SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q Quarterly Report under Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Quarterly Period Ended March 31, 2000 Commission file number 0-18761 HANSEN NATURAL CORPORATION (Exact name of Registrant as specified in its charter) Delaware 39-1679918 (State or other jurisdiction of (I.R.S. Employer incorporation or organization Identification No.) 2380 Railroad Street, Suite 101, Corona, California 92880 (Address of principal executive offices) (Zip Code) (909) 739 - 6200 Registrant's telephone number, including area code. Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. Yes X No The registrant had 10,109,431 shares of common stock outstanding as of May 1, 2000
HANSEN NATURAL CORPORATION AND SUBSIDIARIES March 31, 2000 INDEX <TABLE> <S> <C> <C> Page No. Part I. FINANCIAL INFORMATION Item 1. Consolidated Financial Statements Consolidated Balance Sheets as of March 31, 2000 and December 31, 1999 3 Consolidated Statements of Income for the three-months ended March 31, 2000 and 1999 4 Consolidated Statements of Cash Flows for the three-months ended March 31, 2000 and 1999 5 Notes to Consolidated Financial Statements 6 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 7 Part II. OTHER INFORMATION Items 1-5. Not Applicable 16 Item 6. Exhibits and Reports on Form 8-K 16 Signatures 16 </TABLE> 2
HANSEN NATURAL CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS MARCH 31, 2000 AND DECEMBER 31, 1999 (Unaudited) <TABLE> <CAPTION> - ------------------------------------------------------------------------------------------------------------------------------------ March 31, December 31, 2000 1999 ASSETS <S> <C> <C> CURRENT ASSETS: Cash and cash equivalents $ 133,687 $ 2,009,155 Accounts receivable (net of allowance for doubtful accounts, sales returns and cash discounts of $383,875 in 2000 and $415,305 in 1999 and promotional allowances of $1,723,575 in 2000 and $1,651,604 in 1999) 4,244,322 3,751,258 Inventories, net 9,994,854 9,894,414 Prepaid expenses and other current assets 707,029 553,689 Deferred income tax asset 743,364 743,364 -------------------- -------------------- 15,823,256 16,951,880 PROPERTY AND EQUIPMENT, net 596,502 504,191 INTANGIBLE AND OTHER ASSETS: Trademark license and trademarks (net of accumulated amortization of $3,077,699 in 2000 and $2,995,285 in 1999) 10,690,510 10,768,493 Deposits and other assets 611,579 484,388 -------------------- -------------------- 11,302,089 11,252,881 -------------------- -------------------- $ 27,721,847 $ 28,708,952 ==================== ==================== LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Short-term borrowings $ 350,000 $ - Accounts payable 4,552,072 5,936,873 Accrued liabilities 240,143 345,794 Accrued compensation 41,629 462,285 Current portion of long-term debt 885,416 863,501 Income taxes payable 770,565 346,636 -------------------- -------------------- Total current liabilities 6,839,825 7,955,089 LONG-TERM DEBT, less current portion 702,716 902,716 DEFERRED INCOME TAX LIABILITY 1,225,271 1,225,271 COMMITMENTS AND CONTINGENCIES SHAREHOLDERS' EQUITY: Common stock - $.005 par value; 30,000,000 shares authorized; 10,106,198 and 10,010,084 shares issued in 2000 and 1999 respectively 50,531 50,050 Additional paid-in capital 11,569,593 11,340,074 Retained earnings 7,923,855 7,235,752 Common stock in treasury, at cost - 149,175 and 0 shares in 2000 and 1999 respectively (589,944) - -------------------- -------------------- Total shareholders' equity 18,954,035 18,625,876 -------------------- -------------------- $ 27,721,847 $ 28,708,952 ==================== ==================== </TABLE> 3
HANSEN NATURAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME FOR THE THREE MONTHS ENDED MARCH 31, 2000 AND 1999 (Unaudited) <TABLE> <CAPTION> - -------------------------------------------------------------------------------------------------------------------------- 2000 1999 <S> <C> <C> NET SALES $ 15,978,002 $ 15,229,104 COST OF SALES 8,774,042 7,821,425 -------------------- -------------------- GROSS PROFIT 7,203,960 7,407,679 OPERATING EXPENSES: Selling, general and administrative 5,953,412 5,771,247 Amortization of trademark license and trademarks 82,659 74,148 Other operating expenses - 15,000 -------------------- -------------------- Total operating expenses 6,036,071 5,860,395 -------------------- -------------------- OPERATING INCOME 1,167,889 1,547,284 NON-OPERATING EXPENSE (INCOME): Interest and financing expense 28,295 63,031 Interest income (7,244) (26,159) -------------------- -------------------- Net non-operating expense 21,051 36,872 -------------------- -------------------- INCOME BEFORE PROVISION FOR INCOME TAXES 1,146,838 1,510,412 PROVISION FOR INCOME TAXES 458,735 601,500 -------------------- -------------------- NET INCOME $ 688,103 $ 908,912 ==================== ==================== NET INCOME PER COMMON SHARE: Basic $ 0.07 $ 0.09 ==================== ==================== Diluted $ 0.07 $ 0.09 ==================== ==================== NUMBER OF COMMON SHARES USED IN PER SHARE COMPUTATIONS: Basic 9,998,657 9,924,933 ==================== ==================== Diluted 10,481,940 10,521,733 ==================== ==================== </TABLE> 4
HANSEN NATURAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2000 AND 1999 (Unaudited) <TABLE> <CAPTION> - ------------------------------------------------------------------------------------------------------------------- 2000 1999 <S> <C> <C> CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 688,103 $ 908,912 Adjustments to reconcile net income to net cash provided by operating activities: Amortization of trademark license and trademarks 82,414 74,148 Depreciation and other amortization 45,995 64,226 Compensation expense related to issuance of stock options 24,341 Deferred income taxes 150,375 Effect on cash of changes in operating assets and liabilities: Accounts receivable (493,064) (1,329,237) Inventories (100,440) (194,695) Prepaid expenses and other current assets (153,340) (97,233) Accounts payable (1,384,801) 1,885,093 Accrued liabilities (105,651) (75,573) Accrued compensation (420,656) (294,597) Income taxes payable 423,929 (1,068,875) ---------------- ---------------- Net cash (used in) provided by operating activities (1,417,511) 46,885 CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of property and equipment (138,306) (103,270) Increase in trademark license and trademarks (4,431) Decrease in note receivable from director 10,274 Increase in deposits and other assets (127,191) (101,559) ---------------- ---------------- Net cash used in investing activities (269,928) (194,555) CASH FLOWS FROM FINANCING ACTIVITIES: Increase in short-term borrowings 350,000 Principal payments on long-term debt (178,085) (1,602,576) Issuance of common stock 230,000 20,700 Purchases of treasury stock (589,944) ---------------- ---------------- Net cash used in financing activities (188,029) (1,581,876) EFFECT OF EXCHANGE RATE CHANGES ON CASH - - ---------------- ---------------- NET DECREASE IN CASH (1,875,468) (1,729,546) CASH AND CASH EQUIVALENTS, beginning of the period 2,009,155 3,806,089 ---------------- ---------------- CASH AND CASH EQUIVALENTS, end of the period $ 133,687 $ 2,076,543 ================ ================ SUPPLEMENTAL INFORMATION Cash paid during the period for: Interest $ 22,078 $ 75,252 ================ ================ Income taxes $ 34,806 $ 1,520,000 ================ ================ </TABLE> NONCASH TRANSACTIONS: During the three month period ended March 31, 2000, the Company issued 4,114 shares of common stock to employees in connection with a net exercise of options to purchase 5,600 shares of common stock. 5
HANSEN NATURAL CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE-MONTHS ENDED MARCH 31, 2000 AND YEAR ENDED DECEMBER 31, 1999 - ------------------------------------------------------------------------------ 1. BASIS OF PRESENTATION Reference is made to the Notes to Consolidated Financial Statements, in the Company's Form 10-K for the year ended December 31, 1999, which is incorporated by reference, for a summary of significant policies utilized by Hansen Natural Corporation ("Hansen" or "Company") and its wholly-owned subsidiaries, Hansen Beverage Company ("HBC") and Hard Energy Company. The information set forth in these interim financial statements is unaudited and may be subject to normal year-end adjustments. The information reflects all adjustments, which include only normal recurring adjustments, which in the opinion of management are necessary to make the financial statements not misleading. Results of operations covered by this report may not necessarily be indicative of results of operations for the full fiscal year. 2. INVENTORIES Inventories consist of the following at: March 31, December 31, 2000 1999 ---------------- ----------------- Raw materials $ 3,663,621 $ 3,615,269 Finished goods 6,499,641 6,442,193 ---------------- ----------------- 10,163,262 10,057,462 Less inventory reserves (168,408) (163,048) ---------------- ----------------- $ 9,994,854 $ 9,894,414 ================ ================= 6
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS - -------------------------------------------------------------------------------- General The increase in sales and profitability that was achieved by the Company during the first quarter of 1999 was attributable in large measure to the introduction during that quarter of the Company's Healthy Start juice line in multi-serve P.E.T. bottles, which were sold mainly to club stores, and the Signature Soda line. Late in the first quarter of 2000, the Company began introducing its new Slim Down functional drink and its Healthy Start juice line in glass bottles. However, due to the late introduction, the contribution by those products to sales during the quarter was minimal. The increase in sales during the first quarter of 2000 was primarily attributable to sales of the Company's children's multi-vitamin juice drinks in 8.45-oz. aseptic packages, which were introduced during the third quarter of 1999, and increased sales of the Company's functional drinks in 8.2-oz. slim cans. Such increase was, however, largely offset by decreased sales of Healthy Start juices in multi-serve PET bottles and, to a lesser extent, by decreased sales of Smoothies in 11.5-oz. cans, Signature Sodas, Smoothies in multi-serve PET bottles, and teas, lemonades and juice cocktails. Due to the lower gross profit margins achieved by the Company on its children's multi-vitamin juice drinks in 8.45-oz. aseptic packages compared to Healthy Start juices and Signature Sodas, the overall gross profit margin achieved by the Company during the first quarter of 2000 decreased to 45.1% from 48.6% during the first quarter of 1999. The Company continues to incur expenditures in connection with the development and introduction of new products and flavors. During the first quarter of 2000, the Company repurchased 149,175 shares of its common stock at an average price of $3.95 per share. 7
Results of Operations for the Three-months Ended March 31, 2000 Compared to the Three-months Ended March 31, 1999 Net Sales. For the three-months ended March 31, 2000, net sales were approximately $16.0 million, an increase of $749,000 or 4.9% higher than the $15.2 million net sales for the three-months ended March 31, 1999. The increase in net sales was primarily attributable to sales of the Company's multi-vitamin juice drinks, which were introduced in the third quarter of 1999, Super Smoothies, which were also introduced in the third quarter of 1999, and increased sales of the Company's energy and other functional drinks in 8.2 oz. slim cans and sodas in cans. The increase in net sales was largely offset by decreased sales of Healthy Start juices in multi-serve PET bottles, and to a lesser extent, decreased sales of Smoothies in 11.5 oz. cans, Signature Sodas, Smoothies in multi-serve PET bottles, and teas, lemonades and juice cocktails. Gross Profit. Gross profit was $7.2 million for the three-months ended March 31, 2000, a decrease of $204,000 or 2.8% lower than the $7.4 million gross profit for the three-months ended March 31, 1999. Gross profit as a percentage of net sales decreased to 45.1% for the three-months ended March 31, 2000 from 48.6% for the three-months ended March 31, 1999. The decrease in gross profit and gross profit as a percentage of net sales was primarily attributable to lower margins achieved as a result of a change in the Company's product mix. Total Operating Expenses. Total operating expenses were $6.0 million for the three-months ended March 31, 2000, an increase of $176,000 or 3.0% higher than total operating expenses of $5.9 million for the three-months ended March 31, 1999. Total operating expenses as a percentage of net sales decreased to 37.8% for the three-months ended March 31, from 38.5% for the three-months ended March 31, 1999. The increase in total operating expenses was primarily attributable to increased selling, general and administrative expenses. The decrease in total operating expenses as a percentage of net sales was primarily attributable to a comparably lower increase in total operating expenses as compared to the increase in net sales. Selling, general and administrative expenses were $6.0 million for the three-months ended March 31, 2000, an increase of $182,000 or 3.2% higher than selling, general and administrative expenses of $5.8 million for the three-months ended March 31, 1999. The increase in selling, general and administrative expenses was primarily attributable to increased slotting fees of $336,000 for the three-months ended March 31, 2000 as compared to slotting fees of $50,000 for the three-months ended March 31, 1999 and increased distribution expenses. The increase in selling, general and administrative expenses was partially offset by a decrease in certain selling and marketing expenses, particularly expenditures relating to in-store demonstrations and the costs of merchandise displays. Operating Income. Operating income was $1.2 million for the three-months ended March 31, 2000, a decrease of $380,000 or 24.5% lower than operating income of $1.5 million for the three-months ended March 31, 1999. Operating income as a percentage of net sales decreased to 7.3% for the three-months ended March 31, 2000 from 10.2% for the three-months ended March 31, 1999. The decrease in operating income was attributable to a $204,000 decrease in gross profit and an increase of $176,000 in operating expenses. The 2.9% decrease 8
in operating income as a percentage of net sales was partially attributable to a 3.6% decrease in gross profit as a percentage of net sales which was partially offset by a 0.7% decrease in operating expenses as a percentage of net sales. Net Non-operating Expense. Net non-operating expense was $21,000 for the three-months ended March 31, 2000, a decrease of $16,000 or 42.9% lower than net non-operating expense of $37,000 for the three-months ended March 31, 1999. Net non-operating expense consists of interest and financing expense and interest income. Interest and financing expense for the three-months ended March 31, 2000 was $28,000 as compared to interest and financing expense of $63,000 for the three-months ended March 31, 1999. The decrease in interest and financing expense was primarily attributable to lower interest expense incurred on the Company's long-term debt, which was substantially lower than the average outstanding long-term debt during the comparable period in 1999. Interest income for the three-months ended March 31, 2000 was $7,000 as compared to $26,000 for the three-months ended March 31, 1999. The decrease in interest income was primarily attributable to decreased cash available for investing in interest-bearing securities during the period. Provision for Income Taxes. Provision for income taxes for the three-months ended March 31, 2000 was $459,000 as compared to provision for income taxes of $602,000 for the comparable period in 1999. The $143,000 decrease in provision for income taxes was primarily attributable to the decrease in operating income. Net Income. Net income was $688,000 for the three-months ended March 31, 2000, a decrease of $221,000 or 24.3% lower than net income of $909,000 for the three-months ended March 31, 1999. The decrease in net income was attributable to the decrease in gross profit of $204,000 and the increase in operating expenses of $176,000 which was partially offset by the decrease in non-operating expense of $16,000 and the decrease in provision for income taxes of $143,000. Liquidity and Capital Resources As of March 31, 2000, the Company had working capital of $9.0 million which was comparable to working capital of $9.0 million as of December 31, 1999. Increases in working capital were primarily attributable to net income earned after adjustments for certain noncash expenses, primarily amortization of trademark license and trademarks and depreciation and other amortization. Decreases in working capital were primarily attributable to purchases of treasury stock, repayments made in reduction of HBC's term loan and increases in noncurrent assets. Net cash used in operating activities increased to $1.4 million for the three-months ended March 31, 2000 as compared to net cash provided by operating activities of $47,000 for the comparable period in 1999. The increase in net cash used in operating activities was primarily attributable to the decrease in net income and the increase in net cash used in connection with operating assets and liabilities including the payment of accounts payable, accrued liabilities, accrued compensation and the increase in accounts receivable and prepaid expenses. During the three-months ended March 31, 2000, a portion of the Company's cash reserves was also used for the acquisition of property and equipment and the payment of income taxes. Increases in inventories, accounts receivable, payment of payables and 9
accrued liabilities, acquisition of property and equipment, repayment of the Company's short-term borrowings and payment of income taxes, as well as HBC's acquisition and development plans are, and for the foreseeable future are, expected to remain HBC's principle recurring use of cash and working capital funds. Net cash used in investing activities increased to $270,000 for the three-months ended March 31, 2000 as compared to net cash used in investing activities of $195,000 for the comparable period in 1999. The increase in net cash used in investing activities was primarily attributable to increased purchases of property and equipment and increases in deposits and other assets. Management, from time to time, considers the acquisition of capital equipment, particularly coolers, merchandise display racks, vans and promotional vehicles, and businesses compatible with the image of the Hansen's(R) brand, as well as the development and introduction of new product lines. The Company may require additional capital resources in the event of any such transaction, depending upon the cash requirements relating thereto. Any such transaction will also be subject to the terms and restrictions of HBC's credit facilities. Net cash used in financing activities decreased to $188,000 for the three-months ended March 31, 2000 as compared to net cash used in financing activities of $1,582,000 for the comparable period in 1999. The decrease in net cash used in financing activities was primarily attributable to decreased principal payments on long-term debt and cash received from short-term borrowings and issuance of common stock. Such decrease was partially offset by cash paid to repurchase shares of the Company's common stock. As of March 31, 2000, approximately $1.2 million was outstanding under the term loan. HBC's revolving line of credit has been renewed by its bank until June 30, 2000. The effective borrowing rate under the revolving line of credit is prime plus 1/4%. HBC anticipates that the revolving line of credit will be renewed when it expires on June 30, 2000; however, there can be no assurance that it will in fact be renewed or, if renewed, that the terms of such renewal will not be disadvantageous to HBC and its business. Management believes that cash generated from operations and the Company's cash resources and amounts available under HBC's revolving line of credit, will be sufficient to meet its operating cash requirements in the foreseeable future, including purchase commitments for raw materials, debt servicing, expansion and development needs as well as any purchases of capital assets or equipment and repurchases of shares of the Company's common stock. Year 2000 Compliance Prior to January 1, 2000, the Company reviewed the readiness of its computer systems and business practices for handling Year 2000 issues. These issues involve systems that are date sensitive and may not be able to properly process the transition from year 1999 to year 2000 and beyond, resulting in miscalculations and software failures. Year 2000 compliance updates were completed in the fourth quarter of 1999 and the Company's information technology ("IT") and non-information technology ("NIT") computer systems completed the transition to the year 2000 without material issues or problems. No additional 10
expenditures to enable the Company to become Year 2000 compliant are currently anticipated. The Company has been in contact with critical suppliers, co-packers, customers, and other third parties to determine the extent to which they may be vulnerable to Year 2000 issues. The Company cannot currently predict any future effect of third parties' Year 2000 issues. However, the Company has not been made aware of any matter which would materially impact the Company's business from third parties. European Monetary Union Within Europe, The European Economic and Monetary Union (the "EMU") introduced a new currency, the euro, on January 1, 1999. The new currency is in response to the EMU's policy of economic convergence to harmonize trade policy, eliminate business costs associated with currency exchange and to promote the free flow of capital, goods and services. On January 1, 1999, the participating countries adopted the euro as their local currency, initially available for currency trading on currency exchanges and noncash transactions such as banking. The existing local currencies, or legacy currencies, will remain legal tender through January 1, 2002. Beginning on January 1, 2002, euro-denominated bills and coins will be used for cash transactions. For a period of up to six months from this date, both legacy currencies and the euro will be legal tender. On or before July 1, 2002, the participating countries will withdraw all legacy currencies and exclusively use the euro. The Company's transactions are recorded in U.S. Dollars and the Company does not currently anticipate future transactions being recorded in the euro. Based on the lack of transactions recorded in the euro, the Company does not believe that the euro will have a material effect on the financial position, results of operations or cash flows of the Company. In addition, the Company has not incurred and does not expect to incur any significant costs from the continued implementation of the euro, including any currency risk, which could materially affect the Company's business, financial condition or results of operations. The Company has not experienced any significant operational disruptions to date and does not currently expect the continued implementation of the euro to cause any significant operational disruptions. Forward Looking Statements The Private Security Litigation Reform Act of 1995 (the "Act") provides a safe harbor for forward looking statements made by or on behalf of the Company. The Company and its representatives may from time to time make written or oral forward looking statements, including statements contained in this report and other filings with the Securities and Exchange Commission and in reports to shareholders and announcements. Certain statements made in this report, including certain statements made in management's discussion and analysis, may constitute forward looking statements (within the meaning of Section 27.A of the Securities Act 1933 as amended and Section 21.E of the Securities Exchange Act of 1934, as amended) regarding the expectations of 11
management with respect to revenues, profitability, adequacy of funds from operations and the Company's existing credit facility, among other things. All statements which address operating performance, events or developments that management expects or anticipates will or may occur in the future including statements related to new products, volume growth, revenues, profitability, adequacy of funds from operations, and/or the Company's existing credit facility, earnings per share growth, statements expressing general optimism about future operating results and non-historical Year 2000 information, are forward looking statements within the meaning of the Act. Management cautions that these statements are qualified by their terms and/or important factors, many of which are outside the control of the Company that could cause actual results and events to differ materially from the statements made including, but not limited to, the following: o Company's ability to generate sufficient cash flows to support capital expansion plans and general operating activities; o Changes in consumer preferences; o Changes in demand that are weather related, particular in areas outside of California; o Competitive products and pricing pressures and the Company's ability to gain or maintain share of sales in the marketplace as a result of actions by competitors; o The introduction of new products; o Laws and regulations, and/or any changes therein, including changes in accounting standards, taxation requirements (including tax rate changes, new tax laws and revised tax law interpretations) and environmental laws as well as the Federal Food Drug and Cosmetic Act, the Dietary Supplement Health and Education Act, and regulations made thereunder or in connection therewith, especially those that may affect the way in which the Company's products are marketed as well as laws and regulations or rules made or enforced by the Food and Drug Administration; o Changes in the cost and availability of raw materials and the ability to maintain favorable supply arrangements and relationships and procure timely and/or adequate production of all or any of the Company's products; o The Company's ability to achieve earnings forecasts, which may be based on projected volumes and sales of many product types and/or new products, certain of which are more profitable than others. There can be no assurance that the Company will achieve projected levels or mixes of product sales; o The Company's ability to penetrate new markets; o The marketing efforts of distributors of the Company's products, most of which distribute products that are competitive with the products of the Company; o Unilateral decisions by distributors, grocery chains, 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; o The terms and/or availability of the Company's credit facilities and the actions of its creditors; o The effectiveness of the Company's advertising, marketing and promotional programs; o Adverse weather conditions, which could reduce demand for the Company's products; o The Company's ability to make suitable arrangements for the co-packing of its functional drinks in 8.2-ounce slim cans and Smoothies in 11.5 ounce cans; 12
o The Company's customers', co-packers' and suppliers' ability to replace, modify or upgrade computer programs in ways that adequately address Year 2000 issues. Given the numerous and significant uncertainties involved, there can be no assurance regarding their ability to identify and correct all relevant computer codes and imbedded chips and other unanticipated difficulties or the ability of third parties to remediate their respective systems. The foregoing list of important factors is not exhaustive. Inflation The Company does not believe that inflation has a significant impact on the Company's results of operations for the periods presented. 13
PART II - OTHER INFORMATION Items 1 - 5. Not Applicable Item 6. Exhibits and Reports on Form 8-K (a) Exhibits - See Exhibit Index (b) Reports on Form 8-K - None SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. HANSEN NATURAL CORPORATION Registrant Date: May 15, 2000 /s/ Rodney C. Sacks Chairman of the Board and Chief Executive Officer Date: May 15, 2000 /s Hilton H. Schlosberg Vice Chairman of the Board, President, Chief Operating Officer, Chief Financial Officer and Secretary 14
EXHIBIT INDEX Exhibit 10 (xxx) Amended and Restated Variable Rate Installment Note by and between Comerica Bank - California and Hansen Beverage Company. Exhibit 27 Financial Data Schedule 15