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
Mattel, Inc. (NASDAQ: MAT) today reported fourth quarter and
full year 2024 financial results.
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.
Conference Call and Live Webcast
At 5:00 p.m. (Eastern Standard Time) today, Mattel will host a
conference call with investors and financial analysts to discuss
its latest financial results. The conference call will be webcast
on Mattel's Investor Relations website,
https://investors.mattel.com. To listen to the live call, log on to
the website at least 10 minutes early to register, download, and
install any necessary audio software. An archive of the webcast
will be available on Mattel's Investor Relations website for 12
months and may be accessed beginning approximately three hours
after the completion of the live call.
Cautionary Note Regarding Forward-Looking Statements
Mattel cautions the reader that this press release contains a
number of forward-looking statements, which are statements that
relate to the future and are, by their nature, uncertain.
Forward-looking statements can be identified by the fact that they
do not relate strictly to historical or current facts and include
statements regarding Mattel’s guidance and goals for future periods
and other future events. The use of words such as “anticipates,”
“expects,” “intends,” “plans,” “projects,” “looks forward,”
“confident that,” “believes,” and “targeted,” among others,
generally identify forward-looking statements. These
forward-looking statements are based on currently available
operating, financial, economic, and other information and
assumptions, and are subject to a number of significant risks and
uncertainties. A variety of factors or combination of factors, many
of which are beyond Mattel’s control, may cause actual future
results or outcomes, or the timing of those results or outcomes, to
differ materially from those contained in any forward-looking
statements. Specific factors that might cause such a difference
include, but are not limited to: (i) Mattel’s ability to design,
develop, produce, manufacture, source, ship, and distribute
products in a timely and cost-effective manner; (ii) sufficient
interest in and demand for the products and entertainment Mattel
offers by retail customers and consumers to profitably recover
Mattel’s costs; (iii) downturns in economic conditions affecting
Mattel’s markets which can negatively impact retail customers and
consumers, and which can result in lower employment levels and
lower consumer disposable income and spending, including lower
spending on purchases of Mattel’s products; (iv) other factors
which can lower discretionary consumer spending, such as higher
costs for fuel and food, drops in the value of homes or other
consumer assets, and high levels of consumer debt; (v) potential
difficulties or delays Mattel may experience in implementing cost
savings and efficiency enhancing initiatives; (vi) other economic
and public health conditions or regulatory changes in the markets
in which Mattel and its customers and suppliers operate, which
could create delays or increase Mattel’s costs, such as higher
commodity prices, labor costs, transportation costs, trade
restrictions, or outbreaks of disease; (vii) the effect of
inflation on Mattel’s business, including cost inflation in supply
chain inputs and increased labor costs, as well as pricing actions
taken in an effort to mitigate the effects of inflation; (viii)
currency fluctuations, including movements in foreign exchange
rates, which can lower Mattel’s net revenues and earnings, and
significantly impact Mattel’s costs; (ix) the concentration of
Mattel’s customers, potentially increasing the negative impact to
Mattel of difficulties experienced by any of Mattel’s customers,
such as bankruptcies or liquidations or a general lack of success,
or changes in their purchasing or selling patterns; (x) the
inventory policies of Mattel’s retail customers, as well as the
concentration of Mattel’s revenues in the second half of the year,
which coupled with reliance by retailers on quick response
inventory management techniques, increases the risk of
underproduction, overproduction, and shipping delays; (xi) legal,
reputational, and financial risks related to security breaches or
cyberattacks; (xii) work disruptions, including as a result of
supply chain disruption such as plant or port closures, which may
impact Mattel’s ability to manufacture or deliver product in a
timely and cost-effective manner; (xiii) the impact of competition
on revenues, margins, and other aspects of Mattel’s business,
including the ability to offer products that consumers choose to
buy instead of competitive products, the ability to secure,
maintain, and renew popular licenses from licensors of
entertainment properties, and the ability to attract and retain
talented employees and adapt to evolving workplace models; (xiv)
the risk of product recalls or product liability suits and costs
associated with product safety regulations; (xv) tariffs, which
depending on the effective date and duration of such tariffs,
changes in the amount, scope, and nature of the tariffs in the
future, any countermeasures that the target countries may take, and
any mitigating actions that may become available, could increase
Mattel’s product costs and other costs of doing business, and other
changes in laws or regulations in the United States and/or in other
major markets, such as China, in which Mattel operates, including,
without limitation, with respect to taxes, trade policies, product
safety, or sustainability, which may also increase Mattel’s product
costs and other costs of doing business, and in each case reduce
Mattel’s earnings and liquidity; (xvi) business disruptions or
other unforeseen impacts due to economic instability, political
instability, civil unrest, armed hostilities (including the impact
of the war in Ukraine and geopolitical developments in the Middle
East) or terrorist activities, natural and man-made disasters,
pandemics or other public health crises, or other catastrophic
events; (xvii) failure to realize the planned benefits from any
investments or acquisitions made by Mattel; (xviii) the impact of
other market conditions or third-party actions or approvals,
including those that result in any significant failure, inadequacy,
or interruption from vendors or outsourcers, which could reduce
demand for Mattel’s products, delay or increase the cost of
implementation of Mattel’s programs, or alter Mattel’s actions and
reduce actual results; (xix) changes in financing markets or the
inability of Mattel to obtain financing on attractive terms; (xx)
the impact of litigation, arbitration, or regulatory decisions or
settlement actions; (xxi) Mattel’s ability to navigate regulatory
frameworks in connection with new areas of investment, product
development, or other business activities, such as artificial
intelligence, non-fungible tokens, and cryptocurrency; (xxii) an
inability to remediate the material weakness in Mattel's internal
control over financial reporting, or additional material weaknesses
or other deficiencies in the future or the failure to maintain an
effective system of internal control; and (xxiii) other risks and
uncertainties as may be described in Mattel’s filings with the
Securities and Exchange Commission, including the “Risk Factors”
section of Mattel’s Annual Report on Form 10-K for the fiscal year
ended December 31, 2023 and subsequent periodic filings, as well as
in Mattel’s other public statements. Mattel does not update
forward-looking statements and expressly disclaims any obligation
to do so, except as required by law.
Presentation Information / Non-GAAP Financial
Measures
The financial results included herein represent the most current
information available to management and are preliminary until
Mattel’s Form 10-Q is filed with the SEC. Actual results may differ
from these preliminary results.
To supplement our financial results presented in accordance with
generally accepted accounting principles in the United States
(“GAAP”), Mattel presents certain non-GAAP financial measures
within the meaning of Regulation G promulgated by the Securities
and Exchange Commission. The non-GAAP financial measures that
Mattel uses in this earnings release include Adjusted Gross Profit,
Adjusted Gross Margin, Adjusted Other Selling and Administrative
Expenses, Adjusted Operating Income, Adjusted Operating Income
Margin, Adjusted Earnings Per Share, earnings before interest
expense, taxes, depreciation and amortization (“EBITDA”), Adjusted
EBITDA, Free Cash Flow, Free Cash Flow Conversion (Free Cash Flow /
Adjusted EBITDA), Leverage Ratio (Total Debt / Adjusted EBITDA),
Net Debt, Adjusted Tax Rate, and constant currency. Mattel uses
these measures to analyze its continuing operations and to monitor,
assess, and identify meaningful trends in its operating and
financial performance, and each is discussed below. Mattel believes
that the disclosure of non-GAAP financial measures provides useful
supplemental information to investors to be able to better evaluate
ongoing business performance and certain components of Mattel’s
results. These measures are not, and should not be viewed as,
substitutes for GAAP financial measures and may not be comparable
to similarly titled measures used by other companies.
Reconciliations of the non-GAAP financial measures to the most
directly comparable GAAP financial measures are attached to this
earnings release as exhibits and to our earnings slide presentation
as an appendix.
This earnings release and our earnings slide presentation are
available on Mattel's Investor Relations website,
https://investors.mattel.com/, under the subheading “Financial
Information – Quarterly Earnings.”
Adjusted Gross Profit and Adjusted Gross Margin
Adjusted Gross Profit and Adjusted Gross Margin represent
reported Gross Profit and reported Gross Margin, respectively,
adjusted to exclude severance and restructuring expenses. Adjusted
Gross Margin represents Mattel’s Adjusted Gross Profit, as a
percentage of Net Sales. Adjusted Gross Profit and Adjusted Gross
Margin are presented to provide additional perspective on
underlying trends in Mattel’s core Gross Profit and Gross Margin,
which Mattel believes is useful supplemental information for
investors to be able to gauge and compare Mattel’s current business
performance from one period to another.
Adjusted Other Selling and Administrative Expenses
Adjusted Other Selling and Administrative Expenses represents
Mattel’s reported Other Selling and Administrative Expenses,
adjusted to exclude severance and restructuring expenses, the
impact of the inclined sleeper product recalls, and the impact of
sale of assets, which are not part of Mattel’s core business.
Adjusted Other Selling and Administrative Expenses is presented to
provide additional perspective on underlying trends in Mattel’s
core other selling and administrative expenses, which Mattel
believes is useful supplemental information for investors to be
able to gauge and compare Mattel’s current business performance
from one period to another.
Adjusted Operating Income and Adjusted Operating Income
Margin
Adjusted Operating Income and Adjusted Operating Income Margin
represent reported Operating Income and reported Operating Income
Margin, respectively, adjusted to exclude severance and
restructuring expenses, the impact of the inclined sleeper product
recalls, and the impact of sale of assets, which are not part of
Mattel’s core business. Adjusted Operating Income Margin represents
Mattel’s Adjusted Operating Income, as a percentage of Net Sales.
Adjusted Operating Income and Adjusted Operating Income Margin are
presented to provide additional perspective on underlying trends in
Mattel’s core operating results, which Mattel believes is useful
supplemental information for investors to be able to gauge and
compare Mattel’s current business performance from one period to
another.
Adjusted Earnings Per Share
Adjusted Earnings Per Share represents Mattel’s reported Diluted
Earnings Per Common Share, adjusted to exclude severance and
restructuring expenses, the impact of the inclined sleeper product
recalls, the impact of sale of assets, the impact of changes to
certain deferred tax assets and related valuation allowances, which
are not part of Mattel’s core business. The aggregate tax effect of
the adjustments was determined using the effective tax rates on a
jurisdictional basis of the respective adjustments and dividing by
the reported weighted-average number of common shares. Adjusted
Earnings Per Share is presented to provide additional perspective
on underlying trends in Mattel’s core business. Mattel believes it
is useful supplemental information for investors to gauge and
compare Mattel’s current earnings results from one period to
another. Adjusted Earnings Per Share is a performance measure and
should not be used as a measure of liquidity.
EBITDA and Adjusted EBITDA
EBITDA represents Mattel’s Net Income, adjusted to exclude the
impact of interest expense, taxes, depreciation, and amortization.
Adjusted EBITDA represents EBITDA adjusted to exclude share-based
compensation, severance and restructuring expenses, the impact of
the inclined sleeper product recalls, and the impact of sale of
assets, which are not part of Mattel’s core business. Mattel
believes EBITDA and Adjusted EBITDA are useful supplemental
information for investors to gauge and compare Mattel’s business
performance to other companies in its industry with similar capital
structures. The presentation of Adjusted EBITDA differs from how
Mattel calculates EBITDA for purposes of covenant compliance under
the indentures governing its high yield senior notes and the
revolving credit agreement governing its revolving credit facility.
Because of these limitations, EBITDA and Adjusted EBITDA should not
be considered as measures of discretionary cash available to invest
in the growth of Mattel’s business. As a result, Mattel relies
primarily on its GAAP results and uses EBITDA and Adjusted EBITDA
only supplementally.
Free Cash Flow and Free Cash Flow Conversion
Free Cash Flow represents Mattel’s net cash flows from for
operating activities less capital expenditures. Free Cash Flow
Conversion represents Mattel’s free cash flow divided by Adjusted
EBITDA. Mattel believes Free Cash Flow and Free Cash Flow
Conversion are useful supplemental information for investors to
gauge Mattel’s liquidity and performance and to compare Mattel’s
business performance to other companies in our industry. Free Cash
Flow does not represent cash available to Mattel for discretionary
expenditures.
Leverage Ratio (Total Debt / Adjusted EBITDA)
The leverage ratio is calculated by dividing Total Debt by
Adjusted EBITDA. Total Debt represents the aggregate of Mattel’s
current portion of long-term debt, short-term borrowings, and
long-term debt, excluding the impact of debt issuance costs and
debt discount. Mattel believes the leverage ratio is useful
supplemental information for investors to gauge trends in Mattel’s
business and to compare Mattel’s business performance to other
companies in its industry.
Net Debt
Net Debt represents the aggregate of Mattel’s current portion of
long-term debt, short-term borrowings, and long-term debt, less
cash and equivalents. Mattel believes Net Debt is useful
supplemental information for investors to monitor Mattel’s
liquidity and evaluate its balance sheet.
Adjusted Tax Rate
The Adjusted Tax Rate is calculated by dividing Adjusted
Provision for Income Taxes by Adjusted Income Before Income Taxes.
Adjusted Income Before Income Taxes represents reported Income
Before Income Taxes, adjusted to exclude severance and
restructuring expenses, the impact of inclined sleeper product
recalls, and the impact of sale of assets. The Adjusted Provision
for Income Taxes represents reported Provision for Income Taxes,
adjusted to exclude the impact of changes to certain deferred tax
assets and related valuation allowances and the aggregate tax
effect of adjustments. Mattel believes the adjusted tax rate
provides useful supplemental information for investors to gauge and
compare the impact of tax expense on Mattel's earnings results from
one period to another.
Constant Currency
Percentage changes in results expressed in constant currency are
presented excluding the impact from changes in currency exchange
rates. To present this information, Mattel calculates constant
currency information by translating current period and prior period
results for entities reporting in currencies other than the US
dollar using consistent exchange rates. The constant currency
exchange rates are determined by Mattel at the beginning of each
year and are applied consistently during the year. They are
generally different from the actual exchange rates in effect during
the current or prior period due to volatility in actual foreign
exchange rates. Mattel considers whether any changes to the
constant currency rates are appropriate at the beginning of each
year. The exchange rates used for these constant currency
calculations are generally based on prior year actual exchange
rates. The difference between the current period and prior period
results using the consistent exchange rates reflects the changes in
the underlying performance results, excluding the impact from
changes in currency exchange rates. Mattel analyzes constant
currency results to provide additional perspective on changes in
underlying trends in Mattel’s operating performance. Mattel
believes that the disclosure of the percentage change in constant
currency is useful supplemental information for investors to be
able to gauge Mattel’s current business performance and the
longer-term strength of its overall business since foreign currency
changes could potentially mask underlying sales trends. The
disclosure of the percentage change in constant currency enhances
investor’s ability to compare financial results from one period to
another.
Key Performance Indicator
Gross Billings
Gross Billings represent amounts invoiced to customers. It does
not include the impact of sales adjustments, such as trade
discounts and other allowances. 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. Changes in Gross Billings are discussed because,
while Mattel records the details of sales adjustments in its
financial accounting systems at the time of sale, such sales
adjustments are generally not associated with categories, brands,
and individual products.
About Mattel
Mattel is a leading global toy and family entertainment company
and owner of one of the most iconic brand portfolios in the world.
We engage consumers and fans through our franchise brands,
including Barbie®, Hot Wheels®, Fisher-Price®, American Girl®,
Thomas & Friends™, UNO®, Masters of the Universe®, Matchbox®,
Monster High®, MEGA® and Polly Pocket®, as well as other popular
properties that we own or license in partnership with global
entertainment companies. Our offerings include toys, content,
consumer products, digital and live experiences. Our products are
sold in collaboration with the world’s leading retail and ecommerce
companies. Since its founding in 1945, Mattel is proud to be a
trusted partner in empowering generations to explore the wonder of
childhood and reach their full potential. Visit us at
mattel.com.
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 as Reported
% Change in Constant
Currency
2024
2023
% Change as Reported
% Change in Constant
Currency
$ Amt
% Net Sales
$ Amt
% Net Sales
$ Amt
% Net Sales
$ Amt
% Net Sales
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 as Reported
% Change in Constant
Currency
2024
2023
% Change as Reported
% Change in Constant
Currency
(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 as Reported
% Change in Constant
Currency
2024
2023
% Change as Reported
% Change in Constant
Currency
(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 as Reported
% Change in Constant
Currency
2024
2023
% Change as Reported
% Change in Constant
Currency
(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
%
—
%
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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250204346288/en/
Securities Analysts Jenn Kettnich
jenn.kettnich@mattel.com
News Media Catherine Frymark
catherine.frymark@mattel.com
Grafico Azioni Mattel (NASDAQ:MAT)
Storico
Da Gen 2025 a Feb 2025
Grafico Azioni Mattel (NASDAQ:MAT)
Storico
Da Feb 2024 a Feb 2025
