JAKKS Pacific® Reports First Quarter Results for 2013

  JAKKS Pacific® Reports First Quarter Results for 2013

                        Company Affirms 2013 Guidance

            Company Declares Cash Dividend for Second Quarter 2013

Business Wire

MALIBU, Calif. -- April 25, 2013

JAKKS Pacific, Inc. (NASDAQ: JAKK) reported results for the Company’s first
quarter ended March 31, 2013.

Net sales for the first quarter of 2013 increased 6.4% 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 $16.0 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.

Stephen Berman, President and CEO, JAKKS Pacific, Inc. stated, “Our first
quarter represents approximately 10% of our projected sales for the 2013
calendar year and we believe we are on track to achieve our previously
announced sales and earnings forecast for the year. During the first quarter,
sales of our broad array of core product lines got off to a good start and we
are optimistic that they will continue to perform as projected. Top
contributors were centered on our evergreen, core brands including our
JAKKS-owned Fly Wheels, Disney Princess dolls and dress-up, Fisher-Price
ride-ons, outdoor and indoor preschool furniture, andoutdoor activity items
from our Maui division. While our costs were somewhat higher, including the
deferral of the $5.3 million tax benefit, which is expected to be recognized
in the third quarter based on our forecast, we believe that operating
efficiencies and continued cost reductions for the balance of the year will
also deliver the projected earnings.

“Looking ahead to the balance of the year, we are very excited about the
launch this Fall of our first DreamPlay products using the proprietary iD
technology of NantWorks, our joint venture partner. The technology will first
appear on select Disney licensed items and next year will be expanded to other
proprietary and licensed products. Our commitment to DreamPlay remains strong
as we believe it addresses the ever-changing play patterns of children. It
provides a unique play experience, which combines the play patterns of
traditional toys with enhanced experiences offered through our iD technology
and first rate augmented reality animation. Our goal is to meld the unique
experiences offered through smart phone and tablet devices, which children are
increasingly turning to, with the fun of traditional toys.

“Our Fall lines are proceeding on plan and we expect a broad array of products
to have wide placement at retail, including in the preschool, seasonal and
Halloween segments. We are looking forward to the launch of toys related to
several highly anticipated movie properties, including our DreamPlay
recognition technology enhanced Little Mermaid products based on the upcoming
Diamond Edition DVD release.”

2013 Guidance & Dividend

For 2013, the Company continues to anticipate an increase in net sales of 4.0%
to 5.0% 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

As of March 31, 2013, the Company’s 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 $80.0 million stock
repurchase and acquisition of Maui in July 2012 and our 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.

Conference Call

JAKKS Pacific will webcast its first quarter earnings conference call today,
April 25, 2013, at 9:00 a.m. ET (6:00 a.m. PT). To listen to the live webcast,
go to www.jakks.com/investors, and click on the earnings webcast link under
Events and Presentations at least 10 minutes prior to register, download and
install any necessary audio software. A telephonic playback will be available
from 11:30 a.m. ET on April 25 through May 25, 2013. The playback can be
accessed by calling 1 (888) 843-7419, or 1 (630) 652-3042 for international
callers, pass code “34619439”.

About JAKKS Pacific, Inc.

JAKKS Pacific, Inc. (NASDAQ: JAKK) is a leading designer and marketer of toys
and consumer products with a wide range of products that feature popular
brands and children's toy licenses. JAKKS’ diverse portfolio includes Action
Figures, Electronics, Dolls, Dress-Up, Role Play, Halloween Costumes, Kids
Furniture, Vehicles, Plush, Art Activity Kits, Seasonal Products,
Infant/Pre-School, Construction Toys, Ride-On Vehicles, Wagons, Inflatable
Environments and Tents, Impulse Toys and Pet Products sold under various
proprietary brands including JAKKS Pacific®, Creative Designs International™,
Road Champs®, Funnoodle®, JAKKS Pets™, Plug It In & Play TV Games™, Kids
Only!®, Tollytots®, Disguise®, Moose Mountain® and Maui ®. JAKKS is also the
creator of the underlying Monsuno® property and toy line. JAKKS is an
award-winning licensee of several hundred nationally and internationally known
trademarks including Nickelodeon®, Warner Bros.®, Ultimate Fighting
Championship®, Hello Kitty®, Graco® and Cabbage Patch Kids®. DreamPlay Toys
LLC is a joint venture between JAKKS Pacific, Inc. and NantWorks LLC to
develop, market and sell toys and consumer products incorporating NantWorks’
proprietary iD image recognition technology. www.jakks.com

About DreamPlay Toys LLC

JAKKS Pacific, Inc. and NantWorks LLC formed a joint venture company,
“DreamPlay Toys LLC” to develop, market and sell toys and consumer products
incorporating NantWorks’ proprietary iD image recognition technology. This
noveltechnology enables the consumer to instantly link a physical toy to
interactive content, including video, animation and games using a smart phone
or tablet device to instantly bringing the toy to life. JAKKS Pacific plans to
introduce a broad product line, which will combine this revolutionary
technology with exciting new content, including augmented reality, leaving
consumers with a memorable and entertaining experience. JAKKS Pacific and
NantWorks have also formed DreamPlay LLC, which will extend image recognition
technology to non-toy consumer products and applications.

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. Continued
payment of the quarterly cash dividend will depend on many factors, including,
but not limited to, JAKKS' earnings, financial condition, business development
needs, and is at the discretion of the Board of Directors. 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

                                          March 31,       December 31,
                                              2013                2012
                                              (In thousands)
Current assets:
Cash and cash equivalents                     $ 165,361           $  189,321
Marketable securities                           218                  218
Accounts receivable, net                        64,985               105,455
Inventory, net                                  52,052               59,689
Income taxes receivable                         24,008               24,008
Deferred income taxes                           7,059                7,059
Prepaid expenses and other current             31,916             20,306  
Total current assets                           345,599            406,056 
Property and equipment                          96,779               94,799
Less accumulated depreciation and              80,543             78,973  
Property and equipment, net                    16,236             15,826  
Goodwill                                        48,489               48,836
Trademarks & other assets, net                  72,471               73,946
Investment in joint venture                     4,062                3,161
Investment in DreamPlay LLC                    7,000              7,000   
Total assets                                  $ 493,857          $  554,825 
Current liabilities:
Accounts payable and accrued expenses         $ 80,376            $  101,470
Reserve for sales returns and                   30,725               34,373
Income taxes payable                            18,251               12,922
Short term debt                                57,910             70,710  
Total current liabilities                      187,262            219,475 
Long term debt                                  95,600               94,918
Other liabilities                               18,448               18,345
Income taxes payable                            4,615                4,687
Deferred tax liability                         10,180             10,180  
Total liabilities                              316,105            347,605 
Stockholders' equity:
Common stock, $.001 par value                   22                   22
Additional paid-in capital                      202,785              202,577
Retained earnings (Accumulated                  (20,273 )            8,836
Accumulated other comprehensive                (4,782  )           (4,215  )
income (loss)
Total stockholders' equity                     177,752            207,220 
Total liabilities and stockholders'           $ 493,857          $  554,825 
Working Capital                               $ 158,337           $  186,581

JAKKS Pacific, Inc. and Subsidiaries
First Quarter Earnings Announcement, 2013
Condensed Statements of Income (Unaudited)

                                     Three Months Ended March 31,
                                         2013                      2012
                                         (In thousands, expect per share data)
Net sales                                $  78,069                 $ 73,405
Less cost of sales
Cost of goods                               46,285                   40,245
Royalty expense                             7,354                    8,345
Amortization of tools and molds            1,051                  1,249   
Cost of sales                              54,690                 49,839  
Gross profit                                23,379                   23,566
Direct selling expenses                     10,496                   9,490
Selling, general and                        35,183                   32,430
administrative expenses
Depreciation and amortization              1,545                  1,056   
Loss from operations                        (23,845  )               (19,410 )
Other income (expense):
Equity in net income (loss) of              (646     )               54
joint venture
Interest income                             75                       199
Interest expense, net of benefit           (2,846   )              (2,035  )
Loss before provision (benefit)             (27,262  )               (21,192 )
for income taxes
Provision (benefit) for income             300                    (5,192  )
Net loss                                 $  (27,562  )             $ (16,000 )
Loss per share                           $  (1.26    )             $ (0.62   )
Shares used in loss per share               21,873                   25,831


JAKKS Pacific, Inc.
Joel Bennett
JAKKS Pacific, Inc.
Anne-Marie Feliciano
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