Hasbro, Inc. · NASDAQ:HAS
Hasbro — Q4 2020 Earnings Presentation
42 slides from Hasbro's earnings presentation, Feb 8, 2021
Slide 1: Q4 & Full Year 2020 Earnings
Q4 & Full Year 2020 Earnings FEBRUARY 8, 2021
Slide 2: Safe Harbor
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 pe
Slide 3: Safe Harbor continued
Safe Harbor continued • the success of our key partner brands, including the ability to secure, maintain and extend agreements with our key partners or the risk of delays, increased costs or difficulties associated with any of our or our partners’ planned digital applications or media initiatives; •
Slide 4: Supplemental Financial Data: Use of Non-GAAP Financial Measures
Supplemental Financial Data Use of Non-GAAP Financial Measures The financial tables accompanying this presentation include non-GAAP financial measures as defined under SEC rules, specifically Adjusted operating profit, Adjusted net earnings and Adjusted earnings per diluted share, which exclude, whe
Slide 5: Hasbro Brand Blueprint
Hasbro Brand Blueprint - s - ~ = x _BRANDS_ Pree) PURPOSE eeeeeee CONTENT |
Slide 6: Creating the World's Best Play & Entertainment Experiences
Creating the World’s Best Play & Entertainment Experiences HASBRO’S BRAND SUCCESSFUL EXECUTION STRONG FINANCIAL BLUEPRINT: IN 2020 POSITION A PROPRIETARY ADVANTAGE • Q4 2020 Growth in U.S. & CAN and Unique Strategy fueled by eOne Segments • Franchise Brands MAGIC: THE FY 2020 Revenues: $5.47B Unmatc
Slide 7: Q4 2020 snapshot
REVENUE $1.72B Q4 OPERATING PROFIT $186.4M 2020 As Reported As Adjusted $261.4M NET EARNINGS As Reported $105.2M snapshot As Adjusted $175.3M EPS: NET EARNINGS As Reported $0.76 per diluted share As Adjusted $1.27 per diluted share *The As Adjusted figures are non-GAAP financial measures. A reconcil
Slide 8: FY 2020 snapshot
REVENUE $5.47B FY OPERATING PROFIT $501.8M 2020 As Reported As Adjusted $826.7M NET EARNINGS As Reported $222.5M snapshot As Adjusted $514.6M EPS: NET EARNINGS As Reported $1.62 per diluted share *The As Adjusted figures are non-GAAP financial measures. As Adjusted $3.74 per diluted share A reconcil
Slide 9: 2021 Announcements & Highlights: Jonathan Entwistle
PARTNER BRAND Jonathan Entwistle Creative Steward 2021 ANNOUNCEMENTS & HIGHLIGHTS 9
Slide 10: 2021 Announcements & Highlights
MRS. HARRIS GOES TO PARIS IN PRODUCTION 2021 ANNOUNCEMENTS & HIGHLIGHTS Nominated for 9 Grammys ALL THE OLD KNIVES CHRIS PINE 10
Slide 11: Fourth Quarter & Full Year Net Revenues Performance
Fourth Quarter & Full Year Net Revenues Performance FOURTH QUARTER NET REVENUES FULL YEAR NET REVENUES +4% $7,000 -8% $2,000 $1,663 $1,723 $5,936 $6,000 $5,465 $1,500 $5,000 $ Millions, unaudited $4,000 $1,000 $3,000 $500 $2,000 $1,000 $- $- 2019 2020 2019 2020 Pro Forma Pro Forma • Fourth Quarter g
Slide 12: Fourth Quarter & Full Year Brand Portfolio Performance
Fourth Quarter & Full Year Brand Portfolio Performance Pro Forma Pro Forma Total Gaming Full Year Full Year % Q4 2020 Q4 2019 % CHANGE 2020 2019 CHANGE FY 2020 (millions of dollars) $1.76B +15% Q4 2020 FRANCHISE BRANDS $705 $662 +7% $2,286 $2,412 -5% $561.2M +27% PARTNER BRANDS $350 $409 -14% $1,079
Slide 13: Fourth Quarter & Full Year Operating Profit
Fourth Quarter & Full Year Operating Profit FOURTH QUARTER FULL YEAR $900 $833 $827 $300 $750 $690 $261 $600 $502 $200 $186 $173 $450 $137 $ Millions, unaudited $300 $100 $150 $- $- 2019 2019 Adj* 2020 2020 Adj* 2019 2019 Adj* 2020 2020 Adj* Pro Forma Pro Forma Operating Profit Margin Q4 2020: Opera
Slide 14: U.S. & Canada Segment Net Revenues & Operating Profit (Q4)
U.S. & Canada Segment Net Revenues & Operating Profit FOURTH QUARTER +16% Pro Forma +78% 2019 $1,000 2020 $250 $791 -9% $750 $683 $200 $181 $ Millions, unaudited $150 $500 $102 $100 $250 $50 $- $- NET REVENUES OPERATING PROFIT • Revenue growth in Franchise Brands: MAGIC: THE GATHERING, MONOPOLY and
Slide 15: U.S. & Canada Segment Net Revenues & Operating Profit (Full Year)
U.S. & Canada Segment Net Revenues & Operating Profit FULL YEAR +30% +4% Pro Forma $600 $540 2019 $3,000 $2,449 $2,556 2020 $500 $2,500 $415 $400 -9% $2,000 $ Millions, unaudited $300 $1,500 $200 $1,000 $100 $500 $- $- NET REVENUES OPERATING PROFIT • Revenue growth in Franchise Brands, led by MAGIC:
Slide 16: International Segment Net Revenues & Operating Profit (Q4)
International Segment Net Revenues & Operating Profit -9% FOURTH QUARTER -46% Pro Forma $75 $700 2019 $615 $56 $562 2020 $600 $ Millions, unaudited $500 $50 -9% $400 $30 $300 $25 $200 $100 $- $- NET REVENUES OPERATING PROFIT • Revenue declines primarily driven by Latin America and Asia; Revenues gre
Slide 17: International Segment Net Revenues & Operating Profit (Full Year)
International Segment Net Revenues & Operating Profit FULL YEAR -14% Pro Forma -60% 2019 $1,836 $150 $2,000 2020 1,579 $107 $ Millions, unaudited $1,500 -9% $100 $1,000 $- $43 $50 $500 $- $- NET REVENUES OPERATING PROFIT • Revenue declines in Latin America and Asia; European region revenues flat • G
Slide 18: International Segment Net Revenues
International Segment Net Revenues FULL YEAR Q4 2020 2020 FULL YEAR AS Q4 2020 AS 2020 REPORTED ABSENT FX REPORTED ABSENT FX EUROPE +4% -- -- -1% LATIN AMERICA -36% -30% -45% -37% ASIA PACIFIC -17% -21% -18% -19% TOTAL -9% -10% -14% -13% INTERNATIONAL Foreign Exchange had a positive $9.4M impact on
Slide 19: Entertainment, Licensing & Digital Segment (Q4)
Entertainment, Licensing & Digital Segment Net Revenues & Operating Profit FOURTH QUARTER Pro Forma -15% 2019 -27% 2020 $150 $50 $130 -9% $111 $37 $ Millions, unaudited $27 $75 $25 $- $- NET REVENUES OPERATING PROFIT • EL&D revenues declined due to lower consumer products and entertainment revenues,
Slide 20: Entertainment, Licensing & Digital Segment (Full Year)
Entertainment, Licensing & Digital Segment Net Revenues & Operating Profit FULL YEAR As Adjusted Pro Forma As +14% 2019 -14% Reported -7% 2020 $500 $434 $125 $114 -9% $100 2020 $374 $93 Adj. $400 $100 $ Millions, unaudited $300 $75 $200 $50 $100 $25 $- $- NET REVENUES OPERATING PROFIT • EL&D revenue
Slide 21: eOne Segment Net Revenues & Operating Profit (Loss) (Q4)
eOne Segment Net Revenues & Operating Profit (Loss) FOURTH QUARTER Pro Forma +10% 2019 As Reported As Adjusted As Adjusted +80% >+100% 2019 Adj. $300 $260 $46 2020 $235 $50 2020 Adj. $200 $ Millions, unaudited $25 $- $100 $(14) $(25) $- $(50) $(35) $(71) NET REVENUES $(75) OPERATING PROFIT (LOSS) •
Slide 22: eOne Segment Net Revenues & Operating Profit (Loss) (Full Year)
eOne Segment Net Revenues & Operating Profit (Loss) -21% FULL YEAR Pro Forma 2019 As Adjusted 2019 Adj. $1,400 -20% $1,216 2020 $1,200 $200 $163 $956 $131 2020 Adj. $1,000 $150 $ Millions, unaudited $800 $100 $600 $50 $20 $400 $(79) $- $200 $- $(50) $(100) NET REVENUES OPERATING PROFIT (LOSS) • Reve
Slide 23: Fourth Quarter & Full Year Net Earnings
Fourth Quarter & Full Year Net Earnings Diluted Shares: FY 2020 $200 FOURTH QUARTER $600 FULL YEAR 137.6M vs. FY 2019 $543 128.5 $175 $515 $500 $150 $3.94 PER $124 $400 DILUTED $346 SHARE $105 $1.27 $3.74 PER $95 $ Millions, unaudited PER $100 DILUTED $300 DILUTED SHARE $0.69 PER $0.90 $0.76 PER SHA
Slide 24: Key Cash Flow & Balance Sheet Data
Key Cash Flow & Balance Sheet Data YEAR ENDED $ Millions, unaudited DEC 27, 2020 DEC 29, 2019 NOTES Substantial cash on hand. FY 2019 included eOne related Cash $1,450 $4,580 financing and hedging gains. Long-term Debt $4,660 $4,046 Paid off $123 million in debt during the year Depreciation $120 $13
Slide 25: Our commitment to CSR
Our commitment to CSR reflects our desire to help build a safer, more sustainable and inclusive company and world for all. Product Safety Environmental Human Rights & Diversity & Sustainability Ethical Sourcing Inclusion 100 Most Sustainable Companies 2020 25
Slide 26: Our Mission and Values
Our Mission Our Values Create the World’s Community Best Play & Engaging, Purposeful and Giving Creativity Entertainment Curious, Playful and Inventive Experiences Inclusion Diverse, Empowered and United Integrity Responsible, Ethical and Trustworthy Passion Driven, Focused and Courageous 26
Slide 27: Supplemental Financial Information
Supplemental Financial Information 27
Slide 28: Condensed Consolidated Balance Sheets
Condensed Consolidated Balance Sheets (Thousands of Dollars) December 27, December 29, 2020 2019 ASSETS (1) Cash and Cash Equivalents $ 1,449,676 $ 4,580,369 Accounts Receivable, Net 1,391,726 1,410,597 Inventories 395,633 446,105 Prepaid Expenses and Other Current Assets 609,610 310,450 Total Curre
Slide 29: Consolidated Statements of Operations
Consolidated Statements of Operations (Thousands of Dollars and Shares Except Per Share Data) Quarter Ended Year Ended December 27, % Net December 29, % Net December 27, % Net December 29, % Net 2020 Revenues 2019 Revenues 2020 Revenues 2019 Revenues Net Revenues $ 1,722,971 100.0% $ 1,428,007 100.0
Slide 30: 2020 Cost of Sales
2020 Cost of Sales As a % of Revenue Revenue 100.0% Gross Margin 69.5% Cost of Sales 31.5% Board/Paper/Print 6.7% Labor 6.2% Resins 3.9% Factory Overhead 5.0% Electronics / Metals 1.6% Freight/Import Costs 2.3% All Other 2.3% Tooling 1.3% Inventory Variances 2.2% Total 14.5% Total 17.0% Cost of Sale
Slide 31: Condensed Consolidated Cash Flows
Condensed Consolidated Cash Flows (Thousands of Dollars) Year Ended December 27, December 29, 2020 2019 Cash Flows from Operating Activities: Net Earnings $ 225,441 $ 520,454 Non-Cash Pension Charge - 110,962 Other Non-Cash Adjustments 811,031 225,276 Changes in Operating Assets and Liabilities (60,
Slide 32: Pro Forma Segment Results
PRO FORMA SEGMENT RESULTS (Unaudited) SUPPLEMENTAL FINANCIAL DATA (Thousands of Dollars) For comparability, the quarter and year ended December 29, 2019 include the pro forma results for the eOne Segment. See "Reconciliation of 2019 As Reported to Pro Forma Results" for the pro forma adjustments. Qu
Slide 33: Pro Forma Segment Results: Net Revenues by Brand Portfolio
SUPPLEMENTAL FINANCIAL DATA PRO FORMA SEGMENT RESULTS (Unaudited) (Thousands of Dollars) For comparability, the quarter and full year ended December 29, 2019 include the pro forma results for the eOne Segment. See "Reconciliation of 2019 As Reported to Pro Forma Results" for the pro forma adjustment
Slide 34: Reconciliation of As Reported to Pro Forma Adjusted Operating Results
SUPPLEMENTAL FINANCIAL DATA RECONCILIATION OF AS REPORTED TO PRO FORMA ADJUSTED OPERATING RESULTS (Unaudited) (Thousands of Dollars) For comparability, the quarter and full year ended December 29, 2019 include the pro forma results for the eOne Segment. See "Reconciliation of 2019 As Reported to Pro
Slide 35: Reconciliation to Pro Forma Adjusted Operating Results Q4 2020
SUPPLEMENTAL FINANCIAL DATA RECONCILIATION OF AS REPORTED TO PRO FORMA ADJUSTED OPERATING RESULTS Q4 2020 (Thousands of Dollars) (Unaudited) For comparability, the quarter ended December 29, 2019 include the pro forma results for the eOne Segment. See "Reconciliation of 2019 As Reported to Pro Forma
Slide 36: Reconciliation to Pro Forma Adjusted Operating Results FY 2020
SUPPLEMENTAL FINANCIAL DATA RECONCILIATION OF AS REPORTED TO PRO FORMA ADJUSTED OPERATING RESULTS FY 2020 (Unaudited) (Thousands of Dollars) For comparability, the full year ended December 29, 2019 include the pro forma results for the eOne Segment. See "Reconciliation of 2019 As Reported to Pro For
Slide 37: Reconciliation of 2019 As Reported to Pro Forma Results (Quarter)
SUPPLEMENTAL FINANCIAL DATA RECONCILIATION OF 2019 AS REPORTED TO PRO FORMA RESULTS (Unaudited) (Thousands of Dollars) Pro forma results were prepared by combining the results of Hasbro and eOne for the quarter ended December 29, 2019, after giving effect to the eOne Acquisition as if it had been co
Slide 38: Reconciliation of 2019 As Reported to Pro Forma Results (Full Year)
SUPPLEMENTAL FINANCIAL DATA RECONCILIATION OF 2019 AS REPORTED TO PRO FORMA RESULTS (Unaudited) (Thousands of Dollars) Pro forma results were prepared by combining the results of Hasbro and eOne for the full year ended December 29, 2019, after giving effect to the eOne Acquisition as if it had been
Slide 39: Reconciliation of Non-GAAP Financial Measures: Net Earnings and EPS
SUPPLEMENTAL FINANCIAL DATA RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited) Thousands of Dollars & Shares, Except Per Share Data For comparability, the quarter and full year ended December 29, 2019 includes the pro forma results for the eOne Segment. See "Reconciliation of 2019 As Reported
Slide 40: Reconciliation of EBITDA
SUPPLEMENTAL FINANCIAL DATA RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited) Thousands of Dollars & Shares, Except Per Share Data For comparability, the quarter and full year ended December 29, 2019 includes the pro forma results for the eOne Segment. See "Reconciliation of 2019 As Reported
Slide 41: eOne FY2019 Results of Operations
SUPPLEMENTAL FINANCIAL DATA eOne - FY2019 RESULTS OF OPERATIONS (AS REPORTED UNDER US GAAP) (Unaudited) (Thousands of Dollars) Quarter Ended Year Ended March 2019 June 2019 September 2019 December 2019 December 2019 (1) Net Revenues $ 466,212 $ 231,091 $ 283,310 $ 235,160 $ 1,215,773 Costs and Expen
Slide 42: eOne FY2019 Results of Operations
SUPPLEMENTAL FINANCIAL DATA eOne - FY2019 RESULTS OF OPERATIONS (AS REPORTED UNDER US GAAP) (Unaudited) (Thousands of Dollars) 42 42