Spin Master Corp. withdrew its 2020 outlook previously provided on March 4, 2020 in connection with 2020 Gross Product Sales and Adjusted EBITDA Margin.
Spin Master said it will not issue further guidance in the near term due to uncertainty related to the developing COVID-19 situation. Spin Master anticipates that the spread of COVID-19 and global measures to contain it will have an impact on the company, however the company said it is challenging to quantify the potential magnitude of such impact at this time. Spin Master will provide a further update when it reports Q1 2020 results on May 6, 2020.
The 2020 outlook provided by Spin Master on March 4, 2020 reflected the information available to the company at that time. This information included factory capacity in China, Vietnam and India, labor return rates, tooling availability, raw material and component availability, the ability to shift production between various geographies and products, and customer acceptance of modified delivery dates. Since that time production levels have increased significantly and are approaching normal levels. However, due to the current market disruptions and heightened uncertainty caused by the spread of COVID-19 in global customer markets, the company is withdrawing such guidance.
“Since early March we have seen a substantial improvement in our Asian supply chain, particularly in China, as expected. However, the disruption we are now seeing in key customer markets resulting from the impact of COVID-19 is significant and we are withdrawing our fiscal 2020 guidance statement as a result thereof,” said Mark Segal, Spin Master’s Executive Vice President and Chief Financial Officer. “Our balance sheet remains strong, with cash on hand and committed credit lines available, which provides us with significant financial flexibility. Spin Master is known for its resiliency and entrepreneurial spirit. We believe in our ability to withstand any issues and continue to succeed.”