FOR IMMEDIATE RELEASE CONTACT: Glenn Bozarth
October 15, 1996 Mattel, Inc.
(310) 252-3521
MATTEL REPORTS THIRD QUARTER
EARNINGS PER SHARE GROWTH OF 15 PERCENT,
ANNOUNCES EXPANDED STOCK BUY-BACK
---------------------------------
LOS ANGELES, October 15 -- Mattel, Inc. today reported that earnings per
share for the 1996 third quarter ended September 30 increased 15 percent to
$.61, versus $.53 in the year-ago quarter, based on net income of $168
million, up from $151 million in 1995. Net sales for the quarter totaled
$1.232 billion, up 5 percent from $1.176 billion in the 1995 third quarter.
"Our momentum continues to build as we approach the prime holiday
selling season," John W. Amerman, Mattel's chairman and chief executive
officer, said. "Excellent retail demand for our products gives us
confidence in our outlook for the full year."
For the first nine months of 1996, earnings per share increased 10
percent to $.95, versus $.86 for the same period last year, as net income
increased to $264 million from $246 million. Net sales totaled $2.595
billion, up 5 percent from $2.484 billion in 1995.
-more-
2-2-2-2-2-2
"Barbie, Hot Wheels and Cabbage Patch Kids are performing very well in
the marketplace," Amerman said. With our strongest 1996 new product
introductions now reaching retail shelves and our plans for aggressive
advertising and promotion support, we are on track to achieve excellent
fourth quarter performance."
Amerman also said that Mattel's board of directors has expanded the
company's 1996 share repurchase program to include authorization to buy
back 10 million shares, versus a previous 8.75 million-share authorization.
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.
-###-
MATTEL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
FOR THE FOR THE
THREE MONTHS ENDED NINE MONTHS ENDED
------------------------- -------------------------
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
(In thousands, except per share amounts) 1996 1995 1996 1995
- ---------------------------------------- ---------- ---------- ---------- ----------
Net Sales $1,232,179 $1,176,484 $2,595,413 $2,483,528
Cost of sales 592,909 593,535 1,291,812 1,274,865
---------- ---------- ---------- ----------
Gross Profit 639,270 582,949 1,303,601 1,208,663
Advertising and promotion expenses 187,291 182,355 369,947 367,673
Other selling and administrative expenses 173,542 159,359 471,085 432,775
Other expense (income), net 7,735 (9,025) 18,693 (13,169)
---------- ---------- ---------- ----------
Operating Profit 270,702 250,260 443,876 421,384
Interest expense 21,795 22,734 52,491 51,804
---------- ---------- ---------- ----------
Income Before Income Taxes 248,907 227,526 391,385 369,580
Provision for income taxes 80,900 76,200 127,200 123,800
---------- ---------- ---------- ----------
Net Income $ 168,007 $ 151,326 $ 264,185 $ 245,780
========== ========== ========== ==========
Net Income Per Share (a) $ 0.61 $ 0.53 $ 0.95 $ 0.86
========== ========== ========== ==========
Average Number of Common and Common
Equivalent Shares Outstanding 276,939 281,904 279,395 280,964
========== ========== ========== ==========
MATTEL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
Sept. 30, Sept. 30, Dec. 31,
(In thousands) 1996 1995 1995
- -------------- ----------- ----------- -----------
ASSETS
Cash and marketable securities $ 97,094 $ 100,817 $ 483,457
Accounts receivable, net 1,232,905 1,313,760 679,283
Inventories 477,571 463,037 350,841
Prepaid expenses and other current assets 205,039 201,380 177,238
----------- ----------- -----------
Total current assets 2,012,609 2,078,994 1,690,819
Property, plant and equipment, net 562,552 486,576 499,314
Other assets 511,173 496,914 505,376
----------- ----------- -----------
Total Assets $ 3,086,334 $ 3,062,484 $ 2,695,509
=========== =========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Short-term borrowings $ 318,104 $ 243,390 $ 15,520
Current portion of long-term liabilities 105,216 31,939 33,215
Accounts payable and accrued liabilities 640,874 703,921 660,763
Income taxes payable 191,510 229,752 138,183
----------- ----------- -----------
Total current liabilities 1,255,704 1,209,002 847,681
Long-term debt 155,150 263,262 260,868
Medium-Term notes 220,000 220,000 220,000
Other long-term liabilities 105,635 86,890 91,791
Shareholders' equity 1,349,845 1,283,330 1,275,169
----------- ----------- -----------
Total Liabilities and Shareholders' Equity $ 3,086,334 $ 3,062,484 $ 2,695,509
=========== =========== ===========
<FN>
(a) Share and per share data for the quarter and nine months ended September 30,
1995 reflect the retroactive effect of a 5/4 stock split declared in
February 1996.