Jakks Pacific, Inc. · NASDAQ:JAKK
Jakks Pacific — Q4 2023 Earnings Presentation
28 slides from Jakks Pacific's earnings presentation, Feb 29, 2024
Slide 1: Fourth Quarter 2023 Earnings Presentation
Fourth Quarter 2023 Earnings Presentation February 29, 2024 5:00 PM Eastern / 2:00 PM Pacific Webcast link 4Q23 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: CEO Overview
CEO OVERVIEW Fiscal Year Gross Margin dollars up 6% vs 2022 • Q4 Net Sales were $127.4 million, 3% decrease versus prior year • Q4 Gross margin of 26.5%, up 480bps vs Q4 2022 • Fiscal Year Results compared to prior year: o Net Sales of $711.6 million vs. $796.2 million, an 11% decrease o Gross margi
Slide 5: Fourth Quarter Net Sales
2023 Fourth Quarter Net Sales $ Millions $250 $200 $188.0 $152.5 $150 $128.3 $131.9 $127.4 $100 $50 $0 2019 2020 2021 2022 2023 YoY % Change: (16)% (47)% (30)% (3)% 5
Slide 6: Fourth Quarter Toys/Consumer Products Net Sales
2023 Fourth Quarter Toys/Consumer Products Net Sales $ Millions $200 $179.2 $148.7 $150 $121.0 $117.7 $118.9 $100 $50 $0 2019 2020 2021 2022 2023 YoY % Change: (19)% 48% (34)% 1% 6
Slide 7: Fourth Quarter Toys/Consumer Products Net Sales (NA and International)
2023 Fourth Quarter Toys/Consumer Products Net Sales $ Millions NA TOY/CP INTL TOY/CP $200 $50 $147.8 $40 $150 $35.2 $31.3 $113.6 $30 $99.0 $97.4 $97.2 $100 $22.1 $21.7 $20.3 $20 $50 $10 $0 $0 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 (13)% 49% (34)% 0% (37)% 42% (35)% 7% YoY % Change YoY %
Slide 8: Fourth Quarter Costumes Net Sales
2023 Fourth Quarter Costumes Net Sales $ Millions $20 $15 $14.2 $10 $8.8 $8.5 $7.2 $5 $3.8 $0 2019 2020 2021 2022 2023 YoY % Change: 91% 22% 61% (40)% 8
Slide 9: Fourth Quarter Gross Margin %
2023 Fourth Quarter Gross Margin % 40.0% 35.0% 32.8% 30.4% 30.0% 26.6% 26.5% 25.0% 21.7% 20.0% 15.0% 2019 2020 2021 2022 2023 YoY % Change: 240 bps (620) bps (490) bps 480 bps 9
Slide 10: Fourth Quarter Adj. EBITDA and Adj. Net Income
2023 Fourth Quarter Adj. EBITDA and Adj. Net Income $ Millions Q4 ADJ EBITDA Q4 ADJ NET INCOME $10 $10 $5.0 $5 $3.3 $3.9 $5 $1.3 $0 $0 ($5) ($5) ($3.6) ($10) ($10) ($7.8) ($10.9) ($10.5) ($12.1) ($15) ($15) ($13.9) ($20) ($20) 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 2.2% 3.0% 2.7% (9.2)% (
Slide 11: Full-Year Net Sales
2023 Full-Year Net Sales $ Millions $900 $796.2 $800 $711.6 $700 $621.1 $598.6 $600 $515.9 $500 $400 $300 $200 $100 $0 2019 2020 2021 2022 2023 YoY % Change: (14)% 20% 28% (11)% 11
Slide 12: Full-Year Toys/Consumer Products Net Sales
2023 Full-Year Toys/Consumer Products Net Sales $ Millions $700 $647.3 $600 $580.7 $513.5 $500 $479.0 $427.2 $400 $300 $200 $100 $0 2019 2020 2021 2022 2023 YoY % Change: (11)% 20% 26% (10)% 12
Slide 13: Full-Year Toys/Consumer Products Net Sales (NA and International)
2023 Full-Year Toys/Consumer Products Net Sales $ Millions NA TOY/CP INTL TOY/CP $600 $120 $109.0 $111.8 $538.3 $500 $468.8 $100 $94.5 $428.5 $85.0 $400 $384.6 $80 $355.3 $71.8 $300 $60 $200 $40 $100 $20 $0 $0 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 (8)% 21% 26% (13)% (24)% 18% 28% 3% YoY
Slide 14: Full-Year Costumes Net Sales
2023 Full-Year Costumes Net Sales $ Millions $175 $148.9 $150 $130.9 $125 $119.6 $107.6 $100 $88.7 $75 $50 $25 $0 2019 2020 2021 2022 2023 YoY % Change: (26%) 21% 38% (12%) 14
Slide 15: Full-Year Gross Margin %
2023 Full-Year Gross Margin % 35.0% 31.4% 29.5% 30.0% 29.0% 26.6% 26.5% 25.0% 20.0% 15.0% 2019 2020 2021 2022 2023 YoY % Change: 240 bps 50 bps (300) bps 490 bps 15
Slide 16: Full-Year Adj. EBITDA and Adj. Net Income (non-GAAP)
2023 Full-Year Adj. EBITDA and Adj. Net Income (non-GAAP) $ Millions FY ADJ EBITDA FY ADJ NET INCOME $100 $60 $48.9 $43.6 $80 $76.4 $75.7 $40 $23.6 $60 $20 $49.2 $40 $0 $28.1 ($6.3) $18.9 $20 ($20) ($18.9) $0 ($40) 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 3.2% 5.5% 7.9% 9.6% 10.6% (3.2)% (1
Slide 17: Fourth Quarter Inventory - 2023 vs 2022 (Worldwide)
Fourth Quarter Inventory - 2023 vs 2022 (Worldwide) $ Millions $100 $80.6M $4.9 $75 $52.6M $50 $4.8 $75.7 $25 $47.8 $0 2022 2023 In-Transit to Warehouse Inventory less In-Transit 17
Slide 18: 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% 7.9% $80 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 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 202
Slide 19: BLACK+DECKER
BLACK+ DECKER |
Slide 20: Thank You
Jakks) THANK YOU
Slide 21: Supplemental Financial Information
Supplemental Financial Information 21
Slide 22: Condensed Consolidated Statements of Operations (Unaudited)
JAKKS Pacific, Inc. and Subsidiaries Condensed Consolidated Statements of Operations (Unaudited) Three Months Ended December 31, Twelve Months Ended December 31, 2023 2022 Δ (% ) 2023 2022 Δ (% ) (In thousands, except per share data) (In thousands, except per share data) Net sales $ 127,396 $ 131,88
Slide 23: Condensed Consolidated Balance Sheets (Unaudited)
JAKKS Pacific, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (Unaudited) December 31, 2023 2022 (In thousands) Assets Current assets: Cash and cash equivalents $ 72,350 $ 85,297 Restricted cash 204 193 Accounts receivable, net 123,797 102,771 Inventory 52,647 80,619 Prepaid expenses an
Slide 24: Supplemental Balance Sheet and Cash Flow Data (Unaudited)
Supplemental Balance Sheet and Cash Flow Data (Unaudited) December 31, Key Balance Sheet Data: 2023 2022 Accounts receivable days sales outstanding (DSO) 89 72 Inventory turnover (DSI) 52 72 Twelve Months Ended December 31, Condensed Cash Flow Data: 2023 2022 Cash flows provided by operating activit
Slide 25: 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 December 31, Twelve Months Ended December 31, 2023 2022 Δ ($) 2023 2022 Δ ($) (In thousands) (In thousands) EBITDA and Adjusted EBITDA Net income $ (10,872) $ 38,109 $ (48,981) $ 38,1
Slide 26: Reconciliation of Non-GAAP Financial Information: 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, 2023 2022 Δ ($) 2023 2022 Δ ($) (In thousands, except per share data) (In thousands, except per share data) Adjusted net income (loss) at
Slide 27: 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) FY % Change % Change % Change % Change Divisions 2023 2022 2021 2023 v 2022 2022 v 2021 Divisions 2023 2022 2021 2023 v 2022 2022 v 2021 Toys/Consumer Products $118,855 $117,727 $179
Slide 28: Strong, Evergreen Base of Business
Strong, Evergreen Base of Business $900 Net Sales $796 ($ Million) $800 $712 $700 $215 $621 Content-led Action $145 Play, Dolls, Role-Play $600 $516 $79 $500 $92 $400 $382 $395 Evergreen Action Play, $359 Dolls, Role-Play $300 $263 $581 $567 $541 $200 $423 $108 $149 $100 $89 $131 Costumes $71 $75 Ou