Mattel Reports Second Quarter 2024 Financial Results
Second Quarter 2024 Highlights Versus Prior Year
-
Net Sales of$1,080 million , down 1% as reported, and comparable in constant currency - Gross Margin of 49.2%, an increase of 410 basis points; Adjusted Gross Margin of 49.2%, an increase of 430 basis points
-
Operating Income of
$83 million , an improvement of$20 million ; Adjusted Operating Income of$96 million , an improvement of$21 million -
Net Income of
$57 million , an improvement of$30 million -
Earnings per Share of
$0.17 compared to$0.08 per share; Adjusted Earnings per Share of$0.19 compared to$0.10 per share -
Adjusted EBITDA of
$171 million , an improvement of$23 million -
Repurchased
$100 million of shares, bringing first half total to$200 million - Company reiterates 2024 guidance
Financial Overview
For the second quarter,
For the first six months of the year,
Gross Billings in the
Gross Billings in the International segment decreased 1% as reported and were comparable in constant currency, due to declines in Dolls (primarily Barbie and Disney Princess and Frozen), and Action Figures,
Reported Gross Margin increased to 49.2%, versus 45.1% in the prior year’s second quarter, and Adjusted Gross Margin increased to 49.2%, versus 44.9%. The increase in Gross Margin was primarily driven by savings from the Optimizing for Profitable Growth program, cost deflation, lower sales adjustments, and lower inventory management costs.
Reported Other Selling and Administrative Expenses increased
For the six months ended
Gross Billings by Categories
For the second quarter, Worldwide Gross Billings for Dolls were
Worldwide Gross Billings for Infant, Toddler, and Preschool were
Worldwide Gross Billings for Vehicles were
Worldwide Gross Billings for Action Figures,
2024 Guidance
Mattel’s full year 2024 guidance remains:
(in millions, except EPS and percentages) |
FY2024 Guidance |
FY2023 |
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Comparable
|
|
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Adjusted Gross Margin |
48.5 - 49% |
47.5% |
||
Adjusted EPS |
|
|
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Adjusted EBITDA |
|
|
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Adjusted Tax Rate |
23 - 24% |
23% |
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Capital Expenditures |
|
|
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Free Cash Flow |
~ |
|
A reconciliation of Mattel’s non-GAAP financial measures on a forward-looking basis, including
We are operating in a macro-economic environment that may impact consumer demand. The guidance considers what the company is aware of today, but remains subject to market volatility, unexpected disruptions, and other risks and uncertainties.
Conference Call and Live Webcast
At
Cautionary Note Regarding Forward-Looking Statements
Presentation Information / Non-GAAP Financial Measures
The financial results included herein represent the most current information available to management and are preliminary until Mattel’s Form 10-Q is filed with the
To supplement our financial results presented in accordance with generally accepted accounting principles in
This earnings release and our earnings slide presentation are available on
Adjusted Gross Profit and Adjusted Gross Margin
Adjusted Gross Profit and Adjusted Gross Margin represent reported Gross Profit and reported Gross Margin, respectively, adjusted to exclude severance and restructuring expenses. Adjusted Gross Margin represents Mattel’s Adjusted Gross Profit, as a percentage of
Adjusted Other Selling and Administrative Expenses
Adjusted Other Selling and Administrative Expenses represents Mattel’s reported Other Selling and Administrative Expenses, adjusted to exclude severance and restructuring expenses, and the impact of the inclined sleeper product recalls, which are not part of Mattel’s core business. Adjusted Other Selling and Administrative Expenses is presented to provide additional perspective on underlying trends in Mattel’s core other selling and administrative expenses, which
Adjusted Operating Income/Loss and Adjusted Operating Income/Loss Margin
Adjusted Operating Income/Loss and Adjusted Operating Income/Loss Margin represent reported Operating Income/Loss and reported Operating Income/Loss Margin, respectively, adjusted to exclude severance and restructuring expenses, and the impact of the inclined sleeper product recalls, which are not part of Mattel’s core business. Adjusted Operating Income/Loss Margin represents Mattel’s Adjusted Operating Income/Loss, as a percentage of
Adjusted Earnings Per Share
Adjusted Earnings Per Share represents Mattel’s reported Diluted Earnings Per Common Share, adjusted to exclude severance and restructuring expenses, the impact of the inclined sleeper product recalls, and the impact of changes to certain deferred tax assets, which are not part of Mattel’s core business. The aggregate tax effect of the adjustments was determined using the effective tax rates on a jurisdictional basis of the respective adjustments and dividing by the reported weighted-average number of common shares. Adjusted Earnings Per Share is presented to provide additional perspective on underlying trends in Mattel’s core business.
EBITDA and Adjusted EBITDA
EBITDA represents Mattel’s Net Income/Loss, adjusted to exclude the impact of interest expense, taxes, depreciation, and amortization. Adjusted EBITDA represents EBITDA adjusted to exclude share-based compensation, severance and restructuring expenses, the impact of the inclined sleeper product recalls, the impact of sale of assets, and loss on liquidation of a subsidiary, which are not part of Mattel’s core business.
Free Cash Flow and Free Cash Flow Conversion
Free Cash Flow represents Mattel’s net cash flows from operating activities less capital expenditures. Free Cash Flow Conversion represents Mattel’s free cash flow divided by Adjusted EBITDA.
Leverage Ratio (Total Debt / Adjusted EBITDA)
The leverage ratio is calculated by dividing Total Debt by Adjusted EBITDA. Total Debt represents the aggregate of Mattel’s current portion of long-term debt, short-term borrowings, and long-term debt, excluding the impact of debt issuance costs and debt discount.
Net Debt
Net Debt represents the aggregate of Mattel’s current portion of long-term debt, short-term borrowings, and long-term debt, less cash and cash equivalents.
Adjusted Tax Rate
The Adjusted Tax Rate is calculated by dividing Adjusted Provision for Income Taxes by Adjusted Income Before Income Taxes. Adjusted Income Before Income Taxes represents reported Income Before Income Taxes, adjusted to exclude severance and restructuring expenses, and the impact of inclined sleeper product recalls. The Adjusted Provision for Income Taxes represents reported Provision for Income Taxes, adjusted to exclude the aggregate tax effect of adjustments.
Constant Currency
Percentage changes in results expressed in constant currency are presented excluding the impact from changes in currency exchange rates. To present this information,
Key Performance Indicator
Gross Billings
Gross Billings represent amounts invoiced to customers. It does not include the impact of sales adjustments, such as trade discounts and other allowances.
About
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EXHIBIT I |
||||||||||||||||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)1 | |||||||||||||||||||||||||||||||||||||||
For the Three Months Ended |
|
For the Six Months Ended |
|||||||||||||||||||||||||||||||||||||
(In millions, except per share and percentage information) |
2024 |
|
2023 |
|
% Change
|
|
% Change
|
|
2024 |
|
2023 |
|
% Change
|
|
% Change
|
||||||||||||||||||||||||
$ Amt |
|
% Net
|
|
$ Amt |
|
% Net
|
|
$ Amt |
|
% Net
|
|
$ Amt |
|
% Net
|
|||||||||||||||||||||||||
|
$ |
1,079.7 |
|
$ |
1,087.2 |
|
-1 |
% |
— |
% |
$ |
1,889.2 |
|
$ |
1,901.7 |
|
-1 |
% |
-1 |
% |
|||||||||||||||||||
Cost of Sales |
|
549.0 |
|
50.8 |
% |
|
597.4 |
|
54.9 |
% |
-8 |
% |
|
969.6 |
|
51.3 |
% |
|
1,086.1 |
|
57.1 |
% |
-11 |
% |
|||||||||||||||
Gross Profit |
|
530.7 |
|
49.2 |
% |
|
489.8 |
|
45.1 |
% |
8 |
% |
10 |
% |
|
919.6 |
|
48.7 |
% |
|
815.6 |
|
42.9 |
% |
13 |
% |
13 |
% |
|||||||||||
Advertising and Promotion Expenses |
|
73.7 |
|
6.8 |
% |
|
90.0 |
|
8.3 |
% |
-18 |
% |
|
145.2 |
|
7.7 |
% |
|
166.1 |
|
8.7 |
% |
-13 |
% |
|||||||||||||||
Other Selling and Administrative Expenses |
|
373.8 |
|
34.6 |
% |
|
337.0 |
|
31.0 |
% |
11 |
% |
|
726.8 |
|
38.5 |
% |
|
701.8 |
|
36.9 |
% |
4 |
% |
|||||||||||||||
Operating Income (Loss) |
|
83.2 |
|
7.7 |
% |
|
62.8 |
|
5.8 |
% |
33 |
% |
68 |
% |
|
47.7 |
|
2.5 |
% |
|
(52.3 |
) |
-2.7 |
% |
-191 |
% |
-130 |
% |
|||||||||||
Interest Expense |
|
30.0 |
|
2.8 |
% |
|
30.6 |
|
2.8 |
% |
-2 |
% |
|
60.0 |
|
3.2 |
% |
|
61.8 |
|
3.2 |
% |
-3 |
% |
|||||||||||||||
Interest (Income) |
|
(12.4 |
) |
-1.1 |
% |
|
(4.3 |
) |
-0.4 |
% |
187 |
% |
|
(29.7 |
) |
-1.6 |
% |
|
(10.8 |
) |
-0.6 |
% |
174 |
% |
|||||||||||||||
Other Non-Operating Expense (Income), Net |
|
6.1 |
|
|
(2.1 |
) |
|
11.7 |
|
|
(3.6 |
) |
|||||||||||||||||||||||||||
Income (Loss) Before Income Taxes |
|
59.5 |
|
5.5 |
% |
|
38.6 |
|
3.6 |
% |
54 |
% |
130 |
% |
|
5.6 |
|
0.3 |
% |
|
(99.6 |
) |
-5.2 |
% |
-106 |
% |
-87 |
% |
|||||||||||
Provision (Benefit) from Income Taxes |
|
9.2 |
|
|
14.4 |
|
|
(11.6 |
) |
|
(12.6 |
) |
|||||||||||||||||||||||||||
(Income) from Equity Method Investments |
|
(6.5 |
) |
|
(3.0 |
) |
|
(11.4 |
) |
|
(7.7 |
) |
|||||||||||||||||||||||||||
Net Income (Loss) |
$ |
56.9 |
|
5.3 |
% |
$ |
27.2 |
|
2.5 |
% |
109 |
% |
$ |
28.6 |
|
1.5 |
% |
$ |
(79.3 |
) |
-4.2 |
% |
-136 |
% |
|||||||||||||||
Net Income (Loss) Per Common Share - Basic |
$ |
0.17 |
|
$ |
0.08 |
|
$ |
0.08 |
|
$ |
(0.22 |
) |
|||||||||||||||||||||||||||
Weighted-Average Number of Common Shares |
|
342.2 |
|
|
354.6 |
|
|
344.6 |
|
|
354.7 |
|
|||||||||||||||||||||||||||
Net Income (Loss) Per Common Share - Diluted |
$ |
0.17 |
|
$ |
0.08 |
|
$ |
0.08 |
|
$ |
(0.22 |
) |
|||||||||||||||||||||||||||
Weighted-Average Number of Common and Potential Common Shares |
|
344.4 |
|
|
357.2 |
|
|
347.4 |
|
|
354.7 |
|
1 Amounts may not sum due to rounding. |
|
EXHIBIT II | ||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS1 | |||||||||||
|
|
|
|||||||||
2024 |
|
2023 |
|
2023 |
|||||||
(In millions) |
(Unaudited) |
|
|
||||||||
Assets | |||||||||||
Cash and Equivalents |
$ |
722.4 |
$ |
299.9 |
$ |
1,261.4 |
|||||
Accounts Receivable, Net |
|
839.4 |
|
|
890.9 |
|
|
1,081.8 |
|
||
Inventories |
|
776.9 |
|
|
971.6 |
|
|
571.6 |
|
||
Prepaid Expenses and Other Current Assets |
|
265.7 |
|
|
261.3 |
|
|
207.5 |
|
||
Total Current Assets |
|
2,604.4 |
|
|
2,423.7 |
|
|
3,122.3 |
|
||
Property, Plant, and Equipment, Net |
|
444.9 |
|
|
464.1 |
|
|
465.5 |
|
||
Right-of-Use Assets, Net |
|
292.4 |
|
|
296.2 |
|
|
313.2 |
|
||
|
|
1,383.4 |
|
|
1,384.2 |
|
|
1,384.5 |
|
||
Other Noncurrent Assets |
|
1,180.8 |
|
|
1,329.5 |
|
|
1,150.2 |
|
||
Total Assets |
$ |
5,905.8 |
|
$ |
5,897.8 |
|
$ |
6,435.8 |
|
||
Liabilities and Stockholders’ Equity | |||||||||||
Accounts Payable and Accrued Liabilities |
$ |
1,005.4 |
|
$ |
1,021.7 |
|
$ |
1,308.6 |
|
||
Income Taxes Payable |
|
5.7 |
|
|
9.4 |
|
|
33.9 |
|
||
Total Current Liabilities |
|
1,011.2 |
|
|
1,031.1 |
|
|
1,342.5 |
|
||
Long-Term Debt |
|
2,332.2 |
|
|
2,327.8 |
|
|
2,330.0 |
|
||
Noncurrent Lease Liabilities |
|
243.2 |
|
|
243.8 |
|
|
259.5 |
|
||
Other Noncurrent Liabilities |
|
346.1 |
|
|
332.8 |
|
|
354.6 |
|
||
Stockholders’ Equity |
|
1,973.1 |
|
|
1,962.4 |
|
|
2,149.2 |
|
||
Total Liabilities and Stockholders’ Equity |
$ |
5,905.8 |
|
$ |
5,897.8 |
|
$ |
6,435.8 |
|
1 Amounts may not sum due to rounding. |
|
EXHIBIT II | |||||||
SUPPLEMENTAL BALANCE SHEET AND CASH FLOW DATA (Unaudited)1 | ||||||||
|
||||||||
2024 |
|
2023 |
||||||
Key Balance Sheet Data: | ||||||||
Accounts Receivable, |
|
70 |
|
|
74 |
|
||
For the Six Months Ended |
||||||||
(In millions) |
2024 |
|
2023 |
|||||
Condensed Cash Flow Data: | ||||||||
Cash Flows (Used for) Operating Activities |
$ |
(217 |
) |
$ |
(326 |
) |
||
Cash Flows (Used for) Investing Activities |
|
(73 |
) |
|
(62 |
) |
||
Cash Flows (Used for) Financing Activities and Other |
|
(249 |
) |
|
(74 |
) |
||
Decrease in Cash and Equivalents |
$ |
(539 |
) |
$ |
(461 |
) |
1 Amounts may not sum due to rounding. |
|
EXHIBIT III |
||||||||||||||||||||
SUPPLEMENTAL FINANCIAL INFORMATION (Unaudited)1 | |||||||||||||||||||||
RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL MEASURES | |||||||||||||||||||||
For the Three Months Ended |
|
For the Six Months Ended |
|||||||||||||||||||
(In millions, except percentage information) |
2024 |
|
2023 |
|
Change |
|
2024 |
|
2023 |
|
Change |
||||||||||
Gross Profit | |||||||||||||||||||||
Gross Profit, As Reported |
$ |
530.7 |
|
$ |
489.8 |
|
$ |
919.6 |
|
$ |
815.6 |
|
|||||||||
Gross Margin |
|
49.2 |
% |
|
45.1 |
% |
410 bps |
|
48.7 |
% |
|
42.9 |
% |
580 bps | |||||||
Adjustments: | |||||||||||||||||||||
Severance and Restructuring Expenses |
|
0.4 |
|
|
(1.2 |
) |
|
2.6 |
|
|
(1.2 |
) |
|||||||||
Gross Profit, As Adjusted |
$ |
531.1 |
|
$ |
488.6 |
|
$ |
922.2 |
|
$ |
814.4 |
|
|||||||||
Adjusted Gross Margin |
|
49.2 |
% |
|
44.9 |
% |
430 bps |
|
48.8 |
% |
|
42.8 |
% |
600 bps | |||||||
Other Selling and Administrative Expenses | |||||||||||||||||||||
Other Selling and Administrative Expenses, As Reported |
$ |
373.8 |
|
$ |
337.0 |
|
11 |
% |
$ |
726.8 |
|
$ |
701.8 |
|
4 |
% |
|||||
% of |
|
34.6 |
% |
|
31.0 |
% |
360 bps |
|
38.5 |
% |
|
36.9 |
% |
160 bps | |||||||
Adjustments: | |||||||||||||||||||||
Severance and Restructuring Expenses |
|
(10.4 |
) |
|
(9.8 |
) |
|
(16.7 |
) |
|
(33.7 |
) |
|||||||||
Inclined Sleeper Product Recalls |
|
(2.2 |
) |
|
(3.4 |
) |
|
(5.9 |
) |
|
(7.7 |
) |
|||||||||
Other Selling and Administrative Expenses, As Adjusted |
$ |
361.2 |
|
$ |
323.8 |
|
12 |
% |
$ |
704.1 |
|
$ |
660.3 |
|
7 |
% |
|||||
% of |
|
33.5 |
% |
|
29.8 |
% |
370 bps |
|
37.3 |
% |
|
34.7 |
% |
260 bps | |||||||
Operating Income (Loss) | |||||||||||||||||||||
Operating Income (Loss), As Reported |
$ |
83.2 |
|
$ |
62.8 |
|
33 |
% |
$ |
47.7 |
|
$ |
(52.3 |
) |
n/m |
|
|||||
Operating Income (Loss) Margin |
|
7.7 |
% |
|
5.8 |
% |
190 bps |
|
2.5 |
% |
|
-2.7 |
% |
520 bps | |||||||
Adjustments: | |||||||||||||||||||||
Severance and Restructuring Expenses |
|
10.8 |
|
|
8.6 |
|
|
19.3 |
|
|
32.5 |
|
|||||||||
Inclined Sleeper Product Recalls |
|
2.2 |
|
|
3.4 |
|
|
5.9 |
|
|
7.7 |
|
|||||||||
Operating Income (Loss), As Adjusted |
$ |
96.2 |
|
$ |
74.7 |
|
29 |
% |
$ |
72.9 |
|
$ |
(12.0 |
) |
n/m |
|
|||||
Adjusted Operating Income (Loss) Margin |
|
8.9 |
% |
|
6.9 |
% |
200 bps |
|
3.9 |
% |
|
-0.6 |
% |
450 bps |
1 Amounts may not sum due to rounding. | |||||
n/m - Not meaningful |
|
EXHIBIT III | ||||||||||||||||||||
SUPPLEMENTAL FINANCIAL INFORMATION (Unaudited)1 | |||||||||||||||||||||
RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL MEASURES | |||||||||||||||||||||
For the Three Months Ended |
|
For the Six Months Ended |
|||||||||||||||||||
(In millions, except per share and percentage information) |
2024 |
|
2023 |
|
Change |
|
2024 |
|
2023 |
|
Change |
||||||||||
Earnings Per Share | |||||||||||||||||||||
Net Income (Loss) Per Common Share, As Reported |
$ |
0.17 |
|
$ |
0.08 |
|
113 |
% |
$ |
0.08 |
|
$ |
(0.22 |
) |
n/m |
|
|||||
Adjustments: | |||||||||||||||||||||
Severance and Restructuring Expenses |
|
0.03 |
|
|
0.02 |
|
|
0.06 |
|
|
0.09 |
|
|||||||||
Inclined Sleeper Product Recalls |
|
0.01 |
|
|
0.01 |
|
|
0.02 |
|
|
0.02 |
|
|||||||||
Tax Effect of Adjustments2 |
|
(0.01 |
) |
|
(0.01 |
) |
|
(0.02 |
) |
|
(0.03 |
) |
|||||||||
Net Income (Loss) Per Common Share, As Adjusted |
$ |
0.19 |
|
$ |
0.10 |
|
90 |
% |
$ |
0.14 |
|
$ |
(0.14 |
) |
n/m |
|
|||||
EBITDA and Adjusted EBITDA | |||||||||||||||||||||
Net Income (Loss), As Reported |
$ |
56.9 |
|
$ |
27.2 |
|
109 |
% |
$ |
28.6 |
|
$ |
(79.3 |
) |
n/m |
|
|||||
Adjustments: | |||||||||||||||||||||
Interest Expense |
|
30.0 |
|
|
30.6 |
|
|
60.0 |
|
|
61.8 |
|
|||||||||
Provision (Benefit) from Income Taxes |
|
9.2 |
|
|
14.4 |
|
|
(11.6 |
) |
|
(12.6 |
) |
|||||||||
Depreciation |
|
34.1 |
|
|
34.3 |
|
|
68.6 |
|
|
68.0 |
|
|||||||||
Amortization |
|
7.8 |
|
|
9.5 |
|
|
15.6 |
|
|
19.0 |
|
|||||||||
EBITDA |
|
138.0 |
|
|
116.1 |
|
|
161.3 |
|
|
56.9 |
|
|||||||||
Adjustments: | |||||||||||||||||||||
Share-Based Compensation |
|
19.8 |
|
|
20.0 |
|
|
37.8 |
|
|
36.9 |
|
|||||||||
Severance and Restructuring Expenses |
|
10.8 |
|
|
8.6 |
|
|
19.3 |
|
|
32.5 |
|
|||||||||
Inclined Sleeper Product Recalls |
|
2.2 |
|
|
3.4 |
|
|
5.9 |
|
|
7.7 |
|
|||||||||
Adjusted EBITDA |
$ |
170.8 |
|
$ |
148.0 |
|
15 |
% |
$ |
224.3 |
|
$ |
134.1 |
|
67 |
% |
|||||
Free Cash Flow | |||||||||||||||||||||
Net Cash Flows (Used for) Operating Activities |
$ |
(217.4 |
) |
$ |
(325.6 |
) |
|||||||||||||||
Capital Expenditures |
|
(65.4 |
) |
|
(73.4 |
) |
|||||||||||||||
Free Cash Flow |
$ |
(282.9 |
) |
$ |
(399.0 |
) |
1 Amounts may not sum due to rounding. | |||||||||||
2 The aggregate tax effect of adjustments was determined using the effective tax rates on a jurisdictional basis of the respective adjustments, and dividing by the reported weighted average number of common and potential common shares. | |||||||||||
n/m - Not meaningful |
|
EXHIBIT III |
||||||||
SUPPLEMENTAL FINANCIAL INFORMATION (Unaudited)1 | |||||||||
RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL MEASURES | |||||||||
For the Three Months Ended |
|||||||||
(In millions, except percentage and pts information) |
2024 |
|
2023 |
|
Change |
||||
Tax Rate | |||||||||
Income Before Income Taxes, As Reported |
$ |
59.5 |
|
$ |
38.6 |
|
|||
Adjustments: | |||||||||
Severance and Restructuring Expenses |
|
10.8 |
|
|
8.6 |
|
|||
Inclined Sleeper Product Recalls |
|
2.2 |
|
|
3.4 |
|
|||
Income Before Income Taxes, As Adjusted |
$ |
72.5 |
|
$ |
50.6 |
|
|||
Provision for Income Taxes, As Reported |
$ |
9.2 |
|
$ |
14.4 |
|
|||
Adjustments: | |||||||||
Tax Effect of Adjustments2 |
|
3.1 |
|
|
2.8 |
|
|||
Provision for Income Taxes, As Adjusted |
$ |
12.3 |
|
$ |
17.2 |
|
|||
Tax Rate, As Reported |
|
15 |
% |
|
37 |
% |
-22 pts | ||
Tax Rate, As Adjusted |
|
17 |
% |
|
34 |
% |
-17 pts | ||
|
|||||||||
2024 |
2023 |
||||||||
Net Debt | |||||||||
Long-Term Debt |
$ |
2,332.2 |
|
$ |
2,327.8 |
|
|||
Adjustments: | |||||||||
Cash and Equivalents |
|
(722.4 |
) |
|
(299.9 |
) |
|||
Net Debt |
$ |
1,609.8 |
|
$ |
2,027.9 |
|
1 Amounts may not sum due to rounding. | |||||||||||
2 Tax effect of adjustments was determined using the effective tax rates on a jurisdictional basis of the respective adjustments. |
|
EXHIBIT III |
|||||||||
SUPPLEMENTAL FINANCIAL INFORMATION (Unaudited)1 | ||||||||||
RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL MEASURES | ||||||||||
For the Trailing Twelve Months Ended |
||||||||||
(In millions, except percentage and pts information) |
2024 |
|
2023 |
|
Change |
|||||
Leverage Ratio (Total Debt/Adjusted EBITDA) | ||||||||||
Total Debt | ||||||||||
Long-Term Debt |
$ |
2,332.2 |
|
$ |
2,327.8 |
|
||||
Adjustments: | ||||||||||
Debt Issuance Costs and Debt Discount |
|
17.8 |
|
|
22.2 |
|
||||
Total Debt |
$ |
2,350.0 |
|
$ |
2,350.0 |
|
||||
EBITDA and Adjusted EBITDA | ||||||||||
Net Income, As Reported |
$ |
322.2 |
|
$ |
226.7 |
|
42 |
% |
||
Adjustments: | ||||||||||
Interest Expense |
|
122.1 |
|
|
128.7 |
|
||||
Provision for Income Taxes |
|
270.5 |
|
|
72.8 |
|
||||
Depreciation |
|
140.1 |
|
|
140.9 |
|
||||
Amortization |
|
34.5 |
|
|
37.9 |
|
||||
EBITDA |
|
889.4 |
|
|
607.0 |
|
||||
Adjustments: | ||||||||||
Share-Based Compensation |
|
84.2 |
|
|
68.1 |
|
||||
Severance and Restructuring Expenses |
|
46.5 |
|
|
46.3 |
|
||||
Inclined Sleeper Product Recalls |
|
16.2 |
|
|
6.9 |
|
||||
Sale of Assets |
|
1.8 |
|
|
(8.3 |
) |
||||
Loss on Liquidation of Argentina Subsidiary2 |
|
— |
|
|
45.4 |
|
||||
Adjusted EBITDA |
$ |
1,038.0 |
|
$ |
765.3 |
|
36 |
% |
||
Total Debt / Net Income | 7.3x | 10.4x | ||||||||
Leverage Ratio (Total Debt / Adjusted EBITDA) | 2.3x | 3.1x | ||||||||
Free Cash Flow | ||||||||||
Net Cash Flows Provided by Operating Activities |
$ |
978.0 |
|
$ |
542.2 |
|
80 |
% |
||
Capital Expenditures |
|
(152.3 |
) |
|
(181.4 |
) |
||||
Free Cash Flow |
$ |
825.7 |
|
$ |
360.8 |
|
129 |
% |
||
Net Cash Flows Provided by Operating Activities / Net Income |
|
304 |
% |
|
239 |
% |
65 pts | |||
Free Cash Flow Conversion (Free Cash Flow/Adjusted EBITDA) |
|
80 |
% |
|
47 |
% |
33 pts |
1 Amounts may not sum due to rounding. | |||||||||||
2 During the trailing twelve months ended |
|
EXHIBIT III | ||
SUPPLEMENTAL FINANCIAL INFORMATION (Unaudited)1 | |||
RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL MEASURES | |||
For the Year Ended |
|||
|
|||
(In millions, except percentage and per share information) |
2023 |
||
Gross Profit | |||
Gross Profit, As Reported |
$ |
2,583.7 |
|
Gross Margin |
|
47.5 |
% |
Adjustments: | |||
Severance and Restructuring Expenses |
|
(1.2 |
) |
Gross Profit, As Adjusted |
$ |
2,582.6 |
|
Adjusted Gross Margin |
|
47.5 |
% |
Earnings Per Share | |||
Net Income Per Common Share, As Reported |
$ |
0.60 |
|
Adjustments: | |||
Severance and Restructuring Expenses |
|
0.17 |
|
Inclined Sleeper Product Recalls |
|
0.05 |
|
Changes to Deferred Tax Assets2 |
|
0.45 |
|
Tax Effect of Adjustments3 |
|
(0.04 |
) |
Net Income Per Common Share, As Adjusted |
$ |
1.23 |
|
EBITDA and Adjusted EBITDA | |||
Net Income, As Reported |
$ |
214.4 |
|
Adjustments: | |||
Interest Expense |
|
123.8 |
|
Provision for Income Taxes |
|
269.5 |
|
Depreciation |
|
139.5 |
|
Amortization |
|
37.9 |
|
EBITDA |
|
785.0 |
|
Adjustments: | |||
Share-Based Compensation |
|
83.3 |
|
Severance and Restructuring Expenses |
|
59.7 |
|
Inclined Sleeper Product Recalls |
|
18.1 |
|
Sale of Assets |
|
1.8 |
|
Adjusted EBITDA |
$ |
947.8 |
|
1 Amounts may not sum due to rounding. | |||||||||||
2 For the year ended |
|||||||||||
3 The aggregate tax effect of adjustments was determined using the effective tax rates on a jurisdictional basis of the respective adjustments and dividing by the reported weighted average number of common and potential common shares. |
|
EXHIBIT III | ||
SUPPLEMENTAL FINANCIAL INFORMATION (Unaudited)1 | |||
RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL MEASURES | |||
For the Year Ended |
|||
|
|||
(In millions, except percentage information) |
2023 |
||
Tax Rate | |||
Income Before Income Taxes, As Reported |
$ |
465.4 |
|
Adjustments: | |||
Severance and Restructuring Expenses |
|
59.7 |
|
Inclined Sleeper Product Recalls |
|
18.1 |
|
Sale of Assets |
|
1.8 |
|
Income Before Income Taxes, As Adjusted |
$ |
544.9 |
|
Provision for Income Taxes, As Reported |
$ |
269.5 |
|
Adjustments: | |||
Changes to Deferred Tax Assets2 |
|
(161.4 |
) |
Tax Effect of Adjustments3 |
|
15.3 |
|
Provision for Income Taxes, As Adjusted |
$ |
123.4 |
|
Tax Rate, As Reported |
|
58 |
% |
Tax Rate, As Adjusted |
|
23 |
% |
Free Cash Flow | |||
Net Cash Flows Provided by Operating Activities |
$ |
869.8 |
|
Capital Expenditures |
|
(160.3 |
) |
Free Cash Flow |
$ |
709.5 |
|
1 Amounts may not sum due to rounding. | |||||||||||
2 For the year ended |
|||||||||||
3 Tax effect of adjustments was determined using the effective tax rates on a jurisdictional basis of the respective adjustments. |
|
EXHIBIT IV | ||||||||||||||||||||||||||
WORLDWIDE |
|||||||||||||||||||||||||||
For the Three Months Ended |
|
For the Six Months Ended |
|||||||||||||||||||||||||
2024 |
|
2023 |
|
% Change
|
|
% Change
|
|
2024 |
|
2023 |
|
% Change
|
|
% Change
|
|||||||||||||
(In millions, except percentage information) | |||||||||||||||||||||||||||
Worldwide |
|||||||||||||||||||||||||||
|
$ |
1,079.7 |
$ |
1,087.2 |
-1 |
% |
— |
% |
$ |
1,889.2 |
$ |
1,901.7 |
-1 |
% |
-1 |
% |
|||||||||||
Worldwide Gross Billings by Categories: | |||||||||||||||||||||||||||
Dolls |
$ |
414.0 |
|
$ |
440.5 |
|
-6 |
% |
-5 |
% |
$ |
708.5 |
|
$ |
746.6 |
|
-5 |
% |
-5 |
% |
|||||||
Infant, Toddler, and Preschool |
|
190.3 |
|
|
197.3 |
|
-4 |
|
-3 |
|
|
325.3 |
|
|
347.5 |
|
-6 |
|
-7 |
|
|||||||
Vehicles |
|
369.7 |
|
|
363.8 |
|
2 |
|
2 |
|
|
667.4 |
|
|
647.4 |
|
3 |
|
3 |
|
|||||||
Action Figures, |
|
227.3 |
|
|
225.9 |
|
1 |
|
1 |
|
|
399.0 |
|
|
397.4 |
|
- |
|
- |
|
|||||||
Gross Billings |
$ |
1,201.3 |
|
$ |
1,227.5 |
|
-2 |
% |
-2 |
% |
$ |
2,100.3 |
|
$ |
2,138.8 |
|
-2 |
% |
-2 |
% |
|||||||
Supplemental Gross Billings Disclosure | |||||||||||||||||||||||||||
Worldwide Gross Billings by Top 3 Power Brands: | |||||||||||||||||||||||||||
Barbie |
$ |
266.1 |
|
$ |
282.7 |
|
-6 |
% |
-5 |
% |
$ |
443.5 |
|
$ |
459.6 |
|
-3 |
% |
-3 |
% |
|||||||
Hot Wheels |
|
327.4 |
|
|
315.2 |
|
4 |
|
5 |
|
|
585.5 |
|
|
560.1 |
|
5 |
|
5 |
|
|||||||
Fisher-Price3 |
|
135.9 |
|
|
123.3 |
|
10 |
|
11 |
|
|
229.3 |
|
|
216.4 |
|
6 |
|
6 |
|
|||||||
Other |
|
471.9 |
|
|
506.3 |
|
-7 |
|
-6 |
|
|
841.9 |
|
|
902.8 |
|
-7 |
|
-7 |
|
|||||||
Gross Billings |
$ |
1,201.3 |
|
$ |
1,227.5 |
|
-2 |
% |
-2 |
% |
$ |
2,100.3 |
|
$ |
2,138.8 |
|
-2 |
% |
-2 |
% |
1 Gross billings represent amounts invoiced to customers and do not include the impact of sales adjustments, such as trade discounts and other allowances. |
|||||||||||||||
2 Amounts may not sum due to rounding. | |||||||||||||||
3 Beginning in the first quarter of 2024, the Fisher-Price power brand was revised to exclude |
|
EXHIBIT V | ||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||
For the Three Months Ended |
|
For the Six Months Ended |
|||||||||||||||||||||||||
2024 |
|
2023 |
|
% Change
|
|
% Change
|
|
2024 |
|
2023 |
|
% Change
|
|
% Change
|
|||||||||||||
(In millions, except percentage information) | |||||||||||||||||||||||||||
North America |
|||||||||||||||||||||||||||
|
$ |
606.5 |
$ |
624.5 |
-3 |
% |
-3 |
% |
$ |
1,084.3 |
$ |
1,094.9 |
-1 |
% |
-1 |
% |
|||||||||||
North America Gross Billings by Categories: | |||||||||||||||||||||||||||
Dolls |
$ |
231.1 |
|
$ |
239.2 |
|
-3 |
% |
-3 |
% |
$ |
395.9 |
|
$ |
406.3 |
|
-3 |
% |
-3 |
% |
|||||||
Infant, Toddler, and Preschool |
|
111.6 |
|
|
119.9 |
|
-7 |
|
-7 |
|
|
192.1 |
|
|
207.1 |
|
-7 |
|
-7 |
|
|||||||
Vehicles |
|
166.8 |
|
|
173.5 |
|
-4 |
|
-4 |
|
|
317.0 |
|
|
315.7 |
|
0 |
|
0 |
|
|||||||
Action Figures, |
|
137.3 |
|
|
133.0 |
|
3 |
|
3 |
|
|
248.3 |
|
|
239.3 |
|
4 |
|
4 |
|
|||||||
Gross Billings |
$ |
646.9 |
|
$ |
665.7 |
|
-3 |
% |
-3 |
% |
$ |
1,153.3 |
|
$ |
1,168.4 |
|
-1 |
% |
-1 |
% |
|||||||
Supplemental Gross Billings Disclosure | |||||||||||||||||||||||||||
North America Gross Billings by Top 3 Power Brands: | |||||||||||||||||||||||||||
Barbie |
$ |
140.0 |
|
$ |
148.1 |
|
-5 |
% |
-5 |
% |
$ |
232.4 |
|
$ |
237.7 |
|
-2 |
% |
-2 |
% |
|||||||
Hot Wheels |
|
144.6 |
|
|
146.9 |
|
-2 |
|
-1 |
|
|
271.3 |
|
|
266.6 |
|
2 |
|
2 |
|
|||||||
Fisher-Price4 |
|
78.4 |
|
|
70.3 |
|
11 |
|
12 |
|
|
132.1 |
|
|
119.4 |
|
11 |
|
11 |
|
|||||||
Other |
|
283.9 |
|
|
300.4 |
|
-5 |
|
-5 |
|
|
517.5 |
|
|
544.8 |
|
-5 |
|
-5 |
|
|||||||
Gross Billings |
$ |
646.9 |
|
$ |
665.7 |
|
-3 |
% |
-3 |
% |
$ |
1,153.3 |
|
$ |
1,168.4 |
|
-1 |
% |
-1 |
% |
1 Gross billings represent amounts invoiced to customers and do not include the impact of sales adjustments, such as trade discounts and other allowances. |
|||||||||||||||
2 Amounts may not sum due to rounding. | |||||||||||||||
3 In the first quarter of 2024, |
|||||||||||||||
4 Beginning in the first quarter of 2024, the Fisher-Price power brand was revised to exclude |
|
EXHIBIT VI | ||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||
For the Three Months Ended |
|
For the Six Months Ended |
|||||||||||||||||||||||||
2024 |
|
2023 |
|
% Change
|
|
% Change
|
|
2024 |
|
2023 |
|
% Change
|
|
% Change
|
|||||||||||||
(In millions, except percentage information) | |||||||||||||||||||||||||||
International |
|||||||||||||||||||||||||||
EMEA |
$ |
250.7 |
$ |
241.7 |
4 |
% |
4 |
% |
$ |
435.9 |
$ |
451.0 |
-3 |
% |
-4 |
% |
|||||||||||
|
|
134.6 |
|
|
138.0 |
|
-2 |
|
-1 |
|
|
214.2 |
|
|
213.6 |
|
0 |
|
0 |
|
|||||||
|
|
88.0 |
|
|
83.0 |
|
6 |
|
9 |
|
|
154.8 |
|
|
142.2 |
|
9 |
|
12 |
|
|||||||
|
$ |
473.2 |
|
$ |
462.7 |
|
2 |
% |
3 |
% |
$ |
805.0 |
|
$ |
806.8 |
|
— |
% |
— |
% |
|||||||
International Gross Billings by Geographic Area: | |||||||||||||||||||||||||||
EMEA |
$ |
296.3 |
|
$ |
303.8 |
|
-2 |
% |
-2 |
% |
$ |
519.7 |
|
$ |
555.7 |
|
-6 |
% |
-7 |
% |
|||||||
|
|
156.8 |
|
|
160.7 |
|
-2 |
|
-1 |
|
|
249.4 |
|
|
248.4 |
|
0 |
|
0 |
|
|||||||
|
|
101.4 |
|
|
97.3 |
|
4 |
|
7 |
|
|
177.9 |
|
|
166.2 |
|
7 |
|
10 |
|
|||||||
Gross Billings |
$ |
554.5 |
|
$ |
561.8 |
|
-1 |
% |
— |
% |
$ |
947.0 |
|
$ |
970.4 |
|
-2 |
% |
-3 |
% |
|||||||
International Gross Billings by Categories: | |||||||||||||||||||||||||||
Dolls |
$ |
182.9 |
|
$ |
201.4 |
|
-9 |
% |
-8 |
% |
$ |
312.7 |
|
$ |
340.2 |
|
-8 |
% |
-8 |
% |
|||||||
Infant, Toddler, and Preschool |
|
78.7 |
|
|
77.4 |
|
2 |
|
2 |
|
|
133.2 |
|
|
140.4 |
|
-5 |
|
-6 |
|
|||||||
Vehicles |
|
202.9 |
|
|
190.2 |
|
7 |
|
8 |
|
|
350.4 |
|
|
331.7 |
|
6 |
|
6 |
|
|||||||
Action Figures, |
|
90.0 |
|
|
92.9 |
|
-3 |
|
-3 |
|
|
150.6 |
|
|
158.1 |
|
-5 |
|
-5 |
|
|||||||
Gross Billings |
$ |
554.5 |
|
$ |
561.8 |
|
-1 |
% |
— |
% |
$ |
947.0 |
|
$ |
970.4 |
|
-2 |
% |
-3 |
% |
|||||||
Supplemental Gross Billings Disclosure | |||||||||||||||||||||||||||
International Gross Billings by Top 3 Power Brands: | |||||||||||||||||||||||||||
Barbie |
$ |
126.0 |
|
$ |
134.6 |
|
-6 |
% |
-5 |
% |
$ |
211.1 |
|
$ |
221.9 |
|
-5 |
% |
-5 |
% |
|||||||
Hot Wheels |
|
182.9 |
|
|
168.3 |
|
9 |
|
10 |
|
|
314.2 |
|
|
293.6 |
|
7 |
|
7 |
|
|||||||
Fisher-Price3 |
|
57.6 |
|
|
53.0 |
|
9 |
|
9 |
|
|
97.2 |
|
|
97.0 |
|
0 |
|
-1 |
|
|||||||
Other |
|
188.0 |
|
|
205.9 |
|
-9 |
|
-8 |
|
|
324.4 |
|
|
358.0 |
|
-9 |
|
-10 |
|
|||||||
Gross Billings |
$ |
554.5 |
|
$ |
561.8 |
|
-1 |
% |
— |
% |
$ |
947.0 |
|
$ |
970.4 |
|
-2 |
% |
-3 |
% |
1 Gross billings represent amounts invoiced to customers and do not include the impact of sales adjustments, such as trade discounts and other allowances. |
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2 Amounts may not sum due to rounding. | |||||||||||||||
3 Beginning in the first quarter of 2024, the Fisher-Price power brand was revised to exclude |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240723995957/en/
Securities Analysts
david.zbojniewicz@mattel.com
News Media
catherine.frymark@mattel.com
Source: