JAKKS Pacific 8K ® Reports First Quarter Results for 2011 | JAKK 26 Apr 11

Exhibit 99.1

JAKKS Pacific® Reports First Quarter Results for 2011

MALIBU, Calif.--(BUSINESS WIRE)--April 26, 2011--JAKKS Pacific, Inc. (NASDAQ: JAKK) reported results for the Company’s first quarter ended March 31, 2011.

Net sales for the first quarter of 2011 were $72.3 million, compared to $77.3 million reported in the first quarter of 2010. The Company reported a loss for the first quarter of 2011 of $10.6 million, or $0.39 per diluted share, compared to a loss for the first quarter of 2010 of $5.2 million, or $0.19, which included a tax benefit adjustment of $4.9 million, or $0.18 per diluted share. Excluding the tax benefit adjustment, the 2010 first quarter loss would have been $10.1 million, or $0.37 per diluted share.

“2011 started off favorably, with our net sales exceeding and our earnings meeting the high end of our guidance ranges for the first quarter and our Fall lines proceeding on plan,” commented Stephen Berman, President and CEO, JAKKS Pacific. “So far, our gross margin is up over last year and we anticipate being able to achieve continued margin improvement in the second half of the year as a result of our ongoing commitment to closely managing our supply chain.

“We remain pleased with our broad array of products which have widespread placement at retail. We expect the top contributors to be Disney Princess and Disney Fairies dolls, dress-up and pretend products, as well as the I Am T-Pain Microphone, SpyNet electronics, Cabbage Patch Kids dolls, Pokémon toys, Halloween costumes and other toys related to several movie properties, including Cars 2. We are also working on a number of exciting initiatives for our future including our new animated television show and related toy product line MONSUNO™.”

Operations provided cash of $7.9 million for the first quarter of 2011, and as of March 31, 2011, the Company’s working capital was $370.7 million, including cash and equivalents and marketable securities of $274.7 million.

“We have been closely watching the acquisition landscape in search of quality additions to our portfolio,” commented Joel Bennett, Executive Vice President and CFO. “Using our disciplined approach, we continue to look for accretive acquisitions to complement the growth of our business and effectively deploy our capital.”

Berman concluded, “At this point we are still anticipating an increase in net sales for 2011 over last year of 3% to 4% to approximately $770 to $775 million, with diluted EPS in the range of $1.32 to $1.35, an increase of 4% to 6% over fiscal 2010 adjusted EPS of $1.27, which excludes 2010’s tax benefit adjustments and one-time benefit payment made to the estate of Jack Friedman, our deceased Chairman and former Co-CEO. We continue to have strong confidence in the future prospects for JAKKS Pacific and its shareholders."

Conference Call

JAKKS Pacific will webcast its fourth quarter earnings conference call today at 9:00a.m. ET (6:00a.m. PT) today. To listen to the live webcast, go to investors.jakks.com, and click on the earnings webcast link under Events and Presentations at least 10 minutes prior to register, download and install any necessary audio software. A telephonic playback will be available from approximately one hour after the call concludes through May 26, 2011. The playback can be accessed by calling 888-203-1112 or 719-457-0820 for international callers, pass code “1522613”.

About JAKKS Pacific, Inc.

JAKKS Pacific, Inc. (NASDAQ: JAKK) is a leading designer and marketer of toys and consumer products, with a wide range of products that feature some of the most popular brands and children's toy licenses in the world. JAKKS’ diverse portfolio includes Action Figures, Electronics, Dolls, Dress-Up, Role Play, Halloween Costumes, Kids Furniture, Vehicles, Plush, Art Activity Kits, Seasonal Products, Infant/Pre-School, Construction Toys and Pet Toys sold under various proprietary brands including JAKKS Pacific®, Creative Designs International™, Road Champs®, Funnoodle®, JAKKS Pets™, Plug It In & Play TV Games™, Kids Only!™, Tollytots® and Disguise™. JAKKS is an award-winning licensee of several hundred nationally and internationally known trademarks including Disney®, Nickelodeon®, Pokémon®, Warner Bros.®, Ultimate Fighting Championship®, Hello Kitty®, Graco® and Cabbage Patch Kids®. www.jakks.com

This press release may contain forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995) that are based on current expectations, estimates and projections about JAKKS Pacific's business based partly on assumptions made by its management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such statements due to numerous factors, including, but not limited to, those described above, changes in demand for JAKKS' products, product mix, the timing of customer orders and deliveries, the impact of competitive products and pricing, and difficulties with integrating acquired businesses. The forward-looking statements contained herein speak only as of the date on which they are made, and JAKKS undertakes no obligation to update any of them to reflect events or circumstances after the date of this release.

(Financial Tables Follow)

JAKKS Pacific, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets


			March 31,			December 31,
				2011			2010
			(In thousands)

ASSETS

Current assets:
	Cash and cash equivalents		$	274,467		$	278,346
	Marketable securities			209			207
	Accounts receivable, net			57,432			122,476
	Inventory, net			45,158			43,230
	Income taxes receivable			19,043			19,052
	Deferred income taxes			23,868			23,576
	Prepaid expenses and other current assets			31,243			25,275
		Total current assets		451,420			512,162

Property and equipment				77,400			76,150
Less accumulated depreciation and amortization				59,247			59,204
	Property and equipment, net			18,153			16,946

Goodwill				6,988			6,988
Trademarks & other assets, net				37,431			38,388
Deferred income taxes				58,865			58,848
Investment in joint venture				1,814			74
		Total assets	$	574,671		$	633,406


LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
	Accounts payable and accrued expenses		$	55,087		$	90,389
	Reserve for sales returns and allowances			17,982			28,378
	Income taxes payable			7,675			6,143
		Total current liabilities		80,744			124,910

Long term debt				90,140			89,458
Other liabilities				1,620			1,625
Income taxes payable				4,497			5,005
		Total liabilities		177,001			220,998

Stockholders' equity:
	Common stock, $.001 par value			27			28
	Additional paid-in capital			292,678			302,425
	Treasury Stock			-			(5,641	)
	Retained earnings			109,309			119,884
	Accumulated other comprehensive income (loss)			(4,344	)		(4,288	)
				397,670			412,408
		Total liabilities and stockholders' equity	$	574,671		$	633,406

JAKKS Pacific, Inc. and Subsidiaries
First Quarter Earnings Announcement, 2011
Condensed Statements of Income (Unaudited)


			Three Months Ended March 31,

				2011			2010
			(In thousands, expect per share data)

Net sales			$	72,323		$	77,345
Less cost of sales
	Cost of goods			39,819			42,527
	Royalty expense			6,866			8,006
	Amortization of tools and molds			1,367			1,579
	Cost of sales			48,052			52,112
		Gross profit		24,271			25,233
Direct selling expenses				8,165			8,795
Selling, general and administrative expenses				29,246			27,925
Depreciation and amortization				1,650			2,141
		Loss from operations		(14,790	)		(13,628	)
Other income (expense):
	Equity in Net Income of Joint Venture			9			-
	Interest income			105			57
	Interest expense, net of benefit			(2,040	)		(1,197	)
Loss before benefit for income taxes				(16,716	)		(14,768	)
Benefit for income taxes				(6,141	)		(9,611	)
Net loss			$	(10,575	)	$	(5,157	)
	Loss per share		$	(0.39	)	$	(0.19	)
	Shares used in loss per share			27,217			27,394

CONTACT:
JAKKS Pacific, Inc.
Joel Bennett
(310) 455-6210
joelb@jakks.net

JAKKS Pacific (JAKK) 8-KJAKKS Pacific® Reports First Quarter Results for 2011