EL SEGUNDO, Calif.,
July 27, 2017 /PRNewswire/ --
Second Quarter Highlights1
- Worldwide net sales up 2% as reported, and up 3% in constant
currency; worldwide gross sales up 1% as reported, and up 2% in
constant currency.
- Strong International performance with net sales up 8%, and
gross sales up 6% as reported, offset by lower sales in
North America.
- Year-to-date POS remains strong across key power brands
including Barbie®, Hot Wheels® and Fisher-Price®.2
- Reported loss per share of $0.16,
and adjusted loss per share of $0.14.
- On June 14, 2017, Board declared
a 2017 third quarter cash dividend of $0.15 per share.
Mattel, Inc. (NASDAQ: MAT) today reported second quarter 2017
financial results.
"Our key power brands—Barbie, Hot Wheels and
Fisher-Price—continued to show strength at retail in the second
quarter," said Margo Georgiadis, CEO
of Mattel. "In addition, we are moving quickly to activate the
strategy that we outlined in June to future-proof Mattel and
deliver enhanced, sustainable growth over the medium-term."
For the second quarter of 2017, net sales were up 2% as
reported, and up 3% in constant currency, versus the prior year's
second quarter. Gross sales were up 1% as reported, and up 2% in
constant currency. Reported operating loss was $48.7 million, and adjusted operating loss was
$40.1 million. Reported loss per
share was $0.16, and adjusted loss
per share was $0.14.
POS Summary2
Globally, consumer takeaway
for Barbie, Hot Wheels and Fisher-Price continued to show strength,
with each up double digits in the second quarter, and high-single
digits year-to-date.
Financial Overview
For the second quarter, net sales
in the North American Region decreased by 3% as reported and in
constant currency, versus the prior year's second quarter; gross
sales in the North American Region decreased by 2% as reported and
in constant currency. In the International Region, net sales
increased by 8% as reported, and by 10% in constant currency; gross
sales in the International Region increased by 6% as reported, and
by 8% in constant currency. Gross margin for the quarter decreased
430 basis points, driven mainly by higher royalty expense,
unfavorable product mix, lower licensing income and higher product
costs. Reported other selling and administrative expenses increased
by $2.4 million; adjusted other
selling and administrative expenses for the quarter increased
$11.7 million, reflecting higher
employee-related costs, costs associated with the new American
Girl® flagship store in New York
City and investments in China. Reported operating loss for the quarter
was $48.7 million, compared to the
prior year's second quarter reported operating loss of $11.7 million. Adjusted operating loss for the
quarter was $40.1 million, compared
to the prior year's second quarter adjusted operating income of
$6.2 million.
For the six months ended June 30,
2017, net cash flows used for operating activities were
approximately $549 million, an
increase of approximately $308
million versus the same period in the prior year, primarily
driven by higher working capital usage and a higher net loss. Cash
flows used for investing activities were approximately $106 million, a decrease of approximately
$18 million versus the same period in
the prior year, primarily driven by payments related to Fuhu and
Sproutling in 2016 and changes in foreign currency forward exchange
contracts, partially offset by higher capital spending. Cash flows
provided by financing activities and other were approximately
$61 million, compared to cash flows
used for financing activities and other of approximately
$210 million in the same period in
the prior year, primarily driven by higher short-term
borrowings.
As of June 30, 2017, the Company's
debt-to-total capital ratio was 56.1%.
Capital Deployment
On June 14,
2017, the Board of Directors declared a 2017 third quarter
cash dividend of $0.15 per share,
compared to $0.38 per share in the
third quarter of 2016. The dividend will be payable on September 15, 2017, to stockholders of record on
August 23, 2017.
Sales by Brand
Mattel Girls and Boys Brands
For the second quarter, worldwide gross sales for Mattel Girls
& Boys Brands were $609.9
million, up 10% as reported, and up 11% in constant
currency, versus the prior year's second quarter. Worldwide gross
sales for the Barbie brand were down 5% as reported, and down 4% in
constant currency, versus the prior year's second quarter,
primarily driven by lower licensing income. Worldwide gross sales
for Other Girls brands were down 28% as reported and in constant
currency, versus the prior year's second quarter, primarily driven
by declines in Monster High® and Ever After High™. Worldwide gross
sales for the Wheels category were down 6% as reported, and down 5%
in constant currency, versus the prior year's second quarter.
Worldwide gross sales for the Entertainment business were up 58% as
reported, and up 59% in constant currency, versus the prior year's
second quarter, primarily driven by sales of Cars® 3
products.
Fisher-Price Brands
For the second quarter, worldwide gross sales for Fisher-Price
Brands, which includes the Fisher-Price Core, Fisher-Price Friends
and Power Wheels® brands, were $335.0
million, down 3% as reported, and down 2% in constant
currency, versus the prior year's second quarter.
American Girl Brands
For the second quarter,
worldwide gross sales for American Girl Brands®, which offers
American Girl-branded products directly to consumers, were
$64.0 million, down 6% as reported
and in constant currency, versus the prior year's second
quarter.
Construction and Arts & Crafts Brands
For the
second quarter, worldwide gross sales for Construction and Arts
& Crafts Brands, which includes the MEGA BLOKS® and RoseArt®
brands, were $53.0 million, down 27%
as reported, and down 26% in constant currency, versus the prior
year's second quarter, primarily driven by declines in MEGA BLOKS®
licensed products.
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 2017 second 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 Thursday, August 3, 2017, and may be accessed by
dialing +1-404-537-3406. The passcode is 47074747.
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, 2016, and Mattel's
Quarterly Reports on Form 10-Q for fiscal year 2017, 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 include gross sales,
adjusted other selling and administrative expenses, adjusted
operating income (loss), adjusted earnings (loss) 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. Mattel believes that the
disclosure of non-GAAP financial measures provides useful
supplemental information to investors to be able to better evaluate
ongoing business performance and certain components of the
Company's results. 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. Since sales adjustments are determined by customer
rather than at the brand level, Mattel believes that the disclosure
of gross sales by brand is useful supplemental information for
investors to be able to assess the performance of its underlying
brands (e.g., Barbie) and also enhances their ability to compare
sales trends over time.
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, which are not
part of Mattel's core business. Adjusted other selling and
administrative expenses is presented to provide additional
perspective on underlying trends in Mattel's core other selling and
administrative expenses, which Mattel believes is useful
supplemental information for investors to be able to gauge and
compare Mattel's current business performance from one period to
another.
Adjusted operating income (loss)
Adjusted operating
income (loss) represents Mattel's reported operating loss, adjusted
to exclude the impact of expenses associated with the acquisition
and integration of an acquired business and restructuring and
restructuring-related expenses, which are not part of Mattel's core
business. Adjusted operating income (loss) is presented to provide
additional perspective on underlying trends in Mattel's core
operating results, which Mattel believes is useful supplemental
information for investors to be able to gauge and compare Mattel's
current business performance from one period to another.
Adjusted earnings (loss) per share
Adjusted earnings
(loss) per share represents Mattel's reported diluted earnings
(loss) per common share, adjusted to exclude the impact of expenses
associated with the acquisition and integration of an acquired
business, restructuring and restructuring-related expenses, sale of
non-core assets and currency devaluations, which are not part of
Mattel's core business. 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
(loss) per share is presented to provide additional perspective on
underlying trends in Mattel's core business. Mattel believes it is
useful supplemental information for investors to gauge and compare
Mattel's current earnings results from one period to another.
Adjusted earnings (loss) 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 considers
whether any changes to the constant currency rates are appropriate
at the beginning of each year. The exchange rates used for
these constant currency calculations are generally based on prior
year actual exchange rates. 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. Mattel believes that the disclosure of the percentage
change in constant currency is useful supplemental information for
investors to be able to gauge Mattel's current business performance
and the longer term strength of its overall business since foreign
currency changes could potentially mask underlying sales trends.
The disclosure of the percentage change in constant currency
enhances investor's ability to compare financial results from one
period to another.
About Mattel
Mattel is a global learning, development
and play company that inspires the next generation of kids to shape
a brighter tomorrow. Through our portfolio of iconic consumer
brands, including American Girl®, Barbie®, Fisher-Price®, Hot
Wheels® and Thomas & Friends™, we create systems of play,
content and experiences that help kids unlock their full potential.
Mattel also creates inspiring and innovative products in
collaboration with leading entertainment and technology companies
as well as other partners. With a global workforce of approximately
32,000 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
Whitney
Steininger
310-252-2703
whitney.steininger@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 (loss), adjusted earnings (loss) per
share and constant currency.
2 Mattel internal analysis, at wholesale; excludes
American Girl.
MATTEL, INC. AND
SUBSIDIARIES
|
EXHIBIT
I
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CONSOLIDATED
STATEMENTS OF OPERATIONS (Unaudited)
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For the Three
Months Ended June 30,
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For the Six Months
Ended June 30,
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Yr /
Yr %
Change as Reported
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Yr /
Yr %
Change in
Constant Currency
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Yr /
Yr %
Change as Reported
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Yr /
Yr %
Change in
Constant Currency
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(In millions,
except per share and
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2017
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2016
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2017
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2016
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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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$
Amt
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% Net
Sales
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$
Amt
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% Net
Sales
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Net
Sales
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$
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974.5
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$
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957.3
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2%
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3%
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|
$
|
1,710.1
|
|
|
$
|
1,826.7
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-6%
|
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-6%
|
Cost of
sales
|
|
574.8
|
|
59.0%
|
|
523.7
|
|
54.7%
|
|
10%
|
|
|
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1,031.6
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60.3%
|
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1,004.5
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55.0%
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3%
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Gross
Profit
|
|
399.7
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|
41.0%
|
|
433.6
|
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45.3%
|
|
-8%
|
|
-7%
|
|
|
678.5
|
|
39.7%
|
|
822.2
|
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45.0%
|
|
-17%
|
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-16%
|
Advertising and promotion expenses
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|
95.5
|
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9.8%
|
|
94.8
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|
9.9%
|
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1%
|
|
|
|
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169.1
|
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9.9%
|
|
181.7
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9.9%
|
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-7%
|
|
|
Other
selling and administrative expenses
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|
352.9
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36.2%
|
|
350.5
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36.6%
|
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1%
|
|
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|
|
685.1
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40.1%
|
|
701.3
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38.4%
|
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-2%
|
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Operating
Loss
|
|
(48.7)
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|
-5.0%
|
|
(11.7)
|
|
-1.2%
|
|
317%
|
|
310%
|
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|
(175.7)
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|
-10.3%
|
|
(60.8)
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-3.3%
|
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189%
|
|
175%
|
Interest
expense
|
|
21.9
|
|
2.2%
|
|
22.6
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2.4%
|
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-3%
|
|
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|
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43.9
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2.6%
|
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45.1
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2.5%
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-3%
|
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Interest
(income)
|
|
(2.3)
|
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-0.2%
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(2.7)
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-0.3%
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-15%
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(4.8)
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-0.3%
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(5.1)
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-0.3%
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-6%
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Other
non-operating expense (income) , net
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5.4
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(1.8)
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4.6
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22.4
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Loss Before Income
Taxes
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|
(73.7)
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-7.6%
|
|
(29.8)
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-3.1%
|
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148%
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129%
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(219.4)
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-12.8%
|
|
(123.2)
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-6.7%
|
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78%
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68%
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Benefit
from income taxes
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|
(17.6)
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|
|
(10.7)
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(50.1)
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(31.1)
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Net
Loss
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$
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(56.1)
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|
-5.8%
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$
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(19.1)
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-2.0%
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193%
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|
|
|
$
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(169.3)
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-9.9%
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$
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(92.1)
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-5.0%
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84%
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Net Loss Per
Common Share - Basic
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$
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(0.16)
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$
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(0.06)
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$
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(0.49)
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$
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(0.27)
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Weighted
average number of common shares
|
|
343.1
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|
|
340.9
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|
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|
343.0
|
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|
|
340.7
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|
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|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Loss Per
Common Share - Diluted
|
$
|
(0.16)
|
|
|
$
|
(0.06)
|
|
|
|
|
|
|
|
$
|
(0.49)
|
|
|
$
|
(0.27)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average number of common and potential common
shares
|
|
343.1
|
|
|
|
340.9
|
|
|
|
|
|
|
|
|
343.0
|
|
|
|
340.7
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|
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MATTEL, INC. AND
SUBSIDIARIES
|
EXHIBIT
II
|
|
|
|
|
|
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June
30,
|
|
December
31,
|
|
|
2017
|
|
2016
|
|
2016
|
(In
millions)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
Cash and
equivalents
|
$
|
275.4
|
$
|
317.8
|
$
|
869.5
|
Accounts
receivable, net
|
|
917.7
|
|
794.6
|
|
1,115.2
|
Inventories
|
|
935.9
|
|
891.8
|
|
613.8
|
Prepaid
expenses and other current assets
|
|
373.6
|
|
361.7
|
|
341.5
|
Total current
assets
|
|
2,502.6
|
|
2,365.9
|
|
2,940.0
|
|
|
|
|
|
|
|
Property, plant, and equipment, net
|
|
807.8
|
|
736.5
|
|
774.0
|
Other
noncurrent assets
|
|
2,857.5
|
|
2,829.2
|
|
2,779.8
|
Total
Assets
|
$
|
6,167.9
|
$
|
5,931.6
|
$
|
6,493.8
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
Short-term borrowings
|
$
|
506.8
|
$
|
67.0
|
$
|
192.2
|
Current
portion of long-term debt
|
|
250.0
|
|
300.0
|
|
-
|
Accounts
payable and accrued liabilities
|
|
1,001.3
|
|
997.6
|
|
1,293.7
|
Income
taxes payable
|
|
4.4
|
|
8.6
|
|
19.7
|
Total current
liabilities
|
|
1,762.5
|
|
1,373.2
|
|
1,505.6
|
|
|
|
|
|
|
|
Long-term debt
|
|
1,885.7
|
|
1,786.1
|
|
2,134.3
|
Other
noncurrent liabilities
|
|
452.3
|
|
462.0
|
|
446.1
|
Stockholders' equity
|
|
2,067.4
|
|
2,310.3
|
|
2,407.8
|
Total Liabilities
and Stockholders' Equity
|
$
|
6,167.9
|
$
|
5,931.6
|
$
|
6,493.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL
BALANCE SHEET AND CASH FLOW DATA (Unaudited)
|
|
|
|
|
|
|
|
|
|
June
30,
|
|
|
(In millions,
except days and percentage information)
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
Key Balance Sheet
Data:
|
|
|
|
|
|
|
Accounts receivable,
net days of sales outstanding (DSO)
|
|
85
|
|
75
|
|
|
Total debt
outstanding
|
|
$ 2,642.5
|
|
$ 2,153.1
|
|
|
Total debt-to-total
capital ratio
|
|
56.1%
|
|
48.2%
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30,
|
|
|
(In
millions)
|
|
2017
(a)
|
|
2016
|
|
|
|
|
|
|
|
|
|
Condensed Cash
Flow Data:
|
|
|
|
|
|
|
Cash flows (used for)
operating activities
|
|
$
(549)
|
|
$
(241)
|
|
|
|
|
|
|
|
|
|
Cash flows (used for)
investing activities
|
|
(106)
|
|
(124)
|
|
|
|
|
|
|
|
|
|
Cash flows provided
by (used for) financing activities and other
|
|
61
|
|
(210)
|
|
|
|
|
|
|
|
|
|
Decrease in cash and
equivalents
|
|
$
(594)
|
|
$
(575)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Amounts shown are
preliminary estimates. Actual amounts will be reported in Mattel's
Quarterly Report on Form 10-Q for the quarter ended June 30, 2017.
|
MATTEL, INC. AND
SUBSIDIARIES
|
EXHIBIT
III
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WORLDWIDE GROSS
SALES INFORMATION (Unaudited)
|
RECONCILIATION OF
GAAP AND NON-GAAP FINANCIAL MEASURES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended June 30,
|
|
|
For the Six Months
Ended June 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions,
except percentage information)
|
2017
|
|
2016
|
|
|
|
|
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
% Change
as Reported
|
|
% Change in
Constant
Currency
|
|
|
|
|
|
|
% Change
as Reported
|
|
% Change in
Constant
Currency
|
|
|
Reconciliation of
Non-GAAP to GAAP Financial Measure:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Sales
|
$
974.5
|
|
$
957.3
|
|
2
|
%
|
3
|
%
|
|
$
1,710.1
|
|
$
1,826.7
|
|
-6
|
%
|
-6
|
%
|
|
Sales
Adjustments1
|
94.0
|
|
95.5
|
|
|
|
|
|
|
173.0
|
|
188.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Sales
|
$
1,068.5
|
|
$
1,052.8
|
|
1
|
%
|
2
|
%
|
|
$
1,883.1
|
|
$
2,014.9
|
|
-7
|
%
|
-6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Worldwide Gross
Sales by Brand:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mattel Girls &
Boys Brands
|
$
609.9
|
|
$
553.7
|
|
10
|
%
|
11
|
%
|
|
$
1,051.0
|
|
$
1,081.6
|
|
-3
|
%
|
-2
|
%
|
|
Fisher-Price
Brands
|
335.0
|
|
346.3
|
|
-3
|
|
-2
|
|
|
581.9
|
|
618.9
|
|
-6
|
|
-5
|
|
|
American Girl
Brands
|
64.0
|
|
68.1
|
|
-6
|
|
-6
|
|
|
146.2
|
|
161.4
|
|
-9
|
|
-9
|
|
|
Construction and Arts
& Crafts Brands
|
53.0
|
|
72.3
|
|
-27
|
|
-26
|
|
|
91.5
|
|
134.2
|
|
-32
|
|
-31
|
|
|
Other
|
6.6
|
|
12.4
|
|
|
|
|
|
|
12.5
|
|
18.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Sales
|
$
1,068.5
|
|
$
1,052.8
|
|
1
|
%
|
2
|
%
|
|
$
1,883.1
|
|
$
2,014.9
|
|
-7
|
%
|
-6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Worldwide Gross
Sales - Mattel Girls & Boys Brands:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Barbie
|
$
152.2
|
|
$
160.5
|
|
-5
|
%
|
-4
|
%
|
|
$
275.6
|
|
$
301.7
|
|
-9
|
%
|
-8
|
%
|
|
Other
Girls
|
50.6
|
|
70.4
|
|
-28
|
|
-28
|
|
|
98.4
|
|
142.7
|
|
-31
|
|
-31
|
|
|
Wheels
|
153.2
|
|
162.2
|
|
-6
|
|
-5
|
|
|
293.0
|
|
297.2
|
|
-1
|
|
-1
|
|
|
Entertainment
|
253.9
|
|
160.6
|
|
58
|
|
59
|
|
|
384.0
|
|
340.0
|
|
13
|
|
14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Sales
|
$
609.9
|
|
$
553.7
|
|
10
|
%
|
11
|
%
|
|
$
1,051.0
|
|
$
1,081.6
|
|
-3
|
%
|
-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 June 30,
|
|
|
For the Six Months
Ended June 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions,
except percentage information)
|
2017
|
|
2016
|
|
|
|
|
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
% Change
as Reported
|
|
% Change in
Constant
Currency
|
|
|
|
|
|
|
% Change
as Reported
|
|
% Change in
Constant
Currency
|
|
|
Total
International Region
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Sales
|
$ 428.7
|
|
$ 395.8
|
|
8
|
%
|
10
|
%
|
|
$ 740.2
|
|
$ 715.1
|
|
4
|
%
|
5
|
%
|
|
Sales
Adjustments
|
65.0
|
|
69.4
|
|
|
|
|
|
|
119.8
|
|
124.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Sales
|
$ 493.7
|
|
$ 465.2
|
|
6
|
%
|
8
|
%
|
|
$ 860.0
|
|
$ 840.0
|
|
2
|
%
|
4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
Region Gross Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Europe
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales
|
$ 188.4
|
|
$ 183.6
|
|
3
|
%
|
6
|
%
|
|
$ 362.4
|
|
$ 376.3
|
|
-4
|
%
|
-1
|
%
|
|
Sales
Adjustments
|
32.8
|
|
33.4
|
|
|
|
|
|
|
66.3
|
|
72.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Sales
|
$ 221.2
|
|
$ 217.0
|
|
2
|
%
|
5
|
%
|
|
$ 428.7
|
|
$ 448.3
|
|
-4
|
%
|
-1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Latin
America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales
|
$ 118.1
|
|
$ 106.9
|
|
11
|
%
|
10
|
%
|
|
$ 177.6
|
|
$ 167.1
|
|
6
|
%
|
5
|
%
|
|
Sales
Adjustments
|
16.2
|
|
17.4
|
|
|
|
|
|
|
26.5
|
|
24.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Sales
|
$ 134.3
|
|
$ 124.3
|
|
8
|
%
|
7
|
%
|
|
$ 204.1
|
|
$ 191.5
|
|
7
|
%
|
5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asia
Pacific
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales
|
$ 122.2
|
|
$ 105.3
|
|
16
|
%
|
18
|
%
|
|
$ 200.2
|
|
$ 171.7
|
|
17
|
%
|
19
|
%
|
|
Sales
Adjustments
|
16.0
|
|
18.6
|
|
|
|
|
|
|
27.0
|
|
28.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Sales
|
$ 138.2
|
|
$ 123.9
|
|
11
|
%
|
14
|
%
|
|
$ 227.2
|
|
$ 200.2
|
|
14
|
%
|
16
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
Region Gross Sales by Brand:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mattel Girls &
Boys Brands
|
$ 325.9
|
|
$ 282.2
|
|
16
|
%
|
17
|
%
|
|
$ 564.3
|
|
525.3
|
|
7
|
%
|
9
|
%
|
|
Fisher-Price
Brands
|
145.9
|
|
152.9
|
|
-5
|
|
-2
|
|
|
259.7
|
|
265.3
|
|
-2
|
|
1
|
|
|
Construction and Arts
& Crafts Brands
|
21.9
|
|
27.8
|
|
-21
|
|
-20
|
|
|
36.0
|
|
47.0
|
|
-23
|
|
-22
|
|
|
Other
|
-
|
|
2.3
|
|
|
|
|
|
|
-
|
|
2.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Sales
|
$ 493.7
|
|
$ 465.2
|
|
6
|
%
|
8
|
%
|
|
$ 860.0
|
|
$ 840.0
|
|
2
|
%
|
4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MATTEL, INC. AND
SUBSIDIARIES
|
EXHIBIT
V
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS SALES
INFORMATION (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended June 30,
|
|
For the Six Months
Ended June 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions,
except percentage information)
|
2017
|
|
2016
|
|
|
|
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
% Change
as Reported
|
|
% Change in
Constant
Currency
|
|
|
|
|
|
% Change
as Reported
|
|
% Change in
Constant
Currency
|
|
|
North American
Region Gross Sales1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales
|
$ 545.8
|
|
$ 561.5
|
|
-3
|
%
|
-3
|
%
|
$
969.9
|
|
$ 1,111.6
|
|
-13
|
%
|
-13
|
%
|
|
Sales
Adjustments2
|
29.0
|
|
26.1
|
|
|
|
|
|
53.2
|
|
63.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Sales
|
$ 574.8
|
|
$ 587.6
|
|
-2
|
%
|
-2
|
%
|
$ 1,023.1
|
|
$ 1,174.9
|
|
-13
|
%
|
-13
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North American
Region Gross Sales by Brand:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mattel Girls &
Boys Brands
|
$ 284.0
|
|
$ 271.5
|
|
5
|
%
|
5
|
%
|
$
486.7
|
|
$
556.3
|
|
-13
|
%
|
-12
|
%
|
|
Fisher-Price
Brands
|
189.1
|
|
193.4
|
|
-2
|
|
-2
|
|
322.2
|
|
353.6
|
|
-9
|
|
-9
|
|
|
American Girl
Brands
|
64.0
|
|
68.1
|
|
-6
|
|
-6
|
|
146.2
|
|
161.4
|
|
-9
|
|
-9
|
|
|
Construction and Arts
& Crafts Brands
|
31.1
|
|
44.5
|
|
-30
|
|
-30
|
|
55.5
|
|
87.2
|
|
-36
|
|
-37
|
|
|
Other
|
6.6
|
|
10.1
|
|
|
|
|
|
12.5
|
|
16.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Sales
|
$ 574.8
|
|
$ 587.6
|
|
-2
|
%
|
-2
|
%
|
$ 1,023.1
|
|
$ 1,174.9
|
|
-13
|
%
|
-13
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
Consists of U.S.,
Canada, and American Girl.
|
2
|
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
VI
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL
FINANCIAL INFORMATION (Unaudited)
|
RECONCILIATION OF
GAAP AND NON-GAAP FINANCIAL MEASURES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended June 30,
|
|
|
For the Six Months
Ended June 30,
|
(In millions,
except per share and percentage information)
|
|
2017
|
|
2016
|
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
Other Selling and
Administrative Expenses
|
|
|
|
|
|
|
|
|
|
Other Selling and
Administrative Expenses, As Reported
|
$
|
352.9
|
$
|
350.5
|
|
$
|
685.1
|
$
|
701.3
|
% of Net
Sales
|
|
36.2%
|
|
36.6%
|
|
|
40.1%
|
|
38.4%
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Non-recurring
Executive Compensation
|
|
(2.8)
|
|
-
|
|
|
(4.7)
|
|
-
|
Integration &
Acquisition Costs1
|
|
-
|
|
(0.5)
|
|
|
-
|
|
(1.1)
|
Severance and
Restructuring Expenses
|
|
(5.8)
|
|
(17.4)
|
|
|
(8.8)
|
|
(27.2)
|
Other Selling and
Administrative Expenses, As Adjusted
|
$
|
344.3
|
$
|
332.6
|
|
$
|
671.6
|
$
|
673.0
|
% of Net
Sales
|
|
35.3%
|
|
34.7%
|
|
|
39.3%
|
|
36.8%
|
|
|
|
|
|
|
|
|
|
|
Operating
Loss
|
|
|
|
|
|
|
|
|
|
Operating Loss, As
Reported
|
$
|
(48.7)
|
$
|
(11.7)
|
|
$
|
(175.7)
|
$
|
(60.8)
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Non-recurring
Executive Compensation
|
|
2.8
|
|
-
|
|
|
4.7
|
|
-
|
Integration &
Acquisition Costs1
|
|
-
|
|
0.5
|
|
|
-
|
|
1.1
|
Severance and
Restructuring Expenses
|
|
5.8
|
|
17.4
|
|
|
8.8
|
|
27.2
|
Operating Loss, As
Adjusted
|
$
|
(40.1)
|
$
|
6.2
|
|
$
|
(162.2)
|
$
|
(32.5)
|
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share
|
|
|
|
|
|
|
|
|
|
Net Loss Per Common
Share, As Reported
|
$
|
(0.16)
|
$
|
(0.06)
|
|
$
|
(0.49)
|
$
|
(0.27)
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Non-recurring
Executive Compensation
|
|
0.01
|
|
-
|
|
|
0.01
|
|
-
|
Severance and
Restructuring Expenses
|
|
0.02
|
|
0.05
|
|
|
0.03
|
|
0.08
|
Sale of
Assets
|
|
-
|
|
-
|
|
|
-
|
|
(0.01)
|
Venezuela Currency
Devaluation Loss
|
|
-
|
|
-
|
|
|
-
|
|
0.07
|
Tax Effect of
Adjustments2
|
|
(0.01)
|
|
(0.01)
|
|
|
(0.01)
|
|
(0.03)
|
Net Loss Per Common
Share, As Adjusted
|
$
|
(0.14)
|
$
|
(0.02)
|
|
$
|
(0.46)
|
$
|
(0.16)
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
Includes Integration
& Acquisition Costs for Fuhu and Sproutling in 2016.
|
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.
|
View original content with
multimedia:http://www.prnewswire.com/news-releases/mattel-reports-second-quarter-2017-financial-results-300494991.html
SOURCE Mattel, Inc.