-----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, LU1yEkKB2meYkn+Wy/mOkTpaeGgKBkS71qLOGauj2/6M3IEBOyqZtvyHL1FMVR/U J+sTsipP37v9E8uWBBy8ew== 0000046080-98-000016.txt : 19981019 0000046080-98-000016.hdr.sgml : 19981019 ACCESSION NUMBER: 0000046080-98-000016 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19981015 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19981015 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: 98726163 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): October 15, 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 October 15, 1998 Press Release of the Registrant attached hereto as EXHIBIT 99 is incorporated herein by reference. Item 7(c) Exhibits 99 Press Release, dated October 15, 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: October 15, 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 October 15, 1998 Exhibit Index Exhibit No. Exhibits - - ------- -------- 99 Press Release dated October 15, 1998 EX-99 2 EXHIBIT 99 EXHIBIT 99 For Immediate Release Contact: John T. O'Neill October 15, 1998 401-727-5600 Renita E. O'Connell 401-727-5401 HASBRO REPORTS RECORD THIRD QUARTER REVENUES QUARTERLY RESULTS IN LINE WITH PRE-ANNOUNCEMENT Pawtucket, RI (October 15, 1998) - Hasbro, Inc. (ASE:HAS) today reported third quarter results consistent with its September 28, 1998 announcement regarding the impact of ongoing and recently accelerated changes in inventory flow policies at Toys `R Us. "We are very pleased to report record third quarter revenues despite lower sales to this key customer," said Alan G. Hassenfeld, Chairman and Chief Executive Officer. Reported net revenues reached $945.5 million, or approximately 3% above the $915.5 million reported last year, in part due to the acquisition of Tiger Electronics in April and increased sales at Hasbro Interactive. As previously announced, the Company took a one-time pre-tax charge to write-off acquired in-process research and development of MicroProse, Inc., which was acquired for approximately $70 million in September 1998. Prior to this $20.0 million pre-tax charge ($13.6 million after tax), net earnings and diluted earnings per share were $74.9 million and $0.55, respectively, compared to $77.4 million and $0.57, respectively, a year ago. Including the charge, net earnings were $61.3 million and diluted earnings per share were $0.45. "In addition to revenue growth this quarter, we are also very pleased about two acquisitions that will fuel future growth in revenue and earnings well into the next century. The acquisition of MicroProse significantly enhances Hasbro Interactive in three key strategic growth areas going forward: brands and content, R&D assets, and European distribution," Hassenfeld added. "In addition, the pending acquisition of Galoob Toys, with its highly successful MICRO MACHINES and STAR WARS small-scale figures and vehicles, will be a tremendous addition to our rich brand portfolio," Hassenfeld continued. For the first nine months of 1998, revenues were $2.0 billion compared to $2.1 billion in 1997. Excluding the one-time charge, net earnings and diluted earnings per share were $88.2 million and $0.64, respectively, compared to $116.1 million and $0.87 a year ago. Including the charge, net earnings were $74.6 million and diluted earnings per share were $0.54. During the third quarter, the Company invested $65 million to repurchase 1.8 million shares. Under the $500 million share repurchase authorization announced on December 9, 1997, the Company has invested approximately $185 million to repurchase 5.1 million shares. "Looking ahead to the fourth quarter, we continue building sales and earnings momentum in several product lines," Hassenfeld noted. "These include Tiger Electronics' FURBY - an electronic interactive pet being introduced nationwide to great acclaim; TELETUBBIES; new releases from Hasbro Interactive and MicroProse - including our CD-ROM version of the ATARI game classic, CENTIPEDE, and our first Nintendo 64 game title, GLOVER; as well as a range of POKEMON offerings. Building excitement for 1999, we are shipping the first new product from STAR WARS Episode One - a MACE WINDU exclusive mail-in figure offer and a STAP vehicle with BATTLE DROID figure. In 1999, we look forward to a tremendous product line-up, led by STAR WARS, with Hasbro and Galoob teaming up with the Power of the Force. We are also on track to realize planned incremental cost savings from the Global Integration and Profit Enhancement Program next year, enabling us to continue to add value for our shareholders," Hassenfeld concluded. Certain statements contained in this release contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. 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 timely manufacture and shipping by the Company of new and continuing products and their acceptance by customers and consumers in a competitive product environment; economic conditions and currency fluctuations in the various markets in which the Company operates throughout the world; the inventory policies of retailers, including the continuing trend of increased 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; third party actions or approvals that could delay, modify or increase the cost of implementation of, the Company's Global Integration and Profit Enhancement program; 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. # # # (Tables Attached) HASBRO, INC. CONSOLIDATED STATEMENTS OF EARNINGS (Thousands of Dollars and Shares Except Per Share Data) Quarter Ended Nine Months Ended ------------------ -------------------- Sep. 27, Sep. 28, Sep. 27, Sep. 28, 1998 1997 1998 1997 -------- -------- --------- --------- Net Revenues $945,498 $915,533 $2,000,375 $2,055,203 Cost of Sales 402,369 403,027 853,776 891,315 ------- ------- --------- --------- Gross Profit 543,129 512,506 1,146,599 1,163,888 Amortization 19,275 11,741 49,298 32,967 Royalties, Research and Development 113,755 102,583 263,220 254,339 Advertising 128,053 116,208 257,023 254,418 Selling, Distribution and Administration 162,705 156,215 439,433 433,285 Acquired Research and Development 20,000 - 20,000 - ------- ------- --------- --------- Operating Profit 99,341 125,759 117,625 188,879 Interest Expense 11,308 9,197 20,036 19,120 Other (Income) Expense, Net (1,568) 1,121 (12,082) (6,112) ------- ------- --------- --------- Earnings Before Income Taxes 89,601 115,441 109,671 175,871 Income Taxes 28,271 38,041 35,095 59,796 ------- ------- --------- --------- Net Earnings $ 61,330 $ 77,400 $ 74,576 $ 116,075 ======= ======= ========= ========= Per Common Share Net Earnings Basic $ .47 $ .61 $ .56 $ .91 ======= ======= ========= ========= Diluted $ .45 $ .57 $ .54 $ .87 ======= ======= ========= ========= Cash Dividends Declared $ .08 $ .08 $ .24 $ .24 ======= ======= ========= ========= Weighted Average Number of shares Basic 131,368 126,922 132,346 127,789 ======= ======= ========= ========= Diluted 136,375 137,103 137,604 137,806 ======= ======= ========= ======== HASBRO, INC. CONSOLIDATED CONDENSED BALANCE SHEETS (Thousands of Dollars) Sep. 27, Sep. 28, 1998 1997 --------- --------- Assets Cash and Temporary Investments $ 176,486 $ 80,030 Accounts Receivable, Net 1,030,751 1,153,910 Inventories 383,809 347,779 Other 336,261 175,534 --------- --------- Total Current Assets 1,927,307 1,757,253 Property, Plant and Equipment, Net 287,872 279,916 Other Assets 1,461,125 986,782 --------- --------- Total Assets $3,676,304 $3,023,951 ========= ========= Liabilities and Shareholders' Equity Short-term Borrowings $ 507,596 $ 462,894 Payables and Accrued Liabilities 1,029,906 708,278 --------- --------- Total Current Liabilities 1,537,502 1,171,172 Long-term Debt 300,000 148,751 Deferred Liabilities 80,010 68,924 --------- --------- Total Liabilities 1,917,512 1,388,847 Total Shareholders' Equity 1,758,792 1,635,104 --------- --------- Total Liabilities and Shareholders' Equity $3,676,304 $3,023,951 ========= ========= -----END PRIVACY-ENHANCED MESSAGE-----