MEGA Announces Q4, 2013 Results
MEGA Brands, Inc., announced its financial results for the fourth quarter and full year ended December 31, 2013.
Full year 2013 results are as follows:
• Consolidated net sales decreased 4 percent to $404.7 million in 2013, compared to $420.3 million in 2012.
• Net earnings increased 25 percent to $20.8 million or $0.93 per diluted share, compared to $16.6 million or $0.84 per diluted share in 2012.
• Net sales decreased 5 percent in the Toys segment while net sales for Stationery & Activities increased 1 percent. On a geographic segment basis, net sales decreased 3 percent in North America and 5 percent in International. Adjusted earnings before EBITDA was $47 million compared to $49.2 million in 2012.
Fourth quarter results are as follows:
• Consolidated net sales decreased 21 percent to $101.2 million, compared to $127.5 million in the fourth quarter of 2012.
• Net earnings were $1.4 million or $0.04 per diluted share, compared to $4 million or $0.01 per diluted share in the same 2012 period.
• Net sales were down 24 percent in the Toys segment and 3 percent in Stationery & Activities. On a geographic segment basis, North American net sales decreased 20 percent and International net sales decreased 23 percent. Adjusted EBITDA was $8.9 million compared to $13.9 million in the fourth quarter of 2012.
MEGA Brands says that several factors contributed to the decline in fourth quarter shipments, including a difficult retail environment, which affected the performance of the entire toy industry, particularly in products for boys. MEGA also faced a difficult comparison with the fourth quarter of 2012, which saw an 18 percent net sales increase compared to the previous year.
2013 highlights are as follows:
The MEGA Bloks First Builders product line had a year of record growth and the retail performance of the Call of Duty line equaled or bettered the sell through of any previous MEGA Bloks product launch.
The company ended 2013 in a strong financial position, with long-term debt reduced 48 percent to $59.3 million compared to $113 million at the end of 2012, cash on hand of $16.4 million compared to $8 million the previous year, and no borrowings against working capital facility. The company also completed a three-year program during which it invested over $30 million to increase efficiency and production capacity in its Montreal facility.
Separately, it was announced on February 28, 2014, that Mattel acquired MEGA Brands.
Licensing Street Signed for Ludorum U.S. Licensing
Ludorum, the owners of the preschool series Chuggington, announced the appointment of Licensing Street as its U.S. licensing consultants. The appointment follows the resignation of Maureen Taxter, who has served as senior vice-president of consumer products for Ludorum U.S.
“I would like to congratulate Maureen on her outstanding contribution to Ludorum over the past four years, having successfully introduced and established the Chuggington brand in the U.S. market,” said Rob Lawes, CEO of Ludorum. “We wish her every success in her future endeavors. As a result of Maureen’s departure, I am very pleased to announce the appointment of Licensing Street to consult on all our U.S. licensing, retail, and marketing activities. We are excited about beginning our new relationship with Licensing Street and are very much looking forward to working with them as we continue to build on all the success that we have achieved to date.”
TTPM.com Now Reviews Pet Toys
TTPM.com is the No. 1 source for all things play and that now includes toys for your pets. We are currently reviewing dog toys. Cat toys are coming soon. See all the latest Pet Product reviews here.
Trending on TTPM.com: Kids’ Audio
TTPM.com is showcasing what’s trending in each specific product category. Today it’s KIDS AUDIO. This trending list is determined by consumers. It’s the number of page views for that item in the previous 30 days and is updated every 24 hours.