1 / 23

Monster Beverage Corp

Monster Beverage Corp. Founded in 1985 Previously known as Hansen Natural Corp Changed its name to Monster Beverage Corporation in Jan 2012 Headquartered in Corona, CA Takes up 1.4% of the market Gained volume in 2012 Competitors lost volume Two reportable segments

uriel-middleton
Download Presentation

Monster Beverage Corp

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Monster Beverage Corp • Founded in 1985 • Previously known as Hansen Natural Corp • Changed its name to Monster Beverage Corporation in Jan 2012 • Headquartered in Corona, CA • Takes up 1.4% of the market • Gained volume in 2012 • Competitors lost volume • Two reportable segments • DSD took up 95.6% of sales • Warehouse took up 4.4% of sales

  2. Monster Beverage Corp • Brands include: • Monster Energy • Hansen’s • Peace Tea • Worx Energy • Blue Sky

  3. Comparable Companies • 10k describes them as “alternative” beverage category • Combines non-carbonated RTD beverages with “new age” beverages • Top 3 Competitors control 88% of the market • The Coca-Cola Company • Dr. Pepper Snapple • PepsiCo • Monster Beverage

  4. Inventory Method

  5. Operating Leases

  6. Operating Leases Determine the discount rate Capital leases were not included with the operating leases Used cost of debt capital from Module 6 Step 1

  7. Operating Leases Compute the present value of future lease payments Step 2

  8. Operating Leases Adjust the balance sheet to include the present value from step 2 as both a lease asset and a lease liability Step 3

  9. Operating Leases Adjust the income statement to include depreciation and interest in lieu of rent expense Step 4

  10. Operating Leases Journal Entries

  11. Share-based Compensation $67.77 $66.66

  12. Share-based Compensation • 1) Value of options exercisable at beginning of year 11,043 ($66.66-$8.29)= $644,579.91

  13. Share-based Compensation • 2) Value of option exercisable at beginning of year using end of year prices 11,043 ($67.77-$9.38)= $644,800.77

  14. Share-based Compensation • 3) Estimated Value of exercised options 2,022 ($67.22-$10.51)= $80,748.57

  15. Share-based Compensation • 4) Value of options cancelled during year $197 ($67.22-$27.28)= $7,867.20

  16. Share-based Compensation • 5) Value of options exercisable at end of year 10,401 ($67.22-$9.38)= $601,541.84

  17. Share-based Compensation Effect of change in exercisable options 5. Value of options exercisable at end of year $601,541.84 - 2. Value of options exercisable at beg of year at end of year prices $644,800.77 $80,748.57 Effect of exercising & cancellation +3. Value of exercisable options +4. Value of cancelled options $7,867.20 $45,356.83 =6. Share based compensation

  18. Share-based Compensation • Adjustments • Increases beginning NFL by: $644,579.91 • Increase ending NFL by: $601,541.84 • Decrease EPAT by: $45,356.83 • Increase FEAT by: (2) – (1) - (3) – (4) = $(88,395) Expense due to exercise & cancellation Expense due to change in market price

  19. Share-based Compensation Journal Entries

  20. Takeaways & Concerns • Minimal adjustments (percent changes) from Operating Leases • Adjustments due to Share-based Compensation

  21. Questions?

  22. Sources Cited • Photos from Google images • Yahoo Finance: MNST • http://www.beverage-digest.com/pdf/top-10_2013.pdf

More Related