spin master corp. first quarter 2017 conference call may 12, 2017 · 2017-12-22 · may 12, 2017...

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FINALTRANSCRIPT

SpinMasterCorp.

FirstQuarter2017ConferenceCall

EventDate/Time:May12,2017—9:30a.m.E.T.

Length:59minutes

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FINAL TRANSCRIPT

May 12, 2017 — 9:30 a.m. E.T. Spin Master Corp. First Quarter 2017 Conference Call

CORPORATEPARTICIPANTSMarkSegalSpinMasterCorp.—ExecutiveVicePresidentandChiefFinancialOfficerRonnenHararySpinMasterCorp.—Co-ChiefExecutiveOfficerBenGadboisSpinMasterCorp.—GlobalPresidentandChiefOperatingOfficerCONFERENCECALLPARTICIPANTSSabahatKhanRBCCapitalMarkets—AnalystKenricTygheRaymondJames—AnalystDerekDleyCanaccordGenuity—AnalystDavidMcFadgenCormarkSecurities—AnalystBrianMorrisonTDSecurities—Analyst

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PRESENTATION

Operator

Good morning, afternoon, evening. My name is Simon, and I will be your conference

Operator today.At this time, Iwould like towelcomeeveryone to the SpinMaster FirstQuarter

2017EarningsConferenceCall.

All lineshavebeenplacedonmutetopreventanybackgroundnoise.Afterthespeakers’

remarks,therewillbeaquestion-and-answersession.Ifyouwouldliketoaskaquestionduringthis

timesimplypress*, thenthenumber1onyourtelephonekeypad. Ifyouwould liketowithdraw

yourquestion,pleasepressthe#key.Thankyou.

Mr.Segal,youmaybeginyourconference.

MarkSegal—ExecutiveVicePresidentandChiefFinancialOfficer,SpinMasterCorp.

Thank you,Operator. Goodmorning, everyone, andwelcome to SpinMaster’s financial

resultsconferencecallforthefirstquarterendedMarch31,2017.

Myname isMark Segal, and I amSpinMaster’s Chief FinancialOfficer. I am joined this

morningbyRonnenHarary,Co-ChiefExecutiveOfficer,andBenGadbois,GlobalPresidentandChief

OperatingOfficer.

Following our formal remarks, we will open up the lines for your questions. For your

convenience, the press release containing our first quarter financial results is available on the

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InvestorRelationssectionoftheCompany’swebsiteatwww.spinmaster.com,asareourQ1MD&A

andfinancialstatements.ThisinformationisalsoavailableonSEDAR.

Beforewe start, pleasenote that remarks on this conference callmay contain forward-

lookingstatementsaboutSpinMaster’scurrentandfutureplans,expectations, intentions,results,

levelsofactivity,performance,goalsorachievements,oranyotherfutureeventsordevelopments.

Forward-lookingstatementsarebasedon informationcurrentlyavailabletomanagement,andon

estimatesandassumptionsmadebasedonfactorsthatmanagementbelievesareappropriateand

reasonable in the circumstances. However, there can be no assurance that such estimates and

assumptionswillprovetobecorrect.

Many factors could cause actual results to differ materially from those expressed or

implied by the forward-looking statements. As a result, Spin Master cannot guarantee that any

forward-lookingstatementswillmaterialize,andyouarecautionednottoplaceunduerelianceon

theseforward-lookingstatements.

Exceptasmayberequiredbylaw,SpinMasterhasnoobligationtoupdateorreviseany

forward-lookingstatementwhetherasaresultofnewinformation,futureevents,orotherwise.

Foradditional informationontheseassumptionsandrisks,pleaseconsultthecautionary

statement regarding forward-looking information contained in the Company’s earnings release

datedMay11,2017.

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PleasenotethatSpinMasterreportsinUSdollars,andalldollaramountstobeexpressed

todayareinUScurrency.

IwouldnowliketoturntheconferenceovertoRonnenHarary.

RonnenHarary—Co-ChiefExecutiveOfficer,SpinMasterCorp.

Thankyou,Mark,andgoodmorning.AndthanksforyourinterestinSpinMaster.

Yesterday,wereportedourfinancialresultsforthefirstquarterendedMarch31,2017.I’ll

begin the call with some brief highlights of the quarter beforeMark provides you with a more

detailedreviewofourfinancialresults,includingouroutlookforthebalanceoftheyear.Thenwe’ll

thentakeafewminutestodiscussouroperationalresults.

Overall,wewerepleasedwithourperformanceinthefirstquarter.Salesgrowthexceeded

ourexpectationswiththeadditionofseveralnewproducts,suchasHatchimalsandSwimwaysmore

thanoffsettingexpecteddeclinesinothers.

Weweresolidlyprofitabledespiteinvestmentswearemakingtosupportfuturegrowth.

Our products are selling very well at retail, and we believe we are well positioned to

achieveourgrowthtargetsfor2017.Inaddition,wecontinuetobuildafoundationthatwillsupport

growthin2018andbeyond.

ThecontinuedsuccessofPAWPatrolhighlightsourentertainmentstrategy.BoththeTV

showandthetoyline,whichweredevelopedinparallel,areperformingverywellglobally,andhave

establishedSpinMasterasamajorplayerinthepreschoolsegment.

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PAW Patrol’s ratings for Season 4 are significantly higher than Season 3. Recently, an

extended episode of PAW Patrol titled Mission PAW was televised, and garnered the highest

episodic ratingever for the series.Wearealso inproductionwith first thePAWPatrol special, a

one-hourTVspecial,whichwillaironNickelodeonin2018.

WearefindingthattheaverageageofrecipientsofPAWPatroltoysisskewingolder,as

boysandgirlsarestayingwiththefranchiselonger.Thisisprovidingalargermarketshareforthe

productlineandisdrivingincreasedlicensingandmerchandisingrevenue.

Aswe’veindicatedinthepast,werecognizedearlyonthatPAWPatrolhadthepotential

to become an evergreen global TV franchise.We areworking hard to execute on that objective,

maximizingitsgrowthgloballywhilemanagingouroverallproductportfolioconservatively.

We saw a very positive response in Q1 2017 to our latest TV show Rusty Rivets. We

launchedSeason1inNorthAmericaonNickelodeoninQ42016,andtheratingstodatehavebeen

strong particularly among boys 2 to 5. And we are now developing Season 2 together with

Nickelodeon,whichwillairNovember2017.

Similarly to our strategy with PAW Patrol, we’ll be launching with the toys in North

America later this year and in Europe in 2018. The toy represents the first-ever preschool

constructionentertainment-basedtoyline.WealsohaveanumberofotherexcitingTVproperties

underdevelopmentfor2018andbeyond,includingtherelaunchofBakugan.

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TherecentlaunchofHatchimalsColleggtiblesisatestamenttoourinnovativecapabilities.

Colleggtibleswill help extend and build the Hatchimals franchise at different price points, and it

capitalizesonthecurrentcollectibletrend.

ThequarterwasalsohighlightedbySpinMasterenteringintoover25Hatchimalslicensed

agreementsaroundtheworldforawiderangeofproducts,apparel,andaccessories.Thisincludeda

publishing program by Penguin Random House comprising fiction titles, activity formats, and a

collectorguide.

The licensing and merchandising program is very helpful in building Hatchimals into a

recognizable global brand, and the incomewe generate from it is highly accretive to both gross

marginandadjustedEBITDAmargin.

RegardingTocaBocaandSagoMini,weareverypleasedwiththeperformanceoftheapp

business.It’sgrowingnicely.

WetooktheopportunityduringthequartertofocusTocaBocaonitscorestrength,which

is its development of apps. To that end, we shut down Toca TV, whichwas unable as an SVOD

subscription service to effectively compete against YouTube Kids.We are focused on Toca’s app

businessandextendingthebrandintootherdigitalgameopportunities.

Toca’sappdevelopmentteaminStockholm,Sweden,andTorontoisalong-termassetto

SpinMaster,andIamexcitedaboutthepotentialwewillbeabletounlockovertime.

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Weintendedtoinvestandleverage—weintendtoinvestandleveragecapabilitiesofthis

team forboth theTocaBocaandSagoMiniappbusinesses, theextensionof thatdigital content

intophysical toys,andthedevelopmentof licensingandmerchandisingprogramssuchasapparel

andotherprograms.

Overall, we’re very pleased with the performance in the first quarter. With our base

businessperformingwellandagreatpipelineofnewtoysandentertainmentproperties,we’reset

upforanothergoodyearin2017.

I will now hand over toMark Segal, our Chief Financial Officer, to review our financial

resultsinmoredetail.

Mark?

MarkSegal

Thanks,Ronnen.InQ12017,ourrevenuesincreased40.8percentfromlastyear,growing

from 161.7 million to 227.7 million. Revenue growth was driven by the success of Hatchimals

continuinginto2017andrevenuefromSwimways.

In constant currency terms, revenue increased by 42.6 percent compared to 2016.

ExcludingSwimways,revenueincreased19.8percent.

Q12017grossproductsalesincreased31.8percentto229.1millionfrom173.8millionlast

year.ExcludinggrossproductsalesfromSwimways,grossproductsalesincreased11.2percent.

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Onageographicbasis,SpinMaster’sglobalplatformdrovegrossproductsalesincreasesof

32.9percentinNorthAmerica,39.2percentinEurope,and13.6percentintherestoftheworld.

Iwantedtogiveyoualittlemorecolouronthetimingandseasonalityofoursales.Easter

fell in the second week of April this year compared to lateMarch 2016. This had the effect of

shiftingameaningfulamountofpre-Eastersales intoQ2,particularly inEuropewheremostsales

areshippeddomestically.Thisaffectedbothgrossproductsalesandgrossmarginsandinventory.

Aswementionedinour lastearningscall, theSwimwaysbusiness iscounterseasonalto

thatofSpinMaster,witharound70to80percent typicallysold in the firsthalfofeachyear.For

Swimways, Q3 andQ4 saleswere, as expected, seasonally lowwith the second half of the year

representingonlyabout20percentoftotalsales.

Q1 is typically Swimways largestquarter, representing the initial shipmentofproduct in

advance of the summer outdoor season. For SpinMaster, on the other hand,Q1 is typically the

smallestquarterseasonally,typicallyrepresentingonlyabout10to12percentoftotalsales.

Asaresult,theinclusionofSwimwaysinQ12017hadadisproportionaleffectonresults,

especiallywhencomparingyear-on-yearresults.

Otherrevenue,whichprimarilyreflectsmerchandising,royalty,andtelevisiondistribution

income from productsmarketed by third parties using SpinMaster’s intellectual property,more

thantripledfrom6millioninQ12016to20.5millionthisquarter.Muchofthisincreasewasdriven

bylicensingandmerchandisingandapprevenue.

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Our gross profit for Q1 2017 increased to 113.3 million, representing 49.8 percent of

revenue comparedwith 85.4million, or 52.8 percent of revenue last year. Thedecline in overall

grossmarginwasprimarilyduetotheimpactonourproductmixresultingfromtheacquisitionsof

Swimways and Cardinal and the Easter shift, the amortization of fair market value inventory

adjustmentsrelatedtoSwimways,aswellasforeignexchange,mostnotablytheweakeningofthe

euroandpoundagainsttheUSdollar,partiallyoffsetbyincreasedlicensingandmerchandisingand

apprevenue.

Swimways, likeCardinal, isa lowergrossmarginbusinesscompared toSpinMaster,but

alsohastheoffsetoflowersalesallowancesandlowerselling,royalty,andmarketingcosts.InQ1

2017,thedilutiveeffectSwimwaysongrossmarginswas350basispoints.

Thisdilutionwasmorepronouncedthanisthecasegoingforward,sinceinQ1Swimways

recordedachargetocostofsalesof$2.3million,representingtheamortizationofthefairmarket

valueadjustmenttoinventoryunderacquisitionpurchasepriceaccountingprinciples.

Thisinventorywasmarkeduptofairvalueatthetimeoftheacquisitionandwassoldin

Q1,therebyreducingSwimways’andSpinMaster’soverallgrossmargin.Theadjustmentwasadded

backinthecalculationofadjustedEBITDAandadjustednetincome.

ThefairmarketvalueadjustmentonSwimways’inventoryhasnowbeenfullyrecognized.

ExcludingSwimways,grossmarginforthequarterwas53.3percentofrevenuecompared

to52.8percentlastyear,whichindicatestheunderlyinghealthofourbusiness.

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Total SG&Aexpenses forQ12017, excluding share-based compensationexpenses,were

97.4 million, up 40.5 percent from 67.4 million last year. The increase was driven by increased

peoplecosts,increasedwarehousingandsellingexpenses,andtheinclusionofbothSwimwaysand

TocaBocaexpensesnotincludedinQ12016.

SG&A, excluding share-based compensation expenses, represented 41.6 percent of

revenuecomparedto41.7percent lastyear,highlightingourabilitytomanageSpinMaster’scost

structureinlinewithgrowth.

Q1SG&Aalso includes justover$1millionofexpensesrelatedtotheshutdownofToca

TV,ofwhich$385,000isnoncash.

WithinSG&A,marketingexpensesrepresented5.2percentofrevenuecomparedwith8.7

percentlastyear,primarilybecauseweshiftedsomeofourTVmediaintoQ2duetoEasterfallingin

Q2,butalsorelatedtotheinsourcingofcertainagencyactivitieswhichwepreviouslyoutsourced.

Productdevelopmentexpenseswere2.8percentofrevenuecomparedwith2.2percentin

Q1 ’16, primarily due to the timing of our development needs within the 36-month brand

innovationpipeline.

Q1includesspendingontheinitialphasesofBakuganproductdevelopmentinadvanceof

theupcomingrelaunchandongoinginvestmentsinnewproductinitiatives.

Sellingexpensesrepresented6.5percentofrevenuecomparedto6.4percentlastyear.

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Distributionexpenseswere4.6percentofrevenuecomparedwith3.3percentinQ1’16.

Theincreasewasprimarilydrivenbyapproximately$1.5millioninwarehouseexpensesrelatedto

investmentsandonetimecostsinoursupplychaintosupportfuturegrowth.

These investments included setting up additional warehouse space to support strong

growth in the UK and the rest of Europe. Europe requiresmorewarehouse capacity thanNorth

America,asitismainlyadomesticshippingmarket.

In addition, we invested in supply chain initiatives in the US to relocate and upgrade

Cardinal’sdistributioncapabilities.Benwilldiscussthisfurtherlater.

Admin expenses represented 23.7 percent of revenue versus 25.2 percent last year.

Excluding the impactof share-based compensationexpenses, adminexpensesasapercentageof

revenuewereslightlyhigherinthequarterat22.5percentcomparedwith21percentinQ1’16.

The increaseprimary reflectsan increase inpeople-relatedcostsaswehave invested in

our front-end to support future growth in the five countries we opened up this year in Europe,

Australia,andinexistingmarketsinEurope,aswellastheinclusionofadminexpensesofSwimways

andTocaBoca.

Allof thisresulted innet incomeof$10.1million,or$0.10pershare,whichwasslightly

higherthannetincomeforQ1’16of9.9million,or$0.10pershare.AdjustednetincomeinQ1’17

was13.6million,or$0.13pershare,slightlyhigherthan2016’s levelof11.6million,or$0.12per

share.

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AdjustedEBITDAforQ12017increased28.6percentto30.8millionfrom$24millionlast

year. Adjusted EBITDAmargins decreased to 13.5 percent comparedwith 14.8 percent last year.

ThedecreaseinadjustedEBITDAmarginresultedfromlowergrossmarginsduetoSwimwaysand

thesupplychaininvestmentspending,bothofwhichfactorsIdiscussedearlier.

Lookingatourbusiness segments forQ1,grossproduct sales in theActivities,Games&

PuzzlesandFunFurnituresegmentdecreased3.5percentto$48million,primarilyduetoadecline

inKineticSand.However,Bunchemscontinuestogrow,andnewbrandsRubeGoldbergandKinetic

Rockpartiallyoffsetthedecline.

IntheRemoteControlandInteractiveCharacterssegment,grossproductsalesincreased

115.4percent to46.5million,drivenby theongoing successofHatchimals and lower-pricepoint

Zoomeritems.

Gross product sales in the Boys Action and High-Tech Construction segment decreased

42.8percent to13.2million, due toexpecteddeclines in revenue related to theAngryBirds and

Secret LifeofPetsmovies, partiallyoffsetby the initial salesofPiratesof theCaribbean licensed

productandtherelaunchofTechDeck.

YouwillrecallthatinQ12016resultsIcalledoutthefactthatitwasunusualtohavetwo

summermovieslaunchingasearlyasAngryBirdsandtheSecretLifeofPetsmoviesdid.

InthePre-SchoolandGirlssegment,grossproductsalesmaintainedgrowth,increasing6.6

percentto84.7million.ThisreflectsthecontinuedgrowthofPAWPatrol-relatedproducts.

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Ifyourecall,Q1’16wasaverybigquarterforPAWPatrol,aswelaunchedthetoysinmost

marketsinternationallyinthatquarter.ToseecontinuedgrowthinPAWPatrolwithoutthebenefits

oftwoweeksofEastershippingthisyearisveryencouraging.

In theOutdoor segmentwe generated $36.7million in gross product sales inQ1 2017,

whichwasmostlytheseasonalrampupoftheSwimways,Kelsyus,andCoopproducts.

Freecashflowwas$5millioninQ12017comparedto16.4millionlastyear.Thedecrease

is primarily attributable to increased investments in content development for our TV shows and

apps.Theamountofourspendhasincreasedyearoveryearasweareworkingontwoseasonsof

PAWPatrolcurrently,twoseasonsofRustyRivets,andseveralnewshowslaunchingin’18and’19.

NetworkingcapitalforQ1’17asapercentageofrevenueincreased4.3percentfrom5.2

percentofLTMsales in ‘16to9.5percentofLTMsales in ’17.Theincrease innetworkingcapital

wasprimarilyduetofourfactors:anincreaseof$13millioninreceivablesforeligibletaxcreditson

our increased investment—sorry,onour increasedentertainmentproduction spendingwhichwill

bereceivedduring2017; increasedreceivablesforthehigher licensingandmerchandising income

thatwegenerated;the$4.7millionwepaidfortheacquisitionofMarbles’debtwhichistreatedas

a receivable for accounting purposes, which I will discuss shortly; and finally, inventory which

increased by $29.9million over Q1 2016, primarily due to the inclusion of about $13million of

Swimways’ inventorythisyear,aswellasthebuildupofinventoryattheendofthequartertobe

shippedforEasterinearlyApril.

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ExcludingtheMarblesreceivableandeligibletaxcreditreceivablesreferredtoabove,net

workingcapitalattheendofthequarterwas8percentofsales.TheincreaserelativetoQ1lastyear

isexplainedprimarilybytheincreaseininventoryIjustdiscussed.

As ImentionedonApril28th,wefinalizedtheacquisitionofcertainassetsofMarbles,a

leaderinbrain-buildingandhigh-qualitygames,throughacourt-approvedbankruptcysaleprocess.

Weacquiredtheseassetsconsistingofproprietaryandlicensedgames,certain inventory,andthe

Marblesnameandwebsiteforapproximately$6million,ofwhich$4.7millionwaspaidinMarch.

Althoughthetransactionclosedafterthequarterend,duetothecourtprocesswefunded

partofthepurchaseduringQ1.Asaresult,thetransactionisreflectedinourbooksinQ1.

Marbles will form part of our Activities, Games & Puzzles business segment, and is

expected to generate approximately $5million in gross product sales in 2017 and approximately

$10millioningrossproductsalesin2018,withprofitabilityinlinewithSpinMaster’s.

Turningnowtoouroutlookfor2017.Weareholdingourguidanceinlinewiththeoutlook

weprovidedinMarch.

Despite thestrongvolumegrowthwesaw inQ1,Q1 is seasonably thesmallestquarter,

andwewanttoremaincautiousuntilweseeQ2results.InAugust,wewillprovideanupdatetoour

outlook.

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As a reminder for 2017, excluding Swimways, we expect organic gross product sales

growth tobeat theupperendof theCompany’smid tohigh-singledigit long-termorganicgross

productsalesgrowthtargetrange.

Including Swimways, Spin Master expects gross product sales growth in the low teens

comparedto2016.Fromaseasonalityperspective,excludingSwimways,SpinMasterexpectsgross

product sales in the first half of 2017 to be in line with the Company’s historic seasonality of

approximately30percentinthefirsthalfoftheyearand70percentinthesecondhalf.

IncludingSwimways,grossproductsalesareexpectedtobeinthe31to33percentrange

inthefirsthalfof’17duetotheseasonalityofSwimwaysgrossproductsalesprofile.

AdjustedEBITDAmarginsfor2017,excludingSwimwaysandTocaBoca,areexpectedtobe

slightly higher than 2016. Including Swimways and Toca Boca, adjusted EBITDA margins are

expectedtobeconsistentwith2016.

Wewillprovideafurtherupdateontheoutlookfor2017atourQ2conferencecallinearly

August.

I’dnowliketoturnitovertoBenGadbois.

Ben?

BenGadbois—GlobalPresidentandChiefOperatingOfficer,SpinMasterCorp.

Thankyou,Mark.Overall,we’repleasedwithourperformanceforQ12017.

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Therewereanumberoffactorsthatinfluencedourperformanceandresults.Letmewalk

youthroughthesebriefly.

InreviewingQ12017resultsascomparedtoQ12016,oneofthekeydifferencesbetween

thisyearandlastyear,asMarkmentioned,wasthetimingofEaster.In2016,Easteroccurredlatein

March;however,in2017EasterfellinthesecondweekofApril.

The timing resulted in nine days of shipment moving into Q2. This was particularly

significantinEurope,wherethemarketismostlyservedfromourdomesticwarehousescompared

toFOBshipmentsinNorthAmerica,whichmostlyfellintoQ1.

Overall,we’reverypleasedwiththewayswehavemanagedourinventory,bothatyear-

endandduringQ1.Wemeasurebeginninginventory,shipmentsin,POS,andendinginventoryona

regularbasis.WearepleasedwithourpositiongoingintoQ2.

We are seeing strong POS growth on our products much higher than retail inventory

increases,showingcustomerandconsumerengagementwithourbrands.

DespitesomesoftnessinUSindustryPOS,ourUSPOSgrewdoubledigitsyearoveryearas

measured by NPD. We are seeing a healthy mix of inventory flowing into and out of retail.

Ultimately,thiswillleadtogrowthasretailerswillneedtoreplenishinventorylevels.

Asyouknow,POSgrowthisakeyindicatorforthefuture,andthisbodesverywellforthe

balanceof2017.

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I’d like to briefly reviewour four key growth strategies and someof thenew initiatives

we’reundertakingtoexecuteonthemin2017.

Ourfirstgrowthstrategytocontinuetoinnovatethecoreproductportfolioreliesonour

abilitytoconsistentlyinfuseinnovationintoourportfolioofbrandsandproducts.

Our internal 36-month brand innovation process is at the core of this ability. This was

highlightedbythepositiveresponsetoour2017lineatthemajorinternationaltoyfairsheldinQ1:

HongKonginJanuaryandNewYork,London,andNuremberginFebruary.

Our 2017 product line had several standouts, including Hatchimals Colleggtibles, an

excitingbrandextensionofferingthehatchingexperienceatalowpricepointandintheformofa

collectiblewhichlaunchedMay1st.WewillalsobelaunchinganexcitingnewHatchimalsitemon

October6ththisfallsimilartoourHatchimalsDayinOctoberlastyear.

Our goal is to build Hatchimals into a long-term brand. Hatchimals is a combination

betweeninteresting,lovablecharacters,andtheuniqueplaypatternofbirthingacharacterfroman

egg.

Wehadapatentissuedduringthequarteronthehatchingtechnologyandtheshellofthe

egg that will help us extend and grow the brand. There will be an ongoing focus on product

innovationgoing forwardaround theessenceof theHatchimalsbrandcomplementedbybest-in-

classlicensingandmerchandisingpartners.

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Luvabella, a classic baby doll with advanced technology, resulting in a lifelike doll that

reacts to nurturing interactions; M.A.X. Robot, our most advancedMeccano robot to date with

artificialintelligenceandcustomizableprogramming.

EtchASketch.WhenwepurchasedEtchASketchitwasatiredbrandandithadnotbeen

innovated formanyyears. In2017weare introducing theFreestyle, incorporatingan LCD screen

andastylusfordrawing,andJuniorEtchASketchwithanewjoystickforeasierdrawing,makingthe

magicaldrawingexperienceaccessibletoyoungerkids.

ThenewtoylinesforPAWPatrol,includinganextra-largelookouttowerbringingthemost

iconiclocationintheshowtolife.

And Tech Deck. In late 2016 we relaunched Tech Deck, a line of collectible miniature

licensed skateboards, which we acquired in 2004. The new line focuses on recreating authentic

skateboard brands, accessories, and parts. It is the authenticity that resonates with fans of the

brand,whichtendtobeboysfrom10to14yearsold.

Theskateboardingmarketevolvesincycle,andit isbackonanupswing.InAugust2016,

the International Olympic Committee included skateboarding in the 2020’s upcoming Summer

GamesinTokyo.Weareexcitedaboutthegrowththatwe’reseeinginthislinesofarinQ12017.

Wecontinuetobehardatworkonastrongpipelineacrossallofourbusinesssegments

for’18and’19usingour36-monthbrandinnovationprocess.

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Our second growth strategy is to significantly grow our international sales. We are

targetinginternationalsalesof35to40percentofourtotalsalesinthemediumterm.

Our Q1 2017 international sales represented 33 percent of total gross product sales.

Internationalsalesarecontinuinganupwardtrajectory,increasing39.2percentinEuropeand13.6

percentintherestoftheworldascomparedto2016.

In 2017, we converted Central Eastern Europe consisting of Poland, Czech Republic,

Hungary,Slovakia,andRomaniaintoourownofficesandAustraliaforSpinMaster.Thisisallowing

us to increase sales and margin through the direct control of our customer relationships and

marketingactivitiesinkeystrategicmarkets,andweareseeingpositiveresultsalready.

InAustralia,accordingtoNPD,SpinMasterisalreadytheeighthlargestmanufacturer.We

arestudyinghowtolaunchinChinathisyear.

DuetotheuniquerequirementsoftheChinesemarket,wewilllikelyuseonedistribution

partner for traditional retail and another one for e-commerce, which forms a big part of our

strategy.Chinawillbesmallindollarsthisyear.We’retakingitslowly,andbeingpatientinorderto

makesurethatwedoitright.

We will continue to look for markets where it makes sense to sell directly. We are

confidentthatwewillcontinuetogrowinternationalsalesin2017inlinewithourgrowthtargets.

Third, we continue to develop evergreen global entertainment properties. PAW Patrol

continuestoshowstrongmomentumgloballyandhasgrownrelativeto2016.

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ItisimportanttonotethatinmostmajormarketsinEuropePAWPatrolisairingSeasons2

or3in2017;Season4isrunninginNorthAmericain2017;Season5isinproductionandwillairin

NorthAmericalatein2017;andSeason6iscurrentlyindevelopment.

PAWPatrolcontinuestogeneratehighratings,crossesmanyculturalboundaries,andhas

strongsupportfromourpartnersglobally,bothinbroadcastandlicensingandmerchandising.There

are alsoopportunities to extendPAWPatrol intonewmarkets, such asAsia,whichhavenot yet

beenlaunched.

As Ronnenmentioned earlier, Rusty Rivet is rating very well on Nickelodeon, and they

havealreadycommittedforSeason2.WewillbelaunchingtheRustyRivettoylineinNorthAmerica

latein2017andelsewherein2018.

Theentertainmentgroupisactivelyworkingwithourbrandteamtodeliverashowthatis

tightly integrated with the toy line. We’re also working on several exciting TV shows in our

entertainmentgroupfor2018and2019,includingBakugan,whichweareworkinghardonforboth

thetoylineandTVshow.

Fourth, we intend to grow through strategic acquisition. The integration of Swimways,

Cardinal,andTocaBocacontinuestogowell.

Ourintegrationactivitiesincludesomeimportantsupplychaininvestmentspending,which

will position us well to grow Cardinal and Swimways, but also our base business.We also have

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severalproductivity initiatives thatweareactivelyworkingon inbothSwimwaysandCardinal to

increasetheirmargins.

These include supply chain improvement, strategic sourcing, Asia procurement

efficiencies,value-engineeringinitiatives,andtheintegrationofselectedpartsofourbackoffices.

The benefits of these initiative will be felt partially in 2017, but more so in 2018 and

beyond.InthecaseofCardinal,wehaverepositionedtheirsupplychainstructureinNorthAmerica

inordertogrowandimprovecostofservice.Swimways,forexample,willgolivegloballyonSAPin

thenextfewmonths.TheseinitiativeswillgrowbothSwimwaysandCardinalEBITDAmarginsover

time.

Putting our integration investment spending aside, we were pleased to see our gross

margininourcorebusinessremainingverystrongat53.3percentversus52.8percentlastyear.

TheTocaBocaandSagoMini appbusiness continues toperformwell and is growingat

approximately4percent.Weareworkingon launchinganexclusiveprogramwithaUSretailer in

thefall,which includesarangeoftoys,bedding,apparel,andothercategoriesbasedontheToca

Bocaintellectualproperty.

Asmentioned,inQ1wemadethedecisiontoshutdownTocaTVaswefeltthatthecost

tocompletedevelopmentoftheplatformwasnotjustifiedbythesubscriptionnumbers.Thequality

of the contentwas high, and those that use it were very satisfied. However, themonthly $4.99

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subscription fee compared toYouTubeKids,which is free, resulted in an insufficient subscription

take-uprate.

We recognized this early and took the difficult, but necessary steps to avoid incurring

future development costs. We have shut down Toca TV’s New York office, and focused all

development spending in Stockholm and Toronto on the app business and related licensing and

merchandisingprograms.

Marbles,our latest tuck-inacquisition,wascompleted inearlyQ2,and furtherbuildson

our very strongGames& Puzzles portfolio.Marbles is a leader in brain-building and high-quality

games,includingOtrio,OhSnap!,Newton,andTheSherlock.

The acquisition demonstrates the Company’s commitment to the Games & Puzzle

category,aswellasourconsistentefforttosupportourkeygrowthstrategiestodrivevaluethrough

strategic acquisition, and leverage scale internationally using our global sales and distribution

infrastructure.

Wearewellpositionedtomakethesetuck-inacquisitions,andwearealwayslookingfor

newones.

Finally, I want to conclude with a few comments on our focus on driving productivity

improvementandgrowthacrosstheentireorganization.InQ1yousawusinvestinbothoursupply

chainintheUSandEuropetopositionustoserviceourcustomersbetterandenhancemarginaswe

grow.

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Wealso invested in key product development and entertainment initiatives in linewith

our 36-month brand innovation pipeline that will drive future growth. These investments are

necessarytobuildaplatformthatwillenableustocontinuetoexecuteonourgrowthstrategies.

That concludes our formal remarks now. Ronnen, Mark, and I will now be pleased to

answeryourquestions.Operator,pleasebeginthequestionperiod.

Q&A

Operator

Thankyou.Ladiesandgentlemen,asareminderifyouwouldliketoaskaquestion,please

press*,thenthenumber1onyourtelephonekeypad.We’llpauseforjustamomenttocompilethe

Q&Aroster.

Your firstquestioncomes fromthe lineofSabahatKhanwithRBCCapitalMarkets.Your

lineisopen.

SabahatKhan—RBCCapitalMarkets

Thanks,andgoodmorning.SoyoumentionedthatEaster therewasobviouslyabitofa

shiftinsalesandthatimpactedmargins.Canyoumaybequantifywhatthoseninedaysofshiftinto

Q2ledtointermsofgrossproductsales?

MarkSegal

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Morning, Sabahat. Sowe’renotgoing tobe specific about theexactdollarsmoved.But

obviouslyIcantellyouthatitwasaround$5millionofinventoryasIcalledoutthatwehadinour

warehouseattheendofQ1thatrelatedtomostlyEastershipmentsthatweredelayed.Andthen

therewastheresultingimpactonsales;alsomarketingcostswereshiftedintoQ2.Andthenthenet

impactofthatwassomeEBITDAthatwillbeshiftedintoQ2fromQ1.

SabahatKhan

Allright.Thanks.Andthenon—

MarkSegal

Justkeepinmind—sorry,Sabahat,justtoaddonepointforeverybody.Nextyear,Easteris

onApril1,2018,sowe’regoingtohavesomesalesinQ1thatrelatetoEasterin’18that’sgoingto

makethecomparisonagainalittlebittricky.Justkeepthatinmind.

SabahatKhan

All right. Thanks.And thenon theother revenue line, that came inpretty strongversus

prioryear.Howareyouthinkingaboutthatlineitemoverthecourseoftherestoftheyear?Doyou

expect ittobekindof in linewithQ1fortherestoftheyear?Ordoyouexpect ittocomedown

later?

MarkSegal

I thinkwe’re seeinggoodgrowth in the licensingandmerchandisingarea.We’re seeing

growthintheapparea.Soweseestrongotherrevenueforthebalanceoftheyear.

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IthinktherelativegrowthcomparedtoQ1wasalittlebitexceptional,sowe’renotgoing

toseethatsamerelativegrowthquarteroverquarter,butwecertainlyseeotherrevenueasbeinga

driverthisyearinlinewithwhatwesawforQ1.

SabahatKhan

Allright.Thanks.Andthenonelastoneforme;canyoumaybetalkabouttrendsyearto

dateyou’reseeinginyouronlinesalesasapercentageoftotalbusiness?Andanycommentaryyou

canshareonyourplansfordirect-to-consumerbusiness?Thanks.

BenGadbois

Yeah.Goodmorning,Sabahat.Soasfarastheevolutionofe-commerceintheindustry,we

continuetoseestrongsalesine-commerce.We’recertainlyparticipatingwiththerise.

WearefocusedonourD2Claunch;we’rehardatworkonlaunching.Wehadasoftlaunch

a few months ago. I know we’re continuously working on improving the experience for the

consumer.Andinthebackhalfoftheyear,wewillbe—youwillseeusinamoremeaningfulway

participatinginourownD2C,Iguess,channelyoucouldcallit.

And e-commerce we continue to invest assets and investment as well with the e-

commerce retailers, but also with the traditional retailers that are also making significant

investmentintotheire-commerceplatform.Sowe’reveryentrenchedandveryinvolvedwithallof

them.

SabahatKhan

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Okay.Thankyou.

Operator

YournextquartercomesfromthelineofKenricTyghewithRaymondJames.Yourlineis

open.

KenricTyghe—RaymondJames

Thank you. Goodmorning.Mark, a particularly strong performance as highlighted with

Hatchimals.Couldyouspeaktowasthatbalancedbygeography?Orwasthereparticularstrengthin

differentregionsinthequarterfromHatchimals?

MarkSegal

Kenric,Ithinkit’saglobalperformance.WelaunchedHatchimalsgloballyinQ42016,and

wehadasimilarreactionaroundtheworld; itwasveryconsistentlystrong.Andwe’reseeingthe

samereactionoccurringinQ1withthelaunchoftheColleggtibles.Sowewe’redefinitelyseeinga

globalreactiontoHatchimals.

KenricTyghe

And then, Mark, just a follow-up there with respect to the Colleggtibles, certainly just

looking at the sell-through there based on some ofmy own channel checks it seems to be very

strong.Couldyouspeaktothesell-through? I realize it’searlydays,but itseemstobevery,very

wellreceivedinretail. Irealizewe’re10daysintoithere,butcouldyouspeaktothesell-through

morebroadly?

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MarkSegal

Yeah.I’llletBenhandlethatone,Kenric.

BenGadbois

Yeah. Good morning, Kenric. Yeah. So as you mentioned, it’s early days still. We just

startedsellingtheColleggtibles,buttheinitialreadsareverystrong.Sowe’reworkingoncapacity

now;we’rereviewingallthecapacityversusthepotentialupside.Atthispoint,there’sactuallynot

muchelsetoreport.

But something that is really important for everyone to know is that, as you all know,

Hatchimals isanewbrandthathasvery long-termpotential.Andweareverycarefullymanaging

themix,theweight(phon),thepromotion,thedistribution,ourglobalmarketingeffortsaroundthe

world. And we’re also very hard at work on future innovation to help continue to capture the

essenceof theHatchimalsbrand thatwe justmentioned,which is thecombinationof interacting

withalovablecharacter,andtheuniqueplaypatternsofbirthingacharacterthroughanegg.

SowearetreatingHatchimalsasalong-termbrand,andweareasacompanyspendinga

lotofoureffortscontinuouslylookingatdrivingfutureinnovationinour36-monthfutureproduct

pipeline.

So with that said, we’re very pleased with the early, early days read on Colleggtibles.

We’realsoverypleasedwithhowtheinitiallaunchofthebiggereggcontinuestoperform.Andwe

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have a lot of innovation coming. So you’re going to hearmore from us on Hatchimals as things

progress.

KenricTyghe

Thankyou.AndjustafinaloneformeswitchingittoSwimways,couldyouprovidealittle

more colour about how that performed relative to your expectations? Obviously we don’t have

muchofawayofaread.Couldyouprovidesomeinsightastotheperformanceofthegroup?And

perhapsalsoalittlebitmoreinsightastobygeographytheperformanceofSwimways?

MarkSegal

So,Kenric,Swimwayswasinlinefromatop-lineperspectivewithourexpectations.Asyou

know,Q1andQ1arethetwobiggestquartersoftheyear.Theydoabout80percentoftheirsales

approximatelyinthefirsthalfoftheyearrelativetothesecondhalf.Andsotheywerehittingtheir

numbersonthatfront.

Gross margin was a little bit strange in Q1 for Swimways because of the impact of

purchasepriceaccounting.Andsowhenweacquiredthecompanywewroteofftheinventory,and

mostofthat inventorywassold inQ1. It’snowallsoldthrough.Butasaresult,Swimwaystooka

$2.3millionchargetotheP&L,whichaffectedtheirgrossmargin,andobviouslySwimwaysaswell

whenyouconsolidate.SotheirgrossmarginsinQ1werelowerthanwewillseeforthebalanceof

theyear,andlowerthannormal.

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Butoverall, theydid fine.We continued to see goodperformance throughout the year,

andthey’rehittingtheirnumbers.

MostoftheirsalesarestillinNorthAmerica.ThevastmajorityoftheirbusinessisaNorth

Americanbusiness. I think it’saround95percentcurrently.Andoneof thekeyrationales forour

acquisitionwastogrowthatbusinessinternationally,butyou’rereallyonlygoingtoseethebenefit

ofthatin2018andbeyond.

KenricTyghe

Great.Thanksverymuch.I’llleaveitthere.

Operator

YournextquestioncomesfromthelineofDerekDleywithCanaccordGenuity.Yourlineis

open.

DerekDley—CanaccordGenuity

Yeah. Hi, guys. Justwondering in terms of your capital investment, shouldwe expect a

similar run rate for thebalanceof theyearaswe saw inQ1?And is thebulkof that investment

goingtobededicatedtowardscontentdevelopmentfor2017?

MarkSegal

So,Derek, froma forward-lookingperspective, the guidance thatwe’re giving is around

4.5 percent to 5 percent of sales for CapEx. And that CapEx is typically split around two-thirds

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towardscontentandone-thirdtowardstooling.ThosearethetwoprimarydriversofCapEx,andsoI

don’tseethatdramaticallychangingforthebalanceof2017.

DerekDley

Okay. Great. Just switching gears a little bit here in terms of your guys’ gross margin

contributionandgiventhepush intoe-commerceandentertainment,aremarginsate-commerce

andentertainmentsimilartowhatyougetintherestofyourbusiness?

MarkSegal

Sointheentertainmentareaoneofthekeyreasonsforourgrowthstrategyandtodrive

entertainment,asRonnenandBenhavedescribed, is reallywhenweownour IPwedogenerate

higher margins. And so definitely owned-IP entertainment is higher margin than, for example,

licensedproduct.Westill like licensedproduct, it’s still verygood,butwe like todrivehigher IP-

ownedentertainmentproductbecausethatisthehighest-marginproductthatwehave.

Asitrelatestoonline,therereallyisnomajordifferenceingrossmarginbetweenselling

totraditionalbricks-and-mortarandonlineatthispoint.

BenGadbois

Yeah. The only thing to add to what Mark said is selling online, obviously the selling

processisabitdifferentintermsofhowyoumarketyourproduct,howyou’remerchandising—how

youmerchandiseyourproductonline.There’salsotremendousancillarybenefitwithmarketingand

consumerresearch,sowe’realsoleveragingallthedifferenttouchpointsone-commercetoreally

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make sure that we benefit the whole portfolio across all channels as well as more and more

consumersdoresearchonline.

DerekDley

Okay.Great.Andthen justone lastone,moreofahousekeepingquestion;canyou just

quantifywhatportionofgrossproductsalesPAWPatrolrepresentedthisquarter?

MarkSegal

Yeah.Soitwasaround30percent,Derek,anditwasactuallyquiteabitlessthanitwasin

Q1of2016.Andfortheyear,asperthepreviousguidancewe’vegivenyou,weexpectPAWPatrol

tobearound25percentofsalesfortheyear.

DerekDley

Okay.Great.Thankyouverymuch.

Operator

YournextquestioncomesfromthelineofDavidMcFadgenwithCormarkSecurities.Your

lineisopen.

DavidMcFadgen—CormarkSecurities

Yeah. A couple of questions; so just starting on PAWPatrol, you talked about how the

revenue increased in Q1. I was wondering if you could tell us by what magnitude in terms of

percentage?Andthenyoualsotalkedabouttheratingshowthey’resignificantlyhigherandonce

again,canyougiveusanideaintermsofpercentagehowmuchthey’veincreased?

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MarkSegal

So I’ll takethefirstpart,andthenI’llhandofftoRonnenforthesecondpart.David,we

actually don’t break out individual product growth year over year or quarter over quarter. We

report in our business segments,which are the fivebusiness segments that you see in thepress

releaseand inourcommunication.Sowehaveanumberofotherproducts.Theoverall segment

grewaround6.5percentquarteroverquarter,butwedon’tspecificallybreakoutindividualproduct

lines.

Asitrelatestoratings,Ronnen,wouldyouliketocomment?

RonnenHarary

Yeah. I thinkthesame. Idon’tthinkwecallouttheexact increases inthepercentageof

ratings,butwecanjusttellyouthatit is increasing,andit’s increasingatanicerate.Andthat’sa

reallypositivethingtoseeinthefourthseasonofaproperty.Itmeansthat—whatittellsusisthat

we’re getting a larger share of kids tuning in.We’re getting a broader share of kids tuning in; a

largeragerange.

As I said in my introductory remarks, we’re noticing at retail a broadening of the age

spectrumofkidsthatareactuallypurchasingandplayingwithPAWPatroltoys.SoIthinkthatboth

thosematchupquitenicely,ratingsincreasesandalsopurchaseintent.

BenGadbois

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Yeah.Andtheotherthing,too,toaddtowhatRonnenjustsaid,David,isthatfromaPOS

standpointwe’reseeingPOSsalesrateincreasingacrossallgeographies,whichisobviouslymeaning

thatit’sstillresonatingvery,verywellandcontinuestogrowwithconsumers.

DavidMcFadgen

Okay.AndifIcouldaskanotherquestionjustonTocaandtheappbusinessyou’reworking

ondevelopinghere. Iwaswondering,areyouviewing thisaspotentiallyan incubatorwhereyou

couldcomeupwithsomeofyourownnewcharacters;sortoftestthemdigitallyonline?Andifthey

generatemeaningfulaudiencethenyouwouldbringthemoutintermsofmerchandising/licensing?

IsthatsortoftheanglewiththeTocaapps?

RonnenHarary

TocaBoca,partially;ImeanwhenyoulookatsomethinglikeTocaLife,whichhasalready

hadsevenappgamesintheseries.Sobeforewemadetheacquisition,thecompanywasalreadyon

thetrackoflicensingandmerchandisingandtakingthecharactersfromthosegamesandbringing

themouttoretail.It’sabitofadifferentapproach.Theyhavemoreoflikealifestylebrandwhen

you lookatTocaLifenotspecificallyfocusedononeortwocharacters,butfocusedonthewhole

feeling thatyouget;more likeaHelloKittyapproach.Andso that’swhatwe’reseeing rightnow

withTocaLife.

Inthefuturethereisapossibilitythatcertaincharactersthatcouldpotentiallypercolate

upfromsomeofthegames,andmaybesomeofthosecouldbetranslatedintoentertainment.And

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IthinktheuniquethingaboutTocaBocaistheabilitytopotentiallyinthefuturedostorytellingina

differentfashionandadifferentwaythantraditionalstorytellingontelevision.Andthatcouldopen

uppossibilitiesfrommorecharactersinlicensingandmerchandising.Soit’samultiplestrategy.

DavidMcFadgen

Okay.Allright.Thankyou.

Operator

Again, if you would like to ask a question, please press *, then the number 1 on your

telephonekeypad.

YournextquestioncomesfromthelineofBrianMorrisonwithTDSecurities.Yourlineis

open.

BrianMorrison—TDSecurities

Goodmorning.QuestionforRonnen.Entertainmentproperties,IknowyousaidthatRusty

Rivets is resonating with boys. I’m just wondering, is that the angle here? Or do you have the

potential to diversify the characters to increase that catchment area? And then on the property

pipelineweknowwherePAWPatrol stands,butMarksaid there’sseveralnewshows in ’17, ’18,

’19. Are you able to provide colour on the timing of, say, Bakugan or Abby Hatcher or other

properties?Oristhatsensitive?

RonnenHarary

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Yeah.Well, firstof all, Brian, I appreciate—I’mhittinga recordon this call. I’ve got two

questionsnow,ormaybethree,sothanksfor increasingmyaverageup.Ithinkthatthekeything

aboutRustyRivets is that it’saveryuniqueplaypattern.And it’smoreconstruction-based,more

role-play,anditisinherentlyleaningmoretowardsboys.ButintheproductionofSeason2they’re

goingtohaveafocusontryingtosmooththatout,andget it tobemoreofadual-gendershow.

There’salsosomenewcharactersthataregoingtobecomingintothemixinSeason2thatshould

actuallybalancethatout.

But I think theunique thing to focuson inRustyversusPAW,PAW isa character-based

showandthentheinherentplaypatternisvehicles.AndthenwhenyoulookatRustyRivets,it’sa

character-basedshowand the inherentplaypattern is constructionand role-play.Andsowesee

that as very nice diversification going into the preschool space. That’s where we saw the white

space,andthat’swhywedesigneditlikethat.

And we’re very excited to bring to the market something that’s completely different.

There’sneverbeenapreschoolconstructiontoylineattachedtoaTVfranchiseeverbefore,andso

wethinkthat’sgoingtoresonatewell.

Andthenintermsofothershows,wedohaveaboys’actionshowthatwe’relookingto

comeoutin2018.AndweareworkingonAbbyHatcher.It’sinproduction.Sothatiscomingdown

thepikeandalsoBakugan.Sothere’salotofthingsgoingonintheproductionarea.

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ImeanIwouldsaythatwehavefiveshowscurrentlyinproductionrightnowthatwe’llbe

launchingatvariousdifferentdates.

BrianMorrison

Excellent.Ben,Iknowwetalkedaboutthisbefore,butjustintermsofthetraditionaltoy

industryandthefastest-growingsegments,OutdoorandthenPuzzles&Games,whyisthistaking

place in what is increasingly a digital world? And does this trend go hand-in-hand with the

acquisitionofMarbles?

BenGadbois

Yeah.Ithink,Brian,welovetheGames&Puzzlescategorybyobviouslytheacquisitionof

Cardinal.NowwedidEG in Italynot longago;nowwe’redoingMarbles. Sowe justbelieve that

there’sareallyniceresurgenceoffamilytime;ofunpluggedtimeforkidsandfamily.Andnotonly

thatiswealsoseeanincreaseinmoreoftheless-knowngameportfoliolikeMarbles,forexample,

thatwe’reseeingmoreandmoreconsumerswillingtotryoutnewgames.Andthisisgrowingthe

category,andIthinkthetrendisdefinitely—it’smorethanaone-yeartrendbecausewe’reseeingit

continuing now, so we’re very strategic in terms of those tuck-ins that we’re doing into this

category.

AndasfarasOutdoor,Brian,thefirstpartofyourquestion, isOutdoor,aswediscussed

previously, has been growing approximately 10 percent,which is a nearly $4 billion category. So

there’salotof—andit’sverysimilar.Ithinktheconsumer,especiallytheparentsoftheconsumer,

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reallyliketheirkidstogoout,move,havemoreunpluggedtime,andthisiswhyIthinkthesetwo

categoriesarereallytherecipientsofIthinkalotoftimesit’sparents’wishes.

BrianMorrison

AndwouldOutdoorbeafocusofacquisitionopportunities?

BenGadbois

Yeah. I think, Brian, we are actually always looking, as you know, at several different

potentialacquisitions.AndshouldtherightonecomealongintheOutdoorcategoriesthenthisisa

categorythatwe’dbeinterestedin.

BrianMorrison

Okay.Andthenlastquestion,Mark.Otherrevenue,areyouabletoprovidepercentageor

highlevelwhatislicensingrevenueversustheappcontribution?

MarkSegal

So, Brian, we don’t break that down. There’s three components to other revenue. You

havelicensingandmerchandising,whichisthetraditionallicensingandmerchandisingthatyou’dbe

familiarwith.Wealsohavethebroadcastfeesthatwegetfromourdistributionpartnerswhenthey

acquiretheproperty.Andthenwealsohavetheapprevenuestream.Andkeep inmindthat the

apprevenuestreaminQ1of2017didnotexistinQ1of’16becausewehadn’tdonetheTocaBoca

acquisitionyet.

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Butapologies,we’renotgoingtobreakoutthosethreedifferentstreams.It’sjustalittle

bittoomuchdetailforusintermsofcompetitiveactivity.Andsowe’rejustreallybreakingitoutin

termsofotherrevenuealone.

BrianMorrison

That’sfair.Thankyou.

MarkSegal

Operator,wecanhavetimeformaybeonequickquestionmore,andthenwe’regoingto

havetoendthecall.

Operator

We actually have no further questions at this time. I will turn it back over to our

presenters.

MarkSegal

Okay.Well,thankyou,everyone.Weappreciateyourtimeandthequestions,andwelook

forwardtoournextquarterlycall.

Thankyouverymuch,everyone.

RonnenHarary

Thankyou.

Operator

Ladiesandgentlemen,thisconcludestoday’sconferencecall.Youmaynowdisconnect.

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*****

spin master corp. first quarter 2017 conference call may 12, 2017 · 2017-12-22 · may 12, 2017...

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