Gross sales for the 2011 third quarter increased 25.0 percent to
Gross profit, as a percentage of net sales, for the 2011 third quarter was 52.7 percent, compared with 51.9 percent for the comparable 2010 quarter. Operating expenses for the 2011 third quarter increased to
Distribution costs as a percentage of net sales were 4.4 percent for the 2011 third quarter, compared with 4.5 percent in the same quarter last year.
Selling expenses as a percentage of net sales for the 2011 third quarter were 12.6 percent, compared with 11.0 percent in the same quarter a year ago.
General and administrative expenses for the 2011 third quarter were
Operating income for the 2011 third quarter increased 22.8 percent to
The effective tax rate for the 2011 third quarter was 37.2 percent, compared with 38.1 percent in the same quarter last year.
Net income for the 2011 third quarter increased 23.9 percent to
Net sales for the Company's DSD segment for the 2011 third quarter increased 25.3 percent to
Gross sales to customers outside
During the 2011 third quarter the Company purchased 1.4 million shares of its common stock at an average purchase price of
For the nine-months ended
Gross profit as a percentage of net sales was 52.6 percent for the first nine months of 2011, compared with 52.4 percent for the same period last year.
Operating expenses for the nine-months ended
Net income for the first nine months of 2011 was
Investor Conference Call
The Company will host an investor conference call today,
Based in
Note Regarding Use of Non-GAAP Measures
Gross sales, although used internally by management as an indicator of operating performance, should not be considered as an alternative to net sales, which is determined in accordance with accounting principles generally accepted in
Caution Concerning Forward-Looking Statements
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 our future operating results and other future events including revenues and profitability. Management cautions that these statements are based on management's current knowledge and expectations and are subject to certain risks and uncertainties, 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. Such risks and uncertainties include, but are not limited to, the following: the current uncertainty and volatility in the national and global economy; changes in consumer preferences; changes in demand
due to both domestic and international economic conditions; activities and strategies of competitors, including the introduction of new products and competitive pricing and/or marketing of similar products; potential distribution disruptions and/or decline in sales arising out of the termination and/or appointment of domestic and/or international distributors; changes in the price and/or availability of raw materials; other supply issues, including the availability of products and/or suitable production facilities; product distribution and placement decisions by retailers; changes in governmental regulation; the imposition of new and/or increased taxes on our products; political, legislative or other governmental actions or events in one or more regions in which we operate. For a more detailed discussion of these and other risks that could affect our operating results, see the Company's
reports filed with the
(tables below)
HANSEN NATURAL CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND OTHER INFORMATION FOR THE THREE-AND NINE-MONTHS ENDED (In Thousands, Except Per Share Amounts) (Unaudited) |
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Three-Months Ended | Nine-Months Ended | |||
|
|
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2011 | 2010 | 2011 | 2010 | |
Gross sales, net of discounts and returns* | $ 548,069 | $ 438,585 | $ 1,483,180 | $ 1,124,449 |
Less: Promotional and other allowances** | 73,360 | 57,119 | 189,907 | 139,172 |
Net sales | 474,709 | 381,466 | 1,293,273 | 985,277 |
Cost of sales | 224,402 | 183,540 | 613,208 | 469,447 |
Gross profit | 250,307 | 197,926 | 680,065 | 515,830 |
Gross profit margin as a percentage of net sales | 52.7% | 51.9% | 52.6% | 52.4% |
Operating expenses | 118,217 | 90,371 | 327,039 | 247,813 |
Operating expenses as a percentage of net sales | 24.9% | 23.7% | 25.3% | 25.2% |
Operating income | 132,090 | 107,555 | 353,026 | 268,017 |
Operating income as a percentage of net sales | 27.8% | 28.2% | 27.3% | 27.2% |
Other income (expense): | ||||
Interest and other income (expense), net | (63) | 541 | 564 | 1,983 |
Loss on investments and put options, net | (799) | (727) | (850) | (864) |
Total other income (expense) | (862) | (186) | (286) | 1,119 |
Income before provision for income taxes | 131,228 | 107,369 | 352,740 | 269,136 |
Provision for income taxes | 48,836 | 40,873 | 131,057 | 106,239 |
Net income | $ 82,392 | $ 66,496 | $ 221,683 | $ 162,897 |
Net income as a percentage of net sales | 17.4% | 17.4% | 17.1% | 16.5% |
Net income per common share: | ||||
Basic | $ 0.94 | $ 0.75 | $ 2.51 | $ 1.84 |
Diluted | $ 0.88 | $ 0.72 | $ 2.37 | $ 1.75 |
Weighted average number of shares of common stock and common stock equivalents: |
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Basic | 87,976 | 88,369 | 88,458 | 88,434 |
Diluted | 93,320 | 92,865 | 93,582 | 92,915 |
Case sales (in thousands) (in 192-ounce case equivalents) |
46,277 | 37,856 | 125,231 | 97,922 |
Average net sales price per case | $ 10.26 | $ 10.08 | $ 10.33 | $ 10.06 |
*Gross sales, although used internally by management as an indicator of operating performance, should not be considered as an alternative to net sales, which is determined in accordance with accounting principles generally accepted in
** Although the expenditures described in this line item are determined in accordance with GAAP and meet GAAP requirements, the disclosure thereof does not conform with GAAP presentation requirements. Additionally, the presentation of promotional and other allowances may not be comparable to similar items presented by other companies. The presentation of promotional and other allowances facilitates an evaluation of the impact thereof on the determination of net sales and illustrates the spending levels incurred to secure such sales. Promotional and other allowances constitute a material portion of our marketing activities.
HANSEN NATURAL CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS AS OF (In Thousands, Except Par Value) (Unaudited) |
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September 30, 2011 |
December 31, 2010 |
|
ASSETS | ||
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 287,157 | $ 354,842 |
Short-term investments | 412,255 | 244,649 |
Trade accounts receivable, net | 139,033 | 101,222 |
Distributor receivables | 512 | 413 |
Inventories | 164,481 | 153,241 |
Prepaid expenses and other current assets | 18,290 | 17,022 |
Prepaid income taxes | 232 | 9,992 |
Deferred income taxes | 16,772 | 16,772 |
Total current assets | 1,038,732 | 898,153 |
INVESTMENTS | 26,689 | 44,189 |
PROPERTY AND EQUIPMENT, net | 44,070 | 34,551 |
DEFERRED INCOME TAXES | 57,545 | 58,475 |
INTANGIBLES, net | 47,466 | 43,316 |
OTHER ASSETS | 3,926 | 3,447 |
Total Assets | $ 1,218,428 | $ 1,082,131 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
CURRENT LIABILITIES: | ||
Accounts payable | $ 108,521 | $ 85,674 |
Accrued liabilities | 32,803 | 23,811 |
Deferred revenue | 11,434 | 10,140 |
Accrued distributor terminations | 14 | 407 |
Accrued compensation | 9,035 | 7,603 |
Current portion of debt | 994 | 274 |
Income taxes payable | 3,128 | 925 |
Total current liabilities | 165,929 | 128,834 |
DEFERRED REVENUE | 119,953 | 124,899 |
STOCKHOLDERS' EQUITY: | ||
Common stock -- 99,299 shares issued and 87,417 outstanding as of 98,731 shares issued and 88,980 outstanding as of |
496 |
494 |
Additional paid-in capital | 220,331 | 187,040 |
Retained earnings | 1,104,108 | 882,425 |
Accumulated other comprehensive (loss) income | (1,504) | 281 |
Common stock in treasury, at cost; 11,882 shares and 9,751 shares as of |
(390,885) |
(241,842) |
Total stockholders' equity | 932,546 | 828,398 |
Total Liabilities and Stockholders' Equity | $ 1,218,428 | $ 1,082,131 |
CONTACT:Source:Rodney C. Sacks Chairman and Chief Executive Officer (951) 739-6200Hilton H. Schlosberg Vice Chairman (951) 739-6200Roger S. Pondel /Judy Lin Sfetcu PondelWilkinson Inc. (310) 279-5980
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