JAKKS Pacific(JAKK) - 2024 Q4 - Annual Results

Financial Performance - Net sales for Q4 2024 were $130.7 million, reflecting a year-over-year increase of 3%[6] - Full-year net sales decreased by 3% to $691.0 million, down from $711.6 million in 2023[6] - Net sales for Q4 2024 were $130,741,000, a 3% increase from $127,396,000 in Q4 2023, while total net sales for the year decreased by 3% to $691,042,000 from $711,557,000[23] - Net sales for the Toys/Consumer Products division decreased by 1.8% year-over-year, totaling $570,018,000[29] - Total net sales for the year decreased by 2.9% to $691,042,000 from $711,557,000[32] Profitability - Gross margin improved to 27.2%, up 70 basis points compared to Q4 2023[6] - Operating income for the full year was $39.7 million, a decrease of 33% from $59.1 million in the previous year[6] - Gross profit for Q4 2024 was $35,553,000, representing a 5% increase from $33,733,000 in Q4 2023, but total gross profit for the year decreased by 5% to $213,021,000 from $223,353,000[23] - The company reported a net loss attributable to common stockholders of $9.1 million in Q4 2024, compared to a loss of $11.3 million in Q4 2023[6] - The company reported a net loss of $9,113,000 in Q4 2024, a 16% improvement from a net loss of $10,872,000 in Q4 2023, with a total net income for the year of $34,200,000, down 10% from $38,113,000[23] - Adjusted net income attributable to common stockholders for the twelve months ended December 31, 2024, was $42,560,000, down from $48,906,000[27] Cash Flow and Dividends - Cash flows provided by operating activities were $38.9 million, down from $66.4 million in 2023[6] - The company ended the year with cash and cash equivalents of $70.1 million, down from $72.6 million in 2023[9] - The company initiated a quarterly cash dividend of $0.25 per share, equating to $1.00 per share annually[4] Expenses - Direct selling expenses increased by 25% in Q4 2024 to $18,201,000 compared to $14,582,000 in Q4 2023, while total selling expenses for the year rose by 8% to $40,105,000 from $36,987,000[23] - The cost of goods sold as a percentage of net sales was 55.3% in Q4 2024, compared to 54.0% in Q4 2023, indicating a 130 basis points increase[24] - The company reported a decrease in royalty expenses by 8% in Q4 2024 to $20,623,000 from $22,533,000 in Q4 2023, with annual royalty expenses down 9% to $106,804,000 from $117,607,000[23] International Sales - International sales increased by 25% in Q4 2024, while North American sales were down 3%[8] - Sales in Europe increased by 41.0% in Q4 2024, totaling $25,359,000 compared to $17,988,000 in Q4 2023[31] - The company experienced a 19.2% increase in Latin America sales year-to-date, totaling $38,159,000[31] Earnings and Adjusted Metrics - Earnings per share (EPS) for Q4 2024 were $(0.83), an improvement from $(1.12) in Q4 2023, while the annual EPS was $3.27, down from $3.70[23] - Adjusted earnings per share (basic) decreased to $3.95 from $4.91, a decline of $0.97[27] - Adjusted EBITDA for Q4 2024 was $(10,154,000), a slight improvement from $(10,929,000) in Q4 2023, with annual adjusted EBITDA of $59,265,000, down from $75,719,000[26] - TTM Adjusted EBITDA fell to $59,265,000, down $16,454,000 or 22% from $75,719,000[27] - The company reported a decrease in TTM Adjusted EBITDA/TTM Net sales percentage to 8.6%, down 200 basis points from 10.6%[27] Interest and Tax - The company experienced a decrease in interest income by 59% in Q4 2024 to $308,000 from $757,000 in Q4 2023, while interest expense decreased by 78% to $(157,000) from $(710,000)[23] - The provision for income taxes showed a 3% decrease in Q4 2024, amounting to $(5,446,000) compared to $(5,643,000) in Q4 2023[23]