Jakks Reports Q1
Jakks Pacific, Inc., reported results for the company’s first quarter ended March 31, 2013.
Net sales for the first quarter of 2013 increased 6.4 percent to $78.1 million up from sales of $73.4 million reported in the comparable period in 2012. The reported net loss for the first quarter was $27.6 million, or $1.26 per diluted share, which included the final $0.75 million, or $0.03 per diluted share, in financial advisory fees related to the 2011 unsolicited indication of interest and reflects the non-recognition of a previously forecasted first quarter tax benefit of $5.3 million, or $0.24 per diluted share. This compares to a net loss of $16 million, or $0.62 per diluted share, reported in the comparable period in 2012, which includes $1.4 million, or $0.03 per diluted share, of legal and financial advisory fees and expenses related to the unsolicited indication of interest.
2013 Guidance & Dividend
For 2013, the company continues to anticipate an increase in net sales of 4 percent to 5 percent to approximately $694 million to $700 million, with diluted earnings per share in the range of approximately $0.63 to $0.68, excluding financial advisory fees related to the 2011 indication of interest.
The Jakks board of directors has declared a regular quarterly cash dividend of $0.07 per common share payable on July 1, 2013, to shareholders of record at the close of business on June 14, 2013, reflecting a current annual yield of 2.7 percent.
As of March 31, 2013, Jakks’ working capital was $158.3 million, including cash and equivalents and marketable securities of $165.6 million, compared to working capital of $354.7 million including cash and equivalents and marketable securities of $254.8 million as of March 31, 2012. The year-over-year decreases in working capital and cash and equivalents and marketable securities are primarily due to the company’s $80 million stock repurchase and acquisition of Maui in July 2012 and Jakks’ investments in the DreamPlay Toys LLC joint venture and DreamPlay LLC in September 2012.
Credit Facility
The company terminated and fully paid down its credit facility with Wells Fargo Bank, N.A. on April 2, 2013, that was originally set to expire on April 30, 2013, and is in the process of obtaining a replacement credit facility that is expected to close during May 2013.
Yu-Gi-Oh! Airing on Nicktoons
Yu-Gi-Oh! is set to air on Nicktoons in the U.S. The new deal with Nicktoons includes a pick-up of two seasons of the latest installment, Yu-Gi-Oh! Zexal, along with the entire Yu-Gi-Oh! library which includes classic Yu-Gi- Oh!, Yu-Gi-Oh! GX, and Yu-Gi-Oh! 5Ds. Classic Yu-Gi-Oh! debuted March 11 on the network and currently airs with back-to-back episodes Monday through Friday at 8:00p.m. (ET). The newly produced Yu-Gi-Oh! Zexal began airing April 12 at 9:00p.m. (ET) with back-to-back episodes.
4K Media, Inc. is responsible for managing the Yu-Gi-Oh! franchise in all territories outside of Asia. 4K Media, Inc., is the newly formed, wholly owned subsidiary of Konami Digital Entertainment.