Hasbro 1Q results

[Krug]

http://biz.yahoo.com/bw/040419/195475_1.html

 

[Gizzard]

Interesting; Wizards seems to have done well:

Games segment net revenues were up 14%, driven by a strong performance from Wizards of the Coast, including the U.S. launch of the DUEL MASTERS trading card game;

I can't make heads nor tails of this though:

Core brand drivers up a strong 24% worldwide.

Huh? As I look at the bottom line numbers I can't imagine what they are trying to say here; it doesn't seem to have shown up in the "Operating Profit" in any case!

As far as I can tell from a quick glance, Hasbro has managed to pay down the "Interest Expense" which ate most of last years Q1 profits, so even though "Operating Profit" is down $1.3M this year they actually made more money in the end. Ie, business is slightly down, but some debt restructuring made them more profitable?

Can someone with an accounting background comment?

 

[Numion]

Somehow I dislike threads where there is only a link .. if you bother to post the link, why not bother to quote the relevant parts too, or give your own opinion?

PAWTUCKET, R.I.--(BUSINESS WIRE)--April 19, 2004-- -- Net revenues up 2.7%, to $474.2 million compared to $461.8
million a year ago;

Net earnings of $6.5 million or $0.03 per diluted share, compared to net earnings of $1.2 million, or $0.01 per diluted share in 2003;
Games segment net revenues were up 14%, driven by a strong performance from Wizards of the Coast, including the U.S. launch of the DUEL MASTERS trading card game;
Strength and depth of product line reflected in continued strong performances by core brands and innovative new products;
Core brand drivers up a strong 24% worldwide.
Hasbro, Inc. (NYSE: HAS - News) today reported first quarter results. Worldwide net revenues for the quarter were $474.2 million compared to $461.8 million a year ago and included a $21.0 million positive impact from foreign exchange. Net earnings for the quarter were $6.5 million or $0.03 per diluted share, compared to net earnings of $1.2 million or $0.01 per diluted share in 2003. The Company also reported first quarter Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) of $45.7 million compared to $47.4 million in 2003. The attached schedules provide a reconciliation of EBITDA to net earnings for the first quarters of 2004 and 2003.

"We are pleased with the continued progress we made during the first quarter, given the uncertain retail environment. Revenues were up 2.7%, we continued to improve earnings, increased our dividend, and strengthened our balance sheet," said Alfred J. Verrecchia, President and Chief Executive Officer. "Core brand drivers were up a strong 24% worldwide in the quarter and we continue to bring new and innovative products to market -- providing value for the trade, consumers, and ultimately for our shareholders."

Something like that. ..

 

[Shadowdancer]

I can't make heads nor tails of this though:



Huh? As I look at the bottom line numbers I can't imagine what they are trying to say here; it doesn't seem to have shown up in the "Operating Profit" in any case!

As far as I can tell from a quick glance, Hasbro has managed to pay down the "Interest Expense" which ate most of last years Q1 profits, so even though "Operating Profit" is down $1.3M this year they actually made more money in the end. Ie, business is slightly down, but some debt restructuring made them more profitable?

Can someone with an accounting background comment?

Well, this is part of their PR spin doctoring, trying to emphasize the positive. I'm not sure what all of their "core brand drivers" are, but as an example, for D&D that would be the Players Handbook, the DM Guide and the Moster Manual. What they are saying is that the core products of their main product lines increased sales worldwide. But sales of peripheral products were probably down, and that's why overall their sales figures and profits are down. They are basically trying to let their investors know that even though the company's profits are down, the company is still strong and viable.

Edit: I'm not an accountant, nor do I have an accounting background. But I do work for a newspaper, and I do recognize spin doctoring when I see it.

 

[Painfully]

Dang. I thought the thread said IQ results.

 

[Krug]

Somehow I dislike threads where there is only a link .. if you bother to post the link, why not bother to quote the relevant parts too, or give your own opinion?


Something like that. ..

Coz I need to rush off and do other things? And I'm no financial analyst. There are people better suited to analyze this stuff.

 

[Chroma]

Wow, they don't even mention D&D in the "Games segment" where they mention WotC... I wonder what small percentage of the money generated by WotC is D&D/d20 related, compared to "traditional" games...