Thursday August 13, 4:36 pm Eastern Time
Company Press Release
Hansen Natural Corp. Reports Strong Second Quarter Results
Net Income Up 81 Percent
CORONA, Calif.--(BUSINESS WIRE)--Aug. 13, 1998--Hansen Natural Corp. (Nasdaq:HANS - news) Thursday reported record sales and net income for the second quarter ended June 30, 1998.
Net income for the second quarter climbed to a record $1,015,696, or $0.10 per diluted share, from $562,563, or $0.06 per diluted share, a year ago. Operating income for the quarter more than doubled to $1,568,520 from $749,054 a year ago. Net sales for the same period rose 21 percent to $13,950,530 from $11,496,228 a year earlier.
Net income for the six months ended June 30, 1998 increased almost three times to a record $1,720,883, or $0.17 per diluted share, from $583,719, or $0.06 per diluted share, last year. Operating income for the first half rose more than three times to $2,852,663 from $896,985 a year ago. Net sales for the same period climbed 36 percent to $25,215,385 from $18,615,814 in 1997.
Rodney C. Sacks, Hansen's chairman and chief executive officer, stated, ''The improved results for the quarter reflect the benefits of sales of the company's new lightly carbonated functional product line in 8.2 oz. slim cans. The functional product line was launched in April 1997 with the introduction of an energy drink, and the subsequent introduction of ginger flavored d-stress(tm), orange flavored anti-ox(tm) and guarana flavored stamina(tm) drinks in the first quarter of 1998.
Sacks added that results for the second quarter also benefited from the launch of Hansen's new Healthy Start(tm) line of juices with DynaJuice(tm), a 100 percent juice blend with 15 vitamins and minerals; and two new 100 percent juice blends, Hansen's(r) Natural Apple Strawberry and Apple Grape juices, both of which contain vitamin C.
''While it is still too early to establish an order trend for the functional product line, response from consumers continues to be extremely positive. We look forward to continued growth from our established products and, in particular, our functional product line, as well as our new Healthy Start(tm) line.''
Hansen Natural Corp. 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 Juice Blends, Apple Cider, DynaJuice(tm), and Spring Water and its new line of Functional drinks.
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, 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, 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 and the actions of its creditors.
HANSEN NATURAL CORP.
FINANCIAL HIGHLIGHTS
Three Months Ended Six Months Ended
June 30, June 30,
1998 1997 1998 1997
Net Sales $13,950,530 $11,496,228 $25,215,385 $18,615,814
Operating Income $ 1,568,520 $ 749,054 $ 2,852,663 $ 896,985
Net Income $ 1,015,696 $ 562,563 $ 1,720,883 $ 583,719
Net Income Per Common Share:
Basic $ 0.11 $ 0.06 $ 0.19 $ 0.06
Diluted $ 0.10 $ 0.06 $ 0.17 $ 0.06
Number of Common Shares Used in
Per share computations:
Basic 9,140,948 9,214,962 9,135,936 9,195,639
Diluted 10,361,279 9,219,049 10,391,250 9,219,049
Contact:
Hansen Natural Corp., Corona
Rodney C. Sacks, 909/739-6200
or
Pondel Parsons & Wilkinson
Gary S. Maier or Roger S. Pondel, 310/207-9300 |
