Monster Beverage Corporation (NASDAQ:MNST) Q4 2014 Earnings Conference Call - Final Transcript
Feb 26, 2015 • 05:00 pm ET
Good day, ladies and gentlemen, and welcome to the Monster Beverage Corporation Fourth Quarter and Year-end 2014 Results Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions] As a reminder, this conference is being recorded.
I would now like to introduce your host for today's conference, Mr. Rodney Sacks, Chairman and CEO. Sir, you may begin.
Rodney C. Sacks
Good afternoon, ladies and gentlemen. Thank you for attending this call. I'm Rodney Sacks. Hilton Schlosberg, our Vice Chairman and President is with me today; as -- Tom Kelly, our Senior Vice President of Finance.
Before we begin, I would like to remind listeners that certain statements made during this call 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, and which are based on currently available information regarding the expectations of management with respect to revenues, profitability, future business, future events, financial performance and trends. Management cautions that these statements are based on our current knowledge and expectations and are subject to certain risks and uncertainties, many of which are outside the control of the company that may cause actual results to differ materially from the forward-looking statements made during this call.
Please refer to our filings with the Securities and Exchange Commission, including our most recent annual report on Form 10-K filed March 3, 2014, as well as our most recent report on Form 10-Q filed November 7, 2014, including the sections contained therein entitled risk factors and forward-looking statements for a discussion on specific risks and uncertainties that may affect our performance. The company assumes no obligation to update any forward-looking statements whether as a result of new information, future events or otherwise.
An explanation of the non-GAAP measure of gross sales and certain expenditures, which may be mentioned during the course of this call is provided in the notes designated with asterisks in the condensed consolidated statements of income and other information attached to the earnings release dated February 26, 2015. A copy of this information is also available on our website at monsterbevcorp.com in the Financial Information section. We reiterate that our products are safe. More than 13 billion Monster Energy drinks has been sold and safely consumed around the world over the past 13 years.
In August 2014, Monster Beverage and The Coca-Cola Company entered into a definitive agreements for a long-term strategic partnership that we believe will accelerate growth for Monster in the global Energy Drink category. Under the agreements, The Coca-Cola Company will acquire an approximate 16.7% ownership interest in Monster, following the issuance of shares to The Coca-Cola Company, and will transfer ownership with worldwide energy business to Monster, which in turn will transfer its nonenergy business to The Coca-Cola Company. Monster and The Coca-Cola Company will amend their current distribution coordination agreements to expand distribution