Hasbro Reports Financial Results for the Third Quarter 2015

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If you own Hasbro stocks or are in fact some sort of math-masochist you might be interested in getting your eyes on the latest financial reports for Q3 2015. Take a look below for the complete report.

Hasbro, Inc.

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 of $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.–(BUSINESS WIRE)– 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 $1.58per 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 Q3 2015 Q3 2014 % Change
U.S. and Canada $803.8 $764.3 +5% $187.1 $169.9 +10%
International $612.6 $649.3 -6% $114.2 $116.5 -2%
Entertainment and Licensing $52.1 $53.4 -2% $16.2 $0.5 +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

Net Revenues ($ Millions)
Q3 2015 Q3 2014 % Change Nine Months
2015
Nine Months
2014
% Change
Boys $593.1 $478.5 +24% $1,206.1 $1,062.1 +14%
Games $363.5 $395.2 -8% $810.7 $841.4 -4%
Girls $294.8 $407.7 -28% $539.4 $710.2 -24%
Preschool $219.6 $188.5 +17% $425.9 $364.8 +17%

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 Franchise Brand PLAY-DOH, along with shipments of PLAYSKOOL HEROES STAR WARS GALACTIC HEROES and JURASSIC WORLD as well as the launch of PLAYSKOOL FRIENDS MY LITTLE PONY more than offset revenue declines in core PLAYSKOOL products.

Dividend and Share Repurchase

The Company paid $57.5 million in cash dividends to shareholders during the third quarter 2015. The next quarterly cash dividend payment of $0.46 per common share is scheduled for November 16, 2015 to shareholders of record at the close of business on November 2, 2015.

During the third quarter, Hasbro repurchased 338,077 shares of common stock at a total cost of $26.0 million and an average price of $76.88 per share. Through the first three quarters, the Company repurchased 1.09 million shares of common stock at a total cost of $72.8 million and an average price of $67.07 per share. At quarter-end, $491.3 million remained available in the current share repurchase authorization.

Conference Call Webcast

Hasbro will webcast its third quarter 2015 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

About Hasbro: Hasbro (NASDAQ: HAS) is a global company committed to Creating the World’s Best Play Experiences, by leveraging its beloved brands, including LITTLEST PET SHOP, MAGIC: THE GATHERING, MONOPOLY, MY LITTLE PONY, NERF, PLAY-DOH and TRANSFORMERS, and premier partner brands. From toys and games, television programming, motion pictures, digital gaming and lifestyle licensing, Hasbro fulfills the fundamental need for play and connection with children and families around the world. The Company’s Hasbro Studios and its film label, ALLSPARK PICTURES, create entertainment brand-driven storytelling across mediums, including television, film, digital and more. Through the Company’s commitment to corporate social responsibility, including philanthropy, Hasbro is helping to build a safe and sustainable world and to positively impact the lives of millions of children and families. Learn more at www.hasbro.com, and follow us on Twitter (@Hasbro & @HasbroNews) and Instagram (@Hasbro).

© 2015 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, including with respect to anticipated future benefits from investments in the Company’s business and strategic efforts to grow the Company’s brand portfolio and content delivery over the longer-term, and the Company’s ability to achieve its other financial and business goals and may be identified by the use of forward-looking words or phrases. The Company’s actual actions or results may differ materially from those expected or anticipated in the forward-looking statements due to both known and unknown risks and uncertainties. Specific factors that might cause such a difference include, but are not limited to: (i) the Company’s ability to design, develop, produce, manufacture, source and ship products on a timely and cost-effective basis, as well as interest in and purchase of those products by retail customers and consumers in quantities and at prices that will be sufficient to profitably recover the Company’s costs; (ii) downturns in economic conditions affecting the Company’s markets which can negatively impact the Company’s retail customers and consumers, and which can result in lower employment levels, lower consumer disposable income and spending, including lower spending on purchases of the Company’s products; (iii) other factors which can lower discretionary consumer spending, such as higher costs for fuel and food, drops in the value of homes or other consumer assets, and high levels of consumer debt; (iv) potential difficulties or delays the Company may experience in implementing cost savings and efficiency enhancing initiatives; (v) other economic and public health conditions or regulatory changes in the markets in which the Company and its customers and suppliers operate which could create delays or increase the Company’s costs, such as higher commodity prices, labor costs or transportation costs, or outbreaks of disease; (vi) currency fluctuations, including movements in foreign exchange rates, which can lower the Company’s net revenues and earnings, and significantly impact the Company’s costs; (vii) the concentration of the Company’s customers, potentially increasing the negative impact to the Company of difficulties experienced by any of the Company’s customers or changes in their purchasing or selling patterns; (viii) consumer interest in and acceptance of the Discovery Family Channel, and programming created by Hasbro Studios, and other factors impacting the financial performance of the network and Hasbro Studios; (ix) the inventory policies of the Company’s retail customers, including retailers’ potential decisions to lower their inventories, even if it results in lost sales, as well as the concentration of the Company’s revenues in the second half and fourth quarter of the year, which coupled with reliance by retailers on quick response inventory management techniques increases the risk of underproduction of popular items, overproduction of less popular items and failure to achieve compressed shipping schedules; (x) delays, increased costs or difficulties associated with any of our or our partners’ planned digital applications or media initiatives; (xi) work disruptions, which may impact the Company’s ability to manufacture or deliver product in a timely and cost-effective manner; (xii) the bankruptcy or other lack of success of one of the Company’s significant retailers which could negatively impact the Company’s revenues or bad debt exposure; (xiii) the impact of competition on revenues, margins and other aspects of the Company’s business, including the ability to offer Company products which consumers choose to buy instead of competitive products, the ability to secure, maintain and renew popular licenses and the ability to attract and retain talented employees; (xiv) concentration of manufacturing for many of the Company’s products in the People’s Republic of China and the associated impact to the Company of social, economic or public health conditions and other factors affecting China, the movement of products into and out of China, the cost of producing products in China and exporting them to other countries; (xv) the risk of product recalls or product liability suits and costs associated with product safety regulations; (xvi) the impact of other market conditions, third party actions or approvals and competition which could reduce demand for the Company’s products or delay or increase the cost of implementation of the Company’s programs or alter the Company’s actions and reduce actual results; (xvii) the impact of litigation or arbitration decisions or settlement actions; and (xviii) other risks and uncertainties as may be detailed from time to time in the Company’s public announcements and Securities and Exchange Commission (“SEC”) filings. The Company undertakes no obligation to make any revisions to the forward-looking statements contained in this release or to update them to reflect events or circumstances occurring after the date of this release.

This press release includes a non-GAAP financial measure as defined under SEC rules, specifically EBITDA. EBITDA represents net earnings attributable to Hasbro, Inc. excluding net loss attributable to noncontrolling interests, interest expense, income taxes, depreciation and amortization. As required by SEC rules, we have provided reconciliation on the attached schedule of this measure to the most directly comparable GAAP measure. Management believes that EBITDA is one of the appropriate measures for evaluating the operating performance of the Company because it reflects the resources available for strategic opportunities including, among others, to invest in the business, strengthen the balance sheet, and make strategic acquisitions.

The press release also includes the Company’s 2015 cost and expenses, operating profit, earnings before income taxes, net earnings and diluted earnings per share excluding the impact of the sale of the Company’s manufacturing operations in East Longmeadow, MA and Waterford, Ireland as well as the Company’s 2014 cost and expenses, operating profit, earnings before income taxes, net earnings and diluted earnings per share excluding the impact of the restructuring of the Company’s investment in its joint television network in 2014. Management believes that presenting this data excluding these impacts assists investors in understanding the performance of the Company’s underlying business and the results of operations. These 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

(Tables Attached)

HASBRO, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Thousands of Dollars)
Sept. 27, 2015 Sept. 28, 2014
ASSETS
Cash and Cash Equivalents $ 551,292 $ 452,184
Accounts Receivable, Net 1,390,274 1,314,022
Inventories 447,090 499,150
Other Current Assets 389,460 380,833
Total Current Assets 2,778,116 2,646,189
Property, Plant and Equipment, Net 219,656 228,019
Other Assets 1,582,474 1,634,594
Total Assets $ 4,580,246 $ 4,508,802
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND SHAREHOLDERS’ EQUITY
Short-term Borrowings $ 113,970 $ 78,023
Payables and Accrued Liabilities 936,526 936,005
Total Current Liabilities 1,050,496 1,014,028
Long-term Debt 1,559,895 1,559,895
Other Liabilities 385,845 392,366
Total Liabilities 2,996,236 2,966,289
Redeemable Noncontrolling Interests 41,173 43,949
Total Shareholders’ Equity 1,542,837 1,498,564
Total Liabilities, Redeemable Noncontrolling Interests and Shareholders’ Equity $ 4,580,246 $ 4,508,802
HASBRO, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Quarter Ended Nine Months Ended
(Thousands of Dollars and Shares Except Per Share Data) Sept. 27,
2015
% Net
Revenues
Sept. 28,
2014
% Net
Revenues
Sept. 27,
2015
% Net
Revenues
Sept. 28,
2014
% Net
Revenues
Net Revenues $ 1,470,997 100.0 % $ 1,469,899 100.0 % $ 2,982,155 100.0 % $ 2,978,614 100.0 %
Costs and Expenses:
Cost of Sales 579,149 39.4 % 602,766 41.0 % 1,122,283 37.6 % 1,181,647 39.7 %
Royalties 113,950 7.7 % 94,352 6.4 % 230,108 7.7 % 214,466 7.2 %
Product Development 64,793 4.4 % 58,220 4.0 % 174,299 5.8 % 157,184 5.3 %
Advertising 142,029 9.7 % 147,492 10.0 % 288,136 9.7 % 296,444 10.0 %
Amortization of Intangibles 9,031 0.6 % 12,809 0.9 % 35,330 1.2 % 38,103 1.3 %
Program Production Cost Amortization 11,496 0.8 % 24,374 1.7 % 29,812 1.0 % 35,742 1.2 %
Selling, Distribution and Administration 247,022 16.8 % 244,072 16.6 % 668,955 22.4 % 643,202 21.6 %
Operating Profit 303,527 20.6 % 285,814 19.4 % 433,232 14.5 % 411,826 13.8 %
Interest Expense 24,045 1.6 % 24,710 1.7 % 72,816 2.4 % 69,940 2.3 %
Other (Income) Expense, Net (5,135 ) -0.3 % 17,050 1.2 % (12,162 ) -0.4 % 7,320 0.2 %
Earnings before Income Taxes 284,617 19.3 % 244,054 16.6 % 372,578 12.5 % 334,566 11.2 %
Income Taxes 78,242 5.3 % 63,899 4.3 % 100,100 3.4 % 90,077 3.0 %
Net Earnings 206,375 14.0 % 180,155 12.3 % 272,478 9.1 % 244,489 8.2 %
Net Loss Attributable to Noncontrolling Interests (1,224 ) -0.1 % (302 ) 0.0 % (3,597 ) -0.1 % (1,530 ) -0.1 %
Net Earnings Attributable to Hasbro, Inc. $ 207,599 14.1 % $ 180,457 12.3 % $ 276,075 9.3 % $ 246,019 8.3 %
Per Common Share
Net Earnings Attributable to Hasbro, Inc.
Basic $ 1.66 $ 1.42 $ 2.21 $ 1.90
Diluted $ 1.64 $ 1.40 $ 2.18 $ 1.88
Cash Dividends Declared $ 0.46 $ 0.43 $ 1.38 $ 1.29
Weighted Average Number of Shares
Basic 125,100 127,293 125,016 129,302
Diluted 126,917 128,703 126,689 130,789
HASBRO, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Thousands of Dollars)
Nine Months Ended
Sept. 27, 2015 Sept. 28, 2014
Cash Flows from Operating Activities:
Net Earnings $ 272,478 $ 244,489
Non-cash Adjustments 174,372 144,320
Changes in Operating Assets and Liabilities (377,292 ) (361,983 )
Net Cash Provided by Operating Activities 69,558 26,826
Cash Flows from Investing Activities:
Additions to Property, Plant and Equipment (97,873 ) (78,255 )
Investments and Dispositions 15,632 64,400
Other 23,447 4,009
Net Cash Utilized by Investing Activities (58,794 ) (9,846 )
Cash Flows from Financing Activities:
Proceeds from Borrowings with Maturity Greater Than 3 Months 559,986
Repayments of Borrowings with Maturity Greater Than 3 Months (425,000 )
Net Proceeds from (Repayments of) Short-term Borrowings (138,101 ) 71,172
Purchases of Common Stock (74,110 ) (338,184 )
Stock-based Compensation Transactions 43,733 51,954
Dividends Paid (168,393 ) (162,789 )
Other 928
Net Cash Utilized by Financing Activities (335,943 ) (242,861 )
Effect of Exchange Rate Changes on Cash (16,696 ) (4,384 )
Cash and Cash Equivalents at Beginning of Year 893,167 682,449
Cash and Cash Equivalents at End of Period $ 551,292 $ 452,184
HASBRO, INC.
SUPPLEMENTAL FINANCIAL DATA
(Unaudited)
(Thousands of Dollars) Quarter Ended Nine Months Ended
Sept. 27,
2015
Sept. 28,
2014
% Change Sept. 27,
2015
Sept. 28,
2014
% Change
Major Segment Results
U.S. and Canada Segment:
External Net Revenues $ 803,824 $ 764,268 5 % $ 1,534,697 $ 1,484,968 3 %
Operating Profit 187,052 169,850 10 % 275,622 252,541 9 %
Operating Margin 23.3 % 22.2 % 18.0 % 17.0 %
International Segment:
External Net Revenues 612,645 649,284 -6 % 1,281,118 1,351,608 -5 %
Operating Profit 114,206 116,451 -2 % 141,470 148,097 -4 %
Operating Margin 18.6 % 17.9 % 11.0 % 11.0 %
Entertainment and Licensing Segment:
External Net Revenues 52,139 53,378 -2 % 160,410 135,915 18 %
Operating Profit 16,245 493 3,195 % 40,090 21,120 90 %
Operating Margin 31.2 % 0.9 % 25.0 % 15.5 %
International Segment Net Revenues by Major Geographic Region
Europe $ 389,024 $ 403,602 -4 % $ 770,555 $ 827,412 -7 %
Latin America 141,901 163,163 -13 % 297,877 313,466 -5 %
Asia Pacific 81,720 82,519 -1 % 212,686 210,730 1 %
Total $ 612,645 $ 649,284 $ 1,281,118 $ 1,351,608
Net Revenues by Product Category
Boys $ 593,094 $ 478,509 24 % $ 1,206,118 $ 1,062,082 14 %
Games 363,470 395,221 -8 % 810,748 841,449 -4 %
Girls 294,785 407,718 -28 % 539,401 710,235 -24 %
Preschool 219,648 188,451 17 % 425,888 364,848 17 %
Total Net Revenues $ 1,470,997 $ 1,469,899 $ 2,982,155 $ 2,978,614
Reconciliation of EBITDA
Net Earnings Attributable to Hasbro, Inc. $ 207,599 $ 180,457 $ 276,075 $ 246,019
Net Loss Attributable to Noncontrolling Interests (1,224 ) (302 ) (3,597 ) (1,530 )
Interest Expense 24,045 24,710 72,816 69,940
Income Taxes 78,242 63,899 100,100 90,077
Depreciation 35,644 32,458 86,393 82,536
Amortization of Intangibles 9,031 12,809 35,330 38,103
EBITDA $ 353,337 $ 314,031 $ 567,117 $ 525,145
HASBRO, INC.
SUPPLEMENTAL FINANCIAL DATA
GAIN ON SALE OF MANUFACTURING OPERATIONS AND RESTRUCTURING OF EQUITY METHOD INVESTMENT
(Unaudited)
(Thousands of Dollars)
Operating Profit, Excluding Gain on Sale of Manufacturing Operations and Restructuring of Equity Method Investment
Quarter Ended Sept. 27, 2015 As Reported Less Gain on
Sale on
Manufacturing
Operations
Excluding Gain
on Sale of
Manufacturing
Operations
% Net Revenues
Net Revenues $ 1,470,997 $ $ 1,470,997 100.0 %
Costs and Expenses:
Cost of Sales 579,149 579,149 39.4 %
Royalties 113,950 113,950 7.7 %
Product Development 64,793 64,793 4.4 %
Advertising 142,029 142,029 9.7 %
Amortization of Intangibles 9,031 9,031 0.6 %
Program Production Cost Amortization 11,496 11,496 0.8 %
Selling, Distribution and Administration 247,022 3,061 250,083 17.0 %
Operating Profit 303,527 (3,061 ) 300,466 20.4 %
Interest Expense 24,045 24,045 1.6 %
Other (Income) Expense, Net (5,135 ) 6,832 1,697 0.1 %
Earnings before Income Taxes $ 284,617 $ (9,893 ) $ 274,724 18.7 %
Nine Months Ended Sept. 27, 2015 As Reported Less Gain on
Sale on
Manufacturing
Operations
Excluding Gain
on Sale of
Manufacturing
Operations
% Net Revenues
Net Revenues $ 2,982,155 $ $ 2,982,155 100.0 %
Costs and Expenses:
Cost of Sales 1,122,283 1,122,283 37.6 %
Royalties 230,108 230,108 7.7 %
Product Development 174,299 174,299 5.8 %
Advertising 288,136 288,136 9.7 %
Amortization of Intangibles 35,330 35,330 1.2 %
Program Production Cost Amortization 29,812 29,812 1.0 %
Selling, Distribution and Administration 668,955 3,061 672,016 22.5 %
Operating Profit 433,232 (3,061 ) 430,171 14.4 %
Interest Expense 72,816 72,816 2.4 %
Other (Income) Expense, Net (12,162 ) 6,832 (5,330 ) -0.2 %
Earnings before Income Taxes $ 372,578 $ (9,893 ) $ 362,685 12.2 %
Quarter Ended Sept. 28, 2014 As Reported Less
Restructuring of
Equity Method
Investment
Excluding
Restructuring of
Equity Method
Investment
% Net Revenues
Net Revenues $ 1,469,899 $ $ 1,469,899 100.0 %
Costs and Expenses:
Cost of Sales 602,766 602,766 41.0 %
Royalties 94,352 2,328 96,680 6.6 %
Product Development 58,220 58,220 4.0 %
Advertising 147,492 147,492 10.0 %
Amortization of Intangibles 12,809 12,809 0.9 %
Program Production Cost Amortization 24,374 24,374 1.7 %
Selling, Distribution and Administration 244,072 (1,000 ) 243,072 16.5 %
Operating Profit 285,814 (1,328 ) 284,486 19.4 %
Interest Expense 24,710 24,710 1.7 %
Other (Income) Expense, Net 17,050 (12,894 ) 4,156 0.3 %
Earnings before Income Taxes $ 244,054 $ 11,566 $ 255,620 17.4 %
Nine Months Ended Sept. 28, 2014 As Reported Less
Restructuring of
Equity Method
Investment
Excluding
Restructuring of
Equity Method
Investment
% Net Revenues
Net Revenues $ 2,978,614 $ $ 2,978,614 100.0 %
Costs and Expenses:
Cost of Sales 1,181,647 1,181,647 39.7 %
Royalties 214,466 2,328 216,794 7.3 %
Product Development 157,184 157,184 5.3 %
Advertising 296,444 296,444 10.0 %
Amortization of Intangibles 38,103 38,103 1.3 %
Program Production Cost Amortization 35,742 35,742 1.2 %
Selling, Distribution and Administration 643,202 (1,000 ) 642,202 21.6 %
Operating Profit 411,826 (1,328 ) 410,498 13.8 %
Interest Expense 69,940 69,940 2.3 %
Other (Income) Expense, Net 7,320 (12,894 ) (5,574 ) -0.2 %
Earnings before Income Taxes $ 334,566 $ 11,566 $ 346,132 11.6 %
HASBRO, INC.
SUPPLEMENTAL FINANCIAL DATA
GAIN ON SALE OF MANUFACTURING OPERATIONS AND RESTRUCTURING OF EQUITY METHOD INVESTMENT
(Unaudited)
(Thousands of Dollars)
Net Earnings and Earnings per Share Excluding Gain on Sale of Manufacturing Operations and Restructuring of Equity Method Investment
Quarter Ended
Sept. 27, 2015 Diluted Per
Share Amount
Sept. 28, 2014 Diluted Per
Share Amount
Net Earnings Attributable to Hasbro, Inc., as Reported $ 207,599 $ 1.64 $ 180,457 $ 1.40
Restructuring of Equity Method Investment, Net of Tax       7,379 0.06
Gain on Sale of Manufacturing Operations (7,050 ) (0.06 )
Net Earnings Attributable to Hasbro, Inc., as Adjusted $ 200,549 $ 1.58 $ 187,836 $ 1.46
Nine Months Ended
Sept. 27, 2015 Diluted Per
Share Amount
Sept. 28, 2014 Diluted Per
Share Amount
Net Earnings Attributable to Hasbro, Inc., as Reported $ 276,075 $ 2.18 $ 246,019 $ 1.88
Restructuring of Equity Method Investment, Net of Tax 7,379 0.06
Gain on Sale of Manufacturing Operations (7,050 ) (0.06 )
Net Earnings Attributable to Hasbro, Inc., as Adjusted $ 269,025 $ 2.12 $ 253,398 $ 1.94

 

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Greg

Greg

Greg is the owner and operator of The Allspark website and social media. Since 1999, The Allspark has provided up to date news, information and discussion about Transformers, Comics, Video Games and everything in between.
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