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HANSEN NATURAL CORP. (HANS) REPORTS NET PROFIT FOR SECOND QUARTER

 ANAHEIM, Calif., Aug. 17 /PRNewswire/ -- Hansen Natural Corp. (NASDAQ: HANS) today reported consolidated net income of $222,207 for the three months ended June 30, 1993, and $305,332 for the six months ended June 30, 1993. Consolidated net sales for the three-month period were $6,348,535 and for the six-month period were $10,894,946.
 Hansen Natural Corp. markets and distributes Hansen's(R) natural sodas and Hansen's(R) natural old fashioned apple juice and apple cider. The company acquired the Hansen business on July 27, 1992.
 California CoPackers Corp. (CCC), the company from which Hansen Natural acquired the Hansen business, earned a net profit of $270,000 on net sales of $5,874,000 for the three months ended June 30, 1992, and a net profit of $74,000 on net sales of $9,860,000 for the six months ended June 30, 1992.
 Rodney C. Sacks, chairman and chief executive officer, noted that Hansen Natural's positive results were achieved after absorbing a provision of $125,000 and $250,000 for amortization of the company's trademark license for the three-month and six-month periods, respectively.
 In the three months ended June 30, 1992, a period prior to the acquisition of the Hansen business, the company had no sales from operations, and its consolidated net loss for that three-month period was $104,387. Included in such net loss was non-operating income of $55,403, which was derived from interest income.
 On a per share basis, the company earned $0.02 per share for the three months ended June 30, 1993, and $0.03 per share for the six months ended June 30, 1993, compared to losses of $0.01 and $0.03 per share for the corresponding periods in 1992.
 Because CCC may be deemed a "predecessor" of the company for the purposes of the rules and regulations of the Securities and Exchange Commission, the interim results of operations of CCC for the three-month and six-month periods ended June 30, 1992, are set forth below, in a condensed format, and are compared with the actual results of operations of the company for the three-month and six-month periods ended June 30, 1993. The results of operations of the company and CCC are not directly comparable, particularly with respect to certain non operating expenses and the amortization of intangibles.
 Financial Summary
 (Amounts in thousands, except per share data)
 (Unaudited)
 Three Months Six Months
 Ended June 30, Ended June 30,
 HANS CCC HANS CCC
 1993 1992 1993 1992
 Net Sales $6,349 $5,874 $10,895 $9,860
 Gross profit $2,692 $2,417 $4,670 $3,925
 Operating expenses:
 Selling, general &
 administrative 1,954 1,424 3,481 2,402
 Amortization of trademark
 license 125 190 250 380
 Other expenses 111 128 222 259
 Total operating expenses 2,190 1,742 3,953 3,041
 Operating income 502 675 717 884
 Total non-operating expense 128 405 213 810
 Income before provision
 for income taxes 374 270 504 74
 Provision for income taxes 152 --- 199 ---
 Net income $222 $270 $305 $74
 For comparative purposes, earnings per share calculations are not meaningful and are therefore not provided.
 The increase in selling, general and administrative expenses was primarily attributable to aggressive marketing and promotional programs which contributed to the increase in net sales and increased payroll costs to support the company's expansion plans.
 Total non-operating expense consists of interest expense and interest income and a provision for a litigation settlement in the second quarter of 1993. The decrease in total non-operating expense was primarily attributable to a reduction of approximately $9.9 million of the debt owed to Erly Industries by CCC at the time of the acquisition. The reduction resulted from the payment by the company of $5.2 million to or on behalf of Erly Industries at the closing of the acquisition of the Hansen business, and from related debt cancellation of $4.7 million recorded by CCC in connection with the acquisition.
 On a pro forma basis, sales of soda on a case and case-equivalent basis for the three-month and six-month periods ended June 30, 1993, were 963,000 and 1.626 million cases, respectively, compared to 873,000 and 1.424 million cases for the same periods in 1992.
 On a pro forma basis, sales of apple juice on a case and case- equivalent basis for the three-month and six-month periods ended June 30, 1993, were 81,000 and 168,000 cases, respectively, compared to 54,000 and 125,000 cases for the same periods in 1992.
 New Products
 New product introductions for the 1993 summer season include a new Kiwi Strawberry flavor for the natural soda line and natural sodas in 23-ounce bottles. Hansen's(R) natural sodas currently are available in nine flavors, consisting of Mandarin Lime, Lemon Lime, Grapefruit, Raspberry, Clear Root Beer, Clear Cola, Cherry, Peach and Kiwi Strawberry. These products contain no preservatives, sodium, caffeine or artificial coloring and are made with high quality natural flavors.
 The company also launched a new range of non-carbonated beverages that include lemonades, flavored lemonades and iced teas and intends to launch a new range of blended juice cocktails in 16-ounce glass bottles. The new lemonade and tea products became available during July 1993. The blended juice cocktails are scheduled to be introduced at the end of the year. Management believes that the initial response by retailers and consumers in California and Washington to the introduction of the company's new teas, lemonades and Kiwi Strawberry flavor has been favorable.
 In addition, Hansen plans to introduce a non-carbonated natural spring water product in .5 liter, 1 liter and 1.5 liter plastic containers in August.
 Distribution
 The company announced that arrangements have recently been concluded for the manufacture and/or distribution of Hansen's sodas in four Western Provinces of Canada, the Baja Region of Northwestern Mexico and the State of New Mexico.
 Various of the company's products are currently being distributed in the states of California, Hawaii, Arizona, Nevada, Colorado, Oregon, Washington, Utah, Idaho, Ohio, Michigan, Arkansas, Illinois, Indiana, and New Mexico, in portions of Tennessee, Mississippi, Louisiana and Texas, as well as in parts of Mexico and beginning this week, in portions of Canada.
 Management noted that several previously announced agreements with respect to the manufacture and/or distribution of Hansen's products have had to be revised. In one case, the bottler that had been appointed to produce and distribute Hansen's products in New Jersey, New York and lower Connecticut failed to secure adequate distribution within his territory. Management concluded that it would be in the best interests of the company to discontinue that relationship. The bottler and Hansen mutually agreed to terminate the agreement.
 The company intends to arrange, through its regional manager in New York, for the production (through copackers) and distribution of Hansen's products on the East Coast, working directly with club stores, chains and/or distributors.
 In another case, during July it became apparent that one of the bottlers which the company had authorized to produce and distribute Hansen's products in a portion of Texas was experiencing technical problems in the production of an all-natural product. As a result, that bottler will be discontinuing the manufacture and distribution of Hansen's products. Management is presently evaluating whether to seek a replacement bottler or to take over the sales and marketing of Hansen's products in all of Texas, operating on the same basis as it does in California.
 The company also announced that the bottler which has been responsible for the production and distribution of Hansen's sodas in 11-ounce glass bottles in Michigan and Ohio for the past two years has advised the company that for various reasons, including certain conflicts of interest that have arisen with other competitive brands handled by the bottler and its inability to handle Hansen's iced tea and lemonade products, it will cease to manufacture and distribute Hansen's sodas in 11-ounce bottles after the summer season.
 The company stated that discussions are underway with an alternative bottler for the manufacture and distribution of Hansen's sodas in Ohio and a portion of Pennsylvania. These discussions envisage the manufacture and sale of Hansen's sodas in 12-ounce cans as well as 23- ounce bottles, and the distribution of Hansen's iced teas and lemonades.
 Management believes that an agreement with this bottler could result in a substantial increase in the sales of the company's products in this territory, and could make available to the company copacking capacity on the East Coast. The company is also seeking an alternative distributor for Michigan.
 Management is continuing to hold discussions for the manufacture and distribution of Hansen's sodas in other territories, but it has been concentrating its efforts this summer on the sale of its sodas in those markets where it already has secured representation.
 Management has decided to expand distribution of Hansen's products into Arizona, taking on direct responsibility for the production and marketing of Hansen's products in that state. Products for the Arizona market will be manufactured in California and shipped to customers in Arizona. Club stores in Arizona are already selling Hansen's products, and sales in certain chain stores are expected to begin later this year.
 The company also announced that it is moving ahead with the international distribution of Hansen's products. Production of finished product in cans in the United Kingdom is scheduled for the beginning of September. Discussions are being held with potential bottlers and/or distributors in the United Kingdom, Spain and France for distribution of Hansen's sodas in those countries.
 Management stated that an agreement has been reached for the distribution of Hansen's sodas in the Philippines. Initially the company will sell finished product to the distributor. However, it is anticipated that Hansen's products eventually will be manufactured in the Philippines.
 The company stated that discussions are also underway with prospective distributors for Hansen's sodas in Turkey and Morocco. Production is expected to begin in those countries shortly.
 -0- 8/17/93
 /CONTACT: Alex Auerbach or Mel Rifkind of Melvyn S. Rifkind Inc., 818-501-4221, for Hansen Natural/
 (HANS)


CO: Hansen Natural Corp. ST: California IN: FOD SU: ERN

JB-MF -- LA018 -- 3651 08/17/93 15:13 EDT
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Date:Aug 17, 1993
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