Craft Brew Alliance, Inc. Announces Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended June 30, 2016; Reconfirms Earnings Guidance for the Full Year 2016
For the six months, the company reported sales of $108.087 million against $107.257 million a year ago. Net sales were $101.500 million against $100.240 million a year ago. Operating loss was $1.257 million against operating income of $636 million a year ago. Loss before income taxes was $1.579 million against income before income taxes of $0.378 million a year ago. Net loss was $0.948 million against net income of $0.227 million a year ago. Basic and diluted net loss per share was $0.05 against basic and diluted net income per share of $0.01 a year ago. Net cash used in operating activities was $2.180 million against net cash provided by operating activities of $1.112 million a year ago. Expenditures for property, equipment and leasehold improvements were $9.220 million against $5.816 million a year ago. Adjusted EBITDA was $4.435 million against $6.306 million a year ago. Net sales increased by 1.3%, primarily attributed to improved pricing, alternating proprietorship fees, and increased guest counts at the company's brewpubs; partially offset by a decrease in overall shipment volumes. Shipments of the company's owned and partnership beers decreased by 5,400 barrels, or 1.4%, over the comparable period in 2015, due to the planned shutdown of the company's volume brewery (Portland) in the first quarter of 2016 and continued competitive challenges faced by Redhook, Widmer Brothers, and Omission. The second quarter decrease in shipments was offset by Kona, which increased shipments by 19.3%, as well as growth of Appalachian Mountain Brewery and Cisco. Depletions for Kona increased by 19%, while overall depletions were flat compared to the same time period in 2015.
The company reconfirmed earnings guidance for the full year 2016. The company is reconfirming previously issued guidance regarding the company's anticipated full year 2016 results, as follows: Full-year shipment growth between 1% and 2%, which reflects the planned first-quarter decrease due to the Portland brewery closure, offset by volume growth during peak selling seasons and ramp up of partner volumes, including Appalachian Mountain Brewery, Cisco Brewers and Pabst Brewing. Gross margin expected to be in the range of 31.0% to 32.5%. Capital expenditures between $19 million and $23 million as the company continues to support strategic investments, which include the Portland brewery expansion and efficiency initiatives, the Kona brewery expansion, the Portsmouth brewery canning line, and the new Redhook brewpub in Seattle. The increase in 2016 expenditures compared to last year's guidance reflects the effect of lower-than-anticipated spend on active projects in 2015.