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JAKKS Pacific Reports Fourth Quarter and Full-Year 2024 Financial Results
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Feb 20 2025
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JAKKS Pacific Reports Fourth Quarter and Full-Year 2024 Financial Results

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Board of Directors approves initiation of quarterly cash dividend program

SANTA MONICA, Calif., Feb. 20, 2025 (GLOBE NEWSWIRE) -- JAKKS Pacific, Inc. (Nasdaq: JAKK) today reported financial results for the fourth quarter and fiscal year ended December 31, 2024.

Fourth Quarter 2024

  • Net sales were $130.7 million, a year-over-year increase of 3%

    • Toys/Consumer Products net sales were $118.2 million, a year-over-year decrease of 1%

    • Costumes net sales were $12.5 million, a year-over-year increase of 46%

  • Gross margin of 27.2%, up 70 basis points vs. Q4 2023

  • Gross profit of $35.6 million, up 5% compared to $33.7 million in Q4 2023

  • Operating loss of $14.7 million in Q4 2024, an improvement of $0.6 million vs. a loss of $15.3 million in Q4 2023

  • Net loss attributable to common stockholders of $9.1 million or $0.83 per diluted share, compared to net loss attributable to common stockholders of $11.3 million or $1.12 per diluted share in Q4 2023

  • Adjusted net loss attributable to common stockholders (a non-GAAP measure) of $7.4 million or $0.67 per diluted share, compared to adjusted net loss attributable to common stockholders of $10.5 million or $1.04 per diluted share in Q4 2023

  • Adjusted EBITDA (a non-GAAP measure) of $(10.2) million vs. $(10.9) million in Q4 2023, an improvement of $0.8 million

Full-Year 2024

  • Net sales were $691.0 million compared to $711.6 million last year, a 3% decrease

    • Toys/Consumer Products net sales were $570.0 million, a year-over-year decrease of 2%

    • Costumes net sales were $121.0 million, a year-over-year decrease of 8%

  • Gross margin of 30.8% compared to 31.4% last year

  • Gross profit of $213.0 million, down 5% compared to $223.4 million last year

  • Operating income of $39.7 million compared to $59.1 million last year; a 33% decrease

  • Net income attributable to common stockholders of $35.3 million, down from a net income attributable to common stockholders of $36.9 million in 2023

  • Adjusted net income attributable to common stockholders of $42.6 million ($3.79 per diluted share), down from adjusted net income attributable to common stockholders of $48.9 million ($4.62 per diluted share) in 2023

  • Adjusted EBITDA of $59.3 million, down from $75.7 million in 2023

  • Cash flows provided by operating activities of $38.9 million, down from $66.4 million in 2023

  • Cash used in financing activities of $28.5 million, eliminating all preferred shareholders in the first half of 2024

  • End of year cash and cash equivalents of $70.1 million, down from $72.6 million in 2023

Management Commentary
“As we leave 2024, we are pleased with both the financial results we have achieved and the foundation we have established. We are a debt-free company with a strong portfolio of exceptional evergreen product categories and licenses led by a world-class team as we embark on the next chapter for JAKKS Pacific. Our company marked the 30th anniversary of its founding last month. Five years ago, we were trying to find our footing coming out of a painful restructuring exercise and processing the looming implications of what would become the COVID pandemic. The first quarter of this year represents the first time in fifteen years that we have started a year unencumbered by long-term debt or other obligations restricting our ability to share our successes directly with our common stock shareholders. As we consider our progress with initiatives like international expansion, partnering with the best global licensors and retailers and expanding and diversifying our product lines, we are excited for the future and what we see as a clear path forward for continued success. As a reflection of this optimism, our Board this week approved the initiation of a quarterly cash dividend of 25 cents per share payable on March 31, 2025, to shareholders of record as of March 3, 2025. On a full-year basis, this would equate to a dollar per share. It is our intention to maintain this dividend going forward on a quarterly basis, recalibrating when we deem it prudent.

Our fourth quarter results were roughly in line with our expectations. The business is measured in the context of full-year results with significant seasonality drivers of Halloween and Christmas. We always encourage customers to embrace our FOB selling model to leverage their larger and more efficient logistic operations. This approach translates to the majority of our sales taking place in the second and third quarters and not the underlying consumer behavior in those quarters. We were pleased to see our FOB business reach a global level of over 75% of our worldwide sales in 2024, a level we haven’t achieved in many years. Continuing the trend from Q3, Q4 reflected modest sales growth of 3% versus the prior year as our second half performance has benefited from the timing of the entertainment releases we have supported this year vs. 2023. Although our Costumes business finished the year down 8%, it grew Internationally to its highest level yet despite unfavorable industry conditions in Europe. Our gross margins improved in the quarter vs. last year and finished the full year at 30.8%. We also continued to see improved overhead cost containment versus the prior year, while we reallocated more resources towards Q4 media spend in an effort to capture more consumer attention and drive sell-through.

At retail, anchored by two strong film releases, we saw aggregate Toy/CP point-of-sale (POS) data up mid-single digits at our three largest US accounts vs. Q4 2023. That improved our full-year results to being down mid-single digits at those same accounts – and we exited the year with lower inventory levels at those accounts for the second year in a row.”

Other Financial Highlights
Sales in North America were down 3% in the quarter and 3% on a full-year basis compared to the previous year. Sales outside of North America were up 25% in the quarter, led by Europe. On a full-year basis, the business outside of North America was down 1%.

The Company’s cash and cash equivalents (including restricted cash) totaled $70.1 million as of December 31, 2024, compared to $72.6 million as of December 31, 2023, despite utilizing $20 million in cash in March as part of the transaction eliminating the company’s preferred stock.

Inventory was $52.8 million as of December 31, 2024, compared to $52.6 million as of December 31, 2023.

Use of Non-GAAP Financial Information and Reconciliation of GAAP to Non-GAAP measures:
In addition to the preliminary results reported in accordance with U.S. GAAP included in this release, the Company has provided certain non-GAAP financial information including Adjusted EBITDA and Adjusted Net Income (Loss) that exclude various items that are detailed in the financial tables and accompanying footnotes reconciling GAAP to non-GAAP results contained in this release. The non-GAAP financial measures included in the press release are reconciled to the corresponding GAAP financial measures below, as required under the rules of the Securities and Exchange Commission regarding the use of non-GAAP financial measures.

We define Adjusted EBITDA as income (loss) from operations before depreciation, amortization and adjusted for certain non-recurring and non-cash charges, such as reorganization expenses and restricted stock compensation expense. Net income (loss) is similarly adjusted and tax-effected to arrive at Adjusted Net Income (Loss). Adjusted EBITDA and Adjusted Net Income (Loss) are not recognized financial measures under GAAP, but we believe that they are useful in measuring our operating performance, enhance an overall understanding of the Company’s past financial performance, and provides useful information to the investor by comparing our performance across reporting periods on a consistent basis. Investors should not consider these measures in isolation or as a substitute for net income, operating income, or any other measure for determining the Company’s operating performance that is calculated in accordance with GAAP. In addition, because these measures are not calculated in accordance with GAAP, they may not necessarily be comparable to similarly titled measures employed by other companies.

The non-GAAP financial measures included in the press release are reconciled to the corresponding GAAP financial measures below, as required under the rules of the Securities and Exchange Commission regarding the use of non-GAAP financial measures. See “Use of Non-GAAP Financial Information” for additional disclosures with respect to the use of non-GAAP financial information.

Conference Call Live Webcast
JAKKS Pacific, Inc. invites analysts, investors and media to listen to the teleconference scheduled for 5:00 p.m. ET / 2:00 p.m. PT on February 20, 2025. A live webcast of the call will be available on the “Investor Relations” page of the Company’s website at www.jakks.com/investors. To access the call by phone, please go to this link (4Q24 Registration link), and you will be provided with dial-in details. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the scheduled start time. A replay of the webcast will also be available for a limited time at (www.jakks.com/investors).

About JAKKS Pacific, Inc.
JAKKS Pacific, Inc. is a leading designer, manufacturer and marketer of toys and consumer products sold throughout the world, with its headquarters in Santa Monica, California. JAKKS Pacific’s popular proprietary brands include: AirTitans®, Disguise®, Fly Wheels®, JAKKS Wild Games®, Moose Mountain®, Maui®, Perfectly Cute®, ReDo® Skateboard Co., Sky Ball®, SportsZone™, Xtreme Power Dozer®, WeeeDo®, and Wild Manes™ as well as a wide range of entertainment-inspired products featuring premier licensed properties. Through our products and our charitable donations, JAKKS is helping to make a positive impact on the lives of children. Visit us at www.jakks.com and follow us on Instagram (@jakkspacific.toys), Twitter (@jakkstoys) and Facebook (@jakkspacific.toys).

Forward Looking Statements
This press release may contain “forward-looking statements” (within the meaning of the Private Securities Litigation Reform Act of 1995) that are based on current expectations, estimates and projections about JAKKS Pacific's business based partly on assumptions made by its management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such statements due to numerous factors, including, but not limited to, those described above, changes in demand for JAKKS Pacific's products, product mix, the timing of customer orders and deliveries, the impact of competitive products and pricing, or that the Recapitalization transaction or any future transactions will result in future growth or success of JAKKS. The “forward-looking statements” contained herein speak only as of the date on which they are made, and JAKKS undertakes no obligation to update any of them to reflect events or circumstances after the date of this release.

CONTACT:

JAKKS Pacific Investor Relations

(424) 268-9567
Lucas Natalini
investors@jakks.net

 


 

JAKKS Pacific, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

 

 

 

 

 

 

2024

 

 

 

 

2023

 

 

 

 

 

 

 

(In thousands)

 

Assets

 

 

Current assets:

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

69,936

 

 

 

$

72,350

 

 

 

Restricted cash

 

 

201

 

 

 

 

204

 

 

 

Accounts receivable, net

 

 

131,629

 

 

 

 

123,797

 

 

 

Inventory

 

 

52,780

 

 

 

 

52,647

 

 

 

Prepaid expenses and other assets

 

 

14,141

 

 

 

 

6,374

 

 

 

 

Total current assets

 

 

268,687

 

 

 

 

255,372

 

 

 

 

 

 

 

 

 

 

 

 

Property and equipment

 

 

142,623

 

 

 

 

135,956

 

 

Less accumulated depreciation and amortization

 

 

126,981

 

 

 

 

121,357

 

 

 

Property and equipment, net

 

 

15,642

 

 

 

 

14,599

 

 

 

 

 

 

 

 

 

 

 

 

Operating lease right-of-use assets, net

 

 

53,254

 

 

 

 

23,592

 

 

Deferred income tax assets, net

 

 

70,394

 

 

 

 

68,143

 

 

Goodwill

 

 

35,111

 

 

 

 

35,083

 

 

Other long-term assets

 

 

1,781

 

 

 

 

2,162

 

 

 

 

Total assets

 

$

444,869

 

 

 

$

398,951

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities, Preferred Stock and Stockholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

Accounts payable

 

$

42,560

 

 

 

$

42,177

 

 

 

Accounts payable - Meisheng (related party)

 

 

13,461

 

 

 

 

12,259

 

 

 

Accrued expenses

 

 

48,456

 

 

 

 

45,102

 

 

 

Reserve for sales returns and allowances

 

 

35,817

 

 

 

 

38,531

 

 

 

Income taxes payable

 

 

1,035

 

 

 

 

3,785

 

 

 

Short-term operating lease liabilities

 

 

8,091

 

 

 

 

7,380

 

 

 

 

Total current liabilities

 

 

149,420

 

 

 

 

149,234

 

 

 

 

 

 

 

 

 

 

 

 

Long-term operating lease liabilities

 

 

48,433

 

 

 

 

16,666

 

 

Accrued expenses - long-term

 

 

2,563

 

 

 

 

3,746

 

 

Preferred stock derivative liability

 

 

-

 

 

 

 

29,947

 

 

Income taxes payable

 

 

3,620

 

 

 

 

3,245

 

 

 

 

Total liabilities

 

 

204,036

 

 

 

 

202,838

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock accrued dividends

 

 

-

 

 

 

 

5,992

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders' equity:

 

 

 

 

 

 

 

Common stock, $.001 par value

 

 

11

 

 

 

 

10

 

 

 

Additional paid-in capital

 

 

297,198

 

 

 

 

278,642

 

 

 

Accumulated deficit

 

 

(39,692

)

 

 

 

(73,612

)

 

 

Accumulated other comprehensive loss

 

 

(17,184

)

 

 

 

(15,627

)

 

 

 

Total JAKKS Pacific, Inc. stockholders' equity

 

 

240,333

 

 

 

 

189,413

 

 

 

Non-controlling interests

 

 

500

 

 

 

 

708

 

 

 

 

Total stockholders' equity

 

 

240,833

 

 

 

 

190,121

 

 

 

 

Total liabilities, preferred stock and stockholders' equity

 

$

444,869

 

 

 

$

398,951

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental Balance Sheet and Cash Flow Data (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

Key Balance Sheet Data:

 

 

2024

 

 

 

 

2023

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable days sales outstanding (DSO)

 

 

93

 

 

 

 

89

 

 

Inventory turnover (DSI)

 

 

51

 

 

 

 

52

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Twelve Months Ended
December 31,

 

Condensed Cash Flow Data:

 

 

2024

 

 

 

 

2023

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows provided by operating activities

 

$

38,947

 

 

 

$

66,404

 

 

Cash flows used in investing activities

 

 

(12,889

)

 

 

 

(8,907

)

 

Cash flows used in financing activities and other

 

 

(28,475

)

 

 

 

(70,433

)

 

Decrease in cash, cash equivalents and restricted cash

 

$

(2,417

)

 

 

$

(12,936

)

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

$

(11,246

)

 

 

$

(8,906

)

 

 

 

 

 

 

 

 

 

 

 


 

 

 

 

 

 

 

JAKKS Pacific, Inc. and Subsidiaries

 

 

 

 

Condensed Consolidated Statements of Operations (Unaudited)

 

 

 

 

 

Three Months Ended December 31,

 

 

 

 

Twelve Months Ended December 31,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2024

 

 

 

 

2023

 

 

Δ (%)

 

 

 

2024

 

 

 

 

2023

 

 

Δ (%)

 

 

 

 

 

(In thousands, except per share data)

 

 

 

 

(In thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

$

130,741

 

 

 

$

127,396

 

 

3

 

%

 

$

691,042

 

 

 

$

711,557

 

 

(3

)

%

 

Less: Cost of sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of goods

 

72,373

 

 

 

 

68,866

 

 

5

 

 

 

 

361,563

 

 

 

 

362,378

 

 

(0

)

 

 

 

Royalty expense

 

20,623

 

 

 

 

22,533

 

 

(8

)

 

 

 

106,804

 

 

 

 

117,607

 

 

(9

)

 

 

 

Amortization of tools and molds

 

2,192

 

 

 

 

2,264

 

 

(3

)

 

 

 

9,654

 

 

 

 

8,219

 

 

17

 

 

 

 

Cost of sales

 

95,188

 

 

 

 

93,663

 

 

2

 

 

 

 

478,021

 

 

 

 

488,204

 

 

(2

)

 

 

 

 

Gross profit

 

35,553

 

 

 

 

33,733

 

 

5

 

 

 

 

213,021

 

 

 

 

223,353

 

 

(5

)

 

 

Direct selling expenses

 

18,201

 

 

 

 

14,582

 

 

25

 

 

 

 

40,105

 

 

 

 

36,987

 

 

8

 

 

 

General and administrative expenses

 

31,953

 

 

 

 

34,401

 

 

(7

)

 

 

 

132,840

 

 

 

 

126,893

 

 

5

 

 

 

Depreciation and amortization

 

117

 

 

 

 

90

 

 

30

 

 

 

 

392

 

 

 

 

366

 

 

7

 

 

 

 

Selling, general and administrative expenses

 

50,271

 

 

 

 

49,073

 

 

2

 

 

 

 

173,337

 

 

 

 

164,246

 

 

6

 

 

 

 

 

Income (loss) from operations

 

(14,718

)

 

 

 

(15,340

)

 

(4

)

 

 

 

39,684

 

 

 

 

59,107

 

 

(33

)

 

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss from joint ventures

 

-

 

 

 

 

-

 

 

-

 

 

 

 

-

 

 

 

 

(565

)

 

nm

 

 

 

 

Other income (expense), net

 

8

 

 

 

 

139

 

 

(94

)

 

 

 

302

 

 

 

 

563

 

 

(46

)

 

 

 

Change in fair value of preferred stock derivative liability

 

-

 

 

 

 

(1,361

)

 

nm

 

 

 

 

-

 

 

 

 

(8,029

)

 

nm

 

 

 

 

Loss on debt extinguishment

 

-

 

 

 

 

-

 

 

-

 

 

 

 

-

 

 

 

 

(1,023

)

 

nm

 

 

 

 

Interest income

 

308

 

 

 

 

757

 

 

(59

)

 

 

 

841

 

 

 

 

1,344

 

 

(37

)

 

 

 

Interest expense

 

(157

)

 

 

 

(710

)

 

(78

)

 

 

 

(1,095

)

 

 

 

(6,451

)

 

(83

)

 

 

Income (loss) before provision for (benefit from) income taxes

 

(14,559

)

 

 

 

(16,515

)

 

(12

)

 

 

 

39,732

 

 

 

 

44,946

 

 

(12

)

 

 

Provision for (benefit from) income taxes

 

(5,446

)

 

 

 

(5,643

)

 

(3

)

 

 

 

5,532

 

 

 

 

6,833

 

 

(19

)

 

 

Net income (loss)

 

(9,113

)

 

 

 

(10,872

)

 

(16

)

 

 

 

34,200

 

 

 

 

38,113

 

 

(10

)

 

 

Net income (loss) attributable to non-controlling interests

 

-

 

 

 

 

(4

)

 

nm

 

 

 

 

280

 

 

 

 

(293

)

 

nm

 

 

 

Net income (loss) attributable to JAKKS Pacific, Inc.

$

(9,113

)

 

 

$

(10,868

)

 

(16

)

%

 

$

33,920

 

 

 

$

38,406

 

 

(12

)

%

 

Net income (loss) attributable to common stockholders

$

(9,113

)

 

 

$

(11,252

)

 

(19

)

%

 

$

35,250

 

 

 

$

36,904

 

 

(4

)

%

 

 

Earnings (loss) per share - basic

$

(0.83

)

 

 

$

(1.12

)

 

 

 

 

$

3.27

 

 

 

$

3.70

 

 

 

 

 

 

Shares used in earnings (loss) per share - basic

 

11,008

 

 

 

 

10,084

 

 

 

 

 

 

10,781

 

 

 

 

9,962

 

 

 

 

 

 

Earnings (loss) per share - diluted

$

(0.83

)

 

 

$

(1.12

)

 

 

 

 

$

3.14

 

 

 

$

3.48

 

 

 

 

 

 

Shares used in earnings (loss) per share - diluted

 

11,008

 

 

 

 

10,084

 

 

 

 

 

 

11,226

 

 

 

 

10,590

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31,

 

 

 

 

Twelve Months Ended December 31,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2024

 

 

 

 

2023

 

 

Δ bps

 

 

 

2024

 

 

 

 

2023

 

 

Δ bps

 

 

 

 

 

 

 

 

 

 

Fav/(Unfav)

 

 

 

 

 

 

Fav/(Unfav)

 

Net sales

 

100.0

 

%

 

 

100.0

 

%

-

 

 

 

 

100.0

 

%

 

 

100.0

 

%

-

 

 

 

Less: Cost of sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of goods

 

55.3

 

 

 

 

54.0

 

 

(130

)

 

 

 

52.3

 

 

 

 

50.9

 

 

(140

)

 

 

 

Royalty expense

 

15.8

 

 

 

 

17.7

 

 

190

 

 

 

 

15.5

 

 

 

 

16.5

 

 

100

 

 

 

 

Amortization of tools and molds

 

1.7

 

 

 

 

1.8

 

 

10

 

 

 

 

1.4

 

 

 

 

1.2

 

 

(20

)

 

 

 

Cost of sales

 

72.8

 

 

 

 

73.5

 

 

70

 

 

 

 

69.2

 

 

 

 

68.6

 

 

(60

)

 

 

 

 

Gross profit

 

27.2

 

 

 

 

26.5

 

 

70

 

 

 

 

30.8

 

 

 

 

31.4

 

 

(60

)

 

 

Direct selling expenses

 

13.9

 

 

 

 

11.4

 

 

(250

)

 

 

 

5.8

 

 

 

 

5.2

 

 

(60

)

 

 

General and administrative expenses

 

24.5

 

 

 

 

27.0

 

 

250

 

 

 

 

19.2

 

 

 

 

17.8

 

 

(140

)

 

 

Depreciation and amortization

 

0.1

 

 

 

 

0.1

 

 

-

 

 

 

 

0.1

 

 

 

 

0.1

 

 

-

 

 

 

 

Selling, general and administrative expenses

 

38.5

 

 

 

 

38.5

 

 

0

 

 

 

 

25.1

 

 

 

 

23.1

 

 

(200

)

 

 

 

 

Income (loss) from operations

 

(11.3

)

 

 

 

(12.0

)

 

70

 

 

 

 

5.7

 

 

 

 

8.3

 

 

(260

)

 

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss from joint ventures

 

-

 

 

 

 

-

 

 

 

 

 

 

-

 

 

 

 

(0.1

)

 

 

 

 

 

Other income (expense), net

 

-

 

 

 

 

0.1

 

 

 

 

 

 

0.1

 

 

 

 

0.1

 

 

 

 

 

 

Change in fair value of preferred stock derivative liability

 

-

 

 

 

 

(1.1

)

 

 

 

 

 

-

 

 

 

 

(1.1

)

 

 

 

 

 

Loss on debt extinguishment

 

-

 

 

 

 

-

 

 

 

 

 

 

-

 

 

 

 

(0.1

)

 

 

 

 

 

Interest income

 

0.2

 

 

 

 

0.6

 

 

 

 

 

 

0.1

 

 

 

 

0.2

 

 

 

 

 

 

Interest expense

 

(0.1

)

 

 

 

(0.6

)

 

 

 

 

 

(0.2

)

 

 

 

(0.9

)

 

 

 

 

Income (loss) before provision for (benefit from) income taxes

 

(11.2

)

 

 

 

(13.0

)

 

 

 

 

 

5.7

 

 

 

 

6.4

 

 

 

 

 

Provision for (benefit from) income taxes

 

(4.2

)

 

 

 

(4.5

)

 

 

 

 

 

0.8

 

 

 

 

1.0

 

 

 

 

 

Net income (loss)

 

(7.0

)

 

 

 

(8.5

)

 

 

 

 

 

4.9

 

 

 

 

5.4

 

 

 

 

 

Net income (loss) attributable to non-controlling interests

 

-

 

 

 

 

-

 

 

 

 

 

 

-

 

 

 

 

-

 

 

 

 

 

Net income (loss) attributable to JAKKS Pacific, Inc.

 

(7.0

)

%

 

 

(8.5

)

%

 

 

 

 

4.9

 

%

 

 

5.4

 

%

 

 

 

Net income (loss) attributable to common stockholders

 

(7.0

)

%

 

 

(8.8

)

%

 

 

 

 

5.1

 

%

 

 

5.2

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

JAKKS Pacific, Inc. and Subsidiaries

Reconciliation of Non-GAAP Financial Information (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31,

 

 

 

 

 

Twelve Months Ended December 31,

 

 

 

 

 

 

 

 

2024

 

 

 

2023

 

 

Δ ($)

 

 

 

 

2024

 

 

 

2023

 

 

Δ ($)

 

 

 

(In thousands)

 

 

 

 

 

(In thousands)

 

 

 

EBITDA and Adjusted EBITDA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

(9,113

)

 

$

(10,872

)

 

$

1,759

 

 

 

 

$

34,200

 

 

$

38,113

 

 

$

(3,913

)

 

Interest expense

 

 

157

 

 

 

710

 

 

 

(553

)

 

 

 

 

1,095

 

 

 

6,451

 

 

 

(5,356

)

 

Interest income

 

 

(308

)

 

 

(757

)

 

 

449

 

 

 

 

 

(841

)

 

 

(1,344

)

 

 

503

 

 

Provision for (benefit from) income taxes

 

 

(5,446

)

 

 

(5,643

)

 

 

197

 

 

 

 

 

5,532

 

 

 

6,833

 

 

 

(1,301

)

 

Depreciation and amortization

 

 

2,309

 

 

 

2,354

 

 

 

(45

)

 

 

 

 

10,046

 

 

 

10,336

 

 

 

(290

)

 

EBITDA

 

 

(12,401

)

 

 

(14,208

)

 

 

1,807

 

 

 

 

 

50,032

 

 

 

60,389

 

 

 

(10,357

)

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss from joint ventures (JAKKS Pacific, Inc. - 51%)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

-

 

 

 

276

 

 

 

(276

)

 

Loss from joint ventures (Meisheng - 49%)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

-

 

 

 

289

 

 

 

(289

)

 

Other (income) expense, net

 

 

(8

)

 

 

(139

)

 

 

131

 

 

 

 

 

(302

)

 

 

(563

)

 

 

261

 

 

Restricted stock compensation expense

 

 

2,255

 

 

 

2,057

 

 

 

198

 

 

 

 

 

9,535

 

 

 

8,027

 

 

 

1,508

 

 

Change in fair value of preferred stock derivative liability

 

 

-

 

 

 

1,361

 

 

 

(1,361

)

 

 

 

 

-

 

 

 

8,029

 

 

 

(8,029

)

 

Molds and tooling capitalization

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

-

 

 

 

(1,751

)

 

 

1,751

 

 

Loss on debt extinguishment

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

-

 

 

 

1,023

 

 

 

(1,023

)

 

Adjusted EBITDA

 

$

(10,154

)

 

$

(10,929

)

 

$

775

 

 

 

 

$

59,265

 

 

$

75,719

 

 

$

(16,454

)

 

Adjusted EBITDA/Net sales %

 

 

(7.8

)

%

 

(8.6

)

%

80 bps

 

 

 

 

8.6

 

%

 

10.6

 

%

-200 bps

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trailing Twelve Months Ended
December 31,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2024

 

 

 

2023

 

 

Δ ($)

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

TTM EBITDA and TTM Adjusted EBITDA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TTM net income

 

$

34,200

 

 

$

38,113

 

 

$

(3,913

)

 

 

 

 

 

 

 

 

 

Interest expense

 

 

1,095

 

 

 

6,451

 

 

 

(5,356

)

 

 

 

 

 

 

 

 

 

Interest income

 

 

(841

)

 

 

(1,344

)

 

 

503

 

 

 

 

 

 

 

 

 

 

Provision for (benefit from) income taxes

 

 

5,532

 

 

 

6,833

 

 

 

(1,301

)

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

10,046

 

 

 

10,336

 

 

 

(290

)

 

 

 

 

 

 

 

 

 

TTM EBITDA

 

 

50,032

 

 

 

60,389

 

 

 

(10,357

)

 

 

 

 

 

 

 

 

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss from joint ventures (JAKKS Pacific, Inc. - 51%)

 

 

-

 

 

 

276

 

 

 

(276

)

 

 

 

 

 

 

 

 

 

Loss from joint ventures (Meisheng - 49%)

 

 

-

 

 

 

289

 

 

 

(289

)

 

 

 

 

 

 

 

 

 

Other (income) expense, net

 

 

(302

)

 

 

(563

)

 

 

261

 

 

 

 

 

 

 

 

 

 

Restricted stock compensation expense

 

 

9,535

 

 

 

8,027

 

 

 

1,508

 

 

 

 

 

 

 

 

 

 

Change in fair value of preferred stock derivative liability

 

 

-

 

 

 

8,029

 

 

 

(8,029

)

 

 

 

 

 

 

 

 

 

Molds and tooling capitalization

 

 

-

 

 

 

(1,751

)

 

 

1,751

 

 

 

 

 

 

 

 

 

 

Loss on debt extinguishment

 

 

-

 

 

 

1,023

 

 

 

(1,023

)

 

 

 

 

 

 

 

 

 

TTM Adjusted EBITDA

 

$

59,265

 

 

$

75,719

 

 

$

(16,454

)

 

(22

)

%

 

 

 

 

 

 

TTM Adjusted EBITDA/TTM Net sales %

 

 

8.6

 

%

 

10.6

 

%

-200 bps

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31,

 

 

 

 

 

Twelve Months Ended December 31,

 

 

 

 

 

 

2024

 

 

 

2023

 

 

Δ ($)

 

 

 

 

2024

 

 

 

2023

 

 

Δ ($)

 

 

 

(In thousands, except per share data)

 

 

 

 

 

(In thousands, except per share data)

 

 

 

Adjusted net income (loss) attributable to common stockholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to common stockholders

 

$

(9,113

)

 

$

(11,252

)

 

$

2,139

 

 

 

 

$

35,250

 

 

$

36,904

 

 

$

(1,654

)

 

Restricted stock compensation expense

 

 

2,255

 

 

 

2,057

 

 

 

198

 

 

 

 

 

9,535

 

 

 

8,027

 

 

 

1,508

 

 

Change in fair value of preferred stock derivative liability

 

 

-

 

 

 

1,361

 

 

 

(1,361

)

 

 

 

 

-

 

 

 

8,029

 

 

 

(8,029

)

 

Loss on debt extinguishment

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

-

 

 

 

1,023

 

 

 

(1,023

)

 

Loss from joint ventures (JAKKS Pacific, Inc. - 51%)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

-

 

 

 

276

 

 

 

(276

)

 

2021 BSP Term Loan prepayment penalty

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

-

 

 

 

150

 

 

 

(150

)

 

Molds and Tooling capitalization

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

-

 

 

 

(1,751

)

 

 

1,751

 

 

Valuation allowance release/adjustments

 

 

-

 

 

 

(2,577

)

 

 

2,577

 

 

 

 

 

-

 

 

 

(2,577

)

 

 

2,577

 

 

Tax impact of additional charges

 

 

(544

)

 

 

(96

)

 

 

(448

)

 

 

 

 

(2,225

)

 

 

(1,175

)

 

 

(1,050

)

 

Adjusted net income (loss) attributable to common stockholders

 

$

(7,402

)

 

$

(10,507

)

 

$

3,105

 

 

 

 

$

42,560

 

 

$

48,906

 

 

$

(6,346

)

 

Adjusted earnings (loss) per share - basic

 

$

(0.67

)

 

$

(1.04

)

 

$

0.37

 

 

 

 

$

3.95

 

 

$

4.91

 

 

$

(0.97

)

 

Shares used in adjusted earnings (loss) per share - basic

 

 

11,008

 

 

 

10,084

 

 

 

924

 

 

 

 

 

10,781

 

 

 

9,962

 

 

 

819

 

 

Adjusted earnings (loss) per share - diluted

 

$

(0.67

)

 

$

(1.04

)

 

$

0.37

 

 

 

 

$

3.79

 

 

$

4.62

 

 

$

(0.83

)

 

Shares used in adjusted earnings (loss) per share - diluted

 

 

11,008

 

 

 

10,084

 

 

 

924

 

 

 

 

 

11,226

 

 

 

10,590

 

 

 

636

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

JAKKS Pacific, Inc. and Subsidiaries

Net Sales by Division and Geographic Region

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

QTD Q4

 

(In thousands)

YTD Q4

DIVISIONS

2024

2023

2022

% Change
2024 v 2023

% Change
2023 v 2022

 

DIVISIONS

2024

2023

2022

% Change
2024 v 2023

% Change
2023 v 2022

Toys/Consumer Products

$118,233

$118,855

$117,727

-0.5

%

1.0

%

 

Toys/Consumer Products

$570,018

$580,686

$647,317

-1.8

%

-10.3

%

Dolls, Role-Play/Dress-Up

62,603

73,272

68,937

-14.6

%

6.3

%

 

Dolls, Role-Play/Dress-Up

313,679

319,962

423,581

-2.0

%

-24.5

%

Action Play & Collectibles

47,209

35,312

38,909

33.7

%

-9.2

%

 

Action Play & Collectibles

215,521

219,446

173,529

-1.8

%

26.5

%

Outdoor/Seasonal Toys

8,421

10,272

9,881

-18.0

%

4.0

%

 

Outdoor/Seasonal Toys

40,818

41,279

50,207

-1.1

%

-17.8

%

Costumes

$12,508

$8,541

$14,159

46.4

%

-39.7

%

 

Costumes

$121,024

$130,870

$148,870

-7.5

%

-12.1

%

TOTAL JAKKS

$130,741

$127,396

$131,886

2.6

%

-3.4

%

 

TOTAL JAKKS

$691,042

$711,557

$796,187

-2.9

%

-10.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

QTD Q4

 

(In thousands)

YTD Q4

Regions

2024

2023

2022

% Change
2024 v 2023

% Change
2023 v 2022

 

Regions

2024

2023

2022

% Change
2024 v 2023

% Change
2023 v 2022

United States

$93,468

$96,304

$100,907

-2.9

%

-4.6

%

 

United States

$545,013

$557,865

$644,295

-2.3

%

-13.4

%

Europe

25,359

17,988

19,437

41.0

%

-7.5

%

 

Europe

71,392

76,464

85,348

-6.6

%

-10.4

%

Latin America

4,292

4,434

2,626

-3.2

%

68.8

%

 

Latin America

38,159

32,024

18,338

19.2

%

74.6

%

Canada

4,257

4,686

4,795

-9.2

%

-2.3

%

 

Canada

20,983

26,992

26,515

-22.3

%

1.8

%

Asia

1,523

2,140

1,698

-28.8

%

26.0

%

 

Asia

6,101

8,543

10,431

-28.6

%

-18.1

%

Australia & New Zealand

1,116

1,486

1,822

-24.9

%

-18.4

%

 

Australia & New Zealand

7,409

7,542

8,836

-1.8

%

-14.6

%

Middle East & Africa

726

358

601

102.8

%

-40.4

%

 

Middle East & Africa

1,985

2,127

2,424

-6.7

%

-12.3

%

TOTAL JAKKS

$130,741

$127,396

$131,886

2.6

%

-3.4

%

 

TOTAL JAKKS

$691,042

$711,557

$796,187

-2.9

%

-10.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

QTD Q4

 

(In thousands)

YTD Q4

Regions

2024

2023

2022

% Change
2024 v 2023

% Change
2023 v 2022

 

Regions

2024

2023

2022

% Change
2024 v 2023

% Change
2023 v 2022

North America

$97,725

$100,990

$105,702

-3.2

%

-4.5

%

 

North America

$565,996

$584,857

$670,810

-3.2

%

-12.8

%

International

33,016

26,406

26,184

25.0

%

0.8

%

 

International

125,046

126,700

125,377

-1.3

%

1.1

%

Total

$130,741

$127,396

$131,886

2.6

%

-3.4

%

 

Total

$691,042

$711,557

$796,187

-2.9

%

-10.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 


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