Exhibit 99.1
HASBRO, INC. | ||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
(Unaudited) | ||||||||
(Thousands of Dollars) | Sept. 29, 2013 | Sept. 30, 2012 | ||||||
ASSETS | ||||||||
Cash and Cash Equivalents | $ | 588,668 | $ | 696,733 | ||||
Accounts Receivable, Net | 1,215,289 | 1,195,517 | ||||||
Inventories | 447,113 | 463,433 | ||||||
Other Current Assets | 346,215 | 263,297 | ||||||
Total Current Assets | 2,597,285 | 2,618,980 | ||||||
Property, Plant and Equipment, Net | 231,199 | 217,636 | ||||||
Other Assets | 1,761,661 | 1,609,671 | ||||||
Total Assets | $ | 4,590,145 | $ | 4,446,287 | ||||
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND SHAREHOLDERS' EQUITY | ||||||||
Short-term Borrowings | $ | 212,926 | $ | 264,745 | ||||
Current Portion of Long-term Debt | 430,424 | - | ||||||
Payables and Accrued Liabilities | 1,005,529 | 861,874 | ||||||
Total Current Liabilities | 1,648,879 | 1,126,619 | ||||||
Long-term Debt | 959,895 | 1,398,906 | ||||||
Other Liabilities | 410,672 | 393,873 | ||||||
Total Liabilities | 3,019,446 | 2,919,398 | ||||||
Redeemable Noncontrolling Interests | 47,269 | - | ||||||
Total Shareholders' Equity | 1,523,430 | 1,526,889 | ||||||
Total Liabilities, Redeemable Noncontrolling Interests and Shareholders' Equity | $ | 4,590,145 | $ | 4,446,287 |
HASBRO, INC. | ||||||||||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||||
Quarter Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
(Thousands of Dollars and Shares Except Per Share Data) | Sept. 29, 2013 | % Net Revenues | Sept. 30, 2012 | % Net Revenues | Sept. 29, 2013 | % Net Revenues | Sept. 30, 2012 | % Net Revenues | ||||||||||||||||||||||||
Net Revenues | $ | 1,370,348 | 100.0 | % | $ | 1,345,137 | 100.0 | % | $ | 2,800,384 | 100.0 | % | $ | 2,805,454 | 100.0 | % | ||||||||||||||||
Costs and Expenses: | ||||||||||||||||||||||||||||||||
Cost of Sales | 568,582 | 41.5 | % | 586,516 | 43.6 | % | 1,136,724 | 40.6 | % | 1,155,536 | 41.2 | % | ||||||||||||||||||||
Royalties | 143,947 | 10.5 | % | 89,224 | 6.6 | % | 243,568 | 8.8 | % | 212,551 | 7.6 | % | ||||||||||||||||||||
Product Development | 59,366 | 4.3 | % | 48,472 | 3.6 | % | 154,455 | 5.5 | % | 143,511 | 5.1 | % | ||||||||||||||||||||
Advertising | 136,487 | 10.0 | % | 134,997 | 10.0 | % | 277,278 | 9.9 | % | 279,339 | 10.0 | % | ||||||||||||||||||||
Amortization of Intangibles | 14,224 | 1.0 | % | 12,636 | 0.9 | % | 37,677 | 1.3 | % | 34,792 | 1.2 | % | ||||||||||||||||||||
Program Product Cost Amortization | 17,991 | 1.3 | % | 12,794 | 1.0 | % | 34,023 | 1.2 | % | 25,950 | 0.9 | % | ||||||||||||||||||||
Selling, Distribution and Administration | 231,045 | 16.9 | % | 210,876 | 15.7 | % | 633,238 | 22.6 | % | 602,145 | 21.5 | % | ||||||||||||||||||||
Operating Profit | 198,706 | 14.5 | % | 249,622 | 18.6 | % | 283,421 | 10.1 | % | 351,630 | 12.5 | % | ||||||||||||||||||||
Interest Expense | 41,194 | 3.0 | % | 23,043 | 1.7 | % | 86,398 | 3.0 | % | 68,568 | 2.4 | % | ||||||||||||||||||||
Other (Income) Expense, Net | 1,599 | 0.1 | % | 1,630 | 0.1 | % | 6,527 | 0.3 | % | 3,320 | 0.1 | % | ||||||||||||||||||||
Earnings before Income Taxes | 155,913 | 11.4 | % | 224,949 | 16.8 | % | 190,496 | 6.8 | % | 279,742 | 10.0 | % | ||||||||||||||||||||
Income Taxes | 30,070 | 2.2 | % | 60,097 | 4.5 | % | 34,844 | 1.2 | % | 74,042 | 2.7 | % | ||||||||||||||||||||
Net Earnings | 125,843 | 9.2 | % | 164,852 | 12.3 | % | 155,652 | 5.6 | % | 205,700 | 7.3 | % | ||||||||||||||||||||
Net Loss Attributable to Noncontrolling Interests | (731 | ) | 0.0 | % | - | 0.0 | % | (731 | ) | 0.0 | % | - | 0.0 | % | ||||||||||||||||||
Net Earnings Attributable to Hasbro, Inc. | $ | 126,574 | 9.2 | % | $ | 164,852 | 12.3 | % | $ | 156,383 | 5.6 | % | $ | 205,700 | 7.3 | % | ||||||||||||||||
Per Common Share | ||||||||||||||||||||||||||||||||
Net Earnings Attributable to Hasbro, Inc. | ||||||||||||||||||||||||||||||||
Basic | $ | 0.97 | $ | 1.26 | $ | 1.20 | $ | 1.58 | ||||||||||||||||||||||||
Diluted | $ | 0.96 | $ | 1.24 | $ | 1.19 | $ | 1.56 | ||||||||||||||||||||||||
Cash Dividends Declared | $ | 0.40 | $ | 0.36 | $ | 1.20 | $ | 1.08 | ||||||||||||||||||||||||
Weighted Average Number of Shares | ||||||||||||||||||||||||||||||||
Basic | 130,253 | 130,619 | 129,972 | 130,146 | ||||||||||||||||||||||||||||
Diluted | 131,845 | 132,483 | 131,573 | 132,039 |
HASBRO, INC. | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Unaudited) | ||||||||
Nine Months Ended | ||||||||
(Thousands of Dollars) | Sept. 29, 2013 | Sept. 30, 2012 | ||||||
Cash Flows from Operating Activities: | ||||||||
Net Earnings | $ | 155,652 | $ | 205,700 | ||||
Non-cash Adjustments | 168,429 | 152,201 | ||||||
Changes in Operating Assets and Liabilities | (276,764 | ) | (214,285 | ) | ||||
Net Cash Provided by Operating Activities | 47,317 | 143,616 | ||||||
Cash Flows from Investing Activities: | ||||||||
Additions to Property, Plant and Equipment | (78,246 | ) | (74,896 | ) | ||||
Investments and Acquisitions, Net of Cash Acquired | (109,955 | ) | - | |||||
Other | 3,121 | 2,558 | ||||||
Net Cash Utilized by Investing Activities | (185,080 | ) | (72,338 | ) | ||||
Cash Flows from Financing Activities: | ||||||||
Net (Repayments of) Proceeds from Short-term Borrowings | (11,235 | ) | 83,380 | |||||
Purchases of Common Stock | (86,972 | ) | (15,079 | ) | ||||
Stock-based Compensation Transactions | 87,172 | 49,182 | ||||||
Dividends Paid | (104,164 | ) | (132,231 | ) | ||||
Net Cash Utilized by Financing Activities | (115,199 | ) | (14,748 | ) | ||||
Effect of Exchange Rate Changes on Cash | (8,071 | ) | (1,485 | ) | ||||
Cash and Cash Equivalents at Beginning of Year | 849,701 | 641,688 | ||||||
Cash and Cash Equivalents at End of Period | $ | 588,668 | $ | 696,733 |
HASBRO, INC. | ||||||||||||||||||||||||
SUPPLEMENTAL FINANCIAL DATA | ||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||
(Thousands of Dollars) | ||||||||||||||||||||||||
Quarter Ended | Nine Months Ended | |||||||||||||||||||||||
Sept. 29, 2013 | Sept. 30, 2012 | % Change | Sept. 29, 2013 | Sept. 30, 2012 | % Change | |||||||||||||||||||
Major Segment Results | ||||||||||||||||||||||||
U.S. and Canada Segment: | ||||||||||||||||||||||||
External Net Revenues | $ | 735,619 | $ | 774,539 | -5 | % | $ | 1,466,921 | $ | 1,510,112 | -3 | % | ||||||||||||
Operating Profit | 146,991 | 154,239 | -5 | % | 243,738 | 229,578 | 6 | % | ||||||||||||||||
Operating Margin | 20.0 | % | 19.9 | % | 16.6 | % | 15.2 | % | ||||||||||||||||
International Segment: | ||||||||||||||||||||||||
External Net Revenues | 582,676 | 524,144 | 11 | % | 1,212,665 | 1,174,366 | 3 | % | ||||||||||||||||
Operating Profit | 105,663 | 85,498 | 24 | % | 115,951 | 110,265 | 5 | % | ||||||||||||||||
Operating Margin | 18.1 | % | 16.3 | % | 9.6 | % | 9.4 | % | ||||||||||||||||
Entertainment and Licensing Segment: | ||||||||||||||||||||||||
External Net Revenues | 48,637 | 43,066 | 13 | % | 114,747 | 115,618 | -1 | % | ||||||||||||||||
Operating Profit | 7,625 | 10,722 | -29 | % | 16,622 | 26,652 | -38 | % | ||||||||||||||||
Operating Margin | 15.7 | % | 24.9 | % | 14.5 | % | 23.1 | % | ||||||||||||||||
Net Revenues by Product Category | ||||||||||||||||||||||||
Boys | $ | 392,014 | $ | 471,125 | -17 | % | $ | 888,494 | $ | 1,162,958 | -24 | % | ||||||||||||
Games | 387,450 | 365,714 | 6 | % | 873,774 | 763,460 | 14 | % | ||||||||||||||||
Girls | 388,696 | 302,304 | 29 | % | 652,889 | 499,731 | 31 | % | ||||||||||||||||
Preschool | 202,188 | 205,994 | -2 | % | 385,227 | 379,305 | 2 | % | ||||||||||||||||
Total Net Revenues | $ | 1,370,348 | $ | 1,345,137 | $ | 2,800,384 | $ | 2,805,454 | ||||||||||||||||
International Segment Net Revenues by Major Geographic Region | ||||||||||||||||||||||||
Europe | $ | 376,648 | $ | 345,281 | 9 | % | $ | 755,097 | $ | 751,547 | <1 | % | ||||||||||||
Latin America | 131,914 | 115,342 | 14 | % | 260,443 | 237,090 | 10 | % | ||||||||||||||||
Asia Pacific | 74,114 | 63,521 | 17 | % | 197,125 | 185,729 | 6 | % | ||||||||||||||||
Total | $ | 582,676 | $ | 524,144 | $ | 1,212,665 | $ | 1,174,366 | ||||||||||||||||
Reconciliation of EBITDA | ||||||||||||||||||||||||
Net Earnings Attributable to Hasbro, Inc. | $ | 126,574 | $ | 164,852 | $ | 156,383 | $ | 205,700 | ||||||||||||||||
Net Loss Attributable to Noncontrolling Interests | (731 | ) | - | (731 | ) | - | ||||||||||||||||||
Interest Expense | 41,194 | 23,043 | 86,398 | 68,568 | ||||||||||||||||||||
Income Taxes | 30,070 | 60,097 | 34,844 | 74,042 | ||||||||||||||||||||
Depreciation | 32,345 | 31,374 | 75,526 | 75,113 | ||||||||||||||||||||
Amortization of Intangibles | 14,224 | 12,636 | 37,677 | 34,792 | ||||||||||||||||||||
EBITDA | $ | 243,676 | $ | 292,002 | $ | 390,097 | $ | 458,215 |
HASBRO, INC. | ||||||||||||||||
SUPPLEMENTAL FINANCIAL DATA | ||||||||||||||||
RESTRUCTURING AND PENSION SETTLEMENT CHARGES | ||||||||||||||||
(Unaudited) | ||||||||||||||||
(Thousands of Dollars) | ||||||||||||||||
Operating Profit, Excluding Restructuring, Pension Settlement and Arbitration Award Charges | ||||||||||||||||
Quarter Ended September 29, 2013 | As Reported | Less Restructuring, Pension Settlement and Arbitration Award Charges | Excluding Restructuring, Pension Settlement and Arbitration Award Charges | % Net Revenues | ||||||||||||
Net Revenues | $ | 1,370,348 | $ | - | $ | 1,370,348 | 100.0 | % | ||||||||
Costs and Expenses: | ||||||||||||||||
Cost of Sales | 568,582 | - | 568,582 | 41.5 | % | |||||||||||
Royalties | 143,947 | (57,164 | ) | 86,783 | 6.3 | % | ||||||||||
Product Development | 59,366 | - | 59,366 | 4.3 | % | |||||||||||
Advertising | 136,487 | - | 136,487 | 10.0 | % | |||||||||||
Amortization of Intangibles | 14,224 | - | 14,224 | 1.0 | % | |||||||||||
Program Production Cost Amortization | 17,991 | - | 17,991 | 1.3 | % | |||||||||||
Selling, Distribution and Administration | 231,045 | (4,093 | ) | 226,952 | 16.6 | % | ||||||||||
Operating Profit | $ | 198,706 | $ | (61,257 | ) | $ | 259,963 | 19.0 | % | |||||||
Nine Months Ended September 29, 2013 | As Reported | Less Restructuring, Pension Settlement and Arbitration Award Charges | Excluding Restructuring, Pension Settlement and Arbitration Award Charges | % Net Revenues | ||||||||||||
Net Revenues | $ | 2,800,384 | $ | - | $ | 2,800,384 | 100.0 | % | ||||||||
Costs and Expenses: | ||||||||||||||||
Cost of Sales | 1,136,724 | (8,493 | ) | 1,128,231 | 40.3 | % | ||||||||||
Royalties | 243,568 | (57,164 | ) | 186,404 | 6.7 | % | ||||||||||
Product Development | 154,455 | (3,515 | ) | 150,940 | 5.4 | % | ||||||||||
Advertising | 277,278 | - | 277,278 | 9.9 | % | |||||||||||
Amortization of Intangibles | 37,677 | - | 37,677 | 1.3 | % | |||||||||||
Program Production Cost Amortization | 34,023 | - | 34,023 | 1.2 | % | |||||||||||
Selling, Distribution and Administration | 633,238 | (23,473 | ) | 609,765 | 21.8 | % | ||||||||||
Operating Profit | $ | 283,421 | $ | (92,645 | ) | $ | 376,066 | 13.4 | % | |||||||
Nine Months Ended September 30, 2012 | As Reported | Less Restructuring Charges | Excluding Restructuring Charges | % Net Revenues | ||||||||||||
Net Revenues | $ | 2,805,454 | $ | - | $ | 2,805,454 | 100.0 | % | ||||||||
Costs and Expenses: | ||||||||||||||||
Cost of Sales | 1,155,536 | (2,764 | ) | 1,152,772 | 41.1 | % | ||||||||||
Royalties | 212,551 | - | 212,551 | 7.6 | % | |||||||||||
Product Development | 143,511 | (2,479 | ) | 141,032 | 5.0 | % | ||||||||||
Advertising | 279,339 | - | 279,339 | 10.0 | % | |||||||||||
Amortization of Intangibles | 34,792 | - | 34,792 | 1.2 | % | |||||||||||
Program Production Cost Amortization | 25,950 | - | 25,950 | 0.9 | % | |||||||||||
Selling, Distribution and Administration | 602,145 | (5,887 | ) | 596,258 | 21.3 | % | ||||||||||
Operating Profit | $ | 351,630 | $ | (11,130 | ) | $ | 362,760 | 12.9 | % | |||||||
NOTE: There were no restructuring charges included in the reported amounts for the quarter ended September 30, 2012. |
Net Earnings and Earnings per Share Excluding Restructuring Charges, Pension Settlement Charges, Arbitration Award Charges and Benefit from Settlement of Tax Exams | ||||||||||||||||
Quarter Ended | ||||||||||||||||
Sept. 29, 2013 | Diluted Per Share Amount | Sept. 30, 2012 | Diluted Per Share Amount | |||||||||||||
Net Earnings Attributable to Hasbro, Inc., as Reported | $ | 126,574 | $ | 0.96 | $ | 164,852 | $ | 1.24 | ||||||||
Restructuring Charges, Net of Tax | 2,447 | 0.02 | - | - | ||||||||||||
Pension Settlement Charges, Net of Tax | 679 | 0.01 | - | - | ||||||||||||
Arbitration Award Charges, Net of Tax | 66,447 | 0.50 | - | - | ||||||||||||
2013 Benefit from Tax Exam Settlement | (23,637 | ) | (0.18 | ) | - | - | ||||||||||
Net Earnings Attributable to Hasbro, Inc. as Adjusted | $ | 172,510 | $ | 1.31 | $ | 164,852 | $ | 1.24 | ||||||||
Nine Months Ended | ||||||||||||||||
Sept. 29, 2013 | Diluted Per Share Amount | Sept. 30, 2012 | Diluted Per Share Amount | |||||||||||||
Net Earnings Attributable to Hasbro, Inc., as Reported | $ | 156,383 | $ | 1.19 | $ | 205,700 | $ | 1.56 | ||||||||
Restructuring Charges, Net of Tax | 21,224 | 0.16 | 7,675 | 0.06 | ||||||||||||
Pension Settlement Charges, Net of Tax | 2,469 | 0.02 | - | - | ||||||||||||
Arbitration Award Charges, Net of Tax | 66,447 | 0.50 | - | - | ||||||||||||
2013 Benefit from Tax Exam Settlement | (23,637 | ) | (0.18 | ) | - | - | ||||||||||
Net Earnings Attributable to Hasbro, Inc. as Adjusted | $ | 222,886 | $ | 1.69 | $ | 213,375 | $ | 1.62 |
Restructuring, Pension Settlement and Arbitration Award Charges – by Segment | ||||||||||||||||
Quarter Ended | Nine Months Ended | |||||||||||||||
Sept. 29, 2013 | Sept. 30, 2012 | Sept. 29, 2013 | Sept. 30, 2012 | |||||||||||||
U.S. and Canada Segment | $ | - | $ | - | $ | - | $ | 2,444 | ||||||||
International Segment | - | - | - | 1,628 | ||||||||||||
Entertainment and Licensing Segment | - | - | 1,729 | 555 | ||||||||||||
Global Operations Segment | - | - | - | 4,307 | ||||||||||||
Corporate and Eliminations | 61,257 | - | 90,916 | 2,196 | ||||||||||||
Total Restructuring and Pension Settlement Charges | $ | 61,257 | $ | - | $ | 92,645 | $ | 11,130 |