Company Reiterates Full Year Earnings
Guidance at Nasdaq 45th Investor Conference
Mattel, Inc. (NASDAQ: MAT) Chairman and CEO Ynon Kreiz attended
a White House roundtable meeting with President Biden and leading
U.S. CEOs yesterday to discuss supply chain and the holiday
shopping season in the U.S.
Mr. Kreiz said: “I was encouraged by President Biden’s
commitment to support the private sector in mitigating supply chain
disruptions, including in particular port congestion. Mattel
appreciates the Administration’s leadership in helping to focus
attention and resources on this important area.
We continue to work through supply chain challenges and
collaborate closely with our valued retail partners to try to meet
the unprecedented demand for our product. We are confident that
there will be plenty of Mattel toys for children of all ages to
enjoy this holiday season.
The toy industry is growing and it is expected to continue to
grow as children, parents and caregivers have made play a bigger
part of their lives. We are grateful for the invitation to share
information with the White House about Mattel’s perspective on
supply chain and the toy industry’s preparation towards the holiday
season. We look forward to continuing the dialogue.”
Separately today, in speaking at the Nasdaq 45th Investor
Conference, Kreiz added: “The fourth quarter is off to a good
start. With less than a month of shopping days for the holidays, we
feel good about the holiday season and expect to continue growing
and gain market share in the fourth quarter in line with our
guidance.”
Mr. Kreiz further noted that Mattel is on track to achieve its
highest full-year growth rate in decades. On its third quarter 2021
earnings call, the company raised guidance for the third time this
year for both Net Sales in constant currency and Adjusted EBITDA
for the full year in 2021. The company expects net sales this year
to increase by approximately 15% in constant currency and Adjusted
EBITDA to be in the range of $900-925 million. The company
reiterated that guidance at today’s Nasdaq 45th Conference, which
can be viewed here.
The Global toy industry is forecast to grow +5.4% CAGR the next
five years through 2025. Global Toys have experienced 10
consecutive years of growth and all-time highs and are estimated to
top $100 billion in 2023. (Source: Euromonitor Traditional Toys
& Games Research 2021, USD current/nominal value, 2020 fixed
exchange rate).
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,” “believes,” and “targeted,”
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
Mattel’s control, could cause actual future results to differ
materially from those projected in the forward-looking statements,
and are currently, and in the future may 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 and uncertainty regarding the COVID-19 pandemic (and actions
taken in response to it by governments, businesses, and
individuals) on Mattel’s business operations, financial results and
financial position and on the global economy, including its impact
on Mattel’s sales; (ii) Mattel’s ability to design, develop,
produce, manufacture, source, ship, and distribute products on a
timely and cost-effective basis; (iii) sufficient interest in and
demand for the products and entertainment we offer by retail
customers and consumers to profitably recover Mattel’s costs; (iv)
downturns in economic conditions affecting Mattel’s markets which
can negatively impact retail customers and consumers, and which can
result in lower employment levels and lower consumer disposable
income and spending, including lower spending on purchases of
Mattel’s products; (v) 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; (vi) potential difficulties or delays Mattel may
experience in implementing cost savings and efficiency enhancing
initiatives; (vii) 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; (viii) currency
fluctuations, including movements in foreign exchange rates and
inflation, which can lower Mattel’s net revenues and earnings, and
significantly impact Mattel’s costs; (ix) the concentration of
Mattel’s customers, potentially increasing the negative impact to
Mattel of difficulties experienced by any of Mattel’s customers,
such as bankruptcies or liquidations or a general lack of success,
or changes in their purchasing or selling patterns; (x) the
inventory policies of Mattel’s retail customers, 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, overproduction, and shipping delays; (xi) legal,
reputational, and financial risks related to security breaches or
cyberattacks; (xii) work disruptions, including as a result of
supply chain disruption and plant shutdowns, which may impact
Mattel’s ability to manufacture or deliver product in a timely and
cost-effective manner; (xiii) 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 from licensors of
entertainment properties, and the ability to attract and retain
talented employees; (xiv) the risk of product recalls or product
liability suits and costs associated with product safety
regulations; (xv) 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; (xvi) failure to realize the planned
benefits from any investments or acquisitions made by Mattel;
(xvii) the impact of other market conditions or third party actions
or approvals, including that result in any significant failure,
inadequacy, or interruption from vendors or outsourcers, which
could reduce demand for Mattel’s products, delay or increase the
cost of implementation of Mattel’s programs, or alter Mattel’s
actions and reduce actual results; (xviii) changes in financing
markets or the inability of Mattel to obtain financing on
attractive terms; (xix) the impact of litigation, arbitration, or
regulatory decisions or settlement actions; (xx) uncertainty from
the expected discontinuance of LIBOR and transition to any other
interest rate benchmark; and (xxi) other risks and uncertainties as
may be described in Mattel’s 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, 2020 and subsequent periodic filings, 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
A reconciliation of Mattel’s non-GAAP financial measures on a
forward-looking basis, including Net Sales on a constant currency
basis and Adjusted EBITDA, is not available without unreasonable
effort. Mattel is unable to predict with sufficient certainty items
that would be excluded from the corresponding GAAP measure,
including the effect of foreign currency exchange rate
fluctuations, unusual gains and losses or charges, and severance
and restructuring charges, due to the unpredictable nature of such
items, which may have a significant impact on Mattel’s GAAP
measures.
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®, Masters of the Universe®, Monster
High® 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 ecommerce 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. Visit us online at mattel.com.
MAT-CORP
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Catherine Frymark Catherine.Frymark@Mattel.com (240)
893-9840
Mattel (NASDAQ:MAT)
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