JAKK - JAKKS Pacific Inc. Reports Second-Quarter 1999 Results
MALIBU, Calif.--(BUSINESS WIRE)--July 27, 1999--JAKKS Pacific Inc. (NASDAQ/NM:JAKK - news) Tuesday announced net sales, net income and earnings per share for the second quarter and six months ended June 30, 1999.
This marks the company's 12th consecutive quarter of year-over-year growth in all categories.
Net sales increased to $36.0 million for the quarter, compared with $16.1 million posted in the comparable period in 1998. Net income for the 1999 quarter increased to $3.3 million vs. $958,000 in 1998. Diluted earnings per share for the quarter increased 129 percent to 32 cents per share from 14 cents per share in 1998.
The weighted average number of common and diluted common equivalent shares outstanding for the second quarters of 1999 and 1998 were 10,488,000 and 7,786,000, respectively.
For the six-month period ended June 30, 1999, JAKKS Pacific achieved record net sales of $60.9 million, compared with $27.2 million for the first six months of 1998. Net income increased to $5.4 million in 1999 from $1.4 million in 1998. Diluted earnings per share for the six-month period in 1999 increased 164 percent to 58 cents per share from 22 cents per share in 1998.
The weighted average number of common and diluted common equivalent shares outstanding for the six-month periods of 1999 and 1998 were 9,412,000 and 7,422,000, respectively.
Commenting on the results, Jack Friedman, chief executive officer of JAKKS Pacific, said: ''We're extremely proud of our performance this quarter. The numbers are solid and the company is continuing its dynamic upward climb as a leader in the $15 billion U.S. toy industry.
''In March 1999, TRSTS sales data from the NPD Group Inc. ranked JAKKS Pacific as the ninth largest traditional toy company in the United States. In March 1998, we ranked 24th, so we have good reason to feel proud of the company's strategy.
''This quarter was very eventful, showing great promise for our continuing growth. We completed a public offering of 2,666,563 shares of the company's common stock, which yielded net proceeds of approximately $52.1 million.
''Just last month, we acquired privately held Berk Corporation, the leading producer of educational toy foam puzzles, mats and blocks for children ages two to seven, featuring popular licensed characters including Disney characters, Sesame Street and Barney.
''We signed an exclusive three-year licensing agreement to develop a new line of toy products for 'WSL RollerJam,' a new sports entertainment television series telecast on TNN, a CBS Cable network.
''Our joint venture with THQ Inc., the premier producer of wrestling video game software, signed the top wrestling development teams for World Wrestling Federation® video games. The first titles in the series are scheduled for release for Nintendo 64 and Color Game Boy in November 1999, which will be followed by the PlayStation platform in early 2000.
''We also signed a three-year licensing agreement to develop a new line of adult collectibles and toys for IMS Properties, which owns the rights to the Indianapolis 500, Indianapolis Motorspeedway and PEP Boys Indy Racing Leagues, Indy 500 Pace Cars, NASCAR Brickyard 400, and the Senior PGA Tours Brickyard Crossing. JAKKS expects to ship the first products of the new line by fall 1999, with full product rollout commencing spring 2000.
''Finally, this month, two of our Child Guidance(TM) products were awarded Dr. Toy's Best Children's Vacation Products 1999 from the distinguished childcare expert and author, Dr. Stevanne Auerbach.
''We enter the third quarter -- historically our strongest -- with confidence about our strategy to build a portfolio of toy brands with evergreen appeal and to expand our product categories through internal growth and acquisitions,'' Friedman concluded.
JAKKS Pacific and its affiliates develop, manufacture and market toys and related products for children, including action figures and other products featuring characters from the World Wrestling Federation, die-cast collectible and toy vehicles under the Road Champs and Remco brand names, Child Guidance preschool toys, and a line of fashion dolls and accessories.
''Safe Harbor'' Statement under the Private Securities Litigation Reform Act of 1995: This news release contains forward-looking statements. Such statements reflect the current views of the company with respect to future events and are subject to certain risks, uncertainties and assumptions. Although the company believes that the expectations reflected in such forward-looking statements are reasonable, should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual future results or events may vary materially from those described herein. |
