UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 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): March 9, 2006
Hansen Natural Corporation
(Exact name of registrant as specified in its charter)
Delaware
(State or other jurisdiction of incorporation)
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| 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:
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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 2.02. Results of Operations and Financial Condition
On March 9, 2006, Hansen Natural Corporation (“Hansen”) issued a press release relating to its financial results for the year and fourth quarter ended December 31, 2005, a copy of which is furnished as Exhibit 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 Annual Report on Form 10-K.
On March 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
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(c) |
Exhibits. |
The following exhibit is furnished herewith:
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Exhibit 99.1 Press Release dated March 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
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Date: March 9, 2006 |
/s/Hilton H. Schlosberg |
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 CORPORATION REPORTS
RECORD FINANCIAL RESULTS FOR 2005 YEAR
Net Income Triples; Net Sales up 93%
Corona, CA March 9, 2006 Hansen Natural Corporation (NASDAQ:HANS) today
announced record sales and profits for the year and fourth quarter ended
December 31, 2005.
For the 2005 year, gross sales rose 85.4 percent to $415.4 million from
$224.1 million in 2004. Net sales for 2005 increased 93.5 percent to $348.9
million from $180.3 million in the prior year. Operating income grew 205.3
percent in 2005 to $103.4 million from $33.9 million a year ago. Net income
advanced 207.9 percent to $62.8 million, or $2.59 per diluted share, from $20.4
million, or $0.86 per diluted share, a year ago.
Rodney C. Sacks, chairman and chief executive officer, said the record
sales and profits for 2005 were primarily attributable to substantially
increased sales volumes of the company's Monster Energy(R) drinks and, to a
lesser extent, of Lost(R) energy drinks and Joker Mad Energy(TM) drinks.
Increased sales volumes of apple juice and apple juice blends also contributed
to the record sales. He added that the increase in sales was partially offset by
decreased sales volumes primarily of Hansens(R) Natural Sodas, Hansens energy
drinks, Energade(R) and Smoothies in cans.
Gross profit as a percentage of net sales for the year rose to 52.3 percent
from 46.3 percent in 2004, primarily due to increased sales of higher margin
Monster Energy(TM) and Lost(R) energy drinks. Selling, general and
administrative expenses as a percentage of net sales were lower than in the
previous year.
For the 2005 fourth quarter, gross sales rose 83.9 percent to $113.6
million from $61.8 million a year earlier. Net sales increased 94.7 percent to
$98.0 million from $50.3 million in 2004. Operating income increased to $29.8
million from $11.9 million a year ago. Net income increased to $18.4 million, or
$0.75 per diluted share, from $7.3 million, or $0.31 per diluted share, in the
comparable period in 2004.
The increase in net income for the fourth quarter compared with the prior
year period was primarily attributable to the substantial increase in sales
volumes of Monster Energy(TM) drinks.
Sacks also said that sales of Monster Energy(TM) "Khaos" energy drinks was
encouraging.
Hansen Natural Corporation markets and distributes Hansens(R) Natural
Sodas, Signature Sodas, fruit juice Smoothies, Energy drinks, Energade(R) energy
sports drinks, E20 Energy Water(R), Sparkling Lemonades and Orangeades,
multi-vitamin juice drinks in aseptic packaging, Junior Juice juice(R), iced
teas, lemonades and juice cocktails, apple juice, cider and juice blends, Blue
Sky(R) brand carbonated beverages, Monster Energy(TM) brand energy drinks,
Lost(R) Energy brand energy drinks, Joker Mad Energy(TM) and Rumba(TM) brand
energy drinks and Fizzit(TM) brand Powdered drink mixes. Hansens 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 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 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.
# # #
(table below)
HANSEN NATURAL CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF NET INCOME
FOR THE THREE-AND TWELVE-MONTHS ENDED DECEMBER 31, 2005 AND 2004
(Unaudited)
_______________________________________________________________________________
Three Months Ended Twelve Months Ended
December 31, December 31,
-------------------------------------- ---------------------------------------
2005 2004 2005 2004
----------------- ----------------- ----------------- ------------------
GROSS SALES* $ 113,570,741 $ 61,760,023 $ 415,417,282 $ 224,097,875
LESS: Promotional and
other allowances** 15,560,656 11,422,691 66,530,916 43,756,740
----------------- ----------------- ----------------- ------------------
NET SALES 98,010,085 50,337,332 348,886,366 180,341,135
COST OF SALES 46,066,902 25,346,905 166,343,118 96,874,750
----------------- ----------------- ----------------- ------------------
GROSS PROFIT 51,943,183 24,990,427 182,543,248 83,466,385
OPERATING EXPENSES:
Selling, general and administrative 22,127,457 13,063,306 79,029,837 49,507,137
Amortization of trademarks 26,010 14,403 70,102 73,046
----------------- ----------------- ----------------- ------------------
Total operating expenses 22,153,467 13,077,709 79,099,939 49,580,183
----------------- ----------------- ----------------- ------------------
OPERATING INCOME 29,789,716 11,912,718 103,443,309 33,886,202
NONOPERATING INCOME (EXPENSE):
Interest and financing expense (12,522) (9,793) (76,531) (41,988)
Interest income 668,948 88,940 1,427,803 93,983
----------------- ----------------- ----------------- ------------------
Net nonoperating income 656,426 79,147 1,351,272 51,995
INCOME BEFORE PROVISION
FOR INCOME TAXES 30,446,142 11,991,865 104,794,581 33,938,197
PROVISION FOR
INCOME TAXES 12,005,945 4,665,139 42,018,605 13,551,393
----------------- ----------------- ----------------- ------------------
NET INCOME $ 18,440,197 $ 7,326,726 $ 62,775,976 $ 20,386,804
================= ================= ================= ==================
NET INCOME PER COMMON SHARE:
Basic $ 0.83 $ 0.34 $ 2.85 $ 0.96
================= ================= ================= ==================
Diluted $ 0.75 $ 0.31 $ 2.59 $ 0.86
================= ================= ================= ==================
NUMBER OF COMMON SHARES USED
IN PER SHARE COMPUTATIONS:
Basic 22,194,187 21,783,698 22,055,983 21,333,784
================= ================= ================= ==================
Diluted 24,550,459 23,911,188 24,272,235 23,619,880
================= ================= ================= ==================
* 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 Companys 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 BALANCE SHEETS
AS OF DECEMBER 31, 2005 AND 2004 (Unaudited)
______________________________________________________________________________
2005 2004
--------------- ---------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 61,654,284 $ 3,676,119
Short-term investments 11,860,665 17,300,000
Accounts receivable, net 28,751,588 12,650,055
Inventories 31,399,628 22,406,054
Prepaid expenses and other current assets 477,237 638,967
Prepaid income taxes 637,794
Deferred income tax asset 5,505,264 3,708,942
--------------- ---------------
Total current assets 140,286,460 60,380,137
PROPERTY AND EQUIPMENT, net 3,742,958 2,964,064
INTANGIBLE AND OTHER ASSETS:
Trademarks, net 19,103,049 18,351,804
Deposits and other assets 757,215 326,312
--------------- ---------------
Total intangible and other assets 19,860,264 18,678,116
--------------- ---------------
$ 163,889,682 $ 82,022,317
=============== ===============
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 26,613,663 $ 14,542,753
Accrued liabilities 2,481,703 1,582,968
Accrued compensation 3,346,243 1,831,627
Current portion of long-term debt 515,221 437,366
Income taxes payable - 346,449
--------------- ---------------
Total current liabilities 32,956,830 18,741,163
LONG-TERM DEBT, less current portion 10,123 146,486
DEFERRED INCOME TAX LIABILITY 5,413,880 4,563,439
COMMITMENTS AND CONTINGENCIES
- -
STOCKHOLDERS' EQUITY:
Common stock - $0.005 par value; 30,000,000 shares
authorized; 22,607,128 shares issued, 22,193,606
outstanding in 2005; 22,239,728 shares issued, 21,826,206
outstanding in 2004 113,036 111,198
Additional paid-in capital 19,917,748 15,757,942
Retained earnings 106,292,610 43,516,634
Common stock in treasury, at cost; 413,522 shares in 2005 and 2004 (814,545) (814,545)
--------------- ---------------
Total shareholders' equity 125,508,849 58,571,229
--------------- ---------------
$ 163,889,682 $ 82,022,317
=============== ===============