Hansen Natural Corporation Reports Financial Results for 2005 Year

CORONA, Calif., Mar 09, 2006 (BUSINESS WIRE) -- Hansen Natural Corporation (Nasdaq:HANS) today announced record sales and profits for the year and fourth quarter ended December 31, 2005.

For the 2005 year, gross sales rose 85.4 percent to $415.4 million from $224.1 million in 2004. Net sales for 2005 increased 93.5 percent to $348.9 million from $180.3 million in the prior year. Operating income grew 205.3 percent in 2005 to $103.4 million from $33.9 million a year ago. Net income advanced 207.9 percent to $62.8 million, or $2.59 per diluted share, from $20.4 million, or $0.86 per diluted share, a year ago.

Rodney C. Sacks, chairman and chief executive officer, said the record sales and profits for 2005 were primarily attributable to substantially increased sales volumes of the company's Monster Energy(R) drinks and, to a lesser extent, of Lost(R) energy drinks and Joker Mad Energy(TM) drinks. Increased sales volumes of apple juice and apple juice blends also contributed to the record sales. He added that the increase in sales was partially offset by decreased sales volumes primarily of Hansen's(R) Natural Sodas, Hansen's energy drinks, Energade(R) and Smoothies in cans.

Gross profit as a percentage of net sales for the year rose to 52.3 percent from 46.3 percent in 2004, primarily due to increased sales of higher margin Monster Energy(TM) and Lost(R) energy drinks. Selling, general and administrative expenses as a percentage of net sales were lower than in the previous year.

For the 2005 fourth quarter, gross sales rose 83.9 percent to $113.6 million from $61.8 million a year earlier. Net sales increased 94.7 percent to $98.0 million from $50.3 million in 2004. Operating income increased to $29.8 million from $11.9 million a year ago. Net income increased to $18.4 million, or $0.75 per diluted share, from $7.3 million, or $0.31 per diluted share, in the comparable period in 2004.

The increase in net income for the fourth quarter compared with the prior year period was primarily attributable to the substantial increase in sales volumes of Monster Energy(TM) drinks.

Sacks also said that sales of Monster Energy(TM) "Khaos" energy drinks was encouraging.

Hansen Natural Corporation markets and distributes Hansen's(R) Natural Sodas, Signature Sodas, fruit juice Smoothies, Energy drinks, Energade(R) energy sports drinks, E20 Energy Water(R), Sparkling Lemonades and Orangeades, multi-vitamin juice drinks in aseptic packaging, Junior Juice(R) juice, iced teas, lemonades and juice cocktails, apple juice, cider and juice blends, Blue Sky(R) brand carbonated beverages, Monster Energy(TM) brand energy drinks, Lost(R) Energy(TM) brand energy drinks, Joker Mad Energy(TM) and Rumba(TM) brand energy drinks and Fizzit(TM) brand Powdered drink mixes. Hansen's can be found on the Web at www.hansens.com.

(a) Gross sales, although used internally by management as an indicator of operating performance, should not be considered as an alternative to net sales, which is determined in accordance with Generally Accepted Accounting Principles ("GAAP"), and should not be used alone as an indicator of operating performance in place of net sales. Additionally, gross sales may not be comparable to similarly titled measures used by other companies as gross sales has been defined by the Company's internal reporting requirements.

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, activities and strategies of competitors, changes in the price and/or availability of raw materials for the company's products, the availability of production and/or suitable facilities, 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 and other risks detailed from time to time in the Company's reports filed with the Securities and Exchange Commission. The Company's actual results could differ materially from those contained in the forward looking statements. The Company assures no obligation to update any forward looking statements.

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