- Second quarter Net Sales of $732 million, down 15% as
reported, and down 13% in constant currency, versus prior
year.
- Gross Sales of $815 million, down 15% as reported, and down
13% in constant currency.
- Global POS1 up high-single-digits versus prior year, a
significant improvement compared to the first quarter.
- Reported Gross Margin of 43.8%, an improvement of 410 basis
points; Adjusted Gross Margin of 44.0%, an improvement of 410 basis
points.
- Reported Operating Loss of $46 million, compared to a prior
year loss of $51 million; Adjusted Operating Loss of $26 million,
compared to a prior year loss of $30 million.
Mattel, Inc. (NASDAQ: MAT) today reported second quarter 2020
financial results.
Ynon Kreiz, Chairman and CEO of Mattel said: “We entered the
second quarter with extensive retail closures and distribution
challenges and had to absorb a full quarter of COVID-19 impact, but
we demonstrated our execution capabilities and the resilience of
our brands. While revenues were down, they exceeded our
expectations, particularly in North America, Barbie, and Games,
where we saw sales increases. Total company POS improved
significantly and was positive in the quarter, and e-commerce
continued to grow strongly in all regions.”
Mr. Kreiz continued: “Based on the momentum we are seeing, the
positive POS trends, and low retail inventories exiting the
quarter, we are planning for strong demand for our products in
expectation of an improved revenue performance in the second half
compared to the first half, including the all-important holiday
season.”
Joseph Euteneuer, CFO of Mattel said: “The work we have done to
reshape our operations over the past two years has improved our
cost structure, financial flexibility and liquidity. We continued
to see significant improvement in Gross Margin with our highest
second quarter Gross Margin since 2016. We are encouraged by the
significant progress we have made to reshape our organization,
restore profitability and position the company for sustainable
growth.”
For the second quarter, Net Sales were down 15% as reported, and
down 13% in constant currency, versus the prior year’s second
quarter. Gross Sales were down 15% as reported, and down 13% in
constant currency. Reported Operating Loss was $46.1 million,
compared to a prior year loss of $51.4 million, and Adjusted
Operating Loss was $25.6 million, compared to a prior year loss of
$30.4 million. Reported Loss Per Share was $0.31, compared to a
prior year loss per share of $0.31, and Adjusted Loss Per Share was
$0.26, compared to a prior year loss per share of $0.25.
For the first six months of the year, Net Sales were down 14% as
reported, and down 13% in constant currency, versus the prior
year’s first six months. Gross Sales were down 15% as reported, and
down 13% in constant currency. Reported Operating Loss was $196.0
million, compared to a prior year loss of $178.5 million, and
Adjusted Operating Loss was $158.6 million, compared to a prior
year loss of $126.9 million. Reported Loss Per Share was $0.92,
compared to a prior year loss per share of $0.82, and Adjusted Loss
Per Share was $0.82, compared to a prior year loss per share of
$0.67.
______________________________ 1 Mattel internal analysis, at
wholesale; excludes American Girl
COVID-19 Business Update
Mattel’s top priority has been to protect the health and safety
of our people and at the same time mitigate the disruption to the
business. Regional performance for the quarter continued to be
directly impacted by retail closures and local restrictions. Our
supply chain also continued to perform well despite temporary
closures of certain manufacturing and distribution facilities early
in the quarter. Currently, all of our factories are open with
minimal disruption to operations, as we enter the peak production
season. Mattel will continue to benefit from cost savings related
to the Structural Simplification and Capital Light programs and
from additional actions taken in 2020 in response to COVID-19.
Liquidity is expected to be sufficient to effectively manage
through the disruption and to continue to execute Mattel’s
strategy.
Financial Overview
For the second quarter, Net Sales in the North America segment
increased 2% as reported and in constant currency, versus the prior
year’s second quarter.
Gross Sales in the North America segment increased 3% as
reported and in constant currency, primarily driven by growth in
Dolls (including Barbie®, partially offset by other owned and
partner brands) and Action Figures, Building Sets, Games, and Other
(including Star Wars™: The Child plush and card games, including
UNO®, partially offset by Toy Story 4). This was partially offset
by declines in Vehicles (including lower sales of CARS®, Matchbox®
and Hot Wheels®) and Infant, Toddler and Preschool (including
Fisher-Price and Thomas & Friends, partially offset by Power
Wheels®).
Net Sales in the International segment decreased 33% as
reported, and 29% in constant currency.
Gross Sales in the International segment decreased 33% as
reported, and 28% in constant currency, driven by declines in
Vehicles (including Hot Wheels and CARS), Infant, Toddler, and
Preschool (including Fisher-Price and Thomas & Friends and
Fisher-Price Friends), Action Figures, Building Sets, Games, and
Other (including Toy Story 4 and MEGA®, partially offset by card
games, including UNO) and Dolls (including Barbie, Enchantimals™,
and Polly Pocket®).
Net Sales in the American Girl segment decreased 16% as reported
and in constant currency. Gross Sales in the American Girl segment
decreased 16% as reported and in constant currency, primarily
driven by lower sales in proprietary retail channels, partially
offset by higher direct-to-consumer sales.
Reported Gross Margin increased to 43.8%, versus 39.7% in the
prior year’s second quarter, and Adjusted Gross Margin increased to
44.0%, versus 39.9%. The increase in Reported and Adjusted Gross
Margin was primarily driven by the incremental realized savings
from cost savings programs and a decrease in royalty expense,
partially offset by the unfavorable impact of lower volumes.
Reported Other Selling and Administrative Expenses decreased by
$1.5 million, to $306.8 million, relatively flat versus the prior
year’s second quarter. Adjusted Other Selling and Administrative
Expenses decreased by $1.8 million, or 1%, to $287.7 million. The
decrease in Reported and Adjusted Other Selling and Administrative
Expenses was primarily driven by the incremental benefit of
Structural Simplification savings, partially offset by higher
incentive compensation expense.
For the six months ended June 30, 2020, Cash Flows Used for
Operating Activities increased by $63 million to $463 million,
versus the prior year’s first six months, primarily driven by a
higher net loss, excluding the impact of non-cash charges. Cash
Flows Used for Investing Activities increased by $37 million to $81
million, primarily driven by payments for foreign currency forward
exchange contracts and higher capital spending. Cash Flows Provided
by Financing Activities and Other increased by $332 million to $375
million, primarily driven by net proceeds from short-term
borrowings of $400 million in the first half of 2020.
Sales by Categories
For the second quarter, Worldwide Gross Sales for Dolls were
$261.0 million, down 5% as reported, and down 2% in constant
currency, versus the prior year’s second quarter, primarily driven
by declines in Enchantimals, Polly Pocket, and American Girl,
partially offset by growth in Barbie.
Worldwide Gross Sales for Infant, Toddler, and Preschool were
$199.8 million, down 21% as reported, and down 19% in constant
currency, primarily driven by declines in Fisher-Price and Thomas
& Friends.
Worldwide Gross Sales for Vehicles were $158.7 million, down 26%
as reported, and down 23% in constant currency, primarily driven by
declines in Hot Wheels and CARS.
Worldwide Gross Sales for Action Figures, Building Sets, Games,
and Other were $195.0 million, down 12% as reported, and down 11%
in constant currency, primarily driven by declines in Toy Story 4,
post its movie launch year, and MEGA, partially offset by card
games, including UNO and Star Wars: The Child plush.
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 second
quarter financial results. The conference call will be webcast on
Mattel's Investor Relations website, https://investors.mattel.com/.
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 Mattel's
Investor Relations 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 8:30 p.m. Eastern time the evening of the call until Thursday,
July 30, 2020 and may be accessed by dialing +1-404-537-3406. The
passcode is 3190108.
Forward-Looking Statements
This press release contains a number of forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements can be identified by
the fact that they do not relate strictly to historical or current
facts. The use of words such as “anticipates,” “expects,”
“intends,” “plans,” “confident that” and “believes,” among others,
generally identify forward-looking statements. These
forward-looking statements are based on currently available
operating, financial, economic and other information and
assumptions, 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, and are
currently, or in the future could be, amplified by the COVID-19
pandemic. Specific factors that might cause such a difference
include, but are not limited to: (i) potential impacts of the
COVID-19 pandemic on our business operations, financial results and
financial position and on the global economy, including its impact
on our sales; (ii) Mattel’s ability to design, develop, produce,
manufacture, source and ship products on a timely and
cost-effective basis, as well as interest in and purchase of those
products by retail customers and consumers in quantities and at
prices that will be sufficient to profitably recover Mattel’s
costs; (iii) downturns in economic conditions affecting Mattel’s
markets which can negatively impact retail customers and consumers,
and which can result in lower employment levels, lower consumer
disposable income and spending, including lower spending on
purchases of Mattel’s products; (iv) other factors which can lower
discretionary consumer spending, such as higher costs for fuel and
food, drops in the value of homes or other consumer assets, and
high levels of consumer debt; (v) potential difficulties or delays
Mattel may experience in implementing cost savings and efficiency
enhancing initiatives; (vi) other economic and public health
conditions or regulatory changes in the markets in which Mattel and
its customers and suppliers operate, which could create delays or
increase Mattel’s costs, such as higher commodity prices, labor
costs or transportation costs, or outbreaks of disease; (vii)
currency fluctuations, including movements in foreign exchange
rates, which can lower Mattel’s net revenues and earnings, and
significantly impact Mattel’s costs; (viii) the concentration of
Mattel’s customers, potentially increasing the negative impact to
Mattel of difficulties experienced by any of Mattel’s customers, or
changes in their purchasing or selling patterns; (ix) the future
willingness of licensors of entertainment properties for which
Mattel currently has licenses or would seek to have licenses in the
future to license those products to Mattel; (x) the inventory
policies of Mattel’s retail customers, including retailers’
potential decisions to lower their inventories, even if it results
in lost sales, as well as the concentration of Mattel’s revenues in
the second half of the year, which coupled with reliance by
retailers on quick response inventory management techniques
increases the risk of underproduction of popular items,
overproduction of less popular items and failure to achieve
compressed shipping schedules; (xi) the increased costs of
developing more sophisticated digital and smart technology
products, and the corresponding supply chain and design challenges
associated with such products; (xii) work disruptions, which may
impact Mattel’s ability to manufacture or deliver product in a
timely and cost-effective manner; (xiii) the bankruptcy and
liquidation of Mattel’s significant retailers, or the general lack
of success of one of Mattel’s significant retailers which could
negatively impact Mattel’s revenues or bad debt exposure; (xiv) the
impact of competition on revenues, margins and other aspects of
Mattel’s business, including the ability to offer products which
consumers choose to buy instead of competitive products, the
ability to secure, maintain and renew popular licenses and the
ability to attract and retain talented employees; (xv) the risk of
product recalls or product liability suits and costs associated
with product safety regulations; (xvi) changes in laws or
regulations in the United States and/or in other major markets,
such as China, in which Mattel operates, including, without
limitation, with respect to taxes, tariffs, trade policies, or
product safety, which may increase Mattel’s product costs and other
costs of doing business, and reduce Mattel’s earnings; (xvii)
failure to realize the planned benefits from any investments or
acquisitions made by Mattel; (xviii) the impact of other market
conditions, third party actions or approvals and competition which
could reduce demand for Mattel’s products or delay or increase the
cost of implementation of Mattel’s programs or alter Mattel’s
actions and reduce actual results; (xix) changes in financing
markets or the inability of Mattel to obtain financing on
attractive terms; (xx) the impact of litigation, arbitration, or
regulatory decisions or settlement actions; (xxi) uncertainty from
the expected discontinuance of LIBOR and transition to any other
interest rate benchmark; and (xxii) other risks and uncertainties
as may be described in Mattel’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, 2019, as amended, and Quarterly Report on Form
10-Q for the quarter ended March 31, 2020, as well as in Mattel’s
other public statements. Mattel does not update forward-looking
statements and expressly disclaims any obligation to do so, except
as required by law.
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
Gross Profit, Adjusted Gross Margin, Adjusted Other Selling and
Administrative Expenses, Adjusted Operating Income (Loss), Adjusted
Earnings (Loss) Per Share, earnings before interest expense, taxes,
depreciation and amortization (“EBITDA”), Adjusted EBITDA, and
constant currency. Mattel uses these measures to analyze its
continuing operations and to monitor, assess, and identify
meaningful trends in its operating and financial performance, and
each is discussed 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 Mattel’s results.
These measures are not, and should not be viewed as, substitutes
for GAAP financial measures and may not be comparable to similarly
titled measures used by other companies. 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,
https://investors.mattel.com/, under the subheading “Financial
Information – Earnings Releases.”
Gross Sales
Gross sales represent sales to customers at invoice, 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 measure for
comparing its aggregate, categorical, 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 categories, brands, and individual products, making
net sales less meaningful. Because sales adjustments are not
allocated to individual products, net sales are only presented on a
consolidated and segment basis and not on a categories or brand
level.
Since sales adjustments are determined by customer rather than
at the categories or brand level, Mattel believes that the
disclosure of gross sales by categories and brand is useful
supplemental information for investors to be able to assess the
performance of its underlying categories and brands (e.g., Dolls,
Barbie) and also enhances their ability to compare sales trends
over time. Refer to Mattel's critical accounting policies and
estimates included in the 2019 Annual Report on Form 10-K for
further detail regarding sales adjustments.
Adjusted Gross Profit and Adjusted Gross Margin
Adjusted Gross Profit and Adjusted Gross Margin represent
reported Gross Profit and Reported Gross Margin, respectively,
adjusted to exclude severance and restructuring expenses and the
impact of the inclined sleeper product recalls. Adjusted Gross
Margin represents Mattel’s Adjusted Gross Profit, as a percentage
of Net Sales. Adjusted Gross Profit and Adjusted Gross Margin are
presented to provide additional perspective on underlying trends in
Mattel’s core Gross Profit and Gross Margin, 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 Other Selling and Administrative Expenses
Adjusted Other Selling and Administrative Expenses represents
Mattel’s Reported Other Selling and Administrative Expenses,
adjusted to exclude severance and restructuring expenses and the
impact of the inclined sleeper product recalls, 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 Income (Loss), adjusted to exclude severance and
restructuring expenses and the impact of the inclined sleeper
product recalls, 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
severance and restructuring expenses and the impact of the inclined
sleeper product recalls, 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,
adjusting for certain discrete tax items, and dividing by the
reported weighted average number of 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.
EBITDA and Adjusted EBITDA
EBITDA represents Mattel’s Net Income (Loss), adjusted to
exclude the impact of interest expense, taxes, depreciation and
amortization. Adjusted EBITDA represents EBITDA adjusted to exclude
share-based compensation, severance and restructuring expenses, and
the impact of the inclined sleeper product recalls, which are not
part of Mattel’s core business. Mattel believes EBITDA and Adjusted
EBITDA are useful supplemental information for investors to gauge
and compare Mattel’s business performance to other companies in our
industry with similar capital structures. The presentation of
Adjusted EBITDA differs from how we will calculate EBITDA for
purposes of covenant compliance under the indenture governing our
6.75% senior notes due 2025, the indenture governing our 5.875%
senior notes due 2027, and the syndicated facility agreement
governing our senior secured revolving credit facilities. Because
of these limitations, EBITDA and Adjusted EBITDA should not be
considered as measures of discretionary cash available to us to
invest in the growth of our business. As a result, we rely
primarily on our GAAP results and use EBITDA and Adjusted EBITDA
only supplementally.
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 constant currency
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 leading global toy company and owner of one of the
strongest catalogs of children’s and family entertainment
franchises in the world. We create innovative products and
experiences that inspire, entertain and develop children through
play. We engage consumers through our portfolio of iconic brands,
including Barbie®, Hot Wheels®, Fisher-Price®, American Girl®,
Thomas & Friends™, UNO® and MEGA®, as well as other popular
intellectual properties that we own or license in partnership with
global entertainment companies. Our offerings include film and
television content, gaming, music and live events. We operate in 35
locations and our products are available in more than 150 countries
in collaboration with the world’s leading retail and e-commerce
companies. Since its founding in 1945, Mattel is proud to be a
trusted partner in empowering children to explore the wonder of
childhood and reach their full potential.
MATTEL, INC. AND SUBSIDIARIES EXHIBIT I
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)1
For the Three Months Ended
June 30,
For the Six Months Ended June
30,
2020
2019
% Change as Reported
% Change in Constant
Currency
2020
2019
% Change as Reported
% Change in Constant
Currency
(In millions, except per share and
percentage information)
$ Amt
% Net Sales
$ Amt
% Net Sales
$ Amt
% Net Sales
$ Amt
% Net Sales
Net Sales
$
732.1
$
860.1
-15
%
-13
%
$
1,326.2
$
1,549.3
-14
%
-13
%
Cost of sales
411.3
56.2
%
518.7
60.3
%
-21
%
750.2
56.6
%
968.1
62.5
%
-23
%
Gross Profit
320.8
43.8
%
341.4
39.7
%
-6
%
-3
%
576.0
43.4
%
581.2
37.5
%
-1
%
2
%
Advertising and promotion expenses
60.2
8.2
%
84.5
9.8
%
-29
%
136.5
10.3
%
154.0
9.9
%
-11
%
Other selling and administrative expenses
306.8
41.9
%
308.3
35.8
%
0
%
635.5
47.9
%
605.7
39.1
%
5
%
Operating Loss
(46.1
)
-6.3
%
(51.4
)
-6.0
%
-10
%
-22
%
(196.0
)
-14.8
%
(178.5
)
-11.5
%
10
%
7
%
Interest expense
49.6
6.8
%
46.2
5.4
%
7
%
98.6
7.4
%
93.2
6.0
%
6
%
Interest (income)
(1.0
)
-0.1
%
(1.5
)
-0.2
%
-33
%
(3.1
)
-0.2
%
(3.8
)
-0.2
%
-18
%
Other non-operating expense (income), net
1.6
(0.3
)
3.7
1.6
Loss Before Income Taxes
(96.3
)
-13.2
%
(95.8
)
-11.1
%
1
%
-7
%
(295.2
)
-22.3
%
(269.4
)
-17.4
%
10
%
7
%
Provision for income taxes
12.8
12.2
24.7
14.9
Net Loss
$
(109.2
)
-14.9
%
$
(108.0
)
-12.6
%
1
%
$
(319.9
)
-24.1
%
$
(284.3
)
-18.3
%
13
%
Net Loss Per Common Share - Basic
$
(0.31
)
$
(0.31
)
$
(0.92
)
$
(0.82
)
Weighted-average number of common shares
346.9
345.9
346.8
345.9
Net Loss Per Common Share - Diluted
$
(0.31
)
$
(0.31
)
$
(0.92
)
$
(0.82
)
Weighted-average number of common and potential common shares
346.9
345.9
346.8
345.9
1 Amounts may not foot due to rounding.
MATTEL, INC. AND
SUBSIDIARIES EXHIBIT II CONDENSED CONSOLIDATED
BALANCE SHEETS1
June 30,
December 31,
2020
2019
2019
(In millions)
(Unaudited)
Assets Cash and equivalents
$
461.6
$
194.1
$
630.0
Accounts receivable, net
650.5
755.7
936.4
Inventories
702.6
722.4
495.5
Prepaid expenses and other current assets
211.4
243.3
186.1
Total current assets
2,026.1
1,915.5
2,248.0
Property, plant, and equipment, net
506.6
595.8
550.1
Right-of-use assets, net
282.5
317.1
303.2
Other noncurrent assets
2,177.6
2,218.2
2,223.9
Total Assets
$
4,992.7
$
5,046.6
$
5,325.2
Liabilities and Stockholders' Equity Short-term
borrowings
$
400.0
$
45.0
$
-
Accounts payable and accrued liabilities
965.9
1,002.1
1,228.9
Income taxes payable
15.7
22.6
48.0
Total current liabilities
1,381.6
1,069.7
1,276.9
Long-term debt
2,850.8
2,855.2
2,846.8
Noncurrent lease liabilities
246.4
284.9
270.9
Other noncurrent liabilities
427.7
410.6
439.0
Stockholders' equity
86.1
426.2
491.7
Total Liabilities and Stockholders' Equity
$
4,992.7
$
5,046.6
$
5,325.2
MATTEL, INC. AND SUBSIDIARIES EXHIBIT
II SUPPLEMENTAL BALANCE SHEET AND CASH FLOW DATA
(Unaudited)1
June 30,
2020
2019
Key Balance Sheet Data:
Accounts receivable, net days of sales outstanding (DSO)
80
79
Six Months Ended June
30,
(In millions)
2020
2019
Condensed Cash Flow Data: Cash
flows used for operating activities
$
(463
)
$
(401
)
Cash flows used for investing activities
(81
)
(44
)
Cash flows provided by financing activities and other
375
44
Decrease in cash and equivalents
$
(168
)
$
(400
)
1 Amounts may not foot due to rounding.
MATTEL, INC. AND
SUBSIDIARIES EXHIBIT III WORLDWIDE GROSS SALES
INFORMATION (Unaudited)1 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)
2020
2019
% Change as Reported
% Change in Constant
Currency
2020
2019
% Change as Reported
% Change in Constant
Currency
Worldwide Gross Sales: Net
Sales
$
732.1
$
860.1
-15
%
-13
%
$
1,326.2
$
1,549.3
-14
%
-13
%
Sales Adjustments2
82.4
102.2
158.3
193.1
Gross Sales
$
814.6
$
962.3
-15
%
-13
%
$
1,484.5
$
1,742.4
-15
%
-13
%
Worldwide Gross Sales by
Categories: Dolls
$
261.0
$
273.4
-5
%
-2
%
$
486.9
$
526.3
-7
%
-5
%
Infant, Toddler and Preschool
199.8
252.0
-21
-19
340.1
445.6
-24
-22
Vehicles
158.7
214.1
-26
-23
344.3
397.5
-13
-11
Action Figures, Building Sets, Games, and Other
195.0
222.7
-12
-11
313.2
373.0
-16
-14
Gross Sales
$
814.6
$
962.3
-15
%
-13
%
$
1,484.5
$
1,742.4
-15
%
-13
%
Supplemental Gross Sales
Disclosure Worldwide
Gross Sales by Top 3 Power Brands: Barbie
$
199.3
$
186.5
7
%
10
%
$
346.8
$
350.0
-1
%
2
%
Hot Wheels
136.5
175.2
-22
-19
295.1
325.7
-9
-6
Fisher-Price and Thomas & Friends
176.3
222.4
-21
-19
305.0
394.8
-23
-21
Other
302.5
378.1
-20
-18
537.6
671.8
-20
-18
Gross Sales
$
814.6
$
962.3
-15
%
-13
%
$
1,484.5
$
1,742.4
-15
%
-13
%
1 Amounts may not foot due to rounding. 2 Sales Adjustments are not
allocated to individual products. As such, Net Sales are not
presented on a categories or brand level.
MATTEL, INC. AND
SUBSIDIARIES EXHIBIT IV GROSS SALES BY SEGMENT
(Unaudited)1 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)
2020
2019
% Change as Reported
% Change in Constant
Currency
2020
2019
% Change as Reported
% Change in Constant
Currency
North America Segment Gross
Sales: Net Sales
$
432.9
$
422.9
2
%
2
%
$
720.4
$
764.3
-6
%
-6
%
Sales Adjustments2
28.7
24.5
46.9
52.5
Gross Sales
$
461.5
$
447.4
3
%
3
%
$
767.3
$
816.7
-6
%
-6
%
North America Gross Sales by
Categories: Dolls
$
121.2
$
93.3
30
%
30
%
$
195.1
$
173.6
12
%
12
%
Infant, Toddler and Preschool
132.4
142.6
-7
-7
208.9
250.6
-17
-17
Vehicles
77.8
88.6
-12
-12
166.5
173.6
-4
-4
Action Figures, Building Sets, Games, and Other
130.2
122.8
6
6
196.7
219.0
-10
-10
Gross Sales
$
461.5
$
447.4
3
%
3
%
$
767.3
$
816.7
-6
%
-6
%
Supplemental Gross Sales
Disclosure North America
Gross Sales by Top 3 Power Brands: Barbie
$
112.3
$
78.5
43
%
43
%
$
180.1
$
147.8
22
%
22
%
Hot Wheels
66.2
68.6
-3
-3
140.3
135.6
3
4
Fisher-Price and Thomas & Friends
111.7
124.6
-10
-10
181.6
221.2
-18
-18
Other
171.4
175.7
-2
-2
265.3
312.2
-15
-15
Gross Sales
$
461.5
$
447.4
3
%
3
%
$
767.3
$
816.7
-6
%
-6
%
1 Amounts may not foot due to rounding. 2 Sales Adjustments are not
allocated to individual products. As such, Net Sales are not
presented on a categories or brand level.
MATTEL, INC. AND
SUBSIDIARIES EXHIBIT V GROSS SALES BY SEGMENT
(Unaudited)1 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)
2020
2019
% Change as Reported
% Change in Constant
Currency
2020
2019
% Change as Reported
% Change in Constant
Currency
International Segment Gross
Sales: Net Sales
$
271.1
$
403.6
-33
%
-29
%
$
540.4
$
707.1
-24
%
-20
%
Sales Adjustments2
52.9
76.9
109.6
138.6
Gross Sales
$
323.9
$
480.5
-33
%
-28
%
$
650.1
$
845.7
-23
%
-19
%
International Gross Sales by
Geographic Area: EMEA Net Sales
$
151.9
$
191.1
-20
%
-18
%
$
325.3
$
365.6
-11
%
-8
%
Sales Adjustments2
32.1
43.0
74.0
84.9
Gross Sales
$
184.0
$
234.1
-21
%
-19
%
$
399.3
$
450.5
-11
%
-9
%
Latin America Net Sales
$
57.7
$
121.2
-52
%
-43
%
$
109.0
$
185.7
-41
%
-33
%
Sales Adjustments2
10.0
20.1
18.4
30.9
Gross Sales
$
67.7
$
141.3
-52
%
-43
%
$
127.4
$
216.6
-41
%
-33
%
Asia Pacific Net Sales
$
61.4
$
91.3
-33
%
-31
%
$
106.2
$
155.8
-32
%
-30
%
Sales Adjustments2
10.8
13.7
17.3
22.9
Gross Sales
$
72.2
$
105.1
-31
%
-29
%
$
123.4
$
178.7
-31
%
-29
%
International Gross Sales by
Categories: Dolls
$
110.8
$
145.7
-24
%
-19
%
$
224.7
$
272.8
-18
%
-13
%
Infant, Toddler and Preschool
67.4
109.4
-38
-35
131.2
195.0
-33
-29
Vehicles
80.9
125.5
-36
-31
177.8
223.9
-21
-16
Action Figures, Building Sets, Games, and Other
64.8
99.9
-35
-31
116.4
154.0
-24
-21
Gross Sales
$
323.9
$
480.5
-33
%
-28
%
$
650.1
$
845.7
-23
%
-19
%
Supplemental Gross Sales
Disclosure International
Gross Sales by Top 3 Power Brands: Barbie
$
87.0
$
108.1
-19
%
-15
%
$
166.7
$
202.3
-18
%
-13
%
Hot Wheels
70.3
106.6
-34
-29
154.8
190.1
-19
-14
Fisher-Price and Thomas & Friends
64.6
97.8
-34
-30
123.4
173.6
-29
-25
Other
102.1
168.1
-39
-35
205.2
279.7
-27
-23
Gross Sales
$
323.9
$
480.5
-33
%
-28
%
$
650.1
$
845.7
-23
%
-19
%
1 Amounts may not foot due to rounding. 2 Sales Adjustments are not
allocated to individual products. As such, Net Sales are not
presented on a categories or brand level.
MATTEL, INC. AND
SUBSIDIARIES EXHIBIT VI GROSS SALES BY SEGMENT
(Unaudited)1 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)
2020
2019
% Change as Reported
% Change in Constant
Currency
2020
2019
% Change as Reported
% Change in Constant
Currency
American Girl Segment Gross
Sales: Net Sales
$
28.2
$
33.5
-16
%
-16
%
$
65.3
$
78.0
-16
%
-16
%
Sales Adjustments
0.9
0.9
1.8
2.0
Gross Sales
$
29.1
$
34.4
-16
%
-16
%
$
67.2
$
80.0
-16
%
-16
%
1 Amounts may not foot due to rounding.
MATTEL, INC. AND
SUBSIDIARIES EXHIBIT VII SUPPLEMENTAL
FINANCIAL INFORMATION (Unaudited)1 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)
2020
2019
2020
2019
Gross Profit Gross Profit, As
Reported
$
320.8
$
341.4
$
576.0
$
581.2
Gross Margin
43.8
%
39.7
%
43.4
%
37.5
%
Adjustments: Severance and Restructuring Expenses
1.4
3.5
4.5
3.5
Inclined Sleeper Product Recalls2
-
(1.3
)
-
20.6
Gross Profit, As Adjusted
$
322.3
$
343.5
$
580.5
$
605.2
Adjusted Gross Margin
44.0
%
39.9
%
43.8
%
39.1
%
Other Selling and Administrative
Expenses Other Selling and Administrative Expenses, As
Reported
$
306.8
$
308.3
$
635.5
$
605.7
% of Net Sales
41.9
%
35.8
%
47.9
%
39.1
%
Adjustments: Severance and Restructuring Expenses
(16.2
)
(14.4
)
(23.8
)
(23.1
)
Inclined Sleeper Product Recalls2
(2.9
)
(4.4
)
(9.1
)
(4.4
)
Other Selling and Administrative Expenses, As Adjusted
$
287.7
$
289.5
$
602.6
$
578.2
% of Net Sales
39.3
%
33.7
%
45.4
%
37.3
%
Operating Loss Operating
Loss, As Reported
$
(46.1
)
$
(51.4
)
$
(196.0
)
$
(178.5
)
Adjustments: Severance and Restructuring Expenses
17.7
17.9
28.2
26.6
Inclined Sleeper Product Recalls2
2.9
3.1
9.1
25.0
Operating Loss, As Adjusted
$
(25.6
)
$
(30.4
)
$
(158.6
)
$
(126.9
)
Other Information
Inclined Sleeper Product Recalls2
$
2.9
$
3.1
$
9.1
$
30.4
1 Amounts may not foot due to rounding. 2 For the three and six
months ended June 30, 2020, Mattel recorded expenses related to
inclined sleeper product recall litigation of $2.9 million and $9.1
million, respectively. Mattel recorded an estimated impact of $3.1
million and $30.4 million related to inclined sleeper product
recalls for the three and six months ended June 30, 2019,
respectively. Of the $30.4 million recorded during the six months
ended June 30, 2019, $5.4 million was a reduction to Net Sales for
estimated retailer returns.
MATTEL, INC. AND SUBSIDIARIES
EXHIBIT VII
For the Three Months Ended
June 30,
For the Six Months Ended June
30,
(In millions, except per share and
percentage information)
2020
2019
2020
2019
Earnings Per Share Net Loss Per
Common Share, As Reported
$
(0.31
)
$
(0.31
)
$
(0.92
)
$
(0.82
)
Adjustments: Severance and Restructuring Expenses
0.05
0.05
0.08
0.08
Inclined Sleeper Product Recalls2
0.01
0.01
0.03
0.07
Tax Effect of Adjustments3
-
-
(0.01
)
-
Net Loss Per Common Share, As Adjusted
$
(0.26
)
$
(0.25
)
$
(0.82
)
$
(0.67
)
EBITDA and Adjusted
EBITDA Net Loss, As Reported
$
(109.2
)
$
(108.0
)
$
(319.9
)
$
(284.3
)
Adjustments: Interest Expense
49.6
46.2
98.6
93.2
Provision for Income Taxes
12.8
12.2
24.7
14.9
Depreciation
38.3
51.5
82.0
103.6
Amortization
9.7
9.9
19.7
20.3
EBITDA
1.3
11.8
(94.9
)
(52.3
)
Adjustments: Share-based Compensation
9.1
12.4
23.4
24.3
Severance and Restructuring Expenses
17.5
14.5
27.8
23.2
Inclined Sleeper Product Recalls2
2.9
3.1
9.1
25.0
Adjusted EBITDA
$
30.8
$
41.8
$
(34.7
)
$
20.1
1 Amounts may not foot due to rounding. 2 For the three and six
months ended June 30, 2020, Mattel recorded expenses related to
inclined sleeper product recall litigation of $2.9 million and $9.1
million, respectively. Mattel recorded an estimated impact of $3.1
million and $30.4 million related to inclined sleeper product
recalls for the three and six months ended June 30, 2019,
respectively. Of the $30.4 million recorded during the six months
ended June 30, 2019, $5.4 million was a reduction to Net Sales for
estimated retailer returns. 3 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. Adjustments
for the U.S. and certain International affiliates were not tax
effected because of the valuation allowance on deferred tax assets.
MAT-FIN MAT-CORP
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200723005872/en/
News Media Dena Cook dena.cook@mattel.com
310-252-4247
Securities Analysts David Zbojniewicz
david.zbojniewicz@mattel.com 310-252-2703
Mattel (NASDAQ:MAT)
Gráfico Histórico do Ativo
De Jun 2024 até Jul 2024
Mattel (NASDAQ:MAT)
Gráfico Histórico do Ativo
De Jul 2023 até Jul 2024