Mattel Reports Second Quarter 2011 Financial Results and Declares Quarterly Dividend
Second Quarter Highlights
Worldwide net sales up 14 percent;
Domestic gross sales up 7 percent and international gross sales up
Worldwide gross sales for core brands: Barbie® up
12 percent; Hot Wheels® down 2 percent; Core
Fisher-Price® up 9 percent and American Girl®
brands up 13 percent;
Gross margin decreased 20 basis points of net sales; SG&A decreased
280 basis points of net sales;
Operating income of $109.3 million compared to operating income of
$69.4 million in the second quarter of 2010; and
Earnings per share of $0.23 vs. prior year earnings per share of
Board declares third 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 5.8 million shares of its common stock at a
cost of approximately $152 million.
EL SEGUNDO, Calif.--(BUSINESS WIRE)--
Mattel, Inc. (NASDAQ: MAT) today reported 2011 second quarter financial
results. For the quarter, the company reported net income of $80.5
million, or $0.23 per share, compared to last year's second quarter net
income of $51.6 million, or $0.14 per share.
"For the second quarter, I am very pleased with the continued global
momentum across our portfolio, including core brand strength as well as
the outstanding performance of the CARS 2® entertainment
property," said Robert A. Eckert, chairman and chief executive officer
of Mattel. "Despite the mixed economic news, I am encouraged by our
strong operating results and continue to believe we are well-positioned
for the all-important second half of the year."
For the quarter, net sales were $1.16 billion, up 14 percent compared to
$1.02 billion last year, including favorable changes in currency
exchange rates of 5percentage points. On a regional basis,
second quarter gross sales increased 7 percent in the U.S. and increased
23 percent in international markets, including favorable changes in
currency exchange rates of 11percentage points. Operating income
for the quarter was $109.3 million, compared to prior year's operating
income for the quarter of $69.4 million.
The company's debt-to-total-capital ratio was 28.0percent.
Consistent with the seasonality of the business, net cash flow used for
operating activities was approximately $227 million in the first half of
2011, a decrease of $145 million, compared with a use of approximately
$372 million in 2010.
Cash flows used for financing and other activities were $592 million in
the first half of 2011, an increased usage of $489 million, compared to
approximately $103 million used for financing and other activities in
2010, primarily reflecting increased debt repayments consistent with
scheduled maturities, dividend payments and increased share repurchases.
During the second quarter of 2011, the company repurchased approximately
5.8 million shares of its common stock at a cost of approximately $152
Sales by Business Unit
Mattel Girls and Boys Brands
For the second quarter, worldwide gross sales for the Mattel Girls &
Boys Brands business unit were $795.6 million, up 22 percent versus a
year ago. Worldwide gross sales for the Barbie® brand were up
12 percent. Worldwide gross sales for Other Girls Brands were up 29
percent, driven by the Monster High® and Disney Princess™ doll lines.
Worldwide gross sales for the Wheels business, which includes the Hot
Wheels®, Matchbox® and Tyco R/C®
brands, were down 2 percent. Worldwide gross sales for the Entertainment
business, which includes Radica® and Games and Puzzles, were
up 41 percent for the quarter, primarily driven by growth in the CARS 2®
and Green Lantern® properties.
Second 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 $400 million, or up 4 percent versus the prior year, primarily
driven by sales of Baby Gear and Infant and Preschool products, as well
as solid performance in the Thomas and Friends® line.
American Girl Brands
Second quarter gross sales for the American Girl® Brands
business unit, which offers American Girl® branded products
directly to consumers, were $66.4 million, up 13 percent versus last
year, primarily reflecting sales of products related to Kanani™, the
2011 Girl of the Year®.
Additionally, the Company announced today that its Board of Directors
declared a third quarter cash dividend of $0.23 per share on the
Company's common stock. The dividend will be payable on September 23rd,
2011 to stockholders of record on August 31st, 2011. The
dividend is the third 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.
Mattel will webcast its 2011 second 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
Tuesday, July 19 at midnight Eastern time and may be accessed by dialing
+ 1 (706) 645-9291. The passcode is 76959260.
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."
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
Note: This press release contains forward-looking statements relating to
the Company's expected 2011 financial performance and quarterly cash
dividend payments. 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.
MATTEL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
For the Three Months Ended June 30,
For the Six Months Ended June 30,
Yr / Yr
Yr / Yr
(In millions, except per share and