Hasbro Report: Hasbro Announces Quarterly Cash Dividend on Common Shares

Board of Directors Increases Quarterly Dividend 11%, or $0.06 per share, to $0.63 per share

Full-Year 2017

2017 full-year net revenues of $5.21 billion increased 4%, including a favorable $79.2 million impact of foreign exchange; Operating profit margin of 15.6%;
2017 revenues grew in all major operating segments: 5% in the U.S. and Canada segment; 2% in the International segment; and 8% in the Entertainment and Licensing segment;
Franchise Brand revenues increased 10%; Hasbro Gaming revenues up 10%; Emerging Brands grew 2%; Partner Brands declined 10%;
U.S. tax reform, passed in December 2017, resulted in a $296.5 million net charge, or $2.33 per diluted share;
Adjusted net earnings, excluding the impact of U.S. tax reform, were $693.1 million or $5.46 per diluted share; Reported net earnings of $396.6 million or $3.12 per diluted share;
$724.4 million in operating cash flow generated during the year; Year-end cash and cash equivalents of $1.58 billion;
Company returned $427.0 million to shareholders in 2017; $277.0 million in dividends and $150.0 million in share repurchases.

Fourth Quarter 2017

Fourth Quarter net revenues decreased 2% to $1.60 billion, including a favorable $44.3 million impact of foreign exchange; Operating profit margin of 17.0%;
U.S. tax reform resulted in a $296.5 million net charge, or $2.35 per diluted share;
Adjusted net earnings, excluding the impact of U.S. tax reform, were $291.2 million or $2.30 per diluted share; Reported net loss of $5.3 million, or $0.04 per diluted share;



PAWTUCKET, R.I.--(BUSINESS WIRE)--Feb. 7, 2018-- Hasbro, Inc. (NASDAQ: HAS) today reported financial results for the full-year and fourth quarter 2017. Net revenues for the full-year 2017 increased 4% to $5.21 billion versus $5.02 billion in 2016. 2017 net revenues include a favorable $79.2 million impact from foreign exchange.

As reported net earnings for the full-year 2017 of $396.6 million, or $3.12 per diluted share, compared to $551.4 million, or $4.34 per diluted share in 2016. Adjusted 2017 net earnings were $693.1 million, or $5.46 per diluted share, excluding a $296.5 million, or $2.33 per diluted share, impact from U.S. tax reform. Adjusted net earnings for the full-year 2016 were $566.1 million, or $4.46 per diluted share, excluding a post-tax $14.7 million, or $0.12 per diluted share, non-cash fourth quarter 2016 goodwill impairment charge related to Backflip Studios.

In December 2017, the U.S. enacted the Tax Cuts and Jobs Act that provided significant changes to the U.S. tax code, including a one-time repatriation tax payable over eight years. As a result of the Act, the Company recognized a net charge of $296.5 million. Given the significant complexities associated with the changes in the U.S. tax code, the estimated financial impact for the fourth-quarter and full year 2017 are provisional and subject to further analysis which could result in changes to this estimate during 2018 as further guidance is issued.

2017 net earnings also include a $0.25 per diluted share benefit versus full-year 2016 from the adoption of FASB ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting.

“Hasbro’s global team’s execution of our Brand Blueprint drove revenue gains in Franchise Brands, Hasbro Gaming and Emerging Brands, including immersive brand experiences across consumer products and digital gaming,” said Brian Goldner, Hasbro’s chairman and chief executive officer. “Our strong performance ranked Hasbro #1 across the G11 markets for the full-year 20171. In the fourth quarter, Hasbro Franchise Brand revenues increased 11%. However, overall consumer demand slowed in November and December both for the industry and for Hasbro. A decline in Partner Brands and Europe revenues resulted in us not meeting our fourth quarter revenue expectations. Looking ahead, our innovative lines are supported by robust storytelling and digital initiatives that position us well for 2018 and beyond.”

“Over the past five years, we added over $1 billion in revenues to our top line, growing revenues four consecutive years, while meaningfully increasing operating profit, net earnings and generating significant cash flow,” said Deborah Thomas, Hasbro’s chief financial officer. “Hasbro is in a strong financial position with the cash and profitability to invest in growing our business for the long term. Our team’s excellent job of understanding and assessing the global tax environment and managing associated risks contributed to strong underlying net earnings growth. In addition, our 2017 year-end results include an estimate for the expense associated with U.S. tax reform. We expect an on-going benefit to our tax rate in future periods and will discuss this further at our Toy Fair Investor Event.”

Fourth Quarter 2017 Financial Results

Fourth quarter 2017 net revenues of $1.60 billion compared to $1.63 billion in 2016. 2017 net revenues include a favorable $44.3 million from foreign exchange.

As reported net loss for the fourth quarter 2017 totaled $5.3 million, or $0.04 per diluted share, compared to net earnings of $192.7 million, or $1.52 per diluted share in 2016. Fourth quarter 2017 net earnings include a $0.09 per diluted share benefit versus fourth quarter 2016 from the adoption of FASB ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting. Adjusted net earnings for the fourth quarter 2017 were $291.2 million, or $2.30 per diluted share, excluding $296.5 million or $2.35 per diluted share, from U.S. tax reform. Adjusted net earnings for the fourth quarter 2016 were $207.4 million, or $1.64 per diluted share, excluding a post-tax $14.7 million, or $0.12 per diluted share, non-cash fourth quarter 2016 goodwill impairment charge related to Backflip Studios.

Full-Year 2017 Major Segment Performance

Net Revenues ($ Millions) Operating Profit ($ Millions)
FY 2017 FY 2016 % Change FY 2017 FY 2016 % Change
U.S. and Canada $2,690.5 $2,559.9 +5% $509.9 $522.3 -2%
International $2,233.6 $2,194.7 +2% $228.7 $294.5 -22%
Entertainment and Licensing $285.6 $265.2 +8% $96.4 $49.9 +93%


Note: Full-year 2016 Entertainment and Licensing segment operating profit includes a pre-tax $32.9 million fourth quarter 2016 non-cash goodwill impairment charge. The impact of that charge is outlined in the attached schedule “Net Earnings and Earnings per Share Excluding the Impact of Tax Reform and Goodwill Impairment.”

Full-year 2017 U.S. and Canada segment net revenues increased 5% to $2.69 billion compared to $2.56 billion in 2016. The U.S. and Canada segment operating profit declined 2% to $509.9 million, or 19.0% of net revenues, compared to $522.3 million, or 20.4% of net revenues in 2016, primarily driven by increased advertising as well as higher bad debt expense related to the Toys“R”Us bankruptcy filing in the third quarter of 2017.

Full-year International segment net revenues increased 2% to $2.23 billion compared to $2.19 billion in 2016. Full-year 2017 International segment revenues include a favorable $75.3 million impact of foreign exchange. On a regional basis, Europe net revenues decreased 2%, Latin America increased 5% and Asia Pacific increased 12%. Emerging markets net revenues increased 5% in the year. International segment operating profit decreased 22% to $228.7 million, or 10.2% of net revenues, compared to $294.5 million, or 13.4% of net revenues in 2016. The decline in operating profit was driven by higher sales allowances and unfavorable product mix, as well as higher advertising costs.

Entertainment and Licensing segment net revenues increased 8% to $285.6 million compared to $265.2 million in 2016. Full-year gains were driven by growth in consumer products and digital gaming, as well as the addition of Boulder Media. Operating profit was $96.4 million, or 33.8% of net revenues, compared to $49.9 million, or 18.8% of net revenues, in 2016. 2016 adjusted operating profit was $82.7 million, or 31.2% of net revenues, excluding a pre-tax $32.9 million non-cash fourth quarter 2016 goodwill impairment charge related to Backflip Studios.

Fourth Quarter and Full-Year 2017 Brand Portfolio Performance

Net Revenues ($ Millions)
Q4 2017 Q4 2016 % Change FY 2017 FY 2016 % Change
Franchise Brands $764.2 $685.6 +11% $2,568.0 $2,327.7 +10%
Partner Brands $342.9 $433.7 -21% $1,271.6 $1,412.8 -10%
Hasbro Gaming* $343.3 $356.9 -4% $893.0 $813.4 +10%
Emerging Brands $145.7 $153.7 -5% $477.2 $466.0 +2%


*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 $546.4 million for the fourth quarter 2017, up 5%, versus $518.7 million in the fourth quarter 2016 and up 8% to $1,497.8 million for full-year 2017 versus $1,387.1 million for full-year 2016. Hasbro believes its gaming portfolio is a competitive differentiator and views it in its entirety.

Full-year 2017 Franchise Brand net revenues increased 10% to $2.57 billion driven by revenue growth in TRANSFORMERS, NERF, MONOPOLY and MY LITTLE PONY. Franchise Brand revenue grew in all three major operating segments.

Partner Brand net revenues decreased 10% to $1.27 billion. An increase in BEYBLADE, MARVEL and SESAME STREET revenues was more than offset by a revenue decline in STAR WARS and to a lesser extent declines in YO-KAI WATCH and DISNEY FROZEN. Partner Brand revenues decreased in the U.S. and Canada and International segments.

Hasbro Gaming net revenues grew 10% to $893.0 million. Hasbro’s diverse gaming portfolio includes a broad spectrum of gaming experiences from face-to-face gaming, social gaming and digital gaming. New social games, such as SPEAK OUT, TOILET TROUBLE and FANTASTIC GYMNASTICS, were among many which contributed to growth. In addition, several other gaming brands grew, including DUNGEONS & DRAGONS, the launch of DROPMIX and growth in digital gaming. Hasbro Gaming net revenues grew in the U.S. and Canada and International segments. Hasbro’s total gaming category grew 8% to $1.50 billion, including revenue growth from MONOPOLY.

Emerging Brands net revenues increased 2% to $477.2 million, behind strong growth in BABY ALIVE and FURREAL FRIENDS. Emerging Brand net revenues grew in the U.S. and Canada segment.

Dividend and Share Repurchase

The Company paid $277.0 million in cash dividends to shareholders during 2017. Hasbro’s Board of Directors has declared a quarterly cash dividend of $0.63 per common share. This represents an increase of $0.06 per share, or 11%, from the previous quarterly dividend of $0.57 per common share. The dividend will be payable on May 15, 2018 to shareholders of record at the close of business on May 1, 2018.

For the full-year 2017, Hasbro repurchased 1.58 million shares of common stock at a total cost of $150.0 million and an average price of $94.74 per share. At year end, $178.0 million remained available in the current share repurchase authorization.

Conference Call Webcast

Hasbro will webcast its fourth quarter and full-year 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, as well as premier partner brands. Through Hasbro Studios and its film labels, Allspark Pictures and Allspark Animation, the Company is building its brands globally through great storytelling and content on all screens. Hasbro is committed to making the world a better place for children and their families through corporate social responsibility and philanthropy. Hasbro ranked No. 1 on the 2017 100 Best Corporate Citizens list by CR Magazine, and has been named one of the World’s Most Ethical Companies® by Ethisphere Institute for the past six years. Learn more at www.hasbro.com, and follow us on Twitter (@Hasbro & @HasbroNews) and Instagram (@Hasbro).

© 2018 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 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 recover the Company’s costs and earn a profit; (ii) downturns in economic conditions impacting one or more of the markets in which the Company sells products, such as the economic downturns which impacted the United Kingdom and Brazil in 2017, which can negatively impact the Company’s retail customers and consumers, and which can result in lower employment levels, lower consumer disposable income, lower retailer inventories and lower 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) consumer interest in entertainment properties, such as motion pictures, for which the Company is developing and marketing products, and the ability to drive sales of products associated with such entertainment properties, (v) potential difficulties or delays the Company may experience in implementing cost savings and efficiency enhancing initiatives; (vi) 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; (vii) 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; (viii) 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; (ix) 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; (x) 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; (xi) delays, increased costs or difficulties associated with any of our or our partners’ planned digital applications or media initiatives; (xii) work disruptions, which may impact the Company's ability to manufacture or deliver product in a timely and cost-effective manner; (xiii) the bankruptcy or other lack of success of one of the Company's significant retailers, such as the bankruptcy of Toys “R” Us in the United States and Canada in the fourth quarter of 2017, which could negatively impact the Company's revenues or bad debt exposure; (xiv) 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; (xv) 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; (xvi) the risk of product recalls or product liability suits and costs associated with product safety regulations; (xvii) 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; (xviii) changes in tax laws or regulations, or the interpretation and application of such laws and regulations, such as what may occur as the U.S. Tax Cuts and Jobs Act is interpreted and applied, which may cause the Company to alter tax reserves or make other changes which significantly impact its reported financial results; (xix) the impact of litigation or arbitration decisions or settlement actions; and (xx) 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 non-GAAP financial measures as defined under SEC rules, specifically Adjusted net earnings and earnings per share, excluding the impact of U.S. tax reform in 2017 and the impact of a goodwill impairment charge associated with Backflip Studios in 2016, as well as adjusted operating profit absent the impact of the goodwill impairment charge. Also included in the financial tables attached to this release are the non-GAAP financial measures of EBITDA and Adjusted EBITDA. EBITDA represents net earnings attributable to Hasbro, Inc. excluding net loss attributable to noncontrolling interests, interest expense, income taxes, depreciation and amortization. Adjusted EBITDA also excludes the impact of re-measuring a liability as a result of U.S. tax reform in 2017 and the impact of a goodwill impairment charge in 2016. As required by SEC rules, we have provided reconciliation on the attached schedule of these measures to the most directly comparable GAAP measure. Management believes that Adjusted net earnings, Adjusted earnings per share and adjusted operating profit absent the impact of U.S. tax reform and the goodwill impairment charge provides investors with an understanding of the underlying performance of the Company’s business absent these unusual events. Management believes that EBITDA and Adjusted EBITDA are appropriate measures for evaluating the operating performance of the Company because they reflect the resources available for strategic opportunities including, among others, to invest in the business, strengthen the balance sheet and make strategic acquisitions. These non-GAAP measures 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

1 According to NPD and SIM

Look, I view it through the lens of the fact that we saw challenges in Europe and we saw challenges particularly in the U.K. that's a major market for properties like STAR WARS. So, I would say that clearly both the paid marketing and earned marketing, the fans in the U.S. really helped to deliver a strong box office here, it also delivered a very strong box office, globally.

But in terms of the retail takeaway and sell-in, was lower in particularly outsized impact in places like Europe and in our international market, just represent more of the line share, the decline in percentage terms. And that's what we've seen.

So, right. It's a great global property. But by contrast, just to give you an example; TRANSFORMERS international business was incredibly strong; the U.S. business was strong; the brand overall was strong.

Our team has built a plan for the right sizing of the Toys "R" Us business.

We have continued to grow the number of doors and continued to grow our revenues outside of Toys "R" Us. We continue to be supportive of them but most importantly we continue to manage our risk and inventory as they streamline the amount of inventory they can take. And we are prepared for any eventuality.

No. look, if you look at TRANSFORMERS, I think that we go from strength-to-strength. This year, TRANSFORMERS in the fourth quarter was in dollar terms, our biggest growing brand. And overall for the year grew very strong double-digits. It's because we are perpetually engaged with our audience by demographic and psychographic.

We have a preschool RESCUE BOTS show, we have our Cyberverse focused on our core kid six-to-nine year-old. We continue to run more adult oriented content on Machinima for that fan. Fan business is growing in a very significant manner. And then of course we have our movies. It was a movie year but our products were about the movie but also about all these other dimensions of TRANSFORMERS.

So, this is a brand that's working everywhere globally, it's a brand that's exceedingly strong and getting stronger in China. We'll talk more at Toy Fair about the major global initiatives and in gaming and how this brand comes to life. So, when we talk about our Bumblebee movie, it's really the focal point of an entire blueprint activation that will take place around that time of year.

And we will bring to bear all of the different strengths and power inside the blueprint to bring Bumblebee and TRANSFORMERS to life at that time. So, we know that there is an amazing array of entertainment with the beneficiaries of a lot of that that's in the world today and we think our brand like Bumblebee and TRANSFORMERS holds its own.

Rated X wrote:So of course Transformers will out-sell star wars in toy sales.

Quint wrote:He really needs to work on his Powerpoint composition. What a mess!

• First quarter 2018 revenues decreased to $716.3 million due to the liquidation of Toys“R”Us and retail inventory overhang, primarily in Europe;
  
• Reported net loss of $112.5 million or $0.90 per diluted share, includes after-tax expenses of $61.4 million associated with Toys“R”Us; $15.7 million of severance costs associated with an acceleration of the Company’s ongoing commercial organization transformation; and a net charge of $47.8 million related to U.S. tax reform (the “Non-GAAP Adjustments”);
  
• Adjusted net earnings of $12.4 million or $0.10 per diluted share;
  
• Ended the quarter with $1.6 billion in cash and returned $109.6 million to shareholders; $70.8 million in dividends and $38.8 million in share repurchases.

PAWTUCKET, R.I.--(BUSINESS WIRE)--Apr. 23, 2018-- Hasbro, Inc. (NASDAQ: HAS) today reported financial results for the first quarter 2018. Net revenues for the first quarter 2018 decreased 16% to $716.3 million versus $849.7 million in 2017. The decrease in revenues is the result of the liquidation of Toys“R”Us in the U.S. and U.K., along with uncertainty in its other operations, as well as retail inventory overhang, primarily in Europe.

Net loss for the first quarter 2018 was $112.5 million, or $0.90 per diluted share, compared to net earnings of $68.6 million, or $0.54 per diluted share, in 2017. Excluding the Non-GAAP Adjustments noted above, adjusted net earnings for the quarter were $12.4 million or $0.10 per diluted share. The first quarter 2018 was a 13-week period versus the first quarter 2017 which was a 14-week period.

“The Hasbro teams executed extremely well during a challenging first quarter,” said Brian Goldner, Hasbro’s chairman and chief executive officer. “Hasbro brands are resonating with consumers and consumer takeaway is positive. However, as we discussed earlier in the year, our first quarter was expected to be difficult. We are working to put the near-term disruption from Toys“R”Us behind us. Our global retailers view this as an opportunity in a key consumer category and are partnering with Hasbro to develop growth plans for our brands. New Hasbro initiatives shipping in this quarter and beyond won’t be caught up in the Toys“R”Us liquidation process. With the rapid shift to a converged retail environment, we accelerated plans we originally had spread throughout the year to transform our commercial organization on a more immediate basis.”

“Our underlying financial strength is sound, and despite the near-term challenges associated with a major customer liquidation, Hasbro is positioned to manage a challenging 2018 and drive growth in 2019 and beyond,” said Deborah Thomas, Hasbro’s chief financial officer. “The quarter’s revenue and profits were negatively impacted by lower revenues and higher expenses associated with events that do not reflect the health of our underlying business. We remain on track to meet our goal of generating $600 to $700 million in operating cash flow this year while investing to build our brands, transform our organization and return cash to shareholders.”

First Quarter 2018 Major Segment Performance



Net Revenues
($ Millions)


Operating Profit (Loss)
($ Millions)


Adjusted Operating
Profit (Loss) ($M)
Q1 2018 Q1 2017 % Change Q1 2018 Q1 2017 Q1 2018
U.S. and Canada $364.3 $451.6 -19% $(23.4) $64.8 $28.9
International $287.9 $345.3 -17% $(56.1) $0.5 $(44.9)
Entertainment and Licensing $64.0 $52.7 +21% $13.9 $11.3 $13.9


First quarter 2018 U.S. and Canada segment net revenues decreased 19% to $364.3 million compared to $451.6 million in 2017. The segment reported an operating loss of $23.4 million compared to an operating profit of $64.8 million in 2017. The segment’s first quarter performance reflected the Toys“R”Us liquidation both in lower revenues and $52.3 million of pre-tax expenses, primarily bad debt.

First quarter 2018 International segment net revenues were $287.9 million compared to $345.3 million in 2017. Revenues in the segment were negatively impacted by efforts to clear excess inventory in Europe, as well as the Toys“R”Us U.K. liquidation and uncertainty in its other international operations. International segment revenues include a favorable $19.5 million impact of foreign exchange. On a regional basis, Europe net revenues decreased 28%, Latin America increased 2% and Asia Pacific increased 3%. Emerging markets net revenues decreased 5% in the quarter. The International segment reported an operating loss of $56.1 million compared to an operating profit of $0.5 million in 2017. The decline in operating profit reflects lower revenues and includes $11.2 million of pre-tax expense associated with Toys“R”Us.

Entertainment and Licensing segment net revenues increased 21% to $64.0 million compared to $52.7 million in 2017. Operating profit increased 23% to $13.9 million, or 21.7% of net revenues, compared to $11.3 million, or 21.5% of net revenues, in 2017. Revenue growth was driven by consumer products and digital gaming. During the quarter, the Company adopted ASC 606 Revenue from Contracts with Customers which favorably impacted the timing of revenue recognition in the quarter.

Additional pre-tax expense of $7.0 million associated with Toys“R”Us and $17.3 million from accelerating the commercial organization transformation are included in the Corporate and Eliminations segment.

First Quarter 2018 Brand Portfolio Performance

Net Revenues ($ Millions)
Q1 2018 Q1 2017 % Change
Franchise Brands $361.7 $449.2 -19%
Partner Brands $200.6 $213.0 -6%
Hasbro Gaming* $105.2 $135.8 -22%
Emerging Brands $48.8 $51.8 -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 $203.5 million for the first quarter 2018, down 20%, versus $253.3 million for the first quarter 2017. Hasbro believes its gaming portfolio is a competitive differentiator and views it in its entirety.

First quarter 2018 revenues were negatively impacted across all Brand Portfolio categories by the liquidation of Toys“R”Us in the U.S. and U.K., along with uncertainty in its other operations, as well as retail inventory overhang, primarily in Europe.

First quarter 2018 Franchise Brand revenues decreased 19% to $361.7 million. Growth in MONOPOLY was offset by declines in all other Franchise Brands in the quarter. Franchise Brand revenues grew in the Entertainment and Licensing segment and declined in the U.S. and Canada and International segments.

Partner Brand revenues declined 6% to $200.6 million. Revenue growth in MARVEL and BEYBLADE was more than offset by declines in other Partner Brands. Partner Brand revenues increased slightly in the U.S. and Canada segment, but declined in the International segment.

Hasbro Gaming revenue decreased 22% to $105.2 million. Revenue gains in DUNGEONS AND DRAGONS, JENGA and several new game launches were offset by declines in other properties. Hasbro’s total gaming category was down 20% to $203.5 million. Hasbro Gaming revenues declined in all three major operating segments.

Emerging Brands revenue declined 6% to $48.8 million. Revenue increases from STRETCH ARMSTRONG and LITTLEST PET SHOP products were offset by declines in other Emerging Brands. Emerging Brands revenues grew in the Entertainment and Licensing segment and declined in the U.S. and Canada and International segments.

Dividend and Share Repurchase

The Company paid $70.8 million in cash dividends to shareholders during the first quarter 2018. The next quarterly cash dividend payment of $0.63 per common share is scheduled for May 15, 2018 to shareholders of record at the close of business on May 1, 2018.

During the first quarter, Hasbro repurchased 427.1 thousand shares of common stock at a total cost of $38.8 million and an average price of $90.81 per share. At quarter-end, $139.2 million remained available in the current share repurchase authorization.

Non-GAAP Adjustments

During the first quarter, the Company recorded lower revenues in part due to the loss of revenues from Toys“R”Us in the U.S. and Europe, as a result of the related liquidations as well as uncertainty in the other Toys“R”Us operations. In association with this, the Company recorded after-tax expenses of $61.4 million, primarily bad debt.

Hasbro also recorded $15.7 million of after tax expense associated with accelerating its commercial organization transformation. Over the past several years, the Company has invested in developing an omni-channel retail presence, and in 2018 is bringing onboard new skill sets and talent to lead in today’s converged retail environment. These actions were initially planned to occur over time, commencing later this year. Given the current retail environment the Company chose to accelerate its actions.

In 2017, the Company recognized a provisional net charge of $296.5 million from the U.S. Tax Cuts and Jobs Act. Additional changes and guidance issued since year end resulted in a first quarter 2018 charge of $47.8 million, or $0.38 per diluted share. This charge is related to an increase in the Company’s repatriation tax liability and a reversal of tax benefits no longer permitted under the new guidance. The Company expects its full-year underlying tax rate to be at the high end of its previously projected range of 15% to 17%.

Conference Call Webcast

Hasbro will webcast its first quarter 2018 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, BABY ALIVE and MAGIC: THE GATHERING, as well as premier partner brands. Through its entertainment labels, Allspark Pictures and Allspark Animation, the Company is building its brands globally through great storytelling and content on all screens. Hasbro is committed to making the world a better place for children and their families through corporate social responsibility and philanthropy. Hasbro ranked No. 1 on the 2017 100 Best Corporate Citizens list by CR Magazine, and has been named one of the World’s Most Ethical Companies® by Ethisphere Institute for the past seven years. Learn more at www.hasbro.com, and follow us on Twitter (@Hasbro & @HasbroNews) and Instagram (@Hasbro).

© 2018 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 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 recover the Company’s costs and earn a profit; (ii) downturns in economic conditions impacting one or more of the markets in which the Company sells products, such as the economic downturns which impacted the United Kingdom and Brazil in 2017, which can negatively impact the Company’s retail customers and consumers, and which can result in lower employment levels, lower consumer disposable income, lower retailer inventories and lower 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) consumer interest in entertainment properties, such as motion pictures, for which the Company is developing and marketing products, and the ability to drive sales of products associated with such entertainment properties, (v) potential difficulties or delays the Company may experience in implementing cost savings and efficiency enhancing initiatives; (vi) 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; (vii) 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; (viii) 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; (ix) 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; (x) 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; (xi) delays, increased costs or difficulties associated with any of our or our partners’ planned digital applications or media initiatives; (xii) work disruptions, which may impact the Company's ability to manufacture or deliver product in a timely and cost-effective manner; (xiii) the bankruptcy or other lack of success of one of the Company's significant retailers, such as the bankruptcy of Toys“R”Us in the United States and Canada in the fourth quarter of 2017 and the beginning of liquidation of those businesses, as well as economic difficulty of Toys“R”Us in other markets, which could negatively impact the Company's revenues or bad debt exposure; (xiv) 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; (xv) 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, including without limitation, the potential application of tariffs to products the Company purchases from vendors in China, which would significantly increase the price of the Company’s products and harm sales; (xvi) the risk of product recalls or product liability suits and costs associated with product safety regulations; (xvii) 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; (xviii) changes in tax laws or regulations, or the interpretation and application of such laws and regulations, such as what may occur as the U.S. Tax Cuts and Jobs Act is interpreted and applied, which may cause the Company to alter tax reserves or make other changes which significantly impact its reported financial results; (xix) the impact of litigation or arbitration decisions or settlement actions; and (xx) 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 non-GAAP financial measures as defined under SEC rules, specifically Adjusted net earnings and adjusted earnings per diluted share, excluding the impact of charges associated with the Toys“R”Us liquidation; severance costs and U.S. tax reform in the first quarter of 2018, as well as adjusted operating profit absent the impact of the charges associated with the Toys“R”Us liquidation and severance costs. Also included in the financial tables attached to this release are the non-GAAP financial measures of EBITDA and Adjusted EBITDA. EBITDA represents net earnings attributable to Hasbro, Inc. excluding interest expense, income taxes, depreciation and amortization. Adjusted EBITDA also excludes the impact of charges associated with the Toys“R”Us liquidation and severance costs in the first quarter of 2018. As required by SEC rules, we have provided reconciliation on the attached schedule of these measures to the most directly comparable GAAP measure. Management believes that Adjusted net earnings, Adjusted earnings per diluted share and adjusted operating profit absent the impact of charges associated with the Toys“R”Us liquidation and severance costs in the first quarter of 2018 provides investors with an understanding of the underlying performance of the Company’s business absent these unusual events. Management believes that EBITDA and Adjusted EBITDA are appropriate measures for evaluating the operating performance of the Company because they reflect the resources available for strategic opportunities including, among others, to invest in the business, strengthen the balance sheet and make strategic acquisitions. These non-GAAP measures 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

Second quarter 2018 revenues of $904.5 million;
U.S. and Canada segment revenues down 7%; International segment revenues down 11%; Entertainment and Licensing revenues up 26%;
Operating profit margin of 9.7%;
Reported net earnings of $60.3 million, or $0.48 per diluted share;
Strengthened brand portfolio with acquisition of POWER RANGERS;
Ended the quarter with $1.2 billion in cash and returned $152.8 million to shareholders; $78.7 million in dividends and $74.1 million in share repurchases.

PAWTUCKET, R.I.--(BUSINESS WIRE)--Jul. 23, 2018-- Hasbro, Inc. (NASDAQ: HAS) today reported financial results for the second quarter 2018. Net revenues for the second quarter 2018 decreased 7% to $904.5 million versus $972.5 million in 2017. The lower revenues reflect the liquidation of Toys“R”Us in the U.S. and many other global markets. In addition, revenues declined internationally, most notably in Europe, as a result of managing retail inventory amid a rapidly evolving retail landscape.

Net earnings for the second quarter 2018 were $60.3 million, or $0.48 per diluted share, compared to $67.7 million, or $0.53 per diluted share, for the second quarter of 2017.

“2018 is unfolding as expected as our teams manage the liquidation of Toys“R”Us in many markets and address the rapidly evolving European retail landscape,” said Brian Goldner, Hasbro’s chairman and chief executive officer. “We are investing in our business - in innovation, entertainment and a modern global commercial organization, to drive profitable growth in 2019 and beyond. Consumer takeaway is up for our brands, and we further strengthened our brand portfolio through the acquisition of POWER RANGERS. We are focused on moving beyond the near-term disruption of losing a major customer, with a clear path forward including new retailer activations to meet the consumer demand made available by the Toys“R”Us departure.”

“Our global teams executed well despite the disruption in the market,” said Deborah Thomas, Hasbro’s chief financial officer. “With $1.2 billion in cash, and a healthy balance sheet, our financial position is strong. Our diverse portfolio enabled us to partially offset the negative margin impact from lower revenues, but not entirely. We are working with our retailers to successfully execute their plans for Hasbro’s innovative portfolio this holiday season.”

Second Quarter 2018 Major Segment Performance

Net Revenues ($ Millions) Operating Profit ($ Millions)
Q2 2018 Q2 2017 % Change Q2 2018 Q2 2017 % Change
U.S. and Canada $459.3 $494.4 -7% $76.2 $81.6 -7%
International $380.4 $426.6 -11% $0.2 $16.9 -99%
Entertainment and Licensing $64.7 $51.5 +26% $18.6 $11.3 +64%


Second quarter 2018 U.S. and Canada segment net revenues decreased 7% to $459.3 million compared to $494.4 million in 2017. The segment reported an operating profit of $76.2 million, or 16.6% of net revenues, compared to an operating profit of $81.6 million, or 16.5% of net revenues, in 2017. The segment’s quarterly performance was negatively impacted by the loss of Toys“R”Us revenues and the near-term disruption of its stores’ liquidation in the marketplace. Favorable product mix helped offset the negative impact of lower revenues on operating profit margin.

Second quarter 2018 International segment net revenues were $380.4 million, down 11%, compared to $426.6 million in 2017. Revenues in the segment were negatively impacted by efforts to clear excess retail inventory in Europe, as well as the loss of Toys“R”Us revenues in many Europe and Asia Pacific markets. International segment revenues include a favorable $2.6 million impact of foreign exchange. On a regional basis, Europe net revenues decreased 16%, Latin America decreased 3% and Asia Pacific decreased 5%. Emerging markets net revenues decreased 9% in the quarter. The International segment reported an operating profit of $0.2 million compared to an operating profit of $16.9 million in 2017. The decline in operating profit reflects lower revenues combined with fixed cost deleveraging.

Entertainment and Licensing segment net revenues increased 26% to $64.7 million compared to $51.5 million in 2017. Operating profit increased 64% to $18.6 million, or 28.8% of net revenues, compared to $11.3 million, or 22.0% of net revenues, in 2017. The adoption of ASC 606 Revenue from Contracts with Customers favorably impacted the timing of revenue recognition in the quarter, in addition to the continued underlying success in our licensing and entertainment businesses.

Second Quarter 2018 Brand Portfolio Performance




Net Revenues ($ Millions)
Q2 2018 Q2 2017 % Change

Six Months
2018


Six Months
2017
% Change
Franchise Brands $506.5 $552.4 -8% $868.2 $1,001.6 -13%
Partner Brands $208.0 $230.0 -10% $408.6 $443.0 -8%
Hasbro Gaming* $134.3 $133.9 -- $239.5 $269.6 -11%
Emerging Brands $55.6 $56.2 -1% $104.5 $108.0 -3%

*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 $312.8 million for the second quarter 2018, up 14%, versus $273.3 million in the second quarter 2017.This category was down 2% to $516.3 million for the six months 2018 versus $526.6 million for the six months 2017.Hasbro believes its gaming portfolio is a competitive differentiator and views it in its entirety.

Second quarter 2018 revenues were negatively impacted by the liquidation of Toys“R”Us in the U.S. and many other global markets, including lower Toys“R”Us revenues and the near-term disruption of its stores’ liquidation in the marketplace, as well as managing retail inventory, primarily in Europe.

Second quarter 2018 Franchise Brand revenues decreased 8% to $506.5 million. Growth in MAGIC: THE GATHERING, MONOPOLY and BABY ALIVE were offset by declines in the other Franchise Brands in the quarter, including TRANSFORMERS which declined versus the movie launch in the second quarter 2017. Franchise Brand revenues grew in the Entertainment and Licensing segment and declined in the U.S. and Canada and International segments.

Partner Brand revenues declined 10% to $208.0 million. Revenue growth in BEYBLADE and MARVEL was more than offset by declines in other Partner Brands. Partner Brand revenues decreased in the U.S. and Canada and International segments.

Hasbro Gaming revenue increased slightly to $134.3 million. Revenue gains in DUNGEONS and DRAGONS, DUEL MASTER, JENGA and DON’T STEP IN IT were partially offset by declines in other properties. Hasbro Gaming revenues increased in the International segment and the Entertainment and Licensing segment; but declined in the U.S. and Canada segment. Hasbro’s total gaming category was up 14% to $312.8 million, including growth in MAGIC: THE GATHERING and MONOPOLY.

Emerging Brand revenue declined 1% to $55.6 million. The category benefited from several new initiatives, including LOST KITTIES and LOCK STARS. This was offset by declines in other Emerging Brands. Emerging Brands revenues grew in the International segment and declined in the U.S. and Canada segment and the Entertainment and Licensing segment.

Dividend and Share Repurchase

The Company paid $78.7 million in cash dividends to shareholders during the second quarter 2018. The next quarterly cash dividend payment of $0.63 per common share is scheduled for August 15, 2018 to shareholders of record at the close of business on August 1, 2018.

During the second quarter, Hasbro repurchased 820,343 shares of common stock at a total cost of $74.1 million and an average price of $90.33 per share. Through the first six months of 2018, the Company repurchased 1.2 million shares of common stock at a total cost of $112.9 million and an average price of $90.50. At quarter-end, $565.1 million remained available in the current share repurchase authorizations, including the additional $500 million authorized by the Board of Directors during the second quarter.

Conference Call Webcast

Hasbro will webcast its second quarter 2018 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, BABY ALIVE and MAGIC: THE GATHERING, as well as premier partner brands. Through its entertainment labels, Allspark Pictures and Allspark Animation, the Company is building its brands globally through great storytelling and content on all screens. Hasbro is committed to making the world a better place for children and their families through corporate social responsibility and philanthropy. Hasbro ranked No. 1 on the 2017 100 Best Corporate Citizens list by CR Magazine and has been named one of the World’s Most Ethical Companies® by Ethisphere Institute for the past seven years. Learn more at www.hasbro.com and follow us on Twitter (@Hasbro & @HasbroNews) and Instagram (@Hasbro).

© 2018 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 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 recover the Company’s costs and earn a profit; (ii) downturns in economic conditions impacting one or more of the markets in which the Company sells products, such as the economic downturns which impacted the United Kingdom and Brazil in 2017, which can negatively impact the Company’s retail customers and consumers, and which can result in lower employment levels, lower consumer disposable income, lower retailer inventories and lower 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) consumer interest in entertainment properties, such as motion pictures, for which the Company is developing and marketing products, and the ability to drive sales of products associated with such entertainment properties; (v) potential difficulties or delays the Company may experience in implementing cost savings and efficiency enhancing initiatives; (vi) 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; (vii) 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; (viii) 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; (ix) 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; (x) 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; (xi) delays, increased costs or difficulties associated with any of our or our partners’ planned digital applications or media initiatives; (xii) work disruptions, which may impact the Company's ability to manufacture or deliver product in a timely and cost-effective manner; (xiii) the bankruptcy or other lack of success of one of the Company's significant retailers, such as the bankruptcy of Toys“R”Us in the United States and Canada in the fourth quarter of 2017 and the beginning of liquidation of those businesses, as well as economic difficulty of Toys“R”Us in other markets, which could negatively impact the Company's revenues or bad debt exposure; (xiv) 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; (xv) 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, including without limitation, the potential application of tariffs to products the Company purchases from vendors in China, which would significantly increase the price of the Company’s products and harm sales; (xvi) the risk of product recalls or product liability suits and costs associated with product safety regulations; (xvii) 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; (xviii) changes in tax laws or regulations, or the interpretation and application of such laws and regulations, such as what may occur as the U.S. Tax Cuts and Jobs Act is interpreted and applied, which may cause the Company to alter tax reserves or make other changes which significantly impact its reported financial results; (xix) the impact of litigation or arbitration decisions or settlement actions; and (xx) 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.

The financial tables accompanying this press release include non-GAAP financial measures as defined under SEC rules, specifically Adjusted net earnings and Adjusted earnings per diluted share, excluding the impact of charges associated with the Toys“R”Us liquidation; severance costs and U.S. tax reform in the first quarter of 2018, as well as Adjusted operating profit absent the impact of the charges associated with the Toys“R”Us liquidation and severance costs. Also included in the financial tables are the non-GAAP financial measures of EBITDA and Adjusted EBITDA. EBITDA represents net earnings attributable to Hasbro, Inc. excluding interest expense, income taxes, depreciation and amortization. Adjusted EBITDA also excludes the impact of charges associated with the Toys“R”Us liquidation and severance costs in the first quarter of 2018. As required by SEC rules, we have provided reconciliations on the attached schedules of these measures to the most directly comparable GAAP measure. Management believes that Adjusted net earnings, Adjusted earnings per diluted share and Adjusted operating profit absent the impact of charges associated with the Toys“R”Us liquidation and severance costs in the first quarter of 2018 provides investors with an understanding of the underlying performance of the Company’s business absent these unusual events. Management believes that EBITDA and Adjusted EBITDA are appropriate measures for evaluating the operating performance of the Company because they reflect the resources available for strategic opportunities including, among others, to invest in the business, strengthen the balance sheet and make strategic acquisitions. These non-GAAP measures 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

carytheone wrote:So if they're moving production out of China, does that mean less cheap KOs?

Flashwave wrote:

carytheone wrote:So if they're moving production out of China, does that mean less cheap KOs?

Thats an Interesting question, but I doubt it. It may depend on what moves and where. the first link says "Back Stateside" and the others just say "Out of China." the Model Train Manufacturers have been going to Vietnam I believe, so the Toy Makers may follow suit.

Samantha Lomow promoted to President, Hasbro Entertainment Brands; Jonathan Berkowitz promoted to President, Hasbro Brands

PAWTUCKET, R.I.—Hasbro, Inc. (NASDAQ: HAS) today announced the promotion of Samantha Lomow to President, Hasbro Entertainment Brands, and Jonathan Berkowitz to President, Hasbro Brands. Both leaders will continue to report to John Frascotti, Hasbro President and Chief Operating Officer.

“Samantha and Jonathan are exceptional leaders, passionate about innovation and dedicated to our mission to create the world’s best play experiences,” said Frascotti. “We are confident that in their new roles, they will help us accelerate the momentum behind our business and brands.”

During her 18-year tenure at the company, Ms. Lomow has played a tremendous role in growing Hasbro brands and expanding them beyond the toy space. She has been instrumental in the TRANSFORMERS franchise since the first movie in 2007, and she helped bring MY LITTLE PONY to the big screen for the first time.

In her new role, she will be responsible for leading all of Hasbro’s current, new and vault entertainment-driven, story-led brands. This includes oversight for MY LITTLE PONY, TRANSFORMERS and POWER RANGERS, among others, and continuing to partner with Allspark on emerging entertainment brands. She will also continue to lead Hasbro’s strategic partner portfolio, including relationships with The Walt Disney Company, Universal, Nickelodeon, Sesame Workshop and Blizzard Entertainment.

In his 15 years at Hasbro, Mr. Berkowitz has led a number of brands across the portfolio, including NERF, which he led to its Franchise Brand status in 2011. Most recently, he has overseen the Hasbro Gaming portfolio, which has grown significantly under his leadership with new products and brands, as well as reimagined classics. He has also been instrumental in rolling out the Company’s Quick Strike approach, which has become an important differentiator for Hasbro in getting trends and new product ideas to market in record time.

In his new role, Mr. Berkowitz will oversee the Hasbro Gaming portfolio, including MONOPOLY, as well as NERF, PLAY-DOH, BABY ALIVE, FURREAL, and initiatives driven by the Quick Strike team, among others. He will also manage all new and vault brands not driven by entertainment.

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, BABY ALIVE and MAGIC: THE GATHERING, as well as premier partner brands. Through its entertainment labels, Allspark Pictures and Allspark Animation, the Company is building its brands globally through great storytelling and content on all screens. Hasbro is committed to making the world a better place for children and their families through corporate social responsibility and philanthropy. Hasbro ranked No. 5 on the 2018 100 Best Corporate Citizens list by CR Magazine and has been named one of the World’s Most Ethical Companies® by Ethisphere Institute for the past seven years. Learn more at www.hasbro.com, and follow us on Twitter (@Hasbro & @HasbroNews) and Instagram (@Hasbro).

© 2018 Hasbro, Inc. All Rights Reserved.

Caelus wrote:*Cue triggered misogynists whinging about a woman being promoted to a leadership role.*

While the company won't confirm layoffs, Hasbro said Wednesday it is making "meaningful organizational changes" that will affect "a single-digit percentage" of its global workforce.

The Providence-based toymaker sent a statement to Eyewitness News after inquiries about possible layoffs at the company.

"While some of these changes are difficult, we must ensure we have the right teams in place with the right capabilities to lead the company into the future," spokeswoman Julie Duffy said in a statement. "We continue to add new capabilities based on our understanding of the consumer and how our retailers are going to market, while evolving the way we organize our business across our Brand Blueprint."

The announcement of Hasbro making changes comes a day after Pomerantz Law Firm said that it is investigating claims on behalf of investors of Hasbro, Inc. as to whether Hasbro and certain of its officers and/or directors "have engaged in securities fraud or other unlawful business practices."

"The claims have no merit and we intend to vigorously defend against them," said Duffy and that the staff cuts are unrelated.

According to reports, in October of 2017 Hasbro said they saw a 5% decline in the Company’s U.S. and Canada segment’s operating profit to $217.3 million, compared to $228 million in 2016.

After the disclosures, Hasbro’s stock dropped $8.44 per share and closed at $89.75 per share on October 23, 2017.

AcademyofDrX wrote:The excerpt below is directly from PR wire copy:

"According to the lawsuit, defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (1) Hasbro's relationship with Toys ''R'' Us was becoming increasingly important to Hasbro's business, but Toys ''R'' Us was in far worse financial condition than was being publicly reported; (2) Hasbro was experiencing significant undisclosed adverse sales issues in two key markets - the United Kingdom and Brazil - which were negatively impacting Hasbro's efforts to grow sales in those markets; and (3) as a result of foregoing, defendants' statements about Hasbro's business and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages."

Companies are required by law to tell their shareholders how their business is doing. These statements have to be truthful. The alleged fraud is basically that before the TRU bankruptcy, Hasbro said that things were okay, and after they weren't very okay. That's the gist of it. Ther no expectation that there are fudged numbers in a ledger, but if Hasbro knew the risks of the bankruptcy and didn't tell investors, that would make those statements false. I wouldn't recommend reading too much into this stuff.

fenrir72 wrote:This is SERIOUS folks!

Hb has its mitts on TF, SW,Marvel and Disney! The last 3 are Disney territory. Whether we like to admit it or not, SW and Marvel have been getting a bit too left political, heck, even ESPN (another Disney property) aka the boring sports channel because it no longer talks about sports has suffered greatly with low ratings and subscribers leaving.

https://awfulannouncing.com/espn/bob-ig ... field.html

Nothing wrong being SJW and all but there is a time and place for it (not with our suspension of disbelief hobbies playtime). Not to mention a recent study (see link)

https://www.moreincommon.com/hidden-tribes/ I

shows only about 8% to 10% of the American populace are the noisy nutjobs! The rest are just the busy normal average Joe and Jane who care for nothing of the white noise (i.e. APOLITICAL).

Yet when big companies like Disney placate to these groups who don't even invest (i.e. SPEND) in such products, alienating the silent majority, ..........there bye damaging the brand.

Trouble is, it was Hb who also got hit with huge INVENTORIES of unsold SW products (Marvel Comics isn't doing too good either). I am willing to bet this took a huge chunk of the "black" Hb profits leading it to bleed red (don't get me started with the clusterfrck of the last two TF movies and the overkill with Bumblebee).

Let's pray that Hb and its stockholders recover from this or ELSE......might take TF down with them in the drain.

fenrir72 wrote::-(

Coptur wrote:Truth hurts?

ScottyP wrote:

fenrir72 wrote::-(

This was a poorly written, borderline irrelevant post that reflects poorly on the Seibertron.com community. I urge you to do better in the future and focus on the facts presented rather than associate them with carefully selected talking points that have nothing to do with the article posted.

Short Circuit wrote:I didn't realize children's toy companies including messages of inclusiveness, diversity, honor, and the like counts as "leaning towards the left." But then again, I'm not paranoid.

Black Hat wrote:In the case of SW especially, not helped IMO by how bad some of those figures look. Like, I know a pocket money toy is never going to stand up to a Figuarts, but when the majority of the figures on sale are these mushy little 5POA things that wouldn't look out of place in the late 70s (and don't even have the same charm as the older figures) and the few decently poseable figures are too expensive for the young 'uns (£20 is a lot for a 6" figure in the context of little Jimmy's pocket money) and too poorly made for us overgrown children (compared to the Figuarts or Mafex offerings, Hasbro's SW figures just aren't very good) you can see why they didn't exactly fly off shelves.

AcademyofDrX wrote:Just a quick note for everyone: the lawsuit alleges misrepresentation, but is not itself evidence of fraud. The suit itself basically boils down to a very simple idea: the collapse of TRU had a significant impact on Hasbro's business and Hasbro knew more about the risk from TRU than they disclosed to investors. This kind of thing happens all the time when there are big stock drops.

I mention all of this as a casual observer, I have no personal or professional stake in any of this. Lawsuits are never good news, but there's nothing in this that should concern casual toy collectors. This is up to their legal teams and insurance.