LeapFrog Enterprises, Inc. (NYSE:LF) today announced financial results for the third quarter ended September 30, 2013.
Highlights of third quarter 2013 results compared to third quarter 2012 results:
- Consolidated net sales were up 4%.
- U.S. segment net sales were up 1%, and international segment net sales were up 14%.
- Income from operations was up 16%.
- Income from operations as a percentage of net sales was 21.3%, up 2.2 percentage points.
- Net income per diluted share (GAAP) was $0.37 compared to $0.60 a year ago.
- Normalized net income per diluted share 1 (non-GAAP), which includes an effective 37.5% tax rate, was $0.38, up $0.06, or 19%, compared to $0.32 a year ago.
- Adjusted EBITDA 1 was up 14%.
“Despite a tough retail climate in most of the markets in which we operate, the LeapFrog team delivered another solid quarterly financial performance,” said John Barbour, Chief Executive Officer. “We head into the all-important holiday season with the best product offering we have ever had. We have hundreds of new pieces of life-changing educational entertainment content; an expanded learning tablet line with LeapPad TM Ultra, LeapPad2 TM Power, LeapPad2 TM and our LeapPad TM exclusive holiday bundles; a new learn-to-read-and-write line with LeapReader TM; and new learning toys such as Read With Me Scout & Violet. Our LeapPad tablets have been featured on most of the top toy lists for the holidays, and our great learning products continue to be recognized with many consumer and independent expert awards.
“We are well-positioned for the holidays with improved in-stocks, stronger retail promotions and greater marketing investment during the highest-volume shopping weeks. At the same time, we see a weak retail climate and growing concern surrounding this holiday season, especially in the U.S.”