Source: Monster Beverage Corporation
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Hansen Natural Reports Record 2009 Third Quarter Financial Results

Third Quarter Net Sales Rise 8.1% to $307.9 Million; Operating Income Increases 13.6% to $92.9 Million

CORONA, Calif., Nov. 5, 2009 (GLOBE NEWSWIRE) -- Hansen Natural Corporation (Nasdaq:HANS) today reported record sales and profits for the three- and nine-months ended September 30, 2009.

Gross sales for the 2009 third quarter increased 9.2 percent to $355.0 million from $325.2 million in the same period last year. Net sales for the three-months ended September 30, 2009 increased 8.1 percent to $307.9 million from $285.0 million a year ago.

Gross profit, as a percentage of net sales, for the 2009 third quarter was 53.6 percent, compared with 52.4 percent for the comparable 2008 quarter. Operating expenses for the 2009 third quarter increased to $72.1 million from $67.6 million in the same quarter last year.

Distribution costs as a percentage of net sales were 4.3 percent for the 2009 third quarter, compared with 5.5 percent in the same quarter last year.

Selling expenses as a percentage of net sales for the 2009 third quarter were 12.5 percent, compared with 11.1 percent in the same quarter a year ago.

General and administrative expenses for both the 2009 and 2008 third quarters were $20.3 million. Stock-based compensation (a non-cash item) was $3.3 million in the third quarter of 2009, compared with $4.0 million for the third quarter of 2008.

Operating income for the 2009 third quarter increased 13.6 percent to $92.9 million from $81.8 million in the comparable 2008 quarter.

Net income for the 2009 third quarter increased 7.8 percent to $56.5 million, or $0.60 per diluted share, compared with $52.4 million, or $0.54 per diluted share in the same quarter last year.

Net sales for the Company's DSD segment increased approximately 9.6 percent to $282.4 million for the 2009 third quarter from $257.7 million for the same period in 2008. Net sales for the Company's warehouse segment were $25.6 million for the three-months ended September 30, 2009, compared with $27.3 million for the same period in 2008.

Gross sales to customers outside the United States, after the inclusion of sales to certain military customers, were $50.0 million in the 2009 third quarter, compared with $30.7 million in the corresponding quarter in 2008.

During the third quarter the Company repurchased 1.6 million shares of its common stock at an average purchase price of $31.96 per share.

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 are encouraged by the positive sales numbers reported by Nielsen for the five weeks ended September 26, 2009, which reflect that energy drink sales both in the important convenience and gas channel as well as the grocery channel, on a year-on-year comparable basis, grew for the first time since March 2009," said Sacks.

Sacks also said that the transition to certain Coca-Cola bottlers and new Anheuser-Busch distributors at the end of last year continues to be beneficial as the Company's national market share in both the convenience and gas and grocery channels is now higher than it was prior to the transition. In fact, Monster Energy's(R) market share in the important convenience and gas channel increased to 30% for the first time during the five weeks ended September 26, 2009.

According to Nielsen, Monster Energy's(R) market share in Canada is also higher than it was prior to the transition to the Coca-Cola system in Canada. Sales in Mexico continue to be satisfactory.

For the nine-months ended September 30, 2009, gross sales increased 9.7 percent to $979.7 million from $893.3 million for the comparable period a year earlier. Net sales for the first nine months of 2009 increased 9.4 percent to $852.4 million from $779.4 million for the same period of 2008.

Gross profit as a percentage of net sales was 53.6 percent for the first nine months of 2009, compared with 51.4 percent for the same period last year.

Operating expenses for the first three quarters of 2009 increased to $205.6 million from $197.6 million in the same period last year. Operating income for the first nine months of 2009 increased 24.0 percent to $251.5 million from $202.8 million in the corresponding period in 2008.

Net income for the first nine months of 2009 increased 18.2 percent to $155.4 million, or $1.63 per diluted share, compared with $131.5 million, or $1.34 per diluted share, for the same period last year.

Auction Rate Securities

During the nine-months ended September 30, 2009, the Company redeemed $12.3 million of its auction rate securities at par. At September 30, 2009 the Company held auction rate securities with a face value of $100.2 million ($100.5 million at June 30, 2009, $102.0 million at March 31, 2009 and $112.5 million at December 31, 2008). The Company determined that a cumulative impairment of $12.1 million had occurred at September 30, 2009, ($12.3 million as of June 30, 2009, $15.5 million at March 31, 2009 and $14.9 million as of December 31, 2008), of which $7.6 million was deemed temporary and $4.5 million was deemed other than temporary. As a result, included as a component of other comprehensive loss is $4.5 million of accumulated net unrealized losses on available-for-sale securities, net of tax benefits of $3.1 million as of September 30, 2009. Included in other income/(expense) is an other-than-temporary impairment of $0.3 million and $3.9 million for the three- and nine-months ended September 30, 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, November 5, 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, Nitrous(TM) Monster Energy(R) brand energy drinks, Monster Hitman(TM) energy shooters, Java Monster(TM) brand non-carbonated coffee + energy drinks, X-Presso Monster(TM) brand non-carbonated espresso energy drinks, Lost(R) Energy(TM) brand energy drinks, Rumba(R), Samba and Tango brand energy juices and Vidration(TM) brand vitamin enhanced waters. For more information visit www.hansens.com and www.monsterenergy.com.

Note Regarding Use of Non-GAAP Measures

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.

Caution Concerning Forward-Looking Statements

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 our future operating results and other future events including revenues and profitability. Management cautions that these statements are based on management's current knowledge and expectations and are subject to certain risks and uncertainties, 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. Such risks and uncertainties include, but are not limited to, the following: actual performance of the parties under the new distribution agreements; potential disruptions arising out of the transition of certain territories to new distributors; changes in sales levels by existing distributors; unanticipated costs incurred in connection with the termination of existing distribution agreements or the transition to new distributors; changes in consumer preferences; changes in demand due to economic conditions; activities and strategies of competitors, including the introduction of new products and competitive pricing and/or marketing of similar products; changes in the price and/or availability of raw materials; other supply issues, including the availability of products and/or suitable production facilities; product distribution and placement decisions by retailers; political, legislative or other governmental actions or events in one or more regions in which we operate. For a more detailed discussion of these and other risks that could affect our operating results, see 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 assumes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.



 HANSEN NATURAL CORPORATION AND SUBSIDIARIES                          
 CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND OTHER INFORMATION    
 FOR THE THREE-AND NINE-MONTHS ENDED SEPTEMBER 30, 2009 AND 2008      
 (In Thousands, Except Per Share Amounts) (Unaudited)                 
                                                                      
                                                                      
                          Three-Months Ended      Nine-Months Ended   
                            September 30,            September 30,    
                        ---------------------   --------------------- 
                           2009        2008        2009        2008   
                        ---------   ---------   ---------   --------- 
 Gross sales, net of                                                  
  discounts and                                                       
  returns*              $ 355,048   $ 325,152   $ 979,732   $ 893,284 
                                                                      
 Less: Promotional and                                                
  other allowances**       47,119      40,166     127,347     113,876 
                        ---------   ---------   ---------   --------- 
                                                                      
 Net sales                307,929     284,986     852,385     779,408 
                                                                      
 Cost of sales            142,897     135,550     395,345     379,039 
                        ---------   ---------   ---------   --------- 
                                                                      
 Gross profit             165,032     149,436     457,040     400,369 
 Gross profit margin                                                  
  as a percentage of                                                  
  net sales                  53.6%       52.4%       53.6%       51.4%
                                                                      
 Operating expenses        72,117      67,644     205,565     197,560 
 Operating expenses                                                   
  as a percentage of                                                  
  net sales                  23.4%       23.7%       24.1%       25.3%
                        ---------   ---------   ---------   --------- 
                                                                      
 Operating income          92,915      81,792     251,475     202,809 
 Operating income                                                     
  as a percentage of 
  net sales                  30.2%       28.7%       29.5%       26.0%
                                                                      
 Other income                                                         
  (expense):                                                          
 Interest and other                                                   
  income, net                 183       2,111       1,599       8,506 
 Other-than-temporary                                                 
  impairment of                                                       
  investments                (342)         --      (3,880)         -- 
                        ---------   ---------   ---------   --------- 
      Total other                                                     
       income                                                         
       (expense)             (159)      2,111      (2,281)      8,506 
                        ---------   ---------   ---------   --------- 
                                                                      
 Income before                                                        
  provision for income                                                
  taxes                    92,756      83,903     249,194     211,315 
                                                                      
 Provision for income                                                 
  taxes                    36,251      31,466      93,835      79,835 
                        ---------   ---------   ---------   --------- 
                                                                      
 Net income             $  56,505   $  52,437   $ 155,359   $ 131,480 
                        =========   =========   =========   ========= 
 Net income as a                                                      
  percentage of net                                                   
  sales                      18.4%       18.4%       18.2%       16.9%
                                                                      
 Net income per common                                                
  share:                                                              
      Basic             $    0.63   $    0.57   $    1.72   $    1.42 
                        =========   =========   =========   ========= 
      Diluted           $    0.60   $    0.54   $    1.63   $    1.34 
                        =========   =========   =========   ========= 
                                                                      
 Weighted average                                                     
  number of shares of                                                 
  common stock and                                                    
  common  stock                                                       
  equivalents:                                                        
      Basic                90,154      92,337      90,380      92,852 
                        =========   =========   =========   ========= 
      Diluted              94,683      96,916      95,060      97,997 
                        =========   =========   =========   ========= 
                                                                      
 Case sales (in                                                       
  thousands)                                                          
  (in 192-ounce case                                                  
  equivalents)             29,800      28,009      82,524      79,009 
 Average net sales                                                    
  price per case        $   10.33   $   10.17   $   10.33   $    9.86 
                                                                      
                                                                      
                                                                      
                                                                      
 *  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 are 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.                            
                                                                      
 ** Although the expenditures described in this line item are         
    determined in accordance with GAAP and meet GAAP requirements,    
    the disclosure thereof does not conform with GAAP presentation    
    requirements. Additionally, the presentation of promotional and   
    other allowances may not be comparable to similar items presented 
    by other companies. The presentation of promotional and other     
    allowances facilitates an evaluation of the impact thereof on the 
    determination of net sales and illustrates the spending levels    
    incurred to secure such sales. Promotional and other allowances   
    constitute a material portion of our marketing activities.


 HANSEN NATURAL CORPORATION AND SUBSIDIARIES                          
 CONDENSED CONSOLIDATED BALANCE SHEETS                                
 AS OF SEPTEMBER 30, 2009 AND DECEMBER 31, 2008                       
 (In Thousands, Except Par Value) (Unaudited)                         
                                                                      
                                                Sept. 30,     Dec. 31,
                                                  2009         2008   
                                               ---------    --------- 
                   ASSETS 
                   ------                                            
 CURRENT ASSETS:                                                      
 Cash and cash equivalents                     $ 317,657    $ 256,801 
 Short-term investments                           30,187       29,145 
 Trade accounts receivable, net                   91,939       45,233 
 Distributor receivables                           5,350       90,722 
 Inventories                                     123,942      116,326 
 Prepaid expenses and other current assets         9,705        8,379 
 Prepaid income taxes                                 --        4,977 
 Deferred income taxes                             9,741        9,741 
                                               ---------    --------- 
      Total current assets                       588,521      561,324 
                                                                      
 INVESTMENTS                                      87,969       89,567 
 PROPERTY AND EQUIPMENT, net                      28,075       14,389 
 DEFERRED INCOME TAXES                            63,170       65,748 
 INTANGIBLES, net                                 31,674       28,365 
 OTHER ASSETS                                      1,885        2,444 
                                               ---------    --------- 
 TOTAL ASSETS:                                 $ 801,294    $ 761,837 
                                               =========    ========= 
                                                                      
       LIABILITIES AND STOCKHOLDERS' EQUITY      
       ------------------------------------                       
 CURRENT LIABILITIES:                                                 
 Accounts payable                              $  66,950    $  64,787 
 Accrued liabilities                              25,957       12,524 
 Accrued distributor terminations                  3,151      102,282 
 Accrued compensation                              6,103        6,782 
 Current portion of debt                             381          959 
                                                                      
 Income taxes payable                              5,189           -- 
                                               ---------    --------- 
      Total current liabilities                  107,731      187,334 
                                                                      
 DEFERRED REVENUE                                132,604      138,187 
                                                                      
 STOCKHOLDERS' EQUITY:                                                
 Common stock - $0.005 par value;                                     
   120,000 shares authorized; 97,207                                  
   shares issued and 89,090 outstanding                               
   as of September 30, 2009;                                          
   96,851 shares issued and 90,328                                    
   outstanding as of December 31, 2008               486          484 
 Additional paid-in capital                      131,045      117,106 
 Retained earnings                               617,039      461,680 
 Accumulated other comprehensive loss             (4,525)     (10,825)
 Common stock in treasury, at cost;                                   
   8,117 and 6,523 shares as of                                       
   September 30, 2009 and                                             
   December 31, 2008, respectively              (183,086)    (132,129)
                                               ---------    --------- 
      Total stockholders' equity                 560,959      436,316 
                                               ---------    --------- 
 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY:   $ 801,294    $ 761,837 
                                               =========    =========
Hansen Natural Corporation
Rodney C. Sacks, Chairman and Chief Executive Officer
Hilton H. Schlosberg, Vice Chairman
(951) 739-6200

PondelWilkinson Inc.
Roger S. Pondel
Judy Lin Sfetcu
(310) 279-5980

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