I need help with Question 9 and its three parts (i.e., a, b and c)
a) What was the company's annual net sales CAGR (in %) between 12-27-2014 and 12-29-2018?
b) What was this company's ROE (return on stockholder's equity) as of 12-29-2018? (Hint: Calculate from Mergent Online; do not use pre-calculated ratios)
c) What was this company's EPS (earnings per share, fully diluted) as of 12-29-2018? (Hint: on Mergent, from the Income Statement, the line is Net Income per Share - diluted. Report as $x.xx per share).
Mergent Online:
THE BOSTON BEER COMPANY, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in thousands, except share datal December 29, 2018 December 30, 2017 Assets Current Assets: Cash and cash equivalents $ 108,399 $ 65,637 Accounts receivable 34,073 33,749 Inventories 70,249 50,651 Prepaid expenses and other current assets 13,136 10,695 Income tax receivable 5,714 7,616 Total current assets 231,571 168,348 Property, plant and equipment, net 389,789 384.280 Other assets 14,808 13,313 Goodwill 3.683 3,683 TOTAL ASSETS $ 639,851 $ 569,624 Liabilities and Stockholders' Equity Current Liabilities: Accounts payable $ 47.102 $ 38,141 Accrued expenses and other current liabilities 73,412 63,617 Total current liabilities 120,514 101,758 Deferred income taxes 49,169 34,819 Other liabilities 9,851 9,524 TOTAL LIABILITIES 179,534 146,101 Commitments and Contingencies (See Note J) Stockholders' Equity: Class A Common Stock, $.01 par value; 22,700,000 shares authorized; 8,580,593 and 8,603, 152 shares issued and outstanding as of December 29, 2018 and December 30, 2017, respectively 86 86 Class B Common Stock, $.01 par value; 4,200,000 shares authorized; 2,917,983 and 3,017,983 shares issued and outstanding as of December 29, 2018 and December 30, 2017, respectively 29 30 Additional paid-in capital 405,711 372,590 Accumulated other comprehensive loss, net of tax (1,197) (1,288) Retained earnings 55,688 52,105 Total stockholders' equity 460,317 123,523 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 639,851 $ 569,624THE BOSTON BEER COMPANY, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS Year Ended December 31, December 20, 2018 December 30, 2017 2016 (53 weeks] Cash flows provided by operating activities: Net income 82,863 98,049 87.348 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 51,968 51,256 49.557 Impairment of assets 852 2,451 716 Loss on disposal of property, plant and equipment 64 764 Gain on sale of property, plant and equipment (951] Bad debt (recovery) expense (244) Stock-based compensation expense 10,035 6,316 6,148 Excess tax benefit from stock-based compensation arrangements (12,524) Deferred income taxes 14,350 (22,442) B.243 Changes in operating assets and liabilities: Accounts receivable [1,836) 2,945 2,534 Inventories (21,312) [1,741) 445 Prepaid expenses, income tax receivable and other assets (552) [4,511) 14,936 Accounts payable 8,352 245 (1,81 1) Accrued expenses and other current liabilities 10,130 2,671 5,478 Other Iabilities 731 (1,021) (6,304) Net cash provided by operating activities 163,447 135,862 154,189 Cash flows used in investing activities: Purchases of property, plant and equipment (55,460) (32,857) (49.913) Proceeds from sale of property, plant and equipment 27 25 3.655 Cash paid for intangible assets 150) Change in restricted cash 139 33 40 Net cash used in investing activities (55,344) (32,829 (46,018) Cash flows used in financing activities: Repurchase of Class A Common Stock (88,312) (144,602) (164,658) Proceeds from exercise of stock options 22,143 15,415 40.127 Cash paid on note payable and capital lease (58) Excess tax benefit from stock-based compensation arrangements 12,524 Net proceeds from sale of investment shares 906 798 738 Net cash used in financing activities (65,341) (128,451) (111,329) Change in cash and cash equivalents 42,762 (25,398) (3.158) Cash and cash equivalents at beginning of year 65,837 91,035 94,193 Cash and cash equivalents at end of period 106,399 65.837 91,035 Supplemental disclosure of cash flow information: Income taxes paid 11,353 43,008 30.978 Income taxes refunded 5,000 12,084 Decrease) Increase in accounts payable for repurchase of Class A Common Stock S (3,000) (Decrease) Increase in accounts payable for purchase of property, plant and equipment 2,809 (2,689) 2,678Item 6. Selected Consolidated Financial Data Year Ended in thousands, except per share and net revenue per Dec. 31 2016 barrel data) Dec. 29 2018 Dec. 30 2017 (53 weeks) Dec. 26 2015 Dec. 27 2014 Income Statement Data: Revenue $ 1,057,495 $ 921,736 $ 968,994 $ 1,024,040 $ 966,478 Less excise taxes 61,846 58,744 62.548 64,106 63.471 Net revenue 995,649 862,992 906,446 959,934 903,007 Cost of goods sold 483,406 413,091 446,776 458,317 437,996 Gross profit 512,243 449,901 459,670 501,617 465,011 Operating expenses: Advertising, promotional and selling expenses 304,853 258,649 244,213 273,629 250,696 General and administrative expenses 90,857 73,126 78,033 71,556 65,971 Impairment (gain on sale) of assets, net 652 2.451 235) 258 1,777 Total operating expenses 396,362 334,226 322,011 345,443 318,444 Operating income 115,881 115,675 137,659 156,174 146,567 Other income (expense), net 405 467 (538) (1,164) (973) Income before provision for income taxes 116,286 116,142 137,121 155,010 145,594 Provision for income taxes 23,623 17,093 49,772 56,596 54.851 NET INCOME 92,663 $ 99,049 $ 87,349 $ 98,414 $ 90,743 Net income per share - basic 7.90 $ 8.18 S 6.93 7.46 S 6.96 Net income per share - diluted 7.82 $ 8.09 S 6.79 $ 7.25 $ 3.69 Weighted average shares outstanding - basic 11,621 12,035 12,533 13,123 12,968 Weighted average shares outstanding - diluted 11,734 12,180 12,796 13,520 13,484 Balance Sheet Data: Working capital $ 111,057 $ 66,590 $ 99,719 $ 112,443 $ 97,292 Total assets CO CO 639,851 $ 569,624 S 623,297 $ 645,400 S 605,161 Total long-term obligations 59,020 $ 44,343 S 75,196 $ 73,019 S 58,851 Total stockholders' equity 460,317 $ 423,523 S 446,582 $ 461,221 436,140 Statistical Data: Barrels sold 4,286 3,768 4,019 4,256 4,103 Net revenue per barrel $ 232.30 $ 229.05 S 225.55 $ 225.55 $ 220.08Contents PART II Item 8 Financial Statements and Supplementary Data THE BOSTON BEER COMPANY, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Year Ended December 31, (in thousands, except per share data) December 29, 2018 December 30, 2017 2016 (53 weeks) Revenue $ 1,057,495 $ 921,736 $ 968,994 Less excise taxes 61,846 58,744 62,548 Net revenue 995,649 862,992 906, 446 Cost of goods sold 483,406 413,091 446,776 Gross profit 512,243 449,901 459,670 Operating expenses: Advertising, promotional and selling expenses 304,853 258,649 244,213 General and administrative expenses 90,857 73, 126 78,033 Impairment (gain on sale) of assets, net 652 2,451 (235) Total operating expenses 396,362 334,226 322,011 Operating income 115,881 115,675 137,659 Other income (expense), net: Interest income 1,292 549 168 Other expense, net (887) (82) (706) Total other income (expense), net 405 467 (538) Income before provision for income tax 116,286 116,142 137,121 Provision for income taxes 23,623 17,093 49,772 NET INCOME 92,663 $ 99,049 $ 87,349 NET INCOME PER COMMON SHARE - BASIC 7.90 . 18 6.93 NET INCOME PER COMMON SHARE - DILUTED 7.82 8.09 6.79 Weighted-average number of common shares - Class A basic 8,620 8,933 9, 189 Weighted-average number of common shares - Class B basic 3,002 3, 102 3,344 Weighted-average number of common shares - diluted 11,734 12, 180 12,796 Net income $ 92,663 99,049 $ 87,349 Other comprehensive income (loss), net of tax: Currency translation adjustment 25 17 (99) Defined benefit plans liability adjustment 277 (202) (53) Impact of ASU 2018-02 (211) Total other comprehensive income (loss), net of tax: 91 (185) (152) COMPREHENSIVE INCOME $ 92,754 $ 98,864 $ 87,197 32 THE BOSTON BEER COMPANY, INC. 2018 Form 10-K www.bostonbeer.comBoston Beer Co Inc (The) (NYS: SAM) Exchange rate used is that of the Year End reported date As Reported Annual Balance Sheet Report Date 12/29/2018 12/30/2017 12/31/2016 12/26/2015 12/27/2014 Currency USD USD USD USD USD Audit Status Not D Not D Not : Not D Not D Qualified Qualified Qualified Qualified Qualified Consolidated Yes Yes Yes Yes Yes Scal Thousands Thousands Thousands Thousands Thousands Cash & cash equivalents 108.399 65,637 91,035 94.193 76,402 Accounts receivable, gross 36,694 39,228 37,004 Less allowance for doubtful accounts 244 144 Accounts receivable 34.073 33,749 36,694 38,984 36,860 Raw materials 44.655 33,086 41,630 42.123 39,535 Work in process 8,252 6,826 8,131 8,876 7,391 Finished goods 17,342 10,739 9,054 8,261 10,793 Total inventories 58,815 59,260 57,719 Less portion included in other long term (6.316) (2.798) (6,412) assets Inventories 70,249 50,651 52,499 56,462 51,307 Prepaid equipment 3,789 Excise & other tax receivables 2,179 1,651 1,637 2,093 4,572 Prepaid malt & barley 1.629 1,819 1,644 3,184 4,368 Prepaid advertising, promotional & selling 1,518 3,328 Prepaid insurance 1,11 1,055 1,144 1,047 1,009 Prepaid compensation 1,000 Prepaid software expense 754 Insurance cash surrender value 1,254 Supplier & vendor rebates 265 1.464 1,158 1.929 1.641 Lease incentive receivable 113 1,584 Grant receivable - environmental remediation 507 Other prepaid expenses & other current 391 1.378 1,781 2.216 790 assets Prepaid expenses & other current assets 13,136 10,695 8,731 12,053 12,887 Income tax receivable 5,714 7,616 4,928 14,928 21,321 Deferred income taxes 7,351 6,983 8,685 Total current assets 231,571 168,348 201,238 223,603 207,462 Machinery & plant equipment 476,174 438,925 420,486 387.180 358,781 Kegs 67,940 69,049 70,024 71,391 72,124 Land 22.295 22,295 22,295 25,135 23,992Report Date 12/29/2018 12/30/2017 12/31/2016 12/26/2015 12/27/2014 Currency USD USD USD USD USO Audit Status Not D Net D Not D Net D qualified Qualified Qualified Qualified Qualified Consolidated Yes Yes You Yes Scale Thousands Thousands Thousands Thousands Thousands Building & building improvements 120,111 112,912 112,508 101,836 77.130 Office equipment & fumiture 26,703 24,307 22,412 19,635 14.063 Leasehold improvements 20.830 16,650 14.147 12,037 7.889 Property. plant & equipment, gross 734 053 884, 148 661,872 817,214 553,979 Less accumulated depreciation 344.264 299,868 253,461 207,208 172,410 Property. plant & equipment, net 308 789 384,280 408,411 409,826 381 569 Other assets 14.808 13,313 9,965 8. 108 12.447 Goodwil 3.683 3,683 3,683 3,683 3 683 Total assets 638 851 569,624 623,297 845,400 605, 161 Accounts payable 47,102 30,141 40,585 42,718 35.576 Current portion of debt & capital lease 58 obligations Employee wages, benefits & reimbursements 27.074 16,275 14.116 12,367 14.520 Accrued deposits 18,171 14,224 15,814 18,865 19.865 Advertising, promotional & selling expenses 9.079 13,605 8,562 11,249 8 353 Deferred revenue 4.587 5,472 5,381 3,949 6.034 Accrued stale beer 2,148 3,023 6,226 3,254 2.422 Accrued excise taxes 2.335 2,015 2.265 3,976 4 980 Accrued sales & use tax 1.914 1,873 2,437 2,656 4 187 Accrued freight 1.680 1,518 1,402 5,681 4 265 Accrued ingredients 4 047 Other accrued liabilities 6.438 5,612 5,681 6,387 6 058 Accrued expenses & other current liabilities 73.412 63,617 60,874 60,304 74 539 Total current liabilities 120.514 101,758 101,519 111, 160 110 170 Deferred income taxes 48 169 34,818 64,612 56,001 50 717 Debi & capital lease obligations, less current 411 471 528 portion Other liabilities 2 851 9,524 10,173 16,547 7 806 Total liabilities 178.534 146, 101 176,715 184,179 169.021 Class A common stock 95 Class B common stock 29 30 32 34 Additional paid-in capital 405,711 372,590 349,913 290,096 224 909 Accumulated other comprehensive income (1,197] (1.280) (1,103) 1951) (1,133) (loss), net of tax Retained earnings (accumulated deficit) 56 680 52,105 97,640 171,948 212,233 Total stockholders' equity (deficit) 460 317 423,523 446,582 461,221 436 140
