JAKKS Pacific Announces Highest First Quarter Net Sales In 14 Years – ToyNews
JAKKS Pacific, Inc. has released its financial results for the first quarter ended March 31, 2022.
- Net sales were $120.9 million, up 44% from $83.8 million last year
- Highest first quarter net sales since 2008
- Costume business more than doubled compared to Q1 2021
- Net loss attributable to common shareholders of $4.2 million (or $0.43 per share) compared to net loss attributable to common shareholders of $24.4 million (or $4.54 per share) in Q1 2021
- Adjusted net loss attributable to common shareholders (a non-GAAP measure) of $2.6 million (or $0.28 per share), compared to adjusted net loss attributable to common shareholders of $9.5 million ( or $1.77 per share) in Q1 2021
- Adjusted EBITDA (a non-GAAP measure) was $1.9 million, compared to negative $2.4 million in the first quarter of 2021
- Adjusted EBITDA for the last twelve months of $53.6 million (8.1% of net sales) up 36% compared to $39.5 million (7.4% of net sales) in the last twelve last months ended March 2021
“Our 2022 is off to a great start,” said JAKKS Chairman and CEO Stephen Berman. “For several years, we’ve talked about maintaining a disciplined focus on growing the evergreen toy categories and brands to deliver ever-improving, yet lasting results. Additionally, this approach can also benefit from the excitement and excitement that new entertainment content can generate.
“As the year begins, we’re starting to see strong results as more consumers discover and embrace movies like sonic the hedgehog 2 and Disney Encantoand want to deepen their relationships with the characters by engaging with a wide range of our toys, Halloween costumes, daily role-playing games and many other related products.
“While this endorsement and excitement is exciting and reaffirming for the teams bringing the product lines to market, I’m also thrilled to share that in addition to the growth of these two theatrical releases, the balance of the “Toys/Consumer Products business was up mid-single-digit percentage in the quarter compared to the prior year. We appreciate the continued support of all of our stakeholders in working together to overcome the continuing challenges in manufacturing and pandemic-related supply chain to achieve these results.
“As expected, higher inbound freight spending continued to weigh on gross margins, as we expect to do for the remainder of the year. Nonetheless, tight cost controls associated with our higher revenues have still generated positive first quarter EBITDA for the first time since 2008. We have a lot of work to do as we continue to navigate the unpredictable nature of current events, but we are excited about the opportunities we see ahead of us. this year and looking ahead to 2023.”