MEGA brands
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Transcript of MEGA brands
![Page 1: MEGA brands](https://reader034.fdocuments.in/reader034/viewer/2022052202/559c54c71a28abb01c8b4652/html5/thumbnails/1.jpg)
Ramtin SoroushMark Villamin
Chung Long WongSean Young
BUSM 1100 – 002Langara CollegeMarch 29, 2009
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History 1967: Created by Victor and Rita Bertrand. Named Ritvik
Toys Inc.
1998: Amalgamated with Ritvik Holdings Inc.
2002: Name changed to MEGA Bloks Inc.
2006: Name changes to MEGA Brands Inc. after acquisition of various other brand names
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What do they do? Market products under various brand names
Invest 3-4% of sales to drive innovation
Manufactures and distributes toys as well as office supplies for children and businesses
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MEGA Brands’ International Divisional Structure
President & CEO - Marc Bertrand
Chief Innovation Officer - Vic Bertrand
Executive VP & CFO - Alain Tanguay
Executive VP & Chief Operations Officer - Anthony Bazan
President, Toys - Gerardo Yepez Reyna
President, Stationery & Activities - Al Hunyadi
Executive VP & Chief Marketing Officer - Kathleen Campisano
VP International - Michel Moggio
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Social Responsibility Programs Developed safety standards
Worked with leading safety testing authorities
Implemented a zero-defects program
Planned safety programs
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Defensive Stance Subject of 2 voluntary product recalls
Uncooperative with government
Violated the terms of one of the recalls
Improper follow-up after recall
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Size and Location 6000 employees
Based in Canada
Have influence worldwide
Outsourced manufacturing in China
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Industry and Competitors
Toy industry
Because of MEGA Bloks, their natural competitor is Lego
Other top competitors are Hasbro and Mattel
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Customers and Benefits/Value Provided
Customers are families with young children
Contribute to development of growing children
Their mission benefits and places children first
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Special Employee Program Created in year 2007
Extended training for qualified young employees
Create and maintain existing jobs
Sufficiently funded
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Capital Structure Stocks: Common Stocks
Bonds: None
Utilize Equity Financing
Primary Capital needs are flexible, varying depending on the situation
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Growing? Profitable? Sales of stationery and activity branches
Relocated/outsourced manufacturing
Partnership with Intertek
multi-year licensing deal with Nickelodeon and Viacom consumer products
licensing pact with Marvel
Net Loss of: $97,136
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Short-Term Solvency and Activity Ratio
0.00
2.00
4.00
6.00
8.00
10.00
12.00
2006 2005 2004 2003
Rat
io
Years
Solvency and Activity Ratio
Short-Term Solvency
Activity
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Solvency & Activity Comparison 2006
0
1
2
3
4
5
6
7
Short-Term Solvency Activity
Rat
io
Short-Term and Activity Comparison
Industry Average
Mega Brands
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Profitability Ratios
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
50.0%
2006 2005 2004 2003
Pe
rce
nta
ge
Year
Profitability Ratios
Return on Equity %
Return on Sales %
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Profitability Comparison 2006
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
Return on Equity % Return on Sales %
PEr
can
tage
Profitability
Industry Average
Mega Brands
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Earnings per share
$0.00
$0.20
$0.40
$0.60
$0.80
$1.00
$1.20
$1.40
2006 2005 2004 2003
Do
llar
Years
Earnings per share
Earnings per share
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Earnings per share Comparison 2006
$0.00
$0.20
$0.40
$0.60
$0.80
$1.00
$1.20
$1.40
$1.60
$1.80
Industry Average Mega Brands
Do
llar
Earning per Share
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Long-term Solvency
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
2006 2005 2004 2003
Do
llar
rati
o
Years
Long-Term Solvency Ratio
Long-Term Solvency
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Long-term Solvency Comparison 2006
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
Do
llar
Long-Term Solvency Comparison
Industry Average
Mega Brand
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Conclusion MEGA Brands’ long journey
Implementation of safety protocols
Employee programs
Growth
Ratios
Return to competitive status