JAKKS Pacific, Inc. (NASDAQ:JAKK) Q2 2020 Earnings Conference Call - Final Transcript

Jul 29, 2020 • 05:00 pm ET


JAKKS Pacific, Inc. (NASDAQ:JAKK) Q2 2020 Earnings Conference Call - Final Transcript


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Good afternoon, everyone. Welcome to the JAKKS Pacific's Second Quarter Earnings Conference Call with management, who will review financial results for the quarter ended June 30, 2020. JAKKS issued its earning press release earlier today. The earnings release and presentation slides for today's call are available on the company's website in the Investors section.

On the call this afternoon are Stephen Berman, Chairman and Chief Executive Officer; and John Kimble, Chief Financial Officer. Mr. Berman will first provide an overview of the quarter, along with highlights of product lines and current business trends and the discussion of the impact of COVID-19,. Then Mr. Kimble will provide detailed comments regarding JAKKS Pacific financial and operational results. Mr. Berman will then return with additional comments and some closing remarks prior to opening up the call for questions. [Operator Instructions]

Before we begin, the company would like to point out that any comments made about JAKKS Pacific's future performance, events or circumstances, including estimates of sales and of adjusted EBITDA in 2020 as well as any other forward-looking statements concerning 2020 and beyond are subject to safe harbor protections under federal security laws. These statements reflect the company's best judgment based on current market trends and conditions today and are subject to certain risks and uncertainties, which could cause actual results to differ materially from those projected in forward-looking statements. For details concerning these and other such risks and uncertainties, you should contact JAKKS' most recent 10-K and 10-Q filings with the SEC as well as the company's other reports subsequently filed with the SEC from time to time.

In addition, today's comments by management will refer to non-GAAP financial measures, such as adjusted EBITDA. Unless stated otherwise, the most direct comparable GAAP financial metric has been reconciled to the associated non-GAAP financial measures with the company's earnings press release issued today or previously. [Operator Instructions]

With that, I would now like to turn the call over to Stephen Berman.

Stephen G. Berman

Thank you, and good afternoon, everyone, and thank you for joining us today. We are pleased with the results we were able to post for the second quarter and not just because they were better than we had expected internally, but because I believe underneath the reported numbers, there are very promising signs that we believe point to better performance in the future.

Like almost every company in the world we faced considerable challenges in the quarter from the ongoing pandemic. These challenges started in the first quarter, but in some ways, they were different from the ones we faced in the first quarter. Our priority remains the health and safety of our employees and their families, our customers and our suppliers. In some ways, our business is back to normal. And in other ways, it still has a way to go.

We continue to operate with limited staff coming into the offices worldwide and many, if not most, of our employees are working from home. Our manufacturing partners are back online, but they