JAKKS Pacific Inc. - Conference Presentation Calls

JAKKS Pacific Inc. reported unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2009. For the quarter, the company's net sales were $351,438,000 against $357,824,000 a year ago. Income from operations was $52,346,000 against $57,338,000 a year ago. Income before provision (benefit) for income taxes was $49,189,000 against $60,803,000 a year ago. Net income was $33,709,000 or $1.06 per basic share against $54,145,000 or $1.70 per basic share a year ago. Non-GAAP net sales were $352,048,000 against $357,824,000 a year ago. Non-GAAP income from continuing operations was $35,936,000 or $1.128 per diluted share against $46,638,000 or $1.469 per diluted share a year ago. Operations provided cash of $35.9 million. For the nine months, the company's net sales were $604,932,000 against $634,050,000 a year ago. Loss from operations was $440,405,000 against income from operations of $62,012,000 a year ago. Loss before provision (benefit) for income taxes was $465,852,000 against income before provision (benefit) for income taxes of $68,097,000 a year ago. Net loss was $383,652,000 or $14.11 per basic share against net income of $59,178,000 or $1.88 per basic share a year ago. Non-GAAP net sales were $605,542,000 against $634,050,000 a year ago. Non-GAAP income from continuing operations was $24,290,000 or $0.826 per diluted share against $53,360,000 or $1.698 per diluted share a year ago. For the 2009 fiscal year the company is expecting GAAP net sales of approximately $810 million, with a net loss on a GAAP basis of $378.0 million, or $13.72 per share, and is expecting non-GAAP net sales of approximately $810.7 million, with net income on a non-GAAP basis of $30.0 million, or $1.01 per diluted share. 2009 GAAP results include the following, which were excluded from the non-GAAP results: Pre-tax non-cash goodwill impairment charge of $407.1 million due to the sustained decline in the Company's market capitalization pursuant to the applicable accounting rule, SFAS 142, taken in the second quarter of 2009. Pre-tax non-cash impairment charge of $8.2 million related to certain of the Company's under-utilized trademarks, taken in the second quarter of 2009.

JAKKS Pacific Inc. provided capital expenditure guidance for the year 2009. For the year, the company expects capital expenditure to be approximately $18 million down from $23 million in 2008.