Mega Brands Inc MBLKF

RE: Q3 Nice

[savinfamily]

globe and mail:
“Stationery and activities strength is a welcome surprise as it has been dragging on results for several years, but now appears to be in solid recovery mode,” said Neil Linsdell of Versant Partners.
Net income fell slightly to $17.1-million compared to $17.2-million a year earlier.
Earnings were equal to 51 cents per diluted share, up from 36 cents a year earlier.
But excluding the impact of options and warrants issued during its recapitalization, earnings per share was $1.04, above the average analyst estimate of 80 cents per share.
Mega Brands said its gross margins fell compared to the prior year because of the stronger Canadian dollar which increased the costs of toys manufactured in Montreal, and higher resin costs.
Cost of sales were up to $81-million from $74.7-million.
Mega Brands said retail sales of its products was strong in the quarter but retailers' caution in bringing in inventories delayed some orders until the final quarter of the year.
“It's just more of a just-in-time and I think that's what is really happening out there in retail and not just in the toy industry, but in general,” Bertrand told analysts.
Gerrick Johnson of BMO Capital Markets said the results were in line with his forecasts and further signalled that it is putting its past problems behind it.
“I think the turnaround story is definitely on track...and I think the fourth quarter is going to be good for these guys,” he said from New York.