JAKKS Pacific, Inc. Reports Record Results for 1999 Third Quarter
MALIBU, Calif.--(BUSINESS WIRE)--Oct. 26, 1999--JAKKS Pacific, Inc. (NASDAQ:JAKK - news) today reported record net income of $7.6 million, or $0.65 per diluted share, on record net sales of $60.2 million for the third quarter ended September 30, 1999.
In the comparable period a year ago, the Company reported net income of $3.4 million, or $0.45 per diluted share, on net sales of $34.2 million.
Jack Friedman, chairman and chief executive officer of JAKKS Pacific, Inc., noted that this marks the thirteenth consecutive quarter in which the Company has reported record year-over-year financial results. In the quarter just ended, net sales, net income, and earnings per diluted share were, respectively, 76%, 123%, and 47% higher than in the third quarter of 1998.
For the nine months ended September 30, 1999, the Company earned a record $13.0 million, or $1.29 per diluted share, on record net sales of $121.2 million, compared to net income of $4.9 million, or $0.68 per diluted share, on net sales of $61.4 million in the first nine months of 1998.
For the three-month period ended September 30, 1999 there were 11,694,000 weighted average diluted common equivalent shares outstanding, compared to 7,872,000 such shares in the comparable period a year ago. For the nine-month period ended September 30, 1999 there were 10,166,000 weighted average diluted common equivalent shares outstanding, compared to 7,585,000 such shares in the comparable period a year ago. The increase in weighted average shares outstanding reflects the issuance of approximately 2.7 million shares of the Company's common stock in connection with a public offering (completed in May, 1999) that produced net proceeds to the Company of approximately $52.1 million.
Friedman attributed the continuing record of consistent growth to the Company's ability to identify and capitalize on marketing opportunities and to remain focused on and execute its business strategy. ''We now rank as one of the ten largest traditional toy companies in the country,'' said Friedman, ''whereas less than eighteen months ago we were ranked number twenty-four. JAKKS' growing stature as a first-tier marketer and distributor of traditional toys will, we believe, bring us an even greater number of opportunities to develop products and expand our product line both internally and through acquisitions. We are particularly proud of the fact that this growth has not come at the expense of the bottom line.''
''While we are most pleased with our accomplishments to date and our record financial results, we remain enthusiastic about our prospects for future growth,'' added Stephen Berman, president and chief operating officer of JAKKS Pacific, Inc. ''We look forward to integrating Flying Colors, the company we acquired earlier this month, which will give us a host of new products, several licensing agreements, new distribution channels, and a wealth of managerial talent that will serve us well going forward.''
Berman also announced that JAKKS has reached a more comprehensive agreement with THQ, Inc. concerning the terms of the joint venture between JAKKS and THQ relating to sales of video games based on the WWF license. Under the agreement, THQ will record revenue from the sale of WWF video games, and JAKKS will receive a guaranteed preferred return from the joint venture based upon WWF video game sales, with the balance of the profits allocated to THQ. JAKKS will continue to be responsible for maintaining the integrity of the WWF brand and managing the approval process and other relationship matters with the WWF, while THQ will continue to be responsible for the development, sales and distribution of the WWF products. JAKKS and THQ will continue to co-market the products. The first two games of the joint venture are expected to be launched for the Nintendo 64 and GameBoy Color platforms under the name Wrestlemania 2000 within the next thirty days.
JAKKS Pacific, Inc. and its affiliates develop, manufacture and market toys and related products for children, including action figures featuring characters from the World Wrestling Federation, die-cast collectible and toy vehicles under the Road Champs and Remco brand names, Child Guidance pre-school 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.
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