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 17, 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 October 17, 1995, regarding its 1995
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 17, 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/ Leland P. Smith
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Leland P. Smith
Date: October 17, 1995 Assistant General Counsel
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FOR IMMEDIATE RELEASE CONTACT: Glenn Bozarth
October 17, 1995 (310) 252-3521
MATTEL REPORTS RECORD SALES AND EARNINGS
FOR 1995 THIRD QUARTER AND NINE-MONTHS,
ANNOUNCES PLANS TO PURCHASE CONVERTIBLE PREFERENCE STOCK
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LOS ANGELES, October 17, 1995 -- Mattel, Inc. today reported that net
income for the 1995 third quarter increased 15 percent to a record $151
million or $.67 per share, versus $132 million or $.58 per share in the
year-ago quarter. Net sales for the quarter reached the record level of
$1.176 billion, up 13 percent from $1.037 billion in the 1994 third
quarter.
"Worldwide demand is being driven by excellent sales growth for our
core Barbie and Fisher-Price brands," John W. Amerman, Mattel's chairman
and chief executive officer, said. "In addition, shipments of Pocahontas
toys through the end of the third quarter exceeded those for Lion King a
year ago."
For the first nine months of 1995, net income increased by 15 percent
to a record $246 million, or $1.08 per share, versus $213 million or $.94
per share for the same period last year. Year-to-date net sales reached a
record $2.484 billion, up 14 percent from $2.175 billion in 1994.
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2-2-2-2-2
"The strong retail sales momentum we have experienced since the
beginning of the year continued to build in the third quarter," Amerman
said. "With substantially increased advertising and promotion support in
the fourth quarter compared to a year ago, we look forward to a strong
finish that should result in 1995 being our seventh consecutive year of
record sales and earnings."
The company also announced that it intends to purchase this week all
shares of its 12-1/2 percent, Series F Convertible Preference stock for
approximately $75 million. The Series F shares would have been convertible
into approximately 2.6 million shares of common stock.
"We see stock repurchase as an excellent means to demonstrate
management's confidence in our company's future," Amerman said. He also
said that, including the purchase of the Series F stock, the company
expects to increase its 1995 buy-back of common stock and its equivalents
by one million shares, to a total of five million shares. Mattel is
currently in its third year of a four-year, 15.6 million-share repurchase
program.
Mattel, Inc. is the worldwide leader in the design, manufacture and
marketing of children's toys. Four core brands -- Barbie, Fisher-Price,
Disney and Hot Wheels -- account for 80 percent of company sales. 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 STATEMENTS OF INCOME
<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) 1995 1994 1995 1994
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<S> <C> <C> <C> <C>
Net Sales $1,176,484 $1,037,082 $2,483,528 $2,174,616
Cost of sales 593,535 508,122 1,274,865 1,093,047
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Gross Profit 582,949 528,960 1,208,663 1,081,569
Advertising and promotion expenses 182,355 161,298 367,673 326,938
Other selling and administrative expenses 159,359 140,601 432,775 376,006
Other (income) expense, net (9,025) 5,967 (13,169) 10,567
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Operating Profit 250,260 221,094 421,384 368,058
Interest expense 22,734 18,274 51,804 37,887
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Income Before Income Taxes 227,526 202,820 369,580 330,171
Provision for income taxes 76,200 71,000 123,800 117,200
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Net Income $ 151,326 $ 131,820 $ 245,780 $ 212,971
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Net Income Per Share (a) $ 0.67 $ 0.58 $ 1.08 $ 0.94
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Average Number of Common and Common
Equivalent Shares Outstanding 225,523 225,930 224,771 223,666
========== ========== ========== ==========
<CAPTION>
MATTEL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
Sept. 30, Sept. 30, Dec. 31,
(In thousands) 1995 1994 1994
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ASSETS
<S> <C> <C> <C>
Cash and marketable securities $ 100,817 $ 106,642 $ 259,681
Accounts receivable, net 1,313,760 1,251,738 762,024
Inventories 463,037 360,741 339,143
Prepaid expenses and other current assets 201,380 159,235 182,675
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Total current assets 2,078,994 1,878,356 1,543,523
Property, plant and equipment, net 486,576 398,890 415,921
Other assets 496,914 508,384 499,582
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Total Assets $ 3,062,484 $ 2,785,630 $ 2,459,026
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LIABILITIES AND SHAREHOLDERS' EQUITY
<S> <C> <C> <C>
Notes payable, net $ 243,390 $ 477,567 $ -
Current portion of long-term liabilities 31,939 2,700 3,095
Accounts payable and accrued liabilities 703,921 664,764 748,392
Income taxes payable 229,752 163,959 164,394
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Total current liabilities 1,209,002 1,308,990 915,881
Long-term debt 263,262 258,539 264,483
Medium-Term notes 220,000 - 110,500
Other long-term liabilities 86,890 88,107 82,472
Shareholders' equity 1,283,330 1,129,994 1,085,690
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Total Liabilities and Shareholders' Equity $ 3,062,484 $ 2,785,630 $ 2,459,026
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<FN>
(a) Share and per share data for the quarter and nine months ended September 30,
1994 reflect the retroactive effect of a 5/4 stock split declared in
December 1994.
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