By PBN Staff
Hasbro Inc. says its global net revenue for the third quarter was $1.039 billion, up 5 percent from the $988.1 million it earned in the third quarter of 2005. It said the results included a $9.6 million favorable impact from foreign exchange.
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The company posted net income of $99.6 million, or 58 cents per diluted share. That included stock-based compensation expense of $3.9 million or 2 cents per diluted share, net of tax, from the required implementation of new accounting standards.
Net earnings posted for the third quarter of 2005, not including a stock-based compensation expense, were $92.1 million or 47 cents per diluted share.
Alfred J. Verrecchia, Hasbro’s president and CEO, said in a news release that revenue excluding “Star Wars” merchandise was up 13 percent for the quarter, driven by other popular brands such as Littlest Pet Shop, Playskool, Nerf, Play-Doh, Transformers and Clue.
“With the overall breadth and depth of our product portfolio,” he said, “we have been able to grow our business for the quarter and year-to-date, in spite of the revenue decline of $58 million for the quarter and $193 million year-to-date in ‘Star Wars.’ ”
Other highlights of Hasbro’s quarterly report:
The company’s global games business has risen 7 percent, driven by the success of Monopoly Here and Now.
The company repurchased about 6.6 million shares of common stock during the third quarter, at a total cost of about $131 million. (Since June 2005, the company has repurchased 23.5 million shares at a total cost of $465.3 million.)
North American segment revenues, including all toys and games in the United States, Canada and Mexico, were $745.5 million for the quarter, up from $712.3 million a year ago. The segment posted an operating profit for the quarter of $111.6 million, up from the year-ago period’s $85.3 million, as adjusted to include the impact of stock-based compensation.
International revenue for the quarter was $280.4 million, up from the year-ago’s $264.6 million. The company credited $9.3 million from foreign exchange, plus high volume in Littlest Pet Shop, Playskool, Transformers and Monopoly.
The segment posted an operating profit of $43.2 million, up from the year-ago period’s $32.9 million, as adjusted to include the impact of stock-based compensation expense. Most of the improvement was credited to decreases in royalty and amortization expense.
The company reported overall third-quarter earnings before interest, taxes, depreciation and amortization (EBITDA) of $192.6 million, compared with $187.9 million in the third quarter of 2005.
