Jakks Pacific posts 4th-quarter loss, lower revenue; co-CEO to step down

Jakks Pacific reports 4Q loss, lower sales

MALIBU, Calif. — Toy company Jakks Pacific Inc. posted a fourth-quarter loss Tuesday, weighed by charges and lower sales, reversing a profit a year earlier.

A weak forecast sent the company’s shares lower in after-hours trading. In addition, Jack Friedman, chairman and co-CEO, said he is stepping down from his co-CEO post on April 1. He will continue to serve as chairman. Stephen Berman will serve as the only CEO and continue as president.

Jakks makes a variety of toys, many of them under licenses such as SpongeBob Squarepants and Hannah Montana.

The company posted a net loss of $1.9 million, or 7 cents per share, down from a profit of $16.9 million, or 55 cents per share, in the same period a year earlier.

Excluding one-time items, including a goodwill impairment charge related to its sustained share price decline, Jakks earned 22 cents per share in the latest quarter.

Revenue fell 26 percent to $198.8 million.

Analysts, on average, were expecting a profit of 18 cents per share on sales of $203.5 million, according to a poll by Thomson Reuters. Analysts typically exclude one-time items from their estimates.

For the full year, Jakks posted a loss of $385.5 million, or $14.02 per share, down from a profit of $76.1 million, or $2.42 per share, in the previous year.

Excluding the impairment charge and other items, the company earned $30.2 million, or $1.03 per share, in 2009.

Revenue fell 11 percent to $803.7 million.

Jakks forecast a loss in the range of 20 cents to 25 cents per share for the first quarter on sales of $70 million to $74 million. Analysts are forecasting a loss of 33 cents per share on sales of $96.6 million.

For the full year, the company expects a profit of $1.10 to $1.20 per share on sales of about $660 million to $670 million. Analysts expect a profit of $1.37 per share on sales of $798.3 million.

Shares fell 60 cents, or 4.8 percent, to $11.90 in after-hours trading. The stock had closed down 10 cents at $12.50.