JAKKS Pacific, Inc. (JAKK) stock prices were up 6.55% as of the market closing on July 28th, 2021, bringing the price per share up to USD$13.66 at the end of the trading day. Subsequent after-hours trading saw the stock drop by 5.93%, bringing it down to USD$12.85.
Net Sales Improvements
JAKK stock reported USD$112.4 million in net sales for the second quarter of fiscal 2021, representing a 43% increase over the prior year quarter, which reported USD$78.8 million. Toys/Consumer Products segment sales increased 45% globally, with sales of Disguise costumes reporting a 37% year-over-year increase. Toys/Consumer Products sales reported a year-to-date increase of 36% as compared to the 2020 period and 28% higher than numbers reported for the 2019 period. Costumes segment sales were up 31% in the year-to-date period, as compared to the 2020 period. The more robust entertainment slate was up 13% from the 2019 period.
JAKK Stock’s Liquidity Position
The end of the second quarter of fiscal 2021, ended June 30th, 2021, saw JAKK stock report USD$38.3 million in cash and cash equivalents, inclusive of restrictive cash. The company reported a liquidity position of USD$52.7 million as of June 30th 2020, whereas December 31st, 2020 saw the company report USD$92.7 million in restricted and unrestricted cash and cash equivalents.
Refinancing of Debt
The second quarter of 2021 saw JAKK stock refinance long-term debt into a new term loan. With the debt having previously been due in 2023, the refinanced loan will mature in 2027. The company effectively leveraged its solid liquidity position to lower its level of long-term debt. The transaction also saw the interest rate decrease from 10.5% to 7.5%.
Unsecured Senior Convertible Notes
Having paid off its previous term loan, JAKK stock managed to facilitate the accelerated maturity of its unsecured senior convertible notes. These unsecured senior convertible notes are now expected to mature in September of 2021. July 27th 2021 saw the company report USD$2.9 million in notes remaining, with the balance having been converted into shares of the company’s common stock. As of the same date, JAKK reported having a total of 9.4 million shares of common stock outstanding.
Future Outlook for JAKK Stock
Armed with the success of its financial reports and a steady trajectory of recent growth, JAKK stock is poised to capitalize on continuing its long-term success. The company is keen to maintain its momentum through the next several years. Current and potential investors are hopeful that management will be able to leverage the resources at their disposal to facilitate significant and sustained increases in shareholder value.
