Mattel Reports Fourth Quarter and Full Year 2024 Financial Results
Fourth Quarter 2024 Highlights Versus Prior Year
- Net Sales of $1,646 million, up 2% as reported, and 3% in constant currency
- Gross Margin of 50.7%, an increase of 190 basis points; Adjusted Gross Margin of 50.8%, an increase of 200 basis points
- Operating Income of $158 million, an increase of $18 million; Adjusted Operating Income of $161 million, an increase of $14 million
- Net Income of $141 million, a decrease of $6 million
- Earnings per Share comparable at $0.42 per share; Adjusted Earnings per Share of $0.35 compared to $0.29 per share
- Adjusted EBITDA of $249 million, an improvement of $15 million
Full Year 2024 Highlights Versus Prior Year
- Net Sales of $5,380 million, down 1% as reported and 0.5% in constant currency
- Gross Margin of 50.8%, an increase of 330 basis points; Adjusted Gross Margin of 50.9%, an increase of 340 basis points
- Operating Income of $694 million, an increase of $133 million; Adjusted Operating Income of $738 million, an increase of $97 million
- Net Income of $542 million, an improvement of $327 million
- Earnings per Share of $1.58 compared to $0.60 per share; Adjusted Earnings per Share of $1.62 compared to $1.23 per share
- Adjusted EBITDA of $1,058 million, an improvement of $110 million
- Repurchased $400 million of shares
- Company announces 2025 guidance; targeting $600 million of share repurchases
Ynon Kreiz, Chairman and CEO of Mattel, said: “2024 was a year of strong operational excellence for Mattel with topline growth in the fourth quarter. Our priorities for the year were to grow profitability, expand gross margin, and generate strong free cash flow and we achieved all three objectives, well ahead of expectations. As we progress through 2025, our 80th anniversary year, we look forward to growing both top and bottom line and continuing to successfully execute our multi-year strategy.”
Anthony DiSilvestro, CFO of Mattel, added: “We had a strong fourth quarter with both sales growth and margin expansion. We continued to strengthen our balance sheet, repurchased $400 million of shares in 2024, further improved our leverage ratio, and are tracking ahead of schedule to achieve our $200 million cost savings target by the end of 2026. Mattel’s 2025 guidance includes our expectation to grow top and bottom line, increase investments in digital games, and repurchase $600 million of shares. We are well positioned to continue to create long-term shareholder value.”
Financial Overview
For the fourth quarter, Net Sales were up 2% as reported, or 3% in constant currency, versus the prior year’s fourth quarter. Reported Operating Income was $158 million, an improvement of $18 million, and Adjusted Operating Income was $161 million, an increase of $14 million. Reported Earnings Per Share were comparable at $0.42 per share, and Adjusted Earnings Per Share were $0.35, an increase of $0.06 per share.
For the full year, Net Sales declined 1% as reported and 0.5% in constant currency, versus the prior year. Reported Operating Income was $694 million, an improvement of $133 million, and Adjusted Operating Income was $738 million, an improvement of $97 million. Reported Earnings Per Share were $1.58, an improvement of $0.98 per share, and Adjusted Earnings Per Share were $1.62, an improvement of $0.39 per share.
Fourth Quarter 2024
North America
Net Sales in the North America segment increased 1% as reported and in constant currency.
Gross Billings in the North America segment increased 1% as reported and in constant currency, due to growth in Vehicles (primarily Hot Wheels), and Action Figures, Building Sets, Games, and Other (primarily Action Figures), partly offset by declines in Infant, Toddler, and Preschool (primarily Baby Gear & Power Wheels) and Dolls (primarily Barbie).
International
Net Sales in the International segment increased 3% as reported, or 6% in constant currency.
Gross Billings in the International segment increased 3% as reported, or 6% in constant currency, due to growth in Vehicles (primarily Hot Wheels) and Infant, Toddler, and Preschool, partly offset by declines in Dolls (primarily Barbie).
Gross Margin
Reported Gross Margin increased to 50.7%, versus 48.8% in the prior year’s fourth quarter, and Adjusted Gross Margin increased to 50.8%, versus 48.8%. The increase in Gross Margin was primarily driven by savings from the Optimizing for Profitable Growth program, lower inventory management costs, supply chain efficiencies, and foreign exchange favorability, partly offset by benefits related to the Barbie movie in the prior year.
Other Selling and Administrative Expenses
Reported Other Selling and Administrative Expenses increased $4 million to $420 million, primarily due to higher employee compensation, partly offset by savings from the Optimizing for Profitable Growth program. Adjusted Other Selling and Administrative Expenses increased $9 million to $418 million, primarily due to the same factors.
Full Year 2024
North America
Net Sales in the North America segment decreased 1% as reported and in constant currency.
Gross Billings in the North America segment decreased 1% as reported and in constant currency, due to declines in Dolls (primarily Barbie), and Infant, Toddler, and Preschool (primarily Baby Gear & Power Wheels), partly offset by growth in Vehicles (primarily Hot Wheels), and Action Figures, Building Sets, Games, and Other (primarily Action Figures and Games).
International
Net Sales in the International segment decreased 1% as reported, and increased 1% in constant currency.
Gross Billings in the International segment decreased 1% as reported, and were comparable in constant currency, due to declines in Dolls (primarily Barbie), Infant, Toddler, and Preschool (primarily Baby Gear & Power Wheels), and Action Figures, Building Sets, Games, and Other (primarily Action Figures), partly offset by growth in Vehicles (primarily Hot Wheels).
Gross Margin
Reported Gross Margin increased to 50.8%, versus 47.5% in the prior year, and Adjusted Gross Margin increased to 50.9%, versus 47.5%. The increase in Gross Margin was primarily driven by supply chain efficiencies, savings from the Optimizing for Profitable Growth program, and cost deflation, partly offset by benefits related to the Barbie movie in the prior year.
Other Selling and Administrative Expenses
Reported Other Selling and Administrative Expenses increased $35 million to $1,532 million, primarily due to higher employee compensation, partly offset by savings from the Optimizing for Profitable Growth program. Adjusted Other Selling and Administrative Expenses increased $76 million to $1,493 million, primarily due to the same factors.
Cash Flow
For the year ended December 31, 2024, Cash Flows Provided by Operating Activities were $801 million, a decline of $69 million, primarily driven by higher working capital requirements, partially offset by higher net earnings.
Cash Flows Used for Investing Activities were $189 million, an increase of $47 million, primarily due to higher capital expenditures, including the acquisition of a new global design center to replace our current leased facility.
Cash Flows Used for Financing Activities and Other were $485 million, an increase of $258 million, primarily due to $197 million of higher share repurchases in 2024.
Gross Billings by Categories
Fourth Quarter 2024
Worldwide Gross Billings for Dolls were $735 million, down 4% as reported and 3% in constant currency, versus the prior year’s fourth quarter, primarily due to declines in Barbie.
Worldwide Gross Billings for Infant, Toddler, and Preschool were $276 million, down 5% as reported, and 4% in constant currency, primarily due to declines in Baby Gear & Power Wheels.
Worldwide Gross Billings for Vehicles were $544 million, up 14% as reported, and 16% in constant currency, primarily driven by growth in Hot Wheels.
Worldwide Gross Billings for Action Figures, Building Sets, Games, and Other were $327 million, up 5% as reported, and 6% in constant currency, primarily driven by growth in Action Figures and Games, partly offset by declines in Building Sets and Other.
Full Year 2024
Worldwide Gross Billings for Dolls were $2,200 million, down 8% as reported and in constant currency, primarily due to declines in Barbie.
Worldwide Gross Billings for Infant, Toddler, and Preschool were $951 million, down 5% as reported, and 4% in constant currency, primarily due to declines in Baby Gear & Power Wheels.
Worldwide Gross Billings for Vehicles were $1,791 million, up 9% as reported, and 10% in constant currency, primarily driven by growth in Hot Wheels.
Worldwide Gross Billings for Action Figures, Building Sets, Games, and Other were $1,090 million, up 2% as reported, and 3% in constant currency, primarily driven by growth in Games and Action Figures, partly offset by declines in Building Sets and Other.
2025 Guidance
Mattel’s full year 2025 guidance is:
| (in millions, except EPS and percentages) |
FY2025 Guidance | FY2024 Actual | ||
| Net Sales (Constant Currency) | +2% to 3% |
$5,380 |
||
| Adjusted Gross Margin | Comparable |
50.9% |
||
| Adjusted Operating Income | $740 – $765 |
$738 |
||
| Adjusted Tax Rate | 23% – 24% |
21% |
||
| Adjusted EPS | $1.66 – $1.72 |
$1.62 |
||
| Free Cash Flow | Approx. $600 |
$598 |
Guidance includes the anticipated impact of new U.S. tariffs on China, Mexico and Canada imports announced on February 1st, and mitigating actions we plan to take, including leveraging the strength of our supply chain, and potential pricing.
A reconciliation of Mattel’s non-GAAP financial measures on a forward-looking basis, including Net Sales on a constant currency basis, Adjusted Gross Margin, Adjusted Operating Income, Adjusted Tax Rate, Adjusted EPS, and Free Cash Flow is not available without unreasonable effort. Mattel is unable to predict with sufficient certainty items that would be excluded from the corresponding GAAP measures, including the effect of foreign currency exchange rate fluctuations, unusual gains and losses or charges, and severance and restructuring charges, due to the unpredictable nature of such items, which may have a significant impact on Mattel’s GAAP measures.
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 including additional regulatory actions impacting international trade such as tariffs, and other macroeconomic risks and uncertainties.
MAT-FIN MAT-CORP
| MATTEL, INC. AND SUBSIDIARIES |
EXHIBIT I |
||||||||||||||||||||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)1 | |||||||||||||||||||||||||||||||||||||||
| For the Three Months Ended December 31, | For the Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||
| (In millions, except per share and percentage information) |
2024 |
2023 |
% Change |
% Change |
2024 |
2023 |
% Change |
% Change |
|||||||||||||||||||||||||||||||
|
$ Amt |
% Net |
$ Amt |
% Net |
$ Amt |
% Net |
$ Amt |
% Net |
||||||||||||||||||||||||||||||||
| Net Sales |
$ |
1,646.4 |
|
$ |
1,620.7 |
|
2 |
% |
3 |
% |
$ |
5,379.5 |
|
$ |
5,441.2 |
|
-1 |
% |
-1 |
% |
|||||||||||||||||||
| Cost of Sales |
|
810.9 |
|
49.3 |
% |
|
830.5 |
|
51.2 |
% |
-2 |
% |
|
2,645.5 |
|
49.2 |
% |
|
2,857.5 |
|
52.5 |
% |
-7 |
% |
|||||||||||||||
| Gross Profit |
|
835.5 |
|
50.7 |
% |
|
790.2 |
|
48.8 |
% |
6 |
% |
7 |
% |
|
2,734.1 |
|
50.8 |
% |
|
2,583.7 |
|
47.5 |
% |
6 |
% |
6 |
% |
|||||||||||
| Advertising and Promotion Expenses |
|
257.2 |
|
15.6 |
% |
|
234.4 |
|
14.5 |
% |
10 |
% |
|
507.3 |
|
9.4 |
% |
|
524.8 |
|
9.6 |
% |
-3 |
% |
|||||||||||||||
| Other Selling and Administrative Expenses |
|
420.0 |
|
25.5 |
% |
|
415.7 |
|
25.6 |
% |
1 |
% |
|
1,532.5 |
|
28.5 |
% |
|
1,497.3 |
|
27.5 |
% |
2 |
% |
|||||||||||||||
| Operating Income |
|
158.3 |
|
9.6 |
% |
|
140.1 |
|
8.6 |
% |
13 |
% |
12 |
% |
|
694.3 |
|
12.9 |
% |
|
561.7 |
|
10.3 |
% |
24 |
% |
27 |
% |
|||||||||||
| Interest Expense |
|
29.4 |
|
1.8 |
% |
|
31.3 |
|
1.9 |
% |
-6 |
% |
|
118.8 |
|
2.2 |
% |
|
123.8 |
|
2.3 |
% |
-4 |
% |
|||||||||||||||
| Interest (Income) |
|
(12.0 |
) |
-0.7 |
% |
|
(9.8 |
) |
-0.6 |
% |
22 |
% |
|
(51.5 |
) |
-1.0 |
% |
|
(25.2 |
) |
-0.5 |
% |
104 |
% |
|||||||||||||||
| Other Non-Operating (Income) Expense, Net |
|
(4.3 |
) |
|
3.7 |
|
|
4.5 |
|
|
(2.3 |
) |
|||||||||||||||||||||||||||
| Income Before Income Taxes |
|
145.2 |
|
8.8 |
% |
|
114.9 |
|
7.1 |
% |
26 |
% |
34 |
% |
|
622.5 |
|
11.6 |
% |
|
465.4 |
|
8.6 |
% |
34 |
% |
41 |
% |
|||||||||||
| Provision (Benefit) from Income Taxes |
|
10.9 |
|
|
(27.3 |
) |
|
105.6 |
|
|
269.5 |
|
|||||||||||||||||||||||||||
| (Income) from Equity Method Investments |
|
(6.5 |
) |
|
(5.1 |
) |
|
(24.9 |
) |
|
(18.4 |
) |
|||||||||||||||||||||||||||
| Net Income |
$ |
140.9 |
|
8.6 |
% |
$ |
147.3 |
|
9.1 |
% |
-4 |
% |
$ |
541.8 |
|
10.1 |
% |
$ |
214.4 |
|
3.9 |
% |
153 |
% |
|||||||||||||||
| Net Income Per Common Share – Basic |
$ |
0.42 |
|
$ |
0.42 |
|
$ |
1.59 |
|
$ |
0.61 |
|
|||||||||||||||||||||||||||
| Weighted-Average Number of Common Shares |
|
333.6 |
|
|
350.6 |
|
|
340.4 |
|
|
353.6 |
|
|||||||||||||||||||||||||||
| Net Income Per Common Share – Diluted |
$ |
0.42 |
|
$ |
0.42 |
|
$ |
1.58 |
|
$ |
0.60 |
|
|||||||||||||||||||||||||||
| Weighted-Average Number of Common and Potential Common Shares |
|
336.4 |
|
|
353.5 |
|
|
343.3 |
|
|
357.1 |
|
|||||||||||||||||||||||||||
| 1 Amounts may not sum due to rounding. | |||||||||||||||||||||||||||||||||||||||
| MATTEL, INC. AND SUBSIDIARIES | EXHIBIT II | ||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS1 | |||||||||
| December 31, | |||||||||
|
2024 |
2023 |
||||||||
| (In millions) | (Unaudited) | ||||||||
| Assets | |||||||||
| Cash and Equivalents |
$ |
1,387.9 |
|
$ |
1,261.4 |
|
|||
| Accounts Receivable, Net |
|
1,003.2 |
|
|
1,081.8 |
|
|||
| Inventories |
|
501.7 |
|
|
571.6 |
|
|||
| Prepaid Expenses and Other Current Assets |
|
234.1 |
|
|
207.5 |
|
|||
| Total Current Assets |
|
3,126.9 |
|
|
3,122.3 |
|
|||
| Property, Plant, and Equipment, Net |
|
516.0 |
|
|
465.5 |
|
|||
| Right-of-Use Assets, Net |
|
326.4 |
|
|
313.2 |
|
|||
| Goodwill |
|
1,381.7 |
|
|
1,384.5 |
|
|||
| Other Noncurrent Assets |
|
1,193.0 |
|
|
1,150.2 |
|
|||
| Total Assets |
$ |
6,544.1 |
|
$ |
6,435.8 |
|
|||
| Liabilities and Stockholders’ Equity | |||||||||
| Accounts Payable and Accrued Liabilities |
$ |
1,277.7 |
|
$ |
1,308.6 |
|
|||
| Income Taxes Payable |
|
38.0 |
|
|
33.9 |
|
|||
| Total Current Liabilities |
|
1,315.7 |
|
|
1,342.5 |
|
|||
| Long-Term Debt |
|
2,334.4 |
|
|
2,330.0 |
|
|||
| Noncurrent Lease Liabilities |
|
278.2 |
|
|
259.5 |
|
|||
| Other Noncurrent Liabilities |
|
351.7 |
|
|
354.6 |
|
|||
| Stockholders’ Equity |
|
2,264.1 |
|
|
2,149.2 |
|
|||
| Total Liabilities and Stockholders’ Equity |
$ |
6,544.1 |
|
$ |
6,435.8 |
|
|||
| 1 Amounts may not sum due to rounding. | |||||||||
| MATTEL, INC. AND SUBSIDIARIES | EXHIBIT II | ||||||||
| SUPPLEMENTAL BALANCE SHEET AND CASH FLOW DATA (Unaudited)1 | |||||||||
| December 31, | |||||||||
|
2024 |
2023 |
||||||||
| Key Balance Sheet Data: | |||||||||
| Accounts Receivable, Net Days of Sales Outstanding (DSO) |
|
55 |
|
|
60 |
|
|||
| For the Year Ended December 31, | |||||||||
| (In millions) |
2024 |
2023 |
|||||||
| Condensed Cash Flow Data: | |||||||||
| Cash Flows Provided by Operating Activities |
$ |
800.6 |
|
$ |
869.8 |
|
|||
| Cash Flows (Used for) Investing Activities |
|
(189.0 |
) |
|
(142.4 |
) |
|||
| Cash Flows (Used for) Financing Activities and Other |
|
(485.0 |
) |
|
(227.2 |
) |
|||
| Increase in Cash and Equivalents |
$ |
126.5 |
|
$ |
500.1 |
|
|||
| 1 Amounts may not sum due to rounding. | |||||||||
| MATTEL, INC. AND SUBSIDIARIES |
EXHIBIT III |
||||||||||||||||||||
| SUPPLEMENTAL FINANCIAL INFORMATION (Unaudited)1 | |||||||||||||||||||||
| RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL MEASURES | |||||||||||||||||||||
| For the Three Months Ended December 31, | For the Year Ended December 31, | ||||||||||||||||||||
| (In millions, except percentage information) |
2024 |
2023 |
Change |
2024 |
2023 |
Change | |||||||||||||||
| Gross Profit | |||||||||||||||||||||
| Gross Profit, As Reported |
$ |
835.5 |
|
$ |
790.2 |
|
$ |
2,734.1 |
|
$ |
2,583.7 |
|
|||||||||
| Gross Margin |
|
50.7 |
% |
|
48.8 |
% |
190 bps |
|
50.8 |
% |
|
47.5 |
% |
330 bps | |||||||
| Adjustments: | |||||||||||||||||||||
| Severance and Restructuring Expenses |
|
1.3 |
|
|
0.1 |
|
|
4.3 |
|
|
(1.2 |
) |
|||||||||
| Gross Profit, As Adjusted |
$ |
836.7 |
|
$ |
790.3 |
|
$ |
2,738.3 |
|
$ |
2,582.6 |
|
|||||||||
| Adjusted Gross Margin |
|
50.8 |
% |
|
48.8 |
% |
200 bps |
|
50.9 |
% |
|
47.5 |
% |
340 bps | |||||||
| Other Selling and Administrative Expenses | |||||||||||||||||||||
| Other Selling and Administrative Expenses, As Reported |
$ |
420.0 |
|
$ |
415.7 |
|
1 |
% |
$ |
1,532.5 |
|
$ |
1,497.3 |
|
2 |
% |
|||||
| % of Net Sales |
|
25.5 |
% |
|
25.6 |
% |
-10 bps |
|
28.5 |
% |
|
27.5 |
% |
100 bps | |||||||
| Adjustments: | |||||||||||||||||||||
| Severance and Restructuring Expenses |
|
— |
|
|
2.1 |
|
|
(43.8 |
) |
|
(60.8 |
) |
|||||||||
| Inclined Sleeper Product Recalls |
|
(1.7 |
) |
|
(9.0 |
) |
|
4.1 |
|
|
(18.1 |
) |
|||||||||
| Sale of Assets |
|
— |
|
|
— |
|
|
— |
|
|
(1.8 |
) |
|||||||||
| Other Selling and Administrative Expenses, As Adjusted |
$ |
418.3 |
|
$ |
408.8 |
|
2 |
% |
$ |
1,492.7 |
|
$ |
1,416.6 |
|
5 |
% |
|||||
| % of Net Sales |
|
25.4 |
% |
|
25.2 |
% |
20 bps |
|
27.7 |
% |
|
26.0 |
% |
170 bps | |||||||
| Operating Income | |||||||||||||||||||||
| Operating Income, As Reported |
$ |
158.3 |
|
$ |
140.1 |
|
13 |
% |
$ |
694.3 |
|
$ |
561.7 |
|
24 |
% |
|||||
| Operating Income Margin |
|
9.6 |
% |
|
8.6 |
% |
100 bps |
|
12.9 |
% |
|
10.3 |
% |
260 bps | |||||||
| Adjustments: | |||||||||||||||||||||
| Severance and Restructuring Expenses |
|
1.3 |
|
|
(2.0 |
) |
|
48.1 |
|
|
59.7 |
|
|||||||||
| Inclined Sleeper Product Recalls |
|
1.7 |
|
|
9.0 |
|
|
(4.1 |
) |
|
18.1 |
|
|||||||||
| Sale of Assets |
|
— |
|
|
— |
|
|
— |
|
|
1.8 |
|
|||||||||
| Operating Income, As Adjusted |
$ |
161.3 |
|
$ |
147.1 |
|
10 |
% |
$ |
738.3 |
|
$ |
641.2 |
|
15 |
% |
|||||
| Adjusted Operating Income Margin |
|
9.8 |
% |
|
9.1 |
% |
70 bps |
|
13.7 |
% |
|
11.8 |
% |
190 bps | |||||||
| 1 Amounts may not sum due to rounding. | |||||||||||||||||||||
| MATTEL, INC. AND SUBSIDIARIES |
EXHIBIT III |
||||||||||||||||||||
| SUPPLEMENTAL FINANCIAL INFORMATION (Unaudited)1 | |||||||||||||||||||||
| RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL MEASURES | |||||||||||||||||||||
| For the Three Months Ended December 31, | For the Year Ended December 31, | ||||||||||||||||||||
| (In millions, except per share and percentage information) |
2024 |
2023 |
Change |
2024 |
2023 |
Change | |||||||||||||||
| Earnings Per Share | |||||||||||||||||||||
| Net Income Per Common Share, As Reported |
$ |
0.42 |
|
$ |
0.42 |
|
— |
% |
$ |
1.58 |
|
$ |
0.60 |
|
163 |
% |
|||||
| Adjustments: | |||||||||||||||||||||
| Severance and Restructuring Expenses |
|
— |
|
|
(0.01 |
) |
|
0.14 |
|
|
0.17 |
|
|||||||||
| Inclined Sleeper Product Recalls |
|
0.01 |
|
|
0.03 |
|
|
(0.01 |
) |
|
0.05 |
|
|||||||||
| Sale of Assets |
|
— |
|
|
— |
|
|
— |
|
|
0.00 |
|
|||||||||
| Changes to Deferred Tax Assets2 |
|
(0.07 |
) |
|
(0.14 |
) |
|
(0.06 |
) |
|
0.45 |
|
|||||||||
| Tax Effect of Adjustments3 |
|
— |
|
|
— |
|
|
(0.03 |
) |
|
(0.04 |
) |
|||||||||
| Net Income Per Common Share, As Adjusted |
$ |
0.35 |
|
$ |
0.29 |
|
21 |
% |
$ |
1.62 |
|
$ |
1.23 |
|
32 |
% |
|||||
| EBITDA and Adjusted EBITDA | |||||||||||||||||||||
| Net Income, As Reported |
$ |
140.9 |
|
$ |
147.3 |
|
-4 |
% |
$ |
541.8 |
|
$ |
214.4 |
|
153 |
% |
|||||
| Adjustments: | |||||||||||||||||||||
| Interest Expense |
|
29.4 |
|
|
31.3 |
|
|
118.8 |
|
|
123.8 |
|
|||||||||
| Provision (Benefit) from Income Taxes |
|
10.9 |
|
|
(27.3 |
) |
|
105.6 |
|
|
269.5 |
|
|||||||||
| Depreciation |
|
35.0 |
|
|
35.4 |
|
|
136.6 |
|
|
139.5 |
|
|||||||||
| Amortization |
|
7.8 |
|
|
9.3 |
|
|
31.3 |
|
|
37.9 |
|
|||||||||
| EBITDA |
|
223.9 |
|
|
196.1 |
|
|
934.2 |
|
|
785.0 |
|
|||||||||
| Adjustments: | |||||||||||||||||||||
| Share-Based Compensation |
|
22.0 |
|
|
30.9 |
|
|
79.4 |
|
|
83.3 |
|
|||||||||
| Severance and Restructuring Expenses |
|
1.3 |
|
|
(2.0 |
) |
|
48.1 |
|
|
59.7 |
|
|||||||||
| Inclined Sleeper Product Recalls |
|
1.7 |
|
|
9.0 |
|
|
(4.1 |
) |
|
18.1 |
|
|||||||||
| Sale of Assets |
|
— |
|
|
— |
|
|
— |
|
|
1.8 |
|
|||||||||
| Adjusted EBITDA |
$ |
248.9 |
|
$ |
234.0 |
|
6 |
% |
$ |
1,057.6 |
|
$ |
947.8 |
|
12 |
% |
|||||
| Free Cash Flow | |||||||||||||||||||||
| Net Cash Flows Provided by Operating Activities |
$ |
800.6 |
|
$ |
869.8 |
|
|||||||||||||||
| Capital Expenditures |
|
(202.6 |
) |
|
(160.3 |
) |
|||||||||||||||
| Free Cash Flow |
$ |
597.9 |
|
$ |
709.5 |
|
|||||||||||||||
| 1 Amounts may not sum due to rounding. | |||||||||||||||||||||
| 2 For the year ended December 31, 2023, Mattel recorded an expense of $212.4 million related to the write-off of foreign deferred tax assets and a benefit of $51.0 million upon the establishment of deferred tax assets related to an intra-group transfer of certain IP rights. | |||||||||||||||||||||
| 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. | |||||||||||||||||||||
| MATTEL, INC. AND SUBSIDIARIES |
EXHIBIT III |
||||||||||||||||||||
| SUPPLEMENTAL FINANCIAL INFORMATION (Unaudited)1 | |||||||||||||||||||||
| RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL MEASURES | |||||||||||||||||||||
| For the Year Ended December 31, | |||||||||||||||||||||
| (In millions, except percentage and pts information) |
2024 |
2023 |
Change | ||||||||||||||||||
| Tax Rate | |||||||||||||||||||||
| Income Before Income Taxes, As Reported |
$ |
622.5 |
|
$ |
465.4 |
|
|||||||||||||||
| Adjustments: | |||||||||||||||||||||
| Severance and Restructuring Expenses |
|
48.1 |
|
|
59.7 |
|
|||||||||||||||
| Inclined Sleeper Product Recalls |
|
(4.1 |
) |
|
18.1 |
|
|||||||||||||||
| Sale of Assets |
|
— |
|
|
1.8 |
|
|||||||||||||||
| Income Before Income Taxes, As Adjusted |
$ |
666.5 |
|
$ |
544.9 |
|
|||||||||||||||
| Provision for Income Taxes, As Reported |
$ |
105.6 |
|
$ |
269.5 |
|
|||||||||||||||
| Adjustments: | |||||||||||||||||||||
| Changes to Deferred Tax Assets2 |
|
21.1 |
|
|
(161.4 |
) |
|||||||||||||||
| Tax Effect of Adjustments3 |
|
10.2 |
|
|
15.3 |
|
|||||||||||||||
| Provision for Income Taxes, As Adjusted |
$ |
136.9 |
|
$ |
123.4 |
|
|||||||||||||||
| Tax Rate, As Reported |
|
17 |
% |
|
58 |
% |
-41 pts | ||||||||||||||
| Tax Rate, As Adjusted |
|
21 |
% |
|
23 |
% |
-2 pts | ||||||||||||||
| December 31, | |||||||||||||||||||||
|
2024 |
2023 |
||||||||||||||||||||
| Net Debt | |||||||||||||||||||||
| Long-Term Debt |
$ |
2,334.4 |
|
$ |
2,330.0 |
|
|||||||||||||||
| Adjustments: | |||||||||||||||||||||
| Cash and Equivalents |
|
(1,387.9 |
) |
|
(1,261.4 |
) |
|||||||||||||||
| Net Debt |
$ |
946.4 |
|
$ |
1,068.6 |
|
|||||||||||||||
|
1 Amounts may not sum due to rounding. |
|||||||||||||||||||||
| 2 For the year ended December 31, 2023, Mattel recorded an expense of $212.4 million related to the write-off of foreign deferred tax assets and a benefit of $51.0 million upon the establishment of deferred tax assets related to an intra-group transfer of certain IP rights. | |||||||||||||||||||||
| 3 Tax effect of adjustments was determined using the effective tax rates on a jurisdictional basis of the respective adjustments. | |||||||||||||||||||||
| MATTEL, INC. AND SUBSIDIARIES |
EXHIBIT III |
||||||||||||||||||||
| SUPPLEMENTAL FINANCIAL INFORMATION (Unaudited)1 | |||||||||||||||||||||
| RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL MEASURES | |||||||||||||||||||||
| For the Year Ended December 31, | |||||||||||||||||||||
| (In millions, except percentage and pts information) |
2024 |
2023 |
Change | ||||||||||||||||||
| Leverage Ratio (Total Debt/Adjusted EBITDA) | |||||||||||||||||||||
| Total Debt | |||||||||||||||||||||
| Long-Term Debt |
$ |
2,334.4 |
|
$ |
2,330.0 |
|
|||||||||||||||
| Adjustments: | |||||||||||||||||||||
| Debt Issuance Costs and Debt Discount |
|
15.6 |
|
|
20.0 |
|
|||||||||||||||
| Total Debt |
$ |
2,350.0 |
|
$ |
2,350.0 |
|
|||||||||||||||
| EBITDA and Adjusted EBITDA | |||||||||||||||||||||
| Net Income, As Reported |
$ |
541.8 |
|
$ |
214.4 |
|
153 |
% |
|||||||||||||
| Adjustments: | |||||||||||||||||||||
| Interest Expense |
|
118.8 |
|
|
123.8 |
|
|||||||||||||||
| Provision for Income Taxes |
|
105.6 |
|
|
269.5 |
|
|||||||||||||||
| Depreciation |
|
136.6 |
|
|
139.5 |
|
|||||||||||||||
| Amortization |
|
31.3 |
|
|
37.9 |
|
|||||||||||||||
| EBITDA |
|
934.2 |
|
|
785.0 |
|
|||||||||||||||
| Adjustments: | |||||||||||||||||||||
| Share-Based Compensation |
|
79.4 |
|
|
83.3 |
|
|||||||||||||||
| Severance and Restructuring Expenses |
|
48.1 |
|
|
59.7 |
|
|||||||||||||||
| Inclined Sleeper Product Recalls |
|
(4.1 |
) |
|
18.1 |
|
|||||||||||||||
| Sale of Assets |
|
— |
|
|
1.8 |
|
|||||||||||||||
| Adjusted EBITDA |
$ |
1,057.6 |
|
$ |
947.8 |
|
12 |
% |
|||||||||||||
| Total Debt / Net Income | 4.3x | 11.0x | |||||||||||||||||||
| Leverage Ratio (Total Debt / Adjusted EBITDA) | 2.2x | 2.5x | |||||||||||||||||||
| Free Cash Flow | |||||||||||||||||||||
| Net Cash Flows Provided by Operating Activities |
$ |
800.6 |
|
$ |
869.8 |
|
-8 |
% |
|||||||||||||
| Capital Expenditures |
|
(202.6 |
) |
|
(160.3 |
) |
|||||||||||||||
| Free Cash Flow |
$ |
597.9 |
|
$ |
709.5 |
|
-16 |
% |
|||||||||||||
| Net Cash Flows Provided by Operating Activities / Net Income |
|
148 |
% |
|
406 |
% |
-258 pts | ||||||||||||||
| Free Cash Flow Conversion (Free Cash Flow/Adjusted EBITDA) |
|
57 |
% |
|
75 |
% |
-18 pts | ||||||||||||||
| 1 Amounts may not sum due to rounding. | |||||||||||||||||||||
| MATTEL, INC. AND SUBSIDIARIES |
EXHIBIT IV |
||||||||||||||||||||||
| WORLDWIDE NET SALES AND GROSS BILLINGS1 (Unaudited)2 | |||||||||||||||||||||||
| For the Three Months Ended December 31, | For the Year Ended December 31, | ||||||||||||||||||||||
|
2024 |
2023 |
% Change |
% Change |
2024 |
2023 |
% Change |
% Change |
||||||||||||||||
| (In millions, except percentage information) | |||||||||||||||||||||||
| Worldwide Net Sales: | |||||||||||||||||||||||
| Net Sales |
$ |
1,646.4 |
$ |
1,620.7 |
2 |
% |
3 |
% |
$ |
5,379.5 |
$ |
5,441.2 |
-1 |
% |
-1 |
% |
|||||||
| Worldwide Gross Billings by Categories: | |||||||||||||||||||||||
| Dolls |
$ |
734.9 |
$ |
763.1 |
-4 |
% |
-3 |
% |
$ |
2,200.5 |
$ |
2,394.2 |
-8 |
% |
-8 |
% |
|||||||
| Infant, Toddler, and Preschool |
|
276.2 |
|
292.2 |
-5 |
|
-4 |
|
|
951.3 |
|
1,000.8 |
-5 |
|
-4 |
|
|||||||
| Vehicles |
|
543.8 |
|
475.1 |
14 |
|
16 |
|
|
1,791.2 |
|
1,641.0 |
9 |
|
10 |
|
|||||||
| Action Figures, Building Sets, Games, and Other |
|
327.1 |
|
310.8 |
5 |
|
6 |
|
|
1,090.4 |
|
1,065.8 |
2 |
|
3 |
|
|||||||
| Gross Billings |
$ |
1,881.9 |
$ |
1,841.2 |
2 |
% |
3 |
% |
$ |
6,033.3 |
$ |
6,101.8 |
-1 |
% |
— |
% |
|||||||
| Supplemental Gross Billings Disclosure | |||||||||||||||||||||||
| Worldwide Gross Billings by Top 3 Power Brands: | |||||||||||||||||||||||
| Barbie |
$ |
406.0 |
$ |
473.1 |
-14 |
% |
-13 |
% |
$ |
1,350.1 |
$ |
1,537.8 |
-12 |
% |
-12 |
% |
|||||||
| Hot Wheels |
|
481.4 |
|
417.5 |
15 |
|
17 |
|
|
1,575.0 |
|
1,432.4 |
10 |
|
11 |
|
|||||||
| Fisher-Price3 |
|
206.1 |
|
200.8 |
3 |
|
4 |
|
|
700.8 |
|
681.5 |
3 |
|
4 |
|
|||||||
| Other |
|
788.5 |
|
749.8 |
5 |
|
6 |
|
|
2,407.4 |
|
2,450.2 |
-2 |
|
-1 |
|
|||||||
| Gross Billings |
$ |
1,881.9 |
$ |
1,841.2 |
2 |
% |
3 |
% |
$ |
6,033.3 |
$ |
6,101.8 |
-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. Mattel presents changes in gross billings as a metric for comparing its aggregate, categorical, brand, and geographic results to highlight significant trends in Mattel’s business. | |||||||||||||||||||||||
| 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 Baby Gear and Imaginext products. Prior period amounts have been reclassified to conform to the current presentation. | |||||||||||||||||||||||
| MATTEL, INC. AND SUBSIDIARIES |
EXHIBIT V |
||||||||||||||||||||||
| NET SALES AND GROSS BILLINGS1 BY SEGMENT (Unaudited)2,3 | |||||||||||||||||||||||
| For the Three Months Ended December 31, | For the Year Ended December 31, | ||||||||||||||||||||||
|
2024 |
2023 |
% Change |
% Change |
2024 |
2023 |
% Change |
% Change |
||||||||||||||||
| (In millions, except percentage information) | |||||||||||||||||||||||
| North America Net Sales: | |||||||||||||||||||||||
| Net Sales |
$ |
975.5 |
$ |
968.5 |
1 |
% |
1 |
% |
$ |
3,168.1 |
$ |
3,210.4 |
-1 |
% |
-1 |
% |
|||||||
| North America Gross Billings by Categories: | |||||||||||||||||||||||
| Dolls |
$ |
441.9 |
$ |
448.9 |
-2 |
% |
-1 |
% |
$ |
1,280.1 |
$ |
1,368.0 |
-6 |
% |
-6 |
% |
|||||||
| Infant, Toddler, and Preschool |
|
163.2 |
|
180.9 |
-10 |
|
-10 |
|
|
583.3 |
|
618.6 |
-6 |
|
-6 |
|
|||||||
| Vehicles |
|
255.2 |
|
233.3 |
9 |
|
10 |
|
|
860.6 |
|
812.4 |
6 |
|
6 |
|
|||||||
| Action Figures, Building Sets, Games, and Other |
|
196.8 |
|
180.1 |
9 |
|
9 |
|
|
670.6 |
|
633.5 |
6 |
|
6 |
|
|||||||
| Gross Billings |
$ |
1,057.0 |
$ |
1,043.2 |
1 |
% |
1 |
% |
$ |
3,394.6 |
$ |
3,432.5 |
-1 |
% |
-1 |
% |
|||||||
| Supplemental Gross Billings Disclosure | |||||||||||||||||||||||
| North America Gross Billings by Top 3 Power Brands: | |||||||||||||||||||||||
| Barbie |
$ |
217.4 |
$ |
252.8 |
-14 |
% |
-14 |
% |
$ |
734.9 |
$ |
840.4 |
-13 |
% |
-12 |
% |
|||||||
| Hot Wheels |
|
220.3 |
|
198.5 |
11 |
|
11 |
|
|
741.3 |
|
690.8 |
7 |
|
7 |
|
|||||||
| Fisher-Price4 |
|
120.7 |
|
119.0 |
1 |
|
1 |
|
|
421.3 |
|
404.9 |
4 |
|
4 |
|
|||||||
| Other |
|
498.6 |
|
472.8 |
5 |
|
6 |
|
|
1,497.0 |
|
1,496.3 |
— |
|
— |
|
|||||||
| Gross Billings |
$ |
1,057.0 |
$ |
1,043.2 |
1 |
% |
1 |
% |
$ |
3,394.6 |
$ |
3,432.5 |
-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. Mattel presents changes in gross billings as a metric for comparing its aggregate, categorical, brand, and geographic results to highlight significant trends in Mattel’s business. | |||||||||||||||||||||||
| 2 Amounts may not sum due to rounding. | |||||||||||||||||||||||
| 3 In the first quarter of 2024, Mattel’s American Girl business was integrated into its North America commercial organization and is reported within the North America operating segment. Prior period amounts have been reclassified to conform to the current period presentation. | |||||||||||||||||||||||
| 4 Beginning in the first quarter of 2024, the Fisher-Price power brand was revised to exclude Baby Gear and Imaginext products. Prior period amounts have been reclassified to conform to the current presentation. | |||||||||||||||||||||||
| MATTEL, INC. AND SUBSIDIARIES |
EXHIBIT VI |
||||||||||||||||||||||
| NET SALES AND GROSS BILLINGS1 BY SEGMENT (Unaudited)2 | |||||||||||||||||||||||
| For the Three Months Ended December 31, | For the Year Ended December 31, | ||||||||||||||||||||||
|
2024 |
2023 |
% Change |
% Change |
2024 |
2023 |
% Change |
% Change |
||||||||||||||||
| (In millions, except percentage information) | |||||||||||||||||||||||
| International Net Sales by Geographic Area: | |||||||||||||||||||||||
| EMEA |
$ |
402.6 |
$ |
366.5 |
10 |
% |
10 |
% |
$ |
1,240.4 |
$ |
1,241.5 |
— |
% |
-1 |
% |
|||||||
| Latin America |
|
153.4 |
|
182.4 |
-16 |
|
-6 |
|
|
608.2 |
|
658.0 |
-8 |
|
-2 |
|
|||||||
| Asia Pacific |
|
114.9 |
|
103.3 |
11 |
|
11 |
|
|
362.8 |
|
331.3 |
10 |
|
11 |
|
|||||||
| Net Sales |
$ |
670.9 |
$ |
652.2 |
3 |
% |
6 |
% |
$ |
2,211.5 |
$ |
2,230.8 |
-1 |
% |
1 |
% |
|||||||
| International Gross Billings by Geographic Area: | |||||||||||||||||||||||
| EMEA |
$ |
503.1 |
$ |
455.8 |
10 |
% |
10 |
% |
$ |
1,501.4 |
$ |
1,510.7 |
-1 |
% |
-2 |
% |
|||||||
| Latin America |
|
190.7 |
|
223.5 |
-15 |
|
-5 |
|
|
722.1 |
|
776.4 |
-7 |
|
-1 |
|
|||||||
| Asia Pacific |
|
131.1 |
|
118.7 |
10 |
|
10 |
|
|
415.3 |
|
382.3 |
9 |
|
10 |
|
|||||||
| Gross Billings |
$ |
824.9 |
$ |
798.1 |
3 |
% |
6 |
% |
$ |
2,638.7 |
$ |
2,669.4 |
-1 |
% |
— |
% |
|||||||
| International Gross Billings by Categories: | |||||||||||||||||||||||
| Dolls |
$ |
293.0 |
$ |
314.3 |
-7 |
% |
-4 |
% |
$ |
920.4 |
$ |
1,026.2 |
-10 |
% |
-9 |
% |
|||||||
| Infant, Toddler, and Preschool |
|
113.0 |
|
111.3 |
2 |
|
5 |
|
|
368.0 |
|
382.2 |
-4 |
|
-2 |
|
|||||||
| Vehicles |
|
288.6 |
|
241.9 |
19 |
|
23 |
|
|
930.5 |
|
828.6 |
12 |
|
14 |
|
|||||||
| Action Figures, Building Sets, Games, and Other |
|
130.3 |
|
130.6 |
— |
|
2 |
|
|
419.8 |
|
432.3 |
-3 |
|
-2 |
|
|||||||
| Gross Billings |
$ |
824.9 |
$ |
798.1 |
3 |
% |
6 |
% |
$ |
2,638.7 |
$ |
2,669.4 |
-1 |
% |
— |
% |
|||||||
| Supplemental Gross Billings Disclosure | |||||||||||||||||||||||
| International Gross Billings by Top 3 Power Brands: | |||||||||||||||||||||||
| Barbie |
$ |
188.5 |
$ |
220.3 |
-14 |
% |
-12 |
% |
$ |
615.2 |
$ |
697.4 |
-12 |
% |
-11 |
% |
|||||||
| Hot Wheels |
|
261.1 |
|
219.0 |
19 |
|
23 |
|
|
833.7 |
|
741.6 |
12 |
|
14 |
|
|||||||
| Fisher-Price3 |
|
85.4 |
|
81.8 |
4 |
|
8 |
|
|
279.5 |
|
276.5 |
1 |
|
3 |
|
|||||||
| Other |
|
289.8 |
|
277.0 |
5 |
|
7 |
|
|
910.3 |
|
953.8 |
-5 |
|
-3 |
|
|||||||
| Gross Billings |
$ |
824.9 |
$ |
798.1 |
3 |
% |
6 |
% |
$ |
2,638.7 |
$ |
2,669.4 |
-1 |
% |
— |
% |
|||||||
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