CONTACTS: Rodney C. Sacks
Chairman and Chief Executive Officer
(951) 739-6200
Hilton H. Schlosberg
Vice Chairman
951) 739-6200
Roger S. Pondel
PondelWilkinson Inc.
(310) 279-5980
HANSEN NATURAL CORPORATION REPORTS RECORD
THIRD QUARTER SALES AND PROFITS
-- Net Sales Double, Net Income More Than Triples --
Corona, CA - November 9, 2005 - Hansen Natural Corporation (NASDAQ:HANS) today
reported record sales and profits for the third quarter ended September 30,
2005.
Gross sales for the 2005 third quarter increased 88.3% to $126.4 million
from $67.1 million a year earlier. Net sales for the third quarter doubled to
$105.4 million from $52.6 million a year ago.
Operating income for the 2005 third quarter advanced 238.3% to $33.6
million from $9.9 million a year ago. Net income for the third quarter increased
249.1% to $20.2 million, or $0.83 per diluted share, from $5.8 million, or $0.24
per diluted share, last year.
Gross sales for the nine months ended September 30, 2005 rose 85.9% to
$301.8 million from $162.3 million a year earlier. Net sales for the nine months
ended September 30, 2005 were up 93.0% to $250.9 million from $130.0 million a
year earlier.
Operating income for the nine months ended September 30, 2005 advanced
235.2% to $73.7 million from $22.0 million a year ago. Net income for the first
nine months of 2005 increased 239.5% to $44.3 million, or $1.84 per diluted
share, from $13.1 million, or $0.56 per diluted share, last year.
(more)
Gross profit as a percentage of net sales for the 2005 third quarter
increased to 52.5% from 45.2% for the comparable 2004 quarter. Gross profit as a
percentage of net sales for the nine months ended September 30, 2005 rose to
52.1% from 45.0% a year ago.
Rodney C. Sacks, chairman and chief executive officer, said, "Our continued
exceptional performance reflects the company's growing position in the energy
drink market. Consumer demand continues to grow for Monster EnergyTM drinks,
which include Lo-Carb Monster EnergyTM drinks, Monster EnergyTM "Assault"TM
drinks, (introduced in September 2004) and Monster Energy(tm) Khaos drinks
(introduced in August 2005). All of these products contributed significantly to
the increase in sales."
Sacks said that the net sales increase also reflects higher sales of
Lost(r) energy drinks (introduced in January 2004), along with Hansen's(r) apple
juice and juice blends, sales of JokerTM energy drinks (introduced in January
2005), and RumbaTM energy juice (introduced in December 2004), as well as
increased sales of Hansen's(r) children's juice drinks in aseptic packaging.
The sales increase was partially off-set by lower sales primarily of
smoothies in cans, natural sodas and Hansen's(r) energy and functional drinks.
Hansen Natural Corporation markets and distributes Hansen's(r) Natural
Sodas, Signature Sodas, fruit juice Smoothies, Energy drinks, Energade(r) energy
sports drinks, E20 Energy Water(r), functional drinks, Sparkling Lemonades and
Orangeades, multi-vitamin juice drinks in aseptic packaging, Junior Juice(r)
juice, iced teas, lemonades and juice cocktails, apple juice, cider and juice
blends, Blue Sky(r) brand carbonated beverages and Monster Energy(tm) brand,
Lost(tm) Energy brand and Joker(tm) Energy brand energy drinks. Hansen can be
found on the Web at www.hansens.com.
Certain statements made in this announcement 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, regarding the expectations of management with respect to revenues and
profitability. Management cautions that these statements are qualified by their
terms/or important factors, many of which are outside of the control of the
company, that could cause actual results and events to differ materially from
the statements made herein, including, but not limited to, the following:
Changes in consumer preferences, changes in demand that are weather related,
particularly in areas outside of California, competitive pricing pressures,
changes in the price and/or availability of raw materials for the company's
products, the availability of production and/or suitable facilities, the
marketing efforts of the distributors of the company's products, most of which
distribute products that are competitive with the products of the company, the
introduction of new products, as well as unilateral decisions that may be made
by grocery chain stores, specialty chain stores, club stores and other customers
to discontinue carrying all or any of the company's products that they are
carrying at any time. Management further notes that the company's plans and
results may be affected by any change in the availability of the company's
credit facilities and the actions of its creditors.
(table below)
HANSEN NATURAL CORPORATION
Consolidated Statements of Income
For the Three and Nine Months Ended September 30, 2005 and 2004
Three Months Ended Nine Months Ended
September 30, September 30,
---------------------------------- -----------------------------------
2005 2004 2005 2004
----------------- ---------------- ---------------- ----------------
GROSS SALES, net of $ 126,384,787 $ 67,128,607 $ 301,846,541 $ 162,337,851
discounts & returns
LESS: Promotional and
other allowances 20,963,333 14,487,130 50,970,260 32,334,048
----------------- ---------------- ---------------- ----------------
NET SALES 105,421,454 52,641,477 250,876,281 130,003,803
COST OF SALES 50,077,785 28,832,269 120,276,216 71,527,845
----------------- ---------------- ---------------- ----------------
GROSS PROFIT 55,343,669 23,809,208 130,600,065 58,475,958
OPERATING EXPENSES:
Selling, general and
administrative 21,752,406 13,865,099 56,902,380 36,443,831
Amortization of trademark 16,008 19,278 44,092 58,643
----------------- ---------------- ---------------- ----------------
Total operating expenses 21,768,414 13,884,377 56,946,472 36,502,474
----------------- ---------------- ---------------- ----------------
OPERATING INCOME 35,575,255 9,924,831 73,653,593 21,973,484
NET NONOPERATING
INCOME (EXPENSE) 323,452 (8,104) 694,846 (27,152)
----------------- ---------------- ---------------- ----------------
INCOME BEFORE
PROVISION FOR
INCOME TAXES 33,898,707 9,916,727 74,348,439 21,946,332
----------------- ---------------- ---------------- ----------------
PROVISION FOR
INCOME TAXES 13,653,339 4,118,079 30,012,660 8,886,254
----------------- ---------------- ---------------- ----------------
NET INCOME $ 20,245,368 $ 5,798,648 $ 44,335,779 $ 13,060,078
================= ================ ================ ================
NET INCOME PER COMMON SHARE:
Basic $ 0.92 $ 0.27 $ 2.01 $ 0.62
================= ================ ================ ================
Diluted $ 0.83 $ 0.24 $ 1.84 $ 0.56
================= ================ ================ ================
NUMBER OF COMMON SHARES USED
IN PER SHARE COMPUTATIONS:
Basic 22,119,949 21,632,314 22,008,204 21,182,718
================= ================ ================ ================
Diluted 24,334,342 23,685,608 24,127,346 23,472,094
================= ================ ================ ================
HANSEN NATURAL CORPORATION
Condensed Consolidated Balance Sheets
As of September 30, 2005 and December 31, 2004
(Unaudited)
September 30, December 31,
2005 2004
------------------- -----------------
ASSETS
------
CURRENT ASSETS:
Cash and cash equivalents $ 41,282,143 $ 3,676,119
Short-term investments 8,651,544 17,300,000
Accounts receivable (net of allowance for doubtful accounts,
sales returns and cash discounts of $1,284,999 in 2005 and
$1,252,101 in 2004 and reserve for promotional allowances of
$8,853,753 in 2005 and $6,269,744 in 2004) 34,418,030 12,650,055
Inventories, net 28,856,129 22,406,054
Prepaid expenses and other current assets 645,273 638,967
Prepaid income taxes 3,513,671
Deferred income tax asset 5,107,676 3,708,942
------------------- -----------------
Total current assets 122,474,466 60,380,137
PROPERTY AND EQUIPMENT, net 3,719,187 2,964,064
INTANGIBLE AND OTHER ASSETS:
Trademarks (net of accumulated amortization of
$263,356 in 2005 and $219,264 in 2004) 18,411,080 18,351,804
Deposits and other assets 736,479 326,312
------------------- -----------------
Total intangible and other assets 19,147,559 18,678,116
------------------- -----------------
$ 145,341,212 $ 82,022,317
=================== =================
LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------
CURRENT LIABILITIES:
Accounts payable $ 29,036,921 $ 14,542,753
Accrued liabilities 2,680,959 1,582,968
Accrued compensation 2,372,357 1,831,627
Current portion of long-term debt 717,792 437,366
Income taxes payable 346,449
------------------- -----------------
Total current liabilities 34,808,029 18,741,163
LONG-TERM DEBT, less current portion 13,143 146,486
DEFERRED INCOME TAX LIABILITY 5,264,649 4,563,439
COMMITMENTS AND CONTINGENCIES - -
SHAREHOLDERS' EQUITY:
Common stock - $0.005 par value; 30,000,000 shares authorized;
22,575,146 shares issued, 22,161,624 outstanding in 2005;
11,119,864 shares issued, 10,913,013 outstanding in 2004 112,876 55,599
Additional paid-in capital 18,160,907 15,813,541
Retained earnings 87,796,153 43,516,634
Common stock in treasury, at cost; 413,522 shares in 2005
and 206,761 shares in 2004 (814,545) (814,545)
------------------- -----------------
Total shareholders' equity 105,255,391 58,571,229
------------------- -----------------
$ 145,341,212 $ 82,022,317
=================== =================