Boston Beer(SAM) - 2025 Q1 - Quarterly Results

Financial Performance - Net revenue for the first quarter was $453.9 million, reflecting a 6.5% increase compared to the prior year [4]. - Gross margin improved to 48.3%, up 460 basis points from 43.7% in the first quarter of 2024 [6]. - Net income reached $24.4 million, a significant increase of $11.8 million or 93.8% year-over-year, with diluted earnings per share rising by 108% to $2.16 [4]. - Net income for the thirteen weeks ended March 29, 2025, was $24,412, compared to $12,597 for the same period in 2024, representing a year-over-year increase of 93.5% [22]. - The effective tax rate for the first quarter was 31.9%, down from 33.0% in the prior year [9]. Shareholder Returns - The company repurchased $61 million in shares year-to-date, with approximately $367 million remaining on the $1.6 billion share buyback authorization [10]. - The company repurchased and retired $49,394 of Class A common stock during the period, slightly down from $49,967 in the previous year [22]. Cash Flow and Investments - Net cash provided by operating activities was $1,939, a significant improvement from a net cash used of $4,884 in the prior year [22]. - Cash flows used in investing activities decreased to $9,879 from $35,714, indicating a reduction in capital expenditures [22]. - Cash and cash equivalents at the end of the period were $152,454, down from $205,444 at the end of the same period last year [22]. - The company reported a change in cash and cash equivalents of $(59,365), compared to $(93,047) in the previous year, reflecting better cash flow management [22]. Operational Efficiency - First quarter depletions decreased by 1% year-over-year, while shipment volume increased by 5.3% to approximately 1.7 million barrels [3]. - Advertising, promotional, and selling expenses increased by $17.3 million or 14.3% year-over-year, primarily due to higher media and local marketing investments [8]. - Accounts receivable increased by $26,402, compared to an increase of $6,304 in the prior year, indicating potential growth in sales [22]. - Inventories decreased to $26,827 from $29,342, suggesting improved inventory management [22]. - Depreciation and amortization expenses were $22,814, slightly lower than $23,404 in the previous year [22]. - Stock-based compensation expense was $5,870, down from $7,127 in the previous year, indicating cost control measures [22]. Future Projections - Full-year 2025 projections estimate a gross margin of 45% to 47% and GAAP EPS between $8.00 and $10.50 [14]. - The company anticipates an unfavorable cost impact from tariffs of approximately $20 to $30 million for the full year 2025 [12]. - The company expects shipment trends to exceed depletion trends in the second quarter, with a reversal anticipated in the second half of the year [14].