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JAKKS Pacific, Inc. Reports Second Quarter 2013 Results And Revises 2013 Guidance

This press release may contain forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995) that are based on current expectations, estimates and projections about JAKKS Pacific’s business based partly on assumptions made by its management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such statements due to numerous factors, including, but not limited to, those described above, changes in demand for JAKKS’ products, product mix, the timing of customer orders and deliveries, the impact of competitive products and pricing, and difficulties with integrating acquired businesses. The forward-looking statements contained herein speak only as of the date on which they are made, and JAKKS undertakes no obligation to update any of them to reflect events or circumstances after the date of this release.

© 2013 JAKKS Pacific, Inc. All rights reserved.

 
JAKKS Pacific, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
 
June 30,   December 31,
2013 2012
(In thousands)
 
ASSETS
 
Current assets:
Cash and cash equivalents $ 69,717 $ 189,321
Marketable securities 220 218
Accounts receivable, net 94,915 105,455
Inventory, net 56,674 59,689
Income taxes receivable 24,008 24,008
Deferred income taxes 7,059 7,059
Prepaid expenses and other current assets   27,570     20,306  
Total current assets   280,163     406,056  
 
Property and equipment 95,572 94,799
Less accumulated depreciation and amortization   80,616     78,973  
Property and equipment, net   14,956     15,826  
 
Goodwill 48,502 48,836
Trademarks & other assets, net 69,420 73,946
Investment in joint venture 2,046 3,161
Investment in DreamPlay   7,000     7,000  
Total assets $ 422,087   $ 554,825  
 
 
LIABILITIES AND STOCKHOLDERS' EQUITY
 
Current liabilities:
Accounts payable and accrued expenses $ 117,276 $ 101,470
Reserve for sales returns and allowances 27,776 34,373
Income taxes payable 18,081 12,922
Short term debt, net of current portion   -     70,710  
Total current liabilities   163,133     219,475  
 
Long term debt 96,283 94,918
Other liabilities 18,368 18,345
Income taxes payable 4,614 4,687
Deferred tax liability   10,181     10,180  
Total liabilities   292,579     347,605  
 
Stockholders' equity:
Common stock, $.001 par value 22 22
Additional paid-in capital 202,968 202,577
Retained earnings (Accumulated deficit) (68,683 ) 8,836
Accumulated other comprehensive income (loss)   (4,799 )   (4,215 )
Total stockholders' equity   129,508     207,220  
Total liabilities and stockholders' equity $ 422,087   $ 554,825  
 
Working Capital $ 117,030 $ 186,581
 

 
JAKKS Pacific, Inc. and Subsidiaries
Second Quarter Earnings Announcement, 2013
Condensed Statements of Income (Unaudited)
 
  Three Months Ended June 30,   Six Months Ended June 30,
   
2013 2012 2013 2012
(In thousands, expect per share data) (In thousands, expect per share data)
 
Net sales $ 106,232 $ 145,359 $ 184,301 $ 218,764
Less cost of sales
Cost of goods 74,248 78,472 120,533 118,717
Royalty expense 27,222 17,449 34,576 25,794
Amortization of tools and molds   2,524     2,545     3,575     3,794  
Cost of sales   103,994     98,466     158,684     148,305  
Gross profit 2,238 46,893 25,617 70,459
Direct selling expenses 6,976 9,795 17,472 19,285
Selling, general and administrative expenses 37,081 34,877 72,264 67,307
Depreciation and amortization   2,469     2,114     4,014     3,170  
Loss from operations (44,288 ) 107 (68,133 ) (19,303 )
Other income (expense):
Income from video game joint venture - 2,000 - 2,000
Equity in net income (loss) of joint venture (806 ) (98 ) (1,452 ) (44 )
Interest income 134 314 209 513
Interest expense, net of benefit   (2,058 )   (2,035 )   (4,904 )   (4,070 )
Loss before provision (benefit) for income taxes (47,018 ) 288 (74,280 ) (20,904 )
Provision (benefit) for income taxes   (145 )   74     155     (5,118 )
Net loss $ (46,873 ) $ 214   $ (74,435 ) $ (15,786 )
Loss per share $ (2.14 ) $ 0.01 $ (3.40 ) $ (0.61 )
Shares used in loss per share 21,920 25,870 21,921 25,766
 




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