Rhode Island
|
|
1-6682
|
|
05-0155090
|
(State or other jurisdiction
of incorporation) |
|
(Commission File Number)
|
|
(IRS Employer
Identification No.) |
1027 Newport Ave., Pawtucket, Rhode Island
|
|
02862
|
(Address of principal executive offices)
|
|
(Zip Code)
|
99.1 | Hasbro, Inc. Press Release, dated April 22, 2013. |
|
|
HASBRO, INC.
|
|
|
|
|
By:
|
/s/ Deborah Thomas
|
|
Name:
|
Deborah Thomas
|
|
Title:
|
Senior Vice President and Chief Financial Officer
(Duly Authorized Officer and Principal Financial Officer)
|
Date: April 22, 2013
|
|
|
Exhibit No.
|
|
Description
|
|
99.1
|
|
Hasbro, Inc. Press Release, dated April 22, 2013.
|
|
For Immediate Release
April 22, 2013
|
Contacts:
Debbie Hancock
(Investor Relations)
401-727-5401
|
Wayne Charness
(News Media)
401-727-5983
|
|
|
|
·
|
Net revenues increased 2% to $663.7 million for the first quarter 2013 versus $648.9 million for the first quarter 2012; U.S. and Canada segment up 4%; International segment flat; Entertainment and Licensing segment up 5%;
|
·
|
Operating Profit increased 47% to $39.6 million, excluding $28.9 million in charges associated with restructuring actions in 2013 and $11.1 million in 2012;
|
·
|
Net earnings increased 30% to $6.6 million or $0.05 per diluted share, excluding the restructuring charges and favorable tax adjustments of $5.5 million in the first quarter 2013 and restructuring charges in 2012;
|
·
|
As reported, first quarter 2013 net loss of $6.7 million, or ($0.05) per diluted share compared to a first quarter 2012 net loss of $2.6 million, or ($0.02) per diluted share;
|
·
|
The Games, Girls and Preschool categories grew in the quarter;
|
·
|
Growth across vast majority of Franchise Brands; Greater than 30% revenue growth in MY LITTLE PONY, MAGIC: THE GATHERING and PLAY-DOH; MARVEL up more than 20%.
|
|
Net Revenues ($ Millions)
|
Operating Profit (Loss) ($ Millions)
|
||||
Q1 2013
|
Q1 2012
|
% Change
|
Q1 2013
|
Q1 2012
|
% Change
|
|
U.S. and Canada
|
$342.1
|
$329.0
|
+4%
|
$37.7
|
$14.4
|
+162%
|
International
|
$289.8
|
$289.7
|
--
|
$(4.5)
|
$(5.1)
|
+11%
|
Entertainment and Licensing
|
$30.8
|
$29.3
|
+5%
|
$5.3
|
$7.7
|
-32%
|
|
Net Revenues ($ Millions)
|
||
Q1 2013
|
Q1 2012
|
% Change
|
|
Boys
|
$242.8
|
$302.8
|
-20%
|
Games
|
$230.9
|
$182.9
|
+26%
|
Girls
|
$114.8
|
$93.2
|
+23%
|
Preschool
|
$75.2
|
$70.0
|
+8%
|
HASBRO, INC.
|
||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS
|
||||||||
(Unaudited)
|
||||||||
(Thousands of Dollars)
|
March 31, 2013
|
April 1, 2012
|
||||||
ASSETS
|
||||||||
Cash and Cash Equivalents
|
$
|
1,067,039
|
$
|
883,824
|
||||
Accounts Receivable, Net
|
509,276
|
456,580
|
||||||
Inventories
|
323,754
|
396,981
|
||||||
Other Current Assets
|
350,327
|
281,517
|
||||||
Total Current Assets
|
2,250,396
|
2,018,902
|
||||||
Property, Plant and Equipment, Net
|
232,902
|
222,821
|
||||||
Other Assets
|
1,577,347
|
1,655,414
|
||||||
Total Assets
|
$
|
4,060,645
|
$
|
3,897,137
|
||||
|
||||||||
|
||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
Short-term Borrowings
|
$
|
161,968
|
$
|
171,177
|
||||
Payables and Accrued Liabilities
|
579,705
|
554,700
|
||||||
Total Current Liabilities
|
741,673
|
725,877
|
||||||
Long-term Debt
|
1,394,387
|
1,400,942
|
||||||
Other Liabilities
|
462,752
|
372,925
|
||||||
Total Liabilities
|
2,598,812
|
2,499,744
|
||||||
Total Shareholders' Equity
|
1,461,833
|
1,397,393
|
||||||
Total Liabilities and Shareholders' Equity
|
$
|
4,060,645
|
$
|
3,897,137
|
HASBRO, INC.
|
||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
|
Quarter Ended
|
|||||||||||||||
(Thousands of Dollars and Shares Except Per Share Data)
|
March 31, 2013
|
% Net Revenues
|
April 1, 2012
|
% Net Revenues
|
||||||||||||
Net Revenues
|
$
|
663,694
|
100.0
|
%
|
$
|
648,850
|
100.0
|
%
|
||||||||
Costs and Expenses:
|
||||||||||||||||
Cost of Sales
|
267,572
|
40.3
|
%
|
257,036
|
39.6
|
%
|
||||||||||
Royalties
|
49,392
|
7.5
|
%
|
52,434
|
8.1
|
%
|
||||||||||
Product Development
|
47,185
|
7.1
|
%
|
44,926
|
6.9
|
%
|
||||||||||
Advertising
|
67,134
|
10.1
|
%
|
65,045
|
10.0
|
%
|
||||||||||
Amortization of Intangibles
|
11,416
|
1.7
|
%
|
10,655
|
1.7
|
%
|
||||||||||
Program Production Cost Amortization
|
5,723
|
0.9
|
%
|
3,138
|
0.5
|
%
|
||||||||||
Selling, Distribution and Administration
|
204,645
|
30.8
|
%
|
199,890
|
30.8
|
%
|
||||||||||
Operating Profit
|
10,627
|
1.6
|
%
|
15,726
|
2.4
|
%
|
||||||||||
Interest Expense
|
22,979
|
3.5
|
%
|
23,112
|
3.6
|
%
|
||||||||||
Other (Income) Expense, Net
|
4,141
|
0.6
|
%
|
(2,520
|
)
|
-0.4
|
%
|
|||||||||
Loss before Income Taxes
|
(16,493
|
)
|
-2.5
|
%
|
(4,866
|
)
|
-0.8
|
%
|
||||||||
Income Taxes
|
(9,822
|
)
|
-1.5
|
%
|
(2,287
|
)
|
-0.4
|
%
|
||||||||
Net Loss
|
$
|
(6,671
|
)
|
-1.0
|
%
|
$
|
(2,579
|
)
|
-0.4
|
%
|
||||||
|
||||||||||||||||
Per Common Share
|
||||||||||||||||
Net Loss
|
||||||||||||||||
Basic
|
$
|
(0.05
|
)
|
$
|
(0.02
|
)
|
||||||||||
Diluted
|
$
|
(0.05
|
)
|
$
|
(0.02
|
)
|
||||||||||
|
||||||||||||||||
Cash Dividends Declared
|
$
|
0.40
|
$
|
0.36
|
||||||||||||
|
||||||||||||||||
Weighted Average Number of Shares
|
||||||||||||||||
Basic
|
129,340
|
129,569
|
||||||||||||||
Diluted
|
129,340
|
129,569
|
HASBRO, INC.
|
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||||||
(Unaudited)
|
||||||||
|
Quarter Ended
|
|||||||
(Thousands of Dollars)
|
March 31, 2013
|
April 1, 2012
|
||||||
Cash Flows from Operating Activities:
|
||||||||
Net Loss
|
$
|
(6,671
|
)
|
$
|
(2,579
|
)
|
||
Non-cash Adjustments
|
34,135
|
39,601
|
||||||
Changes in Operating Assets and Liabilities
|
269,990
|
247,716
|
||||||
Net Cash Provided by Operating Activities
|
297,454
|
284,738
|
||||||
|
||||||||
Cash Flows from Investing Activities:
|
||||||||
Additions to Property, Plant and Equipment
|
(24,201
|
)
|
(23,034
|
)
|
||||
Other
|
3,598
|
6,673
|
||||||
Net Cash Utilized by Investing Activities
|
(20,603
|
)
|
(16,361
|
)
|
||||
|
||||||||
Cash Flows from Financing Activities:
|
||||||||
Net Repayments of Short-term Borrowings
|
(62,605
|
)
|
(10,137
|
)
|
||||
Purchases of Common Stock
|
(22,213
|
)
|
(4,644
|
)
|
||||
Stock-based Compensation Transactions
|
25,463
|
22,929
|
||||||
Dividends Paid
|
-
|
(38,593
|
)
|
|||||
Net Cash Utilized by Financing Activities
|
(59,355
|
)
|
(30,445
|
)
|
||||
|
||||||||
Effect of Exchange Rate Changes on Cash
|
(158
|
)
|
4,204
|
|||||
|
||||||||
Cash and Cash Equivalents at Beginning of Year
|
849,701
|
641,688
|
||||||
Cash and Cash Equivalents at End of Period
|
$
|
1,067,039
|
$
|
883,824
|
HASBRO, INC.
|
||||||||||||
SUPPLEMENTAL FINANCIAL DATA
|
||||||||||||
(Unaudited)
|
||||||||||||
(Thousands of Dollars)
|
||||||||||||
|
Quarter Ended
|
|||||||||||
|
March 31, 2013
|
April 1, 2012
|
% Change
|
|||||||||
Major Segment Results
|
||||||||||||
U.S. and Canada Segment:
|
||||||||||||
External Net Revenues
|
$
|
342,059
|
$
|
328,985
|
4
|
%
|
||||||
Operating Profit
|
37,743
|
14,411
|
162
|
%
|
||||||||
Operating Margin
|
11.0
|
%
|
4.4
|
%
|
||||||||
|
||||||||||||
International Segment:
|
||||||||||||
External Net Revenues
|
289,813
|
289,729
|
0
|
%
|
||||||||
Operating Loss
|
(4,505
|
)
|
(5,084
|
)
|
11
|
%
|
||||||
Operating Margin
|
-1.6
|
%
|
-1.8
|
%
|
||||||||
|
||||||||||||
Entertainment and Licensing Segment:
|
||||||||||||
External Net Revenues
|
30,774
|
29,336
|
5
|
%
|
||||||||
Operating Profit
|
5,285
|
7,738
|
-32
|
%
|
||||||||
Operating Margin
|
17.2
|
%
|
26.4
|
%
|
||||||||
Net Revenues by Product Class
|
||||||||||||
Boys
|
$
|
242,796
|
$
|
302,759
|
-20
|
%
|
||||||
Games
|
230,915
|
182,916
|
26
|
%
|
||||||||
Girls
|
114,774
|
93,236
|
23
|
%
|
||||||||
Preschool
|
75,209
|
69,939
|
8
|
%
|
||||||||
Total Net Revenues
|
$
|
663,694
|
$
|
648,850
|
||||||||
|
||||||||||||
International Segment Net Revenues by Major Geographic Region
|
||||||||||||
Europe
|
$
|
192,589
|
$
|
208,113
|
-7
|
%
|
||||||
Latin America
|
45,713
|
38,969
|
17
|
%
|
||||||||
Asia Pacific
|
51,511
|
42,647
|
21
|
%
|
||||||||
Total
|
$
|
289,813
|
$
|
289,729
|
||||||||
|
||||||||||||
Reconciliation of EBITDA
|
||||||||||||
Net Loss
|
$
|
(6,671
|
)
|
$
|
(2,579
|
)
|
||||||
Interest Expense
|
22,979
|
23,112
|
||||||||||
Income Taxes
|
(9,822
|
)
|
(2,287
|
)
|
||||||||
Depreciation
|
19,351
|
19,308
|
||||||||||
Amortization of Intangibles
|
11,416
|
10,655
|
||||||||||
EBITDA
|
$
|
37,253
|
$
|
48,209
|
HASBRO, INC.
|
||||||||||||||||
SUPPLEMENTAL FINANCIAL DATA
|
||||||||||||||||
RESTRUCTURING CHARGES
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
(Thousands of Dollars)
|
||||||||||||||||
Operating Profit, Excluding Restructuring
|
||||||||||||||||
Quarter Ended March 31, 2013
|
Q1 2013,
As Reported
|
Less
Restructuring
|
Q1 2013, Excluding Restructuring
|
% Net Revenues
|
||||||||||||
Net Revenues
|
$
|
663,694
|
$
|
-
|
$
|
663,694
|
100.0
|
%
|
||||||||
Costs and Expenses:
|
||||||||||||||||
Cost of Sales
|
267,572
|
(8,493
|
)
|
259,079
|
39.0
|
%
|
||||||||||
Royalties
|
49,392
|
-
|
49,392
|
7.5
|
%
|
|||||||||||
Product Development
|
47,185
|
(3,515
|
)
|
43,670
|
6.5
|
%
|
||||||||||
Advertising
|
67,134
|
-
|
67,134
|
10.1
|
%
|
|||||||||||
Amortization of Intangibles
|
11,416
|
-
|
11,416
|
1.7
|
%
|
|||||||||||
Program Production Cost Amortization
|
5,723
|
-
|
5,723
|
0.9
|
%
|
|||||||||||
Selling, Distribution and Administration
|
204,645
|
(16,918
|
)
|
187,727
|
28.3
|
%
|
||||||||||
Operating Profit
|
$
|
10,627
|
$
|
(28,926
|
)
|
$
|
39,553
|
6.0
|
%
|
|||||||
|
||||||||||||||||
Quarter Ended April 1, 2012
|
Q1 2012,
As Reported
|
Less
Restructuring
|
Q1 2012, Excluding Restructuring
|
% Net Revenues
|
||||||||||||
Net Revenues
|
$
|
648,850
|
$
|
-
|
$
|
648,850
|
100.0
|
%
|
||||||||
Costs and Expenses:
|
||||||||||||||||
Cost of Sales
|
257,036
|
(2,764
|
)
|
254,272
|
39.2
|
%
|
||||||||||
Royalties
|
52,434
|
-
|
52,434
|
8.1
|
%
|
|||||||||||
Product Development
|
44,926
|
(2,479
|
)
|
42,447
|
6.5
|
%
|
||||||||||
Advertising
|
65,045
|
-
|
65,045
|
10.0
|
%
|
|||||||||||
Amortization of Intangibles
|
10,655
|
-
|
10,655
|
1.7
|
%
|
|||||||||||
Program Production Cost Amortization
|
3,138
|
-
|
3,138
|
0.5
|
%
|
|||||||||||
Selling, Distribution and Administration
|
199,890
|
(5,887
|
)
|
194,003
|
29.9
|
%
|
||||||||||
Operating Profit
|
$
|
15,726
|
$
|
(11,130
|
)
|
$
|
26,856
|
4.1
|
%
|
|||||||
Net Earnings and Earnings per Share Excluding Restructuring Charges and 2013 Tax Benefit
|
||||||||||||||||
|
Quarter Ended
|
|||||||||||||||
|
March 31, 2013
|
Diluted Per Share Amount
|
April 1, 2012
|
Diluted Per Share Amount
|
||||||||||||
Net Loss, as Reported
|
$
|
(6,671
|
)
|
$
|
(0.05
|
)
|
$
|
(2,579
|
)
|
$
|
(0.02
|
)
|
||||
Restructuring Charges, Net of Tax
|
18,777
|
0.14
|
7,675
|
0.06
|
||||||||||||
2013 Discrete Tax Benefits, Net (1)
|
(5,467
|
)
|
(0.04
|
)
|
-
|
-
|
||||||||||
Net Earnings, as Adjusted
|
$
|
6,639
|
$
|
0.05
|
$
|
5,096
|
$
|
0.04
|
||||||||
|
||||||||||||||||
(1)The favorable 2013 discrete tax adjustments were not unusual, however, due to the relative size of first quarter 2013 net earnings, had a significant impact on reported diluted earnings per share.
|
Restructuring Charges – by Segment
|
Quarter Ended
|
|||||||
|
March 31, 2013
|
April 1, 2012
|
||||||
U.S. and Canada Segment
|
$
|
-
|
$
|
2,444
|
||||
International Segment
|
-
|
1,628
|
||||||
Entertainment and Licensing Segment
|
1,729
|
555
|
||||||
Global Operations Segment
|
-
|
4,307
|
||||||
Corporate and Eliminations
|
27,197
|
2,196
|
||||||
Total Restructuring Charges
|
$
|
28,926
|
$
|
11,130
|