SECURITIES AND EXCHANGE COMMISSION
WASHINGTON,
D.C. 20549
FORM 8-K
Current
Report
Pursuant
to Section 13 or 15(d)
of
the Securities Exchange Act of 1934
Date
of Report (Date of earliest event reported):
April
23, 2009
JAKKS PACIFIC,
INC.
(Exact
Name of registrant as specified in its charter)
|
Delaware |
0-28104 |
95-4527222 |
|
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(I.R.S. Employer Identification No.) |
|
22619 Pacific Coast Highway Malibu, California |
90265 |
|
|
(Address of principal executive offices) |
(Zip Code) |
Registrant’s telephone number, including area code: (310) 456-7799
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
⃞ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
⃞ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
⃞ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
⃞ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
JAKKS PACIFIC, INC.
INDEX TO FORM 8-K
FILED WITH
THE SECURITIES AND EXCHANGE COMMISSION
April 23, 2009
ITEMS IN FORM 8-K
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Page |
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| Facing Page | 1 | |||
| Item 2.02 | Results of Operations and Financial Condition | 3 | ||
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| Item 9.01 | Financial Statements and Exhibits | 3 | ||
| Signatures | 4 | |||
| Exhibit Index | 5 |
Item 2.02 Results of Operations and Financial Condition.
On April 23, 2009, we issued a press release announcing our results of operations for the quarter ended March 31, 2009. A copy of such release is annexed hereto as an exhibit.
Item
9.01 Financial Statements and Exhibits.
(c) Exhibits
| Exhibit | ||
|
Number |
Description |
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| 99.1* | April 23, 2009 Press Release | |
| ----------------------------- | ||
| * Filed herewith | ||
3
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
|
Dated: |
April 23, 2009 |
JAKKS PACIFIC, INC. |
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By: |
/s/ Jack Friedman |
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Jack Friedman |
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Chairman and Chief Executive Officer |
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4
Exhibit Index
| Exhibit | ||
| Number | Description | |
| 99.1* | April 23, 2009 Press Release | |
| ----------------------------- | ||
| * Filed herewith | ||
5
Exhibit 99.1
JAKKS Pacific® Reports First Quarter 2009 Results
MALIBU, Calif.--(BUSINESS WIRE)--April 23, 2009--JAKKS Pacific, Inc. (NASDAQ: JAKK) announces results for the Company’s first quarter ended March 31, 2009.
First quarter 2009 net sales were $108.7 million, compared to $130.9 million recorded in the comparable period last year. The Company had a net loss for the first quarter of $10.8 million, or $0.40 per share, compared to net income of $0.9 million, or $0.03 per diluted share, in 2008.
“Both sell-in and sell-through in the first quarter were light, as expected,” said Jack Friedman, JAKKS’ Chairman and Co-Chief Executive Officer. “And, our results were also impacted by closeout sales that affected gross margins and by incremental overhead costs related to the addition of our newly acquired divisions.”
JAKKS’ President and Co-Chief Executive Officer, Stephen Berman added, “Our value-driven portfolio of products has been well-received by our retail partners. We believe our key items will be both appealing and attainable to consumers, and will buoy sales in the second half of the year. Strong contributors will likely come from our Girl Gourmet and EyeClops-branded product lines, as well as Disney pretend play products and various boys’ action toys, as well as Halloween costumes from our new Disguise division, which will not significantly contribute to revenues and profitability until the third quarter of this year.”
Operations used cash in the quarter of $6.9 million, but our financial position remains very strong. As of March 31, 2009, our working capital was $313.5 million, including cash and equivalents and marketable securities of $146.0 million, and we continue to evaluate potential acquisition opportunities while executing on internal growth initiatives.
As for our 2009 guidance, we are still planning to grow full-year revenue above 2008 levels to $920 million. Taking into consideration the economic climate and continuing margin pressures, we are revising our earnings guidance to $1.70 to $2.00 per diluted share.
Conference Call
JAKKS Pacific will host a conference call on Thursday, April 23, 2009 at 9:00a.m. ET when the Company will discuss the first quarter results in more detail. Anyone interested will be able to listen to the live teleconference, scheduled to begin at 9:00 a.m. ET on April 23, 2009, via the Internet at investors.jakks.com. The website will host an archive of the teleconference for 30 days. A telephonic playback will be available from 11:00 a.m. ET on April 23, 2009 through 11:00 a.m. ET on May 23, 2009. The playback can be accessed by calling 888-843-8996, or 630-652-3044 for international callers, pass code “24387169.”
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 some of the most popular children's toy licenses in the world. JAKKS’ diverse portfolio includes Action Figures, Art Activity Kits, Stationery, Writing Instruments, Performance Kites, Water Toys, Sports Activity Toys, Vehicles, Infant/Pre-School, Plush, Construction Toys, Electronics, Dolls, Dress-Up, Role Play, and Pet Toys and Accessories, sold under various proprietary brands including JAKKS Pacific®, Play Along®, Flying Colors®, Creative Designs International™, Road Champs®, Child Guidance®, Pentech®, Funnoodle®, Go Fly a Kite®, Color Workshop®, JAKKS Pets™, EyeClops®, Plug It In & Play TV Games™, Girl Gourmet™, Kids Only®, Tollytots® and Disguise. JAKKS is an award-winning licensee of several hundred nationally and internationally known trademarks including Disney, Nickelodeon, Warner Bros., World Wrestling Entertainment, Ultimate Fighting Championship, Graco and Cabbage Patch Kids. JAKKS and THQ Inc. participate in a joint venture that has worldwide rights to publish and market World Wrestling Entertainment video games. For further information, visit www.jakks.com.
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.
| JAKKS Pacific, Inc. and Subsidiaries | ||||||||||||||
| Condensed Consolidated Balance Sheets | ||||||||||||||
| March 31, | December 31, | |||||||||||||
| 2009 | 2008 | |||||||||||||
| (In thousands) | ||||||||||||||
| ASSETS | ||||||||||||||
| Current assets: | ||||||||||||||
| Cash and cash equivalents | $ | 145,768 | $ | 169,520 | ||||||||||
| Marketable securities | 198 | 195 | ||||||||||||
| Accounts receivable, net | 71,173 | 147,587 | ||||||||||||
| Inventory, net | 79,162 | 87,944 | ||||||||||||
| Income taxes receivable | 22,209 | 22,288 | ||||||||||||
| Deferred income taxes | 17,278 | 17,993 | ||||||||||||
| Prepaid expenses and other current assets | 44,517 | 29,670 | ||||||||||||
| Total current assets | 380,305 | 475,197 | ||||||||||||
| Property and equipment | 85,172 | 81,412 | ||||||||||||
| Less accumulated depreciation and amortization | 55,787 | 52,914 | ||||||||||||
| Property and equipment, net | 29,385 | 28,498 | ||||||||||||
| Goodwill, net | 406,713 | 427,693 | ||||||||||||
| Trademarks & other assets, net | 61,767 | 43,552 | ||||||||||||
| Investment in video game joint venture | 56,501 | 53,184 | ||||||||||||
| Total assets | $ | 934,671 | $ | 1,028,124 | ||||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||
| Current liabilities: | ||||||||||||||
| Accounts payable and accrued expenses | $ | 47,583 | $ | 119,629 | ||||||||||
| Reserve for sales returns and allowances | 18,943 | 23,317 | ||||||||||||
| Income taxes payable | 252 | 7,190 | ||||||||||||
| Total current liabilities | 66,778 | 150,136 | ||||||||||||
| Long term debt | 98,000 | 98,000 | ||||||||||||
| Other liabilities | 2,223 | 2,112 | ||||||||||||
| Income taxes payable | 4,686 | 4,686 | ||||||||||||
| Deferred income taxes | 26,232 | 26,237 | ||||||||||||
| 131,141 | 131,035 | |||||||||||||
| Total liabilities | 197,919 | 281,171 | ||||||||||||
| Stockholders' equity: | ||||||||||||||
| Common stock, $.001 par value | 28 | 28 | ||||||||||||
| Additional paid-in capital | 293,414 | 292,809 | ||||||||||||
| Retained earnings | 447,546 | 458,345 | ||||||||||||
| Accumulated other comprehensive income (loss) | (4,236 | ) | (4,229 | ) | ||||||||||
| 736,752 | 746,953 | |||||||||||||
| Total liabilities and stockholders' equity | $ | 934,671 | $ | 1,028,124 | ||||||||||
| JAKKS Pacific, Inc. and Subsidiaries | |||||||||||||
| First Quarter Earnings Announcement, 2009 | |||||||||||||
| Condensed Statements of Income (Unaudited) | |||||||||||||
| Three Months Ended March 31, | |||||||||||||
| 2009 | 2008 | ||||||||||||
| (In thousands, expect per share data) | |||||||||||||
| Net sales | $ | 108,685 | $ | 130,935 | |||||||||
| Less cost of sales | |||||||||||||
| Cost of goods | 58,557 | 69,094 | |||||||||||
| Royalty expense | 10,912 | 11,465 | |||||||||||
| Amortization of tools and molds | 2,235 | 2,935 | |||||||||||
| Cost of sales | 71,704 | 83,494 | |||||||||||
| Gross profit | 36,981 | 47,441 | |||||||||||
| Direct selling expenses | 13,074 | 12,105 | |||||||||||
| Selling, general and administrative expenses | 38,972 | 33,468 | |||||||||||
| Depreciation and amortization | 2,508 | 2,762 | |||||||||||
| Income (loss) from operations | (17,573 | ) | (894 | ) | |||||||||
| Other income (expense): | |||||||||||||
| Profit from video game joint venture | 2,896 | 2,432 | |||||||||||
| Interest income | 179 | 1,320 | |||||||||||
| Interest expense, net of benefit | (1,267 | ) | (1,558 | ) | |||||||||
| Other expense | - | - | |||||||||||
| Income (loss) before provision for income taxes | (15,765 | ) | 1,300 | ||||||||||
| Provision (benefit) for income taxes | (4,966 | ) | 423 | ||||||||||
| Net income (loss) | $ | (10,799 | ) | $ | 877 | ||||||||
| Earnings per share - diluted | $ | (0.40 | ) | $ | 0.03 | ||||||||
| Shares used in earnings per share - diluted | 26,827 | 28,453 | |||||||||||
CONTACT:
JAKKS Pacific, Inc.
Genna Rosenberg, 310-455-6235
or
Joel
Bennett, 310-455-6210