| ||
|
Hasbro, Inc. today reported financial results for the first quarter 2013. Net revenues for the quarter increased 2% to $663.7 million compared to $648.9 million in 2012. The first quarter 2013 was a 13-week period compared to the first quarter 2012 which was a 14-week period As adjusted, net earnings for the first quarter 2013 increased 30% to $6.6 million. This excludes pre-tax charges of $28.9 million, associated with previously disclosed restructuring actions as well as favorable tax adjustments of $5.5 million. First quarter 2012 net earnings were $5.1 million, excluding $11.1 million, of restructuring charges. "We entered 2013 with a heightened focus on our brands, organization and profitability, and delivered a good start to the year. In the first quarter, our global Hasbro teams generated revenue growth and strong underlying profitability growth," said Brian Goldner, Hasbro's President and Chief Executive Officer. "We are creating innovative consumer experiences across our brand blueprint globally while improving efficiencies and focus throughout our business. Our emerging markets continued to post double-digit revenue gains while the U.S. and Canada team delivered another quarter of revenue growth backed by profitability improvement. The re-invention of our Games business led to another quarter of revenue growth in the Games category while brand innovation and new initiatives delivered gains in the Girls and Preschool categories." Cost Savings Initiative As previously announced, the Company is undertaking a cost savings initiative designed to better align resources and costs while targeting $100 million in annual savings by 2015. Gross savings for 2013 are now expected to be $45 to $48 million, resulting in expected net savings of $13 to $15 million for the full-year. First Quarter 2013 Major Segment Performance U.S. and Canada segment net revenues increased 4% to $342.1 million compared to $329.0 million in 2012. The results reflect growth in the Girls and Games categories. The U.S. and Canada segment reported 162% growth in operating profit to $37.7 million compared to $14.4 million in 2012. International segment net revenues were essentially flat at $289.8 million compared to $289.7 million in 2012. Net revenues in the International segment grew 1% excluding a negative $3.0 million impact of foreign exchange. Revenues in the International segment reflect growth in Latin America and Asia Pacific as well as the Games, Girls and Preschool categories. The International segment reported an operating loss of $4.5 million compared to an operating loss of $5.1 million in 2012. Entertainment and Licensing segment net revenues increased 5% to $30.8 million compared to $29.3 million in 2012. The segment primarily benefited from the sale of television programming. The Entertainment and Licensing segment reported an operating profit of $5.3 million compared to $7.7 million in 2012. First Quarter 2013 Product Category Performance For the first quarter 2013, net revenues in the Boys category decreased 20% to $242.8 million. MARVEL, NERF and G.I. JOE product revenues grew in the quarter, while several brands faced difficult comparisons with the first quarter 2012. The Games category continued its positive momentum from year end, posting 26% revenue growth in the first quarter 2013 versus last year. Games that grew in the quarter include MAGIC: THE GATHERING products, Boys Action Gaming with ANGRY BIRDS STAR WARS and TRANSFORMERS games, the re-invention of TWISTER with the TWISTER RAVE line in Girls Gaming and MONOPOLY which was led by a tremendously successful global campaign to "Save Your Token." The Girls category also continued its year-end growth trend, increasing 23% in the quarter. FURBY, MY LITTLE PONY and ONE DIRECTION products contributed to the year-over-year gains. The Preschool category also grew in the first quarter, increasing 8% to $75.2 million. PLAY-DOH and PLAYSKOOL HEROES brands continued to grow in the quarter. |
