Hasbro ends Q2 with $924 million cash; long-term debt remains flat

By Lisa Kerner

Charlotte, N.C., July 18 – Hasbro, Inc. ended its second quarter on June 26 with cash of $924 million. Long-term debt was roughly flat at $1.55 billion.

Cash at the end of the prior-year period totaled $858 million, according to Hasbro’s earnings presentation.

The company repurchased $22 million of stock during the quarter and has $422 million remaining under its authorization.

Hasbro’s balance sheet “remains strong,” said chief financial officer Deb Thomas during the company’s earnings conference call on Monday. The company generated $585 million of cash over the past 12 months.

During the quarter, Hasbro continued to drive strong results, including double-digit revenue growth and margin expansion.

“We’ve returned $179 million in cash to shareholders this year and remain committed to investing in our business, returning excess cash and maintaining our investment-grade rating,” Thomas said.

Hasbro is targeting operating cash flow of between $550 million and $600 million on average per year. Capital priorities include investing in long-term growth, returning cash to shareholders and maintaining a solid investment-grade rating with access to commercial paper market, according to the earnings presentation.

Chairman, president and chief executive officer Brian Goldner highlighted Hasbro’s growth.

“For the quarter, we grew across geographies, with 11% net revenue gains in both the U.S. and Canada segment and the international segment,” Goldner said on the call. “Emerging market revenue increased 5% as reported and 13% absent FX.”

Europe grew 23% in the quarter, including a 25% or greater increase from the United Kingdom, France, Germany, Italy, Spain and Russia.

Hasbro’s second-quarter revenues were up 10% year over year at about $879 million.

Operating profit increased 12%, and net earnings increased 25% to $52.1 million, or $0.41 per diluted share.

The Pawtucket, R.I.-based game and toy company returned $85.8 million to shareholders in the quarter; it paid $63.9 million of dividends and repurchased $21.9 million of stock.

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