Hasbro’s Revenue & Earnings For 201107/02/2012
Full-year International segment net revenues up 19% to $1.86 billion; Up 16% excluding the positive impact of foreign exchange;
- Boys category revenues increased 35% and Preschool category grew 4%;
- Eleventh consecutive year of full-year earnings per share growth; Full-year 2011 EPS of $2.82 per diluted share versus $2.74 per diluted share in 2010;
- Repurchased 10.5 million shares of common stock during 2011 at a total cost of $423.0 million and an average price of $40.42;
- Paid $154 million in cash dividends during 2011; On February 2, 2012, Board approved a 20% increase in the quarterly dividend to $0.36 per share.
Hasbro, Inc. today reported revenue and earnings per share growth for 2011. For the full-year 2011, the Company reported record revenues of $4.29 billion, an increase of 7%, compared to $4.00 billion in 2010. Foreign exchange had a $64.3 million positive impact on full-year 2011 revenues. Absent this impact, revenues grew 5.5%. Net earnings for the full year were $385.4 million or $2.82 per diluted share, versus $397.8 million or $2.74 per diluted share in 2010.
For the fourth quarter 2011, the Company reported net revenues of $1.33 billion an increase of 4% versus $1.28 billion in 2010. Foreign exchange had a $13.3 million negative impact on revenues in the quarter. The Company reported net earnings for the quarter of $139.1 million or $1.06 per diluted share versus $140.0 million or $0.99 per diluted share in 2010.
“In 2011 we delivered strong growth in our international business driven by continued investments in advancing our global capabilities,” said Brian Goldner, President and Chief Executive Officer. “However, we did not meet our expectations for growth in the U.S. and Canada segment, as we experienced weaker demand than we had anticipated, especially post-Thanksgiving, including challenges in the Games & Puzzles category. We have taken significant steps by putting new leadership and new plans in place to re-accelerate growth and innovation in both of these important areas.”
“Globally, the Hasbro team is focused on the key tenants of our branded-play strategy, which is centered on relentless innovation of our core brands, the invention of new brands, and the expansion of play experiences into new immersive brand expressions,” continued Goldner. “We are confident that through the execution of our branded-play strategy Hasbro is well positioned to deliver the innovation and brand experiences that our global consumers want and that will drive long-term value for our shareholders.”
“Over the past several years, Hasbro’s financial strength and discipline has enabled us to invest in our business to develop innovative new products and increase our global footprint. While doing so, since 2005, we have repurchased $2.6 billion worth of Hasbro common stock and with the recent announcement to increase our dividend, over the same period our quarterly dividend has grown from $0.09 per share to $0.36 per share,” said Deborah Thomas, Chief Financial Officer. “Despite the challenges we encountered in 2011, we grew our business, effectively managed our capital structure and maintained a healthy balance sheet. For the full-year 2012, absent the impact of foreign exchange, we expect to again grow revenues and earnings per share.”
For the full-year 2011, worldwide net revenues grew in the Boys and Preschool categories. The Boys category increased 35% to $1.82 billion led by growth in TRANSFORMERS and BEYBLADE and the Preschool category grew 4% to $553.0 million supported by the introduction of SESAME STREET. These increases were partially offset by a 10% decline in the Games & Puzzles category to $1.17 billion and an 11% decline in the Girls category to $741.4 million. Despite declines in these categories several brands posted year-over-year growth including MAGIC: THE GATHERING, MY LITTLE PONY and BABY ALIVE.
U.S. and Canada segment net revenues were $2.25 billion for full-year 2011, compared to $2.30 billion in 2010. The segment experienced growth in the Boys and Preschool categories offset by declines in the Games & Puzzles and Girls categories. The U.S. and Canada segment reported an operating profit of $278.4 million compared to $349.6 million in 2010.
Full-year 2011 International segment net revenues increased 19% to $1.86 billion versus $1.56 billion in 2010. Absent a positive $59.3 million impact of foreign exchange, full-year 2011 International segment net revenues increased 16% year-over-year. Net revenues in the International segment reflect growth in the Boys category. The International segment reported an operating profit of $270.6 million, up $60.9 million or 29% versus $209.7 million in 2010.
Entertainment and Licensing segment net revenues for full-year 2011 were $162.2 million, up 19% from $136.5 million in 2010. The growth in the segment reflects the sale of television programming globally, as well as movie and merchandise related revenue from Transformers: Dark of the Moon. The Entertainment and Licensing segment reported an operating profit of $42.8 million versus $43.2 million in 2010.
The Company repurchased a total of 10.5 million shares of common stock during 2011 at a total cost of $423.0 million and an average price of $40.42 per share. During the fourth quarter, the company repurchased 1.0 million shares of common stock at a total cost of $36.3 million and an average price of $35.31. At year end, $227.3 million remained available in the current share repurchase authorization. In 2011, the Company paid $154 million in cash dividends to shareholders.
Note: The Company’s reported 2011 earnings per diluted share includes the impact of a $20.5 million favorable tax adjustment, or $0.15 per diluted share, and pre-tax expense of $14.4 million, or $0.07 per diluted share, related to costs associated with establishing Hasbro’s Gaming Center of Excellence in Rhode Island, both of which were announced in the second quarter 2011. The reported 2010 earnings per diluted share included the impact of a $21.2 million favorable tax adjustment, or $0.15 per diluted share, recorded in the first quarter 2010.
The Company will webcast its fourth quarter and full-year 2011 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 will be on Hasbro’s web site approximately 2 hours following completion of the call.