• Net revenues of $766.3 million for the second quarter 2013 versus $811.5 million for the second quarter 2012;
• Operating profit of $76.6 million in the second quarter 2013, or 10.0% of revenues, excluding $2.5 million of pre-tax partial pension settlement charges associated with restructuring actions, versus $86.3 million, or 10.6% of revenues, in the second quarter 2012;
• Net earnings of $38.3 million or $0.29 per diluted share, excluding the pension charges of $0.01 per diluted share, compared to $43.4 million, or $0.33 per diluted share in 2012;
• Revenues for Games up 19%; Girls up 43%; and Preschool up 4% in the quarter;
• Growth across vast majority of Franchise Brands including MY LITTLE PONY, MAGIC: THE GATHERING, PLAY-DOH, NERF and MONOPOLY.

PAWTUCKET, R.I.--(BUSINESS WIRE)-- Hasbro, Inc. (NASDAQ: HAS) today reported financial results for the second quarter 2013. Net revenues for the quarter were $766.3 million, a 6% decline compared to $811.5 million in 2012. Second quarter 2013 net revenues include a favorable $1.0 million impact of foreign exchange.

As adjusted, net earnings for the second quarter 2013 were $38.3 million, or $0.29 per diluted share, compared to $43.4 million, or $0.33 per diluted share in 2012. This excludes pre-tax partial pension settlement charges of $2.5 million, or $0.01 per diluted share, associated with previously disclosed restructuring actions. Second quarter 2013 net earnings were $36.5 million, or $0.28 per diluted share, as reported.

"Through our global brand building efforts, we are taking steps to drive long-term profitable growth across our brand portfolio," said Brian Goldner, Hasbro's President and Chief Executive Officer. "In the second quarter, this resulted in growth in our Girls, Games, and Preschool categories. This growth, however, did not offset the decline in our Boys revenues, which faced difficult comparisons due to major motion pictures in 2012. As we enter the second half of the year, we have innovative brand initiatives across categories and geographies, including NERF REBELLE, FURBY BOOM, MY LITTLE PONY EQUESTRIA GIRLS, TELEPODS for ANGRY BIRDS STAR WARS II and TRANSFORMERS CONSTRUCT-BOTS."

"Across our business, we are increasing our focus on our most important initiatives while right sizing our cost base," continued Goldner. "We have expanded our digital gaming capabilities with the acquisition of 70% of Backflip Studios, a profitable mobile game studio. Importantly, we are developing comprehensive and innovative lines for both film and television entertainment in the coming years, including TRANSFORMERS 4 in 2014 as well as MARVEL and STAR WARS entertainment from Disney in 2014, 2015 and beyond."

Second Quarter 2013 Major Segment Performance

			Net Revenues ($ Millions)									Operating Profit ($ Millions)
			Q2 2013			Q2 2012			% Change			Q2 2013			Q2 2012			% Change
U.S. and Canada			$389.2			$406.6			-4%			$59.0			$60.9			-3%
International			$340.2			$360.5			-6%			$14.8			$29.9			-50%
Entertainment and Licensing			$35.3			$43.2			-18%			$3.7			$8.2			-55%

Note: Second quarter 2013 pension charges are in Corporate and Eliminations. See attached table: Supplemental Financial Data, Restructuring Charges.

U.S. and Canada segment net revenues were $389.2 million compared to $406.6 million in 2012. The results reflect growth in the Games, Girls and Preschool categories. The U.S. and Canada segment reported operating profit of $59.0 million compared to $60.9 million in 2012.

International segment net revenues were $340.2 million compared to $360.5 million in 2012. Net revenues in the International segment include a favorable $1.2 million impact of foreign exchange. Revenues in the International segment reflect growth in emerging markets as well as the Games, Girls and Preschool categories. The International segment reported operating profit of $14.8 million compared to $29.9 million in 2012.

Entertainment and Licensing segment net revenues were $35.3 million compared to $43.2 million in 2012. Second quarter 2012 revenues reflected a higher mix of revenues from television programming sales for digital distribution. The Entertainment and Licensing segment reported an operating profit of $3.7 million compared to $8.2 million in 2012.

Second Quarter 2013 Product Category Performance

			Net Revenues ($ Millions)
			Q2 2013			Q2 2012			% Change
Boys			$253.7			$389.1			-35%
Games			$255.4			$214.8			+19%
Girls			$149.4			$104.2			+43%
Preschool			$107.8			$103.4			+4%

For the second quarter 2013, net revenues in the Boys category decreased 35% to $253.7 million. NERF was up in the quarter; however, several brands, including MARVEL and BEYBLADE, faced difficult comparisons with the second quarter 2012.

The Games category posted its third consecutive quarter of growth, increasing revenues 19% in the second quarter 2013 versus last year. Both of our Games Franchise Brands, MAGIC: THE GATHERING and MONOPOLY, were up in the quarter. Additionally, many other Games brands grew including TWISTER, JENGA and the ELEFUN & FRIENDS collection.

The Girls category posted its fourth straight quarter of growth, increasing 43% in the quarter. FURBY and MY LITTLE PONY were the primary contributors to the strong year-over-year growth.

The Preschool category also grew in the second quarter, increasing 4% to $107.8 million. PLAY-DOH, PLAYSKOOL HEROES, led by TRANSFORMERS RESCUE BOTS, and SESAME STREET products all grew in the quarter.

Cost Savings Initiative

As previously announced, the Company is undertaking a cost savings initiative designed to better align resources and costs while targeting $100 million in annual savings by 2015.

During the second quarter 2013, the Company incurred $2.5 million in pre-tax partial pension settlement charges, or $0.01 per diluted share, associated with this initiative. Potential additional pension settlement charges could be as much as $8 million dependent on the amount and type of benefit payments pension participants request during the remainder of 2013. The Company did not record any additional restructuring charges during the second quarter, but continues to expect full-year charges of $30 to $35 million, prior to pension charges. In the first quarter 2013, the Company recorded $28.9 million in restructuring charges.

The expectation for gross savings for 2013 continues to be $45 to $48 million, resulting in expected net savings of $13 to $15 million for the full-year, prior to pension charges.

Dividend and Share Repurchase

On May 23, 2013, Hasbro declared a quarterly cash dividend of $0.40 per common share. The dividend will be payable on August 15, 2013 to shareholders of record at the close of business on August 1, 2013. Year-to-date, the Company has paid $52.1 million in cash dividends to shareholders.

During the second quarter 2013, the Company repurchased a total of 771,211 shares of common stock at a total cost of $35.4 million and an average price of $45.82 per share. At quarter end, the Company had repurchased a total of 1.29 million shares of common stock year-to-date and $71.8 million remained available in the current share repurchase authorization.

Hasbro will webcast its second quarter 2013 earnings conference call at 8:30 a.m. Eastern Time today. To listen to the live webcast, please go to http://investor.hasbro.com. The replay of the call will be available on Hasbro's web site approximately 2 hours following completion of the call. Additionally, presentation slides associated with today's conference call are available on Hasbro's website at http://investor.hasbro.com.

About Hasbro, Inc.

Hasbro, Inc. (NASDAQ: HAS) is a branded play company dedicated to fulfilling the fundamental need for play for children and families through the creative expression of the Company's world class brand portfolio, including TRANSFORMERS, MONOPOLY, PLAY-DOH, MY LITTLE PONY, MAGIC: THE GATHERING, NERF and LITTLEST PET SHOP. From toys and games, to television programming, motion pictures, digital gaming and a comprehensive licensing program, Hasbro strives to delight its global customers with innovative play and entertainment experiences, in a variety of forms and formats, anytime and anywhere. The Company's Hasbro Studios develops and produces television programming for more than 170 markets around the world, and for the U.S. on Hub Network, part of a multi-platform joint venture between Hasbro and Discovery Communications (NASDAQ: DISCA, DISCB, DISCK). Through the Company's deep commitment to corporate social responsibility, including philanthropy, Hasbro is helping to build a safe and sustainable world for future generations and to positively impact the lives of millions of children and families every year. It has been recognized for its efforts by being named one of the "World's Most Ethical Companies" and is ranked as one of Corporate Responsibility Magazine's "100 Best Corporate Citizens." Learn more at www.hasbro.com.

© 2013 Hasbro, Inc. All Rights Reserved.

HAS-E

Certain statements in this release contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include expectations concerning the Company's potential performance in the future, including with respect to its planned cost savings initiative and profitability, and the Company's ability to achieve its other financial and business goals and may be identified by the use of forward-looking words or phrases. The Company's actual actions or results may differ materially from those expected or anticipated in the forward-looking statements due to both known and unknown risks and uncertainties. Specific factors that might cause such a difference include, but are not limited to: (i) the Company's ability to design, develop, produce, manufacture, source and ship new and continuing products on a timely and cost-effective basis, as well as interest in and purchase of those products by retail customers and consumers in quantities and at prices that will be sufficient to profitably recover the Company's development, manufacturing, marketing, royalty and other costs; (ii) global economic conditions, including recessions, credit crises or other economic shocks or downturns affecting the United States, Europe or any of the Company's other markets which can negatively impact the retail and/or credit markets, the financial health of the Company's retail customers and consumers, and consumer and business confidence, and which can result in lower employment levels, less consumer disposable income, and lower consumer spending, including lower spending on purchases of the Company's products; (iii) other factors which can lower discretionary consumer spending, such as higher costs for fuel and food, drops in the value of homes or other consumer assets, and high levels of consumer debt; (iv) potential difficulties or delays the Company may experience in implementing cost savings and efficiency enhancing initiatives in an effective manner; (v) other economic and public health conditions in the markets in which the Company and its customers and suppliers operate which impact the Company's ability and cost to manufacture and deliver products, such as higher fuel and other commodity prices, higher labor costs, higher transportation costs, outbreaks of disease which affect public health and the movement of people and goods, and other factors, including government regulations, which can create potential manufacturing and transportation delays or impact costs; (vi) currency fluctuations, including movements in foreign exchange rates, which can lower the Company's net revenues and earnings, and significantly impact the Company's costs; (vii) the concentration of the Company's customers, potentially increasing the negative impact to the Company of difficulties experienced by any of the Company's customers or changes by the Company's customers in their purchasing or selling patterns; (viii) greater than expected costs, or unexpected delays or difficulties, associated with The Hub TV Network, the Company's joint venture television network with Discovery Communications, LLC, Hasbro Studios, or the creation of new content to appear on The Hub TV Network and elsewhere; (ix) consumer interest in and acceptance of The Hub TV Network, and programming created by Hasbro Studios, and other factors impacting the financial performance of the network and Hasbro Studios; (x) the inventory policies of the Company's retail customers, including retailers' potential decisions to lower the inventories they are willing to carry, even if it results in lost sales, as well as the concentration of the Company's revenues in the second half and fourth quarter of the year, which coupled with reliance by retailers on quick response inventory management techniques increases the risk of underproduction of popular items, overproduction of less popular items and failure to achieve tight and compressed shipping schedules; (xi) delays, increased costs or difficulties associated with any of our planned media initiatives; (xii) work stoppages, slowdowns or strikes, which may impact the Company's ability to manufacture or deliver product in a timely and cost-effective manner; (xiii) the bankruptcy or other lack of success of one of the Company's significant retailers which could negatively impact the Company's revenues or bad debt exposure; (xiv) the impact of competition on revenues, margins and other aspects of the Company's business, including the ability to secure, maintain and renew popular licenses and the ability to attract and retain talented employees in a competitive environment; (xv) concentration of manufacturing for many of the Company's products in the People's Republic of China and the associated impact to the Company of public health conditions and other factors affecting social and economic activity in China, affecting the movement of products into and out of China, and impacting the cost of producing products in China and exporting them to other countries; (xvi) the risk of product recalls or product liability suits and costs associated with product safety regulations; (xvii) other market conditions, third party actions or approvals and the impact of competition which could reduce demand for the Company's products or delay or increase the cost of implementation of the Company's programs or alter the Company's actions and reduce actual results; and (xviii) other risks and uncertainties as may be detailed from time to time in the Company's public announcements and Securities and Exchange Commission ("SEC") filings. The Company undertakes no obligation to make any revisions to the forward-looking statements contained in this release or to update them to reflect events or circumstances occurring after the date of this release.

This press release includes a non-GAAP financial measure as defined under SEC rules, specifically EBITDA. EBITDA represents net earnings excluding interest expense, income taxes, depreciation and amortization. As required by SEC rules, we have provided reconciliation on the attached schedule of this measure to the most directly comparable GAAP measure. Management believes that EBITDA is one of the appropriate measures for evaluating the operating performance of the Company because it reflects the resources available for strategic opportunities including, among others, to invest in the business, strengthen the balance sheet, and make strategic acquisitions. However, this measure should be considered in addition to, not as a substitute for, or superior to, net earnings or other measures of financial performance prepared in accordance with GAAP as more fully discussed in the Company's financial statements and filings with the SEC. As used herein, "GAAP" refers to accounting principles generally accepted in the United States of America.

This press release also includes the Company's 2013 and 2012 costs and expenses, operating profit, net earnings and diluted earnings per share excluding the impact of restructuring charges. Management believes that presenting this data excluding these charges assists investors understanding of the underlying performance of the results of operations.

HASBRO, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Thousands of Dollars)
					June 30, 2013			July 1, 2012
ASSETS
Cash and Cash Equivalents					$	1,022,345		$	779,931
Accounts Receivable, Net						640,503			651,410
Inventories						359,969			416,905
Other Current Assets						343,385			297,580
Total Current Assets						2,366,202			2,145,826
Property, Plant and Equipment, Net						237,774			223,383
Other Assets						1,574,323			1,645,512
Total Assets					$	4,178,299		$	4,014,721
LIABILITIES AND SHAREHOLDERS' EQUITY
Short-term Borrowings					$	192,918		$	220,605
Current Portion of Long-term Debt						432,458			-
Payables and Accrued Liabilities						671,346			618,088
Total Current Liabilities						1,296,722			838,693
Long-term Debt						959,895			1,399,557
Other Liabilities						465,656			376,981
Total Liabilities						2,722,273			2,615,231
Total Shareholders' Equity						1,456,026			1,399,490
Total Liabilities and Shareholders' Equity					$	4,178,299		$	4,014,721

HASBRO, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
					Quarter Ended												Six Months Ended
(Thousands of Dollars and Shares Except Per Share Data)					June 30, 2013			% Net Revenues			July 1, 2012			% Net Revenues			June 30, 2013			% Net Revenues			July 1, 2012			% Net Revenues
Net Revenues					$	766,342		100.0	%		$	811,467		100.0	%		$	1,430,036		100.0	%		$	1,460,317		100.0	%
Costs and Expenses:
Cost of Sales						300,570		39.2	%			311,984		38.5	%			568,142		39.7	%			569,020		39.0	%
Royalties						50,229		6.6	%			70,893		8.7	%			99,621		7.0	%			123,327		8.4	%
Product Development						47,904		6.2	%			50,113		6.2	%			95,089		6.6	%			95,039		6.5	%
Advertising						73,657		9.6	%			79,297		9.8	%			140,791		9.9	%			144,342		9.9	%
Amortization of Intangibles						12,037		1.6	%			11,501		1.4	%			23,453		1.7	%			22,156		1.5	%
Program Production Cost Amortization						10,309		1.3	%			10,018		1.2	%			16,032		1.1	%			13,156		0.9	%
Selling, Distribution and Administration						197,548		25.8	%			191,379		23.6	%			402,193		28.1	%			391,269		26.8	%
Operating Profit						74,088		9.7	%			86,282		10.6	%			84,715		5.9	%			102,008		7.0	%
Interest Expense						22,225		2.9	%			22,413		2.7	%			45,204		3.2	%			45,525		3.1	%
Other (Income) Expense, Net						787		0.1	%			4,210		0.5	%			4,928		0.3	%			1,690		0.1	%
Earnings before Income Taxes						51,076		6.7	%			59,659		7.4	%			34,583		2.4	%			54,793		3.8	%
Income Taxes						14,596		1.9	%			16,232		2.0	%			4,774		0.3	%			13,945		1.0	%
Net Earnings					$	36,480		4.8	%		$	43,427		5.4	%		$	29,809		2.1	%		$	40,848		2.8	%
Per Common Share
	Net Earnings
		Basic			$	0.28					$	0.33					$	0.23					$	0.31
		Diluted			$	0.28					$	0.33					$	0.23					$	0.31
	Cash Dividends Declared				$	0.40					$	0.36					$	0.80					$	0.72
Weighted Average Number of Shares
	Basic					130,323						130,294						129,831						129,918
	Diluted					131,980						132,118						131,437						131,825

HASBRO, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Thousands of Dollars)
		Six Months Ended
		June 30, 2013						July 1, 2012
Cash Flows from Operating Activities:
Net Earnings		$	29,809					$	40,848
Non-cash Adjustments			85,305						92,520
Changes in Operating Assets and Liabilities			183,022						67,413
Net Cash Provided by Operating Activities			298,136						200,781
Cash Flows from Investing Activities:
Additions to Property, Plant and Equipment			(53,555	)					(50,084	)
Other			4,459						5,941
Net Cash Utilized by Investing Activities			(49,096	)					(44,143	)
Cash Flows from Financing Activities:
Net (Repayments) Proceeds from Short-term Borrowings			(31,147	)					39,756
Purchases of Common Stock			(55,932	)					(9,926	)
Stock-based Compensation Transactions			72,065						41,402
Dividends Paid			(52,125	)					(85,317	)
Net Cash Utilized by Financing Activities			(67,139	)					(14,085	)
Effect of Exchange Rate Changes on Cash			(9,257	)					(4,310	)
Cash and Cash Equivalents at Beginning of Year			849,701						641,688
Cash and Cash Equivalents at End of Period		$	1,022,345					$	779,931

HASBRO, INC.
SUPPLEMENTAL FINANCIAL DATA
(Unaudited)
(Thousands of Dollars)					Quarter Ended											Six Months Ended
					June 30, 2013				July 1, 2012				% Change			June 30, 2013				July 1, 2012				% Change
Major Segment Results
U.S. and Canada Segment:
External Net Revenues					$	389,243			$	406,588			-4	%		$	731,302			$	735,573			-1	%
Operating Profit						59,004				60,928			-3	%			96,747				75,339			28	%
Operating Margin						15.2	%			15.0	%						13.2	%			10.2	%
International Segment:
External Net Revenues						340,176				360,493			-6	%			629,989				650,222			-3	%
Operating Profit						14,793				29,851			-50	%			10,288				24,767			-58	%
Operating Margin						4.3	%			8.3	%						1.6	%			3.8	%
Entertainment and Licensing Segment:
External Net Revenues						35,336				43,216			-18	%			66,110				72,552			-9	%
Operating Profit						3,712				8,192			-55	%			8,997				15,930			-44	%
Operating Margin						10.5	%			19.0	%						13.6	%			22.0	%
Net Revenues by Product Category
Boys					$	253,684			$	389,062			-35	%		$	496,480			$	691,821			-28	%
Games						255,409				214,842			19	%			486,324				397,758			22	%
Girls						149,419				104,191			43	%			264,193				197,427			34	%
Preschool						107,830				103,372			4	%			183,039				173,311			6	%
	Total Net Revenues				$	766,342			$	811,467						$	1,430,036			$	1,460,317
International Segment Net Revenues by Major Geographic Region
Europe					$	185,860			$	198,153			-6	%		$	378,449			$	406,266			-7	%
Latin America						82,816				82,779			0	%			128,529				121,748			6	%
Asia Pacific						71,500				79,561			-10	%			123,011				122,208			1	%
	Total				$	340,176			$	360,493						$	629,989			$	650,222
Reconciliation of EBITDA
Net Earnings					$	36,480			$	43,427						$	29,809			$	40,848
Interest Expense						22,225				22,413							45,204				45,525
Income Taxes						14,596				16,232							4,774				13,945
Depreciation						23,830				24,431							43,181				43,739
Amortization of Intangibles						12,037				11,501							23,453				22,156
	EBITDA				$	109,168			$	118,004						$	146,421			$	166,213

HASBRO, INC.
SUPPLEMENTAL FINANCIAL DATA
RESTRUCTURING CHARGES
(Unaudited)
(Thousands of Dollars)
Operating Profit, Excluding Restructuring
Quarter Ended June 30, 2013			As Reported			Less Restructuring				Excluding Restructuring			% Net Revenues
Net Revenues			$	766,342		$	-			$	766,342			100.0	%
Costs and Expenses:
Cost of Sales				300,570			-				300,570			39.2	%
Royalties				50,229			-				50,229			6.6	%
Product Development				47,904			-				47,904			6.2	%
Advertising				73,657			-				73,657			9.6	%
Amortization of Intangibles				12,037			-				12,037			1.6	%
Program Production Cost Amortization				10,309			-				10,309			1.3	%
Selling, Distribution and Administration				197,548			(2,462	)			195,086			25.5	%
Operating Profit			$	74,088		$	(2,462	)		$	76,550			10.0	%
Six Months Ended June 30, 2013			As Reported			Less Restructuring				Excluding Restructuring			% Net Revenues
Net Revenues			$	1,430,036		$	-			$	1,430,036			100.0	%
Costs and Expenses:
Cost of Sales				568,142			(8,493	)			559,649			39.1	%
Royalties				99,621			-				99,621			7.0	%
Product Development				95,089			(3,515	)			91,574			6.4	%
Advertising				140,791			-				140,791			9.9	%
Amortization of Intangibles				23,453			-				23,453			1.7	%
Program Production Cost Amortization				16,032			-				16,032			1.1	%
Selling, Distribution and Administration				402,193			(19,380	)			382,813			26.7	%
Operating Profit			$	84,715		$	(31,388	)		$	116,103			8.1	%
Six Months Ended July 1, 2012			As Reported			Less Restructuring				Excluding Restructuring			% Net Revenues
Net Revenues			$	1,460,317		$	-			$	1,460,317			100.0	%
Costs and Expenses:
Cost of Sales				569,020			(2,764	)			566,256			38.8	%
Royalties				123,327			-				123,327			8.4	%
Product Development				95,039			(2,479	)			92,560			6.4	%
Advertising				144,342			-				144,342			9.9	%
Amortization of Intangibles				22,156			-				22,156			1.5	%
Program Production Cost Amortization				13,156			-				13,156			0.9	%
Selling, Distribution and Administration				391,269			(5,887	)			385,382			26.4	%
Operating Profit			$	102,008		$	(11,130	)		$	113,138			7.7	%
NOTE: There were no restructuring charges included in the reported amounts for the quarter ended July 1, 2012.
Net Earnings and Earnings per Share Excluding Restructuring Charges
			Quarter Ended
			June 30, 2013			Diluted Per Share Amount				July 1, 2012			Diluted Per Share Amount
Net Earnings, as Reported			$	36,480		$	0.28			$	43,427		$	0.33
Restructuring Charges, Net of Tax				1,790			0.01				-			-
Net Earnings, as Adjusted			$	38,270		$	0.29			$	43,427		$	0.33
			Six Months Ended
			June 30, 2013			Diluted Per Share Amount				July 1, 2012			Diluted Per Share Amount
Net Earnings, as Reported			$	29,809		$	0.23			$	40,848		$	0.31
Restructuring Charges, Net of Tax				20,567			0.16				7,675			0.06
Net Earnings, as Adjusted			$	50,376		$	0.39			$	48,523		$	0.37
			Quarter Ended							Six Months Ended
Restructuring Charges - by Segment			June 30, 2013			July 1, 2012				June 30, 2013			July 1, 2012
U.S. and Canada Segment			$	-		$	-			$	-		$	2,444
International Segment				-			-				-			1,628
Entertainment and Licensing Segment				-			-				1,729			555
Global Operations Segment				-			-				-			4,307
Corporate and Eliminations				2,462			-				29,659			2,196
Total Restructuring Charges			$	2,462		$	-			$	31,388		$	11,130

Hasbro, Inc.
Debbie Hancock, 401-727-5401
(Investor Relations)
or
Wayne Charness, 401-727-5983
(News Media)

Source: Hasbro, Inc.

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