JAKKS Pacific Inc (JAKK) Quarterly 10-Q Report

The report was filed on November 8, 2024

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JAKKS Pacific, Inc. has submitted its 10-Q filing for the quarterly period ended September 30, 2024.

The filing includes financial statements for the quarter, showing an increase in net sales to $321.6 million from $309.7 million in the same quarter the previous year. The increase is attributed to higher net sales in the Toys/Consumer Products segment.

Cost of sales for the quarter was $212.8 million, representing 66.2% of sales, compared to 65.5% in the same quarter of the previous year. This increase in cost ratio is due to higher product costs.

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The company reported a gross profit of $108.8 million for the quarter, compared to $107.0 million in the previous year, with a slight increase attributed to higher sales.

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Selling, general, and administrative expenses decreased to $40.7 million from $44.6 million, primarily due to lower outbound freight and warehousing expenses.

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Net income for the quarter was $52.3 million, up from $48.1 million in the previous year. The effective tax rate increased to 22.8% from 20.5% due to non-deductible compensation and foreign inclusions.

Cash used in operating activities was $15.2 million, while cash used in investing and financing activities was $9.0 million and $26.5 million, respectively.

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JAKKS had a working capital of $130.4 million as of September 30, 2024. The company highlights its dependency on a limited set of large customers and the seasonal nature of its business.

The filing also details various financial agreements, including a credit facility with JPMorgan Chase Bank (JPM-0.62%), with no outstanding borrowings as of the end of the quarter.

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JAKKS does not anticipate cash dividend payments to common stockholders in the near future.

The company continues to focus on its Toys/Consumer Products and Costumes segments, with an emphasis on expanding its international presence.

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The filing notes the redemption of all outstanding shares of Series A Senior Preferred Stock during the quarter.

This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the JAKKS Pacific Inc. quarterly 10-Q report dated November 8, 2024. To report an error, please email earnings@qz.com.