EX-99.1 2 exhibit991.htm HASBRO, INC. REVISED EARNINGS RELEASE FINANCIAL SCHEDULES FOR THE QUARTER ENDED SEPTEMBER 29, 2013.
Exhibit 99.1
 
HASBRO, INC.
 
CONDENSED CONSOLIDATED BALANCE SHEETS
 
(Unaudited)
 
 
(Thousands of Dollars)
 
Sept. 29, 2013
   
Sept. 30, 2012
 
ASSETS
 
   
 
Cash and Cash Equivalents
 
$
588,668
   
$
696,733
 
Accounts Receivable, Net
   
1,215,289
     
1,195,517
 
Inventories
   
447,113
     
463,433
 
Other Current Assets
   
346,215
     
263,297
 
  Total Current Assets
   
2,597,285
     
2,618,980
 
Property, Plant and Equipment, Net
   
231,199
     
217,636
 
Other Assets
   
1,761,661
     
1,609,671
 
  Total Assets
 
$
4,590,145
   
$
4,446,287
 
 
               
 
               
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND SHAREHOLDERS' EQUITY
               
Short-term Borrowings
 
$
212,926
   
$
264,745
 
Current Portion of Long-term Debt
   
430,424
     
-
 
Payables and Accrued Liabilities
   
1,005,529
     
861,874
 
  Total Current Liabilities
   
1,648,879
     
1,126,619
 
Long-term Debt
   
959,895
     
1,398,906
 
Other Liabilities
   
410,672
     
393,873
 
  Total Liabilities
   
3,019,446
     
2,919,398
 
Redeemable Noncontrolling Interests
   
47,269
     
-
 
Total Shareholders' Equity
   
1,523,430
     
1,526,889
 
  Total Liabilities, Redeemable Noncontrolling Interests and   Shareholders' Equity
 
$
4,590,145
   
$
4,446,287
 




HASBRO, INC.
 
CONSOLIDATED STATEMENTS OF OPERATIONS
 
(Unaudited)
 
 
 
Quarter Ended
   
Nine Months Ended
 
(Thousands of Dollars and Shares Except Per Share Data)
 
Sept. 29, 2013
   
% Net Revenues
   
Sept. 30, 2012
   
% Net Revenues
   
Sept. 29, 2013
   
% Net Revenues
   
Sept. 30, 2012
   
% Net Revenues
 
Net Revenues
 
$
1,370,348
     
100.0
%
 
$
1,345,137
     
100.0
%
 
$
2,800,384
     
100.0
%
 
$
2,805,454
     
100.0
%
Costs and Expenses:
                                                               
  Cost of Sales
   
568,582
     
41.5
%
   
586,516
     
43.6
%
   
1,136,724
     
40.6
%
   
1,155,536
     
41.2
%
  Royalties
   
143,947
     
10.5
%
   
89,224
     
6.6
%
   
243,568
     
8.8
%
   
212,551
     
7.6
%
  Product Development
   
59,366
     
4.3
%
   
48,472
     
3.6
%
   
154,455
     
5.5
%
   
143,511
     
5.1
%
  Advertising
   
136,487
     
10.0
%
   
134,997
     
10.0
%
   
277,278
     
9.9
%
   
279,339
     
10.0
%
  Amortization of Intangibles
   
14,224
     
1.0
%
   
12,636
     
0.9
%
   
37,677
     
1.3
%
   
34,792
     
1.2
%
  Program Product Cost Amortization
   
17,991
     
1.3
%
   
12,794
     
1.0
%
   
34,023
     
1.2
%
   
25,950
     
0.9
%
  Selling, Distribution and Administration
   
231,045
     
16.9
%
   
210,876
     
15.7
%
   
633,238
     
22.6
%
   
602,145
     
21.5
%
    Operating Profit
   
198,706
     
14.5
%
   
249,622
     
18.6
%
   
283,421
     
10.1
%
   
351,630
     
12.5
%
Interest Expense
   
41,194
     
3.0
%
   
23,043
     
1.7
%
   
86,398
     
3.0
%
   
68,568
     
2.4
%
Other (Income) Expense, Net
   
1,599
     
0.1
%
   
1,630
     
0.1
%
   
6,527
     
0.3
%
   
3,320
     
0.1
%
    Earnings before Income Taxes
   
155,913
     
11.4
%
   
224,949
     
16.8
%
   
190,496
     
6.8
%
   
279,742
     
10.0
%
Income Taxes
   
30,070
     
2.2
%
   
60,097
     
4.5
%
   
34,844
     
1.2
%
   
74,042
     
2.7
%
    Net Earnings
   
125,843
     
9.2
%
   
164,852
     
12.3
%
   
155,652
     
5.6
%
   
205,700
     
7.3
%
Net Loss Attributable to Noncontrolling Interests
   
(731
)
   
0.0
%
   
-
     
0.0
%
   
(731
)
   
0.0
%
   
-
     
0.0
%
    Net Earnings Attributable to Hasbro, Inc.
 
$
126,574
     
9.2
%
 
$
164,852
     
12.3
%
 
$
156,383
     
5.6
%
 
$
205,700
     
7.3
%
 
Per Common Share
 
             Net Earnings Attributable to Hasbro, Inc.
                                                               
                       Basic
 
$
0.97
           
$
1.26
           
$
1.20
           
$
1.58
         
                       Diluted
 
$
0.96
           
$
1.24
           
$
1.19
           
$
1.56
         
 
                                                               
             Cash Dividends Declared
 
$
0.40
           
$
0.36
           
$
1.20
           
$
1.08
         
 
                                                               
Weighted Average Number of Shares
                                                               
             Basic
   
130,253
             
130,619
             
129,972
             
130,146
         
             Diluted
   
131,845
             
132,483
             
131,573
             
132,039
         


HASBRO, INC.
 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
 
(Unaudited)
 
 
 
Nine Months Ended
 
(Thousands of Dollars)
 
Sept. 29, 2013
   
Sept. 30, 2012
 
Cash Flows from Operating Activities:
 
   
 
   Net Earnings
 
$
155,652
   
$
205,700
 
   Non-cash Adjustments
   
168,429
     
152,201
 
   Changes in Operating Assets and Liabilities
   
(276,764
)
   
(214,285
)
    Net Cash Provided by Operating Activities
   
47,317
     
143,616
 
 
               
Cash Flows from Investing Activities:
               
   Additions to Property, Plant and Equipment
   
(78,246
)
   
(74,896
)
   Investments and Acquisitions, Net of Cash Acquired
   
(109,955
)
   
-
 
   Other
   
3,121
     
2,558
 
    Net Cash Utilized by Investing Activities
   
(185,080
)
   
(72,338
)
 
               
Cash Flows from Financing Activities:
               
   Net (Repayments of) Proceeds from Short-term Borrowings
   
(11,235
)
   
83,380
 
   Purchases of Common Stock
   
(86,972
)
   
(15,079
)
   Stock-based Compensation Transactions
   
87,172
     
49,182
 
   Dividends Paid
   
(104,164
)
   
(132,231
)
    Net Cash Utilized by Financing Activities
   
(115,199
)
   
(14,748
)
 
               
Effect of Exchange Rate Changes on Cash
   
(8,071
)
   
(1,485
)
 
               
Cash and Cash Equivalents at Beginning of Year
   
849,701
     
641,688
 
Cash and Cash Equivalents at End of Period
 
$
588,668
   
$
696,733
 



HASBRO, INC.
 
SUPPLEMENTAL FINANCIAL DATA
 
(Unaudited)
 
(Thousands of Dollars)
 
 
 
 
Quarter Ended
   
Nine Months Ended
 
 
 
Sept. 29, 2013
   
Sept. 30, 2012
   
% Change
   
Sept. 29, 2013
   
Sept. 30, 2012
   
% Change
 
Major Segment Results
 
   
   
   
   
   
 
U.S. and Canada Segment:
 
   
   
   
   
   
 
  External Net Revenues
 
$
735,619
   
$
774,539
     
-5
%
 
$
1,466,921
   
$
1,510,112
     
-3
%
  Operating Profit
   
146,991
     
154,239
     
-5
%
   
243,738
     
229,578
     
6
%
  Operating Margin
   
20.0
%
   
19.9
%
           
16.6
%
   
15.2
%
       
 
                                               
International Segment:
                                               
  External Net Revenues
   
582,676
     
524,144
     
11
%
   
1,212,665
     
1,174,366
     
3
%
  Operating Profit
   
105,663
     
85,498
     
24
%
   
115,951
     
110,265
     
5
%
  Operating Margin
   
18.1
%
   
16.3
%
           
9.6
%
   
9.4
%
       
 
                                               
Entertainment and Licensing Segment:
                                         
  External Net Revenues
   
48,637
     
43,066
     
13
%
   
114,747
     
115,618
     
-1
%
  Operating Profit
   
7,625
     
10,722
     
-29
%
   
16,622
     
26,652
     
-38
%
  Operating Margin
   
15.7
%
   
24.9
%
           
14.5
%
   
23.1
%
       
 
                                               
Net Revenues by Product Category
                                         
  Boys
 
$
392,014
   
$
471,125
     
-17
%
 
$
888,494
   
$
1,162,958
     
-24
%
  Games
   
387,450
     
365,714
     
6
%
   
873,774
     
763,460
     
14
%
  Girls
   
388,696
     
302,304
     
29
%
   
652,889
     
499,731
     
31
%
  Preschool
   
202,188
     
205,994
     
-2
%
   
385,227
     
379,305
     
2
%
    Total Net Revenues
 
$
1,370,348
   
$
1,345,137
           
$
2,800,384
   
$
2,805,454
         
 
                                               
 
International Segment Net Revenues by Major Geographic Region
                         
  Europe
 
$
376,648
   
$
345,281
     
9
%
 
$
755,097
   
$
751,547
   
<1
  Latin America
   
131,914
     
115,342
     
14
%
   
260,443
     
237,090
     
10
%
  Asia Pacific
   
74,114
     
63,521
     
17
%
   
197,125
     
185,729
     
6
%
    Total
 
$
582,676
   
$
524,144
           
$
1,212,665
   
$
1,174,366
         
 
                                               
Reconciliation of EBITDA
                                               
 Net Earnings Attributable to Hasbro,   Inc.
 
$
126,574
   
$
164,852
           
$
156,383
   
$
205,700
         
 Net Loss Attributable to   Noncontrolling Interests
   
(731
)
   
-
             
(731
)
   
-
         
 Interest Expense
   
41,194
     
23,043
             
86,398
     
68,568
         
 Income Taxes
   
30,070
     
60,097
             
34,844
     
74,042
         
 Depreciation
   
32,345
     
31,374
             
75,526
     
75,113
         
 Amortization of Intangibles
   
14,224
     
12,636
             
37,677
     
34,792
         
     EBITDA
 
$
243,676
   
$
292,002
           
$
390,097
   
$
458,215
         


HASBRO, INC.
 
SUPPLEMENTAL FINANCIAL DATA
 
RESTRUCTURING AND PENSION SETTLEMENT CHARGES
 
(Unaudited)
 
(Thousands of Dollars)
 
 
Operating Profit, Excluding Restructuring, Pension Settlement and Arbitration Award Charges
 
Quarter Ended September 29, 2013
 
As Reported
   
Less
Restructuring, Pension Settlement and Arbitration Award Charges
   
Excluding Restructuring, Pension Settlement and Arbitration Award Charges
   
% Net Revenues
 
Net Revenues
 
$
1,370,348
   
$
-
   
$
1,370,348
     
100.0
%
Costs and Expenses:
                               
  Cost of Sales
   
568,582
     
-
     
568,582
     
41.5
%
  Royalties
   
143,947
     
(57,164
)
   
86,783
     
6.3
%
  Product Development
   
59,366
     
-
     
59,366
     
4.3
%
  Advertising
   
136,487
     
-
     
136,487
     
10.0
%
  Amortization of Intangibles
   
14,224
     
-
     
14,224
     
1.0
%
  Program Production Cost Amortization
   
17,991
     
-
     
17,991
     
1.3
%
  Selling, Distribution and Administration
   
231,045
     
(4,093
)
   
226,952
     
16.6
%
    Operating Profit
 
$
198,706
   
$
(61,257
)
 
$
259,963
     
19.0
%
 
                               
Nine Months Ended September 29, 2013
 
As Reported
   
Less
Restructuring, Pension Settlement and Arbitration Award Charges
   
Excluding Restructuring, Pension Settlement and Arbitration Award Charges
   
% Net Revenues
 
Net Revenues
 
$
2,800,384
   
$
-
   
$
2,800,384
     
100.0
%
Costs and Expenses:
                               
  Cost of Sales
   
1,136,724
     
(8,493
)
   
1,128,231
     
40.3
%
  Royalties
   
243,568
     
(57,164
)
   
186,404
     
6.7
%
  Product Development
   
154,455
     
(3,515
)
   
150,940
     
5.4
%
  Advertising
   
277,278
     
-
     
277,278
     
9.9
%
  Amortization of Intangibles
   
37,677
     
-
     
37,677
     
1.3
%
  Program Production Cost Amortization
   
34,023
     
-
     
34,023
     
1.2
%
  Selling, Distribution and Administration
   
633,238
     
(23,473
)
   
609,765
     
21.8
%
    Operating Profit
 
$
283,421
   
$
(92,645
)
 
$
376,066
     
13.4
%
 
                               
Nine Months Ended September 30, 2012
 
As Reported
   
Less
Restructuring Charges
   
Excluding Restructuring Charges
   
% Net Revenues
 
Net Revenues
 
$
2,805,454
   
$
-
   
$
2,805,454
     
100.0
%
Costs and Expenses:
                               
  Cost of Sales
   
1,155,536
     
(2,764
)
   
1,152,772
     
41.1
%
  Royalties
   
212,551
     
-
     
212,551
     
7.6
%
  Product Development
   
143,511
     
(2,479
)
   
141,032
     
5.0
%
  Advertising
   
279,339
     
-
     
279,339
     
10.0
%
  Amortization of Intangibles
   
34,792
     
-
     
34,792
     
1.2
%
  Program Production Cost Amortization
   
25,950
     
-
     
25,950
     
0.9
%
  Selling, Distribution and Administration
   
602,145
     
(5,887
)
   
596,258
     
21.3
%
    Operating Profit
 
$
351,630
   
$
(11,130
)
 
$
362,760
     
12.9
%
 
                               
NOTE: There were no restructuring charges included in the reported amounts for the quarter ended September 30, 2012.
 


Net Earnings and Earnings per Share Excluding Restructuring Charges, Pension Settlement Charges, Arbitration Award Charges and Benefit from Settlement of Tax Exams
 
 
 
 
 
 
Quarter Ended
 
 
 
Sept. 29, 2013
   
Diluted Per Share Amount
   
Sept. 30, 2012
   
Diluted Per Share Amount
 
Net Earnings Attributable to Hasbro, Inc., as Reported
 
$
126,574
   
$
0.96
   
$
164,852
   
$
1.24
 
Restructuring Charges, Net of Tax
   
2,447
     
0.02
     
-
     
-
 
Pension Settlement Charges, Net of Tax
   
679
     
0.01
     
-
     
-
 
Arbitration Award Charges, Net of Tax
   
66,447
     
0.50
     
-
     
-
 
2013 Benefit from Tax Exam Settlement
   
(23,637
)
   
(0.18
)
   
-
     
-
 
Net Earnings Attributable to Hasbro, Inc. as Adjusted
 
$
172,510
   
$
1.31
   
$
164,852
   
$
1.24
 
 
                               
 
 
Nine Months Ended
 
 
 
Sept. 29, 2013
   
Diluted Per Share Amount
   
Sept. 30, 2012
   
Diluted Per Share Amount
 
Net Earnings Attributable to Hasbro, Inc., as Reported
 
$
156,383
   
$
1.19
   
$
205,700
   
$
1.56
 
Restructuring Charges, Net of Tax
   
21,224
     
0.16
     
7,675
     
0.06
 
Pension Settlement Charges, Net of Tax
   
2,469
     
0.02
     
-
     
-
 
Arbitration Award Charges, Net of Tax
   
66,447
     
0.50
     
-
     
-
 
2013 Benefit from Tax Exam Settlement
   
(23,637
)
   
(0.18
)
   
-
     
-
 
Net Earnings Attributable to Hasbro, Inc. as Adjusted
 
$
222,886
   
$
1.69
   
$
213,375
   
$
1.62
 


Restructuring, Pension Settlement and Arbitration Award Charges – by Segment
 
 
 
   
 
 
 
Quarter Ended
   
Nine Months Ended
 
 
 
Sept. 29, 2013
   
Sept. 30, 2012
   
Sept. 29, 2013
   
Sept. 30, 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
   
61,257
     
-
     
90,916
     
2,196
 
  Total Restructuring and Pension Settlement Charges
 
$
61,257
   
$
-
   
$
92,645
   
$
11,130