EL SEGUNDO, Calif.,
Jan. 25, 2017 /PRNewswire/ --
Full Year Highlights1
- Worldwide net sales down 4% as reported, and down 2% in
constant currency; worldwide gross sales down 3% as reported, and
flat in constant currency. Excluding Disney Princess®, worldwide
gross sales up mid-single digits as reported, and up high-single
digits in constant currency.
- Fisher-Price® worldwide gross sales up 2% as reported, and up
6% in constant currency; Wheels worldwide gross sales up 6% as
reported, and up 11% in constant currency; Barbie® worldwide gross
sales up 7% as reported, and up 9% in constant currency.
- Reported operating income of $519.2
million, compared to reported operating income of
$540.9 million in the prior year; and
adjusted operating income of $560.8
million, compared to adjusted operating income of
$623.6 million in the prior
year.
- Reported earnings per share of $0.92, compared to reported earnings per share of
$1.08 in the prior year; and adjusted
earnings per share of $1.06, compared
to adjusted earnings per share of $1.27 in the prior year.
Fourth Quarter Highlights1
- Worldwide net sales down 8% as reported, and down 6% in
constant currency; worldwide gross sales down 5% as reported, and
down 1% in constant currency. Excluding Disney Princess, worldwide
gross sales flat as reported, and up mid-single digits in constant
currency.
- Fisher-Price worldwide gross sales down 3% as reported, and up
2% in constant currency; Wheels worldwide gross sales up 13% as
reported, and up 18% in constant currency; Barbie worldwide gross
sales down 2% as reported, and up 1% in constant currency.
- Reported operating income of $262.6
million, compared to reported operating income of
$294.1 million in the prior year's
fourth quarter; and adjusted operating income of $269.2 million, compared to adjusted operating
income of $306.3 million in the prior
year's fourth quarter.
- Reported earnings per share of $0.50, compared to reported earnings per share of
$0.63 in the prior year's fourth
quarter; and adjusted earnings per share of $0.52, compared to adjusted earnings per share of
$0.65 in the prior year's fourth
quarter.
Capital Deployment
- Board declared a 2017 first quarter cash dividend of
$0.38 per share, which is flat
compared to the first quarter of 2016.
Mattel, Inc. (NASDAQ: MAT) today reported full year and fourth
quarter 2016 financial results.
"Our results were negatively impacted by a number of
industry–wide challenges, including a significant U.S. toy category
slowdown in the holiday period, and increased forex headwinds,"
said Christopher Sinclair, Chairman
and CEO of Mattel. "And while our sales at retail remained strong,
the slowdown triggered elevated retail promotional activity and
decreased shipping, all of which had a significant impact on our
gross margin."
Mr. Sinclair added, "Even against this difficult backdrop, our
core brands continued to show solid growth, and our performance in
key emerging markets like China
was equally strong. And, importantly, we offset a substantial
revenue gap from the loss of the Disney Princess license. Looking
forward, we remain broadly optimistic about Mattel's performance in
2017 and beyond. Our core brands are strong and growing, we have a
solid lineup of entertainment properties in the pipeline, and we
are forging valuable relationships with key retail partners
throughout the world."
For the year, reported worldwide net sales were down 4% as
reported, and were down 2% in constant currency, versus the prior
year. Worldwide gross sales were down 3% as reported, and were flat
in constant currency. Reported operating income was $519.2 million, and adjusted operating income was
$560.8 million. Reported earnings per
share were $0.92, and adjusted
earnings per share were $1.06.
For the fourth quarter of 2016, net sales were down 8% as
reported, and were down 6% in constant currency, versus the prior
year. Worldwide gross sales were down 5% as reported, and were down
1% in constant currency. Reported operating income was $262.6 million, and adjusted operating income was
$269.2 million. Reported earnings per
share were $0.50, and adjusted
earnings per share were $0.52.
Financial Overview
For the year, net sales in the
North American Region, which consists of the United States, Canada and American Girl®, decreased by
2% as reported, and decreased by 1% in constant currency, versus
the prior year. In the International Region, net sales decreased by
8% as reported, and decreased by 2% in constant currency. Gross
sales in the North American Region decreased by 1% as reported and
in constant currency. In the International Region, gross sales
decreased by 6% as reported, and were up 1% in constant currency.
Gross margin for the year decreased 240 basis points, driven mainly
by the negative impact from changes in currency exchange rates.
Reported other selling and administrative expenses for the year
decreased $147.3 million and adjusted
other selling and administrative expenses decreased $106.2 million, reflecting continuous cost
improvement initiatives and lower incentive and equity compensation
expenses. Reported operating income for the year was $519.2 million, compared to the prior year's
reported operating income of $540.9
million. Adjusted operating income for the year was
$560.8 million, compared to the prior
year's adjusted operating income of $623.6
million. The Company delivered at the high end of its
two-year, $300 million cost savings
plan in 2016.
For the fourth quarter, net sales in the North American Region
decreased by 7% as reported and in constant currency, versus the
prior year's fourth quarter. In the International Region, net sales
decreased by 10% as reported, and decreased by 2% in constant
currency. Fourth quarter gross sales in the North American Region
decreased by 5% as reported and in constant currency. In the
International Region, gross sales decreased by 4% as reported, and
were up 4% in constant currency. Gross margin for the quarter
decreased 320 basis points, driven mainly by elevated discounting,
and the negative impact from changes in currency exchange rates.
Reported other selling and administrative expenses decreased
$63.5 million; adjusted other selling
and administrative expenses for the quarter decreased $57.9 million, reflecting continuous cost
improvement initiatives and lower incentive and equity compensation
expenses. Reported operating income for the quarter was
$262.6 million, compared to the prior
year's fourth quarter reported operating income of $294.1 million. Adjusted operating income for the
quarter was $269.2 million, compared
to the prior year's fourth quarter adjusted operating income of
$306.3 million.
In the fourth quarter, Mattel's retail sales (POS) were on par
with overall toy category retail sales in the U.S., excluding
Disney Princesses.
For the year, net cash flows from operating activities were
approximately $590 million, a
decrease of approximately $145
million versus the prior year, primarily driven by higher
working capital usage and lower net income. Cash flows used for
investing activities were approximately $307
million, an increase of approximately $24 million versus the prior year, primarily
driven by payments for acquisitions, partially offset by changes in
foreign currency forward exchange contracts for the year. For the
year, cash flows used for financing activities and other were
approximately $306 million, compared
to approximately $531 million in the
prior year, primarily driven by proceeds from the issuance of
long-term debt and higher short-term borrowings, partially offset
by the repayment of maturing debt.
The Company's debt-to-total capital ratio as of December 31, 2016 was 49.2%.
Capital Deployment
The Board of Directors declared a
2017 first quarter cash dividend of $0.38 per share, which is flat compared to the
first quarter of 2016. The dividend will be payable on March 3, 2017 to stockholders of record on
February 16, 2017.
Sales by Brand
Mattel Girls and Boys Brands |
For the year, worldwide gross sales for Mattel Girls & Boys
Brands were $3.19 billion, down 8% as
reported, and down 5% in constant currency, versus the prior year.
Worldwide gross sales for the Barbie brand were up 7% as reported,
and up 9% in constant currency, versus the prior year. Worldwide
gross sales for Other Girls brands, which includes Disney Princess
and Monster High®, were down 52% as reported, and down 47% 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 were up 11% in constant
currency, versus the prior year. Worldwide gross sales for the
Entertainment business, which includes Radica® and Games, were
up 13% as reported, and were up 16% in constant currency, versus
the prior year.
For the fourth quarter, worldwide gross sales for Mattel Girls
& Boys Brands were $1.05 billion,
down 7% as reported, and down 3% in constant currency, versus the
prior year's fourth quarter. Worldwide gross sales for the Barbie
brand were down 2% as reported, and up 1% in constant currency,
versus the prior year's fourth quarter. Worldwide gross sales for
Other Girls brands, which includes Disney Princess and Monster
High, were down 41% as reported, and down 35% in constant currency,
versus the prior year's fourth quarter. Worldwide gross sales for
the Wheels category were up 13% as reported, and were up 18% in
constant currency, versus the prior year's fourth quarter.
Worldwide gross sales for the Entertainment business were flat as
reported, and were up 2% in constant currency, versus the prior
year's fourth quarter.
Fisher-Price Brands
For the year, worldwide gross sales for Fisher-Price Brands, which
includes the Fisher-Price Core, Fisher-Price Friends and Power
Wheels® brands, were $1.89 billion,
up 2% as reported, and up 6% in constant currency, versus the prior
year. Fourth quarter worldwide gross sales were $607.7 million, down 3% as reported, and up 2% in
constant currency, versus the prior year's fourth quarter.
American Girl Brands
For the year, worldwide gross
sales for American Girl Brands®, which offers American Girl-branded
products directly to consumers, were $570.8
million, flat as reported and in constant currency, versus
the prior year. Fourth quarter gross sales were $283.9 million, up 4% as reported, and up 5% in
constant currency, versus the prior year's fourth quarter.
Construction and Arts & Crafts Brands
For the
year, worldwide gross sales for Construction and Arts & Crafts
Brands, which includes the MEGA BLOKS® and RoseArt® brands, were
$377.6 million, up 7% as reported,
and up 15% in constant currency, versus the prior year. Fourth
quarter gross sales were $124.8
million, down 4% as reported, and up 1% in constant
currency, versus the prior year's fourth quarter.
Conference Call and Live Webcast
At 6:00 p.m. (Eastern Time) today, Mattel will host
a conference call with investors and financial analysts to discuss
its 2016 full year and fourth 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 9:00 p.m. Eastern time the evening of the call
until Wednesday, February 1, 2017, and may be accessed by
dialing +1-404-537-3406. The passcode is 43079679.
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:
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News
Media
Alex Clark
310-252-6397
alex.clark@mattel.com
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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.
2 The NPD Group/Retail Tracking Service/US/Q4 2016/Total
Toys/Dollars.
MATTEL, INC. AND
SUBSIDIARIES
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EXHIBIT
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CONSOLIDATED
STATEMENTS OF OPERATIONS (Unaudited)
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For the Three
Months Ended December 31,
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For the Year Ended
December 31,
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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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1,834.4
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$
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1,999.7
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-8%
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-6%
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$
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5,456.7
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$
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5,702.6
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-4%
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-2%
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Cost of
sales
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973.0
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53.0%
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996.2
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49.8%
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-2%
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2,902.3
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53.2%
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2,896.2
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50.8%
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0%
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Gross
Profit
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861.4
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47.0%
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1,003.5
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50.2%
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-14%
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-9%
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2,554.4
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46.8%
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2,806.4
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49.2%
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-9%
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-3%
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Advertising and promotion expenses
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250.3
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13.6%
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297.4
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14.9%
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-16%
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634.9
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11.6%
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717.9
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12.6%
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-12%
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Other
selling and administrative expenses
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348.5
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19.0%
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412.0
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20.6%
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-15%
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1,400.3
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25.7%
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1,547.6
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27.1%
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-10%
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Operating
Income
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262.6
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14.3%
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294.1
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14.7%
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-11%
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7%
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519.2
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9.5%
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540.9
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9.5%
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-4%
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23%
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Interest
expense
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25.0
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1.4%
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22.8
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1.1%
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10%
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95.1
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1.7%
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85.3
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1.5%
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12%
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Interest
(income)
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(1.6)
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-0.1%
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(1.5)
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-0.1%
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8%
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(9.1)
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-0.2%
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(7.2)
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-0.1%
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26%
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Other
non-operating expense (income), net
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0.3
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2.0
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23.5
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(1.1)
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Income Before
Income Taxes
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238.9
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13.0%
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270.8
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13.5%
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-12%
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6%
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409.7
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7.5%
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463.9
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8.1%
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-12%
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19%
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Provision for income taxes
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65.1
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55.6
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91.7
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94.5
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Net
Income
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$
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173.8
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9.5%
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$
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215.2
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10.8%
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-19%
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$
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318.0
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5.8%
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$
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369.4
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6.5%
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-14%
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Net Income Per
Common Share - Basic
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$
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0.51
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$
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0.63
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$
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0.93
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$
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1.08
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Weighted
average number of common shares
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342.7
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|
339.8
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341.5
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|
|
339.2
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Net Income Per
Common Share - Diluted
|
$
|
0.50
|
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$
|
0.63
|
|
|
|
|
|
|
|
$
|
0.92
|
|
|
$
|
1.08
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average number of common and potential common shares
|
|
345.0
|
|
|
|
340.4
|
|
|
|
|
|
|
|
|
344.2
|
|
|
|
339.7
|
|
|
|
|
|
|
MATTEL, INC. AND
SUBSIDIARIES
|
|
|
|
EXHIBIT
II
|
|
|
|
|
|
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
|
|
December
31,
|
|
|
|
2016
|
|
2015
(b)(c)
|
|
(In
millions)
|
|
(Unaudited)
|
|
Assets
|
|
|
|
|
|
Cash and
equivalents
|
$
|
869.5
|
$
|
892.8
|
|
Accounts
receivable, net
|
|
1,115.2
|
|
1,145.1
|
|
Inventories
|
|
613.8
|
|
587.5
|
|
Prepaid
expenses and other current assets
|
|
341.5
|
|
375.7
|
|
Total current
assets
|
|
2,940.0
|
|
3,001.1
|
|
|
|
|
|
|
|
Property, plant, and equipment, net
|
|
771.4
|
|
741.1
|
|
Other
noncurrent assets
|
|
2,779.8
|
|
2,792.9
|
|
Total
Assets
|
$
|
6,491.2
|
$
|
6,535.1
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
Short-term borrowings
|
$
|
192.2
|
$
|
16.9
|
|
Current
portion of long-term debt
|
|
-
|
|
300.0
|
|
Accounts
payable and accrued liabilities
|
|
1,293.7
|
|
1,309.8
|
|
Income
taxes payable
|
|
19.7
|
|
18.8
|
|
Total current
liabilities
|
|
1,505.6
|
|
1,645.5
|
|
|
|
|
|
|
|
Long-term debt
|
|
2,134.3
|
|
1,784.7
|
|
Other
noncurrent liabilities
|
|
446.1
|
|
471.7
|
|
Stockholders' equity
|
|
2,405.2
|
|
2,633.2
|
|
Total Liabilities
and Stockholders' Equity
|
$
|
6,491.2
|
$
|
6,535.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL
BALANCE SHEET AND CASH FLOW DATA (Unaudited)
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
(In millions,
except days and percentage information)
|
|
2016
|
|
2015
(b)
|
|
|
|
|
|
|
|
Key Balance Sheet
Data:
|
|
|
|
|
|
Accounts receivable,
net days of sales outstanding (DSO)
|
|
55
|
|
52
|
|
Total debt
outstanding
|
$
|
2,326.5
|
$
|
2,101.6
|
|
Total debt-to-total
capital ratio
|
|
49.2%
|
|
44.4%
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31,
|
|
(In
millions)
|
|
2016
(a)
|
|
2015
|
|
|
|
|
|
|
|
Condensed Cash
Flow Data:
|
|
|
|
|
|
Cash flows from
operating activities
|
$
|
590
|
$
|
735
|
|
|
|
|
|
|
|
Cash flows (used for)
investing activities
|
|
(307)
|
|
(283)
|
|
|
|
|
|
|
|
Cash flows (used for)
financing activities and other
|
|
(306)
|
|
(531)
|
|
|
|
|
|
|
|
Decrease in cash and
equivalents
|
$
|
(23)
|
$
|
(79)
|
|
|
|
|
|
|
|
(a)
|
Amounts shown are
preliminary estimates. Actual amounts will be reported in Mattel's
Annual Report on Form 10-K for the year ended December 31,
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
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 December 31,
|
|
|
For the Year Ended
December 31,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
|
$ 1,051.4
|
|
$ 1,136.6
|
|
-7
|
%
|
-3
|
%
|
|
$ 3,194.1
|
|
$ 3,464.2
|
|
-8
|
%
|
-5
|
%
|
|
Fisher-Price
Brands
|
607.7
|
|
626.2
|
|
-3
|
|
2
|
|
|
1,888.1
|
|
1,852.2
|
|
2
|
|
6
|
|
|
American Girl
Brands
|
283.9
|
|
271.8
|
|
4
|
|
5
|
|
|
570.8
|
|
572.0
|
|
0
|
|
0
|
|
|
Construction and Arts
& Crafts Brands
|
124.8
|
|
130.2
|
|
-4
|
|
1
|
|
|
377.6
|
|
351.7
|
|
7
|
|
15
|
|
|
Other
|
15.7
|
|
20.1
|
|
|
|
|
|
|
43.1
|
|
43.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Sales
|
$ 2,083.5
|
|
$ 2,184.9
|
|
-5
|
%
|
-1
|
%
|
|
$ 6,073.7
|
|
$ 6,283.6
|
|
-3
|
%
|
0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Worldwide Gross
Sales - Mattel Girls & Boys Brands:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Barbie
|
$
320.5
|
|
$
327.6
|
|
-2
|
%
|
1
|
%
|
|
$
971.8
|
|
$
905.9
|
|
7
|
%
|
9
|
%
|
|
Other
Girls
|
157.2
|
|
268.6
|
|
-41
|
|
-35
|
|
|
461.7
|
|
954.4
|
|
-52
|
|
-47
|
|
|
Wheels
|
306.1
|
|
271.8
|
|
13
|
|
18
|
|
|
885.1
|
|
831.3
|
|
6
|
|
11
|
|
|
Entertainment
|
267.6
|
|
268.6
|
|
0
|
|
2
|
|
|
875.5
|
|
772.6
|
|
13
|
|
16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Sales
|
$ 1,051.4
|
|
$ 1,136.6
|
|
-7
|
%
|
-3
|
%
|
|
$ 3,194.1
|
|
$ 3,464.2
|
|
-8
|
%
|
-5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Non-GAAP to GAAP Financial Measure:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Sales
|
$ 2,083.5
|
|
$ 2,184.9
|
|
|
|
|
|
|
$ 6,073.7
|
|
$ 6,283.6
|
|
|
|
|
|
|
Sales
Adjustments1
|
(249.1)
|
|
(185.2)
|
|
|
|
|
|
|
(617.0)
|
|
(581.0)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Sales
|
$ 1,834.4
|
|
$ 1,999.7
|
|
-8
|
%
|
-6
|
%
|
|
$ 5,456.7
|
|
$ 5,702.6
|
|
-4
|
%
|
-2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 December 31,
|
|
|
For the Year Ended
December 31,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions,
except percentage information)
|
2016
|
|
2015
|
|
|
|
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
% Change
as Reported
|
|
% Change in
Constant
Currency
|
|
|
|
|
|
|
% Change
as Reported
|
|
% Change in
Constant
Currency
|
|
|
North American
Region Gross Sales1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Sales
|
$ 1,250.0
|
|
$ 1,313.5
|
|
-5
|
%
|
-5
|
%
|
|
$ 3,626.1
|
|
$ 3,680.1
|
|
-1
|
%
|
-1
|
%
|
|
Sales
Adjustments
|
(89.4)
|
|
(59.1)
|
|
|
|
|
|
|
(224.2)
|
|
(219.0)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Sales
|
$ 1,160.6
|
|
$ 1,254.4
|
|
-7
|
%
|
-7
|
%
|
|
$ 3,401.9
|
|
$ 3,461.1
|
|
-2
|
%
|
-1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
Region Gross Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Europe
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Sales
|
$
426.4
|
|
$
460.4
|
|
-7
|
%
|
1
|
%
|
|
$ 1,293.3
|
|
$ 1,388.8
|
|
-7
|
%
|
0
|
%
|
|
Sales
Adjustments
|
(94.4)
|
|
(76.9)
|
|
|
|
|
|
|
(230.4)
|
|
(215.6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Sales
|
$
332.0
|
|
$
383.5
|
|
-13
|
%
|
-6
|
%
|
|
$ 1,062.9
|
|
$ 1,173.2
|
|
-9
|
%
|
-3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Latin
America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Sales
|
$
233.2
|
|
$
244.6
|
|
-5
|
%
|
7
|
%
|
|
$
636.5
|
|
$
711.0
|
|
-10
|
%
|
0
|
%
|
|
Sales
Adjustments
|
(35.0)
|
|
(22.7)
|
|
|
|
|
|
|
(84.9)
|
|
(81.4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Sales
|
$
198.2
|
|
$
221.9
|
|
-11
|
%
|
-1
|
%
|
|
$
551.6
|
|
$
629.6
|
|
-12
|
%
|
-3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asia
Pacific
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Sales
|
$
173.9
|
|
$
166.4
|
|
5
|
%
|
6
|
%
|
|
$
517.8
|
|
$
503.7
|
|
3
|
%
|
5
|
%
|
|
Sales
Adjustments
|
(30.3)
|
|
(26.5)
|
|
|
|
|
|
|
(77.5)
|
|
(65.0)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Sales
|
$
143.6
|
|
$
139.9
|
|
3
|
%
|
5
|
%
|
|
$
440.3
|
|
$
438.7
|
|
0
|
%
|
3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
International Region
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Sales
|
$
833.5
|
|
$
871.4
|
|
-4
|
%
|
4
|
%
|
|
$ 2,447.6
|
|
$ 2,603.5
|
|
-6
|
%
|
1
|
%
|
|
Sales
Adjustments
|
(159.7)
|
|
(126.1)
|
|
|
|
|
|
|
(392.8)
|
|
(362.0)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Sales
|
$
673.8
|
|
$
745.3
|
|
-10
|
%
|
-2
|
%
|
|
$ 2,054.8
|
|
$ 2,241.5
|
|
-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 December 31,
|
|
|
For the Year Ended
December 31,
|
(In millions,
except per share and percentage information)
|
|
2016
|
|
2015
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
Other Selling and
Administrative Expenses
|
|
|
|
|
|
|
|
|
|
Other Selling and
Administrative Expenses, As Reported
|
$
|
348.5
|
$
|
412.0
|
|
$
|
1,400.3
|
$
|
1,547.6
|
% of Net
Sales
|
|
19.0%
|
|
20.6%
|
|
|
25.7%
|
|
27.1%
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Integration &
Acquisition Costs (1)
|
|
(0.3)
|
|
(1.3)
|
|
|
(1.7)
|
|
(14.9)
|
Severance and
Restructuring Expenses
|
|
(6.3)
|
|
(10.9)
|
|
|
(39.9)
|
|
(67.8)
|
Other Selling and
Administrative Expenses, As Adjusted
|
$
|
341.9
|
$
|
399.8
|
|
$
|
1,358.7
|
$
|
1,464.9
|
% of Net
Sales
|
|
18.6%
|
|
20.0%
|
|
|
24.9%
|
|
25.7%
|
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
|
|
|
|
|
|
|
|
|
Operating Income, As
Reported
|
$
|
262.6
|
$
|
294.1
|
|
$
|
519.2
|
$
|
540.9
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Integration &
Acquisition Costs (1)
|
|
0.3
|
|
1.3
|
|
|
1.7
|
|
14.9
|
Severance and
Restructuring Expenses
|
|
6.3
|
|
10.9
|
|
|
39.9
|
|
67.8
|
Operating Income, As
Adjusted
|
$
|
269.2
|
$
|
306.3
|
|
$
|
560.8
|
$
|
623.6
|
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share
|
|
|
|
|
|
|
|
|
|
Net Income Per Common
Share, As Reported
|
$
|
0.50
|
$
|
0.63
|
|
$
|
0.92
|
$
|
1.08
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Integration &
Acquisition Costs (1)
|
|
-
|
|
-
|
|
|
-
|
|
0.04
|
Severance and
Restructuring Expenses
|
|
0.02
|
|
0.03
|
|
|
0.12
|
|
0.20
|
Sale of
Assets
|
|
-
|
|
-
|
|
|
(0.01)
|
|
-
|
Venezuela Currency
Devaluation Loss
|
|
-
|
|
-
|
|
|
0.08
|
|
-
|
Tax Effect of
Adjustments (2)
|
|
-
|
|
(0.01)
|
|
|
(0.05)
|
|
(0.05)
|
Net Income Per Common
Share, As Adjusted
|
$
|
0.52
|
$
|
0.65
|
|
$
|
1.06
|
$
|
1.27
|
|
|
|
|
|
|
|
|
|
|
(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.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/mattel-reports-full-year-and-fourth-quarter-2016-financial-results-and-declares-quarterly-dividend-300396820.html
SOURCE Mattel, Inc.