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TheStreet Open House

Hansen Natural Reports Record Sales For 2010 Fourth Quarter And Full Year

Stocks in this article: HANS

Investor Conference Call

The Company will host an investor conference call on February 24, 2011 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 . For those who are not able to listen to the live broadcast, the call will be archived for approximately one year on the Web site.

Hansen Natural Corporation

Based in Corona, California, Hansen Natural Corporation markets and distributes Hansen's® 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® juices and water beverages, Blue Sky® brand beverages, Monster Energy® brand energy drinks, Monster Energy® Extra Strength Nitrous Technology™ energy drinks, Java Monster™ brand non-carbonated coffee + energy drinks, X-Presso Monster™ brand non-carbonated espresso energy drinks, Peace Tea™ iced teas, Worx Energy™ energy shots, Lost® Energy™ brand energy drinks, Rumba®, Samba and Tango brand energy juices, Vidration™ brand vitamin enhanced waters, Admiral™ iced teas and Hubert's™ Lemonades. 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 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.

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: the current uncertainty and volatility in the national and global economy; changes in consumer preferences; changes in demand due to both domestic and international economic conditions; activities and strategies of competitors, including the introduction of new products and competitive pricing and/or marketing of similar products; 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 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; changes in governmental regulation; the imposition of excise and/or other taxes on our products; criticism of energy drinks and/or the energy drink market generally; the impact of proposals to limit or restrict the sale of energy drinks to minors and/or persons below a specified age and/or restrict the venues in which energy drinks can be sold; 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 CONSOLIDATED STATEMENTS OF INCOME AND OTHER INFORMATION FOR THE THREE-AND TWELVE-MONTHS ENDED DECEMBER 31, 2010 AND 2009 (In Thousands, Except Per Share Amounts) (Unaudited)  
     
  Three-Months Ended Twelve-Months Ended
  December 31, December 31,
  2010 2009 2010 2009
Gross sales, net of discounts and returns* $ 364,067 $ 329,603  $  1,488,516 $   1,309,335
         
Less: Promotional and other allowances** 45,402 38,689  184,574 166,036
         
Net sales 318,665 290,914  1,303,942 1,143,299
         
Cost of sales 154,255 135,638 623,702 530,983
         
Gross profit 164,410 155,276 680,240 612,316
Gross profit margin as a percentage of net sales 51.6% 53.4% 52.2% 53.6%
         
Operating expenses 84,613 69,442 332,426 275,007
Operating expenses as a percentage of net sales 26.6% 23.9% 25.5% 24.1%
         
Operating income 79,797 85,834 347,814 337,309
Operating income as a percentage of net sales 25.0% 29.5% 26.7% 29.5%
         
Other income (expense):        
Interest and other income, net 262 674 2,246 2,273
Gain (loss) on investment and put option, net 106 (7) (758) (3,887)
 Total other income (expense) 368 667 1,488 (1,614)
         
Income before provision for income taxes 80,165 86,501 349,302 335,695
         
Provision for income taxes 31,033 33,144 137,273 126,979
         
Net income $   49,132 $ 53,357 $ 212,029 $   208,716
Net income as a percentage of net sales 15.4% 18.3% 16.3% 18.3%
         
Net income per common share:      
 Basic $   0.55 $ 0.60 $ 2.40 $   2.32
 Diluted $ 0.53 $ 0.57 $ 2.28 $   2.21
         
Weighted average number of shares of common stock    and common stock equivalents:        
  Basic 88,750 88,744 88,514 89,967
  Diluted 93,322 93,398 93,021 94,643
         
Case sales (in thousands) (in 192-ounce case equivalents) 31,109 27,461 129,031 109,985
Average net sales price per case $  10.24 $ 10.59 $ 10.11 $   10.40
 
*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 CONSOLIDATED BALANCE SHEETS AS OF DECEMBER 31, 2010 AND DECEMBER 31, 2009 (In Thousands, Except Par Value) (Unaudited)
 
  December 31, 2010 December 31, 2009
ASSETS    
CURRENT ASSETS:    
Cash and cash equivalents $   354,842  $ 328,349
Short-term investments 244,649  18,487
Trade accounts receivable, net 101,222  104,206
Distributor receivables 413  4,699
Inventories 153,241  108,143
Prepaid expenses and other current assets 17,022  11,270
Prepaid income taxes 9,992 --
Deferred income taxes 16,772  10,350
 Total current assets 898,153  585,504
     
INVESTMENTS 44,189  80,836
PROPERTY AND EQUIPMENT, net 34,551  33,314
DEFERRED INCOME TAXES 58,475  65,678
INTANGIBLES, net 43,316  33,512
OTHER ASSETS 3,447  1,226
  Total Assets $ 1,082,131  $ 800,070
     
LIABILITIES AND STOCKHOLDERS' EQUITY    
CURRENT LIABILITIES:    
Accounts payable $   85,674 $ 48,863
Accrued liabilities 23,811 14,174
Deferred revenue 10,140 9,125
Accrued distributor terminations 407 2,977
Accrued compensation 7,603 7,623
Current portion of debt 274 206
Income taxes payable 925 761
 Total current liabilities 128,834 83,729
     
DEFERRED REVENUE 124,899 131,388
     
STOCKHOLDERS' EQUITY:    
Common stock -- $0.005 par value; 120,000 shares authorized;  98,731 shares issued and 88,980 outstanding as of December 31, 2010;  97,285 shares issued and 88,159 outstanding as of December 31, 2009  494     486
Additional paid-in capital 187,040 137,040
Retained earnings 882,425 670,396
Accumulated other comprehensive income (loss) 281 (4,667)
Common stock in treasury, at cost; 9,751 shares and 9,126 shares as of  December 31, 2010 and December 31, 2009, respectively (241,842)   (218,302)
 Total stockholders' equity 828,398 584,953
   Total Liabilities and Stockholders' Equity $ 1,082,131 $ 800,070
CONTACT: Rodney C. Sacks
         Chairman and Chief Executive Officer
         (951) 739-6200
         
         Hilton H. Schlosberg
         Vice Chairman
         (951) 739-6200
         
         Roger S. Pondel / Judy Lin Sfetcu
         PondelWilkinson Inc.
         (310) 279-5980

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