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 7, 1995
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 February 7, 1995, regarding its 1994
fourth 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 February 7, 1995.
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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/ N. Ned Mansour
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N. Ned Mansour
Senior Vice President,
Date: February 7, 1995 General Counsel and Secretary
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<PAGE>
FOR IMMEDIATE RELEASE Contact: Glenn Bozarth
February 7, 1995 (310) 252-3521
MATTEL EARNINGS UP SHARPLY IN 1994
QUARTER AND YEAR,
COMPANY REPORTS SIXTH CONSECUTIVE YEAR OF RECORD RESULTS
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LOS ANGELES, February 7 -- Mattel, Inc. today reported 1994 net
sales of $3.2 billion, a 19 percent increase from $2.7 billion in
1993. Net income was $256 million in 1994, up from $117 million
in 1993. Pre-tax income, before charges for restructuring and
changes in accounting principles, was $466 million, a 32 percent
increase from $352 million in 1993.
After tax income was $1.32 per share before a $.21 per share
charge related to a previously announced restructuring. Per
share amounts are adjusted for the January 1995 five-for-four
stock split.
"These outstanding results further reinforce Mattel's
position as a top performer among consumer product companies,"
John W. Amerman, chairman and chief executive officer, said.
"Consistent profitable growth has been our top priority. We've
achieved that objective and exceeded our goals in each of the
past six years.
-more-
<PAGE>
2-2-2-2-2
"The integration of Fisher-Price, Kransco and J.W. Spear
with Mattel during 1994 provided benefits that surpassed our
expectations," Amerman said. "Additionally, sales and
profitability of the Fisher-Price, Kransco and Spear businesses
exceeded our targets."
For the fourth quarter ended December 31, 1994, pre-tax
earnings before the restructuring charge were $135 million, up 38
percent from comparable 1993 earnings. Net sales for the quarter
were $1.03 billion, an increase of 37 percent from $754 million
in the year-ago quarter.
"Our strong sales momentum in the fourth quarter, combined
with the excellent new toy line we will introduce next week at
the American International Toy Fair, give us confidence that 1995
will be another great year 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
36 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 YEAR ENDED
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Dec. 31, Dec. 31, Dec. 31, Dec. 31,
(In thousands, except per share amounts) 1994 1993 1994 1993
- ---------------------------------------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Net Sales $ 1,030,409 $ 753,914 $ 3,205,025 $ 2,704,448
Cost of sales 510,475 379,365 1,603,522 1,378,181
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Gross Profit 519,934 374,549 1,601,503 1,326,267
Advertising and promotion expenses 189,547 135,427 516,485 426,698
Other selling and administrative expenses 160,437 121,363 536,443 473,394
Mattel restructuring costs (a) 72,000 - 72,000 -
Integration/restructuring costs (b) - 115,000 - 115,000
Other expense, net 16,927 2,158 27,494 11,915
----------- ----------- ----------- -----------
Operating Profit 81,023 601 449,081 299,260
Interest expense 17,562 17,563 55,449 62,614
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Income (Loss) Before Income Taxes 63,461 (16,962) 393,632 236,646
Provision for income taxes 20,600 11,033 137,800 100,735
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Income (Loss) Before Extraordinary Item and
Cumulative Effect of Changes in Accounting
Principles 42,861 (27,995) 255,832 135,911
Extraordinary item - debt retirement - (14,681) - (14,681)
----------- ----------- ----------- -----------
Income (Loss) Before Cumulative Effect of
Changes in Accounting Principles 42,861 (42,676) 255,832 121,230
Cumulative effect of changes in accounting
principles - - - (4,022)
----------- ----------- ----------- -----------
Net Income (Loss) $ 42,861 $ (42,676) $ 255,832 $ 117,208
=========== =========== =========== ===========
Income (Loss) Per Share - Primary (c)
Income (loss) before extraordinary item
and cumulative effect of changes in
accounting principles $ 0.19 $ (0.14) $ 1.12 $ 0.62
Extraordinary item - debt retirement - (0.07) - (0.07)
Cumulative effect of changes in accounting
principles - - - (0.02)
----------- ----------- ----------- -----------
Net Income (Loss) Per Share - Primary $ 0.19 $ (0.21) $ 1.12 $ 0.53
=========== =========== =========== ===========
Average Number of Common and Common
Equivalent Shares Outstanding - Primary 224,493 213,308 223,939 213,978
=========== =========== =========== ===========
Income (Loss) Per Share - Fully Diluted (c)
Income (loss) before extraordinary item
and cumulative effect of changes in
accounting principles $ 0.19 $ (0.14) $ 1.11 $ 0.60
Extraordinary item - debt retirement - (0.07) - (0.06)
Cumulative effect of changes in accounting
principles - - - (0.02)
----------- ----------- ----------- -----------
Net Income (Loss) Per Share - $ 0.19 $ (0.21) $ 1.11 $ 0.52
Fully Diluted (d) =========== =========== =========== ===========
Average Number of Common and Common
Equivalent Shares Outstanding - 225,281 212,050 227,006 226,062
Fully Diluted =========== =========== =========== ===========
<CAPTION>
MATTEL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
Dec. 31, Dec. 31,
(In thousands) 1994 1993
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ASSETS
<S> <C> <C>
Cash, cash equivalents and marketable
securities $ 259,681 $ 523,581
Accounts receivable, net 762,024 580,313
Inventories 339,143 219,993
Prepaid expenses 182,675 146,863
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Total current assets 1,543,523 1,470,750
Property, plant and equipment, net 415,921 326,877
Other assets 499,582 202,450
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Total Assets $ 2,459,026 $ 2,000,077
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LIABILITIES AND SHAREHOLDERS' EQUITY
<S> <C> <C>
Current portion of long-term liabilities $ 3,095 $ 104,862
Accounts payable and accrued liabilities 748,392 573,224
Income taxes payable 164,394 105,243
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Total current liabilities 915,881 783,329
Long-term debt 264,483 254,159
Medium-Term notes 110,500 -
Other long-term liabilities 82,472 70,827
Convertible debt - 73,953
Shareholders' equity 1,085,690 817,809
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Total Liabilities and Shareholders' Equity $ 2,459,026 $ 2,000,077
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<FN>
(a) Represents a nonrecurring charge in connection with the consolidation of
manufacturing operations and the reduction of headquarters expense and
support functions worldwide. The related tax benefit of $25.2 million is
included in the provision for income taxes.
(b) Represents a nonrecurring charge for transaction and restructuring costs
of the Fisher-Price merger. The related tax benefit of $24.6 million is
included in the provision for income taxes.
(c) Share and per share data for all periods presented reflect the retroactive
effect of a 5/4 stock split declared in December 1994.
(d) Fully diluted income per share for the year, before the $0.21 per share
effect of the 1994 nonrecurring charge of $46.8 million after-taxes, was
$1.32 per share.
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