Mega returns to profitability

The firm has announced its financial results for the first quarter ended March 31st 2010.
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Net sales increased 13 per cent to $49.1 million, compared to $43.5 million in the first quarter of 2009. This signifies the second consecutive quarter of year-on-year growth.

Net sales increased in both North America and international markets, driven mainly by higher shipments of construction toys in the pre-school and boys categories.

Net profit for the period was $98.2 million, compared to a net loss of $25.9 million in Q1 2009.

The first quarter 2010 results include a gain on settlement of debt, reflecting the positive impact of the recapitalization transaction completed on March 30th, 2010.

Marc Bertrand, President and CEO said: "All of our key performance indicators were positive during the quarter, with higher sales, lower operating expenses and improved gross margins.

"Our market-leading pre-school offering is performing well at retail, with strong demand for core Mega Bloks product lines and incremental sales resulting from the spring launch of Thomas & Friends.

“Our boys business continues to build sales momentum driven by Halo Wars and Iron Man 2. With the fall introduction of our Dragons Universe in the boys category and more innovations in pre-school, we expect increased shelf space at major retailers in both North America and international markets heading into the peak toy selling season."

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