JAKKS Pacific Reports First Quarter 2020 Financial Results

About this update from Jakks Pacific, Inc.

[{"type":"text","content":" SANTA MONICA, Calif.--(BUSINESS WIRE)--\nJAKKS Pacific, Inc. [NASDAQ: JAKK] today reported financial results for the first quarter ended March 31, 2020.\n\n\nFirst Quarter 2020 Overview vs. Same Period Last Year:\n\n\n\nNet sales were $66.6 million, down 6% compared to $70.8 million reported in the comparable period in 2019, with strong sales of Disney Frozen 2 products offset by declines in other lines.\n\n\nGross margin was 24.6%, compared to 20.2% in Q1 of last year, benefiting from improved product margins as a percent of sales, partially offset by higher royalty costs.\n\n\nNet loss attributable to common stockholders was $12.3 million, or $0.41 per basic and diluted share, including non-cash gains of $9.8 million attributable to the change in fair value of our convertible senior notes and preferred stock derivative liability. This compares to a net loss attributable to common stockholders of $29.2 million, or $1.24 per basic and diluted share, including $5.3 million in non-cash charges for the change in the fair value of our convertible senior notes and acquisition-related expenses in the first quarter of 2019.\n\n\nAdjusted EBITDA (a non-GAAP measure) was negative $13.9 million, compared to negative $17.1 million in the first quarter of 2019. See note below on “Use of Non-GAAP Financial Information.”\n\n\nAdjusted net loss attributable to common stockholders (a non-GAAP measure) was $0.72 per basic and diluted share, an improvement of $0.26 compared to the first quarter of 2019. See note below on “Use of Non-GAAP Financial Information.”\n\n\n\nManagement Commentary\n\n\nJAKKS Chairman and CEO Stephen Berman stated, “The first quarter has been a challenge for most companies, including JAKKS, having to manage strains on the supply-chain early in the quarter and a volatile environment in March as consumer shopping patterns and retail logistics were upended by the effects of the COVID-19 pandemic. In spite of these unprecedented challenges, our net sales were down only 6% percent, and our supply chain has now almost completely returned to normal levels of activity. We have taken extensive steps to mitigate the impact of the disruption, including reducing operating expenses, conserving cash and shifting our marketing efforts to product categories less likely to be adversely affected by the disruption.\n\n\n“During the quarter...

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