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: April 20, 1994
MATTEL, INC.
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(Exact name of registrant as specified in its charter)
Delaware 001-05647 95-1567322
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(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File No.) Identification No.)
333 Continental Boulevard, El Segundo, California 90245-5012
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (310) 524-2000
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N/A
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(Former name or former address, if changed since last report)
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Information to be included in the Report
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Item 5. Other Events
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Mattel, Inc. hereby incorporates by reference herein its
press release dated April 20, 1994, regarding its 1994 first
quarter results of operations, a copy of which is included
as Exhibit 99.0 attached hereto.
Item 7. Financial Statements and Exhibits
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(a) Financial statements of businesses acquired: None
(b) Pro forma financial information: None
(c) Exhibits:
99.0 Press release dated April 20, 1994.
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SIGNATURES
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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/ Robert Normile
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Robert Normile
Assistant General Counsel
Date: As of April 20, 1994 and Assistant Secretary
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FOR IMMEDIATE RELEASE CONTACT: Glenn Bozarth
April 20, 1994 Mattel, Inc.
(310) 524-3521
MATTEL FIRST QUARTER INCOME UP 30 PERCENT
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LOS ANGELES, April 20 -- Mattel, Inc. today reported record first quarter
net income of $24.1 million or $.13 per share, up 30 percent from
consolidated Mattel and Fisher-Price earnings of $18.5 million or $.10 per
share for the 1993 quarter before accounting changes.
Net sales for the quarter were a record $487 million, up 2 percent
from $477 million in 1993. First quarter toy sales increased 4 percent,
before the negative impact of foreign exchange translation.
"These sales and earnings results are in line with our expectations
and consistent with our long-term objective of delivering excellent
profitable growth," John W. Amerman, Mattel's chairman and chief executive
officer, said. "The ability to continue to report record results further
demonstrates Mattel's sustainable competitive advantages of core consumer
product franchises; an unsurpassed international marketing network; and
manufacturing efficiencies resulting from producing the majority of our
products in our own facilities.
-more-
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2-2-2-2-2
"Our first quarter performance, coupled with the rapid integration
of Fisher-Price and the expected contribution from the Kransco acquisition,
puts us solidly on track to achieve or exceed our 1994 volume and income
objectives," Amerman said.
Mattel, Inc. is a worldwide leader in the design, manufacture and
marketing of children's toys. Fisher-Price, a leader in infant and
preschool toys, became part of Mattel through a merger completed in
November, 1993. In addition, Mattel expects to complete its acquisition
of Kransco by May 31, 1994. Kransco's principal product lines include
Power Wheels battery-operated, ride-on vehicles; Hula Hoop and Frisbee
products marketed under the Wham-O trademark; and Morey Boogie boards
and other water sport toys.
With headquarters in El Segundo, California, Mattel has offices and
facilities in 34 foreign countries and sells its products in more than
140 nations throughout the world.
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<TABLE>
MATTEL, INC. AND SUBSIDIARIES
CONSOLIDATED RESULTS OF OPERATIONS
<CAPTION>
FOR THE
THREE MONTHS ENDED
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March 31, March 31,
(In thousands, except per share amounts) 1994 1993 (a)
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<S> <C> <C>
Net sales $ 487,271 $ 477,184
Cost of sales 249,167 250,481
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Gross profit 238,104 226,703
Advertising and promotion expenses 71,630 68,489
Other selling and administrative expenses 116,797 117,430
Other expense, net 3,285 560
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Operating Profit 46,392 40,224
Interest expense 8,123 13,209
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Income Before Income Taxes 38,269 27,015
Provision for income taxes 14,200 8,535
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Income Before Cumulative Effect of Changes
in Accounting Principles 24,069 18,480
Cumulative effect of changes in accounting
principles (b) - (4,022)
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Net Income $ 24,069 $ 14,458
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Income Per Share (c)
Income before cumulative effect of changes
in accounting principles $ 0.13 $ 0.10
Cumulative effect of changes in accounting
principles - (0.02)
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Net Income Per Share $ 0.13 $ 0.08
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Average Number of Common and Common
Equivalent Shares Outstanding 175,037 170,178
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<TABLE>
MATTEL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
<CAPTION>
March 31, March 31, Dec. 31,
(In thousands) 1994 1993 (a) 1993 (a)
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ASSETS
<S> <C> <C> <C>
Cash, cash equivalents and marketable
securities $ 201,993 $ 163,091 $ 523,581
Accounts receivable, net 607,448 586,477 580,313
Inventories 244,864 262,562 219,993
Prepaid expenses 145,223 136,911 146,863
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Total current assets 1,199,528 1,149,041 1,470,750
Property, plant and equipment, net 333,585 324,677 326,877
Other assets 198,181 199,831 202,450
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Total Assets $ 1,731,294 $ 1,673,549 $ 2,000,077
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LIABILITIES AND SHAREHOLDERS' EQUITY
<S> <C> <C> <C>
Notes payable to banks $ - $ 72,426 $ -
Current portion of long-term liabilities 4,041 8,897 104,862
Accounts payable and accrued liabilities 386,702 368,898 573,224
Income taxes payable 93,158 40,500 105,243
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Total current liabilities 483,901 490,721 783,329
Long-term debt 251,308 268,284 254,159
Other long-term liabilities 75,635 58,618 70,827
Convertible debt - 97,598 73,953
Shareholders' equity 920,450 758,328 817,809
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Total Liabilities and Shareholders' Equity $ 1,731,294 $ 1,673,549 $ 2,000,077
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<FN>
(a) Consolidated results are restated for the merger with Fisher-Price, Inc.
(b) A $14.6 million net credit from Mattel's 1/1/93 adoption of FAS Nos. 109
and 106, offset by an $18.6 million net-of-tax charge related to Fisher-
Price's adoption of FAS No. 106.
(c) Share and per share data for the 1993 first quarter reflect the retroactive
effect of shares issued pursuant to the Fisher-Price merger and a 5/4 stock
split declared in November 1993.
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