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Actionable news in MNST: Monster Beverage Corporation,

Monster Beverage: 1880 Century Park East, Suite 350

The following excerpt is from the company's SEC filing.

Los Angeles, CA 90067

Investor Relations

(310) 279 5980

Strategic Public Relations

(310) 279 5988

www.pondel.com

RELEASE

CONTACTS:

Rodney C. Sacks

Chairman and Chief Executive Officer

(951) 739-6200

Hilton H. Schlosberg

Vice Chairman

Roger S. Pondel / Judy Lin Sfetcu

PondelWilkinson Inc.

(310) 279-5980

MONSTER BEVERAGE REPORTS 2015 THIRD QUARTER FINANCIAL RESULTS

--Third Quarter Net Sales Rise 19.0% to $756.6 million;

Net Income Increases 43.6% to $174.6 million--

Corona, CA

November 5, 2015 Monster Beverage Corporation (NASDAQ:MNST) today reported financial results for the third quarter and nine months ended September 30, 2015.

2015 Third Quarter

Gross sales for the 2015 third quarter increased 16.8 percent to $862.4 million from $738.1 million in the same period last year. Net sales for the 2015 third quarter increased 19.0 percent to $756.6 million from $636.0 million in the same period last year. Unfavorable currency exchange rates had the effect of reducing gross sales by approximately $34.1 million and net sales by approximately $28.6 million in the 2015 third quarter.

Gross and net sales for the three-months ended September 30, 2015 were impacted by advance purchases made by customers due to a pre-announced price increase effective August 31, 2015 on certain Monster Energy® brand energy drinks. The Company estimates that gross and net sales for the three-months ended September 30, 2015 were increased by approximately $12.0 million and $11.0 million respectively, as a result of such advance purchases.

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 $174.0 million from $152.0 million in the same quarter last year.

(more)

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 $67.0 million, or 8.8 percent of

net sales, compared with $58.7 million, or 9.2 percent of net sales, for the corresponding 2014 quarter

. Stock-based compensation (a non-cash item) was $8.9 million in the 2015 third quarter, compared with $7.4 million in the third quarter of 2014.

Operating income for the 2015 third quarter increased 53.5 percent to $291.4 million from $189.9 million in the 2014 comparable quarter.

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 $174.6 million from $121.6 million in the same quarter last year. Net income per diluted share increased 20.2 percent to $0.84, from $0.70 in the 2014 comparable quarter.

Net sales for the Companys Finished Products segment for the 2015 third quarter increased 15.5 percent to $686.7 million from $594.3 million for the same period in 2014.

Net sales for the Companys Concentrate segment for the 2015 third quarter were $69.9 million. There were no corresponding sales in the comparable 2014 quarter.

Gross sales to customers outside the United States increased to $207.8 million in the 2015 third quarter, from $173.2 million in the corresponding quarter in 2014. Net sales to customers outside the United States rose to $170.6 million in the 2015 third quarter, from $136.3 million in the corresponding quarter in 2014.

During the 2015 third quarter, the Company purchased approximately 2.9 million shares of its common stock at an average purchase price of $134.43 per share. Purchases were made under the share repurchase program authorized by the Board of Directors in April 2013, which has been exhausted, as well as under the new $500.0 million share repurchase program announced in September 2015.

2015 Nine Months

For the nine-months ended September 30, 2015, gross sales rose to $2.4 billion from $2.1 billion for the comparable period a year earlier. Net sales for the first nine months of 2015 increased to $2.1 billion from $1.9 billion in the same period in 2014.

Gross profit as a percentage of net sales increased to 59.2 percent for the first nine months of 2015 from 54.2...


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