BOSTON BEER CO INC
For the period ended Sep 28, 2024. Filed Oct 24, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 28, 2024 · Filed Oct 24, 2024
SAM$220.64-1.9%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-06-29; filed 2024-07-25.
0000950170-24-086556
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-09-28; filed 2024-10-24.
0000950170-24-117090
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 43 previous paragraphs and 50 current paragraphs.
11 unchanged; 28 reworded; 11 added; 4 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 2 previous and 2 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (11)
Current report
The Company believes distributor inventory as of September 28, 2024 averaged approximately five and a half weeks on hand which was slightly higher than the Company’s target level of four to five weeks. The Company expects that distributor inventory will return to target levels during the fourth quarter.
Current report
Impairment of intangible assets. Impairment of intangible assets reflects a $42.6 million non-cash impairment charge recorded primarily for the Dogfish Head brand, taken as a result of the Company’s annual impairment analysis as of September 1, 2024. The impairment determination was primarily based on the latest forecasts of brand performance which has been below projections made on the acquisition date. In the third quarter of 2023, the Company recorded an impairment charge of $16.4 million for the Dogfish Head brand.
Current report
Income tax provision. The Company's effective tax rate of 31.7% increased from 29.3% in the prior year. The increased effective tax rate is due to increased non-deductible compensation and the impact of the impairment charge which resulted in lower pre-tax income compared to the prior year.
Current report
Thirty-Nine Weeks Ended September 28, 2024 compared to Thirty-Nine Weeks Ended September 30, 2023
Current report
Impairment of intangible assets. Impairment of intangible assets reflects a $42.6 million non-cash impairment charge recorded primarily for the Dogfish Head brand, taken as a result of the Company’s annual impairment analysis as of September 1, 2024. The impairment determination was primarily based on the latest forecasts of brand performance which has been below projections made on the acquisition date. In the third quarter of 2023, the Company recorded an impairment charge of $16.4 million for the Dogfish Head brand.
Current report
Valuation of Goodwill and Indefinite Lived Intangible Assets
Current report
The Company has recorded intangible assets with indefinite lives and goodwill for which impairment testing is required at least annually or more frequently if events or circumstances indicate that these assets might be impaired. The Company performs its annual impairment tests and re-evaluates the useful lives of other intangible assets with indefinite lives at the annual impairment test measurement date in the third quarter of each fiscal year or when circumstances arise that indicate a possible impairment or change in useful life might exist.
Current report
Significant judgement is required to estimate the fair value of the Dogfish Head trademark. Accordingly, the Company obtains the assistance of third-party valuation specialists as part of the impairment evaluation. In estimating the fair value of the trademark, management must make assumptions and projections regarding future cash flows based upon future revenues, the market-based royalty rate, the discount rate, and the after-tax royalty savings expected from ownership of the trademark. The assumptions and projections used in the estimate of fair value are consistent with recent trends and represent the projections used in Company’s current strategic operating plans which include reductions in revenues from the Dogfish Head beer products. These assumptions reflect management’s estimates of future economic and competitive conditions and consider many factors including macroeconomic conditions, industry growth rates, and competitive activities and are, therefore, subject to change as a result of changing market conditions. Beginning in the fourth quarter of 2024, the Company will change the indefinite useful life of the Dogfish Head trademark asset and begin amortizing the remaining $14.4 million balance over an estimated useful life of 10 years.
Current report
The Company performed a sensitivity analysis on its significant assumptions used in the Dogfish Head trademark fair value calculation and determined the following:
Current report
A decrease in the annual forecasted revenue growth rate of 1.0% would result in a 4.9% decrease to the current fair value of $14.4 million.
Current report
A decrease in the discount rate of 1.5% would result in a 8.3% increase to the current fair value of $14.4 million and an increase in the discount rate of 1.5% would result in a 6.9% decrease to the current fair value of $14.4 million.
Removed paragraphs (4)
Previous report
The Company believes distributor inventory as of June 29, 2024 averaged approximately three and one half weeks on hand compared to target wholesaler inventory levels of four to five weeks for the peak summer season. These lower than target wholesaler inventory levels were the result of not fully shipping into improving demand in the latter weeks of June. The Company is working to ensure shipments in July and August build inventories at wholesalers back to target levels.
Previous report
Income tax provision. The Company's effective tax rate of 28.6% increased from 27.5% in the prior year. This increase is due to an increase in non-deductible stock compensation expense.
Previous report
Twenty-Six Weeks Ended June 29, 2024 compared to Twenty-Six Weeks Ended July 1, 2023
Previous report
There were no material changes to the Company’s critical accounting policies during the three-month period ended June 29, 2024.
Reworded paragraphs (28)
Previous wording
The following is a discussion of the significant factors affecting the consolidated operating results, financial condition and liquidity and cash flows of the Company for the thirteen and twenty-six week periods ended June 29, 2024, as compared to the thirteen and twenty-six week period ended July 1, 2023. This discussion should be read in conjunction with the Management’s Discussion and Analysis of Financial Condition and Results of Operations, and the Consolidated Financial Statements of the Company and Notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 30, 2023.
Current wording
The following is a discussion of the significant factors affecting the consolidated operating results, financial condition and liquidity and cash flows of the Company for the thirteen and thirty-nine week periods ended September 28, 2024, as compared to the thirteen and thirty-nine week period ended September 30, 2023. This discussion should be read in conjunction with the Management’s Discussion and Analysis of Financial Condition and Results of Operations, and the Consolidated Financial Statements of the Company and Notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 30, 2023.
Previous wording
Net revenue. Net revenue decreased by $24.2 million, or 4.0%, to $579.1 million for the thirteen weeks ended June 29, 2024, as compared to $603.3 million for the thirteen weeks ended July 1, 2023 primarily as a result of lower shipment volume of $38.7 million, partially offset by price increases of $12.7 million and lower returns of $2.4 million.
Current wording
Net revenue. Net revenue increased by $3.9 million, or 0.6%, to $605.5 million for the thirteen weeks ended September 28, 2024, as compared to $601.6 million for the thirteen weeks ended September 30, 2023 primarily as a result of price increases of $11.2 million and lower returns of $3.2 million, partially offset by lower shipment volume of $11.4 million.
Previous wording
Volume. Total shipment volume decreased by 6.4% to 2,162,000 barrels for the thirteen weeks ended June 29, 2024, as compared to 2,310,000 barrels for the thirteen weeks ended July 1, 2023, reflecting decreases in the Company’s Truly, Dogfish Head, Samuel Adams, Hard Mountain Dew and Angry Orchard brands, partially offset by increases in its Twisted Tea and Sun Cruiser brands.
Current wording
Volume. Total shipment volume decreased by 1.9% to 2,243,000 barrels for the thirteen weeks ended September 28, 2024, as compared to 2,286,000 barrels for the thirteen weeks ended September 30, 2023, reflecting decreases in the Company’s Truly, Dogfish Head, Samuel Adams and Angry Orchard brands, partially offset by increases in its Twisted Tea, Sun Cruiser and Hard Mountain Dew brands.
Previous wording
Net revenue per barrel. Net revenue per barrel increased by 2.6% to $267.85 per barrel for the thirteen weeks ended June 29, 2024, as compared to $261.17 per barrel for the comparable period in 2023, primarily due to price increases and lower returns.
Current wording
Net revenue per barrel. Net revenue per barrel increased by 2.6% to $269.94 per barrel for the thirteen weeks ended September 28, 2024, as compared to $263.14 per barrel for the comparable period in 2023, primarily due to price increases and lower returns.
Previous wording
Cost of goods sold. Cost of goods sold was $144.61 per barrel for the thirteen weeks ended June 29, 2024, as compared to $142.49 per barrel for the thirteen weeks ended July 1, 2023. The 2024 increase in cost of goods sold of $2.12, or 1.5% per barrel was primarily due to unfavorable internal brewery performance and the related fixed cost absorption impact from lower volume of $7.1 million, or $3.28 per barrel, and inflationary impacts of $3.0 million, or $1.39 per barrel, partially offset by contract renegotiations and recipe optimization savings of $5.1 million, or $2.36 per barrel, and decreases in inventory obsolescence of $1.3 million, or $0.60 per barrel.
Current wording
Cost of goods sold. Cost of goods sold was $145.00 per barrel for the thirteen weeks ended September 28, 2024, as compared to $143.01 per barrel for the thirteen weeks ended September 30, 2023. The 2024 increase in cost of goods sold of $1.99, or 1.4% per barrel was primarily due to increases in inventory obsolescence of $7.6 million, or $3.39 per barrel, and inflationary impacts of $3.5 million, or $1.56 per barrel, partially offset by contract renegotiations and recipe optimization savings of $6.3 million, or $2.81 per barrel.
Previous wording
Inflationary impacts of $8.2 million consist primarily of increased internal brewery costs of $4.7 million and material costs of $3.5 million.
Current wording
Inflationary impacts of $3.5 million consist primarily of increased internal brewery costs of $1.8 million and increased material costs of $1.7 million.
Previous wording
Gross profit. Gross profit was $123.24 per barrel for the thirteen weeks ended June 29, 2024, as compared to $118.68 per barrel for the thirteen weeks ended July 1, 2023.
Current wording
Gross profit. Gross profit was $124.94 per barrel for the thirteen weeks ended September 28, 2024, as compared to $120.13 per barrel for the thirteen weeks ended September 30, 2023.
Previous wording
Advertising, promotional, and selling expenses. Advertising, promotional and selling expenses decreased by $5.1 million, or 3.4%, to $144.2 million for the thirteen weeks ended June 29, 2024, as compared to $149.4 million for the thirteen weeks ended July 1, 2023, primarily due to decreased freight to distributors of $2.8 million from lower rates and lower volumes. Brand and selling costs decreased $2.3 million, primarily due to lower brand media spend.
Current wording
Advertising, promotional, and selling expenses. Advertising, promotional and selling expenses decreased by $4.6 million, or 3.0%, to $148.0 million for the thirteen weeks ended September 28, 2024, as compared to $152.6 million for the thirteen weeks ended September 30, 2023, primarily due to decreased freight to distributors of $2.8 million from improved efficiencies and lower volumes. Brand and selling costs decreased $1.8 million, primarily due to lower salaries and benefit costs.
Previous wording
Advertising, promotional and selling expenses were 24.9% of net revenue, or $66.71 per barrel, for the thirteen weeks ended June 29, 2024, as compared to 24.8% of net revenue, or $64.66 per barrel, for the thirteen weeks ended July 1, 2023. This decrease per barrel is primarily due to advertising, promotional, and selling expenses decreasing at a lower rate than the decrease in shipments. The Company invests in advertising and promotional campaigns that it believes will be effective, but there is no guarantee that such investments will generate sales growth.
Current wording
Advertising, promotional and selling expenses were 24.4% of net revenue, or $65.98 per barrel, for the thirteen weeks ended September 28, 2024, as compared to 25.4% of net revenue, or $66.74 per barrel, for the thirteen weeks ended September 30, 2023. This decrease per barrel is primarily due to advertising, promotional, and selling expenses decreasing at a higher rate than the decrease in shipments. The Company invests in advertising and promotional campaigns that it believes will be effective, but there is no guarantee that such investments will generate sales growth.
Previous wording
General and administrative expenses. General and administrative expenses increased by $3.1 million, or 7.0%, to $48.0 million for the thirteen weeks ended June 29, 2024, as compared to $44.9 million for the thirteen weeks ended July 1, 2023, primarily due to inflation in salaries and benefits costs.
Current wording
General and administrative expenses. General and administrative expenses increased by $1.6 million, or 3.7%, to $43.8 million for the thirteen weeks ended September 28, 2024, as compared to $42.2 million for the thirteen weeks ended September 30, 2023, primarily due increased professional fees.
Previous wording
Impairment of brewery assets. Impairment of brewery assets of $3.4 million increased by $1.9 million from the comparable period of 2023, due to higher write-offs of equipment at Company-owned breweries.
Current wording
Impairment of brewery assets. Impairment of brewery assets of $0.02 million decreased by $1.9 million from the comparable period of 2023, due to lower write-offs of equipment at Company-owned breweries.
Previous wording
Net revenue. Net revenue decreased by $8.2 million, or 0.8%, to $1.005 billion for the twenty-six weeks ended June 29, 2024, as compared to $1.013 billion for the twenty-six weeks ended July 1, 2023, primarily as a result of lower shipment volume of $34.9 million, partially offset by price increases of $20.9 million and lower returns of $7.9 million.
Current wording
Net revenue. Net revenue decreased by $4.3 million, or 0.3%, to $1.611 billion for the thirty-nine weeks ended September 28, 2024, as compared to $1.615 billion for the thirty-nine weeks ended September 30, 2023, primarily as a result of lower shipment volume of $46.4 million, partially offset by price increases of $31.8 million and lower returns of $11.5 million.
Previous wording
Volume. Total shipment volume decreased by 3.4% to 3,754,000 barrels for the twenty-six weeks ended June 29, 2024, as compared to 3,899,000 barrels for the twenty-six weeks ended July 1, 2023, reflecting decreases in the Company’s Truly, Hard Mountain Dew, Samuel Adams, Dogfish Head and Angry Orchard brands, partially offset by increases in its Twisted Tea and Sun Cruiser brands.
Current wording
Volume. Total shipment volume decreased by 2.9% to 5,997,000 barrels for the thirty-nine weeks ended September 28, 2024, as compared to 6,175,000 barrels for the thirty-nine weeks ended September 30, 2023, reflecting decreases in the Company’s Truly, Hard Mountain Dew, Samuel Adams, Dogfish Head and Angry Orchard brands, partially offset by increases in its Twisted Tea and Sun Cruiser brands.
Previous wording
Net revenue per barrel. Net revenue per barrel increased by 2.7% to $267.75 per barrel for the twenty-six weeks ended June 29, 2024, as compared to $260.59 per barrel for the comparable period in 2023, primarily due to price increases and lower returns.
Current wording
Net revenue per barrel. Net revenue per barrel increased by 2.7% to $268.57 per barrel for the thirty-nine weeks ended September 28, 2024, as compared to $261.53 per barrel for the comparable period in 2023, primarily due to price increases and lower returns.
Previous wording
Cost of goods sold. Cost of goods sold was $147.13 per barrel for the twenty-six weeks ended June 29, 2024, as compared to $150.05 per barrel for the twenty-six weeks ended July 1, 2023. The 2024 decrease in cost of goods sold of $2.92, or 2.0%, per barrel was primarily due to contract renegotiations and recipe optimization savings of $10.4 million, or $2.77 per barrel, decreases in inventory obsolescence of $6.7 million, or $1.78 per barrel, favorable product mix effects of $5.5 million, or $1.46 per barrel and the non-recurring of 2023 contract settlement costs of $4.5 million, or $1.20 per barrel, partially offset inflationary impacts of $8.2 million, or $2.18 per barrel, and unfavorable internal brewery performance and the related fixed cost absorption impact from lower volume of $4.8 million, or $1.28 per barrel.
Current wording
Cost of goods sold. Cost of goods sold was $146.34 per barrel for the thirty-nine weeks ended September 28, 2024, as compared to $147.44 per barrel for the thirty-nine weeks ended September 30, 2023. The 2024 decrease in cost of goods sold of $1.10, or 0.7%, per barrel was primarily due to contract renegotiations and recipe optimization savings of $16.7 million, or $2.78 per barrel, partially offset by inflationary impacts of $11.7 million, or $1.95 per barrel.
Previous wording
Inflationary impacts of $3.0 million consist primarily of increased internal brewery costs of $3.1 million, partially offset by favorable material costs of $0.1 million.
Current wording
Inflationary impacts of $11.7 million consist primarily of increased internal brewery costs of $6.5 million and material costs of $5.2 million.
Previous wording
Gross profit. Gross profit was $120.62 per barrel for the twenty-six weeks ended June 29, 2024, as compared to $110.54 per barrel for the twenty-six weeks ended July 1, 2023.
Current wording
Gross profit. Gross profit was $122.23 per barrel for the thirty-nine weeks ended September 28, 2024, as compared to $114.09 per barrel for the thirty-nine weeks ended September 30, 2023.
Previous wording
Advertising, promotional, and selling expenses. Advertising, promotional and selling expenses decreased by $10.3 million, or 3.7%, to $264.5 million for the twenty-six weeks ended June 29, 2024, as compared to $274.8 million for twenty-six weeks ended July 1, 2023, primarily due to decreased freight to distributors of $6.4 million from lower rates and volumes. Brand investments decreased $3.9 million primarily due to lower brand media spend, partially offset by higher salaries and benefits costs.
Current wording
Advertising, promotional, and selling expenses. Advertising, promotional and selling expenses decreased by $14.9 million, or 3.5%, to $412.5 million for the thirty-nine weeks ended September 28, 2024, as compared to $427.4 million for thirty-nine weeks ended September 30, 2023, primarily due to decreased freight to distributors of $9.2 million from lower rates and volumes. Brand and selling costs decreased $5.7 million primarily due to lower consulting costs.
Previous wording
Advertising, promotional and selling expenses were 26.3% of net revenue, or $70.46 per barrel, for the twenty-six weeks ended June 29, 2024, as compared to 27.1% of net revenue, or $70.67 per barrel, for the twenty-six weeks ended July 1, 2023. This decrease per barrel is primarily due to advertising, promotional, and selling expenses decreasing at a lower rate than the decrease in shipments. The Company invests in advertising and promotional campaigns that it believes will be effective, but there is no guarantee that such investments will generate sales growth.
Current wording
Advertising, promotional and selling expenses were 25.6% of net revenue, or $68.78 per barrel, for the thirty-nine weeks ended September 28, 2024, as compared to 26.5% of net revenue, or $69.21 per barrel, for the thirty-nine weeks ended September 30, 2023. This decrease per barrel is primarily due to advertising, promotional, and selling expenses decreasing at a higher rate than the decrease in shipments. The Company invests in advertising and promotional campaigns that it believes will be effective, but there is no guarantee that such investments will generate sales growth.
Previous wording
General and administrative expenses. General and administrative expenses increased by $9.8 million, or 11.1%, to $98.4 million for the twenty-six weeks ended June 29, 2024, as compared to $88.6 million for the twenty-six weeks ended July 1, 2023, primarily due to higher salaries and benefits costs, resulting from Chief Executive Officer transition costs recorded in the first quarter and inflation costs.
Current wording
General and administrative expenses. General and administrative expenses increased by $11.4 million, or 8.7%, to $142.2 million for the thirty-nine weeks ended September 28, 2024, as compared to $130.8 million for the thirty-nine weeks ended September 30, 2023, primarily due to higher salaries and benefits costs, resulting from Chief Executive Officer transition costs recorded in the first quarter and inflation costs.
Previous wording
Impairment of brewery assets. Impairment of brewery assets of $3.7 million increased by $1.7 million from the comparable period of 2023, due to higher write-offs of equipment at Company-owned breweries.
Current wording
Impairment of brewery assets. Impairment of brewery assets of $3.8 million decreased by $0.2 million from the comparable period of 2023, due to lower write-offs of equipment at Company-owned breweries.
Previous wording
Income tax provision. The Company’s effective tax rate of 29.5% increased from 27.5% in the prior year. The increase is due to an increase in non-deductible stock compensation expense.
Current wording
Income tax provision. The Company’s effective tax rate of 30.3% increased from 28.4% in the prior year. The increased effective tax rate is due to higher non-deductible compensation primarily related to Chief Executive Officer transition costs.
Previous wording
Cash decreased to $219.3 million as of June 29, 2024 from $298.5 million as of December 30, 2023, primarily reflecting repurchases of the Company's Class A common stock, a note receivable issued, purchases of property, plant, and equipment, and payments of tax withholdings on stock-based payment awards and investment shares, partially offset by net cash provided by operating activities.
Current wording
Cash decreased to $255.6 million as of September 28, 2024 from $298.5 million as of December 30, 2023, primarily reflecting repurchases of the Company's Class A common stock, a note receivable issued, purchases of property, plant, and equipment, and payments of tax withholdings on stock-based payment awards and investment shares, partially offset by net cash provided by operating activities.
Previous wording
Cash provided by operating activities for the twenty-six weeks ended June 29, 2024 was comprised of net income of $64.9 million and non-cash items of $65.8 million, partially offset by net a net increase in operating assets and liabilities of $39.6 million. Cash provided by operating activities for the twenty-six weeks ended July 1, 2023 was comprised of a net income of $49.1 million and non-cash items of $56.3 million, partially offset by a net increase in operating assets and liabilities of $4.2 million. The decrease in cash provided by operating activities for the twenty-six weeks ended June 29, 2024 compared to July 1, 2023 is primarily due to lower inventory reduction compared to the prior year, partially offset by higher net income.
Current wording
Cash provided by operating activities for the thirty-nine weeks ended September 28, 2024 was comprised of net income of $98.5 million and non-cash items of $118.4 million, partially offset by a net increase in operating assets and liabilities of $9.9 million. Cash provided by operating activities for the thirty-nine weeks ended September 30, 2023 was comprised of net income of $94.4 million, non-cash items of $94.7 million, and a net decrease in operating assets and liabilities of $43.3 million. The decrease in cash provided by operating activities for the thirty-nine weeks ended September 28, 2024 compared to September 30, 2023 is primarily due to lower inventory reduction compared to the prior year, partially offset by higher net income.
Previous wording
The Company used $56.1 million in investing activities during the twenty-six weeks ended June 29, 2024, as compared to $34.6 million during the twenty-six weeks ended July 1, 2023. The increased in investing activity cash outflows is due to a $20.0 million note receivable issued. For both periods, capital investments were made mostly in the Company’s breweries to drive efficiencies and cost reductions and support product innovation and future growth.
Current wording
The Company used $72.7 million in investing activities during the thirty-nine weeks ended September 28, 2024, as compared to $47.1 million during the thirty-nine weeks ended September 30, 2023. The increase in investing activity cash outflows is due to a $20.0 million note receivable issued. For both periods, capital investments were made mostly in the Company’s breweries to drive efficiencies and cost reductions and support product innovation and future growth.
Previous wording
Cash used in financing activities was $114.2 million during the twenty-six weeks ended June 29, 2024, as compared to $39.3 million during the twenty-six weeks ended July 1, 2023. The $74.9 million increase in financing activity cash outflows in 2024 compared to 2023 is primarily due to higher repurchases of the Company's Class A common stock in the current period.
Current wording
Cash used in financing activities was $177.1 million during the thirty-nine weeks ended September 28, 2024, as compared to $55.1 million during the thirty-nine weeks ended September 30, 2023. The $122.0 million increase in financing activity cash outflows in 2024 compared to 2023 is primarily due to higher repurchases of the Company's Class A common stock in the current period.
Previous wording
During the period from December 31, 2023 through July 19, 2024, the Company repurchased and subsequently retired 416,811 shares of its Class A Common Stock for an aggregate purchase price of $127.0 million. As of July 19, 2024, the Company had repurchased a cumulative total of approximately 14.5 million shares of its Class A Common Stock for an aggregate purchase price of approximately $1.06 billion and had approximately $140 million remaining on the $1.2 billion stock repurchase expenditure limit set by the Board of Directors.
Current wording
During the period from December 31, 2023 through October 18, 2024, the Company repurchased and subsequently retired 647,728 shares of its Class A Common Stock for an aggregate purchase price of $190.9 million. On October 2, 2024, the Board of Directors authorized an increase in the share buyback expenditure limit set for the program from $1.2 billion to $1.6 billion. As of October 18, 2024, the Company had repurchased a cumulative total of approximately 14.7 million shares of its Class A Common Stock for an aggregate purchase price of approximately $1.1 billion and had approximately $476 million remaining on the $1.6 billion stock repurchase expenditure limit set by the Board of Directors.
Previous wording
The Company expects that its cash balance as of June 29, 2024 of $219.3 million, along with its projected future operating cash flow and its unused line of credit balance of $150.0 million, will be sufficient to fund future cash requirements. The Company’s $150.0 million credit facility has a term not scheduled to expire until December 16, 2027. As of the date of this filing, the Company was not in violation of any of its covenants to the lender under the credit facility.
Current wording
The Company expects that its cash balance as of September 28, 2024 of $255.6 million, along with its projected future operating cash flow and its unused line of credit balance of $150.0 million, will be sufficient to fund future cash requirements. The Company’s $150.0 million credit facility has a term not scheduled to expire until December 16, 2027. As of the date of this filing, the Company was not in violation of any of its covenants to the lender under the credit facility.