Hansen Natural Corporation has reported financial results for the first quarter ended March 31, 2010. Gross sales for the first quarter decreased 3% from the same period last year. Net sales for the first quarter of 2010 decreased 2.5% to $238.1 million from $244.2 million in the same period last year.
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Hansen Natural Reports 2010 First Quarter Financial Results
CORONA, Calif.(GlobeNewswire via COMTEX) -- Hansen Natural Corporation (HANS 35.70, -6.84, -16.08%) today reported financial results for the first quarter ended March 31, 2010.
Gross sales for the 2010 first quarter decreased 3.0 percent to $270.6 million from $278.9 million in the same period last year. Net sales for the first three months of 2010 decreased 2.5 percent to $238.1 million from $244.2 million in the same period last year. Both gross and net sales for the 2010 first quarter were impacted by advance purchases made by customers in the fiscal 2009 fourth quarter due to the Company's announcement of a new per case marketing contribution program for Monster Energy(R) distributors commencing January 1, 2010, as well as to avoid potential interruptions in product supply due to the announcement of our transition to the SAP enterprise resource planning system commencing January 1, 2010. The Company previously estimated that approximately 4 percent to 6 percent of our fiscal 2009 fourth quarter gross sales were attributable to such advance purchases. In addition, sales of Monster Hitman(TM) energy shooters were significantly down from the same quarter in the prior year.
Gross profit as a percentage of net sales was 52.3 percent for the three months ended March 31, 2010, compared with 53.3 percent for the comparable 2009 first quarter, which decrease was largely as a result of product and geographic mix.
Operating expenses for the 2010 first quarter increased to $73.8 million from $64.4 million in the same quarter last year, partially attributable to increased payroll expenses and increased expenditures for sponsorships and endorsements.
Distribution costs as a percentage of net sales were 4.9 percent for the 2010 first quarter, compared with 4.5 percent in the same quarter last year.
Selling expenses as a percentage of net sales for the 2010 first quarter were 13.0 percent, compared with 12.5 percent in the same quarter a year ago.
General and administrative expenses for the 2010 first quarter were $31.2 million, compared with $23.0 million for the corresponding quarter last year. Stock based compensation (a non-cash item) was $5.0 million in the first quarter of 2010, compared with $2.7 million in the corresponding prior year period. Increased payroll, legal fees and SAP costs also contributed to the higher expenses versus the 2009 first quarter.
Operating income for the 2010 first quarter was $50.8 million, compared with $65.8 million in the 2009 comparable quarter.
The effective tax rate for the 2010 first quarter was 37.1% compared with 34.3% in the same quarter last year, largely as a result of a reduction in our uncertain tax positions in the 2009 first quarter.
Net income for the 2010 first quarter was $32.6 million, or $0.35 per diluted share, compared with $41.6 million, or $0.44 per diluted share in the same quarter last year.
Net sales for the Company's DSD segment were $217.2 million for the 2010 first quarter, compared with $220.9 million in the same quarter last year.
Gross sales to customers outside the United States rose to $37.8 million in the 2010 first quarter, from $35.3 million in the corresponding quarter in 2009.
Rodney C. Sacks, chairman and chief executive officer, noted that the core Monster Energy(R) brand continues to gain strength both in the United States and internationally. "Nielsen continues to report ongoing improved results for the Monster Energy(R) brand, ahead of category growth," said Sacks.
"We are planning to introduce new products in 2010, both domestically and internationally and we are continuing with our international expansion plans in Western, Central and Eastern Europe, the Middle East and South America, as well as evaluating additional geographies and opportunities for the Monster Energy(R) brand," Sacks added.
SOURCE: The Wall Street Journal MarketWatch
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