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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 21, 1996 ------------------------- 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 21, 1996 Press Release of the Registrant attached hereto as EXHIBIT 99 is incorporated herein by reference. Item 7. Financial Statements and Exhibits 99 Press Release, dated October 21, 1996, 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 21, 1996 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 21, 1996 Exhibit Index Exhibit No. Exhibits - - ------- -------- 99 Press Release dated October 21, 1996
EXHIBIT 99 For Immediate Release Contact: John T. O'Neill October 21, 1996 Telephone: 401-431-8500 HASBRO, INC. ANNOUNCES REVENUES AND EARNINGS FOR THIRD QUARTER 1996 Pawtucket, RI (October 21, 1996) -- Hasbro, Inc. (HAS:ASE) today reported third quarter revenues of $845,148,000, up from $826,165,000 in the third quarter of 1995. Net earnings for the quarter increased to $70,469,000 or $.81 per share, a growth of approximately 13% from the 1995 level of $63,572,000, or $.72 per share. For the nine months, revenues totaled $1,895,442,000, compared with $1,834,522,000 in 1995. Net earnings for the year to date were $100,820,000, or $1.15 per share, up 14% from the $89,488,000, or $1.01 per share a year ago, absent the impact of the second quarter 1995 $31,100,000 pretax charge related to a discontinued development project. The reported 1995 nine month earnings were $70,362,000, or $.80 per share. "I am very pleased to be able to report growth in both revenues and earnings again this quarter", said Alan G. Hassenfeld, Chairman and Chief Executive Officer. "In the United States, boys' toys and the game products from Milton Bradley and Parker Brothers continued the momentum which was evident in the second quarter. Our Batman(R) and Star Wars(R) action figures and accessories provided fun-filled play experiences for children throughout the country and our line of large dolls, including the number one at retail, Baby Go Bye Bye(TM) continued to be strong. Our classic games performed very well and we continued to see impressive strength in many of our newer items, including Puzz 3D(TM) and the Goosebumps(TM) games and puzzles. Internationally, absent the impact of unfavorable foreign currency translation rates and reflecting growth in the United Kingdom, Mexico, Asia/Pacific and our K'Nex operations, revenues marginally exceeded those of a year ago." He continued, "This revenue increase also drove our earnings. Additionally, earnings were helped by a reduction in the tax rate, largely due to a one-time benefit from the expected utilization of certain international tax losses from prior years. Adversely impacting us this quarter were the costs provided for the previously announced closing of our Amsterdam, New York manufacturing facility." "During the quarter we aggressively continued the repurchase of our shares in the open market, adding more than 800,000 to those in our treasury. During the past twelve months we have purchased in excess of 2,100,000 shares and have authorization to purchase almost 4,000,000 more. Even after these purchases, which have used approximately $75,000,000 of cash, our balance sheet remains strong. Receivables, while at a higher level than those of a year ago, are relatively constant when expressed as days sales outstanding and the growth in inventories experienced recently continues to moderate." Mr. Hassenfeld concluded, "The momentum that started in the 4th quarter of 1995 is continuing. Our new products are being well received and we just completed a very successful preview of our 1997 line with our major customers. We are optimistic about the full year and look forward with great anticipation to 1997 when we will present product for three of the year's major movie releases - the re-release of `Star Wars Trilogy', Steven Spielberg's `Jurassic Park - The Lost World' and the fourth Batman movie, `Batman and Robin'. All of this, coupled with our work to turn Hasbro into a global, brand driven organization, is part of our continuing effort to enhance shareholder value." # # # (Tables Attached) HASBRO, INC. CONSOLIDATED STATEMENTS OF EARNINGS (Thousands of Dollars and Shares Except Per Share Data) Quarter Ended Nine Months Ended (1) ---------------- -------------------- Sep 29, Oct 1, Sep 29, Oct 1, 1996 1995 1996 1995 ------- ------- --------- --------- Net Revenues $845,148 826,165 $1,895,442 1,834,522 Cost of Sales 372,273 360,852 844,228 807,509 ------- ------- --------- --------- Gross Profit 472,875 465,313 1,051,214 1,027,013 Amortization 9,939 9,718 29,745 28,686 Royalties, Research and Development 85,929 78,318 204,707 195,487 Discontinued Development Project - - - 31,100 Advertising 116,446 123,537 252,893 261,934 Selling, Distribution and Administration 146,941 142,977 397,215 382,785 ------- ------- --------- --------- Operating Profit 113,620 110,763 166,654 127,021 Interest Expense 9,419 10,932 19,678 24,139 Other (Income), Net (733) (3,539) (6,210) (11,528) ------- ------- --------- --------- Earnings Before Income Taxes 104,934 103,370 153,186 114,410 Income Taxes 34,465 39,798 52,366 44,048 ------- ------- --------- --------- Net Earnings $ 70,469 63,572 $ 100,820 70,362 ======= ======= ========= ========= Per Common Share(2) Net Earnings $ .81 .72 $ 1.15 .80 ======= ======= ========= ========= Cash Dividends Declared $ .10 $ .08 $ .30 .24 ======= ======= ========= ========= Weighted Average Number of Shares 87,413 88,347 87,969 88,290 ======= ======= ========= ========= (1) - 1996 consists of 39 weeks; 1995, 40 weeks. (2) - Primary and fully diluted data are not shown separately as they are substantially the same. HASBRO, INC. CONSOLIDATED CONDENSED BALANCE SHEETS (Thousands of Dollars) Sep. 29, Oct. 1, 1996 1995 --------- --------- Assets Cash and Temporary Investments $ 57,753 $ 53,785 Accounts Receivable, Net 1,184,615 1,128,119 Inventories 402,704 390,095 Other 155,941 158,264 --------- --------- Total Current Assets 1,801,013 1,730,263 Property, Plant and Equipment, Net 301,453 306,464 Other Assets 897,009 880,782 --------- --------- Total Assets $2,999,475 $2,917,509 ========= ========= Liabilities and Shareholders' Equity Short-term Borrowings $ 553,136 $ 566,820 Payables and Accrued Liablities 654,947 673,621 --------- --------- Total Current Liabilities 1,208,083 1,240,441 Long-term Debt 149,907 149,991 Deferred Liabilities 70,556 65,143 --------- --------- Total Liabilities 1,428,546 1,455,575 Total Shareholders' Equity 1,570,929 1,461,934 --------- --------- Total Liabilities and Shareholders' Equity $2,999,475 $2,917,509 ========= =========