Disney, Walmart, Hallmark in Birthday Party Collaboration
Disney announced a collaboration today with Hallmark and Walmart for Hallmark Dream Party featuring favorite Disney, Pixar, and Marvel characters.
Hallmark Dream Party products are available in more than 1,400 Walmart stores and in select independent party specialty stores nationwide. For more information and to locate a participating Walmart store, visit HallmarkParty.com.
The Dream Party collection offers a complete package of party décor, activities, and accessories. The initial launch of Dream Party features the following themes:
• Disney Princess: The Royal Event of the Year
• Disney/Pixar Cars: The Birthday Grand Prix
• Minnie Mouse: Minnie’s Bow-tique Birthday
• Spider-Man: Spider Heroes Unite
The Hallmark Dream Party collection includes products in three categories:
Set the Scene: Products that easily transform the party room. Options include Room Transformation Kits with up to 22 pieces to decorate the ceilings and walls, balloon drops, hanging centerpieces (example: Disney Princess chandelier), snack caddies (example: Marvel’s Spider-Man on the Brooklyn Bridge), doorway curtains and wearable items (example: Minnie Mouse ears headband). Prices range from $3.49 to $8.49.
Create the Adventure: Games and activities that coordinate with the party theme. Each theme has a backdrop and props that can be used for picture-taking. Party games include a Disney/Pixar Cars Red Light, Green Light game, Spider-Man scavenger hunt, Pin the Bow on Minnie Mouse, and a Disney Princess Tiara Bingo game. Prices range from $2.99 to $7.49.
Remember the Fun: Kid-friendly souvenirs to send home with the guests. These include bottles of bubbles with wands, stickers, favor bags, and 48-piece party favor packs for eight guests. Prices range from $1.89 to $9.99 for packages with multiple favors.
LeapFrog Announces Q2
LeapFrog Enterprises, Inc., announced financial results for the second quarter ended June 30, 2013. Highlights of second quarter 2013 results compared to second quarter 2012 results:
• Consolidated net sales were up 16 percent.
• U.S. segment net sales were up 19 percent, and international segment net sales were up 10 percent.
• Loss from operations improved 34 percent.
• Net loss per basic and diluted share was $0.05.
• Normalized net loss per basic and diluted share, which includes an effective 37.5 percent tax rate, was $0.04, an improvement of $0.03.
• Adjusted EBITDA was positive in the second quarter for the first time as a public company.
Financial Overview for the Second Quarter 2013 Compared to the Second Quarter 2012:
Second quarter 2013 net sales were $83 million, up 16 percent compared to $71.5 million last year, and were not materially impacted by changes in currency exchange rates. Net sales growth was largely driven by sales of the LeapPad learning tablet line and LeapReader reading-and-writing line, which benefitted from new products being shipped to retailers for summer 2013 launches. The company experienced double-digit net sales growth in both key business categories, multimedia learning (which includes learning tablets, learning game systems, and learn-to-read systems) and learning toys. Within the multimedia learning business, content, platforms, and accessories each delivered solid net sales growth. In the U.S. segment, net sales were $58.4 million, up 19 percent compared to $49.1 million last year. In the International segment, net sales were $24.6 million, up 10 percent compared to $22.3 million last year, and included a 1 percent negative impact from changes in currency exchange rates.
Loss from operations for the second quarter was $4.9 million, an improvement of 34 percent compared to $7.5 million a year ago. Loss from operations as a percentage of net sales was 5.9 percent, an improvement of 460 basis points compared to 10.5 percent a year ago.
Net loss (GAAP) for the second quarter was $3.3 million, an improvement of 59 percent compared to $8.1 million a year ago. Net loss per basic and diluted share (GAAP) was $0.05, an improvement of $0.07, or 58 percent, compared to $0.12 a year ago.
Normalized net loss (non-GAAP) for the second quarter, which reflects an effective 37.5 percent tax rate, was $2.8 million, an improvement of 44 percent compared to $4.9 million a year ago. Normalized net loss per basic and diluted share (non-GAAP) was $0.04, an improvement of $0.03, or 43 percent, compared to $0.07 a year ago. LeapFrog provide normalized net income (loss) measures, which are non-GAAP measures, to help investors review the company’s performance and performance trends excluding discrete tax items which have historically been significant.
Adjusted EBITDA for the second quarter was $2.6 million, up $3.3 million compared to a year ago, and was positive in the second quarter for the first time as a public company.
For the full year 2013, LeapFrog reiterating its guidance. The company expects:
• Net sales to increase at a high single-digit percentage growth rate compared to 2012.
• Operating margin to be relatively flat to 2012, as it makes long-term investments in content, new business categories, international expansion, online communities, and systems.
• Net income per diluted share (GAAP) and normalized net income per diluted share (non-GAAP) to both be in the range of $0.57 to $0.60. This assumes an effective 37.5 percent tax rate, which does not include one-time discrete tax items. LeapFrog may incur some discrete tax items in 2013, but is not able to estimate or anticipate those discrete tax items at this time, which primarily relate to any adjustment of our remaining valuation allowance against our deferred tax assets. For the full year 2012, net income per diluted share (GAAP) was $1.24 and normalized net income per diluted share (non-GAAP) was $0.56.
• Capital expenditures to be in the range of $30 million to $35 million, compared to $25 million in 2012, as the company makes long-term investments in the business. Capital expenditures include purchases of property and equipment and capitalization of product costs.
For the third quarter of 2013, the company is initiating guidance and expects:
• Net sales to increase at a mid-to-high single-digit percentage growth rate compared to the third quarter of 2012.
• Net income per diluted share (GAAP) and normalized net income per diluted share (non-GAAP) to both be approximately $0.32, which is flat to normalized net income per diluted share in the third quarter of last year.
MEGA Brands Reports Q2
MEGA Brands, Inc., announced its financial results for the second quarter ended June 30, 2013. Consolidated net sales in the second quarter increased 4 percent to $98.1 million compared to $94.5 million in the corresponding 2012 period.
Sales for the Toys segment increased 4 percent compared to the second quarter of 2012, driven by higher product shipments in Preschool & Girls construction toys.
Sales for the Stationery & Activities segment were up 3 percent, the ninth consecutive quarter of year-over-year growth.
On a geographical basis, North American sales were 5 percent higher and international sales were level. Earnings before interest, taxes, depreciation and amortization (EBITDA) increased to $9.8 million compared to $9.2 million in the second quarter of 2012.
Net earnings were $4 million or $0.10 per diluted share ($0.18 per basic share) compared to net earnings of $1.6 million or a loss of $0.12 per diluted share (earnings of $0.10 per basic share) in the second quarter of 2012.
For the six-month period ended June 30, 2013, consolidated net sales increased 7 percent to $162.6 million compared to $152.7 million in the same period last year, with 9 percent growth in Toys, 3 percent in Stationery & Activities, 8 percent in North America and 4 percent in International. EBITDA increased to $8.8 million compared to $7.1 million in the corresponding period in 2012. Net loss was $3.2 million or $0.16 per diluted share compared to a net loss of $6.9 million or $0.42 per diluted share in the corresponding period of 2012.
Activision Reports Q2
Activision Blizzard, Inc., announced financial results for the second quarter of 2013. For the quarter ended June 30, 2013, Activision Blizzard’s GAAP net revenues were $1.05 billion, as compared with $1.08 billion for the second quarter of 2012. On a non-GAAP basis, the company’s net revenues were $608 million, as compared with $1.05 billion for the second quarter of 2012. For the second quarter, GAAP net revenues from digital channels were $387 million and represented 37 percent of the company’s total revenues. On a non-GAAP basis, net revenues from digital channels were $383 million and represented a record 63 percent of the company’s total revenues.
For the quarter ended June 30, 2013, Activision Blizzard’s GAAP earnings per diluted share were $0.28, as compared with $0.16 for the second quarter of 2012. On a non-GAAP basis, the company’s earnings per diluted share were $0.08, as compared with $0.20 for the second quarter of 2012.
Selected Highlights:
• As of July 31, 2013, the Skylanders franchise has generated, life-to-date, more than $1.5 billion in worldwide retail sales.
• As of June 30, 2013, Blizzard Entertainment’s World of Warcraft remains the No. 1 subscription-based MMORPG, with approximately 7.7 million subscribers.
On July 25, 2013, Activision Blizzard announced that it reached an agreement under which the company will acquire approximately 429 million company shares and certain tax attributes from Vivendi, in exchange for approximately $5.83 billion in cash, or $13.60 per share acquired before taking into account any future benefit from these tax attributes.
In a related transaction, ASAC II LP, an investment vehicle led by CEO Bobby Kotick and Activision Blizzard co-chairman Brian Kelly, will purchase approximately 172 million company shares from Vivendi for approximately $2.34 billion in cash, or $13.60 per share. Following the completion of the transactions, which are expected to close by the end of September 2013, Vivendi will no longer be the majority shareholder, but will retain a stake of approximately 83 million shares, or approximately 12 percent. During the quarter, Activision Blizzard paid a cash dividend of $0.19 per common share, totaling $216 million, to shareholders of record at the close of business on March 20, 2013.
Based on its second quarter results, Activision Blizzard is raising its full year GAAP outlook. The company’s third quarter and full year net revenue and earnings per share do not include any potential impact from the transaction with Vivendi announced on July 25, 2013.