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): October 20, 1997
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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 October 20, 1997 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 October 20, 1997, 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: October 20, 1997 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 October 20, 1997
Exhibit Index
Exhibit
No. Exhibits
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99 Press Release dated October 20, 1997
EXHIBIT 99
For Immediate Release Contact: John T. O'Neill
October 20, 1997 401-727-5600
Renita E. O'Connell
401-431-8880
HASBRO, INC. ANNOUNCES RECORD THIRD QUARTER RESULTS
Pawtucket, RI (October 20, 1997) -- Hasbro, Inc. (HAS:ASE) today
reported record third quarter net revenues, earnings and earnings per share.
Net revenues increased over 11% in local currencies, partly offset by the $27
million, or 3%, adverse impact of the stronger U.S. dollar. Reported net
revenues reached $915.5 million, up 8% from $845.1 million last year. Net
earnings increased approximately 10% to $77.4 million from the $70.5 million
reported in the third quarter of 1996, while earnings per share increased 11%
to $.60 from $.54 in 1996.
For the first nine months of 1997, revenues were $2.1 billion, up more
than 8% from the $1.9 billion a year ago, while net earnings increased 15% to
$116.1 million from $100.8 million. Earnings per share increased 17% to $.89
for the first nine months of 1997 compared to $.76 a year ago.
"We are very pleased to report record third quarter revenues and
earnings," said Alan G. Hassenfeld, Chairman and Chief Executive Officer.
"Our revenue growth was primarily driven by the United States operations,
including our growing interactive CD-ROM business, the recently acquired
OddzOn Products and Cap Toys units and products associated with our three
major entertainment properties, Star Wars(R), Jurassic Park(TM) and
Batman(TM). Internationally, growth continued to be led by Canada, Mexico and
Latin America but was moderated by the stronger U.S. dollar."
Mr. Hassenfeld continued, "Our earnings growth this quarter followed the
revenue pattern, with most of it attributable to the North American
operations. Continuing our share repurchase program, during the quarter we
invested an additional $36 million to purchase approximately 1.3 million of
our shares, bringing the 1997 nine-month investment to $100 million for 3.6
million Hasbro shares."
He concluded, "As we enter the increasingly important fourth quarter, we
look forward to introducing many exciting new products including Star Wars
Monopoly(R) on CD-ROM. We are also pleased with the positive reaction of our
key customers who previewed our 1998 line. Finally, on October 14 we were
awarded an extension and expansion of our exclusive rights to market certain
toys and games based on three new Star Wars movies. This is especially
pleasing as it gives us the opportunity to further develop the Star Wars
brand as an important part of our diversified brand portfolio well into the
next millennium. Indeed, the Force is with us."
# # #
(Tables Attached)
HASBRO, INC.
CONSOLIDATED STATEMENTS OF EARNINGS
(Thousands of Dollars and Shares Except Per Share Data)
Quarter Ended Six Months Ended
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Sep. 28, Sep. 29, Sep. 28, Sep. 29,
1997 1996 1997 1996
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Net Revenues $915,533 845,148 $2,055,203 1,895,442
Cost of Sales 403,027 372,273 891,315 844,228
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Gross Profit 512,506 472,875 1,163,888 1,051,214
Amortization 11,741 9,939 32,967 29,745
Royalties, Research and
Development 102,583 85,929 254,339 204,707
Advertising 116,208 116,446 254,418 252,893
Selling, Distribution and
Administration 156,215 146,941 433,285 397,215
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Operating Profit 125,759 113,620 188,879 166,654
Interest Expense 9,197 9,419 19,120 19,678
Other (Income) Expense, Net 1,121 (733) (6,112) (6,210)
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Earnings Before Income Taxes 115,441 104,934 175,871 153,186
Income Taxes 38,041 34,465 59,796 52,366
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Net Earnings $ 77,400 70,469 $ 116,075 100,820
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Per Common Share (1)(2)
Net Earnings $ .60 .54 $ .89 .76
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Cash Dividends Declared $ .08 .07 $ .24 .21
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Weighted Average Number of
Shares Outstanding (1)(2) 129,487 131,119 130,179 131,953
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(1) - Primary and fully diluted data are not shown separately as they are
substantially the same.
(2) - Adjusted to reflect the three-for-two stock split paid March 21, 1997.
HASBRO, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(Thousands of Dollars)
Sep. 28, Sep. 29,
1997 1996
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Assets
Cash and Temporary Investments $ 80,030 $ 57,753
Accounts Receivable, Net 1,153,910 1,184,615
Inventories 347,779 402,704
Other 175,534 155,941
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Total Current Assets 1,757,253 1,801,013
Property, Plant and Equipment, Net 279,916 301,453
Other Assets 986,782 897,009
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Total Assets $3,023,951 $2,999,475
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Liabilities and Shareholders' Equity
Short-term Borrowings $ 462,894 $ 553,136
Payables and Accrued Liabilities 708,278 654,947
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Total Current Liabilities 1,171,172 1,208,083
Long-term Debt 148,751 149,907
Deferred Liabilities 68,924 70,556
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Total Liabilities 1,388,847 1,428,546
Total Shareholders' Equity 1,635,104 1,570,929
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Total Liabilities and Shareholders' Equity $3,023,951 $2,999,475
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