Topps Raises 2021 Outlook Again as Second Quarter Results Shine

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Sports card giant Topps released second quarter earnings this morning, detailing sales that surged 78% and increasing projections for full year revenue to as much as $850 million, up from $760 million it noted in an investor presentation in June.

Topps, controlled by Michael Eisner and going public by a merger with a special purpose acquisition company named Mudrick II, said net sales hit $212.2 million– growth of more than $92 million compared a year ago. Topps’ sports and entertainment division saw sales rise nearly 87% to $152 million, while confections, which includes Ring Pops and Bazooka brands, gained 59% to $61 million.

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Within sports and entertainment, Topps claimed digital sports products increased 122% without disclosing the dollar amount, while physical sports and entertainment product sales were up 88%, also without a specific sales figure disclosed.

“I am pleased with our fantastic start to 2021,” said Eisner in the press release. “Our recent results exemplify the powerful emotional connection Topps has with a wide range of consumers and great execution by our teams.”

The collectibles company, acquired by Eisner and private equity firm Madison Dearborn in 2007, said 2021 sales should end up between $830 million and $850 million, the second hike in projections this year. As recently as early June the company was telling investors annual sales would touch $692 million. For Topps to hit the new estimate, it needs to average more than $225 million in sales the next two quarters, which would represent a nearly 50% increase in sales over 2020. Adjusted earnings before interest taxes depreciation and amortization for 2021 should be between $155 to $165 million.

The company also paid out $945,000 to Eisner and Madison Dearborn as management fees in the quarter. Those fees are being bought out as part of the going public transaction. Eisner most likely has collected the majority of about $157 million in fees and a special dividend Topps paid its owners in the past year. Madison Dearborn is cashing out of Topps in the deal. Eisner will remain in control of the business through a special class of voting shares.

SPAC shareholders will vote on the merger on Aug. 25, after which the company will be listed on the Nasdaq Stock Market under the ticker TOPP.

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