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IDW Hasbro Universe Comics Event First Strike to Arrive in September 2017

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IDW Publishing has a new Hasbro crossover on the way, and it doesn’t sound like good news for the Transformers.

CBR has the first details on “First Strike,” announced Thursday at the Diamond Retailer Summit in Chicago. The story starts with two issues in August, from the writing team of IDW Transformers vet Mairghread Scott & David Rodriguez (Narrative Director at Vicarious Visions, the game company best known for the “Skylanders” franchise) and artist Max Dunbar, recently of IDW’s “Micronauts” series.

Following 2016’s “Revolution” event — which saw IDW’s licensed Hasbro properties united in one shared universe — “First Strike” picks up with Earth about to join the Cybertronian Council of Worlds. That peaceful event is interrupted by Cobra, as Baron Ironblood — historically the British counterpart to Cobra Commander — has targeted all Cybertronians for termination, putting the Transformers in serious jeopardy. The G.I. Joes, led by Scarlett, and the Autobots, led by Optimus Prime, stand in the way in the face of extinction — enlisting help along the way from, apparently, an unlikely ally in the form of Soundwave of the Decepticons.

While this certainly sounds like the comic book equivalent of a blockbuster summer movie, Scott said it’s also a “deeply personal character story.”

“One man attempts to dominate, one woman stands against him,” Scott said in a statement to CBR. “Watch as Scarlett leads her G.I. Joes on a daring mission to save all of Cybertron from their gravest threat yet. ‘First Strike’ is a fast-paced, hard-hitting, and deeply personal character story set against the backdrop of intergalactic war with all the giant robots, cyborg ninjas, and massive explosions you could ask for.”

IDW Publishing Editor-in-Chief David Hedgecock described “First Strike” as the natural progression from what the company started in “Revolution.”

“In ‘Revolution,’ we united our Hasbro comic book titles into one shared universe,” Hedgecock said. “In ‘First Strike,’ we see what it’s like to live in the shadows of a massively powerful, ancient, alien race that has been warring with itself for millions of years and, in doing so, has brought death and destruction to every planet it has touched.”

“What, if anything, can one man do to save his planet? What depths will he go to in order to save mankind? How do you destroy all the Transformers?”

True to the “Revolution” spirit, it won’t just be Transformers and G.I. Joe getting involved in “First Strike” — the M.AS.K. team will also be involved.

“‘First Strike’ is your childhood toy box exploding onto the [comic] page: the Transformers, G.I. Joe, and M.A.S.K. teams brought together, each of them positioned on different sides of this planet-spanning conflict,” Rodriguez said in a statement. “Sometimes the groups will line up along expected party lines, but other times, you’ll see them being torn apart from the inside, as they are forced to face the impossible concept of one human man declaring war against Cybertron and then being really good at it.”

“First Strike” will run for three months, with six issues planned to ship on a twice-monthly schedule. Tie-ins to the event will be revealed at a later date. Covers for each issue will be illustrated by “Batman/Teenage Mutant Ninja Turtles” artist Freddie E. Williams II, along with multiple variants.

Hasbro Applies for New Transformers Logo Trademark

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Filing Details:

Trademark ID: 87341865
Filed Date: Feb. 20, 2017
Owner: Hasbro, Inc.
Category: Toy action figures, toy vehicles and toy robots convertible into other visual toy forms

Hasbro Reports First $5 Billion Revenue Year with Growth in Revenue, Operating Profit and Net Earnings for Full-Year 2016

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Hasbro Reports First $5 Billion Revenue Year with Growth in Revenue, Operating Profit and Net Earnings for Full-Year 2016

Board of Directors Increases Quarterly Dividend 12%, or $0.06 per share, to $0.57 per share

Full-Year 2016

• 2016 full-year net revenues of $5.02B increased 13%, including a negative $61.0 million impact of foreign exchange; Revenues grew 14% excluding the negative impact of foreign exchange;
  
• 2016 revenues grew in all major operating segments: 15% in the U.S. and Canada segment; 11% in the International segment; and 8% in the Entertainment and Licensing segment;
  
• Games category revenues increased 9%; Revenues also grew in both the Girls and Boys categories; Franchise Brand revenues grew 2% and Partner Brand revenues increased 28%;
  
• 2016 Operating profit increased 14% to $788.0M; Net earnings increased 22% to $551.4 million or $4.34 per diluted share;
  
• $774.9 million in operating cash flow generated during the year; Year-end cash and cash equivalents of $1.28B; Inventories flat year-over-year;
  
• Company returned $400.2 million to shareholders in 2016; $248.9 million in dividends and $151.3 million in share repurchases.

Fourth Quarter 2016

• Fourth Quarter net revenues increased 11% to $1.63 billion; Net earnings increased 10% to $192.7 million, or $1.52 per diluted share.

PAWTUCKET, R.I.--(BUSINESS WIRE)-- Hasbro, Inc. (NASDAQ: HAS) today reported financial results for the full-year and fourth quarter 2016. Net revenues for the full-year 2016 increased 13% to $5.02 billion versus $4.45 billion in 2015. Excluding a negative $61.0 million impact from foreign exchange, 2016 revenues increased 14%.

As reported net earnings for the full-year 2016 increased 22% to $551.4 million, or $4.34 per diluted share, compared to $451.8 million, or $3.57 per diluted share in 2015. Adjusted net earnings for the full-year 2016 were $566.1 million, or $4.46 per diluted share. Adjusted 2016 earnings exclude a pre-tax $32.9 million, or $0.12 per diluted share, non-cash fourth quarter goodwill impairment charge related to Backflip Studios. Adjusted full-year 2016 net earnings compares to 2015 adjusted net earnings of $445.0 million, or $3.51 per diluted share, which exclude a pre-tax gain of $9.6 million from the sale of the Company's manufacturing operations in East Longmeadow, MA and Waterford, Ireland.

"Hasbro's global team delivered a tremendous 2016. We reached the $5 billion revenue mark for the first time in company history, we improved profitability and we invested to grow Hasbro over the long-term while increasing our dividend and share repurchase levels," said Brian Goldner, Hasbro's Chairman, President and Chief Executive Officer. "Hasbro's foresight to build brands led by storytelling, consumer insights and innovation, combined with the relentless execution of our Brand Blueprint including investments in entertainment and digital gaming, is driving our business and creating long-term strategic differentiators for Hasbro. We are well positioned for a successful 2017 and the continued advancement of Hasbro's brand-building capabilities for years to come."

"Our strong top line performance continued in the fourth quarter and we profitably grew Hasbro throughout the year," said Deborah Thomas, Hasbro's Chief Financial Officer. "Looking ahead, we are very well positioned to support our business. We continue investing in our industry-leading brands, our differentiated capabilities around the Brand Blueprint and in our systems to support long-term, cost efficient business growth. We ended the year with $1.28 billion in cash, inventories in line with last year, and we paid out $400 million to shareholders through dividends and share repurchases."

Fourth Quarter 2016 Financial Results

Fourth quarter 2016 net revenues increased 11% to $1.63 billion compared to $1.47 billion in 2015. Excluding a negative $11.9 million impact from foreign exchange, fourth quarter 2016 revenues increased 12%.

As reported net earnings for the fourth quarter 2016 increased 10% to $192.7 million, or $1.52 per diluted share, compared to $175.8 million, or $1.39 per diluted share in 2015. Adjusted net earnings for the fourth quarter 2016 were $207.4 million, or $1.64 per diluted share, excluding a pre-tax $32.9 million, or $0.12 per diluted share, non-cash fourth quarter goodwill impairment charge related to Backflip Studios.

Full-Year 2016 Major Segment Performance
Net Revenues ($ Millions) Operating Profit ($ Millions)
FY 2016 FY 2015 % Change FY 2016 FY 2015 % Change
U.S. and Canada $2,559.9 $2,225.5 +15% $522.3 $430.7 +21%
International $2,194.7 $1,971.9 +11% $294.5 $255.4 +15%
Entertainment and Licensing $265.2 $244.7 +8% $49.9 $76.9 -35%

Note: Full-year 2016 Entertainment and Licensing segment operating profit includes a fourth quarter 2016 non-cash goodwill impairment charge. The impact of that charge and the impact on the fourth quarter and full-year 2015 segment operating profit from the sale of manufacturing operations is outlined in the attached schedule "Net Earnings and Earnings per Share Excluding Goodwill Impairment and Gain on Sale of Manufacturing Operations."

Full-year 2016 U.S. and Canada segment net revenues increased 15% to $2.56 billion compared to $2.23 billion in 2015. Growth in the Girls, Games and Boys categories offset a decline in the Preschool category. The U.S. and Canada segment reported operating profit growth of 21% to $522.3 million, or 20.4% of net revenues, compared to $430.7 million, or 19.4% of net revenues in 2015.

International segment net revenues increased 11% to $2.19 billion compared to $1.97 billion in 2015, behind growth in all four product categories: Girls, Preschool, Games and Boys. On a regional basis, Europe revenues increased 14%, Latin America grew 9% and Asia Pacific was up 6%. Emerging markets increased 9%. Excluding an unfavorable $58.4 million impact of foreign exchange, net revenues in the International segment grew 14%, increasing 15% in Europe, 18% in Latin America and 7% in Asia Pacific. Emerging markets increased approximately 12% absent the impact of foreign exchange. International segment operating profit increased 15% to $294.5 million, or 13.4% of revenues, compared to $255.4 million, or 13.0% of net revenues.

Entertainment and Licensing segment net revenues increased 8% to $265.2 million compared to $244.7 million in 2015. Full-year gains were driven by growth in Consumer Products and Digital Gaming, as well as the addition of Boulder Media. As reported operating profit was $49.9 million compared to $76.9 million in 2015. Adjusted operating profit was $82.7 million, which excludes a pre-tax $32.9 million, or $0.12 per diluted share, non-cash fourth quarter goodwill impairment charge related to Backflip Studios.

Fourth Quarter and Full-Year 2016 Product Category Performance
Net Revenues ($ Millions)
Q4 2016 Q4 2015 % Change FY 2016 FY 2015 % Change
Boys $552.3 $569.8 -3% $1,849.6 $1,775.9 +4%
Games $518.7 $465.8 +11% $1,387.1 $1,276.5 +9%
Girls $394.2 $258.8 +52% $1,193.9 $798.2 +50%
Preschool $164.8 $170.9 -4% $589.2 $596.8 -1%

Boys category revenues for the full-year 2016 increased 4% to $1.85 billion. Revenue growth for the year was driven by gains in Franchise Brand NERF, as well as shipments of YO-KAI WATCH.

Games category revenues for the year increased 9% to $1.39 billion. Hasbro's differentiated gaming portfolio drove growth across gaming formats, including face-to-face gaming, off-the-board gaming and digital gaming. Franchise Brand MAGIC: THE GATHERING revenues increased for the eighth straight year, along with growth in PIE FACE, DUEL MASTERS, SIMON, BOP-IT and the successful launch of the SPEAK-OUT game.

Girls category revenues in 2016 grew 50% to a record $1.19 billion. The category benefited from shipments of Hasbro's line of DISNEY PRINCESS and DISNEY FROZEN fashion and small dolls, the successful launch of DREAMWORKS' TROLLS and significant growth from BABY ALIVE. Additional revenue growth came from Hasbro brands including FURREAL FRIENDS and EASY-BAKE OVEN products.

Preschool category revenues declined 1% to $589.2 million in 2016. The fifth consecutive year of revenue growth in Franchise Brand PLAY-DOH was more than offset by declines in PLAYSKOOL HEROES and core PLAYSKOOL items.

Beginning with the first quarter 2017 earnings, Hasbro will report its revenue by brand portfolio: Franchise Brands, Partner Brands, Hasbro Gaming and Emerging Brands. At that time, the Company will cease providing a revenue breakdown by product category: Boys, Games, Girls and Preschool. Fourth quarter and full-year 2016 and 2015 brand portfolio revenue is available in the following table.

Fourth Quarter and Full-Year 2016 Brand Portfolio Performance
Net Revenues ($ Millions)
Q4 2016 Q4 2015 % Change FY 2016 FY 2015 % Change
Franchise Brands $685.6 $669.0 +2% $2,327.7 $2,285.4 +2%
Partner Brands $433.7 $375.4 +16% $1,412.8 $1,101.3 +28%
Hasbro Gaming* $356.9 $291.1 +23% $813.4 $662.3 +23%
Emerging Brands $153.7 $129.9 +18% $466.0 $398.5 +17%

*Hasbro's total gaming category, including all gaming revenue, most notably MAGIC: THE GATHERING and MONOPOLY, totaled $518.7 million for the fourth quarter 2016, up 11%, and $1,387.1 million, up 9%, for the full year 2016. Hasbro believes its gaming portfolio is a competitive differentiator and views it in its entirety.

Dividend and Share Repurchase

In 2016, Hasbro returned $400.2 million to shareholders including $248.9 million in cash dividends. Hasbro's Board of Directors has declared a quarterly cash dividend of $0.57 per common share. This represents an increase of $0.06 per share, or 12%, from the previous quarterly dividend of $0.51 per common share. The dividend will be payable on May 15, 2017 to shareholders of record at the close of business on May 1, 2017.

In 2016, Hasbro repurchased 1.89 million shares at a total cost of $151.3 million and an average price of $79.86 per share. At year end, $328.0 million remained available in the current share repurchase authorization.

Conference Call Webcast

Hasbro will webcast its fourth quarter and full-year 2016 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 http://investor.hasbro.com. The replay of the call will be available on Hasbro's web site approximately 2 hours following completion of the call.

Hasbro (NASDAQ: HAS) is a global play and entertainment company committed to Creating the World's Best Play Experiences. From toys and games to television, movies, digital gaming and consumer products, Hasbro offers a variety of ways for audiences to experience its iconic brands, including NERF, MY LITTLE PONY, TRANSFORMERS, PLAY-DOH, MONOPOLY, LITTLEST PET SHOP and MAGIC: THE GATHERING, as well as premier partner brands. The Company's Hasbro Studios and its film label, Allspark Pictures, are building its brands globally through great storytelling and content on all screens. Through its commitment to corporate social responsibility and philanthropy, Hasbro is helping to make the world a better place for children and their families. Learn more at http://www.hasbro.com, and follow us on Twitter (@Hasbro & @HasbroNews) and Instagram (@Hasbro). © 2017 Hasbro, Inc. All Rights Reserved.

Certain statements in this release contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include expectations concerning the Company's potential performance in the future, including with respect to anticipated future benefits from investments in the Company's business and strategic efforts to grow the Company's brand portfolio and content delivery over the longer-term, and the Company's ability to achieve its other financial and business goals and may be identified by the use of forward-looking words or phrases. The Company's 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. Specific factors that might cause such a difference include, but are not limited to: (i) the Company's ability to design, develop, produce, manufacture, source and ship products on a timely and cost-effective basis, as well as interest in and purchase of those products by retail customers and consumers in quantities and at prices that will be sufficient to profitably recover the Company's costs; (ii) downturns in economic conditions affecting the Company's markets which can negatively impact the Company's retail customers and consumers, and which can result in lower employment levels, lower consumer disposable income and spending, including lower spending on purchases of the Company's products; (iii) other factors which can lower discretionary consumer spending, such as higher costs for fuel and food, drops in the value of homes or other consumer assets, and high levels of consumer debt; (iv) potential difficulties or delays the Company may experience in implementing cost savings and efficiency enhancing initiatives; (v) other economic and public health conditions or regulatory changes in the markets in which the Company and its customers and suppliers operate which could create delays or increase the Company's costs, such as higher commodity prices, labor costs or transportation costs, or outbreaks of disease; (vi) currency fluctuations, including movements in foreign exchange rates, which can lower the Company's net revenues and earnings, and significantly impact the Company's costs; (vii) the concentration of the Company's customers, potentially increasing the negative impact to the Company of difficulties experienced by any of the Company's customers or changes in their purchasing or selling patterns; (viii) consumer interest in and acceptance of the Discovery Family Channel, and content created by Hasbro Studios and Allspark Pictures; (ix) the inventory policies of the Company's retail customers, including retailers' potential decisions to lower their inventories, even if it results in lost sales, as well as the concentration of the Company's revenues in the second half of the year, which coupled with reliance by retailers on quick response inventory management techniques increases the risk of underproduction of popular items, overproduction of less popular items and failure to achieve compressed shipping schedules; (x) delays, increased costs or difficulties associated with any of our or our partners' planned digital applications or media and entertainment initiatives; (xi) work disruptions, which may impact the Company's ability to manufacture or deliver product in a timely and cost-effective manner; (xii) the bankruptcy or other lack of success of one of the Company's significant retailers which could negatively impact the Company's revenues or bad debt exposure; (xiii) the impact of competition on revenues, margins and other aspects of the Company's business, including the ability to offer Company products which consumers choose to buy instead of competitive products, the ability to secure, maintain and renew popular licenses and the ability to attract and retain talented employees; (xiv) concentration of manufacturing for many of the Company's products in the People's Republic of China and the associated impact to the Company of social, economic or public health conditions and other factors affecting China, the movement of products into and out of China, the cost of producing products in China and exporting them to other countries; (xv) the risk of product recalls or product liability suits and costs associated with product safety regulations; (xvi) changes in laws or regulations in the United States and/or in other major markets in which the Company operates, including, without limitation, with respect to taxes, tariffs or product safety, which may increase the Company's product costs and other costs of doing business, and reduce the Company's earnings, (xvii) failure to realize the planned benefits from any investments or acquisitions made by the Company, (xviii) the impact of other market conditions, third party actions or approvals and competition which could reduce demand for the Company's products or delay or increase the cost of implementation of the Company's programs or alter the Company's actions and reduce actual results; (xix) the impact of litigation or arbitration decisions or settlement actions; and (xx) other risks and uncertainties as may be detailed from time to time in the Company's public announcements and Securities and Exchange Commission ("SEC") filings. 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.

This press release includes non-GAAP financial measures as defined under SEC rules. Other companies may calculate these measures differently. These non-GAAP financial measures include EBITDA. EBITDA represents net earnings attributable to Hasbro, Inc. excluding net loss attributable to noncontrolling interests, interest expense, income taxes, depreciation and amortization. As required by SEC rules, we have provided reconciliation on the attached schedule of this measure to the most directly comparable GAAP measure. Management believes that EBITDA is one of the appropriate measures for evaluating the operating performance of the Company because it reflects the resources available for strategic opportunities including, among others, to invest in the business, strengthen the balance sheet, and make strategic acquisitions.

The press release also includes certain of the Company's 2016 and 2015 cost and expenses, income tax expense, net earnings and diluted earnings per share excluding the impact of the non-cash goodwill impairment charge and the gain on the sale of the Company's manufacturing operations in East Longmeadow, MA and Waterford, Ireland. Management believes that the presentation excluding the impact of the goodwill impairment charge and the gain on the sale of the manufacturing operations provides a useful measure of the underlying operations of the Company. In addition, the press release includes the increases in the Company's International segment and certain region net revenues excluding the impact of changes in exchange rates. The impact of changes in exchange rates is calculated by translating the 2016 local currency revenues at 2015 actual rates and comparing this amount to the 2016 reported revenues. Management believes that the presentation excluding the impact of exchange rate changes provides information that is helpful to an investor's understanding of the underlying business performance absent exchange rate fluctuations which are beyond the Company's control. These 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 the Company's 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

HASBRO, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)

(Thousands of Dollars)
Dec. 25, 2016 Dec. 27, 2015
ASSETS
Cash and Cash Equivalents $ 1,282,285 $ 976,750
Accounts Receivable, Net 1,319,963 1,217,850
Inventories 387,675 384,492
Other Current Assets 237,684 286,506
Total Current Assets 3,227,607 2,865,598
Property, Plant and Equipment, Net 267,398 237,527
Other Assets 1,596,361 1,617,592
Total Assets $ 5,091,366 $ 4,720,717


LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS
AND SHAREHOLDERS' EQUITY
Short-term Borrowings $ 172,582 $ 164,563
Current Portion of Long-term Debt 349,713 -
Payables and Accrued Liabilities 1,095,564 900,084
Total Current Liabilities 1,617,859 1,064,647
Long-term Debt 1,198,679 1,547,115
Other Liabilities 389,388 404,883
Total Liabilities 3,205,926 3,016,645
Redeemable Noncontrolling Interests 22,704 40,170
Total Shareholders' Equity 1,862,736 1,663,902
Total Liabilities, Redeemable Noncontrolling Interests
and Shareholders' Equity $ 5,091,366 $ 4,720,717


HASBRO, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Quarter Ended Year Ended

(Thousands of Dollars and Shares Except Per Share Data)

Dec. 25,
2016





% Net
Revenues


Dec. 27,
2015


% Net
Revenues


Dec. 25,
2016


% Net
Revenues


Dec. 27,
2015


% Net
Revenues
Net Revenues $ 1,629,940 100.0 % $ 1,465,354 100.0 % $ 5,019,822 100.0 % $ 4,447,509 100.0 %
Costs and Expenses:
Cost of Sales 634,572 38.9 % 554,750 37.9 % 1,905,474 38.0 % 1,677,033 37.7 %
Royalties 135,851 8.3 % 149,137 10.2 % 409,522 8.2 % 379,245 8.5 %
Product Development 75,457 4.6 % 68,645 4.7 % 266,375 5.3 % 242,944 5.5 %
Advertising 147,992 9.1 % 121,252 8.3 % 468,940 9.3 % 409,388 9.2 %
Amortization of Intangibles 8,690 0.5 % 8,392 0.6 % 34,763 0.7 % 43,722 1.0 %
Program Production Cost Amortization 18,430 1.1 % 12,637 0.9 % 35,931 0.7 % 42,449 1.0 %
Selling, Distribution and Administration 353,791 21.7 % 291,840 19.9 % 1,110,769 22.1 % 960,795 21.6 %
Operating Profit 255,157 15.7 % 258,701 17.7 % 788,048 15.7 % 691,933 15.6 %
Interest Expense 25,142 1.5 % 24,306 1.7 % 97,405 1.9 % 97,122 2.2 %
Other (Income) Expense, Net 10,083 0.6 % 3,058 0.2 % (1,846 ) 0.0 % (9,104 ) -0.2 %
Earnings before Income Taxes 219,932 13.5 % 231,337 15.8 % 692,489 13.8 % 603,915 13.6 %
Income Taxes 39,333 2.4 % 56,943 3.9 % 159,338 3.2 % 157,043 3.5 %
Net Earnings 180,599 11.1 % 174,394 11.9 % 533,151 10.6 % 446,872 10.0 %
Net Loss Attributable to Noncontrolling Interests (12,126 ) -0.7 % (1,369 ) -0.1 % (18,229 ) -0.4 % (4,966 ) -0.1 %
Net Earnings Attributable to Hasbro, Inc. $ 192,725 11.8 % $ 175,763 12.0 % $ 551,380 11.0 % $ 451,838 10.2 %

Per Common Share
Net Earnings Attributable to Hasbro, Inc.
Basic $ 1.54 $ 1.41 $ 4.40 $ 3.61
Diluted $ 1.52 $ 1.39 $ 4.34 $ 3.57

Cash Dividends Declared $ 0.51 $ 0.46 $ 2.04 $ 1.84

Weighted Average Number of Shares
Basic 124,927 124,976 125,292 125,006
Diluted 126,699 126,686 126,966 126,688


HASBRO, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Thousands of Dollars)

Year Ended
Dec. 25, 2016 Dec. 27, 2015
Cash Flows from Operating Activities:
Net Earnings $ 533,151 $ 446,872
Non-cash Adjustments 284,221 232,702
Changes in Operating Assets and Liabilities (42,499 ) (127,129 )
Net Cash Provided by Operating Activities 774,873 552,445

Cash Flows from Investing Activities:
Additions to Property, Plant and Equipment (154,900 ) (142,022 )
(Payments) Proceeds for Acquisitions and Dispositions (12,436 ) 18,632
Other 28,945 19,743
Net Cash Utilized by Investing Activities (138,391 ) (103,647 )

Cash Flows from Financing Activities:
Net Proceeds from (Repayments of) Short-term Borrowings 8,978 (87,310 )
Purchases of Common Stock (150,075 ) (87,224 )
Stock-based Compensation Transactions 62,678 57,550
Dividends Paid (248,881 ) (225,797 )
Other (5,758 ) (3,676 )
Net Cash Utilized by Financing Activities (333,058 ) (346,457 )

Effect of Exchange Rate Changes on Cash 2,111 (18,758 )

Cash and Cash Equivalents at Beginning of Year 976,750 893,167

Cash and Cash Equivalents at End of Year $ 1,282,285 $ 976,750


HASBRO, INC.
SUPPLEMENTAL FINANCIAL DATA
(Unaudited)
(Thousands of Dollars) Quarter Ended Year Ended
Dec. 25, 2016 Dec. 27, 2015

%
Change
Dec. 25, 2016 Dec. 27, 2015

%
Change

Major Segment Results


U.S. and Canada Segment:

External Net Revenues $ 757,516 $ 690,821 10 % $ 2,559,907 $ 2,225,518 15 %
Operating Profit 157,965 155,085 2 % 522,287 430,707 21 %
Operating Margin 20.9 % 22.4 % 20.4 % 19.4 %


International Segment:

External Net Revenues 757,740 690,757 10 % 2,194,651 1,971,875 11 %
Operating Profit 128,915 113,895 13 % 294,497 255,365 15 %
Operating Margin 17.0 % 16.5 % 13.4 % 13.0 %


Entertainment and Licensing Segment:

External Net Revenues 114,684 84,275 36 % 265,205 244,685 8 %
Operating Profit 16,509 36,778 -55 % 49,876 76,868 -35 %
Operating Margin 14.4 % 43.6 % 18.8 % 31.4 %


International Segment Net Revenues by Major Geographic Region

Europe $ 499,397 $ 466,291 7 % $ 1,404,478 $ 1,236,846 14 %
Latin America 155,689 128,232 21 % 463,638 426,109 9 %
Asia Pacific 102,654 96,234 7 % 326,535 308,920 6 %
Total $ 757,740 $ 690,757 $ 2,194,651 $ 1,971,875


Net Revenues by Product Category

Boys $ 552,287 $ 569,799 -3 % $ 1,849,645 $ 1,775,917 4 %
Games 518,704 465,784 11 % 1,387,077 1,276,532 9 %
Girls 394,177 258,839 52 % 1,193,877 798,240 50 %
Preschool 164,772 170,932 -4 % 589,223 596,820 -1 %
Total Net Revenues $ 1,629,940 $ 1,465,354 $ 5,019,822 $ 4,447,509

Hasbro Reports Revenue, Operating Profit and Net Earnings Growth for Third Quarter 2016

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Hasbro Reports Revenue, Operating Profit and Net Earnings Growth for Third Quarter 2016


Highest Quarterly Revenue and Earnings in Hasbro History

• Third quarter 2016 revenues grew 14% over 2015 to $1.68 billion, including a negative $2.8 million impact of foreign exchange;
• Third quarter 2016 revenues grew in all major operating segments: The U.S. and Canada segment increased 16%; International segment increased 13%, including a negative $3.0 million impact of foreign exchange; The Entertainment and Licensing segment increased 8%;
• Growth in Boys, Games and Girls categories; Franchise Brand revenues up 2% with growth in MAGIC: THE GATHERING, NERF, TRANSFORMERS and PLAY-DOH; Partner Brand revenues grew 19% driven by DISNEY PRINCESS and DISNEY’S FROZEN, DREAMWORKS’ TROLLS and YO-KAI WATCH;
• Operating profit increased 19% and net earnings increased 24% to $257.8 million or $2.03 per diluted share;
• Company returned $112.4 million to shareholders in the quarter; $64.0 million in dividends and $48.4 million in share repurchases.

October 17, 2016 06:30 AM Eastern Daylight Time

PAWTUCKET, R.I.--(BUSINESS WIRE)--Hasbro, Inc. (NASDAQ: HAS) today reported financial results for the third quarter 2016. Net revenues for the third quarter 2016 increased 14% to $1.68 billion versus $1.47 billion in 2015. Third quarter 2016 revenues include a negative $2.8 million impact from foreign exchange.

“2016 has been a strong year, including our third quarter – which marked the greatest revenue and earnings quarter in Hasbro’s history. We are well positioned for what we believe will be a good holiday season.”Tweet this

Net earnings for the third quarter 2016 increased 24% to $257.8 million, or $2.03 per diluted share, compared to $207.6 million, or $1.64 per diluted share, in 2015. Adjusted net earnings for the third quarter 2015 were $200.5 million, or $1.58 per diluted share. These exclude a pre-tax gain of $9.9 million, or $0.06 per diluted share, from the third quarter 2015 sale of the Company’s manufacturing operations in East Longmeadow, MA and Waterford, Ireland.

“Innovative play experiences, engaging storytelling and global execution of Hasbro’s Brand Blueprint continues to drive consumer and retailer demand for our brand portfolio,” said Brian Goldner, Hasbro’s Chairman, President and Chief Executive Officer. “2016 has been a strong year, including our third quarter – which marked the greatest revenue and earnings quarter in Hasbro’s history. We are well positioned for what we believe will be a good holiday season.”

“Throughout 2016 the Hasbro team has delivered strong financial performance, in terms of revenues and earnings growth, supported by a solid balance sheet enabling our business growth,” said Deborah Thomas, Hasbro’s Chief Financial Officer. “The strength of our business enabled us to continue investing in growing Hasbro for the long term, while returning $112 million to shareholders in the quarter.”

Third Quarter 2016 Major Segment Performance
Net Revenues ($ Millions) Operating Profit ($ Millions)
Q3 2016 Q3 2015 % Change Q3 2016 Q3 2015 % Change
U.S. and Canada $932.8 $803.8 +16% $228.0 $187.1 +22%
International $690.7 $612.6 +13% $133.1 $114.2 +17%
Entertainment and Licensing $56.1 $52.1 +8% $14.1

$16.2 -13%

Third quarter 2016 U.S. and Canada segment net revenues increased 16% to $932.8 million compared to $803.8 million in 2015. Revenue growth in the Girls and Games category more than offset declines in the Boys and Preschool categories. The U.S. and Canada segment reported 22% operating profit growth to $228.0 million, or 24.4% of net revenues, compared to $187.1 million, or 23.3% of net revenues, in 2015.

International segment net revenues increased 13% to $690.7 million compared to $612.6 million in 2015. Revenues grew in the Boys, Girls and Preschool categories, and was flat in the Games category. On a regional basis, Europe grew 16%, Latin America increased 9%, and Asia Pacific was up 1%. Emerging markets revenues increased 16% in the quarter. Excluding an unfavorable $3.0 million impact of foreign exchange (FX), International segment revenues grew 13%, increasing 17% in Europe ($0.5 million negative FX impact), 12% in Latin America ($3.2 million negative FX impact) and 1% in Asia Pacific ($0.7 million favorable FX impact). Emerging markets increased approximately 15% absent the impact of foreign exchange. As reported, International segment operating profit grew 17% to $133.1 million, or 19.3% of net revenues, compared to $114.2 million, or 18.6% of net revenues, in 2015.

Entertainment and Licensing segment net revenues increased 8% to $56.1 million compared to $52.1 million in 2015, driven by growth in Consumer Products and Digital Gaming. The Entertainment and Licensing segment operating profit decreased 13% to $14.1 million, or 25.1% of net revenues, compared to $16.2 million, or 31.2% of net revenues, in 2015.

Third Quarter 2016 Product Category Performance
Net Revenues ($ Millions)
Q3 2016 Q3 2015 % Change

Nine Months
2016

Nine Months
2015 % Change
Boys $605.5 $593.1 +2% $1,297.4 $1,206.1 +8%
Games $409.5 $363.5 +13% $868.4 $810.7 +7%
Girls $462.0 $294.8 +57% $799.7 $539.4 +48%
Preschool $202.8 $219.6 -8% $424.5 $425.9 --

Boys category revenues for the third quarter increased 2% to $605.5 million. Revenue growth in the quarter was driven by gains in Franchise Brand NERF and TRANSFORMERS, as well as shipments of YO-KAI WATCH.

Games category revenues for the third quarter increased 13% to $409.5 million, behind growth in multiple gaming formats including face-to-face gaming, off-the-board gaming and digital gaming. Franchise Brand MAGIC: THE GATHERING revenues increased in the quarter, along with growth in PIE FACE, DUEL MASTERS and a number of other brands.

Girls category revenues for the third quarter increased 57% to $462.0 million. The category benefited from shipments of Hasbro’s line of DISNEY PRINCESS and DISNEY’S FROZEN fashion and small dolls and DREAMWORKS’ TROLLS as well as growth in BABY ALIVE and FURBY products.

Preschool category revenues for the third quarter declined 8% to $202.8 million. Revenue growth in Franchise Brand PLAY-DOH was more than offset by declines in PLAYSKOOL HEROES and core PLAYSKOOL items.

Dividend and Share Repurchase

The Company paid $64.0 million in cash dividends to shareholders during the third quarter 2016. The next quarterly cash dividend payment of $0.51 per common share is scheduled for November 15, 2016 to shareholders of record at the close of business on November 1, 2016.

During the third quarter, Hasbro repurchased 598,800 shares of common stock at a total cost of $48.4 million and an average price of $80.87 per share. Through the first three quarters, the Company repurchased 1,344,411 shares of common stock at a total cost of $106.2 million and an average price of $78.97 per share. At quarter-end, $373.1 million remained available in the current share repurchase authorization.

Conference Call Webcast

Hasbro will webcast its third quarter 2016 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 http://investor.hasbro.com. The replay of the call will be available on Hasbro’s web site approximately 2 hours following completion of the call.

Hasbro (NASDAQ: HAS) is a global play and entertainment company committed to Creating the World's Best Play Experiences. From toys and games to television, movies, digital gaming and consumer products, Hasbro offers a variety of ways for audiences to experience its iconic brands, including NERF, MY LITTLE PONY, TRANSFORMERS, PLAY-DOH, MONOPOLY, LITTLEST PET SHOP and MAGIC: THE GATHERING, as well as premier partner brands. The Company's Hasbro Studios and its film label, Allspark Pictures, are building its brands globally through great storytelling and content on all screens. Through its commitment to corporate social responsibility and philanthropy, Hasbro is helping to make the world a better place for children and their families. Learn more at www.hasbro.com, and follow us on Twitter (@Hasbro & @HasbroNews) and Instagram (@Hasbro). © 2016 Hasbro, Inc. All Rights Reserved.

Certain statements in this release contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include expectations concerning the Company’s potential performance in the future, including with respect to anticipated future benefits from investments in the Company’s business and strategic efforts to grow the Company’s brand portfolio and content delivery over the longer-term, and the Company’s ability to achieve its other financial and business goals and may be identified by the use of forward-looking words or phrases. The Company's 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. Specific factors that might cause such a difference include, but are not limited to: (i) the Company's ability to design, develop, produce, manufacture, source and ship products on a timely and cost-effective basis, as well as interest in and purchase of those products by retail customers and consumers in quantities and at prices that will be sufficient to profitably recover the Company’s costs; (ii) downturns in economic conditions affecting the Company’s markets which can negatively impact the Company’s retail customers and consumers, and which can result in lower employment levels, lower consumer disposable income and spending, including lower spending on purchases of the Company’s products; (iii) other factors which can lower discretionary consumer spending, such as higher costs for fuel and food, drops in the value of homes or other consumer assets, and high levels of consumer debt; (iv) potential difficulties or delays the Company may experience in implementing cost savings and efficiency enhancing initiatives; (v) other economic and public health conditions or regulatory changes in the markets in which the Company and its customers and suppliers operate which could create delays or increase the Company’s costs, such as higher commodity prices, labor costs or transportation costs, or outbreaks of disease; (vi) currency fluctuations, including movements in foreign exchange rates, which can lower the Company’s net revenues and earnings, and significantly impact the Company’s costs; (vii) the concentration of the Company's customers, potentially increasing the negative impact to the Company of difficulties experienced by any of the Company’s customers or changes in their purchasing or selling patterns; (viii) consumer interest in and acceptance of the Discovery Family Channel, and programming created by Hasbro Studios, and other factors impacting the financial performance of the network and Hasbro Studios; (ix) the inventory policies of the Company’s retail customers, including retailers’ potential decisions to lower their inventories, even if it results in lost sales, as well as the concentration of the Company's revenues in the second half of the year, which coupled with reliance by retailers on quick response inventory management techniques increases the risk of underproduction of popular items, overproduction of less popular items and failure to achieve compressed shipping schedules; (x) delays, increased costs or difficulties associated with any of our or our partners’ planned digital applications or media initiatives; (xi) work disruptions, which may impact the Company's ability to manufacture or deliver product in a timely and cost-effective manner; (xii) the bankruptcy or other lack of success of one of the Company's significant retailers which could negatively impact the Company's revenues or bad debt exposure; (xiii) the impact of competition on revenues, margins and other aspects of the Company's business, including the ability to offer Company products which consumers choose to buy instead of competitive products, the ability to secure, maintain and renew popular licenses and the ability to attract and retain talented employees; (xiv) concentration of manufacturing for many of the Company’s products in the People’s Republic of China and the associated impact to the Company of social, economic or public health conditions and other factors affecting China, the movement of products into and out of China, the cost of producing products in China and exporting them to other countries; (xv) the risk of product recalls or product liability suits and costs associated with product safety regulations; (xvi) the impact of other market conditions, third party actions or approvals and competition which could reduce demand for the Company’s products or delay or increase the cost of implementation of the Company's programs or alter the Company's actions and reduce actual results; (xvii) the impact of litigation or arbitration decisions or settlement actions; and (xviii) other risks and uncertainties as may be detailed from time to time in the Company's public announcements and Securities and Exchange Commission (“SEC”) filings. 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.

This press release includes non-GAAP financial measures as defined under SEC rules. Other companies may calculate these measures differently. These non-GAAP financial measures include EBITDA. EBITDA represents net earnings attributable to Hasbro, Inc. excluding net loss attributable to noncontrolling interests, interest expense, income taxes, depreciation and amortization. As required by SEC rules, we have provided reconciliation on the attached schedule of this measure to the most directly comparable GAAP measure. Management believes that EBITDA is one of the appropriate measures for evaluating the operating performance of the Company because it reflects the resources available for strategic opportunities including, among others, to invest in the business, strengthen the balance sheet, and make strategic acquisitions.

The press release also includes certain of the Company’s 2015 cost and expenses, income tax expense, net earnings and diluted earnings per share excluding the impact of the sale of the Company’s manufacturing operations in East Longmeadow, MA and Waterford, Ireland. Management believes that the presentation excluding the impact of the sale better reflects the results of the underlying operations of the Company. In addition, the press release includes the increases in the Company’s International segment and certain region net revenues excluding the impact of changes in exchange rates. The impact of changes in exchange rates is calculated by translating the 2016 local currency revenues at 2015 actual rates and comparing this amount to the 2016 reported revenues. Management believes that the presentation excluding the impact of exchange rate changes provides information that is helpful to an investor’s understanding of the underlying business performance absent exchange rate fluctuations which are beyond the Company’s control. These 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 the Company's 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
HASBRO, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)

(Thousands of Dollars)
Sept. 25, 2016 Sept. 27, 2015
ASSETS
Cash and Cash Equivalents $ 830,372 $ 551,292
Accounts Receivable, Net 1,452,931 1,390,274
Inventories 607,701 447,090
Other Current Assets

249,394 320,895
Total Current Assets 3,140,398 2,709,551
Property, Plant and Equipment, Net 247,231 219,656
Other Assets 1,560,929 1,637,940
Total Assets $ 4,948,558 $ 4,567,147


LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS
AND SHAREHOLDERS' EQUITY
Short-term Borrowings $ 178,666 $ 113,970
Current Portion of Long-term Debt 349,611 -
Payables and Accrued Liabilities 1,080,853 925,599
Total Current Liabilities 1,609,130 1,039,569
Long-term Debt 1,198,461 1,546,796
Other Liabilities 364,378 396,772
Total Liabilities 3,171,969 2,983,137
Redeemable Noncontrolling Interests 34,829 41,173
Total Shareholders' Equity 1,741,760 1,542,837
Total Liabilities, Redeemable Noncontrolling Interests
and Shareholders' Equity $ 4,948,558 $ 4,567,147
HASBRO, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Quarter Ended Nine Months Ended

(Thousands of Dollars and Shares Except Per Share Data)

Sept. 25,
2016

% Net
Revenues

Sept. 27,
2015

% Net
Revenues

Sept. 25,
2016

% Net
Revenues

Sept. 27,
2015

% Net
Revenues
Net Revenues $ 1,679,757 100.0 % $ 1,470,997 100.0 % $ 3,389,882 100.0 % $ 2,982,155 100.0 %
Costs and Expenses:
Cost of Sales 658,986

39.2 % 579,149 39.4 % 1,270,902 37.5 % 1,122,283 37.6 %
Royalties 134,294 8.0 % 113,950 7.7 % 273,671 8.1 % 230,108 7.7 %
Product Development 70,083 4.2 % 64,793 4.4 % 190,918 5.6 % 174,299 5.8 %
Advertising 154,132 9.2 % 142,029 9.7 % 320,948 9.5 % 288,136 9.7 %
Amortization of Intangibles 8,691 0.5 % 9,031 0.6 % 26,073 0.8 % 35,330 1.2 %
Program Production Cost Amortization 6,282 0.4 % 11,496 0.8 % 17,501 0.5 % 29,812 1.0 %
Selling, Distribution and Administration 285,188 17.0 % 247,022 16.8 % 756,978 22.3 % 668,955 22.4 %
Operating Profit 362,101 21.6 % 303,527 20.6 % 532,891 15.7 % 433,232 14.5 %
Interest Expense 24,305 1.4 % 24,045 1.6 % 72,263 2.1 % 72,816 2.4 %
Other (Income) Expense, Net (8,528 ) -0.5 % (5,135 ) -0.3 % (11,929 ) -0.4 % (12,162 ) -0.4 %
Earnings before Income Taxes 346,324 20.6 % 284,617 19.3 % 472,557 13.9 % 372,578 12.5 %
Income Taxes 90,162 5.4 % 78,242 5.3 % 120,005 3.5 % 100,100 3.4 %
Net Earnings 256,162 15.2 % 206,375 14.0 % 352,552 10.4 % 272,478 9.1 %
Net Loss Attributable to Noncontrolling Interests (1,636 ) -0.1 % (1,224 ) -0.1 % (6,103 ) -0.2 % (3,597 ) -0.1 %
Net Earnings Attributable to Hasbro, Inc. $ 257,798 15.3 % $ 207,599 14.1 % $ 358,655 10.6 % $ 276,075 9.3 %

Per Common Share
Net Earnings Attributable to Hasbro, Inc.
Basic $ 2.05 $ 1.66 $ 2.86 $ 2.21
Diluted $ 2.03 $ 1.64 $ 2.82 $ 2.18

Cash Dividends Declared $ 0.51 $ 0.46 $ 1.53 $ 1.38

Weighted Average Number of Shares
Basic 125,500 125,100 125,414 125,016
Diluted 127,178 126,917 127,056 126,689
HASBRO, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Thousands of Dollars)

Nine Months Ended
Sept. 25, 2016 Sept. 27, 2015
Cash Flows from Operating Activities:
Net Earnings $ 352,552 $ 272,478
Non-cash Adjustments 197,665 174,372
Changes in Operating Assets and Liabilities (396,436 ) (377,292 )
Net Cash Provided by Operating Activities 153,781 69,558

Cash Flows from Investing Activities:
Additions to Property, Plant and Equipment (103,639 ) (97,873 )
Investments and Dispositions (12,436 ) 15,632
Other 25,576 23,447
Net Cash Utilized by Investing Activities (90,499 ) (58,794 )

Cash Flows from Financing Activities:
Net Proceeds from (Repayments of) Short-term Borrowings 14,160 (138,101 )
Purchases of Common Stock (104,273 ) (74,110 )
Stock-based Compensation Transactions 57,227 43,733
Dividends Paid (185,265 ) (168,393 )
Other 762 928
Net Cash Utilized by Financing Activities (217,389 ) (335,943 )

Effect of Exchange Rate Changes on Cash 7,729 (16,696 )

Cash and Cash Equivalents at Beginning of Year 976,750 893,167

Cash and Cash Equivalents at End of Period $ 830,372 $ 551,292
HASBRO, INC.
SUPPLEMENTAL FINANCIAL DATA
(Unaudited)
(Thousands of Dollars)

Quarter Ended Nine Months Ended


Sept. 25,
2016

Sept. 27,
2015

%
Change

Sept. 25,
2016

Sept. 27,
2015

%
Change


Major Segment Results


U.S. and Canada Segment:
External Net Revenues $ 932,844 $ 803,824 16 % $ 1,802,391 $ 1,534,697 17 %
Operating Profit 228,034 187,052 22 % 364,322 275,622 32 %
Operating Margin 24.4 % 23.3 % 20.2 % 18.0 %



International Segment:
External Net Revenues 690,745 612,645 13 % 1,436,911 1,281,118 12 %
Operating Profit 133,075 114,206 17 % 165,582 141,470 17 %
Operating Margin 19.3 % 18.6 % 11.5 % 11.0 %



Entertainment and Licensing Segment:
External Net Revenues 56,130 52,139 8 % 150,521 160,410 -6 %
Operating Profit 14,095 16,245 -13 % 33,367 40,090 -17 %
Operating Margin 25.1 % 31.2 % 22.2 % 25.0 %



International Segment Net Revenues by Major Geographic Region
Europe $ 452,834 $ 389,024 16 % $ 905,081 $ 770,555 17 %
Latin America 154,985 141,901 9 % 307,949 297,877 3 %
Asia Pacific 82,926 81,720 1 % 223,881 212,686 5 %
Total $ 690,745 $ 612,645 $ 1,436,911 $ 1,281,118



Net Revenues by Product Category
Boys $ 605,452 $ 593,094 2 % $ 1,297,358 $ 1,206,118 8 %
Games 409,528 363,470 13 % 868,373 810,748 7 %
Girls 462,021 294,785 57 % 799,700 539,401 48 %
Preschool 202,756 219,648 -8 % 424,451 425,888 0 %
Total Net Revenues $ 1,679,757 $ 1,470,997 $ 3,389,882 $ 2,982,155
HASBRO, INC.
SUPPLEMENTAL FINANCIAL DATA
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Unaudited)
(Thousands of Dollars)


Net Earnings and Earnings per Share Excluding Gain on Sale of Manufacturing Operations
Quarter Ended


Sept. 25, 2016

Diluted Per
Share Amount

Sept. 27, 2015

Diluted Per
Share Amount
Net Earnings Attributable to Hasbro, Inc., as Reported $ 257,798 $ 2.03 $ 207,599 $ 1.64
Gain on Sale of Manufacturing Operations - - (7,050 ) (0.06 )
Net Earnings Attributable to Hasbro, Inc., as Adjusted $ 257,798 $ 2.03 $ 200,549 $ 1.58

Nine Months Ended
Sept. 25, 2016

Diluted Per
Share Amount Sept. 27, 2015

Diluted Per
Share Amount
Net Earnings Attributable to Hasbro, Inc., as Reported $ 358,655 $ 2.82 $ 276,075 $ 2.18
Gain on Sale of Manufacturing Operations - - (7,050 ) (0.06 )
Net Earnings Attributable to Hasbro, Inc., as Adjusted $ 358,655 $ 2.82 $ 269,025 $ 2.12


The line items impacted by the gain on sale and the impact on the line excluding the gain as a percentage of revenues is as follows:

As Reported

% Net
Revenues

Less Gain on
Sale on
Manufacturing
Operations

Excluding Gain
on Sale of
Manufacturing
Operations

% Net
Revenues


Quarter ended September 27, 2015
Selling, Distribution and Administration $ 247,022 16.8 % $ 3,061 $ 250,083 17.0 %
Other (Income) Expense, Net (5,135 ) -0.3 % 6,832 1,697 0.1 %
Tax expense 78,242 5.3 % 2,843 75,399 5.1 %



Nine months ended September 27, 2015
Selling, Distribution and Administration $ 668,955 22.4 % $ 3,061 $ 672,016 22.5 %
Other (Income) Expense, Net (12,162 ) -0.4 % 6,832 (5,330 ) -0.2 %
Tax expense 100,100 3.4 % 2,843 97,257 3.3 %


Quarter Ended Nine Months Ended


Reconciliation of EBITDA Sept. 25, 2016 Sept. 27, 2015 Sept. 25, 2016 Sept. 27, 2015
Net Earnings Attributable to Hasbro, Inc. $ 257,798 $ 207,599 $ 358,655 $ 276,075
Net Loss Attributable to Noncontrolling Interests (1,636 ) (1,224 ) (6,103 ) (3,597 )
Interest Expense 24,305 24,045 72,263 72,816
Income Taxes 90,162 78,242 120,005 100,100
Depreciation 32,236 35,644 89,327 86,393
Amortization of Intangibles 8,691 9,031 26,073 35,330
EBITDA $ 411,556 $ 353,337 $ 660,220 $ 567,117

New Hasbro Trademark Filed: HasbroCon

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Trademark/Service Mark Application, Principal Register

Serial Number: 87030087
Filing Date: 05/09/2016
To the Commissioner for Trademarks:

MARK: HASBROCON (Standard Characters, see mark)
The literal element of the mark consists of HASBROCON.
The mark consists of standard characters, without claim to any particular font, style, size, or color.

The applicant, Hasbro, Inc., a corporation of Rhode Island, having an address of
1027 Newport Avenue
Pawtucket, Rhode Island 02862
United States


requests registration of the trademark/service mark identified above in the United States Patent and Trademark Office on the Principal Register established by the Act of July 5, 1946 (15 U.S.C. Section 1051 et seq.), as amended, for the following:

International Class 041: Organizing and conducting conventions, exhibitions, fan clubs and gatherings for entertainment purposes and in the fields of toys, animation, comic books, fantasy, gaming, popular culture, science fiction, television and film
Intent to Use: The applicant has a bona fide intention, and is entitled, to use the mark in commerce on or in connection with the identified goods/services.


Claim of Active Prior Registration(s)
The applicant claims ownership of active prior U.S. Registration Number(s) 0742643, 4276019, 4877730, and others.

The applicant's current Correspondence Information:
Hasbro, Inc.
Hasbro, Inc.
1027 Newport Avenue
Pawtucket, Rhode Island 02862
401-727-5530(phone)
401-709-6448(fax)
paul.vanasse@hasbro.com;tracy.valenti@hasbro.com (authorized)
E-mail Authorization: I authorize the USPTO to send e-mail correspondence concerning the application to the applicant or applicant's attorney at the e-mail address provided above. I understand that a valid e-mail address must be maintained and that the applicant or the applicant's attorney must file the relevant subsequent application-related submissions via the Trademark Electronic Application System (TEAS). Failure to do so will result in an additional processing fee of $50 per international class of goods/services.

A fee payment in the amount of $275 has been submitted with the application, representing payment for 1 class(es).

Declaration

The signatory believes that: if the applicant is filing the application under 15 U.S.C. § 1051(a), the applicant is the owner of the trademark/service mark sought to be registered; the applicant is using the mark in commerce on or in connection with the goods/services in the application; the specimen(s) shows the mark as used on or in connection with the goods/services in the application; and/or if the applicant filed an application under 15 U.S.C. § 1051(b), § 1126(d), and/or § 1126(e), the applicant is entitled to use the mark in commerce; the applicant has a bona fide intention, and is entitled, to use the mark in commerce on or in connection with the goods/services in the application. The signatory believes that to the best of the signatory's knowledge and belief, no other persons, except, if applicable, concurrent users, have the right to use the mark in commerce, either in the identical form or in such near resemblance as to be likely, when used on or in connection with the goods/services of such other persons, to cause confusion or mistake, or to deceive. The signatory being warned that willful false statements and the like are punishable by fine or imprisonment, or both, under 18 U.S.C. § 1001, and that such willful false statements and the like may jeopardize the validity of the application or any registration resulting therefrom, declares that all statements made of his/her own knowledge are true and all statements made on information and belief are believed to be true.

Declaration Signature

Signature: /Paul N. Vanasse/ Date: 05/09/2016
Signatory's Name: Paul N. Vanasse
Signatory's Position: Global Director of IP and Enforcement
RAM Sale Number: 87030087
RAM Accounting Date: 05/10/2016

Serial Number: 87030087
Internet Transmission Date: Mon May 09 17:07:13 EDT 2016
TEAS Stamp: USPTO/BAS-XXX.XX.XX.XX-20160509170713425
776-87030087-55067a1de68684f146a35b23a71
a42cfd4d03e7e971010cd2af225e95499c456-DA
-4042-20160509164814825922

Hasbro Reports Revenue, Operating Profit and Net Earnings Growth for First Quarter 2016

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Hasbro Reports Revenue, Operating Profit and Net Earnings Growth for First Quarter 2016

• First quarter 2016 revenues grew 16% to $831.2 million; Absent a negative $28.6 million impact of foreign exchange, first quarter 2016 revenues grew 20%;
  
• First quarter 2016 revenues grew 28% in the U.S. and Canada segment and 13% in the International segment; Absent the negative impact of foreign exchange, International segment revenues increased 22%;
  
• Growth in the Boys (+24%), Girls (+41%) and Preschool (+11%) categories; Franchise Brand revenues up 1% as reported and 4% absent foreign exchange; STAR WARS, DISNEY PRINCESS and DISNEY'S FROZEN product revenues further contributed to growth;
  
• Operating profit increased 59% and net earnings increased 83% to $48.8 million or $0.38 per diluted share;
  
• Company returned $93.2 million to shareholders in the quarter; $57.4 million in dividends and $35.8 million in share repurchases.
  

PAWTUCKET, R.I.--(BUSINESS WIRE)-- Hasbro, Inc. (NASDAQ: HAS) today reported financial results for the first quarter 2016. Net revenues for the first quarter 2016 increased 16% to $831.2 million versus $713.5 million in 2015. Excluding a negative $28.6 million impact from foreign exchange, first quarter revenues increased 20%.

Net earnings for the first quarter 2016 increased 83% to $48.8 million, or $0.38 per diluted share, compared to $26.7 million, or $0.21 per diluted share, in 2015.

"The momentum with which we ended last year has continued throughout the first quarter 2016, delivering revenue and earnings growth," said Brian Goldner, Hasbro's Chairman, President and Chief Executive Officer. "Our focus on executing our Brand Blueprint continues to drive strong retail and consumer demand for our brands, while enhancing overall profitability of Hasbro. Hasbro Franchise Brand revenue increased behind continued double-digit growth in NERF and PLAY-DOH, overcoming expected difficult quarterly comparisons in TRANSFORMERS as well as a digital streaming deal in the Entertainment and Licensing segment recorded last first quarter. Demand for STAR WARS: THE FORCE AWAKENS products continued to be high and we benefited from the addition of DISNEY PRINCESS and FROZEN fashion and small dolls. We are very encouraged with global demand and our outlook for 2016."

"The first quarter was a very good quarter for Hasbro," said Deborah Thomas, Hasbro's Chief Financial Officer. "The strength of our results reflected the continued momentum in our business and strong execution from our global teams. We grew revenues, operating profit and earnings despite the continued negative impact from foreign exchange and challenging economic environments in some international markets. We returned $93.2 million in cash to shareholders and ended the quarter with a very strong balance sheet positioned to support our 2016 growth outlook. While most of the year remains ahead of us, it was a good start to the year."

First Quarter 2016 Major Segment Performance

Net Revenues ($ Millions) Operating Profit ($ Millions)
Q1 2016 Q1 2015 % Change Q1 2016 Q1 2015 % Change
U.S. and Canada $ 443.6 $ 345.7 +28% $ 78.3 $ 41.4 +89%
International $ 345.0 $ 305.7 +13% $ 2.9 $ 1.9 +50%
Entertainment and Licensing $ 42.5 $ 60.6 -30% $ 5.4 $ 16.4 -67%


First quarter 2016 U.S. and Canada segment net revenues increased 28% to $443.6 million compared to $345.7 million in 2015. Growth in the Boys, Girls and Preschool categories more than offset a decline in the Games category. The U.S. and Canada segment reported operating profit growth of 89% to $78.3 million, or 17.7% of net revenues, compared to $41.4 million, or 12.0% of net revenues, in 2015.

International Segment net revenues increased 13% to $345.0 million compared to $305.7 million in 2015. All four product categories posted revenue growth: Boys, Games, Girls and Preschool. On a regional basis, Europe grew 14%, Latin America declined 3%, and Asia Pacific was up 25%. Emerging markets revenues declined 7% in the quarter. Excluding an unfavorable $26.7 million impact of foreign exchange, net revenues in the International Segment grew 22%, increasing 19% in Europe, 19% in Latin America and 33% in Asia Pacific. Emerging markets increased approximately 6% absent the impact of foreign exchange. As reported, International Segment operating profit of $2.9 million was up 50%, compared to $1.9 million in 2015.

Entertainment and Licensing segment net revenues decreased 30% to $42.5 million compared to $60.6 million in 2015. Last year's first quarter benefited from a multi-year digital streaming deal for Hasbro Studios television programming, which was not repeated in 2016. The Entertainment and Licensing segment operating profit declined 67% to $5.4 million compared to $16.4 million in 2015.

First Quarter 2016 Product Category Performance

Net Revenues ($ Millions)
Q1 2016 Q1 2015 % Change
Boys $ 336.9 $ 272.6 +24%
Games $ 231.1 $ 235.6 -2%
Girls $ 165.4 $ 117.1 +41%
Preschool $ 97.8 $ 88.1 +11%


First Quarter 2016 Boys category revenues increased 24% to $336.9 million. Revenue growth in the quarter was driven by gains in Franchise Brand NERF, along with Partner Brand STAR WARS as well as the addition of YOKAI WATCH. The Boys category grew 28% absent the impact of foreign exchange.

Games category revenues declined 2% for the quarter to $231.1 million. PIE FACE continued to be a strong contributor to growth, along with growth in YAHTZEE and DUEL MASTERS. Growth in these brands was more than offset by declines in other gaming brands for the quarter. The Games category was flat absent the impact of foreign exchange.

Girls category revenues increased 41% to $165.4 million. The first quarter marked the on shelf date for Hasbro's line of DISNEY PRINCESS and FROZEN fashion and small dolls. The addition of these brands along with DISNEY'S DESCENDANTS and growth in BABY ALIVE delivered strong quarterly revenue growth for the category. The Girls category increased 48% absent the impact of foreign exchange.

Preschool category revenues increased 11% to $97.8 million for the first quarter 2016. Revenue growth in Franchise Brand PLAY-DOH drove the revenue increase for the quarter. The Preschool category grew 17% absent the impact of foreign exchange.

Dividend and Share Repurchase

The Company paid $57.4 million in cash dividends to shareholders during the first quarter 2016. The next quarterly cash dividend payment of $0.51 per common share is scheduled for May 16, 2016 to shareholders of record at the close of business on May 2, 2016.

During the first quarter, Hasbro repurchased 475,000 shares of common stock at a total cost of $35.8 million and an average price of $75.41 per share. At quarter-end, $443.5 million remained available in the current share repurchase authorization.

Conference Call Webcast

Hasbro will webcast its first quarter 2016 earnings conference call at 8:30 a.m. Eastern Time today.The replay of the call will be available on Hasbro's web site approximately 2 hours following completion of the call.

About Hasbro: Hasbro (NASDAQ: HAS) is a global company committed to Creating the World's Best Play Experiences, by leveraging its beloved brands, including LITTLEST PET SHOP, MAGIC: THE GATHERING, MONOPOLY, MY LITTLE PONY, NERF, PLAY-DOH and TRANSFORMERS, and premier partner brands. From toys and games, television programming, motion pictures, digital gaming and consumer product licensing, Hasbro fulfills the fundamental need for play and connection with children and families around the world. The Company's Hasbro Studios and its film label, ALLSPARK PICTURES, create entertainment brand-driven storytelling across mediums, including television, film, digital and more. Through the Company's commitment to corporate social responsibility, including philanthropy, Hasbro is helping to build a safe and sustainable world and to positively impact the lives of millions of children and families. Learn more at www.hasbro.com, and follow us on Twitter (@Hasbro & @HasbroNews) and Instagram (@Hasbro).

© 2016 Hasbro, Inc. All Rights Reserved.

Certain statements in this release contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include expectations concerning the Company's potential performance in the future, including with respect to anticipated future benefits from investments in the Company's business and strategic efforts to grow the Company's brand portfolio and content delivery over the longer-term, and the Company's ability to achieve its other financial and business goals and may be identified by the use of forward-looking words or phrases. The Company's 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. Specific factors that might cause such a difference include, but are not limited to: (i) the Company's ability to design, develop, produce, manufacture, source and ship products on a timely and cost-effective basis, as well as interest in and purchase of those products by retail customers and consumers in quantities and at prices that will be sufficient to profitably recover the Company's costs; (ii) downturns in economic conditions affecting the Company's markets which can negatively impact the Company's retail customers and consumers, and which can result in lower employment levels, lower consumer disposable income and spending, including lower spending on purchases of the Company's products; (iii) other factors which can lower discretionary consumer spending, such as higher costs for fuel and food, drops in the value of homes or other consumer assets, and high levels of consumer debt; (iv) potential difficulties or delays the Company may experience in implementing cost savings and efficiency enhancing initiatives; (v) other economic and public health conditions or regulatory changes in the markets in which the Company and its customers and suppliers operate which could create delays or increase the Company's costs, such as higher commodity prices, labor costs or transportation costs, or outbreaks of disease; (vi) currency fluctuations, including movements in foreign exchange rates, which can lower the Company's net revenues and earnings, and significantly impact the Company's costs; (vii) the concentration of the Company's customers, potentially increasing the negative impact to the Company of difficulties experienced by any of the Company's customers or changes in their purchasing or selling patterns; (viii) consumer interest in and acceptance of the Discovery Family Channel, and programming created by Hasbro Studios, and other factors impacting the financial performance of the network and Hasbro Studios; (ix) the inventory policies of the Company's retail customers, including retailers' potential decisions to lower their inventories, even if it results in lost sales, as well as the concentration of the Company's revenues in the second half and fourth quarter of the year, which coupled with reliance by retailers on quick response inventory management techniques increases the risk of underproduction of popular items, overproduction of less popular items and failure to achieve compressed shipping schedules; (x) delays, increased costs or difficulties associated with any of our or our partners' planned digital applications or media initiatives; (xi) work disruptions, which may impact the Company's ability to manufacture or deliver product in a timely and cost-effective manner; (xii) the bankruptcy or other lack of success of one of the Company's significant retailers which could negatively impact the Company's revenues or bad debt exposure; (xiii) the impact of competition on revenues, margins and other aspects of the Company's business, including the ability to offer Company products which consumers choose to buy instead of competitive products, the ability to secure, maintain and renew popular licenses and the ability to attract and retain talented employees; (xiv) concentration of manufacturing for many of the Company's products in the People's Republic of China and the associated impact to the Company of social, economic or public health conditions and other factors affecting China, the movement of products into and out of China, the cost of producing products in China and exporting them to other countries; (xv) the risk of product recalls or product liability suits and costs associated with product safety regulations; (xvi) the impact of other market conditions, third party actions or approvals and competition which could reduce demand for the Company's products or delay or increase the cost of implementation of the Company's programs or alter the Company's actions and reduce actual results; (xvii) the impact of litigation or arbitration decisions or settlement actions; and (xviii) other risks and uncertainties as may be detailed from time to time in the Company's public announcements and Securities and Exchange Commission ("SEC") filings. 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.

This press release includes a non-GAAP financial measure as defined under SEC rules, specifically EBITDA. EBITDA represents net earnings attributable to Hasbro, Inc. excluding net loss attributable to noncontrolling interests, interest expense, income taxes, depreciation and amortization. As required by SEC rules, we have provided reconciliation on the attached schedule of this measure to the most directly comparable GAAP measure. Management believes that EBITDA is one of the appropriate measures for evaluating the operating performance of the Company because it reflects the resources available for strategic opportunities including, among others, to invest in the business, strengthen the balance sheet, and make strategic acquisitions.

The press release also includes the Company's Consolidated, International segment and product category net revenues excluding the impact of changes in exchange rates. Management believes that the presentation excluding the impact of exchange rate changes provides information that is helpful to an investor's understanding of the underlying business performance absent exchange rate fluctuations which are beyond the Company's control. These 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 the Company's 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

New Hasbro Trademark: Transformers Flip Racers

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Trademark Name: Flip Racers
Trademark ID: 86918464
Trademark Status Date: 02/29/2016
Trademark Details: Toy action figures, toy vehicles and toy robots convertible into other visual toy forms.

Vimeo Teams Up With Hasbro Studios To Bring Complete Hasbro Classic Collection To Vimeo On Demand

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Hasbro Reports Revenue, Operating Profit and Net Earnings Growth for Full Year 2014

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Full-year 2014 Boys category revenues increased 20% to $1.48 billion. Growth in TRANSFORMERS, NERF and MARVEL properties more than offset declines in BEYBLADE.

Games category revenues declined 4% for the year to $1.26 billion. Growth in Franchise Brands MAGIC: THE GATHERING and MONOPOLY, as well as SIMON and THE GAME OF LIFE in 2014, was offset by declines in DUEL MASTERS, TWISTER and ANGRY BIRDS games.

2014 Girls category revenues grew 2% to $1.02 billion. Revenue growth in MY LITTLE PONY, MY LITTLE PONY EQUESTRIA GIRLS, NERF REBELLE and the introduction of PLAY-DOH DOHVINCI offset declines in FURBY.

Preschool category revenues decreased 4% to $510.8 million for the full-year 2014. PLAY-DOH and TRANSFORMERS RESCUE BOTS revenue growth was more than offset by declines in other Preschool initiatives, including core PLAYSKOOL and SESAME STREET products.

Hasbro Reports Revenue, Operating Profit and Net Earnings Growth for Full Year 2014

2014 full-year net revenues increased 5% to $4.28 billion compared to 2013 revenues of $4.08 billion; Absent a negative $93.4 million impact of Foreign Exchange, 2014 net revenues grew 7%;
2014 revenues grew in all major operating segments: U.S. and Canada, International and Entertainment and Licensing; Emerging Markets revenues increased 20%;
Franchise Brand revenues grew 31% for full-year 2014; Boys and Girls category revenues increased;
2014 adjusted operating profit increased 7%; Adjusted net earnings increased 10% to $408.7 million or $3.15 per diluted share; As reported, operating profit increased 36% and net earnings increased 45% to $415.9 million or $3.20 per diluted share;
Company Board of Directors raises quarterly dividend 7% or $0.03 per share to $0.46 per share;
Board authorizes additional $500 million in share repurchase authorization;
In 2014 Hasbro returned $677.6 million of cash to shareholders through $216.9 million in dividend payments and $460.7 million for the repurchase of 8.5 million shares of common stock. Cash at year end 2014 was $893.2 million.
PAWTUCKET, R.I.--(BUSINESS WIRE)-- Hasbro, Inc. (NASDAQ: HAS) today reported financial results for the full year and fourth quarter 2014. Net revenues for the full-year 2014 increased 5% to $4.28 billion compared to $4.08 billion in 2013. Excluding a negative $93.4 million impact from foreign exchange, 2014 revenues increased 7%.

As reported net earnings for the full-year 2014 were $415.9 million, or $3.20 per diluted share, compared to $286.2 million, or $2.17 per diluted share, in 2013. Adjusted net earnings for the full-year 2014 were $408.7 million, or $3.15 per diluted share. Adjusted net earnings exclude pre-tax charges of $28.3 million associated with restructuring of the Company's joint venture television network and $5.2 million associated with other restructuring activities which were more than offset by a pre-tax benefit of $36.0 million from the sale of licensed rights for intellectual property and $6.6 million in favorable tax adjustments related to tax exam settlements.

Net earnings for the full-year 2013 include pre-tax charges of $36.7 million associated with restructuring, $7.0 million of related pension costs, $61.1 million associated with the settlement of an adverse arbitration award, $40.6 million of charges related to certain non-strategic brands as well as a $23.6 million favorable tax adjustment. Excluding these items, 2013 adjusted net earnings were $372.4 million, or $2.83 per diluted share.

"2014 was a good year for Hasbro. We grew revenues, profitability and returned significant capital to our shareholders," said Brian Goldner, Hasbro's President and Chief Executive Officer. "These results highlight the power of building innovative brand experiences based firmly in global consumer insights and supported by compelling stories. Investments in our brand blueprint are unlocking value in our brand portfolio and we begin 2015 well positioned to capitalize on our efforts in ‘Creating the World's Best Play Experiences.'"

"The underlying strength of Hasbro's brands and financials enabled us to grow revenues and earnings despite a significant fourth quarter negative impact from foreign exchange," said Deborah Thomas, Hasbro's Chief Financial Officer. "In 2014, foreign exchange had a $93 million negative impact on revenues and approximately a $25 million negative impact on net earnings. Despite this, our focus on profitable growth delivered our highest operating profit margin in recent years, while generating $454 million in operating cash flow. In 2015, we have tremendous brand initiatives and entertainment upon which to capitalize, but anticipate foreign exchange will remain a significant headwind throughout the year."

Fourth Quarter 2014 Financial Results

For the fourth quarter 2014, net revenues increased 1% to $1.30 billion versus $1.28 billion in 2013. Excluding a negative $75.4 million impact from foreign exchange, fourth quarter 2014 revenues increased 7%.

As reported net earnings for the fourth quarter 2014 were $169.9 million, or $1.34 per diluted share, compared to $129.8 million, or $0.98 per diluted share, in 2013. Adjusted net earnings for the fourth quarter were $154.9 million, or $1.22 per diluted share. Adjusted net earnings exclude pre-tax charges of $16.8 million associated with restructuring of the Company's joint venture television network and $5.2 million associated with other restructuring activities which were more than offset by a pre-tax benefit of $36.0 million from the sale of licensed rights for intellectual property and $6.9 million in favorable tax adjustments related to tax exam settlements.

Fourth quarter 2013 as reported net earnings included pre-tax charges of $48.8 million associated with restructuring and related pension costs and product-related charges, and a benefit of $15.4 million related to the settlement of an adverse arbitration award for less than the previously recorded charge. Excluding these items, as adjusted fourth quarter 2013 net earnings were $148.8 million, or $1.12 per diluted share.

Full-Year 2014 Major Segment Performance

Net Revenues ($ Millions) Operating Profit ($ Millions)
FY 2014 FY 2013 % Change FY 2014 FY 2013 % Change
U.S. and Canada $ 2,022.4 $ 2,006.1 +1 % $ 334.7 $ 313.7 +7 %
International $ 2,023.0 $ 1,873.0 +8 % $ 270.5 $ 235.5 +15 %
Entertainment and Licensing $ 219.5 $ 191.0 +15 % $ 60.6 $ 45.5 +33 %

Note: The impact on full-year 2014 and 2013 segment operating profit from restructuring of equity method investment and restructuring, pension curtailment and settlement, product-related and arbitration award settlement charges is outlined in the attached table: Restructuring of Equity Method Investment and Restructuring, Pension Curtailment and Settlement, Product-related and Arbitration Award Settlement Charges - by Segment.

Full-year 2014 U.S. and Canada segment net revenues increased 1% to $2.02 billion compared to $2.01 billion in 2013. Growth in the Boys category offset declines in the Girls, Games and Preschool categories. The U.S. and Canada segment reported operating profit growth of 7% to $334.7 million, or 16.5% of revenues, compared to $313.7 million, or 15.6% of revenues, in 2013.

International segment net revenues increased 8% to $2.02 billion compared to $1.87 billion in 2013. Revenues grew 13% excluding a negative $87.7 million impact from foreign exchange. Revenues in the International segment reflect 6% growth in Europe, 14% growth in Latin America and 10% growth in the Asia Pacific region, as well as growth in the Boys, Girls and Preschool categories, partially offset by a decline in the Games category. In total, Emerging Markets revenues increased 20% to $689.8 million. The International segment reported operating profit growth of 15% to $270.5 million, or 13.4% of revenues, compared to $235.5 million, or 12.6% of revenues, in 2013.

Entertainment and Licensing segment net revenues increased 15% to $219.5 million compared to $191.0 million in 2013. The segment primarily benefited from growth in lifestyle licensing globally. The Entertainment and Licensing segment reported 33% operating profit growth to $60.6 million, or 27.6% of revenues, compared to $45.5 million, or 23.8% of revenues, in 2013.

Fourth Quarter and Full-Year 2014 Product Category Performance

Net Revenues ($ Millions)
Q4 2014 Q4 2013 % Change FY 2014 FY 2013 % Change
Boys $421.9 $349.1 +21% $1,484.0 $1,237.6 +20%
Games $418.3 $437.4 -4% $1,259.8 $1,311.2 -4%
Girls $312.4 $348.8 -10% $1,022.6 $1,001.7 +2%
Preschool $146.0 $146.4 -- $510.8 $531.6 -4%

Full-year 2014 Boys category revenues increased 20% to $1.48 billion. Growth in TRANSFORMERS, NERF and MARVEL properties more than offset declines in BEYBLADE.

Games category revenues declined 4% for the year to $1.26 billion. Growth in Franchise Brands MAGIC: THE GATHERING and MONOPOLY, as well as SIMON and THE GAME OF LIFE in 2014, was offset by declines in DUEL MASTERS, TWISTER and ANGRY BIRDS games.

2014 Girls category revenues grew 2% to $1.02 billion. Revenue growth in MY LITTLE PONY, MY LITTLE PONY EQUESTRIA GIRLS, NERF REBELLE and the introduction of PLAY-DOH DOHVINCI offset declines in FURBY.

Preschool category revenues decreased 4% to $510.8 million for the full-year 2014. PLAY-DOH and TRANSFORMERS RESCUE BOTS revenue growth was more than offset by declines in other Preschool initiatives, including core PLAYSKOOL and SESAME STREET products.

Dividend and Share Repurchase

In 2014, Hasbro returned $677.6 million to shareholders including $216.9 million in cash dividends. Hasbro's Board of Directors has declared a quarterly cash dividend of $0.46 per common share. This represents an increase of $0.03 per share, or 7%, from the previous quarterly dividend of $0.43 per common share. The dividend will be payable on May 15, 2015 to shareholders of record at the close of business on May 1, 2015.

In addition, the Board of Directors has authorized the Company to repurchase an additional $500 million of its common stock. At year-end, $64.2 million remained available in the current share repurchase authorization. In 2014, Hasbro repurchased 8.5 million shares at a total cost of $460.7 million and an average price of $54.26 per share.

Conference Call Webcast

Hasbro will webcast its fourth quarter and full-year 2014 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 http://investor.hasbro.com. The replay of the call will be available on Hasbro's web site approximately 2 hours following completion of the call.

About Hasbro

Hasbro (NASDAQ: HAS) is a global company committed to Creating the World's Best Play Experiences, by leveraging its beloved brands, including LITTLEST PET SHOP, MAGIC: THE GATHERING, MONOPOLY, MY LITTLE PONY, NERF, PLAY-DOH and TRANSFORMERS and premier partner brands. From toys and games, television programming, motion pictures, digital gaming and a comprehensive lifestyle licensing program, Hasbro fulfills the fundamental need for play and connection for children and families around the world. The Company's Hasbro Studios creates entertainment brand-driven storytelling across mediums, including television, film and more. Through the Company's commitment to corporate social responsibility, including philanthropy, Hasbro is helping to build a safe and sustainable world and to positively impact the lives of millions of children and families every year. Learn more at http://www.hasbro.com and follow us on Twitter (@Hasbro & @HasbroNews).

© 2015 Hasbro, Inc. All Rights Reserved.

Certain statements in this release contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include expectations concerning the Company's potential performance in the future, including with respect to anticipated future benefits from investments in the Company's business and strategic efforts to grow the Company's brand portfolio and content delivery over the longer-term, and the Company's ability to achieve its other financial and business goals and may be identified by the use of forward-looking words or phrases. The Company's 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. Specific factors that might cause such a difference include, but are not limited to: (i) the Company's ability to design, develop, produce, manufacture, source and ship products on a timely and cost-effective basis, as well as interest in and purchase of those products by retail customers and consumers in quantities and at prices that will be sufficient to profitably recover the Company's costs; (ii) downturns in economic conditions affecting the Company's markets which can negatively impact the Company's retail customers and consumers, and which can result in lower employment levels, lower consumer disposable income and spending, including lower spending on purchases of the Company's products; (iii) other factors which can lower discretionary consumer spending, such as higher costs for fuel and food, drops in the value of homes or other consumer assets, and high levels of consumer debt; (iv) potential difficulties or delays the Company may experience in implementing cost savings and efficiency enhancing initiatives; (v) other economic and public health conditions or regulatory changes in the markets in which the Company and its customers and suppliers operate which could create delays or increase the Company's costs, such as higher commodity prices, labor costs or transportation costs, or outbreaks of disease; (vi) currency fluctuations, including movements in foreign exchange rates, which can lower the Company's net revenues and earnings, and significantly impact the Company's costs; (vii) the concentration of the Company's customers, potentially increasing the negative impact to the Company of difficulties experienced by any of the Company's customers or changes in their purchasing or selling patterns; (viii) consumer interest in and acceptance of the Discovery Family Channel, and programming created by Hasbro Studios, and other factors impacting the financial performance of the network and Hasbro Studios; (ix) the inventory policies of the Company's retail customers, including retailers' potential decisions to lower their inventories, even if it results in lost sales, as well as the concentration of the Company's revenues in the second half and fourth quarter of the year, which coupled with reliance by retailers on quick response inventory management techniques increases the risk of underproduction of popular items, overproduction of less popular items and failure to achieve compressed shipping schedules; (x) delays, increased costs or difficulties associated with any of our or our partners' planned digital applications or media initiatives; (xi) work disruptions, which may impact the Company's ability to manufacture or deliver product in a timely and cost-effective manner; (xii) the bankruptcy or other lack of success of one of the Company's significant retailers which could negatively impact the Company's revenues or bad debt exposure; (xiii) the impact of competition on revenues, margins and other aspects of the Company's business, including the ability to offer Company products which consumers choose to buy instead of competitive products, the ability to secure, maintain and renew popular licenses and the ability to attract and retain talented employees; (xiv) concentration of manufacturing for many of the Company's products in the People's Republic of China and the associated impact to the Company of social, economic or public health conditions and other factors affecting China, the movement of products into and out of China, the cost of producing products in China and exporting them to other countries; (xv) the risk of product recalls or product liability suits and costs associated with product safety regulations; (xvi) the impact of other market conditions, third party actions or approvals and competition which could reduce demand for the Company's products or delay or increase the cost of implementation of the Company's programs or alter the Company's actions and reduce actual results; (xvii) the impact of litigation or arbitration decisions or settlement actions; and (xviii) other risks and uncertainties as may be detailed from time to time in the Company's public announcements and Securities and Exchange Commission ("SEC") filings. 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.

This press release includes a non-GAAP financial measure as defined under SEC rules, specifically EBITDA. EBITDA represents net earnings attributable to Hasbro, Inc. excluding net loss attributable to noncontrolling interests, interest expense, income taxes, depreciation and amortization. As required by SEC rules, we have provided reconciliation on the attached schedule of this measure to the most directly comparable GAAP measure. Management believes that EBITDA is one of the appropriate measures for evaluating the operating performance of the Company because it reflects the resources available for strategic opportunities including, among others, to invest in the business, strengthen the balance sheet, and make strategic acquisitions. However, this measure 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 the Company's financial statements and filings with the SEC. As used herein, "GAAP" refers to accounting principles generally accepted in the United States of America.

The press release also includes the Company's costs and expenses, operating profit, net earnings and diluted earnings per share excluding the impact of charges related to the restructuring of the Company's investment in the Hub Network joint venture in 2014, charges related to restructuring activities in both 2014 and 2013, restructuring related pension charges in 2013, product-related charges in 2013 from brands which the Company exited or have reduced expectations, charges related to the settlement of an adverse arbitration award in 2013, a gain on sale of intellectual property license rights in 2014, and certain favorable tax adjustments in both 2014 and 2013 related to the settlement of tax examinations. Management believes that presenting this data excluding these charges, benefits and tax adjustments assists investors in understanding the performance of the Company's underlying business and the results of operations.

Hasbro Reports Revenue and Operating Profit Growth for the Third Quarter 2014

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Hasbro Reports Revenue and Operating Profit Growth for the Third Quarter 2014

-Third quarter 2014 revenues increased 7% to $1.47 billion; Revenue grew in all major operating segments - the U.S. and Canada, International and Entertainment and Licensing segments; Emerging Markets revenues increased 29%

-Franchise Brand revenues grew 36%; All seven Franchise Brands increased revenues in the third quarter; Boys, Girls and Games category revenues increased;

-Adjusted operating profit increased 9%; Adjusted net earnings increased 9% to $187.8 million or $1.46 per diluted share; As reported, operating profit increased 44% and net earnings increased 43% to $180.5 million or $1.40 per diluted share;

-Repurchased 2.4 million shares of common stock at a total cost of $124.5 million and an average price of $52.56 per share.


PAWTUCKET, R.I.--(BUSINESS WIRE)-- Hasbro, Inc. (NASDAQ: HAS) today reported financial results for the third quarter 2014. Net revenues for the third quarter 2014 increased 7% to $1.47 billion compared to $1.37 billion in 2013. Foreign exchange had an unfavorable $10.8 million impact on third quarter revenues.

As reported net earnings for the third quarter 2014 were $180.5 million, or $1.40 per diluted share, compared to $126.6 million, or $0.96 per diluted share, in 2013. Adjusted net earnings for the third quarter 2014 were $187.8 million, or $1.46 per diluted share, excluding a pre-tax charge of $11.6 million, or $0.06 per diluted share, related to the restructuring of the Company's investment in the Hub Network joint venture.

In 2013, as reported net earnings for the third quarter included a pre-tax $75.5 million, or $0.50 per diluted share, charge related to an adverse arbitration award; pre-tax $4.1 million, or $0.03 per diluted share, of restructuring and partial pension settlement charges; and a $23.6 million, or $0.18 per diluted share, favorable tax adjustment. Excluding these items, adjusted net earnings for the third quarter 2013 were $172.5 million, or $1.31 per diluted share.

"Our third quarter results continued to reflect the momentum we are building in our franchise brands and key partner brands, the positive results of our investments globally and the benefits of leading with compelling content and storytelling," said Brian Goldner, Hasbro's President and Chief Executive Officer. "In the third quarter, we grew revenues across all operating segments, delivered improved profitability and took strategic steps to grow our brand portfolio and content delivery over the longer term, including forming a new strategic merchandising relationship with Disney Consumer Products for the globally popular Disney Princess and Frozen properties."

"Our third quarter results are indicative of Hasbro's strong financial and competitive position," said Deborah Thomas, Hasbro's Chief Financial Officer. "In this environment of growth and financial strength, we remain focused on improving profitability, returning cash to our shareholders and investing back into our business, through investments in innovation, systems and portfolio expansion across our blueprint."

Third Quarter 2014 Major Segment Performance

Net Revenues ($ Millions) Operating Profit ($ Millions)
Q3 2014 Q3 2013 % Change Q3 2014 Q3 2013 % Change
U.S. and Canada $764.3 $735.6 +4% $169.9 $147.0 +16%
International $649.3 $582.7 +11% $116.5 $105.7 +10%
Entertainment and Licensing $53.4 $48.6 +10% $0.5 $7.6 -94%

Note: Third Quarter 2014 charges related to the restructuring of the Company's investment in the Hub Network joint venture and third quarter 2013 restructuring and related pension settlement charges and arbitration award charges are in Corporate and Eliminations. See attached table: Restructuring of Equity Method Investment and Restructuring, Pension Settlement and Arbitration Award Charges.

U.S. and Canada segment net revenues increased 4% to $764.3 million compared to $735.6 million in 2013. The segment's results reflect growth in the Boys and the Games categories, partially offset by a decline in the Girls and Preschool categories. The U.S. and Canada segment reported operating profit growth of 16% to $169.9 million versus $147.0 million in 2013.

International segment net revenues increased 11% to $649.3 million compared to $582.7 million in 2013. Revenues grew 13% excluding a negative $9.7 million impact from foreign exchange. Revenues in the International segment reflect 7% growth in Europe, 24% growth in Latin America and 11% growth in the Asia Pacific region, as well as growth in the Boys, Girls and Preschool categories, partially offset by a decline in the Games category. In total, Emerging Markets revenues increased 29%. The International segment reported operating profit of $116.5 million, up 10% versus $105.7 million in 2013.

Entertainment and Licensing segment net revenues increased 10% to $53.4 million compared to $48.6 million in 2013. The segment benefited from growth in lifestyle licensing. The Entertainment and Licensing segment reported operating profit of $0.5 million compared to $7.6 million in 2013, primarily due to the impact of the acceleration of certain programming amortization costs.

Third Quarter and Nine Month 2014 Product Category Performance

Net Revenues ($ Millions)
Q3 2014 Q3 2013 % Change Nine Months 2014 Nine Months 2013 % Change
Boys $478.5 $392.0 +22% $1,062.1 $888.5 +20%
Games $395.2 $387.4 +2% $841.4 $873.8 -4%
Girls $407.7 $388.7 +5% $710.2 $652.9 +9%
Preschool $188.5 $202.2 -7% $364.8 $385.2 -5%

Boys category revenues increased 22% to $478.5 million in the third quarter 2014, behind growth in NERF, TRANSFORMERS, MARVEL and STAR WARS products.

Games category revenues increased 2% in the third quarter to $395.2 million. Franchise Brands MAGIC: THE GATHERING and MONOPOLY grew in the third quarter, as did SIMON SWIPE and OPERATION. These gains were partially offset by declines in several brands, including Telepods featuring the ANGRY BIRDS™ STAR WARS® II game, JENGA, BOP-IT and DUELMASTERS.

The Girls category grew 5% in the third quarter 2014 to $407.7 million. Growth in MY LITTLE PONY, MY LITTLE PONY EQUESTRIA GIRLS, NERF REBELLE, FURREAL FRIENDS, LITTLEST PET SHOP and the introduction of PLAY-DOH DOHVINCI helped fuel continued growth in the category. Declines in FURBY partially offset these revenue gains.

Preschool category revenues decreased 7% to $188.5 million in the third quarter 2014. PLAY-DOH and TRANSFORMERS RESCUE BOTS revenues continued to grow but were more than offset by declines in other Preschool initiatives, including core PLAYSKOOL and SESAME STREET products.

Dividend and Share Repurchase

The Company paid $54.7 million in cash dividends to shareholders during the third quarter 2014 and $162.8 million in the first nine months of 2014. The next quarterly cash dividend payment of $0.43 per common share is payable on November 17, 2014 to shareholders of record at the close of business on November 3, 2014.

During the third quarter, Hasbro repurchased a total of 2.4 million shares of common stock at a total cost of $124.5 million and an average price of $52.56 per share. Through the first nine months of 2014, the Company repurchased 6.4 million shares of common stock at a total cost of $341.3 million and an average price of $53.57 per share. At quarter-end, $183.6 million remained available in the current share repurchase authorization.

Hub Network Joint Venture

On September 25, Hasbro and Discovery Communications announced Hub Network would become Discovery Family Channel effective October 13, 2014. The network will broaden its programming focus to serve families in primetime and continue to showcase Hasbro Studios award-winning children's content in daytime.

As a result of restructuring the Company's investment in the Hub Network joint venture, the Company recorded a pre-tax charge of $11.6 million, or $0.06 per diluted share, in the third quarter 2014. This net charge is primarily related to the costs associated with recording the fair value of a put/call option exercisable at the end of 2021 that the Company and Discovery entered into related to this transaction.

Conference Call Webcast

Hasbro will webcast its third quarter 2014 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 http://investor.hasbro.com. The replay of the call will be available on Hasbro's web site approximately 2 hours following completion of the call.

About Hasbro, Inc.

Hasbro, Inc. (NASDAQ: HAS) is a branded play company dedicated to fulfilling the fundamental need for play for children and families through the creative expression of the Company's world class brand portfolio, including TRANSFORMERS, MONOPOLY, PLAY-DOH, MY LITTLE PONY, MAGIC: THE GATHERING, NERF and LITTLEST PET SHOP. From toys and games, to television programming, motion pictures, digital gaming and a comprehensive licensing program, Hasbro strives to delight its global customers with innovative play and entertainment experiences, in a variety of forms and formats, anytime and anywhere. The Company's Hasbro Studios is responsible for entertainment brand-driven storytelling around Hasbro brands across television, film, commercial productions and short-form. Through the Company's deep commitment to corporate social responsibility, including philanthropy, Hasbro is helping to build a safe and sustainable world for future generations and to positively impact the lives of millions of children and families every year. It has been recognized for its efforts by being named one of the "World's Most Ethical Companies" and is ranked as one of Corporate Responsibility Magazine's "100 Best Corporate Citizens." Learn more at http://www.hasbro.com.

© 2014 Hasbro, Inc. All Rights Reserved.

Certain statements in this release contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include expectations concerning the Company's potential performance in the future, including with respect to anticipated future benefits from investments in the Company's business and strategic efforts to grow the Company's brand portfolio and content delivery over the longer-term, and the Company's ability to achieve its other financial and business goals and may be identified by the use of forward-looking words or phrases. The Company's 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. Specific factors that might cause such a difference include, but are not limited to: (i) the Company's ability to design, develop, produce, manufacture, source and ship products on a timely and cost-effective basis, as well as interest in and purchase of those products by retail customers and consumers in quantities and at prices that will be sufficient to profitably recover the Company's costs; (ii) downturns in economic conditions affecting the Company's markets which can negatively impact the Company's retail customers and consumers, and which can result in lower employment levels, lower consumer disposable income and spending, including lower spending on purchases of the Company's products; (iii) other factors which can lower discretionary consumer spending, such as higher costs for fuel and food, drops in the value of homes or other consumer assets, and high levels of consumer debt; (iv) potential difficulties or delays the Company may experience in implementing cost savings and efficiency enhancing initiatives; (v) other economic and public health conditions or regulatory changes in the markets in which the Company and its customers and suppliers operate which could create delays or increase the Company's costs, such as higher commodity prices, labor costs or transportation costs, or outbreaks of disease; (vi) currency fluctuations, including movements in foreign exchange rates, which can lower the Company's net revenues and earnings, and significantly impact the Company's costs; (vii) the concentration of the Company's customers, potentially increasing the negative impact to the Company of difficulties experienced by any of the Company's customers or changes in their purchasing or selling patterns; (viii) consumer interest in and acceptance of the Discovery Family Channel, and programming created by Hasbro Studios, and other factors impacting the financial performance of the network and Hasbro Studios; (ix) the inventory policies of the Company's retail customers, including retailers' potential decisions to lower their inventories, even if it results in lost sales, as well as the concentration of the Company's revenues in the second half and fourth quarter of the year, which coupled with reliance by retailers on quick response inventory management techniques increases the risk of underproduction of popular items, overproduction of less popular items and failure to achieve compressed shipping schedules; (x) delays, increased costs or difficulties associated with any of our or our partners' planned digital applications or media initiatives; (xi) work disruptions, which may impact the Company's ability to manufacture or deliver product in a timely and cost-effective manner; (xii) the bankruptcy or other lack of success of one of the Company's significant retailers which could negatively impact the Company's revenues or bad debt exposure; (xiii) the impact of competition on revenues, margins and other aspects of the Company's business, including the ability to offer Company products which consumers choose to buy instead of competitive products, the ability to secure, maintain and renew popular licenses and the ability to attract and retain talented employees; (xiv) concentration of manufacturing for many of the Company's products in the People's Republic of China and the associated impact to the Company of social, economic or public health conditions and other factors affecting China, the movement of products into and out of China, the cost of producing products in China and exporting them to other countries; (xv) the risk of product recalls or product liability suits and costs associated with product safety regulations; (xvi) the impact of other market conditions, third party actions or approvals and competition which could reduce demand for the Company's products or delay or increase the cost of implementation of the Company's programs or alter the Company's actions and reduce actual results; (xvii) the impact of litigation or arbitration decisions or settlement actions; and (xviii) other risks and uncertainties as may be detailed from time to time in the Company's public announcements and Securities and Exchange Commission ("SEC") filings. 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.

This press release includes a non-GAAP financial measure as defined under SEC rules, specifically EBITDA. EBITDA represents net earnings attributable to Hasbro, Inc. excluding net loss attributable to noncontrolling interests, interest expense, income taxes, depreciation and amortization. As required by SEC rules, we have provided reconciliation on the attached schedule of this measure to the most directly comparable GAAP measure. Management believes that EBITDA is one of the appropriate measures for evaluating the operating performance of the Company because it reflects the resources available for strategic opportunities including, among others, to invest in the business, strengthen the balance sheet, and make strategic acquisitions. However, this measure 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 the Company's financial statements and filings with the SEC. As used herein, "GAAP" refers to accounting principles generally accepted in the United States of America.

The press release also includes the Company's costs and expenses, operating profit, net earnings and diluted earnings per share excluding the impact of the restructuring of the Company's investment in the HUB Network joint venture in 2014 and the impact of an adverse arbitration award, restructuring and related pension charges, and certain favorable tax adjustments in 2013. Management believes that presenting this data excluding these charges and tax adjustments assists investors in understanding the performance of the Company's underlying business and the results of operations.