EL SEGUNDO, Calif., April 21 /PRNewswire-FirstCall/ -- Mattel, Inc.
(NYSE: MAT) today reported 2008 first quarter financial results. For the
quarter, the company reported a net loss of $46.6 million, or $0.13 per share,
compared to last year's first quarter net income of $12.0 million, or $0.03
per share.
"Results were not completely surprising compared to last year's strong
first quarter, which benefited from depleted retail inventories and hot
properties such as T.M.X.(TM) Elmo and CARS," said Robert A. Eckert, chairman
and chief executive officer of Mattel. "Our consumer takeaway, though,
outperformed shipments, which is a positive sign for the remainder of the
year. We are also excited about the introduction of toy lines based on this
summer's most anticipated theatrical releases, including Speed Racer, Kung Fu
Panda(TM), Batman(R): The Dark Knight(TM), and the American Girl(R) movie: Kit
Kittredge(R), An American Girl(R). Although the first quarter was impacted by
higher product costs and legal fees, we expect price increases effective in
June to aid profitability in the latter half of the year."
Financial Overview
For the quarter, net sales were $919.3 million, down 2 percent compared to
$940.3 million last year, including favorable changes in currency exchange
rates of 5 percentage points. On a regional basis, first quarter gross sales
decreased 11 percent in the U.S. and increased 8 percent in international
markets, including favorable changes in currency exchange rates of 11
percentage points. Operating loss for the quarter was $36.5 million, compared
to prior year's operating income for the quarter of $20.6 million.
The company's debt-to-total-capital ratio was 28 percent. Consistent with
the seasonality of the business, during the quarter the company's cash and
equivalents declined by approximately $276 million, compared with a decline of
approximately $221 million in last year's first quarter.
Sales by Business Unit
Mattel Girls and Boys Brands
For the first quarter, worldwide gross sales for the Mattel Girls & Boys
Brands business unit were $592.8 million, up 5 percent versus a year ago.
Worldwide gross sales for the Barbie(R) brand were flat, with increases in
international markets offsetting declines in the U.S. Worldwide gross sales
for Other Girls Brands were up 16 percent, driven by High School Musical
dolls. Worldwide gross sales for the Wheels category, which includes the Hot
Wheels(R), Matchbox(R) and Tyco(R) R/C brands, were up 15 percent, led by
sales of the new Speed Racer toy line. Worldwide gross sales for the
Entertainment business, which includes Radica(R) and Games and Puzzles, were
down 5 percent for the quarter.
Fisher-Price Brands
First quarter worldwide gross sales for the Fisher-Price Brands business
unit, which includes the Fisher-Price(R) Core, Fisher-Price(R) Friends and
Power Wheels(R) brands, were $341.3 million, or down 13 percent versus the
prior year, primarily due to declines in Fisher-Price(R) Friends.
American Girl Brands
First quarter gross sales for the American Girl Brands business unit,
which offers American Girl(R) branded products directly to consumers, were
$69.1 million, up 10 percent versus last year, driven by sales in the Atlanta
and Dallas boutiques which opened in the second half of 2007.
Live Webcast
Mattel will webcast its 2008 first quarter earnings conference call at
8:30 a.m. Eastern time (5:30 a.m. Pacific time) today. The conference call
will be webcast on the "Investors & Media" section of the company's corporate
Web site, http://www.mattel.com. To listen to the live call, log on to the
Web site at least 15 minutes early to register, download and install any
necessary audio software. An archive of the webcast will be available on the
company's Web site for 90 days and may be accessed beginning two hours after
the completion of the live call. A telephonic replay of the call will be
available beginning at 11:30 a.m. Eastern time (8:30 a.m. Pacific time) the
morning of the call, until Wednesday, April 23 at 11:30 p.m. Eastern time
(8:30 p.m. Pacific time) and may be accessed by dialing + (719) 457-0820. The
passcode is 3246404.
Information required by Securities and Exchange Commission Regulation G,
regarding non-GAAP financial measures, as well as other financial and
statistical information, will be available at the time of the webcast on the
"Investors & Media" section of http://www.mattel.com, under the sub-headings
"Financial Information" -- "Earnings Releases."
About Mattel
Mattel, Inc., (NYSE: MAT) (http://www.mattel.com) is the worldwide leader
in the design, manufacture and marketing of toys and family products. The
Mattel family is comprised of such best-selling brands as Barbie(R), the most
popular fashion doll ever introduced, Hot Wheels(R), Matchbox(R), American
Girl(R), Radica(R) and Tyco(R) R/C, as well as Fisher-Price(R) brands,
including Little People(R), Power Wheels(R) and a wide array of
entertainment-inspired toy lines. Mattel is recognized as one of 2008's "100
Best Companies to Work For" by FORTUNE Magazine and among the 100 Most
Trustworthy U.S. Companies by Forbes Magazine. Committed to ethical
manufacturing and sustainable business practices, Mattel marked a 10-year
milestone in 2007 for its Global Manufacturing Principles. With worldwide
headquarters in El Segundo, Calif., Mattel employs more than 30,000 people in
43 countries and territories and sells products in more than 150 nations.
Mattel's vision is to be the world's premier toy brands -- today and tomorrow.
Note: Forward-looking statements with respect to the financial condition,
results of operations and business of the company are subject to certain risks
and uncertainties that could cause actual results to differ materially from
those set forth in such statements. These include without limitation: the
company's dependence on the timely development, manufacture, introduction and
customer acceptance of new products; the seasonality of the toy business;
customer concentration and pricing; significant changes in buying and payment
patterns of major customers, including as a result of bankruptcy and store
closures; adverse changes in general economic conditions in the U.S. and
internationally, including adverse changes in the retail environment,
employment and the stock market; order predictability and supply chain
management; the impact of competition (including from sellers of a broad range
of play products including video games and consoles, consumer electronics, and
retailers' private label products) on revenues and margins; the supply and
cost of raw materials (including oil and resin prices), components, employee
benefits and various services; the effect of currency exchange rate
fluctuations on reportable income; risks associated with acquisitions and
mergers; risks associated with product recalls, product liability claims and
product safety concerns, such as possible reputational harm, reduced sales or
increased costs; risks associated with foreign operations; negative results of
litigation, governmental proceedings or environmental matters; changes in laws
and regulations; possible work stoppages, slowdowns or strikes; possible
outbreaks of SARS, bird flu, or other diseases; political developments and the
threat or occurrence of war or terrorist acts; the possibility of catastrophic
events; the inherent risk of new initiatives; and other risks and
uncertainties as may be detailed from time to time in the company's public
announcements and SEC filings. This release contains forward-looking
statements about consumer takeaway relative to shipments, introduction of new
toy lines, summer theatrical releases, price increases in June and
profitability in the latter half of the year. Mattel does not update
forward-looking statements and expressly disclaims any obligation to do so.
