-----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, KoKVFUbcX3um+/18/oJlxjANhToOUvWLkgBM071pVbEQ/Y64FJIhim7psf7DTdWJ hnslO7Qtzf3H5JYQbpuv7g== 0000046080-98-000002.txt : 19980211 0000046080-98-000002.hdr.sgml : 19980211 ACCESSION NUMBER: 0000046080-98-000002 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980205 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19980205 SROS: AMEX FILER: COMPANY DATA: COMPANY CONFORMED NAME: HASBRO INC CENTRAL INDEX KEY: 0000046080 STANDARD INDUSTRIAL CLASSIFICATION: 3944 IRS NUMBER: 050155090 STATE OF INCORPORATION: RI FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-06682 FILM NUMBER: 98522225 BUSINESS ADDRESS: STREET 1: 1027 NEWPORT AVE STREET 2: P O BOX 1059 CITY: PAWTUCKET STATE: RI ZIP: 02861 BUSINESS PHONE: 4014318697 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 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 5, 1998 ------------------------- 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 5, 1998 Press Release of the Registrant attached hereto as EXHIBIT 99 is incorporated herein by reference. Item 7(c) Exhibits 99 Press Release, dated February 5, 1998, 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 5, 1998 By: /s/ John T. O'Neill ------------------- John T. O'Neill Executive Vice President and Chief Financial Officer (Duly Authorized Officer and Principal Financial Officer) HASBRO, INC. Current Report on Form 8-K Dated February 5, 1998 Exhibit Index Exhibit No. Exhibits - - ------- -------- 99 Press Release dated February 5, 1998 EX-99 2 EXHIBIT 99 EXHIBIT 99 For Immediate Release Contact: John T. O'Neill February 5, 1998 401-727-5600 Renita E. O'Connell 401-727-5401 HASBRO REPORTS 15% INCREASE IN 1997 EARNINGS PER SHARE COMPANY ACHIEVES RECORD RESULTS BEFORE RESTRUCTURING CHARGES Pawtucket, RI (February 5, 1998) -- Hasbro, Inc. (HAS:ASE) today reported record fourth quarter and full-year revenues and earnings for 1997, prior to taking $140.0 million of one-time, pre-tax charges ($92.4 million after-tax) related to the previously announced Global Integration and Profit Enhancement Program. Net earnings increased 14% to $227.4 million and earnings per share increased 15% to $1.77, excluding the one-time charges. The $140.0 million of charges relate to continued consolidation of manufacturing operations, streamlining of marketing and sales, and the further leveraging of overheads, and are shown on the Restructuring Charge line ($125.0 million) and included in Cost of Sales ($15.0 million). "I am pleased to report that 1997 was a record year for Hasbro," said Alan G. Hassenfeld, Chairman and Chief Executive Officer, "as we achieved our best- ever fourth quarter and full-year revenues, earnings and earnings per share excluding the one-time charges. We are pleased to deliver a second year of 15% growth in earnings per share for our shareholders, consistent with our long-term target." The Company is providing Basic and Diluted earnings per share in compliance with Statement of Financial Accounting Standards No. 128, Earnings per Share, and has restated all prior period amounts. For the full year, net revenues in local currencies increased 9%, partly offset by the $91 million, or 3%, adverse impact of the stronger U.S. dollar. Reported revenues were $3.2 billion, up 6% from $3.0 billion in 1996. Excluding the one-time charges, net earnings for the year increased 14% to $227.4 million from $199.9 million in 1996. Basic and diluted earnings per share each rose 15% from 1996, increasing to $1.77 from $1.54 and to $1.69 from $1.47, respectively. After the one-time charges, 1997 net earnings were $135.0 million, and basic and diluted earnings per share were $1.05 and $1.02, respectively. In the fourth quarter, net revenues in local currencies increased 6%, partly offset by the $45 million, or 4%, adverse impact of the continued strength of the U.S. dollar, resulting in reported net revenues of $1.1 billion. Excluding the one-time charges, net earnings for the fourth quarter increased 12% to $111.3 million from $99.1 million reported a year ago. Basic earnings per share increased 10% to $0.85 from $0.77 in 1996, while diluted earnings per share increased 14% to $0.82 from $0.72. After the one-time charges, fourth quarter 1997 net earnings were $18.9 million, and basic and diluted earnings per share each were $0.14. "Our revenue growth throughout 1997 was primarily driven by our United States operations, including our growing CD-ROM business, where sales more than doubled over 1996," said Mr. Hassenfeld. "Other contributors were products associated with our three major entertainment properties, Star Wars(R), Jurassic Park(TM) and Batman(TM) as well as the recently acquired OddzOn toy and interactive candy items. Internationally, growth continued to be led by Canada, Mexico and Latin America but was moderated by the effects of the stronger U.S. dollar, particularly on our European operations." "Our earnings growth for the fourth quarter and the year, prior to the one- time charges, followed the revenue pattern and was largely attributable to North American operations," continued Hassenfeld. "We also added value for our shareholders by investing $135 million during 1997 to buy back 4.8 million shares. In December, our Board of Directors authorized a $500 million stock buyback program. We expect to utilize this authorization over the next two to three years." "As we enter 1998, we will further leverage our costs and continue to invest in our stock and our future," added Hassenfeld. "Our library of brands is unmatched. We look forward to the debut of Teletubbies on PBS in April, and the summer movie release of DreamWorks' `Small Soldiers'. Also, this year we will introduce more than 100 new Star Wars items that will help set the stage for 1999, when the much-anticipated first Star Wars prequel will debut. Hasbro is on track and stronger than ever." # # # (Tables Attached) HASBRO, INC. CONSOLIDATED STATEMENTS OF EARNINGS (Thousands of Dollars and Shares Except Per Share Data) Quarter Ended Year Ended -------------------- -------------------- Dec. 28, Dec. 29, Dec. 28, Dec. 29, 1997 1996 1997 1996 --------- --------- --------- --------- Net Revenues $1,133,356 $1,106,928 $3,188,559 $3,002,370 Cost of Sales 467,743 484,669 1,359,058 1,328,897 --------- --------- --------- --------- Gross Profit 665,613 622,259 1,829,501 1,673,473 Amortization 20,800 10,319 53,767 40,064 Royalties, Research and Development 132,573 114,787 386,912 319,494 Advertising 157,156 165,110 411,574 418,003 Selling, Distribution and Administration 183,855 166,430 617,140 563,645 Restructuring Charge 125,000 - 125,000 - --------- ------- --------- --------- Operating Profit 46,229 165,613 235,108 332,267 Interest Expense 8,366 11,787 27,486 31,465 Other (Income) Expense, Net 9,209 119 3,097 (6,091) --------- --------- --------- --------- Earnings Before Income Taxes 28,654 153,707 204,525 306,893 Income Taxes 9,743 54,615 69,539 106,981 --------- --------- --------- --------- Net Earnings $ 18,911 99,092 $ 134,986 199,912 ========= ========= ========= ========= Per Common Share Net Earnings Basic $ .14 $ .77 $ 1.05 $ 1.54 ========= ========= ========= ========= Diluted $ .14 $ .72 $ 1.02 $ 1.47 ========= ========= ========= ========= Cash Dividends Declared $ .08 $ .07 $ .32 $ .27 ========= ========= ========= ========= Weighted Average Number of Shares Basic 131,537 129,205 128,726 130,041 ========= ========= ========= ========= Diluted 136,857 139,221 137,569 139,522 ========= ========= ========= ========= HASBRO, INC. CONSOLIDATED CONDENSED BALANCE SHEETS (Thousands of Dollars) Dec. 28, Dec. 29, 1997 1996 --------- --------- Assets Cash and Temporary Investments $ 361,785 $ 218,971 Accounts Receivable, Net 783,008 807,149 Inventories 242,702 273,247 Other 186,379 187,222 --------- --------- Total Current Assets 1,573,874 1,486,589 Property, Plant and Equipment, Net 280,603 313,545 Other Assets 1,045,240 901,375 --------- --------- Total Assets $2,899,717 $2,701,509 ========= ========= Liabilities and Shareholders' Equity Short-term Borrowings $ 122,024 $ 120,736 Payables and Accrued Liablities 881,522 710,082 --------- --------- Total Current Liabilities 1,003,546 830,818 Long-term Debt - 149,382 Deferred Liabilities 58,054 69,263 --------- --------- Total Liabilities 1,061,600 1,049,463 Total Shareholders' Equity 1,838,117 1,652,046 --------- --------- Total Liabilities and Shareholders' Equity $2,899,717 $2,701,509 ========= ========= -----END PRIVACY-ENHANCED MESSAGE-----