Monster Beverage Reports Record 2012 Third Quarter Financial Results

Monster Beverage Reports Record 2012 Third Quarter Financial Results

Third Quarter Gross Sales Rise 15.4% to $632.3 million; Third Quarter Net
Income Increases 4.6% to $86.1 million

CORONA, Calif., Nov. 7, 2012 (GLOBE NEWSWIRE) -- Monster Beverage Corporation
(Nasdaq:MNST) today reported financial results for the third quarter ended
September 30, 2012.

Gross sales for the 2012 third quarter increased 15.4 percent to $632.3
million from $548.1 million in the same period last year.Net sales for the
three-months ended September 30, 2012 increased 14.2 percent to $541.9 million
from $474.7 million in the same quarter a year ago.

Gross profit, as a percentage of net sales, for the 2012 third quarter was
50.5 percent, compared with 52.7 percent for the comparable 2011 third
quarter.Operating expenses for the 2012 third quarter increased to $132.9
million from $118.2 million in the same quarter last year.

Distribution costs as a percentage of net sales were 4.4 percent for both the
2012 and 2011 third quarters.

Selling expenses as a percentage of net sales for the 2012 third quarter were
11.6 percent, compared with 12.6 percent in the same quarter a year ago.

General and administrative expenses for the 2012 third quarter were $46.3
million, compared with $37.4 million for the corresponding quarter last
year.Stock-based compensation (a non-cash item) was $7.9 million in the third
quarter of 2012, compared with $4.9 million for the third quarter of 2011.

Operating income for the 2012 third quarter increased 6.5 percent to $140.7
million from $132.1 million in the 2011 comparable quarter.

The effective tax rate for the 2012 third quarter was 39.0 percent, compared
with 37.2 percent in the same quarter last year.

Net income for the 2012 third quarter increased 4.6 percent to $86.1 million
from $82.4 million in the same quarter last year. Net income per diluted
share increased for the 2012 third quarter 6.1 percent to $0.47, from $0.44
per diluted share in the 2011 comparable quarter.

Net sales for the Company's DSD segment for the 2012 third quarter increased
15.5 percent to $516.3 million from $447.1 million for the same period in
2011.

Gross sales to customers outside the United States rose to $144.7 million in
the 2012 third quarter, from $116.8 million in the corresponding quarter in
2011.

During the 2012 third quarter, the Company purchased approximately 6.9 million
shares of its common stock at an average purchase price of $57.99 per share,
pursuant to the share repurchase program originally authorized by the Board of
Directors in October 2011 and subsequently increased in August 2012.Following
September 30, 2012, the Company purchased an additional 1.9 million shares at
an average purchase price of $54.99 per share, which exhausted the
availability under the share repurchase plan.

Rodney C. Sacks, Chairman and Chief Executive Officer, said: "We are pleased
to report another quarter of record results.The energy drink categories in
the United States and Europe continue to experience positive growth rates,
with the Monster Energy® brand increasing in excess of such category growth.
We are continuing to plan launches in new international markets later this
year and in 2013."He continued, "While the Company achieved less robust
growth in sales dollars than in previous quarters, gross sales for the Company
in October 2012 increased by approximately 28 percent over the same month last
year."He cautioned, however, that sales in a single month are often
disproportionately impacted by various factors, and, accordingly, should not
be imputed to or be regarded as indicative of sales growth for the full
quarter or any future period.

For the nine-months ended September 30, 2012, gross sales increased 23.3
percent to $1.828 billion from $1.483 billion for the comparable period a year
earlier.Net sales for the first nine months of 2012 increased 22.9 percent to
$1.589 billion from $1.293 billion for the same period of 2011.

Gross profit as a percentage of net sales was 51.7 percent for the first nine
months of 2012, compared with 52.6 percent for the same period in 2011.

Operating expenses for the nine-months ended September 30, 2012 increased to
$385.0 million from $327.0 million in the same period last year. Operating
income for the first nine months of 2012 increased 23.7 percent to $436.7
million from $353.0 million in the corresponding period in 2011.

Net income for the first nine months of 2012 rose 22.7 percent to $272.0
million, or $1.47 per diluted share, from $221.7 million, or $1.18 per diluted
share, for the same period last year.

Investor Conference Call

The Company will host an investor conference call today, November 7, 2012, at
2:00 p.m. Pacific Time (5:00 p.m. Eastern Time).The conference call will be
open to all interested investors through a live audio web broadcast via the
internet at www.monsterbevcorp.com in the "Events & Presentations"
section.For those who are not able to listen to the live broadcast, the call
will be archived for approximately one year on the website.

Monster Beverage Corporation

Based in Corona, California, Monster Beverage Corporation is a marketer and
distributor of energy drinks and alternative beverages. The Company markets
and distributes Monster Energy® brand energy drinks, Monster Energy Extra
Strength Nitrous Technology® brand energy drinks, Java Monster® brand
non-carbonated coffee + energy drinks, X-Presso Monster® brand non-carbonated
espresso energy drinks, M3® Monster Energy® Super Concentrate energy drinks,
Monster Rehab® non-carbonated rehydration energy drinks, Ubermonster® energy
drinks, Worx Energy® shots, and Peace Tea® iced teas, as well as Hansen's®
natural sodas, apple juice and juice blends, multi-vitamin juices, Junior
Juice® beverages, Blue Sky® beverages, Hubert's® Lemonades, Vidration® vitamin
enhanced waters, and PRE® Probiotic drinks.For more information, visit
www.monsterbevcorp.com.

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 the United
States of America ("GAAP") and should not be considered as an alternative to
net sales, which is determined in accordance with GAAP, and should not be used
alone as an indicator of operating performance in place of net sales.
Additionally, gross sales may not be comparable to similarly titled measures
used by other companies, as gross sales has been defined by our internal
reporting practices. In addition, gross sales may not be realized in the form
of cash receipts as promotional payments and allowances may be deducted from
payments received from certain customers.

Caution Concerning Forward-Looking Statements

Certain statements made in this announcement may constitute "forward-looking
statements" within the meaning of Section 27A of the Securities Act of 1933,
as amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, regarding the expectations of management with respect to our future
operating results and other future events including revenues and
profitability.Management 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: 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; 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 the
Company's reports filed with the Securities and Exchange Commission. The
Company's actual results could differ materially from those contained in the
forward-looking statements.The Company assumes no obligation to update any
forward-looking statements, whether as a result of new information, future
events or otherwise.

                               (tables below)



MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND OTHER INFORMATION

FOR THE THREE-AND NINE-MONTHS ENDED SEPTEMBER 30, 2012 AND 2011

(In Thousands, Except Per Share Amounts) (Unaudited)
                                                               
                                  Three-Months Ended  Nine-Months Ended
                                  September 30,       September 30,
                                  2012      2011      2012        2011
Gross sales, net of discounts and  $632,290 $548,069 $1,828,455 $1,483,180
returns*
Less: Promotional and other        90,350    73,360    239,270     189,907
allowances**
                                                               
Net sales                          541,940   474,709   1,589,185   1,293,273
                                                               
Cost of sales                      268,348   224,402   767,417     613,208
                                                               
Gross profit                       273,592   250,307   821,768     680,065
Gross profit margin as a           50.5%     52.7%     51.7%       52.6%
percentage of net sales
                                                               
Operating expenses                 132,907   118,217   385,026     327,039
Operating expenses as a percentage 24.5%     24.9%     24.2%       25.3%
of net sales
                                                               
Operating income                   140,685   132,090   436,742     353,026
Operating income as a percentage   26.0%     27.8%     27.5%       27.3%
of net sales
                                                               
Other income (expense):                                         
Interest and other income          331       (63)     255         564
(expense), net
Gain (loss) on investments and put 222       (799)    585         (850)
options, net
Total other income (expense)      553       (862)     840         (286)
                                                               
Income before provision for income 141,238   131,228   437,582     352,740
taxes
                                                               
Provision for income taxes         55,096    48,836    165,545     131,057
                                                               
Net income                         $86,142  $82,392  $272,037   $221,683
Net income as a percentage of net  15.9%     17.4%     17.1%       17.1%
sales
                                                               
Net income per common share:                                     
Basic                             $0.49    $0.47    $1.55      $1.25
Diluted                           $0.47    $0.44    $1.47      $1.18
                                                               
Weighted average number of shares
of common stock                                                
and common stock equivalents:
Basic                            175,026   175,952  175,347     176,916
Diluted                          183,899   186,640   185,365     187,164
                                                               
Case sales (in thousands)          54,611    46,277    156,532     125,231
(in 192-ounce case equivalents)
Average net sales per case         $9.92    $10.26   $10.15     $10.33

* 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 GAAP and should not be considered as an
alternative to net sales, which is determined in accordance with GAAP, and
should not be used alone as an indicator of operating performance in place of
net sales. Additionally, gross sales may not be comparable to similarly titled
measures used by other companies, as gross sales has been defined by our
internal reporting practices. In addition, gross sales may not be realized in
the form of cash receipts as promotional payments and allowances may be
deducted from payments received from certain customers.

**Although the expenditures described in this line item are determined in
accordance with GAAP and meet GAAP requirements, the disclosure thereof does
not conform with GAAP presentation requirements. Additionally, our definition
of promotional and other allowances may not be comparable to similar items
presented by other companies. Promotional and other allowances primarily
include consideration given to the Company's distributors or retail customers
including, but not limited to the following: (i) discounts granted off list
prices to support price promotions to end-consumers by retailers; (ii)
reimbursements given to the Company's distributors for agreed portions of
their promotional spend with retailers, including slotting, shelf space
allowances and other fees for both new and existing products; (iii) the
Company's agreed share of fees given to distributors and/or directly to
retailers for advertising, in-store marketing and promotional activities; (iv)
the Company's agreed share of slotting, shelf space allowances and other fees
given directly to retailers; (v) incentives given to the Company's
distributors and/or retailers for achieving or exceeding certain predetermined
sales goals; (vi) discounted or free products; (vii) contractual fees given to
the Company's distributors related to sales made by the Company direct to
certain customers that fall within the distributors' sales territories; and
(viii) commissions paid to our customers. The presentation of promotional and
other allowances facilitates an evaluation of their impact on the
determination of net sales and the spending levels incurred or correlated with
such sales. Promotional and other allowances constitute a material portion of
our marketing activities. The Company's promotional allowance programs with
its numerous distributors and/or retailers are executed through separate
agreements in the ordinary course of business. These agreements generally
provide for one or more of the arrangements described above and are of varying
durations, ranging from one week to one year.



MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

AS OF SEPTEMBER 30, 2012 AND DECEMBER 31, 2011

(In Thousands, Except Par Value) (Unaudited)
                                                              
                                                September 30,  December 31,
                                                 2012           2011
ASSETS                                                         
CURRENT ASSETS:                                                
Cash and cash equivalents                        $283,054     $359,331
Short-term investments                           307,654        411,282
Trade accounts receivable, net                   288,584        218,072
Distributor receivables                          669            669
Inventories                                      193,934        155,613
Prepaid expenses and other current assets        20,190         20,912
Prepaid income taxes                             18,424         370
Deferred income taxes                            16,428         16,428
Total current assets                            1,128,937      1,182,677
                                                              
INVESTMENTS                                      19,882         23,194
PROPERTY AND EQUIPMENT, net                      57,574         45,151
DEFERRED INCOME TAXES                            56,005         58,576
INTANGIBLES, net                                 52,851         48,396
OTHER ASSETS                                     3,673          4,405
Total Assets                                    $1,318,922    $1,362,399
                                                              
LIABILITIES AND STOCKHOLDERS' EQUITY                           
CURRENT LIABILITIES:                                           
Accounts payable                                 $152,449   $113,446
Accrued liabilities                              58,973         31,966
Accrued promotional allowances                   78,526         87,746
Deferred revenue                                 12,360         11,583
Accrued compensation                             11,897         10,353
Income taxes payable                             2,833          10,996
Total current liabilities                       317,038        266,090
                                                              
DEFERRED REVENUE                                 112,209        117,151
                                                              
STOCKHOLDERS' EQUITY:                                          
Common stock -- $0.005 par value; 240,000 shares
authorized; 202,661 shares issued and 171,355
outstanding as of September 30, 2012;198,729    1,013          994
shares issued and 174,277 outstanding as of
December 31, 2011
Additional paid-in capital                       262,805        229,301
Retained earnings                                1,440,681      1,168,644
Accumulated other comprehensive income (loss)    905           (1,547)
Common stock in treasury, at cost; 31,306 and
24,452 shares as of                              (815,729)      (418,234)
September 30, 2012 and December 31, 2011,
respectively
Total stockholders' equity                      889,675        979,158
Total Liabilities and Stockholders' Equity      $1,318,922 $1,362,399

CONTACT: Rodney C. Sacks
         Chairman and Chief Executive Officer
         (951) 739-6200
        
         Hilton H. Schlosberg
         Vice Chairman
         (951) 739-6200
        
         Roger S. Pondel / Judy Lin Sfetcu
         PondelWilkinson Inc.
         (310) 279-5980
 
Press spacebar to pause and continue. Press esc to stop.