TORONTO, Feb. 24, 2025 /PRNewswire/ – Spin Master Corp. (“Spin Master” or the “Company”) (TSX: TOY) www.spinmaster.com), a leading global children’s entertainment company, today announced its financial results for the three months and year ended December 31, 2024. The Company’s full Management’s Discussion and Analysis (“MD&A”) for the three months and year ended December 31, 2024 is available under the Company’s profile on SEDAR+ (www.sedarplus.com) and posted on the Company’s web site at www.spinmaster.com. All financial information is presented in United States dollars (“$”, “dollars” and “US$”) and has been rounded to the nearest hundred thousand, except per share amounts and where otherwise indicated.
“I’m proud of our team’s relentless commitment to creating magical play experiences by launching excitement and innovation in the toy category, enhancing customization and value in digital games and producing engaging entertainment content that resonates with audiences globally,” said Max Rangel, Spin Master’s Global President & CEO. “These collective efforts helped us achieve our 2024 Gross Product Sales and Revenue expectations. We are pleased with the progress we have made in integrating Melissa & Doug, which had a strong year, generating growth with new product launches and expanded distribution. Looking forward, we are excited about our formula for growth across all our creative centres, including innovation and licenses within Toys, a positive trajectory in Digital Games driven by Toca Boca World and Piknik and our strong Entertainment content pipeline, all in support of our goal of igniting kids’ imaginations and driving and sustaining long-term, profitable growth in order to maximize shareholder value.”
“We were pleased with our revenue performance with growth of 29% for the fourth quarter and just under 19% for the full year” said Mark Segal, Spin Master’s Chief Financial Officer. “We achieved over $10 million in Net Cost Synergies for the year related to the Melissa & Doug integration, which represents an annualized run-rate of $14 million against our target of $25 – $30 million run-rate by the end of 2026. We generated $215 million in adjusted free cash flow in 2024, reinforcing the cash generative power of our underlying businesses. Our disciplined and holistic approach to capital allocation continues to be a key driver of shareholder value. We remain committed to a balanced approach – continuing to look for opportunities to invest strategically in high-return growth opportunities while also returning capital to shareholders through dividends and share repurchases. We repurchased over 2.3 million shares under our NCIB in 2024. Looking ahead, our financial framework for value creation puts us in a solid position financially and operationally to generate long-term growth.”
Consolidated Financial Highlights for Q4 2024 and 2024 as compared to the same periods in 2023
2025 Outlook
The Company expects for 2025:
The Company’s Outlook for 2025 includes Melissa & Doug.
Consolidated Financial Results as compared to the same period in 2023
Effective January 2, 2024, Melissa & Doug’s operating results for the three months and year ended December 31, 2024 are included in the Company’s consolidated results.
(US$ millions, except per share information)
Year Ended Dec 31
Q4 2024
Q4 2023
$
Change
2024
2023
$
Change
Consolidated Results
Revenue4
$
649.1
$
502.6
$
146.5
$
2,263.0
$
1,904.9
$
358.1
Operating Income (Loss)
$
47.1
$
(36.6)
$
83.7
$
165.5
$
188.9
$
(23.4)
Operating Margin2
7.3 %
(7.3) %
7.3 %
9.9 %
Adjusted Operating Income1,3
$
81.3
$
23.2
$
58.1
$
333.8
$
288.7
$
45.1
Adjusted Operating Margin1
12.5 %
4.6 %
14.8 %
15.2 %
Net Income (Loss)
$
21.1
$
(30.1)
$
51.2
$
81.9
$
151.4
$
(69.5)
Adjusted Net Income1,3
$
57.4
$
36.9
$
217.2
$
225.2
$
(8.0)
Adjusted EBITDA1,3,4
$
113.9
$
64.9
$
49.0
$
463.6
$
418.8
$
44.8
Adjusted EBITDA Margin1
17.5 %
12.9 %
20.5 %
22.0 %
Earnings Per Share (“EPS”)
Basic EPS
$
0.21
$
(0.29)
$
0.79
$
1.46
Diluted EPS
$
0.20
$
(0.29)
$
0.77
$
1.43
Adjusted Basic EPS1
$
0.56
$
0.20
$
2.10
$
2.18
Adjusted Diluted EPS1
$
0.55
$
0.19
$
2.05
$
2.13
Weighted average number of shares (in millions)
Basic
102.4
103.7
103.3
103.5
Diluted
105.2
106.2
105.8
105.7
Selected Cash Flow Data
Cash provided by operating activities
$
203.4
$
67.9
$
135.5
$
328.0
$
227.0
$
101.0
Cash used in investing activities
$
(30.5)
$
(23.3)
$
(7.2)
$
(1,068.5)
$
(135.3)
$
(933.2)
Cash (used in) provided by financing activities
$
(49.5)
$
(8.2)
$
(41.3)
$
270.2
$
(44.1)
$
314.3
Free Cash Flow1
$
175.0
$
44.3
$
130.7
$
215.5
$
122.9
$
92.6
1 Non-GAAP financial measure or ratio. See “Non-GAAP Financial Measures and Ratios, Supplementary Financial Measures”.
2 Operating Margin is calculated as Operating Income (Loss) divided by Revenue.
3 Adjustments in 2024 include fair value adjustment for inventories acquired of $66.3 million and transaction and integration costs of $31.9 million. Refer to the “Reconciliation of Non-GAAP Financial Measures” section for further details on the adjustments.
4 Included in the operating results of the three months and year ended December 31, 2024 is Melissa & Doug Revenue of $136.0 million and $374.7 million and Melissa & Doug Adjusted EBITDA1 of $40.9 million and $74.1 million, respectively.
2024 Revenue was $2,263.0 million, an increase of 18.8% from $1,904.9 million, and includes Melissa & Doug Revenue of $374.7 million. Revenue increased by 25.9% in Toys, and declined by 16.6% in Entertainment and 5.4% in Digital Games.
2024 Operating Income was $165.5 million, a decrease of $23.4 million from $188.9 million, primarily driven by a decline in Operating Income of $27.0 million from Digital Games, partially offset by an increase of $8.0 million in Entertainment.
2024 Adjusted Operating Income1 was $333.8 million, an increase of $45.1 million from $288.7 million, primarily driven by an increase in Toys Adjusted Operating Income1 of $56.1 million, partially offset by a decrease in Digital Games Adjusted Operating Income1 of $18.2 million.
2024 Adjusted EBITDA1 was $463.6 million compared to $418.8 million in 2023. 2023 Adjusted EBITDA1 included $15.6 million related to the initial delivery of PAW Patrol: The Mighty Movie. Excluding the revenue from the PAW Patrol: The Mighty Movie in 2023, 2024 Adjusted EBITDA1 increased by $60.4 million. The increase was primarily driven by the inclusion of Melissa & Doug, partially offset by lower Gross Profit due to lower Revenue in Entertainment and Digital Games and increased marketing across the Digital Games portfolio.
The following summarizes the impact of Melissa & Doug’s operating results on the three months and year ended December 31, 2024 consolidated results:
Year Ended Dec 31,
(US$ millions)
Q4 2024
Q4 2023
2024
2023
Revenue
649.1
502.6
2,263.0
1,904.9
Melissa & Doug Revenue
136.0
—
374.7
—
Revenue, excluding Melissa & Doug1
513.1
502.6
1,888.3
1,904.9
Toy Gross Product Sales1
660.0
502.3
2,231.5
1,787.2
Melissa & Doug Toy Gross Product Sales1
152.6
—
433.3
—
Toy Gross Product Sales, excluding Melissa & Doug1
507.4
502.3
1,798.2
1,787.2
Adjusted EBITDA1
113.9
64.9
463.6
418.8
Melissa & Doug Adjusted EBITDA1
40.9
—
74.1
—
Adjusted EBITDA, excluding Melissa & Doug1
73.0
64.9
389.5
418.8
Adjusted EBITDA Margin1
17.5 %
12.9 %
20.5 %
22.0 %
Adjusted EBITDA Margin, excluding PAW Patrol: The Mighty Movie Revenue1
17.5 %
12.9 %
20.5 %
21.3 %
Melissa & Doug Adjusted EBITDA Margin1
30.1 %
— %
19.8 %
— %
Adjusted EBITDA Margin, excluding Melissa & Doug1
14.2 %
12.9 %
20.6 %
22.0 %
1 Non-GAAP financial measure or ratio. See “Non-GAAP Financial Measures and Ratios, Supplementary Financial Measures”.
Segmented Financial Results as compared to the same period in 2023
(US$ millions)
Q4 2024
Q4 2023
Toys
Entertainment
Digital
Games
Corporate
& Other1
Total
Toys
Entertainment
Digital
Games
Corporate
& Other1
Total
Revenue
$ 561.7
$ 41.3
$ 46.1
$ —
$ 649.1
$406.8
$ 55.2
$ 40.6
$ —
$ 502.6
Operating Income (Loss)
$ 31.7
$ 19.7
$ (0.5)
$ (3.8)
$ 47.1
$(30.0)
$ 9.7
$ 9.7
$ (26.0)
(36.6)
Adjusted Operating Income (Loss)2
$ 53.5
$ 20.3
$ 11.5
$ (4.0)
$ 81.3
$ 5.4
$ 10.5
$ 10.8
$ (3.5)
