Spin Master Reports Q4 2024 and 2024 Financial Results 2024 Revenue exceeds $2.2 billion, Up 18.8%
Toronto, Canada — Spin Master Corp. reported its financial results for the three months and year ended December 31, 2024. .
“I’m proud of our team’s relentless commitment to creating magical play experiences by launching excitement and innovation in the toy category, enhancing customization and value in digital games and producing engaging entertainment content that resonates with audiences globally,” said Max Rangel, Spin Master’s Global President & CEO. “These collective efforts helped us achieve our 2024 Gross Product Sales and Revenue expectations. We are pleased with the progress we have made in integrating Melissa & Doug, which had a strong year, generating growth with new product launches and expanded distribution. Looking forward, we are excited about our formula for growth across all our creative centres, including innovation and licenses within Toys, a positive trajectory in Digital Games driven by Toca Boca World and Piknik and our strong Entertainment content pipeline, all in support of our goal of igniting kids’ imaginations and driving and sustaining long-term, profitable growth in order to maximize shareholder value.”
“We were pleased with our revenue performance with growth of 29% for the fourth quarter and just under 19% for the full year” said Mark Segal, Spin Master’s Chief Financial Officer. “We achieved over $10 million in Net Cost Synergies for the year related to the Melissa & Doug integration, which represents an annualized run-rate of $14 million against our target of $25 – $30 million run-rate by the end of 2026. We generated $215 million in adjusted free cash flow in 2024, reinforcing the cash generative power of our underlying businesses. Our disciplined and holistic approach to capital allocation continues to be a key driver of shareholder value. We remain committed to a balanced approach – continuing to look for opportunities to invest strategically in high-return growth opportunities while also returning capital to shareholders through dividends and share repurchases. We repurchased over 2.3 million shares under our NCIB in 2024. Looking ahead, our financial framework for value creation puts us in a solid position financially and operationally to generate long-term growth.”
Consolidated Financial Highlights for Q4 2024 and 2024 as compared to the same periods in 2023
- Q4 2024 Revenue was $649.1 million, an increase of 29.1%, and includes Melissa & Doug Revenue of $136.0 million. 2024 Revenue was $2,263.0 million, an increase of 18.8%, and includes Melissa & Doug Revenue of $374.7 million.
- Q4 2024 and 2024 Operating Income was $47.1 million compared to Operating Loss of $36.6 million, and $165.5 million compared to $188.9 million, respectively.
- Q4 2024 Adjusted EBITDA1 was $113.9 million, an increase of $49.0 million, and includes Melissa & Doug Adjusted EBITDA1 of $40.9 million. Adjusted EBITDA Margin1 was 17.5% compared to 12.9%. Adjusted EBITDA, excluding Melissa & Doug1 was $73.0 million compared to $64.9 million.
- 2024 Adjusted EBITDA1 was $463.6 million, an increase of $44.8 million, and includes Melissa & Doug Adjusted EBITDA1 of $74.1 million. 2023 Adjusted EBITDA1 included $15.6 million related to the initial delivery of PAW Patrol: The Mighty Movie. Excluding the revenue from the PAW Patrol: The Mighty Movie in 2023, 2024 Adjusted EBITDA1 increased by $60.4 million. Adjusted EBITDA Margin1 was 20.5% compared to 22.0%. Adjusted EBITDA Margin, excluding Melissa & Doug1 was 20.6%. Adjusted EBITDA Margin, excluding PAW Patrol: The Mighty Movie Revenue1 in 2023 was 21.3%.
- Q4 2024 Net Income was $21.1 million or $0.20 per share (diluted) compared to Net Loss of $30.1 million or $(0.29) per share. Adjusted Net Income1 was $57.4 million or $0.55 per share (diluted) compared to $20.5 million or $0.19 per share (diluted).
- 2024 Net Income was $81.9 million or $0.77 per share (diluted) compared to $151.4 million or $1.43 per share (diluted). Adjusted Net Income1 was $217.2 million or $2.05 per share (diluted) compared to $225.2 million or $2.13 per share (diluted).
- Realized $10.9 million in total Net Cost Synergies2 in 2024, which represents an annualized run-rate of $14 million towards the target of $25 million to $30 million in Run-rate Net Cost Synergies2 by the end of 2026.
- Cash provided by operating activities in Q4 2024 and 2024 was $203.4 million compared to $67.9 million, and $328.0 million compared to $227.0 million, respectively.
- Q4 2024 and 2024 Free Cash Flow1 was $175.0 million compared to $44.3 million, and $215.5 million compared to $122.9 million, respectively.
- Repurchased and cancelled 2,370,960 subordinate voting shares for $54.5 million (C$74.2 million) in 2024 through the Company’s Normal Course Issuer Bid (the “NCIB”) program. Subsequent to December 31, 2024, the Company repurchased and cancelled 30,100 subordinate voting shares for $0.6 million.
- Subsequent to December 31, 2024, the Company declared a quarterly dividend of C$0.12 per outstanding subordinate voting share and multiple voting share, payable on April 11, 2025.
2025 Outlook
The Company expects for 2025:
- Toy Gross Product Sales1 to increase 4% to 5% compared to 2024
- Toy Gross Product Sales1 seasonality to be approximately 31% to 33% in the first half.
- Revenue to increase 4% to 6% compared to 2024.
- Adjusted EBITDA Margin1 of 20.0% to 21.0% as compared to 20.5% in 2024.
The Company’s Outlook for 2025 includes Melissa & Doug.
Consolidated Financial Results as compared to the same period in 2023
Effective January 2, 2024, Melissa & Doug’s operating results for the three months and year ended December 31, 2024 are included in the Company’s consolidated results.
| (US$ millions, except per share information) | Year Ended Dec 31 | |||||||||||
| Q4 2024 | Q4 2023 | $ | Change | 2024 | 2023 | $ | Change | |||||
| Consolidated Results | ||||||||||||
| Revenue4 | $ | 649.1 | $ | 502.6 | $ | 146.5 | $ | 2,263.0 | $ | 1,904.9 | $ | 358.1 |
| Operating Income (Loss) | $ | 47.1 | $ | (36.6) | $ | 83.7 | $ | 165.5 | $ | 188.9 | $ | (23.4) |
| Operating Margin2 | 7.3 % | (7.3) % | 7.3 % | 9.9 % | ||||||||
| Adjusted Operating Income1,3 | $ | 81.3 | $ | 23.2 | $ | 58.1 | $ | 333.8 | $ | 288.7 | $ | 45.1 |
| Adjusted Operating Margin1 | 12.5 % | 4.6 % | 14.8 % | 15.2 % | ||||||||
| Net Income (Loss) | $ | 21.1 | $ | (30.1) | $ | 51.2 | $ | 81.9 | $ | 151.4 | $ | (69.5) |
| Adjusted Net Income1,3 | $ | 57.4 | $ | 36.9 | $ | 217.2 | $ | 225.2 | $ | (8.0) | ||
| Adjusted EBITDA1,3,4 | $ | 113.9 | $ | 64.9 | $ | 49.0 | $ | 463.6 | $ | 418.8 | $ | 44.8 |
| Adjusted EBITDA Margin1 | 17.5 % | 12.9 % | 20.5 % | 22.0 % | ||||||||
| Earnings Per Share (“EPS”) | ||||||||||||
| Basic EPS | $ | 0.21 | $ | (0.29) | $ | 0.79 | $ | 1.46 | ||||
| Diluted EPS | $ | 0.20 | $ | (0.29) | $ | 0.77 | $ | 1.43 | ||||
| Adjusted Basic EPS1 | $ | 0.56 | $ | 0.20 | $ | 2.10 | $ | 2.18 | ||||
| Adjusted Diluted EPS1 | $ | 0.55 | $ | 0.19 | $ | 2.05 | $ | 2.13 | ||||
| Weighted average number of shares (in millions) | ||||||||||||
| Basic | 102.4 | 103.7 | 103.3 | 103.5 | ||||||||
| Diluted | 105.2 | 106.2 | 105.8 | 105.7 | ||||||||
| Selected Cash Flow Data | ||||||||||||
| Cash provided by operating activities | $ | 203.4 | $ | 67.9 | $ | 135.5 | $ | 328.0 | $ | 227.0 | $ | 101.0 |
| Cash used in investing activities | $ | (30.5) | $ | (23.3) | $ | (7.2) | $ | (1,068.5) | $ | (135.3) | $ | (933.2) |
| Cash (used in) provided by financing activities | $ | (49.5) | $ | (8.2) | $ | (41.3) | $ | 270.2 | $ | (44.1) | $ | 314.3 |
| Free Cash Flow1 | $ | 175.0 | $ | 44.3 | $ | 130.7 | $ | 215.5 | $ | 122.9 | $ | 92.6 |
| 1 Non-GAAP financial measure or ratio. See “Non-GAAP Financial Measures and Ratios, Supplementary Financial Measures”. | ||||||||||||
| 2 Operating Margin is calculated as Operating Income (Loss) divided by Revenue. | ||||||||||||
| 3 Adjustments in 2024 include fair value adjustment for inventories acquired of $66.3 million and transaction and integration costs of $31.9 million. Refer to the “Reconciliation of Non-GAAP Financial Measures” section for further details on the adjustments. | ||||||||||||
| 4 Included in the operating results of the three months and year ended December 31, 2024 is Melissa & Doug Revenue of $136.0 million and $374.7 million and Melissa & Doug Adjusted EBITDA1 of $40.9 million and $74.1 million, respectively. | ||||||||||||
2024 Revenue was $2,263.0 million, an increase of 18.8% from $1,904.9 million, and includes Melissa & Doug Revenue of $374.7 million. Revenue increased by 25.9% in Toys, and declined by 16.6% in Entertainment and 5.4% in Digital Games.
2024 Operating Income was $165.5 million, a decrease of $23.4 million from $188.9 million, primarily driven by a decline in Operating Income of $27.0 million from Digital Games, partially offset by an increase of $8.0 million in Entertainment.
2024 Adjusted Operating Income1 was $333.8 million, an increase of $45.1 million from $288.7 million, primarily driven by an increase in Toys Adjusted Operating Income1 of $56.1 million, partially offset by a decrease in Digital Games Adjusted Operating Income1 of $18.2 million.
2024 Adjusted EBITDA1 was $463.6 million compared to $418.8 million in 2023. 2023 Adjusted EBITDA1 included $15.6 million related to the initial delivery of PAW Patrol: The Mighty Movie. Excluding the revenue from the PAW Patrol: The Mighty Movie in 2023, 2024 Adjusted EBITDA1 increased by $60.4 million. The increase was primarily driven by the inclusion of Melissa & Doug, partially offset by lower Gross Profit due to lower Revenue in Entertainment and Digital Games and increased marketing across the Digital Games portfolio.
The following summarizes the impact of Melissa & Doug’s operating results on the three months and year ended December 31, 2024 consolidated results:
| Year Ended Dec 31, | ||||
| (US$ millions) | Q4 2024 | Q4 2023 | 2024 | 2023 |
| Revenue | 649.1 | 502.6 | 2,263.0 | 1,904.9 |
| Melissa & Doug Revenue | 136.0 | — | 374.7 | — |
| Revenue, excluding Melissa & Doug1 | 513.1 | 502.6 | 1,888.3 | 1,904.9 |
| Toy Gross Product Sales1 | 660.0 | 502.3 | 2,231.5 | 1,787.2 |
| Melissa & Doug Toy Gross Product Sales1 | 152.6 | — | 433.3 | — |
| Toy Gross Product Sales, excluding Melissa & Doug1 | 507.4 | 502.3 | 1,798.2 | 1,787.2 |
| Adjusted EBITDA1 | 113.9 | 64.9 | 463.6 | 418.8 |
| Melissa & Doug Adjusted EBITDA1 | 40.9 | — | 74.1 | — |
| Adjusted EBITDA, excluding Melissa & Doug1 | 73.0 | 64.9 | 389.5 | 418.8 |
| Adjusted EBITDA Margin1 | 17.5 % | 12.9 % | 20.5 % | 22.0 % |
| Adjusted EBITDA Margin, excluding PAW Patrol: The Mighty Movie Revenue1 | 17.5 % | 12.9 % | 20.5 % | 21.3 % |
| Melissa & Doug Adjusted EBITDA Margin1 | 30.1 % | — % | 19.8 % | — % |
| Adjusted EBITDA Margin, excluding Melissa & Doug1 | 14.2 % | 12.9 % | 20.6 % | 22.0 % |
| 1 Non-GAAP financial measure or ratio. See “Non-GAAP Financial Measures and Ratios, Supplementary Financial Measures”. | ||||
Segmented Financial Results as compared to the same period in 2023
| (US$ millions) | Q4 2024 | Q4 2023 | ||||||||
| Toys | Entertainment | Digital Games |
Corporate & Other1 |
Total | Toys | Entertainment | Digital Games |
Corporate & Other1 |
Total | |
| Revenue | $ 561.7 | $ 41.3 | $ 46.1 | $ — | $ 649.1 | $406.8 | $ 55.2 | $ 40.6 | $ — | $ 502.6 |
| Operating Income (Loss) | $ 31.7 | $ 19.7 | $ (0.5) | $ (3.8) | $ 47.1 | $(30.0) | $ 9.7 | $ 9.7 | $ (26.0) | (36.6) |
| Adjusted Operating Income (Loss)2 | $ 53.5 | $ 20.3 | $ 11.5 | $ (4.0) | $ 81.3 | $ 5.4 | $ 10.5 | $ 10.8 | $ (3.5) | $ 23.2 |
| Adjusted EBITDA2 | $ 76.2 | $ 26.3 | $ 15.4 | $ (4.0) | $113.9 | $ 19.3 | $ 36.1 | $ 13.0 | $ (3.5) | $ 64.9 |
| 1 Corporate & Other includes certain corporate costs, foreign exchange, transaction and integration costs, and investment income (loss), net. | ||||||||||
| 2 Non-GAAP financial measure or ratio. See “Non-GAAP Financial Measures and Ratios, Supplementary Financial Measures”. | ||||||||||
Toys Segment Results
The following table provides a summary of the Toys segment operating results, for the three months ended December 31, 2024 and 2023:
| (US$ millions) | Q4 2024 | Q4 2023 | $ Change | % Change | |||
| Preschool, Infant & Toddler and Plush1 | $ | 345.7 | $ | 169.3 | $ | 176.4 | 104.2 % |
| Activities, Games & Puzzles and Dolls & Interactive | $ | 206.2 | $ | 196.0 | $ | 10.2 | 5.2 % |
| Wheels & Action | $ | 91.7 | $ | 113.3 | $ | (21.6) | (19.1) % |
| Outdoor | $ | 16.4 | $ | 23.7 | $ | (7.3) | (30.8) % |
| Toy Gross Product Sales2,5 | $ | 660.0 | $ | 502.3 | $ | 157.7 | 31.4 % |
| Sales Allowances3 | $ | (102.5) | $ | (95.5) | $ | (7.0) | 7.3 % |
| Sales Allowances % of Toy Gross Product Sales2 | 15.5 % | 19.0 % | (3.5) % | ||||
| Toy Net Sales | $ | 557.5 | $ | 406.8 | $ | 150.7 | 37.0 % |
| Toy – Other Revenue | $ | 4.2 | $ | — | $ | 4.2 | n.m. |
| Toy Revenue | $ | 561.7 | $ | 406.8 | $ | 154.9 | 38.1 % |
| Toys Operating Income (Loss) | $ | 31.7 | $ | (30.0) | $ | 61.7 | (205.7) % |
| Toys Operating Margin4 | 5.6 % | (7.4) % | 13.0 % | ||||
| Toys Adjusted EBITDA2 | $ | 76.2 | $ | 19.3 | $ | 56.9 | 294.8 % |
| Toys Adjusted EBITDA Margin2 | 13.6 % | 4.7 % | 8.9 % | ||||
| 1 Melissa & Doug is included within the Preschool, Infant & Toddler and Plush product categories beginning from the date of acquisition. | |||||||
| 2 Non-GAAP financial measure or ratio. See “Non-GAAP Financial Measures and Ratios, Supplementary Financial Measures”. | |||||||
| 3 The Company enters arrangements to provide sales allowances requested by customers relating to cooperative advertising, contractual and negotiated promotional discounts, volume rebates, markdowns, and costs incurred by customers to sell the Company’s products. | |||||||
| 4 Operating Margin is calculated as segment Operating Income divided by segment Revenue. | |||||||
| 5 Effective January 1, 2024, the Company has changed its product categories to align with the Company’s product offerings going forward. Prior year comparative information has been updated to conform with the current disclosure. Refer to “Addendum” section for more details. | |||||||
| (US$ millions) | Q4 2024 | Q4 2023 | $ Change | % Change |
| Toy Revenue | 561.7 | 406.8 | 154.9 | 38.1 % |
| Melissa & Doug Revenue | 136.0 | — | 136.0 | n.m. |
| Toy Revenue, excluding Melissa & Doug1 | 425.7 | 406.8 | 18.9 | 4.6 % |
| Toys Adjusted EBITDA1 | 76.2 | 19.3 | 56.9 | 294.8 % |
| Melissa & Doug Adjusted EBITDA1 | 40.9 | — | 40.9 | n.m. |
| Toys Adjusted EBITDA, excluding Melissa & Doug1 | 35.3 | 19.3 | 16.0 | 82.9 % |
| Toys Adjusted EBITDA Margin1 | 13.6 % | 4.7 % | ||
| Toys Adjusted EBITDA Margin, excluding Melissa & Doug1 | 8.3 % | 4.7 % | ||
| 1 Non-GAAP financial measure or ratio. See “Non-GAAP Financial Measures and Ratios, Supplementary Financial Measures”. | ||||
- Toy Revenue increased by $154.9 million or 38.1% to $561.7 million.
- Toy Gross Product Sales1 increased by $157.7 million or 31.4% to $660.0 million, including Melissa & Doug Toy Gross Product Sales1 of $152.6 million. Toy Gross Product Sales1 increased primarily as a result of the inclusion of Melissa & Doug. Toy Gross Product Sales, excluding Melissa & Doug1 increased by $5.1 million or 1.0% to $507.4 million.
- Sales Allowances increased by $7.0 million to $102.5 million. As a percentage of Toy Gross Product Sales1, Sales Allowances decreased to 15.5% from 19.0% due to lower markdowns and promotional activity and a change in geographic market mix.
- Toys Operating Income was $31.7 million compared to Toy Operating Loss of $30.0 million. The increase in Toys Operating Income was driven by lower impairment of goodwill. In addition, the increase was driven by the inclusion of Melissa & Doug and higher Gross Profit due to lower Sales Allowances as a percentage of Toy Gross Product Sales1.
- Toys Operating Margin was 5.6% compared to (7.4)%.
- Toys Adjusted EBITDA1 was $76.2 million compared to $19.3 million.
- Toys Adjusted EBITDA Margin1 was 13.6% compared to 4.7%. The increase in Toys Adjusted EBITDA Margin1 was driven by the inclusion of Melissa & Doug, lower Sales Allowances as a percentage of Toy Gross Product Sales1 and lower marketing and distribution expenses relative to Toy Revenue. The seasonality of Melissa & Doug’s revenue is more heavily weighted to the second half of the year, which resulted in improved operating leverage.
Entertainment Segment Results
The following table provides a summary of Entertainment segment operating results, for the three months ended December 31, 2024 and 2023:
| (US$ millions) | Q4 2024 | Q4 2023 | $ | Change | % Change | ||
| Entertainment Revenue | $ | 41.3 | $ | 55.2 | $ | (13.9) | (25.2) % |
| Entertainment Operating Income | $ | 19.7 | $ | 9.7 | $ | 10.0 | 103.1 % |
| Entertainment Operating Margin | 47.7 % | 17.6 % | 30.1 % | ||||
| Entertainment Adjusted Operating Income1 | $ | 20.3 | $ | 10.5 | $ | 9.8 | 93.3 % |
| Entertainment Adjusted Operating Margin1 | 49.2 % | 19.0 % | 30.2 % | ||||
| 1 Non-GAAP financial measure or ratio. See “Non-GAAP Financial Measures and Ratios, Supplementary Financial Measures”. | |||||||
- Entertainment Revenue decreased by $13.9 million or 25.2% to $41.3 million, due to fewer Entertainment content deliveries, including Unicorn Academy delivered in 2023.
- Entertainment Operating Income increased by $10.0 million or 103.1% to $19.7 million, due to lower amortization of production costs and brand promotion costs, primarily related to Unicorn Academy delivered in 2023.
- Entertainment Operating Margin increased to 47.7% from 17.6%.
- Entertainment Adjusted Operating Income1 increased by $9.8 million or 93.3% to $20.3 million from $10.5 million.
- Entertainment Adjusted Operating Margin1 increased to 49.2% from 19.0%, due to fewer Entertainment content deliveries, including Unicorn Academy delivered in the prior year and lower marketing expenses.
Digital Games Segment Results
The following table provides a summary of Digital Games segment operating results, for the three months ended December 31, 2024 and 2023:
| (US$ millions) | Q4 2024 | Q4 2023 | $ | Change | % Change | ||
| Digital Games Revenue | $ | 46.1 | $ | 40.6 | $ | 5.5 | 13.5 % |
| Digital Games Operating (Loss) Income | $ | (0.5) | $ | 9.7 | $ | (10.2) | (105.2) % |
| Digital Games Operating Margin | (1.1) % | 23.9 % | (25.0) % | ||||
| Digital Games Adjusted Operating Income1 | $ | 11.5 | $ | 10.8 | $ | 0.7 | 6.5 % |
| Digital Games Adjusted Operating Margin1 | 24.9 % | 26.6 % | (1.7) % | ||||
| 1 Non-GAAP financial measure or ratio. See “Non-GAAP Financial Measures and Ratios, Supplementary Financial Measures”. | |||||||
- Digital Games Revenue increased by $5.5 million or 13.5% to $46.1 million, due to growth in subscriptions across Piknik and PAW Patrol Academy and revenue generated from strategic partnerships.
- Digital Games Operating Income declined by $10.2 million to Operating Loss of $0.5 million. The decrease was primarily due to impairment of app development intangible assets and goodwill, acquisition related contingent consideration, and restructuring costs.
- Digital Games Operating Margin decreased from 23.9% to (1.1)%.
- Digital Games Adjusted Operating Income1 remained relatively flat at $11.5 million, due to an increase in Digital Games Revenue offset by increased investments in marketing across the Digital Games portfolio.
- Digital Games Adjusted Operating Margin1 decreased from 26.6% to 24.9%. The decline in Digital Games Adjusted Operating Margin1 was due to increased marketing across the Digital Games portfolio, partially offset by an increase in Digital Games Revenue.
Liquidity
The Company has an unsecured revolving credit facility (the “Facility”) with a borrowing capacity of $510.0 million which matures on September 28, 2026, and contains certain financial covenants.
The Company has a non-revolving credit facility (the “Acquisition Facility”) for the acquisition of Melissa & Doug, with a borrowing capacity of $225.0 million which matures on September 30, 2025, and contains certain financial covenants.
During the year ended December 31, 2024, the Company repaid $135.0 million of the Facility. As at December 31, 2024, there was $165.0 million outstanding (December 31, 2023 – $nil) under the Facility and $225.0 million outstanding (December 31, 2023 – $nil) under the Acquisition Facility. For the year ended December 31, 2024, the weighted average interest rate on both the Facility and the Acquisition Facility was 6.6% (December 31, 2023 – 0%).
As at December 31, 2024, the Company had available liquidity of $583.3 million, comprised of $233.5 million in Cash, of which $7.7 million was in a geographic region which is subject to certain limitations, and $349.8 million under the Company’s credit facilities.
Cash Flows for the year ended December 31, 2024 compared to the same period in 2023
Cash provided by operating activities in 2024 was $328.0 million, compared to $227.0 million driven by change in non-cash working capital and lower income taxes paid, partially offset by higher interest paid and lower Net Income, adjusted for non-cash items. Change in non-cash working capital decreased by $24.9 million as compared to a decrease of $105.1 million.
Cash provided by financing activities in 2024 was $270.2 million compared to cash used in financing activities of $44.1 million, including proceeds of $525.0 million of debt to finance the acquisition of Melissa & Doug, partially offset by debt repayments of $135.0 million, the repurchase and cancellation of 2,370,960 subordinate voting shares for $54.5 million (C$74.2 million) through the Company’s Normal Course Issuer Bid (“NCIB”) program and payment of $27.5 million in dividends.
Free Cash Flow1 in 2024 was $215.5 million compared to $122.9 million, primarily due to change in non-cash working capital and lower income taxes paid, partially offset by higher interest paid and lower Net Income, adjusted for non-cash items.
Capitalization
The Company’s Board of Directors declared a dividend of C$0.12 per outstanding subordinate voting share and multiple voting share, payable on Apr 11, 2025 to shareholders of record at the close of business on Mar 28, 2025. The dividend is designated to be an eligible dividend for purposes of section 89(1) of the Income Tax Act (Canada).
The weighted average basic and diluted shares outstanding as at December 31, 2024 were 103.3 million and 105.8 million, compared to 103.5 million and 105.7 million in the prior year, respectively.
During the year ended December 31, 2024, the Company repurchased and cancelled, through the Company’s NCIB program, 2,370,960 (2023 – 397,700 shares) subordinate voting shares for $54.5 million (2023 – $10.5 million). Subsequent to December 31, 2024, the Company repurchased and cancelled 30,100 subordinate voting shares for $0.6 million.
| 1 Non-GAAP financial measure or ratio. See “Non-GAAP Financial Measures and Ratios, Supplementary Financial Measures”. |
| 2 Supplementary financial measure. See “Non-GAAP Financial Measures and Ratios, Supplementary Financial Measures”. |
Forward-Looking Statements
Certain statements, other than statements of historical fact, contained in this Press Release constitute “forward-looking information” within the meaning of certain securities laws, including the Securities Act (Ontario), and are based on expectations, estimates and projections as of the date on wh Company.
a complete list of
Conference call
Max Rangel, Global President and Chief Executive Officer and Mark Segal, Chief Financial Officer will host a conference call to discuss the financial results on Tuesday, February 25, 2025 at 9:30 a.m. (ET).
The call-in numbers for participants are (416) 945-7677 or 1 (888) 699-1199 . A live webcast of the call will be accessible via Spin Master’s website at: http://www.spinmaster.com/events.php. Following the call, both an audio recording and transcript of the call will be archived on the same website page for 12 months.
About Spin M
| Dec 31, | Dec 31, | |
| (In US$ millions) | 2024 | 2023 |
| Assets | ||
| Current assets | ||
| Cash and cash equivalents | 233.5 | 705.7 |
| Trade receivables, net | 499.4 | 414.4 |
| Other receivables | 54.9 | 60.0 |
| Inventories, net | 184.7 | 98.0 |
| Income tax receivable | — | — |
| Prepaid expenses and other assets | 48.7 | 40.9 |
| 1,021.2 | 1,319.0 | |
| Non-current assets | ||
| Intangible assets | 837.4 | 281.3 |
| Goodwill | 368.1 | 165.9 |
| Right-of-use assets | 149.5 | 53.6 |
| Property, plant and equipment | 60.2 | 32.6 |
| Deferred income tax assets | 167.1 | 110.8 |
| Other assets | 29.9 | 26.5 |
| 1,612.2 | 670.7 | |
| Total assets | 2,633.4 | 1,989.7 |
| Liabilities | ||
| Current liabilities | ||
| Trade payables and accrued liabilities | 429.5 | 385.4 |
| Loans and borrowings | 389.1 | — |
| Provisions | 24.7 | 32.1 |
| Lease liabilities | 22.3 | 11.4 |
| Deferred revenue | 22.0 | 11.0 |
| Income tax payable | — | 6.6 |
| 887.6 | 446.5 | |
| Non-current liabilities | ||
| Deferred income tax liabilities | 209.9 | 59.1 |
| Lease liabilities | 123.0 | 50.7 |
| Provisions | 10.5 | 14.3 |
| 343.4 | 124.1 | |
| Total liabilities | 1,231.0 | 570.6 |
| Shareholders’ equity | ||
| Share capital | 765.6 | 783.4 |
| Retained earnings | 621.5 | 604.5 |
| Contributed surplus | 45.5 | 27.4 |
| Accumulated other comprehensive (loss) income (Restated – Note 2(C)) | (48.8) | 3.8 |
| Total shareholders’ equity | 1,402.4 | 1,419.1 |
| Total liabilities and shareholders’ equity | 2,633.4 | 1,989.7 |
| Year Ended Dec 31, | ||
| (In US$ millions, except earnings per share) | 2024 | 2023 |
| Revenue | 2,263.0 | 1,904.9 |
| Cost of sales | 1,072.1 | 866.5 |
| Gross Profit | 1,190.9 | 1,038.4 |
| Expenses | ||
| Selling, general and administrative | 931.9 | 775.7 |
| Depreciation and amortization | 72.7 | 25.4 |
| Other expense, net | 22.3 | 33.7 |
| Foreign exchange (gain) loss, net | (1.5) | 14.7 |
| Operating Income | 165.5 | 188.9 |
| Interest expense | 50.5 | 15.1 |
| Interest income | (4.0) | (27.4) |
| Income before income tax expense | 119.0 | 201.2 |
| Income tax expense | 37.1 | 49.8 |
| Net Income | 81.9 | 151.4 |
| Earnings per share | ||
| Basic | 0.79 | 1.46 |
| Diluted | 0.77 | 1.43 |
| Weighted average number of shares (in millions) | ||
| Basic | 103.3 | 103.5 |
| Diluted | 105.8 | 105.7 |
| Year Ended Dec 31, | ||
| (In US$ millions) | 2024 | 2023 |
| Net Income | 81.9 | 151.4 |
| Items that may be subsequently reclassified to Net Income | ||
| Foreign currency translation (loss) gain | (34.0) | 24.8 |
| Other comprehensive (loss) income | (34.0) | 24.8 |
| Total comprehensive income | 47.9 | 176.2 |
| Year Ended Dec 31, | ||
| (in US$ millions) | 2024 | 2023 |
| Operating activities | ||
| Net Income | 81.9 | 151.4 |
| Adjustments to reconcile net income to cash provided by operating activities | ||
| Income tax expense | 37.1 | 49.8 |
| Interest expense | 38.4 | — |
| Interest income | (4.0) | (27.4) |
| Depreciation and amortization | 136.8 | 130.1 |
| Loss on disposal of non-current assets | 1.3 | 1.1 |
| Accretion expense | 10.6 | 5.1 |
| Amortization of facility fee costs | 1.2 | 0.5 |
| Loss (gain) on portfolio investments, net | 0.3 | (0.4) |
| Impairment of non-current assets | 20.7 | 35.8 |
| Loss on minority interest investments | 0.5 | — |
| Unrealized foreign exchange (gain) loss, net | (8.4) | 26.1 |
| Share-based compensation expense | 29.3 | 20.1 |
| Net changes in non-cash working capital | 24.9 | (105.1) |
| Net change in non-cash provisions and other assets | (21.0) | (2.1) |
| Fair value adjustment on inventory sold | 66.3 | — |
| Income taxes paid | (66.7) | (93.6) |
| Income taxes received | 4.3 | 7.8 |
| Interest (paid) received | (25.5) | 27.8 |
| Cash provided by operating activities | 328.0 | 227.0 |
| Investing activities | ||
| Investment in property, plant and equipment | (34.0) | (28.0) |
| Investment in intangible assets | (83.6) | (79.4) |
| Business acquisitions, net of cash acquired | (952.9) | (26.5) |
| Investment distribution income | — | 0.3 |
| Minority interest investments | — | (2.5) |
| Change in restricted cash | 3.1 | — |
| Proceeds from sale of non-current assets | — | 0.8 |
| Cash used in investing activities | (1,068.5) | (135.3) |
| Financing activities | ||
| Proceeds from loans and borrowings | 525.0 | — |
| Repayment of loans and borrowings | (135.0) | — |
| Payment of lease liabilities | (37.8) | (14.9) |
| Dividends paid | (27.5) | (18.4) |
| Repurchase of subordinate voting shares | (54.5) | (10.5) |
| Cash provided by (used in) financing activities | 270.2 | (44.1) |
| Effect of foreign currency exchange rate changes on cash | (1.9) | 13.8 |
| Net (decrease) increase in cash during the year | (472.2) | 61.4 |
| Cash, beginning of the year | 705.7 | 644.3 |
| Cash, end of the year | 233.5 | 705.7 |
| (in US$ millions) | Q4 2024 | Q4 2023 | $ Change | % Change | |
| Operating Income | 47.1 | (36.6) | 83.7 | (228.7) % | |
| Adjustments: | |||||
| Impairment of goodwill[1] | 12.9 | 25.7 | (12.8) | (49.8) % | |
| Share based compensation[2] | 7.6 | 4.8 | 2.8 | 58.3 % | |
| Impairment of intangible assets[3] | 5.5 | 5.8 | (0.3) | (5.2) % | |
| Transaction and integration costs[4] | 5.0 | 3.8 | 1.2 | 31.6 % | |
| Restructuring and other related costs[5] | 3.9 | 3.8 | 0.1 | 2.6 % | |
| Acquisition related contingent consideration[6] | 2.6 | (4.7) | 7.3 | (155.3) | |
| Amortization of intangible assets acquired[7] | 1.7 | — | 1.7 | n.m. | |
| Legal settlement expense (recovery) | 0.6 | (0.1) | 0.7 | (700.0) % | |
| Investment loss, net[8] | 0.1 | 0.2 | (0.1) | (50.0) % | |
| Impairment of property, plant and equipment[9] | 0.1 | 0.7 | (0.6) | (85.7) % | |
| Acquisition related deferred incentive compensation[10] | (1.1) | 1.6 | (2.7) | (168.8) % | |
| Foreign exchange (gain) loss[11] | (4.7) | 18.2 | (22.9) | (125.8) % | |
| Adjusted Operating Income | 81.3 | 23.2 | 58.1 | 250.4 % | |
| Depreciation and amortization[12] | 32.6 | 41.7 | (9.1) | (21.8) % | |
| Adjusted EBITDA | 113.9 | 64.9 | 49.0 | 75.5 % | |
| Income tax (expense) recovery | (15.5) | 3.4 | (18.9) | (555.9) % | |
| Interest (expense) income | (10.5) | 3.1 | (13.6) | (438.7) % | |
| Depreciation and amortization12 | (32.6) | (41.7) | 9.1 | (21.8) % | |
| One-time income tax expense[13] | 8.1 | 5.7 | 2.4 | 42.1 % | |
| Tax effect of normalization adjustments[14] | (6.0) | (14.9) | 8.9 | (59.7) % | |
| Adjusted Net Income | 57.4 | 20.5 | 36.9 | 180.0 % | |
| Cash provided by operating activities | 203.4 | 67.9 | 135.5 | 199.6 % | |
| Cash used in investing activities | (30.5) | (23.3) | (7.2) | 30.9 % | |
| Add: | |||||
| Cash used in (provided by) business acquisitions, asset acquisitions, portfolio investments, investment in associate and Minority interest investments, net of investment distribution income | 2.1 | (0.3) | 2.4 | (800.0) % | |
| Free Cash Flow | 175.0 | 44.3 | 130.7 | 295.0 % | |
| _________________________________ 1 Impairment of goodwill associated with the Outdoor cash generating unit (“CGU”) and Digital Games CGU. |
| 2 Related to non-cash expenses associated with the Company’s long-term incentive plan and the mark to market (gain)/loss related to DSUs. |
| 3 Impairment of intangible assets related to Digital game and app development projects. |
| 4 Transaction and integration costs incurred relating to acquisitions (including Melissa & Doug), including $0.1 million (Q4 2023 – $3.2 million) of transaction costs. |
| 5 Restructuring expense primarily relates to changes in personnel. |
| 6 Recovery associated with contingent consideration for acquisitions. |
| 7 Relates to the amortization of intangible assets acquired with Melissa & Doug. |
| 8 Investment loss (income), net includes unrealized and realized (gain)/loss on portfolio investments and minority interest investments and share of (income)/loss from an investment in associate. |
| 9 Impairment of property plant and equipment related to tooling. |
| 10 Deferred incentive compensation associated with acquisitions. |
| 11 Includes foreign exchange losses (gains) generated by the translation and settlement of monetary assets/liabilities denominated in a currency other than the functional currency of the applicable entity and losses (gains) related to the Company’s hedging programs. |
| 12 Depreciation and amortization for the calculation of Adjusted EBITDA excludes $1.7 million of amortization of intangible assets acquired with Melissa & Doug. |
| 13 Adjustment for one-time income tax expense in Q4 2024. |
| 14 Tax effect of adjustments (Footnotes 1-11). Adjustments are tax effected at the effective tax rate of the given period. |
The following table presents a reconciliation of Operating Income to Adjusted Operating Income, Adjusted EBITDA, Adjusted Net Income, and cash from operating activities to Free Cash Flow for the year ended December 31, 2024 and 2023:
| Year Ended Dec 31 | |||||
| (in US$ millions) | 2024 | 2023 | $Change | %Change | |
| Operating Income | 165.5 | 188.9 | (23.4) | (12.4) % | |
| Adjustments: | |||||
| Fair value adjustment for inventories acquired1 | 66.3 | — | 66.3 | n.m. | |
| Transaction and integration costs2 | 31.9 | 11.1 | 20.8 | 187.4 % | |
| Share based compensation3 | 29.2 | 20.1 | 9.1 | 45.3 % | |
| Impairment of goodwill4 | 12.9 | 26.7 | (13.8) | (51.7) | |
| Restructuring and other related costs5 | 10.1 | 18.1 | (8.0) | (44.2) % | |
| Impairment of intangible assets6 | 7.3 | 8.2 | (0.9) | (11.0) | |
| Amortization of intangible assets acquired7 | 7.0 | — | 7.0 | n.m. | |
| Acquisition related deferred incentive compensation8 | 2.4 | 7.6 | (5.2) | (68.4) % | |
| Investment loss (income), net9 | 0.9 | (0.2) | 1.1 | (550.0) | |
| Acquisition related contingent consideration10 | 0.9 | (6.8) | 7.7 | (113.2) % | |
| Impairment of property, plant and equipment11 | 0.5 | 0.9 | (0.4) | (44.4) | |
| Legal settlement recovery | 0.4 | (0.6) | 1.0 | (166.7) % | |
| Foreign exchange (gain) loss12 | (1.5) | 14.7 | (16.2) | (110.2) % | |
| Adjusted Operating Income | 333.8 | 288.7 | 45.1 | 15.6 % | |
| Depreciation and amortization13 | 129.8 | 130.1 | (0.3) | (0.2) % | |
| Adjusted EBITDA | 463.6 | 418.8 | 44.8 | 10.7 % | |
| Revenue related to PAW Patrol: The Mighty Movie | — | (15.6) | 15.6 | (100.0) % | |
| Adjusted EBITDA, excluding PAW Patrol: The Mighty Movie Revenue | 463.6 | 403.2 | 60.4 | 15.0 % | |
| Revenue related to PAW Patrol: The Mighty Movie | — | 15.6 | (15.6) | (100.0) % | |
| Income tax expense | (37.1) | (49.8) | 12.7 | (25.5) % | |
| Interest (expense) income | (46.5) | 12.3 | (58.8) | (478.0) % | |
| Depreciation and amortization14 | (129.8) | (130.1) | 0.3 | (0.2) % | |
| One-time income tax expense (recovery)14 | 8.1 | (0.9) | 9.0 | n.m. | |
| Tax effect of adjustments15 | (41.1) | (25.1) | (16.0) | 63.7 % | |
| Adjusted Net Income | 217.2 | 225.2 | (8.0) | (3.6) % | |
| Cash provided by operating activities | 328.0 | 227.0 | 101.0 | 44.5 % | |
| Cash used in investing activities | (1,068.5) | (135.3) | (933.2) | 689.7 % | |
| Add: | |||||
| Cash (used in) provided by business acquisitions, asset acquisitions, investment in limited partnership, investment in associate and Minority interest investments, net of investment distribution income |
956.0 | 31.2 | 924.8 | 2,964.1 % | |
| Free Cash Flow | 215.5 | 122.9 | 92.6 | 75.3 % | |
| _______________________________________ 1 Relates to fair value adjustment to Melissa & Doug inventory recorded as part of the acquisition on January 2, 2024. |
| 2 Transaction and integration costs incurred relating to acquisitions (including Melissa & Doug), including $9.1 million (2023 – $10.1 million) of transaction costs. |
| 3 Related to non-cash expenses associated with the Company’s long-term incentive plan and the mark to market (gain)/loss related to DSUs. |
| 4 Impairment of goodwill associated with the Outdoor CGU and Digital Games CGU. |
| 5 Restructuring expense primarily relates to changes in personnel. |
| 6 Impairment of intangible assets related to Digital game and app development projects and Entertainment content development projects. |
| 7 Relates to the amortization of intangible assets acquired with Melissa & Doug. |
| 8 Related to non-cash expenses associated with the Company’s share option expense and long-term incentive plan. |
| 9 Investment loss (income), net includes unrealized and realized (gain)/loss on portfolio investments and minority interest investments and share of (income)/loss from an investment in associate. |
| 10 Expense associated with contingent consideration for acquisitions. |
| 11 Impairment of property, plant and equipment related to tooling. |
| 12 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 losses (gains) related to the Company’s hedging programs. |
| 13 Depreciation and amortization for the calculation of Adjusted EBITDA excludes $7.0 million of amortization of intangible assets acquired with Melissa & Doug. |
| 14 Adjustment for one-time income tax expense in 2024. |
| 15 Tax effect of adjustments (Footnotes 1-12). Adjustments are tax effected at the effective tax rate of the given period. |
Segment Results
The Company’s results from operations by reportable segment for the three months ended December 31, 2024 and 2023 are as follows:
| (US$ millions) | Q4 2024 | Q4 2023 | ||||||||
| Toys | Entertainment | Digital Games | Corporate & Other1 | Total | Toys | Entertainment | Digital Games | Corporate & Other1 | Total | |
| Revenue | 561.7 | 41.3 | 46.1 | — | 649.1 | 406.8 | 55.2 | 40.6 | — | 502.6 |
| Operating Income (Loss) | 31.7 | 19.7 | (0.5) | (3.8) | 47.1 | (30.0) | 9.7 | 9.7 | (26.0) | (36.6) |
| Adjusting items: | ||||||||||
| Impairment of goodwill | 10.0 | — | 2.9 | — | 12.9 | 25.7 | — | — | — | 25.7 |
| Share based compensation | 5.1 | 0.5 | 0.6 | 1.4 | 7.6 | 3.2 | 0.3 | 0.7 | 0.6 | 4.8 |
| Impairment of intangible assets | — | — | 5.5 | — | 5.5 | 5.4 | 0.4 | — | — | 5.8 |
| Transaction and integration costs2 | 2.6 | — | — | 2.4 | 5.0 | — | — | — | 3.8 | 3.8 |
| Restructuring and other related costs | 1.7 | 0.1 | 2.1 | — | 3.9 | 3.3 | 0.1 | 0.4 | — | 3.8 |
| Acquisition related contingent consideration | 0.4 | — | 2.2 | — | 2.6 | (3.5) | — | (1.0) | (0.2) | (4.7) |
| Amortization of intangible assets acquired | 1.7 | — | — | — | 1.7 | — | — | — | — | — |
| Legal settlement expense (recovery) | — | — | — | 0.6 | 0.6 | — | — | — | (0.1) | (0.1) |
| Investment loss, net | — | — | — | 0.1 | 0.1 | — | — | — | 0.2 | 0.2 |
| Impairment of property, plant and equipment | 0.1 | — | — | — | 0.1 | 0.7 | — | — | — | 0.7 |
| Acquisition related deferred incentive compensation | 0.2 | — | (1.3) | — | (1.1) | 0.6 | — | 1.0 | — | 1.6 |
| Foreign exchange (gain) loss | — | — | — | (4.7) | (4.7) | — | — | — | 18.2 | 18.2 |
| Adjusted Operating Income (Loss) | 53.5 | 20.3 | 11.5 | (4.0) | 81.3 | 5.4 | 10.5 | 10.8 | (3.5) | 23.2 |
| Adjusted Operating Margin | 9.5 % | 49.2 % | 24.9 % | n.m. | 12.5 % | 1.3 % | 19.0 % | 26.6 % | n.m. | 4.6 % |
| Depreciation and amortization3 | 22.7 | 6.0 | 3.9 | — | 32.6 | 13.9 | 25.6 | 2.2 | — | 41.7 |
| Adjusted EBITDA | 76.2 | 26.3 | 15.4 | (4.0) | 113.9 | 19.3 | 36.1 | 13.0 | (3.5) | 64.9 |
| Adjusted EBITDA Margin | 13.6 % | 63.7 % | 33.4 % | n.m. | 17.5 % | 4.7 % | 65.4 % | 32.0 % | n.m. | 12.9 % |
| 1 Corporate & Other includes certain corporate costs, foreign exchange and merger and acquisition-related costs, as well as fair value gains and losses. | ||||||||||
| 2 Transaction and integration costs incurred relating to acquisitions, including $0.1 million (Q4 2023 – $3.2 million) of transaction cost for the acquisition of Melissa and Doug. | ||||||||||
| 3 Depreciation and amortization for the calculation of Adjusted EBITDA excludes $1.7 million (Q4 2023 – $nil) of amortization of intangible assets acquired with Melissa & Doug. | ||||||||||
The following table presents a reconciliation of Melissa & Doug Operating Income to Adjusted EBITDA for the three months and year ended December 31, 2024:
| (US$ millions) | Q4 2024 | YTD Q4 2024 |
| Melissa & Doug Toy Gross Product Sales | 152.6 | 433.3 |
| Melissa & Doug Sales Allowance | (16.6) | (58.6) |
| Melissa & Doug Revenue | 136.0 | 374.7 |
| Melissa & Doug Operating Income | 33.6 | 35.4 |
| Depreciation and amortization | 6.7 | 25.9 |
| Melissa & Doug EBITDA | 40.3 | 61.3 |
| Adjustments1 | 0.6 | 12.8 |
| Melissa & Doug Adjusted EBITDA | 40.9 | 74.1 |
| Melissa & Doug Adjusted EBITDA Margin | 30.1 % | 19.8 % |
| 1 Includes foreign exchange (gain) loss, restructuring and other related costs, and transaction and integration costs. | ||
The following table presents a reconciliation of Revenue to Revenue, excluding Melissa & Doug, Toy Gross Product Sales to Toy Gross Product Sales, excluding Melissa & Doug, Consolidated Adjusted EBITDA to Adjusted EBITDA, excluding Melissa & Doug, Toy Revenue to Toy Revenue, excluding Melissa & Doug, and Toys Adjusted EBITDA to Toys Adjusted EBITDA, excluding Melissa & Doug for the three months and year ended December 31, 2024:
| (US$ millions) | Q4 2024 | Q4 2023 | $ Change | % Change |
| Revenue | 649.1 | 502.6 | 146.5 | 29.1 % |
| Melissa & Doug Revenue | 136.0 | — | 136.0 | n.m. |
| Revenue, excluding Melissa & Doug | 513.1 | 502.6 | 10.5 | 2.1 % |
| Toy Gross Product Sales | 660.0 | 502.3 | 157.7 | 31.4 % |
| Melissa & Doug Toy Gross Product Sales | 152.6 | — | 152.6 | n.m. |
| Toy Gross Product Sales, excluding Melissa & Doug | 507.4 | 502.3 | 5.1 | 1.0 % |
| Adjusted EBITDA | 113.9 | 64.9 | 49.0 | 75.5 % |
| Melissa & Doug Adjusted EBITDA | 40.9 | — | 40.9 | n.m. |
| Adjusted EBITDA, excluding Melissa & Doug | 73.0 | 64.9 | 8.1 | 12.5 % |
| Adjusted EBITDA Margin, excluding Melissa & Doug | 14.2 % | 12.9 % | ||
| Toy Revenue | 561.7 | 406.8 | 154.9 | 38.1 % |
| Melissa & Doug Revenue | 136.0 | — | 136.0 | n.m. |
| Toy Revenue, excluding Melissa & Doug | 425.7 | 406.8 | 18.9 | 4.6 % |
| Toys Adjusted EBITDA | 76.2 | 19.3 | 56.9 | 294.8 % |
| Toys Adjusted EBITDA Margin | 13.6 % | 4.7 % | ||
| Toys Adjusted EBITDA, excluding Melissa & Doug | 35.3 | 19.3 | 16.0 | 82.9 % |
| Toys Adjusted EBITDA Margin, excluding Melissa & Doug | 8.3 % | 4.7 % |
| Year Ended Dec 31, | ||||
| (US$ millions) | 2024 | 2023 | $ Change | % Change |
| Revenue | 2,263.0 | 1,904.9 | 358.1 | 18.8 % |
| Melissa & Doug Revenue | 374.7 | — | 374.7 | n.m. |
| Revenue, excluding Melissa & Doug | 1,888.3 | 1,904.9 | (16.6) | (0.9) % |
| Toy Gross Product Sales | 2,231.5 | 1,787.2 | 444.3 | 24.9 % |
| Melissa & Doug Toy Gross Product Sales | 433.3 | — | 433.3 | n.m. |
| Toy Gross Product Sales, excluding Melissa & Doug | 1,798.2 | 1,787.2 | 11.0 | 0.6 % |
| Adjusted EBITDA | 463.6 | 418.8 | 44.8 | 10.7 % |
| Melissa & Doug Adjusted EBITDA | 74.1 | — | 74.1 | n.m. |
| Adjusted EBITDA, excluding Melissa & Doug | 389.5 | 418.8 | (29.3) | (7.0) % |
| Adjusted EBITDA Margin, excluding Melissa & Doug | 20.6 % | 22.0 % | ||
| Toy Revenue | 1,939.9 | 1,540.9 | 399.0 | 25.9 % |
| Melissa & Doug Revenue | 374.7 | — | 374.7 | n.m. |
| Toy Revenue, excluding Melissa & Doug | 1,565.2 | 1,540.9 | 24.3 | 1.6 % |
| Toys Adjusted EBITDA | 306.8 | 212.4 | 94.4 | 44.4 % |
| Toys Adjusted EBITDA Margin | 15.8 % | 13.8 % | ||
| Toys Adjusted EBITDA, excluding Melissa & Doug | 232.7 | 212.4 | 20.3 | 9.6 % |
| Toys Adjusted EBITDA Margin, excluding Melissa & Doug | 14.9 % | 13.8 % | ||
ADDENDUM
Effective January 1, 2024, Spin Master has changed its product categories to align with the Company’s product offerings going forward. The following table restates 2023 Toy Gross Product Sales1 in the same format that the Company presents Toy Gross Product Sales1 in 2024:
| (US$ millions) | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Total |
| Preschool, Infant & Toddler and Plush | $ 82.6 | $ 164.9 | $ 301.4 | $ 169.3 | $ 718.2 |
| Activities, Games & Puzzles and Dolls & Interactive | $ 62.6 | $ 109.7 | $ 218.7 | $ 196.0 | $ 587.0 |
| Wheels & Action | $ 43.7 | $ 101.1 | $ 151.2 | $ 113.3 | $ 409.3 |
| Outdoor | $ 27.4 | $ 14.3 | $ 7.3 | $ 23.7 | $ 72.7 |
| Toy Gross Product Sales1 | $ 216.3 | $ 390.0 | $ 678.6 | $ 502.3 | $ 1,787.2 |
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