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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Hasbro Inc | NASDAQ:HAS | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.31 | 0.51% | 60.66 | 60.33 | 60.91 | 60.80 | 59.96 | 60.80 | 1,488,070 | 01:00:00 |
Company Reports Improved Profitability and EPS Growth in the quarter
Hasbro, Inc. (NASDAQ: HAS), a leading toy and game company, today reported financial results for the first quarter 2024.
"The first quarter was a good start to the year for Hasbro; we are continuing to see the results of our transformation work," said Chris Cocks, Hasbro Chief Executive Officer. "Performance from our licensing portfolio shows the strength of our brands and we continue to fuel innovation in games and toys as we expand our reach across play patterns to fans of all ages."
"We made solid progress in our turnaround efforts in the first quarter," said Gina Goetter, Hasbro, Chief Financial Officer. "We landed revenue where we expected and drove significant operating profit improvement led by our operational excellence program and improved business mix. We remain on track for our full-year commitments."
First Quarter 2024 Highlights
First Quarter 2024 Segment Details
See the financial tables accompanying the press release for a reconciliation of GAAP to non-GAAP financial measures.
2024 Company Outlook1
For the full year, the Company maintains annual guidance and continues to expect:
2024 Capital Allocation priorities:
1The Company is not able to reconcile its forward-looking non-GAAP adjusted operating profit margin and adjusted EBITDA measures because the Company cannot predict with certainty the timing and amounts of discrete items such as charges associated with its cost-savings program, which could impact GAAP results.
Dividend Announcement During the first quarter, the Company paid $97.2 million in cash dividends to shareholders. As previously announced, the next dividend will be payable on May 15, 2024 to shareholders of record at the close of business on May 1, 2024. In 2024, to align with industry best practice, the Company expects future dividend declarations will be made closer to the record date.
Conference Call Webcast Hasbro will webcast its first quarter 2024 earnings conference call at 8:30 a.m. Eastern Time today. To listen to the live webcast and access the accompanying presentation slides, please go to https://investor.hasbro.com. The replay of the call will be available on Hasbro’s website approximately 2 hours following completion of the call.
About Hasbro Hasbro is a leading toy and game company whose mission is to entertain and connect generations of fans through the wonder of storytelling and exhilaration of play. Hasbro delivers play experiences for fans of all ages around the world, through toys, games, licensed consumer products, digital games and services, location-based entertainment, film, TV, and more. With a portfolio of over 1,800 iconic brands including MAGIC: THE GATHERING, DUNGEONS & DRAGONS, Hasbro Gaming, NERF, TRANSFORMERS, PLAY-DOH and PEPPA PIG, as well as premier partner brands, Hasbro brings fans together wherever they are, from tabletop to screen.
Hasbro is guided by our Purpose to create joy and community for all people around the world, one game, one toy, one story at a time. For more than a decade, Hasbro has been consistently recognized for its corporate citizenship, including being named one of the 100 Best Corporate Citizens by 3BL Media, one of the World’s Most Ethical Companies by Ethisphere Institute and one of the 50 Most Community-Minded Companies in the U.S. by the Civic 50. For more information, visit https://corporate.hasbro.com or @Hasbro on LinkedIn.
© 2024 Hasbro, Inc. All Rights Reserved.
Forward Looking Statement Safe Harbor Certain statements in this press release contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements, which may be identified by the use of forward-looking words or phrases, include statements relating to our business strategies and plans; expectations relating to products, gaming and entertainment; anticipated cost savings; financial targets; capital allocation priorities; dividend declarations; and anticipated financial performance for 2024 and beyond. Our actual actions or results may differ materially from those expected or anticipated in the forward-looking statements due to both known and unknown risks and uncertainties. Factors that might cause such a difference include, but are not limited to:
The statements contained herein are based on our current beliefs and expectations. We undertake no obligation to make any revisions to the forward-looking statements contained in this press release or to update them to reflect events or circumstances occurring after the date of this press release.
Non-GAAP Financial Measures The financial tables accompanying this press release include non-GAAP financial measures as defined under SEC rules, specifically Adjusted operating profit, Adjusted net earnings and Adjusted net earnings per diluted share, which exclude, where applicable, acquisition-related costs, acquired intangible amortization, Operational Excellence and Blueprint 2.0 implementation charges; and certain non-cash asset impairment charges. Also included in this press release are the non-GAAP financial measures of EBITDA and Adjusted EBITDA. EBITDA represents net earnings attributable to Hasbro, Inc. excluding interest expense, income tax expense, net earnings attributable to noncontrolling interests, depreciation and amortization of intangibles. Adjusted EBITDA also excludes Operational Excellence and Blueprint 2.0 implementation charges, certain non-cash asset impairment charges and the impact of stock compensation (including acquisition-related stock expense). As required by SEC rules, we have provided reconciliations on the attached schedules of these measures to the most directly comparable GAAP measure. Management believes that Adjusted net earnings, Adjusted net earnings per diluted share and Adjusted operating profit provide investors with an understanding of the underlying performance of our business absent unusual events. Management believes that EBITDA and Adjusted EBITDA are appropriate measures for evaluating the operating performance of our business because they reflect the resources available for strategic opportunities including, among others, to invest in the business, strengthen the balance sheet and make strategic acquisitions. These non-GAAP measures should be considered in addition to, not as a substitute for, or superior to, net earnings or other measures of financial performance prepared in accordance with GAAP as more fully discussed in our consolidated financial statements and filings with the SEC. As used herein, "GAAP" refers to accounting principles generally accepted in the United States of America.
HAS-E
(Tables Attached)
HASBRO, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (1)
(Unaudited)
(Millions of Dollars)
March 31, 2024
April 2, 2023
ASSETS
Cash and Cash Equivalents
$
570.2
$
386.2
Accounts Receivable, Net
632.5
685.2
Inventories
336.2
713.4
Prepaid Expenses and Other Current Assets
456.5
754.4
Total Current Assets
1,995.4
2,539.2
Property, Plant and Equipment, Net
501.3
509.1
Goodwill
2,278.8
3,470.1
Other Intangible Assets, Net
569.7
801.0
Other Assets
857.8
1,604.3
Total Assets
$
6,203.0
$
8,923.7
LIABILITIES, NONCONTROLLING INTERESTS AND SHAREHOLDERS' EQUITY
Short-Term Borrowings
$
—
$
134.5
Current Portion of Long-Term Debt
500.0
109.0
Accounts Payable
254.2
360.1
Accrued Liabilities
1,038.0
1,293.8
Total Current Liabilities
1,792.2
1,897.4
Long-Term Debt
2,966.9
3,682.4
Other Liabilities
414.0
585.2
Total Liabilities
5,173.1
6,165.0
Total Shareholders' Equity
1,029.9
2,758.7
Total Liabilities, Noncontrolling Interests and Shareholders' Equity
$
6,203.0
$
8,923.7
(1) Amounts may not sum due to rounding
HASBRO, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (1)
(Unaudited)
(Millions of Dollars and Shares Except Per Share Data)
Quarter Ended
March 31, 2024
% Net Revenues
April 2, 2023
% Net Revenues
Net Revenues
$
757.3
100.0
%
$
1,001.0
100.0
%
Costs and Expenses:
Cost of Sales
204.2
27.0
%
285.3
28.5
%
Program Cost Amortization
8.1
1.1
%
122.5
12.2
%
Royalties
50.9
6.7
%
69.0
6.9
%
Product Development
65.5
8.6
%
83.3
8.3
%
Advertising
51.5
6.8
%
82.8
8.3
%
Amortization of Intangibles
17.0
2.2
%
23.1
2.3
%
Selling, Distribution and Administration
234.8
31.0
%
317.1
31.7
%
Loss on Disposal of Business
9.1
1.2
%
—
0.0
%
Operating Profit
116.2
15.3
%
17.9
1.8
%
Non-operating expense (income):
Interest Expense
38.5
5.1
%
46.3
4.6
%
Interest Income
(8.3
)
-1.1
%
(6.0
)
-0.6
%
Other Expense (Income), Net
5.0
0.7
%
(1.4
)
-0.1
%
Total non-operating expense, net
35.2
4.6
%
38.9
3.9
%
Earnings (Loss) before Income Taxes
81.0
10.7
%
(21.0
)
-2.1
%
Income Tax Expense
21.9
2.9
%
0.7
0.1
%
Net Earnings (Loss)
59.1
7.8
%
(21.7
)
-2.2
%
Net Earnings Attributable to Noncontrolling Interests
0.9
0.1
%
0.4
0.0
%
Net Earnings (Loss) Attributable to Hasbro, Inc.
$
58.2
7.7
%
$
(22.1
)
-2.2
%
Per Common Share
Net Earnings (Loss)
Basic
$
0.42
$
(0.16
)
Diluted
$
0.42
$
(0.16
)
Cash Dividends Declared
$
0.70
$
0.70
Weighted Average Number of Shares
Basic
139.1
138.6
Diluted
139.3
138.6
(1) Amounts may not sum due to rounding
HASBRO, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (1)
(Unaudited)
(Millions of Dollars)
Quarter Ended
March 31, 2024
April 2, 2023
Cash Flows from Operating Activities:
Net Earnings (Loss)
$
59.1
$
(21.7
)
Loss on Disposal of Business
9.1
—
Other Non-Cash Adjustments
60.9
181.9
Changes in Operating Assets and Liabilities
48.7
(71.4
)
Net Cash Provided by Operating Activities
177.8
88.8
Cash Flows from Investing Activities:
Additions to Property, Plant and Equipment
(45.8
)
(53.2
)
Other
(2.3
)
(2.4
)
Net Cash Utilized by Investing Activities
(48.1
)
(55.6
)
Cash Flows from Financing Activities:
Proceeds from Long-Term Debt
—
1.2
Repayments of Long-Term Debt
—
(35.5
)
Net Repayments of Short-Term Borrowings
—
(7.7
)
Stock-Based Compensation Transactions
0.2
—
Dividends Paid
(97.2
)
(96.7
)
Payments Related to Tax Withholding for Share-Based Compensation
(10.2
)
(14.0
)
Other
(1.7
)
(3.9
)
Net Cash Utilized by Financing Activities
(108.9
)
(156.6
)
Effect of Exchange Rate Changes on Cash
4.0
(3.5
)
Net Increase (Decrease) in Cash and Cash Equivalents
24.8
(126.9
)
Cash and Cash Equivalents at Beginning of Year
545.4
513.1
Cash and Cash Equivalents at End of Period
$
570.2
$
386.2
(1) Amounts may not sum due to rounding
HASBRO, INC.
SUPPLEMENTAL FINANCIAL DATA
SEGMENT RESULTS - AS REPORTED AND AS ADJUSTED (5)
(Unaudited)
(Millions of Dollars)
Operating Results
Quarter Ended March 31, 2024
Quarter Ended April 2, 2023
As Reported
Non-GAAP Adjustments
Adjusted
As Reported
Non-GAAP Adjustments
Adjusted
% Change
Total Company Results
External Net Revenues (1)
$
757.3
$
—
$
757.3
$
1,001.0
$
—
$
1,001.0
-24
%
Operating Profit
116.2
32.4
148.6
17.9
29.3
47.2
>100%
Operating Margin
15.3
%
4.3
%
19.6
%
1.8
%
2.9
%
4.7
%
Segment Results
Consumer Products:
External Net Revenues (2)
$
413.0
$
—
$
413.0
$
520.4
$
—
$
520.4
-21
%
Operating Profit (Loss)
(46.9
)
9.1
(37.8
)
(46.0
)
10.6
(35.4
)
-7
%
Operating Margin
-11.4
%
2.2
%
-9.2
%
-8.8
%
2.0
%
-6.8
%
Wizards of the Coast and Digital Gaming:
External Net Revenues (3)
$
316.3
$
—
$
316.3
$
295.2
$
—
$
295.2
7
%
Operating Profit
122.8
—
122.8
76.8
—
76.8
60
%
Operating Margin
38.8
%
—
38.8
%
26.0
%
—
26.0
%
Entertainment:
External Net Revenues (4)
$
28.0
$
—
$
28.0
$
185.4
$
—
$
185.4
-85
%
Operating Profit (Loss)
5.8
12.4
18.2
(8.7
)
6.2
(2.5
)
>100%
Operating Margin
20.7
%
44.3
%
65.0
%
-4.7
%
3.3
%
-1.3
%
Corporate and Other:
Operating Profit (Loss)
$
34.5
$
10.9
$
45.4
$
(4.2
)
$
12.5
$
8.3
>100%
Net Revenues
Quarter Ended
March 31, 2024
April 2, 2023
% Change
(1) Net Revenues by Brand Portfolio
Franchise Brands (a)
$
606.5
$
613.4
-1
%
Partner Brands
87.7
132.7
-34
%
Portfolio Brands (b)
63.1
92.1
-31
%
Non-Hasbro Branded Film & TV (b)
—
162.8
-100
%
Total
$
757.3
$
1,001.0
(a) Franchise Brands include: DUNGEONS & DRAGONS, Hasbro Gaming, MAGIC: THE GATHERING, NERF, PEPPA PIG, PLAY-DOH and TRANSFORMERS.
(b) Effective in the first quarter of 2024, the Company moved the remaining Non-Hasbro Branded Film & TV brands into Portfolio Brands to align with the Company's Brand Strategy. For comparability net revenues for quarter ended April 2, 2023, has been restated to reflect the movement, resulting in a change of $0.10.
Net Revenues
Quarter Ended
March 31, 2024
April 2, 2023
% Change
MAGIC: THE GATHERING
$
237.9
$
229.1
4
%
Hasbro Total Gaming (c)
408.0
386.5
6
%
(c) Hasbro Total Gaming includes all gaming revenue, most notably DUNGEONS & DRAGONS, MAGIC: THE GATHERING and Hasbro Gaming.
Net Revenues
Quarter Ended
March 31, 2024
April 2, 2023
% Change
(2) Consumer Products Segment Net Revenues by Major Geographic Region
North America
$
239.1
$
279.1
-14
%
Europe
87.5
131.6
-34
%
Asia Pacific
48.8
63.3
-23
%
Latin America
37.6
46.4
-19
%
Total
$
413.0
$
520.4
Net Revenues
Quarter Ended
March 31, 2024
April 2, 2023
% Change
(3) Wizards of the Coast and Digital Gaming Net Revenues by Category
Tabletop Gaming
$
228.2
$
217.9
5
%
Digital and Licensed Gaming
88.1
77.3
14
%
Total
$
316.3
$
295.2
Net Revenues
Quarter Ended
March 31, 2024
April 2, 2023
% Change
(4) Entertainment Segment Net Revenues by Category
Film and TV
$
—
$
168.4
-100
%
Family Brands
28.0
17.0
65
%
Total
$
28.0
$
185.4
(5) Amounts within this section may not sum due to rounding
HASBRO, INC.
SUPPLEMENTAL FINANCIAL DATA
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Unaudited)
(Millions of Dollars)
Reconciliation of EBITDA and Adjusted EBITDA (1)
Quarter Ended
March 31, 2024
April 2, 2023
Net Earnings (Loss) Attributable to Hasbro, Inc.
$
58.2
$
(22.1
)
Interest Expense
38.5
46.3
Income Tax Expense
21.9
0.7
Net Earnings Attributable to Noncontrolling Interests
0.9
0.4
Depreciation
21.3
24.0
Amortization of Intangibles
17.0
23.1
EBITDA
$
157.8
$
72.4
Non-GAAP Adjustments and Stock Compensation (2)
15.0
26.3
Adjusted EBITDA
$
172.8
$
98.7
(2) Non-GAAP Adjustments and Stock Compensation are comprised of the following:
Stock compensation
$
(5.0
)
$
15.7
Operational Excellence charges
10.9
10.6
Blueprint 2.0 implementation charges
9.1
—
Total
$
15.0
$
26.3
(1) Amounts may not sum due to rounding
HASBRO, INC.
SUPPLEMENTAL FINANCIAL DATA
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Unaudited)
(Millions of Dollars)
Reconciliation of Adjusted Operating Profit (1)
Quarter Ended
March 31, 2024
April 2, 2023
Operating Profit (Loss)
$
116.2
$
17.9
Consumer Products
(46.9
)
(46.0
)
Wizards of the Coast and Digital Gaming
122.8
76.8
Entertainment
5.8
(8.7
)
Corporate and Other
34.5
(4.2
)
Non-GAAP Adjustments (2)
$
32.4
$
29.3
Consumer Products
9.1
10.6
Entertainment
12.4
6.2
Corporate and Other
10.9
12.5
Adjusted Operating Profit (Loss)
$
148.6
$
47.2
Consumer Products
(37.8
)
(35.4
)
Wizards of the Coast and Digital Gaming
122.8
76.8
Entertainment
18.2
(2.5
)
Corporate and Other
45.4
8.3
(2) Non-GAAP Adjustments include the following:
Acquisition-related costs (i)
$
—
$
1.9
Acquired intangible amortization (ii)
12.4
16.8
Operational Excellence charges (iii)
Transformation office and consultant fees (a)
5.2
10.6
Severance and other employee charges (b)
5.7
—
Blueprint 2.0 implementation charges (iv)
Loss on disposal of business (a)
9.1
—
Total
$
32.4
$
29.3
(i) In association with the Company's acquisition of eOne, the Company incurred stock compensation expenses of $1.9 ($1.7 after-tax) in the quarter ended April 2, 2023. The expense is included within Selling, Distribution and Administration.
(ii) Represents intangible amortization costs related to the intangible assets acquired in the eOne acquisition. The Company has allocated certain of these intangible amortization costs between the Consumer Products and Entertainment segments, to match the revenue generated from such intangible assets. While amortization of acquired intangibles is being excluded from the related GAAP financial measure, the revenue of the acquired company is reflected within the Company's operating results to which these assets contribute.
(iii) These costs relate to the comprehensive review of the Company's operations and development of a transformation plan to support the organization in identifying, realizing and capturing savings to create efficiencies and improve business processes and operations. These charges consist of:
(a) Program related consultant and transformation office fees of $5.2 ($3.9 after tax) for the quarter ended March 31, 2024 and $10.6 ($8.1 after-tax) for the quarter ended April 2, 2023, respectively, are included within Selling, Distribution and Administration within the Corporate and Other segment.
(b) Severance and other employee charges of $5.7 ($4.4 after-tax) for the quarter ended March 31, 2024, associated with cost-savings initiatives across the Company.
(iv) The Company announced the results of its strategic review, Blueprint 2.0, a consumer-centric approach focusing on fewer, bigger brands, expanded licensing, branded entertainment, and high-margin growth in games, digital and direct. As the Company implements the new strategy, charges recognized consist of:
(a) Loss on disposal of a business of $9.1 ($9.1 after-tax) for the quarter ended March 31, 2024 related to the sale of the eOne Film and TV business not directly supporting the Company's Entertainment Strategy within the Entertainment segment, which was executed on December 27, 2023. The year to date charge is included within Loss on Disposal of Business.
(1) Amounts may not sum due to rounding
HASBRO, INC.
SUPPLEMENTAL FINANCIAL DATA
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Unaudited)
(Millions of Dollars and Shares, Except Per Share Data)
Reconciliation of Net Earnings and Earnings per Share (1)
Quarter Ended
(all adjustments reported after-tax)
March 31, 2024
Diluted Per Share Amount
April 2, 2023
Diluted Per Share Amount
Net Earnings (Loss) Attributable to Hasbro, Inc.
$
58.2
$
0.42
$
(22.1
)
$
(0.16
)
Acquisition-related costs
—
—
1.7
0.01
Acquired intangible amortization
9.3
0.07
13.3
0.10
Operational Excellence charges
8.3
0.06
8.1
0.06
Blueprint 2.0 implementation charges
9.1
0.07
—
—
Net Earnings Attributable to Hasbro, Inc., as Adjusted
$
84.9
$
0.61
$
1.0
$
0.01
(1) Amounts may not sum due to rounding
View source version on businesswire.com: https://www.businesswire.com/news/home/20240423732355/en/
Investors: Kern Kapoor | Hasbro, Inc. | hasbro_investor_relations@hasbro.com Media: Roberta Thomson | Hasbro, Inc. | bertie.thomson@hasbro.com
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