SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES AND EXCHANGE ACT OF 1934
Date of Report (Date of Earliest Event Reported): July 18, 1996
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HASBRO, INC.
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(Name of Registrant)
RHODE ISLAND 1-6682 05-0155090
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(State of (Commission (IRS Employer
Incorporation) File Number) Identification No.)
1027 NEWPORT AVE., PAWTUCKET, RHODE ISLAND 02861
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(Address of Principal Executive Offices) (Zip Code)
(401) 431-8697
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(Registrant's Telephone Number)
Item 5. Other Events
The July 18, 1996 Press Release of the Registrant attached
hereto as EXHIBIT 99 is incorporated herein by reference.
Item 7. Financial Statements and Exhibits
99 Press Release, dated July 18, 1996, of Hasbro, Inc.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
HASBRO, INC.
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(Registrant)
Date: July 18, 1996 By:\s\John T. O'Neill
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John T. O'Neill
Executive Vice President and
Chief Financial Officer
(Duly Authorized Officer and
Principal Financial Officer)
HASBRO, INC.
Current Report on Form 8-K
Dated July 18, 1996
Exhibit Index
Exhibit
No. Exhibits
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99 Press Release dated July 18, 1996
EXHIBIT 99
For Immediate Release Contact: John T. O'Neill
July 18, 1996 Telephone: 401-431-8500
HASBRO, INC. ANNOUNCES REVENUES AND
EARNINGS FOR SECOND QUARTER 1996
Pawtucket, RI (July 18, 1996) -- Hasbro, Inc. (HAS:ASE) today reported
second quarter revenues of $511,609,000, an increase of 6% above the
$481,854,000 reported in the second quarter of 1995. Absent the impact of
changed currency rates, revenues increased approximately 7.5% over 1995
levels. Net earnings for the quarter also grew, reaching $5,986,000, or $.07
per share, a growth of approximately 40% from the $4,233,000, or $.05 per
share in the same period of 1995, absent the impact of a $31,100,000 pretax
charge related to a discontinued development project. The reported 1995
second quarter net loss was $14,893,000, or $.17 per share.
For the six months, revenues totaled $1,050,294,000, compared with
$1,008,357,000 in 1995. Net earnings for the year to date were $30,351,000,
or $.34 per share, up 17% from the $25,916,000, or $.29 per share, again
absent the aforementioned discontinued development charge, in 1995. Net
earnings for the first six months of 1995 were $6,790,000, or $.08 per share.
"I am very pleased to be able to report growth in both revenues and
earnings this quarter", said Alan G. Hassenfeld, Chairman and Chief Executive
Officer. "The second quarter is traditionally a slow period in our industry
and this year certainly was no exception. In the United States, boys' toys
and Milton Bradley and Parker Brothers game products provided the momentum
during the quarter. Our Star Wars(R) and Beast Wars(R) TransFormers(R) action
figures and accessories were very strong at retail and our Super Soaker(TM)
line of products is providing summer enjoyment to children throughout the
country. In the games arena, the classics such as Monopoly(R) and Scrabble(R)
remained strong, Jumanji(TM) benefited from the recent release of the movie
on video and the 1996 Goosebumps(TM) introductions continued to be among the
top selling items at retail. Internationally, while results were generally in
line with our expectations, they did not reach those of a year ago."
He continued, "Our earnings also grew this quarter. We are receiving the
benefit of lower costs for certain raw material commodities and were able to
leverage certain of our expenses, thus increasing our operating profit
percentage from that of a year ago; this in spite of an increased amount of
merchandise sold at less than normal margins during the quarter."
"Our balance sheet remains very strong. Receivables, while up in amount,
remain constant when expressed as days sales outstanding and the year-to-year
growth in inventories which we have been recently experiencing has moderated.
Additionally, net borrowings (debt less cash) are approximately $50,000,000
less than those at the same time in 1995 - this even after the repurchase of
approximately 800,000 shares of our stock during the first six months of 1996
and an additional 500,000 in late 1995. Continuing this program, we have
purchased more than 400,000 shares since the end of June and have
authorization to purchase in excess of 4,800,000 more."
Mr. Hassenfeld concluded, "We remain encouraged by these results and the
progress we are making in enhancing shareholder value while continuing to
provide entertaining product to children and adults. Our core brands,
including games and puzzles from Milton Bradley and Parker Brothers,
Batman(R) and Star Wars(R) action items, Play-Doh(R) modeling compound, and
the Playskool(R), Nerf(R) and Tonka(R) range of products provide us with an
excellent global base. Additionally, we believe that many of our new
introductions, a good portion of which tie back to those global brands and
which are just now appearing on retailers' shelves, will be well received."
# # #
(Tables Attached)
HASBRO, INC.
CONSOLIDATED STATEMENTS OF EARNINGS
(Thousands of Dollars and Shares Except Per Share Data)
Quarter Ended Six Months Ended (1)
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Jun 30, Jul 2, Jun 30, Jul 2,
1996 1995 1996 1995
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Net Revenues $511,609 481,854 $1,050,294 1,008,357
Cost of Sales 234,184 214,085 471,955 446,657
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Gross Profit 277,425 267,769 578,339 561,700
Amortization 10,007 9,725 19,806 18,968
Royalties, Research and Development 64,356 62,085 118,778 117,169
Discontinued Development Project - 31,100 - 31,100
Advertising 66,171 68,164 136,447 138,397
Selling, Distribution and
Administration 124,909 119,005 250,274 239,808
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Operating Profit (Loss) 11,982 (22,310) 53,034 16,258
Interest Expense 5,353 7,384 10,259 13,207
Other (Income), Net (2,514) (5,477) (5,477) (7,989)
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Earnings (Loss) Before Income Taxes 9,143 (24,217) 48,252 11,040
Income Taxes 3,157 (9,324) 17,901 4,250
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Net Earnings (Loss) $ 5,986 (14,893) $ 30,351 6,790
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Per Common Share(2)
Net Earnings (Loss) $ .07 (.17) $ .34 .08
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Cash Dividends Declared $ .10 $ .08 $ .20 .16
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Weighted Average Number of Shares 88,387 87,719 88,247 88,263
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(1) - 1996 consists of 26 weeks; 1995, 27 weeks.
(2) - Primary and fully diluted data are not shown separately as they are
substantially the same.
HASBRO, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(Thousands of Dollars)
Jun. 30, Jul. 2,
1996 1995
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Assets
Cash and Temporary Investments $ 69,998 $ 86,213
Accounts Receivable, Net 683,906 654,216
Inventories 398,099 364,042
Other 160,836 161,093
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Total Current Assets 1,312,839 1,265,564
Property, Plant and Equipment, Net 305,772 309,571
Other Assets 908,903 884,633
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Total Assets $2,527,514 $2,459,768
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Liabilities and Shareholders' Equity
Short-term Borrowings $ 288,872 $ 353,051
Payables and Accrued Liablities 480,272 487,789
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Total Current Liabilities 769,144 840,840
Long-term Debt 149,920 149,993
Deferred Liabilities 72,066 66,292
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Total Liabilities 991,130 1,057,125
Total Shareholders' Equity 1,536,384 1,402,643
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Total Liabilities and Shareholders' Equity $2,527,514 $2,459,768
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