Home
Menu
Top industry news
Brewery news
Malt news
Barley news
Hops news
More news
All news
Search news archive
Publish your news
News calendar
News by countries


#
E-Malt.com News article: USA: Craft Brew Alliance, Inc. reports third quarter 2012 results
Brewery news

Craft Brew Alliance, Inc. ("CBA") announced on November, 7 third quarter 2012 results.

Earnings per share ("EPS") on a fully diluted basis for the year-to-date period were $0.12 as compared with $0.50 for the same period last year, which included $0.34 from the FSB sale.

"We are pleased with the progress of our portfolio strategy and are looking forward to a strong 4th quarter," said Terry Michaelson, CBA's CEO. "While we had anticipated better financial performance during the third quarter, we feel strongly about our unique and advantaged strategy in the craft beer segment. Heading into the remainder of 2012, we are very encouraged by the current industry off-premise data which shows our Kona and Redhook brand families to be outpacing a number of our large craft beer competitors."

Net sales for the nine months ended September 30, 2012 were $127.4 mln, an increase of $13.1 mln, or 11%, from net sales of $114.3 mln for the same period of 2011. A combination of factors drove the increase, including increased shipments, a decrease in master distributor fees, price increases for the beers sold to wholesalers and an increase in revenues earned from the pubs.

Net sales for the quarter ended September 30, 2012 were $44.6 mln, an increase of $4.1 mln, or 10%, from net sales of $40.5 mln for the same quarter last year, primarily as a result of price increases for company’s beers sold to wholesalers and an increase in revenues earned from the pubs. Net income for the quarter ended September 30, 2012 was $0.9 mln, or $0.05 per diluted share. This was a decrease of $0.3 mln from company’s net income of $1.2 mln, or $0.07 per diluted share, for the same quarter in 2011, primarily as a result of additional commercial operation spending targeted towards accelerating existing brands, introducing new brands, and continuing the build-out of the national sales team.

Total shipments for the nine-month period ended September 30, 2012 grew 6% to 549,700 barrels, an increase of 29,200 barrels, from 520,500 barrels for the same period of 2011, primarily reflecting the increase in shipments to wholesalers. Total shipments for the quarter also grew, up 7,800 barrels, or 4%, to 189,300 barrels from last year, also as a result of increased shipments to wholesalers. Partially offsetting the increase in the third quarter was a decline in contract brewing shipments as a result of terminating the contract brewing agreement with FSB.

Gross margin as a percentage of net sales declined 62 basis points for the nine months ended September 30, 2012, reflecting increased distribution and grain costs in the first nine months of 2012 as compared with the same period of 2011. These unfavorable factors were partially offset by decreased distributor fees and increased selling prices for company’s beers.

SG&A expense of $34.5 mln for the nine-month period ended September 30, 2012 increased $4.0 mln, or 13%, from $30.5 mln for the same period of 2011. As discussed above, this increase reflects the continuing investment in commercial operation initiatives to remain a leader in the intensely competitive craft beer segment. The increase in SG&A was partially offset by lower packaging design and development costs.

"Our year-to-date sales growth of 11% along with strong cash flows demonstrate the fundamental strength of our business and strategy," said Mark Moreland, CBA's CFO. "We have revised our sales, gross margin and EPS guidance for 2012 as we were anticipating both faster traction from key in-market initiatives which have begun to generate results in the fourth quarter and higher second half gross margin. While not satisfied with our projected full year performance, we are confident that our investments in our brands, sales and operating infrastructure will drive significant long-term top-line growth and improved profitability."

Cash and cash equivalent balance was $3.5 mln, an increase of $2.9 mln year-to-date. Cash provided by operating activities was $10.0 mln for the nine months ended September 30, 2012 compared with $5.0 mln for the same period of 2011. The $5.0 mln increase was primarily due to improved working capital. Capital expenditures for the nine-month periods ended September 30, 2012 and 2011 were $7.8 mln and $6.6 mln, respectively. Capital expenditures in both periods included projects designed to increase capacity and improve efficiency.

CBA is an independent, publicly traded craft brewing company that was formed with the merger of leading Pacific Northwest craft brewers - Widmer Brothers Brewing and Redhook Ale Brewery - in 2008. With an eye toward preserving and growing one-of-a-kind craft beers and brands, CBA was joined by Kona Brewing Company in 2010. Craft Brew Alliance launched Omission beer in 2012.


09 November, 2012

   
| Mail your friend | Printer friendly |
Copyright © E-Malt s.a., 2001-2008