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: October 18, 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) 252-2000
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N/A
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(Former name or former address, if changed since last report)
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Item 5. Other Events
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Mattel, Inc. hereby incorporates by reference herein its
press release dated October 18, 1994, regarding its 1994
third 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 October 18, 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/ Ned Mansour
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Ned Mansour
Senior Vice President,
Date: October 18, 1994 General Counsel and Secretary
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<PAGE>
FOR IMMEDIATE RELEASE CONTACT: Glenn Bozarth
October 18, 1994 Mattel, Inc.
(310) 252-3521
MATTEL THIRD QUARTER EARNINGS INCREASE 26 PERCENT;
MOMENTUM ASSURES ANOTHER RECORD YEAR
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LOS ANGELES, Oct. 18 -- Mattel, Inc. today reported record net
income of $131.8 million or $.72 per share for the third quarter
ended Sept. 30, 1994, up 26 percent from $104.7 million or $.58
per share in the 1993 quarter. Net sales also reached record
levels, increasing 16 percent to $1.04 billion from $897 million
last year.
For the first nine months of 1994, net income increased 30
percent to a record $213.0 million or $1.15 per share, versus
$163.9 million or $.91 per share in the first nine months of 1993
before accounting changes. Net sales were a record $2.17
billion, up 11 percent from $1.95 billion in 1993.
"We are most pleased with Mattel's performance for the third
quarter and nine months," John W. Amerman, Mattel's chairman and
chief executive officer, said. "Despite the fact that shipping
patterns are changing to later in the year and many countries
outside the United States continue to be in a recessionary
environment, Mattel's performance in each quarter this year has
exceeded our expectations," he said.
-more-
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2-2-2-2-2
"The company's capacity to generate cash continues to be
excellent. Mattel's senior debt, net of acquisitions, declined
by more than $80 million versus year ago, and cash is up by
approximately $35 million versus the same time last year,"
Amerman said. "As was expected, the Kransco and Spear
acquisitions only had a minor effect on third quarter
profitability. We do anticipate profitable impact from these
acquisitions in the fourth quarter, which will help ensure
achievement of our 1994 goal.
"Strong consumer demand for the full range of Mattel
products, coupled with our unique ability to support retailer
requirements, bodes well for the 1994 holiday season," he said.
"Excellent growth of Barbie in the U.S. has been a strong
foundation for our success in 1994. Disney products, led by 'The
Lion King'; Fisher-Price toys; Hot Wheels vehicles and playsets,
and Polly Pocket are helping to draw consumers into toy retail
stores. As a result, we are confident that 1994 will be the
sixth consecutive year of record sales and record earnings for
Mattel," Amerman said.
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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<TABLE>
MATTEL, INC. AND SUBSIDIARIES
CONSOLIDATED RESULTS OF OPERATIONS
<CAPTION>
FOR THE FOR THE
THREE MONTHS ENDED NINE MONTHS ENDED
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Sept. 30, Sept. 30, Sept. 30, Sept. 30,
(In thousands, except per share amounts) 1994 1993 (a) 1994 1993 (a)
- ---------------------------------------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Net Sales $1,037,082 $ 896,732 $2,174,616 $1,950,534
Cost of sales 508,122 442,797 1,093,047 998,816
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Gross Profit 528,960 453,935 1,081,569 951,718
Advertising and promotion expenses 161,298 139,392 326,938 291,271
Other selling and administrative expenses 140,601 128,882 376,006 352,031
Other expense, net 5,967 5,378 10,567 9,757
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Operating Profit 221,094 180,283 368,058 298,659
Interest expense 18,274 16,913 37,887 45,051
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Income Before Income Taxes 202,820 163,370 330,171 253,608
Provision for income taxes 71,000 58,714 117,200 89,702
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Income Before Cumulative Effect of Changes
in Accounting Principles 131,820 104,656 212,971 163,906
Cumulative effect of changes in accounting
principles (b) - - - (4,022)
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Net Income $ 131,820 $ 104,656 $ 212,971 $ 159,884
========== ========== ========== ==========
Income Per Share - Primary (c)
Income before cumulative effect of changes
in accounting principles $ 0.72 $ 0.61 $ 1.17 $ 0.94
Cumulative effect of changes in accounting
principles - - - (0.02)
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Net Income Per Share - Primary $ 0.72 $ 0.61 $ 1.17 $ 0.92
========== ========== ========== ==========
Average Number of Common and Common
Equivalent Shares Outstanding - Primary 180,744 170,609 178,933 170,893
========== ========== ========== ==========
Income Per Share - Fully Diluted (c)
Income before cumulative effect of changes
in accounting principles $ 0.72 $ 0.58 $ 1.15 $ 0.91
Cumulative effect of changes in accounting
principles - - - (0.02)
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Net Income Per Share - Fully Diluted $ 0.72 $ 0.58 $ 1.15 $ 0.89
========== ========== ========== ==========
Average Number of Common and Common
Equivalent Shares Outstanding - Fully Diluted 182,312 180,336 182,228 180,969
========== ========== ========== ==========
<CAPTION>
MATTEL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
Sept. 30, Sept. 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 $ 106,642 $ 70,464 $ 523,581
Accounts receivable, net 1,251,738 1,094,525 580,313
Inventories 360,741 276,823 219,993
Prepaid expenses 159,235 130,612 146,863
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Total current assets 1,878,356 1,572,424 1,470,750
Property, plant and equipment, net 398,890 325,584 326,877
Other assets 508,384 194,323 202,450
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Total Assets $ 2,785,630 $ 2,092,331 $ 2,000,077
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LIABILITIES AND SHAREHOLDERS' EQUITY
<S> <C> <C> <C>
Notes payable to banks $ 477,567 $ 101,376 $ -
Current portion of long-term liabilities 2,700 9,194 104,862
Accounts payable and accrued liabilities 664,764 499,643 573,224
Income taxes payable 163,959 103,545 105,243
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Total current liabilities 1,308,990 713,758 783,329
Long-term debt 258,539 360,348 254,159
Other long-term liabilities 88,107 62,022 70,827
Convertible debt - 97,706 73,953
Shareholders' equity 1,129,994 858,497 817,809
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Total Liabilities and Shareholders' Equity $ 2,785,630 $ 2,092,331 $ 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 nine months ended September 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.
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