On Nov. 8, energy drink phenom Hansen Natural (NASDAQ:HANS) released selected Q3 2006 results for the period ended Sept. 30.

  • Because of the ongoing reassessment of previous results as part of a review of options accounting practices, Hansen could not provide net earnings figures. If you would, purely as a theoretical exercise, assume 4% share dilution (a historical worst-case figure for Hansen) and a decline in net margins of a full percentage point, you would get net income of $32.5 million or $0.32 per share.
  • Hansen is building up inventories at a furious pace, to keep up with the expected demand when the Anheuser-Busch (NYSE:BUD) distribution agreement takes full force -- which hasn't happened yet.
  • Income details may be scarce, but look at that balance sheet! For a tiny ultra-growth company, Hansen is swimming in cash.

(Figures in thousands, except per-share data)

Income Statement Highlights

Avg. Est.

Q3 2006

Q3 2005

Change

Sales

$178,800

$178,497.0

$105,421.5

69.3%

Net Profit

--

No Data

$20,245.4

N/A

EPS

$0.33

No Data

$0.21

N/A

Diluted Shares

 --

No Data

97337.4

N/A



Get back to basics with a look at the income statement.

Margin Checkup

Q3 2006

Q3 2005

Change*

Gross Margin

51.56%

52.50%

(0.94)

Operating Margin

31.27%

31.85%

(0.58)

Net Margin

No Data

19.20%

N/A

*Expressed in percentage points

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q3 2006

Q3 2005

Change

Cash + ST Invest.

$120,409.0

$49,933.7

141.1%

Accounts Rec.

$68,917.0

$34,418.0

100.2%

Inventory

$80,683.0

$28,856.1

179.6%



Liabilities

Q3 2006

Q3 2005

Change

Accounts Payable

$63,550.0

$29,036.9

118.9%

Long-Term Debt*

$501.0

$730.9

(31.5%)

*Including current portion.

Learn the ways of the balance sheet.

Cash Flow Highlights
Under the circumstances, I suppose it's fair to withhold cash flow information. But don't let it become a habit, Hansen!

Find out why Fools always follow the money.

Cash Conversion Checkup

Q3 2006

Q3 2005

Change*

Days in Inventory

68.2

50.6

17.6

Days in Receivables

32.7

28.2

4.5

Days Payables Outstanding

63.1

49.9

13.2

Cash Conversion Cycle

37.8

28.9

8.9

*Expressed in days.

Read up on cash conversion metrics.

Related Companies:

  • Coca-Cola (NYSE:KO)
  • PepsiCo (NYSE:PEP)
  • Jones Soda (NASDAQ:JSDA)
  • Cadbury Schweppes (NYSE:CSG)

Related Foolishness:

Coca-Cola and Anheuser-Busch are Motley Fool Inside Value recommendations. Whether you're into deep values or exciting growth, the Fool has a newsletter for you. And you're just a few clicks away from a free 30-day trial to any of them.

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.

At the time of publication, Fool contributor Anders Bylund was a shareholder in Coca-Cola and Hansen Natural but had no other position in any company mentioned. He also downed a can of Monster while doing this write-up. Fool rules are here .