þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For The Quarterly Period Ended June 30, 2010 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Washington | 91-1141254 | |
(State or other jurisdiction of | (I.R.S. Employer | |
incorporation or organization) | Identification No.) | |
Large Accelerated Filer o | Accelerated Filer o | Non-accelerated Filer o | Smaller Reporting Company þ | |||
(Do not check if a smaller reporting company)
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EX-10.1 | ||||||||
EX-10.2 | ||||||||
EX-10.3 | ||||||||
EX-10.4 | ||||||||
EX-10.5 | ||||||||
EX-31.1 | ||||||||
EX-31.2 | ||||||||
EX-32.1 | ||||||||
EX-99.1 |
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
Table of Contents
(Unaudited)
Three Months
Six Months
Ended June 30,
Ended June 30,
2010
2009
2010
2009
(In thousands, except per share amounts)
$
39,645
$
37,959
$
68,967
$
67,680
2,406
2,323
4,276
4,306
37,239
35,636
64,691
63,374
26,841
26,766
47,446
49,247
10,398
8,870
17,245
14,127
7,545
6,259
13,750
12,026
113
225
2,853
2,498
3,495
1,876
338
99
423
128
(409
)
(571
)
(808
)
(1,137
)
75
79
128
170
2,857
2,105
3,238
1,037
1,123
366
1,295
373
$
1,734
$
1,739
$
1,943
$
664
$
0.10
$
0.10
$
0.11
$
0.04
Table of Contents
(Unaudited)
Six Months
Ended June 30,
2010
2009
(In thousands)
$
1,943
$
664
3,589
3,700
(424
)
(128
)
1,109
362
299
99
74
36
(42
)
(3
)
(4,397
)
(532
)
(257
)
(1,385
)
1,713
(274
)
39
40
4,816
641
(1,111
)
(92
)
(538
)
(355
)
6,813
2,773
(1,090
)
(1,431
)
65
28
20
(1,005
)
(1,403
)
(731
)
(687
)
(5,100
)
(500
)
23
53
(5,808
)
(1,134
)
236
11
11
$
11
$
247
$
870
$
1,194
$
205
$
18
Table of Contents
(Unaudited)
June 30,
December 31,
2010
2009
(In thousands)
$
2,990
$
3,660
2,356
2,023
2,487
1,647
128
892
1,195
1,184
86
81
$
9,242
$
9,487
June 30,
December 31,
2010
2009
(In thousands)
$
1,795
$
3,279
171
83
88
330
403
$
2,208
$
3,941
Table of Contents
NOTES TO FINANCIAL STATEMENTS
(continued)
(Unaudited)
June 30,
December 31,
2010
2009
(In thousands)
$
4,922
$
4,544
1,183
1,158
$
6,105
$
5,702
Table of Contents
NOTES TO FINANCIAL STATEMENTS
(continued)
(Unaudited)
June 30,
December 31,
2010
2009
(In thousands)
$
12,828
$
13,012
1,300
6,400
600
600
552
587
5,020
5,567
20,300
26,166
1,526
1,481
$
18,774
$
24,685
Table of Contents
NOTES TO FINANCIAL STATEMENTS
(continued)
(Unaudited)
3.50 to 1
3.00 to 1
1.25 to 1
Table of Contents
NOTES TO FINANCIAL STATEMENTS
(continued)
(Unaudited)
Liability Derivatives at June 30, 2010
Balance Sheet Location
Fair Value
(in thousands)
Derivatives designated as hedging instruments under ASC 815
Non-current liabilities - derivative financial instruments
$
942
Derivatives not designated as hedging instruments under ASC 815
Non-current liabilities - derivative financial instruments
34
$
976
Level 1:
Observable inputs (unadjusted) in active markets for identical assets and liabilities;
Level 2:
Inputs other than quoted prices included within Level 1 that are either directly or
indirectly observable for the asset or liability, including quoted prices for similar assets
or liabilities in active markets, quoted prices for identical or similar assets or
liabilities in inactive markets and inputs other than quoted prices that are observable for
the asset or liability;
Level 3:
Unobservable inputs for the asset or liability, including situations where there is
little, if any, market activity or data for the asset or liability.
Fair Value Hierarchy Assessment
Level 1
Level 2
Level 3
Total
(in thousands)
$
$
976
$
$
976
Table of Contents
NOTES TO FINANCIAL STATEMENTS
(continued)
(Unaudited)
Weighted
Aggregate
Average
Intrinsic
Options
Exercise Price
Value
(in thousands)
(per share)
(in thousands)
137
$
2.00
$
67
105
2.39
(13
)
(1.79
)
229
$
2.19
$
552
101
$
2.20
$
244
Table of Contents
NOTES TO FINANCIAL STATEMENTS
(continued)
(Unaudited)
Outstanding
Exercisable
Weighted
Weighted
Weighted
Average
Weighted
Average
Average
Remaining
Average
Remaining
Exercise
Contractual
Exercise
Contractual
Range of Exercise Prices
Options
Price
Life
Options
Price
Life
(in thousands)
(per share)
(in years)
(in thousands)
(per share)
(in years)
to
$
2.00
43
$
1.44
6.3
20
$
1.64
3.8
to
$
3.00
170
2.29
6.9
65
2.14
2.1
to
$
3.15
16
3.15
4.9
16
3.15
4.9
to
$
3.15
229
$
2.19
6.6
101
$
2.20
2.9
Three Months
Six Months
Ended June 30,
Ended June 30,
2010
2009
2010
2009
(In thousands, except per share amounts)
$
1,734
$
1,739
$
1,943
$
664
17,084
16,967
17,079
16,957
47
24
34
5
17,131
16,991
17,113
16,962
$
0.10
$
0.10
$
0.11
$
0.04
Table of Contents
NOTES TO FINANCIAL STATEMENTS
(continued)
(Unaudited)
Three Months
Six Months
Ended June 30,
Ended June 30,
2010
2009
2010
2009
(in thousands)
$
1,734
$
1,739
$
1,943
$
664
(66
)
181
(108
)
202
$
1,668
$
1,920
$
1,835
$
866
Table of Contents
NOTES TO FINANCIAL STATEMENTS
(continued)
(Unaudited)
Table of Contents
Table of Contents
Table of Contents
Three Months
Six Months
Ended June 30,
Ended June 30,
2010
2009
2010
2009
106.5
%
106.5
%
106.6
%
106.8
%
6.5
6.5
6.6
6.8
100.0
100.0
100.0
100.0
72.1
75.1
73.3
77.7
27.9
24.9
26.7
22.3
20.2
17.6
21.3
19.0
0.3
0.4
7.7
7.0
5.4
2.9
0.9
0.3
0.7
0.2
(1.1
)
(1.6
)
(1.3
)
(1.8
)
0.2
0.2
0.2
0.3
7.7
5.9
5.0
1.6
3.0
1.0
2.0
0.6
4.7
%
4.9
%
3.0
%
1.0
%
For the Trailing
Four Quarters Ended
June 30, 2010
(In thousands)
$
2,166
1,810
1,108
6,425
776
140
$
12,425
Table of Contents
Three Months
Ended June 30,
Increase /
%
2010
2009
(Decrease)
Change
(Dollars in thousands)
$
39,645
$
37,959
$
1,686
4.4
%
2,406
2,323
83
3.6
37,239
35,636
1,603
4.5
26,841
26,766
75
0.3
10,398
8,870
1,528
17.2
7,545
6,259
1,286
20.5
113
(113
)
(100.0
)
2,853
2,498
355
14.2
338
99
239
241.4
(409
)
(571
)
(162
)
(28.4
)
75
79
(4
)
(5.1
)
2,857
2,105
752
35.7
1,123
366
757
206.8
$
1,734
$
1,739
$
(5
)
(0.3
)
Three Months
Ended June 30,
Increase/
%
2010
2009
(Decrease)
Change
(Dollars in thousands)
$
32,234
$
31,471
$
763
2.4
%
695
695
3,741
3,441
300
8.7
2,975
3,047
(72
)
(2.4
)
$
39,645
$
37,959
$
1,686
4.4
%
Note 1
A-B related revenues include fees earned on wholesaler or distributor sales made via a non-wholesaler
Note 2
Other revenues include international sales, sales of
promotional merchandise and other
Table of Contents
The Company generated revenues of $695,000 under the contract brewing arrangement during
the second quarter of 2010. The Company did not have a contract brewing arrangement during the
second quarter of 2009.
Alternating proprietorship fees increased $300,000 from $3.4 million for the second quarter
of 2009 to $3.7 million for the second quarter of 2010. These fees are earned from Kona for
leasing the Oregon Brewery and sales of raw materials during the corresponding periods, and
reflect the increased demand for Kona-branded products in the second quarter of 2010 as
compared with the corresponding quarter a year ago.
Three Months Ended June 30,
2010 Shipments
2009 Shipments
Increase /
%
Draft
Bottle
Total
Draft
Bottle
Total
(Decrease )
Change
(In barrels)
60,000
102,500
162,500
61,400
98,600
160,000
2,500
1.6
%
5,900
5,900
5,900
2,000
500
2,500
1,500
900
2,400
100
4.2
67,900
103,000
170,900
62,900
99,500
162,400
8,500
5.2
%
Note 1
2009 Shipments have been reclassified to be consistent with
the 2010 classification.
Note 2
Other includes international, pubs and other
Table of Contents
Three Months Ended June 30,
2010 Shipments
2009 Shipments
Increase /
%
Draft
Bottle
Total
Draft
Bottle
Total
(Decrease )
Change
(In barrels)
37,400
40,800
78,200
38,300
40,900
79,200
(1,000
)
(1.3)
%
12,500
34,800
47,300
13,300
33,800
47,100
200
0.4
12,100
27,400
39,500
11,300
24,800
36,100
3,400
9.4
62,000
103,000
165,000
62,900
99,500
162,400
2,600
1.6
%
Note 1
Total shipments by brand exclude private label shipments produced under the Companys contract brewing arrangements.
Table of Contents
Table of Contents
Six Months
Ended June 30,
Increase /
%
2010
2009
(Decrease )
Change
(Dollars in thousands)
$
68,967
$
67,680
$
1,287
1.9
%
4,276
4,306
(30
)
0.7
64,691
63,374
1,317
2.1
47,446
49,247
(1,801
)
3.7
17,245
14,127
3,118
22.1
13,750
12,026
1,724
14.3
225
(225
)
(100.0
)
3,495
1,876
1,619
86.3
423
128
295
230.5
(808
)
(1,137
)
(329
)
(28.9
)
128
170
(42
)
(24.7
)
3,238
1,037
2,201
212.2
1,295
373
922
247.2
$
1,943
$
664
$
1,279
192.6
%
Table of Contents
Six Months
Ended June 30,
Increase /
%
2010
2009
(Decrease )
Change
( In thousands )
$
56,334
$
56,426
$
(92
)
(0.2
)%
1,110
1,110
6,001
5,647
354
6.3
5,522
5,607
(85
)
(1.5
)
$
68,967
$
67,680
$
1,287
1.9
%
Note 1
A-B related revenues include fees earned on wholesaler or
distributor sales made via a non-wholesaler
Note 2
Other revenues include international sales, sales of promotional merchandise and other
The decrease in shipments to A-B of 7,100 barrels from shipments of 291,900 barrels in the
first six months of 2009 to 284,800 barrels in the first six months of 2010. Shipments to A-B
for the first six months of 2010 as compared with the corresponding period one year ago were
impacted by the reduction in wholesalers inventories at the end of the second quarter of 2010
as compared to the corresponding period one year ago. The rate of change in depletions, or
sales by the wholesalers to retailers, for the first six months of 2010 increased at a 0.2%
rate from the prior period a year ago.
Additionally, revenues from pubs and other sales decreased by $85,000 for the first six
months of 2010 as compared with the corresponding period a year ago.
Six Months Ended June 30,
2010-Shipments
2009-Shipments
Increase /
%
Draft
Bottle
Total
Draft
Bottle
Total
(Decrease )
Change
(In barrels)
109,900
174,900
284,800
116,700
175,200
291,900
(7,100
)
(2.4
)%
10,700
10,700
10,700
3,300
800
4,100
2,700
1,600
4,300
(200
)
(4.7
)
123,900
175,700
299,600
119,400
176,800
296,200
3,400
1.1
%
Note 1
2009 Shipments have been reclassified to be consistent with the 2010 classification.
Note 2
Other includes international, non- wholesalers, pubs and other
Table of Contents
Six Months Ended June 30,
2010-Shipments
2009-Shipments
Increase /
%
Draft
Bottle
Total
Draft
Bottle
Total
(Decrease)
Change
(In barrels)
68,000
71,400
139,400
73,300
70,900
144,200
(4,800
)
(3.3
)%
23,500
61,800
85,300
25,900
67,600
93,500
(8,200
)
(8.8
)
21,700
42,500
64,200
20,200
38,300
58,500
5,700
9.7
113,200
175,700
288,900
119,400
176,800
296,200
(7,300
)
(2.5
)%
Notes :
1
Total shipments by brand exclude private label shipments produced under the Companys contract brewing arrangement.
Table of Contents
Table of Contents
Table of Contents
3.50 to 1
3.00 to 1
1.25 to 1
Table of Contents
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Table of Contents
30
31
32
33
34
35
36
Our failure to pursue other beneficial opportunities as a
result of the focus of management on the KBC Merger,
without realizing any of the anticipated benefits of
completing the transaction;
a decline in market price of our common stock; and
our costs related to the KBC Merger, such as legal,
professional and accounting fees, must be paid even if the
merger is not completed.
Table of Contents
we do not achieve the perceived benefits of the KBC Merger as rapidly or to the
extent anticipated by financial or industry analysts or investors;
the effect of the KBC Merger on our business and prospects does not meet the
expectations of financial or industry analysts or investors; or
investors react negatively to the effect of the KBC Merger on their equity ownership.
maintaining operational, financial and management controls, reporting systems and procedures;
coordinating geographically disparate organizations, systems and facilities;
assimilating personnel with diverse business backgrounds;
integrating distinct corporate cultures;
consolidating operations;
retaining key employees; and
preserving collaboration, distribution and other important relationships of both companies.
Table of Contents
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Agreement and Plan of Merger among Craft Brewers Alliance, Inc., Kona Brewery
Co., Inc. and related parties, dated July 31, 2010 (Incorporated by reference
from Exhibit 2.1 to the Registrants Current Report on Form 8-K filed on August
3, 2010)
Letter of Agreement between the Registrant and Kurt R. Widmer dated May 26, 2010
Letter of Agreement between the Registrant and Robert P. Widmer dated May 26, 2010
Form of Nonstatutory Stock Option Agreement (Executive Officer Grants) for the
2007 Stock Option Plan
Second Loan Modification Agreement dated June 8, 2010 to the Loan Agreement dated
July 1, 2008 between the Registrant and Bank of America, N.A.
Second Amendment dated August 6, 2010 to Master Distributor Agreement dated as
of July 1, 2004 between the Registrant and Anheuser-Busch, Incorporated
Certification of Chief Executive Officer of Craft Brewers Alliance, Inc. pursuant
to Exchange Act Rule 13a-14(a)
Certification of Chief Financial Officer of Craft Brewers Alliance, Inc. pursuant
to Exchange Act Rule 13a-14(a)
Certification pursuant to Exchange Act Rule 13a-14(b) and 18 U.S.C. Section 1350
Press release dated August 13, 2010
Table of Contents
37
CRAFT BREWERS ALLIANCE, INC.
August 13, 2010
By:
/s/ Joseph K. OBrien
Joseph K. OBrien
Controller and Chief Accounting Officer
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Sincerely, | |||
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||||
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/s/ David Lord
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David Lord | |||
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Chairman of Compensation Committee
of Board of Directors |
Acknowledged and Agreed:
|
||
/s/ Kurt R. Widmer
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Kurt R. Widmer
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Date: July 8, 2010
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Sincerely, | |||
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||||
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/s/ David Lord
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|||
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David Lord | |||
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Chairman of Compensation Committee
of Board of Directors |
Acknowledged and Agreed:
|
||
|
||
/s/ Robert P. Widmer
|
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Robert P. Widmer
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||
|
||
Date: July 8, 2010
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To: | Craft Brewers Alliance, Inc. | |||||
929 North Russell Street | ||||||
Portland, Oregon 97227 | ||||||
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Attention: | |||||
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|||||
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||||||
Optionholder:
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||||||
Print Name
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||||||
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||||||
Mailing Address:
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||||||
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||||||
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||||||
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||||||
Telephone Number:
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||||||
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||||||
Option: | The option evidenced by an Option Agreement dated , ___. |
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Number of Shares Purchased (a) |
|
||||||||
|
Per-Share Option Price (b) | $ |
|
|||||||
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Aggregate Purchase Price (a times b) | $ |
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|||||||
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Closing Date of Purchase |
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||||||||
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Form of Payment [Check One]: | |||||||||
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|
o |
My check in the full amount of the Aggregate Purchase Price (as well as a
check for any withholding taxes, if this
box ¨ is checked). See Instructions below. |
||
o | Delivery of previously owned shares of CBAI common stock with a fair market value equal to the Aggregate Purchase Price (as well as any withholding taxes, if this box ¨ is checked). See Instructions below. Note that restricted shares acquired from CBAI under one of its stock plans may be used for this purpose only if such shares have become vested. |
A-1
o |
My irrevocable direction to my securities broker (see below) to sell Shares
subject to the Option and deliver a portion of
the sales proceeds to Craft Brewers Alliance, Inc., in full payment of the Aggregate Purchase Price (as well as any withholding taxes, if this box ¨ is checked). See Instructions below. I hereby confirm that any sale of Shares will be in compliance with CBAIs policies on insider trading and Rule 144, if applicable. I HEREBY IRREVOCABLY AUTHORIZE to transfer funds to Craft Brewers Alliance, Inc., from my account in payment of the ( name of broker ) Aggregate Purchase Price (and withholding taxes, if applicable) and Craft Brewers Alliance, Inc., is hereby directed to issue the Shares for my account with such broker and to transmit the Shares to the broker indicated above. |
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A-2
o | My brokerage account |
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Attn: | |||||||
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Account | No.: | ; or | |||||
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o | My mailing address set forth above. |
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A-3
Common Stock
Certificate Number |
Number of
Shares Covered |
|
Print Name of Optionholder:
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|||
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||||
Signature of Optionholder:
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||||
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|||
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||||
Print Name of Joint Owner:
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||||
Signature of Joint Owner:
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Name of Brokerage Firm | ||||||||||
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||||||||||
Date:
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By: | |||||||||
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Telephone No.: | ||||||||||
Print Name of Signing Broker |
A-4
LOAN MODIFICATION
AGREEMENT |
Applicable Rate | ||||||
(in percentage points per annum) | ||||||
Pricing Level | Funded Debt to EBITDA | LIBOR/IBOR + | Fee Margin: | |||
1 | ³ 3.0 to 1 | 2.25 | 0.350 | |||
2 | < 3.0 to 1 but ³ 2.0 to 1 | 1.50 | 0.225 | |||
3 | < 2.0 to 1 | 1.25 | 0.200 |
- 1 - |
Bank: | Borrower: | |||||||
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||||||||
BANK OF AMERICA, N.A. | CRAFT BREWERS ALLIANCE, INC. | |||||||
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||||||||
By
|
/s/ Michael Snook | By | /s/ Terry E. Michaelson | |||||
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||||||||
|
Michael Snook, Senior Vice President | Terry Michaelson, Chief Executive Officer |
SECOND MODIFICATION | - 2 - | lr/01-0071/cbai |
2
Craft Brewers Alliance, Inc.
|
||||
By: | /s/ Terry E. Michaelson | |||
Terry Michaelson | ||||
Chief Executive Officer |
3
Anheuser-Busch, Incorporated
|
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By: | /s/ Anthony J. Short | |||
Printed Name: | Anthony J. Short | |||
Printed Title: |
Vice President, Business and
Wholesaler Development |
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4
1. | I have reviewed this report on Form 10-Q of Craft Brewers Alliance, Inc. (the Registrant); | |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report; | |
4. | The Registrants other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | ||
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | ||
c. | Evaluated the effectiveness of the Registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | ||
d. | Disclosed in this report any change in the Registrants internal control over financial reporting that occurred during the Registrants most recent fiscal quarter (the Registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrants internal control over financial reporting; and |
5. | The Registrants other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrants auditors and the audit committee of the Registrants board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrants ability to record, process, summarize and report financial information; and | ||
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrants internal control over financial reporting. |
BY: | /s/ Terry E. Michaelson | |||
Terry E. Michaelson | ||||
Chief Executive Officer |
1. | I have reviewed this report on Form 10-Q of Craft Brewers Alliance, Inc. (the Registrant); | |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report; | |
4. | The Registrants other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | ||
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | ||
c. | Evaluated the effectiveness of the Registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | ||
d. | Disclosed in this report any change in the Registrants internal control over financial reporting that occurred during the Registrants most recent fiscal quarter (the Registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrants internal control over financial reporting; and |
5. | The Registrants other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrants auditors and the audit committee of the Registrants board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrants ability to record, process, summarize and report financial information; and | ||
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrants internal control over financial reporting. |
BY: | /s/ Mark D. Moreland | |||
Mark D. Moreland | ||||
Chief Financial Officer and Treasurer |
1. | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and | ||
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant. |
BY: | /s/ Terry E. Michaelson | |||
Terry E. Michaelson | ||||
Chief Executive Officer
(Principal Executive Officer) |
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BY: | /s/ Mark D. Moreland | |||
Mark D. Moreland | ||||
Chief Financial Officer and Treasurer
(Principal Financial Officer) |
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| Operating profit increased by 14 percent | ||
| Gross margin improved by three percentage points | ||
| Total shipments increased by five percent to 170,900 barrels | ||
| Year-to-date cash flow from operations grew 146 percent, driving a 22 percent reduction in total debt | ||
| Favorable modification to CBAs primary loan agreement was executed. | ||
| Company announces merger with Kona Brewing Co., Inc. |
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Craft Brewers Alliance Reports Second Quarter 2010 Results
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Page 2 of 3 |
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Craft Brewers Alliance Reports Second Quarter 2010 Results
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Page 3 of 3 |
Media Contact:
|
Investor Contact: | |
Ted Lane
|
Patrick Green | |
LANE PR
|
(503) 331-7275 | |
(503)
546-7891
Ted@lanepr.com |
Patrick.green@craftbrewers.com |
Condensed Statements of Operations
(in thousands, except per share amounts)
(Unaudited)
Three Months
Six Months
Ended June 30,
Ended June 30,
2010
2009
2010
2009
$
39,645
$
37,959
$
68,967
$
67,680
2,406
2,323
4,276
4,306
37,239
35,636
64,691
63,374
26,841
26,766
47,446
49,247
10,398
8,870
17,245
14,127
27.9
%
24.9
%
26.7
%
22.3
%
7,545
6,259
13,750
12,026
113
225
2,853
2,498
3,495
1,876
(409
)
(571
)
(808
)
(1,137
)
413
178
551
298
2,857
2,105
3,238
1,037
1,123
366
1,295
373
$
1,734
$
1,739
$
1,943
$
664
$
0.10
$
0.10
$
0.11
$
0.04
17,084
16,967
17,079
16,957
17,131
16,991
17,113
16,962
Condensed Balance Sheets
(in thousands)
(Unaudited)
June 30,
2010
2009
$
11
$
247
15,544
12,996
9,242
10,769
991
909
2,208
5,107
27,996
30,028
95,221
100,161
18,907
18,535
$
142,124
$
148,724
$
18,676
$
16,574
3,321
3,305
5,854
6,610
1,948
1,460
1,526
1,438
31,325
29,387
18,774
30,570
9,461
8,532
82,564
80,235
$
142,124
$
148,724
Condensed Statements of Cash Flows
(in thousands)
(Unaudited)
Six Months
Ended June 30,
2010
2009
$
1,943
$
664
3,589
3,700
(424
)
(128
)
1,109
362
331
132
(4,397
)
(532
)
(257
)
(1,385
)
1,713
(274
)
39
40
4,816
641
(1,111
)
(92
)
(538
)
(355
)
6,813
2,773
(1,090
)
(1,431
)
85
28
(1,005
)
(1,403
)
(731
)
(687
)
(5,100
)
(500
)
23
53
(5,808
)
(1,134
)
236
11
11
$
11
$
247