After the market closed Feb. 27, Monster Beverage Corp. (NASDAQ:MNST) reported its mixed financial results for its fourth quarter and twelve-months ended Dec. 31, 2013.
Monster Beverage’s net income for the fourth quarter was $76.1 million, up 12 % from $68 million in the comparable 2012 quarter. However, the company’s 12-month net income was flat coming in at $338.7 million compared with $340 million for the 12 months ending 2012.
2013 Fourth Quarter
Here’s the full breakdown:
Gross sales for the 2013 fourth quarter increased 14.0 percent to $621.1 million from $545.0 million in the same period last year. Net sales for the three-months ended December 31, 2013 increased 14.7 percent to $540.8 million from $471.5 million a year ago.
Gross profit, as a percentage of net sales, for the 2013 fourth quarter was 51.2 percent, compared with 51.7 percent for the comparable 2012 quarter. The 2013 fourth quarter gross profit was impacted by certain inventory damages and reserves. Operating expenses for the 2013 fourth quarter increased to $142.4 million from $130.0 million in the same quarter last year.
Distribution costs as a percentage of net sales were 4.5 percent for the 2013 fourth quarter, compared with 4.7 percent in the same quarter last year.
Selling expenses as a percentage of net sales were 10.8 percent for the 2013 fourth quarter, compared with 12.5 percent in the same quarter a year ago.
General and administrative expenses for the 2013 fourth quarter were $59.6 million, or 11.0 percent of net sales, compared with $48.8 million, or 10.3 percent of net sales, for the corresponding quarter last year. Stock-based compensation (a non-cash item) was $7.2 million in the fourth quarter of 2013, compared with $6.8 million for the fourth quarter of 2012.
Operating income for the 2013 fourth quarter increased 18.3 percent to $134.8 million from $113.9 million in the comparable 2012 quarter.
The effective tax rate for the 2013 fourth quarter was 42.2 percent, compared with 39.1 percent in the same quarter last year. The increase in the effective tax rate was primarily the result of the establishment of a full valuation allowance against the deferred tax assets of certain foreign subsidiaries, as well as losses in certain foreign subsidiaries for which no tax benefit is recorded.
Net income for the 2013 fourth quarter increased 12.0 percent to $76.1 million from $68.0 million in the same quarter last year. Net income per diluted share increased 13.7 percent to $0.44 from $0.39 per diluted share in the 2012 comparable quarter.
Net sales for the Company's DSD segment for the 2013 fourth quarter increased 15.2 percent to $519.4 million from $451.0 million for the same period in 2012.
Gross sales to customers outside the United States rose to $137.9 million in the 2013 fourth quarter, compared with $115.2 million in the corresponding quarter in 2012.
During the 2013 fourth quarter, the Company purchased approximately 1.0 million shares of its common stock at an average purchase price of $56.98 per share pursuant to the share repurchase program previously authorized by the Board of Directors in April 2013.
2013 Fiscal Year
For the 2013 fiscal year, gross sales increased 9.0 percent to $2.6 billion from $2.4 billion a year earlier. Net sales for the year ended December 31, 2013 increased 9.0 percent to $2.2 billion from $2.1 billion a year ago.
Gross profit as a percentage of net sales was 52.2 percent for the year ended December 31, 2013, compared with 51.7 percent a year earlier.
Operating expenses for the year ended December 31, 2013 increased 16.5 percent to $600.0 million from $515.0 million a year ago. Operating income for the year ended December 31, 2013 increased 4.0 percent to $572.9 million from $550.6 million a year ago.
Net income for the 2013 fiscal year was $338.7 million, compared to $340.0 million a year ago. Net income per diluted share increased to $1.95 from $1.86 per diluted share for 2012.
Monster’s Humble Beginnings as a Penny Stock
While Monster’s results were disappointing to some analysts and shareholders, the company has come a long way since its days of being a penny stock.
On Dec. 29, 1995 Monster, then known as Hansen Natural, closed at 69 cents a share. On Feb. 6, 2014, Monster’s shares closed at 68.02 a share, up $1.37 from the closing price of $66.65 the previous day. Its volume was 1,586,263 shares, slightly higher than its three-month average of 1,586,263
Did you know for example that the super-hip, trendy beverage company is not a new company, but has been around since 1935? So what in the world happened, and how could a penny stock investor have recognized that this obscure company would one day evolve and change its name to Monster in 2012?
Part of the answer is being at the right place with the right product at the right time. For more than a decade energy drinks popularity has grown beyond anyone’s wildest dreams.
Energy Drink Consumption Growing Faster than Coffee and Soda
In 2012, Americans spend $8.3 billion on energy drinks, up 16.6% from the same period in 2011, according to data from Euromonitor. Over the last 10 years the energy-drink sector has been enjoying double-digit growth, according to Beverage Digest. If you had been an observant penny-stock investor, you might have noticed this trend when it began and invested heavily in Monster.
Still, with the mounting popularity of energy drinks, comes the reality of investigations and ultimately lawsuits and government regulation. While at this point none of the allegations against Monster specifically and energy drinks in general have been validated, there is always a possibility they will be. This is a risk factor that every investor should consider as part of his or her investment strategy.
On Feb. 27, MNST's share price closed at $ 71.16, up 16 cents from its closing price of $71.00 the previous day.
Find out what could be the best investor's move when it comes to MNST by getting the complete report here, or by cutting and pasting the following link in your Web browser:
http://www.sixfigurestockpicks.com/
General Growth Properties Announces Dividends
On Feb. 26, 2014, General Growth Properties Inc. (NYSE: GGP) announced its common and preferred stock dividends.
The retail property management company’s board of directors declared a first quarter common stock dividend of 15 cents per share payable on Apr. 30 to stockholders of record on Apr.15, , representing an increase of 1cent per share from the prior quarter.
It also declared a quarterly dividend on the 6.375% Series A Cumulative Redeemable Preferred Stock (NYSE: GGP PrA) of $0.3984 per share payable on Apr. 1 to stockholders of record on Mar. 1.
General growth property has been making some interesting strategic moves recently. On Feb. 10, the company put its money where its mouth when it purchased back 27,624,282 of its common shares from affiliates of Pershing Square Capital Management L.P. at $20.12 per share, or $556 million.
The transaction reduces General Growth Properties’ total diluted common shares outstanding to approximately 937 million shares. Some industry experts think buying back its stock was a good move considering that retail property values could be currently undervalued. This will quickly change if the economy starts to gain steam in 2014, which is exactly what some economists are predicting.
Penny Stock Made Good
The real-estate developer and property manager has restructured itself several times to adapt to ever-changing marketplace conditions and competition.
During the real-estate boom of the 1990s and early 2000s, the Chicago-based developer and manager of prime retail space, saw its stock skyrocket to $64.00 a share in March of 2007. But when the real estate market crashed, General Growth Properties was forced to file bankruptcy and its stock price fell to 59 cents a share on Feb. 27, 2009.
General Growth Properties has recovered from the depths of becoming a penny stock and is currently selling in the $20 range. If you had invested $1,000 in the company when it hit its low five years ago, that $1,000 would today be worth about $38,898.
But more importantly, the company has appeared to learn from its earlier mistakes. It is acting proactively, reacting to a retail marketplace that is being swallowed live by online merchants
Its latest annual year results prove this point beyond a doubt.
General Growth Properties Reports Full Year 2013 Results
On Feb 3, General Growth Properties Inc. (the "Company" or "GGP") (NYSE: GGP) reported results for the three and twelve months ended Dec. 31, 2013.
For the three months Dec. 31, 2013 Company Funds from Operations ("Company FFO") per share increased 17.0% to $0.36 per diluted share from $0.31 per diluted share in the prior year period. Company FFO increased 11.3% to $347 million from $311 million in the prior year period.
Company Earnings Before Interest, Taxes, Depreciation and Amortization ("Company EBITDA") increased 3.7% to $556 million from $536 million in the prior year period.
Comparable Net Operating Income ("Same Store NOI") increased 6.2% to $582 million from $548 million in the prior year period.
Net income attributable to GGP, which is impacted primarily by depreciation expense, provisions for impairment and a gain from change in control of investment properties, was $77 million, or $0.07 per diluted share, as compared to $32 million, or $0.04 per diluted share, in the prior year period.
For the 12 Months Ended December 31, 2013 Company FFO per share increased 18.2% to $1.16 per diluted share from $0.98 per diluted share in the prior year period. Company FFO increased 15.7% to $1,148 million from $992 million in the prior year period.
Company EBITDA increased 4.3% to $2,015 million from $1,932 million in the prior year period.
Same Store NOI increased 6.0% to $2,112 million from $1,993 million in the prior year period.
On Feb. 27, GGP's share price closed at $ 22.20, down 25 cents from its closing price of $22.45 the previous day.
Find out what could be the best investor's move when it comes to GGP by getting the complete report here, or by cutting and pasting the following link in your Web browser:
http://www.sixfigurestockpicks.com/
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