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News Release
2015 Third Quarter
Gross sales for the 2015 third quarter increased 16.8 percent to
Gross and net sales for the three-months ended
Gross profit, as a percentage of net sales, for the 2015 third quarter rose to 61.5 percent, from 53.8 percent for the comparable 2014 third quarter.
Operating expenses for the 2015 third quarter increased to
Distribution costs as a percentage of net sales were 3.5 percent for the 2015 third quarter, compared with 4.5 percent in the same quarter last year.
Selling expenses as a percentage of net sales for the 2015 third quarter were 10.7 percent, compared with 10.1 percent in the same quarter a year ago.
General and administrative expenses for the 2015 third quarter were
Operating income for the 2015 third quarter increased 53.5 percent to
The effective tax rate for the 2015 third quarter was 39.4 percent, compared with 35.6 percent in the same quarter last year. The increase in the effective tax rate was primarily due to the decrease in tax benefits relating to the domestic production deduction for the third quarter of 2015. In addition, the profits earned by certain foreign subsidiaries during the corresponding 2014 quarter had no related tax expense as a result of the prior establishment of valuation allowances on their deferred tax assets.
Net income for the 2015 third quarter increased 43.6 percent to
Net sales for the Company's Finished Products segment for the 2015 third quarter increased 15.5 percent to
Net sales for the Company's Concentrate segment for the 2015 third quarter were
Gross sales to customers outside
During the 2015 third quarter, the Company purchased approximately 2.9 million shares of its common stock at an average purchase price of
2015 Nine Months
For the nine-months ended
Gross profit as a percentage of net sales increased to 59.2 percent for the first nine months of 2015 from 54.2 percent for the comparable period in 2014.
Operating expenses for the nine-months ended
Net income for the first nine months of 2015 rose to
"Although we achieved another quarter of sales growth, distributor transitions and uncertainties in portions of our international non-Coca-Cola distribution network limited further revenue growth during the quarter. Changes in foreign currency exchange rates also adversely affected our results," Sacks added.
Investor Conference Call
The Company will host an investor conference call today,
Based in
Note Regarding Use of Non-GAAP Measures
Gross sales is used internally by management as an indicator of and to monitor operating performance, including sales performance of particular products, salesperson performance, product growth or declines and overall Company performance. The use of gross sales allows evaluation of sales performance before the effect of any promotional items, which can mask certain performance issues. We therefore believe that the presentation of gross sales provides a useful measure of our operating performance. Gross sales is not a measure that is recognized under accounting principles generally accepted in
Caution Concerning Forward-Looking Statements
Certain statements made in this announcement may constitute "forward-looking statements" within the meaning of the U.S. federal securities laws, as amended, regarding the expectations of management with respect to our future operating results and other future events including revenues and profitability. The Company cautions that these statements are based on management's current knowledge and expectations and are subject to certain risks and uncertainties, many of which are outside of the control of the Company, that could cause actual results and events to differ materially from the statements made herein. Such risks and uncertainties include, but are not limited to, the following: our ability to recognize benefits from The Coca-Cola Company transactions; unanticipated litigation concerning the Company's products; the current uncertainty and volatility in the national and global
economy; changes in consumer preferences; changes in demand due to both domestic and international economic conditions; activities and strategies of competitors, including the introduction of new products and competitive pricing and/or marketing of similar products; actual performance of the parties under the new distribution agreements; potential disruptions arising out of the transition of certain territories to new distributors; changes in sales levels by existing distributors; unanticipated costs incurred in connection with the termination of existing distribution agreements or the transition to new distributors; changes in the price and/or availability of raw materials; other supply issues, including the availability of products and/or suitable production facilities; product distribution and placement decisions by retailers; changes in governmental regulation; the imposition of new
and/or increased excise and/or sales or other taxes on our products; criticism of energy drinks and/or the energy drink market generally; our ability to satisfy all criteria set forth in any U.S. model energy drink guidelines; the impact of proposals to limit or restrict the sale of energy drinks to minors and/or persons below a specified age and/or restrict the venues and/or the size of containers in which energy drinks can be sold; political, legislative or other governmental actions or events, including the outcome of any state attorney general and/or government or quasi-government agency inquiries, in one or more regions in which we operate. For a more detailed discussion of these and other risks that could affect our operating results, see Monster's reports filed with the
| MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES | ||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND OTHER INFORMATION | ||||
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FOR THE THREE- AND NINE-MONTHS ENDED |
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| (In Thousands, Except Per Share Amounts) (Unaudited) | ||||
| Three-Months Ended | Nine-Months Ended | |||
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| 2015 | 2014 | 2015 | 2014 | |
| Net sales¹ |
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| Cost of sales | 291,143 | 294,052 | 848,191 | 851,274 |
| Gross profit¹ | 465,476 | 341,920 | 1,228,940 | 1,008,027 |
| Gross profit as a percentage of net sales | 61.5% | 53.8% | 59.2% | 54.2% |
| Operating expenses² | 174,038 | 152,013 | 725,205 | 453,443 |
| Operating expenses as a percentage of net sales | 23.0% | 23.9% | 34.9% | 24.4% |
| Gain on sale of the non-energy business | -- | -- | 161,470 | -- |
| Operating income¹,² | 291,438 | 189,907 | 665,205 | 554,584 |
| Operating income as a percentage of net sales | 38.5% | 29.9% | 32.0% | 29.8% |
| Interest income and other (expense), net | (3,362) | (1,038) | (3,144) | (707) |
| Income before provision for income taxes¹,² | 288,076 | 188,869 | 662,061 | 553,877 |
| Provision for income taxes | 113,502 | 67,269 | 254,070 | 196,023 |
| Income taxes as a percentage of income before taxes | 39.4% | 35.6% | 38.4% | 35.4% |
| Net income¹,² |
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| Net income as a percentage of net sales | 23.1% | 19.1% | 19.6% | 19.2% |
| Net income per common share: | ||||
| Basic |
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| Diluted |
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| Weighted average number of shares of common stock and common stock equivalents: | ||||
| Basic | 205,051 | 167,346 | 184,098 | 167,116 |
| Diluted | 208,094 | 174,270 | 188,131 | 174,016 |
| Case sales (in thousands) (in 192-ounce case equivalents) | 81,274 | 62,204 | 207,090 | 179,717 |
| Average net sales per case |
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¹Includes |
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²Includes |
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| MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES | ||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||
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AS OF |
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| (In Thousands, Except Par Value) (Unaudited) | ||
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| 2015 | 2014 | |
| ASSETS | ||
| CURRENT ASSETS: | ||
| Cash and cash equivalents |
|
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| Short-term investments | 1,544,710 | 781,134 |
| Accounts receivable, net | 407,771 | 280,203 |
| TCCC Transaction receivable | 125,000 | -- |
| Distributor receivables | 714 | 552 |
| Inventories | 159,691 | 174,573 |
| Prepaid expenses and other current assets | 25,742 | 19,673 |
| Intangibles held-for-sale, net | -- | 18,079 |
| Prepaid income taxes | 90,933 | 8,617 |
| Deferred income taxes | 155,369 | 40,275 |
| Total current assets | 3,750,647 | 1,693,429 |
| INVESTMENTS | 34,355 | 42,940 |
| PROPERTY AND EQUIPMENT, net | 94,727 | 90,156 |
| DEFERRED INCOME TAXES | -- | 54,106 |
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1,287,777 | -- |
| OTHER INTANGIBLE ASSETS, net | 428,201 | 50,748 |
| OTHER ASSETS | 8,031 | 7,496 |
| Total Assets |
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| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| CURRENT LIABILITIES: | ||
| Accounts payable |
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| Accrued liabilities | 67,933 | 40,271 |
| Accrued promotional allowances | 124,539 | 114,047 |
| Accrued distributor terminations | 7,654 | -- |
| Deferred revenue | 31,413 | 49,926 |
| Accrued compensation | 20,152 | 17,983 |
| Income taxes payable | 14,809 | 5,848 |
| Total current liabilities | 504,606 | 355,716 |
| DEFERRED REVENUE | 355,128 | 68,009 |
| DEFERRED INCOME TAXES | 89,447 | -- |
| STOCKHOLDERS' EQUITY: | ||
|
Common stock -- |
1,034 | 1,035 |
| Additional paid-in capital | 3,966,395 | 426,145 |
| Retained earnings | 1,256,121 | 2,330,510 |
| Accumulated other comprehensive loss | (20,851) | (11,453) |
|
Common stock in treasury, at cost; 4,057 and 39,282 shares as of |
(548,142) | (1,231,087) |
| Total stockholders' equity | 4,654,557 | 1,515,150 |
| Total Liabilities and Stockholders' Equity |
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CONTACT:Rodney C. Sacks Chairman and Chief Executive Officer (951) 739-6200Hilton H. Schlosberg Vice Chairman (951) 739-6200Roger S. Pondel /Judy Lin Sfetcu PondelWilkinson Inc. (310) 279-5980
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