Hasbro Reports Full-Year Results and Eighth Consecutive Year of E.P.S. Growth
PAWTUCKET, R.I. -- February 9, 2009 -- Hasbro, Inc. -- Full-Year Highlights
- Net revenues of $4.0 billion, an increase of $184.0 million or 5% from a year ago;
- Net earnings of $306.8 million, or $2.00 per diluted share, compared to $333.0 million or $1.97 per diluted share in 2007;
- U.S. and Canada segment net revenues up 5% and International segment net revenues up 4% compared to 2007;
- Boys, Girls, Preschool and Tweens up globally compared to a year ago, with growth driven by strong performances from STAR WARS, PLAYSKOOL, NERF, LITTLEST PET SHOP and EASY BAKE, as well as both board and trading card games;
- Balance sheet remains strong, with operating cash flow of $593.2 million over the last 12 months.
Fourth Quarter Highlights- Net revenues of $1.2 billion for the quarter, a decrease of $66.8 million or 5% compared to a year ago; revenues increased 1% excluding the negative $80.1 million impact of foreign exchange;
- U.S. and Canada segment net revenues at $689.5 million were marginally down compared to 2007 and International segment net revenues at $496.8 million were marginally up absent foreign exchange;
- Net earnings of $93.6 million compared to $133.7 million in 2007;
- Earnings per diluted share of $0.62 compared to $0.84 a year ago.
Hasbro, Inc. (NYSE: HAS) today reported 2008 fourth quarter and full-year results. For the year, the Company reported net earnings of $306.8 million, or $2.00 per diluted share, compared to $333.0 million or $1.97 per diluted share in 2007. The 2007 results include a favorable tax adjustment of $29.6 million or $0.17 per diluted share that was taken in the third quarter. In addition, the 2007 full-year results included expenses of $0.23 per diluted share or $44.4 million, related to the Lucas warrants mark to market. The Company exercised the right to purchase the warrants in the second quarter of 2007. For the year, worldwide net revenues were $4.0 billion, an increase of $184.0 million or 5%, compared to $3.8 billion a year ago.
For the fourth quarter, the Company reported net revenues of $1.2 billion, compared to $1.3 billion a year ago. Net revenues increased $13.3 million or 1%, excluding the negative $80.1 million impact of foreign exchange. The Company reported net earnings for the quarter of $93.6 million or $0.62 per diluted share, compared to $133.7 million or $0.84 per diluted share in 2007.
"In a challenging environment, we delivered both revenue and earnings per share growth in 2008, while also continuing to make investments in our future," said Brian Goldner, President and Chief Executive Officer. "As we look to the year ahead, given the severity of the downturn in global economies, we are focused on keeping costs down, managing our operating cash flow and continuing to invest in our business for the long term. That said, we believe the underlying strength of our brands and commitment to our strategy should enable Hasbro to grow revenue and earnings per share in 2009, absent a material deterioration in economic conditions or the value of foreign currencies."
U.S. and Canada segment net revenues were $2.4 billion, an increase of $113.0 million or 5% compared to $2.3 billion in 2007. The growth in revenue is attributable to STAR WARS, PLAYSKOOL, NERF, EASY BAKE, G.I. JOE and trading card and board games, including GUESS WHO, PICTUREKA and SCRABBLE. Additionally, TRANSFORMERS, MARVEL and LITTLEST PET SHOP continued to contribute significantly to the segment. The U.S. and Canada segment reported an operating profit of $283.2 million, compared to $287.8 million in 2007.
International segment net revenues were $1.5 billion, an increase of $54.5 million or 4% compared to $1.4 billion in 2007. The revenues include a negative foreign exchange impact of approximately $7.4 million. The results reflect growth in LITTLEST PET SHOP, STAR WARS, PLAYSKOOL, NERF, TWISTER and GUESS WHO. Additionally, TRANSFORMERS and MARVEL continued to contribute significantly to the segment. Inclusive of the investment spending in the emerging markets, the International segment reported an operating profit of $165.2 million compared to $189.8 million in 2007.
"After a very strong performance in the first nine months of the year, the fourth quarter clearly had significant headwinds - the negative impact of foreign exchange and the broad based global economic downturn," said David Hargreaves, Chief Operating Officer and Chief Financial Officer. "To keep our core brands strong and to drive consumer traffic in the critical selling weeks prior to the holidays, we worked with our global retail partners and put additional promotional programs in place. This resulted in our finishing 2008 in a much better inventory position than we would have otherwise, although it did negatively impact operating profit in the fourth quarter."
The Company repurchased a total of 11.7 million shares of common stock during 2008, at a total cost of $357.6 million, leaving $252.4 million remaining in the current share repurchase authorization. Since the inception of its buyback program in June 2005, the Company has repurchased 57.7 million shares at a total cost of $1.4 billion, at an average price of $25.10 per share. In the fourth quarter, the Company did not repurchase any shares.
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, TIGER, 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.
