Jakks Pacific has reported results for the third quarter and first nine months ended September 30th, 2011.
Net profit for the third quarter was $34.8 million, which included a $0.7 million, related to legal and financial advising fees and expenses in conjunction with the unsolicited indication of interest to acquire the company. The profit compares to $40.4 million, which included a tax benefit of $5.9 million, in the comparable period in 2010.
Excluding the legal and financial advising fees in 2011 and tax benefit in 2010, third quarter earnings in 2011 would have been $35.3 million, compared to $34.5 million in 2010.
Net sales for the nine months fell to $536.7 million, from $549.3 million in 2010. Net income reported for the nine month period was $28.5 million, which includes fees and expenses related to the unsolicited indication of interest of $1.8 million. This compares to net income for the first nine months of 2010 of $38.2 million, which includes a one-time pre-tax charge relating to the benefit payment of $2.8 million, to the estate of Jack Friedman pursuant to his employment agreement and tax benefits of $10.8 million.
Excluding the legal and financial advising fees in 2011 and the tax benefit and one-time charge in 2010, the nine month earnings would have been $29.9 million, or $1.01 per diluted share, compared to $29.3 million, or $0.97 per diluted share in 2010.
Stephen Berman, CEO and president, commented: "I am pleased to report that sales in the third quarter were in line with our expectations and several new toys from our portfolio are already garnering industry and retailer accolades.
"Our Spy Net electronics, I Am T-Pain Mic, Cabbage Patch Kids, Singing and Storytelling Belle, Disney Princess Dress-Up and Role Play, to name just a few, have earned coveted positions on many retailer and media Hot Holiday Toy Lists both in the US and abroad. We are also excited to expand our portfolio with our recently completed acquisition of Moose Mountain Toymakers.
"In addition, we are wrapping up Fall Toy Fair meetings with retailers, licensors and other industry partners and are pleased with the enthusiastic response to our 2012 lines including Monsuno, Winx Club, Spy Net and others.
"We remain committed to delivering value to our stockholders," said Joel Bennett, executive vice president and CFO. "During the quarter, we declared the Company's first ever cash dividend and we completed our previously announced $30.0 million stock buy-back program with the repurchase of 1,206,000 shares of our common stock for a total of $19.3 million."