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 18, 1996
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)
<PAGE>
Item 5. Other Events
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Mattel, Inc. hereby incorporates by reference herein its
press release dated July 18, 1996, regarding its 1996 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 18, 1996.
<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/ Leland P. Smith
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Leland P. Smith
Assistant General Counsel
Date: July 18, 1996 and Assistant Secretary
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<PAGE>
FOR IMMEDIATE RELEASE CONTACT: Glenn Bozarth
July 18, 1996 Mattel, Inc.
(310) 252-3521
MATTEL ANNOUNCES 1996 SECOND QUARTER RESULTS
CHAIRMAN SAYS FULL-YEAR EXPECTATIONS ARE UNCHANGED,
ANNOUNCES PLANS FOR ACCELERATED SHARE REPURCHASE
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LOS ANGELES, July 18 -- Mattel, Inc. today reported second quarter net
income of $66.3 million or $.24 per share, versus $67.5 million or $.24 per
share in 1995. Net sales were $777 million, compared with $763 million in
the same quarter last year. The company had earlier this month announced
that it expected sales volume and earnings for the quarter to be
approximately the same as last year, but that these results will have no
impact on the company's expectations for the year.
For the first half of 1996, net income was $96.2 million or $.34 per
share, versus $94.5 million or $.33 per share in the first six months of
1995. Year-to-date net sales were $1.363 billion, compared with $1.307
billion in 1995.
John W. Amerman, Mattel's chairman and chief executive officer, said
that the difficult retail environment in Europe and the negative impact of
foreign exchange affected the company's performance in the 1996 quarter.
He said, however, that strong retail demand for Mattel products will help
make 1996 the company's eighth consecutive year of record results.
"Our business is being driven by excellent worldwide momentum for
Barbie and Hot Wheels," Amerman said. "Our Cabbage Patch Kids are well on
their way to becoming a $100 million business during their second year at
Mattel. In addition, Wonder Tools by Fisher-Price, our Mattel Media
interactive CD-ROM products, Construx and toys tied to Disney's The Mighty
Ducks and 101 Dalmatians will be shipping in the coming months, further
assuring strong performance in the second half."
Amerman also said that, in light of current stock market conditions
and Mattel's outlook for the second half of the year, the company plans to
accelerate activity under its stock repurchase plan, and purchase the
balance of its 8.75 million-share annual authorization during the 1996
third quarter. "We are on track to achieve our goals for the full year,
and we see this as an attractive time to buy back shares," he said.
Mattel is the worldwide leader in the design, manufacture and
marketing of children's toys. Headquartered 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 SIX MONTHS ENDED
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June 30, June 30, June 30, June 30,
(In thousands, except per share amounts) 1996 1995 1996 1995
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<S> <C> <C> <C> <C>
Net Sales $ 777,355 $ 763,474 $1,363,234 $1,307,044
Cost of sales 398,801 396,785 698,903 681,330
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Gross Profit 378,554 366,689 664,331 625,714
Advertising and promotion expenses 102,367 106,718 182,656 185,318
Other selling and administrative expenses 154,623 141,498 297,543 273,416
Other expense (income), net 7,293 (730) 10,958 (4,144)
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Operating Profit 114,271 119,203 173,174 171,124
Interest expense 16,278 17,993 30,696 29,070
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Income Before Income Taxes 97,993 101,210 142,478 142,054
Provision for income taxes 31,700 33,714 46,300 47,600
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Net Income $ 66,293 $ 67,496 $ 96,178 $ 94,454
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Net Income Per Share (a) $ 0.24 $ 0.24 $ 0.34 $ 0.33
========== ========== ========== ==========
Average Number of Common and Common
Equivalent Shares Outstanding 280,894 280,691 281,323 280,275
========== ========== ========== ==========
</TABLE>
<TABLE>
MATTEL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
<CAPTION>
June 30, June 30, Dec. 31,
(In thousands) 1996 1995 1995
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ASSETS
<S> <C> <C> <C>
Cash and marketable securities $ 44,727 $ 87,706 $ 483,457
Accounts receivable, net 962,690 920,522 679,283
Inventories 490,590 453,902 350,841
Prepaid expenses and other current assets 193,632 201,931 177,238
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Total current assets 1,691,639 1,664,061 1,690,819
Property, plant and equipment, net 544,568 463,735 499,314
Other assets 491,919 505,062 505,376
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Total Assets $ 2,728,126 $ 2,632,858 $ 2,695,509
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LIABILITIES AND SHAREHOLDERS' EQUITY
<S> <C> <C> <C>
Notes payable, net $ 243,546 $ 196,992 $ 15,520
Current portion of long-term liabilities 1,623 2,612 33,215
Accounts payable and accrued liabilities 441,327 508,565 660,763
Income taxes payable 133,618 166,708 138,183
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Total current liabilities 820,114 874,877 847,681
Long-term debt 260,682 263,530 260,868
Medium-Term notes 220,000 250,000 220,000
Other long-term liabilities 100,852 85,221 91,791
Shareholders' equity 1,326,478 1,159,230 1,275,169
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Total Liabilities and Shareholders' Equity $ 2,728,126 $ 2,632,858 $ 2,695,509
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<FN>
(a) Share and per share data for the quarter and six months ended June 30, 1995
reflect the retroactive effect of a 5/4 stock split declared in February
1996.
</TABLE>
