JAKKS Pacific Reports Second Quarter 2022 Financial Results
Highest Q2 Net Sales and Operating Income in Company History
SANTA MONICA, Calif.--(BUSINESS WIRE)-- JAKKS Pacific, Inc. (NASDAQ: JAKK) today reported financial results for the second quarter ended June 30, 2022.
Second Quarter 2022 Overview
-
Net sales were $220.4 million, a year-over-year increase of 96.2%
- Toys/Consumer Products were $148.9 million, a year-over-year increase of 82.6%
- Costumes were $71.6 million, a year-over-year increase of 132.2%
- Gross margin of 27.6%, down 77 basis points vs. Q2 2021
- Operating income of $23.7 million (10.7% of net sales) vs. $1.8 million (1.6% of net sales) in Q2 2021
- Net income attributable to common stockholders of $26.2 million or $2.61 per diluted share, compared to a net loss attributable to common stockholders of $15.4 million or $2.48 per share in Q2 2021
- Adjusted net income attributable to common stockholders (a non-GAAP measure) of $21.1 million or $2.10 per diluted share, compared to an adjusted net loss attributable to common stockholders of $2.3 million or $0.38 per share in Q2 2021
- Adjusted EBITDA (a non-GAAP measure) of $27.1 million, vs. $5.0 million in Q2 2021
Management Commentary
“Our past quarter’s results are extremely gratifying,” said Stephen Berman, CEO of JAKKS Pacific. “The teams collaborated and executed at the highest level – chasing exceptional demand for our product, and relentlessly engaging with our manufacturers, customers and vendors to set everyone up for a great back-part of the year. We’re excited to continue to delight our consumers with a tremendous offering across our toy, consumer product and Halloween ranges, both on-shelf and on-line, and in the US and internationally.
“During the quarter we continued to see solid consumer demand across most of our major toy businesses, especially with Disney’s Encanto™ and Sega’s Sonic the Hedgehog®. Our Costume business shipped over $71 million, the highest Q2 shipment level since Disguise joined JAKKS in 2008. Despite the continuation of supply-chain cost pressures, we nonetheless recorded our first profitable second quarter in 10 years. We have also accelerated our importation of product to support the second half of the year and mitigate our traffic at the ports during the peak season.
“We’re pleased to share that we utilized some of the proceeds of our recent results to make an optional $10 million pay-down against our long-term debt, mitigating some of the impact rising interest rates have on our cash interest expense.”
Second Quarter 2022 Results
Net sales for the second quarter of 2022 were $220.4 million up 96% versus $112.4 million last year. The Toys/Consumer Products segment sales were up 83% globally (92% North America; 38% International) and sales of Disguise costumes were up 132% compared to last year (>100% North America; >250% International).
Year-to-date Toys/Consumer Products sales were up 61% compared to 2021. Year-to-date the Costumes segment was up 134% compared to 2021.
Total shipments for the first-half of the year exceeded $300 million for the first time in the company’s history.
Trailing twelve months net income of $55.5 million, compared to a net loss of $18.0 million in the twelve months ended June 30, 2021. Trailing twelve months adjusted EBITDA of $75.7 million (9.9% of net sales) up 54% from $49.1 million (8.7% of net sales) in the trailing twelve months ended June 30, 2021.
Balance Sheet Highlights
The Company’s cash and cash equivalents (including restricted cash) totaled $62.3 million as of June 30, 2022 compared to $38.3 million as of June 30, 2021, and $45.3 million as of December 31, 2021.
Total debt was $84.9 million, compared to $129.3 million as of June 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.
Working capital (not including cash) totaled $54.4 million, up from $7.5 million a year ago. Inventory was a meaningful driver of the increase, totaling $123.7 million, of which $36.3 million was in-transit to our distribution centers, compared to $60.6 million in total inventory as of June 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 July 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®, Eyeclops®, Fly Wheel®, Perfectly Cute®, ReDo Skateboard Co.®, WeeeDo™, Xtreme Power®, Disguise®, Maui®, Moose Mountain®, Kids Only!®; 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 |
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Condensed Consolidated Balance Sheets (Unaudited) |
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June 30, |
|
December 31, |
|
||||||||
|
|
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2021 |
|
|
| (In thousands) | |||||||||||||||
| Assets | |||||||||||||||
| Current assets: | |||||||||||||||
| Cash and cash equivalents | $ |
62,283 |
|
$ |
37,511 |
|
$ |
44,521 |
|
||||||
| Restricted cash |
|
- |
|
|
830 |
|
|
811 |
|
||||||
| Accounts receivable, net |
|
164,020 |
|
|
107,898 |
|
|
147,394 |
|
||||||
| Inventory |
|
123,666 |
|
|
60,580 |
|
|
83,954 |
|
||||||
| Prepaid expenses and other assets |
|
14,519 |
|
|
32,495 |
|
|
10,877 |
|
||||||
| Total current assets |
|
364,488 |
|
|
239,314 |
|
|
287,557 |
|
||||||
| Property and equipment |
|
128,844 |
|
|
118,804 |
|
|
121,945 |
|
||||||
| Less accumulated depreciation and amortization |
|
112,601 |
|
|
104,147 |
|
|
108,796 |
|
||||||
| Property and equipment, net |
|
16,243 |
|
|
14,657 |
|
|
13,149 |
|
||||||
| Operating lease right-of-use assets, net |
|
24,584 |
|
|
20,688 |
|
|
16,950 |
|
||||||
| Goodwill |
|
35,083 |
|
|
35,083 |
|
|
35,083 |
|
||||||
| Intangibles and other assets, net |
|
3,239 |
|
|
5,389 |
|
|
4,308 |
|
||||||
| Total assets | $ |
443,637 |
|
$ |
315,131 |
|
$ |
357,047 |
|
||||||
| Liabilities, Preferred Stock and Stockholders' Equity | |||||||||||||||
| Current liabilities: | |||||||||||||||
| Accounts payable | $ |
86,660 |
|
$ |
49,206 |
|
$ |
50,237 |
|
||||||
| Accounts payable - Meisheng (related party) |
|
42,254 |
|
|
19,603 |
|
|
15,894 |
|
||||||
| Accrued expenses |
|
58,189 |
|
|
37,573 |
|
|
47,071 |
|
||||||
| Reserve for sales returns and allowances |
|
45,625 |
|
|
42,282 |
|
|
46,285 |
|
||||||
| Income taxes payable |
|
2,333 |
|
|
703 |
|
|
1,004 |
|
||||||
| Short term operating lease liabilities |
|
10,239 |
|
|
10,481 |
|
|
10,477 |
|
||||||
| Short term debt, net |
|
2,475 |
|
|
33,596 |
|
|
2,104 |
|
||||||
| Total current liabilities |
|
247,775 |
|
|
193,444 |
|
|
173,072 |
|
||||||
| Long term operating lease liabilities |
|
15,406 |
|
|
12,276 |
|
|
8,039 |
|
||||||
| Debt, non-current portion, net |
|
82,453 |
|
|
95,735 |
|
|
93,415 |
|
||||||
| Preferred stock derivative liability |
|
15,898 |
|
|
16,976 |
|
|
21,282 |
|
||||||
| Income taxes payable |
|
215 |
|
|
215 |
|
|
215 |
|
||||||
| Deferred income taxes, net |
|
51 |
|
|
123 |
|
|
51 |
|
||||||
| Total liabilities |
|
361,798 |
|
|
318,769 |
|
|
296,074 |
|
||||||
| Preferred stock accrued dividends |
|
3,771 |
|
|
2,397 |
|
|
3,074 |
|
||||||
| Stockholders' equity: | |||||||||||||||
| Common stock, $.001 par value |
|
10 |
|
|
7 |
|
|
10 |
|
||||||
| Additional paid-in capital |
|
273,625 |
|
|
241,405 |
|
|
272,941 |
|
||||||
| Accumulated deficit |
|
(180,680 |
) |
|
(236,593 |
) |
|
(203,431 |
) |
||||||
| Accumulated other comprehensive loss |
|
(15,765 |
) |
|
(12,124 |
) |
|
(12,952 |
) |
||||||
| Total JAKKS Pacific, Inc. stockholders' equity |
|
77,190 |
|
|
(7,305 |
) |
|
56,568 |
|
||||||
| Non-controlling interests |
|
878 |
|
|
1,270 |
|
|
1,331 |
|
||||||
| Total stockholders' equity |
|
78,068 |
|
|
(6,035 |
) |
|
57,899 |
|
||||||
| Total liabilities, preferred stock and stockholders' equity | $ |
443,637 |
|
$ |
315,131 |
|
$ |
357,047 |
|
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Supplemental Balance Sheet and Cash Flow Data (Unaudited) |
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June 30, |
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| Key Balance Sheet Data: |
|
2022 |
|
|
2021 |
|
|||||||||
| Accounts receivable, net days of sales outstanding (DSO) |
|
68 |
|
|
87 |
|
|||||||||
| Inventory turnover (DSI) |
|
71 |
|
|
69 |
|
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| Six Months Ended June 30, | |||||||||||||||
| Condensed Cash Flow Data: |
|
2022 |
|
|
2021 |
|
|||||||||
| (In thousands) | |||||||||||||||
| Cash flows provided by (used in) operating activities | $ |
36,549 |
|
$ |
(18,531 |
) |
|||||||||
| Cash flows used in investing activities |
|
(5,274 |
) |
|
(3,693 |
) |
|||||||||
| Cash flows used in financing activities and other |
|
(14,324 |
) |
|
(32,128 |
) |
|||||||||
| Increase/(decrease) in cash, cash equivalents and restricted cash | $ |
16,951 |
|
$ |
(54,352 |
) |
|||||||||
| Capital expenditures | $ |
(5,276 |
) |
$ |
(3,725 |
) |
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JAKKS Pacific, Inc. and Subsidiaries |
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Condensed Consolidated Statements of Operations (Unaudited) |
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Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
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|
2022 |
|
|
|
2021 |
|
Δ (%) |
|
|
2022 |
|
|
2021 |
|
Δ (%) |
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(In thousands, except per share data) |
(In thousands, except per share data) |
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| Net sales | $ |
220,422 |
|
$ |
112,352 |
|
96 |
% |
$ |
341,303 |
|
$ |
196,195 |
|
74 |
% |
||||||
| Less: Cost of sales | ||||||||||||||||||||||
| Cost of goods |
|
121,850 |
|
|
61,489 |
|
98 |
|
|
193,908 |
|
|
105,538 |
|
84 |
|
||||||
| Royalty expense |
|
35,704 |
|
|
16,784 |
|
113 |
|
|
53,394 |
|
|
29,295 |
|
82 |
|
||||||
| Amortization of tools and molds |
|
1,978 |
|
|
2,182 |
|
(9 |
) |
|
3,194 |
|
|
3,371 |
|
(5 |
) |
||||||
| Cost of sales |
|
159,532 |
|
|
80,455 |
|
98 |
|
|
250,496 |
|
|
138,204 |
|
81 |
|
||||||
| Gross profit |
|
60,890 |
|
|
31,897 |
|
91 |
|
|
90,807 |
|
|
57,991 |
|
57 |
|
||||||
| Direct selling expenses |
|
6,838 |
|
|
6,286 |
|
9 |
|
|
11,740 |
|
|
13,088 |
|
(10 |
) |
||||||
| General and administrative expenses |
|
29,514 |
|
|
23,193 |
|
27 |
|
|
54,667 |
|
|
44,604 |
|
23 |
|
||||||
| Depreciation and amortization |
|
578 |
|
|
597 |
|
(3 |
) |
|
1,174 |
|
|
1,201 |
|
(2 |
) |
||||||
| Selling, general and administrative expenses |
|
36,930 |
|
|
30,076 |
|
23 |
|
|
67,581 |
|
|
58,893 |
|
15 |
|
||||||
| Intangibles impairment |
|
300 |
|
|
- |
|
nm |
|
300 |
|
|
- |
|
nm | ||||||||
| Income (loss) from operations |
|
23,660 |
|
|
1,821 |
|
1,199 |
|
|
22,926 |
|
|
(902 |
) |
nm | |||||||
| Other income (expense): | ||||||||||||||||||||||
| Other income (expense), net |
|
183 |
|
|
72 |
|
154 |
|
|
269 |
|
|
127 |
|
112 |
|
||||||
| Change in fair value of convertible senior notes |
|
- |
|
|
(3,797 |
) |
(100 |
) |
|
- |
|
|
(12,844 |
) |
(100 |
) |
||||||
| Change in fair value of preferred stock derivative liability |
|
6,029 |
|
|
(1,539 |
) |
nm |
|
5,384 |
|
|
(8,914 |
) |
nm | ||||||||
| Loss on debt extinguishment |
|
- |
|
|
(7,351 |
) |
(100 |
) |
|
- |
|
|
(7,351 |
) |
(100 |
) |
||||||
| Interest income |
|
6 |
|
|
4 |
|
50 |
|
|
9 |
|
|
6 |
|
50 |
|
||||||
| Interest expense |
|
(2,337 |
) |
|
(4,370 |
) |
(47 |
) |
|
(4,539 |
) |
|
(9,245 |
) |
(51 |
) |
||||||
| Income (loss) before provision for (benefit from) income taxes |
|
27,541 |
|
|
(15,160 |
) |
nm |
|
24,049 |
|
|
(39,123 |
) |
nm | ||||||||
| Provision for (benefit from) income taxes |
|
1,334 |
|
|
(100 |
) |
nm |
|
1,751 |
|
|
(12 |
) |
nm | ||||||||
| Net income (loss) |
|
26,207 |
|
|
(15,060 |
) |
nm |
|
22,298 |
|
|
(39,111 |
) |
nm | ||||||||
| Net income (loss) attributable to non-controlling interests |
|
(353 |
) |
|
24 |
|
nm |
|
(453 |
) |
|
59 |
|
nm | ||||||||
| Net income (loss) attributable to JAKKS Pacific, Inc. | $ |
26,560 |
|
$ |
(15,084 |
) |
nm% | $ |
22,751 |
|
$ |
(39,170 |
) |
nm% | ||||||||
| Net income (loss) attributable to common stockholders | $ |
26,209 |
|
$ |
(15,415 |
) |
nm% | $ |
22,054 |
|
$ |
(39,827 |
) |
nm% | ||||||||
| Earnings (loss) per share - basic | $ |
2.73 |
|
$ |
(2.48 |
) |
$ |
2.30 |
|
$ |
(6.86 |
) |
||||||||||
| Shares used in earnings (loss) per share - basic |
|
9,588 |
|
|
6,220 |
|
|
9,588 |
|
|
5,802 |
|
||||||||||
| Earnings (loss) per share - diluted | $ |
2.61 |
|
$ |
(2.48 |
) |
$ |
2.21 |
|
$ |
(6.86 |
) |
||||||||||
| Shares used in earnings (loss) per share - diluted |
|
10,037 |
|
|
6,220 |
|
|
9,978 |
|
|
5,802 |
|
||||||||||
Three Months Ended June 30, |
|
|
Six Months Ended June 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 |
|
55.3 |
|
|
54.7 |
|
(55 |
) |
|
56.8 |
|
|
53.7 |
|
(302 |
) |
||||||
| Royalty expense |
|
16.2 |
|
|
15.0 |
|
(126 |
) |
|
15.6 |
|
|
15.0 |
|
(71 |
) |
||||||
| Amortization of tools and molds |
|
0.9 |
|
|
1.9 |
|
104 |
|
|
1.0 |
|
|
1.7 |
|
78 |
|
||||||
| Cost of sales |
|
72.4 |
|
|
71.6 |
|
(77 |
) |
|
73.4 |
|
|
70.4 |
|
(295 |
) |
||||||
| Gross profit |
|
27.6 |
|
|
28.4 |
|
(77 |
) |
|
26.6 |
|
|
29.6 |
|
(295 |
) |
||||||
| Direct selling expenses |
|
3.1 |
|
|
5.6 |
|
249 |
|
|
3.4 |
|
|
6.7 |
|
323 |
|
||||||
| General and administrative expenses |
|
13.4 |
|
|
20.7 |
|
725 |
|
|
16.1 |
|
|
22.7 |
|
672 |
|
||||||
| Depreciation and amortization |
|
0.3 |
|
|
0.5 |
|
27 |
|
|
0.3 |
|
|
0.6 |
|
27 |
|
||||||
| Selling, general and administrative expenses |
|
16.8 |
|
|
26.8 |
|
1,002 |
|
|
19.8 |
|
|
30.0 |
|
1,022 |
|
||||||
| Intangibles impairment |
|
0.1 |
|
|
- |
|
nm |
|
0.1 |
|
|
- |
|
nm | ||||||||
| Income (loss) from operations |
|
10.7 |
|
|
1.6 |
|
911 |
|
|
6.7 |
|
|
(0.4 |
) |
nm | |||||||
| Other income (expense): | ||||||||||||||||||||||
| Other income (expense), net |
|
0.1 |
|
|
0.1 |
|
|
- |
|
|
- |
|
||||||||||
| Change in fair value of convertible senior notes |
|
- |
|
|
(3.4 |
) |
|
- |
|
|
(6.6 |
) |
||||||||||
| Change in fair value of preferred stock derivative liability |
|
2.7 |
|
|
(1.4 |
) |
|
1.6 |
|
|
(4.5 |
) |
||||||||||
| Loss on debt extinguishment |
|
- |
|
|
(6.5 |
) |
|
- |
|
|
(3.8 |
) |
||||||||||
| Interest income |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
||||||||||
| Interest expense |
|
(1.1 |
) |
|
(3.9 |
) |
|
(1.3 |
) |
|
(4.7 |
) |
||||||||||
| Income (loss) before provision for (benefit from) income taxes |
|
12.4 |
|
|
(13.5 |
) |
|
7.0 |
|
|
(20.0 |
) |
||||||||||
| Provision for (benefit from) income taxes |
|
0.6 |
|
|
(0.1 |
) |
|
0.4 |
|
|
- |
|
||||||||||
| Net income (loss) |
|
11.8 |
|
|
(13.4 |
) |
|
6.6 |
|
|
(20.0 |
) |
||||||||||
| Net income (loss) attributable to non-controlling interests |
|
(0.2 |
) |
|
- |
|
|
(0.1 |
) |
|
- |
|
||||||||||
| Net income (loss) attributable to JAKKS Pacific, Inc. |
|
12.0 |
|
% |
|
(13.4 |
)% |
|
6.7 |
% |
|
(20.0 |
)% |
|||||||||
| Net income (loss) attributable to common stockholders |
|
11.9 |
|
% |
|
(13.7 |
)% |
|
6.5 |
% |
|
(20.3 |
)% |
|||||||||
|
|
|||||||||||||||||||||
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 June 30, |
|
|
|
|
Six Months Ended June 30, |
|
||||||||||||||||||||||
|
2022 |
|
|
2021 |
|
Δ ($) |
|
|
|
|
2022 |
|
|
2021 |
|
Δ ($) |
||||||||||||
| (In thousands, except per share data) | (In thousands, except per share data) | |||||||||||||||||||||||||||
| EBITDA and Adjusted EBITDA | ||||||||||||||||||||||||||||
| Net income (loss) | $ |
26,207 |
|
$ |
(15,060 |
) |
$ |
41,267 |
|
$ |
22,298 |
|
$ |
(39,111 |
) |
$ |
61,409 |
|
||||||||||
| Interest expense |
|
2,337 |
|
|
4,370 |
|
|
(2,033 |
) |
|
4,539 |
|
|
9,245 |
|
|
(4,706 |
) |
||||||||||
| Interest income |
|
(6 |
) |
|
(4 |
) |
|
(2 |
) |
|
(9 |
) |
|
(6 |
) |
|
(3 |
) |
||||||||||
| Provision for (benefit from) income taxes |
|
1,334 |
|
|
(100 |
) |
|
1,434 |
|
|
1,751 |
|
|
(12 |
) |
|
1,763 |
|
||||||||||
| Depreciation and amortization |
|
2,556 |
|
|
2,779 |
|
|
(223 |
) |
|
4,368 |
|
|
4,572 |
|
|
(204 |
) |
||||||||||
| EBITDA |
|
32,428 |
|
|
(8,015 |
) |
|
40,443 |
|
|
32,947 |
|
|
(25,312 |
) |
|
58,259 |
|
||||||||||
| Adjustments: | ||||||||||||||||||||||||||||
| Other (income) expense, net |
|
(183 |
) |
|
(72 |
) |
|
(111 |
) |
|
(269 |
) |
|
(127 |
) |
|
(142 |
) |
||||||||||
| Restricted stock compensation expense |
|
1,155 |
|
|
383 |
|
|
772 |
|
|
2,025 |
|
|
765 |
|
|
1,260 |
|
||||||||||
| Change in fair value of convertible senior notes |
|
- |
|
|
3,797 |
|
|
(3,797 |
) |
|
- |
|
|
12,844 |
|
|
(12,844 |
) |
||||||||||
| Change in fair value of preferred stock derivative liability |
|
(6,029 |
) |
|
1,539 |
|
|
(7,568 |
) |
|
(5,384 |
) |
|
8,914 |
|
|
(14,298 |
) |
||||||||||
| Employee Retention Credit/Gov't Employment Support |
|
(249 |
) |
|
- |
|
|
(249 |
) |
|
(249 |
) |
|
(1,900 |
) |
|
1,651 |
|
||||||||||
| Loss on debt extinguishment |
|
- |
|
|
7,351 |
|
|
(7,351 |
) |
|
- |
|
|
7,351 |
|
|
(7,351 |
) |
||||||||||
| Adjusted EBITDA | $ |
27,122 |
|
$ |
4,983 |
|
$ |
22,139 |
|
$ |
29,070 |
|
$ |
2,535 |
|
$ |
26,535 |
|
||||||||||
| Adjusted EBITDA/Net sales % |
|
12.3 |
% |
|
4.4 |
% |
|
787 |
|
bps |
|
8.5 |
% |
|
1.3 |
% |
|
723 |
|
bps | ||||||||
| TTM EBITDA and TTM Adjusted EBITDA | ||||||||||||||||||||||||||||
| TTM Net income (loss) | $ |
55,521 |
|
$ |
(17,989 |
) |
$ |
73,510 |
|
|||||||||||||||||||
| Interest expense |
|
9,398 |
|
|
19,717 |
|
|
(10,319 |
) |
|||||||||||||||||||
| Interest income |
|
(16 |
) |
|
(11 |
) |
|
(5 |
) |
|||||||||||||||||||
| Provision for income taxes |
|
1,989 |
|
|
175 |
|
|
1,814 |
|
|||||||||||||||||||
| Depreciation and amortization |
|
10,047 |
|
|
11,047 |
|
|
(1,000 |
) |
|||||||||||||||||||
| TTM EBITDA |
|
76,939 |
|
|
12,939 |
|
|
64,000 |
|
|||||||||||||||||||
| Adjustments: | ||||||||||||||||||||||||||||
| Other (income) expense, net |
|
(588 |
) |
|
(374 |
) |
|
(214 |
) |
|||||||||||||||||||
| Restricted stock compensation expense |
|
3,353 |
|
|
2,102 |
|
|
1,251 |
|
|||||||||||||||||||
| Change in fair value of convertible senior notes |
|
3,575 |
|
|
15,057 |
|
|
(11,482 |
) |
|||||||||||||||||||
| Change in fair value of preferred stock derivative liability |
|
(1,078 |
) |
|
13,812 |
|
|
(14,890 |
) |
|||||||||||||||||||
| 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 |
) |
|||||||||||||||||||
| Pandemic related charges |
|
- |
|
|
145 |
|
|
(145 |
) |
|||||||||||||||||||
| TTM Adjusted EBITDA | $ |
75,746 |
|
|
49,132 |
|
$ |
26,614 |
|
54 |
% |
|||||||||||||||||
| TTM Adjusted EBITDA/TTM Net sales % |
|
9.9 |
% |
|
8.7 |
% |
|
122 |
|
bps | ||||||||||||||||||
| Adjusted net income (loss) attributable to common stockholders | ||||||||||||||||||||||||||||
| Net income (loss) attributable to common stockholders | $ |
26,209 |
|
$ |
(15,415 |
) |
$ |
41,624 |
|
$ |
22,054 |
|
$ |
(39,827 |
) |
$ |
61,881 |
|
||||||||||
| Restricted stock compensation expense |
|
1,155 |
|
|
383 |
|
|
772 |
|
|
2,025 |
|
|
765 |
|
|
1,260 |
|
||||||||||
| Change in fair value of convertible senior notes |
|
- |
|
|
3,797 |
|
|
(3,797 |
) |
|
- |
|
|
12,844 |
|
|
(12,844 |
) |
||||||||||
| Change in fair value of preferred stock derivative liability |
|
(6,029 |
) |
|
1,539 |
|
|
(7,568 |
) |
|
(5,384 |
) |
|
8,914 |
|
|
(14,298 |
) |
||||||||||
| Employee Retention Credit/Gov't Employment Support |
|
(249 |
) |
|
- |
|
|
(249 |
) |
|
(249 |
) |
|
(1,900 |
) |
|
1,651 |
|
||||||||||
| Loss on debt extinguishment |
|
- |
|
|
7,351 |
|
|
(7,351 |
) |
|
- |
|
|
7,351 |
|
|
(7,351 |
) |
||||||||||
| Tax impact of additional charges |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
||||||||||
| Adjusted net income (loss) attributable to common stockholders | $ |
21,086 |
|
$ |
(2,345 |
) |
$ |
23,431 |
|
$ |
18,446 |
|
$ |
(11,853 |
) |
$ |
30,299 |
|
||||||||||
| Adjusted earnings (loss) per share - basic | $ |
2.20 |
|
$ |
(0.38 |
) |
$ |
2.58 |
|
$ |
1.92 |
|
$ |
(2.04 |
) |
$ |
3.96 |
|
||||||||||
| Shares used in adjusted earnings (loss) per share - basic |
|
9,588 |
|
|
6,220 |
|
|
3,368 |
|
|
9,588 |
|
|
5,802 |
|
|
3,786 |
|
||||||||||
| Adjusted earnings (loss) per share - diluted | $ |
2.10 |
|
$ |
(0.38 |
) |
$ |
2.48 |
|
$ |
1.85 |
|
$ |
(2.04 |
) |
$ |
3.89 |
|
||||||||||
| Shares used in adjusted earnings (loss) per share - diluted |
|
10,037 |
|
|
6,220 |
|
|
3,817 |
|
|
9,978 |
|
|
5,802 |
|
|
4,176 |
|
||||||||||
| JAKKS Pacific, Inc. and Subsidiaries | ||||||||||||||||||||||
| Net Sales by Division and Geographic Region | ||||||||||||||||||||||
| (In thousands) | QTD Q2 | (In thousands) | YTD Q2 | |||||||||||||||||||
| Divisions |
|
2022 |
|
2021 |
|
2020 |
% Change
|
|
Divisions |
|
2022 |
|
2021 |
|
2020 |
% Change
|
|
|||||
| Toys/Consumer Products | $ |
148,860 |
$ |
81,538 |
$ |
56,214 |
82.6 |
% |
45.0 |
% |
Toys/Consumer Products | $ |
259,983 |
$ |
161,413 |
$ |
118,779 |
61.1 |
% |
35.9 |
% |
|
| Dolls, Role-Play/Dress Up |
|
102,186 |
|
49,278 |
|
32,821 |
107.4 |
% |
50.1 |
% |
Dolls, Role-Play/Dress Up |
|
164,192 |
|
94,433 |
|
72,895 |
73.9 |
% |
29.5 |
% |
|
| Action Play & Collectibles |
|
37,170 |
|
19,622 |
|
10,699 |
89.4 |
% |
83.4 |
% |
Action Play & Collectibles |
|
68,868 |
|
36,027 |
|
20,353 |
91.2 |
% |
77.0 |
% |
|
| Outdoor/Seasonal Toys |
|
9,504 |
|
12,638 |
|
12,694 |
-24.8 |
% |
-0.4 |
% |
Outdoor/Seasonal Toys |
|
26,923 |
|
30,953 |
|
25,531 |
-13.0 |
% |
21.2 |
% |
|
| Costumes |
|
71,562 |
|
30,814 |
|
22,544 |
132.2 |
% |
36.7 |
% |
Costumes |
|
81,320 |
|
34,782 |
|
26,536 |
133.8 |
% |
31.1 |
% |
|
| Total | $ |
220,422 |
$ |
112,352 |
$ |
78,758 |
96.2 |
% |
42.7 |
% |
Total | $ |
341,303 |
$ |
196,195 |
$ |
145,315 |
74.0 |
% |
35.0 |
% |
|
| (In thousands) | QTD Q2 | (In thousands) | YTD Q2 | |||||||||||||||||||
| Regions |
|
2022 |
|
2021 |
|
2020 |
% Change
|
|
Regions |
|
2022 |
|
2021 |
|
2020 |
% Change
|
|
|||||
| United States | $ |
192,484 |
$ |
95,265 |
$ |
66,777 |
102.1 |
% |
42.7 |
% |
United States | $ |
289,534 |
$ |
164,181 |
$ |
118,695 |
76.4 |
% |
38.3 |
% |
|
| Europe |
|
14,447 |
|
9,930 |
|
5,761 |
45.5 |
% |
72.4 |
% |
Europe |
|
27,836 |
|
17,267 |
|
13,379 |
61.2 |
% |
29.1 |
% |
|
| Canada |
|
5,537 |
|
2,208 |
|
2,684 |
150.8 |
% |
-17.7 |
% |
Canada |
|
8,916 |
|
4,309 |
|
5,032 |
106.9 |
% |
-14.4 |
% |
|
| Latin America |
|
3,823 |
|
1,165 |
|
1,082 |
228.2 |
% |
7.7 |
% |
Latin America |
|
6,208 |
|
3,620 |
|
2,082 |
71.5 |
% |
73.9 |
% |
|
| Asia |
|
2,363 |
|
2,164 |
|
1,462 |
9.2 |
% |
48.0 |
% |
Asia |
|
4,439 |
|
3,579 |
|
3,232 |
24.0 |
% |
10.7 |
% |
|
| Australia & New Zealand |
|
1,582 |
|
1,249 |
|
802 |
26.7 |
% |
55.7 |
% |
Australia & New Zealand |
|
3,073 |
|
2,437 |
|
2,333 |
26.1 |
% |
4.5 |
% |
|
| Middle East & Africa |
|
186 |
|
371 |
|
190 |
-49.9 |
% |
95.3 |
% |
Middle East & Africa |
|
1,297 |
|
802 |
|
562 |
61.7 |
% |
42.7 |
% |
|
| Total | $ |
220,422 |
$ |
112,352 |
$ |
78,758 |
96.2 |
% |
42.7 |
% |
Total | $ |
341,303 |
$ |
196,195 |
$ |
145,315 |
74.0 |
% |
35.0 |
% |
|
| (In thousands) | QTD Q2 | (In thousands) | YTD Q2 | |||||||||||||||||||
| Regions |
|
2022 |
|
2021 |
|
2020 |
% Change
|
|
Regions |
|
2022 |
|
2021 |
|
2020 |
% Change
|
|
|||||
| North America | $ |
198,021 |
$ |
97,473 |
$ |
69,461 |
103.2 |
% |
40.3 |
% |
North America | $ |
298,450 |
$ |
168,490 |
$ |
123,727 |
77.1 |
% |
36.2 |
% |
|
| International |
|
22,401 |
|
14,879 |
|
9,297 |
50.6 |
% |
60.0 |
% |
International |
|
42,853 |
|
27,705 |
|
21,588 |
54.7 |
% |
28.3 |
% |
|
| Total | $ |
220,422 |
$ |
112,352 |
$ |
78,758 |
96.2 |
% |
42.7 |
% |
Total | $ |
341,303 |
$ |
196,195 |
$ |
145,315 |
74.0 |
% |
35.0 |
% |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20220727005977/en/
JAKKS Pacific Investor Relations
(424) 268-9567
Lucas Natalini
[email protected]
Source: JAKKS Pacific, Inc.