1812 Brewing Company Inc (KEGS)

[az_maverick]

Last year they averaged $3,277K per qtr. Through three qtr's they are averaging $3,281K per qtr. 4th qtr is usually the killer qtr for them and they said they are already up 12% from that qtr last year. I would then expect at least a final number very close to $14MM for the year.

They could obtain 38-39% overall margins for the year, which would leave $5,500,000 in gross margin for all S,G,&A expenses. They are currently trending to about $5,800,000 in S,G,&A which would lead to a small operating loss. When you net other income and tax liability refund, you are pretty much back to a break even for the year once again.

Tom can use the coming year to close down the one store (most likely a leased premises or non performer), merge the lines with Wisebuys, and trim the fat from the consolidation.