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JAKKS Pacific Reports Fourth Quarter and Full-Year 2022 Financial Results
Second Consecutive Year of 20+% Sales Growth Long-term Debt Reduced 55% Year-over-year SANTA MONICA, Calif.--(BUSINESS WIRE)-- JAKKS Pacific, Inc. [NASDAQ:
About this update from Jakks Pacific, Inc.
[{"type":"text","content":"\nSecond Consecutive Year of 20+% Sales Growth\n\nLong-term Debt Reduced 55% Year-over-year\n\n SANTA MONICA, Calif.--(BUSINESS WIRE)--\nJAKKS Pacific, Inc. [NASDAQ: JAKK] today reported financial results for the fourth quarter ended December 31, 2022.\n\nFourth Quarter 2022\n\n\nNet sales were $131.9 million compared to $188.0 million last year; a 30% decrease\n\n\nGross margin of 21.7%, negatively impacted by lower capitalization of warehouse costs, higher tooling amortization, obsolete inventory and royalty expense, offset by lower inbound freight expenses\n\n\nA valuation allowance release against a deferred tax asset generated a $52.6 million non-cash gain\n\n\nNet income attributable to common stockholders of $38.9 million, up from a net loss attributable to common stockholders of $3.5 million in Q4 2021\n\n\nAdjusted net loss attributable to common stockholders of $14.0 million, down from adjusted net income attributable to common stockholders of $1.3 million in Q4 2021\n\n\nAdjusted EBITDA of $(12.1) million, down from $5.0 million in Q4 2021.\n\n\nFull-Year 2022\n\n\nNet sales were $796.2 million compared to $621.1 million last year; a 28% increase\n\n\nGross margin of 26.5% compared to 29.5% last year\n\n\nOperating income of $61.0 million compared to $38.8 million last year; a 57% increase\n\n\nNet income attributable to common stockholders of $91.3 million, up from a net loss attributable to common stockholders of $7.3 million in 2021\n\n\nAdjusted EBITDA of $76.4 million up 55% versus $49.2 million in 2021\n\n\nAdjusted net income attributable to common stockholders of $43.4 million ($4.28 per diluted share), up from adjusted net income attributable to common stockholders of $23.6 million ($2.59 per diluted share) in 2021\n\n\nCash flows provided by operating activities of $86.1 million, compared to cash flows used in operating activities of $5.9 million in 2021\n\n\nCash flow sweep loan provision will reduce debt by $23.1 million in Q1 2023\n\n\n\n\nManagement Commentary\n\n“2022 exceeded our expectations with a second consecutive year of 20+% sales growth and, more importantly, strong retail sell-through for our customers,” said Stephen Berman, JAKKS Pacific’s Chairman and CEO. “In addition to a couple of strong successes, we saw solid results from the majority of our product lines. We shipped an exceptional amoun...