LeapFrog Enterprises: A Discussion Of The Brand's Potential Value
Blue Pacific Partners • 43 Comments
Blue Pacific Partners • 43 Comments
LeapFrog Continues To Offer Rare And Compelling Value Going Into The Holidays
Wisdom's Reward • 39 Comments
Wisdom's Reward • 39 Comments
Dec. 23, 2015, 11:57 AM
- LeapFrog (NYSE:LF) states Consumer Reports has named its $140 Epic Android kids tablet one of the year's top kids tablets. It adds testers recommended the Epic for its "ground-breaking home screen which allows children to personalize, create, and interact with its innovative features," and that it was one of the few tested devices to survive a test involving a tumbler machine.
- LeapFrog can use all the good press it can get: Shares remain down 84% YTD amid ongoing solvency fears. The company's market cap ($53M) is nearly even with the $52.6M cash balance it had at the end of September.
Nov. 9, 2015, 4:31 PM
- "Our sales were impacted by a far tougher retail landscape around the world than last year, with many of our key retail partners managing their inventories very tightly, resulting in more conservative and later placement of their up-front holiday orders," says LeapFrog (NYSE:LF) CEO John Barbour. "These challenges were compounded by reduced retail space support for our line and tough prior year comparisons from large shipments of clearance tablets and LeapBand last year. Our revenues were also reduced by significant markdown allowances to support our promotion plans for LeapTV over the holidays and our strategic move to tiered pricing on cartridge content."
- He adds international sales continue to be hurt by Target's Canadian exit, inventory issues at an overseas distributor, and a strong dollar. Losses grew due to lower sales, markdown allowances, LeapTV inventory charges, and ERP implementation and litigation expenses.
- In response to its struggles, the company laid off 150 employees (26% of its workforce) in October. The board and management are said to be exploring "all financial, strategic and structural alternatives available to the Company."
- LeapFrog ended FQ2 with $52.6M in cash, down from $88.2M at the end of FQ1. U.S. sales fell 41% Y/Y, and international sales 39%. Ahead of the job cuts, GAAP operating expenses were nearly flat Y/Y at $410.3M.
- Shares have plunged to $0.68 after hours.
- LeapFrog's FQ2 miss, PR
Oct. 15, 2015, 10:15 AM
- Beaten-down LeapFrog (NYSE:LF) is posting big gains in morning trading. 557K shares have already been traded; the 3-month daily average is 710K.
- The electronic toy/kids tablet maker is still down 76% YTD. With major losses continuing, the company's market cap ($79M) is less than its cash balance at the end of June ($88.2M).
Aug. 19, 2015, 6:06 PM
- Oppenheimer has launched coverage on LeapFrog (NYSE:LF) with an Outperform rating and $3 target.
- Shares have risen to $0.98 after hours. They remain down 79% YTD, as liquidity/solvency fears continue running high following multiple earnings disappointments. LeapFrog ended March with $88.2M in cash, down from $199.2M a year earlier and above a current market cap of $69M.
Jun. 12, 2015, 9:11 AM
Jun. 11, 2015, 5:21 PM
- "We expect fiscal year 2016 sales to contract considerably relative to the prior year, and operating losses for fiscal year 2016 to be similar to or greater than fiscal year 2015 losses, excluding goodwill and long-lived asset impairments," says LeapFrog (NYSE:LF) in its FQ4 report. The FY16 (ends March '16) consensus is currently for revenue to rise 4% Y/Y to $351.9M, and EPS to improve to -$0.41 from FY15's -$1.08.
- The children's tablet/electronic toy maker blames its FQ4 performance on "high carry-forward retail inventories from the holidays, lower demand for our tablets and associated content and the later than planned shipment and promotion of LeapTV."
- The company states its turnaround plan centers around "the diversification of the LeapFrog brand into new children's product categories, the stabilization and broadening of our current product lines and the growth of content share of our business, including the distribution of our award-winning content beyond our hardware base to other platforms."
- Financials: GAAP gross margin fell to just 10.3% from 37.1% a year ago. Excluding a $36.5M impairment charge, operating expenses rose 6% Y/Y to $42.3M. LeapFrog ended Q1 with $127.2M in cash, and no debt.
- Shares have plunged to $1.73 AH, making new 52-week lows in the process.
- Q1 results, PR
Jun. 5, 2015, 2:13 PM
- LeapFrog (NYSE:LF) has surged on volume of 1.63M shares, nearly twice a 3-month daily average of 818K. No major news has hit the wires.
- The maker of children's tablets/learning toys is less than 3 weeks removed from announcing its FQ4 report will be delayed due to an accounting review - no new earnings date has been given - and seeing its shares sell off in response. They went into trading today just $0.03 away from a 52-week low of $1.98.
May 18, 2015, 8:56 AM
- LeapFrog (NYSE:LF) delays the release of its FQ4 report while the company looks into if it can recover any "long-lived" assets under the terms of FASB ASC 360.
- A non-cash accounting charge is possible.
- LF -13.3% premarket to $1.90.
Jan. 26, 2015, 10:36 AM
- Shares of Jakks Pacific (JAKK +0.4%) and LeapFrog (LF +0.4%) are higher despite the sharp guidance cut from toy maker Mattel.
- Both companies are viewed by analysts as strong in channels where Mattel is weak.
- The toy player which has wreaked the most havoc on Mattel (MAT -2%) is Disney (DIS -0.5%) with the Frozen doll phenomenon cutting deeply into Barbie sales over the last year and showing little signs of abating.
- M&A talk could pick up in the sector with some entertainment giants eyeing the success Disney has had integrating franchise film characters into toys.
- Talks on a DreamWorks Animation-Hasbro combination were active last fall.
- Previously: Mattel -10.6% after CEO resigns and guidance lowered
- Previously: Toy sales up 4% in 2014 (Jan. 20 2015)
Jan. 23, 2015, 12:46 PM
Jan. 23, 2015, 9:11 AM
Jan. 22, 2015, 7:14 PM
- LeapFrog (NYSE:LF) reports preliminary FQ3 sales of $145M, far below guidance of $220M-$240M and a $226.1M consensus. Excluding charges, preliminary reported EPS is at -$0.25, well below a $0.19 consensus.
- FY15 (ends March '15) guidance has been withdrawn. A $107M write-down of goodwill and deferred tax assets is being taken. Full FQ3 results are due on Feb. 5.
- LeapFrog blames weaker-than-expected children's tablet sales, delays in shipping the LeapTV video game system, lower cartridge/accessories demand, lower-than-expected LeapReader sales, tighter inventory management, and the West Coast port slowdown.
- CEO John Barbour: "In light of our significant sales decline and losses, we are thoroughly reviewing our product strategies, operations and cost structure in order to improve our financial performance."
- Shares have plunged to $3.05 in AH trading.
Jan. 22, 2015, 5:36 PM
Oct. 14, 2014, 5:36 PM
Aug. 5, 2014, 12:47 PM
Aug. 5, 2014, 9:17 AM
LeapFrog Enterprises, Inc. designs, develops and markets innovative technology-based learning platforms and related proprietary content for children. The firm develops a number of learning platforms, including the LeapPad family of learning tablets, the Leapster family of handheld learning game... More
Sector: Consumer Goods
Industry: Toys & Games
Country: United States
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