Jakks Pacific, Inc. · NASDAQ:JAKK
Jakks Pacific — Q1 2024 Earnings Presentation
21 slides from Jakks Pacific's earnings presentation, Apr 24, 2024
Slide 1: First Quarter 2024 Earnings Presentation
First Quarter 2024 Earnings Presentation April 24, 2024 5:00 PM Eastern / 2:00 PM Pacific Webcast link 1Q24 Registration link 1
Slide 2: Executive Team on the Call
EXECUTIVE TEAM ON THE CALL STEPHEN BERMAN Chairman & Chief Executive Officer JOHN KIMBLE Executive Vice President & Chief Financial Officer 2
Slide 3: Safe Harbor Statement
SAFE HARBOR STATEMENT The Company would like to point out that any comments made about JAKKS Pacific's future performance, events or circumstances, including the estimates of sales and/or Adjusted EBITDA in 2024, as well as any other forward-looking statements concerning 2024 and beyond are subject
Slide 4: Q1 2024 results highlights
• Net sales were $90.1 million, a year-over-year decrease of $17.4 million or 16%, driven by a lack of new film releases vs. prior year • Gross margin of 23.4%, down 580 basis points vs. Q1 2023, led by higher inventory obsolescence expense, and retailer markdowns • Gross profit of $21.1 million, do
Slide 5: 2024 First Quarter Net Sales
2024 First Quarter Net Sales $ Millions $150 $120.9 $107.5 $100 $90.1 $83.8 $66.6 $50 $0 2020 2021 2022 2023 2024 YoY % Change: 26% 44% (11)% (16)% 5
Slide 6: 2024 First Quarter Toys/Consumer Products Net Sales
2024 First Quarter Toys/Consumer Products Net Sales $ Millions $150 $111.1 $97.9 $100 $82.9 $79.9 $62.6 $50 $0 2020 2021 2022 2023 2024 YoY % Change: 28% 39% (12)% (15)% 6
Slide 7: 2024 First Quarter Toys/Consumer Products Net Sales
2024 First Quarter Toys/Consumer Products Net Sales $ Millions NA TOY/CP INTL TOY/CP $200 $50 $40 $150 $30 $100 $92.5 $77.9 $18.6 $20.0 $67.6 $68.6 $20 $14.3 $51.0 $11.6 $12.3 $50 $10 $0 $0 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 33% 37% (16)% (12)% 5% 52% 7% (28)% YoY % Change YoY % Chang
Slide 8: 2024 First Quarter Costumes Net Sales
2024 First Quarter Costumes Net Sales $ Millions $20 $15 $9.8 $9.6 $10 $7.2 $5 $4.0 $4.0 $0 2020 2021 2022 2023 2024 YoY % Change: 0% 146% (2)% (25)% 8
Slide 9: 2024 First Quarter Gross Margin %
2024 First Quarter Gross Margin % 40.0% 35.0% 31.1% 30.0% 29.2% 24.6% 24.7% 25.0% 23.4% 20.0% 15.0% 2020 2021 2022 2023 2024 YoY % Change: 650 bps (640) bps 450 bps (580) bps 9
Slide 10: 2024 First Quarter Adj. EBITDA and Adj. Net Income
2024 First Quarter Adj. EBITDA and Adj. Net Income $ Millions Q1 ADJ EBITDA Q1 ADJ NET INCOME $5 $5 $1.9 $0 $0 ($1.1) ($2.6) ($2.4) ($5) ($4.0) ($5) ($10) ($9.5) ($10) ($11.3) ($15) ($15) ($13.9) ($20) ($17.2) ($21.9) ($20) ($25) 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 (20.8)% (2.9)% 1.6%
Slide 11: First Quarter Inventory - 2023 vs 2024 (Worldwide)
First Quarter Inventory - 2023 vs 2024 (Worldwide) $ Millions $75 $64.0M $5.5 $50 $46.3M $4.0 $58.5 $25 $42.3 $0 2023 2024 In-Transit to Warehouse Inventory less In-Transit 11
Slide 12: Core, evergreen business has steadily increased over the past 4 years
Core, evergreen business has steadily increased over the past 4 years... $323 Net Sales $310 ($ Million) 58 98 $242 $237 $220 23 46 51 $188 $167 36 175 35 127 159 $132 117 $128 $127 $121 $112 88 $107 21 23 38 30 8 $90 $84 29 77 122 $79 10 $67 15 11 61 78 18 64 70 86 33 55 64 57 64 46 72 64 53 32 31
Slide 13: Trailing-Twelve-Month (TTM) Adjusted EBITDA (non-GAAP)
Trailing-Twelve-Month (TTM) Adjusted EBITDA (non-GAAP) $ Millions TTM ADJ EBITDA TTM ADJ EBITDA % 10.6% $120 12.0% 9.6% 8.6% $100 $76 $76 10.0% 7.9% $80 $60 8.0% $49 5.5% $60 6.0% $28 $40 4.0% $20 2.0% $0 0.0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 14: BLACK+DECKER
BLACK+ DECKER |
Slide 15: Condensed Consolidated Statements of Operations (Unaudited)
JAKKS Pacific, Inc. and Subsidiaries Condensed Consolidated Statements of Operations (Unaudited) Three Months Ended March 31, 2024 2023 Δ (%) (In thousands, except per share data) Net sales $ 90,076 $ 107,484 (16) % Less: Cost of sales Cost of goods 53,821 58,304 (8) Royalty expense 13,776 16,654 (1
Slide 16: Condensed Consolidated Balance Sheets (Unaudited)
JAKKS Pacific, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (Unaudited) March 31, December 31, 2024 2023 2023 (In thousands) Assets Current assets: Cash and cash equivalents $ 35,290 $ 38,103 $ 72,350 Restricted cash 202 198 204 Accounts receivable, net 79,875 85,171 123,797 Inventory
Slide 17: Condensed Consolidated Balance Sheets: Liabilities and Equity
JAKKS Pacific, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (Unaudited) Liabilities, Preferred Stock and Stockholders' Equity Current liabilities: Accounts payable $ 31,683 $ 27,714 $ 42,177 Accounts payable - Meisheng (related party) 8,689 8,024 12,259 Accrued expenses 36,994 27,006
Slide 18: Supplemental Balance Sheet and Cash Flow Data (Unaudited)
Supplemental Balance Sheet and Cash Flow Data (Unaudited) March 31, Key Balance Sheet Data: 2024 2023 Accounts receivable days sales outstanding (DSO) 81 71 Inventory turnover (DSI) 61 76 Three Months Ended March 31, Condensed Cash Flow Data: 2024 2023 Cash flows used in operating activities $ (7,93
Slide 19: Reconciliation of Non-GAAP Financial Information: EBITDA and Adjusted EBITDA
JAKKS Pacific, Inc. and Subsidiaries Reconciliation of Non-GAAP Financial Information (Unaudited) Three Months Ended March 31, 2024 2023 Δ ($) (In thousands) EBITDA and Adjusted EBITDA Net loss $ (14,225) $ (5,318) $ (8,907) Interest expense 143 3,003 (2,860) Interest income (376) (117) (259) Provis
Slide 20: Reconciliation of Non-GAAP Financial Information: Adjusted Net Loss
JAKKS Pacific, Inc. and Subsidiaries Reconciliation of Non-GAAP Financial Information (Unaudited) Three Months Ended March 31, 2024 2023 Δ ($) (In thousands, except per share data) Adjusted net loss attributable to common stockholders Net loss attributable to common stockholders $ (13,175) $ (5,680)
Slide 21: Net Sales by Division and Geographic Region
JAKKS Pacific, Inc. and Subsidiaries Net Sales by Division and Geographic Region (In thousands) QTD Q1 % Change % Change Divisions 2024 2023 2022 2024 v 2023 2023 v 2022 Toys/Consumer Products $82,910 $97,893 $111,123 -15.3% -11.9% Dolls, Role-Play/Dress Up 40,574 47,843 62,006 -15.2% -22.8% Action