Mattel 1999 Annual Report Download - page 43

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Mattel, Inc. and Subsidiaries
Note 9 - Quarterly Financial Information (Unaudited)
( In thousands, except per share amounts) First Quarter Second Quarter Third Quarter Fourth Quarter
Year Ended December 31, 1999 (a)
Net sales $8 7 8 ,959 $1 ,0 4 0 ,154 $ 1 ,8 2 5 ,247 $ 1 ,7 7 0 ,59 0
Gross profit 43 8 ,4 9 7 51 2 ,5 01 86 7 ,286 78 2 ,75 6
Advertising and promotion expenses 11 6 ,7 5 9 13 6 ,4 75 29 6 ,436 39 6 ,28 5
Other selling and administrative expenses 25 9 ,4 9 4 24 5 ,1 34 33 1 ,934 35 4 ,35 3
Amortization of intangibles 23 ,0 0 9 1 9 ,419 22,7 6 5 2 6 ,6 54
Restructuring and other charges (b) 3,8 8 9 34 5 ,0 0 0 – (2,89 3 )
Other income, net ( 4 ,038 ) ( 3 ,96 1 ) (84 6 ) ( 5,69 4 )
Income ( loss) before income taxes 1 0 ,2 54 ( 2 6 1 ,8 8 0 ) 17 5 ,9 7 8 ( 3 5,09 5 )
Net income ( loss) 5 ,0 4 9 ( 20 4 ,334) 1 3 5 ,333 ( 18 ,4 2 1 )
Preferred stock dividend requirements ( 1 ,9 9 0 ) ( 1 ,9 9 0 ) – –
Net income ( loss) applicable to comm on shares 3,0 5 9 ( 20 6 ,324) 13 5 ,333 ( 18 ,4 2 1 )
Basic income ( loss) per common share:
Net income ( loss) $ 0 .0 1 $ ( 0 .50) $ 0.3 2 $ ( 0 .0 4)
Weighted average number of common shares 39 6 ,4 8 0 40 9 ,0 40 42 5 ,148 42 5 ,68 0
Diluted income ( loss) per common share:
Net income ( loss) $ 0 .0 1 $ ( 0 .50) $ 0.3 2 $ ( 0.0 4)
Weighted average number of common and common equivalent shares 4 2 2 ,2 64 40 9 ,040 42 9 ,45 5 4 25,68 0
Dividends declared per common share $ 0.08 $ 0.09 $ 0.09 $ 0.09
Common stock market price:
High $ 27.81 $ 29.00 $ 26.69 $ 16.88
Low 2 1 .5 0 2 2.88 1 9 .0 0 1 1 .81
Year Ended December 31, 1998 (a)
Net sales $8 8 4 ,500 $1 ,0 3 3 ,509 $ 1 ,8 8 4 ,843 $ 1 ,8 1 8 ,35 5
Gross profit 43 9 ,8 8 8 50 9 ,2 40 99 6 ,090 96 8 ,08 5
Advertising and promotion expenses 11 9 ,1 7 5 13 5 ,0 30 28 1 ,726 38 1 ,73 4
Other selling and administrative expenses 24 2 ,0 9 2 26 3 ,4 02 27 8 ,059 36 1 ,24 8
Amortization of intangibles 49 ,6 0 0 3 3 ,091 20,6 7 4 2 6 ,3 24
Charge for incomplete technology ( c) 40 ,0 0 0 1 6 ,826 – –
Restructuring and other charges (d) 1 5 ,2 3 0 2 0 ,887 97 ,0 8 8 2 4 ,109
Other ( income) expense, net ( e) ( 2 ,147 ) ( 7 ,92 2 ) 8 ,8 7 0 ( 1 1 ,89 3 )
Income ( loss) before income taxes ( 4 7 ,15 6 ) 2 9 ,757 26 7 ,327 1 4 1,70 4
Net income ( loss) ( 5 5 ,95 7 ) 4 ,5 7 8 16 8 ,7 3 4 8 8 ,698
Preferred stock dividend requirements ( 1 ,9 9 0 ) ( 1,9 9 0 ) (1 ,9 9 0 ) ( 1,9 9 0 )
Net income ( loss) applicable to comm on shares (57 ,9 4 7 ) 2 ,5 88 16 6 ,744 86 ,7 0 8
Basic income ( loss) per common share:
Net income ( loss) $ ( 0 .1 5 ) $ 0.01 $ 0 .42 $ 0 .2 2
Weighted average number of common shares 37 6 ,3 6 4 38 4 ,5 96 39 9 ,218 39 7 ,23 7
Diluted income ( loss) per common share:
Net income ( loss) $ ( 0 .1 5 ) $ 0.01 $ 0 .39 $ 0.2 0
Weighted average number of common and common equivalent shares 3 7 6 ,3 64 42 3 ,407 43 5 ,12 3 4 24,29 6
Dividends declared per common share $ 0.07 $ 0.08 $ 0.08 $ 0.08
Common stock market price:
High $ 45 .6 3 $ 43 .63 $ 42.31 $ 3 9 .63
Low 3 5 .6 3 3 6.00 2 8 .0 0 2 1 .69
( a) Financial information for first quarter 1 9 9 9 and full year 19 9 8 has been restated retroactively for the effects of the May 1 9 99 merger with Learning Company, accounted for as a pooling of interests.
( b) Represents integration and restructuring charges in the second quarter of 1 9 9 9 related to the Learning Company merger, and other nonrecurring charges. The nonrecurring credit for the fourth quarter of 1 9 99 represents net adjustments made
to the restructuring and nonrecurring charges recorded in the second quarter of 1 9 9 9 .
( c) Primarily represents the w riteoff of products being developed by M indscape, Inc. and Sofsource, Inc. that had not reached technological feasibility as of the dates of their acquisitions in the first and second quarters of 1 9 9 8 , respectively. These
products had no alternative future use and additional development costs would have been required to complete the software technology.
( d) Includes restructuring charges in the third quarter related to the merger with Broderbund, a nonrecurring charge in the third quarter related to a voluntary recall of certain Pow er Wheels®ride-on vehicles, and a one-time charge in the fourth
quarter in connection with the Toys R Us-related antitrust litigation settlement.
( e) Includes unrealized foreign currency exchange losses in the third quarter that were partially recovered in the fourth quarter.