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JAKKS Pacific Reports Second Quarter 2023 Financial Results
Long-term debt retired; Second-Highest First Half Net Sales in 15 Years SANTA MONICA, Calif.--(BUSINESS WIRE)-- JAKKS Pacific, Inc. (NASDAQ: JAKK) today
About this update from Jakks Pacific, Inc.
[{"type":"text","content":"\nLong-term debt retired; Second-Highest First Half Net Sales in 15 Years\n\n\n SANTA MONICA, Calif.--(BUSINESS WIRE)--\nJAKKS Pacific, Inc. (NASDAQ: JAKK) today reported financial results for the second quarter ended June 30, 2023.\n\n\nSecond Quarter 2023 Overview\n\n\n\nNet sales were $166.9 million, a year-over-year decrease of 24.3%\n\n\nToys/Consumer Products Net Sales were $117.9 million, a year-over-year decrease of 20.8%\n\n\n\nCostumes Net Sales were $49.0 million, a year-over-year decrease of 31.5%\n\n\n\nFirst-half Net Sales for JAKKS Pacific, Inc. were $274.4 million, a year-over-year decrease of 19.6%\n\n\n\n\n\n\nGross profit was $51.2 million, a year-over-year decrease of 15.9% from $60.9 million\n\n\n\nGross margin was 30.7%, up 310 basis points vs. Q2 2022\n\n\n\nRetired debt of $30.2 million four years prior to maturity, eliminating 11%+ interest burden\n\n\nTotal debt was $84.9 million as of June 30, 2022, and $177.7 million as of September 30, 2019, post company recapitalization\n\n\n\n\n\n\nOperating income was $16.4 million (9.9% of net sales) vs. $23.7 million (10.7% of net sales) in Q2 2022\n\n\n\nNet income attributable to common stockholders was $6.1 million or $0.58 per diluted share, compared to net income attributable to common stockholders of $26.2 million or $2.61 per share in Q2 2022\n\n\n\nAdjusted net income attributable to common stockholders (a non-GAAP measure) was $13.3 million or $1.26 per diluted share, compared to an adjusted net income attributable to common stockholders of $21.1 million or $2.10 per diluted share in Q2 2022\n\n\n\nAdjusted EBITDA (a non-GAAP measure) was $20.7 million, vs. $27.1 million in Q2 2022\n\n\n\nTrailing twelve month adjusted EBITDA was $66.9 million (9.2% of net sales) down 12% from $75.7 million (9.9% of net sales) in the trailing twelve months ended June 2022\n\n\n\nManagement Commentary\n\n\n“I’m pleased to say that the first half of the year has met, and in many cases, exceeded our expectations,” said Stephen Berman, CEO of JAKKS Pacific, Inc. “Consumers reacted favorably to our new product launches, both supporting the most talked about film releases of the first half of the year as well as the innovation and excitement we’ve brought to our classic, evergreen product lines. Retail sell-through accelerated in the quarter from earlier in the year, as custo...