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Hasbro Reports Q1 2006 Results
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PAWTUCKET, R.I. -- April 24, 2006 -- Hasbro, Inc. (NYSE: HAS):
Highlights - Net revenues were up 3%, to $468.2 million compared to $454.9 million a year ago;
- Net loss of ($0.03) per diluted share which includes stock-based compensation expense, net of tax, of ($0.02) per share under SFAS 123R; this compares to a prior year net loss of ($0.02) per diluted share, which would have been ($0.04) per diluted share if the Company had recorded compensation expense of ($0.02) as disclosed under SFAS 123;
- North American segment net revenues were up 7%, reflecting growth in LITTLEST PET SHOP, MAGIC: THE GATHERING, NERF, PLAYSKOOL, TRANSFORMERS, SUPERSOAKER and board games;
- Repurchased 4.5 million shares of common stock at a cost of $93.7 million.
Hasbro, Inc. (NYSE: HAS) today reported first quarter results. Worldwide net revenues for the quarter were $468.2 million, which included an $8.7 million negative impact of foreign exchange, compared to $454.9 million a year ago. The Company reported a net loss of ($4.9) million or ($0.03) per diluted share, which includes stock-based compensation expense of $4.1 million or ($0.02) per diluted share, net of tax, due to the required implementation of SFAS 123R. Net earnings (loss) prior to fiscal 2006 did not include stock-based compensation expense. Including the stock-based compensation expense previously disclosed in Hasbro's financial statement footnotes, the net loss for the first quarter of fiscal 2005 would have been ($7.2) million or ($0.04) per diluted share. In the first quarter of 2005 the net loss on a reported basis, which does not include the effect of stock-based compensation expense, was ($3.7) million or ($0.02) per diluted share. Please refer to the tables attached to this press release for 2005 quarterly results that have been adjusted to include the effect of stock-based compensation expense. The tables also present the Company's major segment results for 2005 adjusted to include the impact of stock-based compensation as disclosed under SFAS 123.
"We are pleased with our first quarter performance. Worldwide revenues were up 3% and 5% on a constant dollar basis. We are particularly pleased with the performance of our North American segment where revenues grew 7%, driven in part by strong performance in our board game business which was up 11%," said Alfred J. Verrecchia, President and Chief Executive Officer.
North American segment revenues, which includes all of the Company's toys and games business in the United States, Canada, and Mexico, for the quarter were $310.3 million, an increase of 7% compared to $288.7 million in 2005. The results reflect growth in PLAYSKOOL, MAGIC: THE GATHERING, LITTLEST PET SHOP, NERF, TRANSFORMERS, SUPERSOAKER and board games that was partially offset by an anticipated decline in STAR WARS. The North American segment reported an operating profit of $4.8 million, compared to $4.6 million last year, which has been adjusted to include the impact of stock-based compensation as disclosed under SFAS 123.
International segment revenues for the quarter were $145.5 million, a decrease of 5% compared to $153.1 million in 2005. The revenues include a negative foreign exchange impact of approximately $10.4 million. Absent this impact, revenues increased 2% for the quarter to $155.9 million. The results also reflect strong performance from MONOPOLY, LITTLEST PET SHOP and PLAYSKOOL that was partially offset by declines in STAR WARS and trading card games. The International segment reported an operating loss of ($8.3) million for the quarter, compared with ($7.9) million in 2005, as adjusted to include the impact of stock-based compensation as disclosed under SFAS 123.
"I am pleased that due to our strong cash position we can continue to return cash to shareholders," said David Hargreaves, Chief Financial Officer. "During the quarter the board of directors again increased the dividend and we spent $93.7 million to repurchase 4.5 million shares of common stock as part of our $350 million share buyback program."
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.
  
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