Sales through September 30, 2022 exceeded full-year 2021 sales levels

JAKKS Pacific, Inc. (NASDAQ:JAKK) today reported financial results for the third quarter ended September 30, 2022.

Third Quarter 2022 Overview

Net sales were $323.0 million, a year-over-year increase of 36%
- Toys/Consumer Products were $269.6 million, a year-over-year increase of 56%
- Costumes were $53.4 million, a year-over-year decrease of 17%
  - Costumes year-to-date are $134.7 million, a 36% increase over 2021
Year-to-date net sales were $664.3 million, which exceeded full year 2021 net sales of $621.1 million
Gross margin of 28.5%, down 310 basis points vs. Q3 2021
Operating income of $53.7 million (16.7% of net sales) in Q3 2022 vs. $36.7 million (15.5% of net sales) in Q3 2021
- Year-to-date operating income of $76.7 million (11.6% of net sales) vs. $35.8 million (8.3% of net sales) for comparable period in 2021
Net income attributable to common stockholders of $30.3 million or $2.96 per diluted share, compared to net income attributable to common stockholders of $36.0 million or $3.97 per diluted share in Q3 2021
Adjusted net income attributable to common stockholders (a non-GAAP measure) of $39.0 million or $3.80 per diluted share, compared to adjusted net income attributable to common stockholders of $34.2 million or $3.76 per diluted share in Q3 2021
Adjusted EBITDA (a non-GAAP measure) of $59.4 million vs. $41.7 million in Q3 2021

Management Commentary

"We continued to see strong retail sell-thru for our product throughout the third quarter," said Stephen Berman, CEO of JAKKS Pacific. "Our top three toy accounts in the US sustained point of sale results in the high teens in Q3 as we head into the all-important fourth quarter. By leaning into our heritage as an FOB-first company, we've managed to ship more of our product earlier in the year to avoid excessive supply-chain expenses and mitigate out-of-stock risks at retail. As a result, our customers are ready for the holiday season with a great range of product and promotional plans. We are on track to deliver full-year 2022 revenue growth around 20% vs. prior year for the second year in a row, which are exceptional results that the team and I are very proud of.

"In addition to the strength in our toy segment, our costume business is also performing at a very high level. We have already shipped 25% more costumes this year than the amount we shipped in all of 2021. Q3 2022 Disguise costumes sales were down compared to Q3 2021 as Halloween customers ordered product earlier this year. We are on track for our biggest year with Disguise since JAKKS acquired the company in 2008, and we are also excited about that momentum continuing into 2023.

"We have been clear about our desire to reduce our long-term debt and cash interest expense. To that end, based on our strong performance and near-term outlook we decided to make an optional $17.5 million principal pay-down of our term loan this past quarter. This brings our year-to-date principal payments to $29.0 million, or 29% of our balance as of January 1^st of this year, and results in a principal balance of $69.5 million."

Third Quarter 2022 Results

Net sales for the third quarter of 2022 were $323.0 million, up 36% versus $237.0 million last year. The Toys/Consumer Products segment sales were up 56% globally (50% North America; 85% International) and as noted sales of Disguise costumes were down 17% compared to last year (-23% North America; 144% International) as Halloween customers ordered product earlier this year than the traditional seasonality.

Year-to-date Toys/Consumer Products sales were up 58% over the comparable 2021 period. Year-to-date the Costumes segment was up 36% over the comparable 2021 period.

Year-to-date adjusted net income attributable to common stockholders was $57.5 million ($5.68 per diluted share), compared to $22.3 million ($3.15 per diluted share) in the first nine months of 2021. Year-to-date adjusted EBITDA of $88.5 million (13.3% of net sales), was double the $44.2 million (10.2% of net sales) in the comparable 2021 period.

Balance Sheet Highlights

The Company's cash and cash equivalents (including restricted cash) totaled $76.6 million as of September 30, 2022 compared to $26.7 million as of September 30, 2021, and $45.3 million as of December 31, 2021.

Total debt was $67.7 million net of unamortized discounts and issuance costs, compared to $95.8 million as of September 30, 2021, and $95.5 million as of December 31, 2021. Total debt includes the amount outstanding under the Company's term loan, net of unamortized discounts and issuance costs.

Inventory levels are down from prior quarter but remain elevated, totaling $109.2 million, of which $20.5 million was in-transit to our distribution centers, compared to $123.7 million in total inventory as of June 30, 2022 and $89.8 million in total inventory as of September 30, 2021.

Use of Non-GAAP Financial Information

In addition to the preliminary results reported in accordance with U.S. GAAP included in this release, the Company has provided certain non-GAAP financial information including Adjusted EBITDA which is a non-GAAP metric that excludes various items that are detailed in the financial tables and accompanying footnotes reconciling GAAP to non-GAAP results contained in this release. Management believes that the presentation of these non-GAAP financial measures provides useful information to investors because the information may allow investors to better evaluate ongoing business performance and certain components of the Company's results. In addition, the Company believes that the presentation of these financial measures enhances an investor's ability to make period-to-period comparisons of the Company's operating results. This information should be considered in addition to the results presented in accordance with GAAP, and should not be considered a substitute for the GAAP results. The Company has reconciled the non-GAAP financial information included in this release to the nearest GAAP measures. See the attached "Reconciliation of Non-GAAP Financial Information." "Total liquidity" is calculated as cash and cash equivalents, plus availability under the Company's $67.5 million revolving credit facility.

Conference Call Live Webcast

JAKKS Pacific, Inc. invites analysts, investors and media to listen to the teleconference scheduled for 5:00 p.m. ET / 2:00 p.m. PT on October 27, 2022. A live webcast of the call will be available on the "Investor Relations" page of the Company's website at www.jakks.com/investors. To access the call by phone, please go to this link (Registration Link), and you will be provided with dial in details. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the scheduled start time. A replay of the webcast will also be available for a limited time at (www.jakks.com/investors).

About JAKKS Pacific, Inc.

JAKKS Pacific, Inc. is a leading designer, manufacturer and marketer of toys and consumer products sold throughout the world, with its headquarters in Santa Monica, California. JAKKS Pacific's popular proprietary brands include: Creepy Crawlers®, Fly Wheel®, Perfectly Cute®, ReDo Skateboard Co.®, WeeeDo™, Xtreme Power®, Disguise®, Maui®, Moose Mountain®, Kids Only!®, Eyeclops®; a wide range of entertainment-inspired products featuring premier licensed properties; and C'est Moi®, a New Generation of Clean Beauty®. Through JAKKS Cares, the company's commitment to philanthropy, JAKKS is helping to make a positive impact on the lives of children. Visit us at www.jakks.com and follow us on Instagram (@jakkstoys), Twitter (@jakkstoys) and Facebook (JAKKS Pacific).

Forward Looking Statements

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 Pacific's products, product mix, the timing of customer orders and deliveries, the impact of competitive products and pricing, or that the Recapitalization transaction or any future transactions will result in future growth or success of JAKKS. 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.

JAKKS Pacific, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets (Unaudited)



	September 30,						December 31,
	2022			2021			2021
	(In thousands)
Assets
Current assets:
Cash and cash equivalents	$	76,418		$	25,897		$	44,521
Restricted cash		178			808			811
Accounts receivable, net		204,856			209,190			147,394
Inventory		109,171			89,796			83,954
Prepaid expenses and other assets		11,124			12,370			10,877
Total current assets		401,747			338,061			287,557

Property and equipment		131,918			120,910			121,945
Less accumulated depreciation and amortization		116,558			108,125			108,796
Property and equipment, net		15,360			12,785			13,149

Operating lease right-of-use assets, net		22,154			18,535			16,950
Goodwill		35,083			35,083			35,083
Intangibles and other assets, net		2,770			4,644			4,308
Total assets	$	477,114		$	409,108		$	357,047


Liabilities, Preferred Stock and Stockholders' Equity

Current liabilities:
Accounts payable	$	77,126		$	77,690		$	50,237
Accounts payable - Meisheng (related party)		28,301			27,581			15,894
Accrued expenses		74,223			58,180			47,071
Reserve for sales returns and allowances		59,216			47,691			46,285
Income taxes payable		14,084			635			1,004
Short term operating lease liabilities		10,515			10,407			10,477
Short term debt, net		2,475			1,914			2,104
Total current liabilities		265,940			224,098			173,072

Long term operating lease liabilities		12,555			9,947			8,039
Debt, non-current portion, net		65,195			93,896			93,415
Preferred stock derivative liability		23,347			17,075			21,282
Income taxes payable		66			215			215
Deferred income taxes, net		53			123			51
Total liabilities		367,156			345,354			296,074

Preferred stock accrued dividends		4,128			2,733			3,074

Stockholders' equity:
Common stock, $.001 par value		10			9			10
Additional paid-in capital		274,040			272,568			272,941
Accumulated deficit		(149,987	)		(200,259	)		(203,431	)
Accumulated other comprehensive loss		(18,594	)		(12,609	)		(12,952	)
Total JAKKS Pacific, Inc. stockholders' equity		105,469			59,709			56,568
Non-controlling interests		361			1,312			1,331
Total stockholders' equity		105,830			61,021			57,899
Total liabilities, preferred stock and stockholders' equity	$	477,114		$	409,108		$	357,047


Supplemental Balance Sheet and Cash Flow Data (Unaudited)
				September 30,
Key Balance Sheet Data:				2022			2021

Accounts receivable days sales outstanding (DSO)					58			81
Inventory turnover (DSI)					44			51


				Nine Months Ended September 30,
Condensed Cash Flow Data:				2022			2021
				(In thousands)
Cash flows provided by (used in) operating activities				$	75,793		$	(26,942	)
Cash flows used in investing activities					(8,619	)		(6,343	)
Cash flows used in financing activities and other					(35,910	)		(32,703	)
Increase/(decrease) in cash, cash equivalents and restricted cash				$	31,264		$	(65,988	)

Capital expenditures				$	(8,621	)	$	(6,375	)

JAKKS Pacific, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations (Unaudited)


	Three Months Ended September 30,											Nine Months Ended September 30,
	2022				2021				Δ (%)			2022				2021				Δ (%)
	(In thousands, except per share data)											(In thousands, except per share data)

Net sales	$	322,998			$	236,957			36		%	$	664,301			$	433,152			53		%
Less: Cost of sales
Cost of goods		174,334				126,095			38				368,242				231,633			59
Royalty expense		52,868				32,251			64				106,262				61,546			73
Amortization of tools and molds		3,885				3,687			5				7,079				7,058			0
Cost of sales		231,087				162,033			43				481,583				300,237			60
Gross profit		91,911				74,924			23				182,718				132,915			37
Direct selling expenses		8,397				10,729			(22	)			20,137				23,817			(15	)
General and administrative expenses		29,400				26,846			10				84,067				71,450			18
Depreciation and amortization		373				606			(38	)			1,547				1,807			(14	)
Selling, general and administrative expenses		38,170				38,181			(0	)			105,751				97,074			9
Intangibles impairment		-				-			nm				300				-			nm
Income from operations		53,741				36,743			46				76,667				35,841			114
Other income (expense):
Other income (expense), net		251				129			95				520				256			103
Change in fair value of convertible senior notes		-				(3,651	)		(100	)			-				(16,495	)		(100	)
Change in fair value of preferred stock derivative liability		(7,449	)			(99	)		nm				(2,065	)			(9,013	)		(77	)
Gain on loan forgiveness		-				6,206			(100	)			-				6,206			(100	)
Loss on debt extinguishment		-				-			-				-				(7,351	)		(100	)
Interest income		55				4			nm				64				10			nm
Interest expense		(4,350	)			(2,658	)		64				(8,889	)			(11,903	)		(25	)
Income (loss) before provision for income taxes		42,248				36,674			15				66,297				(2,449	)		nm
Provision for income taxes		11,572				298			nm				13,323				286			nm
Net income (loss)		30,676				36,376			(16	)			52,974				(2,735	)		nm
Net income (loss) attributable to non-controlling interests		(17	)			42			nm				(470	)			101			nm
Net income (loss) attributable to JAKKS Pacific, Inc.	$	30,693			$	36,334			(16	)	%	$	53,444			$	(2,836	)		nm		%
Net income (loss) attributable to common stockholders	$	30,336			$	35,998			(16	)	%	$	52,390			$	(3,829	)		nm		%
Earnings (loss) per share - basic	$	3.13			$	4.08						$	5.44			$	(0.56	)
Shares used in earnings (loss) per share - basic		9,695				8,823							9,624				6,820
Earnings (loss) per share - diluted	$	2.96			$	3.97						$	5.18			$	(0.56	)
Shares used in earnings (loss) per share - diluted		10,260				9,073							10,111				6,820


	Three Months Ended September 30,											Nine Months Ended September 30,
	2022				2021				Δ bps			2022				2021				Δ bps
									Fav/(Unfav)											Fav/(Unfav)
Net sales		100.0		%		100.0		%	-				100.0		%		100.0		%	-
Less: Cost of sales
Cost of goods		54.0				53.2			(80	)			55.4				53.4			(200	)
Royalty expense		16.3				13.6			(270	)			16.0				14.3			(170	)
Amortization of tools and molds		1.2				1.6			40				1.1				1.6			50
Cost of sales		71.5				68.4			(310	)			72.5				69.3			(320	)
Gross profit		28.5				31.6			(310	)			27.5				30.7			(320	)
Direct selling expenses		2.6				4.5			190				3.0				5.5			250
General and administrative expenses		9.1				11.3			220				12.7				16.5			380
Depreciation and amortization		0.1				0.3			20				0.2				0.4			20
Selling, general and administrative expenses		11.8				16.1			430				15.9				22.4			650
Intangibles impairment		-				-			-				-				-			-
Income from operations		16.7				15.5			120				11.6				8.3			330
Other income (expense):
Other income (expense), net		0.1				-							-				-
Change in fair value of convertible senior notes		-				(1.5	)						-				(3.8	)
Change in fair value of preferred stock derivative liability		(2.3	)			-							(0.3	)			(2.1	)
Gain on loan forgiveness		-				2.6							-				1.4
Loss on debt extinguishment		-				-							-				(1.7	)
Interest income		-				-							-				-
Interest expense		(1.4	)			(1.1	)						(1.3	)			(2.7	)
Income (loss) before provision for income taxes		13.1				15.5							10.0				(0.6	)
Provision for income taxes		3.6				0.1							2.0				0.1
Net income (loss)		9.5				15.4							8.0				(0.7	)
Net income (loss) attributable to non-controlling interests		-				-							-				-
Net income (loss) attributable to JAKKS Pacific, Inc.		9.5		%		15.4		%					8.0		%		(0.7	)	%
Net income (loss) attributable to common stockholders		9.4		%		15.2		%					7.9		%		(0.9	)	%

JAKKS Pacific, Inc. and Subsidiaries

Reconciliation of Non-GAAP Financial Information (Unaudited)

Reconciliation of GAAP to Non-GAAP measures:

This press release and accompanying schedules provide certain information regarding Adjusted EBITDA and Adjusted Net Income (Loss), which may be considered non-GAAP financial measures under the rules of the Securities and Exchange Commission. The non-GAAP financial measures included in the press release are reconciled to the corresponding GAAP financial measures below, as required under the rules of the Securities and Exchange Commission regarding the use of non-GAAP financial measures. We define Adjusted EBITDA as income (loss) from operations before depreciation, amortization and adjusted for certain non-recurring and non-cash charges, such as reorganization expenses and restricted stock compensation expense. Net income (loss) is similarly adjusted and tax-effected to arrive at Adjusted Net Income (Loss). Adjusted EBITDA and Adjusted Net Income (Loss) are not recognized financial measures under GAAP, but we believe that they are useful in measuring our operating performance. We believe that the use of the non-GAAP financial measures enhances an overall understanding of the Company's past financial performance, and provides useful information to the investor by comparing our performance across reporting periods on a consistent basis.

Investors should not consider these measures in isolation or as a substitute for net income, operating income, or any other measure for determining the Company's operating performance that is calculated in accordance with GAAP. In addition, because these measures are not calculated in accordance with GAAP, they may not necessarily be comparable to similarly titled measures employed by other companies.

	Three Months Ended September 30,											Nine Months Ended September 30,
	2022				2021				Δ ($)			2022				2021				Δ ($)
	(In thousands)											(In thousands)
EBITDA and Adjusted EBITDA
Net income (loss)	$	30,676			$	36,376			$	(5,700	)	$	52,974			$	(2,735	)		$	55,709
Interest expense		4,350				2,658				1,692			8,889				11,903				(3,014	)
Interest income		(55	)			(4	)			(51	)		(64	)			(10	)			(54	)
Provision for income taxes		11,572				298				11,274			13,323				286				13,037
Depreciation and amortization		4,258				4,293				(35	)		8,626				8,865				(239	)
EBITDA		50,801				43,621				7,180			83,748				18,309				65,439
Adjustments:
Other (income) expense, net		(251	)			(129	)			(122	)		(520	)			(256	)			(264	)
Restricted stock compensation expense		1,411				615				796			3,436				1,380				2,056
Change in fair value of preferred stock derivative liability		7,449				99				7,350			2,065				9,013				(6,948	)
Change in fair value of convertible senior notes		-				3,651				(3,651	)		-				16,495				(16,495	)
Employee Retention Credit/Gov't Employment Support		-				-				-			(249	)			(1,900	)			1,651
Gain on loan forgiveness		-				(6,206	)			6,206			-				(6,206	)			6,206
Loss on debt extinguishment		-				-				-			-				7,351				(7,351	)
Adjusted EBITDA	$	59,410			$	41,651			$	17,759		$	88,480			$	44,186			$	44,294
Adjusted EBITDA/Net sales %		18.4		%		17.6		%	80 bps				13.3		%		10.2		%	310 bps


	Trailing Twelve Months Ended September 30,
	2022				2021				Δ ($)
	(In thousands)
TTM EBITDA and TTM Adjusted EBITDA
TTM Net income (loss)	$	49,821			$	(14,044	)		$	63,865
Interest expense		11,090				16,809				(5,719	)
Interest income		(67	)			(12	)			(55	)
Provision for income taxes		13,263				740				12,523
Depreciation and amortization		10,012				10,809				(797	)
TTM EBITDA		84,119				14,302				69,817
Adjustments:
Other (income) expense, net		(710	)			(391	)			(319	)
Restricted stock compensation expense		4,149				2,177				1,972
Change in fair value of convertible senior notes		(76	)			21,517				(21,593	)
Change in fair value of preferred stock derivative liability		6,272				11,204				(4,932	)
Employee Retention Credit/Gov't Employment Support		(249	)			(1,900	)			1,651
Gain on loan forgiveness		-				(6,206	)			6,206
Loss on debt extinguishment		-				7,351				(7,351	)
TTM Adjusted EBITDA	$	93,505				48,054			$	45,451
TTM Adjusted EBITDA/TTM Net sales %		11.0		%		8.6		%	240 bps


	Three Months Ended September 30,											Nine Months Ended September 30,
	2022				2021				Δ ($)			2022				2021				Δ ($)
	(In thousands, except per share data)											(In thousands, except per share data)
Adjusted net income (loss) attributable to common stockholders
Net income (loss) attributable to common stockholders	$	30,336			$	35,998			$	(5,662	)	$	52,390			$	(3,829	)		$	56,219
Restricted stock compensation expense		1,411				615				796			3,436				1,380				2,056
Change in fair value of preferred stock derivative liability		7,449				99				7,350			2,065				9,013				(6,948	)
Change in fair value of convertible senior notes		-				3,651				(3,651	)		-				16,495				(16,495	)
Loss on debt extinguishment		-				-				-			-				7,351				(7,351	)
Gain on loan forgiveness		-				(6,206	)			6,206			-				(6,206	)			6,206
Employee Retention Credit/Gov't Employment Support		-				-				-			(249	)			(1,900	)			1,651
2021 BSP Term Loan prepayment penalty		525				-				525			525				-				525
Tax impact of additional charges		(697	)			-				(697	)		(697	)			-				(697	)
Adjusted net income attributable to common stockholders	$	39,024			$	34,157			$	4,867		$	57,470			$	22,304			$	35,166
Adjusted earnings per share - basic	$	4.03			$	3.87			$	0.15		$	5.97			$	3.27			$	2.70
Shares used in adjusted earnings per share - basic		9,695				8,823				872			9,624				6,820				2,804
Adjusted earnings per share - diluted	$	3.80			$	3.76			$	0.04		$	5.68			$	3.15			$	2.53
Shares used in adjusted earnings per share - diluted		10,260				9,073				1,187			10,111				7,083				3,028

JAKKS Pacific, Inc. and Subsidiaries
Net Sales by Division and Geographic Region



(In thousands)	QTD Q3										(In thousands)	YTD Q3

Divisions	2022		2021		2020		% Change 2022 v 2021		% Change 2021 v 2020		Divisions	2022		2021		2020		% Change 2022 v 2021		% Change 2021 v 2020
Toys/Consumer Products	$	269,607	$	172,952	$	187,309	55.9	%	-7.7	%	Toys/Consumer Products	$	529,590	$	334,365	$	306,088	58.4	%	9.2	%
Dolls, Role-Play/Dress Up		190,452		112,050		129,289	70.0	%	-13.3	%	Dolls, Role-Play/Dress Up		354,644		206,483		202,184	71.8	%	2.1	%
Action Play & Collectibles		65,752		37,587		33,598	74.9	%	11.9	%	Action Play & Collectibles		134,620		73,614		53,951	82.9	%	36.4	%
Outdoor/Seasonal Toys		13,403		23,315		24,422	-42.5	%	-4.5	%	Outdoor/Seasonal Toys		40,326		54,268		49,953	-25.7	%	8.6	%
Costumes		53,391		64,005		54,981	-16.6	%	16.4	%	Costumes		134,711		98,787		81,517	36.4	%	21.2	%
Total	$	322,998	$	236,957	$	242,290	36.3	%	-2.2	%	Total	$	664,301	$	433,152	$	387,605	53.4	%	11.8	%



(In thousands)	QTD Q3										(In thousands)	YTD Q3

Regions	2022		2021		2020		% Change 2022 v 2021		% Change 2021 v 2020		Regions	2022		2021		2020		% Change 2022 v 2021		% Change 2021 v 2020
United States	$	253,854	$	199,136	$	202,303	27.5	%	-1.6	%	United States	$	543,388	$	363,317	$	320,998	49.6	%	13.2	%
Europe		38,075		20,836		21,045	82.7	%	-1.0	%	Europe		65,911		38,103		34,424	73.0	%	10.7	%
Canada		12,804		8,094		9,523	58.2	%	-15.0	%	Canada		21,720		12,403		14,555	75.1	%	-14.8	%
Latin America		9,504		4,503		4,504	111.1	%	0.0	%	Latin America		15,712		8,123		6,586	93.4	%	23.3	%
Asia		4,294		2,635		2,744	63.0	%	-4.0	%	Asia		8,733		6,214		5,976	40.5	%	4.0	%
Australia & New Zealand		3,941		1,490		1,936	164.5	%	-23.0	%	Australia & New Zealand		7,014		3,927		4,269	78.6	%	-8.0	%
Middle East & Africa		526		263		235	100.0	%	11.9	%	Middle East & Africa		1,823		1,065		797	71.2	%	33.6	%
Total	$	322,998	$	236,957	$	242,290	36.3	%	-2.2	%	Total	$	664,301	$	433,152	$	387,605	53.4	%	11.8	%


(In thousands)	QTD Q3										(In thousands)	YTD Q3

Regions	2022		2021		2020		% Change 2022 v 2021		% Change 2021 v 2020		Regions	2022		2021		2020		% Change 2022 v 2021		% Change 2021 v 2020
North America	$	266,658	$	207,230	$	211,826	28.7	%	-2.2	%	North America	$	565,108	$	375,720	$	335,553	50.4	%	12.0	%
International		56,340		29,727		30,464	89.5	%	-2.4	%	International		99,193		57,432		52,052	72.7	%	10.3	%
Total	$	322,998	$	236,957	$	242,290	36.3	%	-2.2	%	Total	$	664,301	$	433,152	$	387,605	53.4	%	11.8	%

View source version on businesswire.com: https://www.businesswire.com/news/home/20221027005131/en/

JAKKS Pacific Reports Third Quarter 2022 Financial Results