Mattel Reports First Quarter 2023 Financial Results
First Quarter 2023 Highlights Versus Prior Year
- Net Sales of $815 million, down 22% as reported, or 21% in constant currency
- Gross Margin of 40.0%, a decrease of 640 basis points; Adjusted Gross Margin of 40.0%, a decrease of 660 basis points
- Operating Loss of $115 million, a decrease of $195 million; Adjusted Operating Loss of $87 million, a decrease of $177 million
- Net Loss of $106 million compared to prior year Net Income of $21 million
- Net Loss per Share of $0.30 compared to prior year Net Income per Share of $0.06; Adjusted Net Loss per Share of $0.24 compared to prior year Net Income per Share of $0.08
- Adjusted EBITDA of negative $14 million, a decrease of $166 million
- Repurchased $34 million of shares
- Company reiterates 2023 guidance
El Segundo, CA — Mattel, Inc. reported first quarter 2023 financial results.
Ynon Kreiz, Chairman and CEO of Mattel, said: “While retail inventory management impacted the first quarter’s results, the underlying business performed well. Mattel achieved growth and gained market share, per Circana. The fundamentals of our business are strong. We expect to outpace the industry, gain market share, and achieve our full year guidance. We are well positioned to continue executing our multi-year strategy and create long-term shareholder value.”
Anthony DiSilvestro, CFO of Mattel, added: “We expect consumer demand to be positive for the full year and for revenue comparisons to improve, as shipping patterns revert to historical trends in the second half. We continue to generate meaningful free cash flow and expect to exceed $400 million in 2023. Consistent with our capital allocation priorities, we have resumed share repurchases, which also reflects confidence in our strategy.”
Financial Overview
For the first quarter, Net Sales were down 22% as reported, or 21% in constant currency, versus the prior year. Reported Operating Loss was $115 million, a decrease of $195 million, and Adjusted Operating Loss was $87 million, a decrease of $177 million. Reported Net Loss Per Share was $0.30, compared to prior year Reported Net Income Per Share of $0.06, and Adjusted Net Loss Per Share was $0.24, compared to prior year Adjusted Net Income Per Share of $0.08.
Net Sales in the North America segment decreased 27% as reported and in constant currency.
Gross Billings in the North America segment decreased 27% as reported and in constant currency, due to declines in Action Figures, Building Sets, Games, and Other (including Action Figures), Dolls (including Barbie®), Infant, Toddler, and Preschool (including Fisher-Price®), and Vehicles (including Hot Wheels®).
Net Sales in the International segment decreased 15% as reported, or 13% in constant currency.
Gross Billings in the International segment decreased 16% as reported, or 14% in constant currency, due to declines in Dolls (including Barbie), Action Figures, Building Sets, Games, and Other (including Action Figures and Games), and Infant, Toddler, and Preschool (including Fisher-Price), partially offset by growth in Vehicles (including Hot Wheels).
Net Sales in the American Girl® segment decreased 5% as reported and in constant currency. Gross Billings in the American Girl segment decreased 6% as reported and in constant currency.
Reported Gross Margin decreased to 40.0%, versus 46.4% in the prior year, and Adjusted Gross Margin decreased to 40.0%, versus 46.6%. The decrease in Reported and Adjusted Gross Margin was primarily driven by inventory management efforts, including higher close-out sales and inventory obsolescence expense, cost inflation, unfavorable fixed cost absorption, and mix and other factors, partially offset by pricing and savings from the Optimizing for Growth program.
Reported Other Selling and Administrative Expenses increased $36 million, to $365 million, primarily driven by market-related pay increases and higher severance and restructuring expenses, partially offset by savings from the Optimizing for Growth program. Adjusted Other Selling and Administrative Expenses increased $15 million, to $336 million, primarily driven by market-related pay increases, partially offset by savings from the Optimizing for Growth program.
For the three months ended March 31, 2023, Cash Flows Used for Operating Activities were $206 million, an increase of $63 million, versus the prior year’s first quarter, primarily due to changes in net earnings, excluding the impact of non-cash items, partially offset by lower working capital usage. Cash Flows Used for Investing Activities were $43 million, a decrease of $12 million, primarily due to prior year payment of foreign currency forward contracts, partially offset by higher capital expenditures. Cash Flows Used for Financing Activities and Other were $51 million, as compared to cash inflows of $4 million in the prior year, primarily due to share repurchases and lower proceeds from the exercise of stock options.
Gross Billings by Categories
For the first quarter, worldwide Gross Billings for Dolls were $306 million, down 23% as reported, or 22% in constant currency, versus the prior year, primarily due to declines in Barbie and Enchantimals, partially offset by the launch of Disney Princess and Disney Frozen and Monster High.
Worldwide Gross Billings for Infant, Toddler, and Preschool were $150 million, down 27% as reported, or 26% in constant currency, primarily due to declines in Fisher-Price.
Worldwide Gross Billings for Vehicles were $284 million, up 1% as reported and in constant currency, primarily driven by growth in Hot Wheels.
Worldwide Gross Billings for Action Figures, Building Sets, Games, and Other were $171 million, down 39% as reported, or 38% in constant currency, primarily due to declines in Action Figures and Games.
2023 Guidance
Mattel’s full year 2023 guidance remains:
| (in millions, | ||||
| except EPS and percentages) | FY2023 Guidance | FY2022 | ||
| Net Sales | Comparable (Constant Currency) |
$5,435 | ||
| Adjusted Gross Margin | ~ 47% | 45.9% | ||
| Adjusted EPS | $1.10 – $1.20 | $1.25 | ||
| Adjusted EBITDA | $900 – $950 | $968 | ||
| Adjusted Tax Rate | 25 – 26% | 24% | ||
| Capital Expenditures | $175 – $200 | $187 | ||
| Free Cash Flow | > $400 | $256 |
MAT-FIN MAT-CORP
| MATTEL, INC. AND SUBSIDIARIES | EXHIBIT I | |||||||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)1 | ||||||||||||||||||||
| For the Three Months Ended March 31, | ||||||||||||||||||||
| (In millions, except per share and percentage information) | 2023 | 2022 | % Change as Reported |
% Change in Constant Currency |
||||||||||||||||
| $ Amt | % Net Sales |
$ Amt | % Net Sales |
|||||||||||||||||
| Net Sales | $ | 814.6 | $ | 1,041.3 | -22 | % | -21 | % | ||||||||||||
| Cost of Sales | 488.8 | 60.0 | % | 558.4 | 53.6 | % | -12 | % | ||||||||||||
| Gross Profit | 325.8 | 40.0 | % | 482.9 | 46.4 | % | -33 | % | -32 | % | ||||||||||
| Advertising and Promotion Expenses | 76.0 | 9.3 | % | 73.8 | 7.1 | % | 3 | % | ||||||||||||
| Other Selling and Administrative Expenses | 364.8 | 44.8 | % | 329.1 | 31.6 | % | 11 | % | ||||||||||||
| Operating (Loss) Income | (115.0 | ) | -14.1 | % | 80.1 | 7.7 | % | n/m | n/m | |||||||||||
| Interest Expense | 31.1 | 3.8 | % | 33.0 | 3.2 | % | -6 | % | ||||||||||||
| Interest (Income) | (6.5 | ) | -0.8 | % | (1.2 | ) | -0.1 | % | 442 | % | ||||||||||
| Other Non-Operating (Income) Expense, Net | (1.4 | ) | 9.1 | |||||||||||||||||
| (Loss) Income Before Income Taxes | (138.2 | ) | -17.0 | % | 39.1 | 3.8 | % | n/m | n/m | |||||||||||
| (Benefit) Provision for Income Taxes | (27.0 | ) | 23.9 | |||||||||||||||||
| (Income) from Equity Method Investments | (4.7 | ) | (6.3 | ) | ||||||||||||||||
| Net (Loss) Income | $ | (106.5 | ) | -13.1 | % | $ | 21.5 | 2.1 | % | n/m | ||||||||||
| Net (Loss) Income Per Common Share – Basic | $ | (0.30 | ) | $ | 0.06 | |||||||||||||||
| Weighted-Average Number of Common Shares | 354.9 | 352.2 | ||||||||||||||||||
| Net (Loss) Income Per Common Share – Diluted | $ | (0.30 | ) | $ | 0.06 | |||||||||||||||
| Weighted-Average Number of Common and Potential Common Shares | 354.9 | 359.0 | ||||||||||||||||||
| 1 Amounts may not sum due to rounding. |
| n/m – Not meaningful |
| MATTEL, INC. AND SUBSIDIARIES | EXHIBIT II | ||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS1 | |||||||||||
| March 31, | December 31, | ||||||||||
| 2023 | 2022 | 2022 | |||||||||
| (In millions) | (Unaudited) | ||||||||||
| Assets | |||||||||||
| Cash and Equivalents | $ | 461.7 | $ | 536.6 | $ | 761.2 | |||||
| Accounts Receivable, Net | 673.8 | 862.2 | 860.2 | ||||||||
| Inventories | 961.0 | 969.2 | 894.1 | ||||||||
| Prepaid Expenses and Other Current Assets | 269.7 | 267.7 | 213.5 | ||||||||
| Total Current Assets | 2,366.3 | 2,635.7 | 2,729.0 | ||||||||
| Property, Plant, and Equipment, Net | 471.2 | 452.0 | 469.1 | ||||||||
| Right-of-Use Assets, Net | 304.5 | 339.7 | 318.7 | ||||||||
| Goodwill | 1,381.0 | 1,387.1 | 1,378.6 | ||||||||
| Other Noncurrent Assets | 1,308.7 | 1,332.9 | 1,282.3 | ||||||||
| Total Assets | $ | 5,831.7 | $ | 6,147.4 | $ | 6,177.7 | |||||
| Liabilities and Stockholders’ Equity | |||||||||||
| Current Portion of Long-Term Debt | $ | — | $ | 250.0 | $ | — | |||||
| Accounts Payable and Accrued Liabilities | 955.5 | 1,278.0 | 1,150.2 | ||||||||
| Income Taxes Payable | 13.5 | 16.7 | 37.6 | ||||||||
| Total Current Liabilities | 969.0 | 1,544.7 | 1,187.7 | ||||||||
| Long-Term Debt | 2,326.7 | 2,322.1 | 2,325.6 | ||||||||
| Noncurrent Lease Liabilities | 257.4 | 296.4 | 271.4 | ||||||||
| Other Noncurrent Liabilities | 341.0 | 366.1 | 336.6 | ||||||||
| Stockholders’ Equity | 1,937.7 | 1,618.1 | 2,056.3 | ||||||||
| Total Liabilities and Stockholders’ Equity | $ | 5,831.7 | $ | 6,147.4 | $ | 6,177.7 | |||||
| 1 Amounts may not sum due to rounding. | |||
| MATTEL, INC. AND SUBSIDIARIES | EXHIBIT II | ||||||||
| SUPPLEMENTAL BALANCE SHEET AND CASH FLOW DATA (Unaudited)1 | |||||||||
| March 31, | |||||||||
| 2023 | 2022 | ||||||||
| Key Balance Sheet Data: | |||||||||
| Accounts Receivable, Net Days of Sales Outstanding (DSO) | 74 | 75 | |||||||
| For the Three Months Ended March 31, | |||||||||
| (In millions) | 2023 | 2022 | |||||||
| Condensed Cash Flow Data: | |||||||||
| Cash Flows (Used for) Operating Activities | $ | (206 | ) | $ | (144 | ) | |||
| Cash Flows (Used for) Investing Activities | (43 | ) | (55 | ) | |||||
| Cash Flows (Used for) Provided by Financing Activities and Other | (51 | ) | 4 | ||||||
| Decrease in Cash and Equivalents | $ | (300 | ) | $ | (195 | ) | |||
| 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 March 31, | ||||||||||
| 2023 | 2022 | Change | ||||||||
| (In millions, except percentage information) | ||||||||||
| Gross Profit | ||||||||||
| Gross Profit, As Reported | $ | 325.8 | $ | 482.9 | ||||||
| Gross Margin | 40.0 | % | 46.4 | % | -640 bps | |||||
| Adjustments: | ||||||||||
| Severance and Restructuring Expenses | — | 2.7 | ||||||||
| Gross Profit, As Adjusted | $ | 325.8 | $ | 485.6 | ||||||
| Adjusted Gross Margin | 40.0 | % | 46.6 | % | -660 bps | |||||
| Other Selling and Administrative Expenses | ||||||||||
| Other Selling and Administrative Expenses, As Reported | $ | 364.8 | $ | 329.1 | 11% | |||||
| % of Net Sales | 44.8 | % | 31.6 | % | 1,320 bps | |||||
| Adjustments: | ||||||||||
| Severance and Restructuring Expenses | (23.9 | ) | (6.8 | ) | ||||||
| Inclined Sleeper Product Recalls | (4.3 | ) | (0.6 | ) | ||||||
| Other Selling and Administrative Expenses, As Adjusted | $ | 336.5 | $ | 321.7 | 5% | |||||
| % of Net Sales | 41.3 | % | 30.9 | % | 1,040 bps | |||||
| Operating (Loss) Income | ||||||||||
| Operating (Loss) Income, As Reported | $ | (115.0 | ) | $ | 80.1 | n/m | ||||
| Operating (Loss) Income Margin | -14.1 | % | 7.7 | % | n/m | |||||
| Adjustments: | ||||||||||
| Severance and Restructuring Expenses | 23.9 | 9.5 | ||||||||
| Inclined Sleeper Product Recalls | 4.3 | 0.6 | ||||||||
| Operating (Loss) Income, As Adjusted | $ | (86.7 | ) | $ | 90.1 | n/m | ||||
| Adjusted Operating (Loss) Income Margin | -10.6 | % | 8.7 | % | n/m | |||||
| 1 Amounts may not sum due to rounding. | |||||
| n/m – Not meaningful | |||||
| MATTEL, INC. AND SUBSIDIARIES | EXHIBIT III | ||||||||
| SUPPLEMENTAL FINANCIAL INFORMATION (Unaudited)1 | |||||||||
| RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL MEASURES | |||||||||
| For the Three Months Ended March 31, | |||||||||
| (In millions, except per share and percentage information) | 2023 | 2022 | Change | ||||||
| Earnings Per Share | |||||||||
| Net (Loss) Income Per Common Share, As Reported | $ | (0.30 | ) | $ | 0.06 | n/m | |||
| Adjustments: | |||||||||
| Severance and Restructuring Expenses | 0.07 | 0.03 | |||||||
| Inclined Sleeper Product Recalls | 0.01 | — | |||||||
| Tax Effect of Adjustments2 | (0.02 | ) | (0.01 | ) | |||||
| Net (Loss) Income Per Common Share, As Adjusted | $ | (0.24 | ) | $ | 0.08 | n/m | |||
| EBITDA and Adjusted EBITDA | |||||||||
| Net (Loss) Income, As Reported | $ | (106.5 | ) | $ | 21.5 | n/m | |||
| Adjustments: | |||||||||
| Interest Expense | 31.1 | 33.0 | |||||||
| (Benefit) Provision for Income Taxes | (27.0 | ) | 23.9 | ||||||
| Depreciation | 33.7 | 35.9 | |||||||
| Amortization | 9.5 | 9.3 | |||||||
| EBITDA | (59.1 | ) | 123.6 | ||||||
| Adjustments: | |||||||||
| Share-Based Compensation | 16.9 | 19.3 | |||||||
| Severance and Restructuring Expenses | 23.9 | 8.4 | |||||||
| Inclined Sleeper Product Recalls | 4.3 | 0.6 | |||||||
| Adjusted EBITDA | $ | (13.9 | ) | $ | 152.0 | n/m | |||
| Free Cash Flow | |||||||||
| Net Cash Flows Used for Operating Activities | $ | (206.4 | ) | $ | (143.8 | ) | |||
| Capital Expenditures | (43.0 | ) | (36.0 | ) | |||||
| Free Cash Flow | $ | (249.4 | ) | $ | (179.8 | ) | |||
| 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 | |||||
| MATTEL, INC. AND SUBSIDIARIES | EXHIBIT III | ||||||||
| SUPPLEMENTAL FINANCIAL INFORMATION (Unaudited)1 | |||||||||
| RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL MEASURES | |||||||||
| For the Three Months Ended March 31, | |||||||||
| (In millions, except percentage and pts information) | 2023 | 2022 | Change | ||||||
| Tax Rate | |||||||||
| (Loss) Income Before Income Taxes, As Reported | $ | (138.2 | ) | $ | 39.1 | ||||
| Adjustments: | |||||||||
| Severance and Restructuring Expenses | 23.9 | 9.5 | |||||||
| Inclined Sleeper Product Recalls | 4.3 | 0.6 | |||||||
| (Loss) Income Before Income Taxes, As Adjusted | $ | (109.9 | ) | $ | 49.2 | ||||
| (Benefit) Provision for Income Taxes, As Reported | $ | (27.0 | ) | $ | 23.9 | ||||
| Adjustments: | |||||||||
| Tax Effect of Adjustments2 | 6.6 | 2.6 | |||||||
| (Benefit) Provision for Income Taxes, As Adjusted | $ | (20.4 | ) | $ | 26.5 | ||||
| Tax Rate, As Reported | 20 | % | 61 | % | -41 pts | ||||
| Tax Rate, As Adjusted | 19 | % | 54 | % | -35 pts | ||||
| March 31, | |||||||||
| 2023 | 2022 | ||||||||
| Net Debt | |||||||||
| Long-Term Debt | $ | 2,326.7 | $ | 2,322.1 | |||||
| Current Portion of Long-Term Debt | — | 250.0 | |||||||
| Adjustments | |||||||||
| Cash and Equivalents | (461.7 | ) | (536.6 | ) | |||||
| Net Debt | $ | 1,865.0 | $ | 2,035.5 | |||||
| 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. | |||||
| MATTEL, INC. AND SUBSIDIARIES | EXHIBIT III | ||||||||
| SUPPLEMENTAL FINANCIAL INFORMATION (Unaudited)1 | |||||||||
| RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL MEASURES | |||||||||
| For the Trailing Twelve Months Ended March 31, | |||||||||
| (In millions, except percentage and pts information) | 2023 | 2022 | Change | ||||||
| Leverage Ratio (Total Debt/Adjusted EBITDA) | |||||||||
| Total Debt | |||||||||
| Long-Term Debt | $ | 2,326.7 | $ | 2,322.1 | |||||
| Current Portion of Long-Term Debt | — | 250.0 | |||||||
| Adjustments: | |||||||||
| Debt Issuance Costs and Debt Discount | 23.3 | 27.9 | |||||||
| Total Debt | $ | 2,350.0 | $ | 2,600.0 | |||||
| EBITDA and Adjusted EBITDA | |||||||||
| Net Income, As Reported | $ | 266.0 | $ | 1,036.8 | -74% | ||||
| Adjustments: | |||||||||
| Interest Expense | 130.9 | 156.5 | |||||||
| Provision (Benefit) for Income Taxes | 84.9 | (416.8 | ) | ||||||
| Depreciation | 142.4 | 145.6 | |||||||
| Amortization | 38.0 | 37.8 | |||||||
| EBITDA | 662.3 | 960.0 | |||||||
| Adjustments: | |||||||||
| Share-Based Compensation | 66.7 | 64.3 | |||||||
| Severance and Restructuring Expenses | 48.2 | 32.1 | |||||||
| Inclined Sleeper Product Recalls | 3.5 | 10.4 | |||||||
| Sale of Assets/Business | (23.5 | ) | — | ||||||
| Loss on Liquidation of Argentina Subsidiary | 45.4 | — | |||||||
| Adjusted EBITDA | $ | 802.5 | $ | 1,066.8 | -25% | ||||
| Total Debt / Net Income | 8.8x | 2.5x | |||||||
| Leverage Ratio (Total Debt / Adjusted EBITDA) | 2.9x | 2.4x | |||||||
| Free Cash Flow | |||||||||
| Net Cash Flows Provided by Operating Activities | $ | 380.3 | $ | 377.4 | 1% | ||||
| Capital Expenditures | (193.5 | ) | (151.6 | ) | |||||
| Free Cash Flow | $ | 186.8 | $ | 225.8 | -17% | ||||
| Net Cash Flows Provided by Operating Activities / Net Income | 143 | % | 36 | % | 107 pts | ||||
| Free Cash Flow Conversion (Free Cash Flow/Adjusted EBITDA) | 23 | % | 21 | % | 2 pts | ||||
| 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 Year Ended December 31, | |||||||
| (In millions, except percentage and per share information) | 2022 | ||||||
| Gross Profit | |||||||
| Gross Profit, As Reported | $ | 2,481.4 | |||||
| Gross Margin | 45.7 | % | |||||
| Adjustments: | |||||||
| Severance and Restructuring Expenses | 10.7 | ||||||
| Gross Profit, As Adjusted | $ | 2,492.0 | |||||
| Adjusted Gross Margin | 45.9 | % | |||||
| Earnings Per Share | |||||||
| Net Income Per Common Share, As Reported | $ | 1.10 | |||||
| Adjustments: | |||||||
| Severance and Restructuring Expenses | 0.10 | ||||||
| Sale of Assets/Business2 | (0.07 | ) | |||||
| Loss on Liquidation of Argentina Subsidiary3 | 0.13 | ||||||
| Net Income Per Common Share, As Adjusted | $ | 1.25 | |||||
| EBITDA and Adjusted EBITDA | |||||||
| Net Income, As Reported | $ | 393.9 | |||||
| Adjustments: | |||||||
| Interest Expense | 132.8 | ||||||
| Provision for Income Taxes | 135.9 | ||||||
| Depreciation | 144.6 | ||||||
| Amortization | 37.9 | ||||||
| EBITDA | $ | 845.0 | |||||
| Adjustments: | |||||||
| Share-Based Compensation | 69.1 | ||||||
| Severance and Restructuring Expenses | 32.7 | ||||||
| Inclined Sleeper Product Recalls | (0.3 | ) | |||||
| Sale of Assets/Business2 | (23.5 | ) | |||||
| Loss on Liquidation of Argentina Subsidiary3 | 45.4 | ||||||
| Adjusted EBITDA | $ | 968.4 | |||||
| 1 Amounts may not sum due to rounding. | |||||
| 2 For the year ended December 31, 2022, Mattel recorded a gain on sale of assets of $23.5 million in other selling and administrative expenses. | |||||
| 3 During the year ended December 31, 2022, the liquidation of Mattel’s subsidiary in Argentina was substantially completed, and Mattel recognized its cumulative translation adjustments of $45.4 million as a loss in other non-operating expense, net. | |||||
| 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 information) | 2022 | ||||||
| Tax Rate | |||||||
| Income Before Income Taxes, As Reported | $ | 504.3 | |||||
| Adjustments: | |||||||
| Severance and Restructuring Expenses | 36.8 | ||||||
| Inclined Sleeper Product Recalls | (0.3 | ) | |||||
| Sale of Assets/Business2 | (23.5 | ) | |||||
| Loss on Liquidation of Argentina Subsidiary3 | 45.4 | ||||||
| Income Before Income Taxes, As Adjusted | $ | 562.8 | |||||
| Provision for Income Taxes, As Reported | $ | 135.9 | |||||
| Adjustments: | |||||||
| Tax Effect of Adjustments4 | 1.3 | ||||||
| Provision for Income Taxes, As Adjusted | $ | 137.2 | |||||
| Tax Rate, As Reported | 27 | % | |||||
| Tax Rate, As Adjusted | 24 | % | |||||
| 1 Amounts may not sum due to rounding. | |||||
| 2 For the year ended December 31, 2022, Mattel recorded a gain on sale of assets of $23.5 million in other selling and administrative expenses. | |||||
| 3 During the year ended December 31, 2022, the liquidation of Mattel’s subsidiary in Argentina was substantially completed, and Mattel recognized its cumulative translation adjustments of $45.4 million as a loss in other non-operating expense, net. | |||||
| 4 Tax effect of adjustments was determined using the effective tax rates on a jurisdictional basis of the respective adjustments. | |||||
| MATTEL, INC. AND SUBSIDIARIES | EXHIBIT IV | |||||||||||||
| WORLDWIDE NET SALES AND GROSS BILLINGS1 (Unaudited)2 | ||||||||||||||
| For the Three Months Ended March 31, | ||||||||||||||
| 2023 | 2022 | % Change as Reported |
% Change in Constant Currency |
|||||||||||
| (In millions, except percentage information) | ||||||||||||||
| Worldwide Net Sales: | ||||||||||||||
| Net Sales | $ | 814.6 | $ | 1,041.3 | -22 | % | -21 | % | ||||||
| Worldwide Gross Billings by Categories: | ||||||||||||||
| Dolls | $ | 306.1 | $ | 396.1 | -23 | % | -22 | % | ||||||
| Infant, Toddler, and Preschool | 150.2 | 205.5 | -27 | -26 | ||||||||||
| Vehicles | 283.6 | 282.1 | 1 | 1 | ||||||||||
| Action Figures, Building Sets, Games, and Other | 171.5 | 280.7 | -39 | -38 | ||||||||||
| Gross Billings | $ | 911.3 | $ | 1,164.4 | -22 | % | -21 | % | ||||||
| Supplemental Gross Billings Disclosure | ||||||||||||||
| Worldwide Gross Billings by Top 3 Power Brands: | ||||||||||||||
| Barbie | $ | 176.9 | $ | 298.0 | -41 | % | -40 | % | ||||||
| Hot Wheels | 244.9 | 241.4 | 1 | 2 | ||||||||||
| Fisher-Price | 125.7 | 171.3 | -27 | -26 | ||||||||||
| Other | 363.9 | 453.8 | -20 | -19 | ||||||||||
| Gross Billings | $ | 911.3 | $ | 1,164.4 | -22 | % | -21 | % | ||||||
| 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. | ||||||||
| MATTEL, INC. AND SUBSIDIARIES | EXHIBIT V | |||||||||||||
| NET SALES AND GROSS BILLINGS1 BY SEGMENT (Unaudited)2 | ||||||||||||||
| For the Three Months Ended March 31, | ||||||||||||||
| 2023 | 2022 | % Change as Reported |
% Change in Constant Currency |
|||||||||||
| (In millions, except percentage information) | ||||||||||||||
| North America Net Sales: | ||||||||||||||
| Net Sales | $ | 437.0 | $ | 602.1 | -27 | % | -27 | % | ||||||
| North America Gross Billings by Categories: | ||||||||||||||
| Dolls | $ | 132.9 | $ | 182.2 | -27 | % | -27 | % | ||||||
| Infant, Toddler, and Preschool | 87.2 | 131.5 | -34 | -34 | ||||||||||
| Vehicles | 142.2 | 146.8 | -3 | -3 | ||||||||||
| Action Figures, Building Sets, Games, and Other | 106.3 | 181.3 | -41 | -41 | ||||||||||
| Gross Billings | $ | 468.5 | $ | 641.8 | -27 | % | -27 | % | ||||||
| Supplemental Gross Billings Disclosure | ||||||||||||||
| North America Gross Billings by Top 3 Power Brands: | ||||||||||||||
| Barbie | $ | 89.5 | $ | 164.0 | -45 | % | -45 | % | ||||||
| Hot Wheels | 119.7 | 121.7 | -2 | -1 | ||||||||||
| Fisher-Price | 75.4 | 112.5 | -33 | -33 | ||||||||||
| Other | 184.0 | 243.6 | -24 | -24 | ||||||||||
| Gross Billings | $ | 468.5 | $ | 641.8 | -27 | % | -27 | % | ||||||
| 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. | ||||||||
| MATTEL, INC. AND SUBSIDIARIES | EXHIBIT VI | |||||||||||||
| NET SALES AND GROSS BILLINGS1 BY SEGMENT (Unaudited)2 | ||||||||||||||
| For the Three Months Ended March 31, | ||||||||||||||
| 2023 | 2022 | % Change as Reported |
% Change in Constant Currency |
|||||||||||
| (In millions, except percentage information) | ||||||||||||||
| International Net Sales by Geographic Area: | ||||||||||||||
| EMEA | $ | 209.4 | $ | 277.7 | -25 | % | -22 | % | ||||||
| Latin America | 75.5 | 72.0 | 5 | 1 | ||||||||||
| Asia Pacific | 59.2 | 54.1 | 9 | 16 | ||||||||||
| Net Sales | $ | 344.1 | $ | 403.8 | -15 | % | -13 | % | ||||||
| International Gross Billings by Geographic Area: | ||||||||||||||
| EMEA | $ | 251.9 | $ | 340.4 | -26 | % | -24 | % | ||||||
| Latin America | 87.7 | 83.2 | 5 | 1 | ||||||||||
| Asia Pacific | 69.0 | 62.7 | 10 | 17 | ||||||||||
| Gross Billings | $ | 408.6 | $ | 486.3 | -16 | % | -14 | % | ||||||
| International Gross Billings by Categories: | ||||||||||||||
| Dolls | $ | 138.9 | $ | 177.6 | -22 | % | -20 | % | ||||||
| Infant, Toddler, and Preschool | 63.0 | 74.0 | -15 | -12 | ||||||||||
| Vehicles | 141.5 | 135.3 | 5 | 6 | ||||||||||
| Action Figures, Building Sets, Games, and Other | 65.2 | 99.4 | -34 | -33 | ||||||||||
| Gross Billings | $ | 408.6 | $ | 486.3 | -16 | % | -14 | % | ||||||
| Supplemental Gross Billings Disclosure | ||||||||||||||
| International Gross Billings by Top 3 Power Brands: | ||||||||||||||
| Barbie | $ | 87.3 | $ | 134.0 | -35 | % | -32 | % | ||||||
| Hot Wheels | 125.2 | 119.7 | 5 | 6 | ||||||||||
| Fisher-Price | 50.3 | 58.7 | -14 | -12 | ||||||||||
| Other | 145.7 | 173.9 | -16 | -15 | ||||||||||
| Gross Billings | $ | 408.6 | $ | 486.3 | -16 | % | -14 | % | ||||||
| 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. | ||||||||
| MATTEL, INC. AND SUBSIDIARIES | EXHIBIT VII | |||||||||||||
| NET SALES AND GROSS BILLINGS1 BY SEGMENT (Unaudited)2 | ||||||||||||||
| For the Three Months Ended March 31, | ||||||||||||||
| 2023 | 2022 | % Change as Reported |
% Change in Constant Currency |
|||||||||||
| (In millions, except percentage information) | ||||||||||||||
| American Girl Net Sales: | ||||||||||||||
| Net Sales | $ | 33.5 | $ | 35.3 | -5 | % | -5 | % | ||||||
| American Girl Gross Billings: | ||||||||||||||
| Gross Billings | $ | 34.2 | $ | 36.3 | -6 | % | -6 | % | ||||||
| 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. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20230426005065/en/
News Media
Catherine Frymark
catherine.frymark@mattel.com
Securities Analysts
David Zbojniewicz
david.zbojniewicz@mattel.com
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