Hansen Natural Corporation Reports Record Third Quarter; Sales Up 31 percent; Net Up 29 Percent for Nine-Month Period
Business Wire - November 11, 1999 08:31
CORONA, Calif--(BUSINESS WIRE)--Nov. 11, 1999--Hansen Natural Corporation (Nasdaq:HANS) today reported record sales, operating income and net income for the third quarter and nine months ended September 30, 1999.
Net income for the third quarter climbed 18 percent to $1.3 million, or $0.13 per diluted share, from $1.1 million, or $0.11 per diluted share, a year ago. Operating income for the quarter increased 23.5 percent to $2.2 million from $1.8 million a year ago. Net sales for the same period rose 23.5 percent to $20.5 million from $16.6 million a year earlier.
For the nine-month period, net income rose 29 percent to $3.7 million, or $0.35 per diluted share, from $2.9 million, or $0.28 per diluted share, last year. Operating income for the nine months climbed 33 percent to $6.2 million from $4.7 million a year ago. Net sales for the same period climbed 31 percent to $54.9 million from $41.8 million in 1998.
Rodney C. Sacks, Hansen's chairman and chief executive officer, stated, "The company's solid performance for the quarter and nine months reflects the ongoing success of our strategy to expand the product range and distribution of Hansen's(R) on a national basis."
He noted that the company is currently in the process of introducing a new line of premium functional Smoothies in cans and anticipates also offering these products in bottles by year end.
"Contributing to Hansen's strong results for the quarter was the introduction of two new lines of children's multi-vitamin juice products in 8.5-ounce aseptic packages; Hansen's Signature Soda line; and the continued success of Hansen's energy and other functional drinks in 8.2-ounce slim cans," Sacks added.
He indicated that sales from two flavors of Hansen's Smoothies in 64-ounce P.E.T. plastic bottles, introduced in the fourth quarter of 1998, and its Healthy Start(TM) juice line also contributed to the company's strong performance for the quarter.
Hansen Natural Corporation markets and distributes Hansen's(R) Natural Sodas, Fruit Juice Smoothies, Iced Teas, Lemonades and Juice Cocktails, Old Fashioned Apple Juice, Cider and Juice Blends, Spring Water, as well as its new lines of Functional Drinks and "Healthy Start(TM)" 100% Juices.
Certain statements made in this announcement may constitute "forward looking statements" within the meaning of Section 27.A of the Securities Act of 1933, as amended, and Section 21.E of the Securities Exchange Act of 1934, as amended, regarding the expectations of management with respect to sales, revenues and profitability. Management cautions that these statements are qualified by their terms and/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: The company's ability to generate sufficient cash flows to support capital expansion plans and general operating activities, changes in consumer preferences, changes in demand that are weather related, particularly in areas outside of California, changes in the cost and availability of raw materials for the company's products and the ability of the company to maintain favorable supply arrangements and relationships and procure timely and/or adequate production of all or any of the company's products, the company's ability to penetrate new markets, competitive products and pricing pressures, the marketing efforts of 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, laws and regulations and/or any changes therein especially those that may affect the way in which the company's products are marketed as well as laws or regulations that are enforceable by the Food and Drug Administration, as well as unilateral decisions that may be made by distributors, 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.
HANSEN NATURAL CORPORATION
FINANCIAL HIGHLIGHTS
Three Months Ended Nine Months Ended
September 30, September 30,
1999 1998 1999 1998
NET SALES $20,491,265 $16,589,368 $54,862,616 $41,804,753
COST OF SALES 11,060,928 8,703,684 29,044,061 21,326,455
----------- ----------- ----------- -----------
GROSS PROFIT 9,430,337 7,885,684 25,818,555 20,478,298
OPERATING EXPENSES:
Selling, general
and administrative 7,121,372 5,975,153 19,373,804 15,537,504
Amortization of
trademark license
and trademarks 76,604 73,800 224,900 221,400
Other expenses 29,719 30,000 59,719
----------- ----------- ----------- -----------
Total operating
expenses 7,197,976 6,078,672 19,628,704 15,818,623
----------- ----------- ----------- -----------
OPERATING INCOME 2,232,361 1,807,012 6,189,851 4,659,675
NONOPERATING EXPENSE
(INCOME)
Interest and
financing expense 34,651 82,347 137,763 301,055
Interest income (40,758) (31,707) (90,781) (38,758)
----------- ----------- ----------- -----------
Net nonoperating
expense (income) (6,107) 50,640 46,982 262,297
INCOME BEFORE PROVISION
FOR INCOME TAXES $ 2,238,468 $ 1,756,372 $ 6,142,869 $ 4,397,378
PROVISION FOR
INCOME TAXES $ 901,700 $ 624,000 $ 2,457,000 $ 1,544,123
---------- ----------- ----------- ------------
NET INCOME $ 1,336,768 $ 1,132,372 $ 3,685,869 $ 2,853,255
=========== =========== =========== ===========
NET INCOME PER COMMON SHARE:
Basic $ 0.13 $ 0.12 $ 0.37 $ 0.31
=========== =========== =========== ===========
Diluted $ 0.13 $ 0.11 $ 0.35 $ 0.28
=========== =========== =========== ============
NUMBER OF COMMON SHARES USED IN
PER SHARE COMPUTATIONS:
Basic 9,975,976 9,356,804 9,950,566 9,210,360
=========== =========== =========== ===========
Diluted 10,625,105 10,549,988 10,546,156 10,302,057
=========== =========== =========== ===========
CONTACT: Hansen Natural Corporation
Rodney C. Sacks, 909/739-6200
or
Pondel/Wilkinson Group
Gary S. Maier/Kristin Bruno
310/207-9300
Gotta love that 30% growth rate. Jack |
