On March 13, Boston Beer Co. (NYSE:SAM) released fourth-quarter earnings for the period ended Dec. 30.

  • Take a sip of this pint of earnings for the full fizz on Boston Beer.
  • Net revenue rose by 13.3%, primarily driven by a 12% increase in shipment volume and a 1% increase in net revenue per barrel.
  • Gross margin for the quarter fell by 170 bps, thanks to an increase in supply chain costs, higher package material costs, and a shift in product mix.
  • For the first quarter of fiscal 2007, the company expects shipments and orders in-hand to increase by 23%.
  • Boston Beer is currently rated a three-star stock by the Motley Fool CAPS community database. This isn't quite up to the standards set by four-star rated Anheuser-Busch (NYSE:BUD), but still better than the two-star Molson Coors (NYSE:TAP).

(Figures in thousands, except per-share data)

Income Statement Highlights

Q4 2006

Q4 2005

Change

Sales

$73,343

$64,752

13.3%

Net Profit

$2,477

$2,266

9.3%

EPS

$0.17

$0.16

6.3%

Diluted Shares

14,520

14,328

1.3%



Get back to basics with the income statement.

Margin Checkup

Q4 2006

Q4 2005

Change*

Gross Margin

56.0%

57.7%

(1.7)

Operating Margin

6.9%

5.0%

1.9

Net Margin

3.4%

3.5%

(0.1)

*Expressed in percentage points.

Margins are the earnings engine.

Balance Sheet Highlights

Assets

Q4 2006

Q4 2005

Change

Cash + ST Invest.

$82,370

$63,941

28.8%

Accounts Rec.

$17,770

$9,534

86.4%

Inventory

$17,034

$13,649

24.8%



Liabilities

Q4 2006

Q4 2005

Change

Accounts Payable

$17,942

$11,378

57.7%



The balance sheet reflects the company's health.

Cash Flow Highlights

2006

2005

Change

Cash From Ops.

$28,977

$28,841

0.5%

Capital Expenditures

$9,056

$13,973

(35.2%)

Free Cash Flow

$19,921

$14,868

34.0%



Free cash flow is a Fool's best friend.

Related Foolishness:

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