-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, DX9cdQJCwKCTBITP3t8nFOBYz2QTBIxdpbAZPhPDrfCbSZttNysbRmwNLw0JbYZK y3J7LaYk7w7TEvmyxSeYsA== 0000046080-01-000001.txt : 20010209 0000046080-01-000001.hdr.sgml : 20010209 ACCESSION NUMBER: 0000046080-01-000001 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20010208 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 20010208 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HASBRO INC CENTRAL INDEX KEY: 0000046080 STANDARD INDUSTRIAL CLASSIFICATION: GAMES, TOYS & CHILDREN'S VEHICLES (NO DOLLS & BICYCLES) [3944] IRS NUMBER: 050155090 STATE OF INCORPORATION: RI FISCAL YEAR END: 1227 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-06682 FILM NUMBER: 1528198 BUSINESS ADDRESS: STREET 1: 1027 NEWPORT AVE STREET 2: P O BOX 1059 CITY: PAWTUCKET STATE: RI ZIP: 02861 BUSINESS PHONE: 4014318697 MAIL ADDRESS: STREET 1: 200 NARRAGANSETT PARK DRIVE CITY: PAWTUCKET STATE: RI ZIP: 02862-0200 FORMER COMPANY: FORMER CONFORMED NAME: HASBRO BRADLEY INC DATE OF NAME CHANGE: 19850814 FORMER COMPANY: FORMER CONFORMED NAME: HASBRO INDUSTRIES INC DATE OF NAME CHANGE: 19840917 FORMER COMPANY: FORMER CONFORMED NAME: HASSENFELD BROTHERS INC DATE OF NAME CHANGE: 19720615 8-K 1 0001.txt 8-K DOCUMENT SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934 Date of Report (Date of Earliest Event Reported): February 8, 2001 ------------------------- HASBRO, INC. -------------------- (Name of Registrant) RHODE ISLAND 1-6682 05-0155090 - -------------- ------------ ------------------- (State of (Commission (IRS Employer Incorporation) File Number) Identification No.) 1027 NEWPORT AVE., PAWTUCKET, RHODE ISLAND 02861 - ------------------------------------------ ------------------- (Address of Principal Executive Offices) (Zip Code) (401) 431-8697 ------------------------------- (Registrant's Telephone Number) Item 5. Other Events The February 8, 2001 Press Release of the Registrant attached hereto as EXHIBIT 99 is incorporated herein by reference. Item 7(c) Exhibits 99 Press Release, dated February 8, 2001, of Hasbro, Inc. 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. HASBRO, INC. ------------ (Registrant) Date: February 8, 2001 By: /s/ Alfred J. Verrechia ------------------------- Alfred J. Verrecchia President, Chief Operating Officer and Chief Financial Officer (Duly Authorized Officer and Principal Financial Officer) HASBRO, INC. Current Report on Form 8-K Dated February 8, 2001 Exhibit Index Exhibit No. Exhibits - ------- -------- 99 Press Release dated February 8, 2001 EX-99 2 0002.txt EXHIBIT 99 For Immediate Contact: Release February 8, 2001 Karen A. Warren (Investor 401-727-5401 Relations) Wayne S. Charness (News Media) 401-727-5983 HASBRO REPORTS FULL-YEAR AND FOURTH QUARTER 2000 RESULTS In-line with Previously Announced Guidance Pawtucket, RI (February 8, 2001) -- Hasbro, Inc. (NYSE:HAS) today reported fourth quarter and full-year 2000 results in line with previously announced guidance in December. Prior to charges, the net loss for the year was $23.0 million compared to earnings of $286.6 million in 1999, and diluted loss per share was $0.13 compared to earnings of $1.42 in 1999. These results include a loss from operations of $0.40 per share attributable to Hasbro Interactive and Games.com and exclude $146.1 million of pre-tax charges ($93.5 million after-tax) related to the previously announced Consolidation Programs and a pre-tax charge of $44.0 million ($28.2 million after- tax) associated with the sale of Hasbro Interactive and Games.com. "2000 was an extremely disappointing year for Hasbro," said Alan G. Hassenfeld, Chairman and Chief Executive Officer. "A host of factors contributed to a loss year that we view as an aberration when you look at our performance over the long term and the record results of 1999. However, our international business continued to be strong, with revenues from international customers up almost 17.8% in local currencies and 8.7% in U.S. dollars. Worldwide, core brands that performed well were G.I. Joe, Action Man, Tonka, Play-Doh, games and robotic pets." For the year, net revenues worldwide were $3.8 billion compared to $4.2 billion in 1999, reflecting a significant decline in Furby and Star Wars. Total fourth quarter net revenues were $1.2 billion compared to $1.6 billion a year ago. The decline in fourth quarter revenues primarily reflects a decline in Pokemon, including trading card games, as well as weakness in the U.S. toy group. Prior to charges, the net loss for the fourth quarter was $58.4 million compared to earnings of $155.4 million a year ago, and diluted loss per share of $0.34 per share compared to earnings of $0.79 in 1999. These results exclude $146.1 million of pre-tax charges ($93.5 million after-tax) related to the Consolidation Programs and the write-down of $44.0 million associated with the sale of Hasbro Interactive and Games.com. The attached schedule "Impact of Consolidation Program" sets forth earnings before and after these charges. Including charges, the reported net loss for the fourth quarter was $180.1 million or $1.05 diluted loss per share and the net loss for the year was $144.6 million or $0.82 diluted loss per share. Full year Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) was $267.9 million compared to $669.1 million in 1999. Full year EBITDA before any charges was $325.0 million in 2000 and $708.0 million in 1999. "As we look to 2001 we are very focused on enhancing shareholder value by continuing to reduce our expenses, lower our break-even and bring more focus on growing our own brands and new product development," said Alfred J. Verrecchia, President and Chief Operating Officer. "As part of our program to improve long-term profitability we are significantly reducing overhead throughout the Company. We are reducing headcount by approximately 850 across all divisions of Hasbro, not counting Hasbro Interactive and Games.com. Our goal continues to be lowering our break even by reducing fixed expenses in product development, sales and marketing, and administrative functions. We are working to make Hasbro more efficient so we can better leverage our revenue and earnings streams going forward," Verrecchia noted. "We are very pleased to report that we completed the sale of Hasbro Interactive and Games.com to Infogrames Entertainment, SA in January. The write-down associated with the sale was $44.0 million, consisting of $39 million in asset write-down and $5 million from the reduction in the market value of Infogrames Entertainment, SA common stock from the time the transaction was announced to the market price at the time of the closing," added Verrecchia. Mr. Hassenfeld added, "We are confident that we are making the right moves to make Hasbro leaner and more consistently profitable for shareholders. While 2000 has been a very painful year, we are looking forward to returning Hasbro to profitability in 2001 and beyond." Hasbro will webcast its fourth quarter conference call at 9:00 a.m. Eastern time today. The webcast will review financial results for the fourth quarter and full year 2000. Investors and the media are invited to listen at http://www.hasbro.com (select "Investors & Media" from the home page, then click on the webcast icon). Hasbro is a worldwide leader in children's and family leisure time and entertainment products and services, including the design, manufacture and marketing of games and toys ranging from traditional to high-tech. Both internationally and in the U.S., its PLAYSKOOL, TONKA, SUPER SOAKER, MILTON BRADLEY, PARKER BROTHERS, TIGER, and WIZARDS OF THE COAST brands and products provide the highest quality and most recognizable play experiences in the world. Certain statements contained in this release contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may be identified by the use of forward-looking words or phrases such as "anticipate", "believe", "could", "expect", "intend", "look forward", "may", "planned", "potential", "should", "will" and "would". Such forward-looking statements are inherently subject to known and unknown risks and uncertainties. The Company's actual actions or results may differ materially from those expected or anticipated in the forward-looking statements. Specific factors that might cause such a difference include, but are not limited to, the Company's ability to manufacture, source and ship new and continuing products on a timely basis and the acceptance of those products by customers and consumers at prices that will be sufficient to profitably recover development, manufacturing, marketing, royalty and other costs of products; economic conditions, including higher fuel prices and availability of electronic components, currency fluctuations and government regulation and other actions in the various markets in which the Company operates throughout the world; the inventory policies of retailers, including the concentration of the Company's revenues in the second half and fourth quarter of the year, together with increased reliance by retailers on quick response inventory management techniques, which increases the risk of underproduction of popular items, overproduction of less popular items and failure to achieve tight and compressed shipping schedules; the impact of competition on revenues, margins and other aspects of the Company's business, including the ability to secure, maintain and renew popular licenses and the ability to attract and retain talented employees in a competitive environment; market conditions, third party actions or approvals and the impact of competition that could delay or increase the cost of implementation of the Company's consolidation programs or alter the Company's actions and reduce actual results, and the risk that anticipated benefits of acquisitions may not occur or be delayed or reduced in their realization. The Company undertakes no obligation to make any revisions to the forward-looking statements contained in this release or to update them to reflect events or circumstances occurring after the date of this release. EBITDA (earnings before interest, taxes, depreciation and amortization) represents operating profit plus loss on the sale of a business unit, restructuring charges, depreciation and all amortization. EBITDA is not adjusted for all noncash expenses or for working capital, capital expenditures or other investment requirements and, accordingly, is not necessarily indicative of amounts that may be available for discretionary uses. Thus, EBITDA should not be considered in isolation or as a substitute for net earnings or cash provided by operating activities, each prepared in accordance with generally accepted accounting principles, when measuring Hasbro's profitability or liquidity as more fully discussed in the Company's financial statements and securities filings. ### HASBRO, INC. CONSOLIDATED STATEMENTS OF EARNINGS (Thousands of Dollars and Shares Except Per Share Data) Quarter Ended Year Ended -------------------- -------------------- Dec. 31, Dec. 26, Dec. 31, Dec. 26, 2000 1999 2000 1999 --------- --------- --------- --------- Net Revenues $1,162,744 1,591,112 $3,787,215 4,232,263 Cost of Sales 616,094 652,686 1,673,973 1,698,242 --------- --------- --------- --------- Gross Profit 546,650 938,426 2,113,242 2,534,021 Amortization 59,118 84,559 157,763 173,533 Royalties, Research and Development 209,265 249,294 635,366 711,790 Advertising 171,256 157,053 452,978 456,978 Selling, Distribution and Administration 237,043 284,688 863,496 799,919 Restructuring Charge 63,951 64,232 63,951 64,232 Loss on Sale of Business Units 43,965 - 43,965 - --------- ------- --------- --------- Operating Profit (Loss) (237,948) 98,600 (104,277) 327,569 Interest Expense 34,215 24,552 114,421 69,340 Other (Income) Expense, Net 5,213 (9,574) 7,288 (15,616) --------- --------- --------- --------- Earnings (Loss) Before Income Taxes (277,376) 83,622 (225,986) 273,845 Income Taxes (97,286) 25,923 (81,355) 84,892 --------- --------- --------- --------- Net Earnings (Loss) $ (180,090) 57,699 $ (144,631) 188,953 ========= ========= ========= ========= Per Common Share Net Earnings (Loss) Basic $ (1.05)$ .30 $ (0.82)$ .97 ========= ========= ========= ========= Diluted $ (1.05)$ .29 $ (0.82)$ .93 ========= ========= ========= ========= Cash Dividends Declared $ .03 $ .06 $ .21 $ .24 ========= ========= ========= ========= Weighted Average Number of Shares Basic 171,820 193,828 176,437 194,917 ========= ========= ========= ========= Diluted 171,820 196,395 176,437 202,103 ========= ========= ========= ========= HASBRO, INC. CONSOLIDATED CONDENSED BALANCE SHEETS (Thousands of Dollars) Dec. 31, Dec. 26, 2000 1999 --------- --------- Assets Cash and Cash Equivalents $ 127,115 $ 280,159 Accounts Receivable, Net 685,975 1,084,118 Inventories 335,493 408,571 Other 431,630 358,804 --------- --------- Total Current Assets 1,580,213 2,131,652 Property, Plant and Equipment, Net 296,729 318,825 Other Assets 1,951,517 2,012,871 --------- --------- Total Assets $3,828,459 $4,463,348 ========= ========= Liabilities and Shareholders' Equity Short-term Borrowings $ 228,085 $ 714,669 Payables and Accrued Liabilities 1,011,727 1,356,658 --------- --------- Total Current Liabilities 1,239,812 2,071,327 Long-term Debt 1,167,838 420,654 Deferred Liabilities 93,403 92,392 --------- --------- Total Liabilities 2,501,053 2,584,373 Total Shareholders' Equity 1,327,406 1,878,975 --------- --------- Total Liabilities and Shareholders' Equity $3,828,459 $4,463,348 ========= ========= HASBRO, INC. IMPACT OF CONSOLIDATION PROGRAM (Thousands of Dollars and Shares Except Per Share Data) Quarter Ended December 31, 2000 --------------------------------------- Impact of Excluding Consolidation Consolidation Program and Program and Loss on Sale Loss on Sale As of Business of Business Reported Units Units --------- --------- --------- Net Revenues $1,162,744 - $1,162,744 Cost of Sales 616,094 (6,625) 609,469 --------- --------- --------- Gross Profit 546,650 6,625 553,275 Amortization 59,118 (25,046) 34,072 Royalties, Research and Development 209,265 (42,270) 166,995 Advertising 171,256 (3,155) 168,101 Selling, Distribution and Administration 237,043 (5,095) 231,948 Restructuring Charge 63,951 (63,951) - Loss on Sale of Business Units 43,965 (43,965) - --------- --------- --------- Operating Profit (Loss) (237,948) 190,107 (47,841) Interest Expense 34,215 - 34,215 Other (Income) Expense, Net 5,213 - 5,213 --------- --------- --------- Earnings (Loss) Before Income Taxes (277,376) 190,107 (87,269) Income Taxes (97,286) 68,438 (28,848) --------- --------- --------- Net Earnings (Loss) $ (180,090) 121,669 $ (58,421) ========= ========= ========= Per Common Share Net Earnings (Loss) Basic $ (1.05) .71 $ (0.34) ========= ========= ========= Diluted $ (1.05) .71 $ (0.34) ========= ========= ========= Weighted Average Number of Shares Basic 171,820 ========= Diluted 171,820 ========= HASBRO, INC. IMPACT OF CONSOLIDATION PROGRAM (Thousands of Dollars and Shares Except Per Share Data) Year Ended December 31, 2000 --------------------------------------- Impact of Excluding Consolidation Consolidation Program and Program and Loss on Sale Loss on Sale As of Business of Business Reported Units Units --------- --------- --------- Net Revenues $3,787,215 - $3,787,215 Cost of Sales 1,673,973 (6,625) 1,667,348 --------- --------- --------- Gross Profit 2,113,242 6,625 2,119,867 Amortization 157,763 (25,046) 132,717 Royalties, Research and Development 635,366 (42,270) 593,096 Advertising 452,978 (3,155) 449,823 Selling, Distribution and Administration 863,496 (5,095) 858,401 Restructuring Charge 63,951 (63,951) - Loss on Sale of Business Units 43,965 (43,965) - --------- --------- --------- Operating Profit (Loss) (104,277) 190,107 85,830 Interest Expense 114,421 - 114,421 Other (Income) Expense, Net 7,288 - 7,288 --------- --------- --------- Earnings (Loss) Before Income Taxes (225,986) 190,107 (35,879) Income Taxes (81,355) 68,438 (12,917) --------- --------- --------- Net Earnings (Loss) $ (144,631) 121,669 $ (22,962) ========= ========= ========= Per Common Share Net Earnings (Loss) Basic $ (0.82) .69 $ (0.13) ========= ========= ========= Diluted $ (0.82) .69 $ (0.13) ========= ========= ========= Weighted Average Number of Shares Basic 176,437 ========= Diluted 176,437 ========= -----END PRIVACY-ENHANCED MESSAGE-----