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: July 21, 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)
<PAGE>
Item 5. Other Events
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Mattel, Inc. hereby incorporates by reference herein its
press release dated July 21, 1994, regarding its 1994 second
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 July 21, 1994.
<PAGE>
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
Vice President, Assistant
General Counsel and Assistant
Date: July 21, 1994 Secretary
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<PAGE>
FOR IMMEDIATE RELEASE CONTACT: Glenn Bozarth
July 21, 1994 Mattel, Inc.
(310) 524-3521
MATTEL SECOND QUARTER EARNINGS INCREASE 40 PERCENT;
DEMAND FOR TIME-TESTED CORE BRANDS IS STRONG
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LOS ANGELES, July 21 -- Mattel, Inc. today reported record second
quarter net income of $57.1 million or $.31 per share, up 40
percent from $40.8 million or $.23 per share in the 1993 quarter.
Net sales were a record $650 million, up 13 percent from $577
million last year.
"This outstanding performance reflects strong worldwide
demand for our core brand products of Barbie, Fisher-Price, Hot
Wheels and Disney, fueled by a new toy line tied to the excellent
new animated Disney movie 'The Lion King,'" John W. Amerman,
Mattel's chairman and chief executive officer, said.
"The response to our product lines, combined with advantages
provided by our dedicated global manufacturing network, allowed
us to meet the challenges of difficult worldwide economic
conditions and delays in retail ordering," Amerman said.
-more-
<PAGE>
2-2-2-2-2
For the first half of 1994, net income increased 37 percent
to a record $81.2 million or $.44 per share, versus $59.3 million
or $.33 per share in the first six months of 1993 before
accounting changes. Year-to-date sales were a record $1.138
billion, up 8 percent from $1.054 billion in 1993.
"Our excellent earnings performance in the quarter and first
half reflect significant efficiencies resulting from the
integration of Fisher-Price and Mattel, as well as some benefit
from the acquisition of the assets of Kransco, completed on May
31," Amerman said. "Results for the quarter also include the
contribution of newly-established marketing organizations in
Argentina, Venezuela and Portugal."
Mattel, Inc. is a worldwide leader in the design,
manufacture and marketing of children's 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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<PAGE>
<TABLE>
MATTEL, INC. AND SUBSIDIARIES
CONSOLIDATED RESULTS OF OPERATIONS
<CAPTION>
FOR THE FOR THE
THREE MONTHS ENDED SIX MONTHS ENDED
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June 30, June 30, June 30, June 30,
(In thousands, except per share amounts) 1994 1993 (a) 1994 1993 (a)
- - ---------------------------------------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Net Sales $ 650,263 $ 576,618 $1,137,534 $1,053,802
Cost of sales 335,758 297,605 584,925 556,019
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Gross Profit 314,505 279,013 552,609 497,783
Advertising and promotion expenses 94,010 83,390 165,640 151,879
Other selling and administrative expenses 118,608 113,652 235,405 223,149
Other expense, net 1,315 3,819 4,600 4,379
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Operating Profit 100,572 78,152 146,964 118,376
Interest expense 11,490 14,929 19,613 28,138
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Income Before Income Taxes 89,082 63,223 127,351 90,238
Provision for income taxes 32,000 22,453 46,200 30,988
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Income Before Cumulative Effect of Changes
in Accounting Principles 57,082 40,770 81,151 59,250
Cumulative effect of changes in accounting
principles (b) - - - (4,022)
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Net Income $ 57,082 $ 40,770 $ 81,151 $ 55,228
========== ========== ========== ==========
Income Per Share (c)
Income before cumulative effect of changes
in accounting principles $ 0.31 $ 0.23 $ 0.44 $ 0.33
Cumulative effect of changes in accounting
principles - - - (0.02)
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Net Income Per Share $ 0.31 $ 0.23 $ 0.44 $ 0.31
========== ========== ========== ==========
Average Number of Common and Common
Equivalent Shares Outstanding 179,779 170,685 177,934 170,999
========== ========== ========== ==========
</TABLE>
<TABLE>
MATTEL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
<CAPTION>
June 30, June 30, Dec. 31,
(In thousands) 1994 1993 (a) 1993 (a)
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ASSETS
<S> <C> <C> <C>
Cash, cash equivalents and marketable
securities $ 117,190 $ 89,765 $ 523,581
Accounts receivable, net 879,276 744,655 580,313
Inventories 323,364 312,094 219,993
Prepaid expenses 150,318 128,915 146,863
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Total current assets 1,470,148 1,275,429 1,470,750
Property, plant and equipment, net 377,407 323,021 326,877
Other assets 414,165 200,373 202,450
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Total Assets $ 2,261,720 $ 1,798,823 $ 2,000,077
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LIABILITIES AND SHAREHOLDERS' EQUITY
<S> <C> <C> <C>
Notes payable to banks $ 342,326 $ 87,411 $ -
Current portion of long-term liabilities 3,301 8,675 104,862
Accounts payable and accrued liabilities 474,521 354,624 573,224
Income taxes payable 109,462 52,602 105,243
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Total current liabilities 929,610 503,312 783,329
Long-term debt 258,683 362,399 254,159
Other long-term liabilities 80,266 58,946 70,827
Convertible debt - 97,652 73,953
Shareholders' equity 993,161 776,514 817,809
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Total Liabilities and Shareholders' Equity $ 2,261,720 $ 1,798,823 $ 2,000,077
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<FN>
(a) Consolidated results are restated for the merger with Fisher-Price, Inc.
(b) A $20.0 million net-of-tax charge related to the adoption of FAS No. 106,
partially offset by a $16.0 million credit related to the adoption of
FAS No. 109.
(c) Share and per share data for the quarter and six months ended June 30, 1993
reflect the retroactive effect of shares issued pursuant to the Fisher-Price
merger and a 5/4 stock split declared in November 1993.
</FN>
</TABLE>
