Jakks Pacific, Inc. · NASDAQ:JAKK
Jakks Pacific — Q3 2021 Earnings Presentation
19 slides from Jakks Pacific's earnings presentation, Oct 27, 2021
Slide 1: Third Quarter 2021 Earnings Conference Call Presentation
Third Quarter 2021 Earnings Conference Call Presentation October 27, 2021, 5:00 PM Eastern Time Participant Dial in: 1(833) 423-0496 International Dial in: 1(918) 922-2390 Conference ID: 2148429 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 2021, as well as any other forward-looking statements concerning 2021 and beyond are subject
Slide 4: CEO Overview
CEO OVERVIEW Pleased With Performance In the Third Quarter • Year-to-date Operating Income is over $35 million, highest level since 2015 • Year-to-date Adjusted EBITDA of $44.2 million, up over 80% compared to first three quarters of last year • Third Quarter Adjusted EBITDA was $41.7 million, or $1
Slide 5: CEO Overview (continued)
CEO OVERVIEW (continued) Strong Sales Across Core Business Categories • Total Third Quarter sales down 2%; Toy/CP sales were down 8% – customer orders outpaced their ability to secure ocean passage for their FOB shipments – extended domestic importation timeline also a factor – logistical challenges
Slide 6: 2021 Q3 Net Sales
2021 Q3 Net Sales $ Millions Q3 Net Sales $300 $242.3 $237.0 $200 $100 $- 2020 2021 YoY % Change: (2%) 7
Slide 7: 2021 Third Quarter Toy/CP Net Sales
2021 Third Quarter Toy/CP Net Sales $ Millions Toy/CP Q3 Net Sales $250 204.3 $200 187.3 173.0 $150 $100 $50 $- 2019 2020 2021 YoY % Change: (8%) (8%) 9
Slide 8: 2021 Third Quarter Toy/CP Net Sales
2021 Third Quarter Toy/CP Net Sales $ Millions North America Q3 Net Sales International Q3 Net Sales $200 $50 165.1 158.0 39.3 145.6 $40 $150 29.3 27.3 $30 $100 $20 $50 $10 $- $- 2019 2020 2021 2019 2020 2021 YoY % Change: (4%) (8%) (25%) (7%) 9
Slide 9: 2021 Third Quarter Costume Net Sales
2021 Third Quarter Costume Net Sales $ Millions Costume Q3 Net Sales $100 $80 75.8 64.0 $60 55.0 $40 $20 $- 2019 2020 2021 YoY % Change: (27%) 16% 9
Slide 10: 2021 Third Quarter Gross Margin %
2021 Third Quarter Gross Margin % Q3 Gross Margin % 40% 30.8% 31.6% 30% 28.9% 20% 10% 0% 2019 2020 2021 +190 bps +82 bps 11
Slide 11: 2021 Third Quarter Adj. EBITDA and Adj. Net Income
2021 Third Quarter Adj. EBITDA and Adj. Net Income $ Millions Adj EBITDA as % of Net Sales Q3 Adj EBITDA Q3 Adj Net Income $50 $50 $42.7 $41.7 $40 $40 $34.2 $32.6 $30 $30 $20 $20 $10 $10 $- $- 2020 2021 2020 2021 17.6% 17.6% Adj. EBITDA Margin % 12
Slide 12: CEO Outlook: Four Key Attributes to JAKKS Growth
CEO OUTLOOK Four Key Attributes to JAKKS Growth • Innovation within categories to maintain freshness and relevance • Addition of relevant brands – new and existing IP – and licensor relationships • Geographic expansion to reach the rapidly expanding global toy market • Migration into adjacent catego
Slide 13: CEO Outlook
CEO OUTLOOK Disney • Princess Style Collection Boys • Nintendo® – Super Mario™ • Sonic the Hedgehog™ Disguise Costumes • 2021 Halloween on Sunday • Disney EMEA 14
Slide 14: CEO Outlook Conclusion
CEO OUTLOOK Conclusion • Expanding direct selling capabilities Internationally • Great Halloween season setting up for an even better 2022 • Continue to add additional licenses to our Costume business • Thanks to our incredible team! 15
Slide 15: Thank You
THANK YOU ce lll
Slide 16: Supplemental Financial Information
Supplemental Financial Information 17
Slide 17: Condensed Consolidated Statements of Operations (Unaudited)
JAKKS Pacific, Inc. and Subsidiaries Condensed Consolidated Statements of Operations (Unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (In thousands, except per share data) (In thousands, except per share data) Net sales $ 236,957 $ 242,290 $ 433,152 $
Slide 18: Condensed Consolidated Balance Sheets
JAKKS Pacific, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (In thousands) (Unaudited) September 30, December 31, 2021 2020 2020 ASSETS Current assets: Cash and cash equivalents $ 25,897 $ 75,189 $ 87,953 Restricted cash 808 4,631 4,740 Accounts receivable, net 209,190 166,789 102,254
Slide 19: Reconciliation of Non-GAAP Financial Information (Unaudited)
JAKKS Pacific, Inc. and Subsidiaries Reconciliation of Non-GAAP Financial Information (Unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (In thousands, except per share data) (In thousands, except per share data) EBITDA and Adjusted EBITDA Net income (lo