EL SEGUNDO, Calif.,
Oct. 19, 2016 /PRNewswire/
-- For the third quarter of 2016, Mattel, Inc. (NASDAQ: MAT)
reported worldwide net sales were flat as reported, and were up 2%
in constant currency, versus the prior year. Worldwide gross sales
were flat as reported, and were up 1% in constant currency.
Reported operating income was $317.4
million, and adjusted operating income was $324.1 million. Reported earnings per share were
$0.68, and adjusted earnings per
share were $0.70.
"In the third quarter, we continued to make solid progress
against our strategic priorities, and we are pleased with our
momentum as we head into the holiday season," said Christopher Sinclair, Chairman and CEO of
Mattel. "Our core brands continue to show improved strength and
vibrancy, contributing to very encouraging and broad-based top-line
momentum. And we continued to manage costs effectively, while
making important investments in brand building, commercial
excellence and emerging market expansion. Overall, our strategies
are generating good progress on many fronts, and while we still
have a critical fourth quarter to execute, we remain broadly on
track to deliver on our full-year outlook."
Financial Overview
Third quarter net sales in the North American Region, which
consists of the United States,
Canada and American Girl®,
increased by 3% as reported and in constant currency, versus the
prior year. In the International Region, net sales decreased by 4%
as reported, and were flat in constant currency. Third quarter
gross sales in the North American Region increased by 1% as
reported, and were up 2% in constant currency. In the International
Region, gross sales decreased by 3% as reported, and were up 1% in
constant currency. Gross margin decreased 60 basis points, driven
mainly by the negative impact from changes in currency exchange
rates. Reported other selling and administrative expenses decreased
$15.1 million and adjusted other
selling and administrative expenses decreased $5.2 million, reflecting continued cost
improvement initiatives.
Reported operating income for the quarter was $317.4 million, compared to the prior year's
reported operating income of $300.8
million. Adjusted operating income for the quarter was
$324.1 million, compared to the prior
year's adjusted operating income of $317.4
million.
The Company's debt-to-total capital ratio as of September 30, 2016 was 50.2%.
For the nine months ended September 30,
2016, net cash flows used for operating activities were
approximately $331 million, an
increase of approximately $109
million versus the prior year, primarily driven by higher
working capital usage and lower net income. Cash flows used for
investing activities were approximately $205
million, a decrease of approximately $1 million versus the prior year, primarily
driven by changes in foreign currency forward exchange contracts,
partially offset by payments for acquisitions. Cash flows used for
financing activities and other were approximately $60 million, compared to approximately
$254 million in the prior year,
primarily driven by proceeds from the issuance of long-term debt
partially offset by higher net repayments of short-term
debt.
Capital Deployment
The Board of Directors declared a
2016 fourth quarter cash dividend of $0.38 per share, which is flat compared to the
fourth quarter of 2015. The dividend will be payable on
December 9, 2016 to stockholders of
record on November 22, 2016.
Sales by Brand
Mattel Girls and Boys Brands
For the third quarter, worldwide gross sales for Mattel Girls &
Boys Brands were $1.06 billion, down
5% as reported, and down 4% in constant currency, versus the prior
year. Worldwide gross sales for the Barbie brand were up 16% as
reported, and 17% in constant currency, versus the prior year.
Worldwide gross sales for Other Girls brands were down 50% as
reported, and down 46% in constant currency, versus the prior year.
Worldwide gross sales for the Wheels category, which includes the
Hot Wheels® and Matchbox® brands, were up 6% as reported and in
constant currency, versus the prior year. Worldwide gross sales for
the Entertainment business, which includes Radica® and Games, were
up 16% as reported and in constant currency, versus the prior
year.
Fisher-Price Brands
Third quarter worldwide gross sales for Fisher-Price Brands, which
includes the Fisher-Price Core, Fisher-Price Friends and Power
Wheels® brands, were $661.5 million,
up 6% as reported, and up 8% in constant currency, versus the prior
year.
American Girl Brands
Third quarter gross sales for
American Girl Brands®, which offers American Girl-branded products
directly to consumers, were $125.5
million, up 14% as reported, and up 15% in constant
currency, versus the prior year.
Construction and Arts & Crafts Brands
Third
quarter gross sales for Construction and Arts & Crafts Brands,
which includes the MEGA BLOKS® and RoseArt® brands, were
$118.6 million, flat as reported, and
up 6% in constant currency, versus the prior year.
Conference Call and Live Webcast
At 5:00 p.m. (Eastern Time) today, Mattel will host
a conference call with investors and financial analysts to discuss
its 2016 third quarter financial results. The conference call will
be webcast on Mattel's Investor Relations
website, http://investor.shareholder.com/mattel. To listen to
the live call, log on to the website at least 10 minutes early to
register, download and install any necessary audio software. An
archive of the webcast will be available on the company's website
for 90 days and may be accessed beginning approximately two hours
after the completion of the live call. A telephonic replay of the
call will be available beginning at 8:00 p.m. Eastern
time the evening of the call until Wednesday, October 26,
2016, and may be accessed by dialing +1-404-537-3406. The
passcode is 82398434.
Forward-Looking Statements
This press release contains
forward-looking statements on a variety of matters. These
forward-looking statements are based on currently available
operating, financial, economic and other information, and are
subject to a number of significant risks and uncertainties. A
variety of factors, many of which are beyond our control, could
cause actual future results to differ materially from those
projected in the forward-looking statements. Some of these factors
are described in the Company's periodic filings with the Securities
and Exchange Commission, including the "Risk Factors" section of
Mattel's Annual Report on Form 10-K for the fiscal year ended
December 31, 2015 and Mattel's
Quarterly Reports on Form 10-Q for fiscal year 2016, as well as in
Mattel's other public statements. Mattel does not update
forward-looking statements and expressly disclaims any obligation
to do so.
Non-GAAP Financial Measures
To supplement our
financial results presented in accordance with generally accepted
accounting principles in the United
States ("GAAP"), Mattel presents certain non-GAAP financial
measures within the meaning of Regulation G promulgated by the
Securities and Exchange Commission. The non-GAAP financial measures
that Mattel uses in this earnings release includes gross sales,
adjusted other selling and administrative expenses, adjusted
operating income, adjusted earnings per share and constant
currency. Mattel uses these metrics to analyze its continuing
operations and to monitor, assess and identify meaningful trends in
its operating and financial performance, and each is discussed in
detail below. These measures are not, and should not be viewed as,
substitutes for GAAP financial measures. Reconciliations of the
non-GAAP financial measures to the most directly comparable GAAP
financial measures are attached to this earnings release as
exhibits and to our earnings slide presentation as an appendix.
This earnings release and our earnings slide presentation are
available on Mattel's Investor Relations website,
http://investor.shareholder.com/mattel, under the subheading
"Financial Information – Earnings Releases."
Gross sales
Gross sales represent sales to customers,
excluding the impact of sales adjustments. Net sales, as reported,
include the impact of sales adjustments, such as trade discounts
and other allowances. Mattel presents changes in gross sales as a
metric for comparing its aggregate, brand and geographic results to
highlight significant trends in Mattel's business. Changes in gross
sales are discussed because, while Mattel records the details of
such sales adjustments in its financial accounting systems at the
time of sale, such sales adjustments are generally not associated
with brands and individual products, making net sales less
meaningful.
Adjusted other selling and administrative
expenses
Adjusted other selling and administrative expenses
represents Mattel's reported other selling and administrative
expenses, adjusted to exclude the impact of expenses associated
with the acquisition and integration of an acquired business and
restructuring and restructuring-related expenses. Adjusted other
selling and administrative expenses is presented to provide
additional perspective on underlying trends in Mattel's core other
selling and administrative expenses.
Adjusted operating income
Adjusted operating income
represents Mattel's reported operating income, adjusted to exclude
expenses associated with the acquisition and integration of an
acquired business and the impact of restructuring and
restructuring-related expenses. Adjusted operating income is
presented to provide additional perspective on underlying trends in
Mattel's core operating results.
Adjusted earnings per share
Adjusted earnings per
share represents Mattel's reported diluted earnings per common
share, adjusted to exclude expenses associated with the acquisition
and integration of an acquired business, the impact of
restructuring and restructuring-related expenses, sale of non-core
assets, and currency devaluations. The aggregate tax effect of the
adjustments is calculated by tax effecting the adjustments by the
current effective tax rate, and dividing by the reported weighted
average number of common and potential common shares. Adjusted
earnings per share is presented to provide additional perspective
on underlying trends in Mattel's core earnings. Adjusted earnings
per share is a performance measure and should not be used as a
measure of liquidity.
Constant currency
Percentage changes in results
expressed in constant currency are presented excluding the impact
from changes in currency exchange rates. To present this
information, Mattel calculates constant currency information by
translating current period and prior period results for entities
reporting in currencies other than the US dollar using consistent
exchange rates. The consistent exchange rates are determined by
Mattel at the beginning of each year and are applied consistently
during the year. They are generally different from the actual
exchange rates in effect during the current or prior period due to
volatility in actual foreign exchange rates. Mattel established the
exchange rates that it uses for these constant currency
calculations years ago. It considers whether any changes to
these rates are appropriate at the beginning of each year but,
generally, has held them unchanged. The difference between the
current period and prior period results using the consistent
exchange rates reflects the changes in the underlying performance
results, excluding the impact from changes in currency exchange
rates. Mattel analyzes constant currency results to provide
additional perspective on changes in underlying trends in Mattel's
operating performance.
About Mattel
Mattel is a creations company that
inspires the wonder of childhood. Our mission is to be the
recognized leader in play, learning and development worldwide.
Mattel's portfolio of global consumer brands includes American
Girl®, Barbie®, Fisher-Price®, Hot Wheels®, Monster High® and
Thomas & Friends®, among many others. Mattel also creates a
wealth of lines and products made in collaboration with leading
entertainment and technology companies. With a global workforce of
approximately 31,000 people, Mattel operates in 40 countries and
territories and sells products in more than 150 nations. Visit us
online at www.mattel.com.
Contacts:
|
|
News
Media
Alex Clark
310-252-6397
alex.clark@mattel.com
|
Securities
Analysts
Martin
Gilkes
310-252-2703
martin.gilkes@mattel.com
|
MAT-FIN MAT-CORP
1 Please refer to Non-GAAP Financial Measures for a
glossary of non-GAAP financial measures used herein, including
gross sales, adjusted other selling and administrative expenses,
adjusted operating income, adjusted earnings per share and constant
currency.
MATTEL, INC. AND
SUBSIDIARIES
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EXHIBIT
I
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CONSOLIDATED
STATEMENTS OF OPERATIONS (Unaudited)
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For the Three
Months Ended September 30,
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For the Nine
Months Ended September 30,
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Yr /
Yr
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Yr /
Yr
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Yr /
Yr
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Yr /
Yr
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%
Change
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%
Change
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%
Change
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%
Change
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(In millions,
except per share and
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2016
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2015
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as
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in
Constant
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2016
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2015
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as
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in
Constant
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percentage
information)
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$
Amt
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% Net
Sales
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$
Amt
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% Net
Sales
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Reported
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Currency
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$
Amt
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% Net
Sales
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$
Amt
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% Net
Sales
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Reported
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Currency
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Net
Sales
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$
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1,795.6
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$
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1,792.0
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0%
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2%
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$
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3,622.3
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$
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3,702.9
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-2%
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0%
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Cost of
sales
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924.8
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51.5%
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912.4
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50.9%
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1%
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1,929.3
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53.3%
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1,900.0
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51.3%
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2%
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Gross
Profit
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870.8
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48.5%
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879.6
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49.1%
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-1%
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3%
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1,693.0
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46.7%
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1,802.9
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48.7%
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-6%
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1%
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Advertising and promotion expenses
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202.9
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11.3%
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213.2
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11.9%
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-5%
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384.6
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10.6%
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420.4
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11.4%
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-9%
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Other
selling and administrative expenses
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350.5
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19.5%
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365.6
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20.4%
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-4%
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1,051.8
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29.0%
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1,135.6
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30.7%
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-7%
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Operating
Income
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317.4
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17.7%
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300.8
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16.8%
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6%
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16%
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256.6
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7.1%
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246.9
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6.7%
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4%
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43%
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Interest
expense
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25.0
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1.4%
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21.4
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1.2%
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17%
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70.1
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1.9%
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62.5
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1.7%
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12%
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Interest
(income)
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(2.5)
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-0.1%
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(2.0)
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-0.1%
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24%
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(7.6)
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-0.2%
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(5.8)
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-0.2%
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31%
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Other
non-operating expense (income), net
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0.9
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(4.7)
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23.3
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(2.9)
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Income Before
Income Taxes
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294.0
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16.4%
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286.1
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16.0%
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3%
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14%
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170.8
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4.7%
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193.1
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5.2%
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-12%
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38%
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Provision for income taxes
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57.7
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62.3
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26.6
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38.8
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Net
Income
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$
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236.3
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13.2%
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$
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223.8
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12.5%
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6%
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$
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144.2
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4.0%
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$
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154.3
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4.2%
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-7%
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Net Income Per
Common Share - Basic
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$
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0.69
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$
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0.66
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$
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0.42
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$
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0.45
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Weighted
average number of common shares
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342.0
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339.4
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341.1
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339.0
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Net Income Per
Common Share - Diluted
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$
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0.68
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$
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0.66
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$
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0.42
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$
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0.45
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Weighted
average number of common and potential common
shares
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344.2
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339.8
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343.3
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339.5
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MATTEL, INC. AND
SUBSIDIARIES
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EXHIBIT
II
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CONDENSED
CONSOLIDATED BALANCE SHEETS
|
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September
30,
|
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December
31,
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|
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2016
|
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2015
(b)(c)
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2015
(b)(c)
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(In
millions)
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(Unaudited)
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Assets
|
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Cash and
equivalents
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$
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297.1
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$
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289.7
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$
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892.8
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Accounts
receivable, net
|
|
1,528.8
|
|
1,451.3
|
|
1,145.1
|
Inventories
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|
910.5
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870.8
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587.5
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Prepaid
expenses and other current assets
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342.4
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367.9
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375.7
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Total current
assets
|
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3,078.8
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2,979.7
|
|
3,001.1
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|
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Property, plant, and equipment, net
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747.5
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721.3
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741.1
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Other
noncurrent assets
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2,822.6
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2,928.6
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2,792.9
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Total
Assets
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$
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6,648.9
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$
|
6,629.6
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$
|
6,535.1
|
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Liabilities and
Stockholders' Equity
|
|
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Short-term borrowings
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$
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-
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$
|
161.0
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$
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16.9
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Current
portion of long-term debt
|
|
300.0
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-
|
|
300.0
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Accounts
payable and accrued liabilities
|
|
1,323.9
|
|
1,248.6
|
|
1,309.8
|
Income
taxes payable
|
|
21.7
|
|
31.9
|
|
18.8
|
Total current
liabilities
|
|
1,645.6
|
|
1,441.5
|
|
1,645.5
|
|
|
|
|
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|
|
Long-term debt
|
|
2,133.5
|
|
2,084.0
|
|
1,784.7
|
Other
noncurrent liabilities
|
|
454.4
|
|
531.4
|
|
471.7
|
Stockholders' equity
|
|
2,415.4
|
|
2,572.7
|
|
2,633.2
|
Total Liabilities
and Stockholders' Equity
|
$
|
6,648.9
|
$
|
6,629.6
|
$
|
6,535.1
|
|
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|
|
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|
|
|
|
SUPPLEMENTAL
BALANCE SHEET AND CASH FLOW DATA (Unaudited)
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
|
(In millions,
except days and percentage information)
|
|
2016
|
|
2015
(b)
|
|
|
|
|
|
|
|
|
|
Key Balance Sheet
Data:
|
|
|
|
|
|
|
Accounts receivable,
net days of sales outstanding (DSO)
|
|
77
|
|
73
|
|
|
Total debt
outstanding
|
|
$ 2,433.5
|
|
$
2,245.0
|
|
|
Total debt-to-total
capital ratio
|
|
50.2%
|
|
46.6%
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30,
|
|
|
(In
millions)
|
|
2016
(a)
|
|
2015
|
|
|
|
|
|
|
|
|
|
Condensed Cash
Flow Data:
|
|
|
|
|
|
|
Cash flows (used for)
operating activities
|
|
$
(331)
|
|
$
(222)
|
|
|
|
|
|
|
|
|
|
Cash flows (used for)
investing activities
|
|
(205)
|
|
(206)
|
|
|
|
|
|
|
|
|
|
Cash flows (used for)
financing activities and other
|
|
(60)
|
|
(254)
|
|
|
|
|
|
|
|
|
|
Decrease in cash and
equivalents
|
|
$
(596)
|
|
$
(682)
|
|
|
|
|
(a)
|
Amounts shown are
preliminary estimates. Actual amounts will be reported in Mattel's
Quarterly Report on Form 10-Q for the quarter ended September 30, 2016.
|
(b)
|
Other noncurrent
assets and long-term debt have been retrospectively restated to
reflect the adoption of Accounting Standards Update (ASU) 2015-03, Simplifying the Presentation
of Debt Issuance Costs.
|
(c)
|
ASU 2015-17,
Balance Sheet Classification of Deferred Taxes, was
retrospectively adopted in the quarter ended March 31, 2016.
As of September 30, 2015, prepaid
expenses and other current assets decreased by $203.5 million,
accounts payable and accrued liabilities decreased by $0.1 million, other noncurrent assets
increased by $199.6 million, and other noncurrent liabilities
decreased by $3.8 million. As of
December 31, 2015, prepaid expenses and other current assets
decreased by $195.8 million, other noncurrent assets increased
by $193.6 million, and other
noncurrent liabilities decreased by $2.2 million.
|
MATTEL, INC. AND
SUBSIDIARIES
|
|
|
|
|
|
|
|
|
EXHIBIT
III
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WORLDWIDE GROSS
SALES INFORMATION (Unaudited)
|
|
|
|
|
|
|
|
|
RECONCILIATION OF
GAAP AND NON-GAAP FINANCIAL MEASURES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended September 30,
|
|
|
For the Nine
Months Ended September 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions,
except percentage information)
|
2016
|
|
2015
|
|
|
|
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
% Change
as Reported
|
|
% Change in
Constant
Currency
|
|
|
|
|
|
|
% Change
as Reported
|
|
% Change in
Constant
Currency
|
|
|
Worldwide Gross
Sales by Brand:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mattel Girls &
Boys Brands
|
$ 1,061.1
|
|
$ 1,120.6
|
|
-5
|
%
|
-4
|
%
|
|
$ 2,142.7
|
|
$ 2,327.6
|
|
-8
|
%
|
-5
|
%
|
|
Fisher-Price
Brands
|
661.5
|
|
625.3
|
|
6
|
|
8
|
|
|
1,280.4
|
|
1,226.0
|
|
4
|
|
7
|
|
|
American Girl
Brands
|
125.5
|
|
109.9
|
|
14
|
|
15
|
|
|
286.9
|
|
300.1
|
|
-4
|
|
-4
|
|
|
Construction and Arts
& Crafts Brands
|
118.6
|
|
118.5
|
|
0
|
|
6
|
|
|
252.8
|
|
221.6
|
|
14
|
|
23
|
|
|
Other
|
8.7
|
|
9.1
|
|
|
|
|
|
|
27.4
|
|
23.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Sales
|
$ 1,975.4
|
|
$ 1,983.4
|
|
0
|
%
|
1
|
%
|
|
$ 3,990.2
|
|
$ 4,098.7
|
|
-3
|
%
|
0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Worldwide Gross
Sales - Mattel Girls & Boys Brands:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Barbie
|
$
349.7
|
|
$
302.0
|
|
16
|
%
|
17
|
%
|
|
$
651.3
|
|
$
578.3
|
|
13
|
%
|
14
|
%
|
|
Other
Girls
|
161.6
|
|
320.4
|
|
-50
|
|
-46
|
|
|
304.5
|
|
685.9
|
|
-56
|
|
-52
|
|
|
Wheels
|
281.9
|
|
266.9
|
|
6
|
|
6
|
|
|
579.0
|
|
559.5
|
|
3
|
|
7
|
|
|
Entertainment
|
267.9
|
|
231.3
|
|
16
|
|
16
|
|
|
607.9
|
|
503.9
|
|
21
|
|
23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Sales
|
$ 1,061.1
|
|
$ 1,120.6
|
|
-5
|
%
|
-4
|
%
|
|
$ 2,142.7
|
|
$ 2,327.6
|
|
-8
|
%
|
-5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Non-GAAP to GAAP Financial Measure:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Sales
|
$ 1,975.4
|
|
$ 1,983.4
|
|
|
|
|
|
|
$ 3,990.2
|
|
$ 4,098.7
|
|
|
|
|
|
|
Sales
Adjustments1
|
(179.8)
|
|
(191.4)
|
|
|
|
|
|
|
(367.9)
|
|
(395.8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Sales
|
$ 1,795.6
|
|
$ 1,792.0
|
|
0
|
%
|
2
|
%
|
|
$ 3,622.3
|
|
$ 3,702.9
|
|
-2
|
%
|
0
|
%
|
|
|
1
|
Sales adjustments are
not allocated to individual products. As such, net sales are
only presented on a consolidated basis and not on a brand
level.
|
MATTEL, INC. AND
SUBSIDIARIES
|
|
|
|
|
|
|
|
EXHIBIT
IV
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS SALES BY
REGION (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF
GAAP AND NON-GAAP FINANCIAL MEASURES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended September 30,
|
|
|
For the Nine
Months Ended September 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions,
except percentage information)
|
2016
|
|
2015
|
|
|
|
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
% Change
as Reported
|
|
% Change in
Constant
Currency
|
|
|
|
|
|
|
% Change
as Reported
|
|
% Change in
Constant
Currency
|
|
|
North
American1 Region Gross Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Sales
|
$ 1,201.1
|
|
$ 1,184.8
|
|
1
|
%
|
2
|
%
|
|
$ 2,376.0
|
|
$ 2,366.6
|
|
0
|
%
|
1
|
%
|
|
Sales
Adjustments
|
(71.4)
|
|
(84.4)
|
|
|
|
|
|
|
(134.7)
|
|
(159.9)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales
|
$ 1,129.7
|
|
$ 1,100.4
|
|
3
|
%
|
3
|
%
|
|
$ 2,241.3
|
|
$ 2,206.7
|
|
2
|
%
|
2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
Region Gross Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Europe
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Sales
|
$
418.8
|
|
$
449.3
|
|
-7
|
%
|
-1
|
%
|
|
$
867.0
|
|
$
928.4
|
|
-7
|
%
|
-1
|
%
|
|
Sales
Adjustments
|
(64.2)
|
|
(65.3)
|
|
|
|
|
|
|
(136.1)
|
|
(138.7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales
|
$
354.6
|
|
$
384.0
|
|
-8
|
%
|
-2
|
%
|
|
$
730.9
|
|
$
789.7
|
|
-7
|
%
|
-2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Latin
America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Sales
|
$
211.8
|
|
$
224.1
|
|
-5
|
%
|
-3
|
%
|
|
$
403.3
|
|
$
466.4
|
|
-14
|
%
|
-5
|
%
|
|
Sales
Adjustments
|
(25.5)
|
|
(29.2)
|
|
|
|
|
|
|
(49.9)
|
|
(58.7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales
|
$
186.3
|
|
$
194.9
|
|
-4
|
%
|
-2
|
%
|
|
$
353.4
|
|
$
407.7
|
|
-13
|
%
|
-4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asia
Pacific
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Sales
|
$
143.7
|
|
$
125.2
|
|
15
|
%
|
15
|
%
|
|
$
343.9
|
|
$
337.3
|
|
2
|
%
|
5
|
%
|
|
Sales
Adjustments
|
(18.7)
|
|
(12.5)
|
|
|
|
|
|
|
(47.2)
|
|
(38.5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales
|
$
125.0
|
|
$
112.7
|
|
11
|
%
|
11
|
%
|
|
$
296.7
|
|
$
298.8
|
|
-1
|
%
|
2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
International Region
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Sales
|
$
774.3
|
|
$
798.6
|
|
-3
|
%
|
1
|
%
|
|
$ 1,614.2
|
|
$ 1,732.1
|
|
-7
|
%
|
-1
|
%
|
|
Sales
Adjustments
|
(108.4)
|
|
(107.0)
|
|
|
|
|
|
|
(233.2)
|
|
(235.9)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Sales
|
$
665.9
|
|
$
691.6
|
|
-4
|
%
|
0
|
%
|
|
$ 1,381.0
|
|
$ 1,496.2
|
|
-8
|
%
|
-2
|
%
|
|
1 Consists
of U.S., Canada, and American Girl.
|
MATTEL, INC. AND
SUBSIDIARIES
|
|
|
|
EXHIBIT
V
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL
FINANCIAL INFORMATION (Unaudited)
|
|
|
|
|
|
RECONCILIATION OF
GAAP AND NON-GAAP FINANCIAL MEASURES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended September 30,
|
|
|
For the Nine
Months Ended September 30,
|
(In millions,
except per share and percentage information)
|
|
2016
|
|
2015
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
Other Selling and
Administrative Expenses
|
|
|
|
|
|
|
|
|
|
Other Selling and
Administrative Expenses, As Reported
|
$
|
350.5
|
$
|
365.6
|
|
$
|
1,051.8
|
$
|
1,135.6
|
% of Net
Sales
|
|
19.5%
|
|
20.4%
|
|
|
29.0%
|
|
30.7%
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Integration &
Acquisition Costs (1)
|
|
(0.3)
|
|
(3.3)
|
|
|
(1.4)
|
|
(13.6)
|
Severance and
Restructuring Expenses
|
|
(6.4)
|
|
(13.3)
|
|
|
(33.6)
|
|
(56.9)
|
Other Selling and
Administrative Expenses, As Adjusted
|
$
|
343.8
|
$
|
349.0
|
|
$
|
1,016.8
|
$
|
1,065.1
|
% of Net
Sales
|
|
19.1%
|
|
19.5%
|
|
|
28.1%
|
|
28.8%
|
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
|
|
|
|
|
|
|
|
|
Operating Income, As
Reported
|
$
|
317.4
|
$
|
300.8
|
|
$
|
256.6
|
$
|
246.9
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Integration &
Acquisition Costs (1)
|
|
0.3
|
|
3.3
|
|
|
1.4
|
|
13.6
|
Severance and
Restructuring Expenses
|
|
6.4
|
|
13.3
|
|
|
33.6
|
|
56.9
|
Operating Income, As
Adjusted
|
$
|
324.1
|
$
|
317.4
|
|
$
|
291.6
|
$
|
317.4
|
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share
|
|
|
|
|
|
|
|
|
|
Net Income Per Common
Share, As Reported
|
$
|
0.68
|
$
|
0.66
|
|
$
|
0.42
|
$
|
0.45
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Integration &
Acquisition Costs (1)
|
|
-
|
|
0.01
|
|
|
-
|
|
0.04
|
Severance and
Restructuring Expenses
|
|
0.02
|
|
0.04
|
|
|
0.10
|
|
0.17
|
Sale of
Assets
|
|
-
|
|
-
|
|
|
(0.01)
|
|
-
|
Venezuela Currency
Devaluation Loss
|
|
-
|
|
-
|
|
|
0.08
|
|
-
|
Tax Effect of
Adjustments (2)
|
|
-
|
|
(0.01)
|
|
|
(0.04)
|
|
(0.05)
|
Net Income Per Common
Share, As Adjusted
|
$
|
0.70
|
$
|
0.70
|
|
$
|
0.55
|
$
|
0.61
|
|
|
(1)
|
Includes Integration
& Acquisition Costs for Fuhu and Sproutling in 2016 and MEGA
Brands in 2015.
|
(2)
|
The aggregate tax
effect of the adjustments is calculated by tax effecting the
adjustments by the current effective tax rate, and dividing by the
reported weighted average number of
common and potential common shares.
|
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SOURCE Mattel, Inc.