I keep on forgetting that Hansen's is a local company, but it is, and it's doing well:
Fewer people can afford to jump on the energy drink bandwagon these days, but tighter cash is not stopping Hansen Natural Corp. from picking up more of the market.
The Corona-based company Thursday reported strong earnings and sales for the first quarter, mostly because of solid sales of its Monster Energy drink. The growth in energy drinks has declined sharply because consumers have less disposable income, but Monster continues to take market share from its main rivals.
Here's the press release, if you didn't see it last week. Excerpts:
Hansen Natural Reports Record 2009 First Quarter Financial Results
First Quarter Net Sales Rise 15.1% to $244.2 Million; Net Income Increases 44.3% to $41.6 Million
CORONA, Calif., May 7, 2009 (GlobeNewswire via COMTEX News Network) -- Hansen Natural Corporation (Nasdaq:HANS) today reported financial results, including increases in sales and profits, for the first quarter ended March 31, 2009.
Gross sales for the 2009 first quarter increased 14.3 percent to $278.9 million from $244.0 million in the same period last year. Net sales for the first three months of 2009 increased 15.1 percent to $244.2 million from $212.2 million in the same period last year. Both gross and net sales for the 2008 first quarter were impacted by purchases made by customers in the 2007 fourth quarter in advance of the price increase effective January 1, 2008, for Monster Energy(r) brand energy drinks in 16-ounce cans and for the Java Monster(tm) line of non-carbonated dairy based coffee drinks. The Company estimates that approximately eight to nine percent of 2008 first quarter gross and net sales were reduced by such purchases made by customers in advance of such price increase.
Gross profit as a percentage of net sales was 53.3 percent for the three months ended March 31, 2009, compared with 49.4 percent for the comparable 2008 first quarter.
Operating expenses for the 2009 first quarter increased to $64.4 million from $61.9 million in the same quarter last year.
Distribution costs as a percentage of net sales were 4.5 percent for the 2009 first quarter, compared with 5.7 percent in the same quarter last year.
Selling expenses as a percentage of net sales for the 2009 first quarter were 12.5 percent, compared with 14.9 percent in the same quarter a year ago. Decreases in merchandise display costs and in-store-demo costs contributed to the decrease in selling expenses over the prior year. However, sponsorship expenditures were higher than in the comparable quarter last year.
General and administrative expenses for the 2009 first quarter were $23.0 million (including $1.1 million in termination obligations to prior distributors), compared with $18.3 million for the corresponding quarter last year. Termination obligations to prior distributors were minimal in the first quarter of 2008. Stock based compensation (a non-cash item) was $2.7 million in the first quarter of 2009, compared with $2.1 million in the corresponding prior year period.
Operating income for the 2009 first quarter increased 53.6 percent to $65.8 million from $42.8 million in the 2008 comparable quarter.
Other (expense)/income includes an other than temporary write-down of $3.5 million in the carrying value of auction rate securities in the first quarter of 2009.
Net income for the 2009 first quarter increased 44.3 percent to $41.6 million, or $0.44 per diluted share, compared with $28.8 million, or $0.29 per diluted share in the same quarter last year.
Net sales for the Company's DSD segment were $222.5 million for the 2009 first quarter, an increase of approximately 17.3 percent from $189.7 million for the same period in 2008. As noted above, both gross and net sales for the 2008 first quarter were impacted by the announcement in the fourth quarter of 2007 of a price increase for Monster Energy(r) brand energy drinks in 16-ounce cans and for the Java Monster(tm) line of non-carbonated dairy based coffee drinks, effective January 1, 2008.
Gross sales to customers outside the United States, after the inclusion of sales to certain military customers, were $35.3 million in the 2009 first quarter, compared with $20.1 million in the corresponding quarter in 2008.
Rodney C. Sacks, chairman and chief executive officer, attributed the record revenues to sustained strong sales of Monster Energy(r) drinks, which continue to grow in excess of the category and achieve further gains in market share.
"We remain pleased with the continued strong performance of the Monster Energy(r) brand in the current challenging economic environment. We continue to believe that the moderating growth in the energy drink segment appears, in part, to be due to the existing macro economic environment as well as the resulting decline in discretionary spending," added Sacks.
Sacks said that Coca-Cola Enterprises, Inc. ("CCE"), other Coca-Cola bottlers and select Anheuser-Busch distributors to whom the Monster Energy(r) brand was transitioned during the fourth quarter of 2008 were, in the main, now performing satisfactorily, following the disruptions that occurred during the transitional period. He added that the Company was now beginning to realize the benefits of the new distribution arrangements. Sacks said that the transition to CCE in Canada in January 2009 has been challenging, but "we are optimistic that we will start to see improved results in this market during the current quarter."
Sacks also indicated that international distribution of Monster Energy(r) brand energy drinks is proceeding satisfactorily. "Our new distributor in Mexico is performing remarkably well and the Monster Energy(r) brand is rapidly gaining momentum and additional distribution in this market," Sacks said.
The new distribution arrangements with CCE in France, Belgium, Holland, Luxembourg and Monaco are progressing well and the results achieved in Continental Europe are encouraging. Distribution performance in the United Kingdom in the first quarter was disappointing, although there are signs of improvement with CCE in that country. "Our distributor in Ireland has not met our expectations and we are reviewing our options. Sales of Monster Energy(r) in Sweden are progressing well," noted Sacks.
The Company has recently entered into new distribution agreements with Schweppes Australia Pty Ltd. for distribution of Monster Energy(r) brand energy drinks in Australia; Neill Cropper & Co., Ltd. for New Zealand; Luigi Biscaldi Import-Export S.r.l. for Italy; and Osborne S.A. for Spain in place of its existing distributor.
The Company is planning to launch certain new products in the current quarter, including Monster(r) Import(tm) in resealable 18.6-ounce aluminum cans and Hammer X-Presso Monster(tm) in 6.8-ounce aluminum cans. The Company is planning to introduce other new products in the Monster Energy(r) line later this year.
Auction Rate Securities
During the three-months ended March 31, 2009, the Company redeemed $10.5 million of its auction rate securities at par. At March 31, 2009 the Company held auction rate securities with a face value of $102.0 million ($112.5 million at December 31, 2008). The Company determined that a cumulative impairment of $15.5 million had occurred at March 31, 2009, ($14.9 million as of December 31, 2008), of which $11.5 million was deemed temporary and $4.0 million was deemed other than temporary. As a result, included as a component of other comprehensive loss is $6.9 million, net of taxes as of March 31, 2009. Included in other (expense)/income is an other-than-temporary impairment of $3.5 million for the three-months ended March 31, 2009. The auction rate securities will continue to accrue interest at their contractual rates until their respective auctions succeed or they are redeemed.
Investor Conference Call
The Company will host an investor conference call today, May 7, 2009, at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time). The conference call will be open to all interested investors through a live audio web broadcast via the internet at www.hansens.com and www.opencompany.info. For those who are not able to listen to the live broadcast, the call will be archived for approximately one year on both websites.
Hansen Natural Corporation
Based in Corona, California, Hansen Natural Corporation markets and distributes Hansen's(r) natural sodas, sparkling beverages, apple juice and juice blends, fruit juice smoothies, multi-vitamin juice drinks in aseptic packaging, iced teas, energy drinks, Junior Juice(r) juices and water beverages, Blue Sky(r) brand beverages, Monster Energy(r) brand energy drinks, Monster Hitman(tm) energy shooters, Java Monster(tm) brand non-carbonated dairy based coffee drinks, Lost(r) Energy(tm) brand energy drinks and Rumba(r), Samba and Tango brand energy juices. For more information visit www.hansens.com and www.monsterenergy.com.
Tuesday, May 12, 2009
I keep on forgetting that Hansen's is a local company, but it is, and it's doing well: