Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | May 10, 2017 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | JAKK | |
Entity Registrant Name | JAKKS PACIFIC INC | |
Entity Central Index Key | 1,009,829 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 26,875,030 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Current assets | ||
Cash and cash equivalents | $ 57,456 | $ 86,064 |
Restricted cash | 10,576 | |
Accounts receivable, net of allowance for uncollectible accounts of $2,574 and $2,864 in 2017 and 2016, respectively | 98,491 | 173,599 |
Inventory, net | 67,466 | 75,435 |
Income taxes receivable | 1,745 | 1,204 |
Prepaid expenses and other assets | 31,832 | 17,077 |
Total current assets | 267,566 | 353,379 |
Property and equipment | ||
Office furniture and equipment | 14,474 | 14,345 |
Molds and tooling | 104,670 | 103,128 |
Leasehold improvements | 10,896 | 10,927 |
Total | 130,040 | 128,400 |
Less accumulated depreciation and amortization | 107,423 | 105,559 |
Property and equipment, net | 22,617 | 22,841 |
Intangible assets, net | 30,976 | 33,111 |
Other long term assets | 2,306 | 2,156 |
Investment in DreamPlay LLC | 7,000 | 7,000 |
Goodwill, net | 43,268 | 43,208 |
Trademarks, net | 2,608 | 2,608 |
Total assets | 376,341 | 464,303 |
Current liabilities | ||
Accounts payable | 30,135 | 51,741 |
Accrued expenses | 18,644 | 38,645 |
Reserve for sales returns and allowances | 10,551 | 16,424 |
Short term debt | 10,000 | 10,000 |
Total current liabilities | 69,330 | 116,810 |
Convertible senior notes, net of debt issuance costs of $3,173 and $3,858 in 2017 and 2016, respectively | 164,554 | 203,007 |
Other liabilities | 4,909 | 5,004 |
Income taxes payable | 2,248 | 2,248 |
Deferred income taxes, net | 2,034 | 2,034 |
Total liabilities | 243,075 | 329,103 |
Commitments and contingencies | ||
Stockholders' equity | ||
Preferred stock, $.001 par value; 5,000,000 shares authorized; nil outstanding | ||
Common stock, $.001 par value; 100,000,000 shares authorized; 23,208,535 and 19,376,773 shares issued and outstanding in 2017 and 2016, respectively | 23 | 19 |
Treasury stock, at cost; 3,112,840 and 3,112,840 shares in 2017 and 2016, respectively | (24,000) | (24,000) |
Additional paid-in capital | 193,440 | 177,624 |
Accumulated deficit | (20,464) | (2,148) |
Accumulated other comprehensive loss | (16,676) | (17,207) |
Total JAKKS Pacific, Inc. stockholders' equity | 132,323 | 134,288 |
Non-controlling interests | 943 | 912 |
Total stockholders' equity | 133,266 | 135,200 |
Total liabilities and stockholders' equity | $ 376,341 | $ 464,303 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Accounts receivable, allowance for uncollectible accounts | $ 2,574 | $ 2,864 |
Debt issuance costs | $ 3,173 | $ 3,858 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 23,208,535 | 19,376,773 |
Common stock, shares outstanding | 23,208,535 | 19,376,773 |
Treasury stock, shares | 3,112,840 | 3,112,840 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Net Sales | $ 94,505 | $ 95,809 |
Cost of sales | 64,484 | 64,626 |
Gross profit | 30,021 | 31,183 |
Selling, general and administrative expenses | 45,745 | 44,999 |
Loss from operations | (15,724) | (13,816) |
Other income | 23 | 75 |
Interest income | 4 | 16 |
Interest expense | (2,932) | (3,226) |
Loss before provision for (benefit from) income taxes | (18,629) | (16,951) |
Provision for (benefit from) income taxes | (344) | 432 |
Net loss | (18,285) | (17,383) |
Net income attributable to non-controlling interests | 31 | 32 |
Net loss attributable to JAKKS Pacific, Inc. | $ (18,316) | $ (17,415) |
Loss per share - basic and diluted | $ (1.01) | $ (1.01) |
Shares used in loss per share | 18,104 | 17,218 |
Comprehensive loss | $ (17,754) | $ (18,107) |
Comprehensive loss attributable to JAKKS Pacific, Inc. | $ (17,785) | $ (18,139) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Cash flows from operating activities | ||
Net loss | $ (18,285) | $ (17,383) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 4,380 | 4,037 |
Write-off and amortization of debt issuance costs | 837 | 783 |
Share-based compensation expense | 748 | 623 |
(Gain) loss on disposal of property and equipment | (2) | 1 |
Gain on extinguishment of convertible senior notes | (60) | |
Deferred income taxes | (94) | |
Changes in operating assets and liabilities, net of acquisitions: | ||
Accounts receivable | 75,108 | 77,916 |
Inventory | 7,969 | 7,074 |
Income taxes receivable | (541) | |
Prepaid expenses and other assets | (15,056) | (868) |
Accounts payable | (19,258) | (8,756) |
Accrued expenses | (20,001) | (26,556) |
Reserve for sales returns and allowances | (5,873) | (4,163) |
Income taxes payable | 674 | |
Other liabilities | (95) | 148 |
Total adjustments | 28,216 | 50,759 |
Net cash provided by operating activities | 9,931 | 33,376 |
Cash flows from investing activities | ||
Purchases of property and equipment | (4,367) | (3,816) |
Net cash used in investing activities | (4,367) | (3,816) |
Cash flows from financing activities | ||
Repurchase of common stock | (9,841) | |
Repurchase of common stock for employee tax withholding | (12) | (844) |
Restricted cash | (10,576) | |
Repurchase of convertible senior notes | (24,052) | (1,940) |
Net cash used in financing activities | (34,640) | (12,625) |
Net increase (decrease) in cash and cash equivalents | (29,076) | 16,935 |
Effect of foreign currency translation | 468 | (549) |
Cash and equivalents, beginning of period | 86,064 | 102,528 |
Cash and equivalents, end of period | 57,456 | 118,914 |
Cash paid during the period for: | ||
Income taxes | 221 | 311 |
Interest | $ 2,039 | $ 2,139 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2017 | |
Basis of Presentation | Note 1 — Basis of Presentation The accompanying unaudited interim consolidated financial statements included herein have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such rules and regulations. However, the Company believes that the disclosures are adequate to prevent the information presented from being misleading. These financial statements should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations and the financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K, which contains audited financial information for the three years in the period ended December 31, 2016. The information provided in this report reflects all adjustments (consisting solely of normal recurring items) that are, in the opinion of management, necessary to present fairly the financial position and the results of operations for the periods presented. Interim results are not necessarily, especially given seasonality, indicative of results to be expected for a full year. The consolidated financial statements include the accounts of JAKKS Pacific, Inc. and its wholly-owned subsidiaries (collectively, “the Company”). The consolidated financial statements also include the accounts of DreamPlay Toys, LLC, a joint venture between JAKKS Pacific, Inc. and NantWorks LLC, JAKKS Meisheng Trading (Shanghai) Limited, a joint venture between JAKKS Pacific, Inc. and Meisheng Cultural & Creative Corp., Ltd., and JAKKS Meisheng Animation (HK) Limited, a joint venture between JAKKS Pacific, Inc. and Hong Kong Meisheng Cultural Company Limited. Certain prior period amounts have been reclassified for consistency with the current period presentation. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers”, which supersedes nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing U.S. GAAP. The standard is effective for annual periods beginning after December 15, 2017, and interim periods therein, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). The Company is currently evaluating the impact of the pending adoption of ASU 2014-09 on its consolidated financial statements and has not yet determined the method by which it will adopt the standard in 2018. In January 2016, the FASB issued ASU 2016-01, “Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities”. The new guidance is intended to improve the recognition and measurement of financial instruments. The ASU is effective for fiscal years and interim periods within those years beginning after December 15, 2017. The Company is currently assessing the potential impact of this ASU on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases”. ASU 2016-02 establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company is currently evaluating the impact of the pending adoption of this new standard on its consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments.” The new guidance is intended to reduce diversity in practice in how transactions are classified in the statement of cash flows. This ASU is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2017. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements. In October 2016, the FASB issued ASU 2016-16, “Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other than Inventory.” The amendments in this ASU reduces the complexity in the accounting standards by allowing the recognition of current and deferred income taxes for an intra-entity asset transfer, other than inventory, when the transfer occurs. Historically, recognition of the income tax consequence was not recognized until the asset was sold to an outside party. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted. The Company is currently evaluating the impact of this ASU on its consolidated financial statements. In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash”. The update requires that amounts generally described as restricted cash or restricted cash equivalents be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The new standard will be effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, and early adoption is permitted. The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, “Simplifying the Test for Goodwill Impairment”, which removes Step 2 from the goodwill impairment test. ASU 2017-04 will be effective for interim and annual reporting periods beginning after December 15, 2019. Early application is permitted after January 1, 2017. The Company is currently evaluating the impact of the adoption of ASU 2017-04 on its consolidated financial statements. |
Business Segments, Geographic D
Business Segments, Geographic Data, and Sales by Major Customers | 3 Months Ended |
Mar. 31, 2017 | |
Business Segments, Geographic Data, and Sales by Major Customers | Note 2 — Business Segments, Geographic Data, and Sales by Major Customers The Company is a worldwide producer and marketer of children’s toys and other consumer products, principally engaged in the design, development, production, marketing and distribution of its diverse portfolio of products. The Company has aligned its operating segments into three segments that reflect the management and operation of the business. The Company’s segments are (i) U.S. and Canada, (ii) International, and (iii) Halloween. The U.S. and Canada segment includes action figures, vehicles, play sets, plush products, dolls, electronic products, construction toys, infant and pre-school toys, role play and everyday costume play, foot to floor ride-on vehicles, wagons, novelty toys, seasonal and outdoor products, kids’ indoor and outdoor furniture, and pet treats and related products, primarily within the United States and Canada. Within the International segment, the Company markets and sells its toy products in markets outside of the U.S. and Canada, primarily in the European, Asia Pacific, and Latin and South American regions. Within the Halloween segment, the Company markets and sells Halloween costumes and accessories and everyday costume play products, primarily in the U.S. and Canada. Segment performance is measured at the operating income level. All sales are made to external customers and general corporate expenses have been attributed to the various segments based upon relative sales volumes. Segment assets are primarily comprised of accounts receivable and inventories, net of applicable reserves and allowances, goodwill and other assets. Certain assets which are not tracked by operating segment and/or that benefit multiple operating segments have been allocated on the same basis. Results are not necessarily those which would be achieved if each segment was an unaffiliated business enterprise. Information by segment and a reconciliation to reported amounts for the three months ended March 31, 2017 and 2016 and as of March 31, 2017 and December 31, 2016 are as follows (in thousands): Three Months Ended 2017 2016 Net Sales U.S. and Canada $ 70,912 $ 72,202 International 19,942 20,168 Halloween 3,651 3,439 $ 94,505 $ 95,809 Three Months Ended 2017 2016 Loss from Operations U.S. and Canada $ (7,876 ) $ (8,553 ) International (1,772 ) (2,161 ) Halloween (6,076 ) (3,102 ) $ (15,724 ) $ (13,816 ) Three Months Ended 2017 2016 Depreciation and Amortization Expense U.S. and Canada $ 3,374 $ 3,070 International 898 852 Halloween 108 114 $ 4,380 $ 4,036 March 31, December 31, Assets U.S. and Canada $ 246,206 $ 306,895 International 99,464 119,560 Halloween 30,671 37,848 $ 376,341 $ 464,303 The following tables present information about the Company by geographic area as of March 31, 2017 and December 31, 2016 and for the three months ended March 31, 2017 and 2016 (in thousands): March 31, December 31, Long-lived Assets China $ 15,764 $ 15,710 United States 6,347 6,587 Hong Kong 506 544 $ 22,617 $ 22,841 Three Months Ended 2017 2016 Net Sales by Customer Area United States $ 69,560 $ 70,968 Europe 12,560 12,755 Canada 4,444 4,650 Hong Kong 219 339 Other 7,722 7,097 $ 94,505 $ 95,809 Major Customers Net sales to major customers for the three months ended March 31, 2017 and 2016 were as follows (in thousands, except for percentages): Three Months Ended March 31, 2017 2016 Amount Percentage of Net Sales Amount Percentage of Net Sales Wal-Mart $ 23,252 24.6 % $ 27,747 28.9 % Target 12,659 13.4 8,334 8.7 Toys 'R' Us 7,711 8.2 8,122 8.5 $ 43,622 46.2 % $ 44,203 46.1 % At March 31, 2017 and December 31, 2016, the Company’s three largest customers accounted for approximately 46.3% and 35.8%, respectively, of net accounts receivable. The concentration of the Company’s business with a relatively small number of customers may expose the Company to material adverse effects if one or more of its large customers were to experience financial difficulty. The Company performs ongoing credit evaluations of its top customers and maintains an allowance for potential credit losses. |
Inventory
Inventory | 3 Months Ended |
Mar. 31, 2017 | |
Inventory | Note 3 — Inventory Inventory, which includes the ex-factory cost of goods, in-bound freight, duty and capitalized warehouse costs, is valued at the lower of cost (first-in, first-out) or net realizable value, net of inventory obsolescence reserve, and consists of the following (in thousands): March 31, December 31, Raw materials $ 2,155 $ 5,204 Finished goods 65,311 70,231 $ 67,466 $ 75,435 During the first quarter of 2017, the Company adopted ASU 2015-11, “Simplifying the Measurement of Inventory (Topic 330)”. The amendments, which apply to inventory that is measured using any method other than the last-in, first-out (LIFO) or retail inventory method, require that entities measure inventory at the lower of cost or net realizable value. ASU 2015-11 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016 and should be applied on a prospective basis. The adoption of ASU 2015-11 did not have a material impact to the Company’s consolidated financial statements. |
Revenue Recognition and Reserve
Revenue Recognition and Reserve for Sales Returns and Allowances | 3 Months Ended |
Mar. 31, 2017 | |
Revenue Recognition and Reserve for Sales Returns and Allowances | Note 4 — Revenue Recognition and Reserve for Sales Returns and Allowances Revenue is recognized upon the shipment of goods to customers or their agents, depending upon terms, provided there are no uncertainties regarding customer acceptance, the sales price is fixed or determinable and collectability is reasonably assured and not contingent upon resale. Generally, the Company does not allow product returns. It provides its customers a negotiated allowance for breakage or defects, which is recorded when the related revenue is recognized. However, the Company does make occasional exceptions to this policy and consequently accrues a return allowance based upon historic return amounts and management estimates. The Company occasionally grants credits to facilitate markdowns and sales of slow moving merchandise. These credits are recorded as a reduction of gross sales at the time of occurrence. The Company also participates in cooperative advertising arrangements with some customers, whereby it allows a discount from invoiced product amounts in exchange for customer purchased advertising that features the Company’s products. Generally, these discounts range from 1% to 10% of gross sales, and are generally based upon product purchases or specific advertising campaigns. Such amounts are accrued when the related revenue is recognized or when the advertising campaign is initiated. These cooperative advertising arrangements are accounted for as direct selling expenses. The Company’s reserve for sales returns and allowances amounted to $10.6 million as of March 31, 2017, compared to $16.4 million as of December 31, 2016. This decrease is primarily due to certain customers taking their annual allowances related to 2016 sales as well as allowances related to 2017 during 2017. |
Credit Facility
Credit Facility | 3 Months Ended |
Mar. 31, 2017 | |
Credit Facility | Note 5 — Credit Facility In March 2014, the Company and its domestic subsidiaries entered into a secured credit facility with General Electric Capital Corporation (“GECC”). The loan agreement, as amended and subsequently assigned to Wells Fargo Bank, N.A. pursuant to its acquisition of GECC, provides for a $75.0 million revolving credit facility subject to availability based on prescribed advance rates on certain accounts receivable and inventory (the “WF Loan Agreement”). The amounts outstanding under the credit facility are payable in full upon maturity of the facility on March 27, 2019, and the credit facility is secured by a security interest in favor of the lender covering a substantial amount of the assets of the Company. As of March 31, 2017, outstanding borrowings and outstanding stand-by letters of credit exceeded the borrowing base availability under the credit line by $10.6 million which was funded by the Company resulting in restricted cash of $10.6 million. Such funds will become unrestricted when and as the excess borrowing capacity under the credit line becomes positive. As of December 31, 2016, the amount of outstanding borrowings was $10.0 million and outstanding stand-by letters of credit totaled $28.2 million; the total excess borrowing capacity was $12.1 million. The Company’s ability to borrow under the WF Loan Agreement is also subject to its ongoing compliance with certain financial covenants, including the maintenance by the Company of a fixed charge coverage ratio of at least 1.2:1.0 based on the trailing four fiscal quarters. As of March 31, 2017 and December 31, 2016, the Company was in compliance with the financial covenants under the WF Loan Agreement. The Company may borrow funds at LIBOR or at a base rate, plus applicable margins of 225 basis point spread over LIBOR and 125 basis point spread on base rate loans. In addition to standard fees, the facility has a stand-by letter of credit fee of 225 basis points and an unused credit line fee, which ranges from 25 to 50 basis points. As of March 31, 2017 and December 31, 2016, the interest rate on the credit facility was approximately 3.06% and 3.01%, respectively. The WF Loan Agreement also contains customary events of default, including a cross default provision and a change of control provision. In the event of a default, all of the obligations of the Company and its subsidiaries under the WF Loan Agreement may be declared immediately due and payable. For certain events of default relating to insolvency and receivership, all outstanding obligations become due and payable. |
Convertible Senior Notes
Convertible Senior Notes | 3 Months Ended |
Mar. 31, 2017 | |
Convertible Senior Notes | Note 6 — Convertible Senior Notes In July 2013, the Company sold an aggregate of $100.0 million principal amount of 4.25% Convertible Senior Notes due 2018 (the “2018 Notes”). The 2018 Notes are senior unsecured obligations of the Company paying interest semi-annually in arrears on August 1 and February 1 of each year at a rate of 4.25% per annum and will mature on August 1, 2018. The initial and still current conversion rate for the 2018 Notes is 114.3674 shares of JAKKS common stock per $1,000 principal amount of notes, equivalent to an initial conversion price of approximately $8.74 per share of common stock, subject to adjustment in certain events. Upon conversion, the 2018 Notes will be settled in shares of the Company’s common stock. Holders of the 2018 Notes may require that the Company repurchase for cash all or some of their notes upon the occurrence of a fundamental change (as defined in the 2018 Notes). In 2016, the Company repurchased and retired an aggregate of approximately $6.1 million principal amount of the 2018 Notes. In addition, approximately $0.1 million of the unamortized debt issuance costs were written off and a nominal gain was recognized in conjunction with the retirement of the 2018 Notes. During January and February 2017, the Company exchanged and retired $39.1 million principal amount of the 2018 Notes at par for $24.1 million in cash and approximately 2.9 million shares of its common stock. In June 2014, the Company sold an aggregate of $115.0 million principal amount of 4.875% Convertible Senior Notes due 2020 (the “2020 Notes”). The 2020 Notes are senior unsecured obligations of the Company paying interest semi-annually in arrears on June 1 and December 1 of each year at a rate of 4.875% per annum and will mature on June 1, 2020. The initial and still current conversion rate for the 2020 Notes is 103.7613 shares of the Company’s common stock per $1,000 principal amount of notes, equivalent to an initial conversion price of approximately $9.64 per share of common stock, subject to adjustment in certain events. Upon conversion, the 2020 Notes will be settled in shares of the Company’s common stock. Holders of the 2020 Notes may require that the Company repurchase for cash all or some of their notes upon the occurrence of a fundamental change (as defined in the 2020 Notes). In January 2016, the Company repurchased and retired an aggregate of $2.0 million principal amount of the 2020 Notes. In addition, approximately $0.1 million of the unamortized debt issuance costs were written off and a $0.1 million gain was recognized in conjunction with the retirement of the 2020 Notes. The fair value of the 2018 Notes as of March 31, 2017 and December 31, 2016 was approximately $55.5 million and $83.7 million, respectively, based upon the most recent quoted market price. The fair value of the 2020 Notes as of March 31, 2017 and December 31, 2016 was approximately $112.5 million and $89.3 million, respectively, based upon the most recent quoted market price. The fair value of the convertible senior notes is considered to be a Level 2 measurement on the fair value hierarchy. Convertible senior notes consist of the following (in thousands): March 31, 2017 December 31, 2016 Principal Amount Debt Issuance Costs Net Principal Amount Debt Issuance Costs Net 4.25% convertible senior notes (due 2018) $ 54,727 $ 610 $ 54,117 $ 93,865 $ 1,098 $ 92,767 4.875% convertible senior notes (due 2020) 113,000 2,563 110,437 113,000 2,760 110,240 Total $ 167,727 $ 3,173 $ 164,554 $ 206,865 $ 3,858 $ 203,007 Amortization expense classified as interest expense related to debt issuance costs was $0.3 million and $0.4 million for the three months ended March 31, 2017 and 2016, respectively. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2017 | |
Income Taxes | Note 7 — Income Taxes The Company’s income tax benefit of $0.3 million for the three months ended March 31, 2017 reflects an effective tax rate of 1.8%. The Company’s income tax expense of $0.4 million for the three months ended March 31, 2016 reflects an effective tax rate of (2.5%). The majority of the tax benefit for the three months ended March 31, 2017 relates to foreign income taxes partially offset by the U.S. alternative minimum tax. The majority of the tax expense for the three months ended March 31, 2016 relates to foreign taxes. During the first quarter of 2017, the Company adopted ASU 2016-09, “Improvement to Employee Share-Based Payment Accounting,” which simplifies several aspects of the accounting for share-based payments, including . Under the new standard, all excess tax benefits and tax deficiencies will be recognized as income tax expense or benefit in the income statement as discrete items in the reporting period in which they occur. Discrete tax expense of $51,000 was recognized in the income statement, but was fully offset by the valuation allowance. . |
Loss Per Share
Loss Per Share | 3 Months Ended |
Mar. 31, 2017 | |
Loss Per Share | Note 8 — Loss Per Share The following table is a reconciliation of the weighted average shares used in the computation of loss per share for the periods presented (in thousands, except per share data): Three Months Ended March 31, 2017 2016 Loss Weighted Average Shares Per-Share Loss Weighted Average Shares Per-Share Loss per share — basic and diluted Net loss available to common stockholders $ (18,316 ) 18,104 $ (1.01 ) $ (17,415 ) 17,218 $ (1.01 ) Basic loss per share is calculated using the weighted average number of common shares outstanding during the period. Diluted earnings per share is calculated using the weighted average number of common shares and common share equivalents outstanding during the period (which consist of warrants, options, restricted stock awards, restricted stock units and convertible debt to the extent they are dilutive). The weighted average number of common shares outstanding excludes shares repurchased pursuant to a prepaid forward share repurchase agreement (see Note 9). Common share equivalents that could potentially dilute basic earnings per share in the future, which were excluded from the computation of diluted earnings per share due to being anti-dilutive, totaled approximately 22,969,239 and 25,081,819 for the three months ended March 31, 2017 and 2016, respectively. |
Common Stock and Preferred Stoc
Common Stock and Preferred Stock | 3 Months Ended |
Mar. 31, 2017 | |
Common Stock and Preferred Stock | Note 9 — Common Stock and Preferred Stock In June 2014, the Company effectively repurchased 3,112,840 shares of its common stock for an aggregate amount of $24.0 million pursuant to a prepaid forward share repurchase agreement entered into with Merrill Lynch International (“ML”). These repurchased shares are treated as retired for basic and diluted earnings per share purposes although they remain legally outstanding. The Company reflects the aggregate purchase price as a reduction to stockholders’ equity classified as Treasury Stock. No shares have been delivered to the Company by ML as of March 31, 2017. In June 2015, and as subsequently increased, the Board of Directors authorized the repurchase of an aggregate of $35.0 million of the Company’s outstanding common stock and/or convertible senior notes (collectively, “securities”). During 2015, the Company repurchased and retired 1,547,361 shares of its common stock at an aggregate value of $13.2 million. During 2016, the Company repurchased and retired 1,766,284 shares of its common stock at an aggregate value of $13.5 million, and also repurchased and retired $2.0 million principal amount of its 2020 Notes at a cost of $1.9 million and $6.1 million principal amount of its 2018 Notes at a cost of $6.1 million. As of December 31, 2016, the Company completed the repurchase authorization. In January 2016, the Company issued an aggregate of 449,120 shares of restricted stock at a value of approximately $3.6 million to two executive officers, all of which were forfeited because certain company financial performance criteria and market conditions were not met. In addition, an aggregate of 62,710 shares of restricted stock at an aggregate value of approximately $0.5 million were issued to its five non-employee directors, which vested in January 2017. In March 2016, the Company issued an aggregate of 134,058 shares of restricted stock at a value of approximately $0.9 million to an executive officer, all of which were forfeited because certain company financial performance criteria and market conditions were not met. In October 2016, the Company issued an aggregate of 2,463 shares of restricted stock at a nominal value to a non-employee director, which vested on January 1, 2017. In January and February 2017, the Company issued an aggregate of 873,787 shares of restricted stock at a value of approximately $4.5 million to two executive officers, which vest, subject to certain company financial performance criteria and market conditions, over a three year period. In addition, an aggregate of 94,102 shares of restricted stock at an aggregate value of approximately $0.5 million were issued to its five non-employee directors, which vest in January 2018. In January and February 2017, the Company issued an aggregate of 2,865,000 shares of its common stock at a value of $15.1 million to holders of its 2018 convertible senior notes as partial consideration for the exchange at par of $39.1 million principal amount of such notes. In March 2017, the Company entered into an agreement to issue 3,660,891 shares of its common stock at an aggregate price of $19.3 million to a Hong Kong affiliate of its China joint venture partner. After their shareholder and China regulatory approval, the transaction closed on April 27, 2017. All issuances of common stock, including those issued pursuant to stock option and warrant exercises, restricted stock grants and acquisitions, are issued from the Company’s authorized but not issued and outstanding shares. |
Joint Ventures
Joint Ventures | 3 Months Ended |
Mar. 31, 2017 | |
Joint Ventures | Note 10 — Joint Ventures The Company owns a fifty percent interest in a joint venture (“Pacific Animation Partners”) with the U.S. entertainment subsidiary of a leading Japanese advertising and animation production company. The joint venture was created to develop and produce a boys’ animated television show, which it licensed worldwide for television broadcast as well as consumer products. The Company produced toys based upon the television program under a license from the joint venture which also licensed certain other merchandising rights to third parties. The Company is responsible for fifty percent of the operating expenses of the joint venture. The Company’s investment is being accounted for using the equity method. The joint venture completed and delivered 65 episodes of the show, which began airing in February 2012, and has since ceased production of the television show. For the three months ended March 31, 2017 and 2016, the Company did not recognize income from the joint venture. As of March 31, 2017 and December 31, 2016, the balance of the investment in the Pacific Animation Partners joint venture is nil. In September 2012, the Company entered into a joint venture (“DreamPlay Toys”) with NantWorks LLC (“NantWorks”) in which it owns a fifty percent interest. Pursuant to the operating agreement of DreamPlay Toys, the Company paid to NantWorks cash in the amount of $8.0 million and issued NantWorks a warrant to purchase 1.5 million shares of the Company’s common stock at a value of $7.0 million in exchange for the exclusive right to arrange for the provision of the NantWorks recognition technology platform for toy products. The Company has classified these rights as an intangible asset, which is being amortized over the anticipated revenue stream from the exploitation of these rights. The joint venture entered into a Toy Services Agreement, as amended, with a current expiration date of October 1, 2018, to develop and produce toys utilizing recognition technologies owned by NantWorks. Pursuant to the terms of the amended Toy Services Agreement, NantWorks is entitled to receive a renewal fee of $0.4 million per year and a preferred return based upon net sales of DreamPlay Toys product sales and third-party license fees. The Company retains the financial risk of the joint venture and is responsible for the day-to-day operations, including development, sales and distribution, for which it is entitled to receive any remaining profit or is responsible for any losses. The results of operations of the joint venture are consolidated with the Company’s results. Sales of DreamPlay Toys products commenced in the third quarter of 2013. The owner of NantWorks beneficially owns more than 10% of the Company’s outstanding common stock, which includes 1.5 million shares underlying out-of-the-money stock warrants. In addition, in 2012, the Company invested $7.0 million in cash in exchange for a five percent economic interest in a related entity, DreamPlay LLC, which will exploit the recognition technologies in non-toy consumer product categories. NantWorks has the right to repurchase the Company’s interest for $7.0 million. The Company has classified this investment as a long term asset on its balance sheet. The Company’s investment is being accounted for using the cost method. As of March 31, 2017, the Company determined the value of this investment will be realized and that no impairment has occurred. In November 2014, the Company entered into a joint venture with Meisheng Cultural & Creative Corp., Ltd., for the purpose of providing certain JAKKS licensed and non-licensed toys and consumer products to agreed-upon territories of the People’s Republic of China. The joint venture includes a subsidiary in the Shanghai Free Trade Zone that sells, distributes and markets these products, which include dolls, plush, role play products, action figures, costumes, seasonal items, technology and app-enhanced toys, based on top entertainment licenses and JAKKS’ own proprietary brands. The Company owns fifty-one percent of the joint venture and consolidates the joint venture since control rests with the Company. The non-controlling interest’s share of the income from the joint venture for the three months ended March 31, 2017 and 2016 was income of $31,000 and $32,000, respectively. In October 2016, the Company entered into a joint venture with Hong Kong Meisheng Cultural Company Limited, a Hong Kong-based subsidiary of Meisheng (“HK Meisheng”), for the purpose of creating and developing original, multiplatform content for children including new short-form series and original shows. JAKKS and HK Meisheng each own fifty percent of the joint venture and will jointly own the content. JAKKS will retain merchandising rights for kids’ consumer products in all markets except China, which Meisheng will oversee through the Company’s existing distribution joint venture. Minimal expenses were incurred during the three months ended March 31, 2017 and the non-controlling interest’s share of the losses from the joint venture for the three months ended March 31, 2017 was immaterial. As of April 27, 2017, Hong Kong Meisheng Cultural Company Limited beneficially owns more than 10% of the Company’s outstanding common stock (see Note 16). |
Goodwill
Goodwill | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill | Note 11 — Goodwill The changes to the carrying amount of goodwill as of March 31, 2017 are summarized as follows (in thousands): Total Balance, December 31, 2016 $ 43,208 Adjustments to goodwill for foreign currency translation 60 Balance, March 31, 2017 $ 43,268 The Company applies a fair value-based impairment test to the carrying value of goodwill and indefinite-lived intangible assets on an annual basis and, if certain events or circumstances indicate that an impairment loss may have been incurred, on an interim basis. The analysis of potential impairment of goodwill requires a two-step process. The first step is the estimation of fair value. If the first step indicates that a potential impairment exists, the second step is performed to measure the amount of impairment, if any. Goodwill impairment exists when the estimated fair value of goodwill is less than its carrying value. No goodwill impairment was determined to have occurred during the three months ended March 31, 2017 and 2016. |
Intangible Assets Other Than Go
Intangible Assets Other Than Goodwill | 3 Months Ended |
Mar. 31, 2017 | |
Intangible Assets Other Than Goodwill | Note 12 — Intangible Assets Other Than Goodwill Intangible assets other than goodwill consist primarily of licenses, product lines, customer relationships and trademarks. Amortized intangible assets are included in intangibles in the accompanying balance sheets. Trademarks are disclosed separately in the accompanying balance sheets. Intangible assets as of March 31, 2017 and December 31, 2016 include the following (in thousands, except for weighted useful lives): March 31, 2017 December 31, 2016 Weighted Useful Lives Gross Carrying Amount Accumulated Amortization Net Amount Gross Carrying Amount Accumulated Amortization Net Amount (Years) Amortized Intangible Assets: Licenses 5.81 $ 20,130 $ (17,535 ) $ 2,595 $ 20,130 $ (17,248 ) $ 2,882 Product lines 7.50 50,093 (22,236 ) 27,857 50,093 (20,634 ) 29,459 Customer relationships 4.90 3,152 (2,841 ) 311 3,152 (2,755 ) 397 Trade names 5.00 3,000 (2,800 ) 200 3,000 (2,650 ) 350 Non-compete agreements 5.00 200 (187 ) 13 200 (177 ) 23 Total amortized intangible assets $ 76,575 $ (45,599 ) $ 30,976 $ 76,575 $ (43,464 ) $ 33,111 Unamortized Intangible Assets: Trademarks $ 2,608 $ — $ 2,608 $ 2,608 $ — $ 2,608 |
Comprehensive Loss
Comprehensive Loss | 3 Months Ended |
Mar. 31, 2017 | |
Comprehensive Loss | Note 13 — Comprehensive Loss The table below presents the components of the Company’s comprehensive loss for the three months ended March 31, 2017 and 2016 (in thousands): Three Months Ended 2017 2016 Net Loss $ (18,285 ) $ (17,383 ) Other comprehensive income (loss): Foreign currency translation adjustment 531 (724 ) Comprehensive loss (17,754 ) (18,107 ) Less: Comprehensive income attributable to non-controlling interests 31 32 Comprehensive loss attributable to JAKKS Pacific, Inc. $ (17,785 ) $ (18,139 ) |
Litigation
Litigation | 3 Months Ended |
Mar. 31, 2017 | |
Litigation | Note 14 — Litigation The Company is a party to, and certain of its property is the subject of, various pending claims and legal proceedings that routinely arise in the ordinary course of its business, but the Company does not believe that any of these claims or proceedings will have a material effect on its business, financial condition or results of operations. |
Share-Based Payments
Share-Based Payments | 3 Months Ended |
Mar. 31, 2017 | |
Share-Based Payments | Note 15 — Share-Based Payments The Company’s 2002 Stock Award and Incentive Plan The following table summarizes the total share-based compensation expense and related tax benefits recognized for the three months ended March 31, 2017 and 2016 (in thousands): Three Months Ended 2017 2016 Restricted stock compensation expense $ 748 $ 623 Tax benefit related to restricted stock compensation — — No stock options were outstanding as of December 31, 2016 and there has been no stock option activity pursuant to the Plan . Restricted stock award activity pursuant to the Plan for the three months ended March 31, 2017 is summarized as follows: Restricted Stock Awards Number of Shares Weight Average Grant Fair Value Outstanding, December 31, 2016 196,453 $ 7.01 Awarded 967,889 5.15 Released (67,544 ) 8.34 Forfeited — — Outstanding, March 31, 2017 1,096,798 5.29 As of March 31, 2017, there was $4.2 million of total unrecognized compensation cost related to non-vested restricted stock awards, which is expected to be recognized over a weighted-average period of 5.05 years. The Company granted Restricted Stock Units (“RSUs”) to certain non-executive personnel during the first quarter of 2017. RSUs are not treated in the same manner as Restricted Stock Awards (“RSAs”) as the Company does not issue the shares until the vest timing. Vesting of RSUs is predicated upon meeting certain criteria related to service, performance and/or market based conditions. Restricted stock unit activity pursuant to the Plan for the three months ended March 31, 2017 is summarized as follows: Restricted Stock Units Number of Shares Weight Average Grant Fair Value Outstanding, December 31, 2016 — $ — Awarded (January 1, 2017) 1,001,206 5.15 Released — — Forfeited — — Outstanding, March 31, 2017 1,001,206 5.15 As of March 31, 2017, there was $4.2 million of total unrecognized compensation cost related to non-vested restricted stock units, which is expected to be recognized over a weighted-average period of 6.59 years. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2017 | |
Subsequent Events | Note 16 — Subsequent Events In March 2017, the Company entered into an agreement to issue 3,660,891 shares of its common stock to Hong Kong Meisheng Cultural Company Limited, a Hong Kong affiliate of the Company’s China joint venture partner (collectively, “Meisheng”), at an aggregate price of $19.3 million. The use of proceeds will be for general corporate purposes. Pursuant to the stock purchase agreement, Meisheng was granted certain piggyback and demand registration rights. After Meisheng’s shareholder and China regulatory approvals, the transaction closed on April 27, 2017. |
Business Segments, Geographic22
Business Segments, Geographic Data, and Sales by Major Customers (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Information by Segment and Reconciliation to Reported Amounts | Information by segment and a reconciliation to reported amounts for the three months ended March 31, 2017 and 2016 and as of March 31, 2017 and December 31, 2016 are as follows (in thousands): Three Months Ended 2017 2016 Net Sales U.S. and Canada $ 70,912 $ 72,202 International 19,942 20,168 Halloween 3,651 3,439 $ 94,505 $ 95,809 Three Months Ended 2017 2016 Loss from Operations U.S. and Canada $ (7,876 ) $ (8,553 ) International (1,772 ) (2,161 ) Halloween (6,076 ) (3,102 ) $ (15,724 ) $ (13,816 ) Three Months Ended 2017 2016 Depreciation and Amortization Expense U.S. and Canada $ 3,374 $ 3,070 International 898 852 Halloween 108 114 $ 4,380 $ 4,036 March 31, December 31, Assets U.S. and Canada $ 246,206 $ 306,895 International 99,464 119,560 Halloween 30,671 37,848 $ 376,341 $ 464,303 |
Information by Geographic Area | The following tables present information about the Company by geographic area as of March 31, 2017 and December 31, 2016 and for the three months ended March 31, 2017 and 2016 (in thousands): March 31, December 31, Long-lived Assets China $ 15,764 $ 15,710 United States 6,347 6,587 Hong Kong 506 544 $ 22,617 $ 22,841 Three Months Ended 2017 2016 Net Sales by Customer Area United States $ 69,560 $ 70,968 Europe 12,560 12,755 Canada 4,444 4,650 Hong Kong 219 339 Other 7,722 7,097 $ 94,505 $ 95,809 |
Net Sales to Major Customers | Net sales to major customers for the three months ended March 31, 2017 and 2016 were as follows (in thousands, except for percentages): Three Months Ended March 31, 2017 2016 Amount Percentage of Net Sales Amount Percentage of Net Sales Wal-Mart $ 23,252 24.6 % $ 27,747 28.9 % Target 12,659 13.4 8,334 8.7 Toys 'R' Us 7,711 8.2 8,122 8.5 $ 43,622 46.2 % $ 44,203 46.1 % |
Inventory (Tables)
Inventory (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Net of Inventory Obsolescence Reserve | Inventory, which includes the ex-factory cost of goods, in-bound freight, duty and capitalized warehouse costs, is valued at the lower of cost (first-in, first-out) or net realizable value, net of inventory obsolescence reserve, and consists of the following (in thousands): March 31, December 31, Raw materials $ 2,155 $ 5,204 Finished goods 65,311 70,231 $ 67,466 $ 75,435 |
Convertible Senior Notes (Table
Convertible Senior Notes (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Convertible Senior Notes | Convertible senior notes consist of the following (in thousands): March 31, 2017 December 31, 2016 Principal Amount Debt Issuance Costs Net Principal Amount Debt Issuance Costs Net 4.25% convertible senior notes (due 2018) $ 54,727 $ 610 $ 54,117 $ 93,865 $ 1,098 $ 92,767 4.875% convertible senior notes (due 2020) 113,000 2,563 110,437 113,000 2,760 110,240 Total $ 167,727 $ 3,173 $ 164,554 $ 206,865 $ 3,858 $ 203,007 |
Loss Per Share (Tables)
Loss Per Share (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Reconciliation of Weighted Average Shares Used in Computation of loss Per Share | The following table is a reconciliation of the weighted average shares used in the computation of loss per share for the periods presented (in thousands, except per share data): Three Months Ended March 31, 2017 2016 Loss Weighted Average Shares Per-Share Loss Weighted Average Shares Per-Share Loss per share — basic and diluted Net loss available to common stockholders $ (18,316 ) 18,104 $ (1.01 ) $ (17,415 ) 17,218 $ (1.01 ) |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Changes to Carrying Amount of Goodwill | The changes to the carrying amount of goodwill as of March 31, 2017 are summarized as follows (in thousands): Total Balance, December 31, 2016 $ 43,208 Adjustments to goodwill for foreign currency translation 60 Balance, March 31, 2017 $ 43,268 |
Intangible Assets Other Than 27
Intangible Assets Other Than Goodwill (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Intangible Assets | Intangible assets as of March 31, 2017 and December 31, 2016 include the following (in thousands, except for weighted useful lives): March 31, 2017 December 31, 2016 Weighted Useful Lives Gross Carrying Amount Accumulated Amortization Net Amount Gross Carrying Amount Accumulated Amortization Net Amount (Years) Amortized Intangible Assets: Licenses 5.81 $ 20,130 $ (17,535 ) $ 2,595 $ 20,130 $ (17,248 ) $ 2,882 Product lines 7.50 50,093 (22,236 ) 27,857 50,093 (20,634 ) 29,459 Customer relationships 4.90 3,152 (2,841 ) 311 3,152 (2,755 ) 397 Trade names 5.00 3,000 (2,800 ) 200 3,000 (2,650 ) 350 Non-compete agreements 5.00 200 (187 ) 13 200 (177 ) 23 Total amortized intangible assets $ 76,575 $ (45,599 ) $ 30,976 $ 76,575 $ (43,464 ) $ 33,111 Unamortized Intangible Assets: Trademarks $ 2,608 $ — $ 2,608 $ 2,608 $ — $ 2,608 |
Comprehensive Loss (Tables)
Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Components of Comprehensive Income | The table below presents the components of the Company’s comprehensive loss for the three months ended March 31, 2017 and 2016 (in thousands): Three Months Ended 2017 2016 Net Loss $ (18,285 ) $ (17,383 ) Other comprehensive income (loss): Foreign currency translation adjustment 531 (724 ) Comprehensive loss (17,754 ) (18,107 ) Less: Comprehensive income attributable to non-controlling interests 31 32 Comprehensive loss attributable to JAKKS Pacific, Inc. $ (17,785 ) $ (18,139 ) |
Share-Based Payments (Tables)
Share-Based Payments (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Total Share-Based Compensation Expense and Related Tax Benefits Recognized | The following table summarizes the total share-based compensation expense and related tax benefits recognized for the three months ended March 31, 2017 and 2016 (in thousands): Three Months Ended 2017 2016 Restricted stock compensation expense $ 748 $ 623 Tax benefit related to restricted stock compensation — — |
Restricted Stock Award Activity | Restricted stock award activity pursuant to the Plan for the three months ended March 31, 2017 is summarized as follows: Restricted Stock Awards Number of Shares Weight Average Grant Fair Value Outstanding, December 31, 2016 196,453 $ 7.01 Awarded 967,889 5.15 Released (67,544 ) 8.34 Forfeited — — Outstanding, March 31, 2017 1,096,798 5.29 |
Restricted Stock Unit Activity | Restricted stock unit activity pursuant to the Plan for the three months ended March 31, 2017 is summarized as follows: Restricted Stock Units Number of Shares Weight Average Grant Fair Value Outstanding, December 31, 2016 — $ — Awarded (January 1, 2017) 1,001,206 5.15 Released — — Forfeited — — Outstanding, March 31, 2017 1,001,206 5.15 |
Business Segments, Geographic30
Business Segments, Geographic Data, and Sales by Major Customers - Additional Information (Detail) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017SegmentCustomer | Dec. 31, 2016SegmentCustomer | |
Segment Reporting Information [Line Items] | ||
Number of reporting segments | Segment | 3 | 3 |
Number of major customers | Customer | 3 | 3 |
Net Accounts Receivable | Three Largest Customers | Customer Concentration Risk | ||
Segment Reporting Information [Line Items] | ||
Percentage of net accounts receivable accounted for by three largest customers | 46.30% | 35.80% |
Information by Segment and Reco
Information by Segment and Reconciliation to Reported Amounts (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||
Net Sales | $ 94,505 | $ 95,809 | |
Loss from Operations | (15,724) | (13,816) | |
Depreciation and Amortization Expense | 4,380 | 4,036 | |
Assets | 376,341 | $ 464,303 | |
U.S. and Canada | |||
Segment Reporting Information [Line Items] | |||
Net Sales | 70,912 | 72,202 | |
Loss from Operations | (7,876) | (8,553) | |
Depreciation and Amortization Expense | 3,374 | 3,070 | |
Assets | 246,206 | 306,895 | |
International | |||
Segment Reporting Information [Line Items] | |||
Net Sales | 19,942 | 20,168 | |
Loss from Operations | (1,772) | (2,161) | |
Depreciation and Amortization Expense | 898 | 852 | |
Assets | 99,464 | 119,560 | |
Halloween | |||
Segment Reporting Information [Line Items] | |||
Net Sales | 3,651 | 3,439 | |
Loss from Operations | (6,076) | (3,102) | |
Depreciation and Amortization Expense | 108 | $ 114 | |
Assets | $ 30,671 | $ 37,848 |
Information by Geographic Area
Information by Geographic Area (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived Assets | $ 22,617 | $ 22,841 | |
Net Sales | 94,505 | $ 95,809 | |
China | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived Assets | 15,764 | 15,710 | |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived Assets | 6,347 | 6,587 | |
Net Sales | 69,560 | 70,968 | |
Hong Kong | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived Assets | 506 | $ 544 | |
Net Sales | 219 | 339 | |
Europe | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net Sales | 12,560 | 12,755 | |
Canada | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net Sales | 4,444 | 4,650 | |
Other | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net Sales | $ 7,722 | $ 7,097 |
Net Sales to Major Customers (D
Net Sales to Major Customers (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Revenue, Major Customer [Line Items] | ||
Net Sales | $ 94,505 | $ 95,809 |
Wal-Mart | ||
Revenue, Major Customer [Line Items] | ||
Net Sales | 23,252 | 27,747 |
Target | ||
Revenue, Major Customer [Line Items] | ||
Net Sales | 12,659 | 8,334 |
Toys 'R' Us | ||
Revenue, Major Customer [Line Items] | ||
Net Sales | 7,711 | 8,122 |
Major Customer | ||
Revenue, Major Customer [Line Items] | ||
Net Sales | $ 43,622 | $ 44,203 |
Net Sales | Customer Concentration Risk | ||
Revenue, Major Customer [Line Items] | ||
Percentage of Net Sales from major customer | 46.20% | 46.10% |
Net Sales | Wal-Mart | Customer Concentration Risk | ||
Revenue, Major Customer [Line Items] | ||
Percentage of Net Sales from major customer | 24.60% | 28.90% |
Net Sales | Target | Customer Concentration Risk | ||
Revenue, Major Customer [Line Items] | ||
Percentage of Net Sales from major customer | 13.40% | 8.70% |
Net Sales | Toys 'R' Us | Customer Concentration Risk | ||
Revenue, Major Customer [Line Items] | ||
Percentage of Net Sales from major customer | 8.20% | 8.50% |
Inventory Valued at Lower of Co
Inventory Valued at Lower of Cost (First-in, First-out) or Net Realizable Value, Net of Inventory Obsolescence Reserve (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Inventory [Line Items] | ||
Raw materials | $ 2,155 | $ 5,204 |
Finished goods | 65,311 | 70,231 |
Inventory, net | $ 67,466 | $ 75,435 |
Revenue Recognition and Reser35
Revenue Recognition and Reserve for Sales Returns and Allowances - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||
Reserve for sales returns and allowances | $ 10,551 | $ 16,424 |
Minimum | ||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||
Discount on invoiced amount of products | 1.00% | |
Maximum | ||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||
Discount on invoiced amount of products | 10.00% |
Credit Facility - Additional In
Credit Facility - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended |
Mar. 31, 2014 | Mar. 31, 2017 | Dec. 31, 2016 | |
Line of Credit Facility [Line Items] | |||
Restricted funds on deposit | $ 10,576,000 | ||
GECC | |||
Line of Credit Facility [Line Items] | |||
Line of credit facility maximum borrowing capacity | $ 75,000,000 | $ 12,100,000 | |
Line of credit facility, maturity date | Mar. 27, 2019 | ||
Amount of credit facility outstanding | 10,000,000 | ||
Stand by letters of credit outstanding amount | $ 28,200,000 | ||
Outstanding borrowings and outstanding stand-by letters of credit exceeded the borrowing base availability | $ 10,600,000 | ||
Restricted funds on deposit | $ 10,600,000 | ||
Rate of credit facility | 3.06% | 3.01% | |
Stand-by letter of credit fee percentage | 2.25% | ||
GECC | London Interbank Offered Rate (LIBOR) | |||
Line of Credit Facility [Line Items] | |||
Applicable margin spread over base rate | 2.25% | ||
GECC | Base Rate | |||
Line of Credit Facility [Line Items] | |||
Applicable margin spread over base rate | 1.25% | ||
GECC | Minimum | |||
Line of Credit Facility [Line Items] | |||
Percentage of unused credit line fee | 0.25% | ||
GECC | Maximum | |||
Line of Credit Facility [Line Items] | |||
Percentage of unused credit line fee | 0.50% | ||
WF Loan Agreement | Minimum | |||
Line of Credit Facility [Line Items] | |||
Fixed charge coverage ratio | 120.00% |
Convertible Senior Notes - Addi
Convertible Senior Notes - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 2 Months Ended | 3 Months Ended | 12 Months Ended | |||
Jan. 31, 2016 | Jun. 30, 2014 | Jul. 31, 2013 | Feb. 28, 2017 | Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | |||||||
Long term debt, face amount | $ 167,727 | $ 206,865 | |||||
Payment for repurchase of convertible notes | 24,052 | $ 1,940 | |||||
Gain recognized on retirement of debt | 60 | ||||||
Amortization of debt issuance costs recognized as interest expense | 300 | $ 400 | |||||
4.875% Convertible Senior Notes (due 2020) | |||||||
Debt Instrument [Line Items] | |||||||
Long term debt, face amount | $ 115,000 | $ 113,000 | $ 113,000 | ||||
Debt instrument, interest rate | 4.875% | 4.875% | 4.875% | ||||
Debt instrument, maturity date | Jun. 1, 2020 | ||||||
Frequency of interest payment | Semi-annually | ||||||
Conversion rate in share per $1000 principal amount of notes | 103.7613 | ||||||
Debt instrument, conversion rate | $ 9.64 | ||||||
Debt instrument repurchase amount | $ 2,000 | ||||||
Write-off of debt issuance costs | 100 | ||||||
Gain recognized on retirement of debt | $ 100 | ||||||
Convertible senior note payable, fair value | $ 112,500 | $ 89,300 | |||||
Debt instrument, maturity year | 2,020 | 2,020 | |||||
4.25% Convertible Senior Notes (due 2018) | |||||||
Debt Instrument [Line Items] | |||||||
Long term debt, face amount | $ 100,000 | $ 54,727 | $ 93,865 | ||||
Debt instrument, interest rate | 4.25% | 4.25% | 4.25% | ||||
Debt instrument, maturity date | Aug. 1, 2018 | ||||||
Frequency of interest payment | Semi-annually | ||||||
Conversion rate in share per $1000 principal amount of notes | 114.3674 | ||||||
Debt instrument, conversion rate | $ 8.74 | ||||||
Debt instrument repurchase amount | $ 39,100 | $ 6,100 | |||||
Write-off of debt issuance costs | 100 | ||||||
Payment for repurchase of convertible notes | $ 24,100 | ||||||
Convertible senior note payable, fair value | $ 55,500 | $ 83,700 | |||||
Debt instrument, maturity year | 2,018 | 2,018 | |||||
4.25% Convertible Senior Notes (due 2018) | Common Stock | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument repurchase amount | $ 39,100 | ||||||
Debt instrument shares common stock issued upon conversion | 2,865,000 | 2,865,000 |
Convertible Senior Notes (Detai
Convertible Senior Notes (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2014 | Jul. 31, 2013 |
Debt Instrument [Line Items] | ||||
Convertible senior notes, principal amount | $ 167,727 | $ 206,865 | ||
Convertible senior notes, debt issuance costs | 3,173 | 3,858 | ||
Convertible senior notes, net of debt issuance costs | 164,554 | 203,007 | ||
4.25% Convertible Senior Notes (due 2018) | ||||
Debt Instrument [Line Items] | ||||
Convertible senior notes, principal amount | 54,727 | 93,865 | $ 100,000 | |
Convertible senior notes, debt issuance costs | 610 | 1,098 | ||
Convertible senior notes, net of debt issuance costs | 54,117 | 92,767 | ||
4.875% Convertible Senior Notes (due 2020) | ||||
Debt Instrument [Line Items] | ||||
Convertible senior notes, principal amount | 113,000 | 113,000 | $ 115,000 | |
Convertible senior notes, debt issuance costs | 2,563 | 2,760 | ||
Convertible senior notes, net of debt issuance costs | $ 110,437 | $ 110,240 |
Convertible Senior Notes (Paren
Convertible Senior Notes (Parenthetical) (Detail) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2014 | Jul. 31, 2013 | |
4.25% Convertible Senior Notes (due 2018) | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, maturity year | 2,018 | 2,018 | ||
Debt instrument, interest rate | 4.25% | 4.25% | 4.25% | |
4.875% Convertible Senior Notes (due 2020) | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, maturity year | 2,020 | 2,020 | ||
Debt instrument, interest rate | 4.875% | 4.875% | 4.875% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Income Taxes [Line Items] | ||
Provision for (benefit from) income taxes | $ (344,000) | $ 432,000 |
Effective income tax rate | 1.80% | 2.50% |
Discrete tax benefit (expenses) | $ (51,000) | |
Unrecognized tax benefits related to share-based payment awards | $ 0 |
Reconciliation of Weighted Aver
Reconciliation of Weighted Average Shares Used in Computation of Loss Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Earnings Per Share Disclosure [Line Items] | ||
Net loss available to common stockholders | $ (18,316) | $ (17,415) |
Shares used in loss per share | 18,104 | 17,218 |
Loss per share | $ (1.01) | $ (1.01) |
Loss Per Share - Additional Inf
Loss Per Share - Additional Information (Detail) - shares | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Common Stock Equivalents | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potentially dilutive securities excluded from computation of diluted earnings per common share | 22,969,239 | 25,081,819 |
Common Stock and Preferred St43
Common Stock and Preferred Stock - Additional Information (Detail) | Apr. 27, 2017USD ($)shares | Oct. 31, 2016shares | Mar. 31, 2016USD ($)shares | Jan. 31, 2016USD ($)ExecutiveOfficersDirectorshares | Jun. 30, 2014USD ($)shares | Jul. 31, 2013USD ($)shares | Feb. 28, 2017USD ($)shares | Jan. 31, 2017USD ($)ExecutiveOfficersDirectorshares | Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2016USD ($)shares | Dec. 31, 2015USD ($)shares | Jun. 30, 2015USD ($) |
Class of Stock [Line Items] | |||||||||||||
Repurchase of common stock, shares | shares | 3,112,840 | ||||||||||||
Repurchase of common stock, value | $ 24,000,000 | ||||||||||||
Repurchase of convertible senior notes | $ 24,052,000 | $ 1,940,000 | |||||||||||
4.875% Convertible Senior Notes (due 2020) | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Amount of convertible notes repurchased and retired | $ 2,000,000 | ||||||||||||
4.25% Convertible Senior Notes (due 2018) | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Amount of convertible notes repurchased and retired | $ 39,100,000 | $ 6,100,000 | |||||||||||
Repurchase of convertible senior notes | $ 24,100,000 | ||||||||||||
Common Stock | 4.25% Convertible Senior Notes (due 2018) | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Amount of convertible notes repurchased and retired | $ 39,100,000 | ||||||||||||
Common stock shares issued upon conversion of debt instrument | shares | 2,865,000 | 2,865,000 | |||||||||||
Common stock shares issued upon conversion of debt instrument, value | $ 15,100,000 | ||||||||||||
Securities | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Retirement of common stock (share) | shares | 1,766,284 | 1,547,361 | |||||||||||
Retirement of common stock | $ 13,500,000 | $ 13,200,000 | |||||||||||
Securities | 4.875% Convertible Senior Notes (due 2020) | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Amount of convertible notes repurchased and retired | 2,000,000 | ||||||||||||
Repurchase of convertible senior notes | 1,900,000 | ||||||||||||
Securities | 4.25% Convertible Senior Notes (due 2018) | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Amount of convertible notes repurchased and retired | 6,100,000 | ||||||||||||
Repurchase of convertible senior notes | $ 6,100,000 | ||||||||||||
Subsequent Event | Common Stock | Hong Kong Meisheng Cultural Co | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Common stock issued, shares | shares | 3,660,891 | ||||||||||||
Common stock issued, value | $ 19,300,000 | ||||||||||||
Maximum | Restricted Stock | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Vesting period | 5 years | ||||||||||||
Maximum | Securities | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Stock repurchase, authorized amount | $ 35,000,000 | ||||||||||||
Executive officer | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Restricted stock issued, shares | shares | 134,058 | 449,120 | 873,787 | ||||||||||
Restricted stock issued, value | $ 900,000 | $ 3,600,000 | $ 4,500,000 | ||||||||||
Number of executive officers | ExecutiveOfficers | 2 | 2 | |||||||||||
Executive officer | Restricted Stock | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Vesting period | 3 years | ||||||||||||
Non-employee directors | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Restricted stock issued, shares | shares | 2,463 | 62,710 | 94,102 | ||||||||||
Restricted stock issued, value | $ 500,000 | $ 500,000 | |||||||||||
Number of non-employee directors | Director | 5 | 5 | |||||||||||
Non-employee directors | Restricted Stock | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Shares of restricted stock, vesting date | 2017-01 | 2017-01 | 2018-01 |
Joint Ventures - Additional Inf
Joint Ventures - Additional Information (Detail) shares in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Sep. 30, 2012USD ($)shares | Mar. 31, 2017USD ($)Projectshares | Mar. 31, 2016USD ($) | Dec. 31, 2016USD ($) | Apr. 27, 2017 | Oct. 31, 2016 | Dec. 31, 2012USD ($) | |
Schedule of Equity Method Investments [Line Items] | |||||||
Equity in net income/(loss) of joint venture | $ 0 | $ 0 | |||||
Investment in DreamPlay LLC | 7,000,000 | $ 7,000,000 | |||||
Non-controlling interest's share of losses | $ 31,000 | 32,000 | |||||
Pacific Animation Partners Joint Venture | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Percentage of ownership interest in joint venture | 50.00% | ||||||
Investment in joint venture, percentage share of operating expenses | 50.00% | ||||||
Number of episodes for which production completed | Project | 65 | ||||||
Episode show airing beginning date | 2012-02 | ||||||
DreamPlay Toys | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Percentage of ownership interest in joint venture | 50.00% | ||||||
Cash paid to Nant Works for joint venture | $ 8,000,000 | $ 400,000 | |||||
Issue of warrants (in shares) | shares | 1.5 | ||||||
Issue of warrants | $ 7,000,000 | ||||||
Joint venture toy service agreement expiration date | Oct. 1, 2018 | ||||||
Investment in DreamPlay LLC | $ 7,000,000 | ||||||
Percentage of ownership interest in joint venture | 5.00% | ||||||
Impairment charges | $ 0 | ||||||
NantWorks | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Issue of warrants (in shares) | shares | 1.5 | ||||||
NantWorks | Minimum | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Ownership percentage | 10.00% | ||||||
China Joint Venture | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Percentage of ownership interest in joint venture | 51.00% | ||||||
Non-controlling interest's share of losses | $ 31,000 | $ 32,000 | |||||
Hong Kong Meisheng Cultural Co | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Percentage of ownership interest in joint venture | 50.00% | ||||||
Hong Kong Meisheng Cultural Co | Minimum | Subsequent Event | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Ownership percentage | 10.00% |
Changes to Carrying Amount of G
Changes to Carrying Amount of Goodwill (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Goodwill [Line Items] | |
Balance at beginning of the period | $ 43,208 |
Adjustments to goodwill for foreign currency translation | 60 |
Goodwill Ending Balance | $ 43,268 |
Goodwill - Additional Informati
Goodwill - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Goodwill [Line Items] | ||
Goodwill impairment | $ 0 | $ 0 |
Intangible Assets (Detail)
Intangible Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
Acquired Intangible Assets by Major Class [Line Items] | ||
Trademarks, net | $ 2,608 | $ 2,608 |
Amortized Intangible Assets, Gross Carrying Amount | 76,575 | 76,575 |
Amortized Intangible Assets, Accumulated Amortization | (45,599) | (43,464) |
Amortized Intangible Assets, Net Amount | $ 30,976 | 33,111 |
Licenses | ||
Acquired Intangible Assets by Major Class [Line Items] | ||
Weighted Useful Lives (Years) | 5 years 9 months 22 days | |
Amortized Intangible Assets, Gross Carrying Amount | $ 20,130 | 20,130 |
Amortized Intangible Assets, Accumulated Amortization | (17,535) | (17,248) |
Amortized Intangible Assets, Net Amount | $ 2,595 | 2,882 |
Product Lines | ||
Acquired Intangible Assets by Major Class [Line Items] | ||
Weighted Useful Lives (Years) | 7 years 6 months | |
Amortized Intangible Assets, Gross Carrying Amount | $ 50,093 | 50,093 |
Amortized Intangible Assets, Accumulated Amortization | (22,236) | (20,634) |
Amortized Intangible Assets, Net Amount | $ 27,857 | 29,459 |
Customer relationships | ||
Acquired Intangible Assets by Major Class [Line Items] | ||
Weighted Useful Lives (Years) | 4 years 10 months 24 days | |
Amortized Intangible Assets, Gross Carrying Amount | $ 3,152 | 3,152 |
Amortized Intangible Assets, Accumulated Amortization | (2,841) | (2,755) |
Amortized Intangible Assets, Net Amount | $ 311 | 397 |
Trade Name | ||
Acquired Intangible Assets by Major Class [Line Items] | ||
Weighted Useful Lives (Years) | 5 years | |
Amortized Intangible Assets, Gross Carrying Amount | $ 3,000 | 3,000 |
Amortized Intangible Assets, Accumulated Amortization | (2,800) | (2,650) |
Amortized Intangible Assets, Net Amount | $ 200 | 350 |
Non-compete agreements | ||
Acquired Intangible Assets by Major Class [Line Items] | ||
Weighted Useful Lives (Years) | 5 years | |
Amortized Intangible Assets, Gross Carrying Amount | $ 200 | 200 |
Amortized Intangible Assets, Accumulated Amortization | (187) | (177) |
Amortized Intangible Assets, Net Amount | $ 13 | $ 23 |
Components of Comprehensive Los
Components of Comprehensive Loss (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Condensed Statement of Income Captions [Line Items] | ||
Net loss | $ (18,285) | $ (17,383) |
Other comprehensive income (loss): | ||
Foreign currency translation adjustment | 531 | (724) |
Comprehensive loss | (17,754) | (18,107) |
Less: Comprehensive income attributable to non-controlling interests | 31 | 32 |
Comprehensive loss attributable to JAKKS Pacific, Inc. | $ (17,785) | $ (18,139) |
Share-Based Payments - Addition
Share-Based Payments - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options outstanding | 0 | 0 |
Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation, non-vested restricted stock awards | $ 4.2 | |
Unrecognized compensation, non-vested restricted stock awards expected recognized period | 5 years 18 days | |
Restricted Stock | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 1 year | |
Restricted Stock | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 5 years | |
Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation, non-vested restricted stock awards | $ 4.2 | |
Unrecognized compensation, non-vested restricted stock awards expected recognized period | 6 years 7 months 2 days |
Total Share-Based Compensation
Total Share-Based Compensation Expense and Related Tax Benefits Recognized (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock compensation expense | $ 748 | $ 623 |
Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Tax benefit related to restricted stock compensation | $ 0 | $ 0 |
Summary of Restricted Stock Awa
Summary of Restricted Stock Award Activity (Detail) - Restricted Stock | 3 Months Ended |
Mar. 31, 2017$ / sharesshares | |
Number of Shares | |
Outstanding at beginning of period | shares | 196,453 |
Awarded | shares | 967,889 |
Released | shares | (67,544) |
Forfeited | shares | 0 |
Outstanding at end of period | shares | 1,096,798 |
Weighted Average Grant Fair Value | |
Outstanding at beginning of period | $ / shares | $ 7.01 |
Awarded | $ / shares | 5.15 |
Released | $ / shares | 8.34 |
Forfeited | $ / shares | 0 |
Outstanding at end of period | $ / shares | $ 5.29 |
Summary of Restricted Stock Uni
Summary of Restricted Stock Unit Activity (Detail) - Restricted Stock Units (RSUs) | 3 Months Ended |
Mar. 31, 2017$ / sharesshares | |
Number of Shares | |
Awarded | shares | 1,001,206 |
Released | shares | 0 |
Forfeited | shares | 0 |
Outstanding at end of period | shares | 1,001,206 |
Weighted Average Fair Value | |
Awarded | $ / shares | $ 5.15 |
Released | $ / shares | 0 |
Forfeited | $ / shares | 0 |
Outstanding at end of period | $ / shares | $ 5.15 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - Subsequent Event - Common Stock - Hong Kong Meisheng Cultural Co $ in Millions | Apr. 27, 2017USD ($)shares |
Subsequent Event [Line Items] | |
Common stock issued, shares | shares | 3,660,891 |
Common stock issued, value | $ | $ 19.3 |