Mattel Reports Third Quarter 2020 Financial Results
-
Third quarter
Net Sales of$1,632 million , up 10% as reported, and up 11% in constant currency, versus prior year. -
Gross Sales of
$1,818 million , up 10% as reported, and up 11% in constant currency. -
Dolls category Gross Sales up 22% as reported, and up 24% in constant currency;
Barbie Gross Sales up 29% as reported, and up 30% in constant currency. - Reported Gross Margin of 51.0%, an improvement of 470 basis points; Adjusted Gross Margin of 51.0%, an improvement of 410 basis points.
-
Reported Operating Income of
$384.2 million , up 156%; Adjusted Operating Income of$401.3 million , up 131%. -
Reported Net Income of
$316.0 million , up 348%. -
Adjusted EBITDA of
$469.8 million , up 90%. - E-commerce POS grew by approximately 50%.
- 2020 guidance to be provided on Company’s Q3 2020 conference call and live webcast.
For the third quarter,
For the first nine months of the year,
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 of the COVID-19 pandemic to the business.
Financial Overview
For the third quarter,
Gross Sales in the
Gross Sales in the International segment increased 7% as reported, and 10% in constant currency, driven by growth in Dolls (including Barbie), Action Figures,
Reported Gross Margin increased to 51.0%, versus 46.3% in the prior year’s third quarter, and Adjusted Gross Margin increased to 51.0%, versus 46.9%. The increase in Reported and Adjusted Gross Margin was primarily driven by cost savings, reduced royalties, and favorable category mix.
Reported Other Selling and Administrative Expenses decreased by
For the nine months ended
Sales by Categories
For the third quarter, Worldwide Gross Sales for Dolls were
Worldwide Gross Sales for Infant, Toddler, and Preschool were
Worldwide Gross Sales for Vehicles were
Worldwide Gross Sales for Action Figures,
Conference Call and Live Webcast
At
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
Non-GAAP Financial Measures
To supplement our financial results presented in accordance with generally accepted accounting principles in
This earnings release and our earnings slide presentation are available on
Gross Sales
Gross Sales represent sales to customers at invoice, excluding the impact of sales adjustments.
Since sales adjustments are determined by customer rather than at the categories or brand level,
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
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
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
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.
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.
Free Cash Flow
Free Cash Flow represents Mattel’s net cash flows from operating activities less capital expenditures.
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,
About
|
EXHIBIT I |
|||||||||||||||||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)1 | ||||||||||||||||||||||||||||||||||||||||
For the Three Months Ended |
|
For the Nine Months Ended |
||||||||||||||||||||||||||||||||||||||
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 |
|
|
|||||||||||||||||||||
$ |
1,631.7 |
|
$ |
1,481.6 |
|
10 |
% |
11 |
% |
$ |
2,957.9 |
|
$ |
3,030.9 |
|
-2 |
% |
-1 |
% |
|||||||||||||||||||||
Cost of sales |
|
799.3 |
|
49.0 |
% |
|
795.1 |
|
53.7 |
% |
1 |
% |
|
1,549.5 |
|
52.4 |
% |
|
1,763.3 |
|
58.2 |
% |
-12 |
% |
||||||||||||||||
Gross Profit |
|
832.4 |
|
51.0 |
% |
|
686.4 |
|
46.3 |
% |
21 |
% |
23 |
% |
|
1,408.4 |
|
47.6 |
% |
|
1,267.6 |
|
41.8 |
% |
11 |
% |
13 |
% |
||||||||||||
Advertising and promotion expenses |
|
102.5 |
|
6.3 |
% |
|
170.4 |
|
11.5 |
% |
-40 |
% |
|
239.0 |
|
8.1 |
% |
|
324.3 |
|
10.7 |
% |
-26 |
% |
||||||||||||||||
Other selling and administrative expenses |
|
345.7 |
|
21.2 |
% |
|
366.0 |
|
24.7 |
% |
-6 |
% |
|
981.2 |
|
33.2 |
% |
|
971.6 |
|
32.1 |
% |
1 |
% |
||||||||||||||||
Operating Income (Loss) |
|
384.2 |
|
23.5 |
% |
|
150.1 |
|
10.1 |
% |
156 |
% |
165 |
% |
|
188.2 |
|
6.4 |
% |
|
(28.3 |
) |
-0.9 |
% |
n/m |
|
n/m |
|
||||||||||||
Interest expense |
|
50.4 |
|
3.1 |
% |
|
47.7 |
|
3.2 |
% |
6 |
% |
|
149.0 |
|
5.0 |
% |
|
140.9 |
|
4.6 |
% |
6 |
% |
||||||||||||||||
Interest (income) |
|
(0.5 |
) |
0.0 |
% |
|
(0.8 |
) |
-0.1 |
% |
-45 |
% |
|
(3.6 |
) |
-0.1 |
% |
|
(4.6 |
) |
-0.2 |
% |
-23 |
% |
||||||||||||||||
Other non-operating (income) expense, net |
|
(3.9 |
) |
|
1.3 |
|
|
(0.1 |
) |
|
2.9 |
|
||||||||||||||||||||||||||||
Income (Loss) Before Income Taxes |
|
338.1 |
|
20.7 |
% |
|
102.0 |
|
6.9 |
% |
232 |
% |
245 |
% |
|
42.9 |
|
1.5 |
% |
|
(167.5 |
) |
-5.5 |
% |
n/m |
|
n/m |
|
||||||||||||
Provision for income taxes |
|
22.1 |
|
|
31.4 |
|
|
46.8 |
|
|
46.2 |
|
||||||||||||||||||||||||||||
Net Income (Loss) |
$ |
316.0 |
|
19.4 |
% |
$ |
70.6 |
|
4.8 |
% |
348 |
% |
$ |
(3.9 |
) |
-0.1 |
% |
$ |
(213.7 |
) |
-7.1 |
% |
-98 |
% |
||||||||||||||||
Net Income (Loss) Per Common Share - Basic |
$ |
0.91 |
|
$ |
0.20 |
|
$ |
(0.01 |
) |
$ |
(0.62 |
) |
||||||||||||||||||||||||||||
Weighted-average number of common shares |
|
347.6 |
|
|
346.7 |
|
|
347.2 |
|
|
346.2 |
|
||||||||||||||||||||||||||||
Net Income (Loss) Per Common Share - Diluted |
$ |
0.91 |
|
$ |
0.20 |
|
$ |
(0.01 |
) |
$ |
(0.62 |
) |
||||||||||||||||||||||||||||
Weighted-average number of common and potential common shares |
|
348.7 |
|
|
348.5 |
|
|
347.2 |
|
|
346.2 |
|
|
|||||||||||||||||||||||||||
1 Amounts may not foot due to rounding. |
||||||||||||||||||||||||||||||||||||||||
n/m - Not Meaningful |
||||||||||||||||||||||||||||||||||||||||
EXHIBIT II | |||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS1 | |||||||||||
|
|
|
|||||||||
2020 |
|
2019 |
|
2019 |
|||||||
(In millions) |
(Unaudited) |
|
|
|
|||||||
Assets | |||||||||||
Cash and equivalents |
$ |
452.2 |
|
$ |
218.3 |
|
$ |
630.0 |
|||
Accounts receivable, net |
|
1,326.1 |
|
|
1,291.3 |
|
|
936.4 |
|||
Inventories |
|
663.6 |
|
|
701.6 |
|
|
495.5 |
|||
Prepaid expenses and other current assets |
|
157.9 |
|
|
225.9 |
|
|
186.1 |
|||
Total current assets |
|
2,599.9 |
|
|
2,437.0 |
|
|
2,248.0 |
|||
Property, plant, and equipment, net |
|
497.4 |
|
|
572.3 |
|
|
550.1 |
|||
Right-of-use assets, net |
|
291.1 |
|
|
306.2 |
|
|
303.2 |
|||
Other noncurrent assets |
|
2,215.7 |
|
|
2,212.1 |
|
|
2,223.9 |
|||
Total Assets |
$ |
5,604.1 |
|
$ |
5,527.6 |
|
$ |
5,325.2 |
|||
Liabilities and Stockholders' Equity | |||||||||||
Short-term borrowings |
$ |
400.0 |
|
$ |
230.0 |
|
$ |
- |
|||
Accounts payable and accrued liabilities |
|
1,237.2 |
|
|
1,234.7 |
|
|
1,228.9 |
|||
Income taxes payable |
|
21.3 |
|
|
48.8 |
|
|
48.0 |
|||
Total current liabilities |
|
1,658.4 |
|
|
1,513.4 |
|
|
1,276.9 |
|||
Long-term debt |
|
2,852.8 |
|
|
2,856.8 |
|
|
2,846.8 |
|||
Noncurrent lease liabilities |
|
252.0 |
|
|
273.9 |
|
|
270.9 |
|||
Other noncurrent liabilities |
|
436.5 |
|
|
419.7 |
|
|
439.0 |
|||
Stockholders' equity |
|
404.5 |
|
|
463.8 |
|
|
491.7 |
|||
Total Liabilities and Stockholders' Equity |
$ |
5,604.1 |
|
$ |
5,527.6 |
|
$ |
5,325.2 |
|||
SUPPLEMENTAL BALANCE SHEET AND CASH FLOW DATA (Unaudited)1 | |||||||||||
|
|||||||||||
2020 |
|
2019 |
|||||||||
Key Balance Sheet Data: | |||||||||||
Accounts receivable, net days of sales outstanding (DSO) |
|
73 |
|
|
78 |
|
|||||
Nine Months Ended |
|||||||||||
(In millions) |
2020 |
|
2019 |
||||||||
Condensed Cash Flow Data: | |||||||||||
Cash flows used for operating activities |
$ |
(434 |
) |
$ |
(514 |
) |
|||||
Cash flows used for investing activities |
|
(115 |
) |
|
(78 |
) |
|||||
Cash flows provided by financing activities and other |
|
371 |
|
|
216 |
|
|||||
Decrease in cash and equivalents |
$ |
(178 |
) |
$ |
(376 |
) |
|||||
1 Amounts may not foot due to rounding. | |||||||||||
EXHIBIT III |
||||||||||||||||||||||||
WORLDWIDE GROSS SALES INFORMATION (Unaudited)1 | ||||||||||||||||||||||||
RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL MEASURES | ||||||||||||||||||||||||
For the Three Months Ended |
|
For the Nine Months Ended |
||||||||||||||||||||||
(In millions, except percentage information) |
2020 |
|
2019 |
|
% Change
|
|
% Change in
|
|
2020 |
|
2019 |
|
% Change
|
|
% Change in
|
|||||||||
Worldwide Gross Sales: | ||||||||||||||||||||||||
$ |
1,631.7 |
$ |
1,481.6 |
10 |
% |
11 |
% |
$ |
2,957.9 |
$ |
3,030.9 |
-2 |
% |
-1 |
% |
|||||||||
Sales Adjustments2 |
|
186.7 |
|
175.4 |
|
|
|
345.0 |
|
368.4 |
|
|
||||||||||||
Gross Sales |
$ |
1,818.4 |
$ |
1,656.9 |
10 |
% |
11 |
% |
$ |
3,302.9 |
$ |
3,399.3 |
-3 |
% |
-1 |
% |
||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Worldwide Gross Sales by Categories: |
|
|
|
|
|
|
|
|
||||||||||||||||
Dolls |
$ |
690.5 |
$ |
567.6 |
22 |
% |
24 |
% |
$ |
1,177.4 |
$ |
1,093.9 |
8 |
% |
10 |
% |
||||||||
Infant, Toddler and Preschool |
|
404.1 |
|
431.0 |
-6 |
|
-5 |
|
|
744.2 |
|
876.6 |
-15 |
|
-14 |
|
||||||||
Vehicles |
|
369.4 |
|
346.9 |
6 |
|
8 |
|
|
713.7 |
|
744.4 |
-4 |
|
-2 |
|
||||||||
Action Figures, |
|
354.5 |
|
311.4 |
14 |
|
14 |
|
|
667.6 |
|
684.4 |
-2 |
|
-1 |
|
||||||||
Gross Sales |
$ |
1,818.4 |
$ |
1,656.9 |
10 |
% |
11 |
% |
$ |
3,302.9 |
$ |
3,399.3 |
-3 |
% |
-1 |
% |
||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Supplemental Gross Sales Disclosure |
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Worldwide Gross Sales by Top 3 Power Brands: |
|
|
|
|
|
|
|
|
||||||||||||||||
Barbie |
$ |
532.2 |
$ |
412.8 |
29 |
% |
30 |
% |
$ |
879.0 |
$ |
762.8 |
15 |
% |
17 |
% |
||||||||
Hot Wheels |
|
312.8 |
|
293.3 |
7 |
|
9 |
|
|
607.9 |
|
619.0 |
-2 |
|
1 |
|
||||||||
Fisher-Price and Thomas & Friends |
|
387.6 |
|
396.3 |
-2 |
|
-1 |
|
|
692.7 |
|
791.1 |
-12 |
|
-11 |
|
||||||||
Other |
|
585.7 |
|
554.4 |
6 |
|
7 |
|
|
1,123.4 |
|
1,226.3 |
-8 |
|
-7 |
|
||||||||
Gross Sales |
$ |
1,818.4 |
$ |
1,656.9 |
10 |
% |
11 |
% |
$ |
3,302.9 |
$ |
3,399.3 |
-3 |
% |
-1 |
% |
||||||||
1 Amounts may not foot due to rounding. | ||||||||||||||||||||||||
2 Sales Adjustments are not allocated to individual products. As such, |
||||||||||||||||||||||||
EXHIBIT IV |
||||||||||||||||||||||||
GROSS SALES BY SEGMENT (Unaudited)1 | ||||||||||||||||||||||||
RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL MEASURES | ||||||||||||||||||||||||
For the Three Months Ended |
|
For the Nine Months Ended |
||||||||||||||||||||||
(In millions, except percentage information) |
2020 |
|
2019 |
|
% Change
|
|
% Change in
|
|
2020 |
|
2019 |
|
% Change
|
|
% Change in
|
|||||||||
North America Segment Gross Sales: | ||||||||||||||||||||||||
$ |
924.7 |
$ |
821.9 |
13 |
% |
13 |
% |
$ |
1,645.2 |
$ |
1,586.2 |
4 |
% |
4 |
% |
|||||||||
Sales Adjustments2 |
|
66.9 |
|
58.6 |
|
|
|
113.8 |
|
111.0 |
|
|
||||||||||||
Gross Sales |
$ |
991.6 |
$ |
880.4 |
13 |
% |
13 |
% |
$ |
1,758.9 |
$ |
1,697.2 |
4 |
% |
4 |
% |
||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
North America Gross Sales by Categories: |
|
|
|
|
|
|
|
|
||||||||||||||||
Dolls |
$ |
328.6 |
$ |
250.6 |
31 |
% |
31 |
% |
$ |
523.6 |
$ |
424.2 |
23 |
% |
23 |
% |
||||||||
Infant, Toddler and Preschool |
|
255.3 |
|
274.6 |
-7 |
|
-7 |
|
|
464.3 |
|
525.3 |
-12 |
|
-12 |
|
||||||||
Vehicles |
|
189.6 |
|
170.8 |
11 |
|
11 |
|
|
356.2 |
|
344.3 |
3 |
|
3 |
|
||||||||
Action Figures, |
|
218.1 |
|
184.4 |
18 |
|
18 |
|
|
414.8 |
|
403.4 |
3 |
|
3 |
|
||||||||
Gross Sales |
$ |
991.6 |
$ |
880.4 |
13 |
% |
13 |
% |
$ |
1,758.9 |
$ |
1,697.2 |
4 |
% |
4 |
% |
||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Supplemental Gross Sales Disclosure |
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
North America Gross Sales by Top 3 Power Brands: |
|
|
|
|
|
|
|
|
||||||||||||||||
Barbie |
$ |
297.6 |
$ |
221.2 |
35 |
% |
35 |
% |
$ |
477.7 |
$ |
369.0 |
29 |
% |
30 |
% |
||||||||
Hot Wheels |
|
156.5 |
|
140.8 |
11 |
|
11 |
|
|
296.8 |
|
276.4 |
7 |
|
7 |
|
||||||||
Fisher-Price and Thomas & Friends |
|
241.6 |
|
250.9 |
-4 |
|
-4 |
|
|
423.2 |
|
472.1 |
-10 |
|
-10 |
|
||||||||
Other |
|
295.9 |
|
267.5 |
11 |
|
11 |
|
|
561.2 |
|
579.7 |
-3 |
|
-3 |
|
||||||||
Gross Sales |
$ |
991.6 |
$ |
880.4 |
13 |
% |
13 |
% |
$ |
1,758.9 |
$ |
1,697.2 |
4 |
% |
4 |
% |
||||||||
1 Amounts may not foot due to rounding. | ||||||||||||||||||||||||
2 Sales Adjustments are not allocated to individual products. As such, |
||||||||||||||||||||||||
|
EXHIBIT V |
|||||||||||||||||||||||
GROSS SALES BY SEGMENT (Unaudited)1 | ||||||||||||||||||||||||
RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL MEASURES | ||||||||||||||||||||||||
For the Three Months Ended |
|
For the Nine Months Ended |
||||||||||||||||||||||
(In millions, except percentage information) |
2020 |
|
2019 |
|
% Change
|
|
% Change in
|
|
2020 |
|
2019 |
|
% Change
|
|
% Change in
|
|||||||||
International Segment Gross Sales: | ||||||||||||||||||||||||
$ |
655.5 |
$ |
607.9 |
8 |
% |
11 |
% |
$ |
1,196.0 |
$ |
1,315.0 |
-9 |
% |
-5 |
% |
|||||||||
Sales Adjustments2 |
|
117.5 |
|
113.8 |
|
|
|
227.2 |
|
252.4 |
|
|
||||||||||||
Gross Sales |
$ |
773.1 |
$ |
721.7 |
7 |
% |
10 |
% |
$ |
1,423.1 |
$ |
1,567.4 |
-9 |
% |
-5 |
% |
||||||||
International Gross Sales by Geographic Area: | ||||||||||||||||||||||||
EMEA | ||||||||||||||||||||||||
$ |
407.3 |
$ |
337.6 |
21 |
% |
19 |
% |
$ |
732.6 |
$ |
703.2 |
4 |
% |
5 |
% |
|||||||||
Sales Adjustments2 |
|
75.2 |
|
71.0 |
|
149.3 |
|
155.9 |
||||||||||||||||
Gross Sales |
$ |
482.6 |
$ |
408.7 |
18 |
% |
16 |
% |
$ |
881.9 |
$ |
859.1 |
3 |
% |
3 |
% |
||||||||
$ |
159.0 |
$ |
182.3 |
-13 |
% |
2 |
% |
$ |
268.0 |
$ |
368.0 |
-27 |
% |
-15 |
% |
|||||||||
Sales Adjustments2 |
|
27.7 |
|
31.2 |
|
46.0 |
|
62.1 |
||||||||||||||||
Gross Sales |
$ |
186.6 |
$ |
213.5 |
-13 |
% |
3 |
% |
$ |
314.0 |
$ |
430.1 |
-27 |
% |
-15 |
% |
||||||||
$ |
89.2 |
$ |
88.0 |
1 |
% |
0 |
% |
$ |
195.4 |
$ |
243.8 |
-20 |
% |
-19 |
% |
|||||||||
Sales Adjustments2 |
|
14.6 |
|
11.5 |
|
31.9 |
|
34.4 |
||||||||||||||||
Gross Sales |
$ |
103.8 |
$ |
99.5 |
4 |
% |
3 |
% |
$ |
227.2 |
$ |
278.2 |
-18 |
% |
-17 |
% |
||||||||
International Gross Sales by Categories: | ||||||||||||||||||||||||
Dolls |
$ |
308.2 |
$ |
262.2 |
18 |
% |
22 |
% |
$ |
532.9 |
$ |
535.0 |
0 |
% |
4 |
% |
||||||||
Infant, Toddler and Preschool |
|
148.7 |
|
156.4 |
-5 |
|
-3 |
|
|
279.9 |
|
351.3 |
-20 |
|
-17 |
|
||||||||
Vehicles |
|
179.8 |
|
176.2 |
2 |
|
6 |
|
|
357.5 |
|
400.1 |
-11 |
|
-6 |
|
||||||||
Action Figures, |
|
136.4 |
|
127.0 |
7 |
|
9 |
|
|
252.7 |
|
281.0 |
-10 |
|
-7 |
|
||||||||
Gross Sales |
$ |
773.1 |
$ |
721.7 |
7 |
% |
10 |
% |
$ |
1,423.1 |
$ |
1,567.4 |
-9 |
% |
-5 |
% |
||||||||
Supplemental Gross Sales Disclosure | ||||||||||||||||||||||||
International Gross Sales by Top 3 Power Brands: | ||||||||||||||||||||||||
Barbie |
$ |
234.6 |
$ |
191.6 |
22 |
% |
26 |
% |
$ |
401.3 |
$ |
393.9 |
2 |
% |
6 |
% |
||||||||
Hot Wheels |
|
156.3 |
|
152.5 |
3 |
|
7 |
|
|
311.1 |
|
342.6 |
-9 |
|
-4 |
|
||||||||
Fisher-Price and Thomas & Friends |
|
146.1 |
|
145.4 |
0 |
|
3 |
|
|
269.5 |
|
319.1 |
-16 |
|
-12 |
|
||||||||
Other |
|
236.1 |
|
232.1 |
2 |
|
4 |
|
|
441.2 |
|
511.9 |
-14 |
|
-10 |
|
||||||||
Gross Sales |
$ |
773.1 |
$ |
721.7 |
7 |
% |
10 |
% |
$ |
1,423.1 |
$ |
1,567.4 |
-9 |
% |
-5 |
% |
||||||||
1 Amounts may not foot due to rounding. | ||||||||||||||||||||||||
2 Sales Adjustments are not allocated to individual products. As such, |
||||||||||||||||||||||||
EXHIBIT VI |
||||||||||||||||||||||||
GROSS SALES BY SEGMENT (Unaudited)1 | ||||||||||||||||||||||||
RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL MEASURES | ||||||||||||||||||||||||
For the Three Months Ended |
|
For the Nine Months Ended |
||||||||||||||||||||||
(In millions, except percentage information) |
2020 |
|
2019 |
|
% Change
|
|
% Change in
|
|
2020 |
|
2019 |
|
% Change
|
|
% Change in
|
|||||||||
American Girl Segment Gross Sales: | ||||||||||||||||||||||||
$ |
51.4 |
$ |
51.8 |
-1 |
% |
-1 |
% |
$ |
116.8 |
$ |
129.7 |
-10 |
% |
-10 |
% |
|||||||||
Sales Adjustments2 |
|
2.3 |
|
3.0 |
|
4.1 |
|
5.0 |
||||||||||||||||
Gross Sales |
$ |
53.7 |
$ |
54.8 |
-2 |
% |
-2 |
% |
$ |
120.9 |
$ |
134.7 |
-10 |
% |
-10 |
% |
||||||||
1 Amounts may not foot due to rounding. | ||||||||||||||||||||||||
2 Sales Adjustments are not allocated to individual products. | ||||||||||||||||||||||||
EXHIBIT VII | ||||||||||||||||
SUPPLEMENTAL FINANCIAL INFORMATION (Unaudited)1 | ||||||||||||||||
RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL MEASURES | ||||||||||||||||
For the Three Months Ended
|
|
For the Nine Months Ended
|
||||||||||||||
(In millions, except per share and percentage information) |
2020 |
|
2019 |
|
2020 |
|
2019 |
|||||||||
Gross Profit | ||||||||||||||||
Gross Profit, As Reported |
$ |
832.4 |
|
$ |
686.4 |
|
$ |
1,408.4 |
|
$ |
1,267.6 |
|
||||
Gross Margin |
|
51.0 |
% |
|
46.3 |
% |
|
47.6 |
% |
|
41.8 |
% |
||||
Adjustments: | ||||||||||||||||
Severance and Restructuring Expenses |
|
0.3 |
|
|
8.4 |
|
|
4.8 |
|
|
11.9 |
|
||||
Inclined Sleeper Product Recalls2 |
|
- |
|
|
0.7 |
|
|
- |
|
|
21.3 |
|
||||
Gross Profit, As Adjusted |
$ |
832.7 |
|
$ |
695.6 |
|
$ |
1,413.2 |
|
$ |
1,300.8 |
|
||||
Adjusted Gross Margin |
|
51.0 |
% |
|
46.9 |
% |
|
47.8 |
% |
|
42.9 |
% |
||||
Other Selling and Administrative Expenses | ||||||||||||||||
Other Selling and Administrative Expenses, As Reported |
$ |
345.7 |
|
$ |
366.0 |
|
$ |
981.2 |
|
$ |
971.6 |
|
||||
% of |
|
21.2 |
% |
|
24.7 |
% |
|
33.2 |
% |
|
32.1 |
% |
||||
Adjustments: | ||||||||||||||||
Severance and Restructuring Expenses |
|
(6.7 |
) |
|
(11.3 |
) |
|
(30.5 |
) |
|
(34.4 |
) |
||||
Inclined Sleeper Product Recalls2 |
|
(10.1 |
) |
|
(3.2 |
) |
|
(19.2 |
) |
|
(7.6 |
) |
||||
Other Selling and Administrative Expenses, As Adjusted |
$ |
328.9 |
|
$ |
351.4 |
|
$ |
931.6 |
|
$ |
929.6 |
|
||||
% of |
|
20.2 |
% |
|
23.7 |
% |
|
31.5 |
% |
|
30.7 |
% |
||||
Operating Income (Loss) | ||||||||||||||||
Operating Income (Loss), As Reported |
$ |
384.2 |
|
$ |
150.1 |
|
$ |
188.2 |
|
$ |
(28.3 |
) |
||||
Adjustments: | ||||||||||||||||
Severance and Restructuring Expenses |
|
7.0 |
|
|
19.7 |
|
|
35.3 |
|
|
46.4 |
|
||||
Inclined Sleeper Product Recalls2 |
|
10.1 |
|
|
3.9 |
|
|
19.2 |
|
|
28.9 |
|
||||
Operating Income, As Adjusted |
$ |
401.3 |
|
$ |
173.7 |
|
$ |
242.7 |
|
$ |
46.9 |
|
||||
Other Information | ||||||||||||||||
Inclined Sleeper Product Recalls2 |
$ |
10.1 |
|
$ |
3.9 |
|
$ |
19.2 |
|
$ |
34.3 |
|
||||
1 Amounts may not foot due to rounding. |
||||||||||||
2 For the three and nine months ended |
EXHIBIT VII |
|||||||||||||||
SUPPLEMENTAL FINANCIAL INFORMATION (Unaudited)1 RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL MEASURES |
|||||||||||||||
For the Three Months Ended
|
|
For the Nine Months Ended
|
|||||||||||||
(In millions, except per share and percentage information) |
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||||
Earnings Per Share | |||||||||||||||
Net Income (Loss) Per Common Share, As Reported |
$ |
0.91 |
$ |
0.20 |
|
$ |
(0.01 |
) |
$ |
(0.62 |
) |
||||
Adjustments: | |||||||||||||||
Severance and Restructuring Expenses |
|
0.02 |
|
0.06 |
|
|
0.10 |
|
|
0.13 |
|
||||
Inclined Sleeper Product Recalls2 |
|
0.03 |
|
0.01 |
|
|
0.06 |
|
|
0.08 |
|
||||
Tax Effect of Adjustments3 |
|
- |
|
(0.01 |
) |
|
(0.01 |
) |
|
(0.01 |
) |
||||
Net Income (Loss) Per Common Share, As Adjusted |
$ |
0.95 |
$ |
0.26 |
|
$ |
0.14 |
|
$ |
(0.41 |
) |
||||
EBITDA and Adjusted EBITDA | |||||||||||||||
Net Income (Loss), As Reported |
$ |
316.0 |
$ |
70.6 |
|
$ |
(3.9 |
) |
$ |
(213.7 |
) |
||||
Adjustments: | |||||||||||||||
Interest Expense |
|
50.4 |
|
47.7 |
|
|
149.0 |
|
|
140.9 |
|
||||
Provision for Income Taxes |
|
22.1 |
|
31.4 |
|
|
46.8 |
|
|
46.2 |
|
||||
Depreciation |
|
38.1 |
|
52.7 |
|
|
120.1 |
|
|
156.3 |
|
||||
Amortization |
|
9.8 |
|
9.8 |
|
|
29.5 |
|
|
30.2 |
|
||||
EBITDA |
|
436.4 |
|
212.1 |
|
|
341.4 |
|
|
159.8 |
|
||||
Adjustments: | |||||||||||||||
Share-based Compensation |
|
16.5 |
|
14.8 |
|
|
39.9 |
|
|
39.1 |
|
||||
Severance and Restructuring Expenses |
|
6.8 |
|
16.8 |
|
|
34.6 |
|
|
40.0 |
|
||||
Inclined Sleeper Product Recalls2 |
|
10.1 |
|
3.9 |
|
|
19.2 |
|
|
28.9 |
|
||||
Adjusted EBITDA |
$ |
469.8 |
$ |
247.7 |
|
$ |
435.1 |
|
$ |
267.8 |
|
||||
Free Cash Flow | |||||||||||||||
Net Cash Flows Used For Operating Activities |
|
(434.0 |
) |
|
(513.7 |
) |
|||||||||
Capital Expenditures |
|
(90.4 |
) |
|
(75.6 |
) |
|||||||||
Free Cash Flow |
$ |
(524.4 |
) |
$ |
(589.3 |
) |
|||||||||
1 Amounts may not foot due to rounding. |
||||||||||||
2 For the three and nine months ended |
||||||||||||
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 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20201022006121/en/
News Media
danit.marquardt@mattel.com
310-252-8904
Securities Analysts
david.zbojniewicz@mattel.com
310-252-2703
Source: