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): April 15, 1999
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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 April 15, 1999 Press Release of the Registrant attached
hereto as EXHIBIT 99 is incorporated herein by reference.
Item 7(c) Exhibits
99 Press Release, dated April 15, 1999, 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: April 15, 1999 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 April 15, 1999
Exhibit Index
Exhibit
No. Exhibits
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99 Press Release dated April 15, 1999
EXHIBIT 99
For Immediate Release Contact: John T. O'Neill
April 15, 1999 401-727-5600
Renita E. O'Connell
401-727-5401
HASBRO REPORTS RECORD FIRST QUARTER REVENUES
EARNINGS INCREASE SIGNIFICANTLY
Pawtucket, RI (April 15, 1999) - Hasbro, Inc. (ASE:HAS) today reported
record first quarter revenues and a substantial increase in earnings. The
Company's outlook for 1999 remains very positive.
Worldwide revenues increased approximately 38% to $668.4 million,
compared to $482.8 million a year ago. Revenue growth was primarily led by
Tiger Electronics, which was acquired in April 1998, and by increased sales
of computer-based games from Hasbro Interactive. Net earnings increased
approximately 77% to $13.8 million, compared to $7.8 million in the first
quarter of 1998. Diluted earnings per share increased 75% to $0.07 compared
to $0.04 a year ago, adjusted for the recent three-for-two stock split. The
Company also reported record first quarter Earnings Before Interest, Taxes,
Depreciation and Amortization (EBITDA) of $75.8 million, almost double the
year-ago EBITDA of $39.7 million.
"I am pleased to report record first quarter revenues," said Alan G.
Hassenfeld, Chairman and Chief Executive Officer. "Our earnings growth is
especially gratifying in this seasonally low-revenue quarter, when we
continue to incur fixed infrastructure costs including acquisition carrying
costs. In addition, our substantial cash flow generation underscores our
financial strength," Hassenfeld noted. "Tiger Electronics' interactive FURBY
pets continue to be a smash hit, and we have just introduced new fur patterns
and FURBY BUDDIES. Hasbro Interactive again achieved significant double-digit
sales growth. Sales of the TELETUBBIES line, launched last May, are brisk. In
our powerful Boys category, sales continue increasing in the SUPER SOAKER
line of water toys and TRANSFORMERS/BEAST WARS, including the recently
introduced ANIMORPHS. Our popular WINNER'S CIRCLE line almost tripled from a
year ago, reflecting the growing popularity of NASCAR," Hassenfeld added.
"We continue to add value for our shareholders with a three-for-two
stock split effective March 15th and a 13% increase in the split-adjusted
quarterly dividend rate to $0.06 per share in May," Hassenfeld added. "Also
in the first quarter, we invested approximately $45 million to repurchase 1.7
million shares. These actions signal our confidence in Hasbro's future."
"In the second quarter, we look forward to the May 19th release of THE
PHANTOM MENACE, the awesome first episode of the new STAR WARS trilogy.
Hasbro and the recently-acquired Galoob are teamed up with the global POWER
OF THE FORCE in the largest coordinated rollout of product ever undertaken in
our industry. FURBY in five foreign languages will begin shipping soon, and
we are increasing production of the incredibly popular POKEMON line. We are
also on track in realizing planned incremental cost savings from the Global
Integration and Profit Enhancement Program. As we demonstrated in February
during our most successful Toy Fair ever, we are firing on all cylinders and
we look forward to a great year in 1999, as we continue to grow into the next
millennium," Hassenfeld concluded.
Hasbro is a worldwide leader in the design, manufacture and marketing of
toys, games, interactive software, puzzles and infant products. Both
internationally and in the U.S., its PLAYSKOOL, KENNER, TONKA, ODDZON, SUPER
SOAKER, MILTON BRADLEY, PARKER BROTHERS, TIGER, HASBRO INTERACTIVE, and
GALOOB products provide children and families with the highest quality and
most recognizable toys and games in the world.
Certain statements contained in this release contain "forward-looking
statements" within the meaning of the Private Securities Litigation Reform
Act of 1995. Such forward-looking statements are inherently subject to known
and unknown risks and uncertainties. The Company's actual actions or results
may differ materially from those expected or anticipated in the forward-
looking statements. Specific factors that might cause such a difference
include, but are not limited to, the timely manufacture and shipping by the
Company of new and continuing products and their acceptance by customers and
consumers in a competitive product environment; economic conditions, currency
fluctuations and government regulation and other actions in the various
markets in which the Company operates throughout the world; the inventory
policies of retailers, including the continuing trend of increased
concentration of the Company's revenues in the second half and fourth quarter
of the year, together with increased reliance by retailers on quick response
inventory management techniques, which increases the risk of underproduction
of popular items, overproduction of less popular items and failure to
achieve tight and compressed shipping schedules; the impact of competition on
revenues, margins and other aspects of the Company's business; third party
actions or approvals that could delay, modify or increase the cost of
implementation of, the Company's Global Integration and Profit Enhancement
program; the Company's incurring higher than expected costs to achieve, or
not achieving, "Year 2000" readiness with respect to the Company's systems,
or the Company's customers, vendors or service providers failing to achieve
such readiness; and the risk that anticipated benefits of acquisitions may
not occur or be delayed or reduced in their realization. The Company
undertakes no obligation to make any revisions to the forward-looking
statements contained in this release or to update them to reflect events or
circumstances occurring after the date of this release.
EBITDA (earnings before interest, taxes, depreciation and amortization)
represents operating profit plus depreciation and all amortization. EBITDA is
not adjusted for all noncash expenses or for working capital, capital
expenditures or other investment requirements and, accordingly, is not
necessarily indicative of amounts that may be available for discretionary
uses. Thus, EBITDA should not be considered in isolation or as a substitute
for net earnings or cash provided by operating activities, each prepared in
accordance with generally accepted accounting principles, when measuring
Hasbro's profitability or liquidity as more fully discussed in the Company's
financial statements and securities filings.
# # #
(Tables Attached)
HASBRO, INC.
CONSOLIDATED STATEMENTS OF EARNINGS
(Thousands of Dollars and Shares Except Per Share Data)
Quarter Ended
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Mar. 28, Mar. 29,
1999 1998
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Net Revenues $668,398 $482,820
Cost of Sales 256,517 204,312
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Gross Profit 411,881 278,508
Amortization 25,926 14,143
Royalties, Research and Development 111,942 67,336
Advertising 81,084 55,757
Selling, Distribution and Administration 163,281 135,249
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Operating Profit 29,648 6,023
Interest Expense 11,973 2,312
Other (Income), Net (2,318) (8,097)
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Earnings Before Income Taxes 19,993 11,808
Income Taxes 6,198 4,015
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Net Earnings $ 13,795 $ 7,793
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Per Common Share
Net Earnings
Basic $ .07 $ .04
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Diluted $ .07 $ .04
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Cash Dividends Declared $ .06 $ .05
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Weighted Average Number
of Shares
Basic 195,898 199,665
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Diluted 204,621 207,313
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HASBRO, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(Thousands of Dollars)
Mar. 28, Mar. 29,
1999 1998
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Assets
Cash and Temporary Investments $ 217,276 $ 430,601
Accounts Receivable, Net 518,183 362,328
Inventories 353,842 269,097
Other 347,124 205,209
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Total Current Assets 1,436,425 1,267,235
Property, Plant and Equipment, Net 319,908 271,607
Other Assets 1,650,910 1,053,124
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Total Assets $3,407 243 $2,591,966
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Liabilities and Shareholders' Equity
Short-term Borrowings $ 295,548 $ 112,465
Payables and Accrued Liablities 717,046 617,015
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Total Current Liabilities 1,012,594 729,480
Long-term Debt 410,146 -
Deferred Liabilities 75,723 59,771
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Total Liabilities 1,498,463 789,251
Total Shareholders' Equity 1,908,780 1,802,715
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Total Liabilities and Shareholders' Equity $3,407,243 $2,591,966
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