Jakks Pacific, Inc. · NASDAQ:JAKK
Jakks Pacific — Q3 2023 Earnings Presentation
35 slides from Jakks Pacific's earnings presentation, Nov 1, 2023
Slide 1: Third Quarter 2023 Earnings Presentation
Third Quarter 2023 Earnings Presentation November 1, 2023 5:00 PM Eastern / 2:00 PM Pacific Webcast link 3Q23 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 2023, as well as any other forward-looking statements concerning 2023 and beyond are subject
Slide 4: Year-to-date Gross Margins above 32%, highest level since 2011
Year-to-date Gross Margins above 32%, highest level since 2011 • Q3 Results versus prior year – Net Sales were $309.7 million, a 4% decrease • Dolls, Role-Play/Dress Up down 27% • Action Play and Collectables up 43% • Outdoor/Seasonal Toys down 2% • Costumes up 19% – Gross margin of 34.5%, up 600bps
Slide 5: 2023 Third Quarter Net Sales
2023 Third Quarter Net Sales $ Millions YoY % Change: (14%) (2%) 36% (4%) 5
Slide 6: 2023 Third Quarter Toys/Consumer Products Net Sales
2023 Third Quarter Toys/Consumer Products Net Sales $ Millions YoY % Change: (8%) (8%) 56% (9%) 6
Slide 7: 2023 Third Quarter Toys/Consumer Products Net Sales
2023 Third Quarter Toys/Consumer Products Net Sales $ Millions (4%) (8%) 50% (10%) (25%) (7%) 85% (4%) YoY % Change YoY % Change 7
Slide 8: 2023 Third Quarter Costumes Net Sales
2023 Third Quarter Costumes Net Sales $ Millions YoY % Change: (28%) 16% (17%) 19% 8
Slide 9: 2023 Third Quarter Gross Margin %
2023 Third Quarter Gross Margin % YoY % Change: 190 bps 80 bps (310) bps 600 bps 9
Slide 10: 2023 Third Quarter Adj. EBITDA and Adj. Net Income
2023 Third Quarter Adj. EBITDA and Adj. Net Income $ Millions 15.8% 17.6% 17.6% 18.4% 21.7% 11.2% 13.5% 14.4% 12.1% 16.2% Adj. EBITDA Margin % Adj. Net Income Margin % 10
Slide 11: 2023 YTD Net Sales
2023 YTD Net Sales $ Millions YoY % Change: (13%) 12% 53% (12%) 11
Slide 12: 2023 YTD Toys/Consumer Products Net Sales
2023 YTD Toys/Consumer Products Net Sales $ Millions YoY % Change: (7%) 9% 58% (13%) 12
Slide 13: 2023 YTD Toys/Consumer Products Net Sales
2023 YTD Toys/Consumer Products Net Sales $ Millions (5%) 9% 57% (16%) (16%) 8% 65% 2% YoY % Change YoY % Change 13
Slide 14: 2023 YTD Costumes Net Sales
2023 YTD Costumes Net Sales $ Millions YoY % Change: (30%) 21% 36% (9%) 14
Slide 15: 2023 YTD Gross Margin %
2023 YTD Gross Margin % YoY % Change: 250 bps 290 bps (320) bps 500 bps 15
Slide 16: 2023 YTD Adj. EBITDA and Adj. Net Income
2023 YTD Adj. EBITDA and Adj. Net Income $ Millions 3.5% 6.3% 10.2% 13.3% 14.8% (2.5%) (0.7%) 5.1% 8.7% 10.2% Adj. EBITDA Margin % Adj. Net Income Margin % 16
Slide 17: Third Quarter Inventory - 2023 vs 2022 (Worldwide)
Third Quarter Inventory - 2023 vs 2022 (Worldwide) $ Millions $109.2M $68.8M 17
Slide 18: Trailing-Twelve-Month (TTM) Adjusted EBITDA
Trailing-Twelve-Month (TTM) Adjusted EBITDA $ Millions 18
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Slide 20: Target Shopping Cart and Cash Register
Target Shopping Cart and Cash Register 20
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Slide 25: Advent Calendars
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Slide 27: Looking ahead to 2024...
~ Gakks) Looking ahead to 2024... authentic
Slide 28: Thank You
Jakks) THANK YOU
Slide 29: Supplemental Financial Information
Supplemental Financial Information 29
Slide 30: Condensed Consolidated Statements of Operations (Unaudited)
4 akks) vs tn ‘Condensed Consolidated Statements of Operations (Unaudited) PACIFIC R 4 ‘Three Months Ended 30, Nine Months Ended 30, 2023 "2022 (a0) ‘2023 3023, Ao) Ga thousands. except per share data) Ga thousands, except per share data) Net cales s 309,788 S 322,098 we os Seiler S 664,301 02) 9% L
Slide 31: Condensed Consolidated Balance Sheets (Unaudited)
jakks PACIFIC ® JAKKS Pacific, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (Unaudited) a Assets Current assets: (Cash and cash equivalents Restricted cash Accounts recervable, net Inventory, Prepaid expenses and other assets ‘Total current assets 8,75 901,747 Property and equipment 1
Slide 32: Supplemental Balance Sheet and Cash Flow Data (Unaudited)
Supplemental Balance Sheet and Cash Flow Data (Unaudited) September 30, Key Balance Sheet Data: 2023 2022 Accounts receivable days sales outstanding (DSO) 61 58 Inventory turnover (DSI) 31 44 Nine Months Ended September 30, Condensed Cash Flow Data: 2023 2022 (In thousands) Cash flows provided by op
Slide 33: 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, 2023 2022 Δ ($) 2023 2022 Δ ($) (In thousands) (In thousands) EBITDA and Adjusted EBITDA Net income $ 48,121 $ 30,676 $ 17,445 $ 48,985 $
Slide 34: Reconciliation of Non-GAAP Financial Information (Unaudited)
JAKKS Pacific, Inc. and Subsidiaries Reconciliation of Non-GAAP Financial Information (Unaudited) Trailing Twelve Months Ended September 30, 2023 2022 Δ ($) (In thousands) TTM EBITDA and TTM Adjusted EBITDA TTM Net income $ 87,094 $ 49,821 $ 37,273 Interest expense 8,035 11,090 (3,055) Interest inco
Slide 35: 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, 2023 2022 Δ ($) 2023 2022 Δ ($) (In thousands, except per share data) (In thousands, except per share data) Adjusted net income (loss) at