Star Wars Big-Figs, Sing-A-Long Elsa, Max Tow Truck Turbo and the XPV Remote Control Hulk Smash (which just cracked TRU’s Holiday Hot Toy List) were all key drivers in Q3 for Jakks Pacific, whose net income increased by 3.85% (to US$45.8 million), despite net sales declining by 3.7% to US$337.
In addition, the Santa Monica, California-based toyco saw gross margins improve 390 points, operating margins gain 70 points and diluted earnings per share climb by 8.7% from the same period last year. However, earnings before interest, taxes, depreciation and amortization (EBITDA) declined slightly from US$52.8 million in 2014 to US$52.5 million in this year’s quarter ended September 30.
A nine-month snapshot of the company in 2015 show sales are up by 4.73% from US$556 million last Q3 to US$582.3 this year, EBITBA has improved by 25% from US$42.4 million to US$53.1 million, and net income has increased by a whopping 74% from US$18.7 million to US$32.6 million compared to the same nine-month period in 2014.
Notably, Jakks Pacific CEO Stephen Berman has added the role of chairman of the board of directors to his remit. In a company statement, Berman said he is pleased with the company’s Q3 performance and continued momentum. Margins are steadily improving, operations are becoming more efficient and there has been strong product innovation across a number of portfolio brands.
Looking ahead to the holiday season and into 2016, Berman said Jakks has a strong pipeline of new products and new licenses, and the company aims to continue building within the categories in which it excels, as well as driving innovation to increase profits.
“We have just finished our Fall 2016 Toy Preview with customers from around the world, and we are also encouraged by the positive response now to both our Spring and Fall product lines,” Berman said.