Jakks' sales up in third
By Staff -- Playthings, 10/21/2008 6:56:00 AM
MALIBU, Calif.—Jakks Pacific reported a double-digit increase in sales and a tax benefit-fueled jump in earnings during the third quarter.
Third quarter 2008 net sales rose 12 percent versus the third quarter of 2007 to $357.8 million, propelled by “solid results coming from our dolls, action figures, role play, activity toys and electronics categories,” according to Stephen Berman, Jakks’ president and chief operating officer.
Net income for the third quarter rose 14 percent to $54.1 million, or $1.70 per diluted share, compared to $47.3 million, or $1.45 per diluted share, reported in the third quarter of 2007.
Included in the toymaker’s net income statement are tax benefits relating to the reversal of $13.3 million of prior tax accruals, worth $0.41 per diluted share, in 2008 and $1.4 million, or $0.04 per diluted share, in 2007, and $9.1 million, or $0.18 per diluted share, in pre-tax non-cash charges relating to the write-down of certain of the company’s trademarks in 2008.
Net sales year to date through September 30 were up nearly 11 percent to $634.1 million.
Net income for the first nine months of 2008, at $59.2 million or $1.88 per diluted share, was up 6 percent compared to the first nine months of 2007. Included in those earnings results are the same tax benefits as those that positively impacted Jakks’ third quarter numbers.
“The bulk of our new items for this year shipped in the third quarter as retailers stocked shelves for the upcoming holiday season, and initial reads on our award-winning top drivers have been promising," said Jack Friedman, chairman and CEO, of the company’s fourth quarter prospects. “We remain confident that our vast and diverse product line, based on classic and known licenses, as well as new internally developed initiatives, will perform for Jakks and our retail partners. Thus far we are seeing positive momentum for a strong full year for our business.”
Friedman added: “We remain confident that we will achieve our 2008 forecast for net sales of at least $891.4 million, with $89.5 million in net income and $2.80 diluted [earnings per share]."
