JAKKS Pacific, Inc. Reports First-Quarter 1999 Results
Monday, April 12, 1999 06:59 AM Mail this article to a friend new!
MALIBU, Calif.--(BUSINESS WIRE)--April 12, 1999--JAKKS Pacific, Inc. (NASDAQ NM:JAKK) today announced its net sales, net income and earnings per share for the first quarter ended March 31, 1999. The quarterly financial results marked the Company's eleventh consecutive period of year-over-year growth in all categories.
For the quarter, net sales totaled $25.0 million, up 126 percent from $11.0 million for the year-ago period. Net income rose to $2.0 million, an increase of 334 percent from $462,000 in the first quarter of 1998, while earnings per diluted share totaled $0.25, up 212 percent from $0.08 per diluted share in the corresponding quarter last year. Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) for the quarter equaled $3.5 million, compared with $1.4 million in the 1998 first quarter, a 146 percent increase.
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(R), die-cast collectible and toy vehicles under the Road Champs(R) and Remco(R) brand names, Child Guidance(R) preschool toys and a line of fashion dolls and accessories.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: This press 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.
JAKKS PACIFIC, INC. AND SUBSIDIARIES First Quarter Earnings Announcement 1999 Condensed Statements of Operations (Unaudited)
Three Months Ended March 31, 1998 1999
Net sales $ 11,029,771 $ 24,960,292Less costs of sales: Cost of goods 5,514,498 11,315,981 Royalty expense 861,844 2,449,874 Amortization of tools/molds 303,561 430,677 Cost of sales 6,679,903 14,196,532 Gross profit 4,349,868 10,763,760Direct selling expenses 915,083 3,031,599Selling, general and administrative expenses 2,318,859 4,672,238Amortization of intangible assets 348,067 316,588 Income from operations 767,859 2,743,335Other income (expense): Interest, net (157,739) (685)Pre-tax income 610,120 2,742,650Provision for (benefit from) income taxes 148,259 737,453Net income $ 461,861 $ 2,005,197 Earnings per share - diluted (1) $ 0.08 $ 0.25 Weighted average common and dilutive common equivalent shares outstanding 7,160,000 8,416,000
(1) Includes the effect of the add-back of interest, net of tax, on debentures as if converted $ 93,183 $ 93,183
JAKKS PACIFIC, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS
December 31, March 31, 1998 1999 (Audited) (Unaudited)
ASSETS
Current assets: Cash and cash equivalents $12,452,201 $ 15,980,580 Accounts receivable, net 11,926,725 10,464,813 Inventory, net 2,918,941 5,503,742 Prepaid expenses and other current assets 1,335,147 1,813,263 Total current assets 28,633,014 33,762,398
Property and equipment 6,462,714 8,166,553Less accumulated depreciation and amortization 2,173,708 2,731,178 Property and equipment, net 4,289,006 5,435,375
Investment in joint venture 1,044,708 1,053,852Deferred offering and acquisition costs, net 408,151 447,375Goodwill, net 10,322,896 10,247,868Trademarks, net 13,548,054 13,390,847Other assets 489,936 92,473
Total assets $ 58,735,765 $ 64,430,188
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities: Accounts payable and accrued expenses $ 8,076,827 $ 9,174,850 Reserves for sales sales returns and allowances $ 5,341,517 $ 6,756,778 Current portion of debt 60,000 45,000 Income taxes payable 1,418,763 1,365,568 Total current liabilities 14,897,107 17,342,196
Convertible debentures 5,940,000 4,455,000 Deferred income taxes 144,705 146,581
6,084,705 4,601,581
Total liabilities 20,981,812 21,943,777
Stockholders' equity:
Preferred stock, $.001 par value, 1,000,000 shares authorized; 1,000 and 1,000 issued and outstanding, respectively 1 1
Common stock, $.001 par value, 25,000,000 shares authorized; 6,026,042 and 6,517,599 issued and outstanding, respectively 6,026 6,518
Additional paid-in capital 27,044,536 30,110,165Retained earnings 10,777,662 12,432,859
37,828,225 42,549,543Less unearned compensation from grant of options 74,272 63,132
Net stockholders' equity 37,753,953 42,486,411
Total liabilities and stockholders' equity $ 58,735,765 $ 64,430,188
CONTACT: JAKKS Pacific, Inc. Joel Bennett, 310/456-7799 or Silverman Heller Associates Lori Parks/Eugene Heller, 310/208-2550
Quote for referenced ticker symbols: JAKK
© 1999, Business Wire
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