Corona, CA - August 9, 2005 - Hansen Natural Corporation (NASDAQ:HANS) today reported record financial results, including sharp increases in sales and profits, for the second quarter and six months ended June 30, 2005.
Gross sales for the second quarter increased 79.4 percent to $102.5 million from $57.1 million a year earlier. Net sales for the second quarter increased 85.5 percent to $85.4 million from $46.1 million a year ago.
Operating income for the second quarter tripled to $25.4 million from $8.4 million a year ago. Net income for the second quarter tripled to $15.2 million, or $0.63 per diluted share on a post-split basis, from $5.1 million or $0.22 per diluted share on a post-split basis, last year.
Gross sales for the six months ended June 30, 2005 increased 84.3 percent to $175.5 million from $95.2 million a year earlier. Net sales for the first half of 2005 were up 88.0 percent to $145.5 million from $77.4 million a year ago.
Operating income for the six months ended June 30, 2005 advanced 232.6 percent to $40.1 million from $12.0 million a year ago. Net income for the 2005 year-to-date period increased 231.8 percent to $24.1 million, or $0.99 per diluted share on a post-split basis, from $7.3 million, or $0.31 per diluted share on a post-split basis, last year.
On July 18, 2005, the company announced a 2-for-1 split of Hansen Natural common stock, to be effected in the form of a 100% stock dividend, distributed via mail or electronically on or after August 8, 2005 to record holders of the company's common stock as of the close of business (EST) on August 1, 2005. It is anticipated that the stock will begin trading on a post-split basis today, August 9, 2005.
Rodney C. Sacks, chairman and chief executive officer, said the exceptional performance reflected record sales of Monster EnergyTM drinks, which includes low carbohydrate ("Lo-Carb") Monster EnergyTM drinks, as well as sales of Monster EnergyTM "Assault"TM energy drinks which were introduced in September 2004, increases in sales by volume, primarily of Hansen's® and Junior Juice® children's juice drinks in aseptic packaging and Hansen's® apple juice and juice blends. The increase in net sales was also attributable, to a lesser extent, to sales of Lost® Energy drinks, introduced in January 2004, JokerTM energy drinks, introduced in January 2005, and RumbaTM energy juice, introduced in December 2004.
The increase in net sales was partially offset by lower sales by volume of Hansen's® energy and functional drinks, including Deuce energy in 16-ounce cans, private label isotonic beverages, E2O Energy Water® drinks and smoothies in cans.
Gross profit as a percentage of net sales for the quarter increased to 52.6 percent, from 45.1 percent for the comparable 2004 quarter. Selling, general and administrative expense as a percentage of net sales decreased to 22.9 percent, from 26.8 percent in the previous year.
The company will host an investor conference call on August 9, 2005 at 10:30 a.m. Pacific Time (1:30 p.m. Eastern Time). The conference call will be open to all interested investors through a live audio web broadcast via the internet at www.hansens.com and www.fulldisclosure.com. For those who are not able to listen to the live broadcast, the call will be archived for approximately one year on both web sites.
Hansen Natural Corporation markets and distributes Hansen's® Natural Sodas, Signature Sodas, fruit juice Smoothies, Energy drinks, Energade® energy sports drinks, E20 Energy Water®, functional drinks, Sparkling Lemonades and Orangeades, multi-vitamin juice drinks in aseptic packaging, Junior Juice® juice, iced teas, lemonades and juice cocktails, apple juice, cider and juice blends, Blue Sky® brand carbonated beverages, Monster Energy brand energy drinks, Lost® Energy brand energy drinks, Rumba brand energy juice and Joker 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 and/or marketing 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 convenience and/or 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.
Rodney C. Sacks
Chairman and Chief Executive Officer
Hilton H. Schlosberg
Roger S. Pondel