Jakks sees mixed results

first_img AD Quality Auto 360p 720p 1080p Top articles1/5READ MORECasino Insider: Here’s a look at San Manuel’s new high limit rooms, Asian restaurant Full-year net income totaled $63.5 million, or $2.07 per share, up from $43.6 million, or $1.49 per share for all of 2004. Excluding the tax impact, full-year net income would have been $71.2 million, or $2.30 a share. Sales for 2005 total $661.5 million, up 15.2 percent, from $574.3 a year earlier. Jack Friedman, the company’s chairman and chief executive officer, during a conference call from the New York Toy Fair credited the record year to brand management skills, acquisitions and diverse product line. “The company enters 2006 with the most diversified product line in our history and we expect to again achieve record revenue and earnings in 2006,” he said. MALIBU – Jakks Pacific Inc. on Tuesday reported weaker fourth quarter results versus a year ago but the toy designer and consumer products maker still posted record sales and earnings for 2005. During the final three months of 2005 the Malibu-based company said it earned $9 million, equal to 30 cents a share, down from $10.5 million, 35 cents, in the comparable period of 2004. Current fourth-quarter results include a one-time impact of a higher tax rate associated with dividends paid by Hong Kong subsidiaries to the U.S.-based company. Absent this, earnings would have totaled $16.7 million, or 53 cents a share. Fourth-quarter sales were $166.3 million, down 10 percent from $184.8 million a year ago. The company has licensing rights for the entire Walt Disney Co. portfolio and has had sales success with its TV games consoles, adapting popular children’s characters into video games that plug directly into televisions. It also adapted that technology to make interactive books that appear on TV screens. Jakks also recently completed the acquisition of Creative Designs International, which makes a line of play toys like vacuums, dress-up outfits, glamour cases, tea and cookware sets, housekeeping sets, jewelry sets and other lifestyle toys for girls. “We will immediately focus on expanding their distribution both in North America and internationally. CDI’s license relationships include Disney and many other household names,” said Stephen Berman, Jakks president and chief operating officer. Friedman said that this year the company expects to increase sales to approximately $825 million and boost net income to $82 million, or $2.63 a share. But the fourth-quarter softness will carry over into this year’s first quarter with earning per share of 13 cents to 18 cents, under last’s year’s level. “We anticipate more than making it up in the balance of the year with the initiatives we have in place and based on the response from the trade on our lines,” Friedman said. Wall Street gave the company’s report a tepid response. Shares closed Monday at $22.63, down $1.47 or 6.10 percent. Gregory J. Wilcox, (818) 713-3743 [email protected] 160Want local news?Sign up for the Localist and stay informed Something went wrong. Please try again.subscribeCongratulations! You’re all set!last_img read more