FOR IMMEDIATE RELEASE CONTACT: Glenn Bozarth
April 16, 1996 (310) 252-3521
MATTEL REPORTS RECORD FIRST QUARTER SALES AND EARNINGS
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LOS ANGELES, April 16 -- Mattel, Inc. today reported record first quarter
net income of $29.9 million or $.11 per share, up 11 percent from $27.0
million or $.09 per share in 1995. Net sales reached the record level of
$585.9 million, up 8 percent from $543.6 million last year.
"The clean retail sell-through we experienced at the end of 1995
resulted in strong demand for our product during what is traditionally our
lowest volume quarter of the year," John W. Amerman, Mattel's chairman and
chief executive officer, said.
"The first quarter growth was fueled by excellent Barbie, Fisher-
Price, Hot Wheels and Cabbage Patch performance. In fact, in some cases we
were unable to meet consumer demand. The balance of the year will see many
exciting new product introductions," Amerman said. "The second quarter
release of the Disney animated adventure The Hunchback of Notre Dame; the
third quarter launch of The Mighty Ducks television series, and the holiday
release of the live action adaptation of 101 Dalmatians will all be
-more-
2-2-2-2-2
supported with Disney toy lines by Mattel. In addition, the
second half will see the introduction of Construx, a new construction
product line; Wonder Tools, a joint effort of Fisher-Price and Compaq
Computer Corporation, and Mattel Media CD-ROM software.
"Based on our excellent product line, we are confident that Mattel
will achieve its eighth consecutive year of record sales and record
earnings in 1996," Amerman said.
With $3.6 billion in annual revenues for 1995, Mattel is the worldwide
leader in the design, manufacture and marketing of children's toys. Four
principal core brands -- Barbie, Fisher-Price, Disney and Hot Wheels --
account for 80 percent of company sales. Headquartered 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
THREE MONTHS ENDED
-------------------------
March 31, March 31,
(In thousands, except per share amounts) 1996 1995
- ---------------------------------------- ---------- ----------
Net Sales $ 585,879 $ 543,570
Cost of sales 300,102 284,545
---------- ----------
Gross Profit 285,777 259,025
Advertising and promotion expenses 80,289 78,600
Other selling and administrative expenses 142,920 131,918
Other expense (income), net 3,665 (3,414)
---------- ----------
Operating Profit 58,903 51,921
Interest expense 14,418 11,077
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Income Before Income Taxes 44,485 40,844
Provision for income taxes 14,600 13,886
---------- ----------
Net Income $ 29,885 $ 26,958
========== ==========
Net Income Per Share (a) $ 0.11 $ 0.09
========== ==========
Average Number of Common and Common
Equivalent Shares Outstanding 281,836 279,853
========== ==========
MATTEL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
March 31, March 31, Dec. 31,
(In thousands) 1996 1995 1995
- -------------- ----------- ----------- -----------
ASSETS
Cash and marketable securities $ 58,156 $ 89,349 $ 483,457
Accounts receivable, net 769,027 701,190 679,283
Inventories 438,440 414,184 350,841
Prepaid expenses and other current assets 172,987 202,915 177,238
----------- ----------- -----------
Total current assets 1,438,610 1,407,638 1,690,819
Property, plant and equipment, net 522,513 429,983 499,314
Other assets 498,518 500,845 505,376
----------- ----------- -----------
Total Assets $ 2,459,641 $ 2,338,466 $ 2,695,509
=========== =========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Notes payable, net $ 46,902 $ 167,820 $ 15,520
Current portion of long-term liabilities 2,156 2,547 33,215
Accounts payable and accrued liabilities 413,126 444,446 660,763
Income taxes payable 117,556 162,048 138,183
----------- ----------- -----------
Total current liabilities 579,740 776,861 847,681
Long-term debt 260,702 264,810 260,868
Medium-Term notes 220,000 110,500 220,000
Other long-term liabilities 99,447 84,058 91,791
Shareholders' equity 1,299,752 1,102,237 1,275,169
----------- ----------- -----------
Total Liabilities and Shareholders' Equity $ 2,459,641 $ 2,338,466 $ 2,695,509
=========== =========== ===========
<FN>
(a) Share and per share data for the 1995 first quarter reflect the retroactive effect
of a 5/4 stock split declared in February 1996.