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HANS
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Tuesday February 29, 8:15 am Eastern Time
Company Press Release
Hansen Natural Corp. Reports Record 1999 Year-End Results
CORONA, Calif.--(BUSINESS WIRE)--Feb. 29, 2000--Hansen Natural Corp. (Nasdaq:HANS - news) today reported record results for the fourth quarter and year ended Dec. 31, 1999.
Net income for the fourth quarter climbed 12 percent to $791,999, or $0.08 per diluted share, from $709,873, or $0.07 per diluted share, a year ago. Operating income for the quarter increased slightly to $1.3 million compared to the same period a year ago. Net sales for the quarter rose 45 percent to $17.4 million from $12.1 million a year earlier.
For the year, net income rose 26 percent to $4.5 million, or $0.43 per diluted share, from $3.6 million, or $0.34 per diluted share, in 1998. Operating income for the year climbed 26 percent to $7.5 million, from $6.0 million a year ago. Net sales for the year climbed 34 percent to $72.3 million from $53.9 million in 1999.
Rodney C. Sacks, Hansen's chairman and chief executive officer, stated, ``Results for 1999 reflect the company's fourth consecutive year of record sales and profitability, underscoring the company's successful strategy of expanding its product range and distribution of Hansen's© on a national basis.'
Sacks noted that the results for the year include the continued sales strength of its lightly carbonated Functional drinks in 8.2-oz. slim cans. The company also benefited from the introduction of a number of new products in 1999, notably, the company's Signature Soda line, Smoothies in 64-oz. PET plastic bottles, Healthy Start 100% juices and two new lines of children's multi-vitamin juice products in 8.4-oz. aseptic packaging -- including ``Juice Blast(TM),' a co-branded product with Costco under the ``Kirkland Signature(TM)/Hansen's© Natural' brand names. He added that the product was successfully introduced late in the third quarter, with repeat sales levels of Juice Blast(TM) extremely positive.
At year end, the company also introduced Super Smoothies, a new line of premium Functional Smoothies in cans with added vitamins and herbal ingredients, and extended its single-serve Smoothie line of drinks in glass bottles to include such new Smoothie products. Sacks noted that he anticipates the benefits from the introduction of these additional products will begin to accrue in 2000.
He added that during 1999, the company completed the redesign of the graphics for its entire Smoothie and Natural Soda lines. ``We believe the redesign of these products will have a positive impact on sales in 2000,' Sacks said.
The company plans to introduce additional new products during 2000, notably its Healthy Start 100% juices in single-serve glass bottles; new sodas; additional flavors of Smoothie products and Signature Sodas; and its slim-down Functional drink.
In addition, Sacks added that Hansen's has signed a licensing agreement with the Silver Foxes Network and intends to market its Healthy Start line in 64-oz. PET plastic containers incorporating the Silver Foxes brand name. The line will be targeted to consumers in the 50+ age group.
This licensing arrangement will provide an opportunity for the company to participate in joint marketing promotions with Silver Foxes Network and other products that are concurrently being launched under that brand name.
``We are also planning to enter the nutritional bar market by introducing a line of healthy snack bars, as well as a line of Functional bars. Given the company's strong brand name, particularly in the Western states, we believe there are good opportunities to leverage our reputation for healthy natural products and achieve distribution and sales of such bars,' Sacks added.
He indicated that the company is also planning to introduce a line of soy-based drinks during the course of the year.
Hansen Natural Corp. markets and distributes Hansen's© Natural Sodas, Signature Sodas, Fruit Juice Smoothies, Functional Drinks, multi-vitamin juice products in aseptic packaging, ``Healthy Start(TM)' 100% Juices, Iced Teas, Lemonades and Juice Cocktails, Old Fashioned Apple Juice, Cider and Juice Blends and Spring Water. |
