Mattel Reports 2009 Financial Results
Fourth Quarter Highlights
- Worldwide net sales up 1 percent from the prior year;
- Domestic gross sales down 2 percent and international gross sales up 3 percent;
- Worldwide gross sales for core brands: Barbie® up 12 percent; Hot Wheels® up 16 percent; Core Fisher-Price® up 1 percent and American Girl® flat;
- Gross margin up 740 basis points of net sales; SG&A flat as a percentage of net sales;
- Operating income was $417.4 million compared to operating income of $232.4 million in the fourth quarter of 2008; and
- Earnings per share of $0.89 (includes tax benefit of $0.08 per share) vs. prior year of $0.49.
Full-Year Highlights- Worldwide net sales down 8 percent from the prior year;
- Domestic gross sales down 4 percent and international gross sales down 13 percent;
- Worldwide gross sales for core brands: Barbie® down 3 percent; Hot Wheels® up 5 percent; Core Fisher-Price® down 6 percent and American Girl® flat;
- Gross margin up 460 basis points of net sales; SG&A increased 120 basis points of net sales;
- Operating income was $731.2 million compared to operating income of $541.8 million for the full-year 2008; and
- Earnings per share of $1.45 (includes tax benefit of $0.08 per share) vs. prior year of $1.04.
EL SEGUNDO, Calif. -- January 29, 2010 -- Mattel, Inc. today reported 2009 fourth quarter and full-year financial results. For the quarter, the company reported net income of $328.4 million, or $0.89 per share, compared to last year's fourth quarter net income of $176.4 million, or $0.49 per share. For the year, the company reported net income of $528.7 million, or $1.45 per share, compared to last year's net income of $379.6 million, or $1.04 per share.
"In 2009, we improved execution across the company by realigning our infrastructure; controlling costs and expenses; tightly managing working capital; and reducing capital spending. The result was improved profitability, a stronger balance sheet and increased cash flow," said Robert A. Eckert, chairman and chief executive officer of Mattel. "Despite the challenging economic environment, we were pleased with the holiday performance of many of our classic and time-honored brands, including Barbie® and Hot Wheels®."
Financial Overview
For the quarter, net sales were $1.96 billion, a 1 percent increase from $1.94 billion last year, and included a favorable impact from changes in currency exchange rates of 4 percentage points. On a regional basis, fourth quarter gross sales were down 2 percent in the U.S. and were up 3 percent in international markets, which included a positive impact from changes in currency exchange rates of 8 percentage points. Operating income for the quarter was up 80 percent to $417.4 million.
For the year, net sales were $5.43 billion, an 8 percent decline from $5.92 billion last year, and included an unfavorable impact from changes in currency exchange rates of 2 percentage points. On a regional basis, full-year gross sales were down 4 percent in the U.S. and were down 13 percent in international markets, which included an unfavorable impact from changes in currency exchange rates of 4 percentage points. Operating income for the year was $731.2 million, up 35 percent compared to the prior year.
The company's debt-to-total-capital ratio of 22.9 percent is in line with the company's capital and investment framework, and its year-end cash balance was $1.12 billion.
Mattel Girls & Boys Brands
Fourth quarter worldwide gross sales for the Mattel Girls & Boys Brands business unit were $1.16 billion, up 4 percent versus a year ago. Worldwide gross sales for the Barbie® brand were up 12 percent and worldwide gross sales for Other Girls Brands were down 17 percent. Worldwide gross sales for the Wheels business, which includes the Hot Wheels®, Matchbox® and Tyco R/C® brands, were up 11 percent. Worldwide gross sales for the Entertainment business, which includes Radica® and Games and Puzzles, were up 2 percent for the quarter.
For the year, worldwide gross sales for the Mattel Girls & Boys Brands business unit were $3.29 billion, or down 10 percent. Worldwide gross sales for the Barbie® brand were down 3 percent. Worldwide gross sales for Other Girls Brands were down 20 percent for the year. Worldwide gross sales for the Wheels business were down 7 percent. Worldwide gross sales for the Entertainment business, including Radica® and Games and Puzzles, were down 14 percent.
Fisher-Price Brands
Fourth quarter worldwide gross sales for the Fisher-Price Brands business unit, which includes the Fisher-Price®, Little People®, and Power Wheels® brands, were $729.7 million, down 3 percent.
For the year, worldwide gross sales for the Fisher-Price Brands business unit were $2.17 billion, down 8 percent.
American Girl Brands
Fourth quarter gross sales for the American Girl Brands business unit, which offers American Girl® branded products direct to consumers, were $253.0 million, or flat. For the year, gross sales for the American Girl Brands business unit were $462.9 million, or flat.
About Mattel
Mattel, Inc., (NASDAQ: MAT, www.mattel.com) is the worldwide leader in the design, manufacture and marketing of toys and family products. The Mattel family is comprised of such best-selling brands as Barbie®, the most popular fashion doll ever introduced, Hot Wheels®, Matchbox®, American Girl®, Radica® and Tyco R/C®, as well as Fisher-Price® brands, including Little People®, Power Wheels® and a wide array of entertainment-inspired toy lines. In 2009, Mattel was recognized among the "100 Best Corporate Citizens" and as one of the "World's Most Ethical Companies." In 2010, for the third year in a row, Mattel was named as one of FORTUNE Magazine's "100 Best Companies to Work For." With worldwide headquarters in El Segundo, Calif., Mattel employs approximately 27,000 people in 43 countries and territories and sells products in more than 150 nations. Mattel's vision is to be the world's premier toy brands�today and tomorrow.
