Hasbro Reports Strong Third Quarter Results
Highlights
- Net revenues of $1.2 billion for the quarter, up 18% from a year ago;
- Operating profit improved 27% to $209.7 million or 17.1% of revenue;
- Net earnings of $161.6 million, or $0.95 per diluted share;
- North American segment net revenues were up 10% and International segment net revenues were up 33% in the third quarter;
- Growth driven by TRANSFORMERS and MARVEL movie-related products, as well as strong performances from LITTLEST PET SHOP, BABY ALIVE, FURREAL FRIENDS, MY LITTLE PONY, NERF and board games;
- During the quarter, the Company repurchased approximately 12.9 million shares of common stock at a total cost of $362.1 million.
PAWTUCKET, R.I. -- October 22, 2007 -- Hasbro, Inc. today reported third quarter net revenues of $1,223.0 million, an increase of $183.9 million or 18% compared to $1,039.1 million a year ago. The Company reported net earnings for the quarter of $161.6 million or $0.95 per diluted share, compared to $99.6 million or $0.58 per diluted share in 2006. The 2007 results for the quarter include a favorable tax adjustment of $29.6 million or $0.17 per diluted share. Excluding the impact of the favorable tax adjustment, 2007 net earnings for the quarter would have been $132.0 million or $0.78 per diluted share. In addition, the 2006 quarter included an expense of $19.8 million or $0.09 per diluted share related to the Lucas warrants.
"We are very pleased with our third quarter and year-to-date performance and we are well positioned for the all important holiday season," said Alfred J. Verrecchia, President and Chief Executive Officer. "Revenues were up 18% for the quarter and 25% year-to-date as the business continues to be strong both in terms of category and geographic performance."
"Operating profit was up significantly for the third quarter to $209.7 million, an historical record for the Company and further validation that our strategy of focusing on our core brands is working," Verrecchia concluded.
North American segment net revenues for the quarter were $822.7 million, an increase of $77.2 million or 10% compared to $745.5 million in 2006. The growth in revenue is attributable to shipments of the TRANSFORMERS and MARVEL product lines, as well as growth in other Hasbro brands including FURREAL FRIENDS, LITTLEST PET SHOP, BABY ALIVE, MY LITTLE PONY, NERF, MONOPOLY, OPERATION and SCRABBLE. The North American segment reported an operating profit of $134.0 million compared to $111.6 million in 2006.
International segment net revenues for the quarter were $374.0 million, an increase of $93.6 million or 33% compared to $280.4 million in 2006. The revenues include a positive foreign exchange impact of approximately $21.7 million or 8%. The results reflect shipments of the TRANSFORMERS and MARVEL product lines, as well as growth in other Hasbro brands including LITTLEST PET SHOP, MY LITTLE PONY, PLAYSKOOL, MONOPOLY, OPERATION and THE GAME OF LIFE. The International segment reported an operating profit of $57.6 million compared to $43.2 million in 2006.
"In light of our strong global cash flow generation and our expectations for the future, we continued to aggressively repurchase shares during the quarter," said David Hargreaves, Executive Vice President and Chief Financial Officer. "During the quarter, we repurchased a total of 12.9 million shares of common stock at a total cost of $362.1 million, leaving $240.6 million in the current authorization as of quarter end," Hargreaves concluded.
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.
