Monster Beverage Corporation (NASDAQ:MNST) Q4 2019 Earnings Conference Call - Final Transcript

Feb 27, 2020 • 05:00 pm ET

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Monster Beverage Corporation (NASDAQ:MNST) Q4 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good afternoon and welcome to the Monster Beverage Corporation Fourth Quarter and Full Year 2019 Conference Call. [Operator Instructions]

I would now like to turn the conference over to Mr. Rodney Sacks Chairman and CEO; and Mr. Hilton Schlosberg Vice President Vice Chairman President and CFO. Please go ahead.

Executive
Rodney C. Sacks

Hi. Thank you. Good afternoon ladies and gentlemen. Thanks for attending this call. I'm Rodney Sacks. Hilton Schlosberg Vice Chairman and President is with me as is Tom Kelly our Executive Vice President of Finance. Before we begin I'd 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 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 on February 28 2019 and our most recent quarterly report on Form 10-Q filed on November 7 2019 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 our non-GAAP measure of gross sales and certain expenditures which may be mentioned during the course of this call is provided in the notes and designated with asterisks in the condensed consolidated statements of income and other information attached to the earnings release dated February 27 2020. A copy of this information is also available on our website at monsterbevcorp.com in the Financial Information section. We are planning to leave some more time for questions on today's call and on subsequent calls.

With that in mind we will not repeat many of the numbers covered in our earnings release. Consumer beverage preferences and tastes continue to evolve at an increasing pace and we are endeavoring to address them through our ongoing innovation of new products. In the fourth quarter of 2019 net sales were $1.02 billion up 10.1% from $924.2 million in the fourth quarter of 2018. Adjusting the 2018 fourth quarter for advanced purchases made following our November 1 2018 price increase in the U.S. as well as foreign currency movements net sales for the 2019 fourth quarter would have been up 7.5%. Diluted earnings per share for the 2019 fourth quarter increased 9.7% to $0.47 from $0.43 in the fourth quarter of 2018. According to the Nielsen reports for the 13