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SEGMENT INFORMATION
 3 Months Ended
Mar. 31, 2012
SEGMENT INFORMATION  
SEGMENT INFORMATION

15.                            SEGMENT INFORMATION

 

The Company has two reportable segments, namely Direct Store Delivery (“DSD”), whose principal products comprise energy drinks, and Warehouse (“Warehouse”), whose principal products comprise juice based and soda beverages.  The DSD segment develops, markets and sells products primarily through an exclusive distributor network, whereas the Warehouse segment develops, markets and sells products primarily direct to retailers. Corporate and unallocated amounts that do not relate to DSD or Warehouse segments have been allocated to “Corporate & Unallocated.”

 

The net revenues derived from the DSD and Warehouse segments and other financial information related thereto are as follows:

 

 

 

Three-Months Ended March 31, 2012

 

 

 

DSD

 

Warehouse

 

Corporate and
Unallocated

 

Total

 

Net sales

 

$

431,182

 

 

$

23,423

 

 

$

-

 

 

$

454,605

 

 

Contribution margin

 

149,092

 

 

2,157

 

 

-

 

 

151,249

 

 

Corporate and unallocated expenses

 

-

 

 

-

 

 

(24,964

)

 

(24,964

)

 

Operating income

 

 

 

 

 

 

 

 

 

 

126,285

 

 

Other income

 

100

 

 

-

 

 

246

 

 

346

 

 

Income before provision for income taxes

 

 

 

 

 

 

 

 

 

 

126,631

 

 

Depreciation and amortization

 

3,783

 

 

29

 

 

1,144

 

 

4,956

 

 

Trademark amortization

 

-

 

 

11

 

 

1

 

 

12

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three-Months Ended March 31, 2011

 

 

 

DSD

 

Warehouse

 

Corporate and
Unallocated

 

Total

 

Net sales

 

$

334,722

 

 

$

21,697

 

 

$

-

 

 

$

356,419

 

 

Contribution margin

 

110,075

 

 

(340

)

 

-

 

 

109,735

 

 

Corporate and unallocated expenses

 

-

 

 

-

 

 

(21,280

)

 

(21,280

)

 

Operating income

 

 

 

 

 

 

 

 

 

 

88,455

 

 

Other income

 

13

 

 

-

 

 

288

 

 

301

 

 

Income before provision for income taxes

 

 

 

 

 

 

 

 

 

 

88,756

 

 

Depreciation and amortization

 

2,545

 

 

17

 

 

1,019

 

 

3,581

 

 

Trademark amortization

 

-

 

 

11

 

 

1

 

 

12

 

 

 

Revenue is derived from sales to external customers.  Operating expenses that pertain to each segment are allocated to the appropriate segment.

 

Corporate and unallocated expenses were $25.0 million for the three-months ended March 31, 2012 and included $17.7 million of payroll costs, of which $6.6 million was attributable to stock-based compensation expense (see Note 12, “Stock-Based Compensation”), $4.7 million attributable to professional service expenses, including accounting and legal costs, and $2.6 million of other operating expenses.  Corporate and unallocated expenses were $21.3 million for the three-months ended March 31, 2011 and included $12.7 million of payroll costs, of which $3.8 million was attributable to stock-based compensation expense (see Note 12, “Stock-Based Compensation”), $5.2 million attributable to professional service expenses, including accounting and legal costs, and $3.4 million of other operating expenses. Certain items, including operating assets and income taxes, are not allocated to individual segments and therefore are not presented above.

 

Coca-Cola Refreshments, a customer of the DSD segment, accounted for approximately 30% of the Company’s net sales for both the three-months ended March 31, 2012 and 2011, respectively.

 

Net sales to customers outside the United States amounted to $79.2 million and $55.5 million for the three-months ended March 31, 2012 and 2011, respectively. Such sales were approximately 17.4% and 15.6% of net sales for the three-months ended March 31, 2012 and 2011, respectively.

 

The Company’s net sales by product line were as follows:

 

 

 

 

 

 

 

 

 

Three-Months Ended

 

 

March 31,

Product Line

 

2012

 

2011

Energy drinks

 

$

418,912

 

$

327,642

Non-carbonated (primarily juice based beverages and Peace Tea® iced teas)

 

24,252

 

18,944

Carbonated (primarily soda beverages)

 

7,661

 

7,269

Other

 

3,780

 

2,564

 

 

$

454,605

 

$

356,419