PAWTUCKET, R.I., Oct 19, 2009 (BUSINESS WIRE) ------Net revenues of $1.28 billion compared to $1.30 billion a year ago, a decrease of 2% from a year ago, or an increase of 1% absent the impact of foreign exchange;

--Net earnings of $150.4 million versus $138.2 million or $0.99 per diluted share compared to $0.89 per diluted share, an increase of 11% in EPS;

--Operating profit of $230.7 million or 18% of net revenues, compared to $215.9 million or 17% of net revenues last year;

--Repurchased 1.1 million shares of common stock at a total cost of $30.2 million.

Hasbro, Inc. (NYSE: HAS) today reported net revenues of $1.28 billion, compared to $1.30 billion a year ago, a decrease of 2%. Net revenues grew 1%, excluding the negative $36.0 million impact of foreign exchange. The Company reported net earnings of $150.4 million, or $0.99 per diluted share, compared to $138.2 million or $0.89 per diluted share in 2008. The 2009 third quarter results include a $0.03 per share dilutive impact from the Company's investment in its joint venture with Discovery Communications and initial investments in Hasbro's virtual studio.

"Hasbro performed well in what is continuing to be a challenging global environment. We grew revenues absent the impact of foreign exchange and we grew earnings and earnings per share including the dilution from the investments we are making in our joint venture with Discovery Communications and Hasbro's virtual studio," said Brian Goldner, President and Chief Executive Officer.

"We believe we can grow revenues in 2009 if our consumer retail takeaway continues to improve in line with recent fourth quarter trends. We also continue to believe that the underlying strength of our brands and our commitment to our strategy will enable us to grow earnings per share in 2009, including the expected dilution from our television investment," Goldner concluded.

U.S. and Canada segment net revenues were $791.9 million, compared to $821.0 million in 2008. The results reflect a strong performance in the boys category offset by declines in girls, preschool and the games and puzzles category. The U.S. and Canada segment reported an operating profit of $129.1 million, compared to $131.9 million in 2008.

International segment net revenues were $444.1 million, compared to $460.6 million in 2008. Revenues grew 4%, absent a negative foreign exchange impact of $34.3 million. The results reflect growth in boys and preschool categories offset by declines in the girls and the games and puzzles category. The International segment reported an operating profit of $64.1 million compared to operating profit of $65.8 million in 2008.

Entertainment and Licensing segment net revenues were $41.6 million, compared to $18.3 million in 2008. The results primarily reflect increases in TRANSFORMERS and G.I. JOE. The Entertainment and Licensing segment reported an operating profit of $19.8 million compared to operating profit of $6.3 million in 2008. The Entertainment and Licensing segment includes television, movies, lifestyle and digital licensing and on-line entertainment operations.

"As we look to the remainder of the year, we are well positioned with a broad-based portfolio that is both innovative and priced right for today's value oriented consumer. We will also continue to focus on managing our business efficiently while investing for the long term," said Deborah Thomas, Chief Financial Officer.

The Company anticipates dilution of $0.04 to $0.05 per diluted share in the fourth quarter due to the investment in the joint venture with Discovery Communications and Hasbro's virtual studio. In 2010, the expected dilution is $0.25 to $0.30 per diluted share.

During the quarter, the Company spent a total of $30.2 million to repurchase 1.1 million shares of common stock. As of quarter end, there was $222.2 million remaining in the current share repurchase authorization from the board of directors.

The Company will webcast its third quarter earnings conference call at 8:30 a.m. Eastern Time today. To listen to the live webcast, go to http://investor.hasbro.com, and click on the webcast microphone. The replay will be available on Hasbro's web site approximately 2 hours following completion of the call.

Hasbro, Inc. is a worldwide leader in children's and family leisure time products and services with a rich portfolio of brands and entertainment properties that provides some of the highest quality and most recognizable play and recreational experiences in the world. As a brand-driven, consumer-focused global company, Hasbro brings to market a range of toys, games and licensed products, from traditional to high-tech and digital, under such powerful brand names as TRANSFORMERS, PLAYSKOOL, TONKA, MILTON BRADLEY, PARKER BROTHERS, CRANIUM and WIZARDS OF THE COAST. Come see how we inspire play through our brands at www.hasbro.com. (C) 2009 Hasbro, Inc. All Rights Reserved.

Certain statements contained 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 2009 and 2010, including with respect to its revenues and earnings per share, potential future dilution associated with the joint venture with Discovery Communications, future opportunities 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) recessions or other economic downturns which negatively impact the retail and credit markets, and the financial health of the Company's retail customers and consumers, and which can result in lower employment levels, less consumer disposable income, lower consumer confidence and, as a consequence, lower consumer spending, including lower spending on purchases of the Company's products, (iii) 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 SARs, bird flu or other diseases 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, (iv) 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; (v) 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; (vi) greater than expected costs, or unexpected delays or difficulties, associated with the Company's investment in its joint venture with Discovery Communications, LLC, the rebranding of the joint venture network and the creation of new content to appear on the network, (vii) consumer interest in and acceptance of the joint venture network, and other factors impacting the financial performance of the joint venture, (viii) the inventory policies of the Company's retail customers, including the concentration of the Company's revenues in the second half and fourth quarter of the year, together with increased reliance by retailers on quick response inventory management techniques, which increases the risk of underproduction of popular items, overproduction of less popular items and failure to achieve tight and compressed shipping schedules; (ix) work stoppages, slowdowns or strikes, which may impact the Company's ability to manufacture or deliver product in a timely and cost-effective manner; (x) 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; (xi) 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; (xii) 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; (xiii) the risk of product recalls or product liability suits and costs associated with product safety regulations; (xiv) 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; (xv) the risk that anticipated benefits of acquisitions may not occur or be delayed or reduced in their realization; and (xvi) other risks and uncertainties as may be detailed from time to time in the Company's public announcements and 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 presentation includes a non-GAAP financial measure as defined under rules of the Securities and Exchange Commission ("SEC"), specifically EBITDA. As required by SEC rules, we have provided reconciliation on the attached schedule of this measure to the most directly comparable GAAP measure. EBITDA (earnings before interest, taxes, depreciation and amortization) represents net earnings excluding interest expense, income taxes, depreciation and amortization. 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 presentation also includes the Company's Consolidated and International segment net revenues excluding the impact of changes in exchange rates. Management believes that the presentation of Consolidated and International segment net revenues minus 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.

HASBRO, INC.
   CONDENSED CONSOLIDATED BALANCE SHEETS
   (Unaudited)
   (Thousands of Dollars)
   Sept. 27, 2009     Sept. 28, 2008
   ASSETS
   Cash and Cash Equivalents                   $       297,358    $       356,512
   Accounts Receivable, Net                            1,116,033          946,929
   Inventories                                         399,917            461,601
   Other Current Assets                                178,597            177,576
   Total Current Assets                                1,991,905          1,942,618
   Property, Plant and Equipment, Net                  216,256            207,798
   Other Assets                                        1,653,166          1,256,336
   Total Assets                                $       3,861,327  $       3,406,752
   LIABILITIES AND SHAREHOLDERS' EQUITY
   Short-term Borrowings                       $       33,062     $       232,648
   Payables and Accrued Liabilities                    854,053            872,757
   Total Current Liabilities                           887,115            1,105,405
   Long-term Debt                                      1,134,723          709,723
   Other Liabilities                                   351,557            235,469
   Total Liabilities                                   2,373,395          2,050,597
   Total Shareholders' Equity                          1,487,932          1,356,155
   Total Liabilities and Shareholders' Equity  $       3,861,327  $       3,406,752
   

HASBRO, INC.
   CONSOLIDATED STATEMENTS OF OPERATIONS
   (Unaudited)
   (Thousands of Dollars and Shares Except Per Share Data)
   Quarter Ended                           Nine Months Ended
   Sept. 27, 2009       Sept. 28, 2008     Sept. 27, 2009       Sept. 28, 2008
   Net Revenues                             $    1,279,221       $       1,301,961  $    2,692,763       $    2,790,467
   Cost of Sales                                 550,026                 573,835         1,114,231            1,153,218
   Gross Profit                                  729,195                 728,126         1,578,532            1,637,249
   Amortization                                  20,955                  19,740          59,634               58,822
   Royalties                                     99,725                  83,747          228,004              210,336
   Research and Product Development              43,870                  49,993          124,530              137,195
   Advertising                                   134,950                 151,226         278,936              314,443
   Selling, Distribution and Administration      198,986                 207,495         542,429              573,766
   Operating Profit                              230,709                 215,925         344,999              342,687
   Interest Expense                              17,609                  11,729          44,827               36,107
   Other (Income) Expense, Net                   (4,759    )             2,676           (3,128    )          (5,895    )
   Earnings before Income Taxes                  217,859                 201,520         303,300              312,475
   Income Taxes                                  67,497                  63,291          93,933               99,290
   Net Earnings                             $    150,362         $       138,229    $    209,367         $    213,185
   Per Common Share
   Net Earnings
   Basic                                    $    1.08            $       0.98       $    1.50            $    1.51
   Diluted                                  $    0.99            $       0.89       $    1.39            $    1.39
   Cash Dividends Declared                  $    0.20            $       0.20       $    0.60            $    0.60
   Weighted Average Number of Shares
   Basic                                         139,814                 141,567         139,943              141,396
   Diluted                                       152,921                 156,180         152,952              155,856
   

HASBRO, INC.
   Supplemental Financial Data
   Net Earnings Per Share
   (Unaudited)
   (Thousands of Dollars and Shares Except Per Share Data)
   Sept. 27, 2009           Sept. 28, 2008
   Basic       Diluted      Basic       Diluted
   Quarter
   Net Earnings                                                    $  150,362  $   150,362  $  138,229  $   138,229
   Effect of Dilutive Securities:
   Interest Expense on Contingent Convertible Debentures Due 2021     -            1,076       -            1,059
   Adjusted Net Earnings                                           $  150,362  $   151,438  $  138,229  $   139,288
   Average Shares Outstanding                                         139,814      139,814     141,567      141,567
   Effect of Dilutive Securities:
   Contingent Convertible Debentures Due 2021                         -            11,566      -            11,566
   Options and Other Share-Based Awards                               -            1,541       -            3,047
   Equivalent Shares                                                  139,814      152,921     141,567      156,180
   Net Earnings Per Share                                          $  1.08     $   0.99     $  0.98     $   0.89
   Nine Months
   Net Earnings                                                    $  209,367  $   209,367  $  213,185  $   213,185
   Effect of Dilutive Securities:
   Interest Expense on Contingent Convertible Debentures Due 2021     -            3,250       -            3,177
   Adjusted Net Earnings                                           $  209,367  $   212,617  $  213,185  $   216,362
   Average Shares Outstanding                                         139,943      139,943     141,396      141,396
   Effect of Dilutive Securities:
   Contingent Convertible Debentures Due 2021                         -            11,566      -            11,566
   Options and Other Share-Based Awards                               -            1,443       -            2,894
   Equivalent Shares                                                  139,943      152,952     141,396      155,856
   Net Earnings Per Share                                          $  1.50     $   1.39     $  1.51     $   1.39
   

HASBRO, INC.
   Supplemental Financial Data
   Major Segment Results and EBITDA
   (Unaudited)
   (Thousands of Dollars)
   Quarter Ended                                 Nine Months Ended
   Sept. 27, 2009   Sept. 28, 2008   % Change    Sept. 27, 2009     Sept. 28, 2008     % Change
   Major Segment Results
   U.S. and Canada Segment
   External Net Revenues                $       791,896  $       821,028  -4       %  $       1,687,275  $       1,717,213  -2
   %
   Operating Profit                             129,092          131,929  -2       %          226,960            212,933    7
   %
   International Segment
   External Net Revenues                $       444,105          460,559  -4       %  $       909,528            1,002,502  -9
   %
   Operating Profit                             64,147           65,815   -3       %          66,126             92,820     -29
   %
   Entertainment and Licensing Segment
   External Net Revenues                $       41,554           18,340   127      %  $       92,940             65,931     41
   %
   Operating Profit                             19,820           6,252    217      %          36,386             26,676     36
   %
   Reconciliation of EBITDA
   Net Earnings                         $       150,362  $       138,229              $       209,367    $       213,185
   Interest Expense                             17,609           11,729                       44,827             36,107
   Income Taxes                                 67,497           63,291                       93,933             99,290
   Depreciation                                 30,494           28,788                       71,004             64,560
   Amortization                                 20,955           19,740                       59,634             58,822
   EBITDA                               $       286,917  $       261,777              $       478,765    $       471,964
   

SOURCE: Hasbro, Inc.

   Hasbro, Inc. 
   Investor Relations 
   Karen A. Warren, 401-727-5401 
   or 
   Debbie Hancock, 401-727-5401 
   or 
   News Media 
   Wayne S. Charness, 401-727-5983
   

Copyright Business Wire 2009
   
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