JAKKS Pacific, 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, 2007.
First quarter net sales increased 15.7% to $124.1 million compared to $107.2 million in the same period last year. Net income for the first quarter of 2007 was $3.2 million, resulting in diluted earnings per share of $0.12, an increase of 33%. Net income in the first quarter of 2006 was $2.3 million, or $0.09 per diluted share.
“We are pleased with our first quarter performance and believe we are well positioned to achieve our record sales and earnings expectations for 2007,” said Jack Friedman, Chairman and Chief Executive Officer, JAKKS Pacific.
“Consumer demand for our large feature role-play sets and timeless dress-up items resulted in a meaningful contribution from this category. We also experienced strong sales of our newly introduced line of Pokémon® toys, as well as our WWE® action figures and kid-driven Plug It In & Play TV Games™ titles, among other products based on popular entertainment content.”
Stephen Berman, President and Chief Operating Officer, stated, “During the first quarter, we launched several new well-performing products and line extensions, including our TV Game product based on the hit NBC game show, Deal or No Deal®. Sales of our pet products continue to increase as more mass and specialty retailers expand shelf space devoted to our pet product offerings.
“We continue to expand our core products through internal product development initiatives and have many new products launching throughout the year that we anticipate will provide continued growth for JAKKS Pacific in 2007, including fashion dolls, dress-up and role-play products for the two Disney 'tween' sensations Hannah Montana™ and The Cheetah Girls™; a special edition 25th Anniversary Care Bear®; and new XPV Xtreme Performance Vehicle® toys. These products, along with our Plug It In & Play EyeClops™ bionic eye, are expected to ship at the end of the second quarter.”
Mr. Friedman added, “We will continue to seek to grow our business by actively pursuing additional character and product licenses, as well as complementary acquisitions that offer valuable product lines, trademarks or brands. Our financial position remains very strong and, as of March 31, 2007, our working capital was approximately $284.1 million, including cash and equivalents of $192.0 million.
“We are reaffirming our previously issued 2007 guidance of at least $800 million in net sales and net income of $75.8 million, or $2.39 per diluted share.”
JAKKS Pacific is hosting a teleconference at 10:30 a.m. ET (7:30 a.m. PT) on April 26th, via the Internet at www.jakkspacific.com
, or www.StreetEvents.com
. These websites will host an archive of the teleconference for 30 days. A telephonic playback will be available from 11:45 a.m. ET on April 26th through 12:00 a.m. ET on May 24th. The playback can be accessed by calling 800-642-1687, or 706-645-9291 for international callers, pass code “5235346.”