Jakks Pacific Reports Fourth Quarter and Full-Year 2024 Financial Results
Santa Monica, CA — Jakks Pacific, Inc. reported financial results for the fourth quarter and fiscal year ended December 31, 2024.
Fourth Quarter 2024
- Net sales were $130.7 million, a year-over-year increase of 3%
- Toys/Consumer Products net sales were $118.2 million, a year-over-year decrease of 1%
- Costumes net sales were $12.5 million, a year-over-year increase of 46%
- Gross margin of 27.2%, up 70 basis points vs. Q4 2023
- Gross profit of $35.6 million, up 5% compared to $33.7 million in Q4 2023
- Operating loss of $14.7 million in Q4 2024, an improvement of $0.6 million vs. a loss of $15.3 million in Q4 2023
- Net loss attributable to common stockholders of $9.1 million or $0.83 per diluted share, compared to net loss attributable to common stockholders of $11.3 million or $1.12 per diluted share in Q4 2023
- Adjusted net loss attributable to common stockholders (a non-GAAP measure) of $7.4 million or $0.67 per diluted share, compared to adjusted net loss attributable to common stockholders of $10.5 million or $1.04 per diluted share in Q4 2023
- Adjusted EBITDA (a non-GAAP measure) of $(10.2) million vs. $(10.9) million in Q4 2023, an improvement of $0.8 million
Full-Year 2024
- Net sales were $691.0 million compared to $711.6 million last year, a 3% decrease
- Toys/Consumer Products net sales were $570.0 million, a year-over-year decrease of 2%
- Costumes net sales were $121.0 million, a year-over-year decrease of 8%
- Gross margin of 30.8% compared to 31.4% last year
- Gross profit of $213.0 million, down 5% compared to $223.4 million last year
- Operating income of $39.7 million compared to $59.1 million last year; a 33% decrease
- Net income attributable to common stockholders of $35.3 million, down from a net income attributable to common stockholders of $36.9 million in 2023
- Adjusted net income attributable to common stockholders of $42.6 million ($3.79 per diluted share), down from adjusted net income attributable to common stockholders of $48.9 million ($4.62 per diluted share) in 2023
- Adjusted EBITDA of $59.3 million, down from $75.7 million in 2023
- Cash flows provided by operating activities of $38.9 million, down from $66.4 million in 2023
- Cash used in financing activities of $28.5 million, eliminating all preferred shareholders in the first half of 2024
- End of year cash and cash equivalents of $70.1 million, down from $72.6 million in 2023
Management Commentary
“As we leave 2024, we are pleased with both the financial results we have achieved and the foundation we have established. We are a debt-free company with a strong portfolio of exceptional evergreen product categories and licenses led by a world-class team as we embark on the next chapter for JAKKS Pacific. Our company marked the 30th anniversary of its founding last month. Five years ago, we were trying to find our footing coming out of a painful restructuring exercise and processing the looming implications of what would become the COVID pandemic. The first quarter of this year represents the first time in fifteen years that we have started a year unencumbered by long-term debt or other obligations restricting our ability to share our successes directly with our common stock shareholders. As we consider our progress with initiatives like international expansion, partnering with the best global licensors and retailers and expanding and diversifying our product lines, we are excited for the future and what we see as a clear path forward for continued success. As a reflection of this optimism, our Board this week approved the initiation of a quarterly cash dividend of 25 cents per share payable on March 31, 2025, to shareholders of record as of March 3, 2025. On a full-year basis, this would equate to a dollar per share. It is our intention to maintain this dividend going forward on a quarterly basis, recalibrating when we deem it prudent.
Our fourth quarter results were roughly in line with our expectations. The business is measured in the context of full-year results with significant seasonality drivers of Halloween and Christmas. We always encourage customers to embrace our FOB selling model to leverage their larger and more efficient logistic operations. This approach translates to the majority of our sales taking place in the second and third quarters and not the underlying consumer behavior in those quarters. We were pleased to see our FOB business reach a global level of over 75% of our worldwide sales in 2024, a level we haven’t achieved in many years. Continuing the trend from Q3, Q4 reflected modest sales growth of 3% versus the prior year as our second half performance has benefited from the timing of the entertainment releases we have supported this year vs. 2023. Although our Costumes business finished the year down 8%, it grew Internationally to its highest level yet despite unfavorable industry conditions in Europe. Our gross margins improved in the quarter vs. last year and finished the full year at 30.8%. We also continued to see improved overhead cost containment versus the prior year, while we reallocated more resources towards Q4 media spend in an effort to capture more consumer attention and drive sell-through.
At retail, anchored by two strong film releases, we saw aggregate Toy/CP point-of-sale (POS) data up mid-single digits at our three largest US accounts vs. Q4 2023. That improved our full-year results to being down mid-single digits at those same accounts – and we exited the year with lower inventory levels at those accounts for the second year in a row.”
Other Financial Highlights
Sales in North America were down 3% in the quarter and 3% on a full-year basis compared to the previous year. Sales outside of North America were up 25% in the quarter, led by Europe. On a full-year basis, the business outside of North America was down 1%.
The Company’s cash and cash equivalents (including restricted cash) totaled $70.1 million as of December 31, 2024, compared to $72.6 million as of December 31, 2023, despite utilizing $20 million in cash in March as part of the transaction eliminating the company’s preferred stock.
Inventory was $52.8 million as of December 31, 2024, compared to $52.6 million as of December 31, 2023.
Use of Non-GAAP Financial Information and Reconciliation of GAAP to Non-GAAP measures:
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 and Adjusted Net Income (Loss) that exclude various items that are detailed in the financial tables and accompanying footnotes reconciling GAAP to non-GAAP results contained in this release. 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, enhance 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.
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. See “Use of Non-GAAP Financial Information” for additional disclosures with respect to the use of non-GAAP financial information.
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 February 20, 2025. 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 (4Q24 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: AirTitans®, Disguise®, Fly Wheels®, JAKKS Wild Games®, Moose Mountain®, Maui®, Perfectly Cute®, ReDo® Skateboard Co., Sky Ball®, SportsZone™, Xtreme Power Dozer®, WeeeDo®, and Wild Manes™ as well as a wide range of entertainment-inspired products featuring premier licensed properties. Through our products and our charitable donations, JAKKS is helping to make a positive impact on the lives of children. Visit us at www.jakks.com and follow us on Instagram (@jakkspacific.toys), Twitter (@jakkstoys) and Facebook (@jakkspacific.toys).
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.
| CONTACT: |
| JAKKS Pacific Investor Relations |
| (424) 268-9567 Lucas Natalini investors@jakks.net |
| JAKKS Pacific, Inc. and Subsidiaries | |||||||||||||
| Condensed Consolidated Balance Sheets (Unaudited) | |||||||||||||
| December 31, | |||||||||||||
| 2024 | 2023 | ||||||||||||
| (In thousands) | |||||||||||||
| Assets | |||||||||||||
| Current assets: | |||||||||||||
| Cash and cash equivalents | $ | 69,936 | $ | 72,350 | |||||||||
| Restricted cash | 201 | 204 | |||||||||||
| Accounts receivable, net | 131,629 | 123,797 | |||||||||||
| Inventory | 52,780 | 52,647 | |||||||||||
| Prepaid expenses and other assets | 14,141 | 6,374 | |||||||||||
| Total current assets | 268,687 | 255,372 | |||||||||||
| Property and equipment | 142,623 | 135,956 | |||||||||||
| Less accumulated depreciation and amortization | 126,981 | 121,357 | |||||||||||
| Property and equipment, net | 15,642 | 14,599 | |||||||||||
| Operating lease right-of-use assets, net | 53,254 | 23,592 | |||||||||||
| Deferred income tax assets, net | 70,394 | 68,143 | |||||||||||
| Goodwill | 35,111 | 35,083 | |||||||||||
| Other long-term assets | 1,781 | 2,162 | |||||||||||
| Total assets | $ | 444,869 | $ | 398,951 | |||||||||
| Liabilities, Preferred Stock and Stockholders’ Equity | |||||||||||||
| Current liabilities: | |||||||||||||
| Accounts payable | $ | 42,560 | $ | 42,177 | |||||||||
| Accounts payable – Meisheng (related party) | 13,461 | 12,259 | |||||||||||
| Accrued expenses | 48,456 | 45,102 | |||||||||||
| Reserve for sales returns and allowances | 35,817 | 38,531 | |||||||||||
| Income taxes payable | 1,035 | 3,785 | |||||||||||
| Short-term operating lease liabilities | 8,091 | 7,380 | |||||||||||
| Total current liabilities | 149,420 | 149,234 | |||||||||||
| Long-term operating lease liabilities | 48,433 | 16,666 | |||||||||||
| Accrued expenses – long-term | 2,563 | 3,746 | |||||||||||
| Preferred stock derivative liability | – | 29,947 | |||||||||||
| Income taxes payable | 3,620 | 3,245 | |||||||||||
| Total liabilities | 204,036 | 202,838 | |||||||||||
| Preferred stock accrued dividends | – | 5,992 | |||||||||||
| Stockholders’ equity: | |||||||||||||
| Common stock, $.001 par value | 11 | 10 | |||||||||||
| Additional paid-in capital | 297,198 | 278,642 | |||||||||||
| Accumulated deficit | (39,692 | ) | (73,612 | ) | |||||||||
| Accumulated other comprehensive loss | (17,184 | ) | (15,627 | ) | |||||||||
| Total JAKKS Pacific, Inc. stockholders’ equity | 240,333 | 189,413 | |||||||||||
| Non-controlling interests | 500 | 708 | |||||||||||
| Total stockholders’ equity | 240,833 | 190,121 | |||||||||||
| Total liabilities, preferred stock and stockholders’ equity | $ | 444,869 | $ | 398,951 | |||||||||
| Supplemental Balance Sheet and Cash Flow Data (Unaudited) | |||||||||||||
| December 31, | |||||||||||||
| Key Balance Sheet Data: | 2024 | 2023 | |||||||||||
| Accounts receivable days sales outstanding (DSO) | 93 | 89 | |||||||||||
| Inventory turnover (DSI) | 51 | 52 | |||||||||||
| Twelve Months Ended December 31, |
|||||||||||||
| Condensed Cash Flow Data: | 2024 | 2023 | |||||||||||
| Cash flows provided by operating activities | $ | 38,947 | $ | 66,404 | |||||||||
| Cash flows used in investing activities | (12,889 | ) | (8,907 | ) | |||||||||
| Cash flows used in financing activities and other | (28,475 | ) | (70,433 | ) | |||||||||
| Decrease in cash, cash equivalents and restricted cash | $ | (2,417 | ) | $ | (12,936 | ) | |||||||
| Capital expenditures | $ | (11,246 | ) | $ | (8,906 | ) | |||||||
| JAKKS Pacific, Inc. and Subsidiaries | ||||||||||||||||||||||||||||
| Condensed Consolidated Statements of Operations (Unaudited) | ||||||||||||||||||||||||||||
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||||||||||||||
| 2024 | 2023 | Δ (%) | 2024 | 2023 | Δ (%) | |||||||||||||||||||||||
| (In thousands, except per share data) | (In thousands, except per share data) | |||||||||||||||||||||||||||
| Net sales | $ | 130,741 | $ | 127,396 | 3 | % | $ | 691,042 | $ | 711,557 | (3 | ) | % | |||||||||||||||
| Less: Cost of sales | ||||||||||||||||||||||||||||
| Cost of goods | 72,373 | 68,866 | 5 | 361,563 | 362,378 | (0 | ) | |||||||||||||||||||||
| Royalty expense | 20,623 | 22,533 | (8 | ) | 106,804 | 117,607 | (9 | ) | ||||||||||||||||||||
| Amortization of tools and molds | 2,192 | 2,264 | (3 | ) | 9,654 | 8,219 | 17 | |||||||||||||||||||||
| Cost of sales | 95,188 | 93,663 | 2 | 478,021 | 488,204 | (2 | ) | |||||||||||||||||||||
| Gross profit | 35,553 | 33,733 | 5 | 213,021 | 223,353 | (5 | ) | |||||||||||||||||||||
| Direct selling expenses | 18,201 | 14,582 | 25 | 40,105 | 36,987 | 8 | ||||||||||||||||||||||
| General and administrative expenses | 31,953 | 34,401 | (7 | ) | 132,840 | 126,893 | 5 | |||||||||||||||||||||
| Depreciation and amortization | 117 | 90 | 30 | 392 | 366 | 7 | ||||||||||||||||||||||
| Selling, general and administrative expenses | 50,271 | 49,073 | 2 | 173,337 | 164,246 | 6 | ||||||||||||||||||||||
| Income (loss) from operations | (14,718 | ) | (15,340 | ) | (4 | ) | 39,684 | 59,107 | (33 | ) | ||||||||||||||||||
| Other income (expense): | ||||||||||||||||||||||||||||
| Loss from joint ventures | – | – | – | – | (565 | ) | nm | |||||||||||||||||||||
| Other income (expense), net | 8 | 139 | (94 | ) | 302 | 563 | (46 | ) | ||||||||||||||||||||
| Change in fair value of preferred stock derivative liability | – | (1,361 | ) | nm | – | (8,029 | ) | nm | ||||||||||||||||||||
| Loss on debt extinguishment | – | – | – | – | (1,023 | ) | nm | |||||||||||||||||||||
| Interest income | 308 | 757 | (59 | ) | 841 | 1,344 | (37 | ) | ||||||||||||||||||||
| Interest expense | (157 | ) | (710 | ) | (78 | ) | (1,095 | ) | (6,451 | ) | (83 | ) | ||||||||||||||||
| Income (loss) before provision for (benefit from) income taxes | (14,559 | ) | (16,515 | ) | (12 | ) | 39,732 | 44,946 | (12 | ) | ||||||||||||||||||
| Provision for (benefit from) income taxes | (5,446 | ) | (5,643 | ) | (3 | ) | 5,532 | 6,833 | (19 | ) | ||||||||||||||||||
| Net income (loss) | (9,113 | ) | (10,872 | ) | (16 | ) | 34,200 | 38,113 | (10 | ) | ||||||||||||||||||
| Net income (loss) attributable to non-controlling interests | – | (4 | ) | nm | 280 | (293 | ) | nm | ||||||||||||||||||||
| Net income (loss) attributable to JAKKS Pacific, Inc. | $ | (9,113 | ) | $ | (10,868 | ) | (16 | ) | % | $ | 33,920 | $ | 38,406 | (12 | ) | % | ||||||||||||
| Net income (loss) attributable to common stockholders | $ | (9,113 | ) | $ | (11,252 | ) | (19 | ) | % | $ | 35,250 | $ | 36,904 | (4 | ) | % | ||||||||||||
| Earnings (loss) per share – basic | $ | (0.83 | ) | $ | (1.12 | ) | $ | 3.27 | $ | 3.70 | ||||||||||||||||||
| Shares used in earnings (loss) per share – basic | 11,008 | 10,084 | 10,781 | 9,962 | ||||||||||||||||||||||||
| Earnings (loss) per share – diluted | $ | (0.83 | ) | $ | (1.12 | ) | $ | 3.14 | $ | 3.48 | ||||||||||||||||||
| Shares used in earnings (loss) per share – diluted | 11,008 | 10,084 | 11,226 | 10,590 | ||||||||||||||||||||||||
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||||||||||||||
| 2024 | 2023 | Δ bps | 2024 | 2023 | 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 | 54.0 | (130 | ) | 52.3 | 50.9 | (140 | ) | ||||||||||||||||||||
| Royalty expense | 15.8 | 17.7 | 190 | 15.5 | 16.5 | 100 | ||||||||||||||||||||||
| Amortization of tools and molds | 1.7 | 1.8 | 10 | 1.4 | 1.2 | (20 | ) | |||||||||||||||||||||
| Cost of sales | 72.8 | 73.5 | 70 | 69.2 | 68.6 | (60 | ) | |||||||||||||||||||||
| Gross profit | 27.2 | 26.5 | 70 | 30.8 | 31.4 | (60 | ) | |||||||||||||||||||||
| Direct selling expenses | 13.9 | 11.4 | (250 | ) | 5.8 | 5.2 | (60 | ) | ||||||||||||||||||||
| General and administrative expenses | 24.5 | 27.0 | 250 | 19.2 | 17.8 | (140 | ) | |||||||||||||||||||||
| Depreciation and amortization | 0.1 | 0.1 | – | 0.1 | 0.1 | – | ||||||||||||||||||||||
| Selling, general and administrative expenses | 38.5 | 38.5 | 0 | 25.1 | 23.1 | (200 | ) | |||||||||||||||||||||
| Income (loss) from operations | (11.3 | ) | (12.0 | ) | 70 | 5.7 | 8.3 | (260 | ) | |||||||||||||||||||
| Other income (expense): | ||||||||||||||||||||||||||||
| Loss from joint ventures | – | – | – | (0.1 | ) | |||||||||||||||||||||||
| Other income (expense), net | – | 0.1 | 0.1 | 0.1 | ||||||||||||||||||||||||
| Change in fair value of preferred stock derivative liability | – | (1.1 | ) | – | (1.1 | ) | ||||||||||||||||||||||
| Loss on debt extinguishment | – | – | – | (0.1 | ) | |||||||||||||||||||||||
| Interest income | 0.2 | 0.6 | 0.1 | 0.2 | ||||||||||||||||||||||||
| Interest expense | (0.1 | ) | (0.6 | ) | (0.2 | ) | (0.9 | ) | ||||||||||||||||||||
| Income (loss) before provision for (benefit from) income taxes | (11.2 | ) | (13.0 | ) | 5.7 | 6.4 | ||||||||||||||||||||||
| Provision for (benefit from) income taxes | (4.2 | ) | (4.5 | ) | 0.8 | 1.0 | ||||||||||||||||||||||
| Net income (loss) | (7.0 | ) | (8.5 | ) | 4.9 | 5.4 | ||||||||||||||||||||||
| Net income (loss) attributable to non-controlling interests | – | – | – | – | ||||||||||||||||||||||||
| Net income (loss) attributable to JAKKS Pacific, Inc. | (7.0 | ) | % | (8.5 | ) | % | 4.9 | % | 5.4 | % | ||||||||||||||||||
| Net income (loss) attributable to common stockholders | (7.0 | ) | % | (8.8 | ) | % | 5.1 | % | 5.2 | % | ||||||||||||||||||
| JAKKS Pacific, Inc. and Subsidiaries | ||||||||||||||||||||||||||||
| Reconciliation of Non-GAAP Financial Information (Unaudited) | ||||||||||||||||||||||||||||
| Three Months Ended December 31, |
Twelve Months Ended December 31, |
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| 2024 | 2023 | Δ ($) | 2024 | 2023 | Δ ($) | |||||||||||||||||||||||
| (In thousands) | (In thousands) | |||||||||||||||||||||||||||
| EBITDA and Adjusted EBITDA | ||||||||||||||||||||||||||||
| Net income (loss) | $ | (9,113 | ) | $ | (10,872 | ) | $ | 1,759 | $ | 34,200 | $ | 38,113 | $ | (3,913 | ) | |||||||||||||
| Interest expense | 157 | 710 | (553 | ) | 1,095 | 6,451 | (5,356 | ) | ||||||||||||||||||||
| Interest income | (308 | ) | (757 | ) | 449 | (841 | ) | (1,344 | ) | 503 | ||||||||||||||||||
| Provision for (benefit from) income taxes | (5,446 | ) | (5,643 | ) | 197 | 5,532 | 6,833 | (1,301 | ) | |||||||||||||||||||
| Depreciation and amortization | 2,309 | 2,354 | (45 | ) | 10,046 | 10,336 | (290 | ) | ||||||||||||||||||||
| EBITDA | (12,401 | ) | (14,208 | ) | 1,807 | 50,032 | 60,389 | (10,357 | ) | |||||||||||||||||||
| Adjustments: | ||||||||||||||||||||||||||||
| Loss from joint ventures (JAKKS Pacific, Inc. – 51%) | – | – | – | – | 276 | (276 | ) | |||||||||||||||||||||
| Loss from joint ventures (Meisheng – 49%) | – | – | – | – | 289 | (289 | ) | |||||||||||||||||||||
| Other (income) expense, net | (8 | ) | (139 | ) | 131 | (302 | ) | (563 | ) | 261 | ||||||||||||||||||
| Restricted stock compensation expense | 2,255 | 2,057 | 198 | 9,535 | 8,027 | 1,508 | ||||||||||||||||||||||
| Change in fair value of preferred stock derivative liability | – | 1,361 | (1,361 | ) | – | 8,029 | (8,029 | ) | ||||||||||||||||||||
| Molds and tooling capitalization | – | – | – | – | (1,751 | ) | 1,751 | |||||||||||||||||||||
| Loss on debt extinguishment | – | – | – | – | 1,023 | (1,023 | ) | |||||||||||||||||||||
| Adjusted EBITDA | $ | (10,154 | ) | $ | (10,929 | ) | $ | 775 | $ | 59,265 | $ | 75,719 | $ | (16,454 | ) | |||||||||||||
| Adjusted EBITDA/Net sales % | (7.8 | ) | % | (8.6 | ) | % | 80 bps | 8.6 | % | 10.6 | % | -200 bps | ||||||||||||||||
| Trailing Twelve Months Ended December 31, |
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| 2024 | 2023 | Δ ($) | ||||||||||||||||||||||||||
| (In thousands) | ||||||||||||||||||||||||||||
| TTM EBITDA and TTM Adjusted EBITDA | ||||||||||||||||||||||||||||
| TTM net income | $ | 34,200 | $ | 38,113 | $ | (3,913 | ) | |||||||||||||||||||||
| Interest expense | 1,095 | 6,451 | (5,356 | ) | ||||||||||||||||||||||||
| Interest income | (841 | ) | (1,344 | ) | 503 | |||||||||||||||||||||||
| Provision for (benefit from) income taxes | 5,532 | 6,833 | (1,301 | ) | ||||||||||||||||||||||||
| Depreciation and amortization | 10,046 | 10,336 | (290 | ) | ||||||||||||||||||||||||
| TTM EBITDA | 50,032 | 60,389 | (10,357 | ) | ||||||||||||||||||||||||
| Adjustments: | ||||||||||||||||||||||||||||
| Loss from joint ventures (JAKKS Pacific, Inc. – 51%) | – | 276 | (276 | ) | ||||||||||||||||||||||||
| Loss from joint ventures (Meisheng – 49%) | – | 289 | (289 | ) | ||||||||||||||||||||||||
| Other (income) expense, net | (302 | ) | (563 | ) | 261 | |||||||||||||||||||||||
| Restricted stock compensation expense | 9,535 | 8,027 | 1,508 | |||||||||||||||||||||||||
| Change in fair value of preferred stock derivative liability | – | 8,029 | (8,029 | ) | ||||||||||||||||||||||||
| Molds and tooling capitalization | – | (1,751 | ) | 1,751 | ||||||||||||||||||||||||
| Loss on debt extinguishment | – | 1,023 | (1,023 | ) | ||||||||||||||||||||||||
| TTM Adjusted EBITDA | $ | 59,265 | $ | 75,719 | $ | (16,454 | ) | (22 | ) | % | ||||||||||||||||||
| TTM Adjusted EBITDA/TTM Net sales % | 8.6 | % | 10.6 | % | -200 bps | |||||||||||||||||||||||
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||||||||||||||
| 2024 | 2023 | Δ ($) | 2024 | 2023 | Δ ($) | |||||||||||||||||||||||
| (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 | $ | (9,113 | ) | $ | (11,252 | ) | $ | 2,139 | $ | 35,250 | $ | 36,904 | $ | (1,654 | ) | |||||||||||||
| Restricted stock compensation expense | 2,255 | 2,057 | 198 | 9,535 | 8,027 | 1,508 | ||||||||||||||||||||||
| Change in fair value of preferred stock derivative liability | – | 1,361 | (1,361 | ) | – | 8,029 | (8,029 | ) | ||||||||||||||||||||
| Loss on debt extinguishment | – | – | – | – | 1,023 | (1,023 | ) | |||||||||||||||||||||
| Loss from joint ventures (JAKKS Pacific, Inc. – 51%) | – | – | – | – | 276 | (276 | ) | |||||||||||||||||||||
| 2021 BSP Term Loan prepayment penalty | – | – | – | – | 150 | (150 | ) | |||||||||||||||||||||
| Molds and Tooling capitalization | – | – | – | – | (1,751 | ) | 1,751 | |||||||||||||||||||||
| Valuation allowance release/adjustments | – | (2,577 | ) | 2,577 | – | (2,577 | ) | 2,577 | ||||||||||||||||||||
| Tax impact of additional charges | (544 | ) | (96 | ) | (448 | ) | (2,225 | ) | (1,175 | ) | (1,050 | ) | ||||||||||||||||
| Adjusted net income (loss) attributable to common stockholders | $ | (7,402 | ) | $ | (10,507 | ) | $ | 3,105 | $ | 42,560 | $ | 48,906 | $ | (6,346 | ) | |||||||||||||
| Adjusted earnings (loss) per share – basic | $ | (0.67 | ) | $ | (1.04 | ) | $ | 0.37 | $ | 3.95 | $ | 4.91 | $ | (0.97 | ) | |||||||||||||
| Shares used in adjusted earnings (loss) per share – basic | 11,008 | 10,084 | 924 | 10,781 | 9,962 | 819 | ||||||||||||||||||||||
| Adjusted earnings (loss) per share – diluted | $ | (0.67 | ) | $ | (1.04 | ) | $ | 0.37 | $ | 3.79 | $ | 4.62 | $ | (0.83 | ) | |||||||||||||
| Shares used in adjusted earnings (loss) per share – diluted | 11,008 | 10,084 | 924 | 11,226 | 10,590 | 636 | ||||||||||||||||||||||
| JAKKS Pacific, Inc. and Subsidiaries | ||||||||||||||||
| Net Sales by Division and Geographic Region | ||||||||||||||||
| (In thousands) | QTD Q4 | (In thousands) | YTD Q4 | |||||||||||||
| DIVISIONS | 2024 | 2023 | 2022 | % Change 2024 v 2023 |
% Change 2023 v 2022 |
DIVISIONS | 2024 | 2023 | 2022 | % Change 2024 v 2023 |
% Change 2023 v 2022 |
|||||
| Toys/Consumer Products | $118,233 | $118,855 | $117,727 | -0.5 | % | 1.0 | % | Toys/Consumer Products | $570,018 | $580,686 | $647,317 | -1.8 | % | -10.3 | % | |
| Dolls, Role-Play/Dress-Up | 62,603 | 73,272 | 68,937 | -14.6 | % | 6.3 | % | Dolls, Role-Play/Dress-Up | 313,679 | 319,962 | 423,581 | -2.0 | % | -24.5 | % | |
| Action Play & Collectibles | 47,209 | 35,312 | 38,909 | 33.7 | % | -9.2 | % | Action Play & Collectibles | 215,521 | 219,446 | 173,529 | -1.8 | % | 26.5 | % | |
| Outdoor/Seasonal Toys | 8,421 | 10,272 | 9,881 | -18.0 | % | 4.0 | % | Outdoor/Seasonal Toys | 40,818 | 41,279 | 50,207 | -1.1 | % | -17.8 | % | |
| Costumes | $12,508 | $8,541 | $14,159 | 46.4 | % | -39.7 | % | Costumes | $121,024 | $130,870 | $148,870 | -7.5 | % | -12.1 | % | |
| TOTAL JAKKS | $130,741 | $127,396 | $131,886 | 2.6 | % | -3.4 | % | TOTAL JAKKS | $691,042 | $711,557 | $796,187 | -2.9 | % | -10.6 | % | |
| (In thousands) | QTD Q4 | (In thousands) | YTD Q4 | |||||||||||||
| Regions | 2024 | 2023 | 2022 | % Change 2024 v 2023 |
% Change 2023 v 2022 |
Regions | 2024 | 2023 | 2022 | % Change 2024 v 2023 |
% Change 2023 v 2022 |
|||||
| United States | $93,468 | $96,304 | $100,907 | -2.9 | % | -4.6 | % | United States | $545,013 | $557,865 | $644,295 | -2.3 | % | -13.4 | % | |
| Europe | 25,359 | 17,988 | 19,437 | 41.0 | % | -7.5 | % | Europe | 71,392 | 76,464 | 85,348 | -6.6 | % | -10.4 | % | |
| Latin America | 4,292 | 4,434 | 2,626 | -3.2 | % | 68.8 | % | Latin America | 38,159 | 32,024 | 18,338 | 19.2 | % | 74.6 | % | |
| Canada | 4,257 | 4,686 | 4,795 | -9.2 | % | -2.3 | % | Canada | 20,983 | 26,992 | 26,515 | -22.3 | % | 1.8 | % | |
| Asia | 1,523 | 2,140 | 1,698 | -28.8 | % | 26.0 | % | Asia | 6,101 | 8,543 | 10,431 | -28.6 | % | -18.1 | % | |
| Australia & New Zealand | 1,116 | 1,486 | 1,822 | -24.9 | % | -18.4 | % | Australia & New Zealand | 7,409 | 7,542 | 8,836 | -1.8 | % | -14.6 | % | |
| Middle East & Africa | 726 | 358 | 601 | 102.8 | % | -40.4 | % | Middle East & Africa | 1,985 | 2,127 | 2,424 | -6.7 | % | -12.3 | % | |
| TOTAL JAKKS | $130,741 | $127,396 | $131,886 | 2.6 | % | -3.4 | % | TOTAL JAKKS | $691,042 | $711,557 | $796,187 | -2.9 | % | -10.6 | % | |
| (In thousands) | QTD Q4 | (In thousands) | YTD Q4 | |||||||||||||
| Regions | 2024 | 2023 | 2022 | % Change 2024 v 2023 |
% Change 2023 v 2022 |
Regions | 2024 | 2023 | 2022 | % Change 2024 v 2023 |
% Change 2023 v 2022 |
|||||
| North America | $97,725 | $100,990 | $105,702 | -3.2 | % | -4.5 | % | North America | $565,996 | $584,857 | $670,810 | -3.2 | % | -12.8 | % | |
| International | 33,016 | 26,406 | 26,184 | 25.0 | % | 0.8 | % | International | 125,046 | 126,700 | 125,377 | -1.3 | % | 1.1 | % | |
| Total | $130,741 | $127,396 | $131,886 | 2.6 | % | -3.4 | % | Total | $691,042 | $711,557 | $796,187 | -2.9 | % | -10.6 | % | |
