Mattel Reports First Quarter 2011 Financial Results and Declares Quarterly Dividend
First Quarter Highlights
Worldwide net sales up 8 percent;
Domestic gross sales up 7 percent and international gross sales up
10 percent;
Worldwide gross sales for core brands: Barbie® up
14 percent; Hot Wheels® up 6 percent; Core
Fisher-Price® flat and American Girl®
brands up 4 percent;
Gross margin increased 60 basis points of net sales; SG&A increased
190 basis points of net sales;
Operating income of $36.8 million compared to operating income of
$45.2 million in the first quarter of 2010; and
Earnings per share of $0.05 vs. prior year earnings per share of
$0.07.
Capital Deployment
Board declares second quarter cash dividend of $0.23 per share,
reflecting an annualized dividend of $0.92 per share, which represents
an 11 percent increase to last year's annual dividend.
The company repurchased 4 million shares of its common stock at a
cost of approximately $100 million.
EL SEGUNDO, Calif.--(BUSINESS WIRE)--
Mattel, Inc. (NASDAQ: MAT) today reported 2011 first quarter financial
results. For the quarter, the company reported net income of $16.6
million, or $0.05 per share, compared to last year's first quarter net
income of $24.8 million, or $0.07 per share.
"Our diverse portfolio of brands and countries has once again allowed us
to deliver on our goal of consistent growth," said Robert A. Eckert,
chairman and chief executive officer of Mattel. "Additionally, we are
well positioned to improve operating margin and deliver strong cash flow
for the year."
Financial Overview
For the quarter, net sales were $951.9 million, up 8 percent compared to
$880.1 million last year, including favorable changes in currency
exchange rates of 1 percentage point. On a regional basis, first quarter
gross sales increased 7 percent in the U.S. and 10 percent in
international markets, including favorable changes in currency exchange
rates of 2 percentage points. Operating income for the quarter was $36.8
million, compared to prior year's operating income for the quarter of
$45.2 million.
The company's debt-to-total-capital ratio was 32.3 percent. Consistent
with the seasonality of the business, during the quarter the company's
cash and equivalents declined by approximately $232 million, compared
with a decline of approximately $245 million in last year's first
quarter.
Net cash flows used for operating activities were approximately $42
million, a decrease of $203 million compared with approximately $245
million in 2010. The decrease is primarily due to the collection of $300
million of domestic receivables not factored in 2010, partially offset
by higher working capital usage.
Cash flows used for financing and other activities were $181 million, a
decrease of $216 million, compared to approximately $35 million provided
by financing activities in 2010, primarily reflecting share repurchases
and first quarter dividend payments.
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 $656.4 million, up 15 percent versus a year
ago. Worldwide gross sales for the Barbie® brand were up 14
percent. Worldwide gross sales for Other Girls Brands were up 38
percent, driven by the Monster High® and Disney Princess™
doll lines. Worldwide gross sales for the Wheels category, which
includes the Hot Wheels®, Matchbox® and Tyco R/C®
brands, were up 4 percent. Worldwide gross sales for the Entertainment
business, which includes Radica® and Games and Puzzles, were
up 13 percent for the quarter, primarily driven by growth in the CARS™,
Green Lantern® and Toy Story® properties.
Fisher-Price Brands
First 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 $309.9 million, or
down 2 percent versus the prior year due primarily to the
discontinuation of the Sesame Street product line.
American Girl Brands
First quarter gross sales for the American Girl Brands business unit,
which offers American Girl® branded products directly to
consumers, were $73.0 million, up 4 percent versus last year, primarily
driven by strong sales of Kanani™, Girl of the Year 2011.
Quarterly Dividend
Additionally, the Company announced today that its Board of Directors
declared a second quarter cash dividend of $0.23 per share on the
Company's common stock. The dividend will be payable on June 17, 2011 to
stockholders of record on May 25, 2011. The dividend is the second of
four quarterly dividends the Company expects to pay this year,
reflecting an annualized dividend of $0.92 per share, which represents
an increase of $0.09, or 11 percent, versus last year's annual dividend
of $0.83 per share.
Live Webcast
Mattel will webcast its 2011 first quarter 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
midnight Eastern time on April 19th and may be accessed by dialing
706-645-9291. The passcode is 51468985.
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 2011, Mattel was named as
one of FORTUNE Magazine's "100 Best Companies to Work For" for the
fourth year in a row, and was also ranked among Corporate Responsibility
Magazine's "100 Best Corporate Citizens." With worldwide headquarters in
El Segundo, Calif., Mattel employs approximately 31,000 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 relating to
the Company's expected financial performance and expected quarterly cash
dividend payments in 2011. 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.
