Spin Master Corp. reported financial results for the second quarter ended June 30, 2017. Highlights include revenue growth of 54 percent and adjusted EBITDA growth of 72 percent. Revenue of $276.7 million increased 54.2 percent from $179.4 million from the same period last year Excluding revenue from Swimways, which was acquired in Q3 2016, Q2 revenue grew 37.4 percent.
Gross Product Sales1 increased 52.2 percent to $283.2 million, compared to US$186.0 million last year, driven by sales of PAW Patrol, Hatchimals and Swimways, which offset declines in Secret Life of Pets and Angry Birds licensed products and Spy Gear. Excluding Swimways, Gross Product Sales1 grew 35 percent.
Gross profit increased 54.4 percent to $141.4 million, representing 51.1 percent of revenue, compared with $91.6 million, or 51.1 percent of revenue in last year. Net income was $22.1 million, compared with $3.6 million in 2016. Adjusted Net Income1 was $22.2 million, compared to $11.7 million last year. Adjusted EBITDA was US$43.7 million compared with US$25.4 million in 2016.
On April 28, 2017, Spin Master acquired certain assets of Marbles for consideration of $4.7 million, which was paid in Q1 2017 and funded from existing cash resources. The company incurred approximately $1.2 million in transaction related costs. Marbles’ operations are included in the Activities, Games & Puzzles and Fun Furniture business segment.