Hasbro Reports Financial Results for the Third Quarter 2012

  Hasbro Reports Financial Results for the Third Quarter 2012

             Company is Delivering on Stated Objectives for 2012

  *Net earnings for the third quarter 2012 were $164.9 million, or $1.24 per
    diluted share, compared to $171.0 million, or $1.27 per diluted share in
    2011; Net earnings excluding the impact of foreign exchange translation
    were $169.8 million, or $1.28 per diluted share;
  *Net revenues for the third quarter 2012 grew 1% to $1.39 billion excluding
    a negative $47.4 million impact of foreign exchange; Net revenues for the
    third quarter 2012 as reported were $1.35 billion compared to $1.38
    billion in 2011;
  *Operating profit of 18.6% of revenues increased from 18.0% in 2011 led by
    gains in the U.S. and Canada Segment operating profit margin.

Business Wire

PAWTUCKET, R.I. -- October 22, 2012

Hasbro, Inc. (NASDAQ: HAS) today reported financial results for the third
quarter 2012. Net earnings for the third quarter 2012 were $164.9 million, or
$1.24 per diluted share, versus $171.0 million, or $1.27 per diluted share, in
2011. Excluding the impact of foreign exchange translation, net earnings were
$169.8 million, or $1.28 per diluted share. Net revenues for the third quarter
2012 were $1.35 billion compared to $1.38 billion in 2011. Excluding a
negative $47.4 million impact of foreign exchange, net revenues increased 1%
to $1.39 billion.

“We are delivering on the objectives we set for the year,” said Brian Goldner,
President and Chief Executive Officer. “The U.S. and Canada segment operating
profits are improving to historical levels and the Games category is
stabilizing with innovative new offerings and partnerships. Additionally, we
are driving innovation across Hasbro and partner brands this holiday season
including toys, games, digital play, licensed goods and immersive
entertainment experiences for consumers around the world.”

“We are entering the holiday season with exciting, innovative products,
including some of the hottest toys in the market and a tremendously successful
MARVEL line,” said Deborah Thomas, Chief Financial Officer. “In the all
important fourth quarter, we plan to drive these and other initiatives with a
significant increase in marketing support in an environment of significantly
lower U.S. retail inventory. As a result, for the full year 2012, we continue
to believe, absent the impact of foreign exchange, we will again grow revenues
and earnings per share.”

Major Segment Performance

                 Net Revenues ($ Millions)           Operating Profit ($ Millions)
                Q3        Q3        %         Q3        Q3        %
                    2012         2011         Change       2012         2011         Change
U.S. and         $774.5    $764.6    +1%       $154.2    $128.8    +20%
Canada
International    $524.1    $563.3    -7%       $85.5     $100.7    -15%
Entertainment    $43.1     $46.3     -7%       $10.7     $15.3     -30%
and Licensing
                                                                     

U.S. and Canada segment net revenues were $774.5 million, an increase of 1%,
compared to $764.6 million in 2011. The segment’s results reflect growth in
the Girls and Games categories, partially offset by declines in the Boys and
Preschool categories. The U.S. and Canada segment reported 20% operating
profit growth to $154.2 million compared to $128.8 million in 2011.

Net revenues in the International segment grew 1% absent the negative $47.1
million impact of foreign exchange. Including the impact of foreign exchange,
International segment net revenues were $524.1 million, down 7%, compared to
$563.3 million in 2011. Revenue in the International segment reflects 9%
growth in Latin America offset by a decline in Europe and Asia Pacific.
Additionally, revenues in the Games and Preschool categories were flat while
the Boys and Girls categories declined. The International segment reported an
operating profit of $85.5 million compared to $100.7 million in 2011.

Entertainment and Licensing segment net revenues were $43.1 million compared
to $46.3 million in 2011. The segment continued to benefit from the sale of
television programming in all formats in the U.S. and internationally offset
by lower movie-related revenues. The Entertainment and Licensing segment
reported an operating profit of $10.7 million compared to $15.3 million in
2011.

Product Category Performance

            Net Revenues ($ Millions)
             Q3 2012    Q3 2011    % Change
Boys         $471.1     $534.6     -12%
Games        $365.7     $364.7     --
Girls        $302.3     $259.1     +17%
Preschool    $206.0     $217.4     -5%
                                     

In the Boys category, net revenues decreased 12% to $471.1 million. MARVEL
products continued to post strong year-over-year gains globally, which were
more than offset by expected declines in TRANSFORMERS and BEYBLADE products.

Net revenues in the Games category were flat in the quarter at $365.7 million.
TWISTER, MAGIC: THE GATHERING, BATTLESHIP and Boys Action Gaming products,
including TRANSFORMERS BOT SHOTS, continued to perform well. New gaming
initiatives, including ZYNGA and ANGRY BIRDS STAR WARS games began shipping in
the quarter ahead of their fourth quarter launch dates.

For the third quarter 2012, the Girls category net revenues increased 17% to
$302.3 million. Several new initiatives, including FURBY and ONE DIRECTION
product launched during the quarter while MY LITTLE PONY product, backed by
global television, continued to deliver strong year-over-year growth as did
EASY-BAKE. Additionally, several new holiday products including, BABY ALIVE
BABY WANNA WALK and FURREAL FRIENDS BABY BUTTERSCOTCH and BOUNCY MY HAPPY TO
SEE ME PUP generated strong initial revenues.

Net revenues in the Preschool category declined 5% to $206.0 million. The
category benefited from continued growth in the PLAYSKOOL HEROES line and
PLAY-DOH, as well as new brand initiatives KOOSH and PLAYSKOOL ROCKTIVITY.
SESAME STREET products declined versus last year’s launch of the line.

Share Repurchase and Dividend

The Company repurchased a total of 142,336 shares of common stock during the
third quarter 2012 at a total cost of $5.2 million and an average price of
$36.18 per share. At quarter-end, $212.2 million remained available in the
current share repurchase authorization. The Company paid $46.9 million in cash
dividends to shareholders during the quarter.

Hasbro will webcast its third quarter 2012 earnings conference call at 8:30
a.m. Eastern Time today. To listen to the live webcast, go to
http://investor.hasbro.com. The replay of the call will be available on
Hasbro’s web site approximately 2 hours following completion of the call.
Additionally, presentation slides associated with today’s conference call are
available on Hasbro’s website at http://investor.hasbro.com.

About Hasbro

Hasbro, Inc. (NASDAQ: HAS) is a branded play company providing children and
families around the world with a wide-range of immersive entertainment
offerings based on the Company's world class brand portfolio. From toys and
games, to television programming, motion pictures, digital gaming and a
comprehensive licensing program, Hasbro strives to delight its global
customers with innovative, well-known and beloved brands such as TRANSFORMERS,
LITTLEST PET SHOP, NERF, PLAYSKOOL, MY LITTLE PONY, G.I. JOE, MAGIC: THE
GATHERING and MONOPOLY. The Company’s Hasbro Studios develops and produces
television programming for markets around the world. The Hub TV Network is
part of a multi-platform joint venture between Hasbro and Discovery
Communications (NASDAQ: DISCA, DISCB, DISCK), in the U.S. Through the
Company's deep commitment to corporate social responsibility, including
philanthropy, Hasbro is helping to build a safe and sustainable world for
future generations and to positively impact the lives of millions of children
and families every year. It has been recognized for its efforts by being named
one of the “World’s Most Ethical Companies” and is ranked as one of Corporate
Responsibility Magazine’s “100 Best Corporate Citizens.” Learn more at
www.hasbro.com.

© 2012 Hasbro, Inc. All Rights Reserved.

HAS-E

Certain statements in this release contain "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of 1995. These
statements include expectations concerning the Company’s potential performance
in 2012 and beyond, including with respect to its revenues and earnings per
share, and the Company’s ability to achieve its other financial and business
goals and may be identified by the use of forward-looking words or phrases.
The Company's 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. Specific factors that might cause such a
difference include, but are not limited to: (i) the Company's ability to
design, manufacture, source and ship new and continuing products on a timely
and cost-effective basis, as well as interest in and purchase of those
products by retail customers and consumers in quantities and at prices that
will be sufficient to profitably recover the Company’s development,
manufacturing, marketing, royalty and other costs; (ii) global economic
conditions, including recessions, credit crises or other economic shocks or
downturns affecting the United States, Europe or any of the Company’s other
markets which can negatively impact the retail and/or credit markets, the
financial health of the Company’s retail customers and consumers, and consumer
and business confidence, and which can result in lower employment levels, less
consumer disposable income, and lower consumer spending, including lower
spending on purchases of the Company’s products; (iii) other factors which can
lower discretionary consumer spending, such as higher costs for fuel and food,
drops in the value of homes or other consumer assets, and high levels of
consumer debt; (iv) other economic and public health conditions in the markets
in which the Company and its customers and suppliers operate which impact the
Company's ability and cost to manufacture and deliver products, such as higher
fuel and other commodity prices, higher labor costs, higher transportation
costs, outbreaks of disease which affect public health and the movement of
people and goods, and other factors, including government regulations, which
can create potential manufacturing and transportation delays or impact costs;
(v) currency fluctuations, including movements in foreign exchange rates,
which can lower the Company’s net revenues and earnings, and significantly
impact the Company’s costs; (vi) the concentration of the Company's customers,
potentially increasing the negative impact to the Company of difficulties
experienced by any of the Company’s customers or changes by the Company’s
customers in their purchasing or selling patterns; (vii) greater than expected
costs, or unexpected delays or difficulties, associated with THE HUB TV
Network, the Company’s joint venture television network with Discovery
Communications, LLC, Hasbro Studios, or the creation of new content to appear
on THE HUB TV Network and elsewhere; (viii) consumer interest in and
acceptance of THE HUB TV Network, and programming created by Hasbro Studios,
and other factors impacting the financial performance of the network and
Hasbro Studios; (ix) greater than expected costs or unexpected delays or
difficulties associated with the creation of Hasbro’s Gaming Center of
Excellence and the execution of the Company’s strategy for driving innovation
and immersive play experiences in its gaming business; (x) unexpected delays
or difficulties in the Company’s execution of its plans to drive growth and
increased profitability in its U.S. and Canada business; (xi) the inventory
policies of the Company’s retail customers, including retailers’ potential
decisions to lower the inventories they are willing to carry, even if it
results in lost sales, as well as the concentration of the Company's revenues
in the second half and fourth quarter of the year, which coupled with reliance
by retailers on quick response inventory management techniques increases the
risk of underproduction of popular items, overproduction of less popular items
and failure to achieve tight and compressed shipping schedules; (xii) delays,
increased costs or difficulties associated with any of our planned
entertainment initiatives; (xiii) work stoppages, slowdowns or strikes, which
may impact the Company's ability to manufacture or deliver product in a timely
and cost-effective manner; (xiv) the bankruptcy or other lack of success of
one of the Company's significant retailers which could negatively impact the
Company's revenues or bad debt exposure; (xv) the impact of competition on
revenues, margins and other aspects of the Company's business, including the
ability to secure, maintain and renew popular licenses and the ability to
attract and retain talented employees in a competitive environment; (xvi)
concentration of manufacturing for many of the Company’s products in the
People’s Republic of China and the associated impact to the Company of public
health conditions and other factors affecting social and economic activity in
China, affecting the movement of products into and out of China, and impacting
the cost of producing products in China and exporting them to other countries;
(xvii) the risk of product recalls or product liability suits and costs
associated with product safety regulations; (xviii) other market conditions,
third party actions or approvals and the impact of competition which could
reduce demand for the Company’s products or delay or increase the cost of
implementation of the Company's programs or alter the Company's actions and
reduce actual results; (xix) the risk that anticipated benefits of
acquisitions may not occur or be delayed or reduced in their realization; and
(xx) other risks and uncertainties as may be detailed from time to time in the
Company's public announcements and Securities and Exchange Commission (“SEC”)
filings. The Company undertakes no obligation to make any revisions to the
forward-looking statements contained in this release or to update them to
reflect events or circumstances occurring after the date of this release.

This press release includes a non-GAAP financial measure as defined under SEC
rules, specifically EBITDA. EBITDA represents net earnings excluding interest
expense, income taxes, depreciation and amortization. As required by SEC
rules, we have provided reconciliation on the attached schedule of this
measure to the most directly comparable GAAP measure. Management believes that
EBITDA is one of the appropriate measures for evaluating the operating
performance of the Company because it reflects the resources available for
strategic opportunities including, among others, to invest in the business,
strengthen the balance sheet, and make strategic acquisitions. However, this
measure 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 the Company's financial
statements and filings with the SEC. As used herein, "GAAP" refers to
accounting principles generally accepted in the United States of America. This
press release also includes the Company’s Consolidated and International
segment net revenues, net earnings and earnings per share excluding the impact
of changes in exchange rates. Management believes that the presentation of
Consolidated and International segment net revenues, net earnings and earnings
per share excluding the impact of exchange rate changes provides information
that is helpful to an investor’s understanding of the underlying business
performance absent exchange rate fluctuations which are beyond the Company’s
control.

                              (Tables Attached)

HASBRO, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)                                            
                                                            
(Thousands of Dollars)
                                     September 30, 2012     September 25, 2011
ASSETS
Cash and Cash Equivalents            $     696,733          $     186,962
Accounts Receivable, Net                   1,195,517              1,260,521
Inventories                                463,433                518,866
Other Current Assets                      263,297               243,956
Total Current Assets                       2,618,980              2,210,305
Property, Plant and Equipment,             217,636                220,412
Net
Other Assets                              1,609,671             1,654,009
Total Assets                         $     4,446,287        $     4,084,726
                                                            
                                                            
                                                            
LIABILITIES AND SHAREHOLDERS'
EQUITY
Short-term Borrowings                $     264,745          $     13,168
Payables and Accrued Liabilities          861,874               929,275
Total Current Liabilities                  1,126,619              942,443
Long-term Debt                             1,398,906              1,405,071
Other Liabilities                         393,873               355,970
Total Liabilities                          2,919,398              2,703,484
Total Shareholders' Equity                1,526,889             1,381,242
Total Liabilities and                $     4,446,287        $     4,084,726
Shareholders' Equity
                                                            

HASBRO, INC.                                                                                          
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)                            
(Thousands of
Dollars and
Shares Except      Quarter Ended                                     Nine Months Ended
Per Share
Data)
                 Sept. 30,     % Net      Sept. 25,     % Net      Sept. 30,     % Net      Sept. 25,     % Net
                   2012          Revenues   2011          Revenues   2012          Revenues   2011          Revenues
Net Revenues       $ 1,345,137   100.0  %   $ 1,375,811   100.0  %   $ 2,805,454   100.0  %   $ 2,956,251   100.0  %
Costs and
Expenses:
Cost of Sales        586,516     43.6   %     599,524     43.6   %     1,155,536   41.2   %     1,244,780   42.1   %
Royalties            89,224      6.6    %     109,257     7.9    %     212,551     7.6    %     234,680     7.9    %
Product              48,472      3.6    %     49,504      3.6    %     143,511     5.1    %     150,287     5.1    %
Development
Advertising          134,997     10.0   %     130,396     9.5    %     279,339     10.0   %     278,703     9.4    %
Amortization         12,636      0.9    %     11,084      0.8    %     34,792      1.2    %     32,378      1.1    %
of Intangibles
Program
Production           12,794      1.0    %     7,844       0.6    %     25,950      0.9    %     18,082      0.6    %
Cost
Amortization
Selling,
Distribution        210,876     15.7   %    220,130     16.0   %    602,145     21.5   %    619,939     21.0   %
and
Administration
Operating            249,622     18.6   %     248,072     18.0   %     351,630     12.5   %     377,402     12.8   %
Profit
Interest             23,043      1.7    %     22,479      1.6    %     68,568      2.4    %     66,702      2.3    %
Expense
Other (Income)      1,630       0.1    %    4,136       0.3    %    3,320       0.1    %    13,451      0.5    %
Expense, Net
Earnings
before Income        224,949     16.8   %     221,457     16.1   %     279,742     10.0   %     297,249     10.0   %
Taxes
Income Taxes        60,097      4.5    %    50,467      3.7    %    74,042      2.7    %    51,012      1.7    %
Net Earnings       $ 164,852     12.3   %   $ 170,990     12.4   %   $ 205,700     7.3    %   $ 246,237     8.3    %
                                                                                                            
Per Common
Share
    Net
    Earnings
       Basic       $ 1.26                   $ 1.29                   $ 1.58                   $ 1.82
       Diluted     $ 1.24                   $ 1.27                   $ 1.56                   $ 1.78
                                                                                                            
    Cash
    Dividends      $ 0.36                   $ 0.30                   $ 1.08                   $ 0.90
    Declared
                                                                                                            
Weighted
Average Number
of Shares
    Basic           130,619                 132,448                 130,146                 135,388
    Diluted         132,483                 134,924                 132,039                 138,373
                                                                                                            

HASBRO, INC.                                                 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)                                
                                                                
(Thousands of Dollars)
                                             Nine Months Ended
                                             Sept. 30, 2012     Sept. 25, 2011
Cash Flows from Operating Activities:
Net Earnings                                 $  205,700         $  246,237
Non-cash Adjustments                            152,201            136,345
Changes in Operating Assets and                (214,285  )       (381,536  )
Liabilities
Net Cash Provided by Operating Activities      143,616          1,046     
                                                                
Cash Flows from Investing Activities:
Additions to Property, Plant and Equipment      (74,896   )        (71,675   )
Other                                          2,558            (6,683    )
Net Cash Utilized by Investing Activities      (72,338   )       (78,358   )
                                                                
Cash Flows from Financing Activities:
Net Proceeds (Repayments) from Short-term       83,380             (13       )
Borrowings
Purchases of Common Stock                       (15,079   )        (384,800  )
Stock-based Compensation Transactions           49,182             34,690
Dividends Paid                                 (132,231  )       (115,330  )
Net Cash Utilized by Financing Activities      (14,748   )       (465,453  )
                                                                
Effect of Exchange Rate Changes on Cash         (1,485    )        1,931
                                                                
Cash and Cash Equivalents at Beginning of      641,688          727,796   
Year
                                                                
Cash and Cash Equivalents at End of Period   $  696,733        $  186,962   
                                                                

HASBRO, INC.                                                                                 
SUPPLEMENTAL FINANCIAL DATA
(Unaudited)                     
(Thousands of      Quarter Ended                                 Nine Months Ended
Dollars)
                  Sept. 30,         Sept. 25,        %          Sept. 30,         Sept. 25,         %
                   2012              2011             Change     2012              2011              Change
Major Segment
Results
U.S. and
Canada
Segment:
External Net       $ 774,539         $ 764,562        1    %     $ 1,510,112       $ 1,660,664       -9   %
Revenues
Operating            154,239           128,789        20   %       229,578           227,526         1    %
Profit
Operating            19.9      %       16.8      %                 15.2      %       13.7      %
Margin
                                                                                                     
International
Segment:
External Net         524,144           563,310        -7   %       1,174,366         1,192,113       -1   %
Revenues
Operating            85,498            100,739        -15  %       110,265           132,756         -17  %
Profit
Operating            16.3      %       17.9      %                 9.4       %       11.1      %
Margin
                                                                                                     
Entertainment
and Licensing
Segment:
External Net         43,066            46,316         -7   %       115,618           98,144          18   %
Revenues
Operating            10,722            15,251         -30  %       26,652            21,294          25   %
Profit
Operating            24.9      %       32.9      %                 23.1      %       21.7      %
Margin
                                                                                                     
International
Segment Net
Revenues by
Major
Geographic
Region
Europe             $ 345,281         $ 383,734        -10  %     $ 751,547         $ 790,286         -5   %
Latin America        115,342           105,696        9    %       237,090           209,620         13   %
Asia Pacific        63,521          73,880        -14  %      185,729         192,207        -3   %
      Total        $ 524,144        $ 563,310                  $ 1,174,366      $ 1,192,113 
                                                                                                     
Net Revenues
by Product
Class
Boys               $ 471,125         $ 534,595        -12  %     $ 1,162,958       $ 1,285,273       -10  %
Games                365,714           364,740        0    %       763,460           796,393         -4   %
Girls                302,304           259,113        17   %       499,731           491,412         2    %
Preschool           205,994         217,363       -5   %      379,305         383,173        -1   %
      Total
      Net          $ 1,345,137      $ 1,375,811                $ 2,805,454      $ 2,956,251 
      Revenues
                                                                                                     
Reconciliation
of EBITDA
Net Earnings       $ 164,852         $ 170,990                   $ 205,700         $ 246,237
Interest             23,043            22,479                      68,568            66,702
Expense
Income Taxes         60,097            50,467                      74,042            51,012
Depreciation         31,374            36,390                      75,113            85,039
Amortization        12,636          11,084                    34,792          32,378    
of Intangibles
      EBITDA       $ 292,002        $ 291,410                  $ 458,215        $ 481,368   

Contact:

Hasbro, Inc.
Debbie Hancock, 401-727-5401
(Investor Relations)
or
Wayne Charness, 401-727-5983
(News Media)
 
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