PAWTUCKET, R.I. -- April 21, 2003 -- Net revenues up 2.1%, to $461.8 million compared to $452.3 million a year ago.- Net earnings of $1.2 million or $.01 per share, versus a net loss before cumulative effect of accounting change of $17.1 million, or $.10 per share in 2002
- Repaid the remaining $200 million in outstanding notes due in March and ended the quarter with $310 million in cash
- Games segment net revenues up 21%, led by TRIVIAL PURSUIT 20th Anniversary Edition
- International segment net revenues up 12% in local currency and 29% in U.S. dollars
- Strong performances by both core brands and new, innovative products such as BEYBLADE and FURREAL FRIENDS
Hasbro, Inc. today reported first quarter results. Worldwide net revenues were $461.8 million, compared to $452.3 million a year ago. Net earnings for the quarter were $1.2 million or $0.01 per diluted share, compared to a loss before cumulative effect of accounting change of ($17.1) million or ($0.10) per diluted share in 2002. Including the cumulative effect of a change in accounting principle related to the adoption of FAS 142 "Goodwill and Other Intangibles," the net loss for the first quarter of 2002 was ($262.8) million or ($1.52) per diluted share. The Company also reported first quarter Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) of $46.7 million, compared to $32.1 million in 2002. The Company's operating profit of $16 million compared to an operating loss of ($6.3) million in 2002. The attached schedules provide a reconciliation of operating profit (loss) to EBITDA for the first quarters of 2003 and 2002.
"Our first quarter results are particularly gratifying when considering many factors that could have worked against us, including a late Easter, difficult economic conditions exacerbated by the war in Iraq, and the substantial reductions in Star Wars revenue," said Alan G. Hassenfeld, Hasbro's Chairman and Chief Executive Officer. "Despite these negative factors, and thanks to a favorable exchange rate, we grew revenue and posted a profitable quarter as we stayed disciplined and on strategy."
Revenues in the U.S. Toys segment were $153.4 million for the quarter, compared to $200.9 million a year ago. The segment reported operating profit of $5.3 million compared to $26.2 million last year. As expected revenue declined due to the impact of STAR WARS which was partially offset by strength in sales of certain core product lines including TRANSFORMERS and PLAY-DOH, as well as continuing strong sales of FURREAL FRIENDS and BEYBLADE.
Revenues in the Games segment were $112.2 million for the quarter, compared to $92.8 million a year ago. Board game revenues remained strong, led by TRIVIAL PURSUIT 20TH ANNIVERSARY EDITION. Non-licensed trading card games were also up, but licensed trading card games including POKEMON were down. The Games segment reported operating profit of $18.0 million compared to an operating loss of ($2.5) million last year.
International segment revenues were $175.4 million for the quarter, compared to $136.1 million a year ago. This represents an increase of 12% in local currency and 29% in U.S. dollars. The segment experienced strength in sales of certain core product lines including PLAY-DOH, TRANSFORMERS, PLAYSKOOL, and MAGIC: THE GATHERING trading card games, as well as strong sales of FURREAL FRIENDS and BEYBLADE. The International segment operating loss declined to ($6.0) million compared to a loss of ($29.1) million a year ago.
"We remain focused on our strategy of growing core brands, developing new, innovative products, cutting costs and reducing debt," said Alfred J. Verrecchia, President and Chief Operating Officer. "We are off to a good start and we continue to make measurable strides in all of these areas. However, with nine months to go, our very successful first quarter performance has not led us to change our expectations for the full year; rather they have made us more confident in our ability to deliver them."
The Company will webcast its first quarter earnings conference call at 9:00 a.m. Eastern Standard Time today. Investors and the media are invited to listen at http://www.hasbro.com (select "Corporate Info" from the home page, click on "Investors," and then click on the webcast icon).
Hasbro is a worldwide leader in children's and family leisure time entertainment products and services, including the design, manufacture and marketing of games and toys ranging from traditional to high-tech. Both internationally and in the U.S., its PLAYSKOOL, TONKA, MILTON BRADLEY, PARKER BROTHERS, TIGER and WIZARDS OF THE COAST brands and products provide the highest quality and most recognizable play experiences in the world.
