Le Lézard
Classified in: Business, Covid-19 virus
Subjects: EARNINGS, Photo/Multimedia, Conference Call, Webcast

Hasbro Outlines Strategic Growth Drivers at Virtual Investor Event


Hasbro, Inc. (NASDAQ: HAS), a global play and entertainment company, outlined the Company's strategic growth drivers for the near and medium-term and unveiled new segment reporting aligned to these drivers today at its virtual investor event. The new financial reporting segments are: Consumer Products, including toys and games; Wizards of the Coast (Wizards) and Digital Gaming; and Entertainment.

"The integrated and assembled value of consumer products, Wizards and digital gaming, and entertainment is how we unlock the next level of return for our business and for our stakeholders," said Brian Goldner, Hasbro's chairman and chief executive officer. "We have simplified our structure to maximize our growth and provide a clearer view to the drivers of Hasbro revenues, profit, margin, and cash generation. Our Brand Blueprint thrives as we create value from these three areas of our business, and we are building scale behind them to drive more profitable revenue and meet the needs of our consumers and audiences with innovation and creativity for a modern era.

"Our expectation is that we return to growth in revenues, earnings and EBITDA in 2021," continued Goldner. "This includes revenue growth in all three segments to potentially achieve double-digit revenue growth across Hasbro for the year. After increasing adjusted operating profit margins by 110 basis points last year, we believe we can maintain a similar level in 2021 while supporting new gaming and product launches and returning to 2019 levels of TV and film revenue. Our investments and plans are intended to drive revenue growth across each segment over a multi-year period. As we grow, we expand the reach of our brands to deliver higher operating margin and enhanced cash generation with the potential for Hasbro to reach operating margin levels greater than 16% and cash generation close to the billion-dollar level over the medium term."

New Reporting Segments

Hasbro unveiled new financial reporting segments, Consumer Products, Wizards of the Coast and Digital Gaming, and Entertainment, aligned to the three drivers of its business and supported by a new management structure. The Company will begin reporting these segments with the first quarter earnings release in April 2021 and has provided historical data for the new segment structure below and in the tables attached.

Consumer Products includes the revenue associated with the sale of Hasbro toys and games globally, as well as all licensed consumer products revenue. The Consumer Products segment also includes the Company's Global Operations, which services the supply chain for our toy and game businesses.

Wizards of the Coast and Digital Gaming includes all revenue associated with Wizards of the Coast tabletop and digital games, including MAGIC: THE GATHERING and DUNGEONS & DRAGONS, as well as licensed Hasbro digital gaming across the portfolio.

Entertainment includes all revenue associated with Hasbro and eOne entertainment across Family Brands, TV and Film, and music.

Full-Year Major Operating Segments1

$ Millions

Net Revenues

Operating Profit
(Loss)

Adjusted
Operating
Profit

EBITDA

Adjusted
EBITDA

2020

2019

2020

2019

2020

2019

2020

2019

2020

2019

Consumer Products

$3,649.6

$4,005.9

$308.1

$361.3

$308.1

$361.3

$443.3

$545.0

$480.3

$586.9

Wizards of the Coast and Digital Gaming

$906.7

$761.2

$420.4

$294.7

$420.4

$294.7

$434.9

$304.9

$444.3

$312.5

Entertainment

$909.1

$1,168.9

($141.1)

($20.8)

$90.1

$122.2

($47.0)

$79.2

$92.4

$147.9

1 For comparability, the quarters and year-ended December 29, 2019 includes the pro forma results for the eOne acquisition. Pro Forma reconciliations are provided in the 2020 quarterly Earnings Release tables. Schedules attached to this release include historical quarterly and full-year results by segment. Reconciliations are included in the attached schedules Reconciliation of Adjusted Operating Profit and Reconciliation of EBITDA and Adjusted EBITDA.

Segment Announcements and Highlights from Investor Event

Purpose

Consumer Products

Wizards of the Coast and Digital Gaming

Entertainment

Webcast and Replay

The event was webcast live and is available for replay on Hasbro's investor relations page at https://investor.hasbro.com. Supporting materials for the event, including a reconciliation of GAAP to Non-GAAP, are also available on the website.

About Hasbro

Hasbro (NASDAQ: HAS) is a global play and entertainment company committed to Creating the World's Best Play and Entertainment Experiences. From toys, games and consumer products to television, movies, digital gaming, live action, music, and virtual reality experiences, Hasbro connects to global audiences by bringing to life great innovations, stories and brands across established and inventive platforms. Hasbro's iconic brands include NERF, MAGIC: THE GATHERING, MY LITTLE PONY, TRANSFORMERS, PLAY-DOH, MONOPOLY, BABY ALIVE, POWER RANGERS, PEPPA PIG and PJ MASKS, as well as premier partner brands. Through its global entertainment studio, eOne, Hasbro is building its brands globally through great storytelling and content on all screens. Hasbro is committed to making the world a better place for all children and all families through corporate social responsibility and philanthropy. Hasbro ranked among the 2020 100 Best Corporate Citizens by 3BL Media, has been named one of the World's Most Ethical Companies® by Ethisphere Institute for the past ten years, and one of America's Most JUST Companies by Forbes and JUST Capital for the past four years. We routinely share important business and brand updates 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 prospects for growth in 2021 and beyond; our ability to achieve our financial, strategic and business goals; the expected timing and release of certain products and entertainment; and our planned investments. 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. Specific factors that might cause such a difference include, but are not limited to:

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 release or to update them to reflect events or circumstances occurring after the date of this release.

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, which excludes, where applicable, the 2020 impact of eOne acquisition and related costs, purchased intangible amortization, other severance costs and income tax expense associated with U.K tax reform. For 2019, Pro Forma Adjusted operating profit excludes the impact of purchased intangible amortization and certain charges incurred by eOne related to prior restructuring programs and other acquisitions. Also included in the financial tables are the non-GAAP financial measures of EBITDA, Adjusted EBITDA and Pro Forma 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 for 2019, the charges associated with the settlement of the Company's U.S. pension plan. The Company also excludes non-cash stock compensation from its measure of Adjusted EBITDA. 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 operating profit and Pro Forma 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-IR

# # #

(Tables Attached)

HASBRO, INC.
SUPPLEMENTAL FINANCIAL DATA
SEGMENT RESULTS
(Unaudited)
(Millions of Dollars)
 
For comparability, the quarters and year ended December 29, 2019 includes the pro forma results for the eOne acquisition. Pro Forma reconciliations are provided in the 2020 quarterly Earnings Release tables.
Pro Forma
Quarter Ended Fiscal Year Quarter Ended Fiscal Year
March
2020
June
2020
September
2020
December
2020

2020

March
2019
June
2019
September
2019
December
2019

2019

 
Segment Results
 
Consumer Products (2)
External Net Revenues

$ 572.5

$ 519.5

$ 1,317.8

$ 1,239.8

$ 3,649.6

$ 619.4

$ 728.8

$ 1,379.4

$ 1,278.3

$ 4,005.9

Operating Profit (Loss)

(20.8)

(52.6)

244.6

136.9

308.1

(14.4)

5.1

228.1

142.5

361.3

Adjusted EBITDA (1)

15.7

(21.2)

295.5

190.3

480.3

29.7

93.3

284.0

179.9

586.9

 
Wizards & Digital Gaming
External Net Revenues

$ 210.6

$ 186.7

$ 273.4

$ 236.0

$ 906.7

$ 140.0

$ 273.1

$ 186.1

$ 162.0

$ 761.2

Operating Profit

95.8

74.1

141.6

108.9

420.4

37.1

145.7

65.2

46.7

294.7

Adjusted EBITDA (1)

99.0

78.9

152.2

114.2

444.3

41.3

149.7

69.7

51.8

312.5

 
Entertainment (3)
External Net Revenues

$ 322.5

$ 154.1

$ 185.4

$ 247.1

$ 909.1

$ 439.3

$ 213.7

$ 293.0

$ 222.9

$ 1,168.9

Operating Profit (Loss)

(53.2)

(6.2)

(46.7)

(35.0)

(141.1)

94.8

(55.3)

19.1

(79.4)

(20.8)

Adjusted Operating Profit (Loss) (1)

70.4

16.4

(22.0)

25.3

90.1

131.4

(14.7)

48.3

(42.8)

122.2

Adjusted EBITDA (1)

65.0

29.2

(16.8)

15.0

92.4

135.9

(9.1)

55.4

(34.3)

147.9

 
Corporate and Other
Operating Profit (Loss)

$ (45.1)

$ (13.1)

$ (2.9)

$ (24.5)

$ (85.6)

$ 21.8

$ 5.2

$ 0.6

$ 27.0

$ 54.6

Adjusted Operating Profit (Loss) (1)

6.1

8.7

3.0

(9.7)

8.1

21.8

5.2

0.6

27.0

54.6

Adjusted EBITDA (1)

24.2

23.9

11.2

(11.2)

48.1

32.6

(19.9)

9.9

54.0

76.6

 
Hasbro, Inc.
External Net Revenues

$ 1,105.6

$ 860.3

$ 1,776.6

$ 1,722.9

$ 5,465.4

$ 1,198.7

$ 1,215.6

$ 1,858.5

$ 1,663.2

$ 5,936.0

Operating Profit (Loss)

(23.3)

2.2

336.6

186.3

501.8

139.3

100.7

313.0

136.8

689.8

Adjusted Operating Profit (1)

151.5

46.6

367.2

261.4

826.7

175.9

141.3

342.2

173.4

832.8

Adjusted EBITDA (1)

203.9

110.8

442.1

308.3

1,065.1

239.5

214.0

419.0

251.4

1,123.9

 
(1) Adjusted measures exclude certain non-GAAP adjustments. See "Reconciliation of Non-GAAP Financial Measures" for EBITDA, Adjusted EBITDA and Adjusted Operating Profit reconciliations and detail of non-GAAP adjustments.
 
Pro Forma
Quarter Ended Fiscal Year Quarter Ended Fiscal Year
March
2020
June
2020
September
2020
December
2020

2020

March
2019
June
2019
September
2019
December
2019

2019

(2) Consumer Products Segment Net Revenues by Major Geographic Region
North America

$ 321.8

$ 283.0

$ 830.1

$ 681.0

$ 2,115.9

$ 317.5

$ 372.6

$ 820.5

$ 634.2

$ 2,144.8

Europe

156.7

141.9

316.8

373.7

989.1

160.8

176.6

309.3

376.8

1,023.5

Asia Pacific

58.2

60.7

78.2

98.9

296.0

75.2

86.8

94.8

132.9

389.7

Latin America

35.8

33.9

92.7

86.2

248.6

65.9

92.8

154.8

134.4

447.9

Total

$ 572.5

$ 519.5

$ 1,317.8

$ 1,239.8

$ 3,649.6

$ 619.4

$ 728.8

$ 1,379.4

$ 1,278.3

$ 4,005.9

 
(3) Entertainment Segment Net Revenues by Category
Film and TV

$ 264.0

$ 108.9

$ 141.6

$ 186.0

$ 700.5

$ 387.7

$ 160.9

$ 223.5

$ 155.7

$ 927.8

Family Brands

25.9

18.8

14.2

27.6

86.5

29.6

23.2

39.7

30.6

123.1

Music and Other

32.6

26.4

29.6

33.5

122.1

22.0

29.6

29.8

36.6

118.0

Total

$ 322.5

$ 154.1

$ 185.4

$ 247.1

$ 909.1

$ 439.3

$ 213.7

$ 293.0

$ 222.9

$ 1,168.9

HASBRO, INC.
SUPPLEMENTAL FINANCIAL DATA
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Unaudited)
(Millions of Dollars)
 
For comparability, the quarters and year ended December 29, 2019 includes the pro forma results for the eOne acquisition. Pro Forma reconciliations are provided in the 2020 quarterly Earnings Release tables.
 
Reconciliation of EBITDA and Adjusted EBITDA
Pro Forma
Quarter Ended Fiscal Year Quarter Ended Fiscal Year
March
2020
June
2020
September
2020
December
2020

2020

March
2019
June
2019
September
2019
December
2019

2019

Net Earnings (Loss) Attributable to Hasbro, Inc.

$ (69.7)

$ (33.9)

$ 220.9

$ 105.2

$ 222.5

$ 76.5

$ (42.6)

$ 216.5

$ 95.5

$ 345.9

Interest Expense

54.7

49.6

49.4

47.4

201.1

54.0

53.3

52.2

63.6

223.1

Income Tax Expense (Benefit)

(4.1)

(10.8)

79.2

32.3

96.6

17.8

(12.0)

50.2

1.0

57.0

Net Earnings (Loss) Attributable to Noncontrolling Interests

1.8

1.0

(0.9)

1.0

2.9

2.2

0.4

2.3

0.5

5.4

Depreciation

23.8

32.9

37.5

26.1

120.3

28.9

36.6

41.3

34.4

141.2

Amortization of Intangibles

36.8

34.7

36.2

37.1

144.8

36.4

36.4

36.4

36.4

145.6

EBITDA

$ 43.3

$ 73.5

$ 422.3

$ 249.1

$ 788.2

$ 215.8

$ 72.1

$ 398.9

$ 231.4

$ 918.2

Non-GAAP Adjustments and Stock Compensation (1)

160.6

37.3

19.8

59.2

276.9

23.7

141.9

$ 20.1

20.0

205.7

Adjusted EBITDA

$ 203.9

$ 110.8

$ 442.1

$ 308.3

$ 1,065.1

$ 239.5

$ 214.0

$ 419.0

$ 251.4

$ 1,123.9

 
(1) Non-GAAP Adjustments and Stock Compensation:
Acquisition and Related Costs

$ 149.8

$ 10.3

$ 5.9

$ 52.6

$ 218.6

$ -

$ -

$ -

$ -

$ -

Severance

-

11.5

-

(3.1)

8.4

-

-

-

-

Pro Forma eOne Adjustments

-

-

-

-

-

12.0

16.0

4.6

12.0

44.6

Pension Settlement

-

-

-

-

-

-

110.8

-

0.2

111.0

Stock Compensation

10.8

15.5

13.9

9.7

49.9

11.7

15.1

15.5

7.8

50.1

Total

$ 160.6

$ 37.3

$ 19.8

$ 59.2

$ 276.9

$ 23.7

$ 141.9

$ 20.1

$ 20.0

$ 205.7

 
Adjusted EBITDA by Segment:
Consumer Products

$ 15.7

$ (21.2)

$ 295.5

$ 190.3

$ 480.3

$ 29.7

$ 93.3

$ 284.0

$ 179.9

$ 586.9

Wizards & Digital Gaming

99.0

78.9

152.2

114.2

444.3

41.3

149.7

69.7

51.8

312.5

Entertainment

65.0

29.2

(16.8)

15.0

92.4

135.9

(9.1)

55.4

(34.3)

147.9

Corporate and Other

24.2

23.9

11.2

(11.2)

48.1

32.6

(19.9)

9.9

54.0

76.6

Adjusted EBITDA

$ 203.9

$ 110.8

$ 442.1

$ 308.3

$ 1,065.1

$ 239.5

$ 214.0

$ 419.0

$ 251.4

$ 1,123.9

 
Consumer Products
Operating Profit (Loss)

$ (20.8)

$ (52.6)

$ 244.6

$ 136.9

$ 308.1

$ (14.4)

$ 5.1

$ 228.1

$ 142.5

$ 361.3

Other Income (Expense)

(5.7)

1.2

1.6

16.4

13.5

5.2

41.0

2.6

(11.7)

37.1

Depreciation

12.1

20.8

27.8

15.3

76.0

15.1

23.5

29.6

25.5

93.7

Amortization of Intangibles

22.5

0.3

11.4

11.5

45.7

13.3

13.2

13.2

13.2

52.9

EBITDA

8.1

(30.3)

285.4

180.1

443.3

19.2

82.8

273.5

169.5

545.0

Non-GAAP Adjustments and Stock Compensation

7.6

9.1

10.1

10.2

37.0

10.5

10.5

10.5

10.4

41.9

Adjusted EBITDA

$ 15.7

$ (21.2)

$ 295.5

$ 190.3

$ 480.3

$ 29.7

$ 93.3

$ 284.0

$ 179.9

$ 586.9

 
Wizards & Digital Gaming
Operating Profit

$ 95.8

$ 74.1

$ 141.6

$ 108.9

$ 420.4

$ 37.1

$ 145.7

$ 65.2

$ 46.7

$ 294.7

Other Income (Expense)

(1.0)

0.3

5.7

0.4

5.4

-

-

-

0.8

0.8

Depreciation

2.3

2.2

2.3

2.3

9.1

2.3

2.1

2.6

2.4

9.4

Amortization of Intangibles

-

-

-

-

-

-

-

-

-

-

EBITDA

97.1

76.6

149.6

111.6

434.9

39.4

147.8

67.8

49.9

304.9

Non-GAAP Adjustments and Stock Compensation

1.9

2.3

2.6

2.6

9.4

1.9

1.9

1.9

1.9

7.6

Adjusted EBITDA

$ 99.0

$ 78.9

$ 152.2

$ 114.2

$ 444.3

$ 41.3

$ 149.7

$ 69.7

$ 51.8

$ 312.5

 
Entertainment
Operating Profit (Loss)

$ (53.2)

$ (6.2)

$ (46.7)

$ (35.0)

$ (141.1)

$ 94.8

$ (55.3)

$ 19.1

$ (79.4)

$ (20.8)

Other Income (Expense)

3.0

(2.6)

0.4

(15.1)

(14.3)

(5.3)

(1.6)

(3.7)

0.7

(9.9)

Depreciation

1.7

2.4

2.8

2.8

9.7

2.6

1.9

3.4

2.5

10.4

Amortization of Intangibles

14.2

34.2

24.7

25.6

98.7

24.9

24.9

24.9

24.8

99.5

EBITDA

(34.3)

27.8

(18.8)

(21.7)

(47.0)

117.0

(30.1)

43.7

(51.4)

79.2

Non-GAAP Adjustments and Stock Compensation

99.3

1.4

2.0

36.7

139.4

18.9

21.0

11.7

17.1

68.7

Adjusted EBITDA

$ 65.0

$ 29.2

$ (16.8)

$ 15.0

$ 92.4

$ 135.9

$ (9.1)

$ 55.4

$ (34.3)

$ 147.9

HASBRO, INC.
SUPPLEMENTAL FINANCIAL DATA
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Unaudited)
(Millions of Dollars)
 
For comparability, the quarters and year ended December 29, 2019 includes the pro forma results for the eOne acquisition. Pro Forma reconciliations are provided in the 2020 quarterly Earnings Release tables.
 
Reconciliation of Adjusted Operating Profit
Pro Forma
Quarter Ended Fiscal Year Quarter Ended Fiscal Year
March
2020
June
2020
September
2020
December
2020

2020

March
2019
June
2019
September
2019
December
2019

2019

 
Operating Profit (Loss)

$ (23.3)

$ 2.2

$ 336.6

$ 186.3

$ 501.8

$ 139.3

$ 100.7

$ 313.0

$ 136.8

$ 689.8

Consumer Products

(20.8)

(52.6)

244.6

136.9

308.1

(14.4)

5.1

228.1

142.5

361.3

Wizards & Digital Gaming

95.8

74.1

141.6

108.9

420.4

37.1

145.7

65.2

46.7

294.7

Entertainment

(53.2)

(6.2)

(46.7)

(35.0)

(141.1)

94.8

(55.3)

19.1

(79.4)

(20.8)

Corporate and Other

(45.1)

(13.1)

(2.9)

(24.5)

(85.6)

21.8

5.2

0.6

27.0

54.6

 
Non-GAAP Adjustments (1)

$ 174.8

$ 44.4

$ 30.6

$ 75.1

$ 324.9

$ 36.6

$ 40.6

$ 29.2

$ 36.6

$ 143.0

Entertainment

123.6

22.6

24.7

60.3

231.2

36.6

40.6

29.2

36.6

143.0

Corporate and Other

51.2

21.8

5.9

14.8

93.7

-

-

-

-

-

 
Adjusted Operating Profit (Loss)

$ 151.5

$ 46.6

$ 367.2

$ 261.4

$ 826.7

$ 175.9

$ 141.3

$ 342.2

$ 173.4

$ 832.8

Consumer Products

(20.8)

(52.6)

244.6

136.9

308.1

(14.4)

5.1

228.1

142.5

361.3

Wizards & Digital Gaming

95.8

74.1

141.6

108.9

420.4

37.1

145.7

65.2

46.7

294.7

Entertainment

70.4

16.4

(22.0)

25.3

90.1

131.4

(14.7)

48.3

(42.8)

122.2

Corporate and Other

6.1

8.7

3.0

(9.7)

8.1

21.8

5.2

0.6

27.0

54.6

 
 
(1) Non-GAAP Adjustments
Acquisition and Related Costs

$ 149.8

$ 10.3

$ 5.9

$ 52.6

$ 218.6

$ -

$ -

$ -

$ -

$ -

Acquired Intangible Amortization

25.0

22.6

24.7

25.6

97.9

24.6

24.6

24.6

24.6

98.4

Severance

-

11.5

-

(3.1)

8.4

-

-

-

-

-

Pro Forma eOne Adjustments

-

-

-

-

12.0

16.0

4.6

12.0

44.6

Total

$ 174.8

$ 44.4

$ 30.6

$ 75.1

$ 324.9

$ 36.6

$ 40.6

$ 29.2

$ 36.6

$ 143.0

 


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