Hasbro 2006 Annual Report Download - page 2

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Financial Highlights
The discussion set forth in the following letter to our shareholders and in the annual report that follows it contains forward-
looking statements concerning our expectations and beliefs, including, without limitation, expectations regarding our business
plans, product introductions, revenues, earnings and uses of funds. See the discussion of uncertainties, risks and assumptions
associated with these statements in Item 1A of our enclosed annual report on Form 10-K, under the heading, “Forward-Looking
Information and Risk Factors that May Affect Future Results.”
2002200320042005
2006
(Thousands of Dollars and Shares Except Per Share Data)
For The Year
Net revenues $ 3,151,481 3,087,627 2,997,510 3,138,657 2,816,230
Operating profi t $ 376,363 310,521 293,012 344,616 219,291
Net earnings (loss) $ 230,055 212,075 195,977 157,664 (170,674)
EBITDA
Earnings before cumulative
effect of accounting change $ 230,055 212,075 195,977 175,015 75,058
Interest expense $ 27,521 30,537 31,698 52,462 77,499
Income taxe s $ 111,419 98,838 64,111 69,0 49 29,030
Depreciation and amortization $ 146,707 180,132 146,180 164,123 183,838
EBITDA (1) $ 515,702 521,582 437,966 460,649 365,425
Cash provided by operating activities $ 320,647 496,624 358,506 454,155 473,139
Cash utilized by investing activities $ 83,604 120,671 84,967 64,879 62,314
Weighted average number of
common shares outstanding
Basic 167,100 178,303 176,540 173,748 172,720
Diluted 181,043 197,436 196,048 190,058 185,062
Per Common Share
Net earnings before cumulative
effect of accounting change
Basic $ 1.38 1.19 1.11 1.01 .43
Diluted $ 1.29 1.09 .96 .94 .43
Cash dividends declared $ .48 .36 .24 .12 .12
Shareholders’ equity $ 9.57 9.69 9.25 8.01 6.88
At Year End
Shareholders’ equity $ 1,537,890 1,723,476 1,639,724 1,405,240 1,191,366
Total assets $ 3,096,905 3,301,143 3,240,660 3,163,376 3,142,881
Long-term debt, including
current portions $ 494,917 528,389 626,822 688,204 1,059,115
Debt to capitalization ratio 25% 24% 28% 34% 48%
(1) EBITDA (earnings before interest, taxes, depreciation and amortization) represents net earnings (loss) before cumulative effect of accounting change, excluding
interest expense, income taxes, depreciation and amortization. Management believes that EBITDA is one of the appropriate measures for evaluating the operating
performance of the Company because it refl ects 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 fi nancial performance prepared in accordance with GAAP as more fully discussed in the Company’s fi nancial statements and fi lings with the
SEC. As used herein, “GAAP” refers to accounting principles generally accepted in the United States of America. See Management’s Discussion and Analysis
of Financial Condition and Results of Operations in the enclosed annual report for a detailed discussion of the Company’s business.