Mattel Reports 2011 Financial Results and Declares Quarterly Dividend
Fourth Quarter Highlights
Worldwide net sales up 1% from the prior year;
Domestic gross sales down 2% and international gross sales up 5%;
Worldwide gross sales for core brands: Barbie® up 6%; Hot Wheels®
up 11%; Core Fisher-Price® down 3% and American Girl® up 4%;
Gross margin increased 230 basis points of net sales; SG&A
decreased 110 basis points of net sales;
Operating income was $497.5 million compared to operating income of
$428.6 million in the fourth quarter of 2010; and
Earnings per share of $1.07 vs. prior year of $0.89.
Full-Year Highlights
Worldwide net sales up 7% from the prior year;
Domestic gross sales up 3% and international gross sales up 12%;
Worldwide gross sales for core brands: Barbie® up 12%; Hot Wheels®
up 6%; Core Fisher-Price® up 2%; and American Girl® up 5%;
Gross margin decreased 30 basis points of net sales; SG&A decreased
160 basis points of net sales;
Operating income was $1.04 billion compared to operating income of
$901.9 million for the full-year 2010; and
Earnings per share of $2.18 vs. prior year of $1.86 (includes tax
benefit of $0.05 per share).
Capital Deployment
Board declared 2012 first quarter cash dividend of $0.31 per share,
reflecting an annualized dividend of $1.24 per share, which represents
a 35% increase to last year's total dividends; and
For the 2011 fourth quarter, the company repurchased 4.0 million
shares of its common stock at a cost of approximately $112 million and
for the year, the company repurchased 20.4 million shares of its
common stock at a cost of approximately $536 million.
EL SEGUNDO, Calif.--(BUSINESS WIRE)--
Mattel, Inc. (NASDAQ:MAT) today reported 2011 fourth quarter and
full-year financial results. For the fourth quarter, the company
reported net income of $370.6 million, or $1.07 per share, compared to
last year's fourth quarter net income of $325.2 million, or $0.89 per
share. For the year, the company reported net income of $768.5 million,
or $2.18 per share, compared to last year's net income of $684.9
million, or $1.86 per share.
"Mattel delivered another strong year, our third consecutive year of
solid performance, which I am especially pleased about given the soft
global economic backdrop and the highly promotional environment,
particularly in the U.S.," said Bryan G. Stockton, Mattel Chief
Executive Officer. "Despite these challenges, for the year we delivered
strong revenue growth and record operating income. Our portfolio of
brands performed around the globe; our point-of-sale grew nicely; and we
gained category share according to NPD's most recent data. In fact, four
of the top five properties for the 2011 holiday season were Mattel
properties1."
Financial Overview
For the fourth quarter, net sales were $2.15 billion, a 1% increase from
$2.12 billion last year, and included an unfavorable impact from changes
in currency exchange rates of 1 percentage point. On a regional basis,
fourth quarter gross sales were down 2% in the U.S. and were up 5% in
international markets, which included an unfavorable impact from changes
in currency exchange rates of 3 percentage points. Operating income for
the quarter was $497.5 million, or 23.1% of net sales, compared to the
prior year of 20.2% of net sales.
For the year, net sales were $6.27 billion, a 7% increase from $5.86
billion last year, and included a favorable impact from changes in
currency exchange rates of 1 percentage point. On a regional basis,
full-year gross sales were up 3% in the U.S. and were up 12% in
international markets, which included a favorable impact from changes in
currency exchange rates of 3 percentage points. Operating income for the
year was $1.04 billion, or 16.6% of net sales, compared to the prior
year of 15.4% of net sales.
The company's debt-to-total-capital ratio of 37.4% is in line with the
company's capital and investment framework, and its year-end cash
balance was $1.37 billion.
Net cash flows from operating activities were approximately $665
million, an increase of $137 million compared with approximately $528
million in 2010. The increase is primarily driven by improved earnings
and the decision not to factor domestic receivables in 2010, partially
offset by higher working capital usage. Cash flows used for financing
and other activities were approximately $402 million, an increase of
$185 million, compared with approximately $217 million in 2010,
primarily due to higher debt maturities and share repurchases in 2011,
partially offset by higher net proceeds from the issuance of debt.
Capital Deployment
The company announced today that its Board of Directors declared a first
quarter cash dividend of $0.31 per share on the company's common stock.
The dividend will be payable on March 9, 2012, to stockholders of record
on Feb. 23, 2012. The dividend is the first of four quarterly dividends
the company expects to make this year, reflecting an annualized dividend
of $1.24 per share, which represents an increase of $0.32, or 35% versus
last year's total dividends of $0.92 per share. For the fourth quarter
2011, the company repurchased 4.0 million shares of its common stock at
a cost of approximately $112 million and for the year, the company
repurchased 20.4 million shares of its common stock at a cost of
approximately $536 million.
Mattel Girls & Boys Brands
Fourth quarter worldwide gross sales for the Mattel Girls & Boys Brands
business unit were $1.36 billion, up 7% versus a year ago. Worldwide
gross sales for the Barbie® brand were up 6% and worldwide
gross sales for Other Girls Brands were up 19%. Worldwide gross sales
for the Wheels business, which includes the Hot Wheels®,
Matchbox® and Tyco R/C® brands, were up 5%.
Worldwide gross sales for the Entertainment business, which includes
Radica® and Games, were up 3% for the quarter.
For the year, worldwide gross sales for the Mattel Girls & Boys Brands
business unit were $4.15 billion, or up 13%. Worldwide gross sales for
the Barbie® brand were up 12%. Worldwide gross sales for Other Girls
Brands were up 27% for the year. Worldwide gross sales for the Wheels
business, which includes the Hot Wheels®, Matchbox®
and Tyco R/C® brands, were up 2%. Worldwide gross
sales for the Entertainment business, including Radica® and
Games, were up 16%.
Fisher-Price Brands
Fourth quarter worldwide gross sales for the Fisher-Price Brands
business unit, which includes the Fisher-Price® Core,
Fisher-Price® Friends and Power Wheels® brands,
were $700.4 million, down 10%. For the year, worldwide gross sales for
the Fisher-Price Brands business unit were $2.16 billion, down 3%.
American Girl Brands
Fourth quarter gross sales for the American Girl Brands business unit,
which offers American Girl® branded products direct to
consumers, were $283.9 million, up 4%. For the year, gross sales for the
American Girl Brands business unit were $510.9 million, up 5%.
Acquisition of HIT Entertainment
Mattel's acquisition of HIT Entertainment is expected to close tomorrow.
Mattel will announce the closing in a separate press release shortly
after it occurs.
Live Webcast
Mattel will webcast its 2011 fourth quarter and full-year financial
results conference call at 8:30 a.m. Eastern time today. The conference
call will be webcast on the "Investors & Media" section of the company's
corporate Web site: http://corporate.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 the morning of the call until
Friday, Feb. 3 at midnight Eastern time and may be accessed by dialing +
1 (404) 537-3406. The passcode is 40640038.
Presentation slides relating to the conference call, 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://corporate.mattel.com/,
under the sub-headings "Financial Information" — "Earnings Releases."
About Mattel
Mattel, Inc. (NASDAQ:MAT) (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®, the most popular fashion doll ever introduced, Hot
Wheels®, Matchbox®, American Girl®, Radica® and Tyco R/C®, as well as
Fisher-Price® brands, including Little People®, Power Wheels® and a wide
array of entertainment-inspired toy lines. In 2012, Mattel was named as
one of FORTUNE Magazine's "100 Best Companies to Work For" for the fifth
year in a row. Mattel also is ranked among Corporate Responsibility
Magazine's "100 Best Corporate Citizens" and the "World's Most Ethical
Companies." With worldwide headquarters in El Segundo, Calif., Mattel
employs approximately 28,000 people in 43 countries and territories and
sells products in more than 150 nations. At Mattel, we are "Creating the
Future of Play." Follow Mattel on Facebook: www.facebook.com/mattel
Note: This press release contains forward-looking statements on a
variety of matters, including without limitation, the company's expected
quarterly cash dividend payments in 2012 and the timeframe in which the
transaction with HIT Entertainment will be completed. 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 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, 2010 and Mattel's Quarterly Reports on Form 10-Q for fiscal
year 2011, as well as in Mattel's other public statements. Mattel does
not update forward-looking statements and expressly disclaims any
obligation to do so.
