Monster Beverage Corp Form 8-K Current Event Report Filed 2021
Total Page:16
File Type:pdf, Size:1020Kb
SECURITIES AND EXCHANGE COMMISSION FORM 8-K Current report filing Filing Date: 2021-02-25 | Period of Report: 2021-02-25 SEC Accession No. 0001104659-21-028257 (HTML Version on secdatabase.com) FILER Monster Beverage Corp Mailing Address Business Address 1 MONSTER WAY 1 MONSTER WAY CIK:865752| IRS No.: 471809393 | Fiscal Year End: 1231 CORONA CA 92879 CORONA CA 92879 Type: 8-K | Act: 34 | File No.: 001-18761 | Film No.: 21680637 909-739-6200 SIC: 2086 Bottled & canned soft drinks & carbonated waters Copyright © 2021 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): February 25, 2021 Monster Beverage Corporation (Exact name of registrant as specified in its charter) Delaware (State or other jurisdiction of incorporation) 001-18761 47-1809393 (Commission File Number) (IRS Employer Identification No.) 1 Monster Way Corona, California 92879 (Address of principal executive offices and zip code) (951) 739 - 6200 (Registrant’s telephone number, including area code) N/A (Former name or former address, if changed since last report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions : ¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) ¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) ¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) ¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Securities registered pursuant to Section 12(b) of the Act: Name of each exchange on which Title of each class Trading Symbol(s) registered Common Stock MNST Nasdaq Global Select Market Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). Copyright © 2021 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Emerging growth company ¨ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨ Item 2.02. Results of Operations and Financial Condition. On February 25, 2021, Monster Beverage Corporation (the “Company”) issued a press release relating to its financial results for the fourth quarter and year ended December 31, 2020, a copy of which is furnished as Exhibit 99.1 hereto. The press release did not include certain financial statements, related footnotes and certain other financial information that will be filed with the Securities and Exchange Commission as part of the Company’s Annual Report on Form 10-K. On February 25, 2021, the Company will conduct a conference call at 2:00 p.m. Pacific 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 Item 9.01. Financial Statements and Exhibits. (d) Exhibits Exhibit Press Release dated February 25, 2021. 99.1 Exhibit 104 The cover page from this Current Report on Form 8-K, formatted in iXBRL (Inline eXtensible Business Reporting Language). SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Monster Beverage Corporation Date: February 25, 2021 /s/ Hilton H. Schlosberg Hilton H. Schlosberg Vice Chairman of the Board of Directors and Copyright © 2021 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Co-Chief Executive Officer Copyright © 2021 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Exhibit 99.1 PondelWilkinson Inc. 2945 Townsgate Road, Suite 200 Westlake Village, CA 91361 Investor Relations T (310) 279 5980 Strategic Public Relations W www.pondel.com CONTACTS: Rodney C. Sacks Chairman and Co-Chief Executive Officer (951) 739-6200 Hilton H. Schlosberg Vice Chairman and Co-Chief Executive Officer (951) 739-6200 Roger S. Pondel / Judy Lin Sfetcu PondelWilkinson Inc. (310) 279-5980 MONSTER BEVERAGE REPORTS 2020 FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS, INCLUDING $165.1 MILLION NON-RECURRING TAX BENEFIT -- Record Fourth Quarter Net Sales Rise 17.6 Percent to $1.20 Billion -- -- Fourth Quarter Net Income Increases 85.0 percent to $471.7 Million (Including a Non-Recurring Tax Benefit of $165.1 Million) -- -- Fourth Quarter Net Income per Diluted Share Increases 87.5 percent to $0.88 per share -- Corona, CA – February 25, 2021 – Monster Beverage Corporation (NASDAQ: MNST) today reported financial results for the three- and twelve-months ended December 31, 2020. COVID-19 Pandemic The Company’s top priority continues to be the health, safety and well-being of its employees. Early in March 2020, the Company implemented global travel restrictions and work-from-home policies for employees who are able to work remotely. For those employees who are unable to work remotely, safety precautions have been instituted, which were developed and adopted in line with guidance from public health authorities and professional consultants. Throughout this period, the Company has engaged with its employees through on-going communications, on-line training and personal development opportunities to promote their well-being and motivation. The Company’s flavor manufacturing facilities, its co-packers, warehouses and shipment facilities, are all operating. Certain of the Company’s bottlers/distributors have implemented modifications to their call points and service levels, but the Company’s products remain generally available to consumers. In limited countries the operations of its bottlers/distributors have been more affected. Copyright © 2021 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Despite the ongoing impact of the COVID-19 pandemic, the Company achieved record fourth quarter net sales. While the Company’s performance in Europe, Middle East and Africa (“EMEA”) was solid in the fourth quarter, EMEA remained adversely affected by the COVID-19 pandemic. Since mid-March 2020, the (more) Monster Beverage Corporation 2-2-2 Company has seen a shift in consumer channel preferences and package configurations, including an increase in at-home consumption and a decrease in food service on-premise consumption. The Company’s sales in the 2020 second quarter were initially adversely affected as a result of a decrease in foot traffic in the convenience and gas channel (which is the Company’s largest channel) but improved sequentially from the latter half of the 2020 second quarter and throughout the 2020 third and fourth quarters. The Company’s e-commerce, club store, mass merchandiser and grocery and related business continued to increase in the fourth quarter, while its food service on-premise business, which is a small channel for the Company, remained challenged. Currently, the Company does not foresee a material impact on the ability of its co-packers to manufacture and its bottlers/distributors to distribute its products as a result of the COVID-19 pandemic. In addition, the Company is not experiencing significant raw material or finished product shortages, and its supply chain remains intact. The Company is continually addressing the increase in its aluminum can requirements given the Company’s volume growth and the current supply constraints in the aluminum can industry. As of December 31, 2020, the Company had $1.18 billion in cash and cash equivalents, $881.4 million in short- term investments and $44.3 million in long-term investments. Based on currently available information, the Company does not expect the COVID-19 pandemic to have a material impact on its liquidity. Fourth Quarter Results Net sales for the 2020 fourth quarter increased 17.6 percent to $1.20 billion, from $1.02 billion in the same period last year. Net sales for the 2020 fourth quarter were negatively impacted by $15.2 million related to product returns from our customers as a result of a European formulation issue with a limited number of products in Europe and a labeling issue concerning one product in Japan (the “Product Returns”). Net changes in foreign currency exchange rates had an unfavorable impact on net sales for the 2020 fourth quarter of $7.1 million. Net sales for the Company’s Monster Energy® Drinks segment, which primarily includes the Company’s Monster Energy® drinks and Reign Total Body Fuel® high performance energy drinks, increased 17.7 percent to $1.12 billion for the 2020 fourth quarter, from $953.2 million for the 2019 fourth quarter. Net sales for the Monster Energy® Drinks segment for the 2020 fourth quarter were negatively impacted by approximately $15.2 million related to the Product Returns. Net changes in foreign currency exchange rates had an unfavorable impact on net sales for the Monster Energy® Drinks segment of approximately $5.8 million for the 2020 fourth quarter. Net sales for the Company’s Strategic Brands segment, which primarily includes the various energy drink brands acquired from The Coca-Cola Company, as well as the Company’s affordable energy brands, increased 14.8 percent to $67.9 million for the 2020 fourth quarter, from $59.2 million in the 2019 fourth quarter.