Hansen Natural Corporation Announces Year-End Results

Record Sales Up 15.7 Percent for Year

CORONA, Calif.--(BUSINESS WIRE)--March 13, 2002--Hansen Natural Corp. (Nasdaq:HANS - news) today announced financial results for its fourth quarter and year ended December 31, 2001.

Net sales for the fourth quarter rose 17.6 percent to $21.6 million from $18.4 million, a year earlier. Operating income for the quarter increased 7.6 percent to $642,000 from $597,000 a year ago. Net income for the same period increased 56.2 percent to $328,000, or $0.03 per diluted share, from $210,000, or $0.02 per diluted share, in the comparable period in 2000.

For the year 2001, net sales rose 15.7 percent to $92.3 million from $79.7 million in 2000. Operating income for the year was $5.6 million compared with $6.9 million a year ago. Net income for the same period was $3.0 million, or $0.29 per diluted share, compared with $3.9 million, or $0.38 per diluted share, in 2000.

Rodney C. Sacks, chairman and chief executive officer, said, "While 2001 was a difficult year, the company's solid fourth quarter performance and record sales for the year were encouraging."

He noted that record sales for 2001 were achieved primarily through the growth in sales of natural sodas, energy drinks in 8.3-oz. slim cans and apple juice -- as well as sales of Junior Juice since the acquisition of that brand at the end of May 2001 and Energade energy sport drinks and E20 Energy Water since their respective introductions during the year.

The increase in sales was partially offset by decreased sales of Smoothies in PET and glass bottles, Signature Sodas, children's multi-vitamin juice drinks in 8.4-oz. aseptic packages, iced teas, lemonades and juice cocktails and Healthy Start(TM)/Silver Foxes juices in PET and glass bottles and functional drinks (other than energy drinks) in 8.3-oz. slim cans.

Gross profit as a percentage of net sales for the year decreased from 46.5% to 44.2%, due primarily to a change in the company's product and customer mix. Actual promotional expenditures incurred during 2001, and as a percentage of net sales, were higher than in the previous year. Financial performance was adversely affected by startup costs and expenditures incurred in the establishment of the food and specialty division. Additionally, sales of nutrition bars and cereals were below expectations.

He added that Hansen's is in the process of launching a Sparkling Lemonade and Orangeade line in one-liter proprietary glass bottles, as well as a Soy Smoothie line in aseptic packaging. The launch of its E20 Energy Water line was limited due to production problems, which have now been overcome, and E20 Energy Water is now being actively introduced. The launch of Medicine Man during 2001 was disappointing, and the future of that line is currently being evaluated. The Healthy Start(TM)/Silver Foxes juice lines are being discontinued.

The Junior Juice line has been successfully integrated into operations since its acquisition at the end of May and contributed positively to results.

Interest and amortization of trademarks increased by approximately $282,000 over the previous year, due primarily to the acquisition of the Blue Sky and Juice Junior businesses.

Hansen Natural Corporation markets and distributes Hansen's® Natural Sodas, Signature Sodas, fruit juice and soy Smoothies, energy drinks, Energade energy sports drinks, E20 Energy Water, functional drinks, Sparkling Lemonades and Orangeades, multi-vitamin juice drinks in aseptic packaging, iced teas, lemonades and juice cocktails, old fashioned apple juice, cider and juice blends, as well as cereals and bars, Blue Sky brand carbonated beverages and Junior Juice brand juices. The company's subsidiary, Hard e Beverage Co., markets and distributes Hard malt beverages. Hansen can be found on the Web at www.hansen.com .

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.

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