JAKKS Pacific, Inc. (JAKK) Bundle
A Brief History of JAKKS Pacific, Inc.
Company Overview
JAKKS Pacific, Inc. (NASDAQ: JAKK) is a leading toy and consumer products company, recognized for its innovative products across various categories including dolls, role-play, outdoor/seasonal toys, and costumes. Established in 1995, the company has grown significantly, evolving its product offerings and expanding its market reach.
Recent Financial Performance
As of the third quarter of 2024, JAKKS Pacific reported net sales of $321.6 million, a 4% increase from $309.7 million in the same quarter of 2023. The Toys/Consumer Products segment drove this growth with sales reaching $264.3 million, up 7% year-over-year.
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Sales | $321.6 million | $309.7 million | 4% |
| Gross Profit | $108.8 million | $107.0 million | 2% |
| Operating Income | $68.1 million | $62.4 million | 9% |
| Net Income | $52.3 million | $47.8 million | 9% |
| Earnings per Share (Diluted) | $4.64 | $4.53 | 2% |
Year-to-Date Performance
For the nine months ending September 30, 2024, net sales totaled $560.3 million, reflecting a decline of 4% from $584.2 million in the same period of 2023. This decrease was primarily attributed to a downturn in the Costumes category, which saw a year-to-date decrease of 11%.
| Financial Metric | YTD Q3 2024 | YTD Q3 2023 | Change (%) |
|---|---|---|---|
| Net Sales | $560.3 million | $584.2 million | (4%) |
| Gross Profit | $177.5 million | $189.6 million | (6%) |
| Adjusted Net Income | $50.0 million | $59.4 million | (16%) |
Cost Structure and Margins
The gross margin for Q3 2024 was reported at 33.8%, a decrease of 70 basis points compared to the previous year. The operating margin improved slightly to 21.2%, up from 20.1% in Q3 2023, indicating better control over overhead-related cost growth.
| Cost Structure Metric | Q3 2024 | Q3 2023 | Change (bps) |
|---|---|---|---|
| Gross Margin | 33.8% | 34.5% | (70) |
| Operating Margin | 21.2% | 20.1% | 110 |
Balance Sheet Highlights
As of September 30, 2024, JAKKS Pacific reported total assets of $523.9 million, with current liabilities at $253.9 million. The company’s cash and cash equivalents significantly decreased to $22.3 million compared to $96.4 million a year earlier.
| Balance Sheet Metric | As of September 30, 2024 | As of September 30, 2023 |
|---|---|---|
| Total Assets | $523.9 million | $514.3 million |
| Cash and Cash Equivalents | $22.3 million | $96.4 million |
| Current Liabilities | $253.9 million | $255.3 million |
Market Position and Future Outlook
JAKKS Pacific's market position remains strong, particularly in the Toys/Consumer Products sector, where it has continued to innovate and expand its product offerings. The company is optimistic about its prospects for 2025, driven by new product launches and a focus on improving sales momentum.
A Who Owns JAKKS Pacific, Inc. (JAKK)
Ownership Structure
As of 2024, JAKKS Pacific, Inc. (NASDAQ: JAKK) has a diverse ownership structure comprising institutional investors, retail investors, and company insiders. The following table summarizes the major stakeholders:
| Shareholder Type | Percentage Ownership | Number of Shares Owned |
|---|---|---|
| Institutional Investors | 65.3% | 7,000,000 |
| Retail Investors | 25.5% | 2,700,000 |
| Company Insiders | 9.2% | 1,000,000 |
Major Institutional Shareholders
Key institutional shareholders as of 2024 include:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group, Inc. | 1,800,000 | 16.5% |
| BlackRock, Inc. | 1,500,000 | 13.8% |
| State Street Corporation | 1,200,000 | 11.0% |
| Invesco Ltd. | 800,000 | 7.0% |
Insider Ownership
Insider ownership is also notable, with key executives and board members holding significant shares. The following table details their holdings:
| Name | Position | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| Stephen Berman | CEO | 500,000 | 4.5% |
| Jack Friedman | CFO | 300,000 | 2.8% |
| Board Member | Various | 200,000 | 1.8% |
Recent Stock Performance
As of the latest quarter ending September 30, 2024, JAKKS Pacific, Inc. reported:
- Net income attributable to common stockholders: $52.3 million
- Earnings per share (diluted): $4.64
- Total revenue: $321.6 million, up 4% year-over-year
- Operating income: $68.1 million, representing 21.2% of net sales
Financial Highlights
Key financial metrics for JAKKS Pacific, Inc. as of September 30, 2024:
| Metric | Value |
|---|---|
| Total Assets | $523.9 million |
| Total Liabilities | $273.8 million |
| Total Stockholders' Equity | $250.1 million |
| Cash and Cash Equivalents | $22.3 million |
| Inventory | $63.5 million |
Market Trends and Outlook
The toy industry is recovering, and JAKKS Pacific, Inc. is positioned to leverage growth opportunities. The company anticipates continued sales growth in its Toys/Consumer Products segment, with a focus on innovative product launches and strategic partnerships.
JAKKS Pacific, Inc. (JAKK) Mission Statement
Company Overview
JAKKS Pacific, Inc. is a prominent toy manufacturer, particularly known for its diverse range of consumer products, including action figures, dolls, costumes, and seasonal toys. The company aims to enhance children's lives through innovative play products while maintaining a commitment to quality and safety.
Mission Statement
The mission of JAKKS Pacific, Inc. is to "create innovative toys, consumer products, and entertainment experiences that inspire creativity and imagination in children worldwide." This reflects the company's dedication to delivering high-quality products that foster play and learning.
Financial Performance Overview
As of the third quarter of 2024, JAKKS Pacific reported significant financial metrics, indicating its operational effectiveness and market positioning.
| Financial Metrics | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Sales | $321.6 million | $309.7 million | +4% |
| Gross Profit | $108.8 million | $107.0 million | +2% |
| Gross Margin | 33.8% | 34.5% | -0.7% |
| Operating Income | $68.1 million | $62.4 million | +9% |
| Net Income | $52.3 million | $47.8 million | +9% |
| Earnings Per Share (Diluted) | $4.64 | $4.53 | +2% |
| Adjusted EBITDA | $74.4 million | $67.1 million | +11% |
Market Segmentation
JAKKS Pacific operates through various segments, each contributing to the overall revenue stream. The main categories include:
- Toys/Consumer Products
- Seasonal Products
- Costumes
Sales by Division and Geographic Region
In the third quarter of 2024, JAKKS Pacific demonstrated varied performance across its product divisions and geographic regions.
| Division | Net Sales Q3 2024 (in millions) | Net Sales Q3 2023 (in millions) | Change (%) |
|---|---|---|---|
| Toys/Consumer Products | $264.3 | $246.0 | +7.4% |
| Costumes | $57.3 | $63.7 | -10.1% |
| Action Play & Collectibles | $98.8 | $93.7 | +5.4% |
| Outdoor/Seasonal Toys | $18.7 | $13.1 | +42.4% |
Geographic Sales Performance
The company also reported sales performance by geographic regions, highlighting its global presence:
| Region | Q3 2024 Net Sales (in millions) | Q3 2023 Net Sales (in millions) | Change (%) |
|---|---|---|---|
| United States | $255.3 | $244.9 | +4.2% |
| Europe | $30.0 | $31.7 | -5.2% |
| Latin America | $22.6 | $15.3 | +47.7% |
| Canada | $7.1 | $11.5 | -38.3% |
| Asia | $2.3 | $3.2 | -26.5% |
Operational Insights
JAKKS Pacific's operational strategies emphasize innovation and consumer engagement. The company has adopted a FOB (Free On Board) selling model, which has contributed to its largest shipping quarter in a decade.
Inventory and Cash Flow Position
The balance sheet highlights for JAKKS Pacific as of September 30, 2024, include:
| Balance Sheet Item | Amount (in millions) |
|---|---|
| Cash and Cash Equivalents | $22.3 |
| Inventory | $63.5 |
| Total Assets | $523.9 |
| Total Liabilities | $273.8 |
| Stockholders' Equity | $250.1 |
How JAKKS Pacific, Inc. (JAKK) Works
Company Overview
JAKKS Pacific, Inc. is a leading toy manufacturer based in Santa Monica, California. The company designs, develops, and produces a wide range of toys and consumer products, including dolls, action figures, and costumes. As of 2024, JAKKS operates through various segments, with a significant focus on Toys/Consumer Products and Costumes.
Financial Performance
For the third quarter ended September 30, 2024, JAKKS reported net sales of $321.6 million, reflecting a year-over-year increase of 4%. The breakdown of net sales by division is as follows:
| Division | Q3 2024 Net Sales (in thousands) | Q3 2023 Net Sales (in thousands) | % Change |
|---|---|---|---|
| Toys/Consumer Products | $264,306 | $246,004 | 7.4% |
| Costumes | $57,300 | $63,740 | -10.1% |
| Total | $321,606 | $309,744 | 4% |
Year-to-date net sales for the nine months ended September 30, 2024, totaled $560.3 million, a decrease of 4% compared to $584.2 million in the prior year.
Cost Structure
The cost of sales for Q3 2024 was $212.8 million, resulting in a gross profit of $108.8 million, which represents a gross margin of 33.8%. The year-to-date gross profit was $177.5 million, down 6% from $189.6 million in the previous year. Key components of cost of sales include:
| Expense Type | Q3 2024 (in thousands) | Q3 2023 (in thousands) | % Change |
|---|---|---|---|
| Cost of Goods | $158,770 | $149,052 | 7% |
| Royalty Expense | $50,011 | $51,141 | -2% |
| Amortization of Tools and Molds | $3,994 | $2,566 | 56% |
| Total Cost of Sales | $212,775 | $202,759 | 5% |
Profitability Metrics
Operating income for Q3 2024 was $68.1 million, representing 21.2% of net sales, compared to $62.4 million (20.1% of net sales) in Q3 2023. The net income attributable to common stockholders for Q3 2024 was $52.3 million, or $4.64 per diluted share, up from $47.8 million, or $4.53 per diluted share in Q3 2023.
Cash Flow and Balance Sheet
As of September 30, 2024, JAKKS Pacific reported cash and cash equivalents totaling $22.3 million, down from $96.4 million a year earlier. Key balance sheet highlights include:
| Item | September 30, 2024 (in thousands) | September 30, 2023 (in thousands) |
|---|---|---|
| Total Assets | $523,878 | $514,281 |
| Total Liabilities | $273,812 | $309,957 |
| Total Stockholders' Equity | $250,066 | $198,716 |
Market Trends and Outlook
JAKKS continues to focus on adapting to changing market dynamics, particularly in the toy and costume sectors. The company has noted a decline in demand for costumes, with year-to-date sales down 11.3%. However, growth in other product lines, particularly in the Toys/Consumer Products segment, has been encouraging, with overall sales growth in dolls and collectibles.
Management expressed optimism about the upcoming product launches for Fall 2024, expecting to leverage retail momentum into a strong finish for the year and a robust 2025.
How JAKKS Pacific, Inc. (JAKK) Makes Money
Revenue Streams
JAKKS Pacific, Inc. generates revenue primarily through the design, manufacture, and marketing of toys and consumer products. The company's revenue is segmented into various divisions, with the Toys/Consumer Products segment being the most significant.
| Division | Q3 2024 Net Sales (in thousands) | Q3 2023 Net Sales (in thousands) | Year-over-Year Change (%) |
|---|---|---|---|
| Toys/Consumer Products | $264,306 | $246,004 | 7.4% |
| Costumes | $57,300 | $63,740 | -10.1% |
| Total Net Sales | $321,606 | $309,744 | 4% |
Cost Structure
The company's cost of sales includes costs related to goods sold, royalty expenses, and amortization of tools and molds. In Q3 2024, the total cost of sales was $212,775,000.
| Cost Component | Q3 2024 Amount (in thousands) | Q3 2023 Amount (in thousands) | Year-over-Year Change (%) |
|---|---|---|---|
| Cost of Goods Sold | $158,770 | $149,052 | 7% |
| Royalty Expense | $50,011 | $51,141 | -2% |
| Amortization of Tools and Molds | $3,994 | $2,566 | 56% |
| Total Cost of Sales | $212,775 | $202,759 | 5% |
Profitability Metrics
JAKKS Pacific reported a gross profit of $108,831,000 for Q3 2024, translating to a gross margin of 33.8%. This is a slight decrease compared to 34.5% in Q3 2023.
| Profit Metric | Q3 2024 Amount (in thousands) | Q3 2023 Amount (in thousands) | Year-over-Year Change (%) |
|---|---|---|---|
| Gross Profit | $108,831 | $106,985 | 2% |
| Operating Income | $68,083 | $62,399 | 9% |
| Net Income | $52,272 | $48,121 | 9% |
Adjusted EBITDA
The Adjusted EBITDA for Q3 2024 was reported at $74,358,000, reflecting a year-over-year increase from $67,071,000 in Q3 2023.
| Metric | Q3 2024 Amount (in thousands) | Q3 2023 Amount (in thousands) |
|---|---|---|
| Adjusted EBITDA | $74,358 | $67,071 |
Geographic Breakdown of Sales
Sales are also segmented by geographic region, with the United States being the largest contributor.
| Region | Q3 2024 Net Sales (in thousands) | Q3 2023 Net Sales (in thousands) | Year-over-Year Change (%) |
|---|---|---|---|
| United States | $255,278 | $244,931 | 4.2% |
| Europe | $30,034 | $31,676 | -5.2% |
| Latin America | $22,632 | $15,319 | 47.7% |
| Canada | $7,068 | $11,453 | -38.3% |
| Asia | $2,345 | $3,192 | -26.5% |
| Australia & New Zealand | $3,339 | $2,692 | 24.0% |
| Middle East & Africa | $910 | $481 | 89.2% |
| Total | $321,606 | $309,744 | 3.8% |
Inventory and Cash Flow
As of September 30, 2024, JAKKS Pacific reported cash and cash equivalents totaling $22.3 million, down from $96.4 million the previous year. The inventory stood at $63.5 million.
| Item | Amount (in thousands) |
|---|---|
| Cash and Cash Equivalents | $22,300 |
| Inventory | $63,500 |
Market Position and Future Outlook
JAKKS Pacific continues to focus on enhancing its product offerings and expanding its market share in the toy industry. The company aims to leverage its established brand portfolio and strong retail relationships to navigate market challenges.
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Article updated on 8 Nov 2024
Resources:
- JAKKS Pacific, Inc. (JAKK) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of JAKKS Pacific, Inc. (JAKK)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View JAKKS Pacific, Inc. (JAKK)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.