SANTA MONICA, Calif.--(BUSINESS WIRE)--Sep. 20, 2017--
JAKKS Pacific, Inc. (NASDAQ: JAKK) today announced that the Company does
not anticipate any long-term material adverse impact from the Toys ‘R’
Us bankruptcy filing. The uninsured portion of the amounts due from Toys
‘R’ Us represents less than 3% of the Company’s outstanding accounts
receivables as of September 18, 2017. The Company also stated it is not
known yet what the recovery will be on such uninsured receivables. Sales
to Toys ‘R’ Us were anticipated to account for approximately 5% to 6% of
the Company’s net sales for the third and fourth quarters, but the
Company does not know what amount of such sales will be realized.
JAKKS now expects to recognize charges against income for the 2017
fiscal year, including cash charges related to the write-off of bad debt
and minimum guarantee shortfalls, and non-cash charges related to the
impairment of certain assets including goodwill from acquisitions. The
Company is revising its forecast since it now expects to sustain a net
loss and negative earnings per share for the year, but still expects to
have positive EBITDA, as adjusted, for the year, although not higher
than the prior year, as previously announced. JAKKS otherwise
anticipates no significant impact on its ability to execute on-going
corporate initiatives and business operations.
JAKKS CEO & Chairman Stephen Berman said, “2017 continues to present a
challenging retail environment, which has now been further disrupted by
the Toys ‘R’ Us Chapter 11 filing. Nevertheless, the announced
availability of DIP financing leaves us optimistic that we can resume
our relationship with Toys ‘R’ Us as one of its significant suppliers.”
Berman continued, “For the past 22 years, since the founding of JAKKS
Pacific in 1995, Toys ‘R’ Us has been one of JAKKS’ most significant
business partners. Together, the companies have brought new and
innovative toy products to millions of children around the world. The
Chapter 11 filing by Toys ‘R’ Us and its announcement of available
financing for its continued operations is expected to provide the
opportunity for Toys ‘R’ Us, together with JAKKS, to continue to provide
high-quality and exciting toy products for many years to come. JAKKS
appreciates the relationship that has existed throughout the years and
looks forward to the relationship continuing to grow and flourish.”
About JAKKS Pacific, Inc.
JAKKS Pacific, Inc. (NASDAQ: JAKK) 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 BIG-FIGS™, XPV®, Max Tow™ and
Friends, Disguise®, Moose Mountain®, Funnoodle®, Maui®, Kids Only!®; a
wide range of entertainment-inspired products featuring premier licensed
properties; and, C’est Moi™, a youth skincare and make-up brand. Through
JAKKS Cares, the company’s commitment to philanthropy, JAKKS is helping
to make a positive impact on the lives of children. Visit us at www.jakks.com and
follow us on Instagram (@jakkstoys),
and Facebook (JAKKS
© 2017 JAKKS Pacific, Inc. All rights reserved.
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' products, product mix, the timing of customer orders and
deliveries, the impact of competitive products and pricing, and
difficulties with integrating acquired businesses. 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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170920006148/en/
Source: JAKKS Pacific, Inc.
Sara Rosales Montalvo