CORONA, Calif., May 7, 2015 (GLOBE NEWSWIRE) -- Monster Beverage Corporation (Nasdaq:MNST) today reported financial results for the first quarter ended March 31, 2015.
First Quarter Results
Gross sales for the 2015 first quarter were $710.2 million. Excluding acceleration of deferred revenue, gross sales for the 2015 first quarter increased by 9.2 percent to $670.4 million, as compared to $613.7 million in the same period last year. Net sales for the 2015 first quarter were $626.8 million. Excluding acceleration of deferred revenue, net sales for the 2015 first quarter increased by 9.5 percent to $587.0 million, as compared to $536.1 million in the same period last year.
Gross profit, as a percentage of net sales, for the 2015 first quarter, adjusted for the acceleration of deferred revenue, was 56.1 percent, compared with 53.5 percent for the comparable 2014 first quarter.
Net income for the 2015 first quarter was $4.4 million. Net income for the 2015 first quarter, excluding the acceleration of deferred revenue as well as distributor termination costs, on a tax affected basis, increased 13.9 percent to $108.5 million from $95.3 million in the same quarter last year. Net income per diluted share was $0.03 for the 2015 first quarter. Net income per diluted share, excluding the acceleration of deferred revenue as well as distributor termination costs, on a tax affected basis, increased 13.8 percent to $0.62 from $0.55 per diluted share in the comparable 2014 quarter.
Net sales for the Company's DSD segment were $605.8 million. Excluding acceleration of deferred revenue, net sales for the Company's DSD segment for the 2015 first quarter increased by 10.0 percent to $566.0 million, as compared to $514.4 million in the same period last year.
Long-Term Strategic Partnership with The Coca-Cola Company
In August 2014, Monster Beverage and The Coca-Cola Company entered into definitive agreements for a long-term strategic partnership to accelerate growth for both companies in the global energy drink category. The transaction, which is subject to customary closing conditions, is expected to close in the second quarter of 2015. In early February 2015, in accordance with its existing agreements with certain affected third-party distributors, the Company sent notices of termination to the applicable third-party distributors in the U.S., providing for the termination of their respective distribution agreements, to be effective at various dates beginning in March 2015.
As a result, the Company incurred termination obligations relating to such terminations in the amount of $206.0 million during the 2015 first quarter. Such termination costs have been expensed in full and are included in operating expenses for the 2015 first quarter. In addition, the Company recognized revenue of $39.8 million related to the acceleration of deferred revenue associated with the terminated distributors during the 2015 first quarter. View the full report here.
