monster energy drinks , equity, debt and subs.

Accuracy score :
97%

MONSTER BEVERAGE CORPORATION (MNST) 
 
Based in Corona, California, Monster Beverage Corporation is a holding company and conduct no operating business except through consolidated subsidiaries. 

As of Jan 2015, Monster held nearly 39%  of the $36 billion US energy drink market. Redbull holds a 43% market share. 
 
On June 12, 2015, Old Monster effected a holding company reorganization in connection with the The Coca-Cola Company Transaction by merging New Laser Merger Corp. with Old Monster, and the Company changed its name from New Laser Corporation to “Monster Beverage Corporation.” 
 
Immediately after that: 
1.    On June 12, 2015, The Coca-Cola Company (“TCCC”) purchased 34,040,534 newly issued shares representing 16,7% of Monster’s issued and outstanding shares of common stock (after giving effect to the issuance)  Total: $2,200,000,000 investment ($2.2 billion USD) giving the company a 12.9 billion USD total valuation)  
2.    The Company sold all non-energy drink business to TCCC. Recognized gain is $161,500,000. 
3.    The Company bought all global energy drink business from TCCC. 
4.    The Company and TCCC amended the distribution coordination agreements to distribute the Company’s energy products in most territories in the U.S. to members of TCCC’s distribution network.  (Monster now uses Coca Cola's distribution line) 
     
 
MNST does not directly manufacture products, but instead outsource the manufacturing process to third party bottlers and co-packers, situated throughout the United States and abroad. Company packs certain of products in a number of locations both domestically and internationally, to enable to produce products closer to the markets where they are sold, with the objective of reducing freight costs as well as transportation-related product damages. 
 
 
During the 2015 year the Company purchased 1.9 million shares of common stock at an average purchase price of $134.26 per share, for a total amount of $250.0 million (excluding broker commissions), under the September 2015 Repurchase Plan authorized by the Company’s Board of Directors. 
 
 
The company’s owned corporate headquarters are located at 1 Monster Way, Corona, California 92879, and consists of an approximately 141,000 square-foot, free standing, six-story building (Total properties worth about $97,000,000).  
 
During February 2016, the Company entered into an agreement to acquire approximately 49 acres of land, located in Rialto, CA, for a purchase price of approximately $39,000,000. 
 
Total properties:   $129,000,000 
 
Summary (from latest annual report 2015) 
?    Market Capital: $26,121,346,000 (last share price is 128.74 USD. Numbers of shares outstanding on February 4, 2016 was 202,919,837). 
?    Total stockholders’ equity: $4,809,410,000 up by $3,294,260,000 or 3.2 times (2014: $1,515,150,000), primarily thanks to issuance of common stock by $3,169,135,000 purchased by The Coca-Cola Company. 
?    Current liabilities $514,189,000 up by $158,473,000, or 45% from 2014 (2014: $355,716,000) primarily as a result of increase of income taxes payable by $100,814,000. 
?    Net sales $2,722,600,000 up by $257,700,000, or 10.5% from 2014 (2014: $2,464,900,000). An increase of ˜$204,000,000 is represented by Monster Energy® brand energy drinks thanks to increased sales by volume as a result of increased domestic and international consumer demand. 
?    Net income $546,733,000 up by $63,548,000 13% from 2014 (2014: $483,185,000). An increase less than net sales was primarily the result of the increased expenditures of $224,200,000 relating to the costs associated with terminating certain existing distributors. Positive impact on net income was gain of $161,500,000 on the disposal of Monster Non-Energy. 
?    Cash and cash equivalents of $2,175,417,000 up by $1,805,094,000 or 5.8 times from (2014: $370,323,000). The increase in cash flows provided by financing activities of $1,202,300,000 was primarily the result of the issuance of our common stock to TCCC during the year ended December 31, 2015 in connection with the TCCC Transaction. 
?    Working capital of $3,068,400,000 compared to $1,297,400,000 as of December 31, 2014, was primarily the result of cash received in the TCCC Transaction. 
 
 
MNST standalone subsidiaries 
Entity name, jurisdiction  
 

American Fruits & Flavors (AFF) (flavor company, acquired in Feb/2016 for 690 Million USD)
Hansen Beverage Company, Delaware (Original business of Monster Energy, sold to TCCC)
Hansen Junior Juice Company, Delaware (Original business of Monster Energy, sold to TCCC) 
Blue Sky Natural Beverage Co., Delaware (Acquired in 2000) 
Monster Racing, Inc., Delaware
 
 
Opinion about the company 
Fundamentally it is good company with a real chance to prosper thanks to synergies expected in connection with the The Coca-Cola Company $2,200,000,000 investment for 17% of the company giving the company a 12.9 billion USD total valuation) . However, the risk is that according to The TCCC Transaction, the company now derives virtually all of revenues from energy drinks, and competitive pressure in the energy drink category could adversely affect business and operating results.  

Monster Energy drinks utilizes Coca-Cola's distribution line.