Mega Brands reports Q3 loss

Firm reports steep loss due to a $150 million goodwill impairment related to its 2005 takeover of Rose Art.
Publish date:

The results show that the firm lost $122.1 million, or $3.34 a share, in the quarter, compared with a loss of $11 million, or 31 cents a share, a year earlier.

Revenue fell 12.6 percent to $160.9 million from $184.1 million.

Excluding the goodwill impairment, Mega Brands said it had returned to operating profitability with earnings from operations of $22.2 million, up from a year-ago operating loss of $5.1 million, following recalls of the Magnetix toys.

Third-quarter net sales of toys declined nine per cent to $101.7 million due to lower shipments in the boys five-plus category, including MagNext whose launch has been slower than expected.

"With the economic situation out there retail is tough pretty well everywhere and we're seeing some of that in the toy industry as well," CEO Marc Bertrand said in a conference call.


Featured Jobs


Marketing Director UK

Gameplan I Southeast of England I Salary: Competitive I Date Published Monday 7th January 2019

Rainbow logo landscape_home of classic Final

Product Manager

Rainbow Designs Ltd I Olympia, London I Salary: Competitive I Date Published Wednesday 16th January 2019