Growth in revenue, operating profit and
earnings per share
- First quarter 2021 revenues were $1.11 billion, up 1%
- Revenue grew 14% in the Consumer Products segment and 15% in
the Wizards of the Coast and Digital Gaming segment
- Entertainment segment revenue reflects expected declines in
theatrical and timing of deliveries planned for later in the
year
- Operating profit increased to $147.3 million or 13.2% of
revenues; Net earnings grew to $116.2 million or $0.84 per diluted
share
- Adjusted operating profit increased 15% to $174.1 million, or
15.6% of revenues, an expansion of 190 basis points
year-over-year
- Adjusted net earnings of $138.4 million, or $1.00 per diluted
share
- Strong cash position with quarter ending cash of $1.43
billion and first quarter operating cash flow of $377.6 million
after retiring $300 million of debt due May 2021 and paying the
dividend
Hasbro, Inc. (NASDAQ: HAS), a global play and entertainment
company, today reported financial results for the first quarter
2021.
"The global Hasbro team executed a very good quarter, driving
strong sell in and demand in the Consumer Products segment; growing
both analog and digital revenues in Wizards and our licensed
digital gaming business; and positioning us to deliver growth for
the full year in the Entertainment segment," said Brian Goldner,
Hasbro’s chairman and chief executive officer. "We continue to
target full-year double-digit revenue growth for Hasbro supported
by innovation and quality execution throughout the business. Across
Hasbro we are focused on unlocking the full potential value of our
brands and capabilities as a play and entertainment leader."
"Our first quarter started the year well," said Deborah Thomas,
Hasbro’s chief financial officer. "The team delivered revenue and
profit gains, as well as strong cash generation, ending the quarter
with $1.43 billion in cash, after retiring $300 million in debt and
paying our quarterly dividend."
First Quarter 2021 Financial
Results
$ Millions, except earnings per
share
Q1 2021
Q1 2020
% Change
Net Revenues1
$
1,114.8
$
1,105.6
1
%
Operating Profit (Loss)
$
147.3
$
(23.3
)
>100%
Adjusted Operating Profit2
$
174.1
$
151.5
15
%
Net Earnings (Loss)
$
116.2
$
(69.7
)
>100%
Net Earnings (Loss) per Diluted
Share
$
0.84
$
(0.51
)
>100%
Adjusted Net Earnings2
$
138.4
$
77.7
78
%
Adjusted Net Earnings per Diluted
Share2
$
1.00
$
0.57
75
%
EBITDA2
$
235.3
$
43.3
>100%
Adjusted EBITDA2
$
252.0
$
203.9
24
%
1Foreign exchange had a positive $18.4
million impact on first quarter 2021 revenue.
2See the financial tables accompanying
this press release for a reconciliation of GAAP and non-GAAP
financial measures.
During the first quarter of 2021, the Company realized a gain of
$25.6 million, $0.19 per diluted share, from a legal settlement.
The gain is included in Other Income, Net within the Company's
consolidated financial statements.
First Quarter 2021 Major Segment and
Brand Performance
Beginning with the first quarter of 2021, Hasbro realigned its
financial reporting segments and business units, in order to align
its segment financial reporting more closely with its current
business structure. The three principal reportable segments are:
Consumer Products, Wizards of the Coast and Digital Gaming, and
Entertainment. Reclassifications of certain prior year segment
results have been made to conform to the current-year presentation.
None of the segment changes impact the Company's previously
reported consolidated net revenue, operating profits, net earnings
or net earnings per share.
Major Segments ($ Millions)
Net Revenues
Operating Profit
(Loss)
Adjusted Operating Profit
(Loss) 1
Q1 2021
Q1 2020
% Change
Q1 2021
Q1 2020
Q1 2021
Q1 2020
Consumer Products
$
653.9
$
572.5
14
%
$
32.3
$
(9.7
)
$
32.3
$
(9.7
)
Wizards of the Coast and Digital
Gaming
$
242.2
$
210.6
15
%
$
110.0
$
95.8
$
110.0
$
95.8
Entertainment
$
218.7
$
322.5
-32
%
$
17.0
$
(64.3
)
$
41.9
$
59.3
Brand Portfolio
Net Revenues ($
Millions)
Q1 2021
Q1 2020
% Change
Franchise Brands
$
491.5
$
396.5
24
%
Partner Brands
$
188.0
$
182.3
3
%
Hasbro Gaming2
$
136.3
$
140.1
-3
%
Emerging Brands
$
104.7
$
94.2
11
%
TV/Film/Entertainment
$
194.3
$
292.5
-34
%
1Reconciliations are included in the
attached schedules under the heading "Reconciliation of Adjusted
Operating Profit."
2Hasbro's total gaming category, including
all gaming revenue, most notably MAGIC: THE GATHERING and MONOPOLY,
which are reported in the Franchise Brands portfolio, totaled
$365.3 million for the first quarter 2021, up 7% compared to the
respective period in 2020.
Revenues grew in Franchise Brands, including MAGIC: THE
GATHERING, PLAY-DOH, NERF, TRANSFORMERS and BABY ALIVE. Partner
Brands revenue increased behind gains in Hasbro products for
Lucasfilm's Star Wars and The Mandalorian, Marvel's Spider-Man
franchise and Marvel Studios content on Disney+, and Disney
Princess. Emerging Brands revenue increased with several properties
contributing and Hasbro Gaming declined slightly versus the strong
growth reported in the first quarter of last year.
- Consumer Products segment revenue and operating profit
grew driven by broad-based gains in Hasbro brands and products,
including PLAY-DOH, NERF, TRANSFORMERS, Star Wars and Disney
Princess. Revenue grew in all geographic regions, led by the U.S.
and Europe. Global consumer point of sale increased high-single
digits, including double-digit gains in North America. Operating
profit grew as higher revenues more than offset increased royalty
and advertising expense.
- Wizards of the Coast and Digital Gaming segment revenue
grew for MAGIC: THE GATHERING and DUNGEONS & DRAGONS. The
success of the MAGIC: THE GATHERING Kaldheim set release and the
release of Time Spiral Remastered contributed to the strong
performance. Digital gaming revenue grew for MAGIC: THE GATHERING
Arena and DUNGEONS & DRAGONS as well as licensed digital games.
Operating profit increased driven by the higher revenues which was
partially offset by increased product development as well as higher
advertising to support the mobile launch of Magic Arena and the
upcoming launch of Dark Alliance.
- Entertainment segment revenue declined due to
expected difficult comparisons in the TV and Film business. The
theatrical business continues to be impacted by COVID-related
theater shutdowns, whereas last year theaters were open for most of
the quarter. Scripted TV deliveries are slated to increase later in
the current year and we are targeting returning to 2019 levels of
revenue for the full-year 2021 in the TV and Film business.
Adjusted operating profit declined on the lower revenue, partially
offset by reduced advertising and promotional spend due to the lack
of theatrical activity this year versus last.
Dividend
The next quarterly cash dividend of $0.68 per common share is
payable on May 17, 2021 to shareholders of record at the close of
business on May 3, 2021. During the first quarter, Hasbro paid
$93.4 million in cash dividends to shareholders.
Conference Call Webcast
Hasbro will webcast its first quarter 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
https://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 play and entertainment company
committed to making the world a better place for all children, fans
and families. Hasbro delivers immersive brand experiences for
global audiences through consumer products, including toys and
games; entertainment through eOne, its independent studio; and
gaming, led by the team at Wizards of the Coast, an award-winning
developer of tabletop and digital games best known for fantasy
franchises MAGIC: THE GATHERING and DUNGEONS & DRAGONS.
The company’s unparalleled portfolio of approximately 1,500
brands includes MAGIC: THE GATHERING, NERF, MY LITTLE PONY,
TRANSFORMERS, PLAY-DOH, MONOPOLY, BABY ALIVE, DUNGEONS &
DRAGONS, POWER RANGERS, PEPPA PIG and PJ MASKS, as well as premier
partner brands. For the past decade, Hasbro has been consistently
recognized for its corporate citizenship, including being named one
of the 100 Best Corporate Citizens by 3BL Media and one of the
World’s Most Ethical Companies by Ethisphere Institute. Important
business and brand updates are routinely shared on our Investor
Relations website, Newsroom and social channels (@Hasbro on
Twitter, Instagram, Facebook and LinkedIn.)
© 2021 Hasbro, Inc. All Rights Reserved.
Safe Harbor
Certain statements in this release contain "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995. These statements, which may be identified by
the use of forward-looking words or phrases, include statements
relating to: our future performance and expectations for growth in
future quarters and 2021; our ability to return television and film
entertainment revenues to 2019 levels; the impact of the global
coronavirus outbreak on our business; the ability to achieve our
financial and business goals and objectives; the expected adequacy
of supply and operation of our manufacturing facilities; product
and entertainment plans, including the content and timing of
entertainment production and releases; changes in the methods of
content distribution; marketing and promotional efforts;
anticipated expenses; working capital; liquidity; and the
anticipated impact of acquisitions and dispositions. Our 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. Factors that might cause such a
difference include, but are not limited to:
- our ability to design, develop, produce, manufacture, source
and ship products on a timely, cost-effective and profitable
basis;
- rapidly changing consumer interests in the types of products
and entertainment we offer;
- the challenge of developing and offering products and
storytelling experiences that are sought after by children,
families and audiences given increasing technology and
entertainment offerings available;
- our ability to develop and distribute engaging storytelling
across media to drive brand awareness;
- our dependence on third party relationships, including with
third party manufacturers, licensors of brands, studios, content
producers and entertainment distribution channels;
- our ability to successfully compete in the global play and
entertainment industry, including with manufacturers, marketers,
and sellers of toys and games, digital gaming products and digital
media, as well as with film studios, television production
companies and independent distributors and content producers;
- our ability to successfully evolve and transform our business
and capabilities to address a changing global consumer landscape
and retail environment, including changing inventory policies and
practices of our customers;
- our ability to develop new and expanded areas of our business,
such as through eOne, Wizards of the Coast, and our other
entertainment and digital gaming;
- our ability to successfully develop and execute plans to
mitigate the negative impact of the coronavirus on our business,
including, without limitation, negative impacts to our supply chain
that could occur as the pandemic worsens in countries, such as
India, where we source significant amounts of product;
- risks associated with international operations, such as
currency conversion, currency fluctuations, the imposition of
tariffs, quotas, shipping delays of difficulties, border adjustment
taxes or other protectionist measures, and other challenges in the
territories in which we operate;
- our ability to lessen the impact of any increased shipping
costs due to shipping delays or changes in method of shipping, as
well as our ability to impose any price increases to offset
shipping costs, increases in prices of raw materials or other
increases in costs of our products;
- our ability to successfully implement actions to lessen the
impact of potential and enacted tariffs imposed on our products,
including any changes to our supply chain, inventory management,
sales policies or pricing of our products;
- downturns in global and regional economic conditions impacting
one or more of the markets in which we sell products, which can
negatively impact our retail customers and consumers, result in
lower employment levels, consumer disposable income, retailer
inventories and spending, including lower spending on purchases of
our products;
- other economic and public health conditions or regulatory
changes in the markets in which we and our customers, partners,
licensees, suppliers and manufacturers operate, such as higher
commodity prices, labor costs or transportation costs, or outbreaks
of disease, such as the coronavirus, the occurrence of which could
create work slowdowns, delays or shortages in production or
shipment of products, increases in costs or delays in revenue;
- the success of our key partner brands, including the ability to
secure, maintain and extend agreements with our key partners or the
risk of delays, increased costs or difficulties associated with any
of our or our partners’ planned digital applications or media
initiatives;
- fluctuations in our business due to seasonality;
- the concentration of our customers, potentially increasing the
negative impact to our business of difficulties experienced by any
of our customers or changes in their purchasing or selling
patterns;
- the bankruptcy or other lack of success of one of our
significant retailers, such as the bankruptcy of Toys“R”Us in the
United States and Canada;
- the bankruptcy or other lack of success of one or more of our
licensees and other business partners;
- risks relating to the use of third party manufacturers for the
manufacturing of our products, including the concentration of
manufacturing for many of our products in the People’s Republic of
China and our ability to successfully diversify sourcing of our
products to reduce reliance on sources of supply in China;
- our ability to attract and retain talented employees;
- our ability to realize the benefits of cost-savings and
efficiency and/or revenue enhancing initiatives, including
initiatives to integrate eOne into our business;
- our ability to protect our assets and intellectual property,
including as a result of infringement, theft, misappropriation,
cyber-attacks or other acts compromising the integrity of our
assets or intellectual property;
- risks relating to the impairment and/or write-offs of products
and films and television programs we acquire and produce;
- risks relating to investments, acquisitions and
dispositions;
- the risk of product recalls or product liability suits and
costs associated with product safety regulations;
- changes in tax laws or regulations, or the interpretation and
application of such laws and regulations, which may cause us to
alter tax reserves or make other changes which would significantly
impact our reported financial results;
- the impact of litigation or arbitration decisions or settlement
actions; and
- other risks and uncertainties as may be detailed from time to
time in our public announcements and SEC filings.
The statements contained herein are based on our current beliefs
and expectations. We undertake no obligation to make any revisions
to the forward-looking statements contained in this presentation or
to update them to reflect events or circumstances occurring after
the date of this presentation.
Non-GAAP Financial Measures
The financial tables accompanying this press release include
non-GAAP financial measures as defined under SEC rules,
specifically Adjusted operating profit, Adjusted net earnings and
Adjusted earnings per diluted share, which exclude, where
applicable, the 2021 impact of purchased intangible amortization
and stock compensation expense associated with acquisition-related
grants, and for 2020, the impact of the eOne acquisition-related
costs and purchased intangible amortization. Also included in the
financial tables are the non-GAAP financial measures of EBITDA, and
Adjusted EBITDA. EBITDA represents net earnings attributable to
Hasbro, Inc. excluding interest expense, income taxes, depreciation
and amortization. Adjusted EBITDA also excludes the impact of the
charges/gains noted above, as well as non-cash stock compensation.
As required by SEC rules, we have provided reconciliations on the
attached schedules of these measures to the most directly
comparable GAAP measure. Management believes that Adjusted net
earnings, Adjusted earnings per diluted share and Adjusted
operating profit provides investors with an understanding of the
underlying performance of our business absent unusual events.
Management believes that EBITDA and Adjusted EBITDA are appropriate
measures for evaluating the operating performance of our business
because they reflect the resources available for strategic
opportunities including, among others, to invest in the business,
strengthen the balance sheet and make strategic acquisitions. These
non-GAAP 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 our consolidated 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
(Tables Attached)
HASBRO, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(Unaudited)
(Millions of Dollars)
March 28, 2021
March 29, 2020
ASSETS
Cash and Cash Equivalents
$
1,430.4
$
1,237.9
Accounts Receivable, Net
810.4
963.8
Inventories
429.2
444.4
Prepaid Expenses and Other Current
Assets
566.0
672.4
Total Current Assets
3,236.0
3,318.5
Property, Plant and Equipment, Net
482.7
455.9
Goodwill
3,691.4
3,572.7
Other Intangible Assets, Net
1,513.0
1,615.8
Other Assets
1,266.0
1,461.5
Total Assets
$
10,189.1
$
10,424.4
LIABILITIES, NONCONTROLLING INTERESTS
AND SHAREHOLDERS' EQUITY
Short-Term Borrowings
$
8.8
$
9.4
Current Portion of Long-Term Debt
148.9
64.5
Accounts Payable and Accrued
Liabilities
1,595.7
1,664.7
Total Current Liabilities
1,753.4
1,738.6
Long-Term Debt
4,674.1
5,156.3
Other Liabilities
777.7
739.0
Total Liabilities
7,205.2
7,633.9
Redeemable Noncontrolling Interests
24.0
26.0
Total Shareholders' Equity
2,959.9
2,764.5
Total Liabilities, Noncontrolling
Interests and Shareholders' Equity
$
10,189.1
$
10,424.4
HASBRO, INC.
CONSOLIDATED STATEMENTS OF
OPERATIONS
(Unaudited)
(Millions of Dollars and Shares, Except
Per Share Data)
Quarter Ended
March 28, 2021
% Net Revenues
March 29, 2020
% Net Revenues
Net Revenues
$
1,114.8
100.0
%
$
1,105.6
100.0
%
Costs and Expenses:
Cost of Sales
289.9
26.0
%
262.7
23.8
%
Program Cost Amortization
97.5
8.7
%
132.2
12.0
%
Royalties
108.9
9.8
%
112.8
10.2
%
Product Development
61.8
5.5
%
53.8
4.9
%
Advertising
87.9
7.9
%
101.7
9.2
%
Amortization of Intangibles
32.9
3.0
%
36.8
3.3
%
Selling, Distribution and
Administration
288.6
25.9
%
279.1
25.2
%
Acquisition and Related Costs
—
0.0
%
149.8
13.5
%
Operating Profit (Loss)
147.3
13.2
%
(23.3
)
-2.1
%
Interest Expense
47.9
4.3
%
54.7
4.9
%
Other Income, Net
(30.1
)
-2.7
%
(6.0
)
-0.5
%
Earnings (Loss) before Income Taxes
129.5
11.6
%
(72.0
)
-6.5
%
Income Tax Expense (Benefit)
12.0
1.1
%
(4.1
)
-0.4
%
Net Earnings (Loss)
117.5
10.5
%
(67.9
)
-6.1
%
Net Earnings Attributable to
Noncontrolling Interests
1.3
0.1
%
1.8
0.2
%
Net Earnings (Loss) Attributable to
Hasbro, Inc.
$
116.2
10.4
%
$
(69.7
)
-6.3
%
Per Common Share
Net Earnings (Loss)
Basic
$
0.84
$
(0.51
)
Diluted
$
0.84
$
(0.51
)
Cash Dividends Declared
$
0.68
$
0.68
Weighted Average Number of Shares
Basic
137.7
137.1
Diluted
138.1
137.1
HASBRO, INC.
CONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS
(Unaudited)
(Millions of Dollars)
Quarter Ended
March 28, 2021
March 29, 2020
Cash Flows from Operating Activities:
Net Earnings (Loss)
$
117.5
$
(67.9
)
Other Non-Cash Adjustments
193.8
249.5
Changes in Operating Assets and
Liabilities
66.3
110.0
Net Cash Provided by Operating
Activities
377.6
291.6
Cash Flows from Investing Activities:
Additions to Property, Plant and
Equipment
(23.9
)
(30.8
)
Acquisition, Net of Cash Acquired
—
(4,403.9
)
Other
(1.6
)
4.2
Net Cash Utilized by Investing
Activities
(25.5
)
(4,430.5
)
Cash Flows from Financing Activities:
Proceeds from Long-Term Debt
72.4
1,017.7
Repayments of Long-Term Debt
(344.9
)
(50.2
)
Net Proceeds from (Repayments of)
Short-Term Borrowings
2.0
(1.4
)
Stock-Based Compensation Transactions
4.7
1.8
Dividends Paid
(93.4
)
(93.1
)
Payments Related to Tax Withholding for
Share-Based Compensation
(9.3
)
(5.3
)
Redemption of Equity Instruments
—
(47.4
)
Other
(2.3
)
(2.6
)
Net Cash (Utilized) Provided by Financing
Activities
(370.8
)
819.5
Effect of Exchange Rate Changes on
Cash
(0.6
)
(23.1
)
Cash and Cash Equivalents at Beginning of
Year
1,449.7
4,580.4
Cash and Cash Equivalents at End of
Quarter
$
1,430.4
$
1,237.9
HASBRO, INC.
SUPPLEMENTAL FINANCIAL DATA
SEGMENT RESULTS - AS REPORTED AND AS
ADJUSTED
(Unaudited)
(Millions of Dollars)
Effective in the first quarter of 2021,
the Company reorganized its reportable segments to Consumer
Products, Wizards of the Coast and Digital Gaming, Entertainment,
and Corporate and Other. For comparability, segment results for the
first quarter of 2020 are presented to align with the new
reportable segments.
Operating
Results
Quarter Ended March 28,
2021
Quarter Ended March 29,
2020
As Reported
Non-GAAP Adjustments
Adjusted
As Reported
Non-GAAP Adjustments
Adjusted
% Change
Total Company
Results
External Net Revenues (1)
$
1,114.8
$
—
$
1,114.8
$
1,105.6
$
—
$
1,105.6
1
%
Operating Profit (Loss)
147.3
26.8
174.1
(23.3
)
174.8
151.5
15
%
Operating Margin
13.2
%
2.4
%
15.6
%
-2.1
%
15.8
%
13.7
%
EBITDA
235.3
16.7
252.0
43.3
160.6
203.9
24
%
Segment
Results
Consumer
Products:
External Net Revenues (2)
$
653.9
$
—
$
653.9
$
572.5
$
—
$
572.5
14
%
Operating Profit (Loss)
32.3
—
32.3
(9.7
)
—
(9.7
)
>100%
Operating Margin
4.9
%
—
4.9
%
-1.7
%
—
-1.7
%
EBITDA
59.4
6.5
65.9
8.1
7.6
15.7
>100%
Wizards of the Coast
and Digital Gaming:
External Net Revenues
242.2
—
242.2
210.6
—
210.6
15
%
Operating Profit
110.0
—
110.0
95.8
—
95.8
15
%
Operating Margin
45.4
%
—
45.4
%
45.5
%
—
45.5
%
EBITDA
112.3
2.6
114.9
97.1
1.9
99.0
16
%
Entertainment:
External Net Revenues (3)
218.7
—
218.7
322.5
—
322.5
-32
%
Operating Profit (Loss)
17.0
24.9
41.9
(64.3
)
123.6
59.3
-29
%
Operating Margin
7.8
%
11.4
%
19.2
%
-19.9
%
38.3
%
18.4
%
EBITDA
68.2
4.1
72.3
(34.3
)
99.3
65.0
11
%
Corporate and
Other:
Operating (Loss) Profit
(12.0
)
1.9
(10.1
)
(45.1
)
51.2
6.1
>-100%
EBITDA
(4.6
)
3.5
(1.1
)
(27.6
)
51.8
24.2
>-100%
Quarter Ended
March 28, 2021
March 29, 2020
% Change
(1)
Net Revenues by Brand
Portfolio
Franchise Brands
$
491.5
$
396.5
24
%
Partner Brands
188.0
182.3
3
%
Hasbro Gaming (i)
136.3
140.1
-3
%
Emerging Brands
104.7
94.2
11
%
TV/Film/Entertainment
194.3
292.5
-34
%
Total
$
1,114.8
$
1,105.6
(i) Hasbro's total gaming category,
including all gaming revenue, most notably MAGIC: THE GATHERING and
MONOPOLY, which are reported in the Franchise Brands portfolio,
totaled $365.3 for the quarter ended March 28, 2021, up 7% from
revenues of $340.5 for the quarter ended March 29, 2020.
Quarter Ended
March 28, 2021
March 29, 2020
% Change
(2)
Consumer Products Segment Net Revenues by
Major Geographic Region
North America
$
362.7
$
321.8
13
%
Europe
188.5
156.7
20
%
Asia Pacific
64.8
58.2
11
%
Latin America
37.9
35.8
6
%
Total
$
653.9
$
572.5
Quarter Ended
March 28, 2021
March 29, 2020
% Change
(3) Entertainment Segment Net Revenues
by Category
Film and TV
$
166.4
$
264.0
-37
%
Family Brands
18.8
25.9
-27
%
Music and Other
33.5
32.6
3
%
Total
$
218.7
$
322.5
HASBRO, INC.
SUPPLEMENTAL FINANCIAL DATA
RECONCILIATION OF NON-GAAP FINANCIAL
MEASURES
(Unaudited)
(Millions of Dollars)
Reconciliation of
Adjusted Operating Profit
Quarter Ended
March 28, 2021
March 29, 2020
Operating Profit (Loss)
$
147.3
$
(23.3
)
Consumer Products
32.3
(9.7
)
Wizards of the Coast and Digital
Gaming
110.0
95.8
Entertainment
17.0
(64.3
)
Corporate and Other
(12.0
)
(45.1
)
Non-GAAP Adjustments (1)
$
26.8
$
174.8
Entertainment
24.9
123.6
Corporate and Other
1.9
51.2
Adjusted Operating Profit
(Loss)
$
174.1
$
151.5
Consumer Products
32.3
(9.7
)
Wizards of the Coast and Digital
Gaming
110.0
95.8
Entertainment
41.9
59.3
Corporate and Other
(10.1
)
6.1
(1) The Company's non-GAAP adjustments
include the following:
Acquisition-related costs (i)
$
1.9
$
149.8
Acquired intangible amortization (ii)
24.9
25.0
Total
$
26.8
$
174.8
(i) In association with the Company's
acquisition of eOne, the Company incurred related expenses of $1.9
($1.7 after-tax) and $149.8 ($127.5 after-tax) in the quarters
ended March 28, 2021 and March 29, 2020, respectively, comprised of
the following:
(a) In the quarter ended March 28, 2021,
the Company incurred stock compensation expense of $1.9 associated
with acquisition-related grants. In 2021, this expense is included
within Selling, Distribution and Administration.
(b) In the quarter ended March 29, 2020,
the Company incurred expenses of $149.8, comprised of 1)
acquisition and integration costs of $95.7, including expense
associated with the acceleration of eOne stock-based compensation
and advisor fees settled at the closing of the acquisition, as well
as integration costs; and 2) restructuring and related costs of
$54.1, including severance and retention costs, as well as
impairment charges in the first quarter of 2020 for certain
definite-lived intangible and production assets. In 2020, these
expenses were included within Acquisition and Related Costs.
(ii) The Company incurred incremental
intangible amortization costs related to the intangible assets
acquired in the eOne acquisition.
HASBRO, INC.
SUPPLEMENTAL FINANCIAL DATA
RECONCILIATION OF NON-GAAP FINANCIAL
MEASURES
(Unaudited)
(Millions of Dollars)
Reconciliation of
EBITDA and Adjusted EBITDA
Quarter Ended
March 28, 2021
March 29, 2020
Net Earnings (Loss) Attributable to
Hasbro, Inc.
$
116.2
$
(69.7
)
Interest Expense
47.9
54.7
Income Tax Expense (Benefit)
12.0
(4.1
)
Net Earnings Attributable to
Noncontrolling Interests
1.3
1.8
Depreciation
25.0
23.8
Amortization of Intangibles
32.9
36.8
EBITDA
235.3
43.3
Non-GAAP Adjustments and Stock
Compensation (1)
16.7
160.6
Adjusted EBITDA
$
252.0
$
203.9
(1) The Company's non-GAAP adjustments and
stock compensation are comprised of the following:
Stock compensation
$
16.7
$
10.8
Acquisition-related costs
—
149.8
Total
$
16.7
$
160.6
Adjusted EBITDA by Segment:
Consumer Products
$
65.9
$
15.7
Wizards of the Coast and Digital
Gaming
114.9
99.0
Entertainment
72.3
65.0
Corporate and Other
(1.1
)
24.2
Total Adjusted EBITDA
$
252.0
$
203.9
Consumer Products:
Operating Profit (Loss)
$
32.3
$
(9.7
)
Other Income (Expense)
6.2
(5.7
)
Depreciation
13.1
12.1
Amortization of Intangibles
7.8
11.4
EBITDA
59.4
8.1
Non-GAAP Adjustments and Stock
Compensation
6.5
7.6
Adjusted EBITDA
$
65.9
$
15.7
Wizards of the Coast and Digital
Gaming:
Operating Profit
$
110.0
$
95.8
Other Income (Expense)
(0.3
)
(1.0
)
Depreciation
2.6
2.3
EBITDA
112.3
97.1
Non-GAAP Adjustments and Stock
Compensation
$
2.6
$
1.9
Adjusted EBITDA
$
114.9
$
99.0
Entertainment:
Operating Profit (Loss)
$
17.0
$
(64.3
)
Other Income (Expense)
23.3
3.0
Depreciation
2.8
1.7
Amortization of Intangibles
25.1
25.3
EBITDA
68.2
(34.3
)
Non-GAAP Adjustments and Stock
Compensation
4.1
99.3
Adjusted EBITDA
$
72.3
$
65.0
HASBRO, INC.
SUPPLEMENTAL FINANCIAL DATA
RECONCILIATION OF NON-GAAP FINANCIAL
MEASURES
(Unaudited)
(Millions of Dollars and Shares, Except
Per Share Data)
Reconciliation of Net Earnings and
Earnings per Share
Quarter Ended
(all adjustments reported after-tax)
March 28, 2021
Diluted Per Share
Amount
March 29, 2020
Diluted Per Share
Amount
Net Earnings (Loss) Attributable to
Hasbro, Inc.
$
116.2
$
0.84
$
(69.7
)
$
(0.51
)
Acquisition-related costs
1.7
0.01
127.5
0.93
Acquired intangible amortization
20.5
0.15
19.9
0.15
Net Earnings Attributable to Hasbro, Inc.,
as Adjusted
$
138.4
$
1.00
$
77.7
$
0.57
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210427005572/en/
Investor Contact: Debbie Hancock | Hasbro, Inc. | (401) 727-5401
| debbie.hancock@hasbro.com Press Contact: Erin Pensa | Hasbro,
Inc. | (401) 440-7627 | erin.pensa@hasbro.com
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