Mega Brands Inc. has announced its financial results for the third quarter ended September 30.
Consolidated net sales in the third quarter increased 5 percent to $140.1 million compared to $133.4 million in the corresponding 2011 period.
Toy sales increased 5 percent compared to the third quarter of last year, with higher product shipments in the Preschool and Boys construction categories. Toy sales have increased year-over-year in 11 of the last 12 quarters. Sales of Stationery & Activities products were up 3 percent, the sixth consecutive quarter of year-over-year growth in this segment. North American sales rose 19 percent, more than offsetting lower international shipments.
Gross margin improved to 40 percent of net sales compared to 39.2 percent in the third quarter of last year, mainly as a result of favorable product mix and proactive measures by the corporation, including investments in new equipment to increase efficiency at its Montreal production facility.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) increased 13 percent to $28.2 million compared to $25.0 million in the third quarter of last year. For the nine-month period ended September 30, EBITDA was up 22 percent to $35.2 million compared to $28.8 million in the corresponding period last year.
Net earnings were $19.5 million or $1.19 per basic share ($0.65 per diluted share) compared to $17.1 million or $1.04 per basic share ($0.51 per diluted share) in the third quarter of last year. For the nine-month period ended September 30, net earnings were $12.6 million or $0.77 per basic share ($0.60 per diluted share) compared to $8.1 million or $0.49 per basic share ($0.40 per diluted share) in the same period of last year.
