Hansen Natural Corporation Reports Record Financial Results for 2005 Year; Net Income Triples; Net Sales up 93%

CORONA, Calif.--(BUSINESS WIRE)--March 9, 2006--Hansen Natural Corporation (Nasdaq:HANS) today announced record sales and profits for the year and fourth quarter ended December 31, 2005.

For the 2005 year, gross sales rose 85.4 percent to $415.4 million from $224.1 million in 2004. Net sales for 2005 increased 93.5 percent to $348.9 million from $180.3 million in the prior year. Operating income grew 205.3 percent in 2005 to $103.4 million from $33.9 million a year ago. Net income advanced 207.9 percent to $62.8 million, or $2.59 per diluted share, from $20.4 million, or $0.86 per diluted share, a year ago.

Rodney C. Sacks, chairman and chief executive officer, said the record sales and profits for 2005 were primarily attributable to substantially increased sales volumes of the company's Monster Energy(R) drinks and, to a lesser extent, of Lost(R) energy drinks and Joker Mad Energy(TM) drinks. Increased sales volumes of apple juice and apple juice blends also contributed to the record sales. He added that the increase in sales was partially offset by decreased sales volumes primarily of Hansen's(R) Natural Sodas, Hansen's energy drinks, Energade(R) and Smoothies in cans.

Gross profit as a percentage of net sales for the year rose to 52.3 percent from 46.3 percent in 2004, primarily due to increased sales of higher margin Monster Energy(TM) and Lost(R) energy drinks. Selling, general and administrative expenses as a percentage of net sales were lower than in the previous year.

For the 2005 fourth quarter, gross sales rose 83.9 percent to $113.6 million from $61.8 million a year earlier. Net sales increased 94.7 percent to $98.0 million from $50.3 million in 2004. Operating income increased to $29.8 million from $11.9 million a year ago. Net income increased to $18.4 million, or $0.75 per diluted share, from $7.3 million, or $0.31 per diluted share, in the comparable period in 2004.

The increase in net income for the fourth quarter compared with the prior year period was primarily attributable to the substantial increase in sales volumes of Monster Energy(TM) drinks.

Sacks also said that sales of Monster Energy(TM) "Khaos" energy drinks was encouraging.

Hansen Natural Corporation markets and distributes Hansen's(R) Natural Sodas, Signature Sodas, fruit juice Smoothies, Energy drinks, Energade(R) energy sports drinks, E20 Energy Water(R), Sparkling Lemonades and Orangeades, multi-vitamin juice drinks in aseptic packaging, Junior Juice(R) juice, iced teas, lemonades and juice cocktails, apple juice, cider and juice blends, Blue Sky(R) brand carbonated beverages, Monster Energy(TM) brand energy drinks, Lost(R) Energy(TM) brand energy drinks, Joker Mad Energy(TM) and Rumba(TM) brand energy drinks and Fizzit(TM) brand Powdered drink mixes. Hansen's can be found on the Web at www.hansens.com.

(a) 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 Generally Accepted Accounting Principles ("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 the Company's internal reporting requirements.

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 revenues and profitability. Management cautions that these statements are qualified by their terms/or important factors, 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, including, but not limited to, the following: Changes in consumer preferences, changes in demand that are weather related, particularly in areas outside of California, competitive pricing pressures, activities and strategies of competitors, changes in the price and/or availability of raw materials for the company's products, the availability of production and/or suitable facilities, the marketing efforts of the distributors of the company's products, most of which distribute products that are competitive with the products of the company, the introduction of new products, as well as unilateral decisions that may be made by grocery chain stores, specialty chain stores, club stores and other customers to discontinue carrying all or any of the company's products that they are carrying at any time and other risks detailed from time to time in 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 assures no obligation to update any forward looking statements.


HANSEN NATURAL CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF NET INCOME
FOR THE THREE- AND TWELVE-MONTHS ENDED DECEMBER 31, 2005 AND 2004
(Unaudited)
----------------------------------------------------------------------

                     Three Months Ended        Twelve Months Ended
                        December 31,                December 31,
                -------------------------  --------------------------
                     2005         2004          2005          2004
                ------------  -----------  ------------  ------------

GROSS SALES(a)  $113,570,741  $61,760,023  $415,417,282  $224,097,875

LESS:
 Promotional and
 other
 allowances(b)    15,560,656   11,422,691    66,530,916    43,756,740
                ------------  -----------  ------------  ------------

NET SALES         98,010,085   50,337,332   348,886,366   180,341,135

COST OF SALES     46,066,902   25,346,905   166,343,118    96,874,750
                ------------  -----------  ------------  ------------

GROSS PROFIT      51,943,183   24,990,427   182,543,248    83,466,385

OPERATING
 EXPENSES:
Selling, general
 and
 administrative   22,127,457   13,063,306    79,029,837    49,507,137
Amortization of
 trademarks           26,010       14,403        70,102        73,046
                ------------  -----------  ------------  ------------
  Total
   operating
   expenses       22,153,467   13,077,709    79,099,939    49,580,183
                ------------  -----------  ------------  ------------

OPERATING INCOME  29,789,716   11,912,718   103,443,309    33,886,202

NONOPERATING
 INCOME
 (EXPENSE)
Interest and
 financing
 expense             (12,522)      (9,793)      (76,531)      (41,988)
Interest income      668,948       88,940     1,427,803        93,983
                ------------  -----------  ------------  ------------
Net nonoperating
 income              656,426       79,147     1,351,272        51,995

INCOME BEFORE
 PROVISION FOR
 INCOME TAXES     30,446,142   11,991,865   104,794,581    33,938,197

PROVISION FOR
 INCOME TAXES     12,005,945    4,665,139    42,018,605    13,551,393
                ------------  -----------  ------------  ------------

NET INCOME      $ 18,440,197  $ 7,326,726  $ 62,775,976  $ 20,386,804
                ============  ===========  ============  ============

NET INCOME PER
 COMMON SHARE:
  Basic         $       0.83  $      0.34  $       2.85  $       0.96
                ============  ===========  ============  ============
  Diluted       $       0.75  $      0.31  $       2.59  $       0.86
                ============  ===========  ============  ============

NUMBER OF COMMON
 SHARES USED IN
 PER SHARE
 COMPUTATIONS:
  Basic           22,194,187   21,783,698    22,055,983    21,333,784
                ============  ===========  ============  ============
  Diluted         24,550,459   23,911,188    24,272,235    23,619,880
                ============  ===========  ============  ============

(a) 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
    Generally Accepted Accounting Principles ("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 the Company's internal reporting requirements.

(b) 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 the marketing activities of the
    Company.





HANSEN NATURAL CORPORATION AND SUBSIDIARIES
CONDENSED BALANCE SHEETS
AS OF DECEMBER 31, 2005 AND 2004 (Unaudited)
----------------------------------------------------------------------

                                                 2005         2004
                                            ------------- ------------
                  ASSETS
                  ------
CURRENT ASSETS:
Cash and cash equivalents                    $61,654,284   $3,676,119
Short-term investments                        11,860,665   17,300,000
Accounts receivable, net                      28,751,588   12,650,055
Inventories                                   31,399,628   22,406,054
Prepaid expenses and other current assets        477,237      638,967
Prepaid income taxes                             637,794
Deferred income tax asset                      5,505,264    3,708,942
                                            ------------- ------------
     Total current assets                    140,286,460   60,380,137

PROPERTY AND EQUIPMENT, net                    3,742,958    2,964,064

INTANGIBLE AND OTHER ASSETS:
Trademarks, net                               19,103,049   18,351,804
Deposits and other assets                        757,215      326,312
                                            ------------- ------------
     Total intangible and other assets        19,860,264   18,678,116
                                            ------------- ------------
                                            $163,889,682  $82,022,317
                                            ============= ============

   LIABILITIES AND SHAREHOLDERS' EQUITY
   ------------------------------------
CURRENT LIABILITIES:
Accounts payable                             $26,613,663  $14,542,753
Accrued liabilities                            2,481,703    1,582,968
Accrued compensation                           3,346,243    1,831,627
Current portion of long-term debt                515,221      437,366
Income taxes payable                                   -      346,449
                                            ------------- ------------
     Total current liabilities                32,956,830   18,741,163

LONG-TERM DEBT, less current portion              10,123      146,486

DEFERRED INCOME TAX LIABILITY                  5,413,880    4,563,439

COMMITMENTS AND CONTINGENCIES                          -            -

STOCKHOLDERS' EQUITY:
Common stock - $0.005 par value; 30,000,000
 shares authorized; 22,607,128 shares
 issued, 22,193,606 outstanding in 2005;
 22,239,728 shares issued, 21,826,206
 outstanding in 2004                             113,036      111,198
Additional paid-in capital                    19,917,748   15,757,942
Retained earnings                            106,292,610   43,516,634
Common stock in treasury, at cost; 413,522
 shares in 2005 and 2004                        (814,545)    (814,545)
                                            ------------- ------------
     Total shareholders' equity              125,508,849   58,571,229
                                            ------------- ------------
                                            $163,889,682  $82,022,317
                                            ============= ============

Contacts

Hansen Natural Corporation
Rodney C. Sacks, 951-739-6200
Hilton H. Schlosberg, 951-739-6200
or
PondelWilkinson Inc.
Wade Huckabee, 310-279-5980

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