Craft Brew Alliance , Inc. (“CBA”) (NASDAQ:HOOK), an independent craft brewing company, reported net sales of $149.2 million and net income of $9.7 million for the year ended December 31, 2011 as compared with net sales of $131.7 million and net income of $1.7 million a year ago. Adjusted net income for 2011 was $3.2 million, excluding the one-time gain on sale of Fulton Street Brewery, LLC (“FSB”), of $6.5 million, net of tax. We reported $0.51 earnings per share on a fully diluted basis for the year as compared with $0.10 per share last year. Adjusted earnings per share for 2011 was $0.17, excluding the one-time gain on sale of FSB of $0.34 per share.
Significant financial highlights for the year ended December 31, 2011 include:
- Net sales increased $17.5 million, or 13 percent, to $149.2 million compared with 2010
- Depletion growth and non-contract shipment growth were each 7 percent for the full year
- Gross profit percentage increased 470 basis points
- Sales and marketing expense increased $7.6 million versus last year reflecting investments towards critical growth initiatives
- Capital expenditures were $8.5 million as we continued to make strategic investments in systems and infrastructure
“We are pleased to see our 2011 top and bottom line results reflect improvements in our business driven by our significant investments in our innovative portfolio of beers and our marketing and sales capabilities. Our primary focus remains to be 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. “While the full year results indicate that our strategy has gained traction with consumers, we believe that there are further underlying strengths in our brands and strategy that have yet to be realized and will drive long-term profitable growth.”