Spin Master Corp T.TOY

Alternate Symbol(s): SNMSF

Consumer Cyclical Leisure

Spin Master Corp. is a Canada-based children’s entertainment company. It is engaged in creating play experiences through its three creative centers: Toys, Entertainment and Digital Games. It has a distribution in over 100 countries. Its brands include PAW Patrol, Bakugan, Kinetic Sand, Air Hogs, Melissa & Doug, Hatchimals, Rubik's Cube and GUND. Its products include preschool, infant & toddler and plush; activities, games & puzzles and dolls & interactive; wheels & action, and outdoor. It creates and produces 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. It has a presence in digital games, anchored by the Toca Boca and Sago Mini brands, offering open-ended and creative games and educational play in digital environments. Through Spin Master Ventures, it makes minority investments globally in emerging companies and start-ups.

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Spin Master Corp

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Post by retiredcfon Jul 28, 2022 8:58am

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Post# 34856445

RBC

Their upside scenario target is $77.00. GLTA

July 27, 2022

Spin Master Corp.
Q2 results well ahead of forecasts + a dividend

TSX: TOY | CAD 48.46 | Outperform | Price Target CAD 65.00

Sentiment: Positive

First impression: Spin Master reported Q2 results well ahead of RBC and consensus forecasts, and the company reiterated its Gross Product Sales ("GPS"), revenue, and Adjusted EBITDA guidance (noting GPS and revenue guidance are now in constant currency). Q2 Adjusted EBITDA was $113.7MM, well ahead of consensus of $92.1MM. Relative to our forecasts, higher-than-expected GPS, revenue, and Gross Margin %, as well as lower-than-expected SG&A as a % of sales drove Adjusted EBITDA well ahead of RBC and consensus estimates. The top-line outperformance was primarily driven by Toy revenue, while Entertainment was also ahead of our expectations. Digital Games revenue came in below our forecasts (we expect Digital Games to be a focus on the 9:30am ET call tomorrow). We view the "constant-currency" qualifier as precautionary commentary (as opposed to a change in guidance).

Dividend initiated: Spin Master initiated its first-ever quarterly dividend of C$0.06 per share (annualized yield of ~0.5% based on today's closing price) beginning in Q3.

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