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
|
|
02861
|
(Address of principal executive offices)
|
|
(Zip Code)
|
99.1 | Hasbro, Inc. Press Release, dated April 21, 2014. |
|
|
HASBRO, INC.
|
|
|
|
|
By:
|
/s/ Deborah Thomas
|
|
Name:
|
Deborah Thomas
|
|
Title:
|
Executive Vice President and Chief Financial Officer
(Duly Authorized Officer and Principal Financial Officer)
|
Date: April 21, 2014
|
|
|
Exhibit No.
|
|
Description
|
|
99.1
|
|
Hasbro, Inc. Press Release, dated April 21, 2014.
|
|
·
|
First quarter 2014 revenues grew 2% to $679.5 million; International segment revenues up 5% and Entertainment and Licensing increased 13%;
|
·
|
Franchise Brand revenues grew 15%; Girls category up 21%; Boys category up 2%;
|
·
|
Adjusted operating profit increased 10% and adjusted net earnings increased to $18.6 million or $0.14 per diluted share, excluding favorable tax adjustments in both periods and restructuring and related pension charges in 2013;
|
·
|
Generated $242.0 million in operating cash flow;
|
·
|
Repurchased 1.5 million shares of common stock at a total cost of $80.5 million and an average price of $54.36 per share.
|
Net Revenues ($ Millions)
|
Operating Profit (Loss) ($ Millions)
|
|||||||||||||||||||||||
|
Q1 2014
|
Q1 2013
|
% Change
|
Q1 2014
|
Q1 2013
|
% Change
|
||||||||||||||||||
U.S. and Canada
|
|
$337.7
|
|
$342.1
|
-1
|
%
|
|
$35.8
|
|
$37.7
|
-5
|
%
|
||||||||||||
International
|
|
$305.5
|
|
$289.8
|
+5
|
%
|
|
$2.4
|
|
$(4.5
|
)
|
+154
|
%
|
|||||||||||
Entertainment and Licensing
|
|
$34.9
|
|
$30.8
|
+13
|
%
|
|
$6.0
|
|
$5.3
|
+13
|
%
|
Net Revenues ($ Millions)
|
||||||||||||
|
Q1 2014
|
Q1 2013
|
% Change
|
|||||||||
Boys
|
|
$247.8
|
|
$242.8
|
2
|
%
|
||||||
Games
|
|
$220.5
|
|
$230.9
|
-4
|
%
|
||||||
Girls
|
|
$138.7
|
|
$114.8
|
21
|
%
|
||||||
Preschool
|
|
$72.5
|
|
$75.2
|
-4
|
%
|
HASBRO, INC.
|
||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS
|
||||||||
(Unaudited)
|
||||||||
(Thousands of Dollars)
|
||||||||
|
March 30, 2014
|
March 31, 2013
|
||||||
ASSETS
|
||||||||
Cash and Cash Equivalents
|
$
|
792,249
|
$
|
1,067,039
|
||||
Accounts Receivable, Net
|
552,471
|
509,276
|
||||||
Inventories
|
390,824
|
323,754
|
||||||
Other Current Assets
|
406,561
|
350,327
|
||||||
Total Current Assets
|
2,142,105
|
2,250,396
|
||||||
Property, Plant and Equipment, Net
|
236,898
|
232,902
|
||||||
Other Assets
|
1,650,434
|
1,577,347
|
||||||
Total Assets
|
$
|
4,029,437
|
$
|
4,060,645
|
||||
|
||||||||
|
||||||||
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND SHAREHOLDERS' EQUITY
|
||||||||
Short-term Borrowings
|
$
|
12,858
|
$
|
161,968
|
||||
Current Portion of Long-term Debt
|
426,356
|
-
|
||||||
Payables and Accrued Liabilities
|
654,507
|
579,705
|
||||||
Total Current Liabilities
|
1,093,721
|
741,673
|
||||||
Long-term Debt
|
959,895
|
1,394,387
|
||||||
Other Liabilities
|
337,219
|
461,497
|
||||||
Total Liabilities
|
2,390,835
|
2,597,557
|
||||||
Redeemable Noncontrolling Interests
|
44,180
|
-
|
||||||
Total Shareholders' Equity
|
1,594,422
|
1,463,088
|
||||||
Total Liabilities, Redeemable Noncontrolling Interests and Shareholders' Equity
|
$
|
4,029,437
|
$
|
4,060,645
|
HASBRO, INC.
|
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(Unaudited)
|
|
Quarter Ended
|
|||||||||||||||
(Thousands of Dollars and Shares Except Per Share Data)
|
March 30, 2014
|
% Net Revenues
|
March 31, 2013
|
% Net Revenues
|
||||||||||||
Net Revenues
|
$
|
679,453
|
100.0
|
%
|
$
|
663,694
|
100.0
|
%
|
||||||||
Costs and Expenses:
|
||||||||||||||||
Cost of Sales
|
258,545
|
38.1
|
%
|
267,572
|
40.3
|
%
|
||||||||||
Royalties
|
49,581
|
7.3
|
%
|
49,392
|
7.5
|
%
|
||||||||||
Product Development
|
47,257
|
7.0
|
%
|
47,185
|
7.1
|
%
|
||||||||||
Advertising
|
67,259
|
9.9
|
%
|
67,134
|
10.1
|
%
|
||||||||||
Amortization of Intangibles
|
13,402
|
2.0
|
%
|
11,416
|
1.7
|
%
|
||||||||||
Program Production Cost Amortization
|
4,658
|
0.7
|
%
|
5,723
|
0.9
|
%
|
||||||||||
Selling, Distribution and Administration
|
195,303
|
28.7
|
%
|
204,645
|
30.8
|
%
|
||||||||||
Operating Profit
|
43,448
|
6.4
|
%
|
10,627
|
1.6
|
%
|
||||||||||
Interest Expense
|
22,428
|
3.3
|
%
|
22,979
|
3.5
|
%
|
||||||||||
Other (Income) Expense, Net
|
(4,975
|
)
|
-0.7
|
%
|
4,141
|
0.6
|
%
|
|||||||||
Earnings (Loss) before Income Taxes
|
25,995
|
3.8
|
%
|
(16,493
|
)
|
-2.5
|
%
|
|||||||||
Income Taxes
|
(5,519
|
)
|
-0.8
|
%
|
(9,822
|
)
|
-1.5
|
%
|
||||||||
Net Earnings (Loss)
|
31,514
|
4.6
|
%
|
(6,671
|
)
|
-1.0
|
%
|
|||||||||
Net Loss Attributable to Noncontrolling Interests
|
(573
|
)
|
-0.1
|
%
|
-
|
0.0
|
%
|
|||||||||
Net Earnings (Loss) Attributable to Hasbro, Inc.
|
$
|
32,087
|
4.7
|
%
|
$
|
(6,671
|
)
|
-1.0
|
%
|
|||||||
|
||||||||||||||||
Per Common Share
|
||||||||||||||||
Net Earnings (Loss) Attributable to Hasbro, Inc.
|
||||||||||||||||
Basic
|
$
|
0.24
|
$
|
(0.05
|
)
|
|||||||||||
Diluted
|
$
|
0.24
|
$
|
(0.05
|
)
|
|||||||||||
|
||||||||||||||||
Cash Dividends Declared
|
$
|
0.43
|
$
|
0.40
|
||||||||||||
|
||||||||||||||||
Weighted Average Number of Shares
|
||||||||||||||||
Basic
|
131,232
|
129,340
|
||||||||||||||
Diluted
|
132,733
|
129,340
|
HASBRO, INC.
|
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||||||
(Unaudited)
|
||||||||
|
Quarter Ended
|
|||||||
(Thousands of Dollars)
|
March 30, 2014
|
March 31, 2013
|
||||||
Cash Flows from Operating Activities:
|
||||||||
Net Earnings (Loss)
|
$
|
31,514
|
$
|
(6,671
|
)
|
|||
Non-cash Adjustments
|
50,910
|
34,135
|
||||||
Changes in Operating Assets and Liabilities
|
159,617
|
269,990
|
||||||
Net Cash Provided by Operating Activities
|
242,041
|
297,454
|
||||||
|
||||||||
Cash Flows from Investing Activities:
|
||||||||
Additions to Property, Plant and Equipment
|
(22,239
|
)
|
(24,201
|
)
|
||||
Other
|
(4,839
|
)
|
3,598
|
|||||
Net Cash Utilized by Investing Activities
|
(27,078
|
)
|
(20,603
|
)
|
||||
Cash Flows from Financing Activities:
|
||||||||
Net Proceeds (Repayments) from Short-term Borrowings
|
5,035
|
(62,605
|
)
|
|||||
Purchases of Common Stock
|
(79,913
|
)
|
(22,213
|
)
|
||||
Stock-based Compensation Transactions
|
23,879
|
25,463
|
||||||
Dividends Paid
|
(52,388
|
)
|
-
|
|||||
Net Cash Utilized by Financing Activities
|
(103,387
|
)
|
(59,355
|
)
|
||||
|
||||||||
Effect of Exchange Rate Changes on Cash
|
(1,776
|
)
|
(158
|
)
|
||||
|
||||||||
Cash and Cash Equivalents at Beginning of Year
|
682,449
|
849,701
|
||||||
Cash and Cash Equivalents at End of Period
|
$
|
792,249
|
$
|
1,067,039
|
HASBRO, INC.
|
SUPPLEMENTAL FINANCIAL DATA
|
(Unaudited)
|
(Thousands of Dollars)
|
|
|
Quarter Ended
|
|||||||||||
|
March 30, 2014
|
March 31, 2013
|
% Change
|
|||||||||
Major Segment Results
|
||||||||||||
U.S. and Canada Segment:
|
||||||||||||
External Net Revenues
|
$
|
337,699
|
$
|
342,059
|
-1
|
%
|
||||||
Operating Profit
|
35,763
|
37,743
|
-5
|
%
|
||||||||
Operating Margin
|
10.6
|
%
|
11.0
|
%
|
||||||||
|
||||||||||||
International Segment:
|
||||||||||||
External Net Revenues
|
305,475
|
289,813
|
5
|
%
|
||||||||
Operating Profit (Loss)
|
2,414
|
(4,505)
|
154
|
%
|
||||||||
Operating Margin
|
0.8
|
%
|
-1.6
|
%
|
||||||||
|
||||||||||||
Entertainment and Licensing Segment:
|
||||||||||||
External Net Revenues
|
34,874
|
30,774
|
13
|
%
|
||||||||
Operating Profit
|
5,982
|
5,285
|
13
|
%
|
||||||||
Operating Margin
|
17.2
|
%
|
17.2
|
%
|
||||||||
|
||||||||||||
International Segment Net Revenues by Major Geographic Region
|
||||||||||||
Europe
|
$
|
207,542
|
$
|
192,589
|
8
|
%
|
||||||
Latin America
|
53,284
|
45,713
|
17
|
%
|
||||||||
Asia Pacific
|
44,649
|
51,511
|
-13
|
%
|
||||||||
Total
|
$
|
305,475
|
$
|
289,813
|
||||||||
|
||||||||||||
Net Revenues by Product Category
|
||||||||||||
Boys
|
$
|
247,775
|
$
|
242,796
|
2
|
%
|
||||||
Games
|
220,526
|
230,915
|
-4
|
%
|
||||||||
Girls
|
138,700
|
114,774
|
21
|
%
|
||||||||
Preschool
|
72,452
|
75,209
|
-4
|
%
|
||||||||
Total Net Revenues
|
$
|
679,453
|
$
|
663,694
|
||||||||
|
||||||||||||
Reconciliation of EBITDA
|
||||||||||||
Net Earnings (Loss) Attributable to Hasbro, Inc.
|
$
|
32,087
|
$
|
(6,671
|
)
|
|||||||
Net Loss Attributable to Noncontrolling Interests
|
(573
|
)
|
-
|
|||||||||
Interest Expense
|
22,428
|
22,979
|
||||||||||
Income Taxes
|
(5,519
|
)
|
(9,822
|
)
|
||||||||
Depreciation
|
21,505
|
19,351
|
||||||||||
Amortization of Intangibles
|
13,402
|
11,416
|
||||||||||
EBITDA
|
$
|
83,330
|
$
|
37,253
|
HASBRO, INC.
|
||||||||||||||||
SUPPLEMENTAL FINANCIAL DATA
|
||||||||||||||||
RESTRUCTURING CHARGES, PENSION COSTS AND DISCRETE TAX BENEFITS
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
(Thousands of Dollars)
|
||||||||||||||||
2013 Operating Profit, Excluding Restructuring and Related Pension Costs
|
||||||||||||||||
Quarter Ended March 31, 2013
|
Q1 2013, As Reported
|
Less Restructuring and Related Pension Costs
|
Q1 2013, Excluding Restructuring and Related Pension Costs
|
% 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
|
6.6
|
%
|
||||||||||
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
|
%
|
|||||||
|
Net Earnings and Earnings per Share Excluding Restructuring Charges, Pension Costs and Discrete Tax Benefits
|
||||||||||||||||
|
||||||||||||||||
|
Quarter Ended
|
|||||||||||||||
|
March 30, 2014
|
Diluted Per Share Amount
|
March 31, 2013
|
Diluted Per Share Amount
|
||||||||||||
Net Earnings (Loss) Attributable to Hasbro, Inc., as Reported
|
$
|
32,087
|
$
|
0.24
|
$
|
(6,671
|
)
|
$
|
(0.05
|
)
|
||||||
Restructuring Charges and Related Pension Costs, Net of Tax
|
-
|
-
|
18,777
|
0.14
|
||||||||||||
Discrete Tax Benefits, Net
|
(13,480
|
)
|
(0.10
|
)
|
(5,467
|
)
|
(0.04
|
)
|
||||||||
Net Earnings, as Adjusted
|
$ |
18,607
|
$ |
0.14
|
$ |
6,639
|
$ |
0.05
|
||||||||
|
2013 Restructuring and Pension Charges - by Segment
|
||||
|
Quarter Ended
|
|||
|
March 31, 2013
|
|||
U.S. and Canada Segment
|
$
|
-
|
||
International Segment
|
-
|
|||
Entertainment and Licensing Segment
|
1,729
|
|||
Global Operations Segment
|
-
|
|||
Corporate and Eliminations
|
27,197
|
|||
Total Restructuring Charges
|
$
|
28,926
|