JAKKS Pacific(R) Reports First Quarter Results for 2010
MALIBU, CA–(Marketwire – April 22, 2010) –
JAKKS Pacific, Inc. (NASDAQ: JAKK) reported results for the Company’s first quarter ended March 31, 2010.
Net sales for the first quarter of 2010 were $77.3 million, compared to $108.7 million in the first quarter of 2009. The Company reported a loss for the first quarter of 2010 of $5.2 million, or $0.19 per share, compared to a loss of $10.8 million, or $0.40 per share, reported in the first quarter of 2009.
“The first quarter finished slightly ahead of our expectations, and we believe we are on track to meet our earnings guidance for this year of $1.10 to $1.20 per diluted share on net sales of $660 to $670 million,” commented Stephen Berman, CEO and President, JAKKS Pacific. “The strategic cost saving initiatives and restructuring plan we implemented Company-wide over the past nine months continue to be a top priority.”
“Production of our diverse 2010 Fall portfolio is in full swing, and we will begin shipping the new items expected to hit retail for the second half of the year in the second quarter. Revenues for 2010 will come from a broad base of products which includes our Halloween costumes, new Disney® products based on Disney Princess®, Disney Fairies®, Toy Story® and Phineas and Ferb™ characters, action figures based on UFC® and TNA® personalities, and our various non-licensed product lines, among others. We have also simultaneously been working to develop new products and initiatives for 2011 and beyond to position our portfolio for future growth.”
Operations provided cash of $24.1 million for the first quarter of 2010. The quarter’s results were positively impacted by a tax benefit of $4.9 million related to the reversal of prior tax accruals. As of March 31, 2010, the Company’s working capital was $356.1 million, including cash and equivalents and marketable securities of $278.2 million.
Joel Bennett, Executive Vice President and CFO, added, “We expect to use our cash to continue to execute on our acquisition and internal product development strategies and also to handle the remaining outstanding $20.3 million of our 4.625% Convertible Senior Notes which, if offered, the Company would be required to redeem and which we could also elect to repurchase in June 2010.”
JAKKS Pacific will webcast its first quarter earnings conference call at 9:00a.m. ET (6:00a.m. PT) today. To listen to the live webcast, go to investors.jakks.com, and click on the earnings webcast link under Events and Presentations at least 10 minutes prior to register, download and install any necessary audio software. A telephonic playback will be available from approximately one hour after the call concludes, through May 22, 2010. The playback can be accessed by calling (888) 203-1112, or (719) 457-0820 for international callers, pass code “6564578.”
About JAKKS Pacific, Inc.
JAKKS Pacific, Inc. (NASDAQ: JAKK) is a leading designer and marketer of toys and consumer products, with a wide range of products that feature some of the most popular children’s toy licenses in the world. JAKKS’ diverse portfolio includes Action Figures, Electronics, Dolls, Dress-Up, Role Play, Halloween Costumes, Kids Furniture, Vehicles, Plush, Art Activity Kits, Seasonal Products, Infant/Pre-School, Construction Toys, and Pet Toys sold under various proprietary brands including JAKKS Pacific®, Creative Designs International™, Road Champs®, Funnoodle®, JAKKS Pets™, Plug It In & Play TV Games™, Girl Gourmet™, Kids Only!™, Tollytots® and Disguise™. JAKKS is an award-winning licensee of several hundred nationally and internationally known trademarks including Disney®, Nickelodeon®, Warner Bros.®, Ultimate Fighting Championship®, Hello Kitty®, Graco® and Cabbage Patch Kids®.
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’ products, product mix, the timing of customer orders and deliveries, the impact of competitive products and pricing, and difficulties with integrating acquired businesses. 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.
© 2010 JAKKS Pacific, Inc. All rights reserved.