Mattel Reports Third Quarter 2016 Financial Results And Declares Quarterly Dividend
OREANDA-NEWS. October 20, 2016. For the third quarter of 2016,
"In the third quarter, we continued to make solid progress against our strategic priorities, and we are pleased with our momentum as we head into the holiday season," said
Christopher Sinclair, Chairman and CEO of
Financial Overview
Third quarter net sales in the
Reported operating income for the quarter was
The Company's debt-to-total capital ratio as of
For the nine months ended
Capital Deployment
The Board of Directors declared a 2016 fourth quarter cash dividend of
Sales by Brand
Mattel Girls and Boys Brands
For the third quarter, worldwide gross sales for Mattel Girls & Boys Brands were
Fisher-Price Brands
Third quarter worldwide gross sales for
Fisher-Price Brands, which includes the Fisher-Price Core,
Fisher-Price Friends and Power Wheels® brands, were
Third quarter gross sales for American Girl Brands®, which offers American Girl-branded products directly to consumers, were
Construction and Arts & Crafts Brands
Third quarter gross sales for Construction and Arts & Crafts Brands, which includes the MEGA BLOKS® and RoseArt® brands, were
Conference Call and Live Webcast
At
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
Non-GAAP Financial Measures
To supplement our financial results presented in accordance with generally accepted accounting principles in
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.
Adjusted other selling and administrative expenses
Adjusted other selling and administrative expenses represents
Adjusted operating income
Adjusted operating income represents
Adjusted earnings per share
Adjusted earnings per share represents
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
MAT-FIN MAT-CORP
1 Please refer to Non-GAAP Financial Measures for a glossary of non-GAAP financial measures used herein, including gross sales, adjusted other selling and administrative expenses, adjusted operating income, adjusted earnings per share and constant currency.
|
EXHIBIT I | ||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) |
|||||||||||||||||||||||||
For the Three Months Ended |
For the Nine Months Ended | ||||||||||||||||||||||||
Yr / Yr |
Yr / Yr |
Yr / Yr |
Yr / Yr | ||||||||||||||||||||||
% Change |
% Change |
% Change |
% Change | ||||||||||||||||||||||
(In millions, except per share and |
2016 |
2015 |
as |
in Constant |
2016 |
2015 |
as |
in Constant | |||||||||||||||||
percentage information) |
\\$ Amt |
% Net Sales |
\\$ Amt |
% Net Sales |
Reported |
Currency |
\\$ Amt |
% Net Sales |
\\$ Amt |
% Net Sales |
Reported |
Currency | |||||||||||||
Net Sales |
\\$ |
1,795.6 |
\\$ |
1,792.0 |
0% |
2% |
\\$ |
3,622.3 |
\\$ |
3,702.9 |
-2% |
0% | |||||||||||||
Cost of sales |
924.8 |
51.5% |
912.4 |
50.9% |
1% |
1,929.3 |
53.3% |
1,900.0 |
51.3% |
2% |
|||||||||||||||
Gross Profit |
870.8 |
48.5% |
879.6 |
49.1% |
-1% |
3% |
1,693.0 |
46.7% |
1,802.9 |
48.7% |
-6% |
1% | |||||||||||||
Advertising and promotion expenses |
202.9 |
11.3% |
213.2 |
11.9% |
-5% |
384.6 |
10.6% |
420.4 |
11.4% |
-9% |
|||||||||||||||
Other selling and administrative expenses |
350.5 |
19.5% |
365.6 |
20.4% |
-4% |
1,051.8 |
29.0% |
1,135.6 |
30.7% |
-7% |
|||||||||||||||
Operating Income |
317.4 |
17.7% |
300.8 |
16.8% |
6% |
16% |
256.6 |
7.1% |
246.9 |
6.7% |
4% |
43% | |||||||||||||
Interest expense |
25.0 |
1.4% |
21.4 |
1.2% |
17% |
70.1 |
1.9% |
62.5 |
1.7% |
12% |
|||||||||||||||
Interest (income) |
(2.5) |
-0.1% |
(2.0) |
-0.1% |
24% |
(7.6) |
-0.2% |
(5.8) |
-0.2% |
31% |
|||||||||||||||
Other non-operating expense (income), net |
0.9 |
(4.7) |
23.3 |
(2.9) |
|||||||||||||||||||||
Income Before Income Taxes |
294.0 |
16.4% |
286.1 |
16.0% |
3% |
14% |
170.8 |
4.7% |
193.1 |
5.2% |
-12% |
38% | |||||||||||||
Provision for income taxes |
57.7 |
62.3 |
26.6 |
38.8 |
|||||||||||||||||||||
Net Income |
\\$ |
236.3 |
13.2% |
\\$ |
223.8 |
12.5% |
6% |
\\$ |
144.2 |
4.0% |
\\$ |
154.3 |
4.2% |
-7% |
|||||||||||
Net Income Per Common Share - Basic |
\\$ |
0.69 |
\\$ |
0.66 |
\\$ |
0.42 |
\\$ |
0.45 |
|||||||||||||||||
Weighted average number of common shares |
342.0 |
339.4 |
341.1 |
339.0 |
|||||||||||||||||||||
Net Income Per Common Share - Diluted |
\\$ |
0.68 |
\\$ |
0.66 |
\\$ |
0.42 |
\\$ |
0.45 |
|||||||||||||||||
Weighted average number of common and potential common shares |
344.2 |
339.8 |
343.3 |
339.5 |
|
EXHIBIT II | |||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||
|
| |||||||
2016 |
2015 (b)(c) |
2015 (b)(c) | ||||||
(In millions) |
(Unaudited) |
|||||||
Assets |
||||||||
Cash and equivalents |
\\$ |
297.1 |
\\$ |
289.7 |
\\$ |
892.8 | ||
Accounts receivable, net |
1,528.8 |
1,451.3 |
1,145.1 | |||||
Inventories |
910.5 |
870.8 |
587.5 | |||||
Prepaid expenses and other current assets |
342.4 |
367.9 |
375.7 | |||||
Total current assets |
3,078.8 |
2,979.7 |
3,001.1 | |||||
Property, plant, and equipment, net |
747.5 |
721.3 |
741.1 | |||||
Other noncurrent assets |
2,822.6 |
2,928.6 |
2,792.9 | |||||
Total Assets |
\\$ |
6,648.9 |
\\$ |
6,629.6 |
\\$ |
6,535.1 | ||
Liabilities and Stockholders' Equity |
||||||||
Short-term borrowings |
\\$ |
- |
\\$ |
161.0 |
\\$ |
16.9 | ||
Current portion of long-term debt |
300.0 |
- |
300.0 | |||||
Accounts payable and accrued liabilities |
1,323.9 |
1,248.6 |
1,309.8 | |||||
Income taxes payable |
21.7 |
31.9 |
18.8 | |||||
Total current liabilities |
1,645.6 |
1,441.5 |
1,645.5 | |||||
Long-term debt |
2,133.5 |
2,084.0 |
1,784.7 | |||||
Other noncurrent liabilities |
454.4 |
531.4 |
471.7 | |||||
Stockholders' equity |
2,415.4 |
2,572.7 |
2,633.2 | |||||
Total Liabilities and Stockholders' Equity |
\\$ |
6,648.9 |
\\$ |
6,629.6 |
\\$ |
6,535.1 | ||
SUPPLEMENTAL BALANCE SHEET AND CASH FLOW DATA (Unaudited) | ||||||||
|
||||||||
(In millions, except days and percentage information) |
2016 |
2015 (b) |
||||||
Key Balance Sheet Data: |
||||||||
Accounts receivable, net days of sales outstanding (DSO) |
77 |
73 |
||||||
Total debt outstanding |
|
\\$ 2,245.0 |
||||||
Total debt-to-total capital ratio |
50.2% |
46.6% |
||||||
Nine Months Ended |
||||||||
(In millions) |
2016 (a) |
2015 |
||||||
Condensed Cash Flow Data: |
||||||||
Cash flows (used for) operating activities |
\\$ (331) |
\\$ (222) |
||||||
Cash flows (used for) investing activities |
(205) |
(206) |
||||||
Cash flows (used for) financing activities and other |
(60) |
(254) |
||||||
Decrease in cash and equivalents |
\\$ (596) |
\\$ (682) |
(a) |
Amounts shown are preliminary estimates. Actual amounts will be reported in |
(b) |
Other noncurrent assets and long-term debt have been retrospectively restated to reflect the adoption of Accounting Standards Update (ASU) 2015-03, Simplifying the Presentation of Debt Issuance Costs. |
(c) |
ASU 2015-17, Balance Sheet Classification of Deferred Taxes, was retrospectively adopted in the quarter ended |
|
EXHIBIT III |
|||||||||||||||||
WORLDWIDE GROSS SALES INFORMATION (Unaudited) |
||||||||||||||||||
RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL MEASURES |
||||||||||||||||||
For the Three Months Ended |
For the Nine Months Ended |
|||||||||||||||||
(In millions, except percentage information) |
2016 |
2015 |
2016 |
2015 |
||||||||||||||
% Change |
% Change in |
% Change |
% Change in |
|||||||||||||||
Worldwide Gross Sales by Brand: |
||||||||||||||||||
Mattel Girls & Boys Brands |
|
|
-5 |
% |
-4 |
% |
|
|
-8 |
% |
-5 |
% | ||||||
Fisher-Price Brands |
661.5 |
625.3 |
6 |
8 |
1,280.4 |
1,226.0 |
4 |
7 |
||||||||||
|
125.5 |
109.9 |
14 |
15 |
286.9 |
300.1 |
-4 |
-4 |
||||||||||
Construction and Arts & Crafts Brands |
118.6 |
118.5 |
0 |
6 |
252.8 |
221.6 |
14 |
23 |
||||||||||
Other |
8.7 |
9.1 |
27.4 |
23.4 |
||||||||||||||
Gross Sales |
|
|
0 |
% |
1 |
% |
|
|
-3 |
% |
0 |
% | ||||||
Worldwide Gross Sales - Mattel Girls & Boys Brands: |
||||||||||||||||||
Barbie |
\\$ 349.7 |
\\$ 302.0 |
16 |
% |
17 |
% |
\\$ 651.3 |
\\$ 578.3 |
13 |
% |
14 |
% | ||||||
Other Girls |
161.6 |
320.4 |
-50 |
-46 |
304.5 |
685.9 |
-56 |
-52 |
||||||||||
Wheels |
281.9 |
266.9 |
6 |
6 |
579.0 |
559.5 |
3 |
7 |
||||||||||
Entertainment |
267.9 |
231.3 |
16 |
16 |
607.9 |
503.9 |
21 |
23 |
||||||||||
Gross Sales |
|
|
-5 |
% |
-4 |
% |
|
|
-8 |
% |
-5 |
% | ||||||
Reconciliation of Non-GAAP to GAAP Financial Measure: |
||||||||||||||||||
Gross Sales |
|
|
|
|
||||||||||||||
Sales Adjustments1 |
(179.8) |
(191.4) |
(367.9) |
(395.8) |
||||||||||||||
Net Sales |
|
|
0 |
% |
2 |
% |
|
|
-2 |
% |
0 |
% |
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. |
|
EXHIBIT IV |
|||||||||||||||||
GROSS SALES BY REGION (Unaudited) |
||||||||||||||||||
RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL MEASURES |
||||||||||||||||||
For the Three Months Ended |
For the Nine Months Ended |
|||||||||||||||||
(In millions, except percentage information) |
2016 |
2015 |
2016 |
2015 |
||||||||||||||
% Change |
% Change in |
% Change |
% Change in |
|||||||||||||||
North American1 Region Gross Sales |
||||||||||||||||||
Gross Sales |
|
|
1 |
% |
2 |
% |
|
|
0 |
% |
1 |
% | ||||||
Sales Adjustments |
(71.4) |
(84.4) |
(134.7) |
(159.9) |
||||||||||||||
Net Sales |
|
|
3 |
% |
3 |
% |
|
|
2 |
% |
2 |
% | ||||||
International Region Gross Sales |
||||||||||||||||||
|
||||||||||||||||||
Gross Sales |
\\$ 418.8 |
\\$ 449.3 |
-7 |
% |
-1 |
% |
\\$ 867.0 |
\\$ 928.4 |
-7 |
% |
-1 |
% | ||||||
Sales Adjustments |
(64.2) |
(65.3) |
(136.1) |
(138.7) |
||||||||||||||
Net Sales |
\\$ 354.6 |
\\$ 384.0 |
-8 |
% |
-2 |
% |
\\$ 730.9 |
\\$ 789.7 |
-7 |
% |
-2 |
% | ||||||
|
||||||||||||||||||
Gross Sales |
\\$ 211.8 |
\\$ 224.1 |
-5 |
% |
-3 |
% |
\\$ 403.3 |
\\$ 466.4 |
-14 |
% |
-5 |
% | ||||||
Sales Adjustments |
(25.5) |
(29.2) |
(49.9) |
(58.7) |
||||||||||||||
Net Sales |
\\$ 186.3 |
\\$ 194.9 |
-4 |
% |
-2 |
% |
\\$ 353.4 |
\\$ 407.7 |
-13 |
% |
-4 |
% | ||||||
|
||||||||||||||||||
Gross Sales |
\\$ 143.7 |
\\$ 125.2 |
15 |
% |
15 |
% |
\\$ 343.9 |
\\$ 337.3 |
2 |
% |
5 |
% | ||||||
Sales Adjustments |
(18.7) |
(12.5) |
(47.2) |
(38.5) |
||||||||||||||
Net Sales |
\\$ 125.0 |
\\$ 112.7 |
11 |
% |
11 |
% |
\\$ 296.7 |
\\$ 298.8 |
-1 |
% |
2 |
% | ||||||
|
||||||||||||||||||
Gross Sales |
\\$ 774.3 |
\\$ 798.6 |
-3 |
% |
1 |
% |
|
|
-7 |
% |
-1 |
% | ||||||
Sales Adjustments |
(108.4) |
(107.0) |
(233.2) |
(235.9) |
||||||||||||||
Net Sales |
\\$ 665.9 |
\\$ 691.6 |
-4 |
% |
0 |
% |
|
|
-8 |
% |
-2 |
% |
1 Consists of |
|
EXHIBIT V | ||||||||
SUPPLEMENTAL FINANCIAL INFORMATION (Unaudited) |
|||||||||
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) |
2016 |
2015 |
2016 |
2015 | |||||
Other Selling and Administrative Expenses |
|||||||||
Other Selling and Administrative Expenses, As Reported |
\\$ |
350.5 |
\\$ |
365.6 |
\\$ |
1,051.8 |
\\$ |
1,135.6 | |
% of Net Sales |
19.5% |
20.4% |
29.0% |
30.7% | |||||
Adjustments: |
|||||||||
Integration & Acquisition Costs (1) |
(0.3) |
(3.3) |
(1.4) |
(13.6) | |||||
Severance and Restructuring Expenses |
(6.4) |
(13.3) |
(33.6) |
(56.9) | |||||
Other Selling and Administrative Expenses, As Adjusted |
\\$ |
343.8 |
\\$ |
349.0 |
\\$ |
1,016.8 |
\\$ |
1,065.1 | |
% of Net Sales |
19.1% |
19.5% |
28.1% |
28.8% | |||||
Operating Income |
|||||||||
Operating Income, As Reported |
\\$ |
317.4 |
\\$ |
300.8 |
\\$ |
256.6 |
\\$ |
246.9 | |
Adjustments: |
|||||||||
Integration & Acquisition Costs (1) |
0.3 |
3.3 |
1.4 |
13.6 | |||||
Severance and Restructuring Expenses |
6.4 |
13.3 |
33.6 |
56.9 | |||||
Operating Income, As Adjusted |
\\$ |
324.1 |
\\$ |
317.4 |
\\$ |
291.6 |
\\$ |
317.4 | |
Earnings Per Share |
|||||||||
Net Income Per Common Share, As Reported |
\\$ |
0.68 |
\\$ |
0.66 |
\\$ |
0.42 |
\\$ |
0.45 | |
Adjustments: |
|||||||||
Integration & Acquisition Costs (1) |
- |
0.01 |
- |
0.04 | |||||
Severance and Restructuring Expenses |
0.02 |
0.04 |
0.10 |
0.17 | |||||
Sale of Assets |
- |
- |
(0.01) |
- | |||||
Venezuela Currency Devaluation Loss |
- |
- |
0.08 |
- | |||||
Tax Effect of Adjustments (2) |
- |
(0.01) |
(0.04) |
(0.05) | |||||
Net Income Per Common Share, As Adjusted |
\\$ |
0.70 |
\\$ |
0.70 |
\\$ |
0.55 |
\\$ |
0.61 |
(1) |
Includes Integration & Acquisition Costs for |
(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. |
Комментарии