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3.3.2008: Meldung: Hansen Natural Corp.: Fourth Quarter and Full Year Financial Results for 2007
Hansen Natural Reports Fourth Quarter and Full Year Financial Results for 2007
Thursday February 28, 4:05 pm ET
-- Record Fourth Quarter Net Sales Rise 63% to $247 million; Net Income for the Fourth Quarter Jumps 103% to $45 million; Gross Sales for the Year Exceed $1.0 billion --
CORONA, Calif.----Hansen Natural Corporation today reported record sales and profits for the fourth quarter and year ended December 31, 2007.
Gross sales for the fourth quarter increased 61.5 percent to $277.3 million, from $171.7 million a year earlier. Net sales for the fourth quarter increased 63.0 percent to $246.6 million from $151.3 million a year ago.
Gross profit as a percentage of net sales for the 2007 fourth quarter decreased to 51.0 percent, from 53.1 percent in the comparable 2006 quarter.
Operating income for the fourth quarter increased 81.1 percent to $64.6 million from $35.7 million a year ago. Operating income for the fourth quarter, excluding the identified items described below, increased 49.7 percent to $63.1 million from $42.1 million a year ago. The Company reported an effective tax rate for the fourth quarter of 33.3 percent compared to 39.5 percent last year.
Net income for the 2007 fourth quarter increased 103.1 percent to $45.1 million, or $0.45 per diluted share, from $22.2 million, or $0.23 per diluted share last year.
Gross sales for the year ended December 31, 2007 increased 47.3 percent to $1,025.8 million from $696.3 million a year earlier. Net sales for the year ended December 31, 2007 increased 49.3 percent to $904.5 million from $605.8 million a year ago.
Gross profit as a percentage of net sales was 51.7 percent for 2007, compared with 52.3 percent for 2006.
Operating income for the year ended December 31, 2007 increased 45.7 percent to $231.0 million from $158.6 million a year ago. Operating income for the year ended December 31, 2007, excluding the identified items described below, increased 45.5 percent to $254.1 million from $174.6 million a year ago. The Company reported an effective tax rate for the year of 37.7 percent compared to 39.6 percent last year.
Net income for the year ended December 31, 2007 increased 52.5 percent to $149.4 million, or $1.51 per diluted share, from $97.9 million, or $0.99 per diluted share, last year.
Rodney C. Sacks, chairman and chief executive officer, said that the record revenues reflected continued strong sales of Monster Energy® brand energy drinks as well as the Java Monster™ line of non-carbonated dairy based coffee drinks (introduced in April 2007) and Monster M-80 energy (introduced in March 2007). “We are excited by the launch in December 2007 of the five new Java Monster™ line extensions as well as the launch of our new Monster Heavy Metal™ (introduced in November 2007) and Monster MIXXD™ (introduced in December 2007). We are extremely pleased by the reception both from the trade and consumers to our new line extensions.
“The energy category continues to show strong growth and the Monster Energy® brand continues to grow in excess of the overall category growth,” Sacks said. Also, Mr. Sacks noted that fourth quarter sales benefited from purchases made by customers in anticipation of the price increase, effective January 1, 2008, in both the 16-ounce Monster Energy® and the Java Monster™ lines.
Certain Identified Items
In connection with the transition of certain of the Company’s distribution arrangements, the Company incurred termination costs amounting to $0.2 million and $3.0 million for the three-months and $15.3 million and $12.7 million for the twelve-months ended December 31, 2007 and 2006, respectively, to certain of its prior distributors, who have been replaced by newly appointed Anheuser-Busch distributors. Such termination costs have been expensed in full and are included in operating expenses for the three- and twelve-months ended December 31, 2007 and 2006.
Non-refundable amounts totaling $21.0 million and $20.9 million were recorded by the Company related to such newly appointed Anheuser-Busch distributors for the costs of terminating its prior distributors in the twelve-months ended December 31, 2007 and 2006, respectively. Such payments and commitments have been accounted for as deferred revenue, and are being recognized as revenue ratably over the anticipated 20-year life of the respective Anheuser-Busch distribution agreements. Revenue recognized was $0.5 million and $0.3 million for the three-months ended December 31, 2007 and 2006, respectively. Revenue recognized was $1.9 million and $0.4 million for the year ended December 31, 2007 and 2006, respectively. The anticipated Anheuser-Busch distribution transition arrangements have now largely been completed.
In connection with the Company’s special investigation of stock option grants and granting practices, related litigation and other related matters, the Company incurred professional service fees of $9.8 million (net of $2.5 million insurance reimbursements) and $3.8 million for the twelve-months ended December 31, 2007, and 2006 respectively, which have also been fully expensed in the respective periods.
The following table summarizes the identified items discussed above for the three and twelve-months ended December 31, 2007 and 2006:
Three-Months Ended Twelve-Months Ended
December 31, December 31,
2007 2006 2007 2006
(In Thousands) (In Thousands) (In Thousands) (In Thousands)
Deferred Revenue:
Receipts from newly appointed Anheuser-Busch distributors $ (107 ) $ 8,525 $ 21,029 $ 20,851
Recognized Revenue $ 526 $ 261 $ 1,916 $ 411
Operating Expenses:
Termination payments to prior distributors $ 244 $ 2,974 $ 15,266 $ 12,728
Professional fees associated with the review of stock option grants and granting practices, related litigation and other related matters $ (1,240
)¹
$ 3,753 $ 9,760 ¹ $ 3,753
¹ net of $2.5 million insurance reimbursements
The Company will host an investor conference call on February 28, 2008 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® Natural Sodas and Sparkling beverages, Signature Sodas, fruit juice Smoothies, Energy drinks, multi-vitamin juice drinks in aseptic packaging, Junior Juice® juice, iced teas, apple juice and juice blends, Blue Sky® brand beverages, Monster Energy® brand energy drinks, Java Monster™ line of non-carbonated dairy based coffee drinks, Lost® Energy™ brand energy drinks, Joker Mad Energy™, Unbound Energy® and Ace™ Energy brand energy drinks, Rumba™ brand energy juice, and Fizzit™ brand powdered drink mixes. For more information visit www.hansens.com and www.monsterenergy.com.
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 accounting principles generally accepted in the United States of America (“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 our internal reporting requirements. However, gross sales is used by management to monitor operating performance including sales performance of particular products, salesperson performance, product growth or declines and our overall performance. The use of gross sales allows evaluation of sales performance before the effect of any promotional items, which can mask certain performance issues. Management believes the presentation of gross sales allows a more comprehensive presentation of our operating performance. Gross sales may not be realized in the form of cash receipts as promotional payments and allowances may be deducted from payments received from customers.
Contact:
Hansen Natural Corporation
Rodney C. Sacks, Chairman and Chief Executive Officer
951-739-6200
or
Hilton H. Schlosberg, Vice Chairman
951-739-6200
or
PondelWilkinson Inc.
Roger S. Pondel / Judy Lin Sfetcu
310-279-5980
Source: Hansen Natural Corporation
Thursday February 28, 4:05 pm ET
-- Record Fourth Quarter Net Sales Rise 63% to $247 million; Net Income for the Fourth Quarter Jumps 103% to $45 million; Gross Sales for the Year Exceed $1.0 billion --
CORONA, Calif.----Hansen Natural Corporation today reported record sales and profits for the fourth quarter and year ended December 31, 2007.
Gross sales for the fourth quarter increased 61.5 percent to $277.3 million, from $171.7 million a year earlier. Net sales for the fourth quarter increased 63.0 percent to $246.6 million from $151.3 million a year ago.
Gross profit as a percentage of net sales for the 2007 fourth quarter decreased to 51.0 percent, from 53.1 percent in the comparable 2006 quarter.
Operating income for the fourth quarter increased 81.1 percent to $64.6 million from $35.7 million a year ago. Operating income for the fourth quarter, excluding the identified items described below, increased 49.7 percent to $63.1 million from $42.1 million a year ago. The Company reported an effective tax rate for the fourth quarter of 33.3 percent compared to 39.5 percent last year.
Net income for the 2007 fourth quarter increased 103.1 percent to $45.1 million, or $0.45 per diluted share, from $22.2 million, or $0.23 per diluted share last year.
Gross sales for the year ended December 31, 2007 increased 47.3 percent to $1,025.8 million from $696.3 million a year earlier. Net sales for the year ended December 31, 2007 increased 49.3 percent to $904.5 million from $605.8 million a year ago.
Gross profit as a percentage of net sales was 51.7 percent for 2007, compared with 52.3 percent for 2006.
Operating income for the year ended December 31, 2007 increased 45.7 percent to $231.0 million from $158.6 million a year ago. Operating income for the year ended December 31, 2007, excluding the identified items described below, increased 45.5 percent to $254.1 million from $174.6 million a year ago. The Company reported an effective tax rate for the year of 37.7 percent compared to 39.6 percent last year.
Net income for the year ended December 31, 2007 increased 52.5 percent to $149.4 million, or $1.51 per diluted share, from $97.9 million, or $0.99 per diluted share, last year.
Rodney C. Sacks, chairman and chief executive officer, said that the record revenues reflected continued strong sales of Monster Energy® brand energy drinks as well as the Java Monster™ line of non-carbonated dairy based coffee drinks (introduced in April 2007) and Monster M-80 energy (introduced in March 2007). “We are excited by the launch in December 2007 of the five new Java Monster™ line extensions as well as the launch of our new Monster Heavy Metal™ (introduced in November 2007) and Monster MIXXD™ (introduced in December 2007). We are extremely pleased by the reception both from the trade and consumers to our new line extensions.
“The energy category continues to show strong growth and the Monster Energy® brand continues to grow in excess of the overall category growth,” Sacks said. Also, Mr. Sacks noted that fourth quarter sales benefited from purchases made by customers in anticipation of the price increase, effective January 1, 2008, in both the 16-ounce Monster Energy® and the Java Monster™ lines.
Certain Identified Items
In connection with the transition of certain of the Company’s distribution arrangements, the Company incurred termination costs amounting to $0.2 million and $3.0 million for the three-months and $15.3 million and $12.7 million for the twelve-months ended December 31, 2007 and 2006, respectively, to certain of its prior distributors, who have been replaced by newly appointed Anheuser-Busch distributors. Such termination costs have been expensed in full and are included in operating expenses for the three- and twelve-months ended December 31, 2007 and 2006.
Non-refundable amounts totaling $21.0 million and $20.9 million were recorded by the Company related to such newly appointed Anheuser-Busch distributors for the costs of terminating its prior distributors in the twelve-months ended December 31, 2007 and 2006, respectively. Such payments and commitments have been accounted for as deferred revenue, and are being recognized as revenue ratably over the anticipated 20-year life of the respective Anheuser-Busch distribution agreements. Revenue recognized was $0.5 million and $0.3 million for the three-months ended December 31, 2007 and 2006, respectively. Revenue recognized was $1.9 million and $0.4 million for the year ended December 31, 2007 and 2006, respectively. The anticipated Anheuser-Busch distribution transition arrangements have now largely been completed.
In connection with the Company’s special investigation of stock option grants and granting practices, related litigation and other related matters, the Company incurred professional service fees of $9.8 million (net of $2.5 million insurance reimbursements) and $3.8 million for the twelve-months ended December 31, 2007, and 2006 respectively, which have also been fully expensed in the respective periods.
The following table summarizes the identified items discussed above for the three and twelve-months ended December 31, 2007 and 2006:
Three-Months Ended Twelve-Months Ended
December 31, December 31,
2007 2006 2007 2006
(In Thousands) (In Thousands) (In Thousands) (In Thousands)
Deferred Revenue:
Receipts from newly appointed Anheuser-Busch distributors $ (107 ) $ 8,525 $ 21,029 $ 20,851
Recognized Revenue $ 526 $ 261 $ 1,916 $ 411
Operating Expenses:
Termination payments to prior distributors $ 244 $ 2,974 $ 15,266 $ 12,728
Professional fees associated with the review of stock option grants and granting practices, related litigation and other related matters $ (1,240
)¹
$ 3,753 $ 9,760 ¹ $ 3,753
¹ net of $2.5 million insurance reimbursements
The Company will host an investor conference call on February 28, 2008 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® Natural Sodas and Sparkling beverages, Signature Sodas, fruit juice Smoothies, Energy drinks, multi-vitamin juice drinks in aseptic packaging, Junior Juice® juice, iced teas, apple juice and juice blends, Blue Sky® brand beverages, Monster Energy® brand energy drinks, Java Monster™ line of non-carbonated dairy based coffee drinks, Lost® Energy™ brand energy drinks, Joker Mad Energy™, Unbound Energy® and Ace™ Energy brand energy drinks, Rumba™ brand energy juice, and Fizzit™ brand powdered drink mixes. For more information visit www.hansens.com and www.monsterenergy.com.
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 accounting principles generally accepted in the United States of America (“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 our internal reporting requirements. However, gross sales is used by management to monitor operating performance including sales performance of particular products, salesperson performance, product growth or declines and our overall performance. The use of gross sales allows evaluation of sales performance before the effect of any promotional items, which can mask certain performance issues. Management believes the presentation of gross sales allows a more comprehensive presentation of our operating performance. Gross sales may not be realized in the form of cash receipts as promotional payments and allowances may be deducted from payments received from customers.
Contact:
Hansen Natural Corporation
Rodney C. Sacks, Chairman and Chief Executive Officer
951-739-6200
or
Hilton H. Schlosberg, Vice Chairman
951-739-6200
or
PondelWilkinson Inc.
Roger S. Pondel / Judy Lin Sfetcu
310-279-5980
Source: Hansen Natural Corporation