FOR IMMEDIATE RELEASE Contact: Glenn Bozarth
February 7, 1996 Mattel, Inc.
(310) 252-3521
MATTEL SALES AND EARNINGS UP SHARPLY IN QUARTER, RESULTING IN
SEVENTH CONSECUTIVE YEAR OF RECORD PERFORMANCE
STOCK SPLIT, DIVIDEND INCREASE
AND INCREASED SHARE REPURCHASE PROGRAM ANNOUNCED
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LOS ANGELES, February 7 -- Mattel, Inc. today reported 1995 net income of
$358 million or $1.58 per share, up 18 percent from $303 million or $1.33
per share before a charge to earnings that reduced 1994 net income to $256
million. Net sales for 1995 reached $3.64 billion, a 14 percent increase
from $3.20 billion in 1994.
Results for the year were bolstered by a very strong fourth quarter,
with net income increasing 25 percent to $112 million or $.50 per share,
versus $89.7 million or $.39 per share before a charge that reduced net
income in the 1994 quarter to $42.9 million. Net sales for the 1995
quarter were $1.16 billion, an increase of 12 percent from $1.03 billion in
the year-ago quarter.
"1995 became the seventh consecutive year in which we have reported
record sales and earnings performance," John W. Amerman, Mattel's chairman
and chief executive officer, said. "This performance was accomplished
despite substantial price increases implemented by resin and packaging
material suppliers. In addition, the negative impact of a sluggish
worldwide economic
-more-
2-2-2-2-2
climate had to be addressed," he said. "Despite these obstacles, we
demonstrated that our strategic approach -- involving a core brand focus
and financial discipline -- can provide stability and predictability on a
long-term basis.
"Strong consumer demand led to an excellent sell-through for our core
brands of Barbie, Fisher-Price, Disney and Hot Wheels," Amerman said.
"This puts us in an excellent position going into 1996. Additionally,
retailer reaction has been outstanding during early showings of new
products that will officially debut at American International Toy Fair next
week. These factors give us confidence that Mattel's strong momentum will
continue in 1996."
The company also announced that the Mattel, Inc. board of directors has
declared a five-for-four split of the company's common stock, providing the
equivalent of a 25 percent dividend increase, and has increased its share
repurchase program to include authorization to buy back an average of seven
million shares annually. As a result of the stock split, shareholders will
receive one additional share of Mattel common stock for every four shares
they hold as of the February 16, 1996 record date, with shares scheduled to
be issued on March 1, 1996.
"Mattel management views the enhancement of shareholder value as a top
priority, and we will continue to take actions that will directly benefit
our shareholders, while demonstrating our confidence in the future of
Mattel," Amerman said.
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 YEAR ENDED
------------------------ ------------------------
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
(In thousands, except per share amounts) 1995 1994 1995 1994
- ---------------------------------------- ----------- ----------- ----------- -----------
Net Sales $ 1,155,284 $ 1,030,409 $ 3,638,812 $ 3,205,025
Cost of sales 574,785 510,475 1,849,650 1,603,522
----------- ----------- ----------- -----------
Gross Profit 580,499 519,934 1,789,162 1,601,503
Advertising and promotion expenses 216,824 189,547 584,497 516,485
Other selling and administrative expenses 170,286 160,437 603,061 536,443
Mattel restructuring costs (a) - 72,000 - 72,000
Other (income) expense, net 8,282 16,927 (4,887) 27,494
----------- ----------- ----------- -----------
Operating Profit 185,107 81,023 606,491 449,081
Interest expense 21,785 17,562 73,589 55,449
----------- ----------- ----------- -----------
Income Before Income Taxes 163,322 63,461 532,902 393,632
Provision for income taxes 51,300 20,600 175,100 137,800
----------- ----------- ----------- -----------
Net Income $ 112,022 $ 42,861 $ 357,802 $ 255,832
=========== =========== =========== ===========
Net Income Per Share (b) $ 0.50 $ 0.19 $ 1.58 $ 1.12
=========== =========== =========== ===========
Average Number of Common and Common
Equivalent Shares Outstanding (b) 224,733 224,493 224,812 223,939
=========== =========== =========== ===========
MATTEL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
Dec. 31, Dec. 31,
(In thousands) 1995 1994
- -------------- ----------- -----------
ASSETS
Cash and marketable securities $ 483,457 $ 259,681
Accounts receivable, net 679,283 762,024
Inventories 350,841 339,143
Prepaid expenses and other current assets 177,238 182,675
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Total current assets 1,690,819 1,543,523
Property, plant and equipment, net 499,314 415,921
Other assets 505,376 499,582
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Total Assets $ 2,695,509 $ 2,459,026
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LIABILITIES AND SHAREHOLDERS' EQUITY
Notes payable, net $ 15,520 $ -
Current portion of long-term liabilities 33,215 3,095
Accounts payable and accrued liabilities 660,763 748,392
Income taxes payable 138,183 164,394
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Total current liabilities 847,681 915,881
Long-term debt 260,868 264,483
Medium-Term notes 220,000 110,500
Other long-term liabilities 91,791 82,472
Shareholders' equity 1,275,169 1,085,690
----------- -----------
Total Liabilities and Shareholders' Equity $ 2,695,509 $ 2,459,026
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<FN>
(a) Represents a nonrecurring charge in connection with the consolidation of
manufacturing operations and the reduction of headquarters expense and
support functions worldwide. The related tax benefit of $25.2 million is
included in the provision for income taxes.
(b) Share and per share data do not reflect the effect of a 5/4 stock split
declared February 6, 1996.