EXHIBIT 99.1
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
- ------------------------------------ ---------- ---------- ---------- ---------- ----------
Key P&L Data:
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Net Sales $ 4,646.4 $ 4,579.5 $ 4,502.7 $ 4,565.5 $ 4,687.9
Gross Margin $ 2,224.1 $ 2,154.5 $ 2,067.2 $ 2,071.8 $ 2,177.1
% of Net Sales 47.9% 47.0% 45.9% 45.4% 46.4%
Advertising $ 620.7 $ 631.1 $ 569.7 $ 573.5 $ 543.2
% of Net Sales 13.5% 13.8% 12.6% 12.6% 11.6%
SG&A $ 779.8 $ 862.5 $ 867.9 $ 908.0 $ 934.6
% of Net Sales 16.8% 18.8% 19.3% 19.9% 19.9%
Operating Income $ 821.0 $ 652.5 $ 629.7 $ 604.6 $ 686.9
% of Net Sales 17.6% 14.2% 14.0% 13.2% 14.7%
Net Income Before Charges $ 524.6 $ 389.5 $ 362.7 $ 328.5 $ 386.3
% of Net Sales 11.3% 8.5% 8.1% 7.2% 8.2%
EPS Before Charges - Diluted $ 1.36 $ 0.90 $ 0.84 $ 0.77 $ 0.89
Average Number of Common Shares - Diluted 378.7 421.7 425.3 427.1 436.2
Key Balance Sheet Data:
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Accounts Receivable, Net $ 1,091.4 $ 983.0 $ 1,002.0 $ 839.6 $ 696.6
Days of Sales Outstanding (DSO) 57 54 56 45 37
Inventories $ 428.8 $ 584.4 $ 436.3 $ 489.7 $ 487.5
Days of Supply (DOS) 92 132 101 106 107
Total Debt Outstanding $ 695.2 $ 1,151.0 $ 1,355.6 $ 1,501.5 $ 1,269.1
Total Debt-to-Total Capitalization 26.4% 34.6% 40.9% 51.7% 42.2%
Worldwide Gross Sales:
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Girls $ 2,055.8 $ 2,024.3 $ 2,130.2 $ 2,193.2
% As Reported -2% 5% 3%
% Local Currency -2% 8% 4%
Boys/Entertainment $ 1,188.2 $ 1,200.2 $ 1,195.7 $ 1,269.1
% As Reported 1% 0% 6%
% Local Currency 0% 2% 7%
Infant & Preschool $ 1,684.2 $ 1,633.8 $ 1,636.4 $ 1,621.3
% As Reported -3% 0% -1%
% Local Currency -4% 3% -1%
Total Company $ 4,993.2 $ 4,896.6 $ 4,981.7 $ 5,104.1
% As Reported -2% 2% 2%
% Local Currency -3% 5% 3%
MATTEL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
BEFORE CHARGES AND AMORTIZATION OF GOODWILL
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2001 2000 1999
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(In millions, except per share amounts) $ Amt % Net Sales $ Amt % Net Sales $ Amt % Net Sales
- --------------------------------------- -------- ----------- -------- ----------- -------- -----------
Net Sales $4,687.9 $4,565.5 $4,502.7
Cost of sales 2,510.8 53.6% 2,493.7 54.6% 2,435.5 54.1%
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Gross Profit 2,177.1 46.4% 2,071.8 45.4% 2,067.2 45.9%
Advertising and promotion expenses 543.2 11.6% 573.5 12.6% 569.7 12.6%
Other selling and administrative expenses 934.6 19.9% 908.0 19.9% 867.9 19.3%
Other expense (income), net 7.4 0.1% (19.3) -0.4% (5.3) -0.1%
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Operating Income Before Amortization 691.9 14.8% 609.6 13.3% 634.9 14.1%
Amortization of other intangibles 5.0 0.1% 5.0 0.1% 5.2 0.1%
-------- -------- --------
Operating Income 686.9 14.7% 604.6 13.2% 629.7 14.0%
Interest expense 155.1 3.3% 153.0 3.3% 131.6 2.9%
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Income Before Income Taxes 531.8 11.4% 451.6 9.9% 498.1 11.1%
Provision for income taxes 145.5 123.1 135.4
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Income From Continuing Operations $ 386.3 8.2% $ 328.5 7.2% $ 362.7 8.1%
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Effective Tax Rate 27.4% 27.3% 27.2%
Basic Income per Share from Continuing Operations $ 0.90 $ 0.77 $ 0.87
Avg. Number of Common Shares Outstanding - Basic 431.0 426.2 414.2
Diluted Income per Share from Continuing Operations $ 0.89 $ 0.77 $ 0.84
Avg. Number of Common Shares Outstanding - Diluted 436.2 427.1 425.3
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1998 1997
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(In millions, except per share amounts) $ Amt % Net Sales $ Amt % Net Sales
- --------------------------------------- -------- ----------- -------- -----------
Net Sales $4,579.5 $4,646.4
Cost of sales 2,425.0 53.0% 2,422.3 52.1%
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Gross Profit 2,154.5 47.0% 2,224.1 47.9%
Advertising and promotion expenses 631.1 13.8% 620.7 13.5%
Other selling and administrative expenses 862.5 18.8% 779.8 16.8%
Other expense (income), net 5.3 0.1% 1.2 0.0%
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Operating Income Before Amortization 655.6 14.3% 822.4 17.6%
Amortization of other intangibles 3.1 0.1% 1.4 0.0%
-------- --------
Operating Income 652.5 14.2% 821.0 17.6%
Interest expense 110.8 2.4% 90.1 1.9%
-------- --------
Income Before Income Taxes 541.7 11.8% 730.9 15.7%
Provision for income taxes 152.2 206.3
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Income From Continuing Operations $ 389.5 8.5% $ 524.6 11.3%
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Effective Tax Rate 28.1% 28.2%
Basic Income per Share from Continuing Operations $ 0.98 $ 1.39
Avg. Number of Common Shares Outstanding - Basic 390.2 369.9
Diluted Income per Share from Continuing Operations $ 0.90 $ 1.36
Avg. Number of Common Shares Outstanding - Diluted 421.7 378.7
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CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions) 2001 2000 1999 1998 1997
- ------------- -------- -------- -------- -------- --------
ASSETS
Cash and short-term investments $ 616.6 $ 232.4 $ 247.4 $ 212.5 $ 695.0
Accounts receivable, net 696.6 839.6 1,002.0 983.0 1,091.4
Inventories 487.5 489.7 436.3 584.4 428.8
Prepaid expenses and other current assets 291.9 189.8 166.2 277.9 246.5
-------- -------- -------- -------- --------
Total current assets 2,092.6 1,751.5 1,851.9 2,057.8 2,461.7
Property, plant and equipment, net 626.7 647.8 724.8 736.5 601.6
Other assets 1,821.3 1,902.6 1,635.3 1,467.9 740.5
Net investment in discontinued operations - 11.5 462.0 350.6 111.2
-------- -------- -------- -------- --------
Total Assets $4,540.6 $4,313.4 $4,674.0 $4,612.8 $3,915.0
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LIABILITIES AND STOCKHOLDERS' EQUITY
Short-term borrowings $ 38.1 $ 226.4 $ 369.5 $ 134.0 $ 17.5
Current portion of long-term liabilities 210.1 32.7 3.2 33.5 13.6
Accounts payable and accrued liabilities 1,109.0 1,042.4 1,007.9 944.4 939.6
Income taxes payable 239.8 200.9 184.8 205.3 202.7
-------- -------- -------- -------- --------
Total current liabilities 1,597.0 1,502.4 1,565.4 1,317.2 1,173.4
Long-term debt 1,020.9 1,242.4 982.9 983.5 664.1
Other long-term liabilities 184.2 165.5 163.0 141.3 144.2
Stockholders' equity 1,738.5 1,403.1 1,962.7 2,170.8 1,933.3
-------- -------- -------- -------- --------
Total Liabilities and Stockholders' Equity $4,540.6 $4,313.4 $4,674.0 $4,612.8 $3,915.0
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