UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

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): May 8, 2006

 

Hansen Natural Corporation

(Exact name of registrant as specified in its charter)

Delaware

(State or other jurisdiction of incorporation)

   
   
  0-18761
  39-1679918  
  (Commission File Number)
  (IRS Employer Identification No.)  

 

1010 Railroad Street

Corona, California 92882

(Address of principal executive offices and zip code)

(951) 739 - 6200

(Registrant’s telephone number, including area code)

N/A

(Former name or former address, if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)

 


 

 

 

 

 

 

 

 

 

Item 1.01 Entry into a Material Definitive Agreement.

 

On May 8, 2006, Hansen Beverage Company (“HBC”), a Delaware corporation and a direct wholly owned subsidiary of Hansen Natural Corporation, entered into the Monster Beverages Off-Premise Distribution Coordination Agreement and the Allied Products Distribution Coordination Agreement (jointly, the “Agreements”) with Anheuser-Busch, Inc., a Missouri corporation (“AB”). Under the Agreements, select AB wholesalers will distribute and sell, in markets designated by HBC, HBC’s Monster Energy® and Lost® Energy™ brands non-alcoholic energy drinks, Rumba™ energy juice brand, an additional energy drink brand to be designated by the parties and additional products that may be agreed between the parties. A press release, a copy of which is furnished as Exhibit 99.1 hereto, was issued regarding these Agreements.

 

Item 2.02 Results of Operations and Financial Condition.

 

On May 9, 2006, Hansen Natural Corporation (“Hansen”) issued a press release relating to its financial results for the first quarter ended March 31, 2006, a copy of which is furnished as Exhibit 99.2 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.

 

On May 9, 2006, Hansen will conduct a conference call at 11:30 a.m. Pacific Time. The call will be open to 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 websites.

 

Item 9.01 Financial Statements and Exhibits.

 

(d) Exhibits.

 

The following exhibits are furnished herewith:

 

Exhibit 99.1 Press Release dated May 9, 2006.

Exhibit 99.2 Press Release dated May 9, 2006.

 

 

 

 

 

 

 

 

 

 

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: May 9, 2006

/s/Hilton H. Schlosberg

-------------------------------

Hilton H. Schlosberg

Vice Chairman of the Board of Directors,

President and Chief Financial Officer

 

 

 

 

 

 

 

 

 

 

 

EXHIBIT 99.1

 

For more information, contact:

Roger Pondel (Hansen Natural) 310.279.5965

rpondel@pondel.com

Tara Gray (Anheuser-Busch) 314.577.9667
tara.gray@anheuser-busch.com

 

 

FOR IMMEDIATE RELEASE

 

HANSEN NATURAL CORPORATION AND ANHEUSER-BUSCH

ANNOUNCE DISTRIBUTION DEAL

Monster, Lost, Rumba and Other Energy Drinks to Be Distributed Through Anheuser-Busch Wholesaler Network

 

CORONA, Calif. (May 9, 2006) – Hansen Natural Corporation (Nasdaq: HANS) and Anheuser-Busch Inc. (NYSE: BUD) today announced they have concluded agreements following which certain Anheuser-Busch wholesalers will become distributors of Hansen’s Monster Energy® and Lost® Energydrinks, Rumba energy juice drinks as well as an additional Hansen energy brand to be designated.

Monster, Lost and Rumba are currently distributed by Hansen in the United States through a network of beer and liquor distributors and soft drink bottlers. Hansen will transition distribution of Monster and Lost Energy drinks and Rumba energy juice as well as the additional energy brand to select Anheuser-Busch wholesalers in markets to be designated by Hansen. The transition process is expected to begin in the near future and will continue over the next year.

Launched in April 2002, Monster Energy is the leading 16-ounce energy drink in the United States. Energy drink category sales are up 70 percent over the comparable period last year. In the United States, Monster Energy is the No. 2 brand overall with a 19.4 percent share and Lost Energy is the No. 8 brand. Rumba energy juice is a new Hansen product. (Source: ACNielsen Convenience Brand Rank 13 weeks ending 4/01/06.)

- more -

 

 

 

Hansen/Anheuser-Busch

Page 2

 

“Anheuser-Busch has a first-class distribution system that will enable Hansen to expand availability and improve the presence of our products across all channels, particularly in areas where our brands have historically been under-represented,” said Rodney C. Sacks, chairman and chief executive officer of Hansen Natural Corporation. “We look forward to working together to build on the success of our Monster, Lost and Rumba energy brands and we intend to continue to evaluate additional opportunities with Anheuser-Busch.”

These agreements will broaden Anheuser-Busch’s participation in the fast-growing and profitable energy drink category and will bring popular energy drink brands into the portfolios of Anheuser-Busch wholesalers, further strengthening their businesses. In return, the agreements will result in Hansen energy drinks reaching more consumers through Anheuser-Busch’s strong network of independent wholesalers.

“We pride ourselves on innovation and will not limit ourselves to malt beverages in offering exciting new products for our wholesalers and consumers,” said Anheuser-Busch Inc. President August A. Busch IV. “We recognized the potential of this category when we launched our own energy drink, 180, in 2001. These agreements bring value to Anheuser-Busch, Hansen, our wholesalers and our retailers. They allow us to expand our business in this thriving category through our world-class network of wholesalers.”

The terms of the deal were not disclosed.

 

 

 

- more -

 

 

 

Hansen/Anheuser-Busch

Page 3

 

Based in St. Louis, Anheuser-Busch is the leading American brewer, holding a 48.8 percent share of U.S. beer sales. The company brews the world’s largest-selling beers, Budweiser and Bud Light. Anheuser-Busch also owns a 50 percent share in Grupo Modelo, Mexico’s leading brewer, and a 27 percent share in Tsingtao, the No. 1 brewer in China. Anheuser-Busch was ranked No. 1 among beverage companies in FORTUNE Magazine’s Most Admired U.S. and Global Companies lists in 2006. Anheuser-Busch is one of the largest theme park operators in the United States, is a major manufacturer of aluminum cans and is America’s top recycler of aluminum cans. For more information, visit www.anheuser-busch.com.

Based in Corona, California, Hansen Natural Corporation is a leading marketer of alternative and functional beverages and energy drinks. In addition to Monster Energy, Lost Energy and Rumba energy juice, products marketed by Hansen include Hansen’s® Natural Sodas, Hansen’s fruit juice smoothies and Hansen’s® 100 percent juices, juice blends and multi-vitamin juices, Junior Juice® juices, Blue Sky® brand beverages and Fizzit brand powdered drink mixes. For more information visit www.hansens.com and www.monsterenergy.com.

 

 

# # #

 

 

 

 

 

 

EXHIBIT 99.2

 

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 FIRST QUARTER SALES AND PROFITS

 

-- Net Sales Double, Net Income More Than Doubles --

 

Corona, CA – May 9, 2006 – Hansen Natural Corporation (NASDAQ:HANS) today reported record financial results, including sharp increases in sales and profits, for the first quarter ended March 31, 2006.

Gross sales for the first quarter increased 88.9 percent to $137.8 million from $73.0 million a year earlier. Net sales for the first quarter increased 99.5 percent to $119.7 million from $60.0 million a year ago. Operating income for the first quarter more than doubled to $34.8 million from $14.7 million a year ago. Net income for the first quarter also more than doubled to $21.1 million, or $0.84 per diluted share, from $8.8 million or $0.37 per diluted share last year.

The Company implemented Financial Accounting Standard No. 123 (revised 2004), Share-Based payments (FAS123R), in the first quarter of 2006. As a result, first quarter results are reported after $1.9 million of stock option related compensation expense, compared to nil stock option related compensation expense for the first quarter of 2005. The after-tax effect of stock option related compensation expense on net income was $0.05 per diluted share for the first quarter of 2006.

Rodney C. Sacks, chairman and chief executive officer, said the exceptional performance reflected record gross sales of Monster Energy® drinks, which were introduced in

 

(more)

 

Hansen Natural Corporation

2-2-2

 

 

April 2002, including our low carbohydrate (“lo-carb”) Monster Energy® drinks, which were introduced in 2003, sales of Monster Energy® Khaos™ energy drinks, which were introduced in August 2005, Monster Energy® Assault™ energy drinks, which were introduced in September 2004, increased sales by volume of Lost® Energy™ drinks, which were introduced in January 2004, as well as increased sales by volume of Hansen’s® apple juice and juice blends, sports drinks, Junior Juice® juice drinks and Rumba™ energy juice, which was introduced in December 2004.

The sales increase was partially offset primarily by decreased sales of Hansen’s® energy drinks, Joker Mad Energy™ drinks and Smoothies in cans.

Gross profit as a percentage of net sales for the quarter increased to 52.6 percent, from 50.5 percent for the comparable 2005 quarter. Operating expenses as a percentage of net sales decreased to 23.5 percent, from 26.0 percent in the previous year.

Hansen Natural Corporation markets and distributes Hansen’s® Natural Sodas, Signature Sodas, fruit juice Smoothies, Energy drinks, Energade® energy sports drinks, E20 Energy Water®, Sparkling Lemonades and Orangeades, multi-vitamin juice drinks in aseptic packaging, Junior Juice® juice, iced teas, lemonades and juice cocktails, apple juice and juice blends, Blue Sky® brand beverages, Monster Energy® brand energy drinks, Lost® Energy™ brand energy drinks, Joker Mad Energy™ and Rumba™ brand energy drinks and Fizzit™ brand Powdered drink mixes. Hansen’s can be found on the Web at www.hansens.com.

* 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 Generally Accepted Accounting Principles (“GAAP”), and should not be used alone as an indicator of operating performance in place of net sales. Additionally, gross sales may not be comparable to similarly titled measures used by other companies as gross sales has been defined by the Company’s internal reporting requirements.

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, activities and strategies of competitors, 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 and/or convenience 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 and other risks detailed from time to time in the Company’s reports filed with the Securities and Exchange Commission. The Company’s actual results could differ materially from those contained in the forward looking statements. The Company assures no obligation to update any forward looking statements.

 

# # #

(tables below)

 

 

 

HANSEN NATURAL CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

FOR THE THREE MONTHS ENDED MARCH 31, 2006 AND 2005 (Unaudited)

___________________________________________________________________

 

 

 

 

2006

 

 

 

2005

 

 

 

 

 

 

 

 

 

 

 

 

 

GROSS SALES*

 

$

137,823,694

 

 

 

$

72,962,090

 

 

 

 

 

 

 

 

 

 

 

 

 

LESS: Promotional and other allowances**

 

 

18,077,436

 

 

 

 

12,947,818

 

 

 

 

 

 

 

 

 

 

 

 

 

NET SALES

 

 

119,746,258

 

 

 

 

60,014,272

 

 

 

 

 

 

 

 

 

 

 

 

 

COST OF SALES

 

 

56,748,386

 

 

 

 

29,684,954

 

 

 

 

 

 

 

 

 

 

 

 

 

GROSS PROFIT

 

 

62,997,872

 

 

 

 

30,329,318

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES

 

 

28,168,833

 

 

 

 

15,605,818

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME

 

 

34,829,039

 

 

 

 

14,723,500

 

 

 

 

 

 

 

 

 

 

 

 

 

NET NONOPERATING INCOME

 

 

701,929

 

 

 

 

117,518

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME BEFORE PROVISION FOR
INCOME TAXES

 

 

35,530,968

 

 

 

 

14,841,018

 

 

 

 

 

 

 

 

 

 

 

 

 

PROVISION FOR INCOME TAX

 

 

14,439,690

 

 

 

 

5,996,305

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME

 

$

21,091,278

 

 

 

$

8,844,713

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME PER COMMON SHARE:

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.93

 

 

 

$

0.40

 

 

Diluted

 

$

0.84

 

 

 

$

0.37

 

 

 

 

 

 

 

 

 

 

 

 

 

NUMBER OF COMMON SHARES USED
IN PER SHARE COMPUTATIONS:

 

 

 

 

 

 

 

 

 

 

Basic

 

 

22,696,057

 

 

 

 

21,871,418

 

 

Diluted

 

 

25,154,684

 

 

 

 

24,121,666

 

 

 

 

 

 

 

 

 

 

 

 

* 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 Generally Accepted Accounting Principles (“GAAP”), and should not be used alone as an indicator of operating performance in place of net sales. Additionally, gross sales may not be comparable to similarly titled measures used by other companies as gross sales has been defined by the Company’s internal reporting requirements.

 

**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 the marketing activities of the Company.

 

 

 

 

HANSEN NATURAL CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

AS OF MARCH 31, 2006 AND DECEMBER 31, 2005 (Unaudited)

__________________________________________________________________________

 

 

 

 

 

March 31,

 

 

 

 

 

December 31,

 

 

 

 

 

 

2006

 

 

 

 

 

2005

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT ASSETS:

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

$

 

30,537,735

 

 

 

$

 

61,654,284

 

Short-term investments

 

 

 

 

67,182,380

 

 

 

 

 

11,860,665

 

Accounts receivable, net

 

 

 

 

46,302,600

 

 

 

 

 

28,751,588

 

Inventories

 

 

 

 

29,389,596

 

 

 

 

 

31,399,628

 

Prepaid expenses and other current assets

 

 

 

 

1,297,936

 

 

 

 

 

477,237

 

Prepaid income taxes

 

 

 

 

 

 

 

 

 

 

637,794

 

Deferred income tax asset

 

 

 

 

4,625,757

 

 

 

 

 

5,505,264

 

Total current assets

 

 

 

 

179,336,004

 

 

 

 

 

140,286,460

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PROPERTY AND EQUIPMENT, net

 

 

 

 

4,558,825

 

 

 

 

 

3,742,958

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INTANGIBLE AND OTHER ASSETS:

 

 

 

 

 

 

 

 

 

 

 

 

Trademarks, net

 

 

 

 

19,091,957

 

 

 

 

 

19,103,049

 

Deposits and other assets

 

 

 

 

864,848

 

 

 

 

 

757,215

 

Total intangible and other assets

 

 

 

 

19,956,805

 

 

 

 

 

19,860,264

 

 

 

 

$

 

203,851,634

 

 

 

$

 

163,889,682

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable

 

 

$

 

31,602,402

 

 

 

$

 

26,613,663

 

Accrued liabilities

 

 

 

 

3,181,708

 

 

 

 

 

2,481,703

 

Accrued compensation

 

 

 

 

1,417,955

 

 

 

 

 

3,346,243

 

Current portion of long-term debt

 

 

 

 

789,794

 

 

 

 

 

515,221

 

Income taxes payable

 

 

 

 

11,099,553

 

 

 

 

 

 

 

Total current liabilities

 

 

 

 

48,091,412

 

 

 

 

 

32,956,830

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LONG-TERM DEBT, less current portion

 

 

 

 

7,503

 

 

 

 

 

10,123

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DEFERRED INCOME TAX LIABILITY

 

 

 

 

5,851,293

 

 

 

 

 

5,413,880

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COMMITMENTS AND CONTINGENCIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

STOCKHOLDERS’ EQUITY:

 

 

 

 

 

 

 

 

 

 

 

 

Common stock - $0.005 par value; 30,000,000 shares
authorized; 22,749,970 shares issued and 22,336,448
outstanding in 2006; 22,607,128 shares issued and
22,193,606 utstanding in 2005

 

 

 

 

113,750

 

 

 

 

 

113,036

 

Additional paid-in capital

 

 

 

 

23,218,333

 

 

 

 

 

19,917,748

 

Retained earnings

 

 

 

 

127,383,888

 

 

 

 

 

106,292,610

 

Common stock in treasury, at cost; 413,522 shares in 2006
and 2005

 

 

 

 

(814,545

)

 

 

 

 

(814,545

)

Total stockholders’ equity

 

 

 

 

149,901,426

 

 

 

 

 

125,508,849

 

 

 

 

$

 

203,851,634

 

 

 

$

 

163,889,682