$ Millions, except earnings per share | Q2 2021 | Q2 2020 | % Change | ||
Net Revenues1
| $ | 1,322.2 | $ | 860.3 | 54% |
Operating Profit | $ | 76.6 | $ | 2.2 | >100% |
Adjusted Operating Profit2
| $ | 211.6 | $ | 46.6 | >100% |
Net Loss | $ | (22.9) | $ | (33.9) | 32% |
Net Loss per Diluted Share | $ | (0.17) | $ | (0.25) | 32% |
Adjusted Net Earnings2
| $ | 145.4 | $ | 2.7 | >100% |
Adjusted Net Earnings per Diluted Share2
| $ | 1.05 | $ | 0.02 | >100% |
EBITDA2
| $ | 159.5 | $ | 73.5 | >100% |
Adjusted EBITDA2
| $ | 289.6 | $ | 110.8 | >100% |
Major Segments ($ Millions) | Net Revenues | Operating Profit (Loss) |
Adjusted
Operating Profit (Loss) 1
| ||||||||||
Q2 2021 | Q2 2020 | % Change | Q2 2021 | Q2 2020 | Q2 2021 | Q2 2020 | |||||||
Consumer Products
| $ | 689.2 | $ | 519.5 | 33% | $ | 17.8 | $ | (45.3) | $ | 17.8 | $ | (45.3) |
Wizards of the Coast and Digital Gaming | $ | 406.3 | $ | 186.7 | >100% | $ | 192.9 | $ | 74.1 | $ | 192.9 | $ | 74.1 |
Entertainment
| $ | 226.7 | $ | 154.1 | 47% | $ | (113.7) | $ | (13.5) | $ | 9.9 | $ | 9.1 |
Brand Portfolio | Net Revenues ($ Millions) | ||||
Q2 2021 | Q2 2020 | % Change | |||
Franchise Brands | $ | 649.9 | $ | 376.9 | 72% |
Partner Brands | $ | 212.0 | $ | 138.3 | 53% |
Hasbro Gaming1
| $ | 147.1 | $ | 137.0 | 7% |
Emerging Brands | $ | 117.0 | $ | 75.9 | 54% |
TV/Film/Entertainment | $ | 196.2 | $ | 132.2 | 48% |
HASBRO, INC. | ||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||
(Unaudited) | ||||
(Millions of Dollars) | ||||
June 27, 2021 | June 28, 2020 | |||
ASSETS | ||||
Cash and Cash Equivalents | $ | 1,228.2 | $ | 1,038.0 |
Accounts Receivable, Net | 865.9 | 911.3 | ||
Inventories | 499.6 | 564.2 | ||
Prepaid Expenses and Other Current Assets | 543.2 | 672.2 | ||
Assets Held for Sale | 479.5 | - | ||
Total Current Assets | 3,616.4 | 3,185.7 | ||
Property, Plant and Equipment, Net
| 466.2 | 482.2 | ||
Goodwill | 3,420.8 | 3,666.0 | ||
Other Intangible Assets, Net | 1,248.3 | 1,559.1 | ||
Other Assets | 1,350.5 | 1,329.1 | ||
Total Assets | $ | 10,102.2 | $ | 10,222.1 |
LIABILITIES, NONCONTROLLING INTERESTS AND SHAREHOLDERS' EQUITY | ||||
Short-Term Borrowings | $ | 0.8 | $ | 6.4 |
Current Portion of Long-Term Debt | 189.6 | 378.6 | ||
Accounts Payable and Accrued Liabilities
| 1,778.9 | 1,596.6 | ||
Liabilities Held for Sale | 76.3 | - | ||
Total Current Liabilities | 2,045.6 | 1,981.6 | ||
Long-Term Debt | 4,388.7 | 4,802.5 | ||
Other Liabilities
| 753.0 | 771.7 | ||
Total Liabilities | 7,187.3 | 7,555.8 | ||
Redeemable Noncontrolling Interests | 24.5 | 24.1 | ||
Total Shareholders' Equity | 2,890.4 | 2,642.2 | ||
Total Liabilities, Noncontrolling Interests and Shareholders' Equity | $ | 10,102.2 | $ | 10,222.1 |
HASBRO, INC. | ||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
(Unaudited) | ||||||||||||||||
(Millions of Dollars and Shares, Except Per Share Data) | ||||||||||||||||
Quarter Ended | Six Months Ended | |||||||||||||||
June 27, 2021 | % Net Revenues | June 28, 2020 | % Net Revenues | June 27, 2021 | % Net Revenues | June 28, 2020 | % Net Revenues | |||||||||
Net Revenues | $ | 1,322.2 | 100.0 | % | $ | 860.3 | 100.0 | % | $ | 2,437.0 | 100.0 | % | $ | 1,965.9 | 100.0 | % |
Costs and Expenses: | ||||||||||||||||
Cost of Sales | 345.0 | 26.1 | % | 253.2 | 29.4 | % | 634.9 | 26.1 | % | 515.9 | 26.2 | % | ||||
Program Cost Amortization | 110.7 | 8.4 | % | 50.6 | 5.9 | % | 208.2 | 8.5 | % | 182.8 | 9.3 | % | ||||
Royalties | 111.5 | 8.4 | % | 97.4 | 11.3 | % | 220.4 | 9.0 | % | 210.2 | 10.7 | % | ||||
Product Development | 87.2 | 6.6 | % | 58.4 | 6.8 | % | 149.0 | 6.1 | % | 112.2 | 5.7 | % | ||||
Advertising | 105.4 | 8.0 | % | 72.3 | 8.4 | % | 193.3 | 7.9 | % | 174.0 | 8.9 | % | ||||
Amortization of Intangibles | 29.7 | 2.2 | % | 34.7 | 4.0 | % | 62.6 | 2.6 | % | 71.5 | 3.6 | % | ||||
Selling, Distribution and Administration | 354.3 | 26.8 | % | 281.2 | 32.7 | % | 642.9 | 26.4 | % | 560.3 | 28.5 | % | ||||
Loss on Assets Held for Sale | 101.8 | 7.7 | % | - | 0.0 | % | 101.8 | 4.2 | % | - | 0.0 | % | ||||
Acquisition and Related Costs | - | 0.0 | % | 10.3 | 1.2 | % | - | 0.0 | % | 160.1 | 8.1 | % | ||||
Operating Profit (Loss) | 76.6 | 5.8 | % | 2.2 | 0.3 | % | 223.9 | 9.2 | % | (21.1) | -1.1 | % | ||||
Interest Expense | 46.1 | 3.5 | % | 49.6 | 5.8 | % | 94.0 | 3.9 | % | 104.3 | 5.3 | % | ||||
Other Income, Net | (10.6) | -0.8 | % | (3.7) | -0.4 | % | (40.7) | -1.7 | % | (9.7) | -0.5 | % | ||||
Earnings (Loss) before Income Taxes | 41.1 | 3.1 | % | (43.7) | -5.1 | % | 170.6 | 7.0 | % | (115.7) | -5.9 | % | ||||
Income Tax Expense (Benefit) | 63.0 | 4.8 | % | (10.8) | -1.3 | % | 75.0 | 3.1 | % | (14.9) | -0.8 | % | ||||
Net (Loss) Earnings | (21.9) | -1.7 | % | (32.9) | -3.8 | % | 95.6 | 3.9 | % | (100.8) | -5.1 | % | ||||
Net Earnings Attributable to Noncontrolling Interests | 1.0 | 0.1 | % | 1.0 | 0.1 | % | 2.3 | 0.1 | % | 2.8 | 0.1 | % | ||||
Net (Loss) Earnings Attributable to Hasbro, Inc. | $ | (22.9) | -1.7 | % | $ | (33.9) | -3.9 | % | $ | 93.3 | 3.8 | % | $ | (103.6) | -5.3 | % |
Per Common Share | ||||||||||||||||
Net (Loss) Earnings | ||||||||||||||||
Basic | $ | (0.17) | $ | (0.25) | $ | 0.68 | $ | (0.75) | ||||||||
Diluted | $ | (0.17) | $ | (0.25) | $ | 0.68 | $ | (0.75) | ||||||||
Cash Dividends Declared | $ | 0.68 | $ | 0.68 | $ | 0.68 | $ | 1.36 | ||||||||
Weighted Average Number of Shares | ||||||||||||||||
Basic | 137.8 | 137.2 | 137.8 | 137.2 | ||||||||||||
Diluted | 137.8 | 137.2 | 138.2 | 137.2 |
HASBRO, INC. | ||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||
(Unaudited) | ||||
(Millions of Dollars) | ||||
Six Months Ended | ||||
June 27, 2021 | June 28, 2020 | |||
Cash Flows from Operating Activities: | ||||
Net Earnings (Loss) | $ | 95.6 | $ | (100.8) |
Other Non-Cash Adjustments | 419.3 | 366.9 | ||
Changes in Operating Assets and Liabilities | (39.6) | (7.8) | ||
Net Cash Provided by Operating Activities | 577.1 | 258.3 | ||
Cash Flows from Investing Activities: | ||||
Additions to Property, Plant and Equipment | (63.1) | (64.0) | ||
Acquisition, Net of Cash Acquired | - | (4,403.9) | ||
Other | (3.2) | 13.1 | ||
Net Cash Utilized by Investing Activities | (66.3) | (4,454.8) | ||
Cash Flows from Financing Activities: | ||||
Proceeds from Long-Term Debt | 114.7 | 1,023.5 | ||
Repayments of Long-Term Debt | (635.0) | (98.2) | ||
Net Repayments of Short-Term Borrowings | (6.3) | (4.5) | ||
Stock-Based Compensation Transactions | 9.4 | 1.8 | ||
Dividends Paid | (187.5) | (186.2) | ||
Payments Related to Tax Withholding for Share-Based Compensation | (9.5) | (5.7) | ||
Redemption of Equity Instruments | - | (47.4) | ||
Other | (4.2) | (4.8) | ||
Net Cash (Utilized) Provided by Financing Activities | (718.4) | 678.5 | ||
Effect of Exchange Rate Changes on Cash | 4.3 | (24.4) | ||
Net Decrease in Cash Balances Classified as Held for Sale | (18.2) | - | ||
Net Decrease in Cash and Cash Equivalents | (221.5) | (3,542.4) | ||
Cash and Cash Equivalents at Beginning of Year | 1,449.7 | 4,580.4 | ||
Cash and Cash Equivalents at End of Quarter | $ | 1,228.2 | $ | 1,038.0 |
HASBRO, INC. | |||||||||||||
SUPPLEMENTAL FINANCIAL DATA | |||||||||||||
SEGMENT RESULTS - AS REPORTED AND AS ADJUSTED | |||||||||||||
(Unaudited) | |||||||||||||
(Millions of Dollars) | |||||||||||||
Effective in the first quarter of 2021, the Company reorganized its reportable segments to Consumer Products, Wizards of the Coast and Digital Gaming, Entertainment, and Corporate and Other. For comparability, segment results for the quarter and six months ended June 28, 2020 are presented to align with the new reportable segments. | |||||||||||||
Operating Results | |||||||||||||
Quarter Ended June 27, 2021 | Quarter Ended June 28, 2020 | ||||||||||||
As Reported | Non-GAAP Adjustments | Adjusted | As Reported | Non-GAAP Adjustments | Adjusted | % Change | |||||||
Total Company Results | |||||||||||||
External Net Revenues (1)
| $ | 1,322.2 | $ | - | $ | 1,322.2 | $ | 860.3 | $ | - | $ | 860.3 | 54% |
Operating Profit | 76.6 | 135.0 | 211.6 | 2.2 | 44.4 | 46.6 | >100% | ||||||
Operating Margin | 5.8 | % | 10.2 | % | 16.0 | % | 0.3 | % | 5.2 | % | 5.4 | % | |
EBITDA | 159.5 | 130.1 | 289.6 | 73.5 | 37.3 | 110.8 | >100% | ||||||
Segment Results | |||||||||||||
Consumer Products: | |||||||||||||
External Net Revenues (2)
| $ | 689.2 | $ | - | $ | 689.2 | $ | 519.5 | $ | - | $ | 519.5 | 33% |
Operating Profit (Loss) | 17.8 | - | 17.8 | (45.3) | - | (45.3) | >100% | ||||||
Operating Margin | 2.6 | % | - | 2.6 | % | -8.7 | % | - | -8.7 | % | |||
EBITDA | 46.6 | 8.1 | 54.7 | (11.9) | 9.1 | (2.8) | >100% | ||||||
Wizards of the Coast and Digital Gaming: | |||||||||||||
External Net Revenues | 406.3 | - | 406.3 | 186.7 | - | 186.7 | >100% | ||||||
Operating Profit | 192.9 | - | 192.9 | 74.1 | - | 74.1 | >100% | ||||||
Operating Margin | 47.5 | % | - | 47.5 | % | 39.7 | % | - | 39.7 | % | |||
EBITDA | 206.9 | 3.1 | 210.0 | 76.6 | 2.3 | 78.9 | >100% | ||||||
Entertainment: | ||||||||||||
External Net Revenues (3)
| 226.7 | - | 226.7 | 154.1 | - | 154.1 | 47% | |||||
Operating (Loss) Profit | (113.7) | 123.6 | 9.9 | (13.5) | 22.6 | 9.1 | 9% | |||||
Operating Margin | -50.2 | % | 54.5 | % | 4.4 | % | -8.8 | % | 14.7 | % | 5.9 | % |
EBITDA | (87.2) | 106.7 | 19.5 | 9.4 | 1.4 | 10.8 | 81% | |||||
Corporate and Other: | ||||||||||||
Operating (Loss) Profit | (20.4) | 11.4 | (9.0) | (13.1) | 21.8 | 8.7 | >-100% | |||||
EBITDA | (6.8) | 12.2 | 5.4 | (0.6) | 24.5 | 23.9 | >-100% |
Quarter Ended | ||||||
June 27, 2021 | June 28, 2020 | % Change | ||||
(1) Net Revenues by Brand Portfolio
| ||||||
Franchise Brands | $ | 649.9 | $ | 376.9 | 72 | % |
Partner Brands | 212.0 | 138.3 | 53 | % | ||
Hasbro Gaming (i)
| 147.1 | 137.0 | 7 | % | ||
Emerging Brands | 117.0 | 75.9 | 54 | % | ||
TV/Film/Entertainment | 196.2 | 132.2 | 48 | % | ||
Total | $ | 1,322.2 | $ | 860.3 | ||
(i) Hasbro's total gaming category, including all gaming revenue, most notably MAGIC: THE GATHERING and MONOPOLY, which are reported in the Franchise Brands portfolio, totaled $519.4 for the quarter ended June 27, 2021, up 63% from revenues of $319.0 for the quarter ended June 28, 2020.
| ||||||
Quarter Ended | ||||||
June 27, 2021 | June 28, 2020 | % Change | ||||
(2) Consumer Products Segment Net Revenues by Major Geographic Region
| ||||||
North America | $ | 391.4 | $ | 283.0 | 38 | % |
Europe | 176.5 | 141.9 | 24 | % | ||
Asia Pacific | 68.4 | 60.7 | 13 | % | ||
Latin America | 52.9 | 33.9 | 56 | % | ||
Total | $ | 689.2 | $ | 519.5 | ||
Quarter Ended | ||||||
June 27, 2021 | June 28, 2020 | % Change | ||||
(3) Entertainment Segment Net Revenues by Category
| ||||||
Film and TV | $ | 164.3 | $ | 108.9 | 51 | % |
Family Brands | 26.1 | 18.8 | 39 | % | ||
Music and Other | 36.3 | 26.4 | 38 | % | ||
Total | $ | 226.7 | $ | 154.1 |
Operating Results | |||||||||||||
Six Months Ended June 27, 2021 | Six Months Ended June 28, 2020 | ||||||||||||
As Reported | Non-GAAP Adjustments | Adjusted | As Reported | Non-GAAP Adjustments | Adjusted | % Change | |||||||
Total Company Results | |||||||||||||
External Net Revenues (4)
| $ | 2,437.0 | $ | - | $ | 2,437.0 | $ | 1,965.9 | $ | - | $ | 1,965.9 | 24% |
Operating Profit (Loss) | 223.9 | 161.8 | 385.7 | (21.1) | 219.2 | 198.1 | 95% | ||||||
Operating Margin | 9.2 | % | 6.6 | % | 15.8 | % | -1.1 | % | 11.2 | % | 10.1 | % | |
EBITDA | 394.8 | 146.8 | 541.6 | 116.8 | 197.9 | 314.7 | 72% | ||||||
Segment Results | |||||||||||||
Consumer Products: | |||||||||||||
External Net Revenues (5)
| $ | 1,343.1 | $ | - | $ | 1,343.1 | $ | 1,092.0 | $ | - | $ | 1,092.0 | 23% |
Operating Profit (Loss) | 50.1 | - | 50.1 | (55.0) | - | (55.0) | >100% | ||||||
Operating Margin | 3.7 | % | - | 3.7 | % | -5.0 | % | - | -5.0 | % | |||
EBITDA | 106.0 | 14.6 | 120.6 | (3.8) | 16.7 | 12.9 | >100% | ||||||
Wizards of the Coast and Digital Gaming: | |||||||||||||
External Net Revenues | 648.5 | - | 648.5 | 397.3 | - | 397.3 | 63% | ||||||
Operating Profit | 302.9 | - | 302.9 | 169.9 | - | 169.9 | 78% | ||||||
Operating Margin | 46.7 | % | - | 46.7 | % | 42.8 | % | - | 42.8 | % | |||
EBITDA | 319.2 | 5.7 | 324.9 | 173.7 | 4.2 | 177.9 | 83% | ||||||
Entertainment: | |||||||||||||
External Net Revenues (6)
| 445.4 | - | 445.4 | 476.6 | - | 476.6 | -7% | ||||||
Operating (Loss) Profit | (96.7) | 148.5 | 51.8 | (77.8) | 146.2 | 68.4 | -24% | ||||||
Operating Margin | -21.7 | % | 33.3 | % | 11.6 | % | -16.3 | % | 30.7 | % | 14.4 | % | |
EBITDA | (19.0) | 110.8 | 91.8 | (24.9) | 100.7 | 75.8 | 21% | ||||||
Corporate and Other: | |||||||||||||
Operating (Loss) Profit | (32.4) | 13.3 | (19.1) | (58.2) | 73.0 | 14.8 | >-100% | ||||||
EBITDA | (11.4) | 15.7 | 4.3 | (28.2) | 76.3 | 48.1 | >-100% |
Six Months Ended | ||||||
June 27, 2021 | June 28, 2020 | % Change | ||||
(4) Net Revenues by Brand Portfolio
| ||||||
Franchise Brands | $ | 1,141.4 | $ | 773.4 | 48 | % |
Partner Brands | 400.0 | 320.6 | 25 | % | ||
Hasbro Gaming (i)
| 283.4 | 277.1 | 2 | % | ||
Emerging Brands | 221.7 | 170.1 | 30 | % | ||
TV/Film/Entertainment | 390.5 | 424.7 | -8 | % | ||
Total | $ | 2,437.0 | $ | 1,965.9 | ||
(i) Hasbro's total gaming category, including all gaming revenue, most notably MAGIC: THE GATHERING and MONOPOLY, totaled $884.7 for the six months ended June 27, 2021, up 34% from revenues of $659.5 for the six months ended June 28, 2020.
| ||||||
Six Months Ended | ||||||
June 27, 2021 | June 28, 2020 | % Change | ||||
(5) Consumer Products Segment Net Revenues by Major Geographic Region
| ||||||
North America | $ | 754.1 | $ | 604.8 | 25 | % |
Europe | 365.0 | 298.6 | 22 | % | ||
Asia Pacific | 133.2 | 118.9 | 12 | % | ||
Latin America | 90.8 | 69.7 | 30 | % | ||
Total | $ | 1,343.1 | $ | 1,092.0 | ||
Six Months Ended | ||||||
June 27, 2021 | June 28, 2020 | % Change | ||||
(6) Entertainment Segment Net Revenues by Category
| ||||||
Film and TV | $ | 330.7 | $ | 372.9 | -11 | % |
Family Brands | 44.9 | 44.7 | 0 | % | ||
Music and Other | 69.8 | 59.0 | 18 | % | ||
Total | $ | 445.4 | $ | 476.6 |
HASBRO, INC. | ||||||||
SUPPLEMENTAL FINANCIAL DATA | ||||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES | ||||||||
(Unaudited) | ||||||||
(Millions of Dollars) | ||||||||
Reconciliation of Adjusted Operating Profit | ||||||||
Quarter Ended | Six Months Ended | |||||||
June 27, 2021 | June 28, 2020 | June 27, 2021 | June 28, 2020 | |||||
Operating Profit (Loss) | $ | 76.6 | $ | 2.2 | $ | 223.9 | $ | (21.1) |
Consumer Products | 17.8 | (45.3) | 50.1 | (55.0) | ||||
Wizards of the Coast and Digital Gaming | 192.9 | 74.1 | 302.9 | 169.9 | ||||
Entertainment | (113.7) | (13.5) | (96.7) | (77.8) | ||||
Corporate and Other | (20.4) | (13.1) | (32.4) | (58.2) | ||||
Non-GAAP Adjustments (1)
| $ | 135.0 | $ | 44.4 | $ | 161.8 | $ | 219.2 |
Entertainment | 123.6 | 22.6 | 148.5 | 146.2 | ||||
Corporate and Other | 11.4 | 21.8 | 13.3 | 73.0 | ||||
Adjusted Operating Profit (Loss) | $ | 211.6 | $ | 46.6 | $ | 385.7 | $ | 198.1 |
Consumer Products | 17.8 | (45.3) | 50.1 | (55.0) | ||||
Wizards of the Coast and Digital Gaming | 192.9 | 74.1 | 302.9 | 169.9 | ||||
Entertainment | 9.9 | 9.1 | 51.8 | 68.4 | ||||
Corporate and Other | (9.0) | 8.7 | (19.1) | 14.8 | ||||
(1) The Company's non-GAAP adjustments include the following:
| ||||||||
Acquisition-related costs (i)
| $ | 1.9 | $ | 10.3 | $ | 3.8 | $ | 160.1 |
Acquired intangible amortization (ii)
| 21.8 | 22.6 | 46.7 | 47.6 | ||||
Loss on assets held for sale and related costs (iii)
| 111.3 | - | 111.3 | - | ||||
Severance (iv)
| - | 11.5 | - | 11.5 | ||||
Total | $ | 135.0 | $ | 44.4 | $ | 161.8 | $ | 219.2 |
(i) In association with the Company's acquisition of eOne, the Company incurred related expenses of $1.9 ($1.6 after-tax) and $3.8 ($3.3 after-tax) in the quarter and six months ended June 27, 2021, respectively, and $10.3 ($8.5 after-tax) and $160.1 ($136.0 after-tax) in the quarter and six months ended June 28, 2020, respectively, comprised of the following:
| ||||||||
(a) In the quarter and six months ended June 27, 2021, the Company incurred stock compensation expense of $1.9 and $3.8 respectively, associated with acquisition-related grants. In 2021, this expense is included within Selling, Distribution and Administration. | ||||||||
(b) In the quarter and six months ended June 28, 2020, the Company incurred expenses of $10.3 and $160.1, respectively, comprised of 1) acquisition and integration costs of $4.0 and $99.7, respectively, including expense associated with the acceleration of eOne stock-based compensation and advisor fees settled at the closing of the acquisition, as well as integration costs; and 2) restructuring and related costs of $6.3 and $60.4, respectively, including severance and retention costs, as well as impairment charges in the first quarter of 2020 for certain definite-lived intangible and production assets. In 2020, these expenses were included within Acquisition and Related Costs. | ||||||||
(ii) The Company incurred incremental intangible amortization costs related to the intangible assets acquired in the eOne acquisition.
| ||||||||
(iii) On April 25, 2021, the Company entered into a definitive agreement to sell the eOne music business for an aggregate sales price of $385.0, subject to certain closing adjustments related to working capital and net debt. As such, the assets and liabilities of eOne music were revalued in the second quarter of 2021 and disclosed separately on the balance sheet. The charge of $111.3 is comprised of a goodwill impairment loss of $101.8 (included within Loss on Assets Held for Sale) and transaction costs of $9.5 (included within Selling, Distribution and Administration). The after-tax combined charge is $109.1.
| ||||||||
(iv) In the quarter ended June 28, 2020, the Company incurred $11.5 of severance charges, associated with cost-savings initiatives within the Company's commercial and Film and TV businesses.
|
HASBRO, INC. | ||||||||
SUPPLEMENTAL FINANCIAL DATA | ||||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES | ||||||||
(Unaudited) | ||||||||
(Millions of Dollars) | ||||||||
Reconciliation of EBITDA and Adjusted EBITDA | ||||||||
Quarter Ended | Six Months Ended | |||||||
June 27, 2021 | June 28, 2020 | June 27, 2021 | June 28, 2020 | |||||
Net (Loss) Earnings Attributable to Hasbro, Inc. | $ | (22.9) | $ | (33.9) | $ | 93.3 | $ | (103.6) |
Interest Expense | 46.1 | 49.6 | 94.0 | 104.3 | ||||
Income Tax Expense (Benefit) | 63.0 | (10.8) | 75.0 | (14.9) | ||||
Net Earnings Attributable to Noncontrolling Interests | 1.0 | 1.0 | 2.3 | 2.8 | ||||
Depreciation | 42.6 | 32.9 | 67.6 | 56.7 | ||||
Amortization of Intangibles | 29.7 | 34.7 | 62.6 | 71.5 | ||||
EBITDA | 159.5 | 73.5 | 394.8 | 116.8 | ||||
Non-GAAP Adjustments and Stock Compensation (1)
| 130.1 | 37.3 | 146.8 | 197.9 | ||||
Adjusted EBITDA | $ | 289.6 | $ | 110.8 | $ | 541.6 | $ | 314.7 |
(1) The Company's non-GAAP adjustments and stock compensation are comprised of the following:
| ||||||||
Stock compensation | $ | 18.8 | $ | 15.5 | $ | 35.5 | $ | 26.3 |
Acquisition-related costs | - | 10.3 | - | 160.1 | ||||
Loss on assets held for sale and related costs | 111.3 | - | 111.3 | - | ||||
Severance | - | 11.5 | - | 11.5 | ||||
Total | $ | 130.1 | $ | 37.3 | $ | 146.8 | $ | 197.9 |
Adjusted EBITDA by Segment: | ||||||||
Consumer Products | $ | 54.7 | $ | (2.8) | $ | 120.6 | $ | 12.9 |
Wizards of the Coast and Digital Gaming | 210.0 | 78.9 | 324.9 | 177.9 | ||||
Entertainment | 19.5 | 10.8 | 91.8 | 75.8 | ||||
Corporate and Other | 5.4 | 23.9 | 4.3 | 48.1 | ||||
Total Adjusted EBITDA | $ | 289.6 | $ | 110.8 | $ | 541.6 | $ | 314.7 |
Consumer Products: | ||||||||
Operating Profit (Loss) | $ | 17.8 | $ | (45.3) | $ | 50.1 | $ | (55.0) |
Other Income (Expense) | 1.5 | 1.2 | 7.7 | (4.5) | ||||
Depreciation | 19.5 | 20.8 | 32.6 | 32.9 | ||||
Amortization of Intangibles | 7.8 | 11.4 | 15.6 | 22.8 | ||||
EBITDA | 46.6 | (11.9) | 106.0 | (3.8) | ||||
Non-GAAP Adjustments and Stock Compensation | 8.1 | 9.1 | 14.6 | 16.7 | ||||
Adjusted EBITDA | $ | 54.7 | $ | (2.8) | $ | 120.6 | $ | 12.9 |
Wizards of the Coast and Digital Gaming: | ||||||||
Operating Profit | $ | 192.9 | $ | 74.1 | $ | 302.9 | $ | 169.9 |
Other Income (Expense) | (0.6) | 0.3 | (0.9) | (0.7) | ||||
Depreciation | 14.6 | 2.2 | 17.2 | 4.5 | ||||
EBITDA | 206.9 | 76.6 | 319.2 | 173.7 | ||||
Non-GAAP Adjustments and Stock Compensation | 3.1 | 2.3 | 5.7 | 4.2 | ||||
Adjusted EBITDA | $ | 210.0 | $ | 78.9 | $ | 324.9 | $ | 177.9 |
Entertainment: | ||||||||
Operating Loss | $ | (113.7) | $ | (13.5) | $ | (96.7) | $ | (77.8) |
Other Income (Expense) | 2.3 | (2.6) | 25.6 | 0.4 | ||||
Depreciation | 2.2 | 2.4 | 5.0 | 4.1 | ||||
Amortization of Intangibles | 22.0 | 23.1 | 47.1 | 48.4 | ||||
EBITDA | (87.2) | 9.4 | (19.0) | (24.9) | ||||
Non-GAAP Adjustments and Stock Compensation | 106.7 | 1.4 | 110.8 | 100.7 | ||||
Adjusted EBITDA | $ | 19.5 | $ | 10.8 | $ | 91.8 | $ | 75.8 |
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 | ||||||||
Quarter Ended | ||||||||
(all adjustments reported after-tax) | June 27, 2021 | Diluted Per Share Amount | June 28, 2020 | Diluted Per Share Amount | ||||
Net Loss Attributable to Hasbro, Inc. | $ | (22.9) | $ | (0.17) | $ | (33.9) | $ | (0.25) |
Acquisition-related costs | 1.6 | 0.01 | 8.5 | 0.06 | ||||
Acquired intangible amortization | 18.2 | 0.13 | 17.9 | 0.13 | ||||
Loss on assets held for sale and related costs | 109.1 | 0.79 | - | - | ||||
Severance | - | - | 10.2 | 0.07 | ||||
UK Tax Reform (1)
| 39.4 | 0.29 | - | - | ||||
Net Earnings Attributable to Hasbro, Inc., as Adjusted | $ | 145.4 | $ | 1.05 | $ | 2.7 | $ | 0.02 |
Six Months Ended | ||||||||
(all adjustments reported after-tax) | June 27, 2021 | Diluted Per Share Amount | June 28, 2020 |
Diluted Per Share Amount
| ||||
Net Earnings (Loss) Attributable to Hasbro, Inc. | $ | 93.3 | $ | 0.68 | $ | (103.6) | $ | (0.75) |
Acquisition-related costs | 3.3 | 0.02 | 136.0 | 0.99 | ||||
Acquired intangible amortization | 38.7 | 0.28 | 37.8 | 0.28 | ||||
Loss on assets held for sale and related costs | 109.1 | 0.79 | - | - | ||||
Severance | - | - | 10.2 | 0.07 | ||||
UK Tax Reform (1)
| 39.4 | 0.29 | - | - | ||||
Net Earnings Attributable to Hasbro, Inc., as Adjusted | $ | 283.8 | $ | 2.05 | $ | 80.4 | $ | 0.59 |
(1) In the second quarter of 2021, the Company recorded income tax expense of $39.4 as a result of the revaluation of the Company's UK deferred taxes in accordance with Finance Act 2021 enacted by the United Kingdom on June 10, 2021. Effective April 1, 2023, the new law increases the corporate income tax rate to 25% from 19%.
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Hasbro Inc. published this content on 26 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 July 2021 10:57:04 UTC.