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Jakks Pacific Inc (JAKK) SEC Filing 10-K Annual report for the fiscal year ending Saturday, December 31, 2016

Jakks Pacific Inc

CIK: 1009829 Ticker: JAKK

Exhibit 99.1

JAKKS Pacific Reports Fourth Quarter 2016 Financial Results

2016 Results Ahead of Recently Reduced Sales and EPS Outlook

2017 Outlook Anticipates Net Income, EPS and Adjusted EBITDA Growth on Lower Sales, and Improved Profitability Based on Strong License Line-up, Internally Developed IP and Content

SANTA MONICA, Calif.--(BUSINESS WIRE)--February 23, 2017--JAKKS Pacific, Inc. (NASDAQ: JAKK) today reported financial results for the fourth quarter of 2016, which ended December 31, 2016.

Fourth Quarter Overview versus same period last year:

  • Net sales totaled $167.0 million, compared to $163.4 million
  • Gross margin was 31.2%, up from 30.3%
  • Operating margin was negative 1.4%; an improvement from negative 4.2%
  • Net loss attributable to JAKKS Pacific was $7.6 million, or $0.47 per diluted share vs. $9.3 million, or $0.50 per diluted share
  • Adjusted EBITDA increased to $4.0 million from negative $2.1 million

Fourth Quarter 2016 Financial Results

Net sales for the fourth quarter were $167.0 million compared to $163.4 million in the fourth quarter 2015, ahead of the Company’s latest guidance. As disclosed in mid-December, a number of key licensed products were performing well below prior expectations for the quarter, more than offsetting the strength of some core product lines.

Gross margin in the fourth quarter was 31.2%, up from 30.3% last year as a result of continuing margin expansion efforts, partially offset by higher tooling amortization. Operating margin was negative 1.4%, an improvement from last year due to the higher gross margin and lower SG&A expenses, offset in part by higher marketing expenses.

Reported net loss attributable to JAKKS Pacific for the fourth quarter of 2016 was $7.6 million, or $0.47 per diluted share. This compares to net loss attributable to JAKKS Pacific of $9.3 million, or $0.50 per diluted share in the same year-ago quarter. Adjusted EBITDA for the fourth quarter was $4.0 million, up from the negative $2.1 million in the year-ago quarter due to the higher margins on slightly higher sales in 2016. See note below on “Use of Non-GAAP Financial Information.”

Management Commentary

The Company’s Chairman & CEO Stephen Berman stated, “As we indicated in December, several of our key licensed products, including some tied to motion pictures, experienced surprising sales weakness in December, resulting in sales that were only modestly higher than a year ago. Despite the shortfall from our original guidance, we were able to make progress on several of our strategic goals, including growing some of our core segments, broadening our owned IP both internally and with newly acquired property, expanding our geographic footprint, and building up our online sales channel.

“In 2017, we will continue to focus on efforts to transform JAKKS Pacific from a multinational toy maker to a global provider of consumer products for kids. We expect our core business to benefit from the launch of new entertainment- licensed product lines inspired by Marvel’s Guardians of the Galaxy, Disney’s Beauty and the Beast live action, LEGO Batman, DC Superhero Girls, Power Rangers, Minecraft and Nintendo. In terms of our owned IP, we expect another solid year for Gift ‘Ems® and anticipate that the Chocolate Egg Surprise Maker™, Real Workin’ Buddies™ Dusty and Mighty Runner™ brands will be well received by consumers. And, we will focus on supporting our owned IP with content created by Studio JP.”


The following information was filed by Jakks Pacific Inc (JAKK) on Thursday, February 23, 2017 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Document And Entity Information
Condensed Consolidated Statements Of Cash Flows
Condensed Consolidated Statements Of Cash Flows (parenthetical)
Consolidated Balance Sheets
Consolidated Balance Sheets (parenthetical)
Consolidated Statements Of Comprehensive Income (loss)
Consolidated Statements Of Operations
Consolidated Statements Of Stockholders' Equity
Accrued Expenses
Accrued Expenses (detail)
Accrued Expenses (tables)
Business Combinations
Business Combinations - Additional Information (detail)
Business Segments, Geographic Data, Sales By Product Group And Major Customers
Business Segments, Geographic Data, Sales By Product Group And Major Customers (tables)
Business Segments, Geographic Data, Sales By Product Group And Major Customers - Additional Information (detail)
Changes In Carrying Amount Of Goodwill (detail)
Commitments
Commitments (tables)
Commitments - Additional Information (detail)
Common Stock, Preferred Stock And Warrants
Common Stock, Preferred Stock And Warrants - Additional Information (detail)
Components Of Deferred Tax Assets/(liabilities) (detail)
Components Of Income (loss) Before Provision For Income Taxes (detail)
Concentration Of Credit Risk
Convertible Senior Notes
Convertible Senior Notes (detail)
Convertible Senior Notes (parenthetical) (detail)
Convertible Senior Notes (tables)
Convertible Senior Notes - Additional Information (detail)
Credit Facility
Credit Facility - Additional Information (detail)
Employee Benefits Plan
Employee Benefits Plan - Additional Information (detail)
Financial Assets Measured At Fair Value On Recurring Basis (detail)
Future Amortization Expense (detail)
Future Annual Minimum Royalty Guarantees (detail)
Future Minimum Guaranteed Amount (detail)
Goodwill
Goodwill (tables)
Goodwill - Additional Information (detail)
Income Taxes
Income Taxes (tables)
Income Taxes - Additional Information (detail)
Information By Geographic Area (detail)
Information By Segment And Reconciliation To Reported Amounts (detail)
Information Of Utps Affecting Effective Tax Rate, If Recognized (detail)
Intangible Assets (detail)
Intangible Assets Other Than Goodwill
Intangible Assets Other Than Goodwill (tables)
Intangible Assets Other Than Goodwill - Additional Information (detail)
Inventory Valued At Lower Of Cost (first-in, First-out) Or Market, Net Of Inventory Obsolescence Reserve (detail)
Joint Ventures
Joint Ventures - Additional Information (detail)
Key Component Of Convertible Senior Notes (detail)
Leases
Leases (tables)
Leases - Additional Information (detail)
Litigation
Net Sales To Major Customers (detail)
Principal Industry
Principal Industry - Additional Information (detail)
Property And Equipment, Estimated Useful Lives (detail)
Provision (benefit) For Income Taxes (detail)
Quarterly Financial Data (detail)
Reconciliation For Significant Differences In Tax At Statutory And Effective Rates (detail)
Reconciliation Of Weighted Average Shares Used In Computation Of Basic And Diluted Earnings Per Share (detail)
Related Party Transactions
Related Party Transactions - Additional Information (detail)
Schedule Ii-valuation And Qualifying Accounts
Schedule Of Minimum Annual Lease Payments (detail)
Selected Quarterly Financial Data (unaudited)
Selected Quarterly Financial Data (unaudited) (tables)
Share-based Payments
Share-based Payments (tables)
Share-based Payments - Additional Information (detail)
Stock Option Activity (detail)
Subsequent Events
Subsequent Events - Additional Information (detail)
Summary Of Restricted Stock Award Activity (detail)
Summary Of Significant Accounting Policies
Summary Of Significant Accounting Policies (policies)
Summary Of Significant Accounting Policies (tables)
Summary Of Significant Accounting Policies - Additional Information (detail)
Supplemental Information To Consolidated Statements Of Cash Flows
Supplemental Information To Consolidated Statements Of Cash Flows - Additional Information (detail)
Total Share-based Compensation Expense And Related Tax Benefits Recognized (detail)
Valuation And Qualifying Accounts (detail)
Ticker: JAKK
CIK: 1009829
Form Type: 10-K Annual Report
Accession Number: 0001157523-17-000818
Submitted to the SEC: Thu Mar 16 2017 2:47:07 PM EST
Accepted by the SEC: Thu Mar 16 2017
Period: Saturday, December 31, 2016
Industry: Games Toys And Childrens Vehicles No Dolls And Bicycles

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