The Boston Beer Company, Inc. (SAM) has reported a 37.55 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $22.17 million, or $1.75 a share in the quarter, compared with $16.12 million, or $1.21 a share for the same period last year.
Revenue during the quarter went up marginally by 1.97 percent to $219.37 million from $215.13 million in the previous year period. Gross margin for the quarter contracted 148 basis points over the previous year period to 49.08 percent. Total expenses were 84.35 percent of quarterly revenues, down from 87.76 percent for the same period last year. This has led to an improvement of 340 basis points in operating margin to 15.65 percent.
Operating income for the quarter was $34.32 million, compared with $26.34 million in the previous year period.
Martin Roper, the Company's president and chief executive officer stated, "Fourth quarter depletions trends were driven by a decline in Samuel Adams, largely due toincreased competition in the craft beer category, and by declines in Angry Orchard, mainly due to general weakness in the cider category. Partially offsetting these declines were the growth of Twisted Tea, which continues to grow distribution andpull, and the impact of the launch of Truly Spiked & Sparkling, which established itself as a leader in the emerging segment of hard sparkling water."
For financial year 2017, the company projects diluted earnings per share to be in the range of $4.20 to $6.20.
Operating cash flow declines
The Boston Beer Company, Inc. has generated cash of $154.19 million from operating activities during the year, down 8.59 percent or $14.49 million, when compared with the last year.
The company has spent $46.02 million cash to meet investing activities during the year as against cash outgo of $74.23 million in the last year.
The company has spent $111.33 million cash to carry out financing activities during the year as against cash outgo of $76.66 million in the last year period.
Cash and cash equivalents stood at $91.04 million as on Dec. 31, 2016, down 3.35 percent or $3.16 million from $94.19 million on Dec. 26, 2015.
Working capital declines
The Boston Beer Company, Inc. has witnessed a decline in the working capital over the last year. It stood at $99.72 million as at Dec. 31, 2016, down 11.32 percent or $12.72 million from $112.44 million on Dec. 26, 2015. Current ratio was at 1.98 as on Dec. 31, 2016, down from 2.01 on Dec. 26, 2015.
Cash conversion cycle (CCC) has decreased to 15 days for the quarter from 17 days for the last year period. Days sales outstanding went down to 9 days for the quarter compared with 11 days for the same period last year.
Days inventory outstanding has decreased to 23 days for the quarter compared with 24 days for the previous year period. At the same time, days payable outstanding was almost stable at 18 days for the quarter, when compared with the previous year period.
Debt comes down
The Boston Beer Company, Inc. has recorded a decline in total debt over the last one year. It stood at $0.47 million as on Dec. 31, 2016, down 10.96 percent or $0.06 million from $0.53 million on Dec. 26, 2015. Total debt was 0.08 percent of total assets as on Dec. 31, 2016, compared with 0.08 percent on Dec. 26, 2015.
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