-----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, KZJCeq/t13XJIVSTnix9EiuSEnsKTUr0TTpvC5V1djQOM1s2m7Qk8XGYsPJtqhqA qtil4s5j2Jsm3UTDldujyg== 0000046080-01-500004.txt : 20010424 0000046080-01-500004.hdr.sgml : 20010424 ACCESSION NUMBER: 0000046080-01-500004 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20010423 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 20010423 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: 1608438 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 april23018k.txt FORM 8-K 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): April 23, 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 April 23, 2001 Press Release of the Registrant attached hereto as EXHIBIT 99 is incorporated herein by reference. Item 7(c) Exhibits 99 Press Release, dated April 23, 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: April 23, 2001 By: /s/ David D. R. Hargreaves -------------------------- David D. R. Hargreaves Senior Vice President and Chief Financial Officer (Duly Authorized Officer and Principal Financial Officer) HASBRO, INC. Current Report on Form 8-K Dated April 23, 2001 Exhibit Index Exhibit No. Exhibits - ------- -------- 99 Press Release dated April 23, 2001 EX-99 2 exhibit_99.txt PRESS RELEASE DATED APRIL 23, 2001 EXHIBIT 99 For Immediate Release Contact: Karen A. Warren (Investor Relations) April 23, 2001 401-727-5401 Wayne S. Charness (News Media) 401-727-5983 HASBRO REPORTS FIRST QUARTER RESULTS OUTLOOK FOR FULL-YEAR 2001 ON TRACK TO RETURN TO PROFITABILITY Pawtucket, RI (April 23, 2001) - Hasbro, Inc. (NYSE:HAS) today reported first quarter results. Worldwide net revenues were $463.3 million, compared to a record $773.5 million a year ago. The net loss for the quarter was $25.0 million, compared to earnings of $15.1 million in 2000, and diluted loss per share was $0.15, compared to earnings of $0.08 in 2000. The Company also reported first quarter Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) of $34.4 million, compared to $95.5 million a year ago. "Today we announced first quarter revenues which were $310 million or 40% lower than a year ago. This was not unexpected. We knew coming into the year that comparisons for the first two quarters would be very difficult. The decline in revenue can be attributed to POKEMON, Furby and the sale of Hasbro Interactive. Although we are reporting a loss today, it is in line with our expectations, and we are on track to deliver on our profitability goal for the year. However, as we had stated previously, it will not be until the second half, when the majority of our new product lines ship, that we will see the real benefits to the bottom line," said Alan G. Hassenfeld, Chairman and Chief Executive Officer. Revenue from the Game and U.S. Toys segments declined year over year, primarily due to POKEMON trading card games and toys and the sale of Hasbro Interactive. Both the Game and U.S. Toys segments had pre-tax losses, but there was improvement year over year in the U. S. Toys segment. International revenue declined year over year, primarily due to POKEMON and Furby. This decline in international segment revenue resulted in a pre-tax loss for the international segment in the first quarter. "We've made significant progress in our cost savings initiatives, with reductions in all operating expense categories. These reductions were primarily attributable to our ongoing cost reduction program that we announced last year and the sale of Hasbro Interactive and Games.com," said Alfred J. Verrecchia, President and Chief Operating Officer. "In addition, we finished the quarter with minimal usage of our bank lines and significant cash on hand. Adjusted for the $313 million payment made in early April 2000 to fund the "Modified Dutch Auction" tender offer, cash increased $150 million year over year. As a further indication of strong financial management, we reduced our inventory levels and accounts receivable. Hasbro's management team remains focused and the expense reduction initiatives we began last year are a major step towards our most important objective of returning as quickly as possible to the profitability levels we have had historically," Verrecchia noted. Effective January 1, 2001, Hasbro adopted Statement of Financial Accounting Standards No. 133, "Accounting for Derivative Instruments and Hedging Activities." As a result of the adoption of this statement, Hasbro recorded a one-time transition adjustment charge of $1.07 million or $0.01 per share, net of tax, in the consolidated statement of operations for the quarter. The company will webcast its first quarter earnings conference call at 9:00 a.m. Eastern time today. 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, 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 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. (Tables Attached) HASBRO, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (Thousands of Dollars and Shares Except Per Share Data) Quarter Ended ------------------------- Apr. 1, Apr. 2, 2001 2000 -------- -------- Net Revenues $463,286 $773,481 Cost of Sales 189,805 300,301 -------- -------- Gross Profit 273,481 473,180 Amortization 29,421 32,856 Royalties, Research and Development 56,735 126,039 Advertising 47,613 69,359 Selling, Distribution and Administration 153,819 204,736 -------- -------- Operating Profit (Loss) (14,107) 40,190 Interest Expense 25,890 21,443 Other (Income) Expense, Net (4,765) (3,176) -------- -------- Earnings (Loss) Before Income Taxes and Cumulative Effect of Accounting Change (35,232) 21,923 Income Taxes (11,274) 6,796 -------- -------- Earnings (loss) before Cumulative Effect of Accounting Change (23,958) 15,127 Cumulative Effect of Accounting Change (1,066) - -------- -------- Net Earnings (Loss) $(25,024) $ 15,127 ======== ======== Per Common Share Earnings (Loss) before Cumulative Effect of Accounting Change Basic and Diluted $ (.14) $ .08 ======== ======== Cumulative Effect of Accounting Change Basic and Diluted $ (.01) $ - ======== ======== Net Earnings (Loss) per share Basic and Diluted $ (.15) $ .08 ======== ======== Cash Dividends Declared $ .03 $ .06 ======== ======== Weighted Average Number of Shares Basic 171,933 189,563 ======== ======== Diluted 171,933 190,341 ======== ======== HASBRO, INC. CONSOLIDATED CONDENSED BALANCE SHEETS (Thousands of Dollars) Apr. 1, Apr. 2, 2001 2000 --------- --------- Assets Cash and Cash Equivalents $ 180,766 $ 343,643 Accounts Receivable, Net 255,450 455,374 Inventories 306,624 442,150 Other Current Assets 390,596 451,596 --------- --------- Total Current Assets 1,133,436 1,692,763 Property, Plant and Equipment, Net 279,184 315,091 Other Assets 1,950,338 1,998,832 --------- --------- Total Assets $3,362,958 $4,006,686 ========= ========= Liabilities and Shareholders' Equity Short-term Borrowings $ 92,229 $ 79,597 Payables and Accrued Liabilities 713,034 1,138,429 --------- --------- Total Current Liabilities 805,263 1,218,026 Long-term Debt 1,167,528 1,169,406 Deferred Liabilities 116,784 105,180 --------- --------- Total Liabilities 2,089,575 2,492,612 Total Shareholders' Equity 1,273,383 1,514,074 --------- --------- Total Liabilities and Shareholders' Equity $3,362,958 $4,006,686 ========= ========= -----END PRIVACY-ENHANCED MESSAGE-----