PAWTUCKET, R.I. -- April 23, 2007 -- Hasbro, Inc.:
Highlights
- Net revenues of $625.3 million, an increase of $157.1 million or 34% compared to $468.2 million a year ago;
- Net earnings of $32.9 million, or $0.19 per diluted share, compared to net loss of ($4.9) million, or ($0.03) per diluted share last year;
- All major product categories were up significantly, with growth driven by shipments of the MARVEL product line, as well as core brands including LITTLEST PET SHOP, NERF, PLAY-DOH, MY LITTLE PONY, PLAYSKOOL, TRANSFORMERS and board games;
- During the quarter, the Company repurchased approximately 2.5 million shares of common stock at a total cost of $74 million.
Hasbro, Inc. (NYSE: HAS) today reported net revenues of $625.3 million, an increase of $157.1 million or 34% compared to $468.2 million a year ago. The Company reported net earnings of $32.9 million or $0.19 per diluted share, compared to a net loss of ($4.9) million or ($0.03) per diluted share in 2006.
"We are very pleased with the strong start to the year, with all major product categories growing year over year. Our core brands and new product initiatives performed very well with revenue growth for the quarter pretty balanced between our MARVEL business and all our other Hasbro business," said Alfred J. Verrecchia, President and Chief Executive Officer. "That said, it is only the first quarter and there is still a lot of business to be done to achieve our full-year financial goals," Verrecchia concluded.
North American segment revenues for the quarter were $421.1 million, an increase of 36% compared to $310.3 million in 2006, with all major product categories growing significantly. The results reflect shipments of the MARVEL product line, as well as growth in core brands including LITTLEST PET SHOP, PLAYSKOOL, NERF, PLAY-DOH and board games. The North American segment reported an operating profit of $45.3 million compared to $4.8 million last year. This improvement is primarily a reflection of higher revenues.
International segment revenues for the quarter were $187.7 million, an increase of 29% compared to $145.5 million in 2006, with all major product categories, except for Tweens, up significantly. The revenues include a positive foreign exchange impact of approximately $11.5 million. Absent this impact, revenues increased 21% for the quarter to $176.2 million. The results reflect shipments of the MARVEL product line, as well as growth in core brands including LITTLEST PET SHOP, MY LITTLE PONY, PLAYSKOOL and board games. The International segment reported an operating loss of ($108) thousand compared to ($8.3) million in 2006. This improvement is primarily a reflection of higher revenues.
During the quarter, the Board of Directors increased the May 2007 quarterly dividend $0.04 per share, or 33%, to $0.16 per share, the fourth consecutive annual increase and the highest it has been in the history of the Company. Additionally, the Company repurchased 2.5 million shares of common stock at a cost of $74.0 million as part of its share buyback program.
"While it's early in 2007, we are very pleased with the earnings we reported today and the continued progress we are making on all of our financial goals. Our balance sheet is strong and we continue to generate good cash flow, which is being returned to shareholders via our increased dividend and the share buyback program," said David Hargreaves, Executive Vice President and Chief Financial Officer.
Hasbro is a worldwide leader in children's and family leisure time entertainment products and services, including the design, manufacture and marketing of games and toys ranging from traditional to high-tech. Both internationally and in the U.S., its PLAYSKOOL, TONKA, MILTON BRADLEY, PARKER BROTHERS, TIGER, and WIZARDS OF THE COAST brands and products provide the highest quality and most recognizable play experiences in the world.
