Hasbro, Inc.
HASBRO INC (Form: 8-K, Received: 10/23/2017 07:56:38)  

 

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

 

FORM 8-K

 

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): October 23, 2017

 

Hasbro, Inc.

(Exact name of registrant as specified in its charter)

Rhode Island

 

1-6682

 

05-0155090

(State or other jurisdiction

 

(Commission File Number)

 

(IRS Employer

of incorporation)

     

Identification No.)

         

1027 Newport Ave., Pawtucket, Rhode Island

     

02861

(Address of principal executive offices)

     

(Zip Code)

 

Registrant’s telephone number, including area code:   (401) 431-8697

______________________________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 

 

 

 


 

 

 

Item 2.02          Results of Operations and Financial Condition.

 

On October 23, 2017, Hasbro, Inc. ("Hasbro" or "we") announced our financial results for the fiscal quarter ended October 1, 2017, and certain other financial information. The press release, attached as Exhibit 99.1, includes a non-GAAP financial measure as defined under SEC rules, specifically EBITDA.  EBITDA represents net earnings attributable to Hasbro, Inc. excluding net loss attributable to noncontrolling interests, interest expense, income taxes, depreciation and amortization. As required by SEC rules, we have provided reconciliation on the attached schedule of this measure to the most directly comparable GAAP measure. Management believes that EBITDA is one of the appropriate measures for evaluating the operating performance of the Company because it reflects the resources available for strategic opportunities including, among others, to invest in the business, strengthen the balance sheet, and make strategic acquisitions.

 

This non-GAAP measure should be considered in addition to, not as a substitute for, or superior to, net earnings or other measures of financial performance prepared in accordance with GAAP as more fully discussed in the Company's financial statements and filings with the SEC. As used herein, "GAAP" refers to accounting principles generally accepted in the United States of America. 

 

The information furnished in Item 2.02, including the Exhibit attached hereto,  shall not be deemed "filed" for any purpose, and shall not be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, regardless of any general incorporation language in any such filing.

 

Item 9.01                            Financial Statements and Exhibits.

 

(d)  Exhibits

 

99.1        Hasbro, Inc. Press Release, dated October 23, 2017.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

 

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 hereunto duly authorized.

 

 

 

HASBRO, INC.

 

 

 

 

 

 

By:

<R> /s/ Deborah Thomas </R>

 

Name:

Deborah Thomas

 

Title:

Executive Vice President and Chief Financial Officer

(Duly Authorized Officer and Principal Financial Officer)

Date: October 23, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

 

 

 

 

 

EXHIBIT INDEX

Exhibit No.

 

Description

 

99.1

 

Hasbro, Inc. Press Release, dated October 23, 2017.

 

 

 


 

 

Exhibit 99.1 

 

 

For Immediate Release

 

Hasbro Reports Revenue, Net Earnings and Earnings Per Share

Growth for Third Quarter 2017

·          Third quarter 2017 revenues increased 7% to $1.79 billion, including 7% revenue growth in the U.S. and Canada segment; 7% in the International segment, including a favorable $27.9 million in foreign exchange; and 4% in the Entertainment and Licensing segment; 

·          Revenue growth in Franchise Brands, Hasbro Gaming and Emerging Brands;

·          Operating profit essentially flat at $360.9 million, or 20.1% of net revenues;

·          Net earnings increased 3% to $265.6 million, or $2.09 per diluted share; Reported net earnings include a $0.04 per diluted share benefit versus third quarter 2016 from the adoption of FASB ASU No. 2016-09;

·          Company returned $164.3 million to shareholders during the quarter: $71.4 million in dividends and $92.9 million in share repurchase;

·          Quarter-end cash and cash equivalents of $1.2 billion.

 

Pawtucket, R.I., October 23, 2017 -- Hasbro, Inc. (NASDAQ: HAS) today reported financial results for the third quarter 2017. Net revenues for the third quarter 2017 increased 7% to $1.79 billion versus $1.68 billion in 2016. Third quarter 2017 revenues include a favorable $29.6 million impact from foreign exchange. 

 

Net earnings for the third quarter 2017 increased 3% to $265.6 million, or $2.09 per diluted share, compared to $257.8 million, or $2.03 per diluted share, in 2016. Reported net earnings include a $0.04 per diluted share benefit versus third quarter 2016 from the adoption of FASB ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting.  

  

“The global Hasbro team delivered another good quarter. Our Brand Blueprint strategy is successfully driving the business despite a challenging economic environment in the U.K. and Brazil, as well as a short-term retailer disruption,” said Brian Goldner, Hasbro’s chairman and chief executive officer.  “As a result of the Toys“R”Us bankruptcy filing in the U.S. and Canada, there was a negative impact on our quarterly revenues and operating profit.  However, our multi-platform content strategy, combined with an industry leading investment in innovation and an omni-channel commercial approach, is driving strong consumer takeaway heading into the holiday season as consumers engage with Hasbro brands across a multitude of experiences.”

 

 


 

“The quarter presented several obstacles, but the team delivered with higher revenue and earnings, as well as executing nearly $93 million of share repurchases,” said Deborah Thomas, Hasbro’s chief financial officer.  “We are well positioned for the holiday, including good quality inventory at Hasbro and at retail, backed by strong consumer momentum.  We continue to work closely with Toys“R”Us as we head into the holiday period. Given our new view to the holiday based on Toys“R”Us and the economic outlook in certain markets, our updated expectation is fourth quarter revenues will increase in a range of 4% to 7% versus the fourth quarter 2016.”

 

Third Quarter 2017 Major Segment Performance

 

 

 

Net Revenues ($ Millions)

Operating Profit ($ Millions)

Q3 2017

Q3 2016

% Change

Q3 2017

Q3 2016

% Change

U.S. and Canada

$993.8

$932.8

+7%

$217.3

$228.0

-5%

International

$739.2

$690.7

+7%

$132.0

$133.1

-1%

Entertainment and Licensing

$58.4

$56.1

+4%

$16.9

$14.1

+20%

 

Third quarter 2017 U.S. and Canada segment net revenues increased 7% to $993.8 million compared to $932.8 million in 2016. The segment was negatively impacted by the Toys“R”US bankruptcy in the U.S. and Canada. In combination with a shift in product mix, this contributed to the 5% decline in the U.S. and Canada segment quarterly operating profit to $217.3 million, or 21.9% of net revenues, compared to $228.0 million, or 24.4% of net revenues, in 2016 .   

 

International segment net revenues increased 7% to $739.2 million compared to $690.7 million in 2016. Third quarter 2017 International segment revenues include a favorable $27.9 million impact of foreign exchange. On a regional basis, Europe revenues increased 3%, Latin America increased 13% and Asia Pacific increased 17%. Emerging markets revenues increased 8% in the quarter. International segment operating profit decreased $1.1 million to $132.0 million, or 17.9% of net revenues, compared to $133.1 million, or 19.3% of net revenues, in 2016. 

 

Entertainment and Licensing segment net revenues grew 4% to $58.4 million compared to $56.1 million in 2016, behind higher consumer products and entertainment revenues. The Entertainment and Licensing segment operating profit increased 20%, to $16.9 million, or 28.9% of net revenues, compared to $14.1 million, or 25.1% of net revenues, in 2016.

 

 

 

 

 

 

 

 

 

 


 

Third Quarter 2017 Brand Portfolio Performance 

 

 

Net Revenues ($ Millions)

Q3 2017

Q3 2016

% Change

Nine Months 2017

Nine Months 2016

% Change

Franchise Brands

$827.3

$773.4

+7%

$1,803.8

$1,642.1

+10%

Partner Brands

$485.7

$493.7

-2%

$928.7

$979.1

-5%

Hasbro Gaming*

$280.1

$229.9

+22%

$549.7

$456.5

+20%

Emerging Brands

$198.4

$182.8

+9%

$331.4

$312.3

+6%

 

*Hasbro’s total gaming category, including all gaming revenue, most notably MAGIC: THE GATHERING and MONOPOLY, which are included in Franchise Brands in the table above, totaled $424.8 million for the third quarter 2017, up 4%, versus $409.5 million in the third quarter 2016 and up 10% to $951.4 million for the nine months 2017 versus $868.4 million for the nine months 2016.  Hasbro believes its gaming portfolio is a competitive differentiator and views it in its entirety.

 

Third quarter 2017 Franchise Brand revenues increased 7% to $827.3 million driven by revenue growth in NERF, TRANSFORMERS, MY LITTLE PONY and MONOPOLY. Franchise Brand revenue grew in all three major operating segments.

   

Partner Brand revenues decreased 2% to $485.7 million. BEYBLADE, STAR WARS, DISNEY DESCENDANTS and SESAME STREET posted revenue gains in the quarter. This was more than offset by declines in certain brands, including YO-KAI WATCH as well as DREAMWORKS’ TROLLS which was down versus last year’s launch of movie product. Partner Brand revenues increased in the U.S. and Canada segment and declined in the International segment.

 

Hasbro Gaming revenues grew 22% to $280.1 million driven by Hasbro’s diverse gaming portfolio, including face-to-face and digital gaming. New social games drove significant growth, including SPEAK OUT and FANTASTIC GYMNASTICS along with revenue growth in several other games brands. Hasbro Gaming revenue grew in the U.S. and Canada and International segments. Hasbro’s total gaming category grew 4% to $424.8 million, including revenue growth from MONOPOLY and an expected decline in MAGIC: THE GATHERING. 

 

Emerging Brands revenue increased 9% to $198.3 million, driven primarily by growth in BABY ALIVE and FURREAL FRIENDS. Emerging Brand revenue grew in the U.S. and Canada and Entertainment and Licensing segments. 

 

Dividend and Share Repurchase

 

The Company paid $71.4 million in cash dividends to shareholders during the third quarter 2017. The next quarterly cash dividend payment of $0.57 per common share is scheduled for November 15, 2017 to shareholders of record at the close of business on November 1, 2017. 

 

During the third quarter, Hasbro repurchased 947,300 shares of common stock at a total cost of $92.9 million and an average price of $98.06 per share. Hasbro


 

repurchased $111.5 million worth of common stock during the first three quarters of 2017. At quarter-end, $216.5 million remained available in the current share repurchase authorization.  

 

Conference Call Webcast

 

Hasbro will webcast its third quarter 2017 earnings conference call at 8:30 a.m. Eastern Time today.  To listen to the live webcast and access the accompanying presentation slides, please go to http://investor.hasbro.com.  The replay of the call will be available on Hasbro’s web site approximately 2 hours following completion of the call. 

 

About Hasbro : Hasbro (NASDAQ: HAS) is a global play and entertainment company committed to  Creating the World's Best Play Experiences.  From toys and games to television, movies, digital gaming and consumer products, Hasbro offers a variety of ways for audiences to experience its iconic brands, including NERF, MY LITTLE PONY, TRANSFORMERS, PLAY-DOH, MONOPOLY, LITTLEST PET SHOP and MAGIC: THE GATHERING. The Company's Hasbro Studios and its film label, Allspark Pictures, are building its brands globally through great storytelling and content on all screens. Through its commitment to corporate social responsibility and philanthropy, Hasbro is helping to make the world a better place for children and their families. Learn more at www.hasbro.com, and follow us on Twitter (@Hasbro & @HasbroNews) and Instagram (@Hasbro).

© 2017 Hasbro, Inc. All Rights Reserved.

 

Certain statements in this release contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include expectations concerning the Company’s potential performance in the future and the Company’s ability to achieve its other financial and business goals and may be identified by the use of forward-looking words or phrases. The Company's actual actions or results may differ materially from those expected or anticipated in the forward-looking statements due to both known and unknown risks and uncertainties. Specific factors that might cause such a difference include, but are not limited to: (i) the Company's ability to design, develop, produce, manufacture, source and ship products on a timely and cost-effective basis, as well as interest in and purchase of those products by retail customers and consumers in quantities and at prices that will be sufficient to profitably recover the Company’s costs; (ii) downturns in economic conditions affecting the Company’s markets which can negatively impact the Company’s retail customers and consumers, and which can result in lower employment levels, lower consumer disposable income and spending, including lower spending on purchases of the Company’s products; (iii) other factors which can lower discretionary consumer spending, such as higher costs for fuel and food, drops in the value of homes or other consumer assets, and high levels of consumer debt; (iv) potential difficulties or delays the Company may experience in implementing cost savings and efficiency enhancing initiatives; (v) other economic and public health conditions or regulatory changes in the markets in which the Company and its customers and suppliers operate which could create delays or increase the Company’s costs, such as higher commodity prices, labor costs or transportation costs, or outbreaks of disease; (vi) currency fluctuations, including movements in foreign exchange rates, which can lower the Company’s net revenues and earnings, and significantly impact the Company’s costs; (vii) the concentration of the Company's customers, potentially increasing the negative impact to the Company of difficulties experienced by any of

 


 

the Company’s customers or changes in their purchasing or selling patterns; (viii) consumer interest in and acceptance of the Discovery Family Channel, and programming created by Hasbro Studios, and other factors impacting the financial performance of the network and Hasbro Studios; (ix) the inventory policies of the Company’s retail customers, including retailers’ potential decisions to lower their inventories, even if it results in lost sales, as well as the concentration of the Company's revenues in the second half and fourth quarter of the year, which coupled with reliance by retailers on quick response inventory management techniques increases the risk of underproduction of popular items, overproduction of less popular items and failure to achieve compressed shipping schedules; (x) delays, increased costs or difficulties associated with any of our or our partners’ planned digital applications or media initiatives; (xi) work disruptions, which may impact the Company's ability to manufacture or deliver product in a timely and cost-effective manner; (xii) the bankruptcy or other lack of success of one of the Company's significant retailers which could negatively impact the Company's revenues or bad debt exposure; (xiii) the impact of competition on revenues, margins and other aspects of the Company's business, including the ability to offer Company products which consumers choose to buy instead of competitive products, the ability to secure, maintain and renew popular licenses and the ability to attract and retain talented employees; (xiv) concentration of manufacturing for many of the Company’s products in the People’s Republic of China and the associated impact to the Company of social, economic or public health conditions and other factors affecting China, the movement of products into and out of China, the cost of producing products in China and exporting them to other countries; (xv) the risk of product recalls or product liability suits and costs associated with product safety regulations; (xvi) the impact of other market conditions, third party actions or approvals and competition which could reduce demand for the Company’s products or delay or increase the cost of implementation of the Company's programs or alter the Company's actions and reduce actual results; (xvii) the impact of litigation or arbitration decisions or settlement actions; and (xviii) other risks and uncertainties as may be detailed from time to time in the Company's public announcements and Securities and Exchange Commission (“SEC”) filings. 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.

This press release includes a non-GAAP financial measure as defined under SEC rules, specifically EBITDA.  EBITDA represents net earnings attributable to Hasbro, Inc. excluding net loss attributable to noncontrolling interests, interest expense, income taxes, depreciation and amortization. As required by SEC rules, we have provided reconciliation on the attached schedule of this measure to the most directly comparable GAAP measure. Management believes that EBITDA is one of the appropriate measures for evaluating the operating performance of the Company because it reflects the resources available for strategic opportunities including, among others, to invest in the business, strengthen the balance sheet, and make strategic acquisitions. This non-GAAP measure should be considered in addition to, not as a substitute for, or superior to, net earnings or other measures of financial performance prepared in accordance with GAAP as more fully discussed in the Company's financial statements and filings with the SEC. As used herein, "GAAP" refers to accounting principles generally accepted in the United States of America. 

 

HAS-E

 

Investor Contact:  Debbie Hancock | Hasbro, Inc. | (401) 727-5401 | debbie.hancock@hasbro.com

Press Contact: Julie Duffy | Hasbro, Inc. | (401) 727-5931 | julie.duffy@hasbro.com

 

# # #

 

 


 

(Tables Attached)

 

  

 


 

HASBRO, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(Thousands of Dollars)

 

 

 

 

 

Oct. 1, 2017

 

Sept. 25, 2016

  

ASSETS

 

 

 

 

 

 

  

Cash and Cash Equivalents

 

$

1,244,778

 

$

830,372

 

Accounts Receivable, Net

 

 

1,655,752

 

 

1,452,931

  

Inventories

 

 

629,120

 

 

607,701

  

Other Current Assets

 

 

232,590

 

 

255,983

  

     Total Current Assets

 

 

3,762,240

 

 

3,146,987

  

Property, Plant and Equipment, Net

 

 

263,862

 

 

247,231

 

Other Assets

 

 

1,518,546

 

 

1,560,929

 

     Total Assets

 

$

5,544,648

 

$

4,955,147

  

 

 

 

 

 

 

  

  

 

 

 

 

 

 

  

LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS

 

 

 

 

 

 

 

AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

  

Short-term Borrowings

 

$

189,012

 

$

178,666

 

Current Portion of Long-term Debt

 

 

-

 

 

349,611

  

Payables and Accrued Liabilities

 

 

1,295,745

 

 

1,087,442

  

     Total Current Liabilities

 

 

1,484,757

 

 

1,615,719

  

Long-term Debt

 

 

1,693,261

 

 

1,198,461

  

Other Liabilities

 

 

410,378

 

 

364,378

  

     Total Liabilities

 

 

3,588,396

 

 

3,178,558

 

Redeemable Noncontrolling Interests

 

 

-

 

 

34,829

  

Total Shareholders' Equity

 

 

1,956,252

 

 

1,741,760

 

  

 

 

 

 

 

 

 

     Total Liabilities, Redeemable Noncontrolling Interests and Shareholders' Equity

 

$

5,544,648

 

$

4,955,147

 


 

HASBRO, INC.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

CONSOLIDATED STATEMENTS OF OPERATIONS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Thousands of Dollars and Shares Except Per Share Data)

Quarter Ended

 

Nine Months Ended

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oct. 1,   2017

 

% Net Revenues

 

 

Sept. 25,   2016

 

% Net Revenues

 

 

Oct. 1,   2017

 

% Net Revenues

 

 

Sept. 25,   2016

 

% Net Revenues

Net Revenues

$

1,791,502

 

100.0%

 

$

1,679,757

 

100.0%

 

$

3,613,671

 

100.0%

 

$

3,389,882

 

100.0%

Costs and Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Cost of Sales

 

730,656

 

40.8%

 

 

658,986

 

39.2%

 

 

1,404,971

 

38.9%

 

 

1,270,902

 

37.5%

     Royalties

 

139,222

 

7.8%

 

 

134,294

 

8.0%

 

 

282,754

 

7.8%

 

 

273,671

 

8.1%

     Product Development

 

67,386

 

3.8%

 

 

70,083

 

4.2%

 

 

192,765

 

5.3%

 

 

190,918

 

5.6%

     Advertising

 

168,926

 

9.4%

 

 

154,132

 

9.2%

 

 

342,236

 

9.5%

 

 

320,948

 

9.5%

     Amortization of Intangibles

 

6,492

 

0.4%

 

 

8,691

 

0.5%

 

 

22,254

 

0.6%

 

 

26,073

 

0.8%

     Program Production Cost Amortization

 

5,394

 

0.3%

 

 

6,282

 

0.4%

 

 

16,152

 

0.4%

 

 

17,501

 

0.5%

     Selling, Distribution and Administration

 

312,482

 

17.4%

 

 

285,188

 

17.0%

 

 

813,268

 

22.5%

 

 

756,978

 

22.3%

          Operating Profit

 

360,944

 

20.1%

 

 

362,101

 

21.6%

 

 

539,271

 

14.9%

 

 

532,891

 

15.7%

Interest Expense

 

25,072

 

1.4%

 

 

24,305

 

1.4%

 

 

73,752

 

2.0%

 

 

72,263

 

2.1%

Other Income, Net

 

(13,969)

 

-0.8%

 

 

(8,528)

 

-0.5%

 

 

(42,045)

 

-1.2%

 

 

(11,929)

 

-0.4%

           Earnings before Income Taxes

 

349,841

 

19.5%

 

 

346,324

 

20.6%

 

 

507,564

 

14.0%

 

 

472,557

 

13.9%

Income Taxes

 

84,258

 

4.7%

 

 

90,162

 

5.4%

 

 

105,659

 

2.9%

 

 

120,005

 

3.5%

          Net Earnings

 

265,583

 

14.8%

 

 

256,162

 

15.2%

 

 

401,905

 

11.1%

 

 

352,552

 

10.4%

Net Loss Attributable to Noncontrolling Interests

 

-

 

0.0%

 

 

(1,636)

 

-0.1%

 

 

-

 

0.0%

 

 

(6,103)

 

-0.2%

          Net Earnings Attributable to Hasbro, Inc.

$

265,583

 

14.8%

 

$

257,798

 

15.3%

 

$

401,905

 

11.1%

 

$

358,655

 

10.6%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Per Common Share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

          Net Earnings Attributable to Hasbro, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

 

  

Basic

 

$

2.12

 

 

 

$

2.05

 

 

 

$

3.21

 

 

 

$

2.86

 

 

  

 

  

Diluted

 

$

2.09

 

 

 

$

2.03

 

 

 

$

3.16

 

 

 

$

2.82

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

          Cash Dividends Declared

$

0.57

 

 

 

$

0.51

 

 

 

$

1.71

 

 

 

$

1.53

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted Average Number of Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

 

Basic

 

 

125,170

 

 

 

 

125,500

 

 

 

 

125,204

 

 

 

 

125,414

 

 

 

  

 

Diluted

 

 

127,150

 

 

 

 

127,178

 

 

 

 

127,248

 

 

 

 

127,056

 

 

 


 

HASBRO, INC.

 

 

 

 

  

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 

 

 

(Unaudited)

 

 

 

 

 

(Thousands of Dollars)

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended

 

 

Oct. 1, 2017

 

 

Sept. 25, 2016

Cash Flows from Operating Activities:

 

 

 

 

 

  Net Earnings

$

401,905

 

$

352,552

  Non-cash Adjustments

 

185,413

 

 

182,142

  Changes in Operating Assets and Liabilities

 

(385,522)

 

 

(339,287)

    Net Cash Provided by Operating Activities

 

201,796

 

 

195,407

 

 

 

 

 

 

Cash Flows from Investing Activities:

 

 

 

 

 

  Additions to Property, Plant and Equipment

 

(102,512)

 

 

(103,639)

  Acquisitions and Investments, Net of Cash Acquired

 

-

 

 

(12,436)

  Other

 

5,516

 

 

25,576

   Net Cash Utilized by Investing Activities

 

(96,996)

 

 

(90,499)

 

 

 

 

 

 

Cash Flows from Financing Activities:

 

 

 

 

 

  Proceeds from Borrowings with Maturity Greater Than 3 Months

 

493,878

 

 

-

  Repayments of Borrowings with Maturity Greater Than 3 Months

 

(350,000)

 

 

-

  Net Proceeds from (Repayments of) Short-term Borrowings

 

15,663

 

 

14,160

  Purchases of Common Stock

 

(112,241)

 

 

(104,273)

  Stock-based Compensation Transactions

 

29,432

 

 

37,515

  Dividends Paid

 

(206,012)

 

 

(185,265)

  Employee Taxes Paid for Shares Withheld

 

(31,973)

 

 

(21,914)

  Other

 

-

 

 

762

   Net Cash Utilized by Financing Activities

 

(161,253)

 

 

(259,015)

 

 

 

 

 

 

Effect of Exchange Rate Changes on Cash

 

18,946

 

 

7,729

 

 

 

 

 

 

Cash and Cash Equivalents at Beginning of Year

 

1,282,285

 

 

976,750

 

 

 

 

 

 

Cash and Cash Equivalents at End of Period

$

1,244,778

 

$

830,372

 

 

 

 

 

 

Certain reclassifications have been made to the prior year cash flow statement to conform to the

 

 

 

 

 

current year presentation.

 

 

 

 

 

 


 

HASBRO, INC.

 

 

 

 

 

 

 

 

  

  

SUPPLEMENTAL FINANCIAL DATA

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

(Thousands of Dollars)

 

Quarter Ended

 

 

 

Nine Months Ended

 

 

 

 

 

 

 

Oct. 1, 2017

 

 

Sept. 25, 2016

 

% Change

 

 

Oct. 1, 2017

 

 

Sept. 25, 2016

 

% Change

Major Segment Results

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 U.S. and Canada Segment:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   External Net Revenues

$

993,833

 

$

932,844

 

7%

 

$

1,939,837

 

$

1,802,391

 

8%

   Operating Profit

 

217,278

 

 

228,034

 

-5%

 

 

363,589

 

 

364,322

 

0%

   Operating Margin

 

21.9%

 

 

24.4%

 

 

 

 

18.7%

 

 

20.2%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 International Segment:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   External Net Revenues

 

739,229

 

 

690,745

 

7%

 

 

1,511,074

 

 

1,436,911

 

5%

   Operating Profit

 

132,007

 

 

133,075

 

-1%

 

 

149,435

 

 

165,582

 

-10%

   Operating Margin

 

17.9%

 

 

19.3%

 

 

 

 

9.9%

 

 

11.5%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Entertainment and Licensing Segment:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   External Net Revenues

 

58,440

 

 

56,130

 

4%

 

 

162,663

 

 

150,521

 

8%

   Operating Profit

 

16,910

 

 

14,095

 

20%

 

 

39,580

 

 

33,367

 

19%

   Operating Margin

 

28.9%

 

 

25.1%

 

 

 

 

24.3%

 

 

22.2%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

International Segment Net Revenues by Major Geographic Region

 

 

 

 

 

 

 

 

  Europe

$

467,740

 

$

452,834

 

3%

 

$

921,467

 

$

905,081

 

2%

  Latin America

 

174,446

 

 

154,985

 

13%

 

 

339,071

 

 

307,949

 

10%

  Asia Pacific

 

97,043

 

 

82,926

 

17%

 

 

250,536

 

 

223,881

 

12%

 

Total

 

 

$

739,229

 

$

690,745

 

 

 

$

1,511,074

 

$

1,436,911

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Revenues by Brand Portfolio

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Franchise Brands

$

827,282

 

$

773,415

 

7%

 

$

1,803,744

 

$

1,642,057

 

10%

  Partner Brands

 

485,747

 

 

493,738

 

-2%

 

 

928,724

 

 

979,051

 

-5%

  Hasbro Gaming

 

280,097

 

 

229,850

 

22%

 

 

549,736

 

 

456,516

 

20%

  Emerging Brands

 

198,376

 

 

182,754

 

9%

 

 

331,467

 

 

312,258

 

6%

 

Total Net Revenues

$

1,791,502

 

$

1,679,757

 

 

 

$

3,613,671

 

$

3,389,882

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hasbro's total gaming category, including all gaming revenue, most notably MAGIC: THE GATHERING

 

 

and MONOPOLY, totaled $424,836 and $951,386 for the three and nine months ended October 1, 2017,

 

 

respectively, up 4% and 10%, respectively, from revenues of $409,528 and $868,373 for the three and

 

 

nine months ended September 25, 2016, respectively.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of EBITDA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Net Earnings Attributable to Hasbro, Inc.

$

265,583

 

$

257,798

 

 

 

$

401,905

 

$

358,655

 

 

  Net Loss Attributable to

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    Noncontrolling Interests

 

-

 

 

(1,636)

 

 

 

 

-

 

 

(6,103)

 

 

  Interest Expense

 

25,072

 

 

24,305

 

 

 

 

73,752

 

 

72,263

 

 

  Income Taxes

 

84,258

 

 

90,162

 

 

 

 

105,659

 

 

120,005

 

 

  Depreciation

 

42,062

 

 

32,236

 

 

 

 

107,853

 

 

89,327

 

 

  Amortization of Intangibles

 

6,492

 

 

8,691

 

 

 

 

22,254

 

 

26,073

 

 

 

EBITDA

$

423,467

 

$

411,556

 

 

 

$

711,423

 

$

660,220