Mr. Berman added, “We are in the midst of our Fall Toy Fair meetings with retailers, licensors and other industry partners and are excited by the enthusiastic response to our 2013 product line, including our new DreamPlay Toys products. We believe that our DreamPlay technology positions JAKKS to be a leader in interactivity and augmented reality play for children and will put JAKKS in the forefront of new trends with smart phones and other devices being used more and more each day by children of all ages for their gaming enjoyment and experiences. Looking ahead to 2013, we are optimistic about future opportunities including the launch of DreamPlay products and the solid performance of our core business lines, which spans a wide spectrum that includes action figures, dolls, dress-up and role play; Halloween costumes from Disguise, kids furniture and seasonal products from Kids Only; infant/pre-school products from Tollytots; ride-on vehicles and wagons from Moose Mountain, and outdoor and junior sports products and impulse toys from Maui Toys.”
As of September 30, 2012, the Company’s working capital was $257.5 million, including cash and equivalents and marketable securities of $141.0 million, compared to working capital of $401.4 million including cash and equivalents and marketable securities of $232.5 million as of September 30, 2011.
2012 Guidance & Dividend
As previously announced, the Company anticipates net sales for the full year of approximately $690 million to $700 million, with revised non-GAAP earnings per share in the range of approximately $0.68 to $0.74, excluding non-recurring legal and financial advisory charges of $0.19 per share. In addition, if the Company does not achieve sufficient U.S. taxable income - which is expected to be sufficient at non-GAAP earnings of approximately $0.74 per share - the Company will be required to take a one-time non-cash charge of $82 million, or $3.45 per share, for the full impairment of its domestic deferred tax assets. The revised guidance represents a reduction from the Company’s previously anticipated full year net sales of approximately $720 million to $728 million and diluted earnings per share in the range of approximately $1.04 to $1.08, excluding the financial and legal advisory fees. The Company’s guidance with respect to diluted earnings per share is a non-GAAP financial measure, due to the exclusion of such one-time charges. On a GAAP basis, the Company anticipates diluted earnings/loss per share for the full fiscal year ending December 31, 2012 to be in the range of a loss of $2.77 (taking into account such non-recurring charges) to earnings of $0.74.