Craft Brewers Alliance, Inc. (“CBA”) (Nasdaq: HOOK), an independent craft brewing company, reported net sales of $40.5 million and net income of $1.2 million for the third quarter ended September 30, 2011 as compared with net sales of $36.7 million and net income of $376,000 for the same quarter a year ago. We reported $0.07 earnings per share on a fully diluted basis for the third quarter of 2011 as compared with $0.02 per share for the same quarter one year ago.
Significant financial highlights for the quarter ended September 30, 2011 include:
- Net sales increased $3.8 million, or 10 percent, to $40.5 million compared with the third quarter of 2010
- Depletion growth for the third quarter of 2011 was nine percent
- Gross profit percentage increased 790 basis points
- Sales and marketing expense increased $2.3 million versus last year reflecting investments towards critical growth initiatives.
- Capital expenditures were $2.9 million as we continued to make strategic investments in systems and infrastructure
“Our primary focus remains on being true to our customers, by delivering the most diverse portfolio of high quality beers and brands in the industry, that provide unique beer experiences for all occasions,” said Terry Michaelson, CBA’s CEO. “Revenue, depletion and profit growth remain strong and demonstrate the continued success of our strategic marketing and sales initiatives. While we are pleased with the year-to-date growth, we believe there are further underlying strengths in our brands and strategy that have yet to be realized. In this ever-evolving market of craft beers, we have positioned ourselves well to generate ongoing sales and profit growth over the long term.”
Operating ResultsNet sales for the third quarter ended September 30, 2011 were $40.5 million, an increase of $3.8 million, or 10 percent, from net sales of $36.7 million for the same quarter in 2010. The increase resulted from a combination of factors, including increased shipments to wholesalers, price increases for our beers sold to wholesalers, a decrease in master distributor fees and an increase in revenues earned from our restaurants and pubs following the merger with Kona Brewing Co., Inc. (“KBC Merger”).