JAKKS Pacific, Inc. (NASDAQ: JAKK) reported results for the Company’s third quarter ended September 30, 2013.
Net sales for the third quarter of 2013 were $310.9 million compared to net sales of $314.5 million reported in the comparable period in 2012. The reported net income for the third quarter was $36.6 million, or $1.11 per diluted share, which reflects the net dilutive impact of $0.21 per diluted share associated with the common shares underlying the $100.0 million convertible senior notes recently issued and repurchased in July 2013. This compares to net income of $30.4 million, or $1.10 per diluted share, reported in the comparable period in 2012.
Net sales for the nine months ending September 30, 2013, were $495.2 million compared to $533.3 million in 2012. The reported net loss for the nine month period was $37.8 million, or $1.73 per diluted share, which includes charges for license minimum guarantee shortfalls of $14.4 million and inventory impairment of $14.9 million. This compares to net income for the first nine months of 2012 of $14.7 million, or $0.59 per diluted share, which included $4.1 million, or $0.10 per diluted share, of pre-tax financial and legal advisory fees and expenses related to an unsolicited indication of interest that ended.
Stephen Berman, President and CEO of JAKKS Pacific stated, “We are pleased with our financial results for the third quarter during which we completed our $100 million convertible senior note financing. During the quarter, we sold a broad array of products including Disney Princess dolls, dress up and role play, Sofia the First dress up and role play items, Disguise Halloween costumes, 31” Giant Action Figures, foot-to-foot ride-ons and kids furniture.”
Mr. Berman continued, “We recently completed our Fall Toy Preview meetings and are pleased with the enthusiastic response from retailers, licensors and other industry partners to our 2014 product line-up, particularly the reaction to our new line of technology-driven toys. We anticipate these toys will provide children with a new and heightened play experience by combining our strong line-up of physical toys with DreamPlay iD technology and enhanced augmented reality content, all of which will come together in new and exciting Apps. Our 'Ariel’s Musical Surprise' app launched this month for iOS devices and is ready for use with our Disney Little Mermaid products which are now available at retail. In 2014, we will be rolling out additional innovative lines of toys delivering this unique experience.