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Jakks Pacific Inc (JAKK) SEC Filing 10-Q Quarterly report for the period ending Sunday, June 30, 2019

Jakks Pacific Inc

CIK: 1009829 Ticker: JAKK
 
 Exhibit 99.1


JAKKS Pacific Reports Second Quarter 2019 Financial Results

SANTA MONICA, Calif.--(BUSINESS WIRE)--August 9, 2019--JAKKS Pacific, Inc. (NASDAQ: JAKK) today reported preliminary financial results for the second quarter ended June 30, 2019.

Second Quarter 2019 Overview vs. Same Period Last Year

  • Net sales for the second quarter were $95.2 million compared to $105.8 million reported in the comparable period in 2018. Sales in the 2019 second quarter were negatively impacted primarily by a decline in sales of Incredibles 2 which more than offset strong growth in Disguise costumes and the introduction of several new toy lines tied to entertainment content.
  • Gross margin was 18.6%, compared to 26.4% in the second quarter of 2018.
  • Net loss attributable to JAKKS Pacific was $22.5 million, or $0.96 per diluted share. This compares to a net loss attributable to JAKKS Pacific of $18.6 million, or $0.80 per diluted share, reported in the second quarter of 2018.
  • Adjusted EBITDA was negative $11.5 million, compared to Adjusted EBITDA of negative $8.5 million in the 2018 second quarter. See note below on “Use of Non-GAAP Financial Information.”

Management Commentary

“As expected, our results for the second quarter showed the effect of declines in products that contributed strongly to results in the second quarter of last year,” said Stephen Berman, CEO of JAKKS Pacific. “We saw strong growth in our Disguise, Halloween costume business, and strong contributions from toys tied to several new theatrical releases, including Aladdin, Godzilla and Toy Story 4, but these were more than offset by the declines in toys tied to Incredibles 2 and our Squish Dee Lish products. As we have noted before, our sales this year have been shifted to the second half as a result of the timing of several films and television shows, notably Frozen 2, as well as Toy Story 4, the 30th Anniversary of the release of Disney’s The Little Mermaid, and Disney Jr.’s Gigantosaurus animated TV series.

We remain confident that our second half sales will show renewed strength, as the disruptions caused by Toys R Us’ liquidation in the United States no longer weigh down the industry. This coupled with the recently announced Recapitalization transaction to strengthen our balance sheet provides a clearer pathway to the future here at JAKKS.”

Cash and Cash Equivalents

The Company’s cash and cash equivalents (including restricted cash) totaled $37.0 million as of June 30, 2019 compared to $47.4 million as of March 31, 2019 and $63.0 million as of June 30, 2018.

2019 Outlook

Our goal for 2019 is to grow sales by approximately 5% on a year-over-year basis with improved levels of Adjusted EBITDA compared to 2018.

Recapitalization Transaction

As discussed in the Current Report on Form 8-K dated August 9, 2019, the Company entered into multiple, binding definitive agreements (collectively, the “Recapitalization”) among Wells Fargo Bank, National Association, Oasis Investments II Master Fund Ltd. and an ad hoc group of holders of the 4.875% convertible senior notes due 2020 to recapitalize the Company’s balance sheet, including the extension to the Company of incremental liquidity and three-year extensions of substantially all of the Company’s outstanding convertible debt obligations and revolving credit facility. The Company’s term loan agreement entered into with Great American Capital Partners will be paid in full in connection with the Recapitalization transaction.


The following information was filed by Jakks Pacific Inc (JAKK) on Friday, August 9, 2019 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-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Inside Jakks Pacific Inc's 10-Q Quarterly Report:

Financial Statements, Disclosures and Schedules

Inside this 10-Q Quarterly Report

Document And Entity Information
Condensed Consolidated Balance Sheets
Condensed Consolidated Balance Sheets (Parenthetical)
Condensed Consolidated Statements Of Cash Flows
Condensed Consolidated Statements Of Cash Flows (Parenthetical)
Condensed Consolidated Statements Of Operations And Comprehensive Loss
Condensed Consolidated Statements Of Stockholders' Equity
Basis Of Presentation
Basis Of Presentation (Details)
Basis Of Presentation (Policies)
Business Segments, Geographic Data, And Sales By Major Customers
Business Segments, Geographic Data, And Sales By Major Customers (Tables)
Business Segments, Geographic Data, And Sales By Major Customers - Additional Information (Detail)
Business Segments, Geographic Data, And Sales By Major Customers - Information By Geographic Area (Detail)
Business Segments, Geographic Data, And Sales By Major Customers - Information By Segment And Reconciliation To Reported Amounts (Detail)
Business Segments, Geographic Data, And Sales By Major Customers - Net Sales To Major Customers (Detail)
Common Stock And Preferred Stock
Common Stock And Preferred Stock - Additional Information (Detail)
Comprehensive Loss
Comprehensive Loss (Tables)
Comprehensive Loss - Components Of Comprehensive Loss (Detail)
Convertible Senior Notes
Convertible Senior Notes (Detail)
Convertible Senior Notes (Tables)
Convertible Senior Notes - Additional Information (Detail)
Credit Facilities
Credit Facilities - Additional Information (Detail)
Fair Value Measurements
Fair Value Measurements (Tables)
Fair Value Measurements - Financial Assets Measured At Fair Value On Recurring Basis (Detail)
Fair Value Measurements - Reconciliation Of Beginning And Ending Balances Of Assets Measured At Fair Value On Recurring Basis Using Significant Unobservable Inputs (Level 3) (Detail)
Goodwill
Goodwill - Additional Information (Detail)
Income Taxes
Income Taxes - Additional Information (Detail)
Intangible Assets (Detail)
Intangible Assets Other Than Goodwill
Intangible Assets Other Than Goodwill (Tables)
Inventory
Inventory (Tables)
Inventory - 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)
Leases
Leases (Details)
Leases (Tables)
Leases - Schedule Of Future Minimum Lease Payments (Details)
Liquidity
Liquidity - Additional Information (Detail)
Litigation And Contingencies
Loss Per Share
Loss Per Share (Tables)
Loss Per Share - Additional Information (Detail)
Loss Per Share - Reconciliation Of Weighted Average Shares Used In Computation Of Income (Loss) Per Share (Detail)
Revenue Recognition And Reserve For Sales Returns And Allowances
Revenue Recognition And Reserve For Sales Returns And Allowances - Additional Information (Detail)
Share-Based Payments
Share-Based Payments (Tables)
Share-Based Payments - Additional Information (Detail)
Share-Based Payments - Summary Of Restricted Stock Award Activity (Detail)
Share-Based Payments - Summary Of Restricted Stock Unit Activity (Detail)
Share-Based Payments - Total Share-Based Compensation Expense And Related Tax Benefits Recognized (Detail)
Subsequent Event
Subsequent Event - Additional Information (Detail)

Material Contracts, Statements, Certifications & more

Jakks Pacific Inc provided additional information to their SEC Filing as exhibits

Ticker: JAKK
CIK: 1009829
Form Type: 10-Q Quarterly Report
Accession Number: 0001628280-19-010588
Submitted to the SEC: Fri Aug 09 2019 1:01:53 PM EST
Accepted by the SEC: Fri Aug 09 2019
Period: Sunday, June 30, 2019
Industry: Games Toys And Childrens Vehicles No Dolls And Bicycles

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