Improvements Are Child's Play for Mattel: Fool by Numbers
By Motley Fool Contributors
July 17, 2007
On July 16, Motley Fool Inside Value pick Mattel (NYSE: MAT) released second-quarter earnings for the period ended June 30.
- Worldwide sales rose by 6.5%, supported by an 18% increase in international sales that offset a 3% decline in domestic sales.
- Fisher-Price Brands sales rose by 12%, a move attributed to continued strength in its infant, newborn, and BabyGear products, as well as Preschool Electronics.
- Gross margin improved 270 basis points as a "modest price increase," lower royalty expenses, and supply chain savings helped the company earn more from each sale.
(Figures in millions, except per-share data.)
Income Statement Highlights
|
Q2 2007
|
Q2 2006
|
Change
|
|
Sales
|
$1,020.1
|
$957.7
|
6.5%
|
|
Net Profit
|
$43.1
|
$37.4
|
15.2%
|
|
EPS
|
$0.11
|
$0.10
|
10.0%
|
|
Diluted Shares
|
402.8
|
388.8
|
3.6%
|
Get back to basics with the income statement.
Margin Checkup
|
Q2 2007
|
Q2 2006
|
Change*
|
|
Gross Margin
|
46.1%
|
43.5%
|
2.7
|
|
Operating Margin
|
6.2%
|
5.2%
|
1.0
|
|
Net Margin
|
4.2%
|
3.9%
|
0.3
|
*Expressed in percentage points
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets
|
Q2 2007
|
Q2 2006
|
Change
|
|
Cash + ST Invest.
|
$742.6
|
$625.1
|
18.8%
|
|
Accounts Rec.
|
$881.6
|
$743.7
|
18.5%
|
|
Inventory
|
$605.1
|
$538.5
|
12.4%
|
|
Liabilities
|
Q2 2007
|
Q2 2006
|
Change
|
|
Accounts Payable*
|
$817.5
|
$799.9
|
2.2%
|
|
Long-Term Debt
|
$560.0
|
$795.0
|
(29.6%)
|
*Includes accrued liabilities
The balance sheet reflects the company's health.
Cash Flow Highlights
|
YTD 2007
|
YTD 2006
|
Change
|
|
Cash From Ops.
|
($492.0)
|
($357.9)
|
N/A
|
|
Capital Expenditures
|
$58.0
|
$66.1
|
(12.3%)
|
|
Free Cash Flow
|
($550.0)
|
($424.0)
|
N/A
|
Free cash flow is a Fool's best friend.
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Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.
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