Exhibit 99.0
MATTEL, INC. AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
CONTINUING OPERATIONS—PRO FORMA BEFORE CHARGES AND AMORTIZATION OF GOODWILL
(In millions, except per share amts) | 1997 | 1998 | 1999 | 2000 | 2001 | 2002 | ||||||||||||||||||
Key P&L Data: | ||||||||||||||||||||||||
Net Sales | $ | 4,646.4 | $ | 4,579.5 | $ | 4,502.7 | $ | 4,565.5 | $ | 4,687.9 | $ | 4,885.3 | ||||||||||||
Gross Profit | $ | 2,224.1 | $ | 2,154.5 | $ | 2,067.2 | $ | 2,071.8 | $ | 2,177.1 | $ | 2,371.4 | ||||||||||||
% of Net Sales | 47.9 | % | 47.0 | % | 45.9 | % | 45.4 | % | 46.4 | % | 48.5 | % | ||||||||||||
Advertising | $ | 620.8 | $ | 631.1 | $ | 569.7 | $ | 573.5 | $ | 543.3 | $ | 552.5 | ||||||||||||
% of Net Sales | 13.4 | % | 13.8 | % | 12.6 | % | 12.6 | % | 11.6 | % | 11.3 | % | ||||||||||||
SG&A | $ | 790.0 | $ | 875.9 | $ | 881.3 | $ | 915.4 | $ | 958.2 | $ | 1,037.0 | ||||||||||||
% of Net Sales | 17.0 | % | 19.1 | % | 19.6 | % | 20.0 | % | 20.4 | % | 21.2 | % | ||||||||||||
Operating Income Before Charges & Goodwill | $ | 813.3 | $ | 647.5 | $ | 616.2 | $ | 582.9 | $ | 675.6 | $ | 781.9 | ||||||||||||
% of Net Sales | 17.5 | % | 14.1 | % | 13.7 | % | 12.8 | % | 14.4 | % | 16.0 | % | ||||||||||||
Income Before Charges & Goodwill | $ | 524.6 | $ | 389.5 | $ | 362.7 | $ | 328.5 | $ | 386.3 | $ | 486.9 | ||||||||||||
% of Net Sales | 11.3 | % | 8.5 | % | 8.1 | % | 7.2 | % | 8.2 | % | 10.0 | % | ||||||||||||
EPS Before Charges & Goodwill—Diluted | $ | 1.36 | $ | 0.90 | $ | 0.84 | $ | 0.77 | $ | 0.89 | $ | 1.10 | ||||||||||||
Average Number of Common Shares—Diluted | 378.7 | 421.7 | 425.3 | 427.1 | 436.2 | 441.3 | ||||||||||||||||||
Key Balance Sheet Data: | ||||||||||||||||||||||||
Accounts Receivable, Net | $ | 1,091.4 | $ | 939.4 | $ | 959.6 | $ | 794.5 | $ | 665.8 | $ | 490.8 | ||||||||||||
Days of Sales Outstanding (DSO) | 57 | 59 | 58 | 47 | 38 | 26 | ||||||||||||||||||
Inventories | $ | 428.8 | $ | 584.4 | $ | 436.3 | $ | 489.7 | $ | 487.5 | $ | 338.6 | ||||||||||||
Days of Supply (DOS) | 92 | 132 | 101 | 106 | 107 | 74 | ||||||||||||||||||
Total Debt Outstanding | $ | 695.2 | $ | 1,151.0 | $ | 1,355.6 | $ | 1,501.5 | $ | 1,269.1 | $ | 847.6 | ||||||||||||
Total Debt-to-Total Capitalization | 26.4 | % | 34.6 | % | 40.9 | % | 51.7 | % | 42.2 | % | 30.0 | % | ||||||||||||
Worldwide Gross Sales: | ||||||||||||||||||||||||
Mattel Brands | $ | 3,018.1 | $ | 2,909.2 | $ | 2,988.5 | $ | 3,093.4 | $ | 3,236.3 | ||||||||||||||
% Change | -4 | % | 3 | % | 4 | % | 5 | % | ||||||||||||||||
Fisher-Price Brands | 1,679.1 | 1,630.0 | 1,633.2 | 1,617.9 | 1,699.9 | |||||||||||||||||||
% Change | -3 | % | 0 | % | -1 | % | 5 | % | ||||||||||||||||
American Girl Brands | 213.2 | 298.6 | 324.0 | 340.8 | 350.2 | |||||||||||||||||||
% Change | 40 | % | 9 | % | 5 | % | 3 | % | ||||||||||||||||
Other | 65.0 | 38.3 | 19.4 | 20.5 | 26.9 | |||||||||||||||||||
Gross Sales | $ | 4,975.4 | $ | 4,876.1 | $ | 4,965.1 | $ | 5,072.6 | $ | 5,313.3 | ||||||||||||||
% Change | -2 | % | 2 | % | 2 | % | 5 | % | ||||||||||||||||
Sales Adjustments | (395.9 | ) | (373.4 | ) | (399.6 | ) | (384.7 | ) | (428.0 | ) | ||||||||||||||
Net Sales | $ | 4,579.5 | $ | 4,502.7 | $ | 4,565.5 | $ | 4,687.9 | $ | 4,885.3 | ||||||||||||||
% Change | -2 | % | 1 | % | 3 | % | 4 | % |
Note—Certain financial information for prior years has been reclassified to conform to the current year’s presentation.
MATTEL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
PRO FORMA—BEFORE CHARGES AND AMORTIZATION OF GOODWILL
1997 | 1998 | 1999 | 2000 | 2001 | 2002 | |||||||||||||||||||||||||||||||||||||
(In millions, except per share amounts) | $ Amt | % Net Sales | $ Amt | % Net Sales | $ Amt | % Net Sales | $ Amt | % Net Sales | $ Amt | % Net Sales | $ Amt | % Net Sales | ||||||||||||||||||||||||||||||
Net Sales | $ | 4,646.4 | $ | 4,579.5 | $ | 4,502.7 | $ | 4,565.5 | $ | 4,687.9 | $ | 4,885.3 | ||||||||||||||||||||||||||||||
Cost of sales | 2,422.3 | 52.1 | % | 2,425.0 | 53.0 | % | 2,435.5 | 54.1 | % | 2,493.7 | 54.6 | % | 2,510.8 | 53.6 | % | 2,513.9 | 51.5 | % | ||||||||||||||||||||||||
Gross Profit | 2,224.1 | 47.9 | % | 2,154.5 | 47.0 | % | 2,067.2 | 45.9 | % | 2,071.8 | 45.4 | % | 2,177.1 | 46.4 | % | 2,371.4 | 48.5 | % | ||||||||||||||||||||||||
Advertising and promotion expenses | 620.8 | 13.4 | % | 631.1 | 13.8 | % | 569.7 | 12.6 | % | 573.5 | 12.6 | % | 543.3 | 11.6 | % | 552.5 | 11.3 | % | ||||||||||||||||||||||||
Other selling and administrative expenses | 790.0 | 17.0 | % | 875.9 | 19.1 | % | 881.3 | 19.6 | % | 915.4 | 20.0 | % | 958.2 | 20.4 | % | 1,037.0 | 21.2 | % | ||||||||||||||||||||||||
Operating Income Before Charges & Goodwill | 813.3 | 17.5 | % | 647.5 | 14.1 | % | 616.2 | 13.7 | % | 582.9 | 12.8 | % | 675.6 | 14.4 | % | 781.9 | 16.0 | % | ||||||||||||||||||||||||
Interest expense | 90.1 | 1.9 | % | 110.8 | 2.4 | % | 131.6 | 2.9 | % | 153.0 | 3.3 | % | 155.1 | 3.3 | % | 113.9 | 2.3 | % | ||||||||||||||||||||||||
Interest (income) | (8.0 | ) | -0.1 | % | (12.7 | ) | -0.3 | % | (5.5 | ) | -0.1 | % | (11.0 | ) | -0.2 | % | (15.5 | ) | -0.3 | % | (17.7 | ) | -0.3 | % | ||||||||||||||||||
Other non-operating (income)/expense, net | 0.3 | 0.0 | % | 7.7 | 0.2 | % | (8.0 | ) | -0.2 | % | (10.7 | ) | -0.2 | % | 4.2 | 0.1 | % | 15.9 | 0.3 | % | ||||||||||||||||||||||
Income Before Income Taxes | 730.9 | 15.7 | % | 541.7 | 11.8 | % | 498.1 | 11.1 | % | 451.6 | 9.9 | % | 531.8 | 11.3 | % | 669.8 | 13.7 | % | ||||||||||||||||||||||||
Provision for income taxes | 206.3 | 4.4 | % | 152.2 | 3.3 | % | 135.4 | 3.0 | % | 123.1 | 2.7 | % | 145.5 | 3.1 | % | 182.9 | 3.7 | % | ||||||||||||||||||||||||
Income Before Charges & Goodwill | $ | 524.6 | 11.3 | % | $ | 389.5 | 8.5 | % | $ | 362.7 | 8.1 | % | $ | 328.5 | 7.2 | % | $ | 386.3 | 8.2 | % | $ | 486.9 | 10.0 | % | ||||||||||||||||||
Effective Tax Rate | 28.2 | % | 28.1 | % | 27.2 | % | 27.3 | % | 27.4 | % | 27.3 | % | ||||||||||||||||||||||||||||||
EPS Before Charges & Goodwill—Basic | $ | 1.39 | $ | 0.98 | $ | 0.87 | $ | 0.77 | $ | 0.90 | $ | 1.12 | ||||||||||||||||||||||||||||||
Avg. Number of Common Shares—Basic | 369.9 | 390.2 | 414.2 | 426.2 | 431.0 | 435.8 | ||||||||||||||||||||||||||||||||||||
EPS Before Charges & Goodwill—Diluted | $ | 1.36 | $ | 0.90 | $ | 0.84 | $ | 0.77 | $ | 0.89 | $ | 1.10 | ||||||||||||||||||||||||||||||
Avg. Number of Common Shares—Diluted | 378.7 | 421.7 | 425.3 | 427.1 | 436.2 | 441.3 |
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions) | 1997 | 1998 | 1999 | 2000 | 2001 | 2002 | ||||||||||||
Assets | ||||||||||||||||||
Cash and short-term investments | $ | 695.0 | $ | 212.5 | $ | 247.4 | $ | 232.4 | $ | 616.6 | $ | 1,267.0 | ||||||
Accounts receivable, net | 1,091.4 | 939.4 | 959.6 | 794.5 | 665.8 | 490.8 | ||||||||||||
Inventories | 428.8 | 584.4 | 436.3 | 489.7 | 487.5 | 338.6 | ||||||||||||
Prepaid expenses and other current assets | 246.5 | 277.9 | 166.2 | 189.8 | 291.9 | 292.6 | ||||||||||||
Total current assets | 2,461.7 | 2,014.2 | 1,809.5 | 1,706.4 | 2,061.8 | 2,389.0 | ||||||||||||
Property, plant and equipment, net | 601.6 | 736.5 | 724.8 | 647.8 | 626.7 | 599.6 | ||||||||||||
Other assets | 740.5 | 1,467.9 | 1,635.3 | 1,902.6 | 1,821.3 | 1,471.1 | ||||||||||||
Net investment in discontinued operations | 111.2 | 350.6 | 462.0 | 11.5 | — | — | ||||||||||||
Total Assets | $ | 3,915.0 | $ | 4,569.2 | $ | 4,631.6 | $ | 4,268.3 | $ | 4,509.8 | $ | 4,459.7 | ||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||||
Short-term borrowings | $ | 17.5 | $ | 134.0 | $ | 369.5 | $ | 226.4 | $ | 38.1 | $ | 25.2 | ||||||
Current portion of long-term liabilities | 13.6 | 33.5 | 3.2 | 32.7 | 210.1 | 182.3 | ||||||||||||
Accounts payable and accrued liabilities | 939.6 | 900.8 | 965.5 | 997.3 | 1,078.2 | 1,238.3 | ||||||||||||
Income taxes payable | 202.7 | 205.3 | 184.8 | 200.9 | 239.8 | 203.0 | ||||||||||||
Total current liabilities | 1,173.4 | 1,273.6 | 1,523.0 | 1,457.3 | 1,566.2 | 1,648.8 | ||||||||||||
Long-term debt | 664.1 | 983.5 | 982.9 | 1,242.4 | 1,020.9 | 640.1 | ||||||||||||
Other long-term liabilities | 144.2 | 141.3 | 163.0 | 165.5 | 184.2 | 192.1 | ||||||||||||
Stockholders’ equity | 1,933.3 | 2,170.8 | 1,962.7 | 1,403.1 | 1,738.5 | 1,978.7 | ||||||||||||
Total Liabilities and Stockholders’ Equity | $ | 3,915.0 | $ | 4,569.2 | $ | 4,631.6 | $ | 4,268.3 | $ | 4,509.8 | $ | 4,459.7 | ||||||
Note—Certain financial information for prior years has been reclassified to conform to the current year’s presentation.
MATTEL, INC. AND SUBSIDIARIES
SEGMENT INFORMATION
CONTINUING OPERATIONS - PRO FORMA BEFORE CHARGES AND AMORTIZATION OF GOODWILL
(In millions) | 1999 | 2000 | 2001 | 2002 | ||||||||||||
Segment Revenues: | ||||||||||||||||
Domestic | ||||||||||||||||
Mattel Brands | $ | 1,835.8 | $ | 1,890.4 | $ | 1,817.3 | $ | 1,790.0 | ||||||||
Fisher-Price Brands | 1,185.5 | 1,233.0 | 1,234.2 | 1,282.2 | ||||||||||||
American Girl Brands | 298.6 | 324.0 | 340.8 | 350.2 | ||||||||||||
3,319.9 | 3,447.4 | 3,392.3 | 3,422.4 | |||||||||||||
International | 1,556.2 | 1,517.7 | 1,680.3 | 1,890.9 | ||||||||||||
Total Company Gross Sales | 4,876.1 | 4,965.1 | 5,072.6 | 5,313.3 | ||||||||||||
Sales Adjustments | (373.4 | ) | (399.6 | ) | (384.7 | ) | (428.0 | ) | ||||||||
Net Sales | $ | 4,502.7 | $ | 4,565.5 | $ | 4,687.9 | $ | 4,885.3 | ||||||||
Segment Income: | ||||||||||||||||
Domestic | ||||||||||||||||
Mattel Brands | $ | 399.7 | $ | 401.4 | $ | 420.5 | $ | 446.0 | ||||||||
Fisher-Price Brands | 144.9 | 153.1 | 157.0 | 187.0 | ||||||||||||
American Girl Brands | 31.2 | 36.3 | 33.3 | 58.1 | ||||||||||||
575.8 | 590.8 | 610.8 | 691.1 | |||||||||||||
International | 190.9 | 153.6 | 198.3 | 305.0 | ||||||||||||
766.7 | 744.4 | 809.1 | 996.1 | |||||||||||||
Corporate and other expense | (150.5 | ) | (161.5 | ) | (133.5 | ) | (214.2 | ) | ||||||||
Operating Income Before Charges & Goodwill | $ | 616.2 | $ | 582.9 | $ | 675.6 | $ | 781.9 | ||||||||
1998 | 1999 | 2000 | 2001 | 2002 | ||||||||||||||||
Gross Sales by Geographic Area: | ||||||||||||||||||||
Domestic | $ | 3,294.4 | $ | 3,319.9 | $ | 3,447.4 | $ | 3,392.3 | $ | 3,422.4 | ||||||||||
% Change | 1 | % | 4 | % | -2 | % | 1 | % | ||||||||||||
International | $ | 1,681.0 | $ | 1,556.2 | $ | 1,517.7 | $ | 1,680.3 | $ | 1,890.9 | ||||||||||
% Change | -7 | % | -2 | % | 11 | % | 13 | % | ||||||||||||
% of Total Gross Sales | 34 | % | 32 | % | 31 | % | 33 | % | 36 | % |
Note—Certain financial information for prior years has been reclassified to conform to the current year’s presentation.