PAWTUCKET, R.I. -- Jul 20, 2009 -- Second Quarter Highlights
- Net revenues of $792.2 million compared to $784.3 million a year ago, an increase of $7.9 million or 1% from a year ago, or an increase of 7% absent the impact of foreign exchange;
- Net earnings of $39.3 million or $0.26 per diluted share compared to $37.5 million or $0.25 per diluted share a year ago;
- Net earnings for the quarter include $0.06 per share dilutive impact from the investment in the joint venture with Discovery Communications and financing costs;
- Operating profit was $73.1 million or 9.2% of net revenues, compared to $65.5 million or 8.4% of net revenues last year;
- Revenue growth driven by strong performances from TRANSFORMERS, LITTLEST PET SHOP, GI JOE, NERF, TONKA and PLAY-DOH.
Hasbro, Inc. (NYSE: HAS) today reported net revenues of $792.2 million, compared to $784.3 million a year ago, an increase of 1%. Excluding the negative $44.5 million impact of foreign exchange, net revenues increased 7%. The Company reported net earnings of $39.3 million, or $0.26 per diluted share, compared to $37.5 million or $0.25 per diluted share in 2008. The 2009 second quarter results include a $0.06 per share dilutive impact from the Company's investment in its joint venture with Discovery Communications, inclusive of one-time deal expenses and financing costs associated with its recent issuance of long-term debt.
"Hasbro performed well in what continues to be a challenging global environment. Our ability to deliver growth in both revenue and earnings per share, while including the dilution from the investment in our joint venture with Discovery Communications, was due to broad based strength across Hasbro's core brand product portfolio and strong execution globally," said Brian Goldner, President and Chief Executive Officer.
"For the remainder of this year, we will continue to invest in our business and closely manage our expenses. While there are challenges in 2009, we believe that the underlying strength of our brands and our commitment to our strategy should enable Hasbro to grow revenue and earnings per share, including the impact of our television investment -- absent a material deterioration in the global economy and the value of foreign currencies," Goldner concluded.
U.S. and Canada segment net revenues were $490.9 million, compared to $467.7 million in 2008. The results reflect growth in TRANSFORMERS, G.I. JOE, LITTLEST PET SHOP, NERF, PLAY-DOH, FURREAL FRIENDS and TONKA. The U.S. and Canada segment reported an operating profit of $56.3 million, compared to $43.7 million in 2008.
International segment net revenues were $276.2 million, compared to $293.7 million in 2008. The revenues include a negative foreign exchange impact of approximately $42.8 million. The results reflect growth in TRANSFORMERS, G.I. JOE, LITTLEST PET SHOP, NERF, PLAY-DOH and STAR WARS. The International segment reported an operating profit of $16.5 million compared to operating profit of $14.0 million in 2008.
Entertainment and Licensing segment net revenues were $24.2 million, compared to $21.3 million in 2008. The results reflect increases in TRANSFORMERS, G.I. JOE and NERF. The Entertainment and Licensing segment reported an operating profit of $2.9 million compared to operating profit of $8.0 million in 2008. The 2009 results were impacted by one-time expenses associated with the investment in the joint venture with Discovery Communications. The Entertainment and Licensing segment includes television, movies, lifestyle and digital licensing and on-line entertainment operations.
"Our business performance in 2009 has continued to meet our expectations. Our integration of the joint venture with Discovery Communications is on track and we are very pleased with the favorable interest rates we were able to obtain on our recent long-term financing," said Deborah Thomas, Chief Financial Officer.
Since the investment in the joint venture with Discovery Communications was finalized, the Company has reduced the expected dilution for 2009 and 2010. Due to lower financing costs and joint venture amortization expenses, the 2009 dilution the Company anticipates has been reduced to $0.15 to $0.20 per diluted share from the previous guidance of $0.25 to $0.30 per diluted share. In 2010, the expected dilution has been reduced to $0.25 to $0.30 per diluted share from the previous guidance of $0.30 to $0.35 per diluted share.
Hasbro, Inc. is a worldwide leader in children's and family leisure time products and services with a rich portfolio of brands and entertainment properties that provides some of the highest quality and most recognizable play and recreational experiences in the world. As a brand-driven, consumer-focused global company, Hasbro brings to market a range of toys, games and licensed products, from traditional to high-tech and digital, under such powerful brand names as TRANSFORMERS, PLAYSKOOL, TONKA, MILTON BRADLEY, PARKER BROTHERS, CRANIUM and WIZARDS OF THE COAST. Come see how we inspire play through our brands at www.hasbro.com. (C) 2009 Hasbro, Inc. All Rights Reserved.
