Boston Beer Moves Volume: Fool by Numbers

On Nov. 7, Boston Beer (NYSE: SAM) released third-quarter earnings for the period ended Sept. 24.

• Sales and earnings per share beat estimates for the quarter, but full-year estimates remain within the $1.16-$1.26 range.
• Gross margins declined 1.82% on packaging costs, but a 20% increase in barrels sold more than made up for the difference.
• The company continues to maintain a strong balance sheet, with the flexibility and cash to fund expansion.

(Figures in thousands, except per-share data)

Income Statement Highlights

	Avg. Est.	Q3 2006	Q3 2005	Change
Sales	$73,980	$75,867	$63,210	20%
Net Profit	--	$5,908	$4,187	41.1%
EPS	$0.33	$0.41	$0.29	41.4%
Diluted Shares	--	14,351	14,437	(0.6%)

Get back to basics with a look at the income statement.

Margin Checkup

	Q3 2006	Q3 2005	Change*
Gross Margin	57.30%	59.12%	(1.82)
Operating Margin	10.79%	9.81%	0.98
Net Margin	7.79%	6.62%	1.17

*Expressed in percentage points

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets	Q3 2006	Q3 2005	Change
Cash + ST Invest.	$75,525	$61,600	22.6%
Accounts Rec.	$18,887	$14,400	31.2%
Inventory	$15,768	$12,500	26.1%

Liabilities	Q3 2006	Q3 2005	Change
Accounts Payable	$14,117	$11,300	24.9%
Long-Term Debt	$0	$0	N/A

Learn the ways of the balance sheet.

Cash Flow Highlights

	YTD 2006	YTD 2005	Change
Cash From Ops.	$23,425	$21,350	9.7%
Capital Expenditures	$7,704	$10,950	(29.6%)
Free Cash Flow	$15,721	$10,400	51.2%

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Related Companies:

• Molson Coors Brewing (NYSE: TAP)
• Anheuser-Busch (NYSE: BUD)
• Diageo (NYSE: DEO)
• AmBev (NYSE: ABV)

Related Foolishness:

• Diageo Toasts 2007
• Bud's Frothy Results: Fool by Numbers

Diageo is a Motley Fool Income Investor pick, while Anheuser-Busch is an Inside Value recommendation.

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.

At the time of publication,Nathan Parmelee had no positions in any of the companies mentioned. Fool rules are here.