Despite a rise in net sales for the first quarter ending March 31, 2012, helped by sales of toys based on the animated boys action series Monsuno, Malibu, California-based toymaker Jakks Pacific experienced a widening first-quarter net sales loss related to financial and legal fees and expenses.
Net sales came in at US$73.4 million compared to US$72.3 million for the same period a year ago, while Jakks lost US$16 million, or 62 cents per share, compared to a net loss of US$10.6 million, or 39 cents per share, a year earlier.
US$1.4 million went to expenses in Q1 versus US$0.3 million a year ago.
While costs did outpace revenue, Jakks Pacific president and CEO Stephen Berman stated that sales of Monsuno toys exceeded the company’s expectations and the expansion of the toy line internationally to 30 countries this fall is on track.
Berman also expresses optimism with the upcoming fall launches of new Winx Club and Disney products and the upcoming rollout of figures based on the anticipated feature films The Amazing Spider-Man, The Avengers and The Dark Knight Rises.
Coinciding with the announcement of its first quarter sales results, Berman also issued a response to yesterday’s letter from Oaktree Capital that stated a conditional non-binding expression of interest in acquiring Jakks Pacific.
Berman contended a cash offer was never made by Oaktree and that its letter only states non-binding indications of interest and invitations to negotiate.
Oaktree’s interest to acquire Jakks goes back more than a year and the latest letter comes after Jakks rejected a US$670 million takeover by Oaktree in October 2011.
Excluding the advisory fees and expenses in 2011 and 2012, the first quarter net loss in 2012 would have been US$15.1 million, or 59 cents per share, compared to a net loss of US$10.4 million, or 38 cents per share, in 2011.