CORONA, Calif.-(BUSINESS WIRE)-Aug. 14, 2003- Net Sales Increase 12.6 Percent for Six Months; Net Income Increases 55.2 Percent
Hansen Natural Corporation (Nasdaq:HANS) today reported record sales and profits for the second quarter ended June 30, 2003, reflecting continued sales growth in core beverage lines as well as from new product introductions.
Gross sales for the second quarter increased 7.3% to $35.1 million from $32.7 million a year earlier. Net sales for the second quarter increased 8.2% to $28.4 million from $26.3 million a year ago.
Operating income for the second quarter advanced 52.2% to $3.3 million, from $2.2 million a year ago. Net income for the second quarter increased 55.6% to $2.0 million, equal to $.19 per diluted share, from $1.3 million, or $.12 per diluted share, last year.
Gross sales for the six months ended June 30, 2003 increased 13.7% to $62.8 million from $55.2 million a year earlier. Net sales for the six months ended June 30, 2003 increased 12.6% to $50.5 million from $44.9 million a year ago.
Operating income for the six months ended June 30, 2003 advanced 49.9% to $4.4 million, from $3.0 million a year ago. Net income for the six months ended June 30, 2003 increased 55.2% to $2.6 million, equal to $.25 per diluted share, from $1.7 million, or $.16 per diluted share, last year.
Rodney C. Sacks, chairman and chief executive officer, said, “Our record sales and profit performance in the second quarter of 2003 reflect the strength of the Hansen’s brand as well as the company’s new Monster Energy(TM) drinks.
“Sales of Monster Energy(TM) drinks and Diet Red Energy drinks, as well as increased sales of natural sodas in cans and Junior Juice, were the principal contributors to the improved sales performance.”
Sacks noted that the sales increase was partially offset by lower sales of functional drinks, E2O Energy Water, soy smoothies, smoothies in cans and bottles, and Energade(R) energy sports drinks.
Gross profit as a percentage of net sales for the second quarter rose to 40.3% from 37.4% a year ago. Gross profit as a percentage of net sales for the six months ended June 30, 2003 rose to 39.1% from 37.1% a year ago.
Sacks said that sales of the company’s new Monster Energy(TM) drinks were ahead of plan and that the company continued to be optimistic about this new product line. He added that the Company is currently launching a low carbohydrate (“low-carb”) version of its Monster Energy(TM) drinks, as well as a new 16 oz. energy drink under the Hansen’s energy(R) Deuce(TM) brand name, in order to take advantage of the increase in popularity of low-carb beverages and foods and the increased demand for energy drinks in general.
Hansen Natural Corporation markets and distributes Hansen’s(R) Natural Sodas, Signature Sodas, fruit juice and soy 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, old fashioned apple juice, cider and juice blends, as well as nutritional bars, Blue Sky(R) brand carbonated beverages and Monster Energy(TM) brand energy drinks. The company’s subsidiary Hard e Beverage Co. markets and distributes Hard e malt beverages. 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 and optimism about continued growth of new product lines. 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. -0-
HANSEN NATURAL CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF NET INCOME
FOR THE THREE- AND SIX-MONTHS ENDED JUNE 30, 2003 AND 2002
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2003 2002 2003 2002
---- ---- ---- ----
GROSS SALES $35,059,970 $32,666,950 $62,755,845 $55,173,560
LESS: Discounts,
allowances
and promotional
payments 6,650,832 6,402,162 12,260,359 10,316,378
NET SALES 28,409,138 26,264,788 50,495,486 44,857,182
COST OF SALES 16,960,573 16,430,951 30,747,100 28,213,264
GROSS PROFIT 11,448,565 9,833,837 19,748,386 16,643,918
OPERATING EXPENSES:
Selling, general and
administrative 8,100,030 7,628,446 15,292,217 13,660,310
Amortization of
trademark license
and trademarks 10,817 12,896 21,233 25,672
Total operating
expenses 8,110,847 7,641,342 15,313,450 13,685,982
OPERATING INCOME 3,337,718 2,192,495 4,434,936 2,957,936
NET NON-OPERATING
EXPENSE 14,723 56,211 47,954 131,503
INCOME BEFORE PROVISION
FOR INCOME TAXES 3,322,995 2,136,284 4,386,982 2,826,433
PROVISION FOR
INCOME TAXES 1,345,811 865,201 1,776,727 1,144,705
NET INCOME $1,977,184 $1,271,083 $2,610,255 $1,681,728
NET INCOME PER COMMON SHARE:
Basic $0.19 $0.13 $0.26 $0.17
Diluted $0.19 $0.12 $0.25 $0.16
NUMBER OF COMMON SHARES USED
IN PER SHARE COMPUTATIONS:
Basic 10,253,203 10,053,003 10,221,700 10,051,948
Diluted 10,454,084 10,337,861 10,445,069 10,338,797
CONTACT: Hansen Natural Corporation Rodney C. Sacks, Chairman and Chief Executive Officer Hilton H. Schlosberg, Vice Chairman 909-739-6200 or PondelWilkinson MS&L Roger S. Pondel, 323-866-6060.