Mattel Reports First Quarter 2024 Financial Results
First Quarter 2024 Highlights Versus Prior Year
- Net Sales of $810 million, down 1% as reported and in constant currency
- Gross Margin of 48.0%, an increase of 800 basis points; Adjusted Gross Margin of 48.3%, an increase of 830 basis points
- Operating Loss of $36 million, an improvement of $80 million; Adjusted Operating Loss of $23 million, an improvement of $63 million
- Net Loss of $28 million, an improvement of $78 million
- Loss per Share of $0.08 compared to a Loss of $0.30 per share; Adjusted Loss per Share of $0.05 compared to an Adjusted Loss of $0.24 per share
- Adjusted EBITDA of $54 million, an improvement of $67 million
- Repurchased $100 million of shares
- Company reiterates 2024 guidance
El Segundo, CA – Mattel reported first quarter 2024 financial results.
Ynon Kreiz, Chairman and CEO of Mattel, said: “We are off to a good start to the year with significant gross margin expansion, positive Adjusted EBITDA, and very strong improvement in free cash flow. Trends in consumer demand for our product improved through the quarter and we expect to outpace the industry and gain market share in 2024. We are executing our strategy to grow our IP-driven toy business and expand our entertainment offering.”
Anthony DiSilvestro, CFO of Mattel, added: “We achieved strong bottom-line results, primarily driven by margin expansion, repurchased $100 million of shares in the quarter, and are on track to meet our full year guidance. We expect to continue to benefit from the Optimizing for Profitable Growth program, which is targeting $60 million in cost savings in 2024 and a total of $200 million in cost savings by 2026.”
Financial Overview
For the first quarter, Net Sales were down 1% as reported and in constant currency, versus the prior year’s first quarter. Reported Operating Loss was $36 million, an improvement of $80 million, and Adjusted Operating Loss was $23 million, an improvement of $63 million. Reported Loss Per Share was $0.08, an improvement of $0.22 per share, and Adjusted Loss Per Share was $0.05, an improvement of $0.19 per share.
Net Sales in the North America segment increased 2% as reported and in constant currency.
Gross Billings in the North America segment increased 1% as reported and in constant currency, driven by 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) and Dolls (primarily Disney Princess and Disney Frozen).
Net Sales in the International segment decreased 4% as reported or 5% in constant currency.
Gross Billings in the International segment decreased 4% as reported, or 6% in constant currency, due to declines in Dolls (primarily Disney Princess and Disney Frozen), Infant, Toddler, and Preschool (primarily Fisher-Price and Preschool Entertainment), and Action Figures, Building Sets, Games, and Other (primarily Action Figures), partly offset by growth in Vehicles (primarily Hot Wheels).
Reported Gross Margin increased to 48.0%, versus 40.0% in the prior year’s first quarter, and Adjusted Gross Margin increased to 48.3%, versus 40.0%. The increase in Gross Margin was primarily driven by lower inventory management costs, cost deflation, savings from the Optimizing for Profitable Growth program, favorable mix, and foreign exchange and lower other supply chain costs.
Reported Other Selling and Administrative Expenses decreased $12 million, to $353 million, primarily driven by lower severance costs and the benefit from cost savings actions, partly offset by market-related pay increases. Adjusted Other Selling and Administrative Expenses increased $6 million, to $343 million, primarily due to market-related pay increases and investments, partly offset by cost savings.
For the three months ended March 31, 2024, Cash Flows Provided by Operating Activities were $35 million, an improvement of $242 million, versus a use of $206 million in the prior year’s first quarter, primarily driven by working capital improvements and favorable changes in net earnings. Cash Flows Used for Investing Activities were $28 million, an improvement of $14 million, primarily driven by lower capital expenditures. Cash Flows Used for Financing Activities and Other were $138 million, an increase of $88 million, primarily due to higher share repurchases in the first quarter of 2024.
Gross Billings by Categories
For the first quarter, Worldwide Gross Billings for Dolls were $295 million, down 4% as reported, or 5% in constant currency, versus the prior year’s first quarter. The decline in Gross Billings was primarily due to Disney Princess and Disney Frozen and Polly Pocket, partly offset by growth in Trolls and Monster High.
Worldwide Gross Billings for Infant, Toddler, and Preschool were $135 million, down 10% as reported, or 11% in constant currency. The decline in Gross Billings was primarily due to declines in Baby Gear and Preschool Entertainment.
Worldwide Gross Billings for Vehicles were $298 million, up 5% as reported, or 4% in constant currency, primarily driven by growth in Hot Wheels.
Worldwide Gross Billings for Action Figures, Building Sets, Games, and Other were $172 million, flat as reported and in constant currency, primarily due to growth in Games offset by declines in Other.
2024 Guidance
Mattel’s full year 2024 guidance remains:
| (in millions,
except EPS and percentages) |
FY2024 Guidance | FY2023 | ||
| Net Sales | Comparable
(Constant Currency) |
$5,441 |
||
| Adjusted Gross Margin | 48.5 – 49% |
47.5% |
||
| Adjusted EPS | $1.35 – $1.45 |
$1.23 |
||
| Adjusted EBITDA | $975 – $1,025 |
$948 |
||
| Adjusted Tax Rate |
23 – 24% |
23% |
||
| Capital Expenditures | $175 – $200 |
$160 |
||
| Free Cash Flow | ~ $500 |
$709 |
| 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) |
2024 |
2023 |
% Change
as Reported |
% Change
in Constant Currency |
|||||||||||||||
| $ Amt | % Net
Sales |
$ Amt | % Net
Sales |
||||||||||||||||
| Net Sales |
$ |
809.5 |
|
$ |
814.6 |
|
-1 |
% |
-1 |
% |
|||||||||
| Cost of Sales |
|
420.6 |
|
52.0 |
% |
|
488.8 |
|
60.0 |
% |
-14 |
% |
|||||||
| Gross Profit |
|
388.9 |
|
48.0 |
% |
|
325.8 |
|
40.0 |
% |
19 |
% |
17 |
% |
|||||
| Advertising and Promotion Expenses |
|
71.4 |
|
8.8 |
% |
|
76.0 |
|
9.3 |
% |
-6 |
% |
|||||||
| Other Selling and Administrative Expenses |
|
352.9 |
|
43.6 |
% |
|
364.8 |
|
44.8 |
% |
-3 |
% |
|||||||
| Operating Loss |
|
(35.5 |
) |
-4.4 |
% |
|
(115.0 |
) |
-14.1 |
% |
-69 |
% |
-60 |
% |
|||||
| Interest Expense |
|
30.1 |
|
3.7 |
% |
|
31.1 |
|
3.8 |
% |
-3 |
% |
|||||||
| Interest (Income) |
|
(17.3 |
) |
-2.1 |
% |
|
(6.5 |
) |
-0.8 |
% |
165 |
% |
|||||||
| Other Non-Operating Expense (Income), Net |
|
5.6 |
|
|
(1.4 |
) |
|||||||||||||
| Loss Before Income Taxes |
|
(53.9 |
) |
-6.7 |
% |
|
(138.2 |
) |
-17.0 |
% |
-61 |
% |
-54 |
% |
|||||
| Benefit from Income Taxes |
|
(20.8 |
) |
|
(27.0 |
) |
|||||||||||||
| (Income) from Equity Method Investments |
|
(4.8 |
) |
|
(4.7 |
) |
|||||||||||||
| Net Loss |
$ |
(28.3 |
) |
-3.5 |
% |
$ |
(106.5 |
) |
-13.1 |
% |
-73 |
% |
|||||||
| Net Loss Per Common Share – Basic |
$ |
(0.08 |
) |
$ |
(0.30 |
) |
|||||||||||||
| Weighted-Average Number of Common Shares |
|
346.9 |
|
|
354.9 |
|
|||||||||||||
| Net Loss Per Common Share – Diluted |
$ |
(0.08 |
) |
$ |
(0.30 |
) |
|||||||||||||
| Weighted-Average Number of Common and Potential Common Shares |
|
346.9 |
|
|
354.9 |
|
|||||||||||||
| 1 Amounts may not sum due to rounding. | |||||||||||||||||||
| MATTEL, INC. AND SUBSIDIARIES | EXHIBIT II | |||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS1 | ||||||||
| March 31, | December 31, | |||||||
|
|
2024 |
|
2023 |
|
2023 |
|||
| (In millions) | (Unaudited) | |||||||
| Assets | ||||||||
| Cash and Equivalents |
$ |
1,130.2 |
$ |
461.7 |
$ |
1,261.4 |
||
| Accounts Receivable, Net |
|
673.3 |
|
673.8 |
|
1,081.8 |
||
| Inventories |
|
669.3 |
|
961.0 |
|
571.6 |
||
| Prepaid Expenses and Other Current Assets |
|
262.7 |
|
269.7 |
|
207.5 |
||
| Total Current Assets |
|
2,735.5 |
|
2,366.3 |
|
3,122.3 |
||
| Property, Plant, and Equipment, Net |
|
452.2 |
|
471.2 |
|
465.5 |
||
| Right-of-Use Assets, Net |
|
308.5 |
|
304.5 |
|
313.2 |
||
| Goodwill |
|
1,383.8 |
|
1,381.0 |
|
1,384.5 |
||
| Other Noncurrent Assets |
|
1,185.4 |
|
1,308.7 |
|
1,150.2 |
||
| Total Assets |
$ |
6,065.4 |
$ |
5,831.7 |
$ |
6,435.8 |
||
| Liabilities and Stockholders’ Equity | ||||||||
| Accounts Payable and Accrued Liabilities |
$ |
1,084.2 |
$ |
955.5 |
$ |
1,308.6 |
||
| Income Taxes Payable |
|
14.9 |
|
13.5 |
|
33.9 |
||
| Total Current Liabilities |
|
1,099.1 |
|
969.0 |
|
1,342.5 |
||
| Long-Term Debt |
|
2,331.1 |
|
2,326.7 |
|
2,330.0 |
||
| Noncurrent Lease Liabilities |
|
256.2 |
|
257.4 |
|
259.5 |
||
| Other Noncurrent Liabilities |
|
353.7 |
|
341.0 |
|
354.6 |
||
| Stockholders’ Equity |
|
2,025.3 |
|
1,937.7 |
|
2,149.2 |
||
| Total Liabilities and Stockholders’ Equity |
$ |
6,065.4 |
$ |
5,831.7 |
$ |
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 | |||||||||
| March 31, | |||||||||
|
|
2024 |
|
|
2023 |
|
||||
| Key Balance Sheet Data: | |||||||||
| Accounts Receivable, Net Days of Sales Outstanding (DSO) |
|
75 |
|
|
74 |
|
|||
| For the Three Months Ended March 31, | |||||||||
| (In millions) |
|
2024 |
|
|
2023 |
|
|||
| Condensed Cash Flow Data: | |||||||||
| Cash Flows Provided by (Used for) Operating Activities |
$ |
35 |
|
$ |
(206 |
) |
|||
| Cash Flows (Used for) Investing Activities |
|
(28 |
) |
|
(43 |
) |
|||
| Cash Flows (Used for) Financing Activities and Other |
|
(138 |
) |
|
(51 |
) |
|||
| Decrease in Cash and Equivalents |
$ |
(131 |
) |
$ |
(300 |
) |
|||
| 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, | ||||||||||
| (In millions, except percentage information) |
|
2024 |
|
|
2023 |
|
Change | |||
| Gross Profit | ||||||||||
| Gross Profit, As Reported |
$ |
388.9 |
|
$ |
325.8 |
|
||||
| Gross Margin |
|
48.0 |
% |
|
40.0 |
% |
800 bps | |||
| Adjustments: | ||||||||||
| Severance and Restructuring Expenses |
|
2.2 |
|
|
— |
|
||||
| Gross Profit, As Adjusted |
$ |
391.1 |
|
$ |
325.8 |
|
||||
| Adjusted Gross Margin |
|
48.3 |
% |
|
40.0 |
% |
830 bps | |||
| Other Selling and Administrative Expenses | ||||||||||
| Other Selling and Administrative Expenses, As Reported |
$ |
352.9 |
|
$ |
364.8 |
|
-3 |
% |
||
| % of Net Sales |
|
43.6 |
% |
|
44.8 |
% |
-120 bps | |||
| Adjustments: | ||||||||||
| Severance and Restructuring Expenses |
|
(6.3 |
) |
|
(23.9 |
) |
||||
| Inclined Sleeper Product Recalls |
|
(3.7 |
) |
|
(4.3 |
) |
||||
| Other Selling and Administrative Expenses, As Adjusted |
$ |
342.9 |
|
$ |
336.5 |
|
2 |
% |
||
| % of Net Sales |
|
42.4 |
% |
|
41.3 |
% |
110 bps | |||
| Operating Loss | ||||||||||
| Operating Loss, As Reported |
$ |
(35.5 |
) |
$ |
(115.0 |
) |
-69 |
% |
||
| Operating Loss Margin |
|
-4.4 |
% |
|
-14.1 |
% |
970 bps | |||
| Adjustments: | ||||||||||
| Severance and Restructuring Expenses |
|
8.5 |
|
|
23.9 |
|
||||
| Inclined Sleeper Product Recalls |
|
3.7 |
|
|
4.3 |
|
||||
| Operating Loss, As Adjusted |
$ |
(23.3 |
) |
$ |
(86.7 |
) |
-73 |
% |
||
| Adjusted Operating Loss Margin |
|
-2.9 |
% |
|
-10.6 |
% |
770 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 March 31, | ||||||||||
| (In millions, except per share and percentage information) |
|
2024 |
|
|
2023 |
|
Change | |||
| Earnings Per Share | ||||||||||
| Net Loss Per Common Share, As Reported |
$ |
(0.08 |
) |
$ |
(0.30 |
) |
-73 |
% |
||
| Adjustments: | ||||||||||
| Severance and Restructuring Expenses |
|
0.02 |
|
|
0.07 |
|
||||
| Inclined Sleeper Product Recalls |
|
0.01 |
|
|
0.01 |
|
||||
| Tax Effect of Adjustments2 |
|
(0.01 |
) |
|
(0.02 |
) |
||||
| Net Loss Per Common Share, As Adjusted |
$ |
(0.05 |
) |
$ |
(0.24 |
) |
-79 |
% |
||
| EBITDA and Adjusted EBITDA | ||||||||||
| Net Loss, As Reported |
$ |
(28.3 |
) |
$ |
(106.5 |
) |
-73 |
% |
||
| Adjustments: | ||||||||||
| Interest Expense |
|
30.1 |
|
|
31.1 |
|
||||
| Benefit from Income Taxes |
|
(20.8 |
) |
|
(27.0 |
) |
||||
| Depreciation |
|
34.5 |
|
|
33.7 |
|
||||
| Amortization |
|
7.8 |
|
|
9.5 |
|
||||
| EBITDA |
|
23.3 |
|
|
(59.1 |
) |
||||
| Adjustments: | ||||||||||
| Share-Based Compensation |
|
17.9 |
|
|
16.9 |
|
||||
| Severance and Restructuring Expenses |
|
8.5 |
|
|
23.9 |
|
||||
| Inclined Sleeper Product Recalls |
|
3.7 |
|
|
4.3 |
|
||||
| Adjusted EBITDA |
$ |
53.5 |
|
$ |
(13.9 |
) |
n/m |
|
||
| Free Cash Flow | ||||||||||
| Net Cash Flows Provided by (Used for) Operating Activities |
$ |
35.5 |
|
$ |
(206.4 |
) |
||||
| Capital Expenditures |
|
(30.5 |
) |
|
(43.0 |
) |
||||
| Free Cash Flow |
$ |
5.0 |
|
$ |
(249.4 |
) |
||||
| 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) |
|
2024 |
|
|
2023 |
|
Change | ||
| Tax Rate | |||||||||
| Loss Before Income Taxes, As Reported |
$ |
(53.9 |
) |
$ |
(138.2 |
) |
|||
| Adjustments: | |||||||||
| Severance and Restructuring Expenses |
|
8.5 |
|
|
23.9 |
|
|||
| Inclined Sleeper Product Recalls |
|
3.7 |
|
|
4.3 |
|
|||
| Loss Before Income Taxes, As Adjusted |
$ |
(41.7 |
) |
$ |
(109.9 |
) |
|||
| Benefit from Income Taxes, As Reported |
$ |
(20.8 |
) |
$ |
(27.0 |
) |
|||
| Adjustments: | |||||||||
| Tax Effect of Adjustments2 |
|
2.8 |
|
|
6.6 |
|
|||
| Benefit from Income Taxes, As Adjusted |
$ |
(18.0 |
) |
$ |
(20.4 |
) |
|||
| Tax Rate, As Reported |
|
39 |
% |
|
20 |
% |
19 pts | ||
| Tax Rate, As Adjusted |
|
43 |
% |
|
19 |
% |
24 pts | ||
| March 31, | |||||||||
|
|
2024 |
|
|
2023 |
|
||||
| Net Debt | |||||||||
| Long-Term Debt |
$ |
2,331.1 |
|
$ |
2,326.7 |
|
|||
| Adjustments: | |||||||||
| Cash and Equivalents |
|
(1,130.2 |
) |
|
(461.7 |
) |
|||
| Net Debt |
$ |
1,200.9 |
|
$ |
1,865.0 |
|
|||
| 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) |
|
2024 |
|
|
2023 |
|
Change | |||
| Leverage Ratio (Total Debt/Adjusted EBITDA) | ||||||||||
| Total Debt | ||||||||||
| Long-Term Debt |
$ |
2,331.1 |
|
$ |
2,326.7 |
|
||||
| Adjustments: | ||||||||||
| Debt Issuance Costs and Debt Discount |
|
18.9 |
|
|
23.3 |
|
||||
| Total Debt |
$ |
2,350.0 |
|
$ |
2,350.0 |
|
||||
| EBITDA and Adjusted EBITDA | ||||||||||
| Net Income, As Reported |
$ |
292.5 |
|
$ |
266.0 |
|
10 |
% |
||
| Adjustments: | ||||||||||
| Interest Expense |
|
122.7 |
|
|
130.9 |
|
||||
| Provision for Income Taxes |
|
275.7 |
|
|
84.9 |
|
||||
| Depreciation |
|
140.2 |
|
|
142.4 |
|
||||
| Amortization |
|
36.3 |
|
|
38.0 |
|
||||
| EBITDA |
|
867.4 |
|
|
662.3 |
|
||||
| Adjustments: | ||||||||||
| Share-Based Compensation |
|
84.3 |
|
|
66.7 |
|
||||
| Severance and Restructuring Expenses |
|
44.3 |
|
|
48.2 |
|
||||
| Inclined Sleeper Product Recalls |
|
17.4 |
|
|
3.5 |
|
||||
| Sale of Assets |
|
1.8 |
|
|
(23.5 |
) |
||||
| Loss on Liquidation of Argentina Subsidiary |
|
— |
|
|
45.4 |
|
||||
| Adjusted EBITDA |
$ |
1,015.2 |
|
$ |
802.5 |
|
27 |
% |
||
| Total Debt / Net Income | 8.0x | 8.8x | ||||||||
| Leverage Ratio (Total Debt / Adjusted EBITDA) | 2.3x | 2.9x | ||||||||
| Free Cash Flow | ||||||||||
| Net Cash Flows Provided by Operating Activities |
$ |
1,111.7 |
|
$ |
380.3 |
|
192 |
% |
||
| Capital Expenditures |
|
(147.8 |
) |
|
(193.5 |
) |
||||
| Free Cash Flow |
$ |
963.9 |
|
$ |
186.8 |
|
416 |
% |
||
| Net Cash Flows Provided by Operating Activities / Net Income |
|
380 |
% |
|
143 |
% |
237 pts | |||
| Free Cash Flow Conversion (Free Cash Flow/Adjusted EBITDA) |
|
95 |
% |
|
23 |
% |
72 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) |
|
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 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 Assets4 |
|
1.8 |
|
||||
| Adjusted EBITDA |
$ |
947.8 |
|
||||
| 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 release 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. | |||||||
| 4 For the year ended December 31, 2023, Mattel recorded a loss on sale of assets of $1.8 million, in other selling and administrative expenses. | |||||||
| 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) |
|
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 Assets2 |
|
1.8 |
|
||||
| Income Before Income Taxes, As Adjusted |
$ |
544.9 |
|
||||
| Provision for Income Taxes, As Reported |
$ |
269.5 |
|
||||
| Adjustments: | |||||||
| Changes to Deferred Tax Assets3 |
|
(161.4 |
) |
||||
| Tax Effect of Adjustments4 |
|
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 December 31, 2023, Mattel recorded a loss on sale of assets of $1.8 million, in other selling and administrative expenses. | |||||||
| 3 For the year ended December 31, 2023, Mattel recorded an expense of $212.4 million related to the release 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. | |||||||
| 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, | ||||||||||||
|
|
2024 |
|
2023 |
% Change
as Reported |
% Change
in Constant Currency |
|||||||
| Worldwide Net Sales: | ||||||||||||
| Net Sales |
$ |
809.5 |
$ |
814.6 |
-1 |
% |
-1 |
% |
||||
| Worldwide Gross Billings by Categories: | ||||||||||||
| Dolls |
$ |
294.5 |
$ |
306.1 |
-4 |
% |
-5 |
% |
||||
| Infant, Toddler, and Preschool |
|
135.0 |
|
150.2 |
-10 |
|
-11 |
|
||||
| Vehicles |
|
297.7 |
|
283.6 |
5 |
|
4 |
|
||||
| Action Figures, Building Sets, Games, and Other |
|
171.7 |
|
171.5 |
0 |
|
0 |
|
||||
| Gross Billings |
$ |
898.9 |
$ |
911.3 |
-1 |
% |
-2 |
% |
||||
| Supplemental Gross Billings Disclosure | ||||||||||||
| Worldwide Gross Billings by Top 3 Power Brands: | ||||||||||||
| Barbie |
$ |
177.5 |
$ |
176.9 |
— |
% |
— |
% |
||||
| Hot Wheels |
|
258.1 |
|
244.9 |
5 |
|
4 |
|
||||
| Fisher-Price3 |
|
93.4 |
|
93.1 |
0 |
|
-1 |
|
||||
| Other |
|
370.0 |
|
396.5 |
-7 |
|
-7 |
|
||||
| Gross Billings |
$ |
898.9 |
$ |
911.3 |
-1 |
% |
-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. 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 March 31, | ||||||||||||
|
|
2024 |
|
2023 |
% Change
as Reported |
% Change
in Constant Currency |
|||||||
| North America Net Sales: | ||||||||||||
| Net Sales |
$ |
477.8 |
$ |
470.5 |
2 |
% |
2 |
% |
||||
| North America Gross Billings by Categories: | ||||||||||||
| Dolls |
$ |
164.7 |
$ |
167.2 |
-1 |
% |
-1 |
% |
||||
| Infant, Toddler, and Preschool |
|
80.5 |
|
87.2 |
-8 |
|
-8 |
|
||||
| Vehicles |
|
150.2 |
|
142.2 |
6 |
|
6 |
|
||||
| Action Figures, Building Sets, Games, and Other |
|
111.0 |
|
106.3 |
4 |
|
4 |
|
||||
| Gross Billings |
$ |
506.4 |
$ |
502.8 |
1 |
% |
1 |
% |
||||
| Supplemental Gross Billings Disclosure | ||||||||||||
| North America Gross Billings by Top 3 Power Brands: | ||||||||||||
| Barbie |
$ |
92.4 |
$ |
89.5 |
3 |
% |
3 |
% |
||||
| Hot Wheels |
|
126.8 |
|
119.7 |
6 |
|
6 |
|
||||
| Fisher-Price4 |
|
53.7 |
|
49.1 |
9 |
|
9 |
|
||||
| Other |
|
233.5 |
|
244.4 |
-4 |
|
-4 |
|
||||
| Gross Billings |
$ |
506.4 |
$ |
502.8 |
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 March 31, | ||||||||||||
|
|
2024 |
|
2023 |
% Change
as Reported |
% Change
in Constant Currency |
|||||||
| International Net Sales by Geographic Area: | ||||||||||||
| EMEA |
$ |
185.2 |
$ |
209.4 |
-12 |
% |
-13 |
% |
||||
| Latin America |
|
79.7 |
|
75.5 |
5 |
|
1 |
|
||||
| Asia Pacific |
|
66.8 |
|
59.2 |
13 |
|
17 |
|
||||
| Net Sales |
$ |
331.7 |
$ |
344.1 |
-4 |
% |
-5 |
% |
||||
| International Gross Billings by Geographic Area: | ||||||||||||
| EMEA |
$ |
223.5 |
$ |
251.9 |
-11 |
% |
-13 |
% |
||||
| Latin America |
|
92.6 |
|
87.7 |
6 |
|
1 |
|
||||
| Asia Pacific |
|
76.5 |
|
69.0 |
11 |
|
15 |
|
||||
| Gross Billings |
$ |
392.5 |
$ |
408.6 |
-4 |
% |
-6 |
% |
||||
| International Gross Billings by Categories: | ||||||||||||
| Dolls |
$ |
129.8 |
$ |
138.9 |
-7 |
% |
-8 |
% |
||||
| Infant, Toddler, and Preschool |
|
54.5 |
|
63.0 |
-13 |
|
-16 |
|
||||
| Vehicles |
|
147.5 |
|
141.5 |
4 |
|
2 |
|
||||
| Action Figures, Building Sets, Games, and Other |
|
60.7 |
|
65.2 |
-7 |
|
-8 |
|
||||
| Gross Billings |
$ |
392.5 |
$ |
408.6 |
-4 |
% |
-6 |
% |
||||
| Supplemental Gross Billings Disclosure | ||||||||||||
| International Gross Billings by Top 3 Power Brands: | ||||||||||||
| Barbie |
$ |
85.1 |
$ |
87.3 |
-3 |
% |
-4 |
% |
||||
| Hot Wheels |
|
131.3 |
|
125.2 |
5 |
|
3 |
|
||||
| Fisher-Price3 |
|
39.6 |
|
43.9 |
-10 |
|
-12 |
|
||||
| Other |
|
136.4 |
|
152.0 |
-10 |
|
-12 |
|
||||
| Gross Billings |
$ |
392.5 |
$ |
408.6 |
-4 |
% |
-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. | ||||||||||||
| 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. | ||||||||||||
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