||||||||||||
2020 | $ | 2,464 | $ | 391 | ||||||||||||
2021 | 10,094 | 1,572 | ||||||||||||||
2022 | 9,908 | 1,572 | ||||||||||||||
2023 | 9,737 | 863 | ||||||||||||||
2024 | 9,470 | 265 | ||||||||||||||
Thereafter | 39,523 | 22 | ||||||||||||||
Total lease payments | 81,196 | 4,685 | ||||||||||||||
Less imputed interest (based on 3.5% weighted | (12,277 | ) | (247 | ) | ||||||||||||
Present value of lease liability | $ | 68,919 | $ | 4,438 | 9.0 | 3.1 |
Thirteen weeks ended | ||||||||
March 28, | March 30, | |||||||
2020 | 2019 | |||||||
(in thousands, except per share data) | ||||||||
Net income | $ | 18,234 | $ | 23,694 | ||||
Allocation of net income for basic: | ||||||||
Class A Common Stock | $ | 14,136 | $ | 17,525 | ||||
Class B Common Stock | 3,967 | 5,942 | ||||||
Unvested participating shares | 131 | 227 | ||||||
$ | 18,234 | $ | 23,694 | |||||
Weighted average number of shares for basic: | ||||||||
Class A Common Stock | 9,425 | 8,606 | ||||||
Class B Common Stock* | 2,645 | 2,918 | ||||||
Unvested participating shares | 87 | 111 | ||||||
12,157 | 11,635 | |||||||
Net income per share for basic: | ||||||||
Class A Common Stock | $ | 1.50 | $ | 2.04 | ||||
Class B Common Stock | $ | 1.50 | $ | 2.04 | ||||
Thirteen weeks ended | Thirty-nine weeks ended | |||||||||||||||
September 26, | September 28, | September 26, | September 28, | |||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
(in thousands, except per share data) | (in thousands, except per share data) | |||||||||||||||
Net income | $ | 80,768 | $ | 44,729 | $ | 159,143 | $ | 96,279 | ||||||||
Allocation of net income for basic: | ||||||||||||||||
Class A Common Stock | $ | 65,074 | $ | 33,776 | $ | 126,146 | $ | 71,761 | ||||||||
Class B Common Stock | 15,254 | 10,581 | 31,996 | 23,652 | ||||||||||||
Unvested participating shares | 440 | 372 | 1,001 | 866 | ||||||||||||
$ | 80,768 | $ | 44,729 | $ | 159,143 | $ | 96,279 | |||||||||
Weighted average number of shares for basic: | ||||||||||||||||
Class A Common Stock | 9,846 | 9,136 | 9,663 | 8,797 | ||||||||||||
Class B Common Stock* | 2,308 | 2,862 | 2,451 | 2,899 | ||||||||||||
Unvested participating shares | 67 | 101 | 77 | 106 | ||||||||||||
12,221 | 12,099 | 12,191 | 11,802 | |||||||||||||
Net income per share for basic: | ||||||||||||||||
Class A Common Stock | $ | 6.61 | $ | 3.70 | $ | 13.05 | $ | 8.16 | ||||||||
Class B Common Stock | $ | 6.61 | $ | 3.70 | $ | 13.05 | $ | 8.16 | ||||||||
* | Change in Class B Common Stock resulted from the conversion of |
Thirteen weeks ended | ||||||||||||||||||||||||
March 28, 2020 | March 30, 2019 | |||||||||||||||||||||||
Earnings to Common Shareholders | Common Shares | EPS | Earnings to Common Shareholders | Common Shares | EPS | |||||||||||||||||||
(in thousands, except per share data) | ||||||||||||||||||||||||
As reported - basic | $ | 14,136 | 9,425 | $ | 1.50 | $ | 17,525 | 8,606 | $ | 2.04 | ||||||||||||||
Add: effect of dilutive potential common shares | ||||||||||||||||||||||||
Share-based awards | — | 116 | — | 112 | ||||||||||||||||||||
Class B Common Stock | 3,967 | 2,645 | 5,942 | 2,918 | ||||||||||||||||||||
Net effect of unvested participating shares | 1 | — | 2 | — | ||||||||||||||||||||
Net income per common share - diluted | $ | 18,104 | 12,186 | $ | 1.49 | $ | 23,469 | 11,636 | $ | 2.02 | ||||||||||||||
Thirteen weeks ended | ||||||||||||||||||||||||
September 26, 2020 | September 28, 2019 | |||||||||||||||||||||||
Earnings to Common Shareholders | Common Shares | EPS | Earnings to Common Shareholders | Common Shares | EPS | |||||||||||||||||||
(in thousands, except per share data) | ||||||||||||||||||||||||
As reported—basic | $ | 65,074 | 9,846 | $ | 6.61 | $ | 33,776 | 9,136 | $ | 3.70 | ||||||||||||||
Add: effect of dilutive potential common shares | ||||||||||||||||||||||||
Share-based awards | — | 179 | — | 152 | ||||||||||||||||||||
Class B Common Stock | 15,254 | 2,308 | 10,581 | 2,862 | ||||||||||||||||||||
Net effect of unvested participating shares | 6 | — | 4 | — | ||||||||||||||||||||
Net income per common share—diluted | $ | 80,334 | 12,333 | $ | 6.51 | $ | 44,361 | 12,150 | $ | 3.65 | ||||||||||||||
Thirty-nine weeks ended | ||||||||||||||||||||||||
September 26, 2020 | September 28, 2019 | |||||||||||||||||||||||
Earnings to Common Shareholders | Common Shares | EPS | Earnings to Common Shareholders | Common Shares | EPS | |||||||||||||||||||
(in thousands, except per share data) | ||||||||||||||||||||||||
As reported—basic | $ | 126,146 | 9,663 | $ | 13.05 | $ | 71,761 | 8,797 | $ | 8.16 | ||||||||||||||
Add: effect of dilutive potential common shares | ||||||||||||||||||||||||
Share-based awards | — | 145 | — | 127 | ||||||||||||||||||||
Class B Common Stock | 31,996 | 2,451 | 23,652 | 2,899 | ||||||||||||||||||||
Net effect of unvested participating shares | 12 | — | 8 | — | ||||||||||||||||||||
Net income per common share—diluted | $ | 158,154 | 12,259 | $ | 12.90 | $ | 95,421 | 11,823 | $ | 8.07 | ||||||||||||||
Commitments | ||||
(in thousands) | ||||
Ingredients | $ | 130,933 | ||
Equipment and machinery | 73,774 | |||
Brand support | 62,496 | |||
Other | 12,378 | |||
Total contractual obligations | $ | 279,581 | ||
L. Income Taxes |
Thirteen weeks ended | ||||||||
March 28, | March 30, | |||||||
2020 | 2019 | |||||||
(in thousands) | ||||||||
Summary of income tax provision | ||||||||
Tax provision based on net income | $ | 5,005 | $ | 7,909 | ||||
Benefit of ASU 2016-09 | (2,004 | ) | (1,775 | ) | ||||
Total income tax provision | $ | 3,001 | $ | 6,134 | ||||
Thirteen weeks ended | ||||||||
September 26, | September 28, | |||||||
2020 | 2019 | |||||||
(in thousands) | ||||||||
Summary of income tax provision | ||||||||
Tax provision based on net income | $ | 26,325 | $ | 16,047 | ||||
Benefit of ASU 2016-09 | (5,142 | ) | (1,842 | ) | ||||
Total income tax provision | $ | 21,183 | $ | 14,205 | ||||
Thirty-nine weeks ended | ||||||||
September 26, | September 28, | |||||||
2020 | 2019 | |||||||
(in thousands) | ||||||||
Summary of income tax provision | ||||||||
Tax provision based on net income | $ | 52,029 | $ | 34,455 | ||||
Benefit of ASU 2016-09 | (9,481 | ) | (3,870 | ) | ||||
Total income tax provision | $ | 42,548 | $ | 30,585 | ||||
• | 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. |
Shares | Weighted- A verageExercise | Weighted-Average Contractual | Aggregate Value (in thousands) | |||||||||||||
Outstanding at December 28, 2019 | 315,678 | $ | 186.53 | |||||||||||||
Granted | 22,970 | 370.43 | ||||||||||||||
Forfeited | (2,595 | ) | 241.84 | |||||||||||||
Expired | — | — | ||||||||||||||
Exercised | (23,233 | ) | 103.99 | |||||||||||||
Outstanding at March 28, 2020 | 312,820 | $ | 205.70 | 6.08 | $ | 47,034 | ||||||||||
Exercisable at March 28, 2020 | 105,636 | $ | 164.80 | 4.63 | $ | 20,091 | ||||||||||
Vested and expected to vest at March 28, 2020 | 285,886 | $ | 203.74 | 6.01 | $ | 43,532 | ||||||||||
Shares | Weighted Exercise Price | Weighted Contractual Term in Years | Aggregate Intrinsic (in thousands) | |||||||||||||
Outstanding at December 28, 2019 | 315,678 | $ | 186.53 | |||||||||||||
Granted | 25,870 | 383.22 | ||||||||||||||
Forfeited | (2,595 | ) | 241.84 | |||||||||||||
Expired | 0 | 0 | ||||||||||||||
Exercised | (91,606 | ) | 137.55 | |||||||||||||
Outstanding at September 26, 2020 | 247,347 | $ | 224.66 | 6.08 | $ | 161,050 | ||||||||||
Exercisable at September 26, 2020 | 59,138 | $ | 196.52 | 5.05 | $ | 40,170 | ||||||||||
Vested and expected to vest at September 26, 2020 | 223,104 | $ | 223.63 | 6.04 | $ | 145,495 | ||||||||||
|
Number of Shares | Weighted Average | |||||||
Non-vested at December 28, 2019 | 122,142 | $ | 213.52 | |||||
Granted | 42,455 | 349.95 | ||||||
Vested | (45,860 | ) | 214.23 | |||||
Forfeited | (4,488 | ) | 236.78 | |||||
Non-vested at September 26, 2020 | 114,249 | $ | 263.02 | |||||
Number | Weighted Fair | |||||||
Non-vested at December 28, 2019 | 122,142 | $ | 213.52 | |||||
Granted | 40,316 | 318.07 | ||||||
Vested | (19,589 | ) | 187.26 | |||||
Forfeited | (2,845 | ) | 245.17 | |||||
Non-vested at March 28, 2020 | 140,024 | $ | 243.80 | |||||
Thirteen weeks ended | Thirty-nine weeks ended | |||||||||||||||
September 26, 2020 | September 28, 2019 | September 26, 2020 | September 28, 2019 | |||||||||||||
(in thousands) | (in thousands) | |||||||||||||||
Amounts included in advertising, promotional and selling expenses | $ | 1,203 | $ | 1,180 | $ | 3,054 | $ | 2,778 | ||||||||
Amounts included in general and administrative expenses | 2,429 | 2,053 | 7,681 | 6,265 | ||||||||||||
Total stock-based compensation expense | $ | 3,632 | $ | 3,233 | $ | 10,735 | $ | 9,043 | ||||||||
Item 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
Thirteen Weeks Ended (in thousands, except per barrel) | ||||||||||||||||||||||||||||||||||||
March 28, 2020 | March 30, 2019 | Amount change | % change | Per barrel change | ||||||||||||||||||||||||||||||||
Barrels sold | 1,423 | 1,076 | 347 | 32.2 | % | |||||||||||||||||||||||||||||||
Per barrel | % of net revenue | Per barrel | % of net revenue | |||||||||||||||||||||||||||||||||
Net revenue | $ | 330,565 | $ | 232.24 | 100.0 | % | $ | 251,651 | $ | 233.77 | 100.0 | % | $ | 78,914 | 31.4 | % | $ | (1.53 | ) | |||||||||||||||||
Cost of goods | 182,592 | 128.28 | 55.2 | % | 127,111 | 118.08 | 50.5 | % | 55,481 | 43.6 | % | 10.20 | ||||||||||||||||||||||||
Gross profit | 147,973 | 103.96 | 44.8 | % | 124,540 | 115.69 | 49.5 | % | 23,433 | 18.8 | % | (11.73 | ) | |||||||||||||||||||||||
Advertising, promotional and selling expenses | 97,891 | 68.78 | 29.6 | % | 71,723 | 66.63 | 28.5 | % | 26,168 | 36.5 | % | 2.15 | ||||||||||||||||||||||||
General and administrative expenses | 27,029 | 18.99 | 8.2 | % | 23,374 | 21.71 | 9.3 | % | 3,655 | 15.6 | % | (2.72 | ) | |||||||||||||||||||||||
Impairment of assets | 1,521 | 1.07 | 0.5 | % | — | — | 0.0 | % | 1,521 | 0.0 | % | 1.07 | ||||||||||||||||||||||||
Total operating expenses | 126,441 | 88.83 | 38.2 | % | 95,097 | 88.34 | 37.8 | % | 31,344 | 33.0 | % | 0.49 | ||||||||||||||||||||||||
Operating income | 21,532 | 15.13 | 6.5 | % | 29,443 | 27.35 | 11.7 | % | (7,911 | ) | -26.9 | % | (12.22 | ) | ||||||||||||||||||||||
Other (expense) income, net | (297 | ) | (0.21 | ) | -0.1 | % | 385 | 0.36 | 0.2 | % | (682 | ) | -177.1 | % | (0.57 | ) | ||||||||||||||||||||
Income before income tax expense | 21,235 | 14.92 | 6.4 | % | 29,828 | 27.71 | 11.9 | % | (8,593 | ) | -28.8 | % | (12.79 | ) | ||||||||||||||||||||||
Income tax expense | 3,001 | 2.11 | 0.9 | % | 6,134 | 5.70 | 2.4 | % | (3,133 | ) | -51.1 | % | (3.59 | ) | ||||||||||||||||||||||
Net income | $ | 18,234 | $ | 12.81 | 5.5 | % | $ | 23,694 | $ | 22.01 | 9.4 | % | $ | (5,460 | ) | -23.0 | % | $ | (9.20 | ) | ||||||||||||||||
Thirteen Weeks Ended (in thousands) | ||||||||||||||||||||||||||||||||||||
September 26, 2020 | September 28, 2019 | Amount change | % change | Per barrel change | ||||||||||||||||||||||||||||||||
Barrels sold | 2,080 | 1,594 | 486 | 30.5 | % | |||||||||||||||||||||||||||||||
Per barrel | % of net revenue | Per barrel | % of net revenue | |||||||||||||||||||||||||||||||||
Net revenue | $ | 492,792 | $ | 236.90 | 100.0 | % | $ | 378,466 | $ | 237.46 | 100.0 | % | $ | 114,326 | 30.2 | % | $ | (0.56 | ) | |||||||||||||||||
Cost of goods | 252,207 | 121.24 | 51.2 | % | 190,631 | 119.61 | 50.4 | % | 61,576 | 32.3 | % | 1.63 | ||||||||||||||||||||||||
Gross profit | 240,585 | 115.65 | 48.8 | % | 187,835 | 117.85 | 49.6 | % | 52,750 | 28.1 | % | (2.20 | ) | |||||||||||||||||||||||
Advertising, promotional and selling expenses | 108,023 | 51.93 | 21.9 | % | 96,570 | 60.59 | 25.5 | % | 11,453 | 11.9 | % | (8.66 | ) | |||||||||||||||||||||||
General and administrative expenses | 30,340 | 14.59 | 6.2 | % | 31,429 | 19.72 | 8.3 | % | (1,089 | ) | -3.5 | % | (5.13 | ) | ||||||||||||||||||||||
Impairment of assets | 441 | 0.21 | 0.1 | % | — | — | 0.0 | % | 441 | 0.0 | % | 0.21 | ||||||||||||||||||||||||
Total operating expenses | 138,804 | 66.73 | 28.2 | % | 127,999 | 80.31 | 33.8 | % | 10,805 | 8.4 | % | (13.58 | ) | |||||||||||||||||||||||
Operating income | 101,781 | 48.93 | 20.7 | % | 59,836 | 37.54 | 15.8 | % | 41,945 | 70.1 | % | 11.39 | ||||||||||||||||||||||||
Other (expense) income, net | 170 | 0.08 | 0.0 | % | (902 | ) | (0.57 | ) | -0.2 | % | 1,072 | -118.8 | % | 0.65 | ||||||||||||||||||||||
Income before income tax expense | 101,951 | 49.01 | 20.7 | % | 58,934 | 36.98 | 15.6 | % | 43,017 | 73.0 | % | 12.03 | ||||||||||||||||||||||||
Income tax expense | 21,183 | 10.18 | 4.3 | % | 14,205 | 8.91 | 3.8 | % | 6,978 | 49.1 | % | 1.27 | ||||||||||||||||||||||||
Net income | $ | 80,768 | $ | 38.83 | 16.4 | % | $ | 44,729 | $ | 28.06 | 11.8 | % | $ | 36,039 | 80.6 | % | $ | 10.77 | ||||||||||||||||||
Thirty-nine Weeks Ended (in thousands) | ||||||||||||||||||||||||||||||||||||
September 26, 2020 | September 28, 2019 | Amount change | % change | Per barrel change | ||||||||||||||||||||||||||||||||
Barrels sold | 5,425 | 4,045 | 1,380 | 34.1 | % | |||||||||||||||||||||||||||||||
Per barrel | % of net revenue | Per barrel | % of net revenue | |||||||||||||||||||||||||||||||||
Net revenue | $ | 1,275,495 | $ | 235.12 | 100.0 | % | $ | 948,524 | $ | 234.51 | 100.0 | % | $ | 326,971 | 34.5 | % | $ | 0.61 | ||||||||||||||||||
Cost of goods | 677,313 | 124.86 | 53.1 | % | 477,147 | 117.97 | 50.3 | % | 200,166 | 42.0 | % | 6.89 | ||||||||||||||||||||||||
Gross profit | 598,182 | 110.27 | 46.9 | % | 471,377 | 116.54 | 49.7 | % | 126,805 | 26.9 | % | (6.27 | ) | |||||||||||||||||||||||
Advertising, promotional and selling expenses | 306,250 | 56.45 | 24.0 | % | 262,372 | 64.87 | 27.7 | % | 43,878 | 16.7 | % | (8.42 | ) | |||||||||||||||||||||||
General and administrative expenses | 87,054 | 16.05 | 6.8 | % | 81,552 | 20.16 | 8.6 | % | 5,502 | 6.7 | % | (4.11 | ) | |||||||||||||||||||||||
Impairment of assets | 2,796 | 0.52 | 0.2 | % | 243 | 0.06 | 0.0 | % | 2,553 | 1050.6 | % | 0.46 | ||||||||||||||||||||||||
Total operating expenses | 396,100 | 73.02 | 31.1 | % | 344,167 | 85.09 | 36.3 | % | 51,933 | 15.1 | % | (12.07 | ) | |||||||||||||||||||||||
Operating income | 202,082 | 37.25 | 15.8 | % | 127,210 | 31.45 | 13.4 | % | 74,872 | 58.9 | % | 5.80 | ||||||||||||||||||||||||
Other (expense) income, net | (391 | ) | (0.07 | ) | 0.0 | % | (346 | ) | (0.09 | ) | 0.0 | % | (45 | ) | 13.0 | % | 0.02 | |||||||||||||||||||
Income before income tax expense | 201,691 | 37.18 | 15.8 | % | 126,864 | 31.37 | 13.4 | % | 74,827 | 59.0 | % | 5.81 | ||||||||||||||||||||||||
Income tax expense | 42,548 | 7.84 | 3.3 | % | 30,585 | 7.56 | 3.2 | % | 11,963 | 39.1 | % | 0.28 | ||||||||||||||||||||||||
Net income | $ | 159,143 | $ | 29.34 | 12.5 | % | $ | 96,279 | $ | 23.80 | 10.2 | % | $ | 62,864 | 65.3 | % | $ | 5.54 | ||||||||||||||||||
Off-balance Sheet Arrangements |
Item 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
Item 4. |
PART II. |
Item 1. | LEGAL PROCEEDINGS |
Item 1A. |
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 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 | ||||||||||||
Total | 225 | $ | 125.46 | — | 90,335 | |||||||||||
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 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 | ||||||||||||
June 28, 2020 to August 1, 2020 | — | — | — | 90,335 | ||||||||||||
August 2, 2020 to August 29, 2020 | 131 | 160.57 | — | 90,335 | ||||||||||||
August 30, 2020 to September 26, 2020 | 26 | 145.14 | — | 90,335 | ||||||||||||
Total | 472 | $ | 135.23 | — | 90,335 | |||||||||||
Item 3. |
Item 4. |
Item 5. |
Item 6. |
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 (incorporated by reference to Exhibit 10.6 to the Company’s Form 10-Q for the period ended June 27, 2020, filed on July 23, 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 |
* | Filed with this report |
** | Designates management contract or compensatory plan or arrangement |
THE BOSTON BEER COMPANY, INC. | |||||||
(Registrant) | |||||||
Date: | /s/ David A. Burwick | ||||||
David A. Burwick | |||||||
President and Chief Executive Officer | |||||||
(principal executive officer) |
Date: | /s/ Frank H. Smalla | |||||
Frank H. Smalla | ||||||
Chief Financial Officer | ||||||
(principal financial officer) |