Jakks Pacific reported financial results for the second quarter ended June 30, 2017.
Net sales for second quarter 2017 were $119.6 million compared to $141.0 million reported in the same period the year prior. The reported net loss attributable to the company for the second quarter was $16.7 million, which included a non-cash charge of $2.3 million related to the write-down of accounts receivable from 2014/2015 sales to an online retailer no longer in business. This compares to a net loss attributable to JAKKS Pacific of $4.4 million, or $0.27 loss per diluted share, reported in 2016. Adjusted EBITDA for the second quarter was negative $5.4 million, compared to Adjusted EBITDA of $4.0 million in 2016.
Gross margin in the second quarter 2017 was 28.2 percent, down from 31.8 percent last year as a result of deleveraging of fixed costs, shifts in product mix and closeout sales in certain categories.
Operating loss for the second quarter 2017 was $14.1 million, including the $2.3 million non-cash charge related to the accounts receivable write-down due to an online retailer no longer in business, compared to an operating loss of $1.1 million in the second quarter of 2016. While overhead declined in the quarter, operating income was impacted by the deleveraging of fixed operating costs on lower sales, lower gross margin and an increase in direct selling costs including marketing expenses due to Easter occurring in mid-April in 2017 versus in March 2016.
