Craft Brew Alliance, Inc. (BREW) has reported 93.96 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $0.08 million in the quarter, compared with $1.26 million for the same period last year.
Revenue during the quarter dropped 6.98 percent to $45.80 million from $49.24 million in the previous year period. Gross margin for the quarter contracted 217 basis points over the previous year period to 29.28 percent. Total expenses were 98.83 percent of quarterly revenues, up from 95.40 percent for the same period last year. That has resulted in a contraction of 344 basis points in operating margin to 1.17 percent.
Operating income for the quarter was $0.53 million, compared with $2.27 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $3.88 million compared with $5.08 million in the prior year period. At the same time, adjusted EBITDA margin contracted 185 basis points in the quarter to 8.46 percent from 10.31 percent in the last year period.
"While our fourth quarter performance was disappointing, it does not diminish the milestones achieved in 2016 - from the series of agreements with AB, to the acceleration of our Kona Plus portfolio strategy, to the new thinking on our brewing footprint," said Andy Thomas, chief executive officer, CBA.
Operating cash flow drops significantly
Craft Brew Alliance, Inc. has generated cash of $7.44 million from operating activities during the year, down 35.62 percent or $4.12 million, when compared with the last year.
The company has spent $16.57 million cash to meet investing activities during the year as against cash outgo of $16.17 million in the last year. It has incurred net capital expenditure of $15.65 million on net basis during the year, up 2.66 percent or $0.41 million from year ago.
Cash flow from financing activities was $8.66 million for the year, up 90.64 percent or $4.12 million, when compared with the last year.
Cash and cash equivalents stood at $0.44 million as on Dec. 31, 2016, down 51.48 percent or $0.47 million from $0.91 million on Dec. 31, 2015.
Working capital increases sharply
Craft Brew Alliance, Inc. has recorded an increase in the working capital over the last year. It stood at $15.23 million as at Dec. 31, 2016, up 40.49 percent or $4.39 million from $10.84 million on Dec. 31, 2015. Current ratio was at 1.46 as on Dec. 31, 2016, up from 1.34 on Dec. 31, 2015.
Debt increases substantially
Craft Brew Alliance, Inc. has witnessed an increase in total debt over the last one year. It stood at $29.26 million as on Dec. 31, 2016, up 50.08 percent or $9.76 million from $19.50 million on Dec. 31, 2015. Total debt was 14.45 percent of total assets as on Dec. 31, 2016, compared with 10.24 percent on Dec. 31, 2015. Debt to equity ratio was at 0.24 as on Dec. 31, 2016, up from 0.16 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 2.83 for the quarter from 14.81 for the same period last year.
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