10-Q

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES AND EXCHANGE ACT OF 1934

For the quarterly period ended March 30, 2024


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES AND EXCHANGE ACT OF 1934

For the transition period from to

Commission file number: 1-14092

THE BOSTON BEER COMPANY, INC.

(Exact name of registrant as specified in its charter)


MASSACHUSETTS		04-3284048
(State or other jurisdiction of incorporation or organization)		(IRS Employer Identification No.)
One Design Center Place, Suite 850, Boston, Massachusetts		02210
(Address of principal executive offices)		(Zip Code)

(617) 368-5000

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act.


Title of each class	Trading Symbol(s)	Name of each exchange on which registered

Class A Common Stock $0.01 per value	SAM	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definition of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ____

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act.) Yes ☐ No ☒

Number of shares outstanding of each of the issuer’s classes of common stock, as of April 19, 2024:


Class A Common Stock, $.01 par value		9,885,922
Class B Common Stock, $.01 par value		2,068,000
(Title of each class)		(Number of shares)

Table of Contents

THE BOSTON BEER COMPANY, INC.

FORM 10-Q

March 30, 2024

TABLE OF CONTENTS


PART I.	FINANCIAL INFORMATION		PAGE

	Item 1.	Condensed Consolidated Financial Statements (Unaudited)	3
		Condensed Consolidated Balance Sheets as of March 30, 2024 and December 30, 2023	3
		Condensed Consolidated Statements of Comprehensive Operations for the thirteen weeks ended March 30, 2024 and April 1, 2023	4
		Condensed Consolidated Statements of Cash Flows for the thirteen weeks ended March 30, 2024 and April 1, 2023	5
		Condensed Consolidated Statements of Stockholders’ Equity for the thirteen weeks ended March 30, 2024 and April 1, 2023	6
		Notes to Condensed Consolidated Financial Statements	7
	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	16
	Item 3.	Quantitative and Qualitative Disclosures about Market Risk	19
	Item 4.	Controls and Procedures	19

PART II.	OTHER INFORMATION

	Item 1.	Legal Proceedings	20
	Item 1A.	Risk Factors	20
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	21
	Item 3.	Defaults Upon Senior Securities	21
	Item 4.	Mine Safety Disclosures	21
	Item 5.	Other Information	21
	Item 6.	Exhibits	22

SIGNATURES			23

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

Table of Contents

PART I. FINANCIAL INFORMATION

Item 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

THE BOSTON BEER COMPANY, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except per share data)

(unaudited)


	March 30, 2024			December 30, 2023
Assets
Current Assets:
Cash and cash equivalents	$	205,444		$	298,491
Accounts receivable		72,962			66,997
Inventories		146,783			115,773
Prepaid expenses and other current assets		27,489			20,538
Income tax receivable		244			1,711
Total current assets		452,922			503,510
Property, plant, and equipment, net		635,131			642,509
Operating right-of-use assets		33,644			35,559
Goodwill		112,529			112,529
Intangible assets, net		59,581			59,644
Third-party production prepayments		30,662			33,581
Note receivable		18,739			—
Other assets		40,980			42,661
Total assets	$	1,384,188		$	1,429,993
Liabilities and Stockholders' Equity
Current Liabilities:
Accounts payable	$	98,107		$	87,245
Accrued expenses and other current liabilities		104,960			126,930
Current operating lease liabilities		8,351			9,113
Total current liabilities		211,418			223,288
Deferred income taxes, net		85,710			85,721
Non-current operating lease liabilities		34,297			36,161
Other liabilities		6,035			6,894
Total liabilities		337,460			352,064
Commitments and Contingencies (See Note I)
Stockholders' Equity:
Class A Common Stock, $0.01 par value; 22,700,000 shares authorized; 9,908,668 and 10,033,303 issued and outstanding as of March 30, 2024 and December 30, 2023 respectively		99			100
Class B Common Stock, $0.01 par value; 4,200,000 shares authorized; 2,068,000 issued and outstanding at March 30, 2024 and December 30, 2023		21			21
Additional paid-in capital		662,942			656,297
Accumulated other comprehensive loss		(219	)		(57	)
Retained earnings		383,885			421,568
Total stockholders' equity		1,046,728			1,077,929
Total liabilities and stockholders' equity	$	1,384,188		$	1,429,993

The accompanying notes are an integral part of these condensed consolidated financial statements.

Table of Contents

THE BOSTON BEER COMPANY, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE OPERATIONS

(in thousands, except per share data)

(unaudited)


	Thirteen weeks ended
	March 30, 2024			April 1, 2023
Revenue	$	452,208		$	435,156
Less excise taxes		26,156			25,156
Net revenue		426,052			410,000
Cost of goods sold		239,704			254,338
Gross profit		186,348			155,662
Operating expenses:
Advertising, promotional, and selling expenses		120,275			125,428
General and administrative expenses		50,384			43,694
Impairment of brewery assets		335			484
Total operating expenses		170,994			169,606
Operating income (loss)		15,354			(13,944	)
Other income:
Interest income		3,493			1,644
Other expense		(38	)		(102	)
Total other income		3,455			1,542
Income (loss) before income tax provision (benefit)

SEC Form 10-Q filed by Boston Beer Company Inc.