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Spin Master Reports Epic Quarter

Spin Master CEO Max Rangel has just had the kind of investor call every CEO dreams of, as the Canadian toyco reported some stunning figures for revenue and profits this week.

On May 5, Spin Master reported an impressive 39.3% increase in revenue for Q1 as compared to the same period last year. Gross sales increased 21.6% to US $294.7 million for the quarter, which the company says was primarily driven by higher sales in Preschool & Girls and Outdoor products.

“Our performance this quarter clearly demonstrates our commitment to creating exceptional play experiences and engaging children’s entertainment through our three creative centres comprising toys, entertainment and digital games,” said Ronnen Harary, Spin Master’s Co-Founder.

“It is very gratifying to see both our strong financial and operating performance this quarter compared to the same period last year, especially from the continued growth in digital games,” he added.  “We recognize the incredible dedication of our teams across the globe. Together, they have rallied to drive the strong results we achieved this quarter. As we manage through the complexities of the pandemic, I am continually amazed and impressed by the effort and dedication of our employees.”

Max Rangel, CEO of Spin Master

Rangel, who was appointed Spin Master’s Global President & CEO late last year, added, “At the heart of Spin Master’s growth story is a remarkable purpose—to create magical play experiences for children and their families around the world. Our commitment to that purpose is unwavering. How we bring this vision to market across our three creative centres will continue to evolve and adapt to the changing content landscape, consumer preferences and emerging trends in children’s entertainment. With this solid foundation, supported by relentless innovation and operational excellence, we see tremendous potential for Spin Master and are focused on driving profitable growth and creating significant value for our shareholders.”

Spin Master’s performance was particularly impressive when comparing EBITDA to the previous year’s results. The company reported adjusted EBITDA of $36.7 million compared to negative US$(32.3) million for Q1 2020. The adjusted EBITDA margin was 11.6% compared to (14.2)% last year.

“We delivered very strong margins and profitability in the first quarter and are particularly pleased with the broad nature of our performance improvements compared to Q1 2020,” said Mark Segal, Spin Master’s Chief Financial Officer. “Revenue grew as a result of higher Gross Product Sales and growth in digital games led by Toca Life World.

“Our operational improvements continued to allow us to execute more efficiently and effectively this quarter,” Segal added. “Our solid financial position with cash on hand of over $260 million, gives us increasing opportunities to leverage our diverse and global platform for organic growth and acquisitions. We expect many of the trends that drove this performance in the first quarter to continue and we are raising our outlook for 2021.”

In its analysis, the company says it is continuing to focus on driving long-term growth. Its principle strategies are to:

  • Innovate using our global internal and external research and development network;
  • Increase international sales in developed and emerging markets;
  • Develop evergreen global entertainment franchises;
  • Establish a leading position in digital games; and
  • Leverage the Company’s global platform through strategic acquisitions.

Spin Master projects its 2021 total revenue to increase by low double digits compared to 2020, as compared to mid to high single digits previously announced on March 3, 2021. The Company now expects 2021 Adjusted EBITDA Margin1 to be at the high end of the mid to high teens range previously announced on March 3, 2021.


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