Spin Master has posted a 30.9 per cent revenue increase in what it has billed as ‘strong financial results’ for the fourth quarter and year ending December 2016.
Revenue has grown from $287.5 million in Q4 2015 to $376.2 million for 2016 driven by sales of PAW Patrol and Hatchimals which has more than offset declines in Meccano, Kinetic Sand and Air Hogs Star Wars products.
Excluding Swimways – which was acquired in Q3 2016 – gross product sales grew 26.3 per cent.
“An excellent performance in the fourth quarter of 2016 wrapped up another year of very strong growth for Spin Master,” said Anton Rabie, chairman and co-chief executive officer of Spin Master.
“The company posted a 31 per cent increase in Q4 gross product sales, which in turn drove increases of 68 per cent in Adjusted EBITDA and 40 per cent in Adjusted Net Income.
“The quarter was also highlighted by an agreement to increase and amend Spin Master’s credit agreement with total borrowing capacity of up to $510 million under the new committed facility. We have significantly enhanced our financing capacity and flexibility, which together with our internally generated Free Cash Flow, is expected to continue to support our growth.”
Ben Gadbois, president and COO of Spin Master, added: “Spin Master continues to generate strong financial results.
“The integration of Cardinal, Swimways and Toca Boca is going very smoothly. Our international sales, marketing and distribution network and overall international market presence is stronger today than it was a year ago.
“We will see significant opportunities in Europe, Asia, Australia and other international markets, and we look forward to capitalising on them as we move toward our goal of deriving 40 per cent of our sales from international customers in the next few years.”