Actionable news
0
All posts from Actionable news
Actionable news in JAKK: JAKKS Pacific, Inc.,

Jakks Pacific Reports Third Quarter 2015 Financial Results

The following excerpt is from the company's SEC filing.

SANTA MONICA, Calif.--(BUSINESS WIRE)--October 26, 2015--JAKKS Pacific, Inc. [NASDAQ: JAKK] today reported financial results for the third quarter 2015. Net sales for the quarter ending September 30, 2015 were $337.0 million, compared to $349.4 million reported in the comparable period in 2014. Reported net income for the third quarter was $45.8 million, or $1.12 per diluted share. This compares to net income of $44.1 million, or $1.03 per diluted share, reported in the comparable period in 2014. Adjusted EBITDA for the third quarter was $52.5 million, compare d to Adjusted EBITDA of $52.8 million in 2014. See note below on “Use of Non-GAAP Financial Information.”

Third Quarter Highlights

Gross margin improved 390 basis points

Operating margin improved 70 basis points

Diluted EPS increased 8.7 percent

Nine Month Financial Overview

Net sales for the nine months ending September 30, 2015 were $582.3 million compared to $556.0 million in 2014. The reported net income for the nine month period was $32.6 million, or $0.89 per diluted share. This compares to net income for the nine months of 2014 of $18.7 million, or $0.61 per diluted share. Adjusted EBITDA for the nine months of 2015 improved to $53.1 million, compared to $42.4 million for the nine months of 2014.

Also announced today, in addition to responsibilities as Chief Executive Officer, Stephen Berman will also serve as Chairman of the Board.

Berman stated, “We’re very pleased with our performance in the third quarter. Our current momentum continues with margins steadily improving, product innovation across a strong portfolio of brands delivering higher profitability, and more efficient operations. We remain focused on executing our full year plans across all brands this holiday season.”

Domestically, we are pleased with the strong consumer demand for Star Wars Big-Figs™ line of products and other several key drivers such as Sing-A-Long Elsa, XPV® Remote Control Hulk Smash™ and Max Tow Truck Turbo™ which have already received numerous awards from retailers, industry experts and media. These key drivers in the portfolio have been featured on several hot toy lists including Walmart’s Chosen by Kids, Target’s Top Toys, Kmart’s Fab 15, Toys R Us, Time to Play Magazine’s Most Wanted and the Toy Insider Hot 20. JAKKS Pacific’s line of Frozen and Star Wars products drove much of the success in the International business.

“Looking ahead to 2016, we have a strong pipeline of products, and new licenses, creating a strong entertainment slate for us next year, and in the coming next few years. Building within the categories which we are leaders, coupled with expanded innovation, and hot new and current evergreen licenses, we feel confident in the coming years ahead. We have just finished our Fall 2016 Toy Preview with customers from around the world, and we are also encouraged by the positive response now to both our Spring and Fall product lines,” said Berman.

Working Capital

As of September 30, 2015, the Company’s working capital was $271.6 million, including cash and equivalents and marketable securities of $81.2 million, compared to working capital of $250.4 million including cash and equivalents and marketable securities of $88.8 million as of September 30, 2014.

2015 Guidance

The Company reiterates its previously issued guidance for full year 2015, which estimated net sales in the range of $730 million to $740 million, earnings in the range of $0.71 to $0.75 per diluted share and Adjusted EBITDA in the range of $56 million to $58 million.

Share Repurchase

In June 2015, The Board of Directors authorized the Company to repurchase up to $30 million worth of shares of the Company’s outstanding common stock and/or convertible notes through open market repurchases or in privately negotiated transactions from time to time through March 31, 2016. Approximately 774,000 shares of common stock were repurchased through the end of the third quarter at an aggregate cost of $7.0 million.

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...


More