BOSTON, Aug. 1, 2012 /PRNewswire/ -- The Boston Beer Company, Inc. (NYSE: SAM) reported second quarter 2012 net revenue of $147.5 million, an increase of $13.5 million or 10%, over the same period last year, mainly due to core shipment growth of 7%. Net income for the second quarter was $14.4 million, or $1.06 per diluted share, a decrease of $13.7 million, or $0.95 per diluted share, from the second quarter of 2011. This decrease was primarily due to the impact of the glass recall settlement in 2011 of $0.92 per diluted share.
Highlights of this release include: •Excluding the 2011 impact of the recall settlement and the estimated 2012 negative impact of the Freshest Beer Program on shipment volume, earnings per diluted share of $1.19 for the second quarter, an increase of $0.10 or 9% and earnings per diluted share of $1.83 for the first six months of the year, an increase of $0.47 or 35%. •Depletions growth of 7% and 9% from the comparable 13 and 26 week periods in the prior year. •Advertising, promotional and selling expense increase of $3.6 million or 9% for the second quarter and $6.5 million, or 9% year to date, consistent with planned increased investments behind the Company's brands. •Reduced inventory at participating wholesalers of an estimated 619,000 cases as of the end of the second quarter as a result of the Freshest Beer Program, reducing reported earnings per diluted share by an estimated $0.13 for the second quarter and $0.22 year to date. •Full year 2012 depletions growth now estimated to be between 8% and 12%, an increase from the previously communicated estimate of 6% to 9%. •Full year 2012 gross margin now estimated between 54% and 56%, an increase from the previously communicated estimate of 53% to 55%. •Full year 2012 increase in advertising, promotional and selling expense, not including any increase in freight costs for the shipment of products to the Company's wholesalers now estimated to be between $11 million and $15 million from the previously communicated estimate of $8 million to $12 million. •Full year 2012 estimated earnings per diluted share remains unchanged at $3.80 to $4.20, which includes the negative impact of the Freshest Beer Program on shipment volume. •Full year 2012 estimated capital spending now ranges from $55 million to $75 million, an increase from the previously communicated estimate of $40 million to $60 million.
Jim Koch, Chairman and Founder of the Company, commented, "I am pleased with our overall depletions growth of 7% for the quarter and 9% for the first half of the year. We believe that craft beer will continue to grow and