Market Overview

Hasbro Reports First Quarter 2018 Financial Results

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  • First quarter 2018 revenues decreased to $716.3 million due to the
    liquidation of Toys"R"Us and retail inventory overhang, primarily in
    Europe;
  • Reported net loss of $112.5 million or $0.90 per diluted share,
    includes after-tax expenses of $61.4 million associated with
    Toys"R"Us; $15.7 million of severance costs associated with an
    acceleration of the Company's ongoing commercial organization
    transformation; and a net charge of $47.8 million related to U.S. tax
    reform (the "Non-GAAP Adjustments");
  • Adjusted net earnings of $12.4 million or $0.10 per diluted share;
  • Ended the quarter with $1.6 billion in cash and returned $109.6
    million to shareholders; $70.8 million in dividends and $38.8 million
    in share repurchases.

Hasbro,
Inc.
(NASDAQ:HAS) today reported financial results for the
first quarter 2018. Net revenues for the first quarter 2018 decreased
16% to $716.3 million versus $849.7 million in 2017. The decrease in
revenues is the result of the liquidation of Toys"R"Us in the U.S. and
U.K., along with uncertainty in its other operations, as well as retail
inventory overhang, primarily in Europe.

Net loss for the first quarter 2018 was $112.5 million, or $0.90 per
diluted share, compared to net earnings of $68.6 million, or $0.54 per
diluted share, in 2017. Excluding the Non-GAAP Adjustments noted above,
adjusted net earnings for the quarter were $12.4 million or $0.10 per
diluted share. The first quarter 2018 was a 13-week period versus the
first quarter 2017 which was a 14-week period.

"The Hasbro teams executed extremely well during a challenging first
quarter," said Brian Goldner, Hasbro's chairman and chief executive
officer. "Hasbro brands are resonating with consumers and consumer
takeaway is positive. However, as we discussed earlier in the year, our
first quarter was expected to be difficult. We are working to put the
near-term disruption from Toys"R"Us behind us. Our global retailers view
this as an opportunity in a key consumer category and are partnering
with Hasbro to develop growth plans for our brands. New Hasbro
initiatives shipping in this quarter and beyond won't be caught up in
the Toys"R"Us liquidation process. With the rapid shift to a converged
retail environment, we accelerated plans we originally had spread
throughout the year to transform our commercial organization on a more
immediate basis."

"Our underlying financial strength is sound, and despite the near-term
challenges associated with a major customer liquidation, Hasbro is
positioned to manage a challenging 2018 and drive growth in 2019 and
beyond," said Deborah Thomas, Hasbro's chief financial officer. "The
quarter's revenue and profits were negatively impacted by lower revenues
and higher expenses associated with events that do not reflect the
health of our underlying business. We remain on track to meet our goal
of generating $600 to $700 million in operating cash flow this year
while investing to build our brands, transform our organization and
return cash to shareholders."

First Quarter 2018 Major Segment Performance

                         
   

Net Revenues
($ Millions)

 

Operating Profit (Loss)
($ Millions)

 

Adjusted Operating
Profit (Loss) (NYSE:M)

  Q1 2018   Q1 2017   % Change   Q1 2018   Q1 2017   Q1 2018
U.S. and Canada   $364.3   $451.6   -19%   $(23.4)   $64.8   $28.9
International   $287.9   $345.3   -17%   $(56.1)   $0.5   $(44.9)
Entertainment and Licensing   $64.0   $52.7   +21%   $13.9   $11.3   $13.9
           

First quarter 2018 U.S. and Canada segment net revenues decreased 19% to
$364.3 million compared to $451.6 million in 2017. The segment reported
an operating loss of $23.4 million compared to an operating profit of
$64.8 million in 2017. The segment's first quarter performance reflected
the Toys"R"Us liquidation both in lower revenues and $52.3 million of
pre-tax expenses, primarily bad debt.

First quarter 2018 International segment net revenues were $287.9
million compared to $345.3 million in 2017. Revenues in the segment were
negatively impacted by efforts to clear excess inventory in Europe, as
well as the Toys"R"Us U.K. liquidation and uncertainty in its other
international operations. International segment revenues include a
favorable $19.5 million impact of foreign exchange. On a regional basis,
Europe net revenues decreased 28%, Latin America increased 2% and Asia
Pacific increased 3%. Emerging markets net revenues decreased 5% in the
quarter. The International segment reported an operating loss of $56.1
million compared to an operating profit of $0.5 million in 2017. The
decline in operating profit reflects lower revenues and includes $11.2
million of pre-tax expense associated with Toys"R"Us.

Entertainment and Licensing segment net revenues increased 21% to $64.0
million compared to $52.7 million in 2017. Operating profit increased
23% to $13.9 million, or 21.7% of net revenues, compared to $11.3
million, or 21.5% of net revenues, in 2017. Revenue growth was driven by
consumer products and digital gaming. During the quarter, the Company
adopted ASC 606 Revenue from Contracts with Customers which
favorably impacted the timing of revenue recognition in the quarter.

Additional pre-tax expense of $7.0 million associated with Toys"R"Us and
$17.3 million from accelerating the commercial organization
transformation are included in the Corporate and Eliminations segment.

First Quarter 2018 Brand Portfolio Performance

       
      Net Revenues ($ Millions)
    Q1 2018     Q1 2017     % Change
Franchise Brands     $361.7     $449.2     -19%
Partner Brands     $200.6     $213.0     -6%
Hasbro Gaming*     $105.2     $135.8     -22%
Emerging Brands     $48.8     $51.8     -6%

*Hasbro's total gaming category, including all gaming revenue, most
notably MAGIC: THE GATHERING and MONOPOLY, which are included in
Franchise Brands in the table above, totaled $203.5 million for the
first quarter 2018, down 20%, versus $253.3 million for the first
quarter 2017. Hasbro believes its gaming portfolio is a competitive
differentiator and views it in its entirety.

First quarter 2018 revenues were negatively impacted across all Brand
Portfolio categories by the liquidation of Toys"R"Us in the U.S. and
U.K., along with uncertainty in its other operations, as well as retail
inventory overhang, primarily in Europe.

First quarter 2018 Franchise Brand revenues decreased 19% to $361.7
million. Growth in MONOPOLY was offset by declines in all other
Franchise Brands in the quarter. Franchise Brand revenues grew in the
Entertainment and Licensing segment and declined in the U.S. and Canada
and International segments.

Partner Brand revenues declined 6% to $200.6 million. Revenue growth in
MARVEL and BEYBLADE was more than offset by declines in other Partner
Brands. Partner Brand revenues increased slightly in the U.S. and Canada
segment, but declined in the International segment.

Hasbro Gaming revenue decreased 22% to $105.2 million. Revenue gains in
DUNGEONS AND DRAGONS, JENGA and several new game launches were offset by
declines in other properties. Hasbro's total gaming category was down
20% to $203.5 million. Hasbro Gaming revenues declined in all three
major operating segments.

Emerging Brands revenue declined 6% to $48.8 million. Revenue increases
from STRETCH ARMSTRONG and LITTLEST PET SHOP products were offset by
declines in other Emerging Brands. Emerging Brands revenues grew in the
Entertainment and Licensing segment and declined in the U.S. and Canada
and International segments.

Dividend and Share Repurchase

The Company paid $70.8 million in cash dividends to shareholders during
the first quarter 2018. The next quarterly cash dividend payment of
$0.63 per common share is scheduled for May 15, 2018 to shareholders of
record at the close of business on May 1, 2018.

During the first quarter, Hasbro repurchased 427.1 thousand shares of
common stock at a total cost of $38.8 million and an average price of
$90.81 per share. At quarter-end, $139.2 million remained available in
the current share repurchase authorization.

Non-GAAP Adjustments

During the first quarter, the Company recorded lower revenues in part
due to the loss of revenues from Toys"R"Us in the U.S. and Europe, as a
result of the related liquidations as well as uncertainty in the other
Toys"R"Us operations. In association with this, the Company recorded
after-tax expenses of $61.4 million, primarily bad debt.

Hasbro also recorded $15.7 million of after tax expense associated with
accelerating its commercial organization transformation. Over the past
several years, the Company has invested in developing an omni-channel
retail presence, and in 2018 is bringing onboard new skill sets and
talent to lead in today's converged retail environment. These actions
were initially planned to occur over time, commencing later this year.
Given the current retail environment the Company chose to accelerate its
actions.

In 2017, the Company recognized a provisional net charge of $296.5
million from the U.S. Tax Cuts and Jobs Act. Additional changes and
guidance issued since year end resulted in a first quarter 2018 charge
of $47.8 million, or $0.38 per diluted share. This charge is related to
an increase in the Company's repatriation tax liability and a reversal
of tax benefits no longer permitted under the new guidance. The Company
expects its full-year underlying tax rate to be at the high end of its
previously projected range of 15% to 17%.

Conference Call Webcast

Hasbro will webcast its first quarter 2018 earnings conference call at
8:30 a.m. Eastern Time today. To listen to the live webcast and access
the accompanying presentation slides, 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.

About Hasbro: Hasbro (NASDAQ:HAS) is a global play and
entertainment company committed to Creating the World's Best Play
Experiences
. From toys and games to television, movies, digital
gaming and consumer products, Hasbro offers a variety of ways for
audiences to experience its iconic brands, including NERF, MY LITTLE
PONY, TRANSFORMERS, PLAY-DOH, MONOPOLY, BABY ALIVE and MAGIC: THE
GATHERING, as well as premier partner brands. Through its entertainment
labels, Allspark Pictures and Allspark Animation, the Company is
building its brands globally through great storytelling and content on
all screens. Hasbro is committed to making the world a better place for
children and their families through corporate social responsibility and
philanthropy. Hasbro ranked No. 1 on the 2017 100 Best Corporate
Citizens list by CR Magazine, and has been named one of the
World's Most Ethical Companies® by Ethisphere Institute for the past
seven years. Learn more at www.hasbro.com,
and follow us on Twitter (@Hasbro & @HasbroNews) and Instagram (@Hasbro).

© 2018 Hasbro, Inc. All Rights Reserved.

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 and the Company's ability to achieve
its 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 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 recover the Company's costs and earn a
profit; (ii) downturns in economic conditions impacting one or more of
the markets in which the Company sells products, such as the economic
downturns which impacted the United Kingdom and Brazil in 2017, which
can negatively impact the Company's retail customers and consumers, and
which can result in lower employment levels, lower consumer disposable
income, lower retailer inventories and lower 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) consumer interest in
entertainment properties, such as motion pictures, for which the Company
is developing and marketing products, and the ability to drive sales of
products associated with such entertainment properties, (v) potential
difficulties or delays the Company may experience in implementing cost
savings and efficiency enhancing initiatives; (vi) other economic and
public health conditions or regulatory changes in the markets in which
the Company and its customers and suppliers operate which could create
delays or increase the Company's costs, such as higher commodity prices,
labor costs or transportation costs, or outbreaks of disease; (vii)
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; (viii) 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 in their purchasing or selling patterns; (ix)
consumer interest in and acceptance of the Discovery Family Channel, 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 their inventories, 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
compressed shipping schedules; (xi) delays, increased costs or
difficulties associated with any of our or our partners' planned digital
applications or media initiatives; (xii) work disruptions, 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, such as the
bankruptcy of Toys"R"Us in the United States and Canada in the fourth
quarter of 2017 and the beginning of liquidation of those businesses, as
well as economic difficulty of Toys"R"Us in other markets, 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 offer Company products
which consumers choose to buy instead of competitive products, the
ability to secure, maintain and renew popular licenses and the ability
to attract and retain talented employees; (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 social,
economic or public health conditions and other factors affecting China,
the movement of products into and out of China, the cost of producing
products in China and exporting them to other countries, including
without limitation, the potential application of tariffs to products the
Company purchases from vendors in China, which would significantly
increase the price of the Company's products and harm sales; (xvi) the
risk of product recalls or product liability suits and costs associated
with product safety regulations; (xvii) the impact of other market
conditions, third party actions or approvals and 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; (xviii) changes in tax laws or
regulations, or the interpretation and application of such laws and
regulations, such as what may occur as the U.S. Tax Cuts and Jobs Act is
interpreted and applied, which may cause the Company to alter tax
reserves or make other changes which significantly impact its reported
financial results; (xix) the impact of litigation or arbitration
decisions or settlement actions; and (xx) 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 non-GAAP financial measures as defined under
SEC rules, specifically Adjusted net earnings and adjusted earnings per
diluted share, excluding the impact of charges associated with the
Toys"R"Us liquidation; severance costs and U.S. tax reform in the first
quarter of 2018, as well as adjusted operating profit absent the impact
of the charges associated with the Toys"R"Us liquidation and severance
costs. Also included in the financial tables attached to this release
are the non-GAAP financial measures of EBITDA and Adjusted EBITDA.
EBITDA represents net earnings attributable to Hasbro, Inc. excluding
interest expense, income taxes, depreciation and amortization. Adjusted
EBITDA also excludes the impact of charges associated with the Toys"R"Us
liquidation and severance costs in the first quarter of 2018. As
required by SEC rules, we have provided reconciliation on the attached
schedule of these measures to the most directly comparable GAAP measure.
Management believes that Adjusted net earnings, Adjusted earnings per
diluted share and adjusted operating profit absent the impact of charges
associated with the Toys"R"Us liquidation and severance costs in the
first quarter of 2018 provides investors with an understanding of the
underlying performance of the Company's business absent these unusual
events. Management believes that EBITDA and Adjusted EBITDA are
appropriate measures for evaluating the operating performance of the
Company because they reflect the resources available for strategic
opportunities including, among others, to invest in the business,
strengthen the balance sheet and make strategic acquisitions. These
non-GAAP measures 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.

HAS-E

   
HASBRO, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
 
(Thousands of Dollars)
April 1, 2018 April 2, 2017
ASSETS
Cash and Cash Equivalents $ 1,598,944 $ 1,463,081
Accounts Receivable, Net 612,698 676,945
Inventories 517,439 416,232
Other Current Assets   292,756   243,475
Total Current Assets 3,021,837 2,799,733
Property, Plant and Equipment, Net 262,418 270,023
Other Assets   1,444,817   1,576,114
Total Assets $ 4,729,072 $ 4,645,870
 
 

LIABILITIES AND SHAREHOLDERS' EQUITY

Short-term Borrowings $ 21,611 $ 65,294
Current Portion of Long-term Debt - 349,814
Payables and Accrued Liabilities   830,915   786,706
Total Current Liabilities 852,526 1,201,814
Long-term Debt 1,693,977 1,198,896
Other Liabilities   611,210   393,516
Total Liabilities 3,157,713 2,794,226
Total Shareholders' Equity   1,571,359   1,851,644
Total Liabilities and Shareholders' Equity $ 4,729,072 $ 4,645,870
 
       
HASBRO, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Quarter Ended
 
(Thousands of Dollars and Shares Except Per Share Data)

April 1,
2018

 

% Net
Revenues

 

April 2,
2017

 

% Net
Revenues

Net Revenues $ 716,341 100.0 % $ 849,663 100.0 %
Costs and Expenses:
Cost of Sales 255,187 35.6 % 306,082 36.0 %
Royalties 69,652 9.7 % 64,380 7.6 %
Product Development 57,384 8.0 % 62,586 7.4 %
Advertising 68,016 9.5 % 80,936 9.5 %
Amortization of Intangibles 6,478 0.9 % 7,881 0.9 %
Program Production Cost Amortization 12,034 1.7 % 5,570 0.7 %
Selling, Distribution and Administration   328,009   45.8 %   243,885   28.7 %
Operating Profit (Loss) (80,419 ) -11.2 % 78,343 9.2 %
Interest Expense 22,809 3.2 % 24,456 2.9 %
Other (Income) Expense, Net   (14,840 ) -2.1 %   (16,950 ) -2.0 %
Earnings (Loss) before Income Taxes (88,388 ) -12.3 % 70,837 8.3 %
Income Taxes   24,104   3.4 %   2,238   0.3 %
Net Earnings (Loss)   (112,492 ) -15.7 %   68,599   8.1 %
 
Per Common Share
Net Earnings (Loss)
Basic $ (0.90 ) $ 0.55  
Diluted $ (0.90 ) $ 0.54  
 
Cash Dividends Declared $ 0.63   $ 0.57  
 
Weighted Average Number of Shares
Basic   125,073     125,182  
Diluted   125,073     127,229  
 
   
HASBRO, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
 
(Thousands of Dollars)
Quarter Ended
April 1, 2018 April 2, 2017
Cash Flows from Operating Activities:
Net Earnings $ (112,492 ) $ 68,599
Non-cash Adjustments 33,615 59,927
Changes in Operating Assets and Liabilities   396,616     283,402  
Net Cash Provided by Operating Activities   317,739     411,928  
 
Cash Flows from Investing Activities:
Additions to Property, Plant and Equipment (28,235 ) (30,243 )
Other   2,007     (781 )
Net Cash Utilized by Investing Activities   (26,228 )   (31,024 )
 
Cash Flows from Financing Activities:
Net Repayments of Short-term Borrowings (133,698 ) (107,336 )
Purchases of Common Stock (38,126 ) (19,312 )
Stock-based Compensation Transactions 19,518 9,743
Dividends Paid (70,781 ) (63,404 )
Employee Taxes Paid for Shares Withheld   (52,637 )   (31,391 )
Net Cash Utilized by Financing Activities   (275,724 )   (211,700 )
 
Effect of Exchange Rate Changes on Cash 1,923 11,592
 
Cash and Cash Equivalents at Beginning of Year   1,581,234     1,282,285  
 
Cash and Cash Equivalents at End of Period $ 1,598,944   $ 1,463,081  
 
     
HASBRO, INC.
SUPPLEMENTAL FINANCIAL DATA
(Unaudited)
(Thousands of Dollars) Quarter Ended
April 1, 2018 April 2, 2017 % Change  

Major Segment Results

U.S. and Canada Segment:

External Net Revenues $ 364,297 $ 451,577 -19 %
Operating Profit (Loss) (23,383 ) 64,754 -136 %
Operating Margin -6.4 % 14.3 %
 

International Segment:

External Net Revenues 287,945 345,281 -17 %
Operating Profit (Loss) (56,088 ) 544 -10410 %
Operating Margin -19.5 % 0.2 %
 

Entertainment and Licensing Segment:

External Net Revenues 64,021 52,729 21 %
Operating Profit 13,906 11,346 23 %
Operating Margin 21.7 % 21.5 %
 
 

International Segment Net Revenues by
Major Geographic Region

Europe $ 155,562 $ 216,120 -28 %
Latin America 65,961 64,756 2 %
Asia Pacific   66,422     64,405   3 %
Total $ 287,945   $ 345,281  
 

Net Revenues by Brand Portfolio

Franchise Brands $ 361,706 $ 449,160 -19 %
Partner Brands 200,592 212,962 -6 %
Hasbro Gaming 105,227 135,766 -22 %
Emerging Brands   48,816     51,775   -6 %
Total Net Revenues $ 716,341   $ 849,663  
 

Franchise and Emerging Brands net revenues for the first quarter of 2017
have been restated to reflect the elevation of BABY ALIVE from Emerging
Brands to Franchise Brands and the move of LITTLEST PET SHOP from
Franchise Brands to Emerging Brands.

Hasbro's total gaming category, including all gaming revenue, most
notably MAGIC: THE GATHERING and MONOPOLY, totaled $203,542 for the
first quarter of 2018, down 20%, from revenues of $253,289 for the first
quarter of 2017.

         
HASBRO, INC.
SUPPLEMENTAL FINANCIAL DATA
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Unaudited)
(Thousands of Dollars)
 

Net Earnings and Earnings per Share
Excluding the Impact of Toys"R"Us, Severance and Tax Reform

Quarter Ended
(all adjustments reported after-tax) April 1, 2018

Diluted Per Share
Amount (1)

April 2, 2017

Diluted Per
Share Amount

Net Earnings (Loss), as Reported $ (112,492 ) $ (0.90 ) $68,599 $0.54

Incremental costs impact of Toys"R"Us (2)

61,372 0.49 - -
Severance (3) 15,699 0.12

-

-

Impact of Tax Reform (4)   47,790     0.38  

-

  -  
Net Earnings, as Adjusted $ 12,369   $ 0.10   $68,599   $0.54  
 

(1) Diluted Per Share Amount for the impact of
Toys"R"Us, severance and Tax Reform and net earnings, as adjusted,
for Q1 2018 are calculated using dilutive shares of 126,095 for
the quarter.

(2) In the first quarter of 2018, Toys"R"Us announced a
liquidation of its U.S. operations, as well as other retail
impacts around the globe. As a result, the Company recognized
incremental bad debt expense on outstanding Toys"R"Us receivables,
royalty expense, inventory obsolescence as well as other related
costs.

(3) In the first quarter of 2018, the Company incurred
severance charges, primarily outside the U.S., related to
accelerating actions associated with a new go-to-market strategy
designed to be more omni-channel and e-commerce focused. These
charges were included in Corporate and Eliminations.

(4) Represents the adjustment of certain provisional
amounts recorded in the fourth quarter of 2017 based on additional
guidance issued by the U.S. Treasury Department and the Internal
Revenue Service in the first quarter of 2018.
 
The impact of the above items on Operating Profit (Loss), and
impacted segments, and Income Taxes for the quarter ended April 1,
2018 is as follows:
2018   As Reported % Net Revenues

Less Impact of
Above Items (5)

Excluding
Impact of Above
Items

% Net Revenues
Operating Profit (Loss) $ (80,419 ) -11.2 % $87,777 $7,358 1.0 %
U.S. and Canada Segment (23,383 ) -6.4 % 52,277 28,894 7.9 %
International Segment (56,088 ) -19.5 % 11,151 (44,937 ) -15.6 %
Income tax expense (benefit) 24,104 3.4 % (37,084 ) (12,980 ) -1.8 %
 

(5) Additional pretax expense of $24.3 million is
included in Corporate and Eliminations.

 

Reconciliation of EBITDA

Quarter Ended
April 1, 2018 April 2, 2017
Net Earnings (Loss) $ (112,492 ) $ 68,599
Interest Expense 22,809 24,456

Income Taxes (including Tax Reform)

24,104 2,238
Depreciation 26,221 27,702
Amortization of Intangibles   6,478     7,881  
EBITDA $ (32,880 ) $ 130,876  

Impact of Toys"R"Us and Severance

  (87,777 )   -  
Adjusted EBITDA $ 54,897   $ 130,876  

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