Hasbro, Inc. (HAS) has reported a 9.65 percent rise in profit for the quarter ended Dec. 25, 2016. The company has earned $192.72 million, or $1.52 a share in the quarter, compared with $175.76 million, or $1.39 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $207.40 million, or $1.64 a share compared with $175.93 million or $1.39 a share, a year ago.
Revenue during the quarter grew 11.23 percent to $1,629.94 million from $1,465.35 million in the previous year period. Gross margin for the quarter contracted 107 basis points over the previous year period to 61.07 percent. Total expenses were 84.35 percent of quarterly revenues, up from 82.35 percent for the same period last year. That has resulted in a contraction of 200 basis points in operating margin to 15.65 percent.
Operating income for the quarter was $255.16 million, compared with $258.70 million in the previous year period.
"Hasbro's global team delivered a tremendous 2016. We reached the $5 billion revenue mark for the first time in company history, we improved profitability and we invested to grow Hasbro over the long-term while increasing our dividend and share repurchase levels," said Brian Goldner, Hasbro's chairman, president and chief executive officer. "Hasbro’s foresight to build brands led by storytelling, consumer insights and innovation, combined with the relentless execution of our Brand Blueprint including investments in entertainment and digital gaming, is driving our business and creating long-term strategic differentiators for Hasbro. We are well positioned for a successful 2017 and the continued advancement of Hasbro’s brand-building capabilities for years to come."
Operating cash flow improves significantly
Hasbro, Inc. has generated cash of $774.87 million from operating activities during the year, up 40.26 percent or $222.43 million, when compared with the last year.
The company has spent $138.39 million cash to meet investing activities during the year as against cash outgo of $103.65 million in the last year.
The company has spent $333.06 million cash to carry out financing activities during the year as against cash outgo of $346.46 million in the last year period.
Cash and cash equivalents stood at $1,282.28 million as on Dec. 25, 2016, up 31.28 percent or $305.54 million from $976.75 million on Dec. 27, 2015.
Working capital declines
Hasbro, Inc. has witnessed a decline in the working capital over the last year. It stood at $1,609.75 million as at Dec. 25, 2016, down 10.62 percent or $191.20 million from $1,800.95 million on Dec. 27, 2015. Current ratio was at 1.99 as on Dec. 25, 2016, down from 2.69 on Dec. 27, 2015.
Debt remains almost stable
Hasbro, Inc. has witnessed an increase in total debt over the last one year. It stood at $1,720.97 million as on Dec. 25, 2016, up 0.54 percent or $9.30 million from $1,711.68 million on Dec. 27, 2015. Total debt was 33.80 percent of total assets as on Dec. 25, 2016, compared with 36.26 percent on Dec. 27, 2015. Debt to equity ratio was at 0.92 as on Dec. 25, 2016, down from 1.03 as on Dec. 27, 2015. Interest coverage ratio deteriorated to 10.15 for the quarter from 10.64 for the same period last year.
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