Mega’s fourth quarter 2012 consolidated net sales increased 18% to $127.5m compared to $108.5m in the corresponding 2011 period. Sales were up 21% in Toys product lines and 1% in Stationery & Activities. On a geographic segment basis, North American sales rose 22%, and International sales were up 7%.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) increased 33% to $13.9m, compared to $10.4m in the fourth quarter of 2011. EBITDA is a supplementary financial measure. Net earnings were $4.0m or $0.24 per basic share ($0.01 per diluted share), compared to $0.2m or $0.01 per basic share (loss of $0.21 per diluted share) in the same 2011 period.
Full year 2012
For 2012, consolidated net sales increased 12% to $420.3 million compared to $376.8 million in 2011. Sales increased 12% in Toys product lines and 9% for Stationery & Activities. On a geographic segment basis, sales were up 20% in North America and down 4% in international markets. EBITDA increased 25% to $49.2m compared to $39.2m in 2011. Net earnings were $16.6m or $1.01 per basic share ($0.84 per diluted share), compared to $8.3m or $0.51 per basic share ($0.46 per diluted share) in 2011.
Marc Bertrand, president and CEO of Mega Brands, said that the company had “achieved a solid fourth quarter in 2012, with higher sales, gross margin, profitability and cash flow compared to the same period in 2011.” Mr Bertrand added that the companies brands and financial position “continue to strengthen”, and that Mega Brands will “continue to invest in product development and to increase efficiency and manufacturing capacity at our Montreal facility.”
He continued: “Looking ahead, we expect continued sales growth based on our momentum in the marketplace and positive feedback on our product lines at recent toy fairs in Asia, Europe and North America.”
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