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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

 

FORM 8-K

 

 

 

CURRENT REPORT

 

Pursuant to Section 13 OR 15(d) of
The Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): February 18, 2025

 

JAKKS PACIFIC, INC.

(Exact name of registrant as specified in its charter)

 

Delaware   0-28104   95-4527222
(State or other jurisdiction   (Commission   (IRS Employer
of incorporation)   File Number)   Identification No.)

 

2951 28th Street, Santa Monica, California   90405
(Address of principal executive offices)   (Zip Code)

 

Registrant’s telephone number, including area code: (424) 268-9444

 

Securities registered or to be registered pursuant to Section 12(b) of the Act:

 

Title of each class   Trading Symbol   Name of each exchange on which registered
Common Stock, $.001 par value   JAKK   NASDAQ Global Select Market

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
   
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
   
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
   
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

 

Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

 

 

Item 2.02. Results of Operations and Financial Condition.

 

On February 20, 2025, we issued a press release announcing our fourth quarter and full year results for 2024. Following the issuance of the press release, on February 20, 2025 at 5:00 p.m. ET / 2:00 p.m. PT, we will host a teleconference and webcast for analysts, investors, media and others to discuss the results and other business topics. Such financial information included in the Exhibit attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.

 

Item 5.02. Departure of Directors or Principal Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

 

On February 18, 2025, the Company amended the employment agreement between the Company and Mr. Stephen G. Berman, Chairman, CEO & Secretary, and entered into Amendment No. 9 to Mr. Berman’s Second Amended and Restated Employment Agreement, dated as of November 11, 2010 and as amended to date (the “Berman Employment Agreement”). The terms of Mr. Berman’s Employment Agreement have been amended as follows: (i) to extend the Term of the Berman Employment Agreement for an additional twenty-seven months through March 31, 2029; (ii) addition of a performance award in the amount of 83,334 Restricted Stock Units (“RSUs”) which will vest (provided Mr. Berman is employed by the Company on a vesting date, with certain exceptions described in the Agreement) as follows: (1) 27,778 RSUs shall vest on the date the Average VWAP (as such term is defined in amendment) of a share of the Company’s common stock during a continuous 180 trading period is at least $45.00, (2) 27,778 RSUs shall vest on the date the Average VWAP of a share of the Company’s common stock during a continuous 180 trading period is at least $52.50, and (3) 27,778 RSUs shall vest on the date the Average VWAP of a share of the Company’s common stock during a continuous 180 trading period is at least $60.00, (iii) under certain circumstances, if Mr. Berman’s employment is terminated following a Change of Control, the Company will continue to provide certain health insurance benefits to Mr. Berman and his family for a period of time, and in the event of termination under certain other circumstances the Company’s obligation to provide post-termination insurance coverage to Mr. Berman and his family will be extended commensurate with the extension of the term described in (i) above, and (iv) if the Berman Employment Agreement is terminated under certain circumstances, the RSUs will immediately vest. All capitalized terms used but not defined in the previous sentence have the meanings ascribed thereto in the Berman Employment Agreement, as amended by Amendment No. 9.

 

The foregoing description of Amendment No. 9 to the Berman Employment Agreement is qualified in its entirety by reference to the full text thereof, a copy of which is filed as Exhibit 10.1 to this Form 8-K and is incorporated by reference into this Item 5.02.

 

On February 18, 2025, the Company amended the employment letter agreement between the Company and Mr. John L. Kimble, Chief Financial Officer and Executive Vice President, and entered into Amendment No. 3 to Mr. Kimble’s Letter Employment Agreement, dated November 18, 2019 (the “Kimble Employment Agreement”). The terms of Mr. Kimble’s Employment Agreement have been amended as follows: (i) to extend the Term of the Kimble Employment Agreement for an additional twenty-seven months through March 31, 2029; (ii) addition of a performance award in the amount of 29,166 RSUs which will vest (provided Mr. Kimble is employed by the Company on a vesting date, with certain exceptions described in the Agreement) as follows: (1) 9,722 RSUs shall vest on the date the Average VWAP of a share of the Company’s common stock during a continuous 180 trading period is at least $45.00, (2) 9,722 RSUs shall vest on the date the Average VWAP of a share of the Company’s common stock during a continuous 180 trading period is at least $52.50, and (3) 9,722 RSUs shall vest on the date the Average VWAP of a share of the Company’s common stock during a continuous 180 trading period is at least $60.00, (iii) under certain circumstances, if Mr. Kimble’s employment is terminated following a Change of Control, the Company will continue to provide certain health insurance benefits to Mr. Kimble and his family for a period of time, and in the event of termination under certain other circumstances the Company’s obligation to provide post-termination insurance coverage to Mr. Kimble and his family will be extended commensurate with the extension of the term described in (i) above, (iv) if the Kimble Employment Agreement is terminated under certain circumstances, the RSUs will immediately vest, and (v) if the Kimble Employment Agreement is terminated following a Change of Control he shall receive an amount equal to his aggregate base salary and any bonus with respect to any completed fiscal year to which he was entitled during the two years preceding the date of termination multiplied by two (2). All capitalized terms used but not defined in the previous sentence have the meanings ascribed thereto in the Kimble Employment Agreement, as amended by Amendment No. 3.

 

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The foregoing description of Amendment No. 3 to the Kimble Employment Agreement is qualified in its entirety by reference to the full text thereof, a copy of which is filed as Exhibit 10.2 to this Form 8-K and is incorporated by reference into this Item 5.02.

 

Employment agreements for Stephen G. Berman, our President and Chief Executive Officer, and for John L. Kimble, our Chief Financial Officer, provide, inter alia, that for fiscal year 2025, their respective Annual Performance Bonuses (as such terms are defined in their respective employment agreements) will depend on our achieving certain performance criteria. The specific performance criteria are to be determined by the Compensation Committee (the “Compensation Committee”) of our Board of Directors (the “Board”) before the end of the Company’s first fiscal quarter. The performance criteria for Messrs. Berman and Kimble’s respective 2025 Annual Performance Bonuses have been established by the Compensation Committee and are set forth below.

 

EBITDA (as defined in the respective employment agreements) is calculated before including Bonuses as an expense and one-time non-recurring costs for initiatives approved by the Board. The performance criteria, bonus targets and bonus percentages may be adjusted in the sole discretion of the Compensation Committee to take account of extraordinary or special items, and the Compensation Committee also specifically reserved the right to modify the performance criteria, bonus targets and bonus percentages in the exercise of its negative discretion to take account of investment banking, accounting and legal fees incurred in connection with recapitalization and strategic transactions and unforeseen market and general economic conditions.

 

To the extent that EBITDA exceeds the minimum EBITDA target amount but falls between two EBITDA target amounts, the amount of the Additional Performance Bonus shall be determined by the Compensation Committee through linear interpolation.

 

               Maximum
Bonus
   Maximum
Bonus
 
Name  Title       2025 Salary   (%)   ($)  
Stephen G. Berman   CEO        $1,850,000    300%  $ 5,550,000  
John L. Kimble   CFO        $608,326    200%  $ 1,216,653  
        EBITDA
TARGET
                
More Than       $59,959,194   $69,959,194   $79,959,194   $ 89,959,194  
Less Than       $69,959,194   $79,959,194   $89,959,194         
                             
BONUS PERCENTAGE OF 2025 SALARY  
   
CEO        25%   100%   200%  300 %
CFO        25%   100%   150%  200 %

 

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Item 8.01. Other Events.

 

On February 20, 2025, we issued a press release announcing that our Board of Directors declared a quarterly cash dividend of $0.25 per common share. The dividend will be payable on March 31, 2025 to shareholders of record at the close of business on March 3, 2025.  A copy of such release is annexed hereto as Exhibit 99.1.

 

Item 9.01. Financial Statements and Exhibits

 

(d)Exhibits

 

Exhibit   Description
10.1   Amendment No. 9 to the Employment Agreement of Stephen G. Berman
10.2   Amendment No. 3 to the Employment Letter Agreement of John L. Kimble
99.1   February 20, 2025 Press Release
104   Cover Page Interactive Data File (formatted as Inline XBRL)

 

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SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

  JAKKS PACIFIC, INC.
   
Dated: February 20, 2025  
  By: /s/ JOHN L. KIMBLE
    John L. Kimble, CFO

 

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Exhibit 10.1

 

AMENDMENT NO. 9 TO THE SECOND AMENDED AND RESTATED EMPLOYMENT
AGREEMENT BETWEEN

 

STEPHEN G. BERMAN AND JAKKS PACIFIC, INC.

 

THIS AMENDMENT NO. 9 TO THE SECOND AMENDED AND RESTATED EMPLOYMENT AGREEMENT (this “Amendment”) is entered into on February ___, 2025 (the “Effective Date”), by and between Stephen G. Berman (“Berman” or “Executive”) and JAKKS Pacific, Inc., a Delaware corporation (the “Company”). The Company and Executive are sometimes referred to herein, each a “Party” and, collectively, the “Parties.”

 

W I T N E S SE TH:

 

WHEREAS, Executive is currently employed by the Company pursuant to that certain Second Amended and Restated Employment Agreement, dated November 11, 2010 (the “2010 Amended and Restated Employment Agreement”), between Executive and the Company, as modified by the October 20, 2011 letter amendment (the “2011 Amendment”), and as amended by Amendment Number One, dated September 12, 2012 (the “2012 Amendment”), Amendment Number Two, dated June 7, 2016 (the “2016 Amendment”), Amendment Number Three, dated August 9, 2019 (the “August 2019 Amendment”), Amendment Number Four, dated November 18, 2019 (the “November 2019 Amendment”), Amendment Number Five, dated February 18, 2021 (the “February 2021 Amendment”), Amendment Number Six, dated July 26, 2021 (the “July 2021 Amendment”), Amendment Number Seven, dated October 25, 2022 (the “2022 Amendment”), and Amendment Number Eight, dated March 8, 2023 (the “2023 Amendment”), (the 2010 Amended and Restated Employment Agreement, together with and as amended by the 2011 Amendment, the 2012 Amendment, the 2016 Amendment, the August 2019 Amendment, the November 2019 Amendment, the February 2021 Amendment, the July 2021 Amendment, the 2022 Amendment and the 2023 Amendment are collectively referred to as the “Amended Employment Agreement”); and

 

WHEREAS the Parties desire to further amend the terms of the Amended Employment Agreement on the terms and subject to the conditions set forth in this Amendment No. 9 (the Amended Employment Agreement, as amended by this Amendment No. 9, referred to as the “Employment Agreement”).

 

NOW THEREFORE, in consideration of the premises and the mutual covenants and obligations contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound hereby, pursuant to Section 21 of the 2010 Amended and Restated Employment Agreement and subject to the terms and conditions set forth herein, agree as follows:

 

1. Definitions. All references in the Amended Employment Agreement to “this Agreement” shall be deemed to refer to the Employment Agreement (including as amended by this Amendment). Capitalized terms not defined herein shall have the meanings set forth for such terms in the Amended Employment Agreement.

 

2. Amendments. The Parties hereby agree that, effective upon the Effective Date, the Amended Employment Agreement shall be deemed amended as follows:

 

(a) Section 2 of the Amended Employment Agreement is amended by deleting the current provision in its entirety and inserting, in lieu thereof, the following:

 

“2. Term. The term of this Agreement shall commence as of the date hereof and the term of this Agreement and Executive’s employment hereunder shall end on March 31, 2029, subject to earlier termination upon the terms and conditions provided elsewhere herein (the “Term”). As used herein, “Termination Date” shall mean the last day of the Term.”

 

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(b) The Amended Employment Agreement is further amended by adding a new Section 3(d)(xi), to provide as follows:

 

xi. Additional Performance Bonus Opportunity

 

(A) Pursuant to and subject to the terms of the Plan, the Company hereby grants the Executive 83,334 Restricted Stock Units (the “Additional Performance Award”) that will vest in three (3) equal installments of 27,778 Restricted Stock Units each (provided that Executive remains employed by the Company on any such vesting date), as follows:

 

(1) the first installment of 27,778 Restricted Stock Units shall vest on such date that the Average VWAP (as such term is defined below) of a share of the Company’s Common Stock during a continuous 180 trading day period is at least $45.00;

 

(2) the second installment of 27,778 Restricted Stock Units shall vest on such date that the Average VWAP of a share of the Company’s Common Stock during a continuous 180 trading day period is at least $52.50; and

 

(3) the third installment of 27,778 Restricted Stock Units shall vest on such date that the Average VWAP of a share of the Company’s Common Stock during a continuous 180 trading day period is at least $60.00.

 

(B) “Average VWAP” means the arithmetic average of the volume-weighted average price per share of Common Stock as reported by Bloomberg L.P. based on trades of shares of Common Stock executed during each trading day for 180 trading days, or if such price is not available, the arithmetic average of the volume-weighted average price per share of Common Stock as determined, using a volume-weighted average method, by a nationally recognized independent investment banking firm selected by the Company’s Compensation Committee for such purpose.

 

(C) “Trading Day” means any day on which the primary market on which the Common Stock is listed or admitted for trading is open for trading.

 

(D) The calculations necessary to determine the Average VWAP and the vesting dates (collectively, the “Performance Measures”) shall be made by the Compensation Committee in its discretion, and will, absent manifest error, be conclusive and binding upon the Company and Executive, and the price per share of Common Stock used to determine vesting shall be adjusted to take account of stock splits.

 

(E) Any installment of the foregoing award of Restricted Stock Units that has not vested by the fourth anniversary of the date of this Amendment Number Nine shall be forfeited.

 

(F) Section 17(a) of the 2010 Employment Agreement is supplemented to provide that unless the Employment Agreement has been terminated by Executive prior to March 31, 2029 other than as the result of the occurrence of a Good Reason Event or by the Company as the result of the occurrence of a For Cause Event, the installments of the Additional Performance Award and any Restricted Stock Units issuable with respect thereto shall continue to vest in accordance with and subject to the vesting conditions provided for in this Section 3(d)(xi).

 

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(G) If Executive’s employment terminates pursuant to Section 14(b) of the 2010 Employment Agreement following a Change of Control, the Company will continue to provide medical, hospitalization and dental insurance to the Executive and his immediate family until the later of March 31, 2029 and the date that is three (3) years after the Termination Date with coverage at least as favorable as provided to Executive and his immediate family prior to such termination, or, if the Company is unable to provide such coverage, to reimburse Executive for the cost of obtaining such coverage.

 

(H) The above notwithstanding, if Executive’s employment is terminated by Executive pursuant to Section 14(a) of the 2010 Employment Agreement or by the Company other than as the result of the occurrence of a For Cause Event pursuant to Section 13 of the 2010 Employment Agreement, all Restricted Stock Units issued to Executive as part of the additional Performance Award that have not yet fully vested prior to the Termination Date shall immediately vest.

 

(c) Section 15(c) of the Amended Employment Agreement is amended to replace the date December 31, 2015 with the date March 31, 2029, and to provide that the medical, hospitalization and dental insurance coverage referred to in clause 15(c)(v) shall continue to be provided to Executive and his immediate family until the later of March 31, 2029 and the date that is three (3) years after the Termination Date, with coverage at least as favorable as provided to Executive and his immediate family prior to such termination, or, if the Company is unable to provide such coverage, to reimburse Executive for the cost of obtaining such coverage.

 

(d) The Employment Agreement is further amended to provide that the award of all incentive-based compensation provided for in the Employment Agreement is subject to the Board’s Policy on Recovery of Erroneously Awarded Compensation.

 

3. Ratification; Effect of Amendment. Except as expressly provided herein, this Amendment shall not, by implication or otherwise, alter, modify, amend or in any way affect any of the obligations, covenants or rights contained in the Amended Employment Agreement, all of which are ratified and confirmed in all respects by the Parties and shall continue in full force and effect. Each reference to the Employment Agreement or Amended Employment Agreement hereafter made in any document, agreement, instrument, notice or communication shall mean and be a reference to the Employment Agreement, as amended and modified hereby.

 

4. Miscellaneous.

 

(a) This Amendment shall be governed and construed as to its validity, interpretation, and effect by the laws of the State of California, without reference to its conflicts of laws provisions.

 

(b) The Section captions herein are for convenience of reference only, do not constitute part of this Amendment and shall not be deemed to limit or otherwise affect any of the provisions hereof.

 

(c) Each party hereto acknowledges that it has had an opportunity to consult with counsel and has participated in the preparation of this Amendment. No party hereto is entitled to any presumption with respect to the interpretation of any provision hereof or the resolution of any alleged ambiguity herein based on any claim that the other party hereto drafted or controlled the drafting of this Amendment.

 

(d) This Amendment and the documents referenced herein, constitute the entire agreement among the Parties with respect to this amendment of the Amended Employment Agreement and supersede all prior agreements, negotiations, drafts, and understandings among the Parties with respect to such subject matter. This Amendment can only be changed or modified pursuant to a written instrument referring explicitly hereto, and duly executed by each of the Parties.

 

(e) This Amendment may be executed and delivered (by facsimile or PDF signature) in any number of counterparts, and each such counterpart shall be deemed to be an original instrument, but all such counterparts together shall constitute one and the same instrument.

 

[Signature page follows]

 

3

 

IN WITNESS WHEREOF, the parties have caused this Amendment to be executed as of the day and year first written above.

 

THE COMPANY:  
   
JAKKS PACIFIC, INC.  
   
By:    
Name: John Kimble  
Title: EVP-CFO  
   
EXECUTIVE:  
   
   
Name: Stephen G. Berman  

 

4

EXHIBIT 10.2

 

AMENDMENT NO. 3 TO THE EMPLOYMENT LETTER AGREEMENT BETWEEN

 

JOHN KIMBLE AND JAKKS PACIFIC, INC.

 

THIS AMENDMENT NO. 3 to an employment letter agreement dated November 18, 2019 is entered into on February ________ 2025 by and between John Kimble, an individual (“Executive”) and JAKKS Pacific, Inc., a Delaware corporation (“JAKKS” or the “Company”). The Company and Executive are sometimes referred to herein, each a “Party” and, collectively, the “Parties.”

 

W I T N E S SE TH:

 

WHEREAS, Executive is currently employed by the Company pursuant to that certain employment letter agreement dated November 18, 2019 (the “2019 Employment Agreement”), between Executive and the Company, as amended by the First Amendment dated February 18, 2021 (the “2021 Amendment”) and the Second Amendment dated October 22, 2022 (the “2022 Amendment”); (the 2019 Employment Agreement, together with and as amended by the 2021 Amendment and the 2022 Amendment, the “Amended Employment Agreement”); and

 

WHEREAS the Parties desire to further amend the terms of the Amended Employment Agreement on the terms and subject to the conditions set forth in this Amendment No. 3 (the Amended Employment Agreement, as amended by this Amendment No. 3, referred to as the “Employment Agreement”).

 

NOW THEREFORE, in consideration of the premises and the mutual covenants and obligations contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound hereby, and subject to the terms and conditions set forth herein, agree as follows:

 

1. Definitions. All references in the Amended Employment Agreement to “this Agreement” shall be deemed to refer to the Employment Agreement (including as amended by this Amendment). Capitalized terms not defined herein shall have the meanings set forth for such terms in the Amended Employment Agreement.

 

2. Amendments. The Parties hereby agree that, effective upon the Effective Date, the Amended Employment Agreement shall be deemed to be further amended as follows:

 

(a) The provisions of the Amended Employment Agreement regarding the Term are deleted in their entirety and replaced by the following:

 

TERM. The term of this Agreement shall commence as of the date hereof and the term of this Agreement and Executive’s employment hereunder shall end on March 31, 2029, subject to earlier termination upon the terms and conditions provided elsewhere herein (the “Term”). As used herein, “Termination Date” shall mean the last day of the Term.”

 

(b) The following provisions regarding an Additional Performance Bonus Opportunity are added to the Amended Employment Agreement as Section 3-I:

 

1

 

 

“3-I Additional Performance Bonus Opportunity

 

(A) Pursuant to and subject to the terms of the Plan, the Company hereby grants the Executive 29,166 Restricted Stock Units (the “Additional Performance Award”) that will vest in three (3) equal installments of 9,722 Restricted Stock Units each (provided that Executive remains employed by the Company on any such vesting date), as follows:

 

(1) the first installment of 9,722 Restricted Stock Units shall vest on such date that the Average VWAP (as such term is defined below) of a share of the Company’s Common Stock during a continuous 180 trading day period is at least $45.00;

 

(2) the second installment of 9,722 Restricted Stock Units shall vest on such date that the Average VWAP of a share of the Company’s Common Stock during a continuous 180 trading day period is at least $52.50; and

 

(3) the third installment of 9,722 Restricted Stock Units shall vest on such date that the Average VWAP of a share of the Company’s Common Stock during a continuous 180 trading day period is at least $60.00.

 

(B) “Average VWAP” means the arithmetic average of the volume-weighted average price per share of Common Stock as reported by Bloomberg L.P. based on trades of shares of Common Stock executed during each trading day for 180 trading days, or if such price is not available, the arithmetic average of the volume-weighted average price per share of Common Stock as determined, using a volume-weighted average method, by a nationally recognized independent investment banking firm selected by the Company’s Compensation Committee for such purpose.

 

(C) “Trading Day” means any day on which the primary market on which the Common Stock is listed or admitted for trading is open for trading.

 

(D) The calculations necessary to determine the Average VWAP and the vesting dates (collectively, the “Performance Measures”) shall be made by the Compensation Committee in its discretion, and will, absent manifest error, be conclusive and binding upon the Company and Executive, and the price per share of Common Stock used to determine vesting shall be adjusted to take account of stock splits.

 

(E) Any installment of the foregoing award of Restricted Stock Units that has not vested by the fourth anniversary of the date of this Third Amendment shall be forfeited.

 

(F) The Amended Employment Agreement is supplemented to provide that unless the Amended Employment Agreement has been terminated by Executive prior to March 31, 2029 other than as the result of the occurrence of a Good Reason event, or by the Company as the result of the occurrence of a for Cause event, the installments of the Additional Performance Award and any Restricted Stock Units issuable with respect thereto shall continue to vest in accordance with and subject to the vesting conditions provided for in this Section 3-I.

 

(G) The above notwithstanding, if Executive’s employment is terminated by Executive for Good Reason or by the Company other than as the result of the occurrence of a for Cause event, all Restricted Stock Units issued to Executive as part of the additional Performance Award that have not yet fully vested prior to the Termination Date shall immediately vest.”

 

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(c) The provisions of Section 4(d) of Annex A to the 2021 Amendment are deleted in their entirety and replaced by the following:

 

“ (d) If Executive’s employment is terminated within one year following a Change of Control event by the Company other than as a result of the occurrence of a for Cause event or by Executive as a result of the occurrence of a Good Reason event, Executive shall be entitled to receive an amount equal to his aggregate base salary and any bonus with respect to any completed fiscal year to which he was entitled during the two years preceding the date of termination multiplied by two (2).”

 

(d) The following is added to Section 1 of Annex A of the 2021 Amendment:

 

“If Executive’s employment by the Company terminates as a result of Executive’s death, the Company shall continue to pay the health and dental insurance premiums for Executive’s (i) children under the Company’s health and dental insurance health plans until, with respect to the surviving spouse, the date any such child reaches the maximum age at which such child may be covered as a matter of law following the death of the child’s parent, and (ii) Executive’s surviving spouse until the later of the second anniversary of Executive’s death and the date on which coverage of any such child terminates as provided above.”

 

(e) Section 4(c) of Annex A of the 2021 Amendment is amended to change the date December 31, 2024 to March 31, 2029, and to provide that the medical, hospitalization and dental insurance coverage referred to in clause 4(c)(v) shall continue to be provided to Executive and his immediate family until the later of March 31, 2029 and the date that is three (3) years after the Termination Date, with coverage at least as favorable as provided to Executive and his immediate family prior to such termination, or, if the Company is unable to provide such coverage, to reimburse Executive for the cost of obtaining such coverage.

 

(f) Section 4(d) of Annex A of the 2021 Amendment is amended to add that the Company will continue to provide medical, hospitalization and dental insurance to the Executive and his immediate family until the later of March 31, 2029 and the date that is three (3) years after the date of termination of his employment, with coverage at least as favorable as provided to Executive and his immediate family prior to such termination, or, if the Company is unable to provide such coverage, to reimburse Executive for the cost of obtaining such coverage.

 

(g) The Employment Agreement is further amended to provide that the award of all incentive-based compensation provided for in the Employment Agreement is subject to the Board’s Policy on Recovery of Erroneously Awarded Compensation.

 

3. Ratification; Effect of Amendment. Except as expressly provided herein, this Amendment shall not, by implication or otherwise, alter, modify, amend or in any way affect any of the obligations, covenants or rights contained in the Amended Employment Agreement, all of which are ratified and confirmed in all respects by the Parties and shall continue in full force and effect. Each reference to the Employment Agreement or Amended Employment Agreement hereafter made in any document, agreement, instrument, notice or communication shall mean and be a reference to the Employment Agreement, as amended and modified hereby.

 

4. Miscellaneous.

 

(a) This Amendment shall be governed and construed as to its validity, interpretation, and effect by the laws of the State of California, without reference to its conflicts of laws provisions.

 

(b) The Section captions herein are for convenience of reference only, do not constitute part of this Amendment and shall not be deemed to limit or otherwise affect any of the provisions hereof.

 

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(c) Each party hereto acknowledges that it has had an opportunity to consult with counsel and has participated in the preparation of this Amendment. No party hereto is entitled to any presumption with respect to the interpretation of any provision hereof or the resolution of any alleged ambiguity herein based on any claim that the other party hereto drafted or controlled the drafting of this Amendment.

 

(d) This Amendment and the documents referenced herein, constitute the entire agreement among the Parties with respect to this amendment of the Amended Employment Agreement and supersede all prior agreements, negotiations, drafts, and understandings among the Parties with respect to such subject matter. This Amendment can only be changed or modified pursuant to a written instrument referring explicitly hereto, and duly executed by each of the Parties.

 

(e) This Amendment may be executed and delivered (by facsimile or PDF signature) in any number of counterparts, and each such counterpart shall be deemed to be an original instrument, but all such counterparts together shall constitute one and the same instrument.

 

[Signature page follows]

 

4

 

 

IN WITNESS WHEREOF, the parties have caused this Amendment to be executed as of the day and year first written above.

 

THE COMPANY:  
     
JAKKS PACIFIC, INC.  
     
By:    
Name: Stephen G. Berman  
Title: CEO  
     
EXECUTIVE:  
     
   
Name: John Kimble  

 

5

 

Exhibit 99.1

 

 

JAKKS PACIFIC REPORTS FOURTH QUARTER AND FULL-YEAR 2024 FINANCIAL RESULTS

Board of Directors approves initiation of quarterly cash dividend program

 

Santa Monica, California, February 20, 2025 – JAKKS Pacific, Inc. (Nasdaq: JAKK) today reported financial results for the fourth quarter and fiscal year ended December 31, 2024.

 

Fourth Quarter 2024

 

Net sales were $130.7 million, a year-over-year increase of 3%
Toys/Consumer Products net sales were $118.2 million, a year-over-year decrease of 1%
Costumes net sales were $12.5 million, a year-over-year increase of 46%
Gross margin of 27.2%, up 70 basis points vs. Q4 2023
Gross profit of $35.6 million, up 5% compared to $33.7 million in Q4 2023
Operating loss of $14.7 million in Q4 2024, an improvement of $0.6 million vs. a loss of $15.3 million in Q4 2023
Net loss attributable to common stockholders of $9.1 million or $0.83 per diluted share, compared to net loss attributable to common stockholders of $11.3 million or $1.12 per diluted share in Q4 2023
Adjusted net loss attributable to common stockholders (a non-GAAP measure) of $7.4 million or $0.67 per diluted share, compared to adjusted net loss attributable to common stockholders of $10.5 million or $1.04 per diluted share in Q4 2023
Adjusted EBITDA (a non-GAAP measure) of $(10.2) million vs. $(10.9) million in Q4 2023, an improvement of $0.8 million

 

Full-Year 2024

 

Net sales were $691.0 million compared to $711.6 million last year, a 3% decrease
Toys/Consumer Products net sales were $570.0 million, a year-over-year decrease of 2%
Costumes net sales were $121.0 million, a year-over-year decrease of 8%
Gross margin of 30.8% compared to 31.4% last year
Gross profit of $213.0 million, down 5% compared to $223.4 million last year
Operating income of $39.7 million compared to $59.1 million last year; a 33% decrease
Net income attributable to common stockholders of $35.3 million, down from a net income attributable to common stockholders of $36.9 million in 2023
Adjusted net income attributable to common stockholders of $42.6 million ($3.79 per diluted share), down from adjusted net income attributable to common stockholders of $48.9 million ($4.62 per diluted share) in 2023
Adjusted EBITDA of $59.3 million, down from $75.7 million in 2023
Cash flows provided by operating activities of $38.9 million, down from $66.4 million in 2023
Cash used in financing activities of $28.5 million, eliminating all preferred shareholders in the first half of 2024
End of year cash and cash equivalents of $70.1 million, down from $72.6 million in 2023

 

Management Commentary

 

“As we leave 2024, we are pleased with both the financial results we have achieved and the foundation we have established. We are a debt-free company with a strong portfolio of exceptional evergreen product categories and licenses led by a world-class team as we embark on the next chapter for JAKKS Pacific. Our company marked the 30th anniversary of its founding last month. Five years ago, we were trying to find our footing coming out of a painful restructuring exercise and processing the looming implications of what would become the COVID pandemic. The first quarter of this year represents the first time in fifteen years that we have started a year unencumbered by long-term debt or other obligations restricting our ability to share our successes directly with our common stock shareholders. As we consider our progress with initiatives like international expansion, partnering with the best global licensors and retailers and expanding and diversifying our product lines, we are excited for the future and what we see as a clear path forward for continued success. As a reflection of this optimism, our Board this week approved the initiation of a quarterly cash dividend of 25 cents per share payable on March 31, 2025, to shareholders of record as of March 3, 2025. On a full-year basis, this would equate to a dollar per share. It is our intention to maintain this dividend going forward on a quarterly basis, recalibrating when we deem it prudent.

 

Our fourth quarter results were roughly in line with our expectations. The business is measured in the context of full-year results with significant seasonality drivers of Halloween and Christmas. We always encourage customers to embrace our FOB selling model to leverage their larger and more efficient logistic operations. This approach translates to the majority of our sales taking place in the second and third quarters and not the underlying consumer behavior in those quarters. We were pleased to see our FOB business reach a global level of over 75% of our worldwide sales in 2024, a level we haven’t achieved in many years. Continuing the trend from Q3, Q4 reflected modest sales growth of 3% versus the prior year as our second half performance has benefited from the timing of the entertainment releases we have supported this year vs. 2023. Although our Costumes business finished the year down 8%, it grew Internationally to its highest level yet despite unfavorable industry conditions in Europe. Our gross margins improved in the quarter vs. last year and finished the full year at 30.8%. We also continued to see improved overhead cost containment versus the prior year, while we reallocated more resources towards Q4 media spend in an effort to capture more consumer attention and drive sell-through.

 

At retail, anchored by two strong film releases, we saw aggregate Toy/CP point-of-sale (POS) data up mid-single digits at our three largest US accounts vs. Q4 2023. That improved our full-year results to being down mid-single digits at those same accounts – and we exited the year with lower inventory levels at those accounts for the second year in a row.”

 

 

 

Other Financial Highlights

 

Sales in North America were down 3% in the quarter and 3% on a full-year basis compared to the previous year. Sales outside of North America were up 25% in the quarter, led by Europe. On a full-year basis, the business outside of North America was down 1%.

 

The Company’s cash and cash equivalents (including restricted cash) totaled $70.1 million as of December 31, 2024, compared to $72.6 million as of December 31, 2023, despite utilizing $20 million in cash in March as part of the transaction eliminating the company’s preferred stock.

 

Inventory was $52.8 million as of December 31, 2024, compared to $52.6 million as of December 31, 2023.

 

Use of Non-GAAP Financial Information and Reconciliation of GAAP to Non-GAAP measures:

 

In addition to the preliminary results reported in accordance with U.S. GAAP included in this release, the Company has provided certain non-GAAP financial information including Adjusted EBITDA and Adjusted Net Income (Loss) that exclude various items that are detailed in the financial tables and accompanying footnotes reconciling GAAP to non-GAAP results contained in this release. The non-GAAP financial measures included in the press release are reconciled to the corresponding GAAP financial measures below, as required under the rules of the Securities and Exchange Commission regarding the use of non-GAAP financial measures.

 

We define Adjusted EBITDA as income (loss) from operations before depreciation, amortization and adjusted for certain non-recurring and non-cash charges, such as reorganization expenses and restricted stock compensation expense. Net income (loss) is similarly adjusted and tax-effected to arrive at Adjusted Net Income (Loss). Adjusted EBITDA and Adjusted Net Income (Loss) are not recognized financial measures under GAAP, but we believe that they are useful in measuring our operating performance, enhance an overall understanding of the Company’s past financial performance, and provides useful information to the investor by comparing our performance across reporting periods on a consistent basis. Investors should not consider these measures in isolation or as a substitute for net income, operating income, or any other measure for determining the Company’s operating performance that is calculated in accordance with GAAP. In addition, because these measures are not calculated in accordance with GAAP, they may not necessarily be comparable to similarly titled measures employed by other companies.

 

The non-GAAP financial measures included in the press release are reconciled to the corresponding GAAP financial measures below, as required under the rules of the Securities and Exchange Commission regarding the use of non-GAAP financial measures. See “Use of Non-GAAP Financial Information” for additional disclosures with respect to the use of non-GAAP financial information.

 

Conference Call Live Webcast

 

JAKKS Pacific, Inc. invites analysts, investors and media to listen to the teleconference scheduled for 5:00 p.m. ET / 2:00 p.m. PT on February 20, 2025. A live webcast of the call will be available on the “Investor Relations” page of the Company’s website at www.jakks.com/investors. To access the call by phone, please go to this link (4Q24 Registration link), and you will be provided with dial-in details. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the scheduled start time. A replay of the webcast will also be available for a limited time at (www.jakks.com/investors).

 

About JAKKS Pacific, Inc.

 

JAKKS Pacific, Inc. is a leading designer, manufacturer and marketer of toys and consumer products sold throughout the world, with its headquarters in Santa Monica, California. JAKKS Pacific’s popular proprietary brands include: AirTitans®, Disguise®, Fly Wheels®, JAKKS Wild Games®, Moose Mountain®, Maui®, Perfectly Cute®, ReDo® Skateboard Co., Sky Ball®, SportsZone™, Xtreme Power Dozer®, WeeeDo®, and Wild Manes™ as well as a wide range of entertainment-inspired products featuring premier licensed properties. Through our products and our charitable donations, JAKKS is helping to make a positive impact on the lives of children. Visit us at www.jakks.com and follow us on Instagram (@jakkspacific.toys), Twitter (@jakkstoys) and Facebook (@jakkspacific.toys).

 

Forward Looking Statements

 

This press release may contain “forward-looking statements” (within the meaning of the Private Securities Litigation Reform Act of 1995) that are based on current expectations, estimates and projections about JAKKS Pacific’s business based partly on assumptions made by its management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such statements due to numerous factors, including, but not limited to, those described above, changes in demand for JAKKS Pacific’s products, product mix, the timing of customer orders and deliveries, the impact of competitive products and pricing, or that the Recapitalization transaction or any future transactions will result in future growth or success of JAKKS. The “forward-looking statements” contained herein speak only as of the date on which they are made, and JAKKS undertakes no obligation to update any of them to reflect events or circumstances after the date of this release.

 

CONTACT:

 

JAKKS Pacific Investor Relations

(424) 268-9567

Lucas Natalini

[email protected]

 

2

 

JAKKS Pacific, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets (Unaudited)

 

   December 31, 
   2024   2023 
   (In thousands) 
Assets        
Current assets:        
Cash and cash equivalents  $69,936   $72,350 
Restricted cash   201    204 
Accounts receivable, net   131,629    123,797 
Inventory   52,780    52,647 
Prepaid expenses and other assets   14,141    6,374 
Total current assets   268,687    255,372 
           
Property and equipment   142,623    135,956 
Less accumulated depreciation and amortization   126,981    121,357 
Property and equipment, net   15,642    14,599 
           
Operating lease right-of-use assets, net   53,254    23,592 
Deferred income tax assets, net   70,394    68,143 
Goodwill   35,111    35,083 
Other long-term assets   1,781    2,162 
Total assets  $444,869   $398,951 
           
Liabilities, Preferred Stock and Stockholders’ Equity          
           
Current liabilities:          
Accounts payable  $42,560   $42,177 
Accounts payable - Meisheng (related party)   13,461    12,259 
Accrued expenses   48,456    45,102 
Reserve for sales returns and allowances   35,817    38,531 
Income taxes payable   1,035    3,785 
Short-term operating lease liabilities   8,091    7,380 
Total current liabilities   149,420    149,234 
           
Long-term operating lease liabilities   48,433    16,666 
Accrued expenses - long-term   2,563    3,746 
Preferred stock derivative liability   -    29,947 
Income taxes payable   3,620    3,245 
Total liabilities   204,036    202,838 
           
Preferred stock accrued dividends   -    5,992 
           
Stockholders’ equity:          
Common stock, $.001 par value   11    10 
Additional paid-in capital   297,198    278,642 
Accumulated deficit   (39,692)   (73,612)
Accumulated other comprehensive loss   (17,184)   (15,627)
Total JAKKS Pacific, Inc. stockholders’ equity   240,333    189,413 
Non-controlling interests   500    708 
Total stockholders’ equity   240,833    190,121 
Total liabilities, preferred stock and stockholders’ equity  $444,869   $398,951 

 

3

 

Supplemental Balance Sheet and Cash Flow Data (Unaudited)

 

   December 31, 
Key Balance Sheet Data:  2024   2023 
         
Accounts receivable days sales outstanding (DSO)   93    89 
Inventory turnover (DSI)   51    52 

 

   Twelve Months Ended
December 31,
 
Condensed Cash Flow Data:  2024   2023 
         
Cash flows provided by operating activities  $38,947   $66,404 
Cash flows used in investing activities   (12,889)   (8,907)
Cash flows used in financing activities and other   (28,475)   (70,433)
Decrease in cash, cash equivalents and restricted cash  $(2,417)  $(12,936)
           
Capital expenditures  $(11,246)  $(8,906)

 

4

 

JAKKS Pacific, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations (Unaudited)

 

   Three Months Ended
December 31,
       Twelve Months Ended
December 31,
     
   2024   2023   Δ (%)   2024   2023   Δ (%) 
   (In thousands, except per share data)       (In thousands, except per share data)     
Net sales  $130,741   $127,396    3%  $691,042   $711,557    (3)%
Less: Cost of sales                              
Cost of goods   72,373    68,866    5    361,563    362,378    (0)
Royalty expense   20,623    22,533    (8)   106,804    117,607    (9)
Amortization of tools and molds   2,192    2,264    (3)   9,654    8,219    17 
Cost of sales   95,188    93,663    2    478,021    488,204    (2)
Gross profit   35,553    33,733    5    213,021    223,353    (5)
Direct selling expenses   18,201    14,582    25    40,105    36,987    8 
General and administrative expenses   31,953    34,401    (7)   132,840    126,893    5 
Depreciation and amortization   117    90    30    392    366    7 
Selling, general and administrative expenses   50,271    49,073    2    173,337    164,246    6 
Income (loss) from operations   (14,718)   (15,340)   (4)   39,684    59,107    (33)
Other income (expense):                              
Loss from joint ventures   -    -    -    -    (565)   nm 
Other income (expense), net   8    139    (94)   302    563    (46)
Change in fair value of preferred stock derivative liability   -    (1,361)    nm    -    (8,029)   nm 
Loss on debt extinguishment   -    -    -    -    (1,023)   nm 
Interest income   308    757    (59)   841    1,344    (37)
Interest expense   (157)   (710)   (78)   (1,095)   (6,451)   (83)
Income (loss) before provision for (benefit from) income taxes   (14,559)   (16,515)   (12)   39,732    44,946    (12)
Provision for (benefit from) income taxes   (5,446)   (5,643)   (3)   5,532    6,833    (19)
Net income (loss)   (9,113)   (10,872)   (16)   34,200    38,113    (10)
Net income (loss) attributable to non-controlling interests   -    (4)    nm    280    (293)    nm 
Net income (loss) attributable to JAKKS Pacific, Inc.  $(9,113)  $(10,868)   (16)%  $33,920   $38,406    (12)%
Net income (loss) attributable to common stockholders  $(9,113)  $(11,252)   (19)%  $35,250   $36,904    (4)%
Earnings (loss) per share - basic  $(0.83)  $(1.12)       $3.27   $3.70      
Shares used in earnings (loss) per share - basic   11,008    10,084         10,781    9,962      
Earnings (loss) per share - diluted  $(0.83)  $(1.12)       $3.14   $3.48      
Shares used in earnings (loss) per share - diluted   11,008    10,084         11,226    10,590      

 

5

 

   Three Months Ended
December 31,
       Twelve Months Ended
December 31,
     
   2024   2023   Δ bps   2024   2023   Δ bps 
           Fav/(Unfav)           Fav/(Unfav) 
Net sales   100.0%   100.0%   -    100.0%   100.0%   - 
Less: Cost of sales                              
Cost of goods   55.3    54.0    (130)   52.3    50.9    (140)
Royalty expense   15.8    17.7    190    15.5    16.5    100 
Amortization of tools and molds   1.7    1.8    10    1.4    1.2    (20)
Cost of sales   72.8    73.5    70    69.2    68.6    (60)
Gross profit   27.2    26.5    70    30.8    31.4    (60)
Direct selling expenses   13.9    11.4    (250)   5.8    5.2    (60)
General and administrative expenses   24.5    27.0    250    19.2    17.8    (140)
Depreciation and amortization   0.1    0.1    -    0.1    0.1    - 
Selling, general and administrative expenses   38.5    38.5    0    25.1    23.1    (200)
Income (loss) from operations   (11.3)   (12.0)   70    5.7    8.3    (260)
Other income (expense):                              
Loss from joint ventures   -    -         -    (0.1)     
Other income (expense), net   -    0.1         0.1    0.1      
Change in fair value of preferred stock derivative liability   -    (1.1)        -    (1.1)     
Loss on debt extinguishment   -    -         -    (0.1)     
Interest income   0.2    0.6         0.1    0.2      
Interest expense   (0.1)   (0.6)        (0.2)   (0.9)     
Income (loss) before provision for (benefit from) income taxes   (11.2)   (13.0)        5.7    6.4      
Provision for (benefit from) income taxes   (4.2)   (4.5)        0.8    1.0      
Net income (loss)   (7.0)   (8.5)        4.9    5.4      
Net income (loss) attributable to non-controlling interests   -    -         -    -      
Net income (loss) attributable to JAKKS Pacific, Inc.   (7.0)%   (8.5)%        4.9%   5.4%     
Net income (loss) attributable to common stockholders   (7.0)%   (8.8)%        5.1%   5.2%     

 

6

 

JAKKS Pacific, Inc. and Subsidiaries

Reconciliation of Non-GAAP Financial Information (Unaudited)

 

   Three Months Ended
December 31,
       Twelve Months Ended
December 31,
     
   2024   2023   Δ ($)   2024   2023   Δ ($) 
   (In thousands)       (In thousands)     
EBITDA and Adjusted EBITDA                        
Net income (loss)  $(9,113)  $(10,872)  $1,759   $34,200   $38,113   $(3,913)
Interest expense   157    710    (553)   1,095    6,451    (5,356)
Interest income   (308)   (757)   449    (841)   (1,344)   503 
Provision for (benefit from) income taxes   (5,446)   (5,643)   197    5,532    6,833    (1,301)
Depreciation and amortization   2,309    2,354    (45)   10,046    10,336    (290)
EBITDA   (12,401)   (14,208)   1,807    50,032    60,389    (10,357)
Adjustments:                              
Loss from joint ventures (JAKKS Pacific, Inc. - 51%)   -    -    -    -    276    (276)
Loss from joint ventures (Meisheng - 49%)   -    -    -    -    289    (289)
Other (income) expense, net   (8)   (139)   131    (302)   (563)   261 
Restricted stock compensation expense   2,255    2,057    198    9,535    8,027    1,508 
Change in fair value of preferred stock derivative liability   -    1,361    (1,361)   -    8,029    (8,029)
Molds and tooling capitalization   -    -    -    -    (1,751)   1,751 
Loss on debt extinguishment   -    -    -    -    1,023    (1,023)
Adjusted EBITDA  $(10,154)  $(10,929)  $775   $59,265   $75,719   $(16,454)
Adjusted EBITDA/Net sales %   (7.8)%   (8.6)%    80 bps    8.6%   10.6%    -200 bps 

 

7

 

   Trailing Twelve Months Ended
December 31,
         
   2024   2023   Δ ($)     
   (In thousands)         
TTM EBITDA and TTM Adjusted EBITDA                
TTM net income  $34,200   $38,113   $(3,913)     
Interest expense   1,095    6,451    (5,356)     
Interest income   (841)   (1,344)   503      
Provision for (benefit from) income taxes   5,532    6,833    (1,301)     
Depreciation and amortization   10,046    10,336    (290)     
TTM EBITDA   50,032    60,389    (10,357)     
Adjustments:                    
Loss from joint ventures (JAKKS Pacific, Inc. - 51%)   -    276    (276)     
Loss from joint ventures (Meisheng - 49%)   -    289    (289)     
Other (income) expense, net   (302)   (563)   261      
Restricted stock compensation expense   9,535    8,027    1,508      
Change in fair value of preferred stock derivative liability   -    8,029    (8,029)     
Molds and tooling capitalization   -    (1,751)   1,751      
Loss on debt extinguishment   -    1,023    (1,023)     
TTM Adjusted EBITDA  $59,265   $75,719   $(16,454)   (22)%
TTM Adjusted EBITDA/TTM Net sales %   8.6%   10.6%    -200 bps      

 

   Three Months Ended
December 31,
       Twelve Months Ended
December 31,
     
   2024   2023   Δ ($)   2024   2023   Δ ($) 
   (In thousands, except per share data)       (In thousands, except per share data)     
Adjusted net income (loss) attributable to common stockholders                        
Net income (loss) attributable to common stockholders  $(9,113)  $(11,252)  $2,139   $35,250   $36,904   $(1,654)
Restricted stock compensation expense   2,255    2,057    198    9,535    8,027    1,508 
Change in fair value of preferred stock derivative liability   -    1,361    (1,361)   -    8,029    (8,029)
Loss on debt extinguishment   -    -    -    -    1,023    (1,023)
Loss from joint ventures (JAKKS Pacific, Inc. - 51%)   -    -    -    -    276    (276)
2021 BSP Term Loan prepayment penalty   -    -    -    -    150    (150)
Molds and Tooling capitalization   -    -    -    -    (1,751)   1,751 
Valuation allowance release/adjustments   -    (2,577)   2,577    -    (2,577)   2,577 
Tax impact of additional charges   (544)   (96)   (448)   (2,225)   (1,175)   (1,050)
Adjusted net income (loss) attributable to common stockholders  $(7,402)  $(10,507)  $3,105   $42,560   $48,906   $(6,346)
Adjusted earnings (loss) per share - basic  $(0.67)  $(1.04)  $0.37   $3.95   $4.91   $(0.97)
Shares used in adjusted earnings (loss) per share - basic   11,008    10,084    924    10,781    9,962    819 
Adjusted earnings (loss) per share - diluted  $(0.67)  $(1.04)  $0.37   $3.79   $4.62   $(0.83)
Shares used in adjusted earnings (loss) per share - diluted   11,008    10,084    924    11,226    10,590    636 

 

8

 

JAKKS Pacific, Inc. and Subsidiaries

Net Sales by Division and Geographic Region

 

(In thousands)  QTD Q4    (In thousands)  YTD Q4 
DIVISIONS  2024   2023   2022   %
Change
2024 v 2023
   %
Change
2023 v 2022
      DIVISIONS  2024   2023   2022   %
Change
2024 v 2023
   %
Change
2023 v 2022
 
Toys/Consumer Products  $118,233   $118,855   $117,727    -0.5%   1.0%   Toys/Consumer Products  $570,018   $580,686   $647,317    -1.8%   -10.3%
Dolls, Role-Play/Dress-Up   62,603    73,272    68,937    -14.6%   6.3%   Dolls, Role-Play/Dress-Up   313,679    319,962    423,581    -2.0%   -24.5%
Action Play & Collectibles   47,209    35,312    38,909    33.7%   -9.2%   Action Play & Collectibles   215,521    219,446    173,529    -1.8%   26.5%
Outdoor/Seasonal Toys   8,421    10,272    9,881    -18.0%   4.0%   Outdoor/Seasonal Toys   40,818    41,279    50,207    -1.1%   -17.8%
Costumes  $12,508   $8,541   $14,159    46.4%   -39.7%   Costumes  $121,024   $130,870   $148,870    -7.5%   -12.1%
TOTAL JAKKS  $ 130,741   $ 127,396   $ 131,886    2.6%   -3.4%   TOTAL JAKKS  $ 691,042   $ 711,557   $ 796,187    -2.9%   -10.6%
                                                       
(In thousands)  QTD Q4    (In thousands)  YTD Q4 
Regions  2024   2023   2022   %
Change
2024 v 2023
   %
Change
2023 v 2022
      Regions  2024   2023   2022   %
Change
2024 v 2023
   %
Change
2023 v 2022
 
United States  $93,468   $96,304   $100,907    -2.9%   -4.6%   United States  $545,013   $557,865   $644,295    -2.3%   -13.4%
Europe   25,359    17,988    19,437    41.0%   -7.5%   Europe   71,392    76,464    85,348    -6.6%   -10.4%
Latin America   4,292    4,434    2,626    -3.2%   68.8%   Latin America   38,159    32,024    18,338    19.2%   74.6%
Canada   4,257    4,686    4,795    -9.2%   -2.3%   Canada   20,983    26,992    26,515    -22.3%   1.8%
Asia   1,523    2,140    1,698    -28.8%   26.0%   Asia   6,101    8,543    10,431    -28.6%   -18.1%
Australia & New Zealand   1,116    1,486    1,822    -24.9%   -18.4%   Australia & New Zealand   7,409    7,542    8,836    -1.8%   -14.6%
Middle East & Africa   726    358    601    102.8%   -40.4%   Middle East & Africa   1,985    2,127    2,424    -6.7%   -12.3%
TOTAL JAKKS  $130,741   $127,396   $131,886    2.6%   -3.4%   TOTAL JAKKS  $691,042   $711,557   $796,187    -2.9%   -10.6%
                                                       
(In thousands)  QTD Q4    (In thousands)  YTD Q4 
Regions  2024   2023   2022   %
Change
2024 v 2023
   %
Change
2023 v 2022
      Regions  2024   2023   2022   %
Change
2024 v 2023
   %
Change
2023 v 2022
 
North America  $97,725   $100,990   $105,702    -3.2%   -4.5%   North America  $565,996   $584,857   $670,810    -3.2%   -12.8%
International   33,016    26,406    26,184    25.0%   0.8%   International   125,046    126,700    125,377    -1.3%   1.1%
Total  $130,741   $127,396   $131,886    2.6%   -3.4%   Total  $691,042   $711,557   $796,187    -2.9%   -10.6%

 

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