MATTEL REPORTS THIRD QUARTER 2018 FINANCIAL RESULTS
Third quarter Net Sales of $1.44 billion.
North America Net Sales increased by 4%; Gross Sales increased by 6%; highest sales growth in North America since Q4 2015.
Recaptured position as the #1 toy company globally in each of the last four months through September, per NPD.
Reported Operating Income was up 41%; first time in eight quarters the Company posted year-over-year growth.
Remain on track to achieve or exceed $650 million run-rate savings exiting 2019.
Reported Earnings Per Share increased to $0.02 versus Loss Per Share of ($1.75) in the prior year. Adjusted Earnings Per Share of $0.18 versus Adjusted Loss Per Share of ($0.04) in the prior year.
EL SEGUNDO, Calif., October 25, 2018 - Mattel, Inc. (NASDAQ: MAT) today reported third quarter 2018 financial results.
Ynon Kreiz, Chairman and CEO of Mattel, said: “We are on track with the execution of our strategy and have made meaningful progress towards restoring profitability, as we transform Mattel into an IP-driven, high-performing toy company. In the quarter, we achieved Operating Income of $122 million, up 41% versus the same period last year, which is the first time in eight quarters that we have posted year-over-year growth.”
“We are proud to say that we recaptured our position as the number one toy company globally in each of the last four months through September, according to NPD. We were also the number one toy company in the U.S. and Latin America year-to-date through September. We continued to make progress in reshaping our organization and are actively exploring strategic alternatives for our manufacturing footprint as we move toward a capital-light model. Additionally, we have taken meaningful steps to drive future growth and capitalize on our iconic brands and IP. This includes the creation of a new theatrical film division and a global franchise management organization.”
Joseph Euteneuer, CFO of Mattel, added: “We continue to be on-track to achieve or exceed our $650 million targeted run-rate cost savings exiting 2019 and are clearly seeing the benefits of Structural Simplification materializing in the P&L. The actions taken through the third quarter resulted in approximately $120 million of savings and we expect to deliver annual run-rate savings of over $500 million exiting 2018. We remain focused on value creation for our shareholders through our comprehensive actions to restore profitability and regain topline growth.”
For the third quarter of 2018, Net Sales were down 8% as reported and 6% in constant currency, versus the prior year’s third quarter. Gross Sales were down 6% as reported and 4% in constant currency, reflecting a negative 3% impact from the Toys “R” Us™ liquidation and a negative 3% impact from the slowdown in our China business. Reported Operating Income was $122 million up 41%, and Adjusted Operating Income was $153 million up 31%. Reported Earnings Per Share was $0.02 and Adjusted Earnings Per Share was $0.18.
Net Sales in the North America segment increased by 4% as reported, versus the prior year’s third quarter. Gross Sales in the North America segment increased by 6% as reported, primarily driven by strong sales of Barbie, despite a 4% impact from Toys “R” Us.
The following information was filed by Mattel Inc (MAT) on Thursday, October 25, 2018 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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Ticker: MAT CIK: 63276 Form Type:10-Q Quarterly Report Accession Number: 0001628280-18-012921 Submitted to the SEC: Thu Oct 25 2018 4:08:14 PM EST Accepted by the SEC: Thu Oct 25 2018 Period: Sunday, September 30, 2018 Industry: Dolls And Stuffed Toys