On Wednesday, Aug. 8, bottle-rocket beverage brewer Hansen Natural
- The distribution agreement with beer giant and Motley Fool Inside Value pick Anheuser-Busch
(NYSE:BUD) is now in full operation and expected to remain for the next 20 years. Those Monster Energy cans now ride atop one of the finest distribution systems in the world across our nation, while another top-notch shipper, PepsiCo(NYSE:PEP) , handles the company's Canadian network and Cadbury Schweppes(NYSE:CSG) does the Latin American circuit. I've seen the cans in tiny gas stations in the mountain passes of Guatemala, so that relationship seems to be working out OK, too. - Natural fruit juices and organic sodas notwithstanding, it's the energy drinks that continue to drive the growth story here. Hansen recently introduced Monster-branded coffee drinks and lightly carbonated juices, as well as larger convenience packs, designed to appeal to new consumer types.
- Excluding $8.4 million one-time payments to Hansen's old distributors for breaking the now-obsolete agreements, the operating and net margins would have remained stable. Busch has reimbursed the company for these expenses, but those payments will be amortized over the next 20 years and only contributed $0.5 million to this quarter's revenues.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q2 2007 |
Q2 2006 |
Change |
|
|---|---|---|---|
|
Sales |
$244.8 |
$156.0 |
56.9% |
|
Net Profit |
$38.3 |
$28.2 |
35.9% |
|
EPS |
$0.39 |
$0.28 |
39.3% |
|
Diluted Shares |
98.5 |
99.3 |
(0.8%) |
Get back to basics with the income statement.
Margin Checkup
|
Q2 2007 |
Q2 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
52.4% |
51.9% |
0.5 |
|
Operating Margin |
25.1% |
29.3% |
(4.2) |
|
Net Margin |
15.7% |
18.1% |
(2.4) |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q2 2007 |
Q2 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$198.1 |
$115.0 |
72.3% |
|
Accounts Rec. |
$111.9 |
$60.9 |
83.7% |
|
Inventory |
$87.5 |
$50.3 |
74% |
|
Liabilities |
Q2 2007 |
Q2 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$91.8 |
$57.8 |
59% |
|
Long-Term Debt |
$0.6 |
$0.6 |
1.4% |
The balance sheet reflects the company's health.
Cash Flow Highlights
Free cash flow is a Fool's best friend. But Hansen didn't hand out this crucial information sheet this time, so we're stuck waiting on a proper 10-Q filing. Boo! Hiss!
Related Foolishness:
- Hansen's Wild Ride
- This Just In: Upgrades and Downgrades
- The Value of Free Advertising
- Foolish Fundamentals: Cash Conversion Cycle
Anheuser-Busch is a Motley Fool Inside Value recommendation, and maybe Hansen should be a Rule Breaker, but the little energy drink maven hasn't gotten that nod yet. Keep on top of the movers and shakers of the market with a handful of free 30-day trial passes to our premium newsletter services.
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, Anders Bylund was a Hansen Natural shareholder -- and heavy Monster drinker -- but he had no other position in any company mentioned. Fool rules are here.
