Jakks Pacific, Inc. · NASDAQ:JAKK
Jakks Pacific — Q2 2024 Earnings Presentation
42 slides from Jakks Pacific's earnings presentation, Jul 31, 2024
Slide 1: Second Quarter 2024 Earnings Presentation
Second Quarter 2024 Earnings Presentation July 31, 2024 5:00 PM Eastern / 2:00 PM Pacific Webcast link 2Q24 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: Net sales were $148.6 million, down 11% year over year
• Net sales were $148.6 million, a year-over-year decrease of 11%, driven by a lack of new film releases vs. prior year • Gross margin of 32.0%, up 130 basis points vs. Q2 2023 • Gross profit of $47.6 million, down $3.6 million compared to $51.2 million in Q2 2023 • Operating income of $7.6 million,
Slide 5: 2024 Second Quarter Net Sales
2024 Second Quarter Net Sales $ Millions $250 $220.4 $200 $166.9 $148.6 $150 $112.4 $100 $78.8 $50 $0 2020 2021 2022 2023 2024 YoY % Change: 43% 96% (24)% (11)% 5
Slide 6: 2024 Second Quarter Toys/Consumer Products Net Sales
2024 Second Quarter Toys/Consumer Products Net Sales $ Millions $200 $148.9 $150 $117.9 $104.6 $100 $81.5 $56.2 $50 $0 2020 2021 2022 2023 2024 YoY % Change: 45% 83% (21)% (11)% 6
Slide 7: 2024 Second Quarter Toys/Consumer Products Net Sales
2024 Second Quarter Toys/Consumer Products Net Sales $ Millions NA TOY/CP INTL TOY/CP $150 $30 $129.2 $21.9 $100 $96.0 $20 $19.6 $89.8 $14.2 $14.8 $67.4 $50 $47.4 $10 $8.8 $0 $0 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 42% 92% (26)% (6)% 60% 38% 12% (33)% YoY % Change YoY % Change 7
Slide 8: 2024 Second Quarter Costumes Net Sales
2024 Second Quarter Costumes Net Sales $ Millions $80 $71.6 $60 $49.0 $44.0 $40 $30.8 $22.5 $20 $0 2020 2021 2022 2023 2024 YoY % Change: 37% 132% (32)% (10)% 8
Slide 9: 2024 Second Quarter Gross Margin %
2024 Second Quarter Gross Margin % 35.0% 32.0% 30.7% 30.0% 28.4% 27.6% 25.0% 21.3% 20.0% 15.0% 2020 2021 2022 2023 2024 YoY % Change: 710 bps (80) bps 310 bps 130 bps 9
Slide 10: 2024 Second Quarter Adj. EBITDA and Adj. Net Income
2024 Second Quarter Adj. EBITDA and Adj. Net Income $ Millions (5.8)% 4.4% 12.3% 12.4% 8.3% (17.0)% (2.1)% 9.6% 8.0% 4.9% Adj. EBITDA Margin % Adj. Net Income Margin % 10
Slide 11: 2024 First Half Net Sales
2024 First Half Net Sales $ Millions $400 $341.3 $300 $274.4 $238.7 $196.2 $200 $145.3 $100 $0 2020 2021 2022 2023 2024 YoY % Change: 35% 74% (20)% (13)% 11
Slide 12: 2024 First Half Toys/Consumer Products Net Sales
2024 First Half Toys/Consumer Products Net Sales $ Millions $300 $260.0 $215.8 $200 $187.5 $161.4 $118.8 $100 $0 2020 2021 2022 2023 2024 YoY % Change: 36% 61% (17)% (13)% 12
Slide 13: 2024 First Half Toys/Consumer Products Net Sales
2024 First Half Toys/Consumer Products Net Sales $ Millions NA TOY/CP INTL TOY/CP $300 $60 $221.7 $42.0 $200 $40 $38.2 $173.9 $158.3 $135.0 $29.1 $26.4 $98.3 $20.5 $100 $20 $0 $0 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 37% 64% (22)% (9)% 29% 45% 10% (31)% YoY % Change YoY % Change 13
Slide 14: 2024 First Half Costumes Net Sales
2024 First Half Costumes Net Sales $ Millions $100 $81.3 $75 $58.6 $51.2 $50 $34.8 $26.5 $25 $0 2020 2021 2022 2023 2024 YoY % Change: 31% 134% (28)% (13)% 14
Slide 15: 2024 First Half Gross Margin %
2024 First Half Gross Margin % 35.0% 29.6% 30.1% 30.0% 28.8% 26.6% 25.0% 22.8% 20.0% 15.0% 2020 2021 2022 2023 2024 YoY % Change: 680 bps (300) bps 350 bps (130) bps 15
Slide 16: 2024 First Half Adj. EBITDA and Adj. Net Income
2024 First Half Adj. EBITDA and Adj. Net Income $ Millions (12.7)% 1.3% 8.5% 7.1% (2.1)% (24.3)% (6.0)% 5.4% 3.4% (1.7)% Adj. EBITDA Margin % Adj. Net Income Margin % 16
Slide 17: Second Quarter Inventory - 2023 vs 2024 (Worldwide)
Second Quarter Inventory - 2023 vs 2024 (Worldwide) $ Millions $75 $65.1M $4.9 $51.3M $50 $6.7 $60.2 $25 $44.6 $0 2023 2024 In-Transit to Warehouse Inventory less In-Transit 17
Slide 18: 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 47 52 $188 $167 36 175 $149 35 126 158 11 $128 $132 116 $127 $121 $112 88 $107 22 23 38 30 8 $90 $84 29 77 89 122 $79 13 $67 16 11 60 77 18 63 70 86 32 55 64 56 60 46 72 6
Slide 19: 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 20: 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% $100 $76 $76 10.0% 7.6% 7.9% $80 8.0% $49 $51 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 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
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Slide 35: Condensed Consolidated Statements of Operations (Unaudited)
JAKKS Pacific, Inc. and Subsidiaries Condensed Consolidated Statements of Operations (Unaudited) Three Months Ended June 30, Six Months Ended June 30, 2024 2023 Δ (%) 2024 2023 Δ (%) (In thousands, except per share data) (In thousands, except per share data) Net sales $ 148,619 $ 166,933 (11) % $ 23
Slide 36: Condensed Consolidated Balance Sheets (Unaudited)
JAKKS Pacific, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (Unaudited) June 30, December 31, 2024 2023 2023 (In thousands) Assets Current assets: Cash and cash equivalents $ 17,700 $ 32,228 $ 72,350 Restricted cash 202 203 204 Accounts receivable, net 140,006 132,479 123,797 Inventor
Slide 37: 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 $ 55,368 $ 57,768 $ 42,177 Accounts payable - Meisheng (related party) 19,130 18,612 12,259 Accrued expenses 45,026 46,44
Slide 38: Supplemental Balance Sheet and Cash Flow Data
JAKKS Pacific, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (Unaudited) June 30, December 31, 2024 2023 2023 (In thousands) Supplemental Balance Sheet and Cash Flow Data (Unaudited) June 30, Key Balance Sheet Data: 2024 2023 Accounts receivable days sales outstanding (DSO) 86 72 Inven
Slide 39: Reconciliation of Non-GAAP Financial Information
JAKKS Pacific, Inc. and Subsidiaries Reconciliation of Non-GAAP Financial Information (Unaudited) Reconciliation of GAAP to Non-GAAP measures: This press release and accompanying schedules provide certain information regarding Adjusted EBITDA and Adjusted Net Income (Loss), which may be considered n
Slide 40: TTM EBITDA and TTM Adjusted EBITDA
Trailing Twelve Months Ended June 30, 2024 2023 Δ ($) (In thousands) TTM EBITDA and TTM Adjusted EBITDA TTM net income $ 28,290 $ 69,649 $ (41,359) Interest expense 2,545 10,949 (8,404) Interest income (1,605) (321) (1,284) Provision for (benefit from) income taxes 2,291 (42,664) 44,955 Depreciation
Slide 41: Adjusted Net Income Attributable to Common Stockholders
Three Months Ended June 30, Six Months Ended June 30, 2024 2023 Δ ($) 2024 2023 Δ ($) (In thousands, except per share data) (In thousands, except per share data) Adjusted net loss attributable to common stockholders Net income (loss) attributable to common stockholders $ 5,266 $ 6,082 $ (816) $ (7,9
Slide 42: Net Sales by Division and Geographic Region
JAKKS Pacific, Inc. and Subsidiaries Net Sales by Division and Geographic Region (In thousands) QTD Q2 (In thousands) YTD Q2 % 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 $104,570 $117,934