JAKKS Pacific, Inc (JAKK) saw its loss narrow to $7.58 million, or $0.47 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $9.33 million, or $0.50 a share. Revenue during the quarter went up marginally by 2.21 percent to $167.03 million from $163.41 million in the previous year period. Gross margin for the quarter expanded 86 basis points over the previous year period to 31.20 percent. Operating margin for the quarter stood at negative 1.43 percent as compared to a negative 4.22 percent for the previous year period.
Operating loss for the quarter was $2.39 million, compared with an operating loss of $6.89 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $4.02 million compared to negative $2.14 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at 2.41 percent for the quarter compared to negative 1.31 percent in the last year period.
The Company’s chairman and chief executive officer Stephen Berman stated, “As we indicated in December, several of our key licensed products, including some tied to motion pictures, experienced surprising sales weakness in December, resulting in sales that were only modestly higher than a year ago. Despite the shortfall from our original guidance, we were able to make progress on several of our strategic goals, including growing some of our core segments, broadening our owned IP both internally and with newly acquired property, expanding our geographic footprint, and building up our online sales channel.
Working capital declines
JAKKS Pacific, Inc has witnessed a decline in the working capital over the last year. It stood at $236.57 million as at Dec. 31, 2016, down 6.21 percent or $15.66 million from $252.23 million on Dec. 31, 2015. Current ratio was at 3.03 as on Dec. 31, 2016, up from 2.94 on Dec. 31, 2015.
Debt moves up marginally
JAKKS Pacific, Inc has witnessed an increase in total debt over the last one year. It stood at $213.01 million as on Dec. 31, 2016, up 1.84 percent or $3.84 million from $209.17 million on Dec. 31, 2015. Short-term debt stood at $10 million as on Dec. 31, 2016. Total debt was 45.88 percent of total assets as on Dec. 31, 2016, compared with 41.35 percent on Dec. 31, 2015. Debt to equity ratio was at 1.58 as on Dec. 31, 2016, up from 1.36 as on Dec. 31, 2015.
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