-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, HayufITJ5mmh139DBnzksV7cPFmBBvAt/NyZuHOrErLslFcIVkNWQ1tMZaUxlqml BY7YGVLlkEZnEe6x4OTMkw== 0001157523-05-003513.txt : 20050420 0001157523-05-003513.hdr.sgml : 20050420 20050420092802 ACCESSION NUMBER: 0001157523-05-003513 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20050419 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050420 DATE AS OF CHANGE: 20050420 FILER: COMPANY DATA: COMPANY CONFORMED NAME: JAKKS PACIFIC INC CENTRAL INDEX KEY: 0001009829 STANDARD INDUSTRIAL CLASSIFICATION: GAMES, TOYS & CHILDREN'S VEHICLES (NO DOLLS & BICYCLES) [3944] IRS NUMBER: 954527222 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-28104 FILM NUMBER: 05760712 BUSINESS ADDRESS: STREET 1: 22761 PACIFIC COAST HWY STREET 2: #B202 CITY: MALIBU STATE: CA ZIP: 90265 BUSINESS PHONE: 3104567799 MAIL ADDRESS: STREET 1: 22761 PACIFIC COAST HWY STREET 2: B202 CITY: MALIBU STATE: CA ZIP: 90265 8-K 1 a4868540.txt JAKKS PACIFIC 8-K ================================================================================ 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 19, 2005 (April 19, 2005) JAKKS PACIFIC, INC. (Exact Name of registrant as specified in its charter) Delaware 0-28104 95-4527222 (State or other jurisdiction (Commission (I.R.S. Employer of incorporation) File Number) Identification No.) 22619 Pacific Coast Highway 90265 Malibu, California (Zip Code) (Address of principal executive offices) 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 (see General Instruction A.2. below): [ ] 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 19, 2005 ITEMS IN FORM 8-K ----------------- Page ---- Facing Page 1 Item 2.02 Results of Operations and Financial Condition 3 Item 9.01 Financial Statements and Exhibits 3 Signatures 4 Exhibit Index 5 2 Item 2.02. Results of Operations and Financial Condition. On April 19, 2005, we issued a press release announcing our results of operations for the quarter ended March 31, 2004. A copy of such release is annexed as an exhibit and is incorporated by reference hereto in its entirety. Item 9.01. Financial Statements and Exhibits. (c) Exhibits Exhibit Number Description - ------- ----------- 99.1* April 19, 2005 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 19, 2005 JAKKS PACIFIC, INC. By: /s/ Jack Friedman ------------------------------------- Jack Friedman Chairman and Chief Executive Officer 4 Exhibit Index Exhibit Number Description ------- ----------- 99.1* April 19, 2005 Press Release ---------------------- * Filed herewith 5 EX-99.1 2 a4868540ex991.txt PRESS RELEASE Exhibit 99.1 JAKKS Pacific Reports Record First Quarter 2005 Results; First Quarter Net Sales Increase 82% and Net Income Increases by 166%; JAKKS Named Toy Vendor of the Year by Wal-Mart MALIBU, Calif.--(BUSINESS WIRE)--April 20, 2005--JAKKS Pacific(R), Inc. (NASDAQ:JAKK), a leading multi-brand company that designs and markets a broad range of toys, writing instruments and other consumer products, today announced results for the first quarter ended March 31, 2005. First quarter 2005 net sales were $134.7 million, an 82% increase from the $74.0 million recorded in the comparable period last year. Net income for the first quarter was $10.1 million, or $0.34 per diluted share, compared to $3.8 million, or $0.15 per diluted share, reported in the first quarter of 2004. "We are off to a strong start in 2005, and are proud that Wal-Mart, the nation's largest retailer, recognized JAKKS Pacific this past Friday as Toy Vendor of the Year," said Jack Friedman, Chairman and Chief Executive Officer, JAKKS Pacific. "The performance of our products at retail has given us an outstanding first quarter, in which we achieved top-line growth in our traditional toy and international categories, and improvements in both operating efficiencies and increased shelf space at all of the leading retailers. We continue to enhance our long-term growth prospects with the introduction of new licensed and non-licensed products, including our innovative Fly Wheels(TM) vehicle product line marketed under the Road Champs brand, and our Sky Dancers(R) action doll line and Doodle Bear(R) plush line, both marketed under our Play Along division." First quarter revenue was highlighted by JAKKS Pacific's Plug-It-In and Play TV Games(TM) line and strong market reception for the new Fly Wheels vehicle line, as well as a contribution from JAKKS' Play Along division with the continuing performance of its Care Bears(R) and Cabbage Patch Kids(R) product lines. JAKKS plans to expand shelf space for its Fly Wheels line in the traditional mass market and drug store channels, as well as in non-traditional locations, such as auto-related retailers, in coming quarters. Additionally, a number of other licensed and non-licensed product lines performed well in the quarter, including Sky Dancers, Doodle Bear, WWE(R) action figures, Nickelodeon(R) Splish Splat(TM) and other compounds, and Vivid Velvet(R) activities. Stephen Berman, President and Chief Operating Officer, stated, "We remain confident that our strong portfolio of brands, combined with our commitment to product innovation and advertising, will enable our company to achieve another record year of revenue and earnings. Ms. Pac-Man(R) continues to be a strong seller, and we will have more than 20 new exciting titles planned for our TV Games product line, including Star Wars(R), Mortal Kombat(R), Superman(TM), The Batman(TM) animated series and numerous Nickelodeon properties. In addition to new titles, we are making technological advancements, with the recent introduction of wireless TV Games and the planned fall 2005 launch of our GAMEKEY(TM) expansion packs. The wireless and GAMEKEY(TM) technology was well-received at the recent Toy Fair, and we are excited about the expanded market opportunity this new technology offers both JAKKS Pacific and our retail partners. We also have a number of new licensing agreements, including Hasbro's My Little Pony(R), Marvel Superheroes(TM) and additional Care Bears categories that we expect will contribute to future revenue and profitability." Berman concluded, "Looking forward, we believe that we are well positioned for the coming months with a number of exciting new products. Our balance sheet remains strong and at March 31, 2005, we had approximately $194.0 million in cash and investments and $251.9 million in working capital." Friedman concluded, "We reaffirm our prior guidance for 2005 of approximately $660 million in revenue, and net income of approximately $70 million, or $2.28 earnings per diluted share." Anyone interested will be able to listen to the teleconference, scheduled to begin at 7:00 a.m. PDT (10:00 a.m. EDT) on April 20th, via the Internet at www.jakkspacific.com, www.CompanyBoardroom.com or www.StreetEvents.com. These websites will also host an archive of the teleconference for 30 days. A telephonic playback will be available from 11:00 a.m. EDT on April 20th through 12:00 a.m. EDT on May 4th. The playback can be accessed by calling 888-843-8996, or 630-652-3044 for international callers, pass code "11422172." About JAKKS Pacific, Inc.: JAKKS Pacific, Inc. is a multi-brand company that designs and markets a broad range of toys and consumer products. The product categories include: Action Figures, Art Activity Kits, Stationery, Writing Instruments, Performance Kites, Water Toys, Sports Activity Toys, Vehicles, Infant/Pre-School, Plush, Construction Toys, Electronics and Dolls. The products are sold under various brand names, including JAKKS Pacific(R), Play Along(R), Flying Colors(R), Road Champs(R), Child Guidance(R), Pentech(R), Trendmasters(R), Toymax(R), Funnoodle(R), Go Fly a Kite(R), Color Workshop(R) and Plug-it-in and Play TV Games(TM). The Company also participates in a joint venture with THQ Inc. that has exclusive worldwide rights to publish and market World Wrestling Entertainment(R) video games. For further information, visit www.jakkspacific.com or www.jakkstvgames.com. This press release contains 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, 2005 2004 -------------- ------------ (In thousands) ASSETS Current assets: Cash and cash equivalents $170,848 $176,544 Marketable Securities 23,132 19,047 Accounts receivable, net 77,376 102,266 Inventory, net 62,828 50,000 Prepaid expenses and other current assets 23,238 24,682 -------------- ------------ Total current assets 357,422 372,539 -------------- ------------ Property and equipment 39,329 38,213 Less accumulated depreciation and amortization 28,919 27,273 -------------- ------------ Property and equipment, net 10,410 10,940 -------------- ------------ Goodwill, net 257,593 258,331 Trademarks & other assets, net 42,948 45,136 Investment in joint venture 3,185 9,816 -------------- ------------ Total assets $671,558 $696,762 ============== ============ LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable and accrued expenses $72,142 $108,976 Reserve for sales returns and allowances 20,998 23,173 Income taxes payable 12,369 10,847 -------------- ------------ Total current liabilities 105,509 142,996 -------------- ------------ Long-term debt 98,000 98,000 Deferred income taxes 4,285 4,281 -------------- ------------ 102,285 102,281 -------------- ------------ Total liabilities 207,794 245,277 Stockholders' equity: Common stock, $.001 par value 27 26 Additional paid-in capital 283,356 276,642 Retained earnings 186,648 176,564 Deferred compensation from restricted stock grants (4,509) - Accumulated other comprehensive income (loss) (1,758) (1,747) -------------- ------------ 463,764 451,485 -------------- ------------ Total liabilities and stockholders' equity $671,558 $696,762 ============== ============ JAKKS Pacific, Inc. and Subsidiaries First Quarter Earnings Announcement, 2005 Condensed Statements of Operations (Unaudited) Three Months Ended March 31, 2005 2004 ------------------ ------------------- (In thousands, expect per share data) Net sales $134,676 $73,986 Less cost of sales Cost of goods 63,831 36,220 Royalty expense 15,541 5,824 Amortization of tools and molds 1,092 1,476 ------------------ ------------------- Cost of sales 80,464 43,520 ------------------ ------------------- Gross profit 54,212 30,466 Direct selling expenses 19,062 8,701 Selling, general and administrative expenses 19,129 15,392 Depreciation and amortization 2,346 1,489 ------------------ ------------------- Income from operations 13,675 4,884 Other income (expense): Profit from Joint Venture 150 360 Interest, net (198) (481) ------------------ ------------------- Income before provision for income taxes 13,627 4,763 Provision for income taxes 3,543 972 ------------------ ------------------- Net income $10,084 $3,791 ================== =================== Earnings per share - diluted $0.34 $0.15 Shares used in earnings per share - diluted 32,256 30,676 CONTACT: JAKKS Pacific, Inc. Genna Goldberg, 310-455-6235 or Integrated Corporate Relations John Mills, 310-395-2215 -----END PRIVACY-ENHANCED MESSAGE-----