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Hansen Natural Reports Record 2009 Third Quarter Financial Results
Third Quarter Net Sales Rise 8.1% to $307.9 Million; Operating Income Increases 13.6% to $92.9 Million
Related Quotes
| Symbol | Price | Change |
|---|---|---|
| HANS | 38.74 | +0.39 |
CORONA, Calif., Nov. 5, 2009 (GLOBE NEWSWIRE) -- Hansen Natural Corporation (Nasdaq:HANS - News) today reported record sales and profits for the three- and nine-months ended September 30, 2009.
Gross sales for the 2009 third quarter increased 9.2 percent to $355.0 million from $325.2 million in the same period last year. Net sales for the three-months ended September 30, 2009 increased 8.1 percent to $307.9 million from $285.0 million a year ago.
Gross profit, as a percentage of net sales, for the 2009 third quarter was 53.6 percent, compared with 52.4 percent for the comparable 2008 quarter. Operating expenses for the 2009 third quarter increased to $72.1 million from $67.6 million in the same quarter last year.
Distribution costs as a percentage of net sales were 4.3 percent for the 2009 third quarter, compared with 5.5 percent in the same quarter last year.
Selling expenses as a percentage of net sales for the 2009 third quarter were 12.5 percent, compared with 11.1 percent in the same quarter a year ago.
General and administrative expenses for both the 2009 and 2008 third quarters were $20.3 million. Stock-based compensation (a non-cash item) was $3.3 million in the third quarter of 2009, compared with $4.0 million for the third quarter of 2008.
Operating income for the 2009 third quarter increased 13.6 percent to $92.9 million from $81.8 million in the comparable 2008 quarter.
Net income for the 2009 third quarter increased 7.8 percent to $56.5 million, or $0.60 per diluted share, compared with $52.4 million, or $0.54 per diluted share in the same quarter last year.
Net sales for the Company's DSD segment increased approximately 9.6 percent to $282.4 million for the 2009 third quarter from $257.7 million for the same period in 2008. Net sales for the Company's warehouse segment were $25.6 million for the three-months ended September 30, 2009, compared with $27.3 million for the same period in 2008.
Gross sales to customers outside the United States, after the inclusion of sales to certain military customers, were $50.0 million in the 2009 third quarter, compared with $30.7 million in the corresponding quarter in 2008.
During the third quarter the Company repurchased 1.6 million shares of its common stock at an average purchase price of $31.96 per share.
Rodney C. Sacks, chairman and chief executive officer, attributed the record revenues to sustained strong sales of Monster Energy(R) drinks, which continue to grow in excess of the category and achieve further gains in market share. "We are encouraged by the positive sales numbers reported by Nielsen for the five weeks ended September 26, 2009, which reflect that energy drink sales both in the important convenience and gas channel as well as the grocery channel, on a year-on-year comparable basis, grew for the first time since March 2009," said Sacks.
Sacks also said that the transition to certain Coca-Cola bottlers and new Anheuser-Busch distributors at the end of last year continues to be beneficial as the Company's national market share in both the convenience and gas and grocery channels is now higher than it was prior to the transition. In fact, Monster Energy's(R) market share in the important convenience and gas channel increased to 30% for the first time during the five weeks ended September 26, 2009.
According to Nielsen, Monster Energy's(R) market share in Canada is also higher than it was prior to the transition to the Coca-Cola system in Canada. Sales in Mexico continue to be satisfactory.
For the nine-months ended September 30, 2009, gross sales increased 9.7 percent to $979.7 million from $893.3 million for the comparable period a year earlier. Net sales for the first nine months of 2009 increased 9.4 percent to $852.4 million from $779.4 million for the same period of 2008.
Gross profit as a percentage of net sales was 53.6 percent for the first nine months of 2009, compared with 51.4 percent for the same period last year.
Operating expenses for the first three quarters of 2009 increased to $205.6 million from $197.6 million in the same period last year. Operating income for the first nine months of 2009 increased 24.0 percent to $251.5 million from $202.8 million in the corresponding period in 2008.
Net income for the first nine months of 2009 increased 18.2 percent to $155.4 million, or $1.63 per diluted share, compared with $131.5 million, or $1.34 per diluted share, for the same period last year.
Auction Rate Securities
During the nine-months ended September 30, 2009, the Company redeemed $12.3 million of its auction rate securities at par. At September 30, 2009 the Company held auction rate securities with a face value of $100.2 million ($100.5 million at June 30, 2009, $102.0 million at March 31, 2009 and $112.5 million at December 31, 2008). The Company determined that a cumulative impairment of $12.1 million had occurred at September 30, 2009, ($12.3 million as of June 30, 2009, $15.5 million at March 31, 2009 and $14.9 million as of December 31, 2008), of which $7.6 million was deemed temporary and $4.5 million was deemed other than temporary. As a result, included as a component of other comprehensive loss is $4.5 million of accumulated net unrealized losses on available-for-sale securities, net of tax benefits of $3.1 million as of September 30, 2009. Included in other income/(expense) is an other-than-temporary impairment of $0.3 million and $3.9 million for the three- and nine-months ended September 30, 2009. The auction rate securities will continue to accrue interest at their contractual rates until their respective auctions succeed or they are redeemed.
Investor Conference Call
The Company will host an investor conference call today, November 5, 2009, at 2:00 p.m. Pacific Time (5:00 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.opencompany.info. For those who are not able to listen to the live broadcast, the call will be archived for approximately one year on both websites.
Hansen Natural Corporation
Based in Corona, California, Hansen Natural Corporation markets and distributes Hansen's(R) natural sodas, sparkling beverages, apple juice and juice blends, fruit juice smoothies, multi-vitamin juice drinks in aseptic packaging, iced teas, energy drinks, Junior Juice(R) juices and water beverages, Blue Sky(R) brand beverages, Monster Energy(R) brand energy drinks, Nitrous(TM) Monster Energy(R) brand energy drinks, Monster Hitman(TM) energy shooters, Java Monster(TM) brand non-carbonated coffee + energy drinks, X-Presso Monster(TM) brand non-carbonated espresso energy drinks, Lost(R) Energy(TM) brand energy drinks, Rumba(R), Samba and Tango brand energy juices and Vidration(TM) brand vitamin enhanced waters. For more information visit www.hansens.com and www.monsterenergy.com.
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 the United States of America ("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 our internal reporting requirements. However, gross sales is used by management to monitor operating performance including sales performance of particular products, salesperson performance, product growth or declines and our overall performance. The use of gross sales allows evaluation of sales performance before the effect of any promotional items, which can mask certain performance issues. Management believes the presentation of gross sales allows a more comprehensive presentation of our operating performance. Gross sales may not be realized in the form of cash receipts as promotional payments and allowances may be deducted from payments received from customers.
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: actual performance of the parties under the new distribution agreements; potential disruptions arising out of the transition of certain territories to new distributors; changes in sales levels by existing distributors; unanticipated costs incurred in connection with the termination of existing distribution agreements or the transition to new distributors; changes in consumer preferences; changes in demand due to economic conditions; activities and strategies of competitors, including the introduction of new products and competitive pricing and/or marketing of similar products; 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; 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 Securities and Exchange Commission. The Company's actual results could differ materially from those contained in the forward-looking statements. The Company assumes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.
HANSEN NATURAL CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND OTHER INFORMATION
FOR THE THREE-AND NINE-MONTHS ENDED SEPTEMBER 30, 2009 AND 2008
(In Thousands, Except Per Share Amounts) (Unaudited)
Three-Months Ended Nine-Months Ended
September 30, September 30,
--------------------- ---------------------
2009 2008 2009 2008
--------- --------- --------- ---------
Gross sales, net of
discounts and
returns* $ 355,048 $ 325,152 $ 979,732 $ 893,284
Less: Promotional and
other allowances** 47,119 40,166 127,347 113,876
--------- --------- --------- ---------
Net sales 307,929 284,986 852,385 779,408
Cost of sales 142,897 135,550 395,345 379,039
--------- --------- --------- ---------
Gross profit 165,032 149,436 457,040 400,369
Gross profit margin
as a percentage of
net sales 53.6% 52.4% 53.6% 51.4%
Operating expenses 72,117 67,644 205,565 197,560
Operating expenses
as a percentage of
net sales 23.4% 23.7% 24.1% 25.3%
--------- --------- --------- ---------
Operating income 92,915 81,792 251,475 202,809
Operating income
as a percentage of
net sales 30.2% 28.7% 29.5% 26.0%
Other income
(expense):
Interest and other
income, net 183 2,111 1,599 8,506
Other-than-temporary
impairment of
investments (342) -- (3,880) --
--------- --------- --------- ---------
Total other
income
(expense) (159) 2,111 (2,281) 8,506
--------- --------- --------- ---------
Income before
provision for income
taxes 92,756 83,903 249,194 211,315
Provision for income
taxes 36,251 31,466 93,835 79,835
--------- --------- --------- ---------
Net income $ 56,505 $ 52,437 $ 155,359 $ 131,480
========= ========= ========= =========
Net income as a
percentage of net
sales 18.4% 18.4% 18.2% 16.9%
Net income per common
share:
Basic $ 0.63 $ 0.57 $ 1.72 $ 1.42
========= ========= ========= =========
Diluted $ 0.60 $ 0.54 $ 1.63 $ 1.34
========= ========= ========= =========
Weighted average
number of shares of
common stock and
common stock
equivalents:
Basic 90,154 92,337 90,380 92,852
========= ========= ========= =========
Diluted 94,683 96,916 95,060 97,997
========= ========= ========= =========
Case sales (in
thousands)
(in 192-ounce case
equivalents) 29,800 28,009 82,524 79,009
Average net sales
price per case $ 10.33 $ 10.17 $ 10.33 $ 9.86
* 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 the United States of
America ("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 our internal
reporting requirements. However, gross sales are used by
management to monitor operating performance including sales
performance of particular products, salesperson performance,
product growth or declines and our overall performance. The use
of gross sales allows evaluation of sales performance before the
effect of any promotional items, which can mask certain
performance issues. Management believes the presentation of gross
sales allows a more comprehensive presentation of our operating
performance. Gross sales may not be realized in the form of cash
receipts as promotional payments and allowances may be deducted
from payments received from customers.
** 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 SEPTEMBER 30, 2009 AND DECEMBER 31, 2008
(In Thousands, Except Par Value) (Unaudited)
Sept. 30, Dec. 31,
2009 2008
--------- ---------
ASSETS
------
CURRENT ASSETS:
Cash and cash equivalents $ 317,657 $ 256,801
Short-term investments 30,187 29,145
Trade accounts receivable, net 91,939 45,233
Distributor receivables 5,350 90,722
Inventories 123,942 116,326
Prepaid expenses and other current assets 9,705 8,379
Prepaid income taxes -- 4,977
Deferred income taxes 9,741 9,741
--------- ---------
Total current assets 588,521 561,324
INVESTMENTS 87,969 89,567
PROPERTY AND EQUIPMENT, net 28,075 14,389
DEFERRED INCOME TAXES 63,170 65,748
INTANGIBLES, net 31,674 28,365
OTHER ASSETS 1,885 2,444
--------- ---------
TOTAL ASSETS: $ 801,294 $ 761,837
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
CURRENT LIABILITIES:
Accounts payable $ 66,950 $ 64,787
Accrued liabilities 25,957 12,524
Accrued distributor terminations 3,151 102,282
Accrued compensation 6,103 6,782
Current portion of debt 381 959
Income taxes payable 5,189 --
--------- ---------
Total current liabilities 107,731 187,334
DEFERRED REVENUE 132,604 138,187
STOCKHOLDERS' EQUITY:
Common stock - $0.005 par value;
120,000 shares authorized; 97,207
shares issued and 89,090 outstanding
as of September 30, 2009;
96,851 shares issued and 90,328
outstanding as of December 31, 2008 486 484
Additional paid-in capital 131,045 117,106
Retained earnings 617,039 461,680
Accumulated other comprehensive loss (4,525) (10,825)
Common stock in treasury, at cost;
8,117 and 6,523 shares as of
September 30, 2009 and
December 31, 2008, respectively (183,086) (132,129)
--------- ---------
Total stockholders' equity 560,959 436,316
--------- ---------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY: $ 801,294 $ 761,837
========= =========
Contact:
Hansen Natural Corporation
Rodney C. Sacks, Chairman and Chief Executive Officer
Hilton H. Schlosberg, Vice Chairman
(951) 739-6200
PondelWilkinson Inc.
Roger S. Pondel
Judy Lin Sfetcu
(310) 279-5980
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