TORONTO — Spin Master Corp. is the latest company to withdraw its financial outlook due to the impact of COVID-19.
The Toronto-based toy and children's entertainment company says it is withdrawing the 2020 outlook provided March 4 in terms of gross product sales and adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) margin.
The company says it won't issue further guidance in the near term due to the uncertainty related to the rapidly developing novel coronavirus that has sickened more than 235,000 people around the world including 800 in Canada. More than 9,700 people have died, including 10 in Canada.
Many stores have closed as government authorities have instructed people to stay home to limit the spread of the disease.
Air Canada withdrew its earnings forecast for 2020 and 2021 amid a "severe drop in traffic" due to the outbreak.
Spin Master says it will provide an update when it reports first quarter results on May 6.
"It is anticipated that the spread of COVID-19 and global measures to contain it, will have an impact on the company, however it is challenging to quantify the potential magnitude of such impact at this time," it said in a news release.
Since its outlook was issued production levels in China, Vietnam and India have increased significantly and are approaching normal levels.
"However, the disruption we are now seeing in key customer markets resulting from the impact of COVID-19 is significant," stated chief financial officer Mark Segal.
"Our balance sheet remains strong, with cash on hand and committed credit lines available, which provides us with significant financial flexibility. Spin Master is known for its resiliency and entrepreneurial spirit. We believe in our ability to withstand any issues and continue to succeed."
Spin Master's shares hit a 52-week low on Thursday before closing up $1.28 or 12.8 per cent to $11.28 on the Toronto Stock Exchange.
This report by The Canadian Press was first published March 19, 2020.
Companies in this story: (TSX:TOY, TSX:AC).
The Canadian Press