Spin Master Corp. has announced its financial results for the second quarter and six months ended June 30. Subsequent to the end of the second quarter, the company completed its initial public offering of approximately 12.2 million subordinate voting shares for total gross proceeds of approximately C$220 million. The comparative financial results reflect Spin Master as a private company, prepared to conform to the company’s go-forward financial reporting standards as a public company.
Second quarter financial highlights include revenue of US$127.7 million, an increase of 19.9 percent from US$106.5 million in the second quarter of last year. Revenue growth was driven by strong contributions from the Paw Patrol and Zoomer product lines, as well as Chubby Puppies, Little Charmers, and Kinetic Sand. These were partially offset by declines in sales of products associated with last year’s Teenage Mutant Ninja Turtles and How to Train Your Dragon movies.
Spin Master’s total gross profit was US$65.4 million, representing 51.2 percent of revenue, compared with US$52.4 million, or 49.2 percent of revenue in the second quarter of last year. The improvement in gross margin was partially the result of increased sales of products under owned brands and productivity initiatives.
Selling, general, and administrative expenses for the quarter were 43.1 percent of revenue, compared to 45.0 percent in the second quarter of last year, reflecting continued operating leverage and cost discipline. The company’s net income of US$7.6 million represented a substantial increase from US$2.1 million in the same period during the previous year.
“We are very pleased with the company’s financial results in the second quarter of 2015,” says Anton Rabie, the co-CEO and chairman of Spin Master. “We experienced particularly strong results from the Pre-School and Girls segment, reflecting the tremendous success of our Paw Patrol brand, and reflecting both pent-up demand for toys and international launches of the TV show. Looking ahead to the balance of the year, we’re excited about our strong slate of new product launches including Meccanoid, a four-foot talking robot, in addition to licensed products associated with the new Star Wars movie.”
Spin Master’s full release can be found at its website.