NASDAQ$JAKK

JAKKS Pacific Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Reported substantial progress on improving profitability.

JAKKS Pacific reported a decrease in net sales for Q4 2020, down 16% compared to the previous year, primarily due to lower sales of Frozen products. Despite the sales decline, the net loss attributable to common stockholders improved. The company's gross margin increased due to lower royalties and improved inventory management, reaching the highest Q4 percentage in ten years.

  • Net sales were $128.3 million, down 16% year-over-year, but up 16% excluding declines in Frozen products.
  • Gross margin was 32.8%, up 240 basis points compared to Q4 2019, driven by lower royalties and improved inventory management.
  • Net loss attributable to common stockholders improved to $11.7 million from $20.6 million in Q4 2019.
  • Cash and cash equivalents totaled $92.7 million as of December 31, 2020, compared to $66.3 million as of December 31, 2019.

Headline financials

Total Revenue

$128M

Previous: $153M-15.9%
EPS (adj)

-$0.80

Previous: -$2.60+69.2%
Gross Margin

32.8%

No prior period
Adjusted EBITDA

$3.87M

No prior period
Capital Expenditures

$2.1M

Previous: $1.79M+17.1%
Free Cash Flow

$25.5M

Previous: -$6.07M+520.2%
Net Income

-$11.3M

Previous: -$20.2M+44.0%
Operating Income

$1.13M

Previous: -$10.8M+110.5%
Gross Profit

$42M

Previous: $46.4M-9.4%
Cash & Equivalents

$88M

Previous: $61.6M+42.8%
Total Assets

$329M

Previous: $365M-9.8%
Stock-Based Comp

$797K

Previous: $996K-20.0%

Revenue & EPS history

JAKKS · Revenue · Quarterly

$128M

Q4 2020-15.9%vs Q4 2019
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

JAKKS · $310M total across 2 segments · Q3 2023

  • Toys/Consumer Products
    $246M
  • Costumes
    $63.7M

Forward guidance

JAKKS Pacific expects that toy sales in 2021 will get a boost from a robust slate of entertainment content from our licensing partners, especially Disney.

Tailwinds

  • Toy sales in 2021 will get a boost from a robust slate of entertainment content from our licensing partners, especially Disney.
  • Releasing toys in support of Disney’s Raya and the Last Dragon and Encanto.
  • The extraordinary success of Disney+ has given families all over the world year-round access to Disney content, which will help keep kids connected to the characters they love and to cherish the toys we make based on those characters.
  • Expects 2021 to see a return to more normal patterns of shopping, gift-giving and celebrating Halloween.
  • Continued emphasis on core products, margin improvement and cash preservation will lead to improved results in 2021.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2020

Historical avgQ4 2020

-0.4%

Avg return

Earnings day

-1.5%

Avg return

5 days after

-0.1%

Avg return

30 days after

36%

23 / 64 earnings

Positive

+38.8%

Q3 2013

Best reaction

-27.3%

Q4 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.9%-3.4%-9.4%
Q3 2025-6.2%-1.1%-8.3%
Q1 2025-0.9%-6.6%+3.4%
Q4 2024-13.8%-21.5%-29.4%
Q3 2024+15.0%+11.2%+6.2%
Q2 2024+17.4%+2.2%+18.7%
Q1 2024-13.4%-15.4%-18.0%
Q4 2023-27.3%-31.1%-30.0%
Q3 2023+37.1%+58.0%+78.7%
Q2 2023+2.0%+16.0%+9.2%
Q1 2023+8.3%+11.1%+6.6%
Q4 2022-20.3%-16.6%-1.7%
Q3 2022-1.9%-12.0%-5.0%
Q2 2022+33.2%+31.3%+42.6%
Q1 2022+4.8%+21.9%+1.0%
Q4 2021+5.3%+8.2%+5.6%
Q3 2021-6.0%-1.5%-5.9%
Q2 2021+9.0%+12.3%+9.0%
Q1 2021+23.0%+31.5%+16.6%
Q4 2020-7.5%-18.4%-14.6%
Q3 2020+26.1%+4.2%+8.3%
Q2 2020-14.0%-16.5%-36.3%
Q1 2020-14.4%-9.1%+72.7%
Q4 2019-8.4%-16.7%-63.5%
Q3 2019+4.1%-7.2%+22.9%
Q2 2019-10.0%-12.5%+3.8%
Q1 2019-21.4%-28.2%-28.2%
Q4 2018-14.6%-21.6%-47.2%
Q3 2018+7.0%+7.5%+5.7%
Q2 2018-2.1%-4.2%+3.3%
Q1 2018+14.3%+11.9%+47.6%
Q4 2017-8.5%-4.3%-12.8%
Q3 2017-13.2%-19.1%-23.5%
Q2 2017-6.7%-9.3%-6.7%
Q1 2017-4.3%-5.8%-19.2%
Q4 2016+8.9%+4.0%+6.9%
Q3 2016-16.6%-16.0%-15.3%
Q2 2016+3.5%+8.2%+1.9%
Q1 2016-2.6%
Q4 2015-18.5%
Q3 2015-6.1%
Q2 2015+9.1%
Q1 2015-1.7%
Q4 2014-3.4%
Q3 2014-18.2%
Q2 2014-13.5%
Q1 2014-2.9%
Q4 2013+22.4%
Q3 2013+38.8%
Q2 2013-1.1%
Q1 2013+5.7%
Q4 2012-7.6%
Q3 2012-2.1%
Q2 2012+1.2%
Q1 2011-0.2%
Q1 2012+0.1%
Q4 2009-1.1%
Q4 2011-1.1%
Q3 2010-1.2%
Q3 2011-1.2%
Q2 2010-3.2%
Q4 2010-3.2%
Q2 2011-3.2%
Q1 2010+2.0%

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