Jakks Pacific Inc. entered into an agreement with Hong Kong Meisheng Culture Co. Ltd. to sell 3,660,891 million shares of the company’s common stock to Meisheng for a total purchase price of $19.3 million. The transaction is subject to approval by the shareholders of Meisheng’s parent company and regulatory filings in China by Meisheng. [Read more...]
Net sales for the fourth quarter were $167.0 million compared to $163.4 million in the fourth quarter 2015, ahead of the company’s latest guidance. As disclosed in mid-December, a number of key licensed products were performing well below prior expectations for the quarter, more than offsetting the strength of some core product lines.
Gross margin in the fourth quarter was 31.2 percent, up from 30.3 percent last year as a result of continuing margin expansion efforts, partially offset by higher tooling amortization. Operating margin was negative 1.4 percent, an improvement from last year due to the higher gross margin and lower SG&A expenses, offset in part by higher marketing expenses.
Reported net loss attributable to Jakks Pacific for the fourth quarter of 2016 was $7.6 million, or $0.47 per diluted share. This compares to net loss attributable to Jakks Pacific of $9.3 million, or $0.50 per diluted share in the same year-ago quarter. Adjusted EBITDA for the fourth quarter was $4.0 million, up from the negative $2.1 million in the year-ago quarter due to the higher margins on slightly higher sales in 2016.
Jakks Pacific Inc. partnered with Warner Bros. Consumer Products, on behalf of DC Entertainment, for a multi-year, global licensing deal to manufacture, market, and distribute large action-pose dolls, dress-up, and Get Ready for Action items based on the DC Super Hero Girls universe.
DC Super Hero Girls follows female Super Heroes and Super Villains of the DC universe during their high school years, before they discover their full super power potential. Each character has his or her own storyline that explores what teen life is like as a Super Hero, including discovering unique abilities, nurturing powers, and mastering the fundamentals of being a hero.
Jakks’ DC Super Hero Girls line will be available at retailers this fall.
Jakks Pacific Inc., Lafig Belgium S.A., and Sony Pictures Consumer Products partnered for the global launch of Smurfs toys inspired by the animated film Smurfs: The Lost Village, from Sony Pictures Animation.
Jakks’ range includes figurines, play sets, and talking plush that will feature Smurfs characters including Smurfette, Clumsy, and Hefty. Key items include Smurfs and Animal Friends Assortment; 8-inch Bean Bag Plush; Smurf Vehicle Packs; Talking Feature Plush; Smurf Mushroom House Playsets; and Jumbo Basic Plush. [Read more...]
Disney Channel ordered a third season of Elena of Avalor, an animated series that follows a brave and adventurous teenager who rules her kingdom. The series premiered last summer in the U.S. and targets kids ages 2 to 11. Elena of Avalor holds the number one spot in its timeslot in the U.S., the UK, Spain, and Portugal. Episodes from the second season will premiere this fall on Disney Channel and Disney Junior. [Read more...]
Jakks Pacific Inc. agreed with a holder of its convertible senior notes due in 2018 to exchange $11.548 million face amount of such notes for 865,000 shares of its common stock and approximately $7.0 million in cash. After such exchange the balance of the face amount of the 2018 notes will have been reduced to approximately $54.7 million from approximately $66.3 million. [Read more...]
Disguise Inc., the Halloween costume division of Jakks Pacific, secured a worldwide licensing agreement with Mojang and Microsoft to create children’s Halloween costumes, accessories, and everyday dress up based on Minecraft. Minecraft is a sandbox video game where players dig (mine) and build (craft) 3-D blocks within a large world of varying terrains and habitats to explore.
Disney Consumer Products and Interactive Media (DCPI) will debut the new retail campaign, Marvel Heroes Come in All Sizes, this spring. The campaign celebrates Marvel Super Heroes and everyday heroes to teach that the best way to measure a Super Hero is by the size of their heart.
New Marvel products will highlight this theme and will be available in categories including home entertainment, television, publishing, and digital content. At retail, Marvel Heroes Come in All Sizes will follow the success of the fall campaign, Marvel Super Hero Spectacular, with new product launches and in-store statements, including Hasbro for six-inch Marvel Legends figures; Funko for larger-scale collectible characters; Lego for updated Mighty Micros; Jakks Pacific for Tsum Tsum characters; Jada Toys for die-cast figures; and Schleich for a collectible figure lineup.
Retail partners will feature marketing campaigns, which include branded end caps at Walmart and Target; Toys “R” Us will debut a front-of-store “What’s Hot” feature; Kohl’s will promote Marvel softlines and toys; and Amazon will offer marketing support for DVDs, books, and licensed product.
Disney Consumer Products and Interactive Media will support the campaign with a series of new brand-driven marketing spots and influencer campaigns. There will also be a stop-motion advertainment spot that will use Hasbro action figures, which will be released in February.