- Net revenues of $1.3 billion for the quarter, an increase of $78.9 million or 6% from a year ago, or an increase of 5% absent the impact of foreign exchange;
- Net earnings of $138.2 million, or $0.89 per diluted share, compared to $132.0 million or $0.78 per diluted share excluding the impact of a favorable tax adjustment of $29.6 million or $0.17 per diluted share in 2007;
- U.S. and Canada segment net revenues up 6% for the quarter and International segment net revenues up 9% for the quarter, or 4% excluding the impact of foreign exchange;
- Boys, Girls, Preschool and Games up globally compared to a year ago, with growth driven by strong performances from STAR WARS, PLAYSKOOL, FURREAL FRIENDS, LITTLEST PET SHOP, NERF, BABY ALIVE, and in both board and trading card games;
- Balance sheet remains strong, with operating cash flow of $579.0 million over the last 12 months.
Hasbro, Inc. (NYSE: HAS) today reported third quarter net revenues of $1.3 billion, an increase of $78.9 million or 6% compared to $1.2 billion a year ago, or an increase of 5%, excluding the favorable foreign exchange impact of $19.4 million. The Company reported net earnings for the quarter of $138.2 million or $0.89 per diluted share, compared to $161.6 million or $0.95 per diluted share in 2007. The 2007 results for the quarter include a favorable tax adjustment of $29.6 million or $0.17 per diluted share. Excluding the impact of the favorable tax adjustment, 2007 net earnings for the quarter would have been $132.0 million or $0.78 per diluted share.
“We are very pleased with our third quarter and year-to-date performance,” said Brian Goldner, President and Chief Executive Officer. “In a challenging environment, we delivered both revenue and earnings growth. As we look to the remainder of the year, we are well positioned with the richest and most diversified portfolio of brands in the industry.”
U.S. and Canada segment net revenues for the quarter were $821.0 million, an increase of $47.5 million or 6% compared to $773.5 million in 2007. The growth in revenue is attributable to STAR WARS, PLAYSKOOL, NERF, FURREAL FRIENDS, BABY ALIVE, trading card and board games, including TRIVIAL PURSUIT and SCRABBLE. Additionally, TRANSFORMERS and LITTLEST PET SHOP continued to contribute significantly to the segment in the quarter. The U.S. and Canada segment reported an operating profit of $131.9 million, compared to $122.8 million in 2007.
International segment net revenues for the quarter were $460.6 million, an increase of $37.4 million or 9% compared to $423.2 million in 2007. The revenues include a positive foreign exchange impact of approximately $18.9 million or 5%. The results reflect growth in LITTLEST PET SHOP, STAR WARS, PLAYSKOOL, FURREAL FRIENDS, BABY ALIVE, trading card and board games, including MONOPOLY and GUESS WHO. Additionally, TRANSFORMERS continued to contribute significantly to the segment in the quarter. Inclusive of the investment spending in the emerging markets, the International segment reported an operating profit of $65.8 million compared to $68.8 million in 2007.
“In light of all the uncertainty in the financial markets, I’m pleased that our balance sheet is strong and we continue to generate strong cash flow. In fact, over the last 12 months we generated $579.0 million in operating cash flows,” said David Hargreaves, Chief Operating Officer and Chief Financial Officer.
During the quarter, the Company spent a total of $150.0 million to repurchase 4.0 million shares of common stock. Year-to-date, the Company spent a total of $357.6 million to repurchase 11.7 million shares of common stock at an average share price of $30.47. As of quarter end, there was $252.4 million remaining in the current share repurchase authorization.
The Company will web cast its third quarter earnings conference call at 8:30 a.m. Eastern Standard Time today. Investors and the media are invited to listen at http://www.hasbro.com
(select "Corporate Information" from the home page, click on "Investors," and then click on the web cast microphone).
Hasbro, Inc. is a worldwide leader in children’s and family leisure time products and services with a rich portfolio of brands and entertainment properties that provides some of the highest quality and most recognizable play and recreational experiences in the world. As a brand-driven, consumer-focused global company, Hasbro brings to market a range of toys, games and licensed products, from traditional to high-tech and digital, under such powerful brand names as TRANSFORMERS, PLAYSKOOL, TONKA, MILTON BRADLEY, PARKER BROTHERS, TIGER, CRANIUM and WIZARDS OF THE COAST. Come see how we inspire play through our brands at www.hasbro.com
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