Actionable news
0
All posts from Actionable news
Actionable news in HAS: Hasbro, Inc.,

Hasbro, Inc. Press Release Dated October 19, 2015

The following excerpt is from the company's SEC filing.

Exhibit 99.1

For Immediate Release

Hasbro Reports Financial Results for the Third Quarter 2015

Third quarter 2015 revenues of $1.47 billion; Absent a negative $132.4 million impact of foreign exchange, third quarter 2015 revenues grew 9%;

U.S. and Canada segment revenues up 5%; International segment revenues increased 14% absent foreign exchange; Entertainment and Licensing segment revenues decreased 2% year-over-year;

The Boys and Preschool categories grew in the quarter; Absent the negative impact of foreign exchange, Franchise Brands grew 4% in the quarter;

Net earnings o f $207.6 million or $1.64 per diluted share; Adjusted net earnings of $200.5 million or $1.58 per diluted share, excluding the sale of manufacturing operations;

Operating cash flow of $497.1 million over the trailing twelve month period; $551.3 million of cash at quarter end; Returned $83.5 million to shareholders through dividend and share repurchase in the third quarter.

Pawtucket, R.I., October 19, 2015

Hasbro, Inc.

(NASDAQ: HAS) today reported financial results for the third quarter 2015. Net revenues for the third quarter 2015 were $1.47 billion, flat with $1.47 billion in 2014. Absent a negative $132.4 million impact from foreign exchange, net revenues increased 9%.

Net earnings for the third quarter 2015 were $207.6 million, or $1.64 per diluted share, compared to $180.5 million, or $1.40 per diluted share, in 2014. Adjusted net earnings for the third quarter 2015 were $200.5 million, or $1.58 per diluted share. These exclude a pre-tax gain of $9.9 million, or $0.06 per diluted share, from the sale of the Company's manufacturing operations in East Longmeadow, MA and Waterford, Ireland. This compared to adjusted net earnings for the third quarter 2014 of $187.8 million, or $1.46 per diluted share, which excluded a pre-tax charge of $11.6 million, or $0.06 per diluted share, related to the restructuring of the Company's investment in its television joint venture.

"Strong global consumer demand across Hasbro Franchise Brands and Partner Brands drove continued momentum in our business," said Brian Goldner, Hasbro's Chairman, President and Chief Executive Officer. "Brand innovation and superior market execution delivered not only underlying revenue growth, but higher profitability in a very challenging foreign exchange environment. We have innovative play experiences and marketing initiatives across brands, demographics and geographies this holiday season and remain focused on executing and investing for continued growth in future years."

"Throughout 2015, our teams have positioned Hasbro to succeed in a very challenging environment," said Deborah Thomas, Hasbro's Chief Financial Officer. "Tremendous innovation across brands and a strong entertainment slate has driven favorable product mix and underlying profit gains. Through the third quarter, pricing and hedging programs have protected our margins, but only through the strong execution of the team will we continue to deliver against our objective to expand operating profit margin over time. We also continue to invest in future innovation and systems, which positions us for long-term growth and shareholder value creation."

Third Quarter 2015 Major Segment Performance

Net Revenues ($ Millions)

Operating Profit ($ Millions)

Q3 2015

Q3 2014

% Change

+3,195

U.S. and Canada Segment net revenues increased 5% to $803.8 million compared to $764.3 million in 2014. The Segment's results reflect growth in the Boys and Preschool categories, which was partially offset by a decline in the Games and Girls categories. Absent the 1% or $5.4 million negative impact of foreign exchange, the U.S. and Canada segment increased 6%. The U.S. and Canada Segment reported operating profit of $187.1 million, up 10% compared to $169.9 million in 2014.

International Segment net revenues were $612.6 million compared to $649.3 million in 2014. Growth in the Boys and Preschool categories were more than offset by declines in the Games and Girls categories. On a regional basis, the negative impact of foreign currency resulted in revenue declines in Europe, Latin America and Asia Pacific. Emerging markets revenues declined 15% in the quarter. Excluding an unfavorable $126.7 million impact of foreign exchange, net revenues in the International Segment grew 14%, increasing 15% in Europe, 14% in Latin America and 9% in Asia Pacific. Emerging markets increased approximately 12% absent the impact of foreign exchange. Foreign exchange also negatively impacted operating profit. As reported, International Segment operating profit of $114.2 million was down 2%, compared to $116.5 million in 2014. Excluding the negative impact of foreign exchange, operating profit was $133.0 million, a 14% increase versus 2014.

Entertainment and Licensing Segment net revenues declined 2% to $52.1 million compared to $53.4 million in 2014. The decline in revenue was primarily driven by a difficult comparison with

TRANSFORMERS: AGE OF EXTINCTION

entertainment and licensing revenue last year. The Entertainment and Licensing Segment reported an increase in operating profit to $16.2 million compared to $0.5 million in 2014. In 2014, operating profit was negatively impacted by the acceleration of certain programming amortization costs.

Third Quarter 2015 Product Category Performance

Nine Months 2015

Nine Months 2014

1,206.1

1,062.1

Third quarter 2015 net revenues in the Boys category increased 24% to $593.1 million. The retail launch of

STAR WARS: THE FORCE AWAKENS

product along with growth in Franchise Brand NERF and the positive contribution from JURASSIC WORLD products drove the strong year-over-year growth. These gains more than offset the decline in TRANSFORMERS, which faced difficult comparisons versus 2014 shipments in support of the theatrical release of

TRANSFORMERS: AGE OF EXTINCTION.

Games category revenues declined 8% in the quarter to $363.5 million. Growth in Franchise Brand MONOPOLY and initial shipments of PLAYMATION MARVEL'S AVENGERS were more than offset by declines in Franchise Brand MAGIC: THE GATHERING and several other games.

The Girls category revenues declined 28% in the third quarter 2015 to $294.8 million. FURBY continued to drive this decline along with relatively smaller declines in Franchise Brand MY LITTLE PONY, and a decline in FURREAL FRIENDS. Growth in PLAY-DOH DOHVINCI and shipments of DISNEY'S DESCENDANTS partially offset the revenue declines in other Girls' brands.

Preschool category revenues increased 17% in the third quarter 2015 to $219.6 million. Growth in...


More