-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, RsG+2EcBZpuM3LsBa05j2n28Y48eWQGyqziS1mpryW8oukPn3iQ/2yV7FcuJg+Lo r6Pi2viHk6v1OYTXQXb2aQ== 0000063276-98-000002.txt : 19980206 0000063276-98-000002.hdr.sgml : 19980206 ACCESSION NUMBER: 0000063276-98-000002 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980205 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19980205 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: MATTEL INC /DE/ CENTRAL INDEX KEY: 0000063276 STANDARD INDUSTRIAL CLASSIFICATION: DOLLS & STUFFED TOYS [3942] IRS NUMBER: 951567322 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-05647 FILM NUMBER: 98521951 BUSINESS ADDRESS: STREET 1: 333 CONTINENTAL BLVD CITY: EL SEGUNDO STATE: CA ZIP: 90245 BUSINESS PHONE: 3102522000 8-K 1 YEAR END 1997 EARNINGS RELEASE SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K Current Report Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934 Date of Report: February 5, 1998 MATTEL, INC. ------------ (Exact name of registrant as specified in its charter) Delaware 001-05647 95-1567322 - ------------------------------------------------------------------------------ (State or other jurisdiction (Commission (I.R.S. Employer of incorporation) File No.) Identification No.) 333 Continental Boulevard, El Segundo, California 90245-5012 - ------------------------------------------------------------------------------ (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (310) 252-2000 ---------------------------- N/A - ------------------------------------------------------------------------------ (Former name or former address, if changed since last report) Item 5. Other Events - ------- ------------ Mattel, Inc. hereby incorporates by reference herein its press release dated February 3, 1998, regarding its 1997 fourth quarter results of operations, a copy of which is included as Exhibit 99.0 attached hereto. Item 7. Financial Statements and Exhibits - ------- --------------------------------- (a) Financial statements of businesses acquired: None (b) Pro forma financial information: None (c) Exhibits: 99.0 Press release dated February 3, 1998. SIGNATURES ---------- Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. MATTEL, INC. Registrant By: /s/ Leland P. Smith ------------------------- Leland P. Smith Assistant General Counsel Date: February 5, 1998 and Secretary ---------------------- EX-99.0 2 PRESS RELEASE DATED FEBRUARY 3, 1998 FOR IMMEDIATE RELEASE CONTACT: February 3, 1998 Mattel, Inc. News Media Investor Relations Glenn Bozarth Mike Salop 310-252-3521 310-252-2703 MATTEL 1997 EARNINGS INCREASE 34 PERCENT ---------------------------------------- LOS ANGELES, February 3 -- Mattel, Inc. today reported that income for the full- year 1997 increased 34 percent to $499.5 million or $1.68 per basic share ($1.65 per diluted share), before previously announced charges related to the Tyco integration and Mattel restructuring and a note redemption. Earnings per primary share were $1.66. Net income for 1996 was $372.2 million, or $1.26 per basic share. Net sales for 1997 were up 10 percent in local currency, before a $139 million negative impact of foreign exchange. In U.S. dollars, sales totaled $4.835 billion, up 7 percent from $4.535 billion in 1996. Net income for the 1997 fourth quarter totaled $195.1 million or $.66 per basic share ($.64 per diluted share), up 82 percent from $106.9 million or $.36 per basic share in the 1996 quarter. Earnings per primary share were $.65. Net sales for the 1997 fourth quarter were up 17 percent in local currency. In U.S. dollars, sales increased 13 percent to $1.613 billion, versus $1.432 billion in 1996. "We're very proud of this performance," said Jill Barad, chairman and chief executive officer. "In a difficult economic environment, we achieved our targets, expanding Mattel's record to nine consecutive years of profitable growth. -more- 2-2-2-2-2- "These results demonstrate the advantage we have in our diverse and well- balanced brand portfolio," she said. "Worldwide Barbie sales increased 12 percent in local currency and 9 percent in U.S. dollars. Our Disney sales were up 17 percent, and our Wheels brands were up a very strong 21 percent, both in U.S. dollars. And we achieved an increase of 15 percent in our worldwide Infant and Preschool category, despite a 15 percent decline at Fisher-Price. "Our margins are some of the healthiest in our history, and our balance sheet has never been stronger," Barad said. "Demand for our brands remains very strong in the first quarter. This, along with the $100 million in incremental savings we expect this year from the Tyco integration and Mattel restructuring, puts us in an excellent position as we enter 1998." Mattel, Inc. is the worldwide leader in the design, manufacture and marketing of children's toys. With headquarters in El Segundo, California, Mattel has offices and facilities in 36 countries and sells its products in more than 150 nations throughout the world. Note: Forward-looking statements included in this release with respect to the financial condition, results of operations and business of the company, which include, but are not limited to, the restructuring charge, cost savings and profitability, are subject to certain risks and uncertainties that could cause actual results to differ materially from those set forth in such statements. These include without limitation: the company's dependence on the timely development, introduction and customer acceptance of new products; possible weaknesses of international markets; the impact of competition on revenues and margins; the effect of currency fluctuations on reportable income; and other risks and uncertainties as may be detailed from time to time in the company's public announcements and SEC filings. -###- MATTEL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME
FOR THE FOR THE THREE MONTHS ENDED YEAR ENDED ------------------------- ------------------------- Dec. 31, Dec. 31, Dec. 31, Dec. 31, (In thousands, except per share amounts) 1997 1996 (a) 1997 (a) 1996 (a) - ---------------------------------------- ----------- ----------- ---------- --------- Net Sales $ 1,613,093 $ 1,431,834 $4,834,616 $4,535,332 Cost of sales 795,018 721,747 2,434,616 2,315,574 ----------- ---------- ---------- ---------- Gross Profit 818,075 710,087 2,400,000 2,219,758 Advertising and promotion expenses 300,569 308,988 779,139 778,919 Other selling and administrative expenses 220,192 214,954 796,952 772,335 Integration/restructuring costs (b) - - 275,000 - Other expense, net 2,964 8,860 33,697 31,522 ----------- ---------- ---------- ---------- Operating Profit 294,350 177,285 515,212 636,982 Interest expense 27,348 30,092 90,130 100,226 ----------- ---------- ---------- ---------- Income Before Income Taxes 267,002 147,193 425,082 536,756 Provision for income taxes 71,873 40,248 135,288 164,532 ----------- ---------- ---------- ---------- Income Before Extraordinary Item 195,129 106,945 289,794 372,224 Extraordinary item, net of tax - - (4,610) - ----------- ---------- ---------- ---------- Net Income 195,129 106,945 285,184 372,224 Less: dividends on convertible preferred stock 1,990 2,837 10,505 7,391 ----------- ---------- ---------- ---------- Net Income Applicable to Common Shares $ 193,139 $ 104,108 $ 274,679 $ 364,833 =========== ========== ========== ========== Basic Income Per Share Income Before Extraordinary Item, Net of Tax $ 0.66 $ 0.36 $ 0.96 $ 1.26 Extraordinary Item - Debt Retirement - - (0.01) - ----------- ---------- ---------- ---------- Net Income Per Share - Basic (c)(d) $ 0.66 $ 0.36 $ 0.95 $ 1.26 =========== ========== ========== ========== Average Number of Common Shares Outstanding - Basic (c) 290,962 287,544 290,450 290,393 =========== ========== ========== ========== Diluted Income Per Share Income Before Extraordinary Item, Net of Tax $ 0.64 $ 0.35 $ 0.94 $ 1.23 Extraordinary Item - Debt Retirement - - (0.01) - ----------- ---------- ---------- ---------- Net Income Per Share - Diluted (c)(d) $ 0.64 $ 0.35 $ 0.93 $ 1.23 =========== ========== ========== ========== Average Number of Common and Common Equivalent Shares Outstanding - Diluted (c) 306,053 303,594 295,653 303,057 =========== ========== ========== ==========
MATTEL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS
Dec. 31, Dec. 31, (In thousands) 1997 1996 (a) - -------------- ----------- ----------- ASSETS Cash $ 694,947 $ 550,271 Accounts receivable, net 1,091,416 948,940 Inventories 428,844 444,178 Prepaid expenses and other current assets 246,529 195,673 ----------- ----------- Total current assets 2,461,736 2,139,062 Property, plant and equipment, net 601,597 616,281 Other assets 740,458 825,799 ----------- ----------- Total Assets $ 3,803,791 $ 3,581,142 =========== =========== LIABILITIES AND SHAREHOLDERS' EQUITY Short-term borrowings $ 17,468 $ 28,924 Current portion of long-term liabilities 13,659 106,596 Accounts payable and accrued liabilities 939,562 823,069 Income taxes payable 202,735 183,288 ----------- ----------- Total current liabilities 1,173,424 1,141,877 Long-term debt 155,036 299,806 Medium-Term notes 520,500 220,000 Other long-term liabilities 132,761 113,536 Shareholders' equity 1,822,070 1,805,923 ----------- ----------- Total Liabilities and Shareholders' Equity $ 3,803,791 $ 3,581,142 =========== =========== (a) Consolidated results for all periods are restated for the merger with Tyco Toys, Inc. (b) Represents a nonrecurring charge for transaction, integration and restructuring costs related to the Tyco merger. The related tax benefit of $65 million is included in the provision for income taxes. (c) Share and per share data for all periods presented reflect the retroactive effect of shares issued pursuant to the Tyco merger. (d) See attached table.
MATTEL, INC. AND SUBSIDIARIES EARNINGS PER SHARE ANALYSIS
FOR THE THREE MONTHS ENDED DECEMBER 31, 1997 --------------------------------------- Primary Basic Diluted ----------- ----------- ----------- Net Income Per Share $ 0.65 $ 0.66 $ 0.64 =========== =========== =========== Average Number of Common and Common Equivalent Shares Outstanding 296,434 290,962 306,053 =========== =========== =========== FOR THE YEAR ENDED DECEMBER 31, 1997 --------------------------------------- Primary Basic Diluted ----------- ----------- ----------- Income Per Share Before Integration/Restructuring Costs and Extraordinary Item $ 1.66 $ 1.68 $ 1.65 Integration/Restructuring Costs (0.72) (0.72) (0.71) Extraordinary Item (0.01) (0.01) (0.01) ----------- ----------- ----------- Net Income Per Share $ 0.93 $ 0.95 $ 0.93 =========== =========== =========== Average Number of Common and Common Equivalent Shares Outstanding 295,064 290,450 295,653 =========== =========== =========== MATTEL, INC. AND SUBSIDIARIES EARNINGS PER SHARE ANALYSIS FOR THE THREE MONTHS ENDED DECEMBER 31, 1996 --------------------------------------- Primary Basic Diluted ----------- ----------- ----------- Net Income Per Share $ 0.36 $ 0.36 $ 0.35 =========== =========== =========== Average Number of Common and Common Equivalent Shares Outstanding 292,319 287,544 303,594 =========== =========== =========== FOR THE YEAR ENDED DECEMBER 31, 1996 --------------------------------------- Primary Basic Diluted ----------- ----------- ----------- Income Per Share Before Integration/Restructuring Costs and Extraordinary Item $ 1.24 $ 1.26 $ 1.23 Integration/Restructuring Costs - - - Extraordinary Item - - - ----------- ----------- ----------- Net Income Per Share $ 1.24 $ 1.26 $ 1.23 =========== =========== =========== Average Number of Common and Common Equivalent Shares Outstanding 295,407 290,393 303,057 =========== =========== ===========
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