Hansen Natural Reports Significant Sales Increase, Record Profits for First Quarter
PR News Wire via Dow Jones
CORONA, Calif., May 13 /PRNewswire/ -- Hansen Natural Corporation (Nasdaq:
HANS) today reported sharply increased sales and income for the first quarter
ended March 31, 1998.
Net sales rose 58 percent to $11,264,856 for the 1998 first quarter from
$7,119,586 for the corresponding period a year earlier. Operating income for
the first quarter rose significantly to $1,284,142 from $147,931 a year earlier.
Net income advanced to $705,186, or $0.07 per diluted share, from $21,155, or
$0.00 per share, a year ago.
Rodney C. Sacks, Hansen's chairman and chief executive officer, stated, "Net
sales and profitability for the quarter reflect the benefits of increased sales
of all of the company's products and, in particular, the company's new
functional drinks in 8.2-oz. slim cans." Sacks noted that the company's lightly
carbonated functional product line in 8.2-oz. slim cans was launched in April
1997 with the introduction of an energy drink and was extended during the first
quarter by the introduction of a ginger flavored d-stress(TM) drink, an orange
flavored anti-ox(TM) drink and a Guarana flavored stamina(TM) drink.
In comparing the results for the first quarter of 1998 with the comparable
period in 1997, Sacks noted that the company did not have any sales of its
functional drinks in 8.2-oz. slim cans during the first quarter of 1997. Sacks
also indicated that the majority of the sales of functional drinks in 8.2-ounce
slim cans during the first quarter of 1998 were attributable to opening orders
from distributors for the three new functional drinks prior to their launching
such products in their respective territories. Consequently, the sales of the
three new functional drinks during the first quarter of 1998 may not be
indicative of the sales that will be achieved in subsequent periods.
Sacks also indicated that repeat sales of the company's functional energy
drink have been encouraging. "While it is still too early to establish an order
trend for our functional product line, we are excited by initial consumer
response and look forward to the benefits of increased marketing efforts for our
functional drinks, as well as Hansen's entire product line," Sacks added.
The company markets and distributes Hansen's(R) Natural Sodas, Fruit Juice
Smoothies, Iced Teas, Lemonades and Juice Cocktails, and Hansen's(R) Natural Old
Fashioned Apple Juice and Cider and Spring Water and its new line of Functional
drinks as well as Equator(R) Iced Teas, Lemonades and Juice Cocktails.
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 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:
Changes in consumer preferences, changes in demand that are weather related,
particularly in areas outside of California, competitive pricing pressures,
changes in the price of raw materials for the company's beverage products, 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, and
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. 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.
Three Month Period Ended Three Month Period Ended
FINANCIAL HIGHLIGHTS March 31, 1998 March 31, 1997
Net Sales $11,264,856 $7,119,586
Operating Income $1,284,142 $147,931
Net Income $705,186 $21,155
Net Income Per Common Share:
Basic $0.08 $0.00
Diluted $0.07 $0.00
Number of Common Shares Used
in Per Share Computations:
Basic 9,130,869 9,122,868
Diluted 9,740,264 9,123,005
/CONTACT: Rodney C. Sacks, Chairman and Chief Executive Officer of Hansen
Natural Corporation, 909-739-6200; or Gary S. Maier/Roger S. Pondel of Pondel
Parson & Wilkinson, 310-207-9300/ |
