November 1998
I NEWSLETTER . (L i ····, . •\jt.t
Treasurer's Report
;Jlil:'
·. by Greg Leitner No,·embe~, 1998
What a nice day we had on October 9th, 1998. It was 70 degrees and sunny, and it also happened to be the day of our October ATARI Club meeting. Well, I guess a lot of our members took advantage of the great weather and decided to forego the meeting. We had eight members present for the meeting and I was a little disappointed since this was the meeting that we were going to ask for nominations for our November elections. I guess I must have scared a lot of you away. The only nomination we got was for the Secretary's position and tliat was from Mike Current. He will be challenging Brian Little for that position. TI1e other positions are either open or unopposed. Please come to tl1e meeting in November so that we can fulfill our duty to elect our officers. I think we would all want to have our paying members present to vote. With that said, I am very pleased to armounce tl1at we had three membership renewals in October and we also sold five DOM's. Our receipts totaled $80.00. The expenses for the month were for the Newsletter and tl1e room rental. TI1e amounts are $9.20 and $195.00 respectively, and tllis means that our Treasury dropped about $125.00 for the month to $826.03. This is still a very encouraging balance in that we have now paid almost $600.00 in room rental fees tllis year. Witl1 the next big expense not coming now until January I 999, we have a great opportunity to increase our treasury in the upcoming two months. One of the ways we are going to do this is with another Club Auction. This will take place next month at our November meeting, right after the meeting and elections. We had an old ST member drop by at the end of the October meeting and he may be brining some 8-Bit stuff for the Auction. I already have a couple of other donations for the Auction and I know we will have much more. You don' t want to nliss this because you never know if that one tlling that you could never find before just might show up at this Auction. So there. Also, don' t forget tllat we need to make plans for the December Xmas party. A pot luck will probably mle but the Club is in a Financial position to contribute something to the party if the members so decide. If you want your vote cotmted and your decisions counted you have to show up for the meeting next month. See you all there.
Secretary's Report by Brian Little November, 1998
No Minutes From The Secretary This Month, He did not make the Meeting.
November, 1998 Subj: Hasbro Reports Record Third Quarter Revenues Date: 98-10-24 18:09:18 EDT PAWTUCKET, R.1.--(BUSINESS WIRE)--Oct. 15, 1998-Hasbro, Inc. (ASE:HAS) today reported third quarter results consistent with its September 28, 1998 announcement regarding the impact of ongoing and recently accelerated changes in inventory flow policies at Toys 'R Us. "We are very pleased to report record third quarter revenues despite iower sales to this key customer," said Alan G. Hassenfeld. Chairman and Chief ExecutiYe Officer. Reported net revenues reached $945.5 million, or approximately 3% above the $915.5 million reported last year, in part due to the acquisition of Tiger Electronics in April and increased sales at Hasbro Interactive. As previously announced, the Company took a one-time pre-tax charge to write-off acquired in-process research and development of MicroProse, Inc., which was acquired for approximately $70 million in September 1998. Prior to this $20.0 million pre-tax charge ($13.6 million after tax), net earnings and diluted earnings per share were $7-l.9 million and $0.55, respectively, compared to $77.-l million and $0.57, respectively, a year ago. Including the charge, net earnings were $61.3 million and diluted earnings per share were $0.45. " In addition to revenue gro,,1h this quarter, we are also very pleased about two acquisitions that will fuel future gro"1h in revenue and earnings well into the next century. The acquisition ofMicroProse significantly enhances Hasbro Interactive in three key strategic growth areas going forward: brands and content, R&D assets, and European di~tribution." Hassenfeld added. "In addition, the pending acquisition of Galoob Toys, with its highly successful MICRO MACIDNES and STAR WARS small-scale figures and vehicles, will be a tremendous addition to our rich brand portfolio," Hassenfeld continued. For the first nine months of 1998, revenues were $2.0 billion compared to $2.1 billion in 1997. Excluding the one-time charge, net earnings and diluted earnings per share were $88.2 million and $0.64, respectively, compared to $116.1 million and $0.87 a year ago. Including the charge, net earnings were $74.6 million and diluted earnings per share were $0.54. During the third quarter, the Company invested $65 million to repurchase 1.8 million shares. Under the $500 million share repurchase authorization announced on December 9, 1997, the Company has invested approximately $185 million to repurchase 5.1 million shares.
CONSOLIDATED STATEMENTS OF EARNINGS "Looking ahead to the fourth quarter, we continue building sales and earnings momentum in seyeral product lines," Hassenfeld noted. ''These include Tiger Electronics' FURBY - an electronic interactive pet being introduced nationwide to great acdaim; TELETUBBIES: new releases from Hasbro Interactive and MicroProse - including our CD-ROM version of the ATARI game classic, CENTIPEDE, and our first Nintendo 64 game title, GLOVER: as well as a range of POKEMON offerings. Building excitement for 1999, we are shipping the first new product from STAR WARS Episode One - a MACE WINDU exclusiYe mail-in figure offer and a STAP , ·ehicle with BATTLE DROID figure. In 1999, we look forward to a tremendous product line-up, led by STAR WARS. with Hasbro and Galoob teaming up with the Power of the Force. We are also on track to realize planned incremental cost savings from the Global Integration and Profit Enhancement Program next year, enabling us to continue to add value for our shareholders," Hassenfeld concluded.
Q.erterEnbi Nire.MoolmEnbi
(Ihmnrlscfil)(]aisarxiSrnres~PerS!me!Ma) ~Tl, ~28, ~Tl. ~28, 1998
NetRe\t'JUS
CatcfSales
1998
1997
ms,498 $'915,533 $2,cro,31s $2,055,203 402,369 403,<m 853,776 891,315
~Proot
543,129 Arrnti2alioo 19,275 Royalties, ~arxi 113,755 I>e\dqmrt 128,053 ~ Selling,Disrirulicxlarxi 162,705 AdminiSratioo Aa:pi«rl~arxi ')JJ,(XX) fuelq:nl':%11
Qx:rntingProot
1997
5~ 11,741
1,146,599 ➔9,298
1,163,888 32,%7
102,583 116,208
263,220 '257,073
254,339 254,418
156,215
439,433
433,285
')JJ,(XX)
99,341
125,759
117,6'25
188,879
Certain statements contained in this release contain "forward-looking statements" within the meaning of the PriYate Securities Litigation Reform Act of 1995. Such forward-looking statements are inherently subject to knO\m and unknown risks and uncertainties. The Company's actual actions or results may differ materially from those expected or anticipated in the forward-looking statements. Specific factors that might cause such a difference include, but are not limited to. the timely manufacture and shipping by tl1e Company of new a11d continuing products and their acceptance by customers and consumers in a competitive product e11\'ironment; economic conditions and currency fluctuations in the rnrious markets in which tl1e Company operates throug hout the world; the inventory policies of retailers. including the continuing trend of increased concentration of the Company's revenues in the second half and fourth quarter of the year, together with increased reliance by retailers on quick response inventory management techniques, which increases the risk of underproduction of popular items, oYerproduction of less popular items and failure to achieve tight a nd compressed shipping schedules; the impact of competition on revenues, margins and other aspects of the Company's business; third party actions or approvals tllat could delay, modify or increase the cost of implementation of, the Company's Global Integration and Profit Enhancement program; and the risk that anticipated benefits of acquisitions may not occur or be delayed or reduced in their realization. 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.
')J),036 19,l')JJ 11,'.m 9,197 InleretE~ Qh;r (ltmre) E ~ Net (1,568) 1,121 (12,~2) (6,112)
HASBRO, INC.
Taal OnrentAms
EamingsBefcrelrmireTh.\'CS 89,ffil 115,441 109,671 175,871 lmxreTh.\J:S 28,271 38,041 35,095 59,7% NetEamings
$61,330 $77,400 $74,576 $116,075
Fa-Coonn:x1 SlEre NetEamings J3agc;
Dilutro
$.47 $.45
$.61 $.57
$.56 $.54
$.91 $.87
OmDr.mrlsDxlaroj
$.~
$.~
$24
$.24
\\eigllledA\~Nunmct Srnres J3agc; 131,368 126,922 132,346 127,789 Dilutfrl 136,375 137,103 137,004 137,IDS
HASBRO,lNC. CXN(UDA1ED CX>NDENSED BAlANCE SHEEfS (Ihmnrlscfruiars) ~ 27, ~ 28, 1998 1997
ASSETS Omarxi TCJ11IXlllllY hM:SimJls AcamsRro:i\a:>k;Net !memories ()re:
$ 176,486 1,030,751 383,009 336,261
$ 00,030 1,153,910 347,779 175,534
Qre:Ams
1,m,307 1,757.253 'lJrl,872 279,916 1,461,1'25 986,782
Tuai.Ams
3,676,JOt $3,073,951
~ F1antarrlF.quipmi, Net
11ABil.1I1ES AND SHAREIDI..DFRSEQUITY Short-tmnBooowings Rl)ooles am Aa:ru:rll.mlitx:s
1,029,~
Xfl,5% $ 462,894
Tctal G.nreml.mlitx:s LC11g-tennnit IkfemrlLmlities
1,537,502 1,171,172 300,00) 148,751 00,010 68,924
Tctal Lmlities
1,917,512 1,388,847
Tctal SrnrehJkbs E.quily
1,758,792 1,635,104
?ffi,278
Tool Lmlitiesarrl Srnreldr:rs'E.quily 3,676,304 $3,023,951
Cena: 1-hho,Irc. John T ONeill, 401-W-Sfil> RenitaE OCoorell, 401-W-5401
Subj: Date:
Atari auction items 98-10-28 20:02:41 EST
1200XL Computer 800XL Computer 65XE Computer 520ST Computer Indus 5 1/4 Drive for 8-bit SF314 Double Sided Drive for the ST PR connection 8-bit Diagnostic Cartridge ST Diagnostic Cartridge SC1224 Color Monitor for the ST SM124 Monitor for the ST Okimate 10 Printer Okimate 20 Printer Light Pen for the 8-bit Much, Much, More
'
~7TCTAL~ ..._, OF 1 1
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?rP.;:;id P.n t:
\'ice President: Sccrclury: fiO\i Librarian: ?aper Librarian: Soflwan: Librarian: '.,lembership Chairman:. SPACE Treasurer SPACE Newsletter Editor:
~.., ~~,.tL DI C::CLAT\JfDR
GrP.g I .eitnP.r (TP.mp) 455 - 6550 XXX-XXXX
Greg Leitner Brian C. Lllllc Vacant · Vacant Vacant Glen Kirschenmann Greg Leitner Michael Schmidt
XXX-XXXX
XXX-XXXX
XXX-XXXX XXX-XXXX 786-4790 455-6550 757-4192
Published by the Saint Paul Atari Computer Enthusiast;; (SPACE), an independent org,rni<!:alion with no bu:sine,:,: e!filiation with ATARI Corporation. Pei:mission is granted to any similar organization ....,ith which SPACE exchanges new:il~t.t.~rs t.o reprir.t. rn;d.P.rir11 frcnn tlds r,~wslet.lt!r. w~ ,Ll however ask thal credit be siven Lo the aulhors and lo S?Ac,·
Opinions expressed are these of lhe adho:·s and de r">~ necessarily reflect the views of SPACE, the club officer.;:.
Saint Paul Atari Computer Enthusiasts (SPACE)
club members or ATARI Corporetion
m eets on the second Friday of each month at 7:30 PM
in the Falcon Heights Community Center at 2077 West Larpent.eur Ave. Doors open at 7:00 PM.
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Community Center 2077 w. Larpcr:lcur Ave.
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1:31:3S Phone : (612) - 462 - 3680
~ysop : None Co-sysop: Open ..p os1·t·10n Supporting:
U o! ~! SL. Patil Campu:;
ATARI 8-Bil Cornpul.ers ATARI ST Cornputers
c.!p • 1- • ·\('l:1 .,.r,. P.O. Box 120016 :NevY Brighton, MN ~, •
55112