27.07.2022 23:05:00
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Spin Master Reports Q2 2022 Financial Results and Announces Dividend
TORONTO, July 27, 2022 /PRNewswire/ - Spin Master Corp. ("Spin Master" or the "Company") (TSX: TOY) (www.spinmaster.com), a leading global children's entertainment company, today announced its financial results for the three and six months ended June 30, 2022. The Company's full Management's Discussion and Analysis ("MD&A") for the three and six months ended June 30, 2022 is available under the Company's profile on SEDAR (www.sedar.com) and posted on the Company's web site at www.spinmaster.com/financial-info.php. All financial information is presented in United States dollars ("$", "dollars" and "US$") and has been rounded to the nearest hundred thousand, except per share amounts and where otherwise indicated.
"We are very pleased with our strong revenue growth this quarter across all three creative centres amidst a shifting macroeconomic environment," said Max Rangel, Spin Master's Global President & CEO. "Our Toy business continued to grow ahead of the industry with the strong performance of our diversified toy portfolio including innovative IP, evergreen franchise brands and popular licensed partnerships. Looking to the balance of the year, we remain confident in our ability to execute on our strategy of reimagining everyday play for children globally, powered by our deep expertise across toys, entertainment and digital games. We believe we are well positioned to manage through external market dynamics to deliver profitable growth and long-term shareholder value, while continuing to invest in growth initiatives."
"In the second quarter, we maintained our momentum in revenue growth and delivered record margins and profitability," said Mark Segal, Spin Master's Chief Financial Officer. " We are committed to our financial framework for value creation, underpinned by our formula for innovation and disciplined global growth across all of our creative centres. Given our strong financial position and operational outlook, we are pleased to introduce our first-ever quarterly dividend. We continue to remain focused on increasing opportunities to leverage our diverse and global platform for organic growth and accretive acquisitions."
Consolidated Financial Highlights for Q2 2022 as compared to the same period in 2021- Revenue was $506.3 million, an increase of 29.6% from $390.8 million primarily due to an increase in Toy revenue of 34.1%. Digital Games revenue increased by 9.2% and Entertainment revenue increased by 3.3%. Constant Currency Revenue1 was $514.7 million, up from $390.8 million, an increase of 31.7%
- Operating Income was $118.2 million compared to $46.9 million.
- Operating Margin2 was 23.3% compared to 12.0%.
- Adjusted Operating Income1 was $97.6 million compared to $57.7 million.
- Adjusted Operating Margin1 was 19.3% compared to 14.8%.
- Adjusted EBITDA1 was $113.7 million compared to $81.8 million.
- Adjusted EBITDA Margin1 was 22.5% compared to 20.9%.
- Cash provided by operating activities was $111.6 million compared to $94.2 million.
- Free Cash Flow1 was $84.1 million compared to $69.0 million.
- Unutilized liquidity of approximately $1,068 million, comprised of $558 million in cash and cash equivalents and $510 million under the Company's credit facilities.
- Strong capital position and operational outlook led to the declaration of a quarterly dividend in respect of the third quarter of 2022.
Consolidated Financial Highlights for the Six Months Ended June 30, 2022 as compared to the same period in 2021
- Revenue was $930.5 million, an increase of 31.5% from $707.4 million driven by growth in Toy revenue of 35.5% and Digital Games revenue of 28.7%, offset by a decrease in Entertainment revenue of 7.0%. Constant Currency Revenue1 increased by 33.5%2 to $944.3 million from $707.4 million.
- Operating Income was $179.9 million compared to $53.6 million.
- Operating Margin was 19.3% compared to 7.6%.
- Adjusted Operating Income1 was $174.9 million compared to $71.3 million.
- Adjusted Operating Margin1 was 18.8% compared to 10.1%.
- Adjusted EBITDA1 was $209.4 million compared to $118.5 million.
- Adjusted EBITDA Margin1 was 22.5% compared to 16.8%.
- Cash provided by operating activities was $48.7 million compared to $103.2 million.
- Free Cash Flow1 was $4.7 million compared to $62.5 million.
(US$ millions, except per share information) | Six Months Ended Jun 30 | |||||
Q2 2022 | Q2 2021 | $ Change | 2022 | 2021 | $ Change | |
Consolidated Results | ||||||
Revenue | $ 506.3 | $ 390.8 | $ 115.5 | $ 930.5 | $ 707.4 | $ 223.1 |
Operating Income | $ 118.2 | $ 46.9 | $ 71.3 | $ 179.9 | $ 53.6 | $ 126.3 |
Operating Margin | 23.3 % | 12.0 % | 19.3 % | 7.6 % | ||
Adjusted Operating Income1,2,3 | $ 97.6 | $ 57.7 | $ 39.9 | $ 174.9 | $ 71.3 | $ 103.6 |
Adjusted Operating Margin1 | 19.3 % | 14.8 % | 18.8 % | 10.1 % | ||
Net Income | $ 88.1 | $ 33.5 | $ 54.6 | $ 133.7 | $ 36.7 | $ 97.0 |
Adjusted Net Income1,2,3 | $ 72.4 | $ 41.6 | $ 30.8 | $ 129.9 | $ 50.0 | $ 79.9 |
Adjusted EBITDA1,2,3 | $ 113.7 | $ 81.8 | $ 31.9 | $ 209.4 | $ 118.5 | $ 90.9 |
Adjusted EBITDA Margin1 | 22.5 % | 20.9 % | 22.5 % | 16.8 % | ||
Earnings Per Share ("EPS") | ||||||
Basic EPS | $ 0.86 | $ 0.33 | $ 1.30 | $ 0.36 | ||
Diluted EPS | $ 0.83 | $ 0.32 | $ 1.26 | $ 0.35 | ||
Adjusted Basic EPS1 | $ 0.70 | $ 0.41 | $ 1.26 | $ 0.49 | ||
Adjusted Diluted EPS1 | $ 0.68 | $ 0.40 | $ 1.22 | $ 0.48 | ||
Cash Flow Data | ||||||
Cash provided by operating activities | $ 111.6 | $ 94.2 | $ 17.4 | $ 48.7 | $ 103.2 | $ (54.5) |
Cash used in investing activities | $ (30.4) | $ (46.9) | $ 16.5 | $ (38.7) | $ (110.9) | $ 72.2 |
Free Cash Flow1 | $ 84.1 | $ 69.0 | $ 15.1 | $ 4.7 | $ 62.5 | $ (57.8) |
1 Non-GAAP financial measure or ratio. See "Non-GAAP Financial Measures and Ratios". | ||||||
2 Adjustments for Q2 2022 include Foreign exchange gain of $32.3 million (2021 - loss of $4.9 million), Share based compensation of $4.5 million (2021 - $4.0 million), Restructuring and other related costs of $4.5 million (2021 - $nil) and Acquisition related deferred incentive compensation of $2.6 million (2021 - $1.5 million). Refer to the "Reconciliation of Non-GAAP Financial Measures" section for further details. | ||||||
3 Adjustments for the Six Months Ended June 30, 2022 include Foreign exchange gain of $22.7 million (2021 - loss of $8.6 million), Share based compensation of $8.6 million (2021 - $7.2 million), Restructuring and other related costs of $5.1 million (2021 - $0.7 million) and Acquisition related deferred incentive compensation of $5.3 million (2021 - $1.5 million). Refer to the "Reconciliation of Non-GAAP Financial Measures" section for further details. |
Segmented Financial Results as compared to the same period in 2021
(US$ millions) | Q2 2022 | Q2 2021 | ||||||||
Toys | Entertainment | Digital | Corporate | Total | Toys | Entertainment | Digital | Corporate | Total | |
Revenue | $ 437.6 | $ 28.4 | $ 40.3 | $ — | $ 506.3 | $ 326.4 | $ 27.5 | $ 36.9 | $ — | $ 390.8 |
Operating Income | $ 62.6 | $ 17.5 | $ 8.4 | $ 29.7 | $ 118.2 | $ 28.5 | $ 12.5 | $ 12.8 | $ (6.9) | $ 46.9 |
Adjusted Operating Income2 | $ 71.7 | $ 18.0 | $ 10.0 | $ (2.1) | $ 97.6 | $ 33.5 | $ 12.6 | $ 13.7 | $ (2.1) | $ 57.7 |
Adjusted EBITDA2 | $ 83.2 | $ 21.1 | $ 11.5 | $ (2.1) | $ 113.7 | $ 47.3 | $ 21.0 | $ 15.6 | $ (2.1) | $ 81.8 |
1 Corporate & Other includes certain corporate costs, foreign exchange and merger and acquisition-related costs, as well as fair value gains and losses and distribution income on Minority interest and other investments. | ||||||||||
2 Non-GAAP financial measure or ratio. See "Non-GAAP Financial Measures and Ratios". |
Toys Segment Results
The following table provides a summary of Toys segment operating results, for the three months ended June 30, 2022 and 2021:
(US$ millions) |
Q2 2022 |
Q2 2021 |
$ Change | |||||
Preschool and Dolls & Interactive1 | $ | 228.8 | $ | 149.6 | $ | 79.2 | ||
Activities, Games & Puzzles and Plush | $ | 123.6 | $ | 98.0 | $ | 25.6 | ||
Wheels & Action1 | $ | 115.8 | $ | 77.7 | $ | 38.1 | ||
Outdoor2 | $ | 16.2 | $ | 33.7 | $ | (17.5) | ||
Toy Gross Product Sales 3 | $ | 484.4 | $ | 359.0 | $ | 125.4 | ||
Sales Allowances4 | $ | (46.8) | $ | (32.6) | $ | (14.2) | ||
Toy revenue | $ | 437.6 | $ | 326.4 | $ | 111.2 | ||
Operating Income | $ | 62.6 | $ | 28.5 | $ | 34.1 | ||
Operating Margin5 | 14.3 % | 8.7 % | ||||||
Adjusted EBITDA3 | $ | 83.2 | $ | 47.3 | $ | 35.9 | ||
Adjusted EBITDA Margin3 | 19.0 % | 14.5 % | ||||||
1 Effective Q4 2021, the "Preschool and Girls" product category was renamed "Preschool and Dolls & Interactive" and the "Boys" product category was renamed "Wheels & Action". | ||||
2 Outdoor includes $9.9 million in Q2 2021 related to certain brands associated with divestiture of manufacturing assets in Q1 2022. | ||||
3 Non-GAAP financial measure or ratio. See "Non-GAAP Financial Measures and Ratios". | ||||
4 The Company enters into arrangements to provide sales allowances requested by customers relating to cooperative advertising, contractual and negotiated discounts, volume rebates, and costs incurred by customers to sell the Company's products. | ||||
5 Operating Margin is calculated as segment Operating Income divided by segment Revenue. |
- Toy revenue increased by $111.2 million or 34.1% to $437.6 million driven by growth in Preschool and Dolls & Interactive, Wheels & Action, Activities, Games & Puzzles and Plush, offset by a decline in Outdoor.
- Toy Gross Product Sales increased by $125.4 million or 34.9%, to $484.4 million from $359.0 million. Constant Currency Toy Gross Product Sales1 increased by $131.2 million or 36.5%2 to $490.2 million, up from $359.0 million. The improvement was driven by an increase in shipments in the second quarter compared to the prior year as a result of customers ordering earlier, as well as strong customer demand.
- Operating Margin was 14.3% compared to 8.7%.
- Adjusted EBITDA Margin1 was 19.0% compared to 14.5%.
- The improvement in Operating Margin and Adjusted EBITDA Margin1 was driven by improved gross margin from favourable changes in product mix and price increases, as well as lower administrative and distribution expenses as a percentage of revenue, offset in part by inflation on product costs and ocean freight.
Entertainment Segment Results
The following table provides a summary of Entertainment segment operating results, for the three months ended June 30, 2022 and 2021:
(US$ millions) | Q2 2022 | Q2 2021 | $ Change |
Entertainment revenue | $ 28.4 | $ 27.5 | $ 0.9 |
Operating Income | $ 17.5 | $ 12.5 | $ 5.0 |
Operating Margin | 61.6 % | 45.5 % | |
Adjusted Operating Income1 | $ 18.0 | $ 12.6 | $ 5.4 |
Adjusted Operating Margin1 | 63.4 % | 45.8 % | |
1 Non-GAAP financial measure or ratio. See "Non-GAAP Financial Measures and Ratios". |
- Entertainment revenue increased by $0.9 million or 3.3% to $28.4 million, from higher distribution revenue related to the PAW Patrol series.
- Operating Margin was 61.6% compared to 45.5%.
- Adjusted Operating Margin1 was 63.4% compared to 45.8%.
- The improvement in Operating Margin and Adjusted Operating Margin1 was driven primarily by fewer Entertainment content deliveries in the current period, which resulted in lower amortization expense.
Digital Games Segment Results
The following table provides a summary of Digital Games segment operating results, for the three months ended June 30, 2022 and 2021:
(US$ millions) | Q2 2022 | Q2 2021 | $ Change |
Digital Games revenue | $ 40.3 | $ 36.9 | $ 3.4 |
Operating Income | $ 8.4 | $ 12.8 | $ (4.4) |
Operating Margin | 20.8 % | 34.7 % | |
Adjusted Operating Income1 | $ 10.0 | $ 13.7 | $ (3.7) |
Adjusted Operating Margin1 | 24.8 % | 37.1 % | |
1 Non-GAAP financial measure or ratio. See "Non-GAAP Financial Measures and Ratios". |
- Digital Games revenue increased by $3.4 million or 9.2% to $40.3 million due to higher in-app purchases in Toca Life World. Constant Currency Digital Games Revenue1 increased by $6.1 million or 16.5% to $43.0 million, up from $36.9 million.
- Operating Margin was 20.8% compared to 34.7%.
- Adjusted Operating Margin1 was 24.8% compared to 37.1%, due to higher product development and personnel costs related to the investment in future products, as well as higher marketing costs to acquire users, partially offset by higher revenue from in-app purchases in Toca Life World.
The Company continues to expect 2022 Toy Gross Product Sales, in constant currency1, to increase low double digits compared to 2021, consistent with prior guidance on May 4, 2022.
The Company continues to expect 2022 Revenue, in constant currency1, to increase low double digits compared to 2021 Revenue, excluding PAW Patrol: The Movie Distribution Revenue1 of $26.0 million, consistent with prior guidance on May 4, 2022.
The Company continues to expect 2022 Adjusted EBITDA Margin1 to be in line with 2021 Adjusted EBITDA Margin, excluding PAW Patrol: The Movie Distribution Revenue1 of $26.0 million, consistent with prior guidance on May 4, 2022.
Dividend DeclaredThe Company's Board of Directors has authorized and declared a quarterly dividend of C$0.06 per outstanding subordinate voting share and multiple voting share of Spin Master in respect of the third quarter of 2022. The dividend will be paid on October 14, 2022 to shareholders of record at the close of business on September 30, 2022. This dividend is designated to be an eligible dividend for purposes of section 89(1) of the Income Tax Act (Canada).
________________________ |
1 Non-GAAP financial measure or ratio. See "Non-GAAP Financial Measures and Ratios". |
2 Operating Margin is calculated as Operating Income divided by Revenue. |
Certain statements, other than statements of historical fact, contained in this Press Release constitute "forward-looking information" within the meaning of certain securities laws, including the Securities Act (Ontario), and are based on expectations, estimates and projections as of the date on which the statements are made in this Press Release. The words "plans", "expects", "projected", "estimated", "forecasts", "anticipates", "indicative", "intend", "guidance", "outlook", "potential", "prospects", "seek", "strategy", "targets" or "believes", or variations of such words and phrases or statements that certain future conditions, actions, events or results "will", "may", "could", "would", "should", "might" or "can", or negative versions thereof, "be taken", "occur", "continue" or "be achieved", and other similar expressions, identify statements containing forward-looking information. Statements of forward-looking information in this Press Release include, without limitation, statements with respect to: the Company's outlook for 2022; future growth expectations in 2022 and beyond; the Company's dividend policy; drivers and trends for such growth and financial performance; the successful execution of its strategies for growth; financial position, cash flows and financial performance; and the creation of long term shareholder value.
Forward-looking statements are necessarily based upon management's perceptions of historical trends, current conditions and expected future developments, as well as a number of specific factors and assumptions that, while considered reasonable by management as of the date on which the statements are made in this Press Release, are inherently subject to significant business, economic and competitive uncertainties and contingencies which could result in the forward-looking statements ultimately being incorrect. In addition to any factors and assumptions set forth above in this Press Release, the material factors and assumptions used to develop the forward-looking information include, but are not limited to: the Company's dividend payments being subject to the discretion of the Board of Directors and dependent on a variety of factors and conditions existing from time to time; seasonality; ability of factories to manufacture products, including labour size and allocation, tooling, raw material and component availability, ability to shift between product mix, and customer acceptance of delayed delivery dates; the steps taken will create long term shareholder value; the expanded use of advanced technology, robotics and innovation the Company applies to its products will have a level of success consistent with its past experiences; the Company will continue to successfully secure broader licenses from third parties for major entertainment properties consistent with past practices; the expansion of sales and marketing offices in new markets will increase the sales of products in that territory; the Company will be able to successfully identify and integrate strategic acquisition and minority investment opportunities; the Company will be able to maintain its distribution capabilities; the Company will be able to leverage its global platform to grow sales from acquired brands; the Company will be able to recognize and capitalize on opportunities earlier than its competitors; the Company will be able to continue to build and maintain strong, collaborative relationships; the Company will maintain its status as a preferred collaborator; the culture and business structure of the Company will support its growth; the current business strategies of the Company will continue to be desirable on an international platform; the Company will be able to expand its portfolio of owned branded intellectual property and successfully license it to third parties; use of advanced technology and robotics in the Company's products will expand; access of entertainment content on mobile platforms will expand; fragmentation of the market will continue to create acquisition opportunities; the Company will be able to maintain its relationships with its employees, suppliers, retailers and license partners; the Company will continue to attract qualified personnel to support its development requirements; and the Company's key personnel will continue to be involved in the Company products and entertainment properties will be launched as scheduled and that the risk factors noted in this Press Release, collectively, do not have a material impact on the Company.
By its nature, forward-looking information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved. Known and unknown risk factors, many of which are beyond the control of the Company, could cause actual results to differ materially from the forward-looking information in this Press Release. Such risks and uncertainties include, without limitation, the magnitude and length of economic disruption as a result of the COVID-19 pandemic; and the factors discussed in the Company's disclosure materials, including the Annual or subsequent, most recent interim MD&A and the Company's most recent Annual Information Form, filed with the securities regulatory authorities in Canada and available under the Company's profile on SEDAR (www.sedar.com). These risk factors are not intended to represent a complete list of the factors that could affect the Company and investors are cautioned to consider these and other factors, uncertainties and potential events carefully and not to put undue reliance on forward-looking statements.
There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are provided for the purpose of providing information about management's expectations and plans relating to the future. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, or to explain any material difference between subsequent actual events and such forward-looking statements, except to the extent required by applicable law.
Conference callMax Rangel, Global President and Chief Executive Officer and Mark Segal, Chief Financial Officer will host a conference call to discuss the financial results on Thursday, July 28, 2022, at 9:30 a.m. (ET).
The call-in numbers for participants are (647) 792-1240 or (800) 437-2398. A live webcast of the call will be accessible via Spin Master's website at: https://www.spinmaster.com/events.php. Following the call, both an audio recording and transcript of the call will be archived on the same website page.
About Spin MasterSpin Master Corp. (TSX:TOY) is a leading global children's entertainment company, creating exceptional play experiences through it's three creative centres: Toys, Entertainment and Digital Games. With distribution in over 100 countries, Spin Master is best known for award-winning brands PAW Patrol®, Bakugan®, Kinetic Sand®, Air Hogs®, Hatchimals®, Rubik's Cube® and GUND®, and is the global toy licensee for other popular properties. Spin Master Entertainment creates and produces compelling multiplatform content, through its in-house studio and partnerships with outside creators, including the preschool franchise PAW Patrol and numerous other original shows, short-form series and feature films. The Company has an established presence in digital games, anchored by the Toca Boca® and Sago Mini® brands, offering open-ended and creative game and educational play in digital environments. Through Spin Master Ventures, the Company makes minority investments globally in emerging companies and start-ups. With over 30 offices in close to 20 countries, Spin Master employs more than 2,000 team members globally. For more information visit spinmaster.com or follow-on Instagram, Facebook and Twitter @spinmaster.
For further information
Sophia Bisoukis
Vice President, Investor Relations
sophiab@spinmaster.com
Spin Master Corp.
Condensed consolidated interim statements of financial position
Jun 30, | Dec 31, | |
(Unaudited, in US$ millions) | 2022 | 2021 |
Assets | ||
Current assets | ||
Cash and cash equivalents | 558.1 | 562.7 |
Trade receivables | 262.3 | 327.9 |
Other receivables | 71.7 | 66.7 |
Inventories | 184.1 | 137.4 |
Prepaid expenses and other assets | 29.2 | 16.1 |
Assets held for sale | — | 8.9 |
1,105.4 | 1,119.7 | |
Non-current assets | ||
Intangible assets | 239.4 | 227.2 |
Goodwill | 167.6 | 173.1 |
Right-of-use assets | 64.0 | 65.2 |
Property, plant and equipment | 39.0 | 39.8 |
Deferred income tax assets | 94.6 | 97.0 |
Other assets | 16.5 | 14.7 |
621.1 | 617.0 | |
Total assets | 1,726.5 | 1,736.7 |
Liabilities | ||
Current liabilities | ||
Trade payables and accrued liabilities | 360.8 | 476.4 |
Deferred revenue | 10.8 | 10.9 |
Provisions and contingent liabilities | 19.6 | 25.1 |
Income tax payable | 27.9 | 36.2 |
Lease liabilities | 13.2 | 13.3 |
432.3 | 561.9 | |
Non-current liabilities | ||
Provisions and contingent liabilities | 20.9 | 14.0 |
Deferred income tax liabilities | 50.1 | 48.7 |
Lease liabilities | 58.9 | 59.7 |
129.9 | 122.4 | |
Total liabilities | 562.2 | 684.3 |
Shareholders' equity | ||
Share capital | 753.0 | 736.9 |
Retained earnings | 349.7 | 216.0 |
Contributed surplus | 33.3 | 40.8 |
Accumulated other comprehensive income | 28.3 | 58.7 |
Total shareholders' equity | 1,164.3 | 1,052.4 |
Total liabilities and shareholders' equity | 1,726.5 | 1,736.7 |
Spin Master Corp.
Condensed consolidated interim statements of earnings and comprehensive income
Six Months Ended Jun 30, | ||||
(Unaudited, in US$ millions, except earnings per share) | Q2 2022 | Q2 2021 | 2022 | 2021 |
Revenue | 506.3 | 390.8 | 930.5 | 707.4 |
Cost of sales | 222.6 | 180.9 | 409.5 | 340.1 |
Gross profit | 283.7 | 209.9 | 521.0 | 367.3 |
Expenses | ||||
Selling, general and administrative | 190.4 | 149.1 | 349.0 | 288.0 |
Depreciation and amortization | 6.8 | 8.7 | 14.7 | 17.6 |
Other expense (income), net | 0.6 | 0.3 | 0.1 | (0.5) |
Foreign exchange (gain) loss | (32.3) | 4.9 | (22.7) | 8.6 |
Operating Income | 118.2 | 46.9 | 179.9 | 53.6 |
Finance costs | 2.3 | 2.3 | 4.2 | 4.8 |
Income before income tax expense | 115.9 | 44.6 | 175.7 | 48.8 |
Income tax expense | 27.8 | 11.1 | 42.0 | 12.1 |
Net Income | 88.1 | 33.5 | 133.7 | 36.7 |
Earnings per share | ||||
Basic | 0.86 | 0.33 | 1.30 | 0.36 |
Diluted | 0.83 | 0.32 | 1.26 | 0.35 |
Weighted average number of shares | ||||
Basic | 102.9 | 102.3 | 102.9 | 102.3 |
Diluted | 106.3 | 105.2 | 106.3 | 105.2 |
Six Months Ended Jun 30, | ||||
(Unaudited, in US$ millions) | Q2 2022 | Q2 2021 | 2022 | 2021 |
Net Income | 88.1 | 33.5 | 133.7 | 36.7 |
Items that may be subsequently reclassified to Net Income | ||||
Foreign currency translation (loss) gain | (35.8) | 10.3 | (30.5) | 14.4 |
Gain on Minority interest and other investments | 0.1 | — | 0.1 | — |
Other comprehensive (loss) income | (35.7) | 10.3 | (30.4) | 14.4 |
Total comprehensive income | 52.4 | 43.8 | 103.3 | 51.1 |
Spin Master Corp.
Condensed consolidated interim statements of cash flows
Six Months Ended Jun 30, | ||
(Unaudited, in US$ millions) | 2022 | 2021 |
Operating activities | ||
Net Income | 133.7 | 36.7 |
Adjustments to reconcile Net Income to cash provided by operating activities | ||
Income tax expense | 42.0 | 12.1 |
Interest income | (1.7) | (0.6) |
Depreciation and amortization expense | 34.5 | 47.2 |
Loss on disposal of non-current assets | 0.8 | 0.1 |
Accretion expense | 2.8 | 2.8 |
Amortization of Facility fee costs | 0.2 | 0.2 |
Gain on investment in limited partnership, net of distribution income | (0.2) | (1.2) |
Impairment of non-current assets | — | 1.4 |
Loss on Minority interest and other investments | 0.5 | — |
Unrealized foreign exchange (gain) loss | (11.9) | 10.1 |
Share-based compensation expense | 8.6 | 7.2 |
Net changes in non-cash working capital | (124.1) | 6.1 |
Net change in provisions and contingent liabilities | 7.4 | 3.2 |
Income taxes paid | (48.6) | (22.5) |
Income taxes received | 3.4 | — |
Interest received | 1.3 | 0.4 |
Cash provided by operating activities | 48.7 | 103.2 |
Investing activities | ||
Investment in property, plant and equipment | (16.0) | (14.5) |
Investment in intangible assets | (28.0) | (26.2) |
Business acquisitions, net of cash acquired | — | (70.2) |
Investment distribution income | 0.1 | — |
Minority interest and other investments | (4.0) | — |
Proceeds from sale of manufacturing operations | 9.2 | — |
Cash used in investing activities | (38.7) | (110.9) |
Financing activities | ||
Payment of lease liabilities | (7.7) | (9.2) |
Cash used in financing activities | (7.7) | (9.2) |
Effect of foreign currency exchange rate changes on cash and cash equivalents | (6.9) | 7.0 |
Net decrease in cash and cash equivalents during the period | (4.6) | (9.9) |
Cash and cash equivalents, beginning of period | 562.7 | 320.6 |
Cash and cash equivalents, end of period | 558.1 | 310.7 |
Non-GAAP Financial Measures and Ratios
In addition to using financial measures prescribed under IFRS, references are made in this Press Release to the following terms, each of which is a non-GAAP financial measure:
- Toy Gross Product Sales
- Constant Currency Toy Gross Product Sales
- Constant Currency Digital Games Revenue
- Constant Currency Revenue
- Adjusted EBITDA
- Adjusted Operating Income (Loss)
- Adjusted Net Income (Loss)
- Free Cash Flow
- Revenue, excluding PAW Patrol: The Movie Distribution Revenue
- Adjusted EBITDA, excluding PAW Patrol: The Movie Distribution Revenue
Non-GAAP financial measures do not have any standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other issuers.
Additionally, references are made in this Press Release to the following terms, each of which is a non-GAAP financial ratio:
- Sales Allowance as a percentage of Toy Gross Product Sales
- Percentage change in Constant Currency Toy Gross Product Sales
- Percentage change in Constant Currency Digital Games Revenue
- Percentage change in Constant Currency Revenue
- Adjusted EBITDA Margin
- Adjusted Operating Margin
- Adjusted Basic EPS
- Adjusted Diluted EPS
- Adjusted EBITDA Margin, excluding PAW Patrol: The Movie Distribution Revenue
Non-GAAP financial ratios are ratios or percentages that are calculated using a Non-GAAP financial measure. Non-GAAP financial ratios do not have any standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other issuers.
Management believes the Non-GAAP financial measures and Non-GAAP financial ratios defined above are important supplemental measures of operating performance and highlight trends in the business. Management believes that these measures allow for assessment of the Company's operating performance and financial condition on a basis that is consistent and comparable between reporting periods. The Company believes that investors, lenders, securities analysts and other interested parties frequently use these Non-GAAP financial measures and Non-GAAP financial ratios in the evaluation of issuers.
Non-GAAP Financial Measures
Toy Gross Product Sales represent Toy revenues, excluding the impact of Sales Allowances. As Sales Allowances are generally not associated with individual products, the Company uses Toy Gross Product Sales to provide meaningful comparisons across product category and geographical results to highlight trends in Spin Master's business. For a reconciliation of Toy Gross Product Sales to Revenue, the closest IFRS measure, refer to the revenue tables for the three months and year ended June 30, 2022 as compared to the same period in 2021 in this Press Release.
Constant Currency Toy Gross Product Sales, Constant Currency Digital Games Revenue and Constant Currency Revenue represent Toy Gross Product Sales, Digital Games revenue and Revenue presented excluding the impact from changes in foreign currency exchange rates, respectively. The current period and prior period results for entities reporting in currencies other than the US dollar are translated using consistent exchange rates, rather than using the actual exchange rate in effect during the respective periods. The difference between the current period and prior period results using the consistent exchange rates reflects the changes in the underlying performance results, excluding the impact from fluctuations in foreign currency exchange rates. Management uses Constant Currency Toy Gross Product Sales, Constant Currency Digital Games Revenue and Constant Currency Revenue to measure the underlying financial performance of the business on a consistent basis over time. Refer to the "Reconciliation of Non-GAAP Financial Measures" section for a reconciliation of these metrics to Revenue, the closest IFRS measure.
Adjusted EBITDA is calculated as Net Income (Loss) before finance costs, income tax expense (recovery) and depreciation and amortization (EBITDA) excluding adjustments that do not necessarily reflect the Company's underlying financial performance. These adjustments include restructuring and other related costs, foreign exchange gains or losses, share based compensation expenses, acquisition related contingent consideration, impairment of intangible assets, impairment of goodwill, investment distribution income, loss on Minority interest and other investments, acquisition related deferred incentive compensation, net unrealized gain on investment, impairment of property, plant and equipment, legal settlement, transaction costs, gain on disposal of asset and bad debt recovery. Adjusted EBITDA is used by management as a measure of the Company's profitability. Refer to the "Reconciliation of Non-GAAP Financial Measures" section below for a reconciliation of this metric to Operating Income (Loss), the closest IFRS measure.
Adjusted Operating Income (Loss) is calculated as Operating Income (Loss) excluding adjustments (as defined in Adjusted EBITDA). Adjusted Operating Income (Loss) is used by management as a measure of the Company's profitability. Refer to the "Reconciliation of Non-GAAP Financial Measures" section below for a reconciliation of this metric to Operating Income (Loss), the closest IFRS measure.
Adjusted Net Income (Loss) is calculated as Net Income excluding adjustments (as defined in Adjusted EBITDA), the corresponding impact these items have on income tax expense. Management uses Adjusted Net Income (Loss) to measure the underlying financial performance of the business on a consistent basis over time. Refer to the "Reconciliation of Non-GAAP Financial Measures" section below for a reconciliation of this metric to Operating Income (Loss), the closest IFRS measure.
Free Cash Flow is calculated as cash flows provided by/used in operating activities reduced by cash flows used in investing activities and adding back cash used for business acquisitions and investment in limited partnership and Minority interest and other investments, net of investment distribution income. Management uses the Free Cash Flow metric to analyze the cash flows being generated by the Company's business. In the third quarter of 2021, the calculation of this metric was revised to include the impact of investment distribution income as Management believes this composition to be relevant to investors, lenders, securities analysts and other interested parties of the Company. Refer to the "Reconciliation of Non-GAAP Financial Measures" section for a reconciliation of this metric to Cash flow from operating activities, the closest IFRS measure.
Revenue, excluding PAW Patrol: The Movie Distribution Revenue is calculated as revenue excluding distribution revenue of $26.0 million related to PAW Patrol: The Movie recognized in 2021. Revenue, excluding PAW Patrol: The Movie Distribution Revenue is used to measure the underlying financial performance of the business on a consistent basis over time. Refer to the "Reconciliation of Non-GAAP Financial Measures" section for a reconciliation of this metric to Revenue, the closest IFRS measure.
Adjusted EBITDA, excluding PAW Patrol: The Movie Distribution Revenue is calculated as Adjusted EBITDA excluding distribution revenue of $26.0 million related to PAW Patrol: The Movie recognized in 2021. Adjusted EBITDA, excluding PAW Patrol: The Movie Distribution Revenue is used by management as a measure of the Company's profitability on a consistent basis over time. Refer to the "Reconciliation of Non-GAAP Financial Measures" section below for a reconciliation of this metric to Net Income, the closest IFRS measure.
Non-GAAP Financial Ratios
Sales Allowance as a percentage of Toy Gross Product Sales is calculated by dividing Sales Allowance by Toy Gross Product Sales. Management uses Sales Allowance as percentage of Toy Gross Product Sales to identify and compare the cost of doing business with individual retailers, different geographic markets and amongst various distribution channels.
Percentage change in Constant Currency Toy Gross Product Sales is calculated by dividing the change in Toy Gross Product Sales excluding the impact from changes in foreign currency exchange rates by the Toy Gross Product Sales of the comparative period. Management uses Percentage change in Constant Currency Toy Gross Product Sales to measure the underlying financial performance of the business on a consistent basis over time excluding the impact from changes in foreign currency exchange rates.
Percentage change in Constant Currency Digital Games Revenue is calculated by dividing the change in Digital Games revenue excluding the impact from changes in foreign currency exchange rates by the Digital Games revenue of the comparative period. Management uses Percentage change in Constant Currency Digital Games Revenue to measure the underlying financial performance of the business on a consistent basis over time excluding the impact from changes in foreign currency exchange rates.
Percentage change in Constant Currency Revenue is calculated by dividing the change in Revenue excluding the impact from changes in foreign currency exchange rates by the Revenue of the comparative period. Management uses Percentage change in Constant Currency Revenue to measure the underlying financial performance of the business on a consistent basis over time excluding the impact from changes in foreign currency exchange rates.
Adjusted EBITDA Margin is calculated as Adjusted EBITDA divided by Revenue. Management uses Adjusted EBITDA Margin to evaluate the Company's performance compared to internal targets and to benchmark its performance against key competitors.
Adjusted Operating Margin is calculated as Adjusted Operating Income (Loss) divided by Revenue. Management uses Adjusted Operating Margin to evaluate the Company's performance compared to internal targets and to benchmark its performance against key competitors.
Adjusted Basic EPS is calculated by dividing Adjusted Net Income by the weighted average number of shares outstanding during the period. Adjusted Diluted EPS is calculated by dividing Adjusted Net Income (Loss) by the weighted average number of common shares outstanding, assuming the conversion of all dilutive securities were exercised during the period. Management uses Adjusted Basic EPS and Adjusted Diluted EPS to measure the underlying financial performance of the business on a consistent basis over time.
Adjusted EBITDA Margin, excluding PAW Patrol: The Movie Distribution Revenue is calculated as Adjusted EBITDA excluding PAW Patrol: The Movie Distribution Revenue divided by Revenue, excluding PAW Patrol: The Movie Distribution Revenue. Management uses Adjusted EBITDA Margin excluding PAW Patrol: The Movie Distribution Revenue to evaluate the Company's performance compared to internal targets and to benchmark its performance against key competitors on a consistent basis over time.
Reconciliation of Non-GAAP Financial MeasuresThe following table presents a reconciliation of Operating Income to Adjusted Operating Income, Adjusted EBITDA and Adjusted Net Income, and cash from operating activities to Free Cash Flow for the three months ended June 30, 2022 and 2021:
(in US$ millions) | Q2 2022 | Q2 2021 | $ Change | % Change | |
Operating Income | 118.2 | 46.9 | 71.3 | 152.0 % | |
Restructuring and other related costs1 | 4.5 | — | 4.5 | n.m. | |
Foreign exchange (gain) loss2 | (32.3) | 4.9 | (37.2) | (759.2) % | |
Share based compensation3 | 4.5 | 4.0 | 0.5 | 12.5 % | |
Impairment of intangible assets4 | — | 0.5 | (0.5) | (100.0) % | |
Legal settlement5 | (0.6) | — | (0.6) | n.m. | |
Acquisition related deferred incentive compensation6 | 2.6 | 1.5 | 1.1 | 73.3 | |
Net unrealized gain on investment7 | (0.1) | (0.3) | 0.2 | (66.7) % | |
Investment distribution income8 | (0.1) | (0.4) | 0.3 | (75.0) | |
Loss on Minority interest and other investments9 | 0.5 | — | 0.5 | n.m. | |
Transaction costs10 | 0.4 | 0.6 | (0.2) | (33.3) | |
Adjusted Operating Income | 97.6 | 57.7 | 39.9 | 69.2 % | |
Depreciation and amortization expenses | 16.1 | 24.1 | (8.0) | (33.2) % | |
Adjusted EBITDA | 113.7 | 81.8 | 31.9 | 39.0 % | |
Income tax expense | (27.8) | (11.1) | (16.7) | 150.5 % | |
Finance costs | (2.3) | (2.3) | — | — % | |
Depreciation and amortization expenses | (16.1) | (24.1) | 8.0 | (33.2) % | |
Tax effect of adjustments11 | 4.9 | (2.7) | 7.6 | (281.5) % | |
Adjusted Net Income | 72.4 | 41.6 | 30.8 | 74.0 % | |
Cash provided by operating activities | 111.6 | 94.2 | 17.4 | 18.5 % | |
Cash used in investing activities | (30.4) | (46.9) | 16.5 | (35.2) % | |
Add: | |||||
Cash provided by business acquisitions and investment in limited partnership and | 2.9 | 21.7 | (18.8) | (86.6) % | |
Free Cash Flow | 84.1 | 69.0 | 15.1 | 21.9 % |
________________________________ |
1Restructuring expense primarily relates to changes in personnel. |
The following table presents a reconciliation of Operating Income to Adjusted Operating Income and Adjusted Net Income, and cash from operating activities to Free Cash Flow for the six months ended June 30, 2022 and 2021:
Six Months Ended Jun 30 | |||||
(in US$ millions) | 2022 | 2021 | $ Change | %Change | |
Operating Income | 179.9 | 53.6 | 126.3 | 235.6 % | |
Restructuring and other related costs1 | 5.1 | 0.7 | 4.4 | 628.6 % | |
Foreign exchange (gain) loss2 | (22.7) | 8.6 | (31.3) | (364.0) % | |
Share based compensation3 | 8.6 | 7.2 | 1.4 | 19.4 % | |
Impairment of intangible assets4 | — | 1.4 | (1.4) | n.m. | |
Legal settlement5 | (2.1) | — | (2.1) | n.m. | |
Acquisition related deferred incentive compensation6 | 5.3 | 1.5 | 3.8 | 253.3 % | |
Net unrealized gain on investment7 | (0.1) | (1.2) | 1.1 | (91.7) % | |
Investment distribution income8 | (0.1) | (0.4) | 0.3 | (75.0) | |
Loss on Minority interest and other investments9 | 0.5 | — | 0.5 | n.m. | |
Acquisition related contingent consideration10 | — | (0.7) | 0.7 | (100.0) % | |
Transaction costs11 | 0.5 | 0.6 | (0.1) | (16.7) % | |
Adjusted Operating Income | 174.9 | 71.3 | 103.6 | 145.3 % | |
Depreciation and amortization expenses | 34.5 | 47.2 | (12.7) | (26.9) % | |
Adjusted EBITDA | 209.4 | 118.5 | 90.9 | 76.7 % | |
Income tax expense | (42.0) | (12.1) | (29.9) | 247.1 % | |
Finance costs | (4.2) | (4.8) | 0.6 | (12.5) % | |
Depreciation and amortization expenses | (34.5) | (47.2) | 12.7 | (26.9) % | |
Tax effect of adjustments12 | 1.2 | (4.4) | 5.6 | (127.3) % | |
Adjusted Net Income | 129.9 | 50.0 | 79.9 | 159.8 % | |
Cash provided by operating activities | 48.7 | 103.2 | (54.5) | (52.8) % | |
Cash used in investing activities | (38.7) | (110.9) | 72.2 | (65.1) % | |
Add: | |||||
Cash used for business acquisitions, investment in limited partnership and Minority | (5.3) | 70.2 | (75.5) | (107.5) | |
Free Cash Flow | 4.7 | 62.5 | (57.8) | (92.5) % | |
_______________________________ |
1Restructuring expense primarily relates to changes in personnel. Restructuring expense in the prior year includes costs related to changes in senior leadership. |
The following tables present reconciliations of Revenue to Constant Currency Toy Gross Product Sales, Revenue to Constant Currency Digital Games revenue and Revenue to Constant Currency Revenue for the three and six months ended June 30, 2022, and 2021:
Six Months Ended Jun 30, | ||||||
(US$ millions) | Q2 2022 | Q2 2021 | 2022 | 2021 | ||
Constant Currency Toy Gross Product Sales | 490.2 | 352.5 | 892.8 | 643.1 | ||
Impact of foreign exchange | (5.8) | 6.5 | (10.9) | 10.6 | ||
Toy Gross Product Sales | 484.4 | 359.0 | 881.9 | 653.7 | ||
Sales Allowances | (46.8) | (32.6) | (93.4) | (71.7) | ||
Toy revenue | 437.6 | 326.4 | 788.5 | 582.0 | ||
Entertainment revenue | 28.4 | 27.5 | 50.6 | 54.4 | ||
Digital Games revenue | 40.3 | 36.9 | 91.4 | 71.0 | ||
Revenue | 506.3 | 390.8 | 930.5 | 707.4 | ||
Six Months Ended Jun 30 | ||||||
(US$ millions) | Q2 2022 | Q2 2021 | 2022 | 2021 | ||
Constant Currency Digital Games Revenue | 43.0 | 35.5 | 95.7 | 68.7 | ||
Impact of foreign exchange | (2.7) | 1.4 | (4.3) | 2.3 | ||
Digital Games revenue | 40.3 | 36.9 | $ | 91.4 | $ | 71.0 |
Six Months Ended Jun 30, | ||||||
(US$ millions) | Q2 2022 | Q2 2021 | 2022 | 2021 | ||
Constant Currency Revenue | 514.7 | 382.2 | 944.3 | 693.0 | ||
Impact of foreign exchange | (8.4) | 8.6 | (13.8) | 14.4 | ||
Revenue | 506.3 | 390.8 | 930.5 | 707.4 |
The following tables present the composition of Percentage change in Constant Currency Toy Gross Product Sales, Percentage change in Constant Currency Digital Games Revenue and Percentage change in Constant Currency Revenue for the three and six months ended June 30, 2022, and 2021:
$ Change | % Change | ||||||||
(US$ millions) | Q2 2022 | Q2 2021 | As | Impact of | In | As | In | ||
Toy Gross Product Sales | $ 484.4 | $ 359.0 | $ 125.4 | $ 5.8 | $ 131.2 | 34.9 % | 36.5 % | ||
Digital Games revenue | $ 40.3 | $ 36.9 | $ 3.4 | $ 2.7 | $ 6.1 | 9.2 % | 16.5 % | ||
Revenue | $ 506.3 | $ 390.8 | $ 115.5 | $ 8.4 | $ 123.9 | 29.6 % | 31.7 % | ||
Six Months Ended Jun 30, | $ Change | % Change | |||||||
(US$ millions) | 2022 | 2021 | As | Impact of | In | As | In | ||
Toy Gross Product Sales | $ 881.9 | $ 653.7 | $ 228.2 | $ 10.9 | $ 239.1 | 34.9 % | 36.6 % | ||
Digital Games revenue | $ 91.4 | $ 71.0 | $ 20.4 | $ 4.3 | $ 24.7 | 28.7 % | 34.8 % | ||
Revenue | $ 930.5 | $ 707.4 | $ 223.1 | $ 13.8 | $ 236.9 | 31.5 % | 33.5 % |
Segment Results
The Company's results from operations by reportable segment for the three months ended June 30, 2022 and 2021 are as follows:
(US$ millions) | Q2 2022 | Q2 2021 | ||||||||
Toys | Entertainment | Digital | Corporate | Total | Toys | Entertainment | Digital | Corporate | Total | |
Revenue | 437.6 | 28.4 | 40.3 | — | 506.3 | 326.4 | 27.5 | 36.9 | — | 390.8 |
Operating Income | 62.6 | 17.5 | 8.4 | 29.7 | 118.2 | 28.5 | 12.5 | 12.8 | (6.9) | 46.9 |
Restructuring and other related costs | 4.4 | 0.1 | — | — | 4.5 | — | — | — | — | — |
Foreign exchange (gain) loss | — | — | — | (32.3) | (32.3) | — | — | — | 4.9 | 4.9 |
Share based compensation | 3.1 | 0.4 | 0.6 | 0.4 | 4.5 | 3.7 | 0.1 | 0.2 | — | 4.0 |
Impairment of intangible assets | — | — | — | — | — | — | — | 0.5 | — | 0.5 |
Legal settlement | — | — | — | (0.6) | (0.6) | — | — | — | — | — |
Acquisition related deferred incentive compensation | 1.6 | — | 1.0 | — | 2.6 | 1.3 | — | 0.2 | — | 1.5 |
Net unrealized gain on investment | — | — | — | (0.1) | (0.1) | — | — | — | (0.3) | (0.3) |
Investment distribution income | — | — | — | (0.1) | (0.1) | — | — | — | (0.4) | (0.4) |
Fair value loss on Minority interest and other investments | — | — | — | 0.5 | 0.5 | — | — | — | — | — |
Transaction costs | — | — | — | 0.4 | 0.4 | — | — | — | 0.6 | 0.6 |
Adjusted Operating Income | 71.7 | 18.0 | 10.0 | (2.1) | 97.6 | 33.5 | 12.6 | 13.7 | (2.1) | 57.7 |
Depreciation and amortization | 11.5 | 3.1 | 1.5 | — | 16.1 | 13.8 | 8.4 | 1.9 | — | 24.1 |
Adjusted EBITDA | 83.2 | 21.1 | 11.5 | (2.1) | 113.7 | 47.3 | 21.0 | 15.6 | (2.1) | 81.8 |
ADDENDUM
Effective January 1, 2022, the Company revised its reportable operating segments to align with its current business structure and how the Company's new CODM reviews operations and makes decisions. The following table presents 2021 segments in the same format that the Company presents its operating segments in 2022.
(US$ millions) | Year Ended December 31, 2021 | ||||
Toys | Entertainment | Digital | Corporate & | Total | |
Revenue | 1,731.8 | 135.8 | 174.8 | — | 2,042.4 |
Operating Income | 159.0 | 53.4 | 67.5 | (7.7) | 272.2 |
Restructuring and other related costs | 2.3 | — | 0.2 | — | 2.5 |
Foreign exchange gain | — | — | — | (2.9) | (2.9) |
Share based compensation | 13.4 | 0.4 | 1.5 | — | 15.3 |
Impairment of goodwill | 1.9 | — | — | — | 1.9 |
Impairment of intangible assets | — | 2.1 | 0.5 | — | 2.6 |
Acquisition related deferred incentive compensation | 4.3 | — | 2.5 | — | 6.8 |
Net unrealized gain on investment | — | — | — | (0.9) | (0.9) |
Investment distribution income | — | — | — | (0.6) | (0.6) |
Acquisition related contingent consideration | 2.7 | — | — | — | 2.7 |
Transaction costs | — | — | — | 2.8 | 2.8 |
Gain on disposal of asset | (0.2) | — | — | — | (0.2) |
Adjusted Operating Income | 183.4 | 55.9 | 72.2 | (9.3) | 302.2 |
Depreciation and amortization | 56.3 | 48.2 | 7.4 | — | 111.9 |
Adjusted EBITDA | 239.7 | 104.1 | 79.6 | (9.3) | 414.1 |
(US$ millions) | Q1 2021 | ||||
Toys | Entertainment | Digital | Corporate | Total | |
Revenue | 255.6 | 26.9 | 34.1 | — | 316.6 |
Operating Income | (12.1) | 10.6 | 13.2 | (5.0) | 6.7 |
Restructuring and other related costs | 0.7 | — | — | — | 0.7 |
Foreign exchange loss | — | — | — | 3.7 | 3.7 |
Share based compensation | 2.8 | 0.1 | 0.3 | — | 3.2 |
Impairment of intangible assets | — | 0.9 | — | — | 0.9 |
Net unrealized gain on investment | — | — | — | (0.9) | (0.9) |
Acquisition related contingent consideration | (0.7) | — | — | — | (0.7) |
Adjusted Operating Income | (9.3) | 11.6 | 13.5 | (2.2) | 13.6 |
Depreciation and amortization | 14.4 | 6.6 | 2.1 | — | 23.1 |
Adjusted EBITDA | 5.1 | 18.2 | 15.6 | (2.2) | 36.7 |
(US$ millions) | Q2 2021 | ||||
Toys | Entertainment | Digital | Corporate | Total | |
Revenue | 326.4 | 27.5 | 36.9 | — | 390.8 |
Operating Income | 28.5 | 12.5 | 12.8 | (6.9) | 46.9 |
Foreign exchange loss | — | — | — | 4.9 | 4.9 |
Share based compensation | 3.7 | 0.1 | 0.2 | — | 4.0 |
Impairment of intangible assets | — | — | 0.5 | — | 0.5 |
Acquisition related deferred incentive compensation | 1.3 | — | 0.2 | — | 1.5 |
Net unrealized gain on investment | — | — | — | (0.3) | (0.3) |
Investment distribution income | — | — | — | (0.4) | (0.4) |
Transaction costs | — | — | — | 0.6 | 0.6 |
Adjusted Operating Income | 33.5 | 12.6 | 13.7 | (2.1) | 57.7 |
Depreciation and amortization | 13.8 | 8.4 | 1.9 | — | 24.1 |
Adjusted EBITDA | 47.3 | 21.0 | 15.6 | (2.1) | 81.8 |
(US$ millions) | Q3 2021 | ||||
Toys | Entertainment | Digital | Corporate | Total | |
Revenue | 607.8 | 52.9 | 53.8 | — | 714.5 |
Operating Income | 128.0 | 18.2 | 24.2 | 9.1 | 179.5 |
Restructuring and other related costs | 0.4 | — | — | — | 0.4 |
Foreign exchange gain | — | — | — | (10.8) | (10.8) |
Share based compensation | 3.4 | 0.1 | 0.6 | — | 4.1 |
Acquisition related deferred incentive compensation | 1.5 | — | 1.2 | — | 2.7 |
Investment distribution income | — | — | — | (0.2) | (0.2) |
Transaction costs | — | — | — | 0.1 | 0.1 |
Gain on disposal of asset | (0.2) | — | — | — | (0.2) |
Adjusted Operating Income | 133.1 | 18.3 | 26.0 | (1.8) | 175.6 |
Depreciation and amortization | 13.4 | 26.9 | 1.4 | — | 41.7 |
Adjusted EBITDA | 146.5 | 45.2 | 27.4 | (1.8) | 217.3 |
(US$ millions) | Q4 2021 | ||||
Toys | Entertainment | Digital | Corporate | Total | |
Revenue | 542.0 | 28.5 | 50.0 | — | 620.5 |
Operating Income | 14.6 | 12.1 | 17.3 | (4.9) | 39.1 |
Restructuring and other related costs | 1.2 | — | 0.2 | — | 1.4 |
Foreign exchange gain | — | — | — | (0.7) | (0.7) |
Share based compensation | 3.5 | 0.1 | 0.4 | — | 4.0 |
Impairment of goodwill | 1.9 | — | — | — | 1.9 |
Impairment of intangible assets | — | 1.2 | — | — | 1.2 |
Acquisition related deferred incentive compensation | 1.5 | — | 1.1 | — | 2.6 |
Net unrealized loss on investment | — | — | — | 0.3 | 0.3 |
Acquisition related contingent consideration | 3.4 | — | — | — | 3.4 |
Transaction costs | — | — | — | 2.1 | 2.1 |
Adjusted Operating Income | 26.1 | 13.4 | 19.0 | (3.2) | 55.3 |
Depreciation and amortization | 14.7 | 6.3 | 2.0 | — | 23.0 |
Adjusted EBITDA | 40.8 | 19.7 | 21.0 | (3.2) | 78.3 |
View original content:https://www.prnewswire.com/news-releases/spin-master-reports-q2-2022-financial-results-and-announces-dividend-301594744.html
SOURCE Spin Master Corp.
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