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Mattel Reports 2012 Financial Results And Declares Quarterly Dividend

Stocks in this article: MAT

1 Consists of the North America Division (U.S. & Canada) and American Girl

                                   
 
MATTEL, INC. AND SUBSIDIARIES                       EXHIBIT I
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
RECONCILIATION OF NON-GAAP TO GAAP FINANCIAL MEASURES
 
 
For the Three Months Ended December 31,

2012 As Reported vs.

2012 Adjusted vs.

2012 2011

2011 As Reported

2011 As Reported

As Reported

Impact of Litigation Charge

Adjusted As Reported

 

 

 

 

$ Amt

% Net Sales

$ Amt $ Amt

% Net Sales

$ Amt

% Net Sales

Yr/Yr $ Change

Yr/Yr % Change

Yr/Yr $ Change

Yr/Yr % Change

(In millions, except per share and percentage information)

(In millions, except percentage information)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Sales

$

2,255.9

$

$

2,255.9

$

2,153.8

$

102.1

5

%

$

102.1

5

%

Cost of sales

1,030.0   45.7 %

  1,030.0   45.7 % 993.4   46.1 % 36.6   4 % 36.6   4 %
Gross Profit 1,225.9 54.3 %

1,225.9 54.3 % 1,160.4 53.9 % 65.5 6 % 65.5 6 %
Advertising and promotion expenses 272.8 12.1 %

272.8 12.1 % 261.4 12.1 % 11.4 4 % 11.4 4 %
Other selling and administrative expenses 579.6   25.7 % 137.8   441.8   19.6 % 401.5   18.6 % 178.1   44 % 40.3   10 %
Operating Income 373.5 16.6 % (137.8 ) 511.3 22.7 % 497.5 23.1 % (124.0 ) -25 % 13.8 3 %
Interest expense 23.5 1.0 %

23.5 1.0 % 23.5 1.1 % - 0 % - 0 %
Interest (income) (1.7 ) -0.1 %

(1.7 ) -0.1 % (1.4 ) -0.1 % (0.3 ) 19 % (0.3 ) 19 %
Other non-operating (income) expense, net (5.0 )

  (5.0 ) 6.5   (11.5 ) (11.5 )
Income Before Income Taxes 356.7 15.8 % (137.8 ) 494.5 21.9 % 468.9 21.8 % (112.2 ) -24 % 25.6 5 %
Provision for income taxes 50.2   (50.7 ) 100.9   98.3   (48.1 ) -49 % 2.6   3 %
 
Net Income $ 306.5   13.6 % $ (87.1 ) $ 393.6   17.4 % $ 370.6   17.2 % $ (64.1 ) -17 % $ 23.0   6 %
 
Net Income Per Common Share - Basic $ 0.88   $ (0.25 ) $ 1.13   $ 1.08  
 
Weighted average number of common shares 343.6  

  343.6   339.4  
 
 
Net Income Per Common Share - Diluted $ 0.87   $ (0.25 ) $ 1.12   $ 1.07  

 

Weighted average number of common and potential common shares 348.4  

  348.4   343.5  
 
                                     
 
MATTEL, INC. AND SUBSIDIARIES                       EXHIBIT II
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
RECONCILIATION OF NON-GAAP TO GAAP FINANCIAL MEASURES
 
 
For the Year Ended December 31, 2012 As Reported vs. 2012 Adjusted vs.
2012   2011   2011 As Reported 2011 As Reported
As Reported

Impact of Litigation Charge

    Adjusted As Reported

 

 

 

 

$ Amt

% Net Sales

$ Amt   $ Amt

% Net Sales

$ Amt

% Net Sales

Yr/Yr $ Change

Yr/Yr % Change

Yr/Yr $ Change

Yr/Yr % Change

(In millions, except per share and percentage information)

(In millions, except percentage information)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Sales

$

6,420.9

$

$

6,420.9

$

6,266.0

$

154.9

2

%

$

154.9

2

%

Cost of sales 3,011.7   46.9 %

  3,011.7   46.9 % 3,120.2   49.8 % (108.5 ) -3 % (108.5 ) -3 %
Gross Profit 3,409.2 53.1 %

3,409.2 53.1 % 3,145.8 50.2 % 263.4 8 % 263.4 8 %
Advertising and promotion expenses 717.8 11.2 %

717.8 11.2 % 699.2 11.2 % 18.6 3 % 18.6 3 %
Other selling and administrative expenses 1,670.4   26.0 % 137.8   1,532.6   23.9 % 1,405.5   22.4 % 264.9   19 % 127.1   9 %
Operating Income 1,021.0 15.9 % (137.8 ) 1,158.8 18.0 % 1,041.1 16.6 % (20.1 ) -2 % 117.7 11 %
Interest expense 88.8 1.4 %

88.8 1.4 % 75.3 1.2 % 13.5 18 % 13.5 18 %
Interest (income) (6.8 ) -0.1 %

(6.8 ) -0.1 % (8.1 ) -0.1 % 1.3 -15 % 1.3 -15 %
Other non-operating (income) expense, net (6.0 )

  (6.0 ) 3.2   (9.2 ) (9.2 )
Income Before Income Taxes 945.0 14.7 % (137.8 ) 1,082.8 16.9 % 970.7 15.5 % (25.7 ) -3 % 112.1 12 %
Provision for income taxes 168.5   (50.7 ) 219.2   202.2   (33.7 ) -17 % 17.0   8 %
 
Net Income $ 776.5   12.1 % $ (87.1 ) $ 863.6   13.4 % $ 768.5   12.3 % $ 8.0   1 % $ 95.1   12 %
 
Net Income Per Common Share - Basic $ 2.25   $ (0.25 ) $ 2.50   $ 2.20  
 
Weighted average number of common shares 341.7  

  341.7   344.7  
 
 
Net Income Per Common Share - Diluted $ 2.22   $ (0.25 ) $ 2.47   $ 2.18  

 

Weighted average number of common and potential common shares 346.2  

  346.2   348.4  
 
                                                     
 
MATTEL, INC. AND SUBSIDIARIES       EXHIBIT III
WORLDWIDE GROSS SALES INFORMATION (Unaudited)
 
Three Months Ended December 31, Year Ended December 31,
 

(In millions, except percentage information)

  2012     2011     2012     2011  
 

Worldwide Gross Sales:

Mattel Girls & Boys Brands $ 1,411.5 $ 1,346.1 $ 4,186.6 $ 4,120.6
% Change 5 % 7 % 2 % 14 %
Pos./(Neg.) Impact of Currency (in % pts) -1 -2 -3 2
 
Fisher-Price Brands 744.5 700.4 2,252.3 2,159.2
% Change 6 % -10 % 4 % -3 %
Pos./(Neg.) Impact of Currency (in % pts) -1 -1 -2 1
 
American Girl Brands 320.8 283.9 567.5 510.9
% Change 13 % 4 % 11 % 5 %
 
Other   18.2     22.2     46.2     50.4  
Gross Sales $ 2,495.0   $ 2,352.6   $ 7,052.6   $ 6,841.1  
% Change 6 % 1 % 3 % 7 %
Pos./(Neg.) Impact of Currency (in % pts) -1 -1 -3 1
 

Reconciliation of Non-GAAP to GAAP Financial Measure:

Gross Sales $ 2,495.0 $ 2,352.6 $ 7,052.6 $ 6,841.1
Sales Adjustments   (239.1 )   (198.8 )   (631.7 )   (575.1 )
Net Sales $ 2,255.9   $ 2,153.8   $ 6,420.9   $ 6,266.0  
% Change 5 % 1 % 2 % 7 %
Pos./(Neg.) Impact of Currency (in % pts) -1 -1 -2 1
 
                   
 
 
MATTEL, INC. AND SUBSIDIARIES         EXHIBIT IV
CONDENSED CONSOLIDATED BALANCE SHEETS
 
At December 31,
2012 2011

(In millions)

(Unaudited)

 
Assets
Cash and equivalents $ 1,335.7 $ 1,369.1
Accounts receivable, net 1,226.8 1,246.7
Inventories 465.1 487.0
Prepaid expenses and other current assets   529.2     340.9  
Total current assets 3,556.8 3,443.7
 
Property, plant, and equipment, net 593.2 523.9
Other noncurrent assets   2,376.8     1,704.0  
Total Assets $   6,526.8   $   5,671.6  
 
Liabilities and Stockholders' Equity
Short-term borrowings $ 9.8 $ 8.0
Current portion of long-term debt 400.0 50.0
Accounts payable and accrued liabilities 1,273.2 953.8
Income taxes payable   33.0     27.1  
Total current liabilities 1,716.0 1,038.9
 
Long-term debt 1,100.0 1,500.0
Other noncurrent liabilities 643.8 522.1
Stockholders' equity   3,067.0     2,610.6  
Total Liabilities and Stockholders' Equity $   6,526.8   $   5,671.6  
                               
SUPPLEMENTAL BALANCE SHEET AND CASH FLOW DATA (Unaudited)
 
At December 31,

(In millions, except days and percentage information)

2012 2011
 

Key Balance Sheet Data:

Accounts receivable, net days of sales outstanding (DSO) 49 52
Total debt outstanding $ 1,509.8 $ 1,558.0
Total debt-to-total capital ratio 33.0 % 37.4 %
 
Year Ended December 31,

(In millions)

2012 (a)

2011
 

Condensed Cash Flow Data:

Cash flows from operating activities $ 1,276 $ 665
 
Cash flows (used for) investing activities (900 ) (175 )
 
Cash flows (used for) financing activities and other   (409 )   (402 )
 
(Decrease) Increase in cash and equivalents $ (33 ) $ 88  
 
(a) Amounts shown are preliminary estimates. Actual amounts will be reported in Mattel's Annual Report on Form 10-K for the year ended December 31, 2012.
 
                             
 
MATTEL, INC. AND SUBSIDIARIES     EXHIBIT V
COMPUTATION OF INCOME PER COMMON AND POTENTIAL COMMON SHARE (Unaudited)
RECONCILIATION OF NON-GAAP TO GAAP FINANCIAL MEASURES
 
For the Three Months Ended For the Year Ended
December 31, 2012 December 31, 2012
Impact of Impact of
Litigation Litigation
As Reported Charge Adjusted As Reported Charge Adjusted
(In millions, except per share amounts) (In millions, except per share amounts)

BASIC

 
Net income $ 306.5 $ (87.1 ) $ 393.6 $ 776.5 $ (87.1 ) $ 863.6
Less net income allocable to participating RSUs   (3.2 )   0.9     (4.1 )   (7.8 )   0.9     (8.7 )
Net income available for basic common shares $ 303.3   $ (86.2 ) $ 389.5   $ 768.7   $ (86.2 ) $ 854.9  
Weighted average common shares outstanding   343.6     -     343.6     341.7     -     341.7  

Basic Net Income Per Common Share

$ 0.88   $ (0.25 ) $ 1.13   $ 2.25   $ (0.25 ) $ 2.50  
 

DILUTED

 
Net income $ 306.5 $ (87.1 ) $ 393.6 $ 776.5 $ (87.1 ) $ 863.6
Less net income allocable to participating RSUs   (3.2 )   0.9     (4.0 )   (7.7 )   0.9     (8.6 )
Net income available for diluted common shares $ 303.3   $ (86.2 ) $ 389.6   $ 768.8   $ (86.2 ) $ 855.0  
Weighted average common shares outstanding 343.6 - 343.6 341.7 - 341.7
Weighted average common equivalent shares arising from:
Dilutive stock options and non-participating RSUs   4.8     -     4.8     4.5     -     4.5  
Weighted average number of common and potential common shares   348.4     -     348.4     346.2     -     346.2  

Diluted Net Income Per Common Share

$ 0.87   $ (0.25 ) $ 1.12   $ 2.22   $ (0.25 ) $ 2.47  
 




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