EXHIBIT 99
For Immediate Release Contact: John T. O'Neill
October 21, 1996 Telephone: 401-431-8500
HASBRO, INC. ANNOUNCES REVENUES AND
EARNINGS FOR THIRD QUARTER 1996
Pawtucket, RI (October 21, 1996) -- Hasbro, Inc. (HAS:ASE) today
reported third quarter revenues of $845,148,000, up from $826,165,000 in the
third quarter of 1995. Net earnings for the quarter increased to $70,469,000
or $.81 per share, a growth of approximately 13% from the 1995 level of
$63,572,000, or $.72 per share.
For the nine months, revenues totaled $1,895,442,000, compared with
$1,834,522,000 in 1995. Net earnings for the year to date were $100,820,000,
or $1.15 per share, up 14% from the $89,488,000, or $1.01 per share a year
ago, absent the impact of the second quarter 1995 $31,100,000 pretax charge
related to a discontinued development project. The reported 1995 nine month
earnings were $70,362,000, or $.80 per share.
"I am very pleased to be able to report growth in both revenues and
earnings again this quarter", said Alan G. Hassenfeld, Chairman and Chief
Executive Officer. "In the United States, boys' toys and the game products
from Milton Bradley and Parker Brothers continued the momentum which was
evident in the second quarter. Our Batman(R) and Star Wars(R) action figures
and accessories provided fun-filled play experiences for children throughout
the country and our line of large dolls, including the number one at retail,
Baby Go Bye Bye(TM) continued to be strong. Our classic games performed very
well and we continued to see impressive strength in many of our newer items,
including Puzz 3D(TM) and the Goosebumps(TM) games and puzzles.
Internationally, absent the impact of unfavorable foreign currency
translation rates and reflecting growth in the United Kingdom, Mexico,
Asia/Pacific and our K'Nex operations, revenues marginally exceeded those of
a year ago."
He continued, "This revenue increase also drove our earnings.
Additionally, earnings were helped by a reduction in the tax rate, largely
due to a one-time benefit from the expected utilization of certain
international tax losses from prior years. Adversely impacting us this
quarter were the costs provided for the previously announced closing of our
Amsterdam, New York manufacturing facility."
"During the quarter we aggressively continued the repurchase of our
shares in the open market, adding more than 800,000 to those in our treasury.
During the past twelve months we have purchased in excess of 2,100,000 shares
and have authorization to purchase almost 4,000,000 more. Even after these
purchases, which have used approximately $75,000,000 of cash, our balance
sheet remains strong. Receivables, while at a higher level than those of a
year ago, are relatively constant when expressed as days sales outstanding
and the growth in inventories experienced recently continues to moderate."
Mr. Hassenfeld concluded, "The momentum that started in the 4th quarter of
1995 is continuing. Our new products are being well received and we just
completed a very successful preview of our 1997 line with our major
customers. We are optimistic about the full year and look forward with great
anticipation to 1997 when we will present product for three of the year's
major movie releases - the re-release of `Star Wars Trilogy', Steven
Spielberg's `Jurassic Park - The Lost World' and the fourth Batman movie,
`Batman and Robin'. All of this, coupled with our work to turn Hasbro into a
global, brand driven organization, is part of our continuing effort to
enhance shareholder value."
# # #
(Tables Attached)
HASBRO, INC.
CONSOLIDATED STATEMENTS OF EARNINGS
(Thousands of Dollars and Shares Except Per Share Data)
Quarter Ended Nine Months Ended (1)
---------------- --------------------
Sep 29, Oct 1, Sep 29, Oct 1,
1996 1995 1996 1995
------- ------- --------- ---------
Net Revenues $845,148 826,165 $1,895,442 1,834,522
Cost of Sales 372,273 360,852 844,228 807,509
------- ------- --------- ---------
Gross Profit 472,875 465,313 1,051,214 1,027,013
Amortization 9,939 9,718 29,745 28,686
Royalties, Research and Development 85,929 78,318 204,707 195,487
Discontinued Development Project - - - 31,100
Advertising 116,446 123,537 252,893 261,934
Selling, Distribution and
Administration 146,941 142,977 397,215 382,785
------- ------- --------- ---------
Operating Profit 113,620 110,763 166,654 127,021
Interest Expense 9,419 10,932 19,678 24,139
Other (Income), Net (733) (3,539) (6,210) (11,528)
------- ------- --------- ---------
Earnings Before Income Taxes 104,934 103,370 153,186 114,410
Income Taxes 34,465 39,798 52,366 44,048
------- ------- --------- ---------
Net Earnings $ 70,469 63,572 $ 100,820 70,362
======= ======= ========= =========
Per Common Share(2)
Net Earnings $ .81 .72 $ 1.15 .80
======= ======= ========= =========
Cash Dividends Declared $ .10 $ .08 $ .30 .24
======= ======= ========= =========
Weighted Average Number of Shares 87,413 88,347 87,969 88,290
======= ======= ========= =========
(1) - 1996 consists of 39 weeks; 1995, 40 weeks.
(2) - Primary and fully diluted data are not shown separately as they are
substantially the same.
HASBRO, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(Thousands of Dollars)
Sep. 29, Oct. 1,
1996 1995
--------- ---------
Assets
Cash and Temporary Investments $ 57,753 $ 53,785
Accounts Receivable, Net 1,184,615 1,128,119
Inventories 402,704 390,095
Other 155,941 158,264
--------- ---------
Total Current Assets 1,801,013 1,730,263
Property, Plant and Equipment, Net 301,453 306,464
Other Assets 897,009 880,782
--------- ---------
Total Assets $2,999,475 $2,917,509
========= =========
Liabilities and Shareholders' Equity
Short-term Borrowings $ 553,136 $ 566,820
Payables and Accrued Liablities 654,947 673,621
--------- ---------
Total Current Liabilities 1,208,083 1,240,441
Long-term Debt 149,907 149,991
Deferred Liabilities 70,556 65,143
--------- ---------
Total Liabilities 1,428,546 1,455,575
Total Shareholders' Equity 1,570,929 1,461,934
--------- ---------
Total Liabilities and Shareholders' Equity $2,999,475 $2,917,509
========= =========