Sales through September 30, 2022 exceeded full-year 2021 sales levels
JAKKS Pacific, Inc. (NASDAQ: JAKK) today reported financial results for the third quarter ended September 30, 2022.
Third Quarter 2022 Overview
-
Net sales were $323.0 million, a year-over-year increase of 36%
- Toys/Consumer Products were $269.6 million, a year-over-year increase of 56%
-
Costumes were $53.4 million, a year-over-year decrease of 17%
- Costumes year-to-date are $134.7 million, a 36% increase over 2021
- Year-to-date net sales were $664.3 million, which exceeded full year 2021 net sales of $621.1 million
- Gross margin of 28.5%, down 310 basis points vs. Q3 2021
-
Operating income of $53.7 million (16.7% of net sales) in Q3 2022 vs. $36.7 million (15.5% of net sales) in Q3 2021
- Year-to-date operating income of $76.7 million (11.6% of net sales) vs. $35.8 million (8.3% of net sales) for comparable period in 2021
- Net income attributable to common stockholders of $30.3 million or $2.96 per diluted share, compared to net income attributable to common stockholders of $36.0 million or $3.97 per diluted share in Q3 2021
- Adjusted net income attributable to common stockholders (a non-GAAP measure) of $39.0 million or $3.80 per diluted share, compared to adjusted net income attributable to common stockholders of $34.2 million or $3.76 per diluted share in Q3 2021
- Adjusted EBITDA (a non-GAAP measure) of $59.4 million vs. $41.7 million in Q3 2021
Management Commentary
“We continued to see strong retail sell-thru for our product throughout the third quarter,” said Stephen Berman, CEO of JAKKS Pacific. “Our top three toy accounts in the US sustained point of sale results in the high teens in Q3 as we head into the all-important fourth quarter. By leaning into our heritage as an FOB-first company, we’ve managed to ship more of our product earlier in the year to avoid excessive supply-chain expenses and mitigate out-of-stock risks at retail. As a result, our customers are ready for the holiday season with a great range of product and promotional plans. We are on track to deliver full-year 2022 revenue growth around 20% vs. prior year for the second year in a row, which are exceptional results that the team and I are very proud of.
“In addition to the strength in our toy segment, our costume business is also performing at a very high level. We have already shipped 25% more costumes this year than the amount we shipped in all of 2021. Q3 2022 Disguise costumes sales were down compared to Q3 2021 as Halloween customers ordered product earlier this year. We are on track for our biggest year with Disguise since JAKKS acquired the company in 2008, and we are also excited about that momentum continuing into 2023.
“We have been clear about our desire to reduce our long-term debt and cash interest expense. To that end, based on our strong performance and near-term outlook we decided to make an optional $17.5 million principal pay-down of our term loan this past quarter. This brings our year-to-date principal payments to $29.0 million, or 29% of our balance as of January 1st of this year, and results in a principal balance of $69.5 million.”
Third Quarter 2022 Results
Net sales for the third quarter of 2022 were $323.0 million, up 36% versus $237.0 million last year. The Toys/Consumer Products segment sales were up 56% globally (50% North America; 85% International) and as noted sales of Disguise costumes were down 17% compared to last year (-23% North America; 144% International) as Halloween customers ordered product earlier this year than the traditional seasonality.
Year-to-date Toys/Consumer Products sales were up 58% over the comparable 2021 period. Year-to-date the Costumes segment was up 36% over the comparable 2021 period.
Year-to-date adjusted net income attributable to common stockholders was $57.5 million ($5.68 per diluted share), compared to $22.3 million ($3.15 per diluted share) in the first nine months of 2021. Year-to-date adjusted EBITDA of $88.5 million (13.3% of net sales), was double the $44.2 million (10.2% of net sales) in the comparable 2021 period.
Balance Sheet Highlights
The Company’s cash and cash equivalents (including restricted cash) totaled $76.6 million as of September 30, 2022 compared to $26.7 million as of September 30, 2021, and $45.3 million as of December 31, 2021.
Total debt was $67.7 million net of unamortized discounts and issuance costs, compared to $95.8 million as of September 30, 2021, and $95.5 million as of December 31, 2021. Total debt includes the amount outstanding under the Company's term loan, net of unamortized discounts and issuance costs.
Inventory levels are down from prior quarter but remain elevated, totaling $109.2 million, of which $20.5 million was in-transit to our distribution centers, compared to $123.7 million in total inventory as of June 30, 2022 and $89.8 million in total inventory as of September 30, 2021.
Use of Non-GAAP Financial Information
In addition to the preliminary results reported in accordance with U.S. GAAP included in this release, the Company has provided certain non-GAAP financial information including Adjusted EBITDA which is a non-GAAP metric that excludes various items that are detailed in the financial tables and accompanying footnotes reconciling GAAP to non-GAAP results contained in this release. Management believes that the presentation of these non-GAAP financial measures provides useful information to investors because the information may allow investors to better evaluate ongoing business performance and certain components of the Company’s results. In addition, the Company believes that the presentation of these financial measures enhances an investor’s ability to make period-to-period comparisons of the Company’s operating results. This information should be considered in addition to the results presented in accordance with GAAP, and should not be considered a substitute for the GAAP results. The Company has reconciled the non-GAAP financial information included in this release to the nearest GAAP measures. See the attached “Reconciliation of Non-GAAP Financial Information.” “Total liquidity” is calculated as cash and cash equivalents, plus availability under the Company’s $67.5 million revolving credit facility.
Conference Call Live Webcast
JAKKS Pacific, Inc. invites analysts, investors and media to listen to the teleconference scheduled for 5:00 p.m. ET / 2:00 p.m. PT on October 27, 2022. A live webcast of the call will be available on the “Investor Relations” page of the Company’s website at www.jakks.com/investors. To access the call by phone, please go to this link (Registration Link), and you will be provided with dial in details. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the scheduled start time. A replay of the webcast will also be available for a limited time at (www.jakks.com/investors).
About JAKKS Pacific, Inc.
JAKKS Pacific, Inc. is a leading designer, manufacturer and marketer of toys and consumer products sold throughout the world, with its headquarters in Santa Monica, California. JAKKS Pacific’s popular proprietary brands include: Creepy Crawlers®, Fly Wheel®, Perfectly Cute®, ReDo Skateboard Co.®, WeeeDo™, Xtreme Power®, Disguise®, Maui®, Moose Mountain®, Kids Only!®, Eyeclops®; a wide range of entertainment-inspired products featuring premier licensed properties; and C’est Moi®, a New Generation of Clean Beauty®. Through JAKKS Cares, the company’s commitment to philanthropy, JAKKS is helping to make a positive impact on the lives of children. Visit us at www.jakks.com and follow us on Instagram (@jakkstoys), Twitter (@jakkstoys) and Facebook (JAKKS Pacific).
Forward Looking Statements
This press release may contain “forward-looking statements” (within the meaning of the Private Securities Litigation Reform Act of 1995) that are based on current expectations, estimates and projections about JAKKS Pacific's business based partly on assumptions made by its management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such statements due to numerous factors, including, but not limited to, those described above, changes in demand for JAKKS Pacific's products, product mix, the timing of customer orders and deliveries, the impact of competitive products and pricing, or that the Recapitalization transaction or any future transactions will result in future growth or success of JAKKS. The “forward-looking statements” contained herein speak only as of the date on which they are made, and JAKKS undertakes no obligation to update any of them to reflect events or circumstances after the date of this release.
JAKKS Pacific, Inc. and Subsidiaries | |||||||||||
Condensed Consolidated Balance Sheets (Unaudited) | |||||||||||
September 30, |
|
December 31, |
|||||||||
2022 |
|
2021 |
|
2021 |
|||||||
(In thousands) | |||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ |
76,418 |
|
$ |
25,897 |
|
$ |
44,521 |
|
||
Restricted cash |
|
178 |
|
|
808 |
|
|
811 |
|
||
Accounts receivable, net |
|
204,856 |
|
|
209,190 |
|
|
147,394 |
|
||
Inventory |
|
109,171 |
|
|
89,796 |
|
|
83,954 |
|
||
Prepaid expenses and other assets |
|
11,124 |
|
|
12,370 |
|
|
10,877 |
|
||
Total current assets |
|
401,747 |
|
|
338,061 |
|
|
287,557 |
|
||
Property and equipment |
|
131,918 |
|
|
120,910 |
|
|
121,945 |
|
||
Less accumulated depreciation and amortization |
|
116,558 |
|
|
108,125 |
|
|
108,796 |
|
||
Property and equipment, net |
|
15,360 |
|
|
12,785 |
|
|
13,149 |
|
||
Operating lease right-of-use assets, net |
|
22,154 |
|
|
18,535 |
|
|
16,950 |
|
||
Goodwill |
|
35,083 |
|
|
35,083 |
|
|
35,083 |
|
||
Intangibles and other assets, net |
|
2,770 |
|
|
4,644 |
|
|
4,308 |
|
||
Total assets | $ |
477,114 |
|
$ |
409,108 |
|
$ |
357,047 |
|
||
Liabilities, Preferred Stock and Stockholders' Equity | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ |
77,126 |
|
$ |
77,690 |
|
$ |
50,237 |
|
||
Accounts payable - Meisheng (related party) |
|
28,301 |
|
|
27,581 |
|
|
15,894 |
|
||
Accrued expenses |
|
74,223 |
|
|
58,180 |
|
|
47,071 |
|
||
Reserve for sales returns and allowances |
|
59,216 |
|
|
47,691 |
|
|
46,285 |
|
||
Income taxes payable |
|
14,084 |
|
|
635 |
|
|
1,004 |
|
||
Short term operating lease liabilities |
|
10,515 |
|
|
10,407 |
|
|
10,477 |
|
||
Short term debt, net |
|
2,475 |
|
|
1,914 |
|
|
2,104 |
|
||
Total current liabilities |
|
265,940 |
|
|
224,098 |
|
|
173,072 |
|
||
Long term operating lease liabilities |
|
12,555 |
|
|
9,947 |
|
|
8,039 |
|
||
Debt, non-current portion, net |
|
65,195 |
|
|
93,896 |
|
|
93,415 |
|
||
Preferred stock derivative liability |
|
23,347 |
|
|
17,075 |
|
|
21,282 |
|
||
Income taxes payable |
|
66 |
|
|
215 |
|
|
215 |
|
||
Deferred income taxes, net |
|
53 |
|
|
123 |
|
|
51 |
|
||
Total liabilities |
|
367,156 |
|
|
345,354 |
|
|
296,074 |
|
||
Preferred stock accrued dividends |
|
4,128 |
|
|
2,733 |
|
|
3,074 |
|
||
Stockholders' equity: | |||||||||||
Common stock, $.001 par value |
|
10 |
|
|
9 |
|
|
10 |
|
||
Additional paid-in capital |
|
274,040 |
|
|
272,568 |
|
|
272,941 |
|
||
Accumulated deficit |
|
(149,987 |
) |
|
(200,259 |
) |
|
(203,431 |
) |
||
Accumulated other comprehensive loss |
|
(18,594 |
) |
|
(12,609 |
) |
|
(12,952 |
) |
||
Total JAKKS Pacific, Inc. stockholders' equity |
|
105,469 |
|
|
59,709 |
|
|
56,568 |
|
||
Non-controlling interests |
|
361 |
|
|
1,312 |
|
|
1,331 |
|
||
Total stockholders' equity |
|
105,830 |
|
|
61,021 |
|
|
57,899 |
|
||
Total liabilities, preferred stock and stockholders' equity | $ |
477,114 |
|
$ |
409,108 |
|
$ |
357,047 |
|
||
Supplemental Balance Sheet and Cash Flow Data (Unaudited) | |||||||||||
September 30, |
|||||||||||
Key Balance Sheet Data: | 2022 |
|
2021 |
||||||||
Accounts receivable days sales outstanding (DSO) |
|
58 |
|
|
81 |
|
|||||
Inventory turnover (DSI) |
|
44 |
|
|
51 |
|
|||||
Nine Months Ended September 30, | |||||||||||
Condensed Cash Flow Data: | 2022 |
2021 |
|||||||||
(In thousands) | |||||||||||
Cash flows provided by (used in) operating activities | $ |
75,793 |
|
$ |
(26,942 |
) |
|||||
Cash flows used in investing activities |
|
(8,619 |
) |
|
(6,343 |
) |
|||||
Cash flows used in financing activities and other |
|
(35,910 |
) |
|
(32,703 |
) |
|||||
Increase/(decrease) in cash, cash equivalents and restricted cash | $ |
31,264 |
|
$ |
(65,988 |
) |
|||||
Capital expenditures | $ |
(8,621 |
) |
$ |
(6,375 |
) |
JAKKS Pacific, Inc. and Subsidiaries |
|||||||||||||||||||||||
Condensed Consolidated Statements of Operations (Unaudited) |
|||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2022 |
2021 |
Δ (%) | 2022 |
2021 |
Δ (%) | ||||||||||||||||||
(In thousands, except per share data) | (In thousands, except per share data) | ||||||||||||||||||||||
Net sales | $ |
322,998 |
|
$ |
236,957 |
|
36 |
|
% |
$ |
664,301 |
|
$ |
433,152 |
|
53 |
|
% |
|||||
Less: Cost of sales | |||||||||||||||||||||||
Cost of goods |
|
174,334 |
|
|
126,095 |
|
38 |
|
|
368,242 |
|
|
231,633 |
|
59 |
|
|||||||
Royalty expense |
|
52,868 |
|
|
32,251 |
|
64 |
|
|
106,262 |
|
|
61,546 |
|
73 |
|
|||||||
Amortization of tools and molds |
|
3,885 |
|
|
3,687 |
|
5 |
|
|
7,079 |
|
|
7,058 |
|
0 |
|
|||||||
Cost of sales |
|
231,087 |
|
|
162,033 |
|
43 |
|
|
481,583 |
|
|
300,237 |
|
60 |
|
|||||||
Gross profit |
|
91,911 |
|
|
74,924 |
|
23 |
|
|
182,718 |
|
|
132,915 |
|
37 |
|
|||||||
Direct selling expenses |
|
8,397 |
|
|
10,729 |
|
(22 |
) |
|
20,137 |
|
|
23,817 |
|
(15 |
) |
|||||||
General and administrative expenses |
|
29,400 |
|
|
26,846 |
|
10 |
|
|
84,067 |
|
|
71,450 |
|
18 |
|
|||||||
Depreciation and amortization |
|
373 |
|
|
606 |
|
(38 |
) |
|
1,547 |
|
|
1,807 |
|
(14 |
) |
|||||||
Selling, general and administrative expenses |
|
38,170 |
|
|
38,181 |
|
(0 |
) |
|
105,751 |
|
|
97,074 |
|
9 |
|
|||||||
Intangibles impairment |
|
- |
|
|
- |
|
nm |
|
300 |
|
|
- |
|
nm |
|||||||||
Income from operations |
|
53,741 |
|
|
36,743 |
|
46 |
|
|
76,667 |
|
|
35,841 |
|
114 |
|
|||||||
Other income (expense): | |||||||||||||||||||||||
Other income (expense), net |
|
251 |
|
|
129 |
|
95 |
|
|
520 |
|
|
256 |
|
103 |
|
|||||||
Change in fair value of convertible senior notes |
|
- |
|
|
(3,651 |
) |
(100 |
) |
|
- |
|
|
(16,495 |
) |
(100 |
) |
|||||||
Change in fair value of preferred stock derivative liability |
|
(7,449 |
) |
|
(99 |
) |
nm |
|
(2,065 |
) |
|
(9,013 |
) |
(77 |
) |
||||||||
Gain on loan forgiveness |
|
- |
|
|
6,206 |
|
(100 |
) |
|
- |
|
|
6,206 |
|
(100 |
) |
|||||||
Loss on debt extinguishment |
|
- |
|
|
- |
|
- |
|
|
- |
|
|
(7,351 |
) |
(100 |
) |
|||||||
Interest income |
|
55 |
|
|
4 |
|
nm |
|
64 |
|
|
10 |
|
nm |
|||||||||
Interest expense |
|
(4,350 |
) |
|
(2,658 |
) |
64 |
|
|
(8,889 |
) |
|
(11,903 |
) |
(25 |
) |
|||||||
Income (loss) before provision for income taxes |
|
42,248 |
|
|
36,674 |
|
15 |
|
|
66,297 |
|
|
(2,449 |
) |
nm |
||||||||
Provision for income taxes |
|
11,572 |
|
|
298 |
|
nm |
|
13,323 |
|
|
286 |
|
nm |
|||||||||
Net income (loss) |
|
30,676 |
|
|
36,376 |
|
(16 |
) |
|
52,974 |
|
|
(2,735 |
) |
nm |
||||||||
Net income (loss) attributable to non-controlling interests |
|
(17 |
) |
|
42 |
|
nm |
|
(470 |
) |
|
101 |
|
nm |
|||||||||
Net income (loss) attributable to JAKKS Pacific, Inc. | $ |
30,693 |
|
$ |
36,334 |
|
(16 |
) |
% |
$ |
53,444 |
|
$ |
(2,836 |
) |
nm |
% | ||||||
Net income (loss) attributable to common stockholders | $ |
30,336 |
|
$ |
35,998 |
|
(16 |
) |
% |
$ |
52,390 |
|
$ |
(3,829 |
) |
nm |
% | ||||||
Earnings (loss) per share - basic | $ |
3.13 |
|
$ |
4.08 |
|
$ |
5.44 |
|
$ |
(0.56 |
) |
|||||||||||
Shares used in earnings (loss) per share - basic |
|
9,695 |
|
|
8,823 |
|
|
9,624 |
|
|
6,820 |
|
|||||||||||
Earnings (loss) per share - diluted | $ |
2.96 |
|
$ |
3.97 |
|
$ |
5.18 |
|
$ |
(0.56 |
) |
|||||||||||
Shares used in earnings (loss) per share - diluted |
|
10,260 |
|
|
9,073 |
|
|
10,111 |
|
|
6,820 |
|
|||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2022 |
2021 |
Δ bps | 2022 |
2021 |
Δ bps | ||||||||||||||||||
Fav/(Unfav) | Fav/(Unfav) | ||||||||||||||||||||||
Net sales |
|
100.0 |
|
% |
|
100.0 |
|
% |
- |
|
|
100.0 |
|
% |
|
100.0 |
|
% |
- |
|
|||
Less: Cost of sales | |||||||||||||||||||||||
Cost of goods |
|
54.0 |
|
|
53.2 |
|
(80 |
) |
|
55.4 |
|
|
53.4 |
|
(200 |
) |
|||||||
Royalty expense |
|
16.3 |
|
|
13.6 |
|
(270 |
) |
|
16.0 |
|
|
14.3 |
|
(170 |
) |
|||||||
Amortization of tools and molds |
|
1.2 |
|
|
1.6 |
|
40 |
|
|
1.1 |
|
|
1.6 |
|
50 |
|
|||||||
Cost of sales |
|
71.5 |
|
|
68.4 |
|
(310 |
) |
|
72.5 |
|
|
69.3 |
|
(320 |
) |
|||||||
Gross profit |
|
28.5 |
|
|
31.6 |
|
(310 |
) |
|
27.5 |
|
|
30.7 |
|
(320 |
) |
|||||||
Direct selling expenses |
|
2.6 |
|
|
4.5 |
|
190 |
|
|
3.0 |
|
|
5.5 |
|
250 |
|
|||||||
General and administrative expenses |
|
9.1 |
|
|
11.3 |
|
220 |
|
|
12.7 |
|
|
16.5 |
|
380 |
|
|||||||
Depreciation and amortization |
|
0.1 |
|
|
0.3 |
|
20 |
|
|
0.2 |
|
|
0.4 |
|
20 |
|
|||||||
Selling, general and administrative expenses |
|
11.8 |
|
|
16.1 |
|
430 |
|
|
15.9 |
|
|
22.4 |
|
650 |
|
|||||||
Intangibles impairment |
|
- |
|
|
- |
|
- |
|
|
- |
|
|
- |
|
- |
|
|||||||
Income from operations |
|
16.7 |
|
|
15.5 |
|
120 |
|
|
11.6 |
|
|
8.3 |
|
330 |
|
|||||||
Other income (expense): | |||||||||||||||||||||||
Other income (expense), net |
|
0.1 |
|
|
- |
|
|
- |
|
|
- |
|
|||||||||||
Change in fair value of convertible senior notes |
|
- |
|
|
(1.5 |
) |
|
- |
|
|
(3.8 |
) |
|||||||||||
Change in fair value of preferred stock derivative liability |
|
(2.3 |
) |
|
- |
|
|
(0.3 |
) |
|
(2.1 |
) |
|||||||||||
Gain on loan forgiveness |
|
- |
|
|
2.6 |
|
|
- |
|
|
1.4 |
|
|||||||||||
Loss on debt extinguishment |
|
- |
|
|
- |
|
|
- |
|
|
(1.7 |
) |
|||||||||||
Interest income |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|||||||||||
Interest expense |
|
(1.4 |
) |
|
(1.1 |
) |
|
(1.3 |
) |
|
(2.7 |
) |
|||||||||||
Income (loss) before provision for income taxes |
|
13.1 |
|
|
15.5 |
|
|
10.0 |
|
|
(0.6 |
) |
|||||||||||
Provision for income taxes |
|
3.6 |
|
|
0.1 |
|
|
2.0 |
|
|
0.1 |
|
|||||||||||
Net income (loss) |
|
9.5 |
|
|
15.4 |
|
|
8.0 |
|
|
(0.7 |
) |
|||||||||||
Net income (loss) attributable to non-controlling interests |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|||||||||||
Net income (loss) attributable to JAKKS Pacific, Inc. |
|
9.5 |
|
% |
|
15.4 |
|
% |
|
8.0 |
|
% |
|
(0.7 |
) |
% |
|||||||
Net income (loss) attributable to common stockholders |
|
9.4 |
|
% |
|
15.2 |
|
% |
|
7.9 |
|
% |
|
(0.9 |
) |
% |
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 non-GAAP financial measures under the rules of the Securities and Exchange Commission. The non-GAAP financial measures included in the press release are reconciled to the corresponding GAAP financial measures below, as required under the rules of the Securities and Exchange Commission regarding the use of non-GAAP financial measures. We define Adjusted EBITDA as income (loss) from operations before depreciation, amortization and adjusted for certain non-recurring and non-cash charges, such as reorganization expenses and restricted stock compensation expense. Net income (loss) is similarly adjusted and tax-effected to arrive at Adjusted Net Income (Loss). Adjusted EBITDA and Adjusted Net Income (Loss) are not recognized financial measures under GAAP, but we believe that they are useful in measuring our operating performance. We believe that the use of the non-GAAP financial measures enhances an overall understanding of the Company’s past financial performance, and provides useful information to the investor by comparing our performance across reporting periods on a consistent basis.
Investors should not consider these measures in isolation or as a substitute for net income, operating income, or any other measure for determining the Company’s operating performance that is calculated in accordance with GAAP. In addition, because these measures are not calculated in accordance with GAAP, they may not necessarily be comparable to similarly titled measures employed by other companies.
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||
2022 |
2021 |
Δ ($) | 2022 |
2021 |
Δ ($) | ||||||||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||||||||||
EBITDA and Adjusted EBITDA | |||||||||||||||||||||||||
Net income (loss) | $ |
30,676 |
|
$ |
36,376 |
|
$ |
(5,700 |
) |
$ |
52,974 |
|
$ |
(2,735 |
) |
$ |
55,709 |
|
|||||||
Interest expense |
|
4,350 |
|
|
2,658 |
|
|
1,692 |
|
|
8,889 |
|
|
11,903 |
|
|
(3,014 |
) |
|||||||
Interest income |
|
(55 |
) |
|
(4 |
) |
|
(51 |
) |
|
(64 |
) |
|
(10 |
) |
|
(54 |
) |
|||||||
Provision for income taxes |
|
11,572 |
|
|
298 |
|
|
11,274 |
|
|
13,323 |
|
|
286 |
|
|
13,037 |
|
|||||||
Depreciation and amortization |
|
4,258 |
|
|
4,293 |
|
|
(35 |
) |
|
8,626 |
|
|
8,865 |
|
|
(239 |
) |
|||||||
EBITDA |
|
50,801 |
|
|
43,621 |
|
|
7,180 |
|
|
83,748 |
|
|
18,309 |
|
|
65,439 |
|
|||||||
Adjustments: | |||||||||||||||||||||||||
Other (income) expense, net |
|
(251 |
) |
|
(129 |
) |
|
(122 |
) |
|
(520 |
) |
|
(256 |
) |
|
(264 |
) |
|||||||
Restricted stock compensation expense |
|
1,411 |
|
|
615 |
|
|
796 |
|
|
3,436 |
|
|
1,380 |
|
|
2,056 |
|
|||||||
Change in fair value of preferred stock derivative liability |
|
7,449 |
|
|
99 |
|
|
7,350 |
|
|
2,065 |
|
|
9,013 |
|
|
(6,948 |
) |
|||||||
Change in fair value of convertible senior notes |
|
- |
|
|
3,651 |
|
|
(3,651 |
) |
|
- |
|
|
16,495 |
|
|
(16,495 |
) |
|||||||
Employee Retention Credit/Gov't Employment Support |
|
- |
|
|
- |
|
|
- |
|
|
(249 |
) |
|
(1,900 |
) |
|
1,651 |
|
|||||||
Gain on loan forgiveness |
|
- |
|
|
(6,206 |
) |
|
6,206 |
|
|
- |
|
|
(6,206 |
) |
|
6,206 |
|
|||||||
Loss on debt extinguishment |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
7,351 |
|
|
(7,351 |
) |
|||||||
Adjusted EBITDA | $ |
59,410 |
|
$ |
41,651 |
|
$ |
17,759 |
|
$ |
88,480 |
|
$ |
44,186 |
|
$ |
44,294 |
|
|||||||
Adjusted EBITDA/Net sales % |
|
18.4 |
|
% |
|
17.6 |
|
% |
80 bps |
|
13.3 |
|
% |
|
10.2 |
|
% |
310 bps | |||||||
Trailing Twelve Months Ended September 30, | |||||||||||||||||||||||||
2022 |
2021 |
Δ ($) | |||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
TTM EBITDA and TTM Adjusted EBITDA | |||||||||||||||||||||||||
TTM Net income (loss) | $ |
49,821 |
|
$ |
(14,044 |
) |
$ |
63,865 |
|
||||||||||||||||
Interest expense |
|
11,090 |
|
|
16,809 |
|
|
(5,719 |
) |
||||||||||||||||
Interest income |
|
(67 |
) |
|
(12 |
) |
|
(55 |
) |
||||||||||||||||
Provision for income taxes |
|
13,263 |
|
|
740 |
|
|
12,523 |
|
||||||||||||||||
Depreciation and amortization |
|
10,012 |
|
|
10,809 |
|
|
(797 |
) |
||||||||||||||||
TTM EBITDA |
|
84,119 |
|
|
14,302 |
|
|
69,817 |
|
||||||||||||||||
Adjustments: | |||||||||||||||||||||||||
Other (income) expense, net |
|
(710 |
) |
|
(391 |
) |
|
(319 |
) |
||||||||||||||||
Restricted stock compensation expense |
|
4,149 |
|
|
2,177 |
|
|
1,972 |
|
||||||||||||||||
Change in fair value of convertible senior notes |
|
(76 |
) |
|
21,517 |
|
|
(21,593 |
) |
||||||||||||||||
Change in fair value of preferred stock derivative liability |
|
6,272 |
|
|
11,204 |
|
|
(4,932 |
) |
||||||||||||||||
Employee Retention Credit/Gov't Employment Support |
|
(249 |
) |
|
(1,900 |
) |
|
1,651 |
|
||||||||||||||||
Gain on loan forgiveness |
|
- |
|
|
(6,206 |
) |
|
6,206 |
|
||||||||||||||||
Loss on debt extinguishment |
|
- |
|
|
7,351 |
|
|
(7,351 |
) |
||||||||||||||||
TTM Adjusted EBITDA | $ |
93,505 |
|
|
48,054 |
|
$ |
45,451 |
|
||||||||||||||||
TTM Adjusted EBITDA/TTM Net sales % |
|
11.0 |
|
% |
|
8.6 |
|
% |
240 bps | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||
2022 |
2021 |
Δ ($) | 2022 |
2021 |
Δ ($) | ||||||||||||||||||||
(In thousands, except per share data) | (In thousands, except per share data) | ||||||||||||||||||||||||
Adjusted net income (loss) attributable to common stockholders | |||||||||||||||||||||||||
Net income (loss) attributable to common stockholders | $ |
30,336 |
|
$ |
35,998 |
|
$ |
(5,662 |
) |
$ |
52,390 |
|
$ |
(3,829 |
) |
$ |
56,219 |
|
|||||||
Restricted stock compensation expense |
|
1,411 |
|
|
615 |
|
|
796 |
|
|
3,436 |
|
|
1,380 |
|
|
2,056 |
|
|||||||
Change in fair value of preferred stock derivative liability |
|
7,449 |
|
|
99 |
|
|
7,350 |
|
|
2,065 |
|
|
9,013 |
|
|
(6,948 |
) |
|||||||
Change in fair value of convertible senior notes |
|
- |
|
|
3,651 |
|
|
(3,651 |
) |
|
- |
|
|
16,495 |
|
|
(16,495 |
) |
|||||||
Loss on debt extinguishment |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
7,351 |
|
|
(7,351 |
) |
|||||||
Gain on loan forgiveness |
|
- |
|
|
(6,206 |
) |
|
6,206 |
|
|
- |
|
|
(6,206 |
) |
|
6,206 |
|
|||||||
Employee Retention Credit/Gov't Employment Support |
|
- |
|
|
- |
|
|
- |
|
|
(249 |
) |
|
(1,900 |
) |
|
1,651 |
|
|||||||
2021 BSP Term Loan prepayment penalty |
|
525 |
|
|
- |
|
|
525 |
|
|
525 |
|
|
- |
|
|
525 |
|
|||||||
Tax impact of additional charges |
|
(697 |
) |
|
- |
|
|
(697 |
) |
|
(697 |
) |
|
- |
|
|
(697 |
) |
|||||||
Adjusted net income attributable to common stockholders | $ |
39,024 |
|
$ |
34,157 |
|
$ |
4,867 |
|
$ |
57,470 |
|
$ |
22,304 |
|
$ |
35,166 |
|
|||||||
Adjusted earnings per share - basic | $ |
4.03 |
|
$ |
3.87 |
|
$ |
0.15 |
|
$ |
5.97 |
|
$ |
3.27 |
|
$ |
2.70 |
|
|||||||
Shares used in adjusted earnings per share - basic |
|
9,695 |
|
|
8,823 |
|
|
872 |
|
|
9,624 |
|
|
6,820 |
|
|
2,804 |
|
|||||||
Adjusted earnings per share - diluted | $ |
3.80 |
|
$ |
3.76 |
|
$ |
0.04 |
|
$ |
5.68 |
|
$ |
3.15 |
|
$ |
2.53 |
|
|||||||
Shares used in adjusted earnings per share - diluted |
|
10,260 |
|
|
9,073 |
|
|
1,187 |
|
|
10,111 |
|
|
7,083 |
|
|
3,028 |
|
JAKKS Pacific, Inc. and Subsidiaries | |||||||||||||||||||||||||||||||||
Net Sales by Division and Geographic Region | |||||||||||||||||||||||||||||||||
(In thousands) | QTD Q3 | (In thousands) | YTD Q3 | ||||||||||||||||||||||||||||||
Divisions | 2022 |
|
2021 |
|
2020 |
% Change 2022 v 2021 |
% Change 2021 v 2020 |
Divisions | 2022 |
|
2021 |
|
2020 |
% Change 2022 v 2021 |
% Change 2021 v 2020 |
||||||||||||||||||
Toys/Consumer Products | $ |
269,607 |
$ |
172,952 |
$ |
187,309 |
55.9 |
% |
-7.7 |
% |
Toys/Consumer Products | $ |
529,590 |
$ |
334,365 |
$ |
306,088 |
58.4 |
% |
9.2 |
% |
||||||||||||
Dolls, Role-Play/Dress Up |
|
190,452 |
|
112,050 |
|
129,289 |
70.0 |
% |
-13.3 |
% |
Dolls, Role-Play/Dress Up |
|
354,644 |
|
206,483 |
|
202,184 |
71.8 |
% |
2.1 |
% |
||||||||||||
Action Play & Collectibles |
|
65,752 |
|
37,587 |
|
33,598 |
74.9 |
% |
11.9 |
% |
Action Play & Collectibles |
|
134,620 |
|
73,614 |
|
53,951 |
82.9 |
% |
36.4 |
% |
||||||||||||
Outdoor/Seasonal Toys |
|
13,403 |
|
23,315 |
|
24,422 |
-42.5 |
% |
-4.5 |
% |
Outdoor/Seasonal Toys |
|
40,326 |
|
54,268 |
|
49,953 |
-25.7 |
% |
8.6 |
% |
||||||||||||
Costumes |
|
53,391 |
|
64,005 |
|
54,981 |
-16.6 |
% |
16.4 |
% |
Costumes |
|
134,711 |
|
98,787 |
|
81,517 |
36.4 |
% |
21.2 |
% |
||||||||||||
Total | $ |
322,998 |
$ |
236,957 |
$ |
242,290 |
36.3 |
% |
-2.2 |
% |
Total | $ |
664,301 |
$ |
433,152 |
$ |
387,605 |
53.4 |
% |
11.8 |
% |
||||||||||||
(In thousands) | QTD Q3 | (In thousands) | YTD Q3 | ||||||||||||||||||||||||||||||
Regions | 2022 |
|
2021 |
|
2020 |
% Change 2022 v 2021 |
% Change 2021 v 2020 |
Regions | 2022 |
|
2021 |
|
2020 |
% Change 2022 v 2021 |
% Change 2021 v 2020 |
||||||||||||||||||
United States | $ |
253,854 |
$ |
199,136 |
$ |
202,303 |
27.5 |
% |
-1.6 |
% |
United States | $ |
543,388 |
$ |
363,317 |
$ |
320,998 |
49.6 |
% |
13.2 |
% |
||||||||||||
Europe |
|
38,075 |
|
20,836 |
|
21,045 |
82.7 |
% |
-1.0 |
% |
Europe |
|
65,911 |
|
38,103 |
|
34,424 |
73.0 |
% |
10.7 |
% |
||||||||||||
Canada |
|
12,804 |
|
8,094 |
|
9,523 |
58.2 |
% |
-15.0 |
% |
Canada |
|
21,720 |
|
12,403 |
|
14,555 |
75.1 |
% |
-14.8 |
% |
||||||||||||
Latin America |
|
9,504 |
|
4,503 |
|
4,504 |
111.1 |
% |
0.0 |
% |
Latin America |
|
15,712 |
|
8,123 |
|
6,586 |
93.4 |
% |
23.3 |
% |
||||||||||||
Asia |
|
4,294 |
|
2,635 |
|
2,744 |
63.0 |
% |
-4.0 |
% |
Asia |
|
8,733 |
|
6,214 |
|
5,976 |
40.5 |
% |
4.0 |
% |
||||||||||||
Australia & New Zealand |
|
3,941 |
|
1,490 |
|
1,936 |
164.5 |
% |
-23.0 |
% |
Australia & New Zealand |
|
7,014 |
|
3,927 |
|
4,269 |
78.6 |
% |
-8.0 |
% |
||||||||||||
Middle East & Africa |
|
526 |
|
263 |
|
235 |
100.0 |
% |
11.9 |
% |
Middle East & Africa |
|
1,823 |
|
1,065 |
|
797 |
71.2 |
% |
33.6 |
% |
||||||||||||
Total | $ |
322,998 |
$ |
236,957 |
$ |
242,290 |
36.3 |
% |
-2.2 |
% |
Total | $ |
664,301 |
$ |
433,152 |
$ |
387,605 |
53.4 |
% |
11.8 |
% |
||||||||||||
(In thousands) | QTD Q3 | (In thousands) | YTD Q3 | ||||||||||||||||||||||||||||||
Regions | 2022 |
|
2021 |
|
2020 |
% Change 2022 v 2021 |
% Change 2021 v 2020 |
Regions | 2022 |
|
2021 |
|
2020 |
% Change 2022 v 2021 |
% Change 2021 v 2020 |
||||||||||||||||||
North America | $ |
266,658 |
$ |
207,230 |
$ |
211,826 |
28.7 |
% |
-2.2 |
% |
North America | $ |
565,108 |
$ |
375,720 |
$ |
335,553 |
50.4 |
% |
12.0 |
% |
||||||||||||
International |
|
56,340 |
|
29,727 |
|
30,464 |
89.5 |
% |
-2.4 |
% |
International |
|
99,193 |
|
57,432 |
|
52,052 |
72.7 |
% |
10.3 |
% |
||||||||||||
Total | $ |
322,998 |
$ |
236,957 |
$ |
242,290 |
36.3 |
% |
-2.2 |
% |
Total | $ |
664,301 |
$ |
433,152 |
$ |
387,605 |
53.4 |
% |
11.8 |
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20221027005131/en/
Contacts
JAKKS Pacific Investor Relations
(424) 268-9567
Lucas Natalini
investors@jakks.net