This morning, energy-drink maven Hansen Natural (NASDAQ:HANS) released Q2 2006 earnings for the period ending June 30, 2006.

  • Sales and profits are acting like the monsters they're supposed to be, growing by more than 80% each year over year.
  • The company is stocking up on inventory in anticipation of much better distribution in the next quarter or two.
  • Margin shrinkage could spell trouble, though the gross and operating drops are modest and the bottom line margin is going in the right direction.

(Figures in thousands, except per-share data)

Income Statement Highlights

Avg. Est.

Q2 2006

Q2 2005

Change

Sales

$158,940

$156,037

$85,441

82.6%

Net Profit

--

$28,200

$15,246

85%

EPS

$0.28

$0.28

$0.16

75%

Diluted Shares

--

99,289

97,541

1.8%



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

Margin Checkup

Q2 2006

Q2 2005

Change*

Gross Margin

51.90%

52.58%

(0.68)

Operating Margin

29.32%

29.68%

(0.36)

Net Margin

18.07%

17.84%

0.23

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q2 2006

Q2 2005

Change

Cash + ST Invest.

$115,001

$33,428

244%

Inventory

$50,297

$27,801

80.9%

Accounts Rec.

$60,939

$31,704

92.2%


Liabilities

Q2 2006

Q2 2005

Change

Long-Term Debt*

$588

$835

(29.6)%

Accounts Pay.

$57,766

$26,534

117.7%

*includes current portion of long-term debt

Learn the ways of the balance sheet.

Cash Flow Highlights

The company has not provided a cash flow statement at this time (Boo! Hiss!).

Find out why Fools always follow the money.

Related Companies:

  • Jones Soda (NASDAQ:JSDA)
  • Coca-Cola (NYSE:KO)
  • PepsiCo (NYSE:PEP)
  • National Beverage (AMEX:FIZ)
  • Cadbury Schweppes (NYSE:CSG)
  • Anheuser-Busch (NYSE:BUD)
Related Foolishness:

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.Hansen isn't an official Rule Breakers selection, but the company sure breaks a few rules. Learn about tons of exciting growth stocks under the wing of David Gardner and his merry band of Motley Fool Rule Breakers with a free 30-day trial .

Fool contributor Anders Bylund owns a tiny sliver of Coca-Cola, but holds no other position in these companies. His middle name is Hans. No really, it is. Coca-Cola and Anheuser-Busch are Motley Fool Inside Value newsletter picks. Fool rules are here.