CRAFT BREW ALLIANCE, INC.

CIK:0000892222|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Income Statement [Abstract]
Sales	$ 52,757	$ 63,815	$ 98,582	$ 113,583
Less excise taxes	3,379	3,256	5,303	6,032
Net sales	49,378	60,559	93,279	107,551
Cost of sales	35,630	37,272	64,348	68,081
Gross profit	13,748	23,287	28,931	39,470
Selling, general and administrative expenses	12,908	19,381	27,369	44,946
Operating income (loss)	840	3,906	1,562	(5,476)
Interest expense	(306)	(504)	(573)	(812)
Other income, net	201	33	183	33
Income (loss) before income taxes	735	3,435	1,172	(6,255)
Income tax provision (benefit)	311	825	150	(1,501)
Net income (loss)	$ 424	$ 2,610	$ 1,022	$ (4,754)
Basic and diluted net income (loss) per share (usd per share)	$ 0.02	$ 0.13	$ 0.05	$ (0.24)
Shares used in basic per share calculations (in shares)	19,545	19,443	19,524	19,416
Shares used in diluted per share calculations (in shares)	19,693	19,593	19,688	19,416

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Cash flows from operating activities:
Net income (loss)	$ 1,022	$ (4,754)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	4,955	5,386
(Gain) loss on sale or disposal of Property, equipment and leasehold improvements	(80)	22
Deferred income taxes	1,098	(1,536)
Stock-based compensation	724	1,253
Lease expense	233	101
Other	(1,034)	152
Changes in operating assets and liabilities:
Accounts receivable, net	(12,660)	75
Inventories	(2,060)	(3,349)
Other current assets	(528)	(687)
Accounts payable and other accrued expenses	2,852	9,692
Deferred revenue	(1,627)	(1,624)
Accrued salaries, wages and payroll taxes	(840)	(715)
Refundable deposits	(17)	104
Net cash provided by (used in) operating activities	(7,962)	4,120
Cash flows from investing activities:
Expenditures for Property, equipment and leasehold improvements	(12,718)	(9,440)
Proceeds from sale of Property, equipment and leasehold improvements	161	22
Business combinations and asset acquisitions	(96)	(274)
Net cash used in investing activities	(12,653)	(9,692)
Cash flows from financing activities:
Proceeds from issuance of long-term debt	0	5,192
Principal payments on debt and finance lease obligations	(701)	(455)
Net borrowings under revolving line of credit	21,163	930
Proceeds from issuances of common stock	92	0
Tax payments related to stock-based awards	(270)	(325)
Net cash provided by financing activities	20,284	5,342
Decrease in Cash and cash equivalents	(331)	(230)
Cash and cash equivalents
Beginning of period	469	1,200
End of period	138	970
Supplemental disclosure of cash flow information:
Cash paid for interest	606	761
Cash received for income taxes, net	11	569
Cash paid for amounts included in measurement of lease liabilities	1,183	1,513
Supplemental disclosure of non-cash information:
Right-of-use assets obtained in exchange for operating lease obligations	0	19,726
Right-of-use assets obtained in exchange for finance lease obligations	0	2,538
Purchases of Property, equipment and leasehold improvements included in Accounts payable at end of period	$ 62	$ 199

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 138	$ 469
Accounts receivable, net	30,156	17,492
Inventory, net	21,862	19,142
Other current assets	4,482	3,953
Total current assets	56,638	41,056
Property, equipment and leasehold improvements, net	118,837	113,337
Operating lease right-of-use assets	22,832	23,513
Goodwill	21,935	21,935
Trademarks	44,144	44,240
Intangible and other assets, net	5,235	5,304
Total assets	269,621	249,385
Current liabilities:
Accounts payable	20,300	15,804
Accrued salaries, wages and payroll taxes	4,835	5,675
Refundable deposits	2,640	3,640
Deferred revenue	3,248	3,251
Other accrued expenses	6,344	9,623
Current portion of long-term debt and finance lease obligations	1,444	1,415
Total current liabilities	38,811	39,408
Deferred revenue, non-current	17,864	19,488
Long-term debt and finance lease obligations, net of current portion	53,354	32,920
Fair value of derivative financial instruments	507	278
Deferred income tax liability, net	8,005	6,966
Long-term operating lease liabilities	23,556	24,037
Other liabilities	821	983
Total liabilities	142,918	124,080
Commitments and contingencies (Note 13)
Common shareholders' equity:
Common stock, $0.005 par value. Authorized 50,000,000 shares; issued and outstanding 19,545,308 and 19,495,907	98	97
Additional paid-in capital	146,469	145,923
Accumulated other comprehensive loss	(378)	(207)
Accumulated deficit	(19,486)	(20,508)
Total common shareholders' equity	126,703	125,305
Total liabilities and common shareholders' equity	$ 269,621	$ 249,385