The Boston Beer Company Inc. (SAM, Financial) filed Quarterly Report for the period ended 2010-09-25.
The Boston Beer Company Inc. has a market cap of $699.5 million; its shares were traded at around $73.18 with a P/E ratio of 25.7 and P/S ratio of 1.5. The Boston Beer Company Inc. had an annual average earning growth of 18.3% over the past 10 years. GuruFocus rated The Boston Beer Company Inc. the business predictability rank of 5-star.SAM is in the portfolios of Mario Gabelli of GAMCO Investors, Jim Simons of Renaissance Technologies LLC, Jeremy Grantham of GMO LLC.
Advertising, promotional and selling. Advertising, promotional and selling expenses increased by $1.9 million, or 5.8%, to $34.6 million for the three months ended September 25, 2010, as compared to $32.7 million for the three months ended September 26, 2009. The increase primarily resulted from increased investments in point of sale materials and local marketing, as well as higher costs for additional sales personnel. Such expenses for core brands were 27.9% of net revenue, or $56.46 per barrel, for the three months ended September 25, 2010, as compared to 30.3% of net revenue, or $60.85 per barrel, for the three months ended September 26, 2009. The decreases in advertising, promotional and selling expenses per barrel and as a percentage of net revenue are due to core shipment volume increasing at a higher rate than increases in advertising, promotional and selling expenses. The Company will invest in advertising and promotional campaigns that it believes are effective, but there is no guarantee that such investment will generate sales growth.
Advertising, promotional and selling. Advertising, promotional and selling expenses increased by $9.0 million, or 10.0%, to $98.8 million for the nine months ended September 25, 2010, as compared to $89.8 million for the nine months ended September 26, 2009. The increase primarily resulted from increased investments in local marketing and point of sale materials, as well as higher costs for additional sales personnel. Advertising, promotional and selling expenses for core brands were 28.5% of net revenue, or $58.35 per barrel, for the nine months ended September 25, 2010, as compared to 29.8% of net revenue, or $60.14 per barrel, for the same period last year. The decreases in advertising, promotional and selling expenses per barrel and as a percentage of net revenue are due to core shipment volume increasing at a higher rate than increases in advertising, promotional and selling expenses.
Cash flows provided by operating activities were $53.5 million for the nine months ended September 25, 2010, compared to $48.5 million for the same period in the prior year. Operating cash flows were positively impacted by changes in working capital, primarily due to increases in accrued expenses of $12.4 million, caused by increased income taxes due to higher income in the current year, partially offset by a $8.4 million increase in accounts receivable, caused by increased shipments during the second half of the month of September compared to prior periods.
On July 28, 2010, the Board of Directors approved an increase of $25.0 million to the previously approved $165.0 million share buyback expenditure limit, for a new limit of $190.0 million. During the nine months ended September 25, 2010, the Company repurchased approximately 869,800 shares of its Class A Common Stock for a total cost of $51.9 million. On October 28, 2010, the Board of Directors approved an additional increase of $35.0 million to the previously approved $190.0 million share buyback expenditure limit, for a new limit of $225.0 million. From September 26, 2010 through November 2, 2010, the Company repurchased an additional 215,880 shares of its Class A Common Stock for a total cost of $14.9 million. Through November 2, 2010, the Company has repurchased a cumulative total of approximately 9.8 million shares of its Class A Common Stock for an aggregate purchase price of $187.9 million. The Company has approximately $37.1 million remaining on the $225.0 million share buyback expenditure limit set by the Board of Directors.
On July 28, 2010, the Board of Directors approved an increase of $25.0 million to the previously approved $165.0 million share buyback expenditure limit, for a new limit of $190.0 million. On October 28, 2010, the Board of Directors approved an additional increase of $35.0 million to the previously approved $190.0 million share buyback expenditure limit, for a new limit of $225.0 million. As of November 2, 2010, the Company has repurchased a cumulative total of approximately 9.8 million shares of its Class A Common Stock for an aggregate purchase price of $187.9 million and had $37.1 million remaining on the $225.0 million share buyback expenditure limit.
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The Boston Beer Company Inc. has a market cap of $699.5 million; its shares were traded at around $73.18 with a P/E ratio of 25.7 and P/S ratio of 1.5. The Boston Beer Company Inc. had an annual average earning growth of 18.3% over the past 10 years. GuruFocus rated The Boston Beer Company Inc. the business predictability rank of 5-star.SAM is in the portfolios of Mario Gabelli of GAMCO Investors, Jim Simons of Renaissance Technologies LLC, Jeremy Grantham of GMO LLC.
Highlight of Business Operations:
Gross profit. Gross profit increased to $113.30 per barrel for the three months ended September 25, 2010, as compared to $106.98 for the three months ended September 26, 2009. Gross profit for core products was $113.64 per barrel for the three months ended September 25, 2010, as compared to $108.14 per barrel for the three months ended September 26, 2009. Gross margin for core products was 56.1% for the three months ended September 25, 2010, as compared to 53.8% for the three months ended September 26, 2009. The increase in gross profit per core product barrel of $5.50 and gross margin of 2.3 percentage points is primarily due to decreases in cost of goods sold per barrel, combined with increases in the net selling price per barrel.Advertising, promotional and selling. Advertising, promotional and selling expenses increased by $1.9 million, or 5.8%, to $34.6 million for the three months ended September 25, 2010, as compared to $32.7 million for the three months ended September 26, 2009. The increase primarily resulted from increased investments in point of sale materials and local marketing, as well as higher costs for additional sales personnel. Such expenses for core brands were 27.9% of net revenue, or $56.46 per barrel, for the three months ended September 25, 2010, as compared to 30.3% of net revenue, or $60.85 per barrel, for the three months ended September 26, 2009. The decreases in advertising, promotional and selling expenses per barrel and as a percentage of net revenue are due to core shipment volume increasing at a higher rate than increases in advertising, promotional and selling expenses. The Company will invest in advertising and promotional campaigns that it believes are effective, but there is no guarantee that such investment will generate sales growth.
Advertising, promotional and selling. Advertising, promotional and selling expenses increased by $9.0 million, or 10.0%, to $98.8 million for the nine months ended September 25, 2010, as compared to $89.8 million for the nine months ended September 26, 2009. The increase primarily resulted from increased investments in local marketing and point of sale materials, as well as higher costs for additional sales personnel. Advertising, promotional and selling expenses for core brands were 28.5% of net revenue, or $58.35 per barrel, for the nine months ended September 25, 2010, as compared to 29.8% of net revenue, or $60.14 per barrel, for the same period last year. The decreases in advertising, promotional and selling expenses per barrel and as a percentage of net revenue are due to core shipment volume increasing at a higher rate than increases in advertising, promotional and selling expenses.
Cash flows provided by operating activities were $53.5 million for the nine months ended September 25, 2010, compared to $48.5 million for the same period in the prior year. Operating cash flows were positively impacted by changes in working capital, primarily due to increases in accrued expenses of $12.4 million, caused by increased income taxes due to higher income in the current year, partially offset by a $8.4 million increase in accounts receivable, caused by increased shipments during the second half of the month of September compared to prior periods.
On July 28, 2010, the Board of Directors approved an increase of $25.0 million to the previously approved $165.0 million share buyback expenditure limit, for a new limit of $190.0 million. During the nine months ended September 25, 2010, the Company repurchased approximately 869,800 shares of its Class A Common Stock for a total cost of $51.9 million. On October 28, 2010, the Board of Directors approved an additional increase of $35.0 million to the previously approved $190.0 million share buyback expenditure limit, for a new limit of $225.0 million. From September 26, 2010 through November 2, 2010, the Company repurchased an additional 215,880 shares of its Class A Common Stock for a total cost of $14.9 million. Through November 2, 2010, the Company has repurchased a cumulative total of approximately 9.8 million shares of its Class A Common Stock for an aggregate purchase price of $187.9 million. The Company has approximately $37.1 million remaining on the $225.0 million share buyback expenditure limit set by the Board of Directors.
On July 28, 2010, the Board of Directors approved an increase of $25.0 million to the previously approved $165.0 million share buyback expenditure limit, for a new limit of $190.0 million. On October 28, 2010, the Board of Directors approved an additional increase of $35.0 million to the previously approved $190.0 million share buyback expenditure limit, for a new limit of $225.0 million. As of November 2, 2010, the Company has repurchased a cumulative total of approximately 9.8 million shares of its Class A Common Stock for an aggregate purchase price of $187.9 million and had $37.1 million remaining on the $225.0 million share buyback expenditure limit.
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