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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): April 16, 1998
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HASBRO, INC.
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(Name of Registrant)
RHODE ISLAND 1-6682 05-0155090
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(State of (Commission (IRS Employer
Incorporation) File Number) Identification No.)
1027 NEWPORT AVE., PAWTUCKET, RHODE ISLAND 02861
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(Address of Principal Executive Offices) (Zip Code)
(401) 431-8697
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(Registrant's Telephone Number)
Item 5. Other Events
The April 16, 1998 Press Release of the Registrant attached
hereto as EXHIBIT 99 is incorporated herein by reference.
Item 7(c) Exhibits
99 Press Release, dated April 16, 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.
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(Registrant)
Date: April 16, 1998 By: /s/ John T. O'Neill
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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 April 16, 1998
Exhibit Index
Exhibit
No. Exhibits
- - - ------- --------
99 Press Release dated April 16, 1998
EXHIBIT 99
For Immediate Release Contact: John T. O'Neill
April 16, 1998 401-727-5600
Renita E. O'Connell
401-727-5401
HASBRO FIRST QUARTER 1998 RESULTS IN LINE WITH PRE-ANNOUNCEMENT
Pawtucket, RI (April 16, 1998) -- Hasbro, Inc. (HAS:ASE) today reported
first quarter results consistent with its March 24, 1998 announcement
regarding the impact of recent changes in inventory flow policies at Toys `R
Us, a key customer.
Net revenues decreased approximately 11% in local currencies, primarily
due to the changes at Toys `R Us. In addition, the adverse impact of the
stronger U.S. dollar reduced revenues by approximately $10 million, or almost
2%. Reported revenues were $482.8 million, or 13.1% below the $555.8 million
reported last year. Net earnings and diluted earnings per share were $7.8
million and $0.06, respectively, compared to $25.7 million and $0.20,
respectively, in the first quarter of 1997.
"Across the board, our product lines performed as expected," said Alan
G. Hassenfeld, Chairman and Chief Executive Officer. "Last year, our first
quarter results were boosted by the theatrical re-release of the Star Wars
Trilogy(TM) and anticipation of the release of The Lost World: Jurassic
Park(TM). We expected a difficult comparison this year, and this has been
compounded by the significant reduction in inventories and increased
seasonality of purchasing patterns at Toys `R Us," Hassenfeld explained.
Hassenfeld continued, "Partly offsetting the anticipated decline in Star
Wars(R) and Jurassic Park(R) were increased sales by Hasbro Interactive(TM),
Beast Wars(R)/Transformers(R) and the Super Soaker(R) line of water toys.
Revenues from Barney(TM) also increased in anticipation of the full-screen
movie release on April 3, which has been well-received. Internationally,
growth occurred in Latin America and certain European markets, notably Italy
and Spain. Our lower earnings in the quarter reflected the disproportionate
impact that a decrease in revenues has in a seasonally low-revenue quarter,
as fixed costs continue to be incurred," Hassenfeld added.
Two significant achievements so far this year provide a platform for
future earnings growth: first, the acquisition of Tiger Electronics in early
April and second, the completion of the groundwork to implement the Global
Integration and Profit Enhancement Program. The Company is on track to
realize the anticipated savings from this Program in 1998 and future years.
"Looking ahead, we expect difficult earnings comparisons to continue in
the second quarter, in part due to the ongoing inventory reduction at Toys `R
Us," Alan Hassenfeld said. "Then, in the increasingly important second half,
we will build sales and earnings momentum, not only from cost savings but
also from Teletubbies(TM) - which debuted on April 6 on PBS to great acclaim,
the summer movie release of DreamWorks' `Small Soldiers'(TM), the fall
release of our new CD-ROM version of the recently acquired Atari(R) classic -
Centipede(R), and new products from Tiger Electronics. We continue working
hard to deliver our plan for this year, and expect to achieve double-digit
growth in earnings per share," 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 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
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Mar. 29, Mar. 30,
1998 1997
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Net Revenues $482,820 $555,784
Cost of Sales 204,312 235,371
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Gross Profit 278,508 320,413
Amortization 14,143 10,032
Royalties, Research and Development 67,336 63,892
Advertising 55,757 71,302
Selling, Distribution and Administration 135,249 134,781
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Operating Profit 6,023 40,406
Interest Expense 2,312 4,430
Other (Income), Net (8,097) (4,171)
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Earnings Before Income Taxes 11,808 40,147
Income Taxes 4,015 14,453
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Net Earnings $ 7,793 $ 25,694
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Per Common Share
Net Earnings
Basic $ .06 $ .20
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Diluted $ .06 $ .20
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Cash Dividends Declared $ .08 $ .08
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Weighted Average Number
of Shares
Basic 133,110 128,599
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Diluted 138,209 138,709
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HASBRO, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(Thousands of Dollars)
Mar. 29, Mar. 30,
1998 1997
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Assets
Cash and Temporary Investments $ 430,601 $ 289,546
Accounts Receivable, Net 362,328 517,022
Inventories 269,097 268,945
Other 205,209 180,395
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Total Current Assets 1,267,235 1,255,908
Property, Plant and Equipment, Net 271,607 299,626
Other Assets 1,053,124 894,354
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Total Assets $2,591,966 $2,449,888
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Liabilities and Shareholders' Equity
Short-term Borrowings $ 112,465 $ 69,543
Payables and Accrued Liablities 617,015 528,308
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Total Current Liabilities 729,480 597,851
Long-term Debt - 149,208
Deferred Liabilities 59,771 68,937
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Total Liabilities 789,251 815,996
Total Shareholders' Equity 1,802,715 1,633,892
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Total Liabilities and Shareholders' Equity $2,591,966 $2,449,888
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