aNb Media News, October 23, 2012
Hasbro Reports Q3 2012
Hasbro reported financial results for the third quarter 2012 yesterday. Net earnings for the third quarter were $164.9 million, or $1.24 per diluted share, versus $171 million, or $1.27 per diluted share, in 2011. Excluding the impact of foreign exchange translation, net earnings were $169.8 million, or $1.28 per diluted share. Net revenues for the third quarter 2012 were $1.35 billion compared to $1.38 billion in 2011. Excluding a negative $47.4 million impact of foreign exchange, net revenues increased 1 percent to $1.39 billion.
U.S. and Canada segment net revenues were $774.5 million, an increase of 1 percent, compared to $764.6 million in 2011. The segment’s results reflect growth in the Girls and Games categories, partially offset by declines in the Boys and Preschool categories. The U.S. and Canada segment reported 20 percent operating profit growth to $154.2 million compared to $128.8 million in 2011.
Net revenues in the International segment grew 1 percent absent the negative $47.1 million impact of foreign exchange. Including the impact of foreign exchange, International segment net revenues were $524.1 million, down 7 percent, compared to $563.3 million in 2011. Revenue in the International segment reflects 9 percent growth in Latin America offset by a decline in Europe and Asia Pacific. Additionally, revenues in the Games and Preschool categories were flat while the Boys and Girls categories declined. The International segment reported an operating profit of $85.5 million compared to $100.7 million in 2011.
Entertainment and Licensing segment net revenues were $43.1 million compared to $46.3 million in 2011. The segment continued to benefit from the sale of television programming in all formats in the U.S. and internationally offset by lower movie-related revenues. The Entertainment and Licensing segment reported an operating profit of $10.7 million compared to $15.3 million in 2011.
In the Boys category, net revenues decreased 12 percent to $471.1 million. Marvel products continued to post strong year-over-year gains globally, which were more than offset by expected declines in Transformers and Beyblade products. Net revenues in the Games category were flat in the quarter at $365.7 million.
For the third quarter 2012, the Girls category net revenues increased 17 percent to $302.3 million.
Net revenues in the Preschool category declined 5 percent to $206 million. The category benefited from continued growth in the Playskool Heroes line and Play-doh, as well as new brand initiatives Koosh and Playskool Rocktivity. Sesame Street products declined versus last year’s launch of the line.
The Company repurchased a total of 142,336 shares of common stock during the third quarter 2012 at a total cost of $5.2 million and an average price of $36.18 per share. At quarter-end, $212.2 million remained available in the current share repurchase authorization. The Company paid $46.9 million in cash dividends to shareholders during the quarter.
Jakks Reports Q3 2012
Jakks Pacific, Inc., reported results for its third quarter and first nine months ended September 30, 2012, this morning.
Net sales for the third quarter of 2012 were $314.5 million, compared to $332.4 million reported in the comparable period in 2011. Reported net income for the third quarter was $30.4 million, or $1.10 per diluted share, which includes $1 million of pre-tax charges, or $0.03 per diluted share, related to financial and legal advisory fees and expenses associated with the unsolicited indication of interest and activist shareholder activities. This compares to net income of $34.8 million, or $1.10 per diluted share, reported in the comparable period in 2011, which included $0.7 million, or $0.01 per diluted share, of financial and legal advisory fees and expenses. Excluding the legal and financial advising fees, third quarter earnings would have totaled $31.2 million, or $1.13 per diluted share, compared to $35.3 million, or $1.11 per diluted share, in 2011.
Net sales for the nine months ending September 30, 2012, were $533.3 million compared to $536.7 million in 2011. The net earnings reported for the nine month period was $14.7 million, or $0.59 per diluted share, which included $4.1 million of pre-tax charges, or $0.10 per diluted share, of financial and legal advisory fees and expenses. This compares to net income for the first nine months of 2011 of $28.5 million, or $0.97 per diluted share, which included $1.8 million, or $0.04 per diluted share, of financial and legal advisory fees and expenses. Excluding the financial and legal advisory fees and expenses, the nine month earnings would have totaled $17.7 million, or $0.69 per diluted share, compared to earnings of $29.9 million, or $1.01 per diluted share, in 2011.
As of September 30, 2012, Jakks’ working capital was $257.5 million, including cash and equivalents and marketable securities of $141 million, compared to working capital of $401.4 million including cash and equivalents and marketable securities of $232.5 million as of September 30, 2011.
As previously announced, Jakks anticipates net sales for the full year of approximately $690 million to $700 million, with revised non-GAAP earnings per share in the range of approximately $0.68 to $0.74, excluding non-recurring legal and financial advisory charges of $0.19 per share. In addition, if Jakks does not achieve sufficient U.S. taxable income—which is expected to be sufficient at non-GAAP earnings of approximately $0.74 per share—it will be required to take a one-time non-cash charge of $82 million, or $3.45 per share, for the full impairment of its domestic deferred tax assets. The revised guidance represents a reduction from Jakks’ previously anticipated full year net sales of approximately $720 million to $728 million and diluted earnings per share in the range of approximately $1.04 to $1.08, excluding the financial and legal advisory fees. The Company’s guidance with respect to diluted earnings per share is a non-GAAP financial measure, due to the exclusion of such one-time charges. On a GAAP basis, the Company anticipates diluted earnings/loss per share for the full fiscal year ending December 31, 2012, to be in the range of a loss of $2.77 (taking into account such non-recurring charges) to earnings of $0.74.
The Jakks Board of Directors has declared a regular quarterly cash dividend of $0.10 per common share payable on January 2, 2013, to shareholders of record at the close of business on December 14, 2012.
Dallas Market Center Announces Dates for New PBJ Trade Show
Dallas Market Center announced the launch of PBJ, a new trade event for baby gifts and gadgets to be held each spring. The inaugural show will take place March 21–22, 2013.
PBJ will be held in conjunction with the Dallas KidsWorld Market, which is scheduled for March 18–21, 2013. The show draws U.S. specialty as well as international retailers to the marketplace on the eighth floor. Visit www.dallasmarketcenter.com/pbj/.
Ubisoft, New Regency in Assassin’s Creed Film Partnership
Ubisoft and New Regency announced a partnership for the planned Assassin’s Creed film. Ubisoft Motion Pictures, the film and television division of Ubisoft, will develop the Assassin’s Creed film in close collaboration with New Regency. A screenplay is in development. Financial terms of the deal were not disclosed.
International Playthings to Distribute NICI’s White World Winter Collection
International Playthings LLC (IPL) announced that it has partnered with the NICI Corporation to distribute their collection of plush toys and accessories to the United States and Canada. IPL will introduce NICI’s White World winter collection to the U.S. for this holiday season. This collection features a polar bear, seal and a wide range of complementing accessories. IPL also launched the North American NICI website www.nici-world.com this month.