Jakks Reports Disappointing QuarterThursday, February 21, 2013
Jakks Pacific Inc. on Thursday reported a larger net loss for the key holiday-season fourth quarter, as sales fell and the Malibu toymaker took more than $92 million in charges.
The company reported a net loss of more than $119 million (-$5.45 a share), up 490 percent from the same period a year earlier. Revenue fell 5 percent to less than $134 million.
“We are disappointed by our performance,” Chief Executive Stephen Berman said in a statement. “The difficult and challenging toy environment did not generate the sales that had been anticipated, and several of our key products did not achieve the sales levels that we had planned for, also resulting in license royalty minimum guarantee shortfalls.”
The results included a one-time charge of more than $91 million for impairment of deferred tax assets, and a $800,000 charge for legal and advisory fees related to an earlier unsolicited bid by Oaktree Capital Management LP to acquire the company Excluding the charges, the net loss would have been $27.2 million (-$1.24).
Shares closed down 31 cents, or 2 percent, to $12.74 on the Nasdaq.