Mattel(US:MAT)2024-04-23 20:06Financial Performance - Net Sales for Q1 2024 were $810 million, down 1% year-over-year, with a reported Operating Loss of $36 million, an improvement of $80 million [5]. - Adjusted EBITDA for the quarter was $54 million, an improvement of $67 million compared to the previous year [9]. - Net Sales for Q1 2024 were $809.5 million, a decrease of 1% compared to $814.6 million in Q1 2023 [34]. - Operating Loss improved to $(35.5) million, a 69% reduction from $(115.0) million in Q1 2023 [34]. - Net Loss for Q1 2024 was $(28.3) million, significantly lower than $(106.5) million in Q1 2023, marking a 73% improvement [34]. - Free Cash Flow for Q1 2024 was $35 million, a recovery from $(206) million in Q1 2023 [36]. - Adjusted EBITDA for Q1 2024 reached $53.5 million, a significant recovery from a negative $13.9 million in Q1 2023 [38]. - Free cash flow for Q1 2024 was $5.0 million, a substantial improvement compared to a negative $249.4 million in Q1 2023 [38]. - Net loss per common share, as reported, improved to $(0.08) in Q1 2024 from $(0.30) in Q1 2023, reflecting a 73% reduction in losses [38]. - Adjusted EBITDA for the trailing twelve months ended March 31, 2024, was $1,015.2 million, a 27% increase from $802.5 million in the previous year [40]. - Net cash flows provided by operating activities for the trailing twelve months ended March 31, 2024, were $1,111.7 million, a 192% increase from $380.3 million in the previous year [40]. Sales Performance - North America segment Net Sales increased by 2% as reported, driven by growth in Vehicles and Action Figures [6]. - International segment Net Sales decreased by 4% as reported, primarily due to declines in Dolls and Infant, Toddler, and Preschool categories [7]. - Worldwide net sales for Q1 2024 were $809.5 million, a decrease of 1% compared to $814.6 million in Q1 2023 [43]. - Gross billings for Q1 2024 totaled $898.9 million, down 1% from $911.3 million in Q1 2023 [43]. - North America net sales increased by 2% to $477.8 million in Q1 2024, compared to $470.5 million in Q1 2023 [44]. - International net sales decreased by 4% to $331.7 million in Q1 2024, down from $344.1 million in Q1 2023 [45]. - EMEA region net sales fell by 12% to $185.2 million in Q1 2024, compared to $209.4 million in Q1 2023 [45]. - Latin America net sales grew by 5% to $79.7 million in Q1 2024, compared to $75.5 million in Q1 2023 [45]. - Asia Pacific net sales increased by 13% to $66.8 million in Q1 2024, up from $59.2 million in Q1 2023 [45]. Cost Management - Gross Margin increased to 48.0%, up 800 basis points from the prior year, driven by lower inventory management costs and cost deflation [8]. - The Optimizing for Profitable Growth program aims for $60 million in cost savings in 2024 and a total of $200 million by 2026 [4]. - The adjusted gross margin for Q1 2024 was 48.3%, up 830 basis points from 40.0% in Q1 2023 [37]. Shareholder Actions - The company repurchased $100 million of shares during the quarter, reflecting strong bottom-line results [9]. Economic Environment - The company is operating in a macro-economic environment that may impact consumer demand, with guidance subject to market volatility and other risks [16]. Tax and Currency - The Adjusted Tax Rate provides useful supplemental information for investors to gauge the impact of tax expense on earnings results [29]. - Constant currency results are analyzed to provide additional perspective on underlying trends in operating performance, excluding currency exchange rate impacts [30]. - The tax rate, as reported, increased to 39% in Q1 2024 from 20% in Q1 2023, reflecting a 19 percentage point rise [39]. Asset Management - Total Assets as of March 31, 2024, were $6,065.4 million, an increase from $5,831.7 million at the end of 2023 [35]. - Total Current Assets rose to $2,735.5 million, compared to $2,366.3 million at the end of 2023 [35]. - Long-Term Debt remained stable at $2,331.1 million, slightly up from $2,326.7 million at the end of 2023 [35]. - Total debt remained stable at $2,350.0 million as of March 31, 2024, unchanged from the previous year [40].