Hasbro Reports First Quarter 2024 Financial Results
Company Reports Improved Profitability and EPS Growth in the quarter
Pawtucket, RI – Hasbro reported financial results for the first quarter 2024.
“The first quarter was a good start to the year for Hasbro; we are continuing to see the results of our transformation work,” said Chris Cocks, Hasbro Chief Executive Officer. “Performance from our licensing portfolio shows the strength of our brands and we continue to fuel innovation in games and toys as we expand our reach across play patterns to fans of all ages.”
“We made solid progress in our turnaround efforts in the first quarter,” said Gina Goetter, Hasbro, Chief Financial Officer. “We landed revenue where we expected and drove significant operating profit improvement led by our operational excellence program and improved business mix. We remain on track for our full-year commitments.”
First Quarter 2024 Highlights
- First quarter Hasbro, Inc. revenue declined 24% driven primarily by the eOne film and television divestiture; excluding the divestiture, revenue decline 9% with growth in the Wizards of the Coast and Digital Gaming segment (+7%) and Entertainment (+65%) more than offset by declines in Consumer Products (-21%).
- Operating profit of $116.2 million includes $32.4 million of intangible amortization associated with eOne, loss on disposal of business and costs associated with the Company’s transformation; Operating Margin of 15.3%
- Adjusted operating profit of $148.6 million (+$101.4 million vs. PY) and adjusted operating margin of 19.6% (+14.9 points vs. PY), driven by favorable business mix, supply chain productivity and reduced operating costs.
- Hasbro owned inventory down 53% versus prior year, including a 57% decline in Consumer Products inventory versus the first quarter 2023.
- Reported net earnings of $0.42 per diluted share; adjusted net earnings of $0.61 per diluted share benefiting from improved operations and favorability from a stock compensation adjustment and net interest expense reduction.
- Operating cash flow of $177.8 million vs. $88.8 million in the prior year driven by improved operating results and benefits from working capital.
- Paid $97.2 million in cash dividends to shareholders in the quarter.
First Quarter 2024 Segment Details
- Consumer Products Segment
- Revenue decrease of 21% driven by broader industry trends, exited businesses and reduced closeout sales as a result of last year’s inventory clean-up.
- Operating margin of -11.4% and adjusted operating margin of -9.2%; cost savings and productivity gains offset by volume declines.
- FURBY continued to perform well in the quarter supported by the launch of FURBLETS in December 2023.
- Wizards of the Coast and Digital Gaming Segment
- Revenue increase of 7% driven by increase in Licensed Digital Gaming revenue behind Baldur’s Gate 3 and Monopoly Go!.
- Tabletop revenue increased 5% behind growth in MAGIC: THE GATHERING shipment timing to support the Outlaws of Thunder Junction release and strong demand for the Universes Beyond Fallout Commander set.
- Operating profit increased 60% and operating profit margin of 38.8% due to higher digital licensing revenue mix of revenues and cost management.
- Entertainment Segment
- Revenue decline of 85% impacted by the sale of eOne Film and TV in December 2023; Absent this impact, revenue grew 65% driven by the delivery of PEPPA PIG content.
- Operating profit of $5.8 million compared to operating loss of $8.7 million in the first quarter 2023.
- Adjusted operating profit of $18.2 million compared to adjusted operating loss of $2.5 million in 2023.
See the financial tables accompanying the press release for a reconciliation of GAAP to non-GAAP financial measures.
2024 Company Outlook1
For the full year, the Company maintains annual guidance and continues to expect:
- Consumer Products Segment revenue down 7% to 12% with 4 points of the decline coming from businesses shifting to an out-license model; Operating margin 4% to 6%.
- Wizards of the Coast Segment revenue down 3% to 5%; Operating margin 38% to 40%.
- Pro-Forma Entertainment segment revenue down $15 million; Adjusted operating margin of approximately 60%.
- Total Hasbro, Inc Adjusted EBITDA of $925M to $1B.
- Gross savings target to $750M by year end 2025.
2024 Capital Allocation priorities:
- Invest in core business.
- Return cash to shareholders through the dividend.
- Continue to pay down debt and progress towards leverage target.
1
HAS-E
(Tables Attached)
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HASBRO, INC. |
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CONDENSED CONSOLIDATED BALANCE SHEETS (1) |
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(Unaudited) |
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(Millions of Dollars) |
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March 31, 2024 |
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April 2, 2023 |
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ASSETS |
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Cash and Cash Equivalents |
$ |
570.2 |
|
$ |
386.2 |
|
Accounts Receivable, Net |
|
632.5 |
|
|
685.2 |
|
Inventories |
|
336.2 |
|
|
713.4 |
|
Prepaid Expenses and Other Current Assets |
|
456.5 |
|
|
754.4 |
|
Total Current Assets |
|
1,995.4 |
|
|
2,539.2 |
|
Property, Plant and Equipment, Net |
|
501.3 |
|
|
509.1 |
|
Goodwill |
|
2,278.8 |
|
|
3,470.1 |
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Other Intangible Assets, Net |
|
569.7 |
|
|
801.0 |
|
Other Assets |
|
857.8 |
|
|
1,604.3 |
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Total Assets |
$ |
6,203.0 |
|
$ |
8,923.7 |
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LIABILITIES, NONCONTROLLING INTERESTS AND SHAREHOLDERS’ EQUITY |
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Short-Term Borrowings |
$ |
— |
|
$ |
134.5 |
|
Current Portion of Long-Term Debt |
|
500.0 |
|
|
109.0 |
|
Accounts Payable |
|
254.2 |
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|
360.1 |
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Accrued Liabilities |
|
1,038.0 |
|
|
1,293.8 |
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Total Current Liabilities |
|
1,792.2 |
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|
1,897.4 |
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Long-Term Debt |
|
2,966.9 |
|
|
3,682.4 |
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Other Liabilities |
|
414.0 |
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|
585.2 |
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Total Liabilities |
|
5,173.1 |
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|
6,165.0 |
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Total Shareholders’ Equity |
|
1,029.9 |
|
|
2,758.7 |
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Total Liabilities, Noncontrolling Interests and Shareholders’ Equity |
$ |
6,203.0 |
|
$ |
8,923.7 |
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(1) Amounts may not sum due to rounding |
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HASBRO, INC. |
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CONSOLIDATED STATEMENTS OF OPERATIONS (1) |
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(Unaudited) |
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(Millions of Dollars and Shares Except Per Share Data) |
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Quarter Ended |
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March 31, 2024 |
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% Net |
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April 2, 2023 |
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% Net |
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Net Revenues |
|
$ |
757.3 |
|
|
100.0 |
% |
|
$ |
1,001.0 |
|
|
100.0 |
% |
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Costs and Expenses: |
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Cost of Sales |
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|
204.2 |
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|
27.0 |
% |
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|
285.3 |
|
|
28.5 |
% |
|
Program Cost Amortization |
|
|
8.1 |
|
|
1.1 |
% |
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|
122.5 |
|
|
12.2 |
% |
|
Royalties |
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|
50.9 |
|
|
6.7 |
% |
|
|
69.0 |
|
|
6.9 |
% |
|
Product Development |
|
|
65.5 |
|
|
8.6 |
% |
|
|
83.3 |
|
|
8.3 |
% |
|
Advertising |
|
|
51.5 |
|
|
6.8 |
% |
|
|
82.8 |
|
|
8.3 |
% |
|
Amortization of Intangibles |
|
|
17.0 |
|
|
2.2 |
% |
|
|
23.1 |
|
|
2.3 |
% |
|
Selling, Distribution and Administration |
|
|
234.8 |
|
|
31.0 |
% |
|
|
317.1 |
|
|
31.7 |
% |
|
Loss on Disposal of Business |
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|
9.1 |
|
|
1.2 |
% |
|
|
— |
|
|
0.0 |
% |
|
Operating Profit |
|
|
116.2 |
|
|
15.3 |
% |
|
|
17.9 |
|
|
1.8 |
% |
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Non-operating expense (income): |
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Interest Expense |
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38.5 |
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|
5.1 |
% |
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|
46.3 |
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|
4.6 |
% |
|
Interest Income |
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(8.3 |
) |
|
-1.1 |
% |
|
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(6.0 |
) |
|
-0.6 |
% |
|
Other Expense (Income), Net |
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|
5.0 |
|
|
0.7 |
% |
|
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(1.4 |
) |
|
-0.1 |
% |
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Total non-operating expense, net |
|
|
35.2 |
|
|
4.6 |
% |
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|
38.9 |
|
|
3.9 |
% |
|
Earnings (Loss) before Income Taxes |
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|
81.0 |
|
|
10.7 |
% |
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(21.0 |
) |
|
-2.1 |
% |
|
Income Tax Expense |
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|
21.9 |
|
|
2.9 |
% |
|
|
0.7 |
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|
0.1 |
% |
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Net Earnings (Loss) |
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|
59.1 |
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|
7.8 |
% |
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(21.7 |
) |
|
-2.2 |
% |
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Net Earnings Attributable to Noncontrolling Interests |
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|
0.9 |
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0.1 |
% |
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|
0.4 |
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|
0.0 |
% |
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Net Earnings (Loss) Attributable to Hasbro, Inc. |
|
$ |
58.2 |
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|
7.7 |
% |
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$ |
(22.1 |
) |
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-2.2 |
% |
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Per Common Share |
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Net Earnings (Loss) |
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Basic |
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$ |
0.42 |
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$ |
(0.16 |
) |
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Diluted |
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$ |
0.42 |
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$ |
(0.16 |
) |
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Cash Dividends Declared |
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$ |
0.70 |
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$ |
0.70 |
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Weighted Average Number of Shares |
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Basic |
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|
139.1 |
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138.6 |
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Diluted |
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|
139.3 |
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138.6 |
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(1) Amounts may not sum due to rounding |
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HASBRO, INC. |
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (1) |
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(Unaudited) |
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(Millions of Dollars) |
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Quarter Ended |
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March 31, 2024 |
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April 2, 2023 |
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Cash Flows from Operating Activities: |
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Net Earnings (Loss) |
$ |
59.1 |
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|
$ |
(21.7 |
) |
|
Loss on Disposal of Business |
|
9.1 |
|
|
|
— |
|
|
Other Non-Cash Adjustments |
|
60.9 |
|
|
|
181.9 |
|
|
Changes in Operating Assets and Liabilities |
|
48.7 |
|
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|
(71.4 |
) |
|
Net Cash Provided by Operating Activities |
|
177.8 |
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|
88.8 |
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Cash Flows from Investing Activities: |
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Additions to Property, Plant and Equipment |
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(45.8 |
) |
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(53.2 |
) |
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Other |
|
(2.3 |
) |
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|
(2.4 |
) |
|
Net Cash Utilized by Investing Activities |
|
(48.1 |
) |
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|
(55.6 |
) |
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Cash Flows from Financing Activities: |
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Proceeds from Long-Term Debt |
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— |
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|
1.2 |
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Repayments of Long-Term Debt |
|
— |
|
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|
(35.5 |
) |
|
Net Repayments of Short-Term Borrowings |
|
— |
|
|
|
(7.7 |
) |
|
Stock-Based Compensation Transactions |
|
0.2 |
|
|
|
— |
|
|
Dividends Paid |
|
(97.2 |
) |
|
|
(96.7 |
) |
|
Payments Related to Tax Withholding for Share-Based Compensation |
|
(10.2 |
) |
|
|
(14.0 |
) |
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Other |
|
(1.7 |
) |
|
|
(3.9 |
) |
|
Net Cash Utilized by Financing Activities |
|
(108.9 |
) |
|
|
(156.6 |
) |
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Effect of Exchange Rate Changes on Cash |
|
4.0 |
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(3.5 |
) |
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Net Increase (Decrease) in Cash and Cash Equivalents |
|
24.8 |
|
|
|
(126.9 |
) |
|
|
|
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Cash and Cash Equivalents at Beginning of Year |
|
545.4 |
|
|
|
513.1 |
|
|
|
|
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Cash and Cash Equivalents at End of Period |
$ |
570.2 |
|
|
$ |
386.2 |
|
|
(1) Amounts may not sum due to rounding |
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HASBRO, INC. |
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SUPPLEMENTAL FINANCIAL DATA |
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SEGMENT RESULTS – AS REPORTED AND AS ADJUSTED (5) |
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(Unaudited) |
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(Millions of Dollars) |
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Operating Results |
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Quarter Ended March 31, 2024 |
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Quarter Ended April 2, 2023 |
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As Reported |
|
Non-GAAP |
|
Adjusted |
|
As Reported |
|
Non-GAAP |
|
Adjusted |
|
% |
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Total Company Results |
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|
External Net Revenues (1) |
$ |
757.3 |
|
|
$ |
— |
|
|
$ |
757.3 |
|
|
$ |
1,001.0 |
|
|
$ |
— |
|
|
$ |
1,001.0 |
|
|
-24 |
% |
|
Operating Profit |
|
116.2 |
|
|
|
32.4 |
|
|
|
148.6 |
|
|
|
17.9 |
|
|
|
29.3 |
|
|
|
47.2 |
|
|
>100% |
|
|
Operating Margin |
|
15.3 |
% |
|
|
4.3 |
% |
|
|
19.6 |
% |
|
|
1.8 |
% |
|
|
2.9 |
% |
|
|
4.7 |
% |
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Segment Results |
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Consumer Products: |
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|
External Net Revenues (2) |
$ |
413.0 |
|
|
$ |
— |
|
|
$ |
413.0 |
|
|
$ |
520.4 |
|
|
$ |
— |
|
|
$ |
520.4 |
|
|
-21 |
% |
|
Operating Profit (Loss) |
|
(46.9 |
) |
|
|
9.1 |
|
|
|
(37.8 |
) |
|
|
(46.0 |
) |
|
|
10.6 |
|
|
|
(35.4 |
) |
|
-7 |
% |
|
Operating Margin |
|
-11.4 |
% |
|
|
2.2 |
% |
|
|
-9.2 |
% |
|
|
-8.8 |
% |
|
|
2.0 |
% |
|
|
-6.8 |
% |
|
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Wizards of the Coast and Digital Gaming: |
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|
External Net Revenues (3) |
$ |
316.3 |
|
|
$ |
— |
|
|
$ |
316.3 |
|
|
$ |
295.2 |
|
|
$ |
— |
|
|
$ |
295.2 |
|
|
7 |
% |
|
Operating Profit |
|
122.8 |
|
|
|
— |
|
|
|
122.8 |
|
|
|
76.8 |
|
|
|
— |
|
|
|
76.8 |
|
|
60 |
% |
|
Operating Margin |
|
38.8 |
% |
|
|
— |
|
|
|
38.8 |
% |
|
|
26.0 |
% |
|
|
— |
|
|
|
26.0 |
% |
|
|
|
|
|
|
|
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|
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|||||||||||||
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Entertainment: |
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||||||||||||||
|
External Net Revenues (4) |
$ |
28.0 |
|
|
$ |
— |
|
|
$ |
28.0 |
|
|
$ |
185.4 |
|
|
$ |
— |
|
|
$ |
185.4 |
|
|
-85 |
% |
|
Operating Profit (Loss) |
|
5.8 |
|
|
|
12.4 |
|
|
|
18.2 |
|
|
|
(8.7 |
) |
|
|
6.2 |
|
|
|
(2.5 |
) |
|
>100% |
|
|
Operating Margin |
|
20.7 |
% |
|
|
44.3 |
% |
|
|
65.0 |
% |
|
|
-4.7 |
% |
|
|
3.3 |
% |
|
|
-1.3 |
% |
|
|
|
|
|
|
|
|
|
|
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|
Corporate and Other: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Operating Profit (Loss) |
$ |
34.5 |
|
|
$ |
10.9 |
|
|
$ |
45.4 |
|
|
$ |
(4.2 |
) |
|
$ |
12.5 |
|
|
$ |
8.3 |
|
|
>100% |
|
|
|
Net Revenues |
|
|
|||||
|
|
Quarter Ended |
|
|
|||||
|
|
March 31, 2024 |
|
April 2, 2023 |
|
% Change |
|||
|
(1) Net Revenues by Brand Portfolio |
||||||||
|
Franchise Brands (a) |
$ |
606.5 |
|
$ |
613.4 |
|
-1 |
% |
|
Partner Brands |
|
87.7 |
|
|
132.7 |
|
-34 |
% |
|
Portfolio Brands (b) |
|
63.1 |
|
|
92.1 |
|
-31 |
% |
|
Non-Hasbro Branded Film & TV (b) |
|
— |
|
|
162.8 |
|
-100 |
% |
|
Total |
$ |
757.3 |
|
$ |
1,001.0 |
|
|
|
|
|
|
|
|
|
|
|||
|
(a) Franchise Brands include: DUNGEONS & DRAGONS, Hasbro Gaming, MAGIC: THE GATHERING, NERF, PEPPA PIG, PLAY-DOH and TRANSFORMERS. |
||||||||
|
(b) Effective in the first quarter of 2024, the Company moved the remaining Non-Hasbro Branded Film & TV brands into Portfolio Brands to align with the Company’s Brand Strategy. For comparability net revenues for quarter ended April 2, 2023, has been restated to reflect the movement, resulting in a change of $0.10. |
||||||||
|
|
|
|
|
|
|
|||
|
|
Net Revenues |
|
|
|||||
|
|
Quarter Ended |
|
|
|||||
|
|
March 31, 2024 |
|
April 2, 2023 |
|
% Change |
|||
|
MAGIC: THE GATHERING |
$ |
237.9 |
|
$ |
229.1 |
|
4 |
% |
|
Hasbro Total Gaming (c) |
|
408.0 |
|
|
386.5 |
|
6 |
% |
|
|
|
|
|
|
|
|||
|
(c) Hasbro Total Gaming includes all gaming revenue, most notably DUNGEONS & DRAGONS, MAGIC: THE GATHERING and Hasbro Gaming. |
||||||||
|
|
|
|
|
|
|
|||
|
|
Net Revenues |
|
|
|||||
|
|
Quarter Ended |
|
|
|||||
|
|
March 31, 2024 |
|
April 2, 2023 |
|
% Change |
|||
|
(2) Consumer Products Segment Net Revenues by Major Geographic Region |
||||||||
|
North America |
$ |
239.1 |
|
$ |
279.1 |
|
-14 |
% |
|
Europe |
|
87.5 |
|
|
131.6 |
|
-34 |
% |
|
Asia Pacific |
|
48.8 |
|
|
63.3 |
|
-23 |
% |
|
Latin America |
|
37.6 |
|
|
46.4 |
|
-19 |
% |
|
Total |
$ |
413.0 |
|
$ |
520.4 |
|
|
|
|
|
|
|
|
|
|
|||
|
|
Net Revenues |
|
|
|||||
|
|
Quarter Ended |
|
|
|||||
|
|
March 31, 2024 |
|
April 2, 2023 |
|
% Change |
|||
|
(3) Wizards of the Coast and Digital Gaming Net Revenues by Category |
||||||||
|
Tabletop Gaming |
$ |
228.2 |
|
$ |
217.9 |
|
5 |
% |
|
Digital and Licensed Gaming |
|
88.1 |
|
|
77.3 |
|
14 |
% |
|
Total |
$ |
316.3 |
|
$ |
295.2 |
|
|
|
|
|
|
|
|
|
|
|||
|
|
Net Revenues |
|
|
|||||
|
|
Quarter Ended |
|
|
|||||
|
|
March 31, 2024 |
|
April 2, 2023 |
|
% Change |
|||
|
(4) Entertainment Segment Net Revenues by Category |
||||||||
|
Film and TV |
$ |
— |
|
$ |
168.4 |
|
-100 |
% |
|
Family Brands |
|
28.0 |
|
|
17.0 |
|
65 |
% |
|
Total |
$ |
28.0 |
|
$ |
185.4 |
|
|
|
|
(5) Amounts within this section may not sum due to rounding |
||||||||
|
HASBRO, INC. |
|||||||
|
SUPPLEMENTAL FINANCIAL DATA |
|||||||
|
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES |
|||||||
|
(Unaudited) |
|||||||
|
(Millions of Dollars) |
|||||||
|
|
|
|
|
||||
|
Reconciliation of EBITDA and Adjusted EBITDA (1) |
|
|
|
||||
|
|
Quarter Ended |
||||||
|
|
March 31, 2024 |
|
April 2, 2023 |
||||
|
Net Earnings (Loss) Attributable to Hasbro, Inc. |
$ |
58.2 |
|
|
$ |
(22.1 |
) |
|
Interest Expense |
|
38.5 |
|
|
|
46.3 |
|
|
Income Tax Expense |
|
21.9 |
|
|
|
0.7 |
|
|
Net Earnings Attributable to Noncontrolling Interests |
|
0.9 |
|
|
|
0.4 |
|
|
Depreciation |
|
21.3 |
|
|
|
24.0 |
|
|
Amortization of Intangibles |
|
17.0 |
|
|
|
23.1 |
|
|
EBITDA |
$ |
157.8 |
|
|
$ |
72.4 |
|
|
Non-GAAP Adjustments and Stock Compensation (2) |
|
15.0 |
|
|
|
26.3 |
|
|
Adjusted EBITDA |
$ |
172.8 |
|
|
$ |
98.7 |
|
|
|
|
|
|
||||
|
(2) Non-GAAP Adjustments and Stock Compensation are comprised of the following: |
|
|
|
||||
|
Stock compensation |
$ |
(5.0 |
) |
|
$ |
15.7 |
|
|
Operational Excellence charges |
|
10.9 |
|
|
|
10.6 |
|
|
Blueprint 2.0 implementation charges |
|
9.1 |
|
|
|
— |
|
|
Total |
$ |
15.0 |
|
|
$ |
26.3 |
|
|
(1) Amounts may not sum due to rounding |
|||||||
|
HASBRO, INC. |
|||||||
|
SUPPLEMENTAL FINANCIAL DATA |
|||||||
|
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES |
|||||||
|
(Unaudited) |
|||||||
|
(Millions of Dollars) |
|||||||
|
Reconciliation of Adjusted Operating Profit (1) |
|||||||
|
|
Quarter Ended |
||||||
|
|
March 31, 2024 |
|
April 2, 2023 |
||||
|
|
|
|
|
||||
|
Operating Profit (Loss) |
$ |
116.2 |
|
|
$ |
17.9 |
|
|
Consumer Products |
|
(46.9 |
) |
|
|
(46.0 |
) |
|
Wizards of the Coast and Digital Gaming |
|
122.8 |
|
|
|
76.8 |
|
|
Entertainment |
|
5.8 |
|
|
|
(8.7 |
) |
|
Corporate and Other |
|
34.5 |
|
|
|
(4.2 |
) |
|
|
|
|
|
||||
|
Non-GAAP Adjustments (2) |
$ |
32.4 |
|
|
$ |
29.3 |
|
|
Consumer Products |
|
9.1 |
|
|
|
10.6 |
|
|
Entertainment |
|
12.4 |
|
|
|
6.2 |
|
|
Corporate and Other |
|
10.9 |
|
|
|
12.5 |
|
|
|
|
|
|
||||
|
Adjusted Operating Profit (Loss) |
$ |
148.6 |
|
|
$ |
47.2 |
|
|
Consumer Products |
|
(37.8 |
) |
|
|
(35.4 |
) |
|
Wizards of the Coast and Digital Gaming |
|
122.8 |
|
|
|
76.8 |
|
|
Entertainment |
|
18.2 |
|
|
|
(2.5 |
) |
|
Corporate and Other |
|
45.4 |
|
|
|
8.3 |
|
|
|
|
|
|
||||
|
(2) Non-GAAP Adjustments include the following: |
|
|
|
||||
|
Acquisition-related costs (i) |
$ |
— |
|
|
$ |
1.9 |
|
|
Acquired intangible amortization (ii) |
|
12.4 |
|
|
|
16.8 |
|
|
Operational Excellence charges (iii) |
|
|
|
||||
|
Transformation office and consultant fees (a) |
|
5.2 |
|
|
|
10.6 |
|
|
Severance and other employee charges (b) |
|
5.7 |
|
|
|
— |
|
|
Blueprint 2.0 implementation charges (iv) |
|
|
|
||||
|
Loss on disposal of business (a) |
|
9.1 |
|
|
|
— |
|
|
Total |
$ |
32.4 |
|
|
$ |
29.3 |
|
|
(i) In association with the Company’s acquisition of eOne, the Company incurred stock compensation expenses of $1.9 ($1.7 after-tax) in the quarter ended April 2, 2023. The expense is included within Selling, Distribution and Administration. |
|
(ii) Represents intangible amortization costs related to the intangible assets acquired in the eOne acquisition. The Company has allocated certain of these intangible amortization costs between the Consumer Products and Entertainment segments, to match the revenue generated from such intangible assets. While amortization of acquired intangibles is being excluded from the related GAAP financial measure, the revenue of the acquired company is reflected within the Company’s operating results to which these assets contribute. |
|
(iii) These costs relate to the comprehensive review of the Company’s operations and development of a transformation plan to support the organization in identifying, realizing and capturing savings to create efficiencies and improve business processes and operations. These charges consist of: |
|
(a) Program related consultant and transformation office fees of $5.2 ($3.9 after tax) for the quarter ended March 31, 2024 and $10.6 ($8.1 after-tax) for the quarter ended April 2, 2023, respectively, are included within Selling, Distribution and Administration within the Corporate and Other segment. |
|
(b) Severance and other employee charges of $5.7 ($4.4 after-tax) for the quarter ended March 31, 2024, associated with cost-savings initiatives across the Company. |
|
(iv) The Company announced the results of its strategic review, Blueprint 2.0, a consumer-centric approach focusing on fewer, bigger brands, expanded licensing, branded entertainment, and high-margin growth in games, digital and direct. As the Company implements the new strategy, charges recognized consist of: |
|
(a) Loss on disposal of a business of $9.1 ($9.1 after-tax) for the quarter ended March 31, 2024 related to the sale of the eOne Film and TV business not directly supporting the Company’s Entertainment Strategy within the Entertainment segment, which was executed on December 27, 2023. The year to date charge is included within Loss on Disposal of Business. |
|
(1) Amounts may not sum due to rounding |
|
HASBRO, INC. |
|||||||||||||
|
SUPPLEMENTAL FINANCIAL DATA |
|||||||||||||
|
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES |
|||||||||||||
|
(Unaudited) |
|||||||||||||
|
(Millions of Dollars and Shares, Except Per Share Data) |
|||||||||||||
|
|
|
|
|
|
|
|
|
||||||
|
Reconciliation of Net Earnings and Earnings per Share (1) |
|||||||||||||
|
|
Quarter Ended |
||||||||||||
|
(all adjustments reported after-tax) |
March 31, 2024 |
|
Diluted Per |
|
April 2, 2023 |
|
Diluted Per |
||||||
|
Net Earnings (Loss) Attributable to Hasbro, Inc. |
$ |
58.2 |
|
$ |
0.42 |
|
$ |
(22.1 |
) |
|
$ |
(0.16 |
) |
|
Acquisition-related costs |
|
— |
|
|
— |
|
|
1.7 |
|
|
|
0.01 |
|
|
Acquired intangible amortization |
|
9.3 |
|
|
0.07 |
|
|
13.3 |
|
|
|
0.10 |
|
|
Operational Excellence charges |
|
8.3 |
|
|
0.06 |
|
|
8.1 |
|
|
|
0.06 |
|
|
Blueprint 2.0 implementation charges |
|
9.1 |
|
|
0.07 |
|
|
— |
|
|
|
— |
|
|
Net Earnings Attributable to Hasbro, Inc., as Adjusted |
$ |
84.9 |
|
$ |
0.61 |
|
$ |
1.0 |
|
|
$ |
0.01 |
|
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