Spin Master reports earnings drop as it feels impact of U.S. toy store closures

TORONTO – Spin Master Corp. says recent earnings have been hit by the impact of the Toys R Us liquidation in the U.S. and it expects the retail disruption to continue into the first half of this year.

The Toronto-based toy and entertainment company says net income for the fourth quarter was US$11.4 million or 11 diluted cents per share, down from US$20 million or 20 cents for the same quarter a year earlier.

Adjusted net income for the quarter ending Dec. 31 came in at US$6.1 million, or six cents per share, compared with US$25.5 million or 25 cents per share a year earlier.

Analysts had expected net income of US$14.9 million or 18 cents per share, according to Thomson Reuters Eikon.

Revenue for the quarter came in at US$414.3 million, down from US$440.9 million for the same quarter a year earlier.

The company says the absence of Toys R Us in the U.S. market, and a later Easter, will particularly impact the first quarter this year.

It says it expects to see growth this year to come in part from proven licences, including Monster Jam and How to Train your Dragon, fresh content for Paw Patrol, and the roll-out of its new show Abby Hatcher.

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