Jakks Pacific, Inc. · NASDAQ:JAKK
Jakks Pacific — Q4 2024 Earnings Presentation
34 slides from Jakks Pacific's earnings presentation, Feb 20, 2025
Slide 1: Fourth Quarter 2024 Earnings Presentation
Fourth Quarter 2024 Earnings Presentation February 20, 2025 5:00 PM Eastern / 2:00 PM Pacific Registration link 4Q24 Registration Link Webcast link Webcast 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 2025, as well as any other forward-looking statements concerning 2025 and beyond are subject
Slide 4: Q4 2024 Highlights
• Q4 Net sales were $130.7 million, a year-over-year increase of 3% • Q4 Gross margin of 27.2%, up 70 basis points vs. Q4 2023 • Gross profit of $35.6 million, up $1.9 million compared to $33.7 million in Q4 2023 • Operating loss of $14.7 million, compared to an operating loss of $15.3 million in Q4
Slide 5: Full Year 2024 Highlights
• FY Net sales were $691.0 million, a year-over-year decrease of 3% • FY Gross margin of 30.8%, down 60 basis points from 31.4% vs. FY 2023 • Gross profit of $213.0 million, down 5% compared to $223.4 million in FY 2023 • Operating income of $39.7 million, compared to operating income of $51.9 milli
Slide 6: Fourth Quarter Net Sales
2024 Fourth Quarter Net Sales $ Millions $250 $200 $188.0 $150 $128.3 $131.9 $127.4 $130.7 $100 $50 $0 2020 2021 2022 2023 2024 YoY % Change: 47% (30)% (3)% 3% 6
Slide 7: Fourth Quarter Toys/Consumer Products Net Sales
2024 Fourth Quarter Toys/Consumer Products Net Sales $ Millions $200 $179.2 $150 $121.0 $117.7 $118.9 $118.2 $100 $50 $0 2020 2021 2022 2023 2024 YoY % Change: 48% (34)% 1% (1)% 7
Slide 8: Fourth Quarter Toys/Consumer Products Net Sales by Region
2024 Fourth Quarter Toys/Consumer Products Net Sales $ Millions NA TOY/CP INTL TOY/CP $200 $40 $31.3 $147.8 $150 $30 $24.2 $22.1 $21.7 $99.0 $97.4 $97.2 $94.0 $20.3 $100 $20 $50 $10 $0 $0 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 49% (34)% 0% (3)% 42% (35)% 7% 12% YoY % Change YoY % Change 8
Slide 9: Fourth Quarter Costumes Net Sales
2024 Fourth Quarter Costumes Net Sales $ Millions $20 $15 $14.2 $12.5 $10 $8.8 $8.5 $7.2 $5 $0 2020 2021 2022 2023 2024 YoY % Change: 22% 61% (40)% 46% 9
Slide 10: Fourth Quarter Gross Margin %
2024 Fourth Quarter Gross Margin % 35.0% 32.8% 30.0% 27.2% 26.6% 26.5% 25.0% 21.7% 20.0% 2020 2021 2022 2023 2024 YoY % Change: (620) bps (490) bps 480 bps (70) bps 10
Slide 11: Fourth Quarter Adj. EBITDA and Adj. Net Income
2024 Fourth Quarter Adj. EBITDA and Adj. Net Income $ Millions Q4 ADJ EBITDA Q4 ADJ NET INCOME $10 $10 $5.0 $3.9 $1.3 $0 $0 ($3.6) ($7.4) ($10) ($10) ($10.2) ($10.5) ($10.9) ($12.1) ($13.9) ($20) ($20) 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 3.0% 2.7% (9.2)% (8.6)% (7.8)% (2.8)% 0.7% (10.5
Slide 12: Full Year Net Sales
2024 Full Year Net Sales $ Millions $1,000 $796.2 $800 $711.6 $691.0 $621.1 $600 $515.9 $400 $200 $0 2020 2021 2022 2023 2024 YoY % Change: 20% 28% (11)% (3)% 12
Slide 13: Full Year Toys/Consumer Products Net Sales
2024 Full Year Toys/Consumer Products Net Sales $ Millions $700 $647.3 $580.7 $570.0 $600 $513.5 $500 $427.2 $400 $300 $200 $100 $0 2020 2021 2022 2023 2024 YoY % Change: 20% 26% (10)% (2)% 13
Slide 14: Full Year Toys/Consumer Products Net Sales by Region
2024 Full Year Toys/Consumer Products Net Sales $ Millions NA TOY/CP INTL TOY/CP $600 $120 $109.0 $111.8 $538.3 $107.2 $500 $468.8 $462.8 $100 $428.5 $85.1 $400 $355.3 $80 $71.8 $300 $60 $200 $40 $100 $20 $0 $0 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 21% 26% (13)% (1)% 18% 28% 3% (4)% YoY
Slide 15: Full Year Costumes Net Sales
2024 Full Year Costumes Net Sales $ Millions $148.9 $150 $130.9 $121.0 $120 $107.6 $90 $88.7 $60 $30 $0 2020 2021 2022 2023 2024 YoY % Change: 21% 38% (12)% (8)% 15
Slide 16: Full Year Gross Margin %
2024 Full Year Gross Margin % 35.0% 31.4% 30.8% 30.0% 29.5% 29.0% 26.5% 25.0% 20.0% 2020 2021 2022 2023 2024 YoY % Change: 50 bps (300) bps 490 bps (60) bps 16
Slide 17: Full Year Adj. EBITDA and Adj. Net Income
2024 Full Year Adj. EBITDA and Adj. Net Income $ Millions FY ADJ EBITDA FY ADJ NET INCOME $100 $80 $80 $76.4 $75.7 $60 $48.9 $43.6 $42.6 $59.3 $60 $40 $49.2 $23.6 $40 $20 $28.1 $20 $0 ($6.3) $0 ($20) 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 5.5% 7.9% 9.6% 10.6% 8.6% (1.2)% 3.8% 5.5% 6.9% 6.
Slide 18: Fourth Quarter Inventory - 2023 vs 2024 (Worldwide)
Fourth Quarter Inventory - 2023 vs 2024 (Worldwide) $ Millions $75 0% $52.6M $52.8M $50 $4.8 $5.2 $25 $47.8 $47.6 $0 2023 2024 In-Transit to Warehouse Inventory less In-Transit 18
Slide 19: Evergreen businesses provide consistent results over time
Evergreen businesses provide consistent results over time Net Sales $796 ($ Million) $712 $691 221 $621 146 136 88 $516 102 376 350 393 393 254 108 149 89 131 121 71 76 50 41 41 2020 2021 2022 2023 2024 Full Year Note: Content-led sales represent those products branded to support a theatrical, telev
Slide 20: Q4 sales in line with recent years performance
Q4 sales in line with recent years performance Net Sales ($ Million) $323 $322 $310 69 58 99 $242 $237 $220 25 48 $188 53 $167 37 $149 175 177 35 125 158 12 $128 $132 $127 $131 115 $121 $112 86 $107 23 23 38 41 31 9 $90 $84 29 77 88 $79 121 14 $67 17 60 12 76 19 63 70 85 31 55 64 69 56 59 72 57 44 6
Slide 21: Top Entertainment Properties
Top Entertainment Properties 2020 2021 2022 2023 2024 The Super Mario Disney Frozen 2 Disney Frozen 2 Disney Encanto Bros. Movie The Simpsons (Fall 2019) (Fall 2019) (Fall 2021) (Spring 2023) Disney The Little Disney Raya and Sonic the Mermaid Disney Moana 2 the Last Dragon Hedgehog 2 (Live Action)
Slide 22: Sonic product images
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Slide 23: Supa Cool Figure Pack
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Slide 24: JAKKS Disney Moana
~ Gakks) ‘Disney M@ANA 2
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Slide 26: QS SLE =)
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Slide 28: Condensed Consolidated Statements of Operations
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
Slide 29: Condensed Consolidated Balance Sheets - Assets
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 an
Slide 30: Condensed Consolidated Balance Sheets - Liabilities and Equity
JAKKS Pacific, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (Unaudited) December 31, 2024 2023 (In thousands) Liabilities, Preferred Stock and Stockholders' Equity Current liabilities: Accounts payable $ 42,560 $ 42,177 Accounts payable - Meisheng (related party) 13,461 12,259 Accrued
Slide 31: Supplemental Balance Sheet and Cash Flow Data
JAKKS Pacific, Inc. and Subsidiaries 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 Cas
Slide 32: Reconciliation of Non-GAAP: EBITDA and Adjusted EBITDA
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 $
Slide 33: Reconciliation of Non-GAAP: Adjusted Net Income
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, except per share data) (In thousands, except per share data) Adjusted net income (loss) at
Slide 34: Net Sales by Division and Geographic Region
JAKKS Pacific, Inc. and Subsidiaries Net Sales by Division and Geographic Region (In thousands) QTD Q4 (In thousands) YTD Q4 % Change % Change % Change % Change DIVISIONS 2024 2023 2022 2024 v 2023 2023 v 2022 DIVISIONS 2024 2023 2022 2024 v 2023 2023 v 2022 Toys/Consumer Products $118,233 $118,855