UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 9, 2005
Hansen Natural Corporation
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(Exact name of registrant as specified in its charter)
Delaware
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(State or other jurisdiction of incorporation)
0-18761 39-1679918
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(Commission File Number) (IRS Employer Identification No.)
1010 Railroad Street
Corona, California 92882
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(Address of principal executive offices and zip code)
(951) 739 - 6200
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(Registrant's telephone number, including area code)
N/A
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(Former name or former address, if changed since last report)
Item 2.02. Results of Operations and Financial Condition
On August 9, 2005, Hansen Natural Corporation ("Hansen") issued a
press release relating to its financial results for the second quarter
ended June 30, 2005, a copy of which is furnished as Exhibits 99.1 hereto.
The press release did not include certain financial statements, related
footnotes and certain other financial information that will be filed with
the Securities and Exchange Commission as part of Hansen's Quarterly Report
on Form 10-Q.
Item 9.01 Financial Statements and Exhibits
(c) Exhibits.
The following exhibit is furnished herewith:
Exhibit 99.1 Press Release dated August 9, 2005.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Hansen Natural Corporation
Date: August 9, 2005 /s/Hilton H. Schlosberg
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Hilton H. Schlosberg
Vice Chairman of the Board of Directors,
President and Chief Financial Officer
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 REPORTS
RECORD SECOND QUARTER SALES AND PROFITS
--- Net Sales Increase 85.5 percent, Net Income Triples --
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(r) and Junior Juice(r)
children's juice drinks in aseptic packaging and Hansen's(r) apple juice and
juice blends. The increase in net sales was also attributable, to a lesser
extent, to sales of Lost(r) 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(r) energy and functional drinks, including Deuce energy in 16-ounce
cans, private label isotonic beverages, E2O Energy Water(r) 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(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, Monster EnergyTM brand energy
drinks, Lost(r) EnergyTM brand energy drinks, RumbaTM brand energy juice and
JokerTM 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.
# # #
(table below)
HANSEN NATURAL CORPORATION
Consolidated Statements of Income
For the Three Months Ended June 30, 2005 and 2004
Three Months Ended Six Months Ended
June 30, June 30,
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2005 2004 2005 2004
---------------- ---------------- ---------------- ----------------
GROSS SALES, net of $ 102,499,664 $ 57,120,726 $175,461,754 $95,209,244
discounts & returns
LESS: Allowances and
promotional payments 17,059,109 11,057,183 30,006,927 17,846,918
----------------- ---------------- ---------------- ----------------
NET SALES 85,440,555 46,063,543 145,454,827 77,362,326
COST OF SALES 40,513,477 25,304,614 70,198,431 42,695,576
----------------- ---------------- ---------------- ----------------
GROSS PROFIT 44,927,078 20,758,929 75,256,396 34,666,750
OPERATING EXPENSES:
Selling, general and
administrative 19,558,402 12,335,494 35,149,974 22,578,732
Amortization of trademark 13,838 19,269 28,084 39,365
----------------- ---------------- ---------------- ----------------
Total operating expenses 19,572,240 12,354,763 35,178,058 22,618,097
----------------- ---------------- ---------------- ----------------
OPERATING INCOME 25,354,838 8,404,166 40,078,338 12,048,653
NET NONOPERATING
INCOME (EXPENSE) 253,876 (8,434) 371,394 (19,048)
----------------- ---------------- ---------------- ----------------
INCOME BEFORE
PROVISION FOR
INCOME TAXES 25,608,714 8,395,732 40,449,732 12,029,605
----------------- ---------------- ---------------- ----------------
PROVISION FOR
INCOME TAXES 10,363,016 3,317,583 16,359,321 4,768,175
----------------- ---------------- ---------------- ----------------
NET INCOME $ 15,245,698 $ 5,078,149 $ 24,090,411 $ 7,261,430
================= ================ ================ ================
NET INCOME PER COMMON SHARE:
Basic $ 0.69 $ 0.24 $ 1.09 $ 0.35
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Diluted $ 0.63 $ 0.22 $ 0.99 $ 0.31
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NUMBER OF COMMON SHARES USED
IN PER SHARE COMPUTATIONS:
Basic 21,951,404 21,041,360 22,030,514 20,955,450
================= ================ ================ ================
Diluted 24,385,238 23,364,620 24,320,754 23,183,736
================= ================ ================ ================