TORONTO, May 3, 2023
/CNW/ - 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 months ended March 31, 2023. The Company's full
Management's Discussion and Analysis ("MD&A") for the three
months ended March 31, 2023 is available under the Company's
profile on SEDAR (www.sedar.com) and posted on the Company's web
site at www.spinmaster.com. 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.
"Our first quarter performance was ahead of expectations and
reflects encouraging entertainment and digital games performance.
We saw continued pressure from excess toy inventory at retail and
retailer caution, alongside the return of historical seasonality
for Toy Gross Product Sales," said Max
Rangel, Spin Master's Global President & CEO. "As we
continue to navigate the fluid environment, we remain confident in
our strategy to reimagine everyday play, leveraging the power of
our three creative centres to capture market share, deliver
profitable growth and create long-term shareholder value. In 2023,
we will bring breakthrough innovation to the toy aisle, alongside
impressive launches within our core and licensed brand portfolios.
Our investment in the creation of multi-platform content will be
fully realized with the release of our most diverse entertainment
slate to date, including the highly anticipated second PAW Patrol
theatrical release and two new original series, which are expected
to drive new licensing and merchandising opportunities. Finally, we
will continue to expand our digital games ecosystem with several
new digital games and gaming experiences designed to broaden our
audience base, attracting kids of all ages and spawning new fans
and player communities. Given our financial framework for value
creation, the power of our three creative centres and our strong
financial position, we are well-positioned to execute against our
strategy, investing in innovation, geographic expansion and
acquisitions to drive long-term profitable growth and maximize
shareholder value."
"As expected, Toy Gross Product Sales in the first quarter of
2023 declined in comparison to 2022, amidst inventory clearance
activities at retail arising from the carryover of inventory from
Q4 2022 and challenging comps from movie-related launches in Q1
2022," said Mark Segal, Spin
Master's Chief Financial Officer. "We expect retail inventory
headwinds to be over by the end of the second quarter. An
anticipated shift back to more normal toy seasonal revenue patterns
supports our expectation of strong year-over-year revenue growth in
the second half of 2023. Our financial discipline and effective
cost management, and solid entertainment and digital games
performance, enabled us to generate strong Adjusted EBITDA of over
$30 million for the quarter. Over the
last five years our three creative centres have generated close to
a billion dollars in Free Cash Flow, enabling us to execute on
multiple strategic M&A transactions, innovative IP-driven
growth, geographic expansion and investment in content and digital
games, as well as enhancing total shareholder returns through the
introduction of a dividend and a share repurchase program."
Consolidated Financial Highlights for Q1 2023 as compared to
the same period in 2022
- Revenue was $271.4 million, a
decrease of 36.0% from $424.2
million. Constant Currency Revenue1 was
$275.6 million, a decrease of 35.0%,
from $424.2 million.
- Revenue declined by 46.9% in Toys and 7.0% in Digital Games,
partially offset by a 69.4% increase in Entertainment.
- Operating Loss was $6.1 million
compared to Operating Income of $61.7
million.
- Operating Margin1 was (2.2)% compared to 14.5%.
- Adjusted Operating Income1 was $12.7 million compared to $77.3 million.
- Adjusted Operating Margin1 was 4.7% compared to
18.2%.
- Adjusted EBITDA1 was $30.6
million compared to $95.7
million.
- Adjusted EBITDA Margin1 was 11.3% compared to
22.6%.
- Cash used in operating activities was $4.3 million compared to $62.9 million.
- Free Cash Flow1 was $(34.4)
million compared to $(79.4)
million.
- The Company repurchased and cancelled 241,500 subordinate
voting shares during the quarter, through the Company's normal
course issuer bid ("NCIB") program, for proceeds of $6.3 million. Subsequent to March 31, 2023, the Company repurchased 156,200
subordinate voting shares for cancellation at a cost of
$4.2 million.
- On January 17, the Company
acquired certain assets of 4D Brands International Inc. for total
purchase consideration of $20.2
million. On February 2, the
Company acquired the HEXBUG brand of toys from Innovation
First International, Inc., for total purchase consideration of
$15.5 million. The acquisitions are
reported in the Activities, Games & Puzzles and Plush and
Wheels & Action product categories within the Toys operating
segment, respectively.
- Subsequent to the quarter end, the Company acquired certain
intellectual property of Mondrian Blocks, a Hungarian company, for
total purchase consideration of $3.0
million. The acquisition is expected to complement the
Company's existing Games & Puzzles offering.
- Subsequent to March 31, 2023, the
Company declared a quarterly dividend of 0.06 CAD per outstanding subordinate voting share
and multiple voting share in respect of the second quarter of 2023,
payable July 14, 2023.
Consolidated Financial Results as compared to the same period
in 2022
(US$ millions,
except per share information)
|
|
|
|
|
Q1
2023
|
Q1
2022
|
$
Change
|
%
Change
|
Consolidated
Results
|
|
|
|
|
Revenue
|
$
271.4
|
$
424.2
|
$
(152.8)
|
(36.0) %
|
|
|
|
|
|
Constant Currency
Revenue1
|
$
275.6
|
|
$
(148.6)
|
(35.0) %
|
|
|
|
|
|
|
|
|
|
|
Operating (Loss)
Income
|
$
(6.1)
|
$ 61.7
|
$
(67.8)
|
(109.9) %
|
Operating
Margin
|
(2.2) %
|
14.5 %
|
|
(16.7) %
|
|
|
|
|
|
Adjusted Operating
Income1,2
|
$ 12.7
|
$ 77.3
|
$
(64.6)
|
(83.6) %
|
Adjusted Operating
Margin1
|
4.7 %
|
18.2 %
|
|
(13.5) %
|
|
|
|
|
|
Net (Loss)
Income
|
$
(1.9)
|
$ 45.6
|
$
(47.5)
|
(104.2) %
|
Adjusted Net
Income1,2
|
$ 12.3
|
$ 57.5
|
$
(45.2)
|
(78.6) %
|
|
|
|
|
|
Adjusted
EBITDA1,2
|
$ 30.6
|
$ 95.7
|
$
(65.1)
|
(68.0) %
|
Adjusted EBITDA
Margin1
|
11.3 %
|
22.6 %
|
|
(11.3) %
|
Earnings Per Share
("EPS")
|
|
|
|
|
Basic EPS
|
$
(0.02)
|
$ 0.45
|
|
|
Diluted EPS
|
$
(0.02)
|
$ 0.43
|
|
|
Adjusted Basic
EPS1
|
$ 0.12
|
$ 0.56
|
|
|
Adjusted Diluted
EPS1
|
$ 0.12
|
$ 0.55
|
|
|
Weighted average
number of shares (in millions)
|
|
|
|
|
Basic
|
103.0
|
102.4
|
|
|
Diluted
|
106.6
|
105.5
|
|
|
|
|
|
|
Selected Cash Flow
Data
|
|
|
|
|
Cash used in operating
activities
|
$ (4.3)
|
$
(62.9)
|
$
58.6
|
(93.2) %
|
Cash used in investing
activities
|
$
(56.6)
|
$ (8.3)
|
$
(48.3)
|
581.9 %
|
Free Cash
Flow1
|
$
(34.4)
|
$
(79.4)
|
$
45.0
|
(56.7) %
|
1 Non-GAAP
financial measure or ratio. See "Non-GAAP Financial Measures and
Ratios".
|
2
Adjustments for the three months ended March 31, 2023 include
Foreign exchange loss of $4.3 million (2022 - loss of $9.6
million), comprised of an unrealized loss of $0.6 million and
realized loss of $3.7 million, Share based compensation of $5.4
million (2022 - $4.1 million), Restructuring and other related
costs of $3.8 million (2022 - $0.6 million), Acquisition related
deferred incentive compensation of $2.1 million (2022 - $2.7
million), and Transaction costs of $0.6 million (2022 - 0.1
million). Refer to the "Reconciliation of Non-GAAP Financial
Measures" section for further details.
|
Segmented Financial Results as compared to the same period in
2022
|
|
|
(US$
millions)
|
Q1
2023
|
Q1
2022
|
|
Toys
|
Entertainment
|
Digital
Games
|
Corporate
& Other1
|
Total
|
Toys
|
Entertainment
|
Digital
Games
|
Corporate
& Other1
|
Total
|
Revenue
|
$
186.3
|
$
37.6
|
$ 47.5
|
$
—
|
$
271.4
|
$
350.9
|
$
22.2
|
$ 51.1
|
$
—
|
$
424.2
|
|
|
|
|
|
|
|
|
|
|
|
Operating (Loss)
Income
|
$ (41.8)
|
$
29.3
|
$ 16.2
|
$
(9.8)
|
$
(6.1)
|
$ 41.4
|
$
11.2
|
$ 19.8
|
$ (10.7)
|
61.7
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted (Loss)
Operating Income2
|
$ (33.4)
|
$
29.9
|
$ 19.0
|
$
(2.8)
|
$
12.7
|
$ 46.4
|
$
11.4
|
$ 21.6
|
$
(2.1)
|
$
77.3
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA2
|
$ (21.4)
|
$
33.6
|
$ 21.0
|
$
(2.6)
|
$
30.6
|
$ 58.9
|
$
15.8
|
$ 23.1
|
$
(2.1)
|
$
95.7
|
|
|
|
|
|
|
|
|
|
|
|
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 Investment in a limited
partnership.
|
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 March 31, 2023 and
2022:
(US$
millions)
|
Q1
2023
|
Q1
2022
|
$
Change
|
%
Change
|
Preschool and Dolls
& Interactive
|
$
84.0
|
$
151.8
|
$
(67.8)
|
(44.7) %
|
Activities, Games &
Puzzles and Plush
|
$
61.1
|
$
101.9
|
$
(40.8)
|
(40.0) %
|
Wheels &
Action
|
$
43.8
|
$
99.7
|
$
(55.9)
|
(56.1) %
|
Outdoor
|
$
27.4
|
$
44.1
|
$
(16.7)
|
(37.9) %
|
Toy Gross Product
Sales 1
|
$
216.3
|
$
397.5
|
$
(181.2)
|
(45.6) %
|
Constant Currency
Toy Gross Product Sales1
|
$
219.7
|
|
$
(177.8)
|
(44.7) %
|
|
|
|
|
|
Sales
Allowances2
|
$
(30.0)
|
$
(46.6)
|
$
16.6
|
(35.6) %
|
Sales Allowances %
of GPS
|
13.9 %
|
11.7 %
|
|
2.2 %
|
Toy
revenue
|
$
186.3
|
$
350.9
|
$
(164.6)
|
(46.9) %
|
|
|
|
|
|
Operating (Loss)
Income
|
$
(41.8)
|
$
41.4
|
$
(83.2)
|
(201.0) %
|
Operating
Margin3
|
(22.4) %
|
11.8 %
|
|
(34.2) %
|
Adjusted
EBITDA1
|
$
(21.4)
|
$
58.9
|
$
(80.3)
|
(136.3) %
|
Adjusted EBITDA
Margin1
|
(11.5) %
|
16.8 %
|
|
(28.3) %
|
1 Non-GAAP
financial measure or ratio. See "Non-GAAP Financial Measures and
Ratios".
|
2 The
Company enters into arrangements to provide sales allowances
requested by customers relating to cooperative advertising,
contractual and negotiated discounts, volume rebates, markdowns,
and costs incurred by customers to sell the Company's
products.
|
3 Operating
Margin is calculated as segment Operating (Loss) Income divided by
segment Revenue.
|
- Toy revenue decreased by $164.6
million or 46.9% to $186.3
million primarily driven by a decrease in Toy Gross Product
Sales1.
- Toy Gross Product Sales1 declined by $181.2 million or 45.6%, to $216.3 million from $397.5
million. Constant Currency Toy Gross Product
Sales1 declined by $177.8
million or 44.7% to $219.7
million, down from $397.5
million.
- The decline in Toy Gross Product Sales1 was a result
of lower order volume, as customers focused on reducing their
retail inventory levels carried forward from 2022. In comparison,
Toy Gross Product Sales1 in Q1 2022 were supported by
customers ordering earlier in the year and sales related to the
launch of the DC Comics Batman movie and PAW Patrol: The
Movie.
- Sales Allowances decreased by $16.6
million or 35.6% to $30.0
million. As a percentage of Toy Gross Product
Sales1, Sales Allowances increased by 2.2% to 13.9% from
11.7%, primarily driven by geographic and customer mix.
- Operating Loss was $41.8 million
compared to Operating Income of $41.4
million representing a variance of $83.2 million.
- Operating Margin was (22.4)% compared to 11.8%. The decline was
due to lower Toy revenue relative to selling, general &
administrative expenses and depreciation and amortization.
- Adjusted EBITDA Margin1 was (11.5)% compared to
16.8%. Adjusted EBITDA Margin1 declined primarily as a
result of lower Operating Margin.
Entertainment Segment Results
The following table provides a summary of Entertainment segment
operating results, for the three months ended March 31, 2023
and 2022:
(US$
millions)
|
Q1
2023
|
Q1
2022
|
$
Change
|
%
Change
|
Entertainment
revenue
|
$
37.6
|
$
22.2
|
$
15.4
|
69.4 %
|
Operating
Income
|
$
29.3
|
$
11.2
|
$
18.1
|
161.6 %
|
Operating
Margin
|
77.9 %
|
50.5 %
|
|
27.4 %
|
Adjusted Operating
Income1
|
$
29.9
|
$
11.4
|
$
18.5
|
162.3 %
|
Adjusted Operating
Margin1
|
79.5 %
|
51.4 %
|
|
28.1 %
|
1 Non-GAAP
financial measure or ratio. See "Non-GAAP Financial Measures and
Ratios".
|
- Entertainment revenue increased by $15.4
million or 69.4% to $37.6
million, driven by higher distribution revenue and licensing
and merchandising revenue primarily related to PAW Patrol
and the newly launched Rubble & Crew. Constant Currency
Entertainment Revenue1 increased by $15.4 million or 69.4% to $37.6 million, from $22.2
million.
- Operating Margin was 77.9% compared to 50.5%.
- Adjusted Operating Margin1 was 79.5% compared to
51.4%.
- Operating Margin and Adjusted Operating Margin1
increased primarily due to higher distribution revenue and
licensing and merchandising revenue as well as lower costs due to
fewer content deliveries in the current year.
Digital Games Segment Results
The following table provides a summary of Digital Games segment
operating results, for the three months ended March 31, 2023
and 2022:
(US$
millions)
|
Q1
2023
|
Q1
2022
|
$
Change
|
%
Change
|
Digital Games
revenue
|
$
47.5
|
$
51.1
|
$
(3.6)
|
(7.0) %
|
Operating
Income
|
$
16.2
|
$
19.8
|
$
(3.6)
|
(18.2) %
|
Operating
Margin
|
34.1 %
|
38.7 %
|
|
(4.6) %
|
Adjusted Operating
Income1
|
$
19.0
|
$
21.6
|
$
(2.6)
|
(12.0) %
|
Adjusted Operating
Margin1
|
40.0 %
|
42.3 %
|
|
(2.3) %
|
1 Non-GAAP
financial measure or ratio. See "Non-GAAP Financial Measures and
Ratios".
|
- Digital Games revenue decreased by $3.6
million or 7.0% to $47.5
million primarily due to lower in-app revenue in
Toca Life World. Constant
Currency Digital Games Revenue1 decreased by
$1.9 million or 3.7% to $49.2 million, down from $51.1 million.
- Operating Margin was 34.1% compared to 38.7%. Operating Margin
decreased due to higher development costs related to the investment
in future digital games. Adjusted Operating Margin1 was
40.0% compared to 42.3%. Adjusted Operating Margin1
decreased due to a decrease in Operating Margin partially offset by
higher acquisition related deferred incentive compensation.
Liquidity and Capitalization
As at March 31, 2023, the Company had unutilized liquidity
of $1,079.3 million, comprised of
$569.3 million in Cash and cash
equivalents and $510.0 million under
the Company's credit facilities.
On March 10, 2023, the Company
entered into an automatic share repurchase plan with its designated
broker to effect the purchase of subordinate voting shares under
the NCIB. The Company repurchased and cancelled 241,500 subordinate
voting shares during the quarter for proceeds of $6.3 million.
Subsequent to the quarter, the Company repurchased 156,200
subordinate voting shares for cancellation at a cost of
$4.2 million.
The weighted average basic and diluted shares outstanding as at
March 31, 2023 were 103.0 million and 106.6 million, compared
to 102.4 million and 105.5 million in the prior year.
The Company's Board of Directors declared a dividend of
C$0.06 per outstanding subordinate
voting share and multiple voting share, payable on July 14, 2023 to shareholders of record at the
close of business on June 30,
2023. The dividend is designated to be an eligible dividend
for purposes of section 89(1) of the Income Tax Act
(Canada).
Outlook
The Company continues to expect 2023 Toy Gross Product
Sales1 to be flat to slightly down compared to 2022.
The Company continues to expect 2023 Toy Gross Product
Sales1 seasonality to return to historical averages of
30%-35% in the first half of the year.
The Company continues to expect 2023 Revenue, excluding PAW
Patrol: The Mighty Movie Distribution Revenue1 to be
in line with 2022.
The Company continues to expect 2023 Adjusted EBITDA Margin,
excluding PAW Patrol: The Mighty Movie Distribution
Revenue1 to be flat to slightly up compared to 2022.
1 Non-GAAP
financial measure or ratio. See "Non-GAAP Financial Measures and
Ratios".
|
2 Operating Margin is calculated as
Operating (Loss) Income divided by Revenue.
|
Forward-Looking Statements
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 2023; future growth expectations in
2023 and beyond; the Company's dividend policy; drivers and trends
for such growth and financial performance; the successful execution
of its strategies for growth; the integration of and benefits from
acquisitions; content and product pipeline and their impacts;
financial position, cash flows, purchases under the NCIB, 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,
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 call
Max Rangel, Global President and
Chief Executive Officer and Mark
Segal, Chief Financial Officer will host a conference call
to discuss the audited financial results on Thursday, May 4, 2023 at 9:30 a.m. (ET).
The call-in numbers for participants are (647) 794-4605 or (877)
502-9276. A live webcast of the call will be accessible via Spin
Master's website at: http://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 for 12 months.
About Spin Master
Spin Master Corp. (TSX:TOY) is a leading global children's
entertainment company, creating exceptional play experiences
through its 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.
Spin Master Corp.
Condensed consolidated interim statements of financial
position
|
Mar
31,
|
Dec
31,
|
(Unaudited, in US$
millions)
|
2023
|
2022
|
Assets
|
|
|
Current
assets
|
|
|
Cash and cash
equivalents
|
569.3
|
644.3
|
Trade
receivables, net
|
177.5
|
311.0
|
Other
receivables
|
56.2
|
49.5
|
Inventories,
net
|
109.6
|
105.1
|
Income tax
receivable
|
10.4
|
—
|
Prepaid expenses
and other assets
|
31.3
|
22.3
|
|
954.3
|
1,132.2
|
Non-current
assets1
|
|
|
Intangible
assets1
|
308.9
|
279.8
|
Goodwill
|
194.6
|
179.0
|
Right-of-use
assets
|
60.3
|
62.9
|
Property, plant
and equipment
|
35.2
|
36.0
|
Deferred income
tax assets
|
95.0
|
94.7
|
Other
assets
|
20.8
|
20.5
|
|
714.8
|
672.9
|
Total
assets1
|
1,669.1
|
1,805.1
|
|
|
|
Liabilities
|
|
|
Current
liabilities1
|
|
|
Trade payables
and accrued liabilities
|
241.8
|
339.4
|
Deferred
revenue
|
14.3
|
11.5
|
Provisions
|
25.8
|
30.7
|
Income tax
payable1
|
—
|
29.7
|
Lease
liabilities
|
15.9
|
16.3
|
|
297.8
|
427.6
|
Non-current
liabilities
|
|
|
Provisions
|
23.8
|
15.1
|
Deferred income
tax liabilities
|
55.6
|
55.7
|
Lease
liabilities
|
52.8
|
54.9
|
|
132.2
|
125.7
|
Total
liabilities1
|
430.0
|
553.3
|
|
|
|
Shareholders'
equity
|
|
|
Share
capital
|
782.7
|
754.7
|
Retained
earnings1
|
460.1
|
477.4
|
Contributed
surplus
|
14.7
|
40.7
|
Accumulated
other comprehensive loss
|
(18.4)
|
(21.0)
|
Total shareholders'
equity1
|
1,239.1
|
1,251.8
|
Total liabilities
and shareholders' equity1
|
1,669.1
|
1,805.1
|
1 December 31, 2022 restated for the change in accounting
policy.
|
Spin Master Corp.
Condensed consolidated interim statements of earnings and
comprehensive income
|
|
(Unaudited, in US$
millions, except earnings per share)
|
Q1
2023
|
Q1
2022
|
|
|
|
Revenue
|
271.4
|
424.2
|
Cost of
sales
|
112.9
|
186.9
|
Gross
profit
|
158.5
|
237.3
|
|
|
|
Expenses
|
|
|
Selling, general and
administrative
|
149.3
|
158.6
|
Depreciation and
amortization
|
6.6
|
7.9
|
Other expense (income),
net
|
4.4
|
(0.5)
|
Foreign exchange
loss
|
4.3
|
9.6
|
Operating (Loss)
Income
|
(6.1)
|
61.7
|
Interest
income
|
(6.7)
|
(0.4)
|
Interest
expense
|
3.1
|
2.3
|
(Loss) Income before
income tax (recovery) expense
|
(2.5)
|
59.8
|
Income tax (recovery)
expense
|
(0.6)
|
14.2
|
Net (Loss)
Income
|
(1.9)
|
45.6
|
|
|
|
Earnings per
share
|
|
|
Basic
|
(0.02)
|
0.45
|
Diluted
|
(0.02)
|
0.43
|
Weighted average
number of shares (in millions)
|
|
|
Basic
|
103.0
|
102.4
|
Diluted
|
106.6
|
105.5
|
|
|
|
|
|
(Unaudited, in US$
millions)
|
Q1
2023
|
Q1
2022
|
Net (Loss)
Income
|
(1.9)
|
45.6
|
Items that may be
subsequently reclassified to Net Income
|
|
|
Foreign currency
translation gain
|
2.6
|
5.3
|
Other comprehensive
income
|
2.6
|
5.3
|
Total comprehensive
income
|
0.7
|
50.9
|
Spin Master Corp.
Condensed consolidated interim statements of cash flows
|
Three Months Ended
Mar 31,
|
(Unaudited, in US$
millions)
|
2023
|
2022
|
|
|
|
Operating
activities
|
|
|
Net (Loss)
Income
|
(1.9)
|
45.6
|
Adjustments to
reconcile Net (Loss) Income to cash used in operating
activities
|
|
|
Income tax (recovery)
expense
|
(0.6)
|
14.2
|
Interest
income
|
(6.7)
|
(0.4)
|
Depreciation and
amortization
|
17.9
|
18.4
|
Loss on disposal of
non-current assets
|
0.4
|
0.5
|
Accretion
expense
|
1.3
|
1.2
|
Amortization of
Facility fee costs
|
0.1
|
0.1
|
Impairment of
non-current assets
|
2.4
|
—
|
Unrealized foreign
exchange loss
|
0.6
|
10.4
|
Share-based
compensation expense
|
4.8
|
4.1
|
Net changes in non-cash
working capital
|
5.4
|
(131.8)
|
Net change in
provisions and other assets
|
4.5
|
2.2
|
Income taxes
paid
|
(39.2)
|
(28.0)
|
Income taxes
received
|
—
|
0.1
|
Interest
received
|
6.7
|
0.5
|
Cash used in
operating activities
|
(4.3)
|
(62.9)
|
|
|
|
Investing
activities
|
|
|
Investment in property,
plant and equipment
|
(6.7)
|
(6.7)
|
Investment in
intangible assets
|
(23.4)
|
(9.8)
|
Business acquisitions,
net of cash acquired
|
(26.5)
|
—
|
Minority interest and
other investments
|
—
|
(1.0)
|
Proceeds from sale of
manufacturing operations
|
—
|
9.2
|
Cash used in
investing activities
|
(56.6)
|
(8.3)
|
|
|
|
Financing
activities
|
|
|
Payment of lease
liabilities
|
(3.9)
|
(3.9)
|
Dividends
paid
|
(4.6)
|
—
|
Repurchase of
shares
|
(6.3)
|
—
|
Cash used in
financing activities
|
(14.8)
|
(3.9)
|
|
|
|
Effect of foreign
currency exchange rate changes on cash and cash
equivalents
|
0.7
|
5.5
|
|
|
|
Net decrease in cash
and cash equivalents during the period
|
(75.0)
|
(69.6)
|
Cash and cash
equivalents, beginning of period
|
644.3
|
562.7
|
Cash and cash
equivalents, end of period
|
569.3
|
493.1
|
Non-GAAP Financial Measures and Ratios
In addition to using financial measures prescribed under
International Financial Reporting Standards ("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
- Revenue, excluding PAW Patrol: The Movie Distribution
Revenue
- Adjusted EBITDA, excluding PAW Patrol: The Movie
Distribution Revenue
- Constant Currency Toy Gross Product Sales
- Constant Currency Digital Games Revenue
- Constant Currency Entertainment Revenue
- Revenue, excluding PAW Patrol: The Mighty Movie
Distribution Revenue
- Constant Currency Revenue
- Adjusted EBITDA
- Adjusted Operating (Loss) Income
- Adjusted Net Income (Loss)
- Free Cash Flow
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:
- Percentage change in Constant Currency Toy Gross Product
Sales
- Percentage change in Constant Currency Digital Games
Revenue
- Percentage change in Constant Currency Entertainment
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 Mighty
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 and three months ended March 31, 2023, as
compared to the same period in 2022 in this Press Release.
Constant Currency Toy Gross Product Sales, Constant Currency
Sales Allowances, Constant Currency Toy Revenue, Constant Currency
Entertainment Revenue, Constant Currency Digital Games Revenue, and
Constant Currency Revenue represent Toy Gross Product Sales, Sales
Allowance, Toy revenue, Entertainment revenue, 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 Sales Allowances, Constant Currency Toy Revenue, Constant
Currency Entertainment Revenue, 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 (Loss) Income is calculated as Operating
(Loss) Income excluding adjustments (as defined in Adjusted
EBITDA). Adjusted Operating (Loss) Income 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.
Revenue, excluding PAW Patrol: The Mighty Movie
Distribution Revenue is calculated as revenue excluding
distribution revenue related to PAW Patrol: The Mighty
Movie. Revenue, excluding PAW Patrol: The Mighty Movie
Distribution Revenue is used to measure the underlying financial
performance of the business on a consistent basis over time.
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.
Adjusted EBITDA, excluding PAW Patrol: The Mighty Movie
Distribution Revenue is calculated as Adjusted EBITDA excluding
distribution revenue related to PAW Patrol: The Mighty
Movie. 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.
Non-GAAP Financial Ratios
Sales Allowances as a percentage of Toy Gross Product Sales is
calculated by dividing Sales Allowances by Toy Gross Product Sales.
Management uses Sales Allowance as a 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 Sales Allowances is
calculated by dividing the change in Sales Allowances excluding the
impact from changes in foreign currency exchange rates by the Sales
Allowances of the comparative period. Management uses Percentage
change in Constant Currency Sales Allowances 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 Toy Revenue is calculated
by dividing the change in Toy Revenue excluding the impact from
changes in foreign currency exchange rates by the Toy Revenue of
the comparative period. Management uses Percentage change in
Constant Currency Toy 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 Entertainment Revenue is
calculated by dividing the change in Entertainment revenue
excluding the impact from changes in foreign currency exchange
rates by the Entertainment revenue of the comparative period.
Management uses Percentage change in Constant Currency
Entertainment 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 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 Measures
The following table presents a reconciliation of Operating
(Loss) Income to Adjusted Operating Income, Adjusted EBITDA,
Adjusted Net Income, and cash used in operating activities and
investing activities to Free Cash Flow for the three months ended
March 31, 2023 and 2022:
(in US$
millions)
|
Q1
2023
|
Q1
2022
|
$
Change
|
%
Change
|
Operating (Loss)
Income
|
(6.1)
|
61.7
|
(67.8)
|
(109.9) %
|
Adjustments:
|
|
|
|
|
|
Share based
compensation1
|
5.4
|
4.1
|
1.3
|
31.7 %
|
|
Foreign exchange
loss2
|
4.3
|
9.6
|
(5.3)
|
(55.2) %
|
|
Restructuring and other
related costs3
|
3.8
|
0.6
|
3.2
|
533.3 %
|
|
Acquisition related
deferred incentive compensation4
|
2.1
|
2.7
|
(0.6)
|
(22.2)
|
|
Impairment of
intangible assets5
|
1.2
|
—
|
1.2
|
n.m.
|
|
Impairment of
goodwill6
|
1.0
|
—
|
1.0
|
n.m.
|
|
Transaction
costs7
|
0.6
|
0.1
|
0.5
|
500.0
|
|
Legal settlement
expense (recovery)8
|
0.2
|
(1.5)
|
1.7
|
(113.3) %
|
|
Impairment of property,
plant and equipment9
|
0.2
|
—
|
0.2
|
n.m.
|
Adjusted Operating
Income
|
12.7
|
77.3
|
(64.6)
|
(83.6) %
|
|
Depreciation and
amortization
|
17.9
|
18.4
|
(0.5)
|
(2.7) %
|
Adjusted
EBITDA
|
30.6
|
95.7
|
(65.1)
|
(68.0) %
|
|
Income tax (recovery)
expense
|
0.6
|
(14.2)
|
14.8
|
(104.2) %
|
|
Interest income
(expense)
|
3.6
|
(1.9)
|
5.5
|
(289.5) %
|
|
Depreciation and
amortization
|
(17.9)
|
(18.4)
|
0.5
|
(2.7) %
|
|
Tax effect of
normalization adjustments10
|
(4.6)
|
(3.7)
|
(0.9)
|
24.3 %
|
Adjusted Net
Income
|
12.3
|
57.5
|
(45.2)
|
(78.6) %
|
|
|
|
|
|
|
Cash used in operating
activities
|
(4.3)
|
(62.9)
|
58.6
|
(93.2) %
|
Cash used in investing
activities
|
(56.6)
|
(8.3)
|
(48.3)
|
581.9 %
|
Add:
|
|
|
|
|
Cash provided by
business acquisitions and investment in limited partnership and
Minority interest and other investments, net of investment
distribution income
|
26.5
|
(8.2)
|
34.7
|
(423.2) %
|
Free Cash
Flow
|
(34.4)
|
(79.4)
|
45.0
|
(56.7) %
|
________________________
|
1 Related to
non-cash expenses associated with the Company's share option
expense and long-term incentive plan.
|
2
Includes foreign exchange (gains) losses generated by the
translation and settlement of monetary assets/liabilities
denominated in a currency other than the functional currency of the
applicable entity and (gains) losses related to the Company's
hedging programs.
|
3
Restructuring expense primarily relates to changes in
personnel.
|
4
Deferred incentive compensation associated with
acquisitions.
|
5
Impairment of intangible assets related to entertainment
content.
|
6
Impairment of goodwill associated with one CGU.
|
7
Professional fees incurred relating to acquisitions and other
transactions.
|
8
Legal settlement in the first quarter of 2023 and 2022.
|
9
Impairment of property plant and equipment related to
tooling.
|
10 Tax
effect of adjustments (Footnotes 1-9). Adjustments are tax effected
at the effective tax rate of the given period.
|
The following tables present reconciliations of Revenue to Constant
Currency Toy Gross Product Sales, Revenue to Constant Currency
Digital Games revenue, Revenue to Constant Currency Entertainment
Revenue, and Revenue to Constant Currency Revenue for the three
months ended March 31, 2023, and 2022:
|
|
(US$
millions)
|
Q1
2023
|
Q1
2022
|
Constant Currency Toy
Gross Product Sales
|
219.7
|
402.6
|
Impact of foreign
exchange
|
(3.4)
|
(5.1)
|
Toy Gross Product
Sales
|
216.3
|
397.5
|
Constant Currency Sales
Allowances
|
(30.9)
|
(48.0)
|
Impact of foreign
exchange
|
0.9
|
1.4
|
Sales
Allowances
|
(30.0)
|
(46.6)
|
Toy
revenue
|
186.3
|
350.9
|
|
|
|
Constant Currency
Entertainment revenue
|
37.6
|
22.4
|
Impact of foreign
exchange
|
—
|
(0.2)
|
Entertainment
revenue
|
37.6
|
22.2
|
|
|
|
Constant Currency
Digital Games revenue
|
49.2
|
54.1
|
Impact of foreign
exchange
|
(1.7)
|
(3.0)
|
Digital Games
revenue
|
47.5
|
51.1
|
|
|
|
Constant Currency
Revenue
|
275.6
|
431.1
|
Impact of foreign
exchange
|
(4.2)
|
(6.9)
|
Revenue
|
271.4
|
424.2
|
The following tables present the composition of Percentage change
in Constant Currency Toy Gross Product Sales, Percentage change in
Constant Currency Digital Games Revenue, Percentage change in
Constant Currency Entertainment Revenue, and Percentage change in
Constant Currency Revenue for the three months ended March 31,
2023 and 2022:
|
|
|
$
Change
|
|
%
Change
|
(US$
millions)
|
Q1
2023
|
Q1
2022
|
|
As
reported
|
Impact of
foreign
exchange
|
In Constant
Currency
|
|
As
reported
|
In
Constant
Currency
|
Toy Gross Product
Sales
|
$
216.3
|
$
397.5
|
|
$
(181.2)
|
$
3.4
|
$
(177.8)
|
|
(45.6) %
|
(44.7) %
|
Sales
Allowances
|
$
(30.0)
|
$
(46.6)
|
|
$ 16.6
|
$
(0.9)
|
$ 15.7
|
|
(35.6) %
|
(33.7) %
|
Toy revenue
|
$
186.3
|
$
350.9
|
|
$
(164.6)
|
$
2.5
|
$
(162.1)
|
|
(46.9) %
|
(46.2) %
|
Entertainment
revenue
|
$
37.6
|
$
22.2
|
|
$ 15.4
|
$
—
|
$ 15.4
|
|
69.4 %
|
69.4 %
|
Digital Games
revenue
|
$
47.5
|
$
51.1
|
|
$
(3.6)
|
$
1.7
|
$
(1.9)
|
|
(7.0) %
|
(3.7) %
|
Revenue
|
$
271.4
|
$
424.2
|
|
$
(152.8)
|
$
4.2
|
$
(148.6)
|
|
(36.0) %
|
(35.0) %
|
Segment Results
The Company's results from operations by reportable segment for
the three months ended March 31, 2023 and 2022 are as
follows:
|
|
|
(US$
millions)
|
Q1
2023
|
Q1
2022
|
|
Toys
|
Entertainment
|
Digital
Games
|
Corporate &
Other
|
Total
|
Toys
|
Entertainment
|
Digital
Games
|
Corporate &
Other
|
Total
|
Revenue
|
186.3
|
37.6
|
47.5
|
—
|
271.4
|
350.9
|
22.2
|
51.1
|
—
|
424.2
|
|
|
|
|
|
|
|
|
|
|
|
Operating (Loss)
Income
|
(41.8)
|
29.3
|
16.2
|
(9.8)
|
(6.1)
|
41.4
|
11.2
|
19.8
|
(10.7)
|
61.7
|
Restructuring and other
related costs
|
3.1
|
0.1
|
0.6
|
—
|
3.8
|
0.5
|
—
|
0.1
|
—
|
0.6
|
Foreign exchange
loss
|
—
|
—
|
—
|
4.3
|
4.3
|
—
|
—
|
—
|
9.6
|
9.6
|
Share based
compensation
|
3.4
|
0.3
|
0.6
|
1.1
|
5.4
|
3.0
|
0.2
|
0.5
|
0.4
|
4.1
|
Impairment of
goodwill
|
1.0
|
—
|
—
|
—
|
1.0
|
—
|
—
|
—
|
—
|
—
|
Impairment of property,
plant and equipment
|
0.2
|
—
|
—
|
—
|
0.2
|
—
|
—
|
—
|
—
|
—
|
Impairment of
intangible assets
|
—
|
0.2
|
0.2
|
0.8
|
1.2
|
—
|
—
|
—
|
—
|
—
|
Legal settlement
expense (recovery)
|
—
|
—
|
—
|
0.2
|
0.2
|
—
|
—
|
—
|
(1.5)
|
(1.5)
|
Acquisition related
deferred incentive compensation
|
0.7
|
—
|
1.4
|
—
|
2.1
|
1.5
|
—
|
1.2
|
—
|
2.7
|
Transaction
costs
|
—
|
—
|
—
|
0.6
|
0.6
|
—
|
—
|
—
|
0.1
|
0.1
|
Adjusted Operating
(Loss) Income
|
(33.4)
|
29.9
|
19.0
|
(2.8)
|
12.7
|
46.4
|
11.4
|
21.6
|
(2.1)
|
77.3
|
Adjusted Operating
Margin
|
(17.9) %
|
79.5 %
|
40.0 %
|
n.m.
|
4.7 %
|
13.2 %
|
51.4 %
|
42.3 %
|
n.m.
|
18.2 %
|
Depreciation and
amortization
|
12.0
|
3.7
|
2.0
|
0.2
|
17.9
|
12.5
|
4.4
|
1.5
|
—
|
18.4
|
Adjusted
EBITDA
|
(21.4)
|
33.6
|
21.0
|
(2.6)
|
30.6
|
58.9
|
15.8
|
23.1
|
(2.1)
|
95.7
|
Adjusted EBITDA
Margin
|
(11.5) %
|
89.4 %
|
44.2 %
|
n.m.
|
11.3 %
|
16.8 %
|
71.2 %
|
45.2 %
|
n.m.
|
22.6 %
|
View original
content:https://www.prnewswire.com/news-releases/spin-master-reports-q1-2023-financial-results-301815192.html
SOURCE Spin Master Corp.