Spin Master Reports 2022 and Q4 2022 Financial Results
Toronto, CA –– Spin Master Corp. announced its financial results for the three months and year ended December 31, 2022. The Company’s full Management’s Discussion and Analysis (“MD&A”) for the three months and year ended December 31, 2022 is available under the Company’s profile on SEDAR (www.sedar.com) and posted on the Company’s web site at www.spinmaster.com. All financial information is presented in United States dollars (“$”, “dollars” and “US$”) and has been rounded to the nearest hundred thousand, except per share amounts and where otherwise indicated.
“Our commitment to reimagining everyday play across our three creative centres resulted in Constant Currency Revenue1 growth for 2022 and propelled Spin Master to the become the 4th largest toy manufacturer globally, against the backdrop of challenging economic and retail dynamics,” said Max Rangel, Spin Master’s Global President & CEO. “Entering into 2023 we are expanding our core toy portfolio with innovation, driving our franchises, and building our licensed partner portfolio. 2023 will be one of our biggest in terms of entertainment content releases, showcasing our diversified content pipeline including our second PAW Patrol movie, PAW Patrol: The Mighty Movie, our first PAW Patrol spin-off, Rubble & Crew, as well as the debuts of our two new animated series, Vida the Vet and Unicorn Academy. We will also introduce several new digital play experiences, including the launch of a Rubik’s digital game and our first in-house PAW Patrol digital game. We expect to face continued macroeconomic headwinds and are focused on managing our operational costs, ensuring we position Spin Master to thrive.” He added “from a strategic perspective, we continue to build franchises across Toys, Entertainment and Digital Games, applying our signature innovation, investing in key organizational capabilities and pursuing acquisition opportunities to attract new fans, reach new audiences and engage new players in order to further solidify our leadership in children’s entertainment and deliver profitable growth now and into the future.”
“We are pleased with our results in 2022, delivering Revenue growth in Constant Currency amidst a challenging macroeconomic backdrop” said Mark Segal, Spin Master’s Chief Financial Officer. “Our financial discipline and focus on managing pricing and costs effectively drove strong gross and operating margins, despite challenging operating conditions in the second half of 2022. Our focus on managing working capital and generating cash flow allowed us to end the year with available liquidity in excess of $1.1 billion. We remain in a very strong financial position with the ability to continue investing in innovation, geographic expansion and acquisitions to drive growth. Our financial framework for value creation, underpinned by our formula for growth across all our creative centres, puts us in a position financially and operationally to generate and sustain long-term, profitable growth and maximize shareholder value.”
Consolidated Financial Highlights for Q4 2022 as compared to the same period in 2021
- Revenue was $465.8 million, a decrease of 24.9% from $620.5 million. Constant Currency Revenue1 was $484.2 million, a decrease of 22.0%, from $620.5 million.
- Revenue by segment declined by 26.8% and 24.2% in Toys and Digital Games, respectively, partially offset by a 9.5% increase in Entertainment.
- Operating Loss was $24.0 million compared to Operating Income of $39.1 million.
- Operating Margin was (5.2)% compared to 6.3%.
- Adjusted Operating Loss1 was $5.5 million compared to Adjusted Operating Income1 of $55.3 million.
- Adjusted Operating Margin1 was (1.2)% compared to 8.9%.
- Adjusted EBITDA1 was $12.4 million compared to $78.3 million.
- Adjusted EBITDA Margin1 was 2.7% compared to 12.6%.
- Cash used in operating activities was $6.8 million compared to cash provided of $230.1 million.
- Free Cash Flow1 was $(30.1) million compared to $211.3 million.
- Subsequent to the year end, the Company acquired certain assets of 4D Brands International Inc. on January 17, for total purchase consideration of $20.2 million and the HEXBUG brand of toys from Innovation First International, Inc., on February 1, for total purchase consideration of $16.0 million. These acquisitions will be reported in the Activities, Games & Puzzles and Plush and Wheels & Action product categories within the Toy operating segment, respectively.
- During the fourth quarter of 2022, the Company, through Spin Master Ventures, acquired a minority interest in two privately-held entities for a total of $3.5 million.
- Subsequent to year end, the Company declared a quarterly dividend of 0.06 CAD per outstanding subordinate voting share and multiple voting share in respect of the first quarter of 2023, payable April 14, 2023.
- In connection with efforts to effectively manage the Company’s cost structure, in the first quarter of 2023, the Company committed to a planned reduction to its global workforce and also announced the intention to close its manufacturing facility in Calais, France inherited through the acquisition of Meccano in 2013. As a result, in 2023 the Company expects to incur a restructuring charge of approximately $9.0M related to severance, employee-related costs, professional fees and closure costs.
Consolidated Financial Highlights for the Year Ended December 31, 2022 as compared to the same period in 2021
- Revenue was $2,020.3 million, down 1.1% from $2,042.4 million. Constant Currency Revenue1 increased by 1.4% to $2,071.1 million from $2,042.4 million. Constant Currency Revenue excluding PAW Patrol: The Movie Distribution Revenue1, increased by 2.7%.
- The decline in Revenue was driven by decreases in Entertainment revenue of 12.5% and Digital Games revenue of 6.2%, offset by a slight increase in Toy revenue of 0.3%.
- Operating Income was $343.3 million compared to $272.2 million. The increase in Operating income was primarily driven by a favourable foreign exchange gain of $61.4 million, as compared to $2.9 million.
- Operating Margin was 17.0% compared to 13.3%.
- Adjusted Operating Income1 was $321.2 million compared to $302.2 million.
- Adjusted Operating Margin1 was 15.9% compared to 14.8%.
- Adjusted EBITDA1 was $389.4 million compared to $414.1 million, a decrease of $24.7 million or 6.0%. Adjusted EBITDA excluding PAW Patrol: The Movie1 recognized in 2021 was up by $1.3 million.
- Adjusted EBITDA Margin1 was 19.3% compared to 20.3%. Adjusted EBITDA Margin, excluding PAW Patrol: The Movie Distribution Revenue1 increased by 0.1% compared to 19.2%.
- Cash provided by operating activities was $249.3 million compared to $419.1 million.
- Free Cash Flow1 was $149.9 million compared to $339.6 million.
- Unutilized liquidity of $1,154.3 million, comprised of $644.3 million in cash and cash equivalents and $510.0 million available under the Company’s credit facilities.
- During the year ended December 31, 2022, the Company acquired certain assets from SolidRoots LLC, a creator of family board games and the Company also acquired all of the remaining shares of Nørdlight Games AB, a digital games studio in which the Company had previously acquired a minority interest.
Consolidated Financial Results as compared to the same period in 2021
|
(US$ millions, except per share information) |
Year Ended Dec 31 |
|||||
|
Q4 2022 |
Q4 2021 |
$ Change |
2022 |
2021 |
$ Change |
|
|
Consolidated Results |
||||||
|
Revenue |
$ 465.8 |
$ 620.5 |
$ (154.7) |
$ 2,020.3 |
$ 2,042.4 |
$ (22.1) |
|
Constant Currency Revenue1 |
$ 484.2 |
$ (136.3) |
$ 2,071.1 |
$ 28.7 |
||
|
Constant Currency Revenue, excluding PAW Patrol: The Movie Distribution Revenue1 |
$ 2,071.1 |
$ 54.7 |
||||
|
Operating (Loss) Income |
$ (24.0) |
$ 39.1 |
$ (63.1) |
$ 343.3 |
$ 272.2 |
$ 71.1 |
|
Operating Margin |
(5.2) % |
6.3 % |
17.0 % |
13.3 % |
||
|
Adjusted Operating (Loss) Income1,2,3 |
$ (5.5) |
$ 55.3 |
$ (60.8) |
$ 321.2 |
$ 302.2 |
$ 19.0 |
|
Adjusted Operating Margin1 |
(1.2) % |
8.9 % |
15.9 % |
14.8 % |
||
|
Net (Loss) Income |
$ (13.8) |
$ 26.5 |
$ (40.3) |
$ 261.3 |
$ 198.6 |
$ 62.7 |
|
Adjusted Net Income1,2,3 |
$ — |
$ 38.7 |
$ (38.7) |
$ 244.3 |
$ 221.3 |
$ 23.0 |
|
Adjusted EBITDA1,2,3 |
$ 12.4 |
$ 78.3 |
$ (65.9) |
$ 389.4 |
$ 414.1 |
$ (24.7) |
|
Adjusted EBITDA Margin1 |
2.7 % |
12.6 % |
19.3 % |
20.3 % |
||
|
Earnings Per Share (“EPS”) |
||||||
|
Basic EPS |
$ (0.13) |
$ 0.26 |
$ 2.54 |
$ 1.94 |
||
|
Diluted EPS |
$ (0.13) |
$ 0.25 |
$ 2.45 |
$ 1.89 |
||
|
Adjusted Basic EPS1 |
$ — |
$ 0.38 |
$ 2.37 |
$ 2.16 |
||
|
Adjusted Diluted EPS1 |
$ — |
$ 0.37 |
$ 2.30 |
$ 2.10 |
||
|
Selected Cash Flow Data |
||||||
|
Cash (used in) provided by operating activities |
$ (6.8) |
$ 230.1 |
$ (236.9) |
$ 249.3 |
$ 419.1 |
$ (169.8) |
|
Cash used in investing activities |
$ (28.2) |
$ (19.6) |
$ (8.6) |
$ (109.2) |
$ (153.2) |
$ 44.0 |
|
Free Cash Flow1 |
$ (30.1) |
$ 211.3 |
$ (241.4) |
$ 149.9 |
$ 339.6 |
$ (189.7) |
|
1 Non-GAAP financial measure or ratio. See “Non-GAAP Financial Measures and Ratios” |
||||||
|
2 Adjustments for Q4 2022 include Foreign exchange loss of $4.8 million (2021 – gain of $0.7 million) due to fluctuations in foreign currency denominated monetary assets and liabilities, primarily in the Canadian dollar, as well as the Swedish krona, Great Britain pound sterling and Russian ruble, Share based compensation of $4.7 million (2021 – $4.0 million), Acquisition related deferred incentive compensation of $2.2 million (2021 – $2.6 million), Acquisition related contingent consideration of $3.1 million (2021 – $3.4 million) and Transaction costs of $0.2 million (2021 – $2.1 million). Refer to the “Reconciliation of Non-GAAP Financial Measures” section for further details |
||||||
|
3 Adjustments for the year ended December 31, 2022 include Foreign exchange gain of $61.4 million (2021 – gain of $2.9 million), comprised of an unrealized gain of $40.3 million and realized gain of $21.1 million), due to fluctuations in foreign currency denominated monetary assets and liabilities, primarily in the Canadian dollar, as well as the Swedish krona, Euro and Great Britain pound sterling, Share based compensation of $17.6 million (2021 – $15.3 million), Restructuring and other related costs of $4.9 million (2021 – $2.5 million) and Acquisition related deferred incentive compensation of $10.3 million (2021 – $6.8 million), Acquisition related to contingent consideration of $ 2.6 million (2021 – $2.7 million), and Transaction costs of $1.0 million (2021 – 2.8 million) . Refer to the “Reconciliation of Non-GAAP Financial Measures” section for further details |
||||||
Segmented Financial Results as compared to the same period in 2021
|
(US$ millions) |
Q4 2022 |
Q4 2021 |
||||||||
|
Toys |
Entertainment |
Digital Games |
Corporate & Other1 |
Total |
Toys |
Entertainment |
Digital Games |
Corporate & Other1 |
Total |
|
|
Revenue |
$ 396.7 |
$ 31.2 |
$ 37.9 |
$ — |
$ 465.8 |
$ 542.0 |
$ 28.5 |
$ 50.0 |
$ — |
$ 620.5 |
|
Operating (Loss) Income |
$ (43.3) |
$ 19.1 |
$ 10.1 |
$ (9.9) |
$ (24.0) |
$ 14.6 |
$ 12.1 |
$ 17.3 |
$ (4.9) |
39.1 |
|
Adjusted (Loss) Operating Income2 |
$ (35.5) |
$ 20.5 |
$ 12.3 |
$ (2.8) |
$ (5.5) |
$ 26.1 |
$ 13.4 |
$ 19.0 |
$ (3.2) |
$ 55.3 |
|
Adjusted EBITDA2 |
$ (24.4) |
$ 25.3 |
$ 14.2 |
$ (2.7) |
$ 12.4 |
$ 40.8 |
$ 19.7 |
$ 21.0 |
$ (3.2) |
$ 78.3 |
|
1 Corporate & Other includes certain corporate costs, foreign exchange and merger and acquisition-related costs, as well as fair value gains and losses and distribution income on Investment in a limited partnership. |
||||||||||
|
2 Non-GAAP financial measure or ratio. See “Non-GAAP Financial Measures and Ratios”. |
||||||||||
Toys Segment Results
The following table provides a summary of Toys segment operating results, for the three months ended December 31, 2022 and 2021:
|
(US$ millions) |
Q4 2022 |
Q4 2021 |
$ Change |
|
Preschool and Dolls & Interactive |
$ 201.7 |
$ 251.8 |
$ (50.1) |
|
Activities, Games & Puzzles and Plush |
$ 160.6 |
$ 206.5 |
$ (45.9) |
|
Wheels & Action |
$ 90.0 |
$ 146.1 |
$ (56.1) |
|
Outdoor |
$ 26.9 |
$ 23.1 |
$ 3.8 |
|
Toy Gross Product Sales 1 |
$ 479.2 |
$ 627.5 |
$ (148.3) |
|
Constant Currency Toy Gross Product Sales1 |
$ 498.3 |
$ (129.2) |
|
|
Sales Allowances2 |
$ (82.5) |
$ (85.5) |
$ 3.0 |
|
Sales Allowances % of GPS |
17.2 % |
13.6 % |
|
|
Toy revenue |
$ 396.7 |
$ 542.0 |
$ (145.3) |
|
Operating (Loss) Income |
$ (43.3) |
$ 14.6 |
$ (57.9) |
|
Operating Margin3 |
(10.9) % |
2.7 % |
|
|
Adjusted EBITDA1 |
$ (24.4) |
$ 40.8 |
$ (65.2) |
|
Adjusted EBITDA Margin1 |
(6.2) % |
7.5 % |
|
|
1 Non-GAAP financial measure or ratio. See “Non-GAAP Financial Measures and Ratios”. |
|||
|
2 The Company enters into arrangements to provide sales allowances requested by customers relating to cooperative advertising, contractual and negotiated discounts, volume rebates, markdowns, and costs incurred by customers to sell the Company’s products. |
|||
|
3 Operating Margin is calculated as segment Operating Income divided by segment Revenue. |
|||
- Toy revenue decreased by $145.3 million or 26.8% to $396.7 million primarily driven by a decrease in Toy Gross Product Sales1 and an increase in Sales Allowances as a percentage of Toy Gross Product Sales1.
- Toy Gross Product Sales1 decreased by $148.3 million or 23.6%, to $479.2 million from $627.5 million. Constant Currency Toy Gross Product Sales1 decreased by $129.2 million or 20.6% to $498.3 million, down from $627.5 million.
- The decline in Toy Gross Product Sales1 was as a result of lower customer orders, as consumer demand was negatively impacted by the pressures of higher inflation, which in turn reduced consumer discretionary spending, as well as the unfavorable impact of foreign exchange. Toy Gross Product Sales1 were positively impacted by price increases implemented to mitigate inflation on product costs and ocean freight. In addition, Toy Gross Product Sales1 in the fourth quarter of 2021 were supported by shipments due to the theatrical releases of Paw Patrol: The Movie and DC Comics The Batman.
- Sales Allowances increased by $3.0 million or 3.5% to $82.5 million. As a percentage of Toy Gross Product Sales1, Sales Allowances increased by 3.6% to 17.2% from 13.6%, primarily driven by higher markdowns, as consumers were more sensitive to price.
- Operating Loss was $(43.3) million compared to Operating Income of $14.6 million representing a variance of $(57.9) million.
- Operating Margin was (10.9)% compared to 2.7%. The decline is due to higher administrative and marketing expenses as a percentage of revenue driven by lower Toy revenue. This was partially offset by improved gross margin from changes in product mix and price increases implemented to offset inflation on product costs and ocean freight. Adjusted EBITDA Margin1 declined as a result of lower Operating Margin.
- Adjusted EBITDA Margin1 was (6.2)% compared to 7.5%.
Entertainment Segment Results
The following table provides a summary of Entertainment segment operating results, for the three months ended December 31, 2022 and 2021:
|
(US$ millions) |
Q4 2022 |
Q4 2021 |
$ Change |
|
Entertainment revenue |
$ 31.2 |
$ 28.5 |
$ 2.7 |
|
Operating Income |
$ 19.1 |
$ 12.1 |
$ 7.0 |
|
Operating Margin |
61.2 % |
42.5 % |
|
|
Adjusted Operating Income1 |
$ 20.5 |
$ 13.4 |
$ 7.1 |
|
Adjusted Operating Margin1 |
65.7 % |
47.0 % |
|
|
1 Non-GAAP financial measure or ratio. See “Non-GAAP Financial Measures and Ratios”. |
|||
- Entertainment revenue increased by $2.7 million or 9.5% to $31.2 million, driven by higher distribution revenue and licensing and merchandising revenue.
- Operating Margin was 61.2% compared to 42.5%.
- Adjusted Operating Margin1 was 65.7% compared to 47.0%.
- Operating Margin and Adjusted Operating Margin1 increased due to higher licensing and merchandising revenue as well as lower costs due to fewer content deliveries compared to prior year.
Digital Games Segment Results
The following table provides a summary of Digital Games segment operating results, for the three months ended December 31, 2022 and 2021:
|
(US$ millions) |
Q4 2022 |
Q4 2021 |
$ Change |
|
Digital Games revenue |
$ 37.9 |
$ 50.0 |
$ (12.1) |
|
Operating Income |
$ 10.1 |
$ 17.3 |
$ (7.2) |
|
Operating Margin |
26.6 % |
34.6 % |
|
|
Adjusted Operating Income1 |
$ 12.3 |
$ 19.0 |
$ (6.7) |
|
Adjusted Operating Margin1 |
32.5 % |
38.0 % |
|
|
1 Non-GAAP financial measure or ratio. See “Non-GAAP Financial Measures and Ratios”. |
|||
- Digital Games revenue decreased by $12.1 million or 24.2% to $37.9 million due to lower in-app revenue in Toca Life World. Constant Currency Digital Games Revenue1 decreased by $9.9 million or 19.8% to $40.1 million, down from $50.0 million.
- Operating Margin was 26.6% compared to 34.6%. Operating Margin decreased due to higher product development and personnel costs related to the investment in future digital games. Adjusted Operating Margin1 was 32.5% compared to 38.0%. Adjusted Operating Margin1 decreased due to a decrease in Operating Margin partially offset by an increase in adjustments to acquisition related deferred incentive compensation.
The Company expects 2023 Toy Gross Product Sales1 to be flat to slightly down compared to 2022.
The Company expects 2023 Toy Gross Product Sales1 seasonality to return to historical averages of 30%-35% in the first half of the year.
The Company expects 2023 Revenue, excluding PAW Patrol: The Mighty Movie Distribution Revenue1 to be in line with 2022.
The Company expects 2023 Adjusted EBITDA Margin, excluding PAW Patrol: The Mighty Movie Distribution Revenue1 to be flat to slightly up compared to 2022.
|
1 Non-GAAP financial measure or ratio. See “Non-GAAP Financial Measures and Ratios”. |
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About Spin Master
Spin Master Corp. (TSX:TOY) is a leading global children’s entertainment company, creating exceptional play experiences through its three creative centres: Toys, Entertainment and Digital Games. With distribution in over 100 countries, Spin Master is best known for award-winning brands PAW Patrol®, Bakugan®, Kinetic Sand®, Air Hogs®, Hatchimals®, Rubik’s Cube® and GUND®, and is the global toy licensee for other popular properties. Spin Master Entertainment creates and produces compelling multiplatform content, through its in-house studio and partnerships with outside creators, including the preschool franchise PAW Patrol and numerous other original shows, short-form series and feature films. The Company has an established presence in digital games, anchored by the Toca Boca® and Sago Mini® brands, offering open-ended and creative game and educational play in digital environments. Through Spin Master Ventures, the Company makes minority investments globally in emerging companies and start-ups. With over 30 offices in close to 20 countries, Spin Master employs more than 2,000 team members globally. For more information visit spinmaster.com or follow-on Instagram, Facebook and Twitter @spinmaster.
|
Dec 31, |
Dec 31, |
|
|
(in US$ millions) |
2022 |
2021 |
|
Assets |
||
|
Current assets |
||
|
Cash and cash equivalents |
644.3 |
562.7 |
|
Trade receivables, net |
311.0 |
352.4 |
|
Other receivables |
49.5 |
38.8 |
|
Inventories, net |
105.1 |
137.4 |
|
Prepaid expenses and other assets |
22.3 |
19.5 |
|
Assets held for sale |
— |
8.9 |
|
1,132.2 |
1,119.7 |
|
|
Non-current assets |
||
|
Intangible assets |
267.2 |
227.2 |
|
Goodwill |
179.0 |
173.1 |
|
Right-of-use assets |
62.9 |
65.2 |
|
Property, plant and equipment |
36.0 |
39.8 |
|
Deferred income tax assets |
94.7 |
97.0 |
|
Other assets |
20.5 |
14.7 |
|
660.3 |
617.0 |
|
|
Total assets |
1,792.5 |
1,736.7 |
|
Liabilities |
||
|
Current liabilities |
||
|
Trade payables and accrued liabilities |
339.4 |
476.4 |
|
Deferred revenue |
11.5 |
10.9 |
|
Provisions |
30.7 |
25.1 |
|
Income tax payable |
26.4 |
36.2 |
|
Lease liabilities |
16.3 |
13.3 |
|
424.3 |
561.9 |
|
|
Non-current liabilities |
||
|
Provisions |
15.1 |
14.0 |
|
Deferred income tax liabilities |
55.7 |
48.7 |
|
Lease liabilities |
54.9 |
59.7 |
|
125.7 |
122.4 |
|
|
Total liabilities |
550.0 |
684.3 |
|
Shareholders’ equity |
||
|
Share capital |
754.7 |
736.9 |
|
Retained earnings |
468.1 |
216.0 |
|
Contributed surplus |
40.7 |
40.8 |
|
Accumulated other comprehensive (loss) income |
(21.0) |
58.7 |
|
Total shareholders’ equity |
1,242.5 |
1,052.4 |
|
Total liabilities and shareholders’ equity |
1,792.5 |
1,736.7 |
|
Year Ended Dec 31, |
||||
|
(in US$ millions, except earnings per share) |
Q4 2022 |
Q4 2021 |
2022 |
2021 |
|
Revenue |
465.8 |
620.5 |
2,020.3 |
2,042.4 |
|
Cost of sales |
233.4 |
297.2 |
916.5 |
985.8 |
|
Gross profit |
232.4 |
323.3 |
1,103.8 |
1,056.6 |
|
Expenses |
||||
|
Selling, general and administrative |
237.8 |
267.4 |
782.1 |
742.5 |
|
Depreciation and amortization |
7.1 |
7.9 |
28.9 |
33.5 |
|
Other expense, net |
6.7 |
9.6 |
10.9 |
11.3 |
|
Foreign exchange gain |
4.8 |
(0.7) |
(61.4) |
(2.9) |
|
Operating (Loss) Income |
(24.0) |
39.1 |
343.3 |
272.2 |
|
Interest income |
(5.5) |
(0.4) |
(10.7) |
(1.1) |
|
Interest expense |
3.8 |
3.5 |
13.6 |
11.3 |
|
(Loss) Income before income tax (recovery) expense |
(22.3) |
36.0 |
340.4 |
262.0 |
|
Income tax (recovery) expense |
(8.5) |
9.5 |
79.1 |
63.4 |
|
Net (Loss) Income |
(13.8) |
26.5 |
261.3 |
198.6 |
|
Earnings per share |
||||
|
Basic |
(0.13) |
0.26 |
2.54 |
1.94 |
|
Diluted |
(0.13) |
0.25 |
2.45 |
1.89 |
|
Weighted average number of shares (in millions) |
||||
|
Basic |
102.9 |
102.4 |
102.9 |
102.3 |
|
Diluted |
106.5 |
105.3 |
106.4 |
105.3 |
|
Year Ended Dec 31, |
||||
|
(in US$ millions) |
Q4 2022 |
Q4 2021 |
2022 |
2021 |
|
Net (Loss) Income |
(13.8) |
26.5 |
261.3 |
198.6 |
|
Items that may be subsequently reclassified to Net Income |
||||
|
Foreign currency translation gain (loss) |
21.5 |
(1.4) |
(79.8) |
(5.4) |
|
Items that are not subsequently reclassified to Net Income |
||||
|
Gain on Minority interest and other investments |
— |
— |
0.1 |
— |
|
Other comprehensive income (loss) |
21.5 |
(1.4) |
(79.7) |
(5.4) |
|
Total comprehensive income |
7.7 |
25.1 |
181.6 |
193.2 |
|
Year Ended Dec 31, |
||
|
(in US$ millions) |
2022 |
2021 |
|
Operating activities |
||
|
Net Income |
261.3 |
198.6 |
|
Adjustments to reconcile Net Income to cash provided by operating activities |
||
|
Income tax expense |
79.1 |
63.4 |
|
Interest income |
(10.7) |
(1.1) |
|
Depreciation and amortization |
68.2 |
111.9 |
|
Loss on disposal of non-current assets |
1.5 |
0.2 |
|
Accretion expense |
5.5 |
6.0 |
|
Amortization of Facility fee costs |
0.4 |
0.4 |
|
Gain on investment in limited partnership, net of distribution income |
— |
(1.5) |
|
Impairment of non-current assets |
3.0 |
4.5 |
|
Loss on Minority interest and other investments |
0.5 |
— |
|
Unrealized foreign exchange gain |
(40.3) |
(0.4) |
|
Share-based compensation expense |
17.6 |
15.3 |
|
Net changes in non-cash working capital |
(67.7) |
49.9 |
|
Net change in provisions and other assets |
1.0 |
9.2 |
|
Income taxes paid |
(83.6) |
(42.0) |
|
Income taxes received |
4.5 |
3.7 |
|
Interest received |
9.0 |
1.0 |
|
Cash provided by operating activities |
249.3 |
419.1 |
|
Investing activities |
||
|
Investment in property, plant and equipment |
(30.4) |
(26.4) |
|
Investment in intangible assets |
(69.0) |
(53.1) |
|
Business acquisitions, net of cash acquired |
(10.6) |
(70.9) |
|
Advance paid for business acquisitions |
(1.0) |
— |
|
Investment distribution income |
0.1 |
0.6 |
|
Investment in limited partnership |
— |
(1.0) |
|
Minority interest and other investments |
(7.5) |
(2.4) |
|
Proceeds from sale of manufacturing operations |
9.2 |
— |
|
Cash used in investing activities |
(109.2) |
(153.2) |
|
Financing activities |
||
|
Payment of lease liabilities |
(15.8) |
(17.6) |
|
Dividends paid |
(4.6) |
— |
|
Issuance of common shares from exercise of share options |
0.1 |
1.0 |
|
Payment of financing costs related to Facility |
— |
(1.7) |
|
Cash used in financing activities |
(20.3) |
(18.3) |
|
Effect of foreign currency exchange rate changes on cash and cash equivalents |
(38.2) |
(5.5) |
|
Net increase in cash and cash equivalents during the year |
81.6 |
242.1 |
|
Cash and cash equivalents, beginning of year |
562.7 |
320.6 |
|
Cash and cash equivalents, end of year |
644.3 |
562.7 |
|
(in US$ millions) |
Q4 2022 |
Q4 2021 |
$ Change |
% Change |
|
|
Operating (Loss) Income |
(24.0) |
39.1 |
(63.1) |
(161.4) % |
|
|
Adjustments: |
|||||
|
Restructuring and other related costs1 |
(0.2) |
1.4 |
(1.6) |
(114.3) % |
|
|
Foreign exchange loss (gain)2 |
4.8 |
(0.7) |
5.5 |
(785.7) % |
|
|
Share based compensation3 |
4.7 |
4.0 |
0.7 |
17.5 % |
|
|
Impairment of goodwill4 |
— |
1.9 |
(1.9) |
(100.0) % |
|
|
Impairment of property, plant and equipment5 |
0.9 |
— |
0.9 |
n.m. |
|
|
Impairment of intangible assets6 |
1.1 |
1.2 |
(0.1) |
(8.3) % |
|
|
Legal settlement7 |
1.6 |
— |
1.6 |
n.m. |
|
|
Acquisition related deferred incentive compensation8 |
2.2 |
2.6 |
(0.4) |
(15.4) |
|
|
Net unrealized loss on investment9 |
0.1 |
0.3 |
(0.2) |
(66.7) % |
|
|
Acquisition related contingent consideration10 |
3.1 |
3.4 |
(0.3) |
(8.8) |
|
|
Transaction costs11 |
0.2 |
2.1 |
(1.9) |
(90.5) |
|
|
Adjusted Operating (Loss) Income |
(5.5) |
55.3 |
(60.8) |
(109.9) % |
|
|
Depreciation and amortization |
17.9 |
23.0 |
(5.1) |
(22.2) % |
|
|
Adjusted EBITDA |
12.4 |
78.3 |
(65.9) |
(84.2) % |
|
|
Income tax expense (recovery) |
8.5 |
(9.5) |
18.0 |
(189.5) % |
|
|
Finance costs |
1.7 |
(3.1) |
4.8 |
(154.8) % |
|
|
Depreciation and amortization |
(17.9) |
(23.0) |
5.1 |
(22.2) % |
|
|
Tax effect of adjustments12 |
(4.7) |
(4.0) |
(0.7) |
17.5 % |
|
|
Adjusted Net Income |
— |
38.7 |
(38.7) |
(100.0) % |
|
|
Cash (used in) provided by operating activities |
(6.8) |
230.1 |
(236.9) |
(103.0) % |
|
|
Cash used in investing activities |
(28.2) |
(19.6) |
(8.6) |
43.9 % |
|
|
Add: |
|||||
|
Cash provided by business acquisitions and investment in limited partnership and Minority interest and other investments, net of investment distribution income |
4.9 |
0.8 |
4.1 |
512.5 % |
|
|
Free Cash Flow |
(30.1) |
211.3 |
(241.4) |
(114.2) % |
|
|
_______________________________ |
|
|
1 Restructuring expense primarily relates to changes in personnel. |
|
|
2 Includes foreign exchange (gains) losses generated by the translation and settlement of monetary assets/liabilities denominated in a currency other than the functional currency of the applicable entity and (gains) losses related to the Company’s hedging programs. The change in the current period was due to fluctuations in foreign currency denominated monetary assets and liabilities, primarily in the Canadian dollar, as well as the Swedish krona, Great Britain pound sterling and Russian ruble. |
|
|
3 Related to non-cash expenses associated with the Company’s share option expense and long-term incentive plan. |
|
|
4 Impairment of goodwill associated with assets held for sale and one other CGU. |
|
|
5 Impairment of property plant and equipment related to tooling. |
|
|
6 Impairment of intangible assets related to entertainment content. |
|
|
7 Legal settlement in the first, second and fourth quarters of 2022. |
|
|
8 Deferred incentive compensation associated with acquisitions. |
|
|
9 Net unrealized loss (gain) related to investment in limited partnership. |
|
|
10 Expense associated with contingent consideration for acquisitions. |
|
|
11 Professional fees incurred relating to acquisitions and other transactions. |
|
|
12 Tax effect of adjustments (Footnotes 1-11). Adjustments are tax effected at the effective tax rate of the given period. |
The following table presents a reconciliation of Operating Income to Adjusted Operating Income, Adjusted EBITDA, Adjusted EBITDA, excluding PAW Patrol: The Movie Distribution Revenue, Adjusted Net Income, and cash from operating activities to Free Cash Flow for the year ended December 31, 2022 and 2021:
|
Year Ended Dec 31 |
|||||
|
(in US$ millions) |
2022 |
2021 |
$ Change |
% Change |
|
|
Operating Income |
343.3 |
272.2 |
71.1 |
26.1 % |
|
|
Restructuring and other related costs1 |
4.9 |
2.5 |
2.4 |
96.0 % |
|
|
Foreign exchange gain2 |
(61.4) |
(2.9) |
(58.5) |
2,017.2 % |
|
|
Share based compensation3 |
17.6 |
15.3 |
2.3 |
15.0 % |
|
|
Impairment of goodwill4 |
— |
1.9 |
(1.9) |
(100.0) |
|
|
Impairment of property, plant and equipment5 |
1.9 |
— |
1.9 |
n.m. |
|
|
Impairment of intangible assets6 |
1.1 |
2.6 |
(1.5) |
(57.7) |
|
|
Legal settlement7 |
(0.5) |
— |
(0.5) |
n.m. |
|
|
Acquisition related deferred incentive compensation8 |
10.3 |
6.8 |
3.5 |
51.5 % |
|
|
Net unrealized gain on investment9 |
— |
(0.9) |
0.9 |
(100.0) % |
|
|
Investment distribution income10 |
(0.1) |
(0.6) |
0.5 |
(83.3) |
|
|
Loss on Minority interest and other investments11 |
0.5 |
— |
0.5 |
n.m. |
|
|
Acquisition related contingent consideration12 |
2.6 |
2.7 |
(0.1) |
(3.7) % |
|
|
Transaction costs13 |
1.0 |
2.8 |
(1.8) |
(64.3) % |
|
|
Gain on disposal of asset14 |
— |
(0.2) |
0.2 |
(100.0) |
|
|
Adjusted Operating Income |
321.2 |
302.2 |
19.0 |
6.3 % |
|
|
Depreciation and amortization |
68.2 |
111.9 |
(43.7) |
(39.1) % |
|
|
Adjusted EBITDA |
389.4 |
414.1 |
(24.7) |
(6.0) % |
|
|
Distribution revenue related to PAW Patrol: The Movie |
— |
(26.0) |
26.0 |
(100.0) % |
|
|
Adjusted EBITDA, excluding PAW Patrol: The Movie Distribution Revenue |
389.4 |
388.1 |
1.3 |
0.3 % |
|
|
Distribution revenue related to PAW Patrol: The Movie |
— |
(26.0) |
26.0 |
(100.0) % |
|
|
Income tax expense |
(79.1) |
(63.4) |
(15.7) |
24.8 % |
|
|
Finance costs |
(2.9) |
(10.2) |
7.3 |
(71.6) % |
|
|
Depreciation and amortization |
(68.2) |
(111.9) |
43.7 |
(39.1) % |
|
|
Tax effect of adjustments15 |
5.1 |
(7.3) |
12.4 |
(169.9) % |
|
|
Adjusted Net Income |
244.3 |
221.3 |
23.0 |
10.4 % |
|
|
Cash provided by operating activities |
249.3 |
419.1 |
(169.8) |
(40.5) % |
|
|
Cash used in investing activities |
(109.2) |
(153.2) |
44.0 |
(28.7) % |
|
|
Add: |
|||||
|
Cash used for business acquisitions, investment in limited partnership and Minority interest and other investments and trademark license agreement, net of investment distribution income |
9.8 |
73.7 |
(63.9) |
(86.7) |
|
|
Free Cash Flow |
149.9 |
339.6 |
(189.7) |
(55.9) % |
|
|
_________________________________ |
|
|
1 Restructuring expense primarily relates to changes in personnel. |
|
|
2 Includes foreign exchange (gains) losses generated by the translation and settlement of monetary assets/liabilities denominated in a currency other than the functional currency of the applicable entity and (gains) losses related to the Company’s hedging programs. The change in the current period was due to fluctuations in foreign currency denominated monetary assets and liabilities, primarily in the Canadian dollar, as well as the Swedish krona, Euro and Great Britain pound sterling. |
|
|
3 Related to non-cash expenses associated with the Company’s share option expense and long-term incentive plan. |
|
|
4 Impairment of goodwill associated with assets held for sale and one other CGU. |
|
|
5 Impairment of property plant and equipment related to tooling. |
|
|
6 Impairment of intangible assets related to entertainment content. |
|
|
7 Legal settlement in the first and second quarters of 2022. |
|
|
8 Deferred incentive compensation associated with acquisitions. |
|
|
9 Net unrealized gain related to investment in limited partnership. |
|
|
10 Distribution income related to investment in limited partnership. |
|
|
11 Fair value loss on the Minority interest and other investments classified as FVTPL. |
|
|
12 Expense associated with contingent consideration for acquisitions. |
|
|
13 Professional fees incurred relating to acquisitions and other transactions. |
|
|
14 Gain on disposal of intangible asset. |
|
|
15 Tax effect of adjustments (Footnotes 1-14). Adjustments are tax effected at the effective tax rate of the given period. |
The following tables present reconciliations of Revenue to Constant Currency Toy Gross Product Sales, Revenue to Constant Currency Digital Games revenue and Revenue to Constant Currency Revenue for the three months and year ended December 31, 2022, and 2021:
|
Year Ended Dec 31, |
||||
|
(US$ millions) |
Q4 2022 |
Q4 2021 |
2022 |
2021 |
|
Constant Currency Toy Gross Product Sales |
498.3 |
629.0 |
2,030.6 |
1,950.1 |
|
Impact of foreign exchange |
(19.1) |
(1.5) |
(51.8) |
12.3 |
|
Toy Gross Product Sales |
479.2 |
627.5 |
1,978.8 |
1,962.4 |
|
Sales Allowances |
(82.5) |
(85.5) |
(241.2) |
(230.6) |
|
Toy revenue |
396.7 |
542.0 |
1,737.6 |
1,731.8 |
|
Entertainment revenue |
31.2 |
28.5 |
118.8 |
135.8 |
|
Constant Currency Digital Games revenue |
40.1 |
50.7 |
171.9 |
172.5 |
|
Impact of foreign exchange |
(2.2) |
(0.7) |
(8.0) |
2.3 |
|
Digital Games revenue |
37.9 |
50.0 |
163.9 |
174.8 |
|
Constant Currency Revenue |
484.2 |
622.1 |
2,071.1 |
2,025.2 |
|
Impact of foreign exchange |
(18.4) |
(1.6) |
(50.8) |
17.2 |
|
Revenue |
465.8 |
620.5 |
2,020.3 |
2,042.4 |
The following tables present the composition of Percentage change in Constant Currency Toy Gross Product Sales, Percentage change in Constant Currency Digital Games Revenue, Percentage change in Constant Currency Revenue and Percentage change in Constant Currency Revenue, excluding PAW Patrol: The Movie Distribution Revenue for the three months and year ended December 31, 2022 and 2021:
|
$ Change |
% Change |
||||||||
|
(US$ millions) |
Q4 2022 |
Q4 2021 |
As reported |
Impact of foreign exchange |
In Constant Currency |
As reported |
In Constant Currency |
||
|
Toy Gross Product Sales |
$ 479.2 |
$ 627.5 |
$ (148.3) |
$ 19.1 |
$ (129.2) |
(23.6) % |
(20.6) % |
||
|
Digital Games revenue |
$ 37.9 |
$ 50.0 |
$ (12.1) |
$ 2.2 |
$ (9.9) |
(24.2) % |
(19.8) % |
||
|
Revenue |
$ 465.8 |
$ 620.5 |
$ (154.7) |
$ 18.4 |
$ (136.3) |
(24.9) % |
(22.0) % |
||
|
Year Ended Dec 31, |
$ Change |
% Change |
|||||||
|
(US$ millions) |
2022 |
2021 |
As reported |
Impact of foreign exchange |
In Constant Currency |
As reported |
In Constant Currency |
||
|
Toy Gross Product Sales |
$ 1,978.8 |
$ 1,962.4 |
$ 16.4 |
$ 51.8 |
$ 68.2 |
0.8 % |
3.5 % |
||
|
Digital Games revenue |
$ 163.9 |
$ 174.8 |
$ (10.9) |
$ 8.0 |
$ (2.9) |
(6.2) % |
(1.7) % |
||
|
Revenue |
$ 2,020.3 |
$ 2,042.4 |
$ (22.1) |
$ 50.8 |
$ 28.7 |
(1.1) % |
1.4 % |
||
|
Revenue excluding PAW Patrol: The Movie Distribution Revenue |
$ 2,020.3 |
$ 2,016.4 |
$ 3.9 |
$ 50.8 |
$ 54.7 |
0.2 % |
2.7 % |
||
Segment Results
The Company’s results from operations by reportable segment for the three months ended December 31, 2022 and 2021 are as follows:
|
(US$ millions) |
Q4 2022 |
Q4 2021 |
||||||||
|
Toys |
Entertainment |
Digital Games |
Corporate & Other |
Total |
Toys |
Entertainment |
Digital Games |
Corporate & Other |
Total |
|
|
Revenue |
396.7 |
31.2 |
37.9 |
— |
465.8 |
542.0 |
28.5 |
50.0 |
— |
620.5 |
|
Operating (Loss) Income |
(43.3) |
19.1 |
10.1 |
(9.9) |
(24.0) |
14.6 |
12.1 |
17.3 |
(4.9) |
39.1 |
|
Restructuring and other related (recovery) costs |
(0.2) |
— |
— |
— |
(0.2) |
1.2 |
— |
0.2 |
— |
1.4 |
|
Foreign exchange loss (gain) |
— |
— |
— |
4.8 |
4.8 |
— |
— |
— |
(0.7) |
(0.7) |
|
Share based compensation |
3.3 |
0.3 |
0.7 |
0.4 |
4.7 |
3.5 |
0.1 |
0.4 |
— |
4.0 |
|
Impairment of goodwill |
— |
— |
— |
— |
— |
1.9 |
— |
— |
— |
1.9 |
|
Impairment of property, plant and equipment |
0.9 |
— |
— |
— |
0.9 |
— |
— |
— |
— |
— |
|
Impairment of intangible assets |
— |
1.1 |
— |
— |
1.1 |
— |
1.2 |
— |
— |
1.2 |
|
Legal settlement |
— |
— |
— |
1.6 |
1.6 |
— |
— |
— |
— |
— |
|
Acquisition related deferred incentive compensation |
0.7 |
— |
1.5 |
— |
2.2 |
1.5 |
— |
1.1 |
— |
2.6 |
|
Net unrealized loss on investment |
— |
— |
— |
0.1 |
0.1 |
— |
— |
— |
0.3 |
0.3 |
|
Acquisition related contingent consideration |
3.1 |
— |
— |
— |
3.1 |
3.4 |
— |
— |
— |
3.4 |
|
Transaction costs |
— |
— |
— |
0.2 |
0.2 |
— |
— |
— |
2.1 |
2.1 |
|
Adjusted Operating (Loss) Income |
(35.5) |
20.5 |
12.3 |
(2.8) |
(5.5) |
26.1 |
13.4 |
19.0 |
(3.2) |
55.3 |
|
Depreciation and amortization |
11.1 |
4.8 |
1.9 |
0.1 |
17.9 |
14.7 |
6.3 |
2.0 |
— |
23.0 |
|
Adjusted EBITDA |
(24.4) |
25.3 |
14.2 |
(2.7) |
12.4 |
40.8 |
19.7 |
21.0 |
(3.2) |
78.3 |
|
Adjusted EBITDA Margin |
(6.2) % |
81.1 % |
37.5 % |
n.m. |
2.7 % |
7.5 % |
69.1 % |
42.0 % |
n.m. |
12.6 % |
Effective January 1, 2022, the Company revised its reportable operating segments to align with its current business structure and how the Company’s new CODM reviews operations and makes decisions. The following table presents 2021 segments in the same format that the Company presents its operating segments in 2022.
|
(US$ millions) |
Year Ended December 31, 2021 |
||||
|
Toys |
Entertainment |
Digital Games |
Corporate & Other |
Total |
|
|
Revenue |
1,731.8 |
135.8 |
174.8 |
— |
2,042.4 |
|
Operating Income |
159.0 |
53.4 |
67.5 |
(7.7) |
272.2 |
|
Restructuring and other related costs |
2.3 |
— |
0.2 |
— |
2.5 |
|
Foreign exchange gain |
— |
— |
— |
(2.9) |
(2.9) |
|
Share based compensation |
13.4 |
0.4 |
1.5 |
— |
15.3 |
|
Impairment of goodwill |
1.9 |
— |
— |
— |
1.9 |
|
Impairment of intangible assets |
— |
2.1 |
0.5 |
— |
2.6 |
|
Acquisition related deferred incentive compensation |
4.3 |
— |
2.5 |
— |
6.8 |
|
Net unrealized gain on investment |
— |
— |
— |
(0.9) |
(0.9) |
|
Investment distribution income |
— |
— |
— |
(0.6) |
(0.6) |
|
Acquisition related contingent consideration |
2.7 |
— |
— |
— |
2.7 |
|
Transaction costs |
— |
— |
— |
2.8 |
2.8 |
|
Gain on disposal of asset |
(0.2) |
— |
— |
— |
(0.2) |
|
Adjusted Operating Income |
183.4 |
55.9 |
72.2 |
(9.3) |
302.2 |
|
Depreciation and amortization |
56.3 |
48.2 |
7.4 |
— |
111.9 |
|
Adjusted EBITDA |
239.7 |
104.1 |
79.6 |
(9.3) |
414.1 |
|
(US$ millions) |
Q1 2021 |
||||
|
Toys |
Entertainment |
Digital Games |
Corporate & Other |
Total |
|
|
Revenue |
255.6 |
26.9 |
34.1 |
— |
316.6 |
|
Operating Income |
(12.1) |
10.6 |
13.2 |
(5.0) |
6.7 |
|
Restructuring and other related costs |
0.7 |
— |
— |
— |
0.7 |
|
Foreign exchange loss |
— |
— |
— |
3.7 |
3.7 |
|
Share based compensation |
2.8 |
0.1 |
0.3 |
— |
3.2 |
|
Impairment of intangible assets |
— |
0.9 |
— |
— |
0.9 |
|
Net unrealized gain on investment |
— |
— |
— |
(0.9) |
(0.9) |
|
Acquisition related contingent consideration |
(0.7) |
— |
— |
— |
(0.7) |
|
Adjusted Operating Income |
(9.3) |
11.6 |
13.5 |
(2.2) |
13.6 |
|
Depreciation and amortization |
14.4 |
6.6 |
2.1 |
— |
23.1 |
|
Adjusted EBITDA |
5.1 |
18.2 |
15.6 |
(2.2) |
36.7 |
|
(US$ millions) |
Q2 2021 |
||||
|
Toys |
Entertainment |
Digital Games |
Corporate & Other |
Total |
|
|
Revenue |
326.4 |
27.5 |
36.9 |
— |
390.8 |
|
Operating Income |
28.5 |
12.5 |
12.8 |
(6.9) |
46.9 |
|
Foreign exchange loss |
— |
— |
— |
4.9 |
4.9 |
|
Share based compensation |
3.7 |
0.1 |
0.2 |
— |
4.0 |
|
Impairment of intangible assets |
— |
— |
0.5 |
— |
0.5 |
|
Acquisition related deferred incentive compensation |
1.3 |
— |
0.2 |
— |
1.5 |
|
Net unrealized gain on investment |
— |
— |
— |
(0.3) |
(0.3) |
|
Investment distribution income |
— |
— |
— |
(0.4) |
(0.4) |
|
Transaction costs |
— |
— |
— |
0.6 |
0.6 |
|
Adjusted Operating Income |
33.5 |
12.6 |
13.7 |
(2.1) |
57.7 |
|
Depreciation and amortization |
13.8 |
8.4 |
1.9 |
— |
24.1 |
|
Adjusted EBITDA |
47.3 |
21.0 |
15.6 |
(2.1) |
81.8 |
|
(US$ millions) |
Q3 2021 |
||||
|
Toys |
Entertainment |
Digital Games |
Corporate & Other |
Total |
|
|
Revenue |
607.8 |
52.9 |
53.8 |
— |
714.5 |
|
Operating Income |
128.0 |
18.2 |
24.2 |
9.1 |
179.5 |
|
Restructuring and other related costs |
0.4 |
— |
— |
— |
0.4 |
|
Foreign exchange gain |
— |
— |
— |
(10.8) |
(10.8) |
|
Share based compensation |
3.4 |
0.1 |
0.6 |
— |
4.1 |
|
Acquisition related deferred incentive compensation |
1.5 |
— |
1.2 |
— |
2.7 |
|
Investment distribution income |
— |
— |
— |
(0.2) |
(0.2) |
|
Transaction costs |
— |
— |
— |
0.1 |
0.1 |
|
Gain on disposal of asset |
(0.2) |
— |
— |
— |
(0.2) |
|
Adjusted Operating Income |
133.1 |
18.3 |
26.0 |
(1.8) |
175.6 |
|
Depreciation and amortization |
13.4 |
26.9 |
1.4 |
— |
41.7 |
|
Adjusted EBITDA |
146.5 |
45.2 |
27.4 |
(1.8) |
217.3 |
|
(US$ millions) |
Q4 2021 |
||||
|
Toys |
Entertainment |
Digital Games |
Corporate & Other |
Total |
|
|
Revenue |
542.0 |
28.5 |
50.0 |
— |
620.5 |
|
Operating Income |
14.6 |
12.1 |
17.3 |
(4.9) |
39.1 |
|
Restructuring and other related costs |
1.2 |
— |
0.2 |
— |
1.4 |
|
Foreign exchange gain |
— |
— |
— |
(0.7) |
(0.7) |
|
Share based compensation |
3.5 |
0.1 |
0.4 |
— |
4.0 |
|
Impairment of goodwill |
1.9 |
— |
— |
— |
1.9 |
|
Impairment of intangible assets |
— |
1.2 |
— |
— |
1.2 |
|
Acquisition related deferred incentive compensation |
1.5 |
— |
1.1 |
— |
2.6 |
|
Net unrealized loss on investment |
— |
— |
— |
0.3 |
0.3 |
|
Acquisition related contingent consideration |
3.4 |
— |
— |
— |
3.4 |
|
Transaction costs |
— |
— |
— |
2.1 |
2.1 |
|
Adjusted Operating Income |
26.1 |
13.4 |
19.0 |
(3.2) |
55.3 |
|
Depreciation and amortization |
14.7 |
6.3 |
2.0 |
— |
23.0 |
|
Adjusted EBITDA |
40.8 |
19.7 |
21.0 |
(3.2) |
78.3 |
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