Revenue Performance - First quarter 2023 net revenues decreased 14% to $1.0 billion compared to the first quarter of 2022, with an unfavorable foreign currency translation impact of $15.8 million[109] - Consumer Products segment net revenues declined 23% to $520.4 million, while Wizards of the Coast and Digital Gaming segment net revenues increased 12% to $295.2 million[109] - Franchise Brands net revenues decreased 6% to $613.4 million, driven by lower net revenues from NERF, MONOPOLY, PLAY-DOH, and PEPPA PIG products, partially offset by higher net revenues from MAGIC: THE GATHERING, DUNGEONS & DRAGONS, and TRANSFORMERS[118] - Partner Brands net revenues decreased 36% to $132.7 million, primarily due to lower sales of DISNEY FROZEN, DISNEY PRINCESS, MARVEL, STAR WARS, and BEYBLADE products[120] - Portfolio Brands net revenues decreased 18% to $92.0 million, driven by lower net revenues from PJ MASKS and BABY ALIVE products, partially offset by higher net revenues from GI JOE products[121] - Non-Hasbro Branded Film & TV net revenues decreased 16% to $162.9 million, driven by lower net revenues from film production deliveries and unscripted programming, partially offset by higher net revenues from scripted programming[122] - Consumer Products segment net revenues declined 23% to $520.4 million in Q1 2023, driven by lower sales of NERF, PLAY-DOH, DISNEY PRINCESS, DISNEY FROZEN, MARVEL, and STAR WARS products, partially offset by higher sales of TRANSFORMERS, GI JOE, and DUNGEON & DRAGONS products[125][126] - Wizards of the Coast and Digital Gaming segment net revenues increased 12% to $295.2 million in Q1 2023, driven by higher net revenues from MAGIC: THE GATHERING and D&D Beyond[130][131] - Entertainment segment net revenues declined 19% to $185.4 million in Q1 2023, primarily due to lower unscripted television and film production net revenues, partially offset by higher scripted net revenues from deliveries such as The Rookie season five[134][135] Operating Profit and Loss - Operating profit for the first quarter of 2023 was $17.9 million, or 1.8% of net revenues, compared to $120.0 million, or 10.3% of net revenues, in the first quarter of 2022[109] - Consumer Products segment operating loss was $46.0 million in Q1 2023, compared to operating profit of $8.6 million in Q1 2022, driven by lower net revenues and higher closeout sales and sales allowances[127] - Wizards of the Coast and Digital Gaming segment operating profit decreased to $76.8 million in Q1 2023, compared to $106.4 million in Q1 2022, driven by higher product development costs and administrative expenses[132] - Entertainment segment operating loss was $8.7 million in Q1 2023, compared to operating profit of $12.2 million in Q1 2022, driven by lower net revenues and higher advertising expense[136][137] - Corporate and Other segment operating losses improved to $4.2 million in Q1 2023, compared to $7.2 million in Q1 2022, driven by lower administrative expenses[138] Net Earnings and Loss - Net loss attributable to Hasbro, Inc. was $22.1 million, or $(0.16) per share, in the first quarter of 2023 compared to net earnings of $61.2 million, or $0.44 per diluted share, in the first quarter of 2022[109] - Income tax expense for Q1 2023 was $0.7 million on a pre-tax loss of $21.0 million, compared to $17.3 million on a pre-tax income of $80.2 million in Q1 2022[151] Cost Management and Savings - The company expects to deliver $250 million to $300 million in run-rate cost savings by the end of 2025 through its Operational Excellence program, with $35 million realized in the first quarter of 2023[102] - The company announced a workforce reduction of approximately 1,000 positions, or 15% of global full-time employees, in alignment with its Operational Excellence program[105] - Cost of sales decreased to $285.3 million in Q1 2023, driven by lower sales volumes and cost savings from the Operational Excellence Program[140] - Product development expense increased to $83.3 million in Q1 2023, driven by higher investments in Wizards of the Coast tabletop and digital gaming initiatives[143] - Advertising expense increased to $82.8 million in Q1 2023, driven by advertising costs for Dungeons & Dragons: Honor Among Thieves and D&D Beyond[144] Cash Flow and Financial Position - The company's cash and cash equivalents totaled $386.2 million as of April 2, 2023, with $13.4 million restricted under production financing facilities[162] - Accounts receivable decreased 26% to $685.2 million as of April 2, 2023, compared to $931.7 million as of March 27, 2022[166] - Inventories increased 11% to $713.4 million as of April 2, 2023, driven by higher inventory balances in the Wizards of the Coast and Digital Gaming segment[167] - Prepaid expenses and other current assets increased 21% to $754.4 million as of April 2, 2023, primarily due to higher accrued royalty and licensing balances[168] - Other assets increased 25% to $1,604.3 million as of April 2, 2023, driven by higher capitalized film and television production balances[169] - Accounts payable and accrued liabilities decreased 7% to $1,653.9 million as of April 2, 2023, due to lower accounts payable balances and improved supply chain conditions[170] - Net cash provided by operating activities in Q1 2023 was $88.8 million, a decrease of $45.9 million compared to Q1 2022[174] - Net cash utilized for investing activities in Q1 2023 was $55.6 million, reflecting increased investments in digital gaming initiatives[175] - Dividends paid in Q1 2023 totaled $96.7 million, compared to $94.5 million in Q1 2022[177] Debt and Financing - The Company has a commercial paper program with a maximum aggregate principal amount of $1.0 billion, with no outstanding borrowings as of April 2, 2023[179][180] - The Company has a revolving credit agreement with a maximum aggregate principal amount of $1.5 billion, with no borrowings outstanding as of April 2, 2023, and $4.0 million in letters of credit outstanding[181] - The Company has fully repaid the $400.0 million Three-Year Tranche of its Term Loan Facilities and has repaid $320.0 million of the $600.0 million Five-Year Tranche as of April 2, 2023[182] - The Company issued $2.4 billion of senior unsecured debt securities in November 2019, with $300.0 million of 2022 Notes repaid in full during the third quarter of 2021[183] - The Company has a revolving production financing facility with a maximum aggregate principal amount of $250.0 million, with $183.5 million in outstanding borrowings as of April 2, 2023[184][185] - The Company has $3.8 billion in long-term debt as of April 2, 2023, with $109.0 million due within the current year[186] - The Company has $13.4 million in letters of credit and $331.7 million in purchase commitments outstanding as of April 2, 2023[187] - The Company has $241.6 million remaining under its share repurchase authorizations, with no share repurchases made during the first quarter of 2023[188] - The Company has hedged a portion of its forecasted foreign currency transactions, with net unrealized losses of $2.0 million on derivatives as of April 2, 2023[192][193] - The Company has $3.8 billion in fixed-rate long-term debt, with deferred losses of $14.7 million related to interest rate swaps as of April 2, 2023[194]

Hasbro, Inc. (NASDAQ:HAS) Q1 2023 Earnings Conference Call April 27, 2023 8:30 AM ET Company Participants Debbie Hancock - Senior Vice President, Investor Relations Chris Cocks - Chief Executive Officer Deb Thomas - Chief Financial Officer Conference Call Participants Andrew Uerkwitz - Jefferies Eric Handler - ROTH MKM Drew Crum - Stifel Jason Haas - Bank of America Fred Wightman - Wolfe Research Operator Good morning and welcome to Hasbro’s First Quarter 2023 Earnings Conference Call. [Operator Instruction ...

• POS remains down YOY, but improving from Q4 trends • POS up in Games and Preschool • POS up for PEPPA PIG, PLAY-DOH and TRANSFORMERS • Promotional activity to clear retail inventory • POS does not include MAGIC: THE GATHERING or DUNGEONS & DRAGONS • Operating margin -8.8%; Adjusted Operating margin* -6.8% • Adjusted Operating Profit* decreased due to lower revenues, higher allowances and closeouts to sell through inventory, partially offset by savings from the Company's Operational Excellence program and ...

Financial Performance - Net revenues for 2022 were $5,856.7 million, a decrease of 9% from $6,420.4 million in 2021, impacted by an unfavorable foreign currency translation of $166.3 million [229]. - Operating profit in 2022 was $407.7 million, or 7.0% of net revenues, down from $763.3 million, or 11.9% of net revenues in 2021 [229]. - Net earnings attributable to Hasbro, Inc. declined to $203.5 million, or $1.46 per diluted share, compared to $428.7 million, or $3.10 per diluted share in 2021 [229]. - The Consumer Products segment saw a 10% decrease in net revenues to $3,572.5 million, while the Wizards of the Coast and Digital Gaming segment increased by 3% to $1,325.1 million [229]. - The Entertainment segment net revenues decreased by 17% to $959.1 million in 2022 [229]. - Hasbro's Franchise Brands net revenues decreased by 4% to $2,830.6 million in 2022 [243]. - Net revenues for Hasbro declined 10% in 2022, totaling $3,572.5 million compared to $3,981.6 million in 2021 [264]. - Franchise Brands portfolio net revenues decreased 4% in 2022, with MAGIC: THE GATHERING becoming the Company's first billion-dollar brand [245]. - Partner Brands portfolio net revenues declined 9% in 2022, driven by lower sales of DISNEY FROZEN and DISNEY PRINCESS products [246]. - Hasbro Gaming portfolio net revenues decreased 13% in 2022, primarily due to lower revenues from Dungeons & Dragons: Dark Alliance [248]. - Total gaming category net revenues, including MAGIC: THE GATHERING and MONOPOLY, totaled $1,997.5 million in 2022, a decrease of 5% from $2,098.9 million in 2021 [249]. - Emerging Brands portfolio net revenues declined 12% in 2022, primarily driven by lower sales of FURREAL FRIENDS and PJ MASKS products [250]. - TV/Film/Entertainment portfolio net revenues declined 17% in 2022, impacted by the sale of eOne Music and lower film deliveries [251]. Operational Changes - The company announced an Operational Excellence program aimed at delivering $250-$300 million in annualized run-rate cost savings by year-end 2025 [237]. - In 2022, Hasbro incurred net charges of $253.0 million related to its strategic review and Blueprint 2.0 strategy shift [237]. - The company plans to focus on fewer, bigger brands as part of its Blueprint 2.0 strategy, leading to the out-licensing of certain non-core brands [223]. - The Consumer Products segment faced challenges from higher sales allowances and obsolescence charges, despite benefits from the expiration of certain licensing agreements [284]. - The Wizards of the Coast segment's operating profit margin decrease was attributed to higher inventory and product development costs, partially offset by lower administrative expenses [286]. - The Entertainment segment's improved results were influenced by the non-cash impairment charge in 2021 and lower royalty expenses in 2022 [289]. Cost and Expenses - Operating expenses as a percentage of net revenues in 2022 included cost of sales at 32.6%, program cost amortization at 9.5%, and royalties at 8.4% [297]. - Cost of sales decreased by 1% to $1,911.8 million, representing 32.6% of net revenues in 2022, driven by lower sales volumes in the Consumer Products segment [302]. - Program cost amortization totaled $555.5 million, or 9.5% of net revenues in 2022, down from $628.6 million in 2021 [304]. - Royalty expenses decreased to $493.0 million, or 8.4% of net revenues in 2022, compared to $620.4 million, or 9.7% in 2021 [306]. - Advertising expenses decreased to $387.3 million, or 6.6% of net revenues in 2022, down from $506.6 million, or 7.9% in 2021 [311]. - Selling, distribution, and administration expenses increased to $1,666.1 million, or 28.4% of net revenues in 2022, from $1,432.7 million, or 22.3% in 2021 [317]. Cash Flow and Financing - Net cash provided by operating activities was $372.9 million in 2022, down from $817.9 million in 2021, attributed to lower earnings and higher working capital requirements [342]. - Net cash utilized for investing activities was $313.0 million in 2022, compared to net cash provided of $242.0 million in 2021, reflecting a cash payment of $146.3 million for the D&D Beyond Acquisition [343]. - Net cash utilized for financing activities was $(553.3) million in 2022, compared to $(1,459.8) million in 2021, indicating a significant reduction in financing outflows [344]. - Dividends paid increased to $385.3 million in 2022 from $374.5 million in 2021, reflecting a quarterly dividend rate increase from $0.68 to $0.70 per share [348]. - The Company had no outstanding borrowings under its commercial paper program as of December 25, 2022, with approximately $1.5 billion available under the committed line [351]. - The Company fully repaid the $400.0 million principal of the Three-Year Tranche term loan by December 25, 2022, and repaid $87.5 million of the Five-Year Tranche [353]. - The Company issued an aggregate of $2.4 billion in senior unsecured debt securities in November 2019, with various maturities and fixed interest rates [355]. - The Company was in compliance with all financial covenants as of December 25, 2022, under its revolving credit agreement [352]. - The Company has a total long-term debt of $3.8 billion due between 2024 and 2044, with $113.2 million classified as current debt as of December 25, 2022 [358]. Impairments and Taxation - In 2022, the company incurred asset impairments and charges totaling $300.3 million, primarily related to the Power Rangers intangible asset [300]. - The Company recorded a pre-tax non-cash goodwill impairment charge of $11.8 million in Q3 2022 due to the exit from certain non-core businesses within the Entertainment segment [369]. - A partial impairment charge of $281.0 million was recorded in Q4 2022 related to the definite-lived Power Rangers intangible asset due to project cancellations [378]. - The Company recorded an impairment loss of $74.1 million related to its investment in the Discovery Family Channel due to a lower fair value compared to its carrying value [387]. - The effective income tax rate decreased to 22.4% in 2022 from 25.2% in 2021 and 30.0% in 2020, influenced by various discrete items and foreign tax rates [324]. - The company recorded a total liability of $137.7 million related to the Tax Cuts and Jobs Act, with $34.4 million due in 2023 [332]. - The company plans to pay the transition tax related to the Tax Act in annual installments through 2025, totaling $137.7 million [332]. - The Company has a liability of $69.1 million for potential tax, interest, and penalties for uncertain tax positions as of December 25, 2022 [392]. Inventory and Assets - Inventories increased by 23% to $676.8 million in 2022, reflecting accelerated purchases to mitigate supply chain challenges [335]. - Other assets rose by 23% to $1,589.3 million in 2022, primarily due to higher deferred tax balances and investments in film and television productions [338]. - The Company's inventory levels increased by 23% in 2022 compared to 2021, reflecting global supply chain disruptions [398]. Market and Customer Concentration - Revenues from the Company's top five retail customers accounted for approximately 35% of its consolidated net revenues in 2022 [396]. - Approximately 57% of the Company's full year net revenues were recognized in the second half of 2022, indicating a concentration of sales during this period [397]. Strategic Outlook - The Company expects to fund its working capital needs in 2023 primarily through cash flows from operations and production financing [330]. - The Company expects to continue monitoring the impact of inflation on its operations and may need to adjust prices further [401]. - The Company believes cash from operations and its committed line of credit will allow it to meet obligations over the next twelve months [361].

Hasbro, Inc. (NASDAQ:HAS) Q3 2022 Earnings Conference Call October 18, 2022 8:30 AM ET Company Participants Debbie Hancock - Vice President, Investor Relations Chris Cocks - Chief Executive Officer Deb Thomas - Chief Financial Officer Eric Nyman - President and Chief Operating Officer Cynthia Williams - President, Wizards of the Coast and Digital Gaming Darren Throop - President and Chief Executive Officer, eOne Steve Bertram - President, eOne Film and TV Conference Call Participants Eric Handler - MKM Part ...

| --- | --- | --- | --- | --- | |-------|-------|--------------------------------|-------|-------| | | | | | | | | | | | | | | | Q3 | | | | | | October 18, 2022 2022 Earnings | | | Safe Harbor Certain statements in this presentation 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 business strategies and plans for growth ...

| --- | --- | --- | --- | --- | |-------|-------|-----------------------------|-------|-------| | | | | | | | | | | | | | | | Q2 | | | | | | July 19, 2022 2022 Earnings | | | Safe Harbor Certain statements in this presentation 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 business strategies; the ability to achieve ou ...

Hasbro, Inc. (NASDAQ:HAS) Q2 2022 Earnings Conference Call July 19, 2022 8:30 AM ET Company Participants Debbie Hancock - Senior Vice President, Investor Relations Chris Cocks - Chief Executive Officer Deb Thomas - Chief Financial Officer Cynthia Williams - President, Wizards of the Coast in Digital Gaming Darren Throop - President and Chief Executive Officer, eOne Eric Nyman - President and Chief Operating Officer Conference Call Participants Eric Handler - MKM Partners Steph Wissink - Jefferies Arpine Koc ...

Hasbro, Inc. (NASDAQ:HAS) Q1 2022 Earnings Conference Call April 19, 2022 8:30 AM ET Company Participants Debbie Hancock - Senior Vice President, Investor Relations Chris Cocks - Chief Executive Officer Deb Thomas - Chief Financial Officer Cynthia Williams - President, Wizards of the Coast in Digital Gaming Darren Throop - President & Chief Executive Officer, eOne Eric Nyman - President & Chief Operating Officer Conference Call Participants Eric Handler - MKM Partners Arpiné Kocharyan - UBS Mike Ng - Goldma ...

| --- | --- | --- | --- | |-------|------------------------------|-------|-------| | | | | | | | | | | | | | | | | | Q1 | | | | | April 19, 2022 2022 Earnings | | | Safe Harbor Certain statements in this presentation 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 outlook for growth in 2022; expec ...