Learning Curve has reported net income for the fourth quarter 2010 of $10.1 million, compared with $8.3 million, for Q4 2009.
Net income for the full-year ended December 31st, 2010, was $29.7 million, compared with $27 million, for the full-year 2009.
Net sales for the fourth quarter also increased by 2.3 per cent to $124.2 million compared with $121.3 million for the fourth quarter a year ago.
Revenues for the full-year, 2010, increased by 1.5 per cent to $427.3 million compared with $421.1 million for 2009. Favourable fluctuations in foreign currency exchange rates increased the 2010 sales by approximately one per cent, but had no significant impact on fourth quarter sales.
During the fourth quarter 2010, the firm incurred costs of $1.1 million in connection with a litigation settlement related to certain of its Learning Curve subsidiary’s intellectual property from before the 2003 acquisition.
Additionally, the company incurred costs of $0.2 million primarily related to the successful integration of its JJ Cole subsidiary’s logistics and back office operations.
Curt Stoelting, CEO, commented: “Despite soft retailer ordering in North America throughout much of December, fourth quarter sales reflected strong organic growth in our continuing pre-school, youth and adult (PYA) products category, contributions in the mother, infant and toddler (MIT) products category from our recent JJ Cole Collections acquisition and continued expansion in international markets.
"For the quarter and full year, our international sales increased 6.5 per cent and 14.7 per cent, respectively, due to strong growth in the MIT products category and the successful launch of our new Chuggington train-play+ die-cast and interactive products lines.
"During the quarter, we also successfully launched Chuggington Die-cast in the US providing consumers a sneak peak of the multiple product line launches planned for 2011."
Stoelting concluded: “We are pleased with our results during the 2010 transition and believe we are well positioned for success in 2011 and beyond. We remain focused on our long-term strategic goals, which include both organic growth and strategic acquisitions."
Learning Curve expects that first quarter 2011 sales and profit as compared with first quarter 2010 will be hampered by continued soft retailer ordering and the impact of the $9.5 million discontinued product lines sell-off in first quarter 2010.