FOR IMMEDIATE RELEASE CONTACT: Glenn Bozarth
July 18, 1995 Mattel, Inc.
(310) 252-3521
MATTEL REPORTS RECORD RESULTS FOR 1995 SECOND QUARTER;
DEMAND IS STRONG FOR BARBIE, FISHER-PRICE AND POCAHONTAS TOYS
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LOS ANGELES, July 18 -- Mattel, Inc. today reported record sales and
profitability for the 1995 second quarter. Net income for the quarter
reached $67.5 million or $.30 per share, up 18 percent from $57.1 million
or $.25 per share in 1994. Net sales were $763 million, up 17 percent from
$650 million for the same quarter last year.
"This stellar performance, despite materials price increases and a
sluggish worldwide retail environment, has been driven by excellent
consumer and retail trade reception of our core product lines," John W.
Amerman, Mattel's chairman and chief executive officer, said. "Worldwide
Barbie and Fisher-Price shipments were particularly strong. In addition,
shipments of Pocahontas toys during the second quarter of this year
exceeded those of Lion King in the year-ago quarter."
For the first half of 1995, net income increased by 16 percent to a
record $94.5 million or $.41 per share, versus $81.2 million or $.35 per
share in the first six months of 1994. Year-to-date net sales were a
record $1.307 billion, up 15 percent from $1.138 billion in 1994.
2-2-2-2-2
"Year-to-date consumer takeaway is growing at a faster rate than
shipments to the retail trade," Amerman said. "This momentum plus the
second half availability of new fully-articulated Barbie dolls, the Cabbage
Patch Kids product line and new Fisher-Price items reinforces our
confidence that 1995 will be Mattel's seventh consecutive year of record
sales and record earnings."
Mattel, Inc. is the worldwide leader in the design, manufacture and
marketing of children's toys. With headquarters in El Segundo, California,
Mattel has offices and facilities in 36 countries and sells its products in
more than 140 nations throughout the world.
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MATTEL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
FOR THE FOR THE
THREE MONTHS ENDED SIX MONTHS ENDED
------------------------- -------------------------
June 30, June 30, June 30, June 30,
(In thousands, except per share amounts) 1995 1994 1995 1994
- ---------------------------------------- ---------- ---------- ---------- ----------
Net Sales $ 763,474 $ 650,263 $1,307,044 $1,137,534
Cost of sales 396,785 335,758 681,330 584,925
---------- ---------- ---------- ----------
Gross Profit 366,689 314,505 625,714 552,609
Advertising and promotion expenses 106,718 94,010 185,318 165,640
Other selling and administrative expenses 141,498 118,608 273,416 235,405
Other (income) expense, net (730) 1,315 (4,144) 4,600
---------- ---------- ---------- ----------
Operating Profit 119,203 100,572 171,124 146,964
Interest expense 17,993 11,490 29,070 19,613
---------- ---------- ---------- ----------
Income Before Income Taxes 101,210 89,082 142,054 127,351
Provision for income taxes 33,714 32,000 47,600 46,200
---------- ---------- ---------- ----------
Net Income $ 67,496 $ 57,082 $ 94,454 $ 81,151
========== ========== ========== ==========
Net Income Per Share (a) $ 0.30 $ 0.25 $ 0.41 $ 0.35
========== ========== ========== ==========
Average Number of Common and Common
Equivalent Shares Outstanding 224,553 224,723 224,220 222,418
========== ========== ========== ==========
MATTEL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
June 30, June 30, Dec. 31,
(In thousands) 1995 1994 1994
- -------------- ----------- ----------- -----------
ASSETS
Cash and marketable securities $ 87,706 $ 117,190 $ 259,681
Accounts receivable, net 920,522 879,276 762,024
Inventories 453,902 323,364 339,143
Prepaid expenses and other current assets 201,931 150,318 182,675
----------- ----------- -----------
Total current assets 1,664,061 1,470,148 1,543,523
Property, plant and equipment, net 463,735 377,407 415,921
Other assets 505,062 414,165 499,582
----------- ----------- -----------
Total Assets $ 2,632,858 $ 2,261,720 $ 2,459,026
=========== =========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Notes payable, net $ 196,992 $ 342,326 $ -
Current portion of long-term liabilities 2,612 3,301 3,095
Accounts payable and accrued liabilities 508,565 474,521 748,392
Income taxes payable 166,708 109,462 164,394
----------- ----------- -----------
Total current liabilities 874,877 929,610 915,881
Long-term debt 263,530 258,683 264,483
Medium-Term notes 250,000 - 110,500
Other long-term liabilities 85,221 80,266 82,472
Shareholders' equity 1,159,230 993,161 1,085,690
----------- ----------- -----------
Total Liabilities and Shareholders' Equity $ 2,632,858 $ 2,261,720 $ 2,459,026
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<FN>
(a) Share and per share data for the quarter and six months ended June 30, 1994
reflect the retroactive effect of a 5/4 stock split declared in December
1994.