Jakks Pacific, Inc. · NASDAQ:JAKK
Jakks Pacific — Q3 2022 Earnings Presentation
24 slides from Jakks Pacific's earnings presentation, Oct 27, 2022
Slide 1: Third Quarter 2022 Earnings Conference Call Presentation
Third Quarter 2022 Earnings Conference Call Presentation October 27, 2022, 2pm PT/5pm ET Participant Dial in (Registration required): Registration Link Webcast: https://www.jakks.com/investors/ 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 2022, as well as any other forward-looking statements concerning 2022 and beyond are subject
Slide 4: Executive Summary
EXECUTIVE SUMMARY Net Sales through September exceed full-year 2021 • Q3 Net Sales were $323.0 million, 36% increase over prior year • Q3 Toy/Consumer Products (CP) business up 56% while Costumes business decreased 17% versus Q3 2021 • Q3 gross margins were negatively impacted by higher import/freig
Slide 5: Q3 Net Sales
2022 Q3 Net Sales $ Millions Q3 Net Sales $350 $323.0 $300 $250 $237.0 $200 $150 $100 $50 $- 2021 2022 YoY % Change: 36% 5
Slide 6: YTD Net Sales
2022 YTD Net Sales $ Millions YTD Net Sales $700 $664.3 $600 $500 $433.2 $400 $300 $200 $100 $- 2021 2022 YoY % Change: 53% 6
Slide 7: Q3 Toy/CP Net Sales
2022 Q3 Toy/CP Net Sales $ Millions Toy/CP Q3 Net Sales $300 $250 $269.6 $200 $150 $187.3 $173.0 $100 $50 $- 2020 2021 2022 YoY % Change: (8%) 56% 7
Slide 8: YTD Toy/CP Net Sales
2022 YTD Toy/CP Net Sales $ Millions Toy/CP YTD Net Sales $600 $500 $529.6 $400 $300 $306.1 $334.4 $200 $100 $- 2020 2021 2022 YoY % Change: 9% 58% 8
Slide 9: Q3 Toy/CP Net Sales
2022 Q3 Toy/CP Net Sales $ Millions North America Toy/CP Q3 Net Sales International Toy/CP Q3 Net Sales $250 $60 $200 $50 $219.1 $50.5 $40 $150 $158.0 $145.7 $30 $100 $29.3 $27.3 $20 $50 $10 $- $- 2020 2021 2022 2020 2021 2022 YoY % Change: (8%) 50% (7%) 85% 9
Slide 10: YTD Toy/CP Net Sales
2022 YTD Toy/CP Net Sales $ Millions North America YTD Net Sales International YTD Net Sales $500 $100 $400 $440.9 $75 $88.7 $300 $280.7 $50 $200 $256.3 $49.8 $53.7 $25 $100 $- $- 2020 2021 2022 2020 2021 2022 YoY % Change: 10% 57% 8% 65% 10
Slide 11: Q3 Costume Net Sales
2022 Q3 Costume Net Sales $ Millions Costume Q3 Net Sales $75 $64.0 $50 $55.0 $53.4 $25 $- 2020 2021 2022 YoY % Change: 16% (17%) 11
Slide 12: YTD Costume Net Sales
2022 YTD Costume Net Sales $ Millions Costume YTD Net Sales $150 $134.7 $100 $98.8 $81.5 $50 $- 2020 2021 2022 YoY % Change: 21% 36% 12
Slide 13: Q3 Gross Margin %
2022 Q3 Gross Margin % Q3 Gross Margin % 40% 30.8% 31.6% 30% 28.5% 20% 10% 0% 2020 2021 2022 +80 bps (310 bps) 13
Slide 14: YTD Gross Margin %
2022 YTD Gross Margin % YTD Gross Margin % 40% 30.7% 30% 27.8% 27.5% 20% 10% 0% 2020 2021 2022 +290 bps (320 bps) 14
Slide 15: Q3 Adjusted EBITDA
2022 Q3 Adjusted EBITDA $ Millions Q3 Adj EBITDA $80 $59.4 $60 $41.7 $40 $20 $- 2021 2022 17.6% 18.4% Adj. EBITDA / Net Sales % 15
Slide 16: TTM Adjusted EBITDA
2022 TTM Adjusted EBITDA $ Millions TTM Adj EBITDA $100 $93.5 $80 $60 $48.1 $40 $20 $- 2021 2022 8.6% 11.0% Adj. EBITDA / Net Sales % 16
Slide 17: Q3 '22 vs '21 Inventory
Q3 ‘22 vs ‘21 Inventory $ Millions Q3 Inventory $125 $109.1M $100 $20.5 $89.8M $75 $32.2 $50 $88.7 $57.6 $25 $- 2021 2022 In-Transit to Warehouse Inventory less In-Transit 17
Slide 18: TTM Adjusted EBITDA
TTM Adjusted EBITDA $ Millions TTM ADJ EBITDA TTM ADJ EBITDA % $120 14.0% $94 11.0% 12.0% $100 10.0% $80 8.0% $60 6.0% $40 4.0% $20 2.0% 0.0% $0 -2.0% ($20) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 202
Slide 19: Total Debt
Total Debt $ Millions TOTAL DEBT $200 $175 $162 $150 $125 $129 $96 $96 $100 $95 $85 $68 $75 $50 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2021 2021 2021 2021 2022 2022 2022 *Short-term and long-term debt, net of discounts and deferred issuance costs 19
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Slide 21: Q4 Key Items
Q4 Key Items 21
Slide 22: Q4 Key Items
~Gakks> Q4 Key Items
Slide 23: Q4 Key Items
Q4 Key Items 23
Slide 24: Thank You
Jakks) THANK YOU