-----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, DcQt9qxH4aju0cxjVyJOCRb1V94rulkEkrZOZGopL491YS7OHhVOpOrVSCrRJwYM uN+aibEYkSgtqQO4ldsBSg== 0000046080-99-000016.txt : 19991019 0000046080-99-000016.hdr.sgml : 19991019 ACCESSION NUMBER: 0000046080-99-000016 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19991014 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19991014 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: 1227 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-06682 FILM NUMBER: 99728033 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 14, 1999 ------------------------- 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 14, 1999 Press Release of the Registrant attached hereto as EXHIBIT 99 is incorporated herein by reference. Item 7(c) Exhibits 99 Press Release, dated October 14, 1999, 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 14, 1999 By: /s/ Alfred J. Verrecchia ------------------------ Alfred J. Verrecchia Executive Vice President, Global Operations and Chief Financial Officer (Duly Authorized Officer and Principal Financial Officer) HASBRO, INC. Current Report on Form 8-K Dated October 14, 1999 Exhibit Index Exhibit No. Exhibits - - ------- -------- 99 Press Release dated October 14, 1999 EX-99 2 EXHIBIT 99 EXHIBIT 99 For Immediate Release Contact: Alfred J. Verrecchia October 14, 1999 401-727-5100 Renita E. O'Connell 401-727-5401 HASBRO REPORTS RECORD THIRD QUARTER RESULTS ON TRACK TO DELIVER EPS GROWTH OF APPROXIMATELY 30% THIS YEAR Pawtucket, RI (October 14, 1999) -- Hasbro, Inc. (NYSE:HAS) today reported record third quarter revenues, earnings and earnings per share. The Company also reaffirmed it is on track to deliver approximately 30% growth in recurring earnings per share in 1999. Worldwide net revenues increased approximately 16% to $1.098 billion, compared to $945.5 million a year ago. Revenue growth was driven primarily by significantly higher shipments of STAR WARS, FURBY and computer-based games, plus POKEMON toys and games. Net earnings and diluted earnings per share increased approximately 14% and 16%, respectively, to $85.2 million and $0.43, respectively. This compares to $74.9 million and $0.37, respectively, last year prior to a $20.0 million pre-tax charge ($13.6 million after tax) to write-off acquired in-process research and development of MicroProse, Inc. Net earnings and diluted earnings per share in 1999 increased 39% and 43%, respectively, over last year's reported results of $61.3 million and $0.30, respectively, including the one-time charge. The Company also reported record third quarter Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) of $200.3 million, up 22% from the year-ago EBITDA of $164.2 million. For the first nine months of 1999, worldwide net revenues increased approximately 32% to a record $2.641 billion, compared to $2.000 billion a year ago. Net earnings and diluted earnings per share increased approximately 49% to $131.3 million and $0.64, respectively, compared to $88.2 million and $0.43 last year prior to the one-time charge. Net earnings and diluted earnings per share increased over 76% compared to $74.6 million and $0.36, respectively, reported last year including the one-time charge. "We are very pleased to report another record quarter in all respects," said Alan G. Hassenfeld, Chairman and Chief Executive Officer. "Our business is strong overall, and we achieved double-digit revenue growth in the U.S. and internationally. Our global STAR WARS product line is tracking to our high expectations for this year. The retail sell-through rate of STAR WARS action figures, the cornerstone of our line, remains strong and we have a major advertising campaign underway to drive overall sales in the all- important holiday season," Hassenfeld explained. "Our interactive FURBY continues to be a smash hit worldwide," Hassenfeld continued. "Hasbro's interactive games again achieved significant double-digit revenue increases with popular titles like ROLLER COASTER TYCOON, MECHWARRIOR 3 and FROGGER. Plus, our expanded POKEMON offering continues to be highly successful." "We continue to enhance shareholder value with acquisitions like Wizards of the Coast, which closed on September 30 and will enable us to significantly expand in the fast-growing games arena," Hassenfeld added. "This acquisition, plus our acquisition of Europress, a veteran European publisher of educational and lifestyle software, brings us many exciting growth opportunities as we transition Hasbro to a company which is much more driven by technology and game play. While acquisitions are a priority use of our cash flow, we believe in our future and continue to repurchase our stock. During the third quarter, we invested almost $16 million to repurchase more than 0.6 million shares. This brings our total investment, under the $500 million repurchase authorization of December 1997, to almost $400 million to repurchase over 15 million shares." "We look forward to a strong holiday season, with many of the must-have toys and games. Our expanded POKEMON offerings - including the electronic interactive plush "I CHOOSE YOU PIKACHU", POKEMON MONOPOLY, the POKEDEX organizer, and new trading card games - are shipping now, and POKEMON is being introduced internationally. Plus, the U.S. release of the first animated POKEMON feature film on November 12 will extend the excitement of POKEMANIA into next year. In STAR WARS, we are releasing new twelve-inch electronic action figures and other terrific EPISODE I product worldwide. A limited edition Halloween FURBY is at stores now, and a Millennium FURBY will ring in the new century. Hasbro Interactive plans several new titles, including PONG, CATDOG, TONKA CONSTRUCTION 2, Q*BERT and a TRIVIAL PURSUIT MILLENNIUM edition, plus the first titles from its new Hasbro Sports unit: TRIVIAL PURSUIT NASCAR CD-ROM and two em@il games - NFL FOOTBALL and NASCAR. Looking ahead to next year, with POKEMON, our soon to be announced online games initiative, plus other wonderful new product including NASCAR and FORMULA ONE, BEAST MACHINES, TITAN AE, DRAGON TALES and TWEENIES, we have even more visibility," Hassenfeld concluded. Hasbro is a worldwide leader in the design, manufacture and marketing of toys, games, interactive software, puzzles and infant products. Both internationally and in the U.S., its PLAYSKOOL, KENNER, TONKA, ODDZON, SUPER SOAKER, MILTON BRADLEY, PARKER BROTHERS, TIGER, HASBRO INTERACTIVE, GALOOB and WIZARDS OF THE COAST products provide children and families with the highest quality and most recognizable toys and games in the world. 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, currency fluctuations and government regulation and other actions in the various markets in which the Company operates throughout the world; the inventory policies of retailers, including the continuing trend of 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; the Company's incurring higher than expected costs to achieve, or not achieving, "Year 2000" readiness with respect to the Company's systems, or the Company's customers, vendors or service providers failing to achieve such readiness; and the risk that anticipated benefits of acquisitions or the Company's Global Integration and Profit Enhancement program 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. EBITDA (earnings before interest, taxes, depreciation and amortization) represents operating profit plus acquired in-process research and development, depreciation and all amortization. EBITDA is not adjusted for all noncash expenses or for working capital, capital expenditures or other investment requirements and, accordingly, is not necessarily indicative of amounts that may be available for discretionary uses. Thus, EBITDA should not be considered in isolation or as a substitute for net earnings or cash provided by operating activities, each prepared in accordance with generally accepted accounting principles, when measuring Hasbro's profitability or liquidity as more fully discussed in the Company's financial statements and securities filings. # # # (Tables Attached) HASBRO, INC. CONSOLIDATED STATEMENTS OF EARNINGS (Thousands of Dollars and Shares Except Per Share Data) Quarter Ended Nine Months Ended ------------------- -------------------- Sep. 26, Sep. 27, Sep. 26, Sep. 27, 1999 1998 1999 1998 --------- -------- --------- --------- Net Revenues $1,098,179 945,498 $2,641,151 2,000,375 Cost of Sales 444,013 402,369 1,045,556 853,776 --------- ------- --------- --------- Gross Profit 654,166 543,129 1,595,595 1,146,599 Amortization 31,130 19,275 88,974 49,298 Royalties, Research and Development 170,778 113,755 462,496 263,220 Advertising 117,567 128,053 299,925 257,023 Selling, Distribution and Administration 193,582 162,705 515,231 439,433 Acquired Research and Development - 20,000 - 20,000 --------- ------- --------- --------- Operating Profit 141,109 99,341 228,969 117,625 Interest Expense 19,190 11,308 44,788 20,036 Other (Income) Expense, Net (1,515) (1,568) (6,042) (12,082) --------- ------- --------- --------- Earnings Before Income Taxes 123,434 89,601 190,223 109,671 Income Taxes 38,264 28,271 58,969 35,095 --------- ------- --------- --------- Net Earnings $ 85,170 61,330 $ 131,254 74,576 ========= ======= ========= ========= Per Common Share Net Earnings Basic $ .44 .31 $ .67 .38 ========= ======= ========= ========= Diluted $ .43 .30 $ .64 .36 ========= ======= ========= ========= Cash Dividends Declared $ .06 .05 $ .18 .15 ========= ======= ========= ========= Weighted Average Number of shares Basic 194,612 197,503 195,280 198,519 ========= ======= ========= ========= Diluted 200,344 204,562 204,006 206,406 ========= ======= ========= ======== HASBRO, INC. CONSOLIDATED CONDENSED BALANCE SHEETS (Thousands of Dollars) Sep. 26, Sep. 27, 1999 1998 --------- --------- Assets Cash and Temporary Investments $ 108,627 $ 176,486 Accounts Receivable, Net 1,167,660 1,030,751 Inventories 438,662 383,809 Other 552,274 336,261 --------- --------- Total Current Assets 2,267,223 1,927,307 Property, Plant and Equipment, Net 303,667 287,872 Other Assets 1,622,379 1,461,125 --------- --------- Total Assets $4,193,269 $3,676,304 ========= ========= Liabilities and Shareholders' Equity Short-term Borrowings $ 889,405 $ 507,596 Payables and Accrued Liabilities 949,704 1,029,906 --------- --------- Total Current Liabilities 1,839,109 1,537,502 Long-term Debt 407,584 300,000 Deferred Liabilities 82,451 80,010 --------- --------- Total Liabilities 2,329,144 1,917,512 Total Shareholders' Equity 1,864,125 1,758,792 --------- --------- Total Liabilities and Shareholders' Equity $4,193,269 $3,676,304 ========= ========= -----END PRIVACY-ENHANCED MESSAGE-----